BY ANGPING & ASSOCIATES SECURITIES
The exposure of banks to the real estate sector climbed 23% to PHP 1.160 trillion as of September last year from PHP 939.775 billion in the same period in 2013.
Real estate loans, which accounted for the lion’s share of banks’ real estate exposure, went up 24% to PHP 977.085 billion from PHP 787.967 billion.
Banks increased their loans to land developers, construction companies, and other corporate entities by 24% to PHP 592.966 billion as of September from PHP 479.688 billion a year ago.
Credit made for residential properties, meanwhile, was also higher by 25% at PHP 384.119 billion from PHP 308.279 billion in the same period in 2013.
The rest of the banks’ real estate exposure comprised of investments in the property securities which rose 20 percent to PHP 181.882 billion as of September last year from PHP 151.808 billion in the same period in 2013.