Singapore banks' loan growth hits 3-year high

Higher credit card and car loans pushed bank lending up.

Singapore bank lending rose 8.5% YoY in February 2018 and hit its strongest pace in three years, up from an 8.3% climb in January.

According to RHB Research, this was mainly on the back of stronger growth in consumer loans at 5.5% YoY during the month from +4.6% in the prior period. “This was amidst a pick-up in credit card and car loans, as well as loans extended for share financing,” it said.

Moreover, corporate loans grew by a stronger pace of 9.5% YoY in February from +9.3% in the preceding month. “This was on the back of a pick-up in loans extended to the manufacturing sector, whilst loans to the agriculture and transport & storage industries fell by a smaller margin. However, this was partly offset by the slower growth in loans extended to the building & construction and business services sectors,” RHB Research added.

On a monthly basis, total loans picked up to 1.2% in February from a +0.4% increase in the month before, mainly due the stronger growth in business loans. Meanwhile, consumer loans fell during the month.

Separately, Singapore’s money supply, including Asian currency units, grew 5.8% YoY in February from a +4.5% rise in the month before. “This was mainly on the back of a stronger growth of 6.3% YoY in net foreign positions during the month from +5.7% in January. These were, however, partly offset by slower increases in both public and private credit growth,” RHB said.

RHB expects the M3 to grow even further by +6.2% in 2018 from 4.1% in 2017. “This is premised on a strong SGD, rising economic prospects, and a pick-up in property transactions,” it added. 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!