Banks' loan growth hits 6.2% in September

Business loans growth jumped to 8.0% YoY, thanks to higher loans from general commerce.

The growth of loans from Singaporean banks hit 6.2% YoY in September, the Monetary Authority of Singapore (MAS) revealed.

Business loans growth also rose from 5.8% YoY in August to 8.0% YoY this month.

OCBC Treasury Research said the momentum lift came from general commerce, which grew 16.4% YoY, financial institutions, which grew 15.0%, and manufacturing, which grew from -0.1% to 11.1% YoY. Business services loans also continued to grow by 22.2% YoY, albeit lower than the 23.8% last month.

OCBC head of treasury and research Selena Ling said, "This is consistent with the resilient 3Q17 GDP growth cues seen in the region and the healthy ongoing manufacturing and trade activities. Domestic business confidence should also sustain into 4Q17 given the festive season pickup but may moderate slightly in 1Q18."

Meanwhile, consumer loans growth slowed down from 3.9% YoY in August to 3.6% YoY this month.

This is in line with the easing in housing/bridging loans growth.

"With the recent pickup in enbloc sales and interest in the private residential property market, it remains to be seen if the housing/bridging loans growth would moderate or maintain around the 4% handle," Ling said.