Security Bank expects slower lending activity this year

Security Bank Corp. expects a slower lending activity this year due to slower corporate borrowing.

“I think the loan growth this year will be lower than last year,” Security Bank president Alfonso Salcedo told reporters on the sidelines of a forum in Makati City on Wednesday.

Last year, Security Bank was able to grow its loan portfolio by 28 percent to P369 billion.

“For one thing, our loan growth last year was very strong. It was 28 percent. It surprised us ... This year, it will be slower than that,” Salcedo said.

Industry-wide lending has been slowing down this year.

“But I don’t think it’s because of higher interest rates ... I think the lower loan growth is a function of base effects because last year was strong,” Salcedo noted.

“Because when you look at the industry, a lot of the loan growth is driven at the top, by the conglomerates—because those are the lumpy ones. Those have timing effects. Because if they don’t need it, they don’t,” he said. —VDS, GMA News