Singapore bank lending up 7.6% year-on-year in June, fastest pace in over two years

Singapore's Big Three lenders.
Singapore's Big Three lenders.ST PHOTO: FIILE

SINGAPORE - Bank lending in June rose 7.6 per cent year-on-year in June, the fastest pace in over two years as both business and consumer loans went up.

Loans were also higher for the ninth straight month, having notched year-on-year increases since October 2016.

Total bank loans rose to S$635.52 billion from S$590.41 billion in June last year, according to preliminary data from the Monetary Authority of Singapore (MAS) on Monday (July 31).

Compared with the previous month, June lending grew 0.4 per cent from S$380.99 billion in May.

Bank lending has been picking up pace in recent months, rising 6.3 per cent year-on-year in March, 7 per cent in April and 6.8 per cent in May.

This comes as Singapore's economic growth outlook has improved slightly, with the Government now tipping growth in 2017 to come in above 2 per cent. That sits at the higher end of its 1 per cent to 3 per cent forecast for the full year and surpasses last year's tepid 2 per cent.

Lending to businesses expanded for the seventh straight month in June to $381.13 billion, a 10.5 per cent rise from a year earlier, led by loans to financial services and general commerce firms.

Meanwhile, consumer loans rose 3.7 per cent year-on-year to $24.39 billion, supported mainly by growth in mortgages.