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Automobile loans rev up in 2010

Thrift banks corner more than half of automobile loans in 2010
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The year that was had automobile loans accelerate to record highs, based on the report of the Bangko Sentral ng Pilipinas, showing that 2010 posted a 23 percent increase compared to 2009. [Read about the financing schemes for small and medium enterprises here]

As of end-September 2010, total automobile loans (ALs) of universal, commercial, and thrift banks reached P111.4 billion, higher by 5.3 percent than last quarter’s P105.8 billion and by 23.0 percent than year ago’s P90.6 billion.  Meantime, the ratio of automobile loans to total loan portfolio went up to four percent from last quarter’s 3.9 percent and 2009’s 3.6 percent ratio.

In terms of loan quality, the non-performing automobile loans eased to 4.6 percent from last quarter’s 4.8 percent and last year’s 5.2 percent ratio. The improvement from last quarter was mainly brought on by the 5.3 percent growth in automobile loans, while the level of non-performing automobile loans barely moved. [Read about the Monetary Board\\\'s decision not to hike interest rates here]

Automobile loans cover all forms and kinds of vehicles, from the luxurious SUVs, Asian utility vehicles, vans, and even motorcycles. Data from the BSP showed that 51 percent of automobile loans come from thrift banks.

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