Salmon’s bank unit posts record H1 gains, signals strong lending push

Insider Spotlight

• Rural Bank of Sta. Rosa grows assets 43 percent in the first half 2025 under Salmon
• Bank posts 58.9 percent return on equity, outperforming rural sector’s 15.7-percent average
• Time deposits, net loans surge amid tech-led transformation

Salmon Group’s rural banking subsidiary, the Rural Bank of Sta. Rosa (Laguna) Inc., reported strong financial and operational results for the first half of 2025, driven by a tech-focused transformation strategy and a growing consumer lending portfolio.

The bank’s total assets rose 43 percent to P1.8 billion, while net loans climbed 33.8 percent to P1.2 billion. Deposits, primarily time deposits, expanded by 66.7 percent to P952 million. Shareholder equity more than doubled, growing from P261 million to P707 million in six months.

“In the first half of 2025, the Bank made significant strides in its transformation, driven by strategic investments in technology, talent, and governance,” said Salmon co-founder and bank chair Raffy Montemayor.

By the numbers

The bank’s profitability outpaced the rural banking sector:

• Return on equity: 58.9 percent vs. 15.7 percent sector average
• Return on assets: 24.9 percent vs. 2.8 percent sector average
• Capital adequacy ratio: 32.7 percent, far above the 18 percent benchmark

Montemayor said a standout driver of growth was the bank’s 8.88-percent time deposit product, now fully accessible via the Salmon mobile app.

“We expect to launch full online onboarding for new clients, making the account opening process seamless and user-friendly,” he added .

Why it matters

The results affirm Salmon’s ongoing digital banking push in underserved segments. Since acquiring control in 2024, Salmon has overhauled the bank’s credit operations using AI-based scoring models and mobile-first distribution.

The addition of Atty. Juan De Zuñiga Jr., a former BSP official, to the board also signals governance enhancements aligned with growth.

In June, Salmon raised $88 million in debt and equity. Of the $28 million equity raised, a large portion will be injected into the bank to boost capital and expand its lending footprint.

What’s next

The bank plans to continue scaling its balance sheet and expanding services, targeting consumers overlooked by traditional banks. Salmon’s app remains one of the highest-rated in the country, with a 4.8-star rating.