Salmon Bank (Rural Bank) Inc. reported on Thursday a significant expansion of its balance sheet for 2025, with total assets growing 2.2 times to P4.4 billion as the company prepares for a fresh capital injection to fuel further growth.
The Philippines-based challenger bank doubled its customer base over the past year and saw total deposits increase 2.8 times. This supported a 2.5-times expansion in its loan portfolio, which focuses on diversified small-ticket retail loans.
The bank maintained a net interest margin of 40 percent, a figure it stated surpasses industry averages for rural, thrift, and digital banks in the country.
The bank is in the process of increasing its equity capital to P1.6 billion. This follows a P400-million capital injection from its controlling shareholder, Salmon Group Ltd,, which is expected to be completed by April 2026. The additional funding is intended to provide the institution with significant headroom to expand its financial product offerings.
Despite the rapid scaling, Salmon Bank reported that its gross non-performing loan ratio remained steady at 2 percent. The bank attributed the performance to its AI-enabled banking model and a disciplined approach to risk management within the retail lending sector.
Salmon chairman and Salmon Bank co-founder Raffy Montemayor said the results reflect growing customer confidence and a commitment to responsible banking.
“With our superior capitalization, we’re well-positioned to continue our momentum of sustainable growth, as we deliver high-value, AI-enabled banking services that meet the evolving needs of Filipinos,” Montemayor said.
To support its lending portfolio, the bank has introduced competitive deposit rates, offering 6 percent interest on time deposits as low as P5,000. Customers with a minimum deposit of P1 million can receive interest rates of up to 8 percent.
Salmon Group is backed by international investors including the International Finance Corp. and Abu Dhabi’s sovereign wealth fund.
Originally founded in 1963, the rural bank was acquired and rebuilt by the group to operate as a technology-driven institution under a Bangko Sentral ng Pilipinas license.
