Salmon Bank hikes capital to P1.6 billion

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March 5, 2026 | 12:00am

MANILA, Philippines —  Salmon Bank (Rural Bank) Inc. is boosting its capital base after securing a fresh P400 million equity injection from its controlling shareholder, Salmon Group Ltd., bringing the bank’s total equity capital to P1.6 billion.

The investment, scheduled for completion by the end of March, will raise the bank’s stockholders’ equity to P1.6 billion from P1.2 billion based on its Dec. 31, 2025 balance sheet.

Salmon Group said the latest infusion would also bring its total capital investment in the rural bank to P1.3 billion as part of its efforts to expand the lender’s technology-driven banking platform in the Philippines.

The additional capital is expected to support the bank’s asset growth and the rollout of new financial products as it expands its digital banking services.

On a pro-forma basis, the capital injection will significantly strengthen the bank’s regulatory capital buffers. Salmon Bank’s core equity tier 1 ratio is projected to improve to 23.1 percent from 16.1 percent, while its total tier 1 ratio will rise to 29.2 percent from 22.8 percent.

Raffy Montemayor, co-founder of Salmon and chairman of Salmon Bank, said that 2025 was a breakout year for the lender.

“We scaled well, with strong governance and high capital discipline. This additional funding enables us to continue that momentum in 2026 as we grow responsibly and deliver game-changing services that elevate the way Filipinos bank,” he said.

The bank said its customer base more than doubled in 2025 compared with the previous year, supported by strong demand for its deposit offerings, including an eight percent time deposit product.

Salmon Bank said the demand has continued into 2026 as customers increasingly seek savings products that offer higher returns while maintaining predictability and security.

The lender also reported relatively low credit risk levels, with gross non-performing loans at 2.1 percent based on its published fourth quarter 2025 financial statements. The bank said this is among the lowest levels recorded by challenger and digital banks.

Salmon Bank, formerly known as Rural Bank of Sta. Rosa (Laguna) Inc., is majority owned by Salmon Group Ltd., a global financial technology firm backed by investors including the International Finance Corp., sovereign wealth funds, asset managers from Abu Dhabi as well as US-based venture investors.