Salmon Bank reports strong performance in 2025

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March 21, 2026 | 12:00am

MANILA, Philippines — Salmon Bank (Rural Bank) Inc. posted strong growth across key financial indicators in 2025, driven by rising customer adoption and sustained lending activity, while maintaining profitability and asset quality.

The tech-driven rural bank said its customer base doubled last year, supporting a 2.8-fold increase in deposits, reflecting what it described as “growing consumer confidence” in its artificial intelligence (AI)-enabled banking model.

This momentum translated into significant balance sheet expansion. The bank’s total loan portfolio surged by 2.5 times, anchored on what it called “strongly profitable and diversified small-ticket retail loans,” while total assets soared by 2.2 times to P4.4 billion.

Gross revenue also doubled during the period, while the bank reported a net interest margin of 40 percent, exceeding industry averages for rural, thrift and digital banks.

Despite rapid expansion, asset quality remained stable, with a gross non-performing loan ratio of two percent, “well below rural bank industry benchmarks” from the Bangko Sentral ng Pilipinas.

The bank attributed its performance to a combination of disciplined risk management and a growing opportunity in retail lending.

“Our 2025 results reflect growing customer confidence, strong business performance and our commitment to responsible banking,” said Raffy Montemayor, co-founder of Salmon and chairman of Salmon Bank.

“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 added.

To support further expansion, the bank is in the process of raising its equity capital to P1.6 billion, following a planned P400-million capital infusion from controlling shareholder Salmon Group Ltd., expected to be completed by April 2026.

The additional funding is seen to strengthen the bank’s capital base and provide room to scale its financial products, positioning it among the more well-capitalized challenger banks in the country.

On the funding side, Salmon Bank has been offering competitive time deposit rates to support its lending book. It currently provides interest rates of up to six percent per annum for deposits as low as P5,000, and as much as eight percent for placements of at least P1 million.

Salmon Bank is part of Salmon Group, a financial technology firm backed by global investors, including the International Finance Corp. of the World Bank Group and sovereign-linked funds from Abu Dhabi.