Salmon Bank gets aggressive from new cap raise

Salmon Bank (Rural Bank) Inc. has raised its equity capital to PHP 1.6 billion following a fresh PHP 400 million capital infusion from its controlling shareholder, Salmon Group Ltd.

The new funding brings the total capital invested by Salmon Group to upgrade the bank to PHP 1.3 billion, with the latest injection expected to be finalized by the end of March 2026.

Based on a pro forma balance sheet as of Dec. 31, 2025, the additional capital increases the bank’s stockholders’ equity from PHP 1.2 billion to PHP 1.6 billion while raising its Core Equity Tier 1 ratio from 16.1 percent to 23.1 percent.

The bank’s total Tier 1 ratio is also projected to improve from 22.8 percent to 29.2 percent as a result of the investment.

The strengthened capital base is intended to support continued asset expansion and the rollout of new products central to the bank’s growing technology driven banking platform.

On both absolute and relative measures, the latest capital boost positions Salmon Bank among the most strongly capitalized technology focused challenger banks in the Philippines.

The investment is also expected to enhance the bank’s capacity to expand responsibly while preserving solid liquidity and capital adequacy as it broadens access to financial services nationwide.

Raffy Montemayor, co founder of Salmon and chairman of Salmon Bank, said the bank experienced significant growth in 2025 and maintained strong governance and disciplined capital management, adding that the new funding will help sustain that trajectory in 2026 while introducing transformative services for Filipino customers.

In 2025, the bank more than doubled its client base from the previous year, driven by robust demand for its deposit offerings, including an 8 percent time deposit product.

The bank reported continued demand for these products this year as customers seek returns that offer stability and security.

According to its published fourth quarter 2025 financial statements, the bank’s gross non performing loans stood at 2.1 percent, placing it among the lowest levels recorded by challenger and digital banks.

Salmon Bank is majority owned by Salmon Group, a global financial technology company backed by investors that include the International Finance Corporation, a member of the World Bank Group, as well as a sovereign wealth fund and asset managers based in Abu Dhabi and leading venture capital investors from the United States.