Salmon Rural Bank Posts PHP 151 Million Net Profit in First Half

The Rural Bank of Sta. Rosa (Laguna), Inc., a subsidiary of financial technology company Salmon Group Ltd., has reported a net profit of PHP 151.1 million for the first half of the year. This figure is up significantly from the PHP 82.5 million recorded in the same period a year ago.

The bank also saw its consumer lending portfolio grow by 33.8% to PHP 1.2 billion. Its deposits also increase by 66.7% to PHP 952 million from their end-2024 levels.

According to Raffy Montemayor, Salmon Co-Founder and the bank’s Chairman, the results stem from profitable loans and an efficient, low-cost business model.

“Our core banking system is cloud-based, so we don’t invest in data centres that are very costly to maintain. We also have two branches, so we’re lean,” Raffy said.

He added that the mobile app reduces the need for physical branch visits. Since then, it has allowed savings to be passed to customers through higher deposit interest rates.

The growth in deposits was attributed to the bank’s 8.88% interest rate on its time deposit product.

“Before it was only for one year, and now we’re providing it for up to five years,” Raffy noted, adding that customers have flexible interest payment options.

The bank reported a return on equity of 58.9% and a capital adequacy ratio of 32.7%.

Last month, Salmon announced it had raised USD $88 million from a funding round. Raffy confirmed this capital will be used to support the bank’s continued growth and fund its loan portfolio.

Featured image by Freepik.