Salmon Group wants to boost Rural Bank of Sta. Rosa’s capital to P1.2-B by 2025

Financial services provider Salmon Group Ltd. on Thursday announced plans to infuse fresh investments into the Rural Bank of Sta. Rosa (Laguna) Inc., as it aims to bring the bank’s total capital to P1.2 billion by the end of 2025.

The Salmon Group said  the capital infusion, subject to regulatory approvals from the Bangko Sentral ng Pilipinas (BSP), will support the bank’s continued growth after achieving one of the highest returns on equity (ROE) among regulated financial institutions in the country.

The bank earlier said it has already applied to the BSP for an increase in its authorized capital to P1.2 billion.

“The recent success of the Rural Bank of Sta. Rosa (Laguna), with its exceptional growth and market-leading ROE, is a testament to the potential of combining innovation with a strong commitment to local communities,” Salmon co-founder Pavel Federov said in an emailed statement.

This comes as Salmon completed its $30-million Series A-2 equity financing round, with investors such as the International Finance Corporation (IFC) and Abu Dhabi’s sovereign wealth fund ADQ, which committed amounts in excess of their pro-rata allocation rights.

“With this latest investment round, we are positioned to scale our operations even further, bring new products to market, and deepen our partnerships across the financial ecosystem,” Federov said.

Salmon in January acquired a 59.7% controlling stake in the Rural Bank of Sta. Rosa (Laguna), allowing the firm to offer its consumer credit and debit products across the country.

It reported a P400-million loan portfolio as of May, which reflected a 648% increase from P54 million in May 2023. This brought its year-to-date revenues up 432% to P66 million, and net income to P40 million as of May 2024.

Salmon co-founder Raffy Montermayor in June said the firm is looking to reach a $2-billion or P100-billion loan portfolio in the next three to five years, and a $200-million or P10-billion net income from Philippine operations. —RF, GMA Integrated News