A local bank in Laguna province has set its sights on expansion as it reported a significant increase in net income in the first three quarters of the year.
In a recent briefing, Rural Bank of Sta. Rosa (Laguna), Inc. chair and financial technology firm Salmon’ co-founder Raffy Montemayor announced plans to expand the firm’s operations to Cebu province, as well as opening a new branch in Bonifacio Global City, Taguig City by the second quarter of 2025.
The rural bank has another branch in Bacoor, Cavite, and plans to open more next year.
Montemayor's Salmon acquired a 59.7-percent controlling stake at Rural Bank of Sta. Rosa (Laguna) Inc., a rural bank that has been operating since 1963, last January.
The move was generated by the bank's "strong" financial position, as financial reports showed total net income during the first three quarters of 2024 amounting to P166.7 million from USD1.7 million in the same period last year
The bank's total loan portfolio likewise rose to P798.8 million from last year's P67.5 million.
Total deposits increased to P522.1 million from P7.5 million.
"The financial position of the bank is really good. We're growing it profitably and sustainably which will allow us to inject more technology which will allow us to inject more people, put everything in place so that we can really scale up the business and scale up the bank itself and hopefully progress its license over time," he added.
Salmon and the Rural Bank of Sta. Rosa is supported by the International Finance Corporation, a member of the World Bank Group; Northstar Group, a Singapore-headquartered private equity and venture capital fund manager; ADQ, the sovereign wealth fund of Abu Dhabi; and other international and Filipino investors.
Montemayor said they are eyeing to increase the bank's authorized capital to as much as P2 billion by end-2025.
The target of injecting up to P2 billion by the end of 2025 is to support further investments in talent, advanced technology, new product,s and loan portfolio growth of the bank.
(With report from PNA)
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