Al Salam Bank buys majority stake in Al Salam Bank Algeria

TDT | Manama    

The Daily Tribune – www.newsofbahrain.com

Al Salam Bank announced the acquisition of a majority stake in Al Salam Bank Algeria, increasing its shareholding from 37.43% to 53.13%, following the purchase of shares from various shareholders.

With total assets growing at a compounded annual growth rate (CAGR) of 23.3% since 2010, ASBA is the fastest growing bank in Algeria closing Q1 2023 with total assets of USD 2.2 billion, a financing book of USD 1.3 billion, and a customer deposit base of USD 1.8 billion.

The transaction is expected to strengthen the growth prospects of ASBA which aims to grow its financing book, diversify product offerings, increase market share, and accelerate its digitalization journey.

Al Salam Bank’s acquisition of ASBA builds on the Bank’s successful M&A track record, including its successful merger with Bahraini Saudi Bank (BSB) in 2011, the acquisition of BMI Bank in 2014, and the latest acquisition of select assets from Ithmaar Holding including Ithmaar Bank’s consumer banking business in 2022.

Rafik Nayed, Group Chief Executive Officer of Al Salam Bank said: “This strategic transaction will further reinforce our position in the MENA region. Al Salam Bank Algeria is a highly promising growth story with an annualized ROE close to 20% in Q1 2023. Having acquired a majority stake, we are committed to ensure that ASBA continues to gain market share while providing clients with a complete product offering and a seamless experience.” ASBA is a leading Sharia-compliant bank established in 2006, with 23 branches across Algeria.