In a recent announcement, Bahrain’s Al Salam Bank stated that it had acquired Ithmaar Bank in a deal valued at USD2.2 Billion. The acquisition of Ithmaar Banks consumer banking division and other assets has been viewed as an important step in the bank’s growth, and will strengthen the banks industry positioning as Bahrain’s largest Islamic Bank.
The transaction received approval from Ithmaar Bank’s shareholders on the 17th of March. Earlier, an agreement to proceed with the transaction was received in January 2022.
Chairman of Al Salam Bank, Shaikh Khalid bin Mustahil Al Mashani, stated that the transaction was a significant step in a constant endeavor to achieve the long-term growth strategy of the bank. He said that Al Salam Bank executes a number of growth initiatives to reaffirm it’s position as the fastest growing Islamic bank in Bahrain.
Ithmaar acquisition a strategic move
Stating that the acquisition of Ithmaar Bank with it’s rich history of almost forty years will lead to significant growth for Al Salaam Bank, he also said that the transaction will enhance Bahrain’s position as a leading hub for Islamic Banking.
The acquisition of Ithmaar Bank will cement Al Salam Bank’s position as the largest Islamic Bank in the Kingdom of Bahrain, and one of the leading banks in the region. The acquisition is being seen as a benchmark for both local and global Mergers and Acquisitions.
Group CEO of Al Salam Bank, Mr.Rafik Nayed said that the transaction will have a positive impact on the bank’s clients. He also said that the bank plans to deliver an enhance product and service offering based on the expanded infrastructure and resources.
Al Salam Bank has a history of successful M&A’s, including the acquisition of BMI bank in 2014 and merger with Bahraini Saudi Bank in 2011. The landmark transaction with Ithmaar Bank will enhance Al Salam Bank’s core banking and consumer banking divisions. This is being seen as an effective move to reinforce the bank’s leading position in the Kingdom of Bahrain. With the added benefit of combining their customer base, the acquisition has been designed to continue the sustainable growth path of Al Salam Bank.
A spokesman for the bank said that the transaction will greatly contribute to Bahrain’s efforts to position itself as an important Islamic Banking hub in the region.
About Al Salam Bank
Al Salam Bank established its headquarters in the Kingdom of Bahrain in 2006, quickly gaining a reputation as one of the fastest growing banks in Bahrain, and an influential force in the Islamic Banking sector. It is the industry’s strongest bank in asset capital, and has a proven track-record of being able to shift according to market dynamics using an aggressive and agile growth strategy.
Al Salam Bank utilizes it’s digital-first philosophy to cater to the modern-day needs of it’s customers, with curated financial solutions and unbeatable customer experiences. With data-driven insights and cutting-edge technology, the bank offers clients a wide range of Shari’a compliant services and financial products.
In addition to it’s existing portfolio of retail banking services, Al Salam bank also offers a range of private banking, corporate banking, international banking and asset management services to its esteemed clients.
The landmark acquisition of Ithmaar Bank by Al Salam Bank has been viewed by the banking sector as one of the biggest and most important mergers in the Kingdom of Bahrain. The acquisition is expected to significantly add to Al Salam Bank’s wide consumer banking division. With both the banks priding themselves on compliance with Shari’a principles, and placing customer experience as one of their foremost priorities, this transaction is expected to transform overall consumer banking experiences in the Kingdom of Bahrain.
