Image courtesy: Al Salam Bank Algeria
Al Salam Bank Bahrain Increases its Shareholding in Al Salam Bank Algeria to 66.7%
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Global Business Magazine- 3 minutes read
AL Salam Bank (ASB) Bahrain on Tuesday announced that it has increased its shareholding in Al Salam Bank Algeria (ASBA) from 53.1% to 66.7% following the purchase of additional shares from other shareholders.
Al Salam Bank Bahrain disclosed the latest acquisition through a filing with Dubai Financial Market this morning.
Al Salam Bank’s acquisition of additional shares in ASBA builds on its 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.
Previous Acquisitions
It may be recalled that on 3 January 2023, ASB announced the increase of its shareholding in ASBA from 16.58% to 37.43% and again on 21 June 2023, ASB announced the acquisition of a majority stake in ASBA, increasing its shareholding from 37.4% to 53.1%.
With total assets growing at a compounded annual growth rate (CAGR) of 23.3% since 2010, ASBA is the fastest growing bank in Algeria and reported total assets of $2.2 billion, a financing book of $1.3 billion, and a customer deposit base of $1.8 billion at the end of March in 2023.
The acquisition in June represented a significant milestone in Al Salam Bank’s growth strategy and further expands its regional presence.
The banking sector in Algeria boasts strong fundamentals, serving a young population with significant growth potential. The country’s strategic location in Africa, between Europe and the GCC region presents ASBA with a range of opportunities to grow retail banking, corporate banking, and trade finance. Al Salam Bank plans to further support ASBA with the objective of accelerating its growth and capturing new pockets of opportunities within the country and the wider region.
ASBA is a leading Sharia-compliant bank established in 2006, with 23 branches across Algeria. Its operations span corporate financing, international trade, personal financing, lease financing, property financing, and investment accounts.
