MANAMA, BAHRAIN: Al Salam Bank has announced the acquisition of a majority stake in Al Salam Bank Algeria (ASBA), increasing its shareholding from 37.43% to 53.13%, following the purchase of shares from various shareholders.

The acquisition will boost Al Salam Bank’s regional presence and growth prospects, as ASBA is the fastest growing bank in Algeria 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 as of Q1 2023. ASBA aims to grow its financing book, diversify product offerings, increase market share, and accelerate its digitalization journey.

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.

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.”

Nayed added: “Al Salam Bank has completed several landmark transactions over the last decade that have cemented our position as one of the region’s leading Islamic financial institutions. M&A will remain an important pillar of our growth plans.”

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.

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