The Bahraini banking group Al Salam Bank announced, this Thursday, June 20, 2023, the acquisition of a majority stake in Al Salam Bank Algérie (“ASBA”), increasing its stake from 37.43% to 53.13%, following the purchase of shares from various shareholders.
“With total assets growing at a compound annual growth rate (CAGR) of 23.3% since 2010, ASBA is the fastest growing bank in Algeria, closing the first quarter of 2023 with total assets of 2. 2 billion US dollars, a financing portfolio of 1.3 billion US dollars and a customer deposit base of 1.8 billion US dollars”, details Al Salam Bank in a press release published on its website.
This acquisition represents “an important step in Al Salam Bank’s growth strategy” and “further strengthens its regional presence”, indicates the same source. “The transaction will also strengthen the growth prospects of ASBA, which aims to expand its financing portfolio, diversify its product offering, increase its market share and accelerate its digitalization journey,” said the Bahraini banking group.
“The banking sector in Algeria has solid fundamentals, serving a young population with significant growth potential. The country’s strategic location in Africa, between Europe and the GCC region, provides ASBA with a range of opportunities to develop retail banking, corporate banking and trade finance,” said Al Salam Bank. , which plans to “continue to support ASBA with the aim of accelerating its growth and seizing new opportunities in the country and the wider region.”
The same source explains that “the acquisition of ASBA by Al Salam Bank builds on the Bank’s positive track record in mergers and acquisitions, including its successful merger with the Saudi-Bahrain Bank (BSB) in 2011, l acquisition of BMI Bank in 2014, and the latest acquisition of selected assets from Ithmaar Holding, including the retail banking business of Ithmaar Bank in 2022.”
Commenting on the acquisition, Rafik Nayed, Group Managing Director of Al Salam Bank, said: “This strategic transaction will further strengthen our position in the MENA region. Al Salam Bank Algeria is a very promising growth story, with an annualized ROE close to 20% in the first quarter of 2023. Having acquired a majority stake, we are committed to ASBA continuing to gain market share while offering its customers a full range of products and a seamless experience.”
Mr. Nayed added: “Al Salam Bank has completed several major transactions over the past decade which have cemented our position as one of the leading Islamic financial institutions in the region. Mergers and acquisitions will remain an important pillar of our growth plans. »
Al Salam Bank Algeria is a leading Sharia-compliant bank, established in 2006, with 23 branches across Algeria. Its activities include corporate finance, international trade, personal finance, rental finance, real estate finance and investment accounts, the statement said.
