Al Salam Bank acquires consumer banking business of Ithmaar Bank; Ithmaar Holding stakes

Al Salam Bank acquires consumer banking business of Ithmaar Bank; Ithmaar Holding stakes

MANAMA: Al Salam Bank (Al Salam Bank) and Ithmaar Holding B.S.C. (Ithmaar Holding) have agreed the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank, and Ithmaar Holdings’ ownership stake in both Bank of Bahrain and Kuwait B.S.C (BBK) and Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain.

This announcement follows the execution of a memorandum of understanding between the two entities in October 2021. The transaction remains subject to the approval of Ithmaar Holding’s shareholders and the signing of definitive agreements.

Ithmaar Bank, an integral player in the development of Islamic finance in Bahrain and the wider region, will remain to be a wholly owned subsidiary of Ithmaar Holding and will continue its journey as an innovative and agile Sharia compliant banking institution post this strategic transaction maintaining its banking operations as a licensed Islamic bank regulated by the Central Bank of Bahrain, focusing on corporate banking and related services.

Al Salam Bank has a proven track-record in the M&A space, reflected in the Bank’s successful acquisition of BMI Bank and merger with Bahraini Saudi Bank (BSB) in 2014 and 2011 respectively. This transaction will position Al