Islamic banking in Bahrain: $2.2bln Ithmaar deal a boost to Al Salam growth journey

Islamic banking in Bahrain: $2.2bln Ithmaar deal a boost to Al Salam growth journey

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Al Salam Bank’s $2.2 billion acquisition of Ithmaar Bank consumer banking division and a number of other assets is seen as a critical step in the bank’s growth journey and will result in a stronger industry positioning for Bahrain’s largest Islamic bank.

The landmark transaction received the shareholders’ approval of Ithmaar Holding at an EGM on March 17. The approval follows a memorandum of understanding in October 2021 and the agreement to proceed with the transaction in January 2022.

“This transaction is a significant step in our continued journey towards achieving our long-term growth strategy,” said Shaikh Khalid bin Mustahil Al Mashani, Chairman of Al Salam Bank. “Al Salam Bank continues to build on its robust track-record by executing numerous organic and inorganic growth initiatives cementing Al Salam Bank’s position as the fastest growing bank in the Kingdom of Bahrain.

“With significant potential for shared synergies, the acquisition of Ithmaar Bank’s consumer banking portfolio, with its rich history spanning almost four decades, will lead to significant growth for Al Salam Bank and will further reinforce Bahrain’s position as a leading Islamic Banking hub,” Shaikh Khalid said.

The transaction, which is subject to regulatory approvals and definitive agreements, entails the sale and transfer of: the