Bahrain’s Al Salam Bank has acquired a majority stake in Al Salam Bank Algeria, increasing its shareholding from 37.43% to 53.13%, following the purchase of shares from various shareholders.
With total assets growing at a CAGR of 23.3% since 2010, Al Salam Bank Algeria is the fastest-growing bank in the North African country closing Q1 2023 with total assets of $2.2 billion, a financing book of $1.3 billion and a customer deposit base of $1.8 billion.
The acquisition represents a significant milestone in Al Salam’s growth strategy and further expands its regional presence. The transaction is expected to strengthen the growth prospects of the bank’s Algerian business which aims to grow its financing book, diversify product offerings, increase market share and accelerate its digitalisation 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 Al Salam Bank Algeria with a range of opportunities to grow retail banking, corporate banking and trade finance.
Al Salam plans to further support its Algerian unit to accelerate its growth and capture new pockets of opportunities within the country and the wider region.
“This strategic transaction will further reinforce our position in the MENA region. Al Salam Bank Algeria is a highly promising growth story with an annualised ROE close to 20% in Q1 2023,” said Rafik Nayed, Group CEO of Al Salam Bank.
Al Salam Bank Algeria is a leading Shariah-compliant bank established in 2006, with 23 branches across the country. Its operations span corporate financing, international trade, personal financing, lease financing, property financing and investment accounts.
The Bahraini lender’s acquisition of additional stake builds on its successful merger and acquisition track record, including the recent acquisition of Ithmaar Bank’s consumer banking business in 2022.
