BisB & ASBB to form the Largest Islamic Bank in Bahrain

10-August-2011

It has been disclosed in Manama yesterday that Bahrain Islamic Bank BSC (BisB), the first Islamic Bank established in Bahrain in 1979 engaged in retail and corporate banking and Al-Salam Bank-Bahrain BSC (ASBB), an Islamic bank established in 2006 also engaged in retail and corporate banking, are now in discussions to merge the two Banks to become the largest Islamic bank in Bahrain in terms of total assets, it was disclosed in Manama today. 

The two Boards of Directors of BisB and ASBB stated that consolidation is the way forward for local banks in general and Islamic banks in particular in the aftermath of financial crisis and economic downturn and greater competitive banking environment in the region. 

Based on publicly available information of the two entities, the combined entity would have total assets of BD1.7 Billion and shareholders’ equity of BD337 million. The combined entity would be the third largest domestic bank in terms of total assets and the second largest in terms of equity and shall have significant underwriting capacity, synergy coming from the two Banks' enhanced service delivery capabilities and be a stronger regional player in the Islamic Banking Industry. This will also reflect on the extent of the development and pioneering role played by the Islamic Banks in Bahrain.