The Boards of Directors of Bahraini retail and commercial banking institution, BMI Bank B.S.C. (c), and Al-Salam Bank-Bahrain B.S.C. (ASBB), an Islamic Bank incorporated in Bahrain and engaged in retail banking, today announced their in principle agreement to proceed with discussions to merge the two Banks to create the third largest Bank in Bahrain.
The Chairman of BMI Bank Sheikh Khalid bin Mustahail Al Mashani and the Chairperson of ASBB, H.H. Shaikha Hessa bint Khalifa bin Hamad Al Khalifa jointly stated that consolidation was the only way forward for Bahraini Banks to stay competitive and financially strong in the aftermath of the recent financial crisis and resulting economic downturn. The new entity will benefit from a collective pool of resources both in terms of Management talent, customer base as well as superior products and services in addition to a strengthened delivery network. This will also create a stronger player in the market place across core business including retail, wholesale, SME, private and investment banking and wealth management.
The new entity would create the third largest bank in Bahrain by assets and will have a significantly higher underwriting capacity with total assets of approximately BD 1.7 billion and shareholders' equity of approximately BD 293 million. The CEO's of the two Banks Jamal Al-Hazeem and Yousif Taqi stated that the merger would enable the new entity to offer a wider range of unique and innovative financial products and services to their respective customer base. The new entity would become a strong player within the region and would significantly improve shareholder value through enhancement of revenue and rationalization of costs.
The Boards of Directors of the two Banks have agreed in principle in favor of a merger, subject to obtaining the respective shareholder's approval and seeking the necessary regulatory consents. The two Banks have created a committee to finalize the details and mechanics of the merger.
BMI Bank currently operates in Bahrain through a network of 10 branches and 28 ATM's whilst ASBB operates in Bahrain through a network of 10 branches and 20 ATMs.
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About BMI Bank B.S.C. (c)
Bahraini retail and commercial banking institution, BMI Bank is a retail bank, registered in Bahrain and regulated by the Central Bank of Bahrain. The Bank offers its customers a complete range of innovative and unique financial products and services through its extended network of strategically located branches and ATMs. The Bank's multi-award winning eChannels including its corporate website www.bmibank.com.bh have been honored with various prestigious awards over the past few years helping in consolidating both its position as well as perception within the country as a key retail Bank. The Bank posted a profit of USD 1.3 million for the year ended 31st December 2012, marking its sixth straight quarter of profit as well as its full-year return to profitability for the first time in the last five years. The Bank maintains an excellent Capital Adequacy Ratio of over 18% with very strong liquidity as reported during the year ended 2012.
BMI Bank operates an international branch in Qatar, owns and operates the Diners Club cards franchise in Bahrain, has a 21.33% shareholding in Gulf African Bank - Kenya, and has an equal stake in an Offshore Bank in the Seychelles (a joint venture with Nouvobanq). BMI Bank's shareholders include some of the strongest and most respected financial institutions across the GCC, including BankMuscat (SAOG) the flagship financial institution in the Sultanate of Oman. With assets worth over USD 18 billion, BankMuscat (SAOG) is the leading financial services provider in Oman with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management. BankMuscat has the largest network of 134 branches, 409 ATM, 141 CDM's and 4500 POS terminals in Oman.
BMI Bank currently offers its local customers a range of retail products and services including regular savings and current accounts, Visa Platinum, gold and classic credit cards, a Diners Club credit card and La Carte, a co-branded Visa credit card in partnership with Geant Hypermarket Bahrain. During 2013, the Bank enhanced its flagship savings scheme "Ayadi" with the introduction of an increased prize pool of USD 1.8 million, 4 Diyar Homes Villas as Grand Ayadi Prizes as well as a new "Ayadi for Students" account exclusively for students with 24 prizes to be awarded during the year. The Bank also offers customers fixed deposits, the Salaf range of personal, auto and mortgage loans and a new phone banking service. In addition to its secure credit card online repayment channel, customers can also deposit real-time cash into their various accounts with the Bank using special cash deposit ATMs located at the self-service area within the Bank's branches. BMI Bank also recently unveiled "Prestige" its premier service proposition, catering to the affluent individual looking to receive personalized attention and tailored financial solutions from their banking partner.
In addition to Retail Banking BMI Bank also offers Wholesale, SME, Private and Islamic Banking as well as Financial Institutions Group (FIG) and Treasury services.
For further information, please contact:
Gordon Andrade; Head, Corporate Communications
BMI Bank - Bahrain
E-mail: gordon.andrade@bmibank.com
Cell: +97339782225
Incorporated on 19 January 2006 in the Kingdom of Bahrain with a paid-up capital of BD 120 million (US$ 318 million), Al Salam Bank-Bahrain B.S.C. commenced commercial operations on 17 April 2006. The Bank operates under Islamic principles in accordance with regulatory requirements for Islamic banks set by the Central Bank of Bahrain.
The Bank's high-caliber management team comprises highly qualified and internationally experienced professionals with proven investment expertise in key areas of banking, finance and related fields. Management and staff are supported by a world-class Information Technology (IT) infrastructure and the latest 'smart' working environment.
Al Salam Bank-Bahrain is committed to adopting internationally recognized standards and best practices and operates with the highest levels of integrity, transparency and trust.
The Bank is equally committed to its role as a concerned corporate citizen, actively seeking ways to contribute and add value to the social and economic well-being of the local communities in which it invests and operates.
For further information, please contact:
Adnan Al Shaikh
Head of Investor Relations and Corporate Communications
Tel: +973 39336900
© Press Release 2013
