Al Salam Bank celebrates 20 years of transformational growth and market leadership

Al Salam Bank celebrates its 20th anniversary, culminating two decades of strategic development, institutional flexibility, and continued leadership in the banking sector in Bahrain. Since its inception on January 19, 2006, the Bank has evolved from a new entity in the market into the largest and fastest growing bank in the Kingdom of Bahrain, driven by disciplined execution, a clear integration strategy, and a long-term approach to value creation based on the trust of customers and shareholders.

From the beginning, the bank was keen to be part of the regional banking development, by developing governance, risk and operational frameworks in line with global best practices. The initial public offering was a milestone in the bank’s journey in 2006, as the value of applications exceeded 2.7 billion Bahraini dinars, setting a national record and indicating strong confidence in the market. During successive economic cycles, including the global financial crisis in 2008, Al Salam Bank maintained profitability and liquidity, fostering a banking culture based on balance sheet strength, and paving the way for its emergence as a leader in acquisitions and mergers. Over the years, this strategic approach has enabled the bank to successfully implement and integrate four major banking acquisitions within the Kingdom, including Bahrain Saudi Bank in 2009 and BMI Bank in 2014, thus establishing an unprecedented record in mergers across the banking sector in Bahrain, and reflecting financial flexibility, effective governance, and disciplined execution.

The year 2018 marked a pivotal turning point when the bank began implementing a comprehensive and meticulous transformation strategy. The bank moved from gradual self-growth to transformational expansion based on three main pillars: mergers and acquisitions, digital expansion, and asset diversification. This strategy culminated in the acquisition of Ithmaar Bank’s retail banking sector in 2022, followed by KFH-Bahrain in 2024. In conjunction with market-leading organic growth, these operations contributed to significantly expanding the bank’s scope and increasing its customer base more than tenfold since 2018. Through disciplined integration and regulatory alignment, Al Salam Bank has emerged as a role model for post-merger value creation.

The bank’s financial performance confirmed the effectiveness of this approach, as total assets tripled, market value tripled, profitability increased nearly four-fold, while return on equity reached 35.3%, which placed the bank as the fastest growing banking institution in the region. These results not only reflect the scale of expansion, but also highlight the efficiency of the cost structure, discipline in execution, and a technology-enabled operating model designed to achieve optimal and sustainable growth.

Digital transformations have remained a fundamental pillar, as automation and comprehensive redesign of the customer experience have contributed to providing seamless banking experiences that are available at all times. In parallel, the bank invested systematically in corporate culture, tripling the number of employees within five years, which contributed to maintaining harmony, responsibility and clarity of goals, in line with the bank’s growth journey. This commitment was embodied in the development of the bank’s brand in 2021, where Al Salam Bank was presented in a new guise as a digital institution that provides smart banking services designed to achieve a distinctive customer experience, and is based on the principle of “strengthening relationships through enriching experiences.”

On this occasion, Rafik Nayed, CEO of Al Salam Bank Group, said: “Reaching our twentieth anniversary is not just a time scale, but rather a reflection of the clarity of our strategy, the discipline of our implementation, and the trust placed in us by our customers, partners, and shareholders. Over the past two decades, the bank has transformed into a resilient and well-established institution, able to adapt to its environment while preserving its values. We look to the future with determination and seek to continue providing sustainable value through disciplined growth and investment.” Wise in innovation, and building long-term partnerships that enhance financial solidity, operational strength, and consistency of outstanding execution over the long term.”

In celebration of its twentieth anniversary, Al Salam Bank commemorates its journey through a full year of celebrations that reflect the shared story it has woven with its customers, employees and the community. This occasion revolves around the launch of the “20 Years… Written by Your Own” campaign, which celebrates the bank’s development journey, its most prominent milestones, and the values ​​that shaped its growth. As part of these celebrations, the bank will launch a series of initiatives and announcements that reflect its legacy, while at the same time emphasizing its continued focus on providing banking solutions tailored to the needs of customers in the future.