Bank al Etihad and INVESTBANK announce Jordan’s largest banking merger

By Gloria Methri

Bank al Etihad and INVESTBANK have jointly announced the approval of a strategic merger, marking what is set to be the largest banking consolidation in Jordan’s financial history. Under the terms of the agreement, Bank al Etihad will acquire 100% of INVESTBANK’s share capital through a capital increase. The newly issued shares will be granted to INVESTBANK shareholders in return for transferring full ownership of their shares, paving the way for a full legal merger.

Following regulatory and shareholder approvals, INVESTBANK will be formally integrated into Bank al Etihad, which will remain the surviving entity.

This transaction significantly strengthens the merged entity’s capital base and operational capacity. Post-merger, Bank al Etihad’s capital will rise to JOD 325.2 million, while total equity will reach approximately JOD 1 billion. Combined total assets will increase to nearly JOD 11 billion, establishing Bank al Etihad as one of Jordan’s largest national banking institutions.

The move aligns with the Central Bank of Jordan’s strategy to support consolidation in the sector, encouraging the creation of stronger, more resilient financial institutions capable of supporting long-term economic growth.

“This merger represents a significant achievement and a strategic step that reinforces our position in the local market and supports our regional expansion ambitions,” the banks stated in a joint release. “The unified institution will offer integrated financial services to meet the growing needs of individuals and businesses, while improving operational flexibility and geographic reach.”

The banks have also reaffirmed their commitment to employee retention, recognising the importance of human capital in maintaining institutional balance and fostering sustainable growth. “We are committed to providing a stable and supportive work environment that empowers our professionals through this next phase,” the statement added.

As part of the new governance structure:

• Basem Salfiti will remain Chairman of the Board
• Fahmi Abu Khadra will serve as Vice Chairman (pending board approval)
• Muntaser Dawwas will be appointed CEO (subject to regulatory approval)
• Her Excellency Nadia Al-Saeed, the current CEO, will continue in her role until the transition is completed

The proposed merger will be formally presented to the general assemblies of both banks at extraordinary shareholder meetings scheduled for 25 June 2025. The completion of the transaction is subject to the approval of all relevant authorities, including the Central Bank of Jordan, the Ministry of Industry and Trade / Companies Control Department, and the Jordan Securities Commission.