Bank Muscat board proposes 30 per cent dividend for 2016

Muscat: Bank Muscat, the flagship financial services provider in the Sultanate, has proposed a 30 per cent dividend for the year 2016. Continuing the bank’s strong dividend payment track record, the Board of Directors has proposed 25 per cent cash dividend for the year 2016 which is consistent with the cash dividend paid in the last many years. In addition, 5 per cent dividend in the form of bonus shares has been proposed.
The meeting of the Board of Directors chaired by Sheikh Khalid bin Mustahail Al Mashani, Chairman, on Sunday, approved the 2016 financial results and dividend payout, subject to approval of the Central Bank of Oman (CBO) and shareholders of the bank.
Shareholders would receive cash dividend of OMR0.025 per ordinary share of OMR0.100 each aggregating to OMR62.406 million on the bank’s existing share capital. In addition, they would receive bonus shares in the proportion of one share for every 20 ordinary shares aggregating to 124,812,512 shares of OMR0.100 each amounting to OMR12.481 million. The proposed cash dividend and issuance of bonus shares are subject to formal approval of the annual general meeting of shareholders and regulatory authorities.
The bank posted a net profit of OMR176.56 million for 2016 compared to OMR175.45 million reported in 2015, an increase of 0.6 per cent. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at OMR274.15 million for the year 2016 compared to OMR260.51 million for the same period in 2015, an increase of 5.2 per cent.
Non-interest income at OMR142.03 million was lower by 3.5 per cent compared to OMR147.23 million for the year ended December 31, 2015. Operating expenses for the year ended December 31, 2016 at OMR174.08 million was marginally higher by 1.8 per cent as compared to OMR171.06 for the same period in 2015.
Impairment for credit losses for the year of 2016 was OMR70.29 million as against OMR71.98 million for the same period in 2015. Recoveries from impairment for credit loss was OMR36.24 million for the year of 2016 as against OMR35.88 million for the same period in 2015. Share of income from associates for the year of 2016 was OMR1.73 million against OMR2.56 million for the same period in 2015.
Net Loans and advances from conventional operation increased by 6.1 per cent to OMR7,102 million as against OMR6,695 million as at December 31, 2015. Customer deposits from the conventional operations decreased by 0.6 per cent to OMR6,695 million as against OMR6,738 million as at December 31, 2015.
Islamic financing receivables amounted to OMR855 million of December 31, 2016 compared to OMR635 million in the same period of 2015. Islamic Banking customer deposits amounted to OMR763 million as of December 31, 2016 compared to OMR625 million reported in December 31, 2015.
The basic earnings per share touched OMR0.067 in 2016 against OMR0.067 in 2015. The bank’s capital adequacy ratio stood at 16.90 per cent as on 31 December 2016 after appropriation for proposed dividend for the year 2016 against the minimum required level of 12.625 per cent as per Basel III regulations issued by the Central Bank of Oman.