Muscat: Bank Muscat shareholders granted approval for the payout of 35 per cent dividend for 2017 at the Annual General Meeting (AGM) presided by Sheikh Khalid bin Mustahail Al Mashani, Chairman, at the Bank’s head office.
Continuing the strong dividend payment track record, the bank will make a payout of 30 per cent cash dividend for the year 2017, which is consistent with the cash dividend paid in the previous years. In addition, shareholders will also receive 5 per cent dividend in the form of bonus shares. The bank’s Capital Adequacy Ratio (CAR) post the cash dividend payout will be 18.56 per cent, which is well above the regulatory minimum of 13.65 per cent.
Shareholders would receive cash dividend of OMR0.030 per ordinary share of OMR0.100 each aggregating to OMR81.281 million on the bank’s existing share capital. In addition, they would receive bonus shares in the proportion of 1 share for every 20 ordinary shares aggregating to 135,468,092 shares of OMR0.100 each amounting to OMR13.547 million.
Sheikh Khalid bin Mustahail Al Mashani thanked the banking community, shareholders and clients for the support and commitment to the bank, which helped maintain performance momentum during the year.
Sheikh Khalid said: “The leadership journey of the Bank for over 35 years is set to witness further consolidation in line with the dynamic new vision ‘To serve you better, everyday’ which reflects the commitment to further enhance the customer-centric strategy for the coming period.”
The bank posted a net profit of OMR176.82 million for the period compared to OMR176.56 million reported during the same period in 2016, an increase of 0.1 per cent. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at OMR281.34 million for the year 2017 compared to OMR274.15 million for the same period in 2016, an increase of 2.6 per cent.
Non-interest income at OMR154.62 million was higher by 8.9 per cent compared to OMR142.03 million for the year ended December 31, 2016. This includes one-off investment gain of OMR12.8 million on sale of certain investments. Operating expenses for the year ended December 31, 2017 at OMR184.08 million was higher by 5.7 per cent as compared to OMR174.08 million for the same period in 2016. Impairment for credit losses for the year was OMR63.15 million as against OMR70.29 million for the same period in 2016. Recoveries from impairment for credit loss was OMR41.17 million for the year as against OMR36.24 million for the same period in 2016. Share of income from an associate for the year was OMR2.44 million against OMR1.73 million for the same period in 2016.
Net loans and advances, including Islamic financing receivables, increased by 4.7 per cent to OMR8,329 million as against OMR7,957 million as of December 31, 2016. Customer deposits, including Islamic customer deposits, decreased by 0.5 per cent to OMR7,419 million as against OMR7,458 million as of December 31, 2016. The basic earnings per share was OMR0.064 in 2017 and 2016.