Bank Muscat board proposes 30% cash and stock dividend

30/01/2017 11:44 AST

The board of directors of Bank Muscat has proposed a 30 per cent dividend for the year ended December 31, 2016.

“Continuing the bank's strong dividend payment track record, the board of directors have proposed a 25 per cent cash dividend for the year 2016 which is consistent with the cash dividend paid in the last many years. In addition, five per cent dividend in the form of bonus shares has been proposed,” Bank Muscat said in a disclosure filed with the Muscat Securities Market on Sunday.

The board meeting, chaired by Sheikh Khalid al Mashani, chairman, on Sunday, approved the 2016 financial results and dividend payout, subject to approval of the Central Bank of Oman and shareholders of the bank.

In its chairman's report, Bank Muscat said its capital adequacy ratio (CAR) post the cash dividend payout will stand at 16.9 per cent which is well above the minimum requirement of 12.62 per cent, as per Basel III regulations issued by the CBO.

Bank shareholders would receive a cash dividend of 25bz per ordinary share of 100bz each, aggregating to RO62.4mn on 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 100bz each amounting to RO12.48mn.

The proposed cash dividend and issuance of bonus shares are subject to formal approval of the annual general meeting of shareholders and the regulatory authorities.

Bank Muscat posted a net profit of RO176.56mn in 2016 compared with RO175.45mn reported in 2015, an increase of 0.6 per cent.

The bank, in its chairman's report, said cautious optimism prevails for Oman's economy in 2017 owing to its stable fundamentals and prudent policies to support fiscal reforms and non-oil sectors. “Going forward, the bank is well positioned to continue its prudent policies and align growth, finding new opportunities in the challenging market conditions,” it said.

Muscat Daily