Bank Muscat board proposes 35% dividend
Muscat - The board of directors of Bank Muscat has proposed a 35 per cent dividend, higher than previous fiscal, for the year ended December 31, 2017.
Continuing the bank’s strong dividend payment track record, the board of directors has proposed a 30 per cent cash dividend for the year 2017 which is consistent with the cash dividend paid in the last many years. In addition, a five per cent dividend in the form of bonus shares has been proposed, Bank Muscat said in a presss release.
The board meeting, chaired by Sheikh Khalid bin Mustahail al Mashani, chairman on Monday, approved the 2017 financial results and dividend payout, subject to approval of the Central Bank of Oman (CBO) and share- holders of the bank, the press release said.
In its chairman’s report,Bank Muscat said its 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 as per Basel regulations set by CBO.
Shareholders would receive cash dividend of 30bz per ordinary share of 100bz each aggregating to RO81.281mn 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 135,468,092 shares of 100bz each amounting to RO13.547mn, the bank said.
The proposed cash dividend is subject to formal approval of the annual general meeting of shareholders and regulatory authorities.
Bank Muscat posted a net profit of RO176.82 mn in 2017 compared with RO176.56 mn reported in 2016, an increase of 0.1 per cent.
The bank in its chairman’s report said, ‘ Going forward, the bank is well positioned to continue with its prudent policies and align growth to tap new opportunities in the prevailing market conditions’.
On Oman’s economic growth in 2018 the report said, ‘On the back of easing fiscal adjustments, infrastructure investments and reforms to promote non-oil sector activity, the sultanate is poised for a record strong growth in 2018’.