Bank Muscat proposes 15.5% dividend

Bank Muscat, the largest financial institution in Oman, has proposed a 15.5% dividend for the year 2023.

The meeting of the Board of Directors of Bank Muscat, chaired by Sheikh Khalid bin Mustahail al Mashani, Chairman, on Monday approved the bank's 2023 financial results and dividend payout. The financial results and dividend are subject to the formal approval of the Annual General Meeting of the shareholders and regulatory authorities.

The Board of Directors has proposed a 15.5% cash dividend for the year 2023. Shareholders would receive a cash dividend of 15.5bz per ordinary share aggregating to Ro116.349mn on the bank’s existing share capital.

The bank’s capital adequacy ratio after the cash dividend payout will be 21.22%, which is well above the regulatory minimum.

The bank’s net profit for the year ended December 31, 2023, increased by 5.8% to Ro212.45mn from Ro200.75mn in 2022, mainly due to improvement in the operating performance.

Net interest income from conventional banking and net income from Islamic financing stood at Ro374.82mn for the year ended December 31, 2023 compared to Ro344.86mn for the same period in 2022, an increase of 8.7%. Bank Muscat was successful in dynamic balance sheet and liquidity management during the year, which resulted in enhanced net interest income.

Non-interest income reached Ro138mn for the year ended December 31, 2023 as compared to

Ro135.18mn for the same period in 2022, an increase of 2.1%. Excluding the one-time investment gain of around Ro8mn during 2022, the non-interest income increased by 8.6% compared to the previous year, driven by various business lines within the bank.

Operating expenses for the year ended December 31, 2023 was Ro196.39mn as compared to Ro184.52mn for the same period in 2022, an increase of 6.4%.

Net impairment for credit and other losses for the year ended December 31, 2023 was Ro64.66mn as against Ro59.94mn for the same period in 2022.

Bank Muscat continued its prudent and proactive approach towards healthy asset quality and provision levels. As at December 31, 2023, the total provisions of the bank stood at 1.6 times of the non-performing loans providing a strong provision coverage.

Net loans and advances including Islamic financing receivables increased by 4.9% to Ro9.877bn as against Ro9.417bn as at December 31, 2022. Loan and financing growth was driven across by corporate, retail and Islamic banking segments.