Bank Muscat proposes 35% dividend for 2018
The board of directors of Bank Muscat has proposed a total 35 per cent dividend for the year 2018.
Continuing the bank’s strong dividend payment track record, the board proposed 30 per cent cash dividend and five per cent dividend in the form of bonus shares, Bank Muscat said in a press statement issued on Wednesday.
The bank’s capital adequacy ratio (CAR) post cash dividend payout will be 19.38 per cent, which is well above the regulatory requirement of 13.57 per cent as per Basel III regulations issued by the Central Bank of Oman (CBO).
The meeting of the board of directors chaired by Sheikh Khalid bin Mustahail al Mashani on Tuesday approved Bank Muscat’s 2018 financial results and dividend payout, subject to approval of the CBO and shareholders of the bank.
Shareholders would receive cash dividend of 30bz per ordinary share of 100bz each aggregating to RO88.42mn 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 147,370,636 shares of 100bz each amounting to RO14.73mn. 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 said.
Bank Muscat posted a net profit of RO179.63mn for the year ending December 31, 2018 compared to RO176.82mn reported in 2017, an increase of 1.6 per cent. Net interest income and income from Islamic financing stood at RO304.29mn for 2018 compared to RO281.35mn in 2017, an increase of 8.2 per cent. The bank’s non-interest income at RO142.45mn was lower by 7.9 per cent compared to RO154.62mn for the year ended December 31, 2017.
Bank Muscat’s net loans and advances, including Islamic financing receivables, increased 7.3 per cent to RO8.93bn as against RO8.32bn as of December 31, 2017. Customer deposits, including Islamic customer deposits, increased 14.1 per cent to RO8.46bn as against RO7.41bn as of December 31, 2017.