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Bank Muscat shareholders approve dividend for 2017

​MUSCAT, 19 March 2018

Bank Muscat shareholders granted approval for the payout of 35% 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% 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% dividend in the form of bonus shares. The Bank's Capital Adequacy Ratio (CAR) post the cash dividend payout will be 18.56%, which is well above the regulatory minimum of 13.65%.

 

Shareholders would receive cash dividend of RO 0.030 per ordinary share of RO 0.100 each aggregating to RO 81.281 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 RO 0.100 each amounting to RO 13.547 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 RO 176.82 million for the period compared to RO 176.56 million reported during the same period in 2016, an increase of 0.1%. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 281.34 million for the year 2017 compared to RO 274.15 million for the same period in 2016, an increase of 2.6%.

 

Non-interest income at RO 154.62 million was higher by 8.9% cent compared to RO 142.03 million for the year ended 31st December 2016. This includes one-off investment gain of RO 12.8 million on sale of certain investments.  Operating expenses for the year ended 31st December 2017 at RO 184.08 million was higher by 5.7% as compared to RO 174.08 million for the same period in 2016. Impairment for credit losses for the year was RO 63.15 million as against RO 70.29 million for the same period in 2016. Recoveries from impairment for credit loss was RO 41.17 million for the year as against RO 36.24  million for the same period in 2016. Share of income from an associate for the year was RO 2.44 million against RO 1.73 million for the same period in 2016.

 

Net Loans and advances, including Islamic financing receivables, increased by 4.7% to RO 8,329 million as against RO 7,957 million as at 31 December 2016.  Customer deposits, including Islamic Customer deposits, decreased by 0.5% to RO 7,419 million as against RO 7,458 million as at 31 December 2016. The basic earnings per share was RO 0.064 in 2017 and 2016.