MUSCAT, 29 January 2017 – Bank Muscat, the flagship financial services provider in the Sultanate, has proposed 30 per cent dividend for the year 2016. Continuing the bank's strong dividend payment track record, the Board of Directors has proposed 25 per cent cash dividend for the year 2016 which is consistent with the cash dividend paid in the last many years. In addition, 5 per cent dividend in the form of bonus shares has been proposed.
The meeting of the Board of Directors chaired by Sheikh Khalid bin Mustahail Al Mashani, Chairman, on Sunday 29 January 2016, approved the 2016 financial results and dividend payout, subject to approval of the Central Bank of Oman (CBO) and shareholders of the bank.
Shareholders would receive cash dividend of RO 0.025 per ordinary share of RO 0.100 each aggregating to RO 62.406 million 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 124,812,512 shares of RO 0.100 each amounting to RO 12.481 million. 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 posted a net profit of RO 176.56 million for 2016 compared to RO 175.45 million reported in 2015, an increase of 0.6 per cent. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 274.15 million for the year 2016 compared to RO 260.51 million for the same period in 2015, an increase of 5.2 per cent.
Non-interest income at RO 142.03 million was lower by 3.5 per cent compared to RO 147.23 million for the year ended 31st December 2015. Operating expenses for the year ended 31st December 2016 at RO 174.08 million was marginally higher by 1.8 per cent as compared to RO 171.06 for the same period in 2015.
Impairment for credit losses for the year of 2016 was RO 70.29 million as against RO 71.98 million for the same period in 2015. Recoveries from impairment for credit loss was RO 36.24 million for the year of 2016 as against RO 35.88 million for the same period in 2015. Share of income from associates for the year of 2016 was RO 1.73 million against RO 2.56 million for the same period in 2015.
Net Loans and advances from conventional operation increased by 6.1 per cent to RO 7,102 million as against RO 6,695 million as at 31st December 2015. Customer deposits from the conventional operations decreased by 0.6 per cent to RO 6,695 million as against RO 6,738 million as at 31st December 2015.
Islamic financing receivables amounted to RO 855 million of 31st December 2016 compared to RO 635 million in the same period of 2015. Islamic Banking customer deposits amounted to RO 763 million as of 31st December 2016 compared to RO 625 million reported in 31st December 2015.
The basic earnings per share touched RO 0.067 in 2016 against RO 0.067 in 2015. The bank's capital adequacy ratio stood at 16.90 per cent as on 31 December 2016 after appropriation for proposed dividend for the year 2016 against the minimum required level of 12.625 per cent as per Basel III regulations issued by the Central Bank of Oman.