MUSCAT, 31 January 2015 – Bank Muscat, the flagship financial services provider in the Sultanate, has proposed 45 per cent dividend for the year 2014, 25 per cent in cash, 5 per cent as bonus shares and 15 per cent in the form of mandatory convertible bonds.
The meeting of the Board of Directors chaired by Shaikh Khalid bin Mustahail Al Mashani, Chairman, on Wednesday 28 January 2015, approved the 2014 financial results and dividend payout, subject to approval of the Central Bank of Oman (CBO) and shareholders of the bank.
Shaikh Khalid bin Mustahail Al Mashani said: "Amid the challenging economic and financial situation marked by volatile oil prices in the last quarter of 2014, the key business lines of the bank recorded healthy performance on expected lines."
The Board of Directors proposed a dividend of 45%, 25% in the form of cash, 5% in the form of bonus shares and 15% in the form of mandatory-convertible bonds. Thus shareholders would receive cash dividend of RO 0.025 per ordinary share of RO 0.100 each aggregating to RO 54.57 million 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 109,134,409 shares of RO 0.100 each amounting to RO 10.91 million. They would also receive mandatory-convertible bonds of RO 0.015 per ordinary share of RO 0.100 each aggregating to RO 32.74 million (including issue expenses), which will carry a coupon rate of 3.5% per annum. These bonds will mature after a period of 3 years from the date of issuance. On maturity, the bonds will be converted to ordinary shares of the Bank by using a “conversion price" which will be calculated by applying 20% discount to 3 month average share price of the Bank on the Muscat Securities Market prior to the conversion. The bonds will be listed on the Muscat Securities Market. The proposed cash dividend and issuance of bonus shares and mandatory-convertible bonds are subject to formal approval of the Annual General Meeting of the shareholders and the regulatory authorities.
The bank posted a net profit of RO 163.23 million in 2014 compared to RO 152.19 million reported in 2013, an increase of 7.3 per cent.
The basic earnings per share were RO 0.075 in 2014 as against RO 0.072 in 2013. The banks' capital adequacy ratio stood at 15.92 per cent after appropriation for proposed dividend for the year 2014 as against the minimum required level of 12.625 per cent as per Basel III regulations issued by the Central Bank of Oman.