The board of directors of Bank Muscat has proposed a total 35 per cent dividend for the shareholders for the year 2020.
Continuing the bank’s dividend payment track record and considering the current economic situation, Bank Muscat board has proposed a 25 per cent cash dividend and a ten per cent dividend in the form of bonus shares for the year 2020, according to a statement issued by the bank.
It said Bank Muscat’s capital adequacy ratio after the cash dividend payout will be 20.77 per cent, which is well above the regulatory minimum requirement.
The meeting of the board of directors chaired by Sheikh Khalid bin Mustahail al Mashani, the chairman of Bank Muscat, on Tuesday approved the 2020 financial results and dividend payout, subject to the approval of the Central Bank of Oman and the shareholders of the bank.
The shareholders would receive a cash dividend of 25bz per ordinary share aggregating to RO81.238mn on the bank’s existing share capital. In addition, the shareholders would also receive bonus shares in the proportion of one share for every ten ordinary shares aggregating to 324,952,253 shares amounting to RO32.495mn.
The proposed cash dividend and issuance of bonus shares are subject to the formal approval of the annual general meeting of the bank’s shareholders and regulatory authorities.
Bank Muscat reported a net profit of RO163.36mn for the year 2020 compared to RO185.55mn reported in 2019, a decrease of 12 per cent.
The bank’s net interest income from conventional banking and net income from Islamic financing marginally grew by 1.6 per cent to RO322.13mn in 2020 compared to RO316.97mn reported in the previous year. Non-interest income, however, dropped by 13.4 per cent to RO134.41mn for the year ended December 31, 2020 from RO155.20mn recorded in 2019.
The decrease in non-interest income was mainly due to subdued business conditions due to the COVID-19 related lockdowns in the second, third and fourth quarters of 2020 and waiver of certain fees due to regulatory measures, Bank Muscat said in its disclosure to the local bourse.
Bank Muscat’s loan-book witnessed a slow growth of just 0.5 per cent last year as net loans and advances (including Islamic financing receivables) increased marginally to RO8.918bn as of December 31, 2020 from RO8.878bn a year ago.
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