MUSCAT: Bank Muscat, the flagship financial services provider in the Sultanate, has proposed a 35 per cent dividend for the year 2021. The meeting of the Board of Directors chaired by Sheikh Khalid bin Mustahail Al Mashani, Chairman, on Wednesday 26 January 2022, approved the 2021 financial results and dividend payout, subject to the approval of the Central Bank of Oman (CBO) and shareholders of the Bank.
Continuing the Bank’s dividend payment track record, the Board of Directors has proposed a 30 per cent cash dividend and a 5 per cent dividend in the form of bonus shares for the year 2021. The Bank’s Capital Adequacy Ratio (CAR) after the cash dividend payout will be 21.30 per cent which is well above the regulatory minimum.
Shareholders would receive a cash dividend of OMR 0.030 per ordinary share aggregating to OMR 107.234 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 178,723,739 shares amounting to OMR 17.872 million. The proposed cash dividend and issuance of bonus shares are subject to the formal approval of the Annual General Meeting of the shareholders and regulatory authorities.
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Bank Muscat posted a net profit of OMR 189.63 million for the year 2021 compared to OMR 163.36 million reported in 2020, an increase of 16.1 per cent. Net Interest Income from Conventional Banking and Net Income from Islamic Financing stood at OMR 335.54 million for the year ended 31 December 2021 compared to OMR 322.13 million for the same period in 2020, an increase of 4.2 per cent. Non-interest income was OMR 139.94 million for the year ended 31 December 2021 as compared to RO 134.41 million for the same period in 2020, an increase of 4.1 per cent. Operating expenses for the year ended 31 December 2021 was OMR 191.46 million as compared to OMR179.85 million for the same period in 2020, an increase of 6.5 per cent. Net Impairment for credit and other losses for the year 2021 was OMR 60.22 million as against OMR 81.04 million for the same period in 2020. The decrease is mainly attributed to the precautionary and collective provisions created by the Bank during the first half of 2020, due to the onset of the Covid-19 pandemic and the historic decline seen in global crude oil prices. The Bank remains vigilant of the continuing stress in the macro-economic and business conditions and its potential impacts.
Net Loans and advances including Islamic financing receivables increased by 2.3 per cent to OMR 9,191 million as against OMR 8,983 million as at 31 December 2020. Customer deposits including Islamic Customer deposits increased by 3.7 per cent to OMR8,775 million as against RO 8,459 million as at 31 December 2020.
