MUSCAT: The commercial banks listed in Muscat Securities Market (MSM) intend to increase their capitals this year to enhance their financial position. Four banks have submitted recommendation to the Extraordinary General Assembly (EGA) meetings to increase their capitals by distributing bonus shares onto shareholders. The gross capitalisation of the six listed commercial banks as of the end of December 2016 stood at RO 1.090 billion; a growth by RO 85.6 million compared to 2015.
Banks Muscat, whose capital stands at RO 249.6 million, as of the end of December 2016, said that it will distribute 5 per cent stock dividends (five shares for each 100 shares), in addition to 25 per cent cash dividends (i.e. 25 Baises for share).
The Annual General Assembly (AGA) will consider the recommendation during its meeting on March 19.
Bank Muscat net profit increased to RO176.8 million, against RO 172.2 million in 2015. The net profit of Bank Muscat represents about 52 per cent of the RO 342.1 million net profits made by the six commercial banks this year.
Most commercial banks witnessed increase in their net profits, except for the National Bank of Oman (NBO), whose profits decreased from RO 60.5 million to RO 54.5 million and Bank Sohar from RO 27.7 million to RO 19.1 million.
Bank Sohar plans to increase its capital this year by distributing 10 per cent bonus shares (i.e. 10 shares for each 100 shares), which makes the Bank the highest in terms of distributing stock dividends.
The NBO combined between the cash and stock dividends. The Bank, which holds its AGA meeting on March 26 said that it will distribute 5 per cent stock dividends, i.e five shares for each 100 shares, in addition to 15.92 per cent cash dividends, about 16 baises per share.
Bank Dhofar, which increased its net profits last year to RO 48.7 compared to RO 47.1 million in 2015 proposed to distribute 7.5 per cent stock dividends (7.5 shares for each 100 shares) and 13.5 per cent cash dividends — 13.5 Baises per share.
Bank Dhofar came second in terms of increase of net profits after Bank Muscat. It is also the second in terms of capitalisation with RO 3.9 billion capitals after Bank Muscat whose capitalisation stands at RO 10.8 billion.
The gross assets of the six listed commercial banks as of the end of last year stood at RO 24.9 billion.
HSBC Bank, whose capital is RO 200 million and is the second in terms of capitalisation after Bank Muscat, announced that it will distribute 5 per cent cash dividend, i.e 5 baises per share.
The bank’s net profit as of the end of 2016 increased to RO 12.9 million compared to RO 9.6 million at the end of 2015; the least profits made of the six commercial banks.
As of the end of 2016, the net profits of Ahlibank, which will distribute 10 per cent cash dividends or 10 baises per share, stood at RO 29.9 million compared to RO 27.7 million in 2015. The Bank’s capital stands at RO 142.5 million; the least capital of the six commercial banks. — ONA
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