Last checked at 23 Mar 2009 07:00
BankMuscat AGM approves 20 per cent cash dividend, 30 per cent convertible bond
MUSCAT, 21 March 2009 - The annual general meeting (AGM) of BankMuscat, the leading financial institution in the Sultanate, on 19 March approved 20 per cent cash dividend and 30 per cent convertible bond (3 bonds for each 100 shares held) for the financial year ended 31 December 2008.
Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat, presided at the AGM and extraordinary general meeting (EGM) held at Al Bustan Palace Hotel. The EGM approved amendments to Articles 22 and 38 of the Articles of Association of the Bank.
Besides cash dividend and convertible bonds, the AGM discussed related parties transactions concluded during 2008; approved appointment of auditors for the financial year 2009 and elected two provisional members on the Board of Directors to fill two vacancies.
BankMuscat achieved a net profit of RO 93.7 million as against a net profit of RO 84.2 million reported in 2007, an increase of 11.2 per cent. The Bank achieved an operating profit of RO 152.6 million as against RO 102.6 million in 2007, an increase of 48.7%. However, due to certain one-off impairment losses, the net profit for the year reflected an increase of only 11.2% over 2007.
Commenting on the 2008 results, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat, thanked the banking community for the confidence reposed in the Bank. "The Board of Directors welcomes and supports the measures taken by the Central Bank of Oman and the Capital Market Authority with a view to strengthening the financial sector in the Sultanate. The Bank's growth would not have been possible without the foresight and market-friendly policies adopted by His Majesty's Government."
Sheikh AbdulMalik added: "The Bank's liquidity position has been strong and it would continue to focus on deposit mobilisation. The Bank has robust policies and procedures on cross-border country / bank exposures to effectively mitigate the future challenges, and strives to achieve the global best practices in the field of risk management. In lieu of robust and pro-active risk management practices, the Bank is confident to sail through these turbulent times. Undoubtedly, there are key lessons learnt from the current crisis, which will ensure in making the risk management practices followed by the Bank more relevant and up to date."