20 March 2014
MUSCAT -- Bank Muscat shareholders yesterday granted approval for increasing the amount of the Euro Medium Term Note (EMTN) programme, as approved at the EGM in 2011, from $800 million to $2 billion. The EMTN programme involves issuing negotiable bonds in the international markets through public subscription or private placement.
The extraordinary general meeting (EGM) of the shareholders also approved the setting up of RO 500 million, or its equivalent in other currencies, Meethaq Sukuk Programme for the issuance of Sukuk by Meethaq in various tranches in the Muscat Securities Market and international markets through public subscription or private placement.
The shareholders also granted approval for the setting up of SAR 1 billion Sukuk Programme by the bank's branch in Saudi Arabia through public subscription or private placement.
The Board of Directors' recommendation to issue convertible bonds at the rate of 15 per cent per share of the issued share capital of the bank, as part of the dividend for 2013, also received the endorsement of shareholders. For the year 2013, the bank will give 40 per cent dividend, 25 per cent in cash and 15 per cent in the form of mandatory convertible bonds.
Shaikh Khalid bin Mustahail al Mashani, Chairman, presided at the EGM and AGM meetings at the bank's head office. Shaikh Khalid said: "The bank has continued to demonstrate healthy performance and strong growth in spite of increasing competition and challenging market dynamics."
Bank Muscat shareholders will receive cash dividend of RO 0.025 per ordinary share of RO 0.100 each aggregating to RO 53.81 million on the bank's existing share capital. In addition, they would receive mandatory-convertible bonds in lieu of dividend of RO 0.015 per ordinary share of RO 0.100 each aggregating to RO 32.28 million.
The mandatory-convertible bonds will carry a coupon rate of 4.5 per cent per annum. 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 per cent discount to 3 month average share price of the bank on the Muscat Securities Market prior to the conversion. These bonds will mature after a period of 3 years from the date of issuance. The bonds will be listed on the Muscat Securities Market.
The bank achieved a net profit of RO 152.2 million for the year ended December 31, 2013 compared to RO 139.2 million reported for the year 2012 (growth of 9.3 per cent). Net interest income from conventional banking activities and Net Income from Islamic Financing stood at RO 235.3 million for the year 2013 compared to RO 230.4 million for the same period of 2012. Reducing net interest margin resulted in marginal increase in Net interest income. Other operating income at RO 104.8 million was higher by 12.4 per cent compared to RO 93.2 million for the year ended December 31, 2012.
Operating expenses for the year ended December 31, 2013 at RO 143.7 million as compared to RO 134.6 for the same period in 2012, reflected an increase of 6.7 per cent. The bank exercised cost control measures to limit the increase in expenses.
In relation to the exceptional operating loss provision that was considered in Q1 2013 for the Prepaid Travel Card fraud incident, the bank's insurers have agreed to indemnify the bank's loss in the sum of RO 14.9 million. The bank has reversed the loss provision created in Q1 2013 towards this specific loss through its Q4, 2013 results.
Impairment for credit losses for 2013 was RO 50.5 million as against RO 57.9 million for the same period in 2012. Recoveries from impairment for credit loss for the year 2013 was RO 32.5 million compared to RO 33.5 million for the same period last year. Share of profit from associates for the period ended December 31, 2013 was RO 1.3 million against loss of RO 3.4 million for the same period in 2012.
Subsequent to the market disclosure on November 10, 2013, on the bank's exit from its associate investment in the Indian Securities firm Mangal Keshav Securities Ltd, through a share buyback by the company, the bank has considered during the year, an impairment of RO 2.7 million on the carrying value of Mangal Keshav Securities Ltd.
Net Loans and Islamic Financing increased by 9.7 per cent to RO 6,143 million as against RO 5,601 million as at December 31, 2012. Customer deposits, including CDs, increased by 5.9 per cent to RO 5,693 million as against RO 5,378 million as at December 31, 2012. During the year, saving deposits increased by 18.8 per cent, demand deposits increased by 2 per cent and term deposits increased by 1.5 per cent. The return on average assets marginally improved to 1.86 per cent in 2013 from 1.84 per cent in 2012. The return on average equity reduced to 14.49 per cent in 2013 from 15.42 per cent in 2012.
The basic earnings per share were RO 0.072 in 2013 against RO 0.073 in 2012. The banks' capital adequacy ratio stood at 16.5 per cent as on December 31, 2013 after appropriation for dividend for the year 2013 against the minimum required level of 12 per cent by the Central Bank of Oman.
MUSCAT -- Bank Muscat shareholders yesterday granted approval for increasing the amount of the Euro Medium Term Note (EMTN) programme, as approved at the EGM in 2011, from $800 million to $2 billion. The EMTN programme involves issuing negotiable bonds in the international markets through public subscription or private placement.
The extraordinary general meeting (EGM) of the shareholders also approved the setting up of RO 500 million, or its equivalent in other currencies, Meethaq Sukuk Programme for the issuance of Sukuk by Meethaq in various tranches in the Muscat Securities Market and international markets through public subscription or private placement.
The shareholders also granted approval for the setting up of SAR 1 billion Sukuk Programme by the bank's branch in Saudi Arabia through public subscription or private placement.
The Board of Directors' recommendation to issue convertible bonds at the rate of 15 per cent per share of the issued share capital of the bank, as part of the dividend for 2013, also received the endorsement of shareholders. For the year 2013, the bank will give 40 per cent dividend, 25 per cent in cash and 15 per cent in the form of mandatory convertible bonds.
Shaikh Khalid bin Mustahail al Mashani, Chairman, presided at the EGM and AGM meetings at the bank's head office. Shaikh Khalid said: "The bank has continued to demonstrate healthy performance and strong growth in spite of increasing competition and challenging market dynamics."
Bank Muscat shareholders will receive cash dividend of RO 0.025 per ordinary share of RO 0.100 each aggregating to RO 53.81 million on the bank's existing share capital. In addition, they would receive mandatory-convertible bonds in lieu of dividend of RO 0.015 per ordinary share of RO 0.100 each aggregating to RO 32.28 million.
The mandatory-convertible bonds will carry a coupon rate of 4.5 per cent per annum. 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 per cent discount to 3 month average share price of the bank on the Muscat Securities Market prior to the conversion. These bonds will mature after a period of 3 years from the date of issuance. The bonds will be listed on the Muscat Securities Market.
The bank achieved a net profit of RO 152.2 million for the year ended December 31, 2013 compared to RO 139.2 million reported for the year 2012 (growth of 9.3 per cent). Net interest income from conventional banking activities and Net Income from Islamic Financing stood at RO 235.3 million for the year 2013 compared to RO 230.4 million for the same period of 2012. Reducing net interest margin resulted in marginal increase in Net interest income. Other operating income at RO 104.8 million was higher by 12.4 per cent compared to RO 93.2 million for the year ended December 31, 2012.
Operating expenses for the year ended December 31, 2013 at RO 143.7 million as compared to RO 134.6 for the same period in 2012, reflected an increase of 6.7 per cent. The bank exercised cost control measures to limit the increase in expenses.
In relation to the exceptional operating loss provision that was considered in Q1 2013 for the Prepaid Travel Card fraud incident, the bank's insurers have agreed to indemnify the bank's loss in the sum of RO 14.9 million. The bank has reversed the loss provision created in Q1 2013 towards this specific loss through its Q4, 2013 results.
Impairment for credit losses for 2013 was RO 50.5 million as against RO 57.9 million for the same period in 2012. Recoveries from impairment for credit loss for the year 2013 was RO 32.5 million compared to RO 33.5 million for the same period last year. Share of profit from associates for the period ended December 31, 2013 was RO 1.3 million against loss of RO 3.4 million for the same period in 2012.
Subsequent to the market disclosure on November 10, 2013, on the bank's exit from its associate investment in the Indian Securities firm Mangal Keshav Securities Ltd, through a share buyback by the company, the bank has considered during the year, an impairment of RO 2.7 million on the carrying value of Mangal Keshav Securities Ltd.
Net Loans and Islamic Financing increased by 9.7 per cent to RO 6,143 million as against RO 5,601 million as at December 31, 2012. Customer deposits, including CDs, increased by 5.9 per cent to RO 5,693 million as against RO 5,378 million as at December 31, 2012. During the year, saving deposits increased by 18.8 per cent, demand deposits increased by 2 per cent and term deposits increased by 1.5 per cent. The return on average assets marginally improved to 1.86 per cent in 2013 from 1.84 per cent in 2012. The return on average equity reduced to 14.49 per cent in 2013 from 15.42 per cent in 2012.
The basic earnings per share were RO 0.072 in 2013 against RO 0.073 in 2012. The banks' capital adequacy ratio stood at 16.5 per cent as on December 31, 2013 after appropriation for dividend for the year 2013 against the minimum required level of 12 per cent by the Central Bank of Oman.
© Oman Daily Observer 2014
