Oman- Bank Sohar shareholders approve 15% dividend, increase in capital

(MENAFN- Muscat Daily) Muscat- The shareholders of Bank Sohar attended an extraordinary general meeting (EGM) followed by the bank's annual general meeting (AGM) on Thursday at the Sheraton Oman Hotel.

Bank Sohar board of directors, led by chairman Mohammed Mahfoudh al Ardhi, and executive management convened to brief shareholders on the bank's performance in 2017 and discussed items on the agenda, according to a press release.

Key topics of discussion during the EGM included the approval of an increase in the bank's authorised capital from RO200mn to RO400mn, in addition to the amendment of the articles of association of the bank accordingly. The AGM covered 17 agenda items; starting with review and consideration of the board's report for the financial year ended December 31, 2017.

The AGM approved the distribution of cash dividend to shareholders at the rate of five per cent of the bank's capital (5bz per share) and the distribution of bonus shares at the rate of ten per cent of the capital (ten shares for every 100 shares).

Ardhi said, 'The bank's solid performance during last year's challenging business environment demonstrated its capabilities as a market leader that continues to achieve sustainable growth across numerous verticals. We are confident that our shareholders and the wider market will continue to observe Bank Sohar as an institution of banking excellence in contribution to the sultanate as an emerging industry.'

The items covered by the AGM included the board of director's proposal for a budget of RO250,000 for corporate social responsibility and charitable donations in 2018 as well as a review of what was previously allocated in 2017 for donations.

The appointment of three directors to the board to fill the vacant seats as well as members of Sharia'a supervisory board for Sohar Islamic, the Islamic window of the bank, and sitting fees for the Sharia'a supervisory board members were also discussed and approved at the meeting.

Sasi Kumar, acting CEO of Bank Sohar, said, 'We endeavour to further cement our market position in 2018 by enhancing our market propositions and human capital to meet the ever-evolving needs of local communities, businesses, and investors in accordance with Oman's economic opportunities.'

Bank Sohar's performance in 2017 observed significant growth, recording a 32.54 per cent uptake in net profit, with core business verticals indicating security, strength, and continued profitability. The bank concluded the year with outstanding results overall in consideration of challenging market conditions, featuring a 5.91 per cent increase in net-interest income and a 9.99 per cent rise in operating profit.

Kumar added, 'The integration of customer centricity and digitisation has been central to our continued development and market advancement. The bank's ongoing digitisation extends across many operational aspects and e-service infrastructure to creating investment prospects that supported our overall growth in 2017. Further value is on the horizon based on our continued focus on these elements in our strategic planning for 2018.'

MENAFN0204201801410000ID1096682537