Bank Sohar Board of Directors approved financial report and recommended 10% dividend payout

The Board of Directors has recommended the distribution of a cash dividend of 3.5% for the year which corresponds to 3.5 baizas per share. The Board of Directors has also recommended 6.5% dividend in the form of mandatory convertible bonds. These dividends are subject to regulatory approval and will be placed in the agenda of the upcoming annual general meeting for the shareholders approval.

The Chairman emphasised that the impressive financial performance during 2012 was in no small part the result of the continued hard work and commitment of the bank's staff to deliver excellent service to the bank's customers and clients. He also mentioned that that bank will use all means within its control to drive the business and maintain this trend of profitable year-on-year growth.

Bank Sohar's annual results have demonstrated remarkable all round improvement. The operating profit for the year was OR28.644m as compared to OR20.007m in 2011, an increase of 43.17%. Net interest income during the year climbed 20.53% to OR41.894m, as compared to OR34.757m in 2011. The operating income for the year 2012 increased to OR52.317m, an increase of 21.14% as compared to OR43.186m in 2011. The cost to income ratio stood at 45.2% in 2012, down from 53.7% in 2011.

The board of Bank Sohar approved the annual results of the bank for the year 2012in their meeting held on January 29, which is subject to regulatory approval.

Impressive gains were achieved in other areas of the Bank's business as well. Net loans and advances jumped 12.4% during the year to touch OR1,146m, against the previous year's level of OR1,020m. Customer deposits grew 14.17% to OR1,337m during the year, as compared to OR1,171m in 2011.

The Bank's share of Private Sector Credit stood at 8.42% till November 2012 as compared to 8.57% in December 2011 while the Bank's share of Private Sector Deposit was 7.99% in November 2012, marginally up from 6.80% at the end of 2011.

Through 2012 Bank Sohar maintained a 90% Omanisation of its workforce. The Bank also recruited 74 new Omanis in the year to meet its workforce requirements, which is 95% of the newly recruited employees of the Bank.

In the six years since its inception, Bank Sohar has been one of the fastest growing commercial banks in Oman in terms of both, technology and size. As of 2012, Bank Sohar has a network of 25 branches and 44 ATM machines across the Sultanate. Additionally, Bank Sohar customers continue to enjoy the privilege of free-of-charge access to over 650 ATMs under the "Oman-Net" platform.

A highlight of the annual report is the Bank's Corporate Social Responsibility Program that has been working to improve the quality of life in the community. The Bank has been able to sustain support for social and educational programmes that provide help and assistance to disadvantaged people in the community.