Oman’s Bank Dhofar Cuts Proposed Cash Dividend On Central Bank Advice

Oman’s Bank Dhofar has cut its proposed cash dividend for 2014 to five per cent from 10 per cent based on the recommendation of the sultanate’s central bank, Dhofar said in a statement on Tuesday.

The bank did not explain the reasoning behind the recommendation, but said it would increase its bonus share issue to 15 per cent from 10 per cent.

Bank Sohar, which is in talks on a possible merger with Dhofar, and non-banking financial firm Taageer Finance Co said earlier this week that they had also reduced proposed cash dividends for 2014 on the advice of the central bank.

The central bank has not issued a public policy statement about its advice on its website.