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

Bank Sohar, the Omani lender in talks on a possible merger with larger rival Bank Dhofar, said on Sunday it had revised its proposed dividend for 2014 on the advice of the central bank.

Sohar said in a bourse statement that it had revised its proposed cash payout to four per cent from six per cent, while increasing its bonus share issue to six per cent from four per cent.

It did not explain why exactly the central bank had advised it to preserve cash.

Separately, non-banking financial firm Taageer Finance Company said on Sunday it had been advised to cut its dividend to 10 per cent from 15 per cent by the central bank, also without providing any other details.

There was no statement on the central bank’s website on the matter, nor was there any indication that this was a sector-wide policy by the regulator.