OCBC Financial Results vs DBS

OCBC released its financial results for 2008 yesterday.

 

It will be interesting to compare OCBC results with DBS results.

 

                                  DBS                    OCBC

Net Profit                   $1,929m (-15%)  $1,749m (-16%)           

Net Profit                   $2,056m1 (-17%) $1,486m2 (-21%)

(Excluding one-time items)     

 

Shareholders’ Funds      $24,003m            $18,560m

 

No. of ordinary shares   2,281,440,687    3,126,565,512

as at 30 Jan 2009                                            

 

Net Assets per share      $10.52              $5.93

Share price at 18 Feb    $8.10                $4.89

 

Off-balance sheet items:

Financial derivatives    $1,704,717m     $365,904m

 

                                                DBS      OCBC

Net Interest Margin                  2.04      2.27

Non-interest/total income        28.7      34.4

Cost/income ratio                   43.3      43.7

Loans/deposit                          74.5      84.8

NPL3 ratio                                 1.5        1.5

Returns on assets                      0.84%   1.05%

Returns on equity                     10.1%   9.9%

Tier 1 CAR4                               12.2 5    14.9

Total CAR                                16.2 5    15.1

 

Note: Figures in brackets are changes over previous year.

 

1 One-time items include restructuring costs, impairment charges for Thai investment, gains on sale of office buildings in Hong Kong and allowance write-back for a Singapore property

2 excludes divestment gains and tax refunds from both periods

3 Non-performing loans

4 Capital Adequacy Ratio

5 CAR of DBS after rights issued on 30 January 2009

 

Written on 2/19/2009 11:26 AM

 

Copyright © 2009, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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