FY 2010 Annual performance of DBS, OCBC

With the release of OCBC Bank results yesterday, a comparison is made between DBS Bank and OCBC Bank.

DBS

Net Profit $1.63 billion
ROE   10.2%
EPS    70 cents
Total dividend per share  56 cents (80% of EPS)
Dividend yield 3.83% (based on 18 Feb share price of $14.60)
PE ratio 20.8 times

OCBC

Net Profit $2.25 billion
ROE   12.1%
EPS    66.1 cents
Total dividend per share  30 cents (45% of EPS)
Dividend yield 3.18% (based on 18 Feb share price of $9.41)
PE ratio 14.2 times

OCBC had a higher net profit of $2.25 billion compared to $1.63 billion for DBS. The return on equity (ROE) was also higher for OCBC at 12.1 per cent against DBS’ 10.2 per cent. However, total dividend per share for OCBC is 30 cents whereas DBS proposed 56 cents. DBS decided to declare 80 per cent of its earnings per share (EPS) as dividend, contrasting OCBC, which only offers 45 per cent of EPS as dividend. The rest of earnings will be retained for business use. As a consequence, the dividend yield for OCBC is lower at 3.18 per cent against 3.83 per cent for DBS.

Copyright © 2011, limkimtong for Living Investment

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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