OCBC Bank FY 2011 Annual Report

OCBC released its full year results today. Its net profit increased 3 per cent from 2010 to $2.31 billion. Great Eastern Holdings, a subsidiary of OCBC, contributed less profits to OCBC at $297 million from $405 million in 2010 (27% drop), as a result of volatile financial markets.

The Return on Equity declined by one percentage point to 11.1 per cent. Non-performing loan rate (NPL) remained the same at 0.9 per cent.

FY 2011 FY2010 Change
Net Profit $2.31b $2.25b +3%
ROE 11.1% 12.1% -1.0% pt
NPL ratio 0.9% 0.9% No change
EPS 64.8 cents 66.1 cents -1.3 cents
Dividend (Total) 30 cents 30 cents No change

Earnings per share declined 1.3 cents to 64.8 cents. OCBC Board proposed same total dividend of 30 cents as 2010, giving a dividend payout ratio of 45 per cent, which is quite similar to 2010 at 44 per cent. The Bank’s dividend policy is to propose minimum payout of 45 per cent of core earnings.

When compared with DBS Bank, OCBC did not do as well. See my earlier post on DBS Bank.

Dividend yield for OCBC is lower than DBS (3.36% against 3.98%) based on today’s share prices.

Some more information:

FY 2011 FY2010 Change
Total revenue $5.66b $5.32b +6.4%
Net Interest income $3.4b $2.9b +16%
Non-interest income $2.2b $2.3b -7%
Net Interest margin 1.86% 1.98% -12 basis points
Net asset value $6.02 $5.66 +$0.36
Capital Adequacy – Tier 1 14.4% 16.3%
Capital Adequacy – Total 15.7% 17.6%

Share price for 2011:
Highest $10.32
Lowest $7.68
Average $9.02
Last Done $7.83

Price to NAV: 1.5 times

Copyright © 2012, 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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