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.
|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:
|Net Interest income||$3.4b||$2.9b||+16%|
|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:
Last Done $7.83
Price to NAV: 1.5 times
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