All three local banks had released their full year financial results.
The table below shows comparisons using some key ratios and results.
|Dividend (Total)||56 cents||30 cents||60 cents|
|Dividend payout ratio||43%||46%||42%|
|Net Asset Value per share||$11.99||$6.02||$13.23|
|Share Price – 23 Feb||$14.10||$8.98||$18.40|
|Price to Book ratio||1.17||1.49||1.39|
Net profit for DBS was the highest ($3,035 m) followed by UOB ($2,327 m) with OCBC quite close to it ($2,312 m).
DBS improved its Return on Equity (ROE) significantly to 11.0% (+0.8% point) and now quite the same as OCBC and UOB. UOB lost 1.8 % points and OCBC lost 1.0% point over 2010.
OCBC has the lowest non-performing loan rate (NPL) at 0.9% followed by DBS (1.3%) and UOB (1.4%).
UOB had the highest earning per share (EPS) at $1.43. With total dividend of 60 cents, the dividend payout ratio is the lowest at 42%. OCBC dividend payout ratio is 46% of EPS (dividend is 30 cents), the highest among the three banks. DBS dividend payout ratio is 43%. In terms of dividend yield based on share prices of yesterday, DBS dividend yield is 3.97% followed by OCBC (3.34%) and UOB (3.26%).
Looking at net asset value per share and its share price of yesterday, the Price-to-Book ratio for each of the bank was 1.17 times for DBS, 1.39 times for UOB and 1.49 times for OCBC. DBS is relatively cheap compared with the other banks. UOB’s share price took a beating today (1.37 pm) trading at $18.04, losing 36 cents from yesterday after its results was made public.
|Net Interest Income||$4.83b||$3.4b||$3.6b|
|Net Interest Margin||1.77%||1.86%||1.92%|
|Capital Adequacy – Tier 1||12.9%||14.4%||13.5%|
|Capital Adequacy – Total||15.8%||15.7%||16.7%|
DBS had the highest total revenue or income at $7.63b for the whole year. UOB and OCBC were quite close with total income at $5.7b versus $5.66b respectively. When comparing net interest margin, arising from commercial bank core business, DBS did poorly at 1.77%. OCBC had net interest margin of1.86% and UOB did the best at 1.92%. (Net interest margin is net of interest income and interest expenses.)
As for capital adequacy ratio, DBS had lowest Tier 1 capital adequacy ratio and UOB has the highest total adequacy ratio. Adequacy ratio indicates the strength of the bank to withstand business shock such as poor credit quality of assets.
Copyright © 2012, limkimtong for Living Investment
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