Third quarter 2012 results (Part 4) – DBS, UOB, OCBC

Three local banks had reported their financial results for the quarter covering 1 July to 30 September 2012 (Third Quarter 2012).

The following table provides information on net profit attributable to shareholders and year-on-year change between current quarter in 2012 against corresponding quarter of 2011.

Net Profits Y-o-Y Change
DBS $ 856 m + 12.0%
UOB $ 707 m + 35.5%
OCBC (excl divestment gains) $ 724 m + 41.0%
OCBC (incl divestment gains) $ 1,850 m nm

“In August 2012, the OCBC realised gains of $1.13 billion post-tax from the divestment of its stakes in Fraser and Neave, Limited and Asia Pacific Breweries Limited.” (Source: OCBC)

NAV ROE Share Price P/B
DBS $ 12.50 11.2% $ 13.86 1.108
UOB $ 16.12 12.1% $ 18.30 1.135
OCBC $ 7.63 12.8% $ 9.09 1.191

NAV = Net Asset Value (Revalued)
ROE = Return on Equity (on core earnings)
P/B = Price to book ratio
Share price as at 8 Nov

OCBC’s net profit attributable to shareholders jumped 41.0% based on their core earnings (excluding divestment gains of F&N and APB). This was better than UOB (+35.5%) and DBS (+12.0%).

OCBC had the highest Return on Equity at 12.8% compared to UOB (12.1%) and DBS (11.2%). OCBC earned more for their shareholders. DBS has been trying to improve its ROE to catch up with the other 2 banks.

As regards Price-to-Book ratio, OCBC had the highest P/B ratio (1.191 times) against UOB (1.135 times) and DBS (1.108 times). This is based on the share price as at 8 November. Note that OCBC only released its results this morning and the share price above is before the release of results. Currently share price of OCBC is $9.12 (11.08 am) Investors were willing to pay more for OCBC but not DBS.

All three local banks continue to perform well in this quarter beating analysts’ estimates.

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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