ROE for Year-end 2012

With the release of full-year financial performance of some listed companies, The table below shows return on equity (ROE) and dividend yields against prices of these stocks as at 31 December 2012.

ROE

%

YE

Price

Div Yield

%

OCBC 12.5 $9.73 3.39
UOB 12.4 $19.81 3.53
DBS Bank 11.2 $14.84 3.77
Keppel Corp 22.6 $11.00 6.58
Semb Marine 22.2 $4.60 2.82
SembCorp Ind 17.5 $5.25 2.85
Keppel Land 14.8 $4.03 2.97
UOL 13.1 $5.97 2.51
City Dev 9.2 * $12.87 1.01
CapitaLand 6.1 * $3.75 1.86

Note:
ROE of OCBC is on core earnings and exclude divestment gains.
ROEs on City Development and CapitaLand are not disclosed in their release of results but are computed. ROE = Net Profit/Share Capital & Reserve (attributable to shareholders)

Return on equity (ROE) ratio shows how profitable a company was in deploying funds provided by ordinary shareholders in generating company profits. ROE can be compared across different sectors of industries as it is neutral indicator. However, comparing within sector of an industry will yield better comparison because bank’s operational environment is different from say property developer.

What can we say about the results shown above?

For 2012,
OCBC and UOB did better than DBS.
Keppel Corp and SembCorp Marine were quite close and did better than SembCorp Industries.
Keppel Land was ahead of the rest. City Developments and CapitaLand had below 10% ROE. CapitaLand was the lowest. UOL was second on the list.

Copyright © 2013, 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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