All three local banks had released their full year financial results.
The table below shows comparisons using some key ratios and results.
|Percentage change||– 4.0%||– 31.0% *||+7.3%|
|Dividend (Total)||58 cents||34 cents||75 cents|
|Dividend payout ratio||38.6%||43.5%||40.7%|
|Share price 18.2.2014||$16.55||$9.55||$20.43|
|Net Asset Value per share||$13.61||$8.33 **||$17.96 ^|
|Price Earnings Ratio||11.0||12.2||11.1|
|Price to Book ratio||1.21||1.14||1.13|
* OCBC had a divestment gains in 2012 of $1,168 m
** NAV of OCBC is after valuation surplus
^ based on revalued NAV for UOB
Dividend yield, Price Earnings ratio and Price to Book ratio are calculated using share price as at 18 February 2014 (two to three days after release of financial results of three banks).
UOB did particularly well for 2013. Net profit jumped 7.3% to $3,008 million. Both DBS and OCBC had profit reduced from a year ago. Core profit of OCBC (excluding divestment gains in 2012) declined 2.0%.
In terms of Return of Equity (ROE), UOB (12.3%) came in top followed by OCBC (11.6%) and then DBS (10.8%).
UOB is proposing special dividend of 5 cents on top of ordinary dividend.
Dividend payout ratio for all three banks are: OCBC (43.5%), UOB (40.7%) and DBS (38.6%). DBS is the lowest.
In terms of dividend yield based on share price on 18 February 2014: UOB (3.67%), OCBC (3.56%) and DBS (3.50%).
Price Earnings Ratio and Price to Book ratio
Based on share price at 18 February 2014,
Price Earnings ratio: DBS (11.0), UOB (11.1), OCBC (12.2)
Price to Book ratio: UOB (1.13), OCBC (1.14), DBS (1.21)
Other Key Operating Ratios:
|Net Interest Margin||1.62%||1.64%||1.72%|
|Non-performing loan ratio||1.1%||0.7%||1.1%|
|Total Capital Adequacy Ratio||16.3%||16.3%||16.6%|
|Non interest income to total income||37.6%||41.4%||38.7%|
|Loans to deposits||85.0%||85.7%||88.5%|
|Cash & Cash equivalent||$10.9 b||$19.3b||$21.2b|
* excludes one-time item
The best net interest margin comes from UOB at 1.72%.
Non-performing loan ratio is the lowest for OCBC (0.7%).
OCBC has the highest non-interest income to total income ratio at 41.4%.
Total capital adequacy ratio is nearly the same for all three banks.
UOB has higher loans to deposits ratio at 88.5%.
UOB has the most cash and cash equivalent amount at $21.2 billion with DBS having the lowest ($10.9 b). OCBC had $19.3b. Part of this could be used to pay for their proposed acquisition of Wing Hang Bank (if it is approved).
UOB share prices
UOB’s share price rose 51 cents on 17 Feb (Monday) first day on release of its result on last Friday. It continued to rise 2 cents on Tuesday and now it was up 25 cents at 3 pm today. In total, the price increase was 78 cents over a few days and this is not even cum dividend yet.
Copyright © 2014, limkimtong for Living Investment
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