ROE of companies – 31 December 2013 year end

Return on equity (ROE) is a financial ratio which is hard to pin down. Try getting it from Reuters, Bloomberg, DBS Vickers and you will find different values for same companies depending on which source you are accessing. Not all companies release this ratio in their announcements of results through the SGX portal.

Therefore, I compute the ROE ratio based on net profit attributable to shareholders over shareholders’ funds using the Profit & Loss Statement and the Balance Sheet of these companies.

ROE tells the shareholders how the company is generating profit for the owners of the shares for past one year (as percentage of shareholders’ funds). The higher number means postive performance.

The following companies had 31 December 2013 as their year end.

Net Profits

S/H Fund

ROE

M1

 160

 395

 40.5

StarHub *

 370

 1,219

 30.4

ST Engr

 580

 2,116

 27.4

Sembcorp Marine

 555

 2,677

 20.7

Keppel Corp

 1,845

 9,701

 19.0

Sembcorp Ind

 820

 5,027

 16.3

Keppel Land

 885

 6,989

 12.7

Comfort Delgro

 263

 2,154

 12.2

UOL

 785

 6,759

 11.6

UOB

 3,008

 26,388

 11.4

OCBC

 2,768

 25,115

 11.0

DBS

 3,672

 34,233

 10.7

City Developments

 682

 7,845

 8.7

CapitaLand

 849

 16,067

 5.3

SBS Transit

 11

 344

 3.2

Note: Net Profits and S/H Fund are in million of dollars
* S/H Fund of Starhub is for the company and not for the group

The stand-out companies include M1, Starhub, ST Engineering, Sembcorp Marine and Keppel Corporation. Sembcorp Industries followed behind them.

In the property developers sector, Keppel Land (12.7%) and UOL (11.6%) did well. City Developments (8.7%) and CapitaLand (5.3%) did poorly.

Comfort Delgro’s ROE was 12.2% but SBS Transit was only 3.2%.

As for the three local banks, UOB (11.4%) and OCBC (11.0%) are ahead of DBS (10.7%).

Copyright © 2014, 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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