Time to own banking stock?

The share prices of three local banks, namely DBS, OCBC and UOB, declined between 4% to 5% as at 12.32 pm today.

Counter Share price @12 Aug 12.32pm ($) Change ($) Change (%)
DBS 18.71 -1.02 -5.17
OCBC 9.57 -0.51 -5.06
UOB 20.00 -0.86 -4.12

The financial results of the second quarter ended 30 June 2015 were tabled below.

Counter Net Profit ($m) Y-o-Y Change (%) NAV ($) Div ($) Remarks
DBS 1,117 15.0 15.29 0.30
OCBC 1,048 14.0 9.99 0.18 Revalued NAV
UOB 762 -5.7 20.34 0.35 Revalued NAV

Div = dividend announced in Quarter 2.

The following provides some valuation ratios extracted from StockFacts of SGX.

Counter Share price @11 Aug PTB * Earnings – LTM ($m) Div Yield P/E Ratio
DBS 19.73 1.29 4,232 3.04 11.73
OCBC 10.08 1.01 4,063 3.57 9.87
UOB 20.86 1.03 3,216 4.07 10.73

*PTB = Price to book is computed by dividing share price as at 11 August with NAV (Net Asset Value) shown in the earlier table.

LTM = Last 12 months

Dividend yields of these banks based on yesterday data were above 3.0%. UOB’s was 4.07% followed by OCBC’s 3.57% and DBS’s 3.04%.

Disclaimer: Caution advised with regard to investing.

Copyright © 2015, 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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