All three local banks had released their third quarter financial results for 2016.
Net Profits for the third quarter and the 9 months ended 30 September 2016 are tabled below:
|Banks||Q3 Profit ($m)||Change (%)||9 months Profit ($m)||Change (%)|
Both DBS and OCBC achieved positive growth in the third quarter performances. UOB’s third quarter results declined 7.8% over the same period in 2015.
As for 9 months results, OCBC did worst at 8.8% decline followed by DBS (-3.6%) and UOB (-2.6%).
The following table shows some key indicators for 9 months:
|Banks||NIM (%)||NPL Ratio (%)||Non-interest/ Total Income (%)||ROE (%)|
NIM = Net Interest Margin
NPL = Non-Performing Loans
In terms of net interest margin, DBS was the best performer at 1.83% followed by UOB’s 1.72% and OCBC was 1.68%.
In terms of non-performing loan ratio, UOB did poorly at 1.6% followed by DBS’ 1.3% and OCBC at 1.2%.
As for which bank obtained more businesses from non-interest income, OCBC was top at 39.8% followed by UOB’s 38.4% and DBS’ 37.1%.
In terms of return on equity (ROE), DBS was ahead at 10.7% followed by both UOB and OCBC at 10.5%.
The following table shows the Net Book Value (NAV) and the Price to Book ratio (P/B) of each bank.
|Share Price ($) @||P/B Ratio|
@ Share prices were at 31 October 2016, 2.55 pm.
DBS was trading at 0.89 P/B ratio whereas OCBC’s was 1.02 and UOB’s was 1.01. DBS was really beaten down so badly compared with the other two banks.
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