DBS jumped in share price surpassing UOB and OCBC

A month made a lot of difference. After the release of the third quarter results for all three local banks, DBS came up short when compared with UOB and OCBC as regards its share price. It baffled me then, as the financial results of DBS won’t too bad.

The following table shows the Net Book Value (NAV) and the Price to Book ratio (P/B) of each bank as at 31 October 2016, one month ago.

Banks NAV ($) Share Price ($) @ P/B Ratio Remarks
DBS 16.68 14.91 0.89 Lowest, below 1.0
OCBC 8.31 8.51 1.02  
UOB 18.54 18.76 1.01  

@ Share prices were at 31 October 2016, 2.55 pm.

One month later, the share price of DBS shot up 19.98%. On the other hand, share price of UOB and OCBC went up 9.59% and 7.52% respectively.

Banks NAV ($)

 

Share Price ($) at 31.10.16 Share Price ($) at 2.12.16 P/B Price Change
DBS 16.68 14.91 17.89 1.072 19.98%
OCBC 8.31 8.51 9.15 1.101 7.52%
UOB 18.54 18.76 20.56 1.108 9.59%

The Price-to-Book (P/B) value for DBS is now above 1.0 at 1.072. This value is still lower than OCBC’s and UOB’s. But it has narrowed the gap between DBS with the other two banks.

Those who had kept faith with DBS would be happy that it now looks more rational.

Copyright © 2016, 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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