Comparison of DBS, OCBC and UOB – FY 2016

All three local banks had released their full year financial results for 2016.

Banks Q4 Profit ($m) Change (%) Year Profit ($m) Change (%)
DBS 913 -9.0 4,238 -5.0
OCBC 789 -18.0 3,473 -11.0
UOB 739 -6.2 3,096 -3.5

All banks gone negative in 2016 with OCBC showing the poorest results.

Banks NIM (%) NPL Ratio (%) Non-interest/ Total Income (%) Remarks
DBS 1.80 1.4 36.4 Full Year
OCBC 1.67 1.3 40.5 Full Year
UOB 1.71 1.5 38.1 Full Year

Notes:
NIM = Net Interest Margin
NPL = Non-Performing Loans

DBS did well on net interest margin at 1.80% compared with the other two.

UOB had higher NPL ratio at 1.5% followed by DBS (1.4%) and OCBC (1.3%)

In terms of Non-Interest Income/Total Income, OCBC got more from non-interest income type of business than DBS and UOB.

Banks NAV ($) Share Price ($) P/B Ratio
DBS 16.87 18.60 1.102
OCBC 8.49 9.52 1.121
UOB 18.82 21.18 1.125

Price to Book (P/B) ratio for DBS (1.102) was lower than OCBC’s and UOB’s.

Banks ROE (%) EPS ($) Share Price ($) PE Ratio
DBS 10.1 1.66 18.60 11.20
OCBC 10.0 0.822 9.52 11.58
UOB 10.2 1.86 21.18 11.38

Return to Equity (ROE) for all banks were comparable.

The Price Earning ratio (PE) for DBS was 11.20, lower than the other 2 banks based on share prices as at end of 17 February 2017.

Banks Dividend ($) Share Price ($) Div Yield (%) LY Dividend ($)
DBS 0.60 18.60 3.22 0.60
OCBC 0.36 9.52 3.78 0.36
UOB 0.70 21.18 3.30 0.90

Notes:
Dividend Yield, Price Earnings ratio and Price to Book ratio are calculated using share prices as at 17 February 2017.

OCBC’s Dividend Yield was higher than the other 2 banks at 3.78%.

Copyright © 2017, 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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