Comparison of DBS, OCBC and UOB – FY 2017

All three local banks had released their full year financial results for 2017.

Banks Q4 Profit ($m) Change (%) Year Profit ($m) Change (%)
DBS            1,194 31 4,371 3
OCBC            1,033 31 4,146 19
UOB              855 16 3,390 9

For Quarter 4, net profits of DBS and OCBC increased by impressive 31%. Net profit of UOB increased by 16%. It was the weakest among the three banks.

In terms of full year results, OCBC did best at 19% increase in net profits.

Banks NAV ($) Share Price ($) P/B Ratio
DBS 17.85 28.28 1.58
OCBC* 8.96 12.78 1.43
UOB 20.37 27.04 1.33

Note: * Net Asset Value for OCBC was before valuation surplus.
Share Price was taken at 15 February 2018 and was cum dividend.

Price to Book (P/B) ratio of DBS was 1.58 times. This was expensive relative to OCBC (1.43) and UOB (1.33).

Banks ROE (%) EPS ($) Share Price ($) PE Ratio
DBS 9.7 1.69 28.28 16.73
OCBC 11.2 0.976 12.78 13.09
UOB 10.2 1.99 27.04 13.59

DBS had a low Return on Equity (ROE) at 9.7%. OCBC was best at 11.2% followed by UOB’s 10.2%.

Again using historical earnings per share (EPS) to compute the Price Earnings Ratio (PE), DBS was expensive at 16.73 times. OCBC had PE of 13.09 and UOB’s was 13.59. They were comparable.

Banks Dividend ($) Share Price ($) Dividend Yield (%) Last Year Dividend ($)
DBS 1.43 28.28 5.1% 0.60
OCBC 0.37 12.78 2.9% 0.36
UOB 1.00 27.04 3.7% 0.70

Notes:
Special dividend of DBS = 50 cents
Special dividend of UOB = 20 cents

DBS proposed a special dividend for 2017 of 50 cents on account of celebration of 50th anniversary.

The table shows dividend yields that exclude special dividends.

Banks Dividend ($) Share Price ($) Dividend Yield (%) Last Year Dividend ($)
DBS 0.93 28.28 3.28% 0.60
OCBC 0.37 12.78 2.89% 0.36
UOB 0.80 27.04 2.95% 0.70

DBS still highest on dividend yield. All bank stocks are now expensive based on dividend yield ratios.

Copyright © 2018, 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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4 Responses to Comparison of DBS, OCBC and UOB – FY 2017

  1. An Koh says:

    Dear Mr Lim, will you be doing a comparison for 2018 results?
    Is there any value to invest in any Sg bank at today’s prices?
    Thank you for sharing your view.

    • limkimtong says:

      An Koh,

      The Business Times today (23/24 Feb) did a comparison of all three local banks. I had divested all bank counters sometime back and focus now on buying STI ETF. These banks are in the STI ETF. Any dividends paid out to shareholders are also paid out to the STI ETF. Investors in STI ETF get composite dividend payouts of all component stocks held in the ETF.

      Best Regards

  2. James says:

    Hi Mr Lim, I have to use this comment thread to leave a comment here, because there is no comment button or comment option for me to comment on your post. Would you know why? Any way for me to comment on say your new blog post?

    • limkimtong says:

      James, I have disabled comment option on my newer posts. This is because I am getting a great number of Spam comments that I find very irritating. The genuine ones were few in the past and therefore I sacrifice them by my action. Sorry. Best Regards.

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