company background image
23

Bank of East AsiaSEHK:23 Stock Report

Market Cap

HK$37.3b

7D

-0.6%

1Y

-11.6%

Updated

17 Oct, 2021

Data

Company Financials +
23 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends3/6

23 Overview

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services.

Bank of East Asia Competitors

Industrial and Commercial Bank of China

SEHK:1398

HK$1.9t

Bank of China

SEHK:3988

HK$1.0t

JPMorgan Chase

NYSE:JPM

US$492.4b

Bank of America

NYSE:BAC

US$382.1b

Price History & Performance

Summary of all time highs, changes and price drops for Bank of East Asia
Historical stock prices
Current Share PriceHK$12.76
52 Week HighHK$12.04
52 Week LowHK$19.50
Beta0.61
1 Month Change0.63%
3 Month Change-5.20%
1 Year Change-11.63%
3 Year Change-50.64%
5 Year Change-59.62%
Change since IPO21.27%

Recent News & Updates

Aug 21
Bank of East Asia (HKG:23) Has Announced That It Will Be Increasing Its Dividend To HK$0.35

Bank of East Asia (HKG:23) Has Announced That It Will Be Increasing Its Dividend To HK$0.35

The board of The Bank of East Asia, Limited ( HKG:23 ) has announced that it will be increasing its dividend by 119% on...

Shareholder Returns

23HK BanksHK Market
7D-0.6%0.005%1.1%
1Y-11.6%3.8%5.3%

Return vs Industry: 23 underperformed the Hong Kong Banks industry which returned 3.8% over the past year.

Return vs Market: 23 underperformed the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 23's price volatile compared to industry and market?
23 volatility
23 Beta0.61
Industry Beta0.61
Market Beta1

Stable Share Price: 23 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 23's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19189,215Adrian David Lihttps://www.hkbea.com

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. Its personal banking services include corporate, individual, savings, current, time deposit, and supreme accounts; and fixed and call deposits, foreign currency deposits, MAS services, and auto-payroll products, as well as safe deposit boxes and remittance services. The company also provides corporate banking services, such as SME loans and financing guarantee schemes; corporate and commercial financing products, including syndicated and construction loans, acquisition and structured financing, working capital financing, share financing and IPO-related loans, and commercial mortgages; trade finance services and expert trade solutions; factoring services; import trade finance; guarantee services; eTradeConnect that allows buyers and sellers to connect, transact, share information, and submit applications for financing through a single platform; cash management services; corporate wealth management products; foreign exchange and treasury products; trade settlement and financing services; onshore and offshore loans; and marine cargo, property, trade credit, employee compensation, pet, medical, life, savings, and endowment insurance plans.

Bank of East Asia Fundamentals Summary

How do Bank of East Asia's earnings and revenue compare to its market cap?
23 fundamental statistics
Market CapHK$37.29b
Earnings (TTM)HK$3.95b
Revenue (TTM)HK$14.26b

9.4x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
23 income statement (TTM)
RevenueHK$14.26b
Cost of RevenueHK$0
Gross ProfitHK$14.26b
ExpensesHK$10.31b
EarningsHK$3.95b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.35
Gross Margin100.00%
Net Profit Margin27.72%
Debt/Equity Ratio20.8%

How did 23 perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

44%

Payout Ratio

Valuation

Is Bank of East Asia undervalued compared to its fair value and its price relative to the market?

31.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 23 (HK$12.76) is trading below our estimate of fair value (HK$18.56)

Significantly Below Fair Value: 23 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 23 is poor value based on its PE Ratio (9.4x) compared to the Hong Kong Banks industry average (5.7x).

PE vs Market: 23 is good value based on its PE Ratio (9.4x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 23 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 23's PB Ratio (0.3x) is in line with the HK Banks industry average.


Future Growth

How is Bank of East Asia forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 23's forecast earnings growth (16.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 23's earnings (16.8% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 23's earnings are forecast to grow, but not significantly.

Revenue vs Market: 23's revenue (8.3% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 23's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 23's Return on Equity is forecast to be low in 3 years time (4.7%).


Past Performance

How has Bank of East Asia performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 23 has high quality earnings.

Growing Profit Margin: 23's current net profit margins (27.7%) are higher than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: 23's earnings have declined by 3.5% per year over the past 5 years.

Accelerating Growth: 23's earnings growth over the past year (28.7%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: 23 earnings growth over the past year (28.7%) exceeded the Banks industry 6.4%.


Return on Equity

High ROE: 23's Return on Equity (4.2%) is considered low.


Financial Health

How is Bank of East Asia's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 23's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: 23 has a low allowance for bad loans (66%).

Low Risk Liabilities: 88% of 23's liabilities are made up of primarily low risk sources of funding.

Loan Level: 23 has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: 23's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: 23 has an appropriate level of bad loans (1.2%).


Dividend

What is Bank of East Asia current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 23's dividend (4.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 23's dividend (4.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

Stable Dividend: 23's dividend payments have been volatile in the past 10 years.

Growing Dividend: 23's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.5%), 23's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 23's dividends in 3 years are forecast to be well covered by earnings (43.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Adrian David Li (47 yo)

2.25yrs

Tenure

HK$15,900,000

Compensation

Mr. Man-kiu Li, also known as Adrian David, BA (Cantab), Hon. MA (Cantab), MBA, LPC, JP, has been Co-Chief Executive of Bank of East Asia, Ltd since July 01, 2019 and has been its Executive Director since...


CEO Compensation Analysis

Compensation vs Market: Adrian David's total compensation ($USD2.04M) is above average for companies of similar size in the Hong Kong market ($USD689.07K).

Compensation vs Earnings: Adrian David's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 23's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 23's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Bank of East Asia, Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Bank of East Asia, Limited
  • Ticker: 23
  • Exchange: SEHK
  • Founded: 1918
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$37.293b
  • Shares outstanding: 2.92b
  • Website: https://www.hkbea.com

Number of Employees


Location

  • The Bank of East Asia, Limited
  • 10 Des Voeux Road
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:06
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.