SEHK:23

Stock Analysis Report

Bank of East Asia

Executive Summary

The Bank of East Asia, Limited provides various banking and related financial services.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Bank of East Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.1%

23

-3.3%

HK Banks

-2.7%

HK Market


1 Year Return

-34.1%

23

-13.7%

HK Banks

-9.4%

HK Market

23 underperformed the Banks industry which returned -13.7% over the past year.

23 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

23IndustryMarket
7 Day-3.1%-3.3%-2.7%
30 Day-4.9%3.3%1.8%
90 Day-9.9%-8.6%-5.6%
1 Year-32.0%-34.1%-9.2%-13.7%-6.2%-9.4%
3 Year-34.0%-39.9%11.2%-4.4%14.3%2.7%
5 Year-28.7%-39.1%27.3%-2.4%16.7%-2.8%

Price Volatility Vs. Market

How volatile is Bank of East Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

How Do Analysts See The Bank of East Asia, Limited (HKG:23) Performing Over The Next Few Years?

Valuation

Is Bank of East Asia undervalued based on future cash flows and its price relative to the stock market?

19.98x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bank of East Asia's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bank of East Asia's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bank of East Asia is overvalued based on earnings compared to the HK Banks industry average.

Bank of East Asia is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Bank of East Asia is good value based on expected growth next year.


Price Based on Value of Assets

Bank of East Asia is good value based on assets compared to the HK Banks industry average.


Next Steps

Future Growth

How is Bank of East Asia expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank of East Asia's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

Bank of East Asia's earnings are expected to grow significantly at over 20% yearly.

Bank of East Asia's revenue growth is positive but not above the Hong Kong market average.

Bank of East Asia's earnings growth is expected to exceed the Hong Kong market average.

Bank of East Asia's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank of East Asia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank of East Asia's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Bank of East Asia's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Bank of East Asia's 1-year earnings growth is negative, it can't be compared to the HK Banks industry average.


Return on Equity

Bank of East Asia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bank of East Asia used its assets less efficiently than the HK Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank of East Asia improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

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

Information is not available.

Information is not available.


Financial Institutions Analysis

Bank of East Asia has an acceptable proportion of non-loan assets held.

Bank of East Asia has a low allowance for bad loans.

Bank of East Asia's liabilities are made up of primarily low risk sources of funding.

Bank of East Asia's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank of East Asia are broadly funded by customer deposits.

Bank of East Asia has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

4.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank of East Asia's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Bank of East Asia's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Bank of East Asia's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Adrian David Li (46yo)

0.2yrs

Tenure

HK$39,100,000

Compensation

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


CEO Compensation Analysis

Adrian David's remuneration is higher than average for companies of similar size in Hong Kong.

Adrian David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

10.0yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Bank of East Asia management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

68.5yo

Average Age

The tenure for the Bank of East Asia board of directors is about average.


Insider Trading

More shares have been bought than sold by Bank of East Asia individual insiders in the past 3 months.


Recent Insider Transactions

BuyHK$2,373,20429 Aug 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares120,000
Max PriceHK$19.78
BuyHK$5,921,85529 Aug 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares299,200
Max PriceHK$19.79
BuyHK$1,993,77329 Aug 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares100,800
Max PriceHK$19.78
BuyHK$4,450,24117 Jul 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares200,000
Max PriceHK$22.25
BuyHK$13,664,32024 Jun 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares630,000
Max PriceHK$21.69
BuyHK$417,00019 Jun 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$20.85
BuyHK$2,131,00018 Jun 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares100,000
Max PriceHK$21.31
BuyHK$5,519,50017 Jun 19
Kwok-Po Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares250,000
Max PriceHK$22.08

Ownership Breakdown


Management Team

  • Hon-Shing Tong (60yo)

    Deputy Chief Executive & COO

    • Tenure: 10.4yrs
  • Adrian David Li (46yo)

    Co-Chief Executive & Executive Director

    • Tenure: 0.2yrs
    • Compensation: HK$39.10m
  • Joseph Pang (70yo)

    Senior Advisor

    • Tenure: 10.4yrs
    • Compensation: HK$5.50m
  • Samson Li (59yo)

    Deputy Chief Executive Officer and Chief Investment Officer

    • Tenure: 10.4yrs
  • David Li (80yo)

    Executive Chairman

    • Tenure: 22.7yrs
    • Compensation: HK$137.70m
  • Brian David Li (44yo)

    Co-Chief Executive & Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$39.10m
  • Ignatius Chan (62yo)

    Senior Advisor

    • Tenure: 0yrs
  • William Cheng (59yo)

    Group Chief Financial Officer

    • Tenure: 10.5yrs
  • Alson Law

    Company Secretary

    • Tenure: 9.7yrs

Board Members

  • Allan Wong (68yo)

    Independent Non-Executive Deputy Chairman of the Board

    • Tenure: 10.7yrs
    • Compensation: HK$900.00k
  • Adrian David Li (46yo)

    Co-Chief Executive & Executive Director

    • Tenure: 0.2yrs
    • Compensation: HK$39.10m
  • Winston Lo (78yo)

    Non-Executive Director

    • Tenure: 19.7yrs
    • Compensation: HK$400.00k
  • Aubrey Li (69yo)

    Non-Executive Director

    • Tenure: 24.7yrs
    • Compensation: HK$500.00k
  • Meocre Li (64yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: HK$1.10m
  • David Li (80yo)

    Executive Chairman

    • Tenure: 22.7yrs
    • Compensation: HK$137.70m
  • Brian David Li (44yo)

    Co-Chief Executive & Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$39.10m
  • Henry Tang (66yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$900.00k
  • Arthur Li (74yo)

    Non-Executive Deputy Chairman of the Board

    • Tenure: 10.4yrs
    • Compensation: HK$500.00k
  • Rita Fan Hsu (73yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$500.00k

Company Information

The Bank of East Asia, Limited's company bio, 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$57.008b
  • Shares outstanding: 2.90b
  • Website: https://www.hkbea.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKEA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BOADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
23SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
23SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
23SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
BKEA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1995
A1APM1DB (Deutsche Boerse AG)8.5%-FRN SUB 05/11/2059 USD100000 'REGS'DEUSDNov 2009

Biography

The Bank of East Asia, Limited provides various banking and related financial services. It operates through eight segments: Personal Banking, Corporate Banking, Treasury Markets, Wealth Management, Financi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:35
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.