SGX:O39

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Oversea-Chinese Banking

Executive Summary

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Oversea-Chinese Banking's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: O39 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: O39's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

O39

-0.3%

SG Banks

-0.5%

SG Market


1 Year Return

-5.7%

O39

-6.7%

SG Banks

-14.2%

SG Market

Return vs Industry: O39 matched the SG Banks industry which returned -6.3% over the past year.

Return vs Market: O39 exceeded the SG Market which returned -14.4% over the past year.


Shareholder returns

O39IndustryMarket
7 Day-0.5%-0.3%-0.5%
30 Day17.0%9.3%11.3%
90 Day18.0%12.4%10.3%
1 Year-0.8%-5.7%-2.7%-6.7%-9.5%-14.2%
3 Year-7.7%-18.5%0.4%-10.6%-11.1%-22.1%
5 Year42.8%17.2%30.8%7.3%12.2%-8.6%

Long-Term Price Volatility Vs. Market

How volatile is Oversea-Chinese Banking's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Oversea-Chinese Banking undervalued compared to its fair value and its price relative to the market?

9.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: O39 (SGD10.1) is trading above our estimate of fair value (SGD8.88)

Significantly Below Fair Value: O39 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: O39 is good value based on its PE Ratio (9.9x) compared to the XA Banks industry average (10.3x).

PE vs Market: O39 is good value based on its PE Ratio (9.9x) compared to the SG market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: O39 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: O39 is overvalued based on its PB Ratio (0.9x) compared to the XA Banks industry average (0.6x).


Next Steps

Future Growth

How is Oversea-Chinese Banking forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: O39's forecast earnings growth (19.3% per year) is above the savings rate (2.2%).

Earnings vs Market: O39's earnings (19.3% per year) are forecast to grow slower than the SG market (26.7% per year).

High Growth Earnings: O39's earnings are forecast to grow, but not significantly.

Revenue vs Market: O39's revenue (4.5% per year) is forecast to grow slower than the SG market (8.2% per year).

High Growth Revenue: O39's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: O39's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Oversea-Chinese Banking performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: O39 has high quality earnings.

Growing Profit Margin: O39's current net profit margins (42.3%) are lower than last year (48.2%).


Past Earnings Growth Analysis

Earnings Trend: O39's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: O39's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: O39 had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Banks industry average (-7.2%).


Return on Equity

High ROE: O39's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Oversea-Chinese Banking'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: O39's Assets to Equity ratio (10.3x) is moderate.

Allowance for Bad Loans: O39 has a low allowance for bad loans (82%).

Low Risk Liabilities: 70% of O39's liabilities are made up of primarily low risk sources of funding.

Loan Level: O39 has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: O39's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: O39 has an appropriate level of bad loans (1.6%).


Next Steps

Dividend

What is Oversea-Chinese Banking current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: O39's dividend (4.35%) is higher than the bottom 25% of dividend payers in the SG market (2.41%).

High Dividend: O39's dividend (4.35%) is low compared to the top 25% of dividend payers in the SG market (5.19%).


Stability and Growth of Payments

Stable Dividend: O39's dividend payments have been volatile in the past 10 years.

Growing Dividend: O39's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), O39's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: O39's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Samuel Tsien (65 yo)

8.67yrs

Tenure

S$11,079,557

Compensation

Mr. Nag Tsien, also known as Samuel, serves as Commissioner at PT Bank OCBC NISP Tbk since December 12, 2012. He has been the Group Chief Executive Officer of Oversea-Chinese Banking Corporation Limited si...


CEO Compensation Analysis

Compensation vs Market: Samuel's total compensation ($USD8.31M) is above average for companies of similar size in the SG market ($USD4.48M).

Compensation vs Earnings: Samuel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nag Tsien
Group CEO and Executive & Non-Independent Director8.67yrsS$11.08m0.045%
SGD 20.4m
Siew Peng Tan
Executive VP & CFO9yrsno datano data
Khiang Tong Lim
Head of Group Operations & Technology10.58yrsno datano data
David Cheng
Head of Corporate Finance5.08yrsno datano data
Collins Chin
Head of Investor Relationsno datano datano data
Yuen Ling
Head of Group Legal & Regulatory Compliance10.25yrsno datano data
Ching Ching Koh
Head of Group Brand & Communications16.08yrsno datano data
Poh Wah Ho
Head of Group Human Resources5.42yrsno datano data
Wei Hong Ching
Deputy President and Head of Global Wealth Management & Consumer Banking0.92yrno data0.0085%
SGD 3.8m
Vincent Soh
Head of Group Property Management16.5yrsno datano data
Ti Liang Goh
Head of Global Commercial Banking16.67yrsno datano data
Kok Kim Gan
Executive VP & Head of Global Investment Banking8.83yrsno datano data

9.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: O39's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nag Tsien
Group CEO and Executive & Non-Independent Director8.67yrsS$11.08m0.045%
SGD 20.4m
Parwati Surjaudaja
President Director & CEO of Bank OCBC NISP12yrsS$202.00kno data
Joo Yeow Wee
Non-Executive & Independent Director6.92yrsS$302.40k0.0018%
SGD 819.8k
Beng Seng Koh
Non-Executive Independent Director1.17yrsS$48.11k0.000030%
SGD 13.5k
Tih Shih Lee
Non-Executive & Independent Director17.67yrsS$223.19k0.26%
SGD 115.8m
Ngiap Tan
Independent Non-Executive Director7.25yrsS$302.40k0.031%
SGD 14.1m
Sang Ooi
Independent Chairman of the Board6.25yrsS$1.70m0.0012%
SGD 549.6k
Pramukti Surjaudaja
Non-Executive & Independent Director15.5yrsS$168.16k0.0018%
SGD 797.3k
Wee Ghee Quah
Independent Director8.92yrsS$187.31k0.0013%
SGD 563.1k
Yen Yen Tan
Non-Executive & Independent Director0.92yrno datano data
Kwee Fong Hon
Non-Executive Independent Director4.83yrsS$223.19k0.00056%
SGD 252.3k
Kim Chiu Chua
Non-Executive Independent Director3.25yrsS$257.40k0.00032%
SGD 144.1k

6.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: O39's board of directors are considered experienced (6.9 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Oversea-Chinese Banking Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oversea-Chinese Banking Corporation Limited
  • Ticker: O39
  • Exchange: SGX
  • Founded: 1912
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: S$45.047b
  • Shares outstanding: 4.47b
  • Website: https://www.ocbc.com

Number of Employees


Location

  • Oversea-Chinese Banking Corporation Limited
  • No. 10-00 OCBC Centre East
  • 63 Chulia Street
  • Singapore
  • 49514
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OVCH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
O39SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
OCBADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
OVCH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2009

Biography

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 11:15
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.