Executive Summary
Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.2% per year for the next 3 years
Snowflake Analysis
Excellent balance sheet established 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
10.4%
O39
5.1%
SG Banks
7.6%
SG Market
1 Year Return
-11.3%
O39
-12.8%
SG Banks
-14.7%
SG Market
Return vs Industry: O39 exceeded the SG Banks industry which returned -12.8% over the past year.
Return vs Market: O39 exceeded the SG Market which returned -14.7% over the past year.
Shareholder returns
| O39 | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.4% | 5.1% | 7.6% |
| 30 Day | 6.3% | 5.4% | 6.5% |
| 90 Day | -7.5% | -6.9% | -8.0% |
| 1 Year | -6.3%-11.3% | -9.5%-12.8% | -11.2%-14.7% |
| 3 Year | -0.2%-11.6% | 0.005%-10.7% | -9.6%-19.5% |
| 5 Year | 13.1%-7.2% | -1.1%-19.0% | -4.6%-21.0% |
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
2 weeks ago | Simply Wall St
Imagine Owning Oversea-Chinese Banking (SGX:O39) And Wondering If The 19% Share Price Slide Is Justified1 month ago | Simply Wall St
Is Oversea-Chinese Banking Corporation Limited's (SGX:O39) CEO Overpaid Relative To Its Peers?1 month ago | Simply Wall St
Did Oversea-Chinese Banking Corporation Limited (SGX:O39) Insiders Buy Up More Shares?Valuation
Is Oversea-Chinese Banking undervalued compared to its fair value and its price relative to the market?
8.45x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: O39 (SGD9.44) is trading above our estimate of fair value (SGD9.35)
Significantly Below Fair Value: O39 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: O39 is poor value based on its PE Ratio (8.5x) compared to the Banks industry average (8.3x).
PE vs Market: O39 is good value based on its PE Ratio (8.5x) compared to the SG market (12x).
Price to Earnings Growth Ratio
PEG Ratio: O39's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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 17 analysts?
-0.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: O39's earnings are forecast to decline over the next 3 years (-0.2% per year).
Earnings vs Market: O39's earnings are forecast to decline over the next 3 years (-0.2% per year).
High Growth Earnings: O39's earnings are forecast to decline over the next 3 years.
Revenue vs Market: O39's revenue (3.9% per year) is forecast to grow faster than the SG market (3.8% per year).
High Growth Revenue: O39's revenue (3.9% 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 (9.8%).
Next Steps
Past Performance
How has Oversea-Chinese Banking performed over the past 5 years?
5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: O39 has a high level of non-cash earnings.
Growing Profit Margin: O39's current net profit margins (48.2%) are higher than last year (47.5%).
Past Earnings Growth Analysis
Earnings Trend: O39's earnings have grown by 5.5% per year over the past 5 years.
Accelerating Growth: O39's earnings growth over the past year (7.5%) exceeds its 5-year average (5.5% per year).
Earnings vs Industry: O39 earnings growth over the past year (7.5%) exceeded the Banks industry 3.9%.
Return on Equity
High ROE: O39's Return on Equity (10.3%) 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 (10.1x) is moderate.
Allowance for Bad Loans: O39 has a low allowance for bad loans (63%).
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 (53%).
Low Risk Deposits: O39's Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: O39 has an appropriate level of bad loans (1.4%).
Next Steps
Dividend
What is Oversea-Chinese Banking's current dividend yield, its reliability and sustainability?
5.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: O39's dividend (5.93%) is higher than the bottom 25% of dividend payers in the SG market (2.72%).
High Dividend: O39's dividend (5.93%) is low compared to the top 25% of dividend payers in the SG market (6%).
Stability and Growth of Payments
Stable Dividend: O39's dividends per share have been stable 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 (47.5%), 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 covered by earnings (50.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.3yrs
Average management tenure
CEO
Samuel Tsien (64yo)
8.17yrs
Tenure
S$11,079,557
Compensation
Mr. Nag Tsien, also known as Samuel, serves as Commissioner at PT Bank OCBC NISP Tbk since December 12, 2012. He has been the Group Chief Executive Officer of Oversea-Chinese Banking Corporation Limited si ...
CEO Compensation Analysis
Compensation vs Market: Samuel's total compensation ($USD7.96M) is above average for companies of similar size in the SG market ($USD5.26M).
Compensation vs Earnings: Samuel's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO and Executive & Non-Independent Director | 8.17yrs | S$11.08m | 0.045% SGD18.7m | |
| Executive VP & CFO | 8.5yrs | no data | no data | |
| Head of Global Treasury & Investment Banking and Senior EVP | no data | no data | no data | |
| Head of Corporate Finance | 4.58yrs | no data | no data | |
| Head of Group Operations & Technology | 10.08yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Head of Group Legal & Regulatory Compliance | 9.75yrs | no data | no data | |
| Head of Group Brand & Communications | 15.58yrs | no data | no data | |
| Head of Group Human Resources | 4.92yrs | no data | no data | |
| Deputy President of Global Wealth Management & Consumer Banking | 0.42yr | no data | 0.0086% SGD3.6m |
8.3yrs
Average Tenure
56.5yo
Average Age
Experienced Management: O39's management team is seasoned and experienced (8.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO and Executive & Non-Independent Director | 8.17yrs | S$11.08m | 0.045% SGD18.7m | |
| President Director & CEO of Bank OCBC NISP | 11.5yrs | S$202.00k | no data | |
| Non-Executive & Independent Director | 6.42yrs | S$302.40k | 0.0018% SGD752.7k | |
| Non-Executive Non-Independent Director | 0.67yr | S$48.11k | 0.000030% SGD12.5k | |
| Non-Executive & Non-Independent Director | 17.17yrs | S$223.19k | 0.26% SGD106.4m | |
| Independent Non-Executive Director | 6.75yrs | S$302.40k | 0.031% SGD13.0m | |
| Independent Chairman of the Board | 5.75yrs | S$1.70m | 0.0012% SGD503.2k | |
| Non-Executive & Non-Independent Director | 15yrs | S$168.16k | 0.0018% SGD744.4k | |
| Independent Director | 8.42yrs | S$187.31k | 0.0013% SGD519.8k | |
| Non-Executive Independent Director | 2.75yrs | S$257.40k | 0.00032% SGD133.1k |
6.6yrs
Average Tenure
64.5yo
Average Age
Experienced Board: O39's board of directors are considered experienced (6.6 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 been diluted in the past year, with total shares outstanding growing by 3.6%.
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$41.584b
- Shares outstanding: 4.41b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OVCH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| O39 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Jan 1992 |
| OCBA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| OVCH.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Feb 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/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers; and customized and structured equity-linked financing services. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company’s Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. The company has approximately 540 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 13:04 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.