Oversea-Chinese Banking
Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The last earnings update was 11 days ago. More info.
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O39 Share Price and Events
7 Day Returns
1 Year Returns
O39 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Oversea-Chinese Banking (O39) | -0.4% | -5.3% | -4.2% | -14.9% | 31.5% | 15.2% |
| Asia Banks | -1.1% | -7.2% | -2.7% | -13.2% | 33.7% | 10.9% |
| SG Market | -1.8% | -3.8% | -1.8% | -8.4% | 10.2% | -7.1% |
1 Year Return vs Industry and Market
- O39 underperformed the Banks industry which returned -13.2% over the past year.
- O39 underperformed the Market in Singapore which returned -8.4% over the past year.
O39 Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Oversea-Chinese Banking
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Oversea-Chinese Banking.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 18 analysts.
= Stable Book Value * Return on Equity = SGD10.94 * 11.3% |
SGD1.23 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 17 analysts. | SGD10.94 |
| Discount Rate (Cost of Equity) | See below | 8% |
| Perpetual Growth Rate | 10-Year SG Government Bond Rate | 2.3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year SG Govt Bond Rate | 2.3% |
| Equity Risk Premium | S&P Global | 6% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.59 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.586 (1 + (1- 17%) (72.44%)) |
0.959 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.96 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.959 * 5.96%) |
8.02% |
Discounted Cash Flow Calculation for SGX:O39 using Excess Returns Model Model
The calculations below outline how an intrinsic value for Oversea-Chinese Banking is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (11.3% – 8.02%) * SGD10.94) |
SGD0.36 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= SGD0.36 / (8.02% - 2.3%) |
SGD6.27 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= SGD10.94 + SGD6.27 |
SGD17.2 |
| Calculation | Result | |
|---|---|---|
| Value per share (SGD) | From above. | SGD17.20 |
| Current discount | Discount to share price of
SGD11.15
= -1 x (SGD11.15 - SGD17.20) / SGD17.20 |
35.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Oversea-Chinese Banking's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Oversea-Chinese Banking's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Oversea-Chinese Banking's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Oversea-Chinese Banking's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in SGD | SGD1.08 |
| SGX:O39 Share Price ** | SGX (2019-05-17) in SGD | SGD11.15 |
| Asia Banks Industry PE Ratio | Median Figure of 55 Publicly-Listed Banks Companies | 10.48x |
| Singapore Market PE Ratio | Median Figure of 322 Publicly-Listed Companies | 12.52x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Oversea-Chinese Banking.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = SGX:O39 Share Price ÷ EPS (both in SGD) = 11.15 ÷ 1.08 |
10.28x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Oversea-Chinese Banking is good value based on earnings compared to the Asia Banks industry average.
- Oversea-Chinese Banking is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does
Oversea-Chinese Banking's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.28x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts |
6.2%per year |
| Asia Banks Industry PEG Ratio | Median Figure of 38 Publicly-Listed Banks Companies | 1.05x |
| Singapore Market PEG Ratio | Median Figure of 120 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.28x ÷ 6.2% |
1.67x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Oversea-Chinese Banking is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Oversea-Chinese Banking's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in SGD | SGD10.32 |
| SGX:O39 Share Price * | SGX (2019-05-17) in SGD | SGD11.15 |
| Asia Banks Industry PB Ratio | Median Figure of 74 Publicly-Listed Banks Companies | 0.65x |
| Singapore Market PB Ratio | Median Figure of 432 Publicly-Listed Companies | 0.72x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SGX:O39 Share Price ÷ Book Value per Share (both in SGD) = 11.15 ÷ 10.32 |
1.08x |
* Primary Listing of Oversea-Chinese Banking.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Oversea-Chinese Banking is overvalued based on assets compared to the Asia Banks industry average.
Value checks
We assess Oversea-Chinese Banking's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) Oversea-Chinese Banking has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
O39 Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Oversea-Chinese Banking's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
- Oversea-Chinese Banking's earnings growth is expected to exceed the Singapore market average.
- Oversea-Chinese Banking's revenue growth is expected to exceed the Singapore market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| SGX:O39 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts | 6.2% |
| SGX:O39 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts | 5.8% |
| Asia Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 11.1% |
| Asia Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| Singapore Market Earnings Growth Rate | Market Cap Weighted Average | 5.7% |
| Singapore Market Revenue Growth Rate | Market Cap Weighted Average | 4.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | 12,651 | 1 | ||
| 2021-12-31 | 11,709 | 5,382 | 15 | |
| 2020-12-31 | 11,076 | 5,138 | 19 | |
| 2019-12-31 | 10,488 | 4,770 | 18 |
| Date (Data in SGD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 9,519 | -1,097 | 4,611 |
| 2018-12-31 | 9,413 | -5,268 | 4,492 |
| 2018-09-30 | 9,836 | -6,927 | 4,649 |
| 2018-06-30 | 9,602 | -16,999 | 4,512 |
| 2018-03-31 | 9,331 | -14,497 | 4,343 |
| 2017-12-31 | 8,964 | -24,610 | 4,084 |
| 2017-09-30 | 8,268 | -28,733 | 3,760 |
| 2017-06-30 | 8,045 | -19,517 | 3,586 |
| 2017-03-31 | 7,824 | -23,598 | 3,421 |
| 2016-12-31 | 7,763 | -10,119 | 3,414 |
| 2016-09-30 | 7,998 | 6,951 | 3,568 |
| 2016-06-30 | 7,902 | 7,626 | 3,536 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
All data from Oversea-Chinese Banking Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SGD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 1.37 | 1.37 | 1.37 | 1.00 |
| 2022-12-31 | 1.36 | 1.41 | 1.30 | 2.00 |
| 2021-12-31 | 1.25 | 1.46 | 1.15 | 13.00 |
| 2020-12-31 | 1.20 | 1.32 | 1.12 | 17.00 |
| 2019-12-31 | 1.12 | 1.19 | 1.08 | 16.00 |
| Date (Data in SGD Millions) | EPS * |
|---|---|
| 2019-03-31 | 1.08 |
| 2018-12-31 | 1.06 |
| 2018-09-30 | 1.11 |
| 2018-06-30 | 1.08 |
| 2018-03-31 | 1.04 |
| 2017-12-31 | 0.98 |
| 2017-09-30 | 0.89 |
| 2017-06-30 | 0.86 |
| 2017-03-31 | 0.82 |
| 2016-12-31 | 0.82 |
| 2016-09-30 | 0.86 |
| 2016-06-30 | 0.86 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Oversea-Chinese Banking is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Oversea-Chinese Banking's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Oversea-Chinese Banking has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
O39 Past Performance
How has Oversea-Chinese Banking performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Oversea-Chinese Banking's year on year earnings growth rate has been positive over the past 5 years.
- Oversea-Chinese Banking's 1-year earnings growth exceeds its 5-year average (6.2% vs 5.9%)
- Oversea-Chinese Banking's earnings growth has not exceeded the Asia Banks industry average in the past year (6.2% vs 6.2%).
Earnings and Revenue History
All data from Oversea-Chinese Banking Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in SGD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 9,519.00 | 4,611.00 | 2,704.00 | |
| 2018-12-31 | 9,413.00 | 4,492.00 | 2,706.00 | |
| 2018-09-30 | 9,835.84 | 4,649.37 | 2,688.19 | |
| 2018-06-30 | 9,601.84 | 4,512.37 | 2,645.19 | |
| 2018-03-31 | 9,330.84 | 4,343.37 | 2,629.19 | |
| 2017-12-31 | 8,963.84 | 4,084.37 | 2,569.19 | |
| 2017-09-30 | 8,268.42 | 3,759.93 | 2,514.76 | |
| 2017-06-30 | 8,045.42 | 3,585.93 | 2,507.76 | |
| 2017-03-31 | 7,824.42 | 3,420.93 | 2,471.76 | |
| 2016-12-31 | 7,763.42 | 3,413.93 | 2,446.76 | |
| 2016-09-30 | 7,998.37 | 3,568.14 | 2,439.25 | |
| 2016-06-30 | 7,901.88 | 3,536.48 | 2,394.55 | |
| 2016-03-31 | 8,082.88 | 3,699.48 | 2,385.55 | |
| 2015-12-31 | 8,233.88 | 3,846.48 | 2,351.55 | |
| 2015-09-30 | 8,011.65 | 3,677.67 | 2,311.64 | |
| 2015-06-30 | 8,412.14 | 4,006.33 | 2,302.34 | |
| 2015-03-31 | 8,181.14 | 3,879.33 | 2,197.34 | |
| 2014-12-31 | 7,983.14 | 3,785.33 | 2,084.34 | |
| 2014-09-30 | 7,738.11 | 3,676.40 | 1,952.55 | |
| 2014-06-30 | 7,059.11 | 3,205.40 | 1,834.55 | |
| 2014-03-31 | 6,632.33 | 2,881.10 | 1,804.00 | |
| 2013-12-31 | 6,354.11 | 2,678.40 | 1,788.55 | |
| 2013-09-30 | 6,324.39 | 2,607.60 | 1,807.28 | |
| 2013-06-30 | 7,550.39 | 3,697.60 | 1,805.28 | |
| 2013-03-31 | 7,556.17 | 3,748.90 | 1,759.83 | |
| 2012-12-31 | 7,689.39 | 3,884.60 | 1,719.28 | |
| 2012-09-30 | 7,496.33 | 3,834.09 | 1,647.60 | |
| 2012-06-30 | 5,880.05 | 2,497.07 | 1,575.31 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Oversea-Chinese Banking has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Oversea-Chinese Banking used its assets more efficiently than the Asia Banks industry average last year based on Return on Assets.
- Unable to establish if Oversea-Chinese Banking improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess Oversea-Chinese Banking's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Oversea-Chinese Banking has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
O39 Health
This company is a bank or financial institution.Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Balance sheet
Assets
Liabilities and shares
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Oversea-Chinese Banking Company Filings, last reported 1 month ago.
| Date (Data in SGD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 45,166.00 | 34,344.00 | 59,990.00 |
| 2018-12-31 | 43,392.00 | 37,377.00 | 64,984.00 |
| 2018-09-30 | 42,575.00 | 40,849.00 | 62,678.00 |
| 2018-06-30 | 42,216.00 | 40,314.00 | 66,923.00 |
| 2018-03-31 | 41,769.00 | 36,763.00 | 68,416.00 |
| 2017-12-31 | 41,776.42 | 38,688.72 | 69,687.82 |
| 2017-09-30 | 40,900.00 | 38,449.00 | 67,300.00 |
| 2017-06-30 | 40,715.00 | 36,764.00 | 66,076.00 |
| 2017-03-31 | 40,431.00 | 33,083.00 | 70,063.00 |
| 2016-12-31 | 39,642.03 | 27,421.54 | 58,735.21 |
| 2016-09-30 | 38,868.84 | 26,179.26 | 60,177.72 |
| 2016-06-30 | 38,347.00 | 28,834.00 | 66,051.00 |
| 2016-03-31 | 37,766.00 | 27,513.00 | 59,783.00 |
| 2015-12-31 | 37,110.81 | 29,547.57 | 57,210.78 |
| 2015-09-30 | 36,454.00 | 31,951.00 | 71,002.00 |
| 2015-06-30 | 35,660.00 | 34,524.00 | 69,446.00 |
| 2015-03-31 | 35,150.00 | 32,630.00 | 72,340.00 |
| 2014-12-31 | 34,185.44 | 35,491.43 | 65,836.61 |
| 2014-09-30 | 32,900.00 | 33,094.00 | 68,654.00 |
| 2014-06-30 | 29,915.00 | 32,743.00 | 61,456.00 |
| 2014-03-31 | 29,030.45 | 31,769.47 | 61,934.94 |
| 2013-12-31 | 28,079.48 | 32,210.56 | 58,417.08 |
| 2013-09-30 | 27,324.00 | 27,059.00 | 55,180.00 |
| 2013-06-30 | 28,352.00 | 23,819.00 | 51,198.00 |
| 2013-03-31 | 28,999.00 | 25,030.00 | 55,240.00 |
| 2012-12-31 | 28,701.00 | 16,425.00 | 45,891.75 |
| 2012-09-30 | 27,781.00 | 22,871.00 | 48,918.00 |
| 2012-06-30 | 26,478.54 | 23,569.84 | 53,547.28 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- Oversea-Chinese Banking has an acceptable proportion of non-loan assets held.
- Oversea-Chinese Banking's liabilities are made up of primarily low risk sources of funding.
- Loans at Oversea-Chinese Banking are broadly funded by customer deposits.
- Oversea-Chinese Banking's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
- Oversea-Chinese Banking has a low allowance for bad loans.
- Oversea-Chinese Banking has an acceptable level of bad loans (less than 2%).
Financial health checks
We assess Oversea-Chinese Banking's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Oversea-Chinese Banking has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
O39 Dividends
What is Oversea-Chinese Banking's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
SGD2,000 of
Oversea-Chinese Banking
shares you are expected to receive
SGD83
in your first year as a dividend.
Dividend Amount
- Oversea-Chinese Banking's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.57%).
- Oversea-Chinese Banking's dividend is below the markets top 25% of dividend payers in Singapore (5.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| Asia Banks Industry Average Dividend Yield | Market Cap Weighted Average of 50 Stocks | 4.4% |
| Singapore Market Average Dividend Yield | Market Cap Weighted Average of 276 Stocks | 4% |
| Singapore Minimum Threshold Dividend Yield | 10th Percentile | 1.7% |
| Singapore Bottom 25% Dividend Yield | 25th Percentile | 2.6% |
| Singapore Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in SGD) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.55 | 1.00 |
| 2022-12-31 | 0.57 | 2.00 |
| 2021-12-31 | 0.51 | 15.00 |
| 2020-12-31 | 0.51 | 18.00 |
| 2019-12-31 | 0.47 | 18.00 |
| Date (Data in SGD) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-21 | 0.460 | 4.035 |
| 2018-10-31 | 0.400 | 3.531 |
| 2018-08-06 | 0.400 | 3.597 |
| 2018-03-09 | 0.380 | 3.044 |
| 2018-02-13 | 0.380 | 2.909 |
| 2017-10-25 | 0.360 | 2.913 |
| 2017-07-26 | 0.360 | 3.215 |
| 2017-02-14 | 0.360 | 3.555 |
| 2016-11-24 | 0.360 | 3.893 |
| 2016-10-27 | 0.360 | 4.179 |
| 2016-07-27 | 0.360 | 4.197 |
| 2016-02-16 | 0.360 | 4.157 |
| 2015-10-27 | 0.360 | 4.268 |
| 2015-07-30 | 0.360 | 3.895 |
| 2015-02-10 | 0.360 | 3.461 |
| 2014-11-13 | 0.360 | 3.468 |
| 2014-11-11 | 0.360 | 3.548 |
| 2014-10-29 | 0.360 | 3.608 |
| 2014-08-04 | 0.360 | 3.654 |
| 2014-02-13 | 0.340 | 3.542 |
| 2013-10-31 | 0.340 | 3.418 |
| 2013-08-01 | 0.340 | 3.304 |
| 2013-02-14 | 0.340 | 3.262 |
| 2012-11-08 | 0.320 | 3.340 |
| 2012-08-31 | 0.320 | 3.451 |
| 2012-08-01 | 0.320 | 3.424 |
| 2012-03-26 | 0.300 | 3.400 |
| 2012-02-20 | 0.300 | 3.368 |
| 2011-11-03 | 0.300 | 3.648 |
| 2011-08-04 | 0.300 | 3.559 |
| 2011-05-05 | 0.300 | 3.184 |
| 2010-11-01 | 0.300 | 3.111 |
| 2010-08-27 | 0.300 | 3.362 |
| 2010-02-19 | 0.280 | 3.208 |
| 2009-12-31 | 0.280 | 3.272 |
| 2009-10-28 | 0.280 | 3.337 |
| 2009-08-03 | 0.280 | 3.618 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Oversea-Chinese Banking's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
Income/ dividend checks
We assess Oversea-Chinese Banking's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Oversea-Chinese Banking afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Oversea-Chinese Banking has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
O39 Management
CEO
| COMPENSATION | SGD10,700,000 |
| AGE | 63 |
| TENURE AS CEO | 7.1 years |
CEO Bio
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 since April 15, 2012. Mr. Tsien served as the Global Head of Global Corporate Bank, serves as Chairman and Director at OCBC Bank (China) Ltd. He served as the Global Head of Global Corporate Bank at Oversea-Chinese Banking Corporation Limited from 2008 to April 2012 and also served as its Senior Executive Vice President from July 2007 to April 2012. He served as the Global Head of Business Banking at Oversea-Chinese Banking Corporation Limited since July 11, 2007. He joined OCBC Bank in July 2007. He has more than 40 years of banking experience and served various senior management roles in corporate lending and risk management. Prior to joining OCBC Bank in July 2007, he served as the President and Chief Executive Officer at Bank of America (Asia) Ltd., from 1995 to 2006. Mr. Tsien served as the President and Chief Executive Officer at China Construction Bank (Asia) Corporation Ltd., until July 2007. He served as an Executive Vice President and the Asia Commercial and Consumer Banking Group Executive at Bank of America Corporation. He served various other senior management roles in corporate banking, retail banking and risk management at Bank of America in Hong Kong and San Francisco. He has been an Executive and Non-Independent Director of Oversea-Chinese Banking Corporation Limited since February 13, 2014. He serves as a Director of Great Eastern Holdings Ltd. since April 15, 2012. He served as a Director of OCBC Wing Hang Bank Limited since August 1, 2014. He also serves as the Member of the Board of Directors of OCBC Pearl Limited. He served as an Independent Director of Mapletree Commercial Trust Management Ltd., from March 29, 2011 to March 18, 2014. He served as a Director of Hong Kong Cyberport Management Company Ltd. Mr. Tsien was, by appointment of the Government of Hong Kong, a Member of the Insurance Advisory Committee, the Securities and Futures Appeals Tribunal, the Banking Advisory Committee. He is Board Director at Bank of Singapore Ltd. He is a Non-independent Executive Directorat OCBC Bank (Malaysia) Berhad since April 15, 2012. He is Board Director at Dr Goh Keng Swee Scholarship Fund. He is Director at Great Eastern Holdings Ltd., Mapletree Investments Pte Ltd., OCBC Overseas Investments Pte Ltd. He is Vice Chairman at Association of Banks in Singapore. He is Member of Advisory Board of the Asian Financial Leaders Programme. He is Member of Financial Sector Tripartite Committee. He is Member and Chairman of the China Workgroup at MAS Financial Centre Advisory Panel. He is Member at MAS Payments Council. He was Board Director at Asean Finance Corporation Ltd., OCBC Al-Amin Bank Berhad. He was Member of Advisory Council on Community Relations in Defense (ACCORD) (Employer & Business). He was Member of MalaysiaSingapore Business Council. He served as the Chairman of the Hong Kong Institute of Bankers. Mr. Tsien holds a BA (Hons) in Economics from the University of California, Los Angeles (UCLA).
CEO Compensation
- Samuel's compensation has been consistent with company performance over the past year, both up more than 20%.
- Samuel's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure
Average tenure and age of the Oversea-Chinese Banking management team in years:
- The average tenure for the Oversea-Chinese Banking management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Samuel Tsien
Group CEO and Executive & Non-Independent Director
SGD11M
63
7.1 yrs
Darren Tan
Executive VP & CFO
47
7.4 yrs
Wei Hong Ching
Chief Operating Officer
58
7.1 yrs
David Cheng
Head of Corporate Finance
3.5 yrs
Khiang Tong Lim
Head of Group Operations & Technology
57
9 yrs
Collins Chin
Head of Investor Relations
Loretta Ling
Head of Group Legal & Regulatory Compliance
43
8.7 yrs
Ching Ching Koh
Head of Group Brand & Communications
50
14.5 yrs
Jason Ho
Head of Group Human Resources
56
3.8 yrs
Vincent Soh
Head of Group Property Management
63
14.9 yrs
Board of Directors Tenure
Average tenure and age of the Oversea-Chinese Banking board of directors in years:
- The tenure for the Oversea-Chinese Banking board of directors is about average.
Board of Directors
Sang Ooi
Chairman of the Board
SGD2M
71
4.7 yrs
Samuel Tsien
Group CEO and Executive & Non-Independent Director
SGD11M
63
5.3 yrs
Hwee Tin Kng
CEO & Executive Director of OCBC Wing Hang Bank (China) Ltd
51
6.4 yrs
Parwati Surjaudaja
President Director & CEO of Bank OCBC NISP
SGD202K
53
10.4 yrs
Dua Lai
Independent Director
SGD312K
73
8.9 yrs
Ngiap Tan
Independent Non-Executive Director
SGD325K
72
5.7 yrs
Joo Yeow Wee
Non-Executive & Independent Director
SGD325K
70
5.3 yrs
Kim Chua
Non-Executive Independent Director
SGD280K
64
1.7 yrs
Pramukti Surjaudaja
Non-Executive & Non-Independent Director
SGD188K
56
13.9 yrs
Tih Lee
Non-Executive & Non-Independent Director
SGD221K
54
16.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (SGD) | Value (SGD) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Oversea-Chinese Banking's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Oversea-Chinese Banking has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
O39 News
Simply Wall St News
Why Oversea-Chinese Banking Corporation Limited's (SGX:O39) CEO Pay Matters To You
Samuel Tsien became the CEO of Oversea-Chinese Banking Corporation Limited (SGX:O39) in 2012. … According to our data, Oversea-Chinese Banking Corporation Limited has a market capitalization of S$50b, and pays its CEO total annual compensation worth S$11m. … We looked at a group of companies with market capitalizations over S$11b and the median CEO total compensation was S$6.0m
Simply Wall St - – Full articleShould Oversea-Chinese Banking (SGX:O39) Be Disappointed With Their 26% Profit?
For example, the Oversea-Chinese Banking Corporation Limited (SGX:O39) share price is up 26% in the last three years, clearly besting than the market return of around 9.3% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Oversea-Chinese Banking was able to grow its EPS at 3.7% per year over three years, sending the share price higher.
Simply Wall St - – Full articleWhat You Should Know About Oversea-Chinese Banking Corporation Limited’s (SGX:O39) Liquidity
Oversea-Chinese Banking Corporation Limited (SGX:O39) is a large-cap stock operating in the financial services sector with a market cap of S$48b. … As major financial institutions return to health after the Global Financial Crisis, we are seeing an increase in market confidence, and understanding of, these “too-big-to-fail” banking stocks. … After the crisis, a set of reforms called Basel III was created with the purpose of strengthening regulation, risk management and supervision in the banking sector.
Simply Wall St - – Full articleDon't Sell Oversea-Chinese Banking Corporation Limited (SGX:O39) Before You Read This
We'll show how you can use Oversea-Chinese Banking Corporation Limited's (SGX:O39) P/E ratio to inform your assessment of the investment opportunity. … Oversea-Chinese Banking has a price to earnings ratio of 9.98, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleOversea-Chinese Banking Corporation Limited (SGX:O39) Is Trading At A 11.68% Discount Right Now
Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … For instance, banks must hold a certain level of cash reserves on the books as a safety precaution.
Simply Wall St - – Full articleIs Oversea-Chinese Banking Corporation Limited (SGX:O39) Over-Exposed To Risk?
Large banks such as Oversea-Chinese Banking Corporation Limited (SGX:O39), with a market capitalisation of S$48b, have benefited from this momentum. … A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Oversea-Chinese Banking takes on. … With stricter regulations as a result of the GFC, banks are more conservative in their lending practices, leading to more prudent levels of risky assets on the balance sheet.
Simply Wall St - – Full articleWhy Oversea-Chinese Banking Corporation Limited's (SGX:O39) CEO Salary Matters To You
Samuel Tsien became the CEO of Oversea-Chinese Banking Corporation Limited (SGX:O39) in 2012. … This analysis aims first to contrast CEO compensation with other large companies. … Our data indicates that Oversea-Chinese Banking Corporation Limited is worth S$44.3b, and total annual CEO compensation is S$10m.
Simply Wall St - – Full articleWhat Makes Oversea-Chinese Banking Corporation Limited (SGX:O39) A Hard Investment?
As these large financial institutions revert back to health after the 2008 Financial Crisis, we are seeing an increase in market confidence in these “too-big-to-fail” banking stocks. … Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks to vulnerabilities.
Simply Wall St - – Full articleShould You Be Tempted To Buy Oversea-Chinese Banking Corporation Limited (SGX:O39) Because Of Its PE Ratio?
Oversea-Chinese Banking Corporation Limited (SGX:O39) trades with a trailing P/E of 10.4x, which is lower than the industry average of 12.3x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind. … I will explain what the P/E ratio is as well as what you should look out for when using it
Simply Wall St - – Full articleOversea-Chinese Banking Corporation Limited (SGX:O39): Dividend Is Coming In 2 Days, Should You Buy?
Oversea-Chinese Banking Corporation Limited (SGX:O39) will be distributing its dividend of S$0.20 per share on the 08 October 2018, and will start trading ex-dividend in 2 days time on the 15 August 2018. … Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … 5 questions I ask before picking a dividend stock?
Simply Wall St - – Full articleO39 Company Info
Description
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. As of May 7, 2018, the company operated a network of 570 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.
Details
| Name: | Oversea-Chinese Banking Corporation Limited |
| O39 | |
| Exchange: | SGX |
| Founded: | 1912 |
| SGD47,411,392,900 | |
| 4,252,142,861 | |
| Website: | http://www.ocbc.com |
| Address: |
Oversea-Chinese Banking Corporation Limited No. 10-00 OCBC Centre East, 63 Chulia Street, Singapore, 049514, Singapore |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| SGX | O39 | Ordinary Shares | Singapore Exchange | SG | SGD | 02. Jan 1992 | |
| OTCPK | OVCH.F | Ordinary Shares | Pink Sheets LLC | US | USD | 02. Jan 1992 | |
| DB | OCBA | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 02. Jan 1992 | |
| OTCPK | OVCH.Y | UNSPONSORD ADR | Pink Sheets LLC | US | USD | 13. Feb 2009 |
Number of employees
Current staff
Industry
| Diversified Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/20 12:44 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/17 |
| Last earnings filing: | 2019/05/09 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
