SGX:O39

Stock Analysis Report

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.9%

O39

2.7%

SG Banks

0.9%

SG Market


1 Year Return

1.4%

O39

5.1%

SG Banks

0.7%

SG Market

Return vs Industry: O39 underperformed the SG Banks industry which returned 5.1% over the past year.

Return vs Market: O39 matched the SG Market which returned 0.7% over the past year.


Shareholder returns

O39IndustryMarket
7 Day1.9%2.7%0.9%
30 Day-1.6%1.8%-1.7%
90 Day-6.8%-3.6%-7.1%
1 Year5.7%1.4%9.2%5.1%4.7%0.7%
3 Year41.4%27.0%30.5%16.4%14.9%2.6%
5 Year32.9%10.7%40.8%15.2%10.0%-8.2%

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?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: O39 (SGD10.85) is trading below our estimate of fair value (SGD12.66)

Significantly Undervalued: O39 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: O39 is poor value based on its PE Ratio (10x) compared to the Banks industry average (9.8x).

PE vs Market: O39 is good value based on its PE Ratio (10x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: O39 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: O39 is overvalued based on its PB Ratio (1x) compared to the XA Banks industry average (0.8x).


Next Steps

Future Growth

How is Oversea-Chinese Banking forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: O39's forecast earnings growth (4.4% per year) is above the savings rate (2.3%).

Earnings vs Market: O39's earnings (4.4% per year) are forecast to grow slower than the SG market (5.5% per year).

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

Revenue vs Market: O39's revenue (4.4% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: O39's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: O39's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: O39's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: O39's earnings growth over the past year (4.7%) is below its 5-year average (5.1% per year).

Earnings vs Industry: O39 earnings growth over the past year (4.7%) underperformed the Banks industry 7.3%.


Return on Equity

High ROE: O39's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: O39 has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate O39's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: O39 has a low level of unsold assets or inventory.

Debt Coverage by Assets: O39's debt is covered by short term assets (assets are 1.761130x debt).


Financial Institutions Analysis

Asset Level: O39's level of assets compared to its equity is moderate.

Allowance for Bad Loans: O39 has a low allowance for bad loans.

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

Loan Level: O39 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: O39's loans are broadly funded by customer deposits.

Level of Bad Loans: O39 has an appropriate level of bad loans (1.47%)


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.5%markettop25%5.7%industryaverage4.1%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: O39's dividend (4.61%) is higher than the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: O39's dividend (4.61%) is low compared to the top 25% of dividend payers in the SG market (5.65%).

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 (44.3%), 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 (45.6% payout ratio).


Next Steps

Management

What is the CEO of Oversea-Chinese Banking's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Samuel Tsien (64yo)

7.5yrs

Tenure

S$10,700,000

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 ($USD7.80M) is about average for companies of similar size in the SG market ($USD3.36M).

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


Management Age and Tenure

7.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: O39's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

64.5yo

Average Age

Experienced Board: O39's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellS$225,779,47114 Aug 19
Kota Trading Company Sdn Bhd
EntityCompany
Shares20,340,492
Max PriceS$11.10
BuyS$225,779,47114 Aug 19
Selat (Pte) Limited
EntityCompany
Shares20,340,492
Max PriceS$11.10
BuyS$15,13924 Jun 19
Joo Yeow Wee
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Independent Director
Shares1,435
Max PriceS$10.55
BuyS$16,02524 Jun 19
Pramukti Surjaudaja
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Non-Independent Director
Shares1,519
Max PriceS$10.55
BuyS$10,74024 Jun 19
Wee Ghee Quah
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,018
Max PriceS$10.55
BuyS$2,471,68624 Jun 19
Tih Lee
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Non-Independent Director
Shares234,283
Max PriceS$10.55
BuyS$218,78624 Jun 19
Teck Poh Lai
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,738
Max PriceS$10.55
BuyS$4,03024 Jun 19
Kwee Fong Hon
EntityIndividual
Shares382
Max PriceS$10.55
BuyS$1,78324 Jun 19
Kim Chiu Chua
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares169
Max PriceS$10.55
BuyS$385,06424 Jun 19
Nag Tsien
EntityIndividual
Role
Chief Executive Officer
Group CEO and Executive & Non-Independent Director
Shares36,499
Max PriceS$10.55
BuyS$10,38124 Jun 19
Sang Ooi
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares984
Max PriceS$10.55

Ownership Breakdown


Management Team

  • Samuel Tsien (64yo)

    Group CEO and Executive & Non-Independent Director

    • Tenure: 7.5yrs
    • Compensation: S$10.70m
  • Wei Hong Ching (59yo)

    Chief Operating Officer

    • Tenure: 7.5yrs
  • Ching Ching Koh (51yo)

    Head of Group Brand & Communications

    • Tenure: 14.9yrs
  • Vincent Soh (64yo)

    Head of Group Property Management

    • Tenure: 15.3yrs
  • Khiang Tong Lim (58yo)

    Head of Group Operations & Technology

    • Tenure: 9.4yrs
  • Loretta Ling (44yo)

    Head of Group Legal & Regulatory Compliance

    • Tenure: 9.1yrs
  • Darren Tan (48yo)

    Executive VP & CFO

    • Tenure: 7.8yrs
  • Collins Chin

    Head of Investor Relations

    • Tenure: 0yrs
  • Jason Ho (57yo)

    Head of Group Human Resources

    • Tenure: 4.3yrs
  • David Cheng

    Head of Corporate Finance

    • Tenure: 3.9yrs

Board Members

  • Joo Yeow Wee (71yo)

    Non-Executive & Independent Director

    • Tenure: 5.8yrs
    • Compensation: S$325.00k
  • Samuel Tsien (64yo)

    Group CEO and Executive & Non-Independent Director

    • Tenure: 7.5yrs
    • Compensation: S$10.70m
  • Tih Lee (55yo)

    Non-Executive & Non-Independent Director

    • Tenure: 16.5yrs
    • Compensation: S$221.00k
  • Dua Lai (74yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: S$312.00k
  • Ngiap Tan (73yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: S$325.00k
  • Sang Ooi (72yo)

    Independent Chairman of the Board

    • Tenure: 5.1yrs
    • Compensation: S$1.66m
  • Pramukti Surjaudaja (57yo)

    Non-Executive & Non-Independent Director

    • Tenure: 14.3yrs
    • Compensation: S$188.00k
  • Parwati Surjaudaja (54yo)

    President Director & CEO of Bank OCBC NISP

    • Tenure: 10.8yrs
    • Compensation: S$202.00k
  • Wee Ghee Quah (58yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: S$215.00k
  • Kim Chiu Chua (65yo)

    Non-Executive Independent Director

    • Tenure: 2.1yrs
    • Compensation: S$280.00k

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$47.829b
  • Shares outstanding: 4.40b
  • 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 Analysis2019/10/17 12:41
End of Day Share Price2019/10/17 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.