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Oversea-Chinese Banking

SGX:O39
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
O39
SGX
SGD46B
Market Cap
  1. Home
  2. SG
  3. Banks
Company description

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 37 days ago. More info.


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O39 Share Price and Events
7 Day Returns
1.3%
SGX:O39
0.3%
Asia Banks
1.4%
SG Market
1 Year Returns
-11.1%
SGX:O39
-10.5%
Asia Banks
-4%
SG Market
O39 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Oversea-Chinese Banking (O39) 1.3% -3.9% -3.1% -11.1% 28.9% 12.3%
Asia Banks 0.3% 0.1% -5.7% -10.5% 26.8% 10%
SG Market 1.4% 0.6% 0.5% -4% 11.3% -6.3%
1 Year Return vs Industry and Market
  • O39 underperformed the Market in Singapore which returned -4% over the past year.
Price Volatility
O39
Industry
5yr Volatility vs Market

O39 Value

 Is Oversea-Chinese Banking undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Oversea-Chinese Banking.

SGX:O39 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 19 analysts.
= Stable Book Value * Return on Equity
= SGD10.93 * 11.3%
SGD1.23
Book Value of Equity per Share Weighted future Book Value estimates from 16 analysts. SGD10.93
Discount Rate (Cost of Equity) See below 8.1%
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.

Calculation of Discount Rate/ Cost of Equity for SGX:O39
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))
= 0.593 (1 + (1- 17%) (74.97%))
0.974
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.974 * 5.96%)
8.11%

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.

SGX:O39 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.3% – 8.11%) * SGD10.93)
SGD0.34
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= SGD0.34 / (8.11% - 2.3%)
SGD5.93
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= SGD10.93 + SGD5.93
SGD16.86
SGX:O39 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD16.86
Current discount Discount to share price of SGD10.78
= -1 x (SGD10.78 - SGD16.86) / SGD16.86
36.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Oversea-Chinese Banking is available for.
Intrinsic value
36%
Share price is SGD10.78 vs Future cash flow value of SGD16.86
Current Discount Checks
For Oversea-Chinese Banking to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
SGX:O39 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SGD SGD1.08
SGX:O39 Share Price ** SGX (2019-06-14) in SGD SGD10.78
Asia Banks Industry PE Ratio Median Figure of 57 Publicly-Listed Banks Companies 9.93x
Singapore Market PE Ratio Median Figure of 323 Publicly-Listed Companies 12.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Oversea-Chinese Banking.

SGX:O39 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:O39 Share Price ÷ EPS (both in SGD)

= 10.78 ÷ 1.08

9.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oversea-Chinese Banking is overvalued 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?
Raw Data
SGX:O39 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
6.5%per year
Asia Banks Industry PEG Ratio Median Figure of 40 Publicly-Listed Banks Companies 0.99x
Singapore Market PEG Ratio Median Figure of 119 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

SGX:O39 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.94x ÷ 6.5%

1.54x

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?
Raw Data
SGX:O39 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SGD SGD10.32
SGX:O39 Share Price * SGX (2019-06-14) in SGD SGD10.78
Asia Banks Industry PB Ratio Median Figure of 74 Publicly-Listed Banks Companies 0.69x
Singapore Market PB Ratio Median Figure of 431 Publicly-Listed Companies 0.7x
SGX:O39 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:O39 Share Price ÷ Book Value per Share (both in SGD)

= 10.78 ÷ 10.32

1.04x

* 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.
X
Value checks
We assess Oversea-Chinese Banking's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Oversea-Chinese Banking has a total score of 2/6, 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

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

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!
Annual Growth Rate
6.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Oversea-Chinese Banking expected to grow at an attractive rate?
  • 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
Raw Data
SGX:O39 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:O39 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 6.5%
SGX:O39 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.9%
Asia Banks Industry Earnings Growth Rate Market Cap Weighted Average 11.6%
Asia Banks Industry Revenue Growth Rate Market Cap Weighted Average 10.6%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.6%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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
Raw Data
SGX:O39 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:O39 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 12,644 1
2021-12-31 11,725 5,412 14
2020-12-31 11,091 5,145 18
2019-12-31 10,496 4,767 17
SGX:O39 Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Oversea-Chinese Banking's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
  • Oversea-Chinese Banking's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:O39 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:O39 Future Estimates Data
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 1.35 1.39 1.30 2.00
2021-12-31 1.25 1.46 1.17 12.00
2020-12-31 1.20 1.32 1.12 16.00
2019-12-31 1.12 1.18 1.08 15.00
SGX:O39 Past Financials Data
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%).
X
Future performance checks
We assess Oversea-Chinese Banking's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Oversea-Chinese Banking's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 6.3%).
Earnings and Revenue History
Oversea-Chinese Banking's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Oversea-Chinese Banking Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:O39 Past Revenue, Cash Flow and Net Income Data
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.
X
Past performance checks
We assess Oversea-Chinese Banking's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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

 How is Oversea-Chinese Banking's financial position? (This company is analysed differently as a bank or financial institution)

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.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Oversea-Chinese Banking's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
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.
Raw Data

All data from Oversea-Chinese Banking Company Filings, last reported 2 months ago.

SGX:O39 Past Debt and Equity Data
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.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 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%).
X
Financial health checks
We assess Oversea-Chinese Banking's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Oversea-Chinese Banking has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
4.27%
Current annual income from Oversea-Chinese Banking dividends. Estimated to be 4.61% next year.
If you bought SGD2,000 of Oversea-Chinese Banking shares you are expected to receive SGD85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Oversea-Chinese Banking's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.61%).
  • Oversea-Chinese Banking's dividend is below the markets top 25% of dividend payers in Singapore (5.63%).
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.
Raw Data
SGX:O39 Annualized Past and Future Dividends
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 49 Stocks 4.5%
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 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:O39 Future Dividends Estimate Data
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 0.50 18.00
2019-12-31 0.47 17.00
SGX:O39 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.460 4.086
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Oversea-Chinese Banking's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Samuel Tsien
COMPENSATION SGD10,700,000
AGE 63
TENURE AS CEO 7.2 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:

7.5
Average Tenure
56.5
Average Age
  • 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

TITLE
Group CEO and Executive & Non-Independent Director
COMPENSATION
SGD11M
AGE
63
TENURE
7.2 yrs

Darren Tan

TITLE
Executive VP & CFO
AGE
47
TENURE
7.5 yrs

Wei Hong Ching

TITLE
Chief Operating Officer
AGE
58
TENURE
7.2 yrs

David Cheng

TITLE
Head of Corporate Finance
TENURE
3.6 yrs

Khiang Tong Lim

TITLE
Head of Group Operations & Technology
AGE
57
TENURE
9.1 yrs

Collins Chin

TITLE
Head of Investor Relations

Loretta Ling

TITLE
Head of Group Legal & Regulatory Compliance
AGE
43
TENURE
8.8 yrs

Ching Ching Koh

TITLE
Head of Group Brand & Communications
AGE
50
TENURE
14.6 yrs

Jason Ho

TITLE
Head of Group Human Resources
AGE
56
TENURE
3.9 yrs

Vincent Soh

TITLE
Head of Group Property Management
AGE
63
TENURE
15 yrs
Board of Directors Tenure

Average tenure and age of the Oversea-Chinese Banking board of directors in years:

6.1
Average Tenure
63.5
Average Age
  • The tenure for the Oversea-Chinese Banking board of directors is about average.
Board of Directors

Sang Ooi

TITLE
Chairman of the Board
COMPENSATION
SGD2M
AGE
71
TENURE
4.8 yrs

Samuel Tsien

TITLE
Group CEO and Executive & Non-Independent Director
COMPENSATION
SGD11M
AGE
63
TENURE
5.3 yrs

Hwee Tin Kng

TITLE
CEO & Executive Director of OCBC Wing Hang Bank (China) Ltd
AGE
51
TENURE
6.5 yrs

Parwati Surjaudaja

TITLE
President Director & CEO of Bank OCBC NISP
COMPENSATION
SGD202K
AGE
53
TENURE
10.5 yrs

Dua Lai

TITLE
Independent Director
COMPENSATION
SGD312K
AGE
73
TENURE
9 yrs

Ngiap Tan

TITLE
Independent Non-Executive Director
COMPENSATION
SGD325K
AGE
72
TENURE
5.8 yrs

Joo Yeow Wee

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD325K
AGE
70
TENURE
5.4 yrs

Kim Chiu Chua

TITLE
Non-Executive Independent Director
COMPENSATION
SGD280K
AGE
64
TENURE
1.8 yrs

Pramukti Surjaudaja

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD188K
AGE
56
TENURE
14 yrs

Tih Lee

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD221K
AGE
54
TENURE
16.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
X
Management checks
We assess Oversea-Chinese Banking's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

What Kind Of Shareholders Own Oversea-Chinese Banking Corporation Limited (SGX:O39)?

See our latest analysis for Oversea-Chinese Banking SGX:O39 Ownership Summary, June 14th 2019 What Does The Institutional Ownership Tell Us About Oversea-Chinese Banking? … We can see that Oversea-Chinese Banking does have institutional investors; and they hold 21% of the stock. … Insider Ownership Of Oversea-Chinese Banking While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Does Oversea-Chinese Banking Corporation Limited (SGX:O39) Have A Place In Your Dividend Portfolio?

In this case, Oversea-Chinese Banking likely looks attractive to investors, given its 4.1% dividend yield and a payment history of over ten years. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Earnings have grown at around 7.4% a year for the past five years, which is better than seeing them shrink! It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course. We'd also point out that Oversea-Chinese Banking issued a meaningful number of new shares in the past year. Regularly issuing new shares can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

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 -

Should 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 -

What 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 -

Don'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 -

Oversea-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 -

Is 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 -

Why 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 -

What 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 -

O39 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
SGD45,810,904,009
4,249,620,038
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
Staff numbers
29,958
Oversea-Chinese Banking employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 12:50
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
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.