Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally.
6 star dividend payer with excellent balance sheet.
Share Price & News
How has Oversea-Chinese Banking's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: O39's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: O39 underperformed the SG Banks industry which returned -17.7% over the past year.
Return vs Market: O39 exceeded the SG Market which returned -21% over the past year.
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
1 week ago | Simply Wall StImagine Owning Oversea-Chinese Banking (SGX:O39) And Wondering If The 19% Share Price Slide Is Justified
3 weeks ago | Simply Wall StIs Oversea-Chinese Banking Corporation Limited's (SGX:O39) CEO Overpaid Relative To Its Peers?
1 month ago | Simply Wall StDid Oversea-Chinese Banking Corporation Limited (SGX:O39) Insiders Buy Up More Shares?
Is Oversea-Chinese Banking undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: O39 (SGD8.55) is trading below our estimate of fair value (SGD9.33)
Significantly Below Fair Value: O39 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: O39 is good value based on its PE Ratio (7.7x) compared to the Banks industry average (8.2x).
PE vs Market: O39 is good value based on its PE Ratio (7.7x) compared to the SG market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: O39's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: O39 is overvalued based on its PB Ratio (0.8x) compared to the XA Banks industry average (0.6x).
How is Oversea-Chinese Banking forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: O39's earnings are forecast to decline over the next 3 years (-0.2% per year).
Earnings vs Market: O39's earnings are forecast to decline over the next 3 years (-0.2% per year).
High Growth Earnings: O39's earnings are forecast to decline over the next 3 years.
Revenue vs Market: O39's revenue (3.9% per year) is forecast to grow faster than the SG market (3.9% per year).
High Growth Revenue: O39's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: O39's Return on Equity is forecast to be low in 3 years time (9.8%).
How has Oversea-Chinese Banking performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: O39 has a high level of non-cash earnings.
Growing Profit Margin: O39's current net profit margins (48.2%) are higher than last year (47.5%).
Past Earnings Growth Analysis
Earnings Trend: O39's earnings have grown by 5.5% per year over the past 5 years.
Accelerating Growth: O39's earnings growth over the past year (7.5%) exceeds its 5-year average (5.5% per year).
Earnings vs Industry: O39 earnings growth over the past year (7.5%) exceeded the Banks industry 4.6%.
Return on Equity
High ROE: O39's Return on Equity (10.3%) is considered low.
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
Financial Institutions Analysis
Asset Level: O39's Assets to Equity ratio (10.1x) is moderate.
Allowance for Bad Loans: O39 has a low allowance for bad loans (63%).
Low Risk Liabilities: 70% of O39's liabilities are made up of primarily low risk sources of funding.
Loan Level: O39 has an appropriate level of Loans to Assets ratio (53%).
Low Risk Deposits: O39's Loans to Deposits ratio (84%) is appropriate.
Level of Bad Loans: O39 has an appropriate level of bad loans (1.4%).
What is Oversea-Chinese Banking's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: O39's dividend (6.55%) is higher than the bottom 25% of dividend payers in the SG market (2.78%).
High Dividend: O39's dividend (6.55%) is in the top 25% of dividend payers in the SG market (6.52%)
Stability and Growth of Payments
Stable Dividend: O39's dividends per share have been stable in the past 10 years.
Growing Dividend: O39's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.5%), O39's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: O39's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Samuel Tsien (64yo)
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 ($USD7.82M) is about average for companies of similar size in the SG market ($USD6.32M).
Compensation vs Earnings: Samuel's compensation has been consistent with company performance over the past year.
|Group CEO and Executive & Non-Independent Director||8.08yrs||S$11.08m||0.045% SGD17.0m|
|Executive VP & CFO||8.42yrs||no data||no data|
|Head of Global Treasury & Investment Banking and Senior EVP||no data||no data||no data|
|Head of Corporate Finance||4.5yrs||no data||no data|
|Head of Group Operations & Technology||10yrs||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|Head of Group Legal & Regulatory Compliance||9.67yrs||no data||no data|
|Head of Group Brand & Communications||15.5yrs||no data||no data|
|Head of Group Human Resources||4.83yrs||no data||no data|
|Deputy President of Global Wealth Management & Consumer Banking||0.33yr||no data||0.0086% SGD3.2m|
Experienced Management: O39's management team is seasoned and experienced (8.3 years average tenure).
|Group CEO and Executive & Non-Independent Director||8.08yrs||S$11.08m||0.045% SGD17.0m|
|President Director & CEO of Bank OCBC NISP||11.42yrs||S$202.00k||no data|
|Non-Executive & Independent Director||6.33yrs||S$302.40k||0.0018% SGD681.7k|
|Non-Executive Non-Independent Director||0.58yr||S$48.11k||0.000030% SGD11.3k|
|Non-Executive & Non-Independent Director||17.08yrs||S$223.19k||0.26% SGD96.4m|
|Independent Non-Executive Director||6.67yrs||S$302.40k||0.031% SGD11.7m|
|Independent Chairman of the Board||5.67yrs||S$1.70m||0.0012% SGD455.7k|
|Non-Executive & Non-Independent Director||14.92yrs||S$168.16k||0.0018% SGD674.2k|
|Independent Director||8.33yrs||S$187.31k||0.0013% SGD470.8k|
|Non-Executive Independent Director||2.67yrs||S$257.40k||0.00032% SGD120.5k|
Experienced Board: O39's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.
Oversea-Chinese Banking Corporation Limited's company bio, employee growth, exchange listings and data sources
- Name: Oversea-Chinese Banking Corporation Limited
- Ticker: O39
- Exchange: SGX
- Founded: 1912
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: S$37.663b
- Shares outstanding: 4.41b
- Website: https://www.ocbc.com
Number of Employees
- Oversea-Chinese Banking Corporation Limited
- No. 10-00 OCBC Centre East
- 63 Chulia Street
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OVCH.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jan 1992|
|O39||SGX (Singapore Exchange)||Yes||Ordinary Shares||SG||SGD||Jan 1992|
|OCBA||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jan 1992|
|OVCH.Y||OTCPK (Pink Sheets LLC)||UNSPONSORD ADR||US||USD||Feb 2009|
Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high net worth individuals. Its Global Corporate/Investment Banking segment provides project financing, overdrafts, trade financing, and deposit accounts; fee-based services, such as cash management and custodian services; investment banking services, including financing solutions, syndicated loans and advisory services, corporate finance services for initial public offerings, secondary fund-raising, and takeovers and mergers; and customized and structured equity-linked financing services. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Treasury and Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as provision of structured treasury products and financial solutions. Its OCBC Wing Hang segment offers commercial banking, consumer financing, share brokerage, and insurance services. The company’s Insurance segment provides fund management services, and life and general insurance products. Its Others segment is involved in property and investment holding activities. The company has approximately 540 branches and representative offices in 19 countries and regions. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/30 10:21|
|End of Day Share Price||2020/05/29 00:00|