Executive Summary
United Overseas Bank Limited, together with its subsidiaries, provides banking products and services.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has United Overseas Bank's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: U11's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.2%
U11
2.2%
SG Banks
0.8%
SG Market
1 Year Return
-17.0%
U11
-17.2%
SG Banks
-20.1%
SG Market
Return vs Industry: U11 matched the SG Banks industry which returned -17.2% over the past year.
Return vs Market: U11 exceeded the SG Market which returned -20.1% over the past year.
Shareholder returns
| U11 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 2.2% | 0.8% |
| 30 Day | -4.1% | -1.3% | -1.3% |
| 90 Day | -20.3% | -12.1% | -15.9% |
| 1 Year | -15.2%-17.0% | -14.0%-17.2% | -16.9%-20.1% |
| 3 Year | -7.5%-16.5% | -5.6%-15.7% | -16.5%-25.6% |
| 5 Year | 2.7%-14.4% | -6.4%-23.3% | -12.5%-27.4% |
Price Volatility Vs. Market
How volatile is United Overseas Bank's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Those Who Purchased United Overseas Bank (SGX:U11) Shares A Year Ago Have A 18% Loss To Show For It3 weeks ago | Simply Wall St
What Type Of Shareholder Owns United Overseas Bank Limited's (SGX:U11)?1 month ago | Simply Wall St
Need To Know: United Overseas Bank Limited (SGX:U11) Insiders Have Been Buying SharesValuation
Is United Overseas Bank undervalued compared to its fair value and its price relative to the market?
6.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: U11 (SGD19.5) is trading below our estimate of fair value (SGD20.82)
Significantly Below Fair Value: U11 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: U11 is good value based on its PE Ratio (8x) compared to the Banks industry average (8.2x).
PE vs Market: U11 is good value based on its PE Ratio (8x) compared to the SG market (11.4x).
Price to Earnings Growth Ratio
PEG Ratio: U11 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: U11 is overvalued based on its PB Ratio (0.9x) compared to the XA Banks industry average (0.6x).
Next Steps
Future Growth
How is United Overseas Bank forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: U11's forecast earnings growth (11.6% per year) is above the savings rate (2.2%).
Earnings vs Market: U11's earnings (11.6% per year) are forecast to grow faster than the SG market (7.3% per year).
High Growth Earnings: U11's earnings are forecast to grow, but not significantly.
Revenue vs Market: U11's revenue (5.3% per year) is forecast to grow faster than the SG market (3.8% per year).
High Growth Revenue: U11's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: U11's Return on Equity is forecast to be low in 3 years time (8.7%).
Next Steps
Past Performance
How has United Overseas Bank performed over the past 5 years?
7.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: U11 has high quality earnings.
Growing Profit Margin: U11's current net profit margins (43.1%) are lower than last year (44.7%).
Past Earnings Growth Analysis
Earnings Trend: U11's earnings have grown by 7.5% per year over the past 5 years.
Accelerating Growth: U11's earnings growth over the past year (2%) is below its 5-year average (7.5% per year).
Earnings vs Industry: U11 earnings growth over the past year (2%) underperformed the Banks industry 3.9%.
Return on Equity
High ROE: U11's Return on Equity (10.4%) is considered low.
Next Steps
Financial Health
How is United Overseas Bank's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: U11's Assets to Equity ratio (10.1x) is moderate.
Allowance for Bad Loans: U11 has a low allowance for bad loans (78%).
Low Risk Liabilities: 89% of U11's liabilities are made up of primarily low risk sources of funding.
Loan Level: U11 has an appropriate level of Loans to Assets ratio (66%).
Low Risk Deposits: U11's Loans to Deposits ratio (81%) is appropriate.
Level of Bad Loans: U11 has an appropriate level of bad loans (1.5%).
Next Steps
Dividend
What is United Overseas Bank's current dividend yield, its reliability and sustainability?
6.67%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: U11's dividend (6.67%) is higher than the bottom 25% of dividend payers in the SG market (2.74%).
High Dividend: U11's dividend (6.67%) is in the top 25% of dividend payers in the SG market (6.55%)
Stability and Growth of Payments
Stable Dividend: U11's dividend payments have been volatile in the past 10 years.
Growing Dividend: U11's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45.3%), U11's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: U11's dividends in 3 years are forecast to be covered by earnings (53.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.4yrs
Average management tenure
CEO
Ee Cheong Wee (66yo)
13.08yrs
Tenure
S$10,563,000
Compensation
Mr. Ee Cheong Wee, B.Sc.(Bus Admin), M.A.(Applied Econs), has been the Chief Executive Officer of United Overseas Bank Limited since April 27, 2007. Mr. Wee has been the Chief Executive Officer of Far East ...
CEO Compensation Analysis
Compensation vs Market: Ee Cheong's total compensation ($USD7.47M) is about average for companies of similar size in the SG market ($USD6.32M).
Compensation vs Earnings: Ee Cheong's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Deputy Chairman & CEO | 13.08yrs | S$10.56m | 2.59% SGD843.8m | |
| MD & Group CFO | 14.92yrs | no data | no data | |
| Head of Group Technology & Operations | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Head of Group Compliance | 3.08yrs | no data | no data | |
| Head of Group Legal & Company Secretary | no data | no data | no data | |
| Head of Group Human Resources | no data | no data | no data | |
| Head of Group Retail | no data | no data | no data | |
| MD & Group Chief Risk Officer | 7.67yrs | no data | no data | |
| Head of Group Strategy & International Management | no data | no data | no data |
10.4yrs
Average Tenure
58yo
Average Age
Experienced Management: U11's management team is seasoned and experienced (10.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Deputy Chairman & CEO | 13.08yrs | S$10.56m | 2.59% SGD843.8m | |
| President Director of PT Bank UOB Indonesia | 4.33yrs | no data | no data | |
| Chairman Emeritus & Honorary Adviser | 7.08yrs | S$617.00k | 8.52% SGD2.8b | |
| Non-Executive & Independent Director | 2.83yrs | S$175.00k | 0.00018% SGD58.6k | |
| Non-Executive & Non-Independent Director | 2.83yrs | S$175.00k | no data | |
| Non-Executive Independent Director | 7.67yrs | S$220.00k | 0.00023% SGD74.9k | |
| Non-Executive & Independent Director | 2.83yrs | S$200.00k | 0.00037% SGD120.5k | |
| Non-Executive & Independent Director | 7.33yrs | S$402.00k | no data | |
| Non-Executive & Independent Director | 5.83yrs | S$220.00k | no data | |
| Independent Chairman of the Board | 2.17yrs | S$960.00k | no data |
5.1yrs
Average Tenure
61.5yo
Average Age
Experienced Board: U11's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
United Overseas Bank Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: United Overseas Bank Limited
- Ticker: U11
- Exchange: SGX
- Founded: 1935
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: S$32.554b
- Shares outstanding: 1.67b
- Website: https://www.uobgroup.com
Number of Employees
Location
- United Overseas Bank Limited
- UOB Plaza
- 80 Raffles Place
- Singapore
- 48624
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| UOVE.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Apr 1991 | |
| UOVE.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| U11 | SGX (Singapore Exchange) | Yes | Ordinary Shares | SG | SGD | Jan 1992 |
| UOB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
United Overseas Bank Limited, together with its subsidiaries, provides banking products and services. The company’s Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment provides financing, trade services, cash management, capital markets solutions, and advisory and treasury products for medium and large enterprises, local corporations, multi-national corporations, financial institutions, government-linked entities, and financial sponsors. The company’s Global Markets segment offers foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funding and liquidity. Its Other segment provides investment management, property, and insurance services. The company also provides mobile and internet banking services. It operates through a network of approximately 500 branches, including wealth and privilege banking centres, private bank suites, business and commercial banking centres, and offices in 19 countries and territories in the Asia Pacific, Europe, and North America; and 1.3 million automated teller machines. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was founded in 1935 and is headquartered in Singapore.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 12:34 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.