Loading...

United Overseas Bank

SGX:U11
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
U11
SGX
SGD44B
Market Cap
  1. Home
  2. SG
  3. Banks
Company description

United Overseas Bank Limited provides financial products and services. The last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
U11 Share Price and Events
7 Day Returns
5.3%
SGX:U11
2.3%
Asia Banks
2.2%
SG Market
1 Year Returns
0%
SGX:U11
-5.5%
Asia Banks
0.1%
SG Market
U11 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Overseas Bank (U11) 5.3% 6.8% 5.5% 0% 47.5% 16.5%
Asia Banks 2.3% 1.7% -3.7% -5.5% 28.3% 13.4%
SG Market 2.2% 4.5% 2.3% 0.1% 14.7% -4.6%
1 Year Return vs Industry and Market
  • U11 outperformed the Banks industry which returned -5.5% over the past year.
Price Volatility
U11
Industry
5yr Volatility vs Market

U11 Value

 Is United Overseas Bank 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 United Overseas Bank 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 United Overseas Bank.

SGX:U11 Discounted Cash Flow Data Sources
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
= SGD24.31 * 11.2%
SGD2.73
Book Value of Equity per Share Weighted future Book Value estimates from 17 analysts. SGD24.31
Discount Rate (Cost of Equity) See below 7.9%
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:U11
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))
= 0.592 (1 + (1- 17%) (62.67%))
0.932
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.3% + (0.932 * 5.96%)
7.86%

Discounted Cash Flow Calculation for SGX:U11 using Excess Returns Model Model

The calculations below outline how an intrinsic value for United Overseas Bank 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:U11 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (11.2% – 7.86%) * SGD24.31)
SGD0.82
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= SGD0.82 / (7.86% - 2.3%)
SGD14.71
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= SGD24.31 + SGD14.71
SGD39.02
SGX:U11 Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD39.02
Current discount Discount to share price of SGD26.32
= -1 x (SGD26.32 - SGD39.02) / SGD39.02
32.5%

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

Current Discount
Amount off the current price United Overseas Bank is available for.
Intrinsic value
33%
Share price is SGD26.32 vs Future cash flow value of SGD39.02
Current Discount Checks
For United Overseas Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • United Overseas Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • United Overseas Bank'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 United Overseas Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Overseas Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:U11 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in SGD SGD2.38
SGX:U11 Share Price ** SGX (2019-06-21) in SGD SGD26.32
Asia Banks Industry PE Ratio Median Figure of 57 Publicly-Listed Banks Companies 10.11x
Singapore Market PE Ratio Median Figure of 324 Publicly-Listed Companies 12.6x

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

** Primary Listing of United Overseas Bank.

SGX:U11 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:U11 Share Price ÷ EPS (both in SGD)

= 26.32 ÷ 2.38

11.04x

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

  • United Overseas Bank is overvalued based on earnings compared to the Asia Banks industry average.
  • United Overseas Bank is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does United Overseas Bank's expected growth come at a high price?
Raw Data
SGX:U11 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
6.5%per year
Asia Banks Industry PEG Ratio Median Figure of 40 Publicly-Listed Banks Companies 0.98x
Singapore Market PEG Ratio Median Figure of 118 Publicly-Listed Companies 1.67x

*Line of best fit is calculated by linear regression .

SGX:U11 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.04x ÷ 6.5%

1.69x

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

  • United Overseas Bank is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on United Overseas Bank's assets?
Raw Data
SGX:U11 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in SGD SGD23.41
SGX:U11 Share Price * SGX (2019-06-21) in SGD SGD26.32
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 0.71x
SGX:U11 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:U11 Share Price ÷ Book Value per Share (both in SGD)

= 26.32 ÷ 23.41

1.12x

* Primary Listing of United Overseas Bank.

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

  • United Overseas Bank is overvalued based on assets compared to the Asia Banks industry average.
X
Value checks
We assess United Overseas Bank'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. United Overseas Bank 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.

U11 Future Performance

 How is United Overseas Bank expected to perform in the next 1 to 3 years based on estimates from 18 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 United Overseas Bank expected to grow at an attractive rate?
  • United Overseas Bank's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • United Overseas Bank's earnings growth is expected to exceed the Singapore market average.
  • United Overseas Bank's revenue growth is expected to exceed the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:U11 Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:U11 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 6.5%
SGX:U11 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 6.6%
Asia Banks Industry Earnings Growth Rate Market Cap Weighted Average 11.4%
Asia Banks Industry Revenue Growth Rate Market Cap Weighted Average 10.2%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 5.6%
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
Raw Data
SGX:U11 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:U11 Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 11,160 4,793 14
2020-12-31 10,486 4,450 16
2019-12-31 9,869 4,216 16
SGX:U11 Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-03-31 8,889 -32,087 3,971
2018-12-31 8,724 -27,333 3,897
2018-09-30 8,728 -30,362 3,845
2018-06-30 8,441 -31,267 3,691
2018-03-31 8,118 -13,734 3,459
2017-12-31 7,835 -14,278 3,288
2017-09-30 7,642 -18,121 3,182
2017-06-30 7,554 -19,668 3,090
2017-03-31 7,481 -21,077 3,045
2016-12-31 7,467 -27,972 3,004
2016-09-30 7,460 -21,799 3,040
2016-06-30 7,531 -18,415 3,107

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Overseas Bank's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
  • United Overseas Bank's revenue is expected to grow by 6.6% 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:U11 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 18 Analyst Estimates (S&P Global) See Below

All data from United Overseas Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:U11 Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.86 3.08 2.70 12.00
2020-12-31 2.64 2.79 2.31 17.00
2019-12-31 2.50 2.58 2.31 17.00
SGX:U11 Past Financials Data
Date (Data in SGD Millions) EPS *
2019-03-31 2.38
2018-12-31 2.34
2018-09-30 2.31
2018-06-30 2.21
2018-03-31 2.08
2017-12-31 1.99
2017-09-30 1.91
2017-06-30 1.86
2017-03-31 1.86
2016-12-31 1.86
2016-09-30 1.86
2016-06-30 1.93

*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.
  • United Overseas Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess United Overseas Bank'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.
United Overseas Bank 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.

U11 Past Performance

  How has United Overseas Bank 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 United Overseas Bank'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.
  • United Overseas Bank's year on year earnings growth rate has been positive over the past 5 years.
  • United Overseas Bank's 1-year earnings growth exceeds its 5-year average (14.8% vs 4.8%)
  • United Overseas Bank's earnings growth has exceeded the Asia Banks industry average in the past year (14.8% vs 6.3%).
Earnings and Revenue History
United Overseas Bank'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 United Overseas Bank Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:U11 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 8,888.65 3,970.94 2,818.52
2018-12-31 8,723.65 3,896.94 2,768.52
2018-09-30 8,728.21 3,844.97 2,783.33
2018-06-30 8,441.21 3,690.97 2,705.33
2018-03-31 8,118.21 3,458.97 2,629.33
2017-12-31 7,835.21 3,287.97 2,556.33
2017-09-30 7,642.49 3,181.85 2,455.83
2017-06-30 7,554.49 3,089.85 2,418.83
2017-03-31 7,481.49 3,044.85 2,399.83
2016-12-31 7,467.49 3,003.85 2,373.83
2016-09-30 7,460.10 3,039.56 2,381.99
2016-06-30 7,531.10 3,106.56 2,400.99
2016-03-31 7,440.10 3,068.56 2,389.99
2015-12-31 7,376.10 3,103.56 2,374.99
2015-09-30 7,170.03 3,104.90 2,292.11
2015-06-30 7,052.03 3,113.90 2,220.11
2015-03-31 7,016.03 3,159.90 2,158.11
2014-12-31 6,822.03 3,146.90 2,112.11
2014-09-30 6,740.37 3,132.75 2,112.61
2014-06-30 6,511.37 2,995.75 2,077.61
2014-03-31 6,344.37 2,970.75 2,037.61
2013-12-31 6,291.37 2,904.75 2,003.61
2013-09-30 6,133.00 2,931.00 1,984.00
2013-06-30 6,098.00 2,908.00 1,957.00
2013-03-31 6,034.00 2,837.00 1,911.00
2012-12-31 6,019.00 2,803.00 1,866.00
2012-09-30 5,827.74 2,561.99 1,782.31
2012-06-30 5,544.74 2,375.99 1,730.31

*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.
  • United Overseas Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • United Overseas Bank used its assets more efficiently than the Asia Banks industry average last year based on Return on Assets.
  • Unable to establish if United Overseas Bank 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 United Overseas Bank'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.
United Overseas Bank has a total score of 4/6, 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.

U11 Health

 How is United Overseas Bank'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 United Overseas Bank'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 United Overseas Bank Company Filings, last reported 2 months ago.

SGX:U11 Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 39,188.00 27,515.00 80,070.00
2018-12-31 37,812.79 36,445.61 78,062.09
2018-09-30 36,958.00 23,906.00 75,922.00
2018-06-30 37,850.00 27,756.00 84,001.00
2018-03-31 38,065.00 24,409.00 73,303.00
2017-12-31 37,036.60 30,709.15 80,703.19
2017-09-30 35,329.00 25,655.00 73,388.00
2017-06-30 34,830.00 26,625.00 71,259.00
2017-03-31 33,914.00 26,115.00 65,410.00
2016-12-31 33,041.79 32,980.06 68,542.59
2016-09-30 32,584.00 19,388.00 58,332.00
2016-06-30 31,439.00 18,878.00 57,016.00
2016-03-31 30,788.00 20,662.00 66,355.00
2015-12-31 30,923.77 26,257.36 63,572.66
2015-09-30 30,363.00 19,849.00 68,710.00
2015-06-30 30,712.00 16,834.00 60,590.00
2015-03-31 31,038.00 18,696.00 63,686.00
2014-12-31 29,772.01 27,337.28 65,440.56
2014-09-30 28,809.00 23,004.00 59,257.00
2014-06-30 28,289.00 24,060.00 54,833.00
2014-03-31 27,452.00 22,997.00 57,906.00
2013-12-31 26,577.26 24,859.10 59,063.40
2013-09-30 25,379.00 17,022.00 46,878.00
2013-06-30 25,775.00 16,615.00 46,813.00
2013-03-31 26,261.00 14,801.00 45,643.00
2012-12-31 25,272.00 12,800.00 44,544.00
2012-09-30 24,433.00 12,630.00 41,498.00
2012-06-30 23,949.00 12,016.00 38,184.00
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.
  • United Overseas Bank has an acceptable proportion of non-loan assets held.
  • United Overseas Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at United Overseas Bank are broadly funded by customer deposits.
  • United Overseas Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • United Overseas Bank has a low allowance for bad loans.
  • United Overseas Bank has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess United Overseas Bank'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. United Overseas Bank 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.

U11 Dividends

 What is United Overseas Bank'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
4.56%
Current annual income from United Overseas Bank dividends. Estimated to be 4.98% next year.
If you bought SGD2,000 of United Overseas Bank shares you are expected to receive SGD91 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?
  • United Overseas Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.63%).
  • United Overseas Bank's dividend is below the markets top 25% of dividend payers in Singapore (5.59%).
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:U11 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 18 Analyst Estimates (S&P Global) See Below
Asia Banks Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.4%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 277 Stocks 3.9%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.6%
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:U11 Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.59 1.00
2022-12-31 1.40 1.00
2021-12-31 1.39 16.00
2020-12-31 1.30 19.00
2019-12-31 1.24 19.00
SGX:U11 Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-04-26 1.200 4.758
2018-10-25 1.000 3.958
2018-08-02 1.000 3.782
2018-05-02 0.900 3.255
2017-11-02 0.700 2.579
2017-07-27 0.700 2.927
2017-03-28 0.700 3.048
2017-02-17 0.700 3.241
2016-10-28 0.700 3.454
2016-07-28 0.700 3.803
2016-02-15 0.700 3.810
2015-07-31 0.900 4.677
2015-04-01 0.750 3.191
2014-07-31 0.700 3.029
2014-02-21 0.750 3.399
2013-08-01 0.600 2.895
2013-02-27 0.600 2.911
2012-04-09 0.600 3.174
2012-02-23 0.600 3.302
2011-02-25 0.600 3.372
2010-05-03 0.600 3.180
2009-08-05 0.600 3.279

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of United Overseas Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess United Overseas Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - 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 United Overseas Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Overseas Bank has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

U11 Management

 What is the CEO of United Overseas Bank'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
Ee Cheong Wee
COMPENSATION SGD10,563,000
AGE 65
TENURE AS CEO 12.2 years
CEO Bio

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 Eastern Bank Limited since April 27, 2007 and serves as its President and Deputy Chairman. Mr. Wee served as Chief Executive Officer and Deputy Chairman of BNP Paribas Arbitrage Issuance BV. He served as the Chief Executive Officer and Deputy Chairman of United International Securities Ltd. He is a career banker with more than 35 years’ experience. Mr. Wee served as an Executive Director of United International Securities Ltd. from March 7, 1988 to December 12, 2013. Mr. Wee served as the President of United Overseas Bank Limited from 2000 to April 2007. Mr. Wee joined United Overseas Bank Limited in 1979. He served as President of Overseas Union Trust Ltd. He served as President of Industrial & Commercial Bank Ltd. since 2000. He served as President of Overseas Union Bank Ltd. since 2000. He serves as the Chairman of United Overseas Bank (China) Limited. Mr. Wee serves as Vice President Commissioner of PT Bank UOB Indonesia and has been its Commissioner since August 31, 2007. Mr. Wee has been Deputy Chairman of United Overseas Bank Limited since 2000 and has been its Executive & Non-Independent Director since January 3, 1990. He has been Deputy Chairman of United Overseas Bank (Thai) Public Company Limited since July 2004. Previously, Mr. Wee served as Deputy Chairman of Industrial & Commercial Bank Ltd. since 2000 and served as its Executive Director since 1987. He has been an Executive and Non-Independent Director of Far Eastern Bank Limited since January 3, 1990. Mr. Wee has been a Director of United Overseas Bank (Malaysia) Bhd. since March 23, 1994, a Non-Executive and Non-Independent Director of United Overseas Insurance Ltd. since March 20, 1991. He served as Director of UOB Australia Limited until May 18, 2018. He serves as a Director of Kheng Leong Co. (Pte.) Ltd., UOB Global Capital, LLC, Visa International Senior Client Council and India-Singapore Chief Executive Officer Forum and an Advisory Board Member of the INSEAD East Asia Council and International Council. He served as a Director of Overseas Union Bank Ltd. since January 3, 1990. Mr. Wee served as a Director of Pan Pacific Hotels Group Limited from May 28, 1990 to May 9, 2006. He serves as Chairman of the Board at The Institute of Banking & Finance Standards Committee. He serves as Chairman of the Board and Council Member of The Association of Banks in Singapore. He serves as Vice Chairman at The Institute of Banking & Finance. He serves as a Member of Indonesia-Singapore Business Council. He was the Deputy Chairman of Housing & Development Board and Overseas Union Trust Ltd. He serves as Member of the Board of Governors of the Singapore-China Foundation. He serves as a Director of Wee Foundation and The Institute of Banking & Finance. Mr. Wee was a Director of UOL Group, Limited from May 18, 1991 to May 2006 and Prudential Assurance Co S'pore (Pte) Ltd. He served as a Director of Hotel Plaza Limited until May 2006. Mr. Wee served as a Director of Overseas Union Trust Ltd. since January 3, 2002. He served as a Director of Port of Singapore Authority, UOL Group, Ltd. He is a Patron at Nanyang Academy of Fine Arts. He is a member of Visa APCEMEA Senior Client Council. He received Public Service Star (2013). He is an Honorary Council Member of Singapore Chinese Chamber of Commerce & Industry. Mr. Wee holds a Master of Arts in Applied Economics and a Bachelor of Science in Business Administration from The American University.

CEO Compensation
  • Ee Cheong's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ee Cheong's remuneration is higher than average for companies of similar size in Singapore.
Management Team Tenure

Average tenure and age of the United Overseas Bank management team in years:

9.5
Average Tenure
57
Average Age
  • The average tenure for the United Overseas Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ee Cheong Wee

TITLE
Deputy Chairman & CEO
COMPENSATION
SGD11M
AGE
65
TENURE
12.2 yrs

Wai Lee

TITLE
MD & Group CFO
AGE
57
TENURE
14 yrs

Susan Hwee

TITLE
Head of Group Technology & Operations

Stephen Lin Shih Tung

TITLE
Head of Investor Relations

Victor Ngo

TITLE
Head of Group Compliance
TENURE
2.2 yrs

Joyce Sia

TITLE
Head of Group Legal & Company Secretary

Dean Tong

TITLE
Head of Group Human Resources

Eddie Khoo

TITLE
Head of Group Retail

Kok Chan

TITLE
MD & Group Chief Risk Officer
AGE
56
TENURE
6.8 yrs

Ian Wong

TITLE
Head of Group Strategy & International Management
Board of Directors Tenure

Average tenure and age of the United Overseas Bank board of directors in years:

5.5
Average Tenure
63
Average Age
  • The tenure for the United Overseas Bank board of directors is about average.
Board of Directors

Kan Seng Wong

TITLE
Chairman of the Board
COMPENSATION
SGD960K
AGE
71
TENURE
1.3 yrs

Ee Cheong Wee

TITLE
Deputy Chairman & CEO
COMPENSATION
SGD11M
AGE
65
TENURE
19.4 yrs

Cho-Yaw Wee

TITLE
Chairman Emeritus & Honorary Adviser
COMPENSATION
SGD617K
AGE
89
TENURE
6.2 yrs

Kevin Lam Lam

TITLE
President Director of PT Bank UOB Indonesia
AGE
49
TENURE
3.4 yrs

Willie Cheng

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD205K
AGE
64
TENURE
8.9 yrs

James Koh

TITLE
Non-Executive Independent Director
COMPENSATION
SGD220K
AGE
72
TENURE
6.8 yrs

Yew Huat Ong

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD402K
AGE
62
TENURE
6.4 yrs

Hwee Hua Lim

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD220K
AGE
59
TENURE
4.9 yrs

Michael Lien

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
SGD175K
AGE
54
TENURE
1.9 yrs

Alex Hungate

TITLE
Non-Executive & Independent Director
COMPENSATION
SGD175K
AGE
51
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by United Overseas Bank insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
04. Jun 19 Buy Ee Cheong Wee Individual 03. Jun 19 03. Jun 19 25,000 SGD23.56 SGD588,930
10. May 19 Buy Alexander Hungate Individual 09. May 19 09. May 19 6,000 SGD25.50 SGD153,010
X
Management checks
We assess United Overseas Bank'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. United Overseas Bank 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.

U11 News

Simply Wall St News

Does United Overseas Bank Limited's (SGX:U11) CEO Pay Compare Well With Peers?

It would therefore appear that United Overseas Bank Limited pays Ee Cheong Wee more than the median CEO remuneration at large companies, in the same market. … Boasting a total shareholder return of 52% over three years, United Overseas Bank Limited has done well by shareholders. … We examined the amount United Overseas Bank Limited pays its CEO, and compared it to the amount paid by other large companies.

Simply Wall St -

With EPS Growth And More, United Overseas Bank (SGX:U11) Is Interesting

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in United Overseas Bank (SGX:U11). … United Overseas Bank maintained stable EBIT margins over the last year, all while growing revenue 9.5% to S$8.9b. … The good news, alongside the insider buying, for United Overseas Bank bulls is that insiders (collectively) have a meaningful investment in the stock.

Simply Wall St -

Have You Considered These Key Risks For United Overseas Bank Limited (SGX:U11)?

As a S$45b market capitalisation company operating in the financial services sector, United Overseas Bank Limited (SGX:U11) has benefited from strong economic growth and improved credit quality as a result of post-GFC recovery. … Economic growth fuels demand for loans and affects a borrower’s ability to repay which directly impacts the level of risk United Overseas Bank takes on. … Check out our latest analysis for United Overseas Bank

Simply Wall St -

Update: United Overseas Bank (SGX:U11) Stock Gained 37% In The Last Three Years

Just take a look at United Overseas Bank Limited (SGX:U11), which is up 37%, over three years, soundly beating the market return of 9.3% (not including dividends). … See our latest analysis for United Overseas Bank. … United Overseas Bank was able to grow its EPS at 6.5% per year over three years, sending the share price higher.

Simply Wall St -

Financial Metrics For United Overseas Bank Limited (SGX:U11)

Following the crisis, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry. … Basel III target banking regulations to improve the sector’s ability to absorb shocks resulting from economic stress which may expose financial institutions like banks to vulnerabilities. … Investors should be more cautious when it comes to financial stocks given the different type of risk to which they are exposed.

Simply Wall St -

What Kind Of Shareholder Appears On The United Overseas Bank Limited's (SGX:U11) Shareholder Register?

The big shareholder groups in United Overseas Bank Limited (SGX:U11) have power over the company. … United Overseas Bank is a pretty big company. … Check out our latest analysis for United Overseas Bank

Simply Wall St -

How Do Analysts See United Overseas Bank Limited (SGX:U11) Performing In The Year Ahead?

As United Overseas Bank Limited (SGX:U11) released its earnings announcement on 31 December 2018, … analyst consensus outlook appear cautiously optimistic, … with earnings expected to grow by 5.0% in the upcoming year

Simply Wall St -

What Should We Expect From United Overseas Bank Limited's (SGX:U11) Earnings Over The Next Few Years?

In December 2018, United Overseas Bank Limited (SGX:U11) released its latest earnings announcement, whicha

Simply Wall St -

Should You Worry About United Overseas Bank Limited's (SGX:U11) CEO Pay?

In 2007 Ee Cheong Wee was appointed CEO of United Overseas Bank Limited (SGX:U11). … This analysis aims first to contrast CEO compensation with other large companies. … Check out our latest analysis for United Overseas Bank?

Simply Wall St -

Is United Overseas Bank Limited (SGX:U11) A Smart Pick For Income Investors?

Historically, United Overseas Bank Limited (SGX:U11) has been paying a dividend to shareholders. … Does United Overseas Bank tick all the boxes of a great dividend stock? … Check out our latest analysis for United Overseas Bank?

Simply Wall St -

U11 Company Info

Description

United Overseas Bank Limited provides financial 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. 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 has a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, Europe, and North America. 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.

Details
Name: United Overseas Bank Limited
U11
Exchange: SGX
Founded: 1935
SGD43,907,024,184
1,668,200,007
Website: http://www.uobgroup.com
Address: United Overseas Bank Limited
UOB Plaza,
80 Raffles Place,
Singapore,
048624,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX U11 Ordinary Shares Singapore Exchange SG SGD 02. Jan 1992
OTCPK UOVE.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB UOB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
OTCPK UOVE.Y SPONSORED ADR Pink Sheets LLC US USD 05. Apr 1991
Number of employees
Current staff
Staff numbers
26,651
United Overseas Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 12:37
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/05/02
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.