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Bank of East Asia

OTCPK:BKEA.F
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BKEA.F
OTCPK
HK$60B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

The Bank of East Asia, Limited provides various banking and related financial services. The last earnings update was 142 days ago. More info.


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BKEA.F Share Price and Events
7 Day Returns
0%
OTCPK:BKEA.F
-2.6%
US Banks
-1%
US Market
1 Year Returns
-27%
OTCPK:BKEA.F
-14.2%
US Banks
-0.4%
US Market
BKEA.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bank of East Asia (BKEA.F) 0% -3.9% -10.8% -27% -36.5% -37.4%
US Banks -2.6% -5.5% -3.5% -14.2% 32.4% 36.7%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • BKEA.F underperformed the Banks industry which returned -14.2% over the past year.
  • BKEA.F underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
BKEA.F
Industry
5yr Volatility vs Market

Value

 Is Bank of East Asia 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 Bank of East Asia 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 Bank of East Asia.

OTCPK:BKEA.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= HK$35.71 * 5%
HK$1.79
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. HK$35.71
Discount Rate (Cost of Equity) See below 10.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 OTCPK:BKEA.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.566 (1 + (1- 25%) (37.21%))
1.214
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.214 * 6.65%)
10.8%

Discounted Cash Flow Calculation for OTCPK:BKEA.F using Excess Returns Model Model

The calculations below outline how an intrinsic value for Bank of East Asia 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.

OTCPK:BKEA.F Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5% – 10.8%) * HK$35.71)
HK$-2.07
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= HK$-2.07 / (10.8% - 2.73%)
HK$-25.63
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= HK$35.71 + HK$-25.63
HK$10.08
OTCPK:BKEA.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:BKEA.F represents 0.13029x of SEHK:23
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.13029x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 10.08 x 0.13029
$1.31
Value per share (USD) From above. $1.31
Current discount Discount to share price of $2.71
= -1 x ($2.71 - $1.31) / $1.31
-106.3%

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

  • The current share price of Bank of East Asia is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Bank of East Asia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bank of East Asia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:BKEA.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$2.07
SEHK:23 Share Price ** SEHK (2019-08-08) in HKD HK$20.8
United States of America Banks Industry PE Ratio Median Figure of 597 Publicly-Listed Banks Companies 12.29x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

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

** Primary Listing of Bank of East Asia.

OTCPK:BKEA.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:23 Share Price ÷ EPS (both in HKD)

= 20.8 ÷ 2.07

10.07x

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

  • Bank of East Asia is good value based on earnings compared to the US Banks industry average.
  • Bank of East Asia is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Bank of East Asia's expected growth come at a high price?
Raw Data
OTCPK:BKEA.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
5%per year
United States of America Banks Industry PEG Ratio Median Figure of 274 Publicly-Listed Banks Companies 1.12x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

OTCPK:BKEA.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.07x ÷ 5%

2.02x

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

  • Bank of East Asia is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bank of East Asia's assets?
Raw Data
OTCPK:BKEA.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$35.39
SEHK:23 Share Price * SEHK (2019-08-08) in HKD HK$20.8
United States of America Banks Industry PB Ratio Median Figure of 600 Publicly-Listed Banks Companies 1.16x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
OTCPK:BKEA.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:23 Share Price ÷ Book Value per Share (both in HKD)

= 20.8 ÷ 35.39

0.59x

* Primary Listing of Bank of East Asia.

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

  • Bank of East Asia is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Bank of East Asia'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. Bank of East Asia has a total score of 3/6, 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.

Future Performance

 How is Bank of East Asia expected to perform in the next 1 to 3 years based on estimates from 9 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
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bank of East Asia expected to grow at an attractive rate?
  • Bank of East Asia's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Bank of East Asia's earnings growth is positive but not above the United States of America market average.
  • Bank of East Asia's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:BKEA.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:BKEA.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 5%
OTCPK:BKEA.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7.1%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 1.5%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
OTCPK:BKEA.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:BKEA.F Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 19,331 6,198 5
2020-12-31 18,605 6,058 9
2019-12-31 17,682 3,916 9
OTCPK:BKEA.F Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 15,597 -21,559 5,796
2018-09-30 16,151 6,102
2018-06-30 16,702 -31,230 6,407
2018-03-31 16,068 -27,483 5,505
2017-12-31 15,435 -23,736 4,602
2017-09-30 14,021 3,835
2017-06-30 12,607 -1,538 3,068
2017-03-31 12,459 -4,838 2,996
2016-12-31 12,311 -8,138 2,924
2016-09-30 13,817 10,411 3,361
2016-06-30 13,411 32,753 3,341
2016-03-31 13,799 46,374 4,015

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bank of East Asia's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Bank of East Asia's revenue is expected to grow by 7.1% 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
OTCPK:BKEA.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Bank of East Asia Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:BKEA.F Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.12 2.42 1.94 5.00
2020-12-31 2.14 2.63 1.87 10.00
2019-12-31 1.36 2.22 1.09 7.00
OTCPK:BKEA.F Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 2.07
2018-09-30 2.19
2018-06-30 2.32
2018-03-31 2.00
2017-12-31 1.69
2017-09-30 1.41
2017-06-30 1.13
2017-03-31 1.11
2016-12-31 1.09
2016-09-30 1.26
2016-06-30 1.26
2016-03-31 1.54

*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.
  • Bank of East Asia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bank of East Asia'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Bank of East Asia has a total score of 1/6, 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.

Past Performance

  How has Bank of East Asia 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 Bank of East Asia'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.
  • Bank of East Asia's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Bank of East Asia's 1-year earnings growth exceeds its 5-year average (25.9% vs -6.1%)
  • Bank of East Asia's earnings growth has not exceeded the US Banks industry average in the past year (25.9% vs 33.2%).
Earnings and Revenue History
Bank of East Asia'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 Bank of East Asia Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:BKEA.F Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,597.00 5,796.00 8,009.00
2018-09-30 16,150.50 6,101.50 7,896.00
2018-06-30 16,702.00 6,407.00 7,783.00
2018-03-31 16,067.50 5,504.50 7,653.50
2017-12-31 15,435.00 4,602.00 7,524.00
2017-09-30 14,021.00 3,835.00 7,457.50
2017-06-30 12,607.00 3,068.00 7,391.00
2017-03-31 12,459.00 2,996.00 7,492.50
2016-12-31 12,311.00 2,924.00 7,594.00
2016-09-30 13,816.50 3,361.00 4,434.00
2016-06-30 13,411.00 3,341.00 7,918.00
2016-03-31 13,798.50 4,015.00 7,841.50
2015-12-31 14,186.00 4,689.00 7,765.00
2015-09-30 15,362.00 5,393.00 190.00
2015-06-30 15,943.00 5,950.00 63.00
2015-03-31 16,671.00 6,140.50 379.00
2014-12-31 17,399.00 6,331.00 695.00
2014-09-30 17,559.00 6,408.00 4,748.00
2014-06-30 17,719.00 6,485.00 8,801.00
2014-03-31 17,342.50 6,384.00 8,618.50
2013-12-31 16,966.00 6,283.00 8,436.00
2013-09-30 16,369.00 6,198.50 8,181.00
2013-06-30 15,772.00 6,114.00 7,926.00
2013-03-31 15,406.50 5,919.50 7,807.50
2012-12-31 15,041.00 5,725.00 7,689.00
2012-09-30 14,208.50 5,016.50 7,577.50

*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.
  • Bank of East Asia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bank of East Asia used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Bank of East Asia 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 Bank of East Asia'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.
Bank of East Asia has a total score of 1/6, 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.

Health

 How is Bank of East Asia'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 Bank of East Asia'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 Bank of East Asia Company Filings, last reported 7 months ago.

OTCPK:BKEA.F Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 103,575.00 22,418.00 104,541.00
2018-09-30 103,575.00 22,418.00 104,541.00
2018-06-30 103,595.00 23,208.00 111,782.00
2018-03-31 103,595.00 23,208.00 111,782.00
2017-12-31 101,214.00 25,497.00 106,690.00
2017-09-30 101,214.00 25,497.00 106,690.00
2017-06-30 97,976.00 25,930.00 95,339.00
2017-03-31 97,976.00 25,930.00 95,339.00
2016-12-31 86,636.00 35,744.00 97,791.00
2016-09-30 86,636.00 35,744.00 125,137.00
2016-06-30 87,035.00 31,582.00 111,865.00
2016-03-31 87,035.00 31,582.00 111,865.00
2015-12-31 85,641.00 37,502.00 144,395.00
2015-09-30 85,641.00 37,502.00 144,568.00
2015-06-30 82,869.00 40,009.00 127,279.00
2015-03-31 82,869.00 40,009.00 127,279.00
2014-12-31 73,444.00 44,582.00 107,085.00
2014-09-30 73,444.00 44,582.00 107,085.00
2014-06-30 71,210.00 41,072.00 115,530.00
2014-03-31 71,210.00 41,072.00 115,530.00
2013-12-31 68,234.00 22,905.00 104,212.00
2013-09-30 68,234.00 22,905.00 104,212.00
2013-06-30 64,921.00 25,030.00 93,822.00
2013-03-31 64,921.00 25,030.00 93,822.00
2012-12-31 61,639.00 26,726.00 117,998.00
2012-09-30 61,639.00 26,726.00 117,998.00
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.
  • Bank of East Asia has an acceptable proportion of non-loan assets held.
  • Bank of East Asia's liabilities are made up of primarily low risk sources of funding.
  • Loans at Bank of East Asia are broadly funded by customer deposits.
  • Bank of East Asia's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Bank of East Asia has a low allowance for bad loans.
  • Bank of East Asia has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Bank of East Asia'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. Bank of East Asia 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.

Dividends

 What is Bank of East Asia'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
3.08%
Current annual income from Bank of East Asia dividends. Estimated to be 3.9% next year.
If you bought $2,000 of Bank of East Asia shares you are expected to receive $62 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?
  • Bank of East Asia's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Bank of East Asia's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).
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
OTCPK:BKEA.F 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 9 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 480 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

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

OTCPK:BKEA.F Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.92 5.00
2020-12-31 0.98 9.00
2019-12-31 0.55 8.00
OTCPK:BKEA.F Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.640 2.752
2019-02-27 0.640 2.428
2018-04-03 1.280 4.459
2018-02-22 1.280 3.831
2017-03-06 0.560 1.680
2016-03-15 0.880 2.861
2016-02-15 0.880 3.510
2015-03-25 1.110 3.829
2015-02-12 1.110 3.641
2014-08-20 1.110 3.489
2014-03-10 1.110 3.463
2013-08-21 1.060 3.302
2013-03-15 1.060 3.570
2012-03-20 0.940 3.262
2012-03-02 0.940 3.097
2012-02-14 0.940 3.092
2011-02-15 0.940 3.148
2010-08-12 0.860 2.608
2010-03-17 0.760 2.651
2010-01-15 0.760 2.712
2009-02-17 0.227 0.990

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 Bank of East Asia'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 Bank of East Asia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Bank of East Asia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bank of East Asia 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.

Management

 What is the CEO of Bank of East Asia'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
Adrian David Li
COMPENSATION HK$14,100,000
AGE 46
TENURE AS CEO 0.1 years
CEO Bio

Dr. Man kiu Li, also known as Adrian David, BA (Cantab), Hon. MA (Cantab), MBA, LPC, JP, has been Deputy Chief Executive of The Bank of East Asia, Limited since April 2009. Dr. Li has been an Independent Non-Executive Director at Sino Land Co. Ltd. Dr. Li served as Deputy Chief Executive Officer of Hong Kong Business at The Bank of East Asia, Limited since April 1, 2009. Dr. Li served as a General Manager and Head of Corporate Banking Division at the Bank of East Asia Ltd. since joined in 2000. He has been an Independent Non Executive Director for Sino Hotels Holdings Ltd since April 28, 2005 and China State Construction International Holdings Ltd since June 1, 2005. He has been an Independent Non Executive Director at Sino Hotels (Holdings) Limited & Tsim Sha Tsui Properties Limited since April 28, 2005. Dr. Li has been an Independent Non Executive Director at COSCO SHIPPING Ports Limited (Formerly Cosco Pacific Ltd) since May 17, 2012. He serves as a Director for Ocean Park Corporation and Member of the Advisory Board of Hong Kong Export Credit Insurance Corporation. He served as Independent Non Executive Director of Shanghai FOSUN Pharmaceutical (Group) Co., Ltd. since October 30, 2012 until June 29, 2015 and Executive Director of The Bank of East Asia, Limited since August 4, 2014. He serves as an Independent Non Executive Director at Sino Land and TST Properties, a holding of Sino Land Company Limited. He served as Director of San Miguel Brewery Hong Kong Limited. He serves as an Independent Non-Executive Director of The Berkeley Group Holdings plc since September 2, 2013. He serves as Non-Executive Director of The Bank of East Asia (China) Ltd. He also serves as a Member of the International Advisory Board of Abertis Infraestructuras, S.A. (listed in Spain). Mr. Li is a Member of the Anhui Provincial Committee of the Chinese People’s Political Consultative Conference and a Counsellor of the Hong Kong United Youth Association. He is also a Board Member of The Community Chest of Hong Kong, a Member of the MPF Industry Schemes Committee of the Mandatory Provident Fund Schemes Authority, a Trustee of The University of Hong Kong’s occupational retirement schemes, an Advisory Committee Member of the Hong Kong Baptist University’s School of Business and a Vice President of The Hong Kong Institute of Bankers’ Council. Furthermore, he serves as a Member of the Election Committees responsible for electing the Chief Executive of the HKSAR and deputies of the HKSAR to the 13th National People’s Congress. He also sits on the Judging Panel of the BAI Global Innovation Awards. Mr. Li was previously a Member of the Guangdong Provincial Committee of the Chinese People’s Political Consultative Conference, a Member of the All-China Youth Federation and Deputy Chairman of the Beijing Youth Federation. Dr. Li is a Member of The Law Society of England and Wales and The Law Society of Hong Kong. Dr. Li holds a Master's Degree in Management from Kellogg Graduate School of Management, Northwestern University and a Master Degree of Arts and a Bachelor Degree of Arts in Law from the University of Cambridge.

CEO Compensation
  • Adrian David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Adrian David's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Bank of East Asia management team in years:

10
Average Tenure
59.5
Average Age
  • The average tenure for the Bank of East Asia management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Li

TITLE
Executive Chairman
COMPENSATION
HK$48M
AGE
80
TENURE
0.1 yrs

Adrian David Li

TITLE
Co-Chief Executive & Director
COMPENSATION
HK$14M
AGE
46
TENURE
0.1 yrs

Brian David Li

TITLE
Co-Chief Executive & Director
COMPENSATION
HK$14M
AGE
44
TENURE
0.1 yrs

William Cheng

TITLE
Group Chief Financial Officer
AGE
59
TENURE
10.4 yrs

Hon-Shing Tong

TITLE
Deputy Chief Executive & COO
AGE
60
TENURE
10.3 yrs

Samson Li

TITLE
Deputy Chief Executive Officer and Chief Investment Officer
AGE
59
TENURE
10.3 yrs

Alson Law

TITLE
Company Secretary
TENURE
9.6 yrs

Ignatius Chan

TITLE
Senior Advisor
AGE
62

Joseph Pang

TITLE
Senior Advisor
COMPENSATION
HK$6M
AGE
70
TENURE
10.3 yrs
Board of Directors Tenure

Average tenure and age of the Bank of East Asia board of directors in years:

7.7
Average Tenure
68.5
Average Age
  • The tenure for the Bank of East Asia board of directors is about average.
Board of Directors

David Li

TITLE
Executive Chairman
COMPENSATION
HK$48M
AGE
80
TENURE
22.6 yrs

Adrian David Li

TITLE
Co-Chief Executive & Director
COMPENSATION
HK$14M
AGE
46
TENURE
5 yrs

Brian David Li

TITLE
Co-Chief Executive & Director
COMPENSATION
HK$14M
AGE
44
TENURE
5 yrs

Allan Wong

TITLE
Independent Non-Executive Deputy Chairman of the Board
COMPENSATION
HK$900K
AGE
68
TENURE
10.6 yrs

Arthur Li

TITLE
Non-Executive Deputy Chairman of the Board
COMPENSATION
HK$500K
AGE
74
TENURE
10.3 yrs

Rita Fan Hsu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$500K
AGE
73
TENURE
3.5 yrs

Meocre Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$1M
AGE
64
TENURE
2.9 yrs

Henry Tang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$900K
AGE
66
TENURE
2.4 yrs

Winston Lo

TITLE
Non-Executive Director
COMPENSATION
HK$400K
AGE
78
TENURE
19.6 yrs

Aubrey Li

TITLE
Non-Executive Director
COMPENSATION
HK$500K
AGE
69
TENURE
24.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Bank of East Asia individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Jul 19 Buy Kwok-Po Li Individual 16. Jul 19 16. Jul 19 200,000 $2.85 $569,314
24. Jun 19 Buy Kwok-Po Li Individual 21. Jun 19 21. Jun 19 630,000 $2.78 $1,749,595
19. Jun 19 Buy Kwok-Po Li Individual 18. Jun 19 18. Jun 19 20,000 $2.66 $53,240
17. Jun 19 Buy Kwok-Po Li Individual 14. Jun 19 14. Jun 19 250,000 $2.82 $705,205
18. Jun 19 Buy Kwok-Po Li Individual 17. Jun 19 17. Jun 19 100,000 $2.72 $272,062
X
Management checks
We assess Bank of East Asia'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. Bank of East Asia 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.

News

Simply Wall St News

Company Info

Description

The Bank of East Asia, Limited provides various banking and related financial services. It operates through eight segments: Personal Banking, Corporate Banking, Treasury Markets, Wealth Management, Financial Institutions, Others, Mainland China Operations, and Overseas Operations. The company offers various commercial and personal banking, financial, and insurance services. Its products and services include syndicated loans, trade finance, deposit-taking, foreign currency savings, remittances, mortgage loans, consumer loans, credit cards, Cyberbanking, retail investment services, mandatory provident fund services, Renminbi services, foreign exchange margin trading services, and general and life insurance services. The company also provides corporate lending and loan syndication, asset based lending, commercial lending, and securities lending; wealth management services, including private banking, trust, and portfolio management services, as well as investment solutions; treasury services and securities dealing services; and domestic and international services. In addition, it offers trustee, asset management, corporate secretarial, property investment, business consultancy, Internet banking, securities broking, and nominee, as well as provides business, corporate, and investor services. The company operates approximately 220 outlets in Hong Kong and the rest of Greater China, Southeast Asia, the United Kingdom, and the United States. The Bank of East Asia, Limited was incorporated in 1918 and is headquartered in Central, Hong Kong.

Details
Name: The Bank of East Asia, Limited
BKEA.F
Exchange: OTCPK
Founded: 1918
HK$7,682,684,780
2,896,730,441
Website: http://www.hkbea.com
Address: The Bank of East Asia, Limited
10 Des Voeux Road,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 23 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK BKEA.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB BOA Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 23 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 23 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK BKEA.Y SPONSORED ADR Pink Sheets LLC US USD 27. Jul 1995
DB A1APM1 8.5%-FRN SUB 05/11/2059 USD100000 'REGS' Deutsche Boerse AG DE USD 02. Nov 2009
Number of employees
Current staff
Staff numbers
9,796
Bank of East Asia employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:48
End of day share price update: 2019/08/08 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/03/28
Last earnings reported: 2018/12/31
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.