OTCPK:BKEA.F

Stock Analysis Report

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Executive Summary

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Bank of East Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BKEA.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

BKEA.F

0.06%

US Banks

2.6%

US Market


1 Year Return

-24.1%

BKEA.F

-22.0%

US Banks

15.4%

US Market

Return vs Industry: BKEA.F underperformed the US Banks industry which returned -22.7% over the past year.

Return vs Market: BKEA.F underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

BKEA.FIndustryMarket
7 Day-0.9%0.06%2.6%
30 Day-1.8%4.5%6.1%
90 Day3.4%5.4%16.6%
1 Year-24.1%-24.1%-19.3%-22.0%17.8%15.4%
3 Year-50.2%-50.2%-12.6%-19.6%43.9%34.7%
5 Year-44.4%-44.4%11.9%-1.6%76.2%57.3%

Price Volatility Vs. Market

How volatile is Bank of East Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bank of East Asia undervalued compared to its fair value and its price relative to the market?

19.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKEA.F ($2.14) is trading above our estimate of fair value ($0.73)

Significantly Below Fair Value: BKEA.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKEA.F is poor value based on its PE Ratio (19.4x) compared to the US Banks industry average (9.6x).

PE vs Market: BKEA.F is poor value based on its PE Ratio (19.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BKEA.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BKEA.F is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Bank of East Asia forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKEA.F's forecast earnings growth (18.2% per year) is above the savings rate (2.2%).

Earnings vs Market: BKEA.F's earnings (18.2% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: BKEA.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKEA.F's revenue (14.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: BKEA.F's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKEA.F's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Bank of East Asia performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKEA.F has a high level of non-cash earnings.

Growing Profit Margin: BKEA.F's current net profit margins (20.6%) are lower than last year (37.2%).


Past Earnings Growth Analysis

Earnings Trend: BKEA.F's earnings have declined by 7.2% per year over the past 5 years.

Accelerating Growth: BKEA.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BKEA.F had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Banks industry average (-3%).


Return on Equity

High ROE: BKEA.F's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Bank of East Asia'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: BKEA.F's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: BKEA.F has a low allowance for bad loans (61%).

Low Risk Liabilities: 89% of BKEA.F's liabilities are made up of primarily low risk sources of funding.

Loan Level: BKEA.F has an appropriate level of Loans to Assets ratio (60%).

Low Risk Deposits: BKEA.F's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: BKEA.F has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

What is Bank of East Asia current dividend yield, its reliability and sustainability?

2.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKEA.F's dividend (2.66%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: BKEA.F's dividend (2.66%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

Stable Dividend: BKEA.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: BKEA.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.4%), BKEA.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKEA.F's dividends in 3 years are forecast to be well covered by earnings (47.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.0yrs

Average management tenure


CEO

Adrian David Li (46 yo)

1.08yrs

Tenure

HK$12,400,000

Compensation

Dr. Man kiu Li, also known as Adrian David, BA (Cantab), Hon. MA (Cantab), MBA, LPC, JP, has been Co-Chief Executive of Bank of East Asia, Ltd since July 01, 2019 and has been its Executive Director since ...


CEO Compensation Analysis

Compensation vs Market: Adrian David's total compensation ($USD1.60M) is below average for companies of similar size in the US market ($USD7.33M).

Compensation vs Earnings: Adrian David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kwok-Po Li
Executive Chairman23.58yrsHK$26.20m3.44%
HK$ 225.7m
Man-Kiu Li
Co-Chief Executive & Executive Director1.08yrsHK$12.40m0.13%
HK$ 8.6m
Man-Bun Li
Co-Chief Executive & Executive Director6yrsHK$10.80m0.12%
HK$ 7.7m
Chuk-Man Cheng
Group CFO11.42yrsno datano data
Hon-Shing Tong
Deputy Chief Executive & COO11.33yrsno datano data
Kai Cheong Li
Deputy Chief Executive Officer and Chief Investment Officer11.33yrsno datano data
Carmen Lee
Head of Corporate Communications Departmentno datano datano data
Chun-Tak Law
Company Secretary10.58yrsno datano data
Tze Ching I. Chan
Senior Advisorno datano datano data
Yuk Wing Pang
Senior Advisor11.33yrsHK$5.50mno data

11.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: BKEA.F's management team is seasoned and experienced (11 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwok-Po Li
Executive Chairman23.58yrsHK$26.20m3.44%
HK$ 225.7m
Man-Kiu Li
Co-Chief Executive & Executive Director1.08yrsHK$12.40m0.13%
HK$ 8.6m
Man-Bun Li
Co-Chief Executive & Executive Director6yrsHK$10.80m0.12%
HK$ 7.7m
Chi-Yun Wong
Independent Non-Executive Deputy Chairman of the Board11.58yrsHK$900.00k0.61%
HK$ 40.2m
Yau-lai Lo
Non-Executive Director20.58yrsHK$400.00kno data
Kwok-Sing Li
Non-Executive Director25.58yrsHK$500.00k0.64%
HK$ 42.0m
Kwok-wing Li
Independent Non-Executive Director3.92yrsHK$1.10mno data
Win-Kong Ng
Non-Executive Director5.17yrsHK$500.00kno data
Ying-yen Tang
Independent Non-Executive Director3.42yrsHK$1.10mno data
Kwok-Sze Li
Non-Executive Director14.58yrsHK$400.00k0.47%
HK$ 30.5m
Kwok Cheung Li
Non-Executive Deputy Chairman of the Board11.33yrsHK$500.00k1.05%
HK$ 69.2m
Lai-Tai Fan Hsu
Independent Non-Executive Director4.5yrsHK$600.00kno data

8.7yrs

Average Tenure

68yo

Average Age

Experienced Board: BKEA.F's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BKEA.F 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

The Bank of East Asia, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Bank of East Asia, Limited
  • Ticker: BKEA.F
  • Exchange: OTCPK
  • Founded: 1918
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$50.834b
  • Listing Market Cap: HK$6.559b
  • Shares outstanding: 2.91b
  • Website: https://www.hkbea.com

Number of Employees


Location

  • The Bank of East Asia, Limited
  • 10 Des Voeux Road
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKEA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BOADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
23SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
23SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
23SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
BKEA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJul 1995

Biography

The Bank of East Asia, Limited, together with its subsidiaries, provides various banking and related financial services. The company operates through seven segments: Personal Banking, Corporate Banking, Tr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 23:49
End of Day Share Price2020/07/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.