OTCPK:BKEA.Y

Stock Analysis Report

Executive Summary

The Bank of East Asia, Limited provides various banking and related financial services.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential and pays a dividend.


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


Market Performance


7 Day Return

1.3%

BKEA.Y

2.9%

US Banks

0.07%

US Market


1 Year Return

-22.4%

BKEA.Y

8.6%

US Banks

8.9%

US Market

Return vs Industry: BKEA.Y underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: BKEA.Y underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

BKEA.YIndustryMarket
7 Day1.3%2.9%0.07%
30 Day-2.4%3.4%-0.3%
90 Day-14.2%2.1%-1.6%
1 Year-20.7%-22.4%11.8%8.6%11.3%8.9%
3 Year-35.6%-40.4%54.8%44.1%46.3%36.8%
5 Year-32.0%-40.5%70.2%51.6%62.1%44.3%

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?

19.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKEA.Y ($2.42) is trading above our estimate of fair value ($1.05)

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


Price To Earnings Ratio

PE vs Industry: BKEA.Y is poor value based on its PE Ratio (19.1x) compared to the Banks industry average (12.6x).

PE vs Market: BKEA.Y is poor value based on its PE Ratio (19.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BKEA.Y is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BKEA.Y is good value based on its PB Ratio (0.5x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Bank of East Asia forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKEA.Y's forecast earnings growth (33.8% per year) is above the savings rate (2.7%).

Earnings vs Market: BKEA.Y's earnings (33.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BKEA.Y's revenue (8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BKEA.Y's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKEA.Y's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

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

-6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKEA.Y's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: BKEA.Y'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.Y had negative earnings growth (-56.2%) over the past year, making it difficult to compare to the Banks industry average (29.7%).


Return on Equity

High ROE: BKEA.Y's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: BKEA.Y's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BKEA.Y's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: BKEA.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: BKEA.Y's debt is covered by short term assets (assets are 6.440560x debt).


Financial Institutions Analysis

Asset Level: BKEA.Y's level of assets compared to its equity is low.

Allowance for Bad Loans: BKEA.Y has a low allowance for bad loans.

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

Loan Level: BKEA.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BKEA.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: BKEA.Y has an appropriate level of bad loans (1.59%)


Next Steps

Dividend

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

3.39%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BKEA.Y's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BKEA.Y's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: BKEA.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), BKEA.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BKEA.Y's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).


Next Steps

Management

What is the CEO of Bank of East Asia's salary, the management and board of directors tenure and is there insider trading?

10.1yrs

Average management tenure


CEO

Adrian David Li (46yo)

0.3yrs

Tenure

HK$13,300,000

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Adrian David has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

10.1yrs

Average Tenure

59.5yo

Average Age

Experienced Management: BKEA.Y's management team is seasoned and experienced (10.1 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: BKEA.Y's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hon-Shing Tong (60yo)

    Deputy Chief Executive & COO

    • Tenure: 10.5yrs
  • Adrian David Li (46yo)

    Co-Chief Executive & Executive Director

    • Tenure: 0.3yrs
    • Compensation: HK$13.30m
  • Joseph Pang (70yo)

    Senior Advisor

    • Tenure: 10.5yrs
    • Compensation: HK$5.50m
  • Samson Li (59yo)

    Deputy Chief Executive Officer and Chief Investment Officer

    • Tenure: 10.5yrs
  • David Li (80yo)

    Executive Chairman

    • Tenure: 22.8yrs
    • Compensation: HK$46.30m
  • Brian David Li (44yo)

    Co-Chief Executive & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$13.30m
  • Ignatius Chan (62yo)

    Senior Advisor

    • Tenure: 0yrs
  • William Cheng (59yo)

    Group Chief Financial Officer

    • Tenure: 10.6yrs
  • Alson Law

    Company Secretary

    • Tenure: 9.8yrs

Board Members

  • Allan Wong (68yo)

    Independent Non-Executive Deputy Chairman of the Board

    • Tenure: 10.8yrs
    • Compensation: HK$900.00k
  • Adrian David Li (46yo)

    Co-Chief Executive & Executive Director

    • Tenure: 0.3yrs
    • Compensation: HK$13.30m
  • Winston Lo (78yo)

    Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: HK$400.00k
  • Aubrey Li (69yo)

    Non-Executive Director

    • Tenure: 24.8yrs
    • Compensation: HK$500.00k
  • Meocre Li (64yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$1.10m
  • David Li (80yo)

    Executive Chairman

    • Tenure: 22.8yrs
    • Compensation: HK$46.30m
  • Brian David Li (44yo)

    Co-Chief Executive & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$13.30m
  • Henry Tang (66yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$900.00k
  • Arthur Li (74yo)

    Non-Executive Deputy Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: HK$500.00k
  • Rita Fan Hsu (73yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$500.00k

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.Y
  • Exchange: OTCPK
  • Founded: 1918
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$54.816b
  • Listing Market Cap: HK$6.990b
  • 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
A1APM1DB (Deutsche Boerse AG)8.5%-FRN SUB 05/11/2059 USD100000 'REGS'DEUSDNov 2009

Biography

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, Financi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:46
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.