OTCPK:OVCH.Y

Stock Analysis Report

Oversea-Chinese Banking

Executive Summary

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally.

Snowflake

Fundamentals

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has Oversea-Chinese Banking's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.1%

OTCPK:OVCH.Y

0.3%

US Banks

0.9%

US Market


1 Year Return

-6.4%

OTCPK:OVCH.Y

-13.6%

US Banks

0.3%

US Market

OVCH.Y outperformed the Banks industry which returned -14.2% over the past year.

OVCH.Y underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

OVCH.YIndustryMarket
7 Day-5.1%0.3%0.9%
30 Day-9.9%-5.1%-1.9%
90 Day-3.6%-3.5%1.6%
1 Year-4.8%-6.4%-11.2%-13.6%2.6%0.3%
3 Year31.5%22.2%43.6%33.7%41.0%31.8%
5 Year9.2%-8.4%53.7%37.0%55.2%38.0%

Price Volatility Vs. Market

How volatile is Oversea-Chinese Banking's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Oversea-Chinese Banking undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Oversea-Chinese Banking's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Oversea-Chinese Banking's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Oversea-Chinese Banking is good value based on earnings compared to the US Banks industry average.

Oversea-Chinese Banking is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Oversea-Chinese Banking is poor value based on expected growth next year.


Price Based on Value of Assets

Oversea-Chinese Banking is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Oversea-Chinese Banking expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Oversea-Chinese Banking's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Oversea-Chinese Banking's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Oversea-Chinese Banking's revenue growth is positive but not above the United States of America market average.

Oversea-Chinese Banking's earnings growth is positive but not above the United States of America market average.

Oversea-Chinese Banking's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Oversea-Chinese Banking is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Oversea-Chinese Banking performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Oversea-Chinese Banking's year on year earnings growth rate has been positive over the past 5 years.

Oversea-Chinese Banking's 1-year earnings growth is less than its 5-year average (4.7% vs 5.1%)

Oversea-Chinese Banking's earnings growth has not exceeded the US Banks industry average in the past year (4.7% vs 33.2%).


Return on Equity

Oversea-Chinese Banking has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Oversea-Chinese Banking used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Oversea-Chinese Banking improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Oversea-Chinese Banking'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

Information is not available.

Information is not available.


Financial Institutions Analysis

Oversea-Chinese Banking has an acceptable proportion of non-loan assets held.

Oversea-Chinese Banking has a low allowance for bad loans.

Oversea-Chinese Banking's liabilities are made up of primarily low risk sources of funding.

Oversea-Chinese Banking's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Oversea-Chinese Banking are broadly funded by customer deposits.

Oversea-Chinese Banking has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Oversea-Chinese Banking's current dividend yield, its reliability and sustainability?

4.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Oversea-Chinese Banking's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Oversea-Chinese Banking's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Oversea-Chinese Banking's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Samuel Tsien (64yo)

7.3yrs

Tenure

S$10,700,000

Compensation

Mr. Nag Tsien, also known as Samuel, serves as Commissioner at PT Bank OCBC NISP Tbk since December 12, 2012. He has been the Group Chief Executive Officer of Oversea-Chinese Banking Corporation Limited si ...


CEO Compensation Analysis

Samuel's remuneration is lower than average for companies of similar size in United States of America.

Samuel's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.7yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Oversea-Chinese Banking management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

64.5yo

Average Age

The tenure for the Oversea-Chinese Banking board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Samuel Tsien (64yo)

    Group CEO and Executive & Non-Independent Director

    • Tenure: 7.3yrs
    • Compensation: S$10.70m
  • Wei Hong Ching (59yo)

    Chief Operating Officer

    • Tenure: 7.3yrs
  • Ching Ching Koh (51yo)

    Head of Group Brand & Communications

    • Tenure: 14.8yrs
  • Vincent Soh (64yo)

    Head of Group Property Management

    • Tenure: 15.2yrs
  • Khiang Tong Lim (58yo)

    Head of Group Operations & Technology

    • Tenure: 9.3yrs
  • Loretta Ling (44yo)

    Head of Group Legal & Regulatory Compliance

    • Tenure: 8.9yrs
  • Darren Tan (48yo)

    Executive VP & CFO

    • Tenure: 7.7yrs
  • Collins Chin

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Jason Ho (57yo)

    Head of Group Human Resources

    • Tenure: 4.1yrs
  • David Cheng

    Head of Corporate Finance

    • Tenure: 3.8yrs

Board Members

  • Joo Yeow Wee (71yo)

    Non-Executive & Independent Director

    • Tenure: 5.6yrs
    • Compensation: S$325.00k
  • Samuel Tsien (64yo)

    Group CEO and Executive & Non-Independent Director

    • Tenure: 7.3yrs
    • Compensation: S$10.70m
  • Tih Lee (55yo)

    Non-Executive & Non-Independent Director

    • Tenure: 16.3yrs
    • Compensation: S$221.00k
  • Dua Lai (74yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: S$312.00k
  • Ngiap Tan (73yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: S$325.00k
  • Sang Ooi (72yo)

    Chairman of the Board

    • Tenure: 4.9yrs
    • Compensation: S$1.66m
  • Pramukti Surjaudaja (57yo)

    Non-Executive & Non-Independent Director

    • Tenure: 14.2yrs
    • Compensation: S$188.00k
  • Parwati Surjaudaja (54yo)

    President Director & CEO of Bank OCBC NISP

    • Tenure: 10.7yrs
    • Compensation: S$202.00k
  • Hwee Tin Kng (52yo)

    CEO & Executive Director of OCBC Wing Hang Bank (China) Ltd

    • Tenure: 6.7yrs
  • Kim Chiu Chua (65yo)

    Non-Executive Independent Director

    • Tenure: 1.9yrs
    • Compensation: S$280.00k

Company Information

Oversea-Chinese Banking Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oversea-Chinese Banking Corporation Limited
  • Ticker: OVCH.Y
  • Exchange: OTCPK
  • Founded: 1912
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: S$46.241b
  • Listing Market Cap: S$33.370b
  • Shares outstanding: 4.32b
  • Website: https://www.ocbc.com

Number of Employees


Location

  • Oversea-Chinese Banking Corporation Limited
  • No. 10-00 OCBC Centre East
  • 63 Chulia Street
  • Singapore
  • 49514
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OVCH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
O39SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
OCBADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
OVCH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2009

Biography

Oversea-Chinese Banking Corporation Limited provides financial services in Singapore, Malaysia, Indonesia, Greater China, other parts of the Asia Pacific, and internationally. The company's Global Consumer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:11
End of Day Share Price2019/08/19 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.