OTCPK:OVCH.Y

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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 Analysis

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

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


Market Performance


7 Day Return

-1.4%

OVCH.Y

0.06%

US Banks

2.6%

US Market


1 Year Return

-21.1%

OVCH.Y

-22.0%

US Banks

15.4%

US Market

Return vs Industry: OVCH.Y exceeded the US Banks industry which returned -22.7% over the past year.

Return vs Market: OVCH.Y underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

OVCH.YIndustryMarket
7 Day-1.4%0.06%2.6%
30 Day-4.9%4.5%6.1%
90 Day0.3%5.4%16.6%
1 Year-17.2%-21.1%-19.3%-22.0%17.8%15.4%
3 Year-16.8%-24.2%-12.6%-19.6%43.9%34.7%
5 Year-2.2%-17.8%11.9%-1.6%76.2%57.3%

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 compared to its fair value and its price relative to the market?

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OVCH.Y ($12.5) is trading below our estimate of fair value ($14.06)

Significantly Below Fair Value: OVCH.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OVCH.Y is good value based on its PE Ratio (7.7x) compared to the US Banks industry average (9.6x).

PE vs Market: OVCH.Y is good value based on its PE Ratio (7.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: OVCH.Y is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: OVCH.Y's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

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

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OVCH.Y's forecast earnings growth (4.8% per year) is above the savings rate (2.2%).

Earnings vs Market: OVCH.Y's earnings (4.8% per year) are forecast to grow slower than the US market (22.6% per year).

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

Revenue vs Market: OVCH.Y's revenue (6.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: OVCH.Y's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OVCH.Y's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OVCH.Y has a high level of non-cash earnings.

Growing Profit Margin: OVCH.Y's current net profit margins (48.2%) are higher than last year (47.5%).


Past Earnings Growth Analysis

Earnings Trend: OVCH.Y's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: OVCH.Y's earnings growth over the past year (7.5%) exceeds its 5-year average (5.5% per year).

Earnings vs Industry: OVCH.Y earnings growth over the past year (7.5%) exceeded the Banks industry -3%.


Return on Equity

High ROE: OVCH.Y's Return on Equity (10.3%) is considered low.


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


Financial Institutions Analysis

Asset Level: OVCH.Y's Assets to Equity ratio (10.1x) is moderate.

Allowance for Bad Loans: OVCH.Y has a low allowance for bad loans (63%).

Low Risk Liabilities: 70% of OVCH.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: OVCH.Y has an appropriate level of Loans to Assets ratio (53%).

Low Risk Deposits: OVCH.Y's Loans to Deposits ratio (84%) is appropriate.

Level of Bad Loans: OVCH.Y has an appropriate level of bad loans (1.4%).


Next Steps

Dividend

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

6.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OVCH.Y's dividend (6.48%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: OVCH.Y's dividend (6.48%) is in the top 25% of dividend payers in the US market (4.48%)


Stability and Growth of Payments

Stable Dividend: OVCH.Y's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.5%), OVCH.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OVCH.Y's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Banks industry.

Management

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

9.3yrs

Average management tenure


CEO

Samuel Tsien (65 yo)

8.33yrs

Tenure

S$11,079,557

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

Compensation vs Market: Samuel's total compensation ($USD8.06M) is about average for companies of similar size in the US market ($USD11.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nag Tsien
Group CEO and Executive & Non-Independent Director8.33yrsS$11.08m0.045%
SGD 12.4m
Siew Peng Tan
Executive VP & CFO8.67yrsno datano data
Kun Kin Lam
Head of Global Treasury & Investment Banking and Senior EVPno datano data0.058%
SGD 16.1m
David Cheng
Head of Corporate Finance4.75yrsno datano data
Khiang Tong Lim
Head of Group Operations & Technology10.25yrsno datano data
Collins Chin
Head of Investor Relationsno datano datano data
Yuen Ling
Head of Group Legal & Regulatory Compliance9.92yrsno datano data
Ching Ching Koh
Head of Group Brand & Communications15.75yrsno datano data
Poh Wah Ho
Head of Group Human Resources5.08yrsno datano data
Wei Hong Ching
Deputy President of Global Wealth Management & Consumer Banking0.58yrno data0.0086%
SGD 2.4m
Vincent Soh
Head of Group Property Management16.17yrsno datano data
Ti Liang Goh
Head of Global Commercial Banking16.33yrsno datano data

9.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: OVCH.Y's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nag Tsien
Group CEO and Executive & Non-Independent Director8.33yrsS$11.08m0.045%
SGD 12.4m
Parwati Surjaudaja
President Director & CEO of Bank OCBC NISP11.67yrsS$202.00kno data
Joo Yeow Wee
Non-Executive & Independent Director6.58yrsS$302.40k0.0018%
SGD 499.2k
Beng Seng Koh
Non-Executive Non-Independent Director0.83yrS$48.11k0.000030%
SGD 8.3k
Tih Shih Lee
Non-Executive & Non-Independent Director17.33yrsS$223.19k0.26%
SGD 70.6m
Ngiap Tan
Independent Non-Executive Director6.92yrsS$302.40k0.031%
SGD 8.6m
Sang Ooi
Independent Chairman of the Board5.92yrsS$1.70m0.0012%
SGD 333.7k
Pramukti Surjaudaja
Non-Executive & Non-Independent Director15.17yrsS$168.16k0.0018%
SGD 493.7k
Wee Ghee Quah
Independent Director8.58yrsS$187.31k0.0013%
SGD 344.8k
Yen Yen Tan
Non-Executive & Independent Director0.58yrno datano data
Kwee Fong Hon
Non-Executive Independent Director4.5yrsS$223.19k0.00055%
SGD 151.7k
Kim Chiu Chua
Non-Executive Independent Director2.92yrsS$257.40k0.00032%
SGD 88.3k

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: OVCH.Y's board of directors are considered experienced (6.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

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$37.929b
  • Listing Market Cap: S$27.580b
  • Shares outstanding: 4.41b
  • 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 Analysis2020/08/05 23:59
End of Day Share Price2020/08/05 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.