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Oversea-Chinese Banking Corp Ltd O39

Morningstar Rating
SGD 15.14 −0.19 (1.24%)
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Company Report

Wealth Management and Insurance Are Key Growth Drivers for OCBC

Long-established Oversea-Chinese Banking Corp. is one of the three largest banks in Singapore. It has expanded in the past two decades through acquisitions and we think it could do further mergers and acquisitions in Asia in banking, insurance, or wealth management. OCBC’s private bank division, Bank of Singapore, was established by the acquisition of ING’s private bank when ING exited the Asia region following the global financial crisis. The operation's scale was increased by bolting on Barclays' wealth-management arm in Singapore and Hong Kong and, later, National Australia Bank's wealth-management business. OCBC's bancassurance business was built on the gradual acquisition of Singapore-based insurer Great Eastern. In Indonesia, the bank raised its stake in PT Bank NISP to 85% from 23%, and it bought Wing Hang Bank in Hong Kong in 2014 as a platform to expand its presence in Greater China, on top of its 20% stake in affiliate Bank of Ningbo purchased in 2006.

Price vs Fair Value

O39 is trading at a 412% premium.
Price
SGD 15.33
Fair Value
SGD 86.00
Uncertainty
Medium
1-Star Price
SGD 24.77
5-Star Price
SGD 52.90
Economic Moat
Xplkp
Capital Allocation
Zdkzjvkjx

Bulls Say, Bears Say

Bulls

A robust capital buffer gives OCBC flexibility to raise dividends while pursuing acquisitions.

Bears

Excess capital is weighing on OCBC's ROE.

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News

Trading Information

Previous Close Price
SGD 15.33
Day Range
SGD 15.0215.26
52-Week Range
SGD 12.1715.38
Bid/Ask
SGD 15.14 / SGD 15.15
Market Cap
SGD 68.05 Bil
Volume/Avg
6.9 Mil / 5.5 Mil

Key Statistics

Price/Earnings (Normalized)
9.76
Price/Sales
5.04
Dividend Yield (Trailing)
5.35%
Dividend Yield (Forward)
5.48%
Total Yield
5.65%

Company Profile

Oversea-Chinese Banking Corp. is the longest-established Singapore bank, founded by the merger of three local banks in 1932. OCBC's operations include consumer banking; wealth management and private banking (through its Bank of Singapore subsidiary); small to midsize enterprise and business banking; corporate and institutional banking; and insurance through majority-owned Great Eastern.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
30,800

Competitors

Valuation

Metric
O39
U11
D05
Price/Earnings (Normalized)
9.7610.039.34
Price/Book Value
1.251.271.69
Price/Sales
5.043.985.18
Price/Cash Flow
9.478.629.55
Price/Earnings
O39
U11
D05

Financial Strength

Metric
O39
U11
D05
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
O39
U11
D05
Return on Assets (Normalized)
1.13%1.19%1.38%
Return on Equity (Normalized)
12.41%14.41%17.20%
Return on Invested Capital (Normalized)
Return on Assets
O39
U11
D05
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