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3 things to Know about Oversea-Chinese Banking Corporation

Oversea-Chinese Banking Corp Limited (SGX: O39) or OCBC for short, is one of the three major banks based in Singapore, along with DBS Group Holdings Ltd (SGX: D05) and United Overseas Bank Ltd (SGX: U11).

OCBC is the longest-established bank in Singapore. It also has operations in 18 countries and regions

Investors or potential investors of OCBC might want to know the following three things about the company.

Latest earnings result

In the latest quarterly result announced, OCBC reported lower quarterly revenue and net profit of $2.1 billion and $856 million. They were down by 2% and 15% respectively, compared to last year.

Net income declined by 15% year on year, mainly due to increase in impairment of assets.

On a positive note, OCBC capital adequacy ratios stood favourable against regulatory requirements. For example, common equity Tier 1 Ratio stood at 14.6%, as compared to the required 6.5%.

For more information about the latest quarterly result, please click here.

Dividend history

OCBC has consistently paid dividends since 1992. The payout rose from 15 cents per share in 2001 to 36 cents per share in 2015.

At the latest price of $8.52, dividend yield is 4.23%.

Valuation

OCBC is currently trading at a P/E and price to book ratios of 9.37 and 1.08, respectively.

In the past 5 years, these two ratios reach a high of 13.7 and 1.43, respectively.

OCBC’s share price has fallen by about 20% on a 12 month basis, resulting to a valuation that is at the lower end on the two popular gauges of valuation.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.