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3 Things Investors Should Know About United Overseas Bank Ltd Now

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

Here are three things about United Overseas Bank, or UOB in short, that investors may want to know.

1. Latest earnings result

UOB released its latest quarterly results late last month.

In the first-quarter of 2016, the bank reported a slight 0.7% year-on-year increase in its revenue to $1.97 billion. But, its net profit declined by 4.4% year-on-year to $766 million due to higher expenses.

On a more positive note, UOB’s non-performing loan (NPL) ratio for the first-quarter of 2016 is 1.4%, which is on par with the NPL ratio for the last-quarter of 2015. In general, it’s important that a bank does not see any sustained increases in its NPL ratio.

2. Dividend history

UOB has consistently paid an annual dividend over its last 10 completed fiscal years. According to data from S&P Global Market Intelligence, the bank’s total dividend has also increased from S$0.60 per share in 2005 to S$0.90 in 2015. It’s worth pointing out too that UOB had managed to continue dishing out a dividend even throughout the Great Financial Crisis of 2007-09.

At the bank’s latest share price of $17.77, it has a dividend yield of 5.1% thanks to its dividend in 2015.

3. A low valuation in relation to history

UOB is currently trading at a price-to-book ratio of 0.98.

UOB's price-to-book (PB) ratio from 9 May 2011 to 9 May 2016
Source: S&P Global Market Intelligence

As the chart above shows, UOB’s current PB ratio of less than 1 is near the lower-end of the bank’s valuation range over the last five years.

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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.