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An Overview of Oversea-Chinese Banking Corp Limited’s Track Record in Growing Its Business

Oversea-Chinese Banking Corp Limited (SGX: O39), or OCBC, is one of the three main local banks listed in Singapore.

One of the things I like to do when analysing a company is to study its track record. The past is no guarantee of the future, but historical information is the most reliable thing we can use as our basis to forecast what lies ahead.

It may therefore be useful to consider this quick overview of OCBC’s historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2014 (financial year ended 31 December 2014) to FY2018 (financial year ended 31 December 2018):

Source: OCBC 2018 Annual Report

Total income increased from S$8.34 billion to S$9.70 billion, up by 16.3% during the period. This translates to a compound average growth rate (CAGR) of 3.8%.

Secondly, operating profit has grown from S$5.08 billion in 2014 to S$5.49 billion in 2018, up by a total of 8.1% during the period. This translates to a CAGR of 2.0% in the last five years. Similarly, net profit attributable to equity holders has grown by a CAGR of 4.0% during the period.

Thirdly, OCBC’s dividend per share (DPS) grew marginally, from S$0.36 cents to S$0.43 cents during the period.

In sum, OCBC delivered a stable track record with revenue, profitability, and dividend payments coming in higher over the five-year period.

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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. The Motley Fool Singapore recommends Oversea-Chinese Banking Corp Limited.