Good decision, bro,... but why not UOB or OCBC ?

Subscribed via ATM. Fortunate enough to be in SG over the weekend!

I m holding ocbc. Thinking to add some. Currently 10.78

Okay the price?

Think you gotta decide your own price.

http://www.thesingaporeaninvestor.com/2019...-you-invest-in/

I’m sure you’ve seen a question like this pretty often, “Between the 3 Singapore banks, if you only have money to invest in just one of them, which one should you invest in?”

Other than looking at the current share price movements of the 3 banks, you should also look at the bank’s financial performances over the past couple of years first before making your decision.

In my most recent posts, I have reviewed each of the 3 banks individually – if you have not read them yet, you can check them out by clicking on the respective bank names: DBS | UOB | OCBC

What I’ll be doing in this post is that I’ll be putting the 3 banks’ financial numbers (over the past 5 financial years – from FY2014 to FY2018) side by side, and compare them based on their compound annual growth rate (also known as CAGR for short), and finally, I’ll be looking at the banks’ share prices and current valuations, and do a comparison also to find out at this point in time, which bank is the cheapest.

Are you ready? Let’s begin!

Net Interest Margin (in S$’bil):

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS S$6.32b S$7.10b S$7.31b S$7.79b S$8.96b 7.23%
UOB S$4.56b S$4.93b S$4.99b S$5.53b S$6.22b 6.41%
OCBC S$4.74b S$5.19b S$5.05b S$5.42b S$5.89b 4.44%
DBS has the highest CAGR (at 7.23%) in terms of their Net Interest Income growth over the years, followed by UOB, and then OCBC.

Net Fee and Commission Income (in S$’bil):

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS S$2.03b S$2.14b S$2.33b S$2.62b S$2.78b 6.49%
UOB S$1.75b S$1.88b S$1.93b S$1.87b S$1.97b 2.40%
OCBC S$1.50b S$1.64b S$1.64b S$1.95b S$2.03b 6.24%
Other Non-Interest Income (in S$’bil):

Again, DBS has emerged on top for its Net Fee and Commission Income growth, with a CAGR of 6.49%, followed by OCBC and finally UOB.

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS S$1.27b S$1.56b S$1.85b S$1.51b S$1.45b 2.69%
UOB S$1.15b S$1.24b S$1.14b S$1.16b S$0.93b -4.16%
OCBC S$2.11b S$1.89b S$1.80b S$2.15b S$1.78b -3.34%
DBS is the only bank with a positive CAGR growth for its Other Non-Interest Income over the years.

Total Income (in S$’bil):

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS S$9.62b S$10.80b S$11.49b S$11.92b S$13.18b 6.50%
UOB S$7.46b S$8.05b S$8.06b S$8.56b S$9.12b 4.29%
OCBC S$7.95b S$8.72b S$8.49b S$9.53b S$9.70b 2.78%
DBS has the highest CAGR when it comes to Total Income growth over the years – at 6.50%. UOB came in second at 4.10% and OCBC came in third at 4.06%.

Net Profit After Tax (in S$’bil):

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS S$4.05b S$4.45b S$4.24b S$4.37b S$5.58b 6.62%
UOB S$3.25b S$3.21b S$3.10b S$3.39b S$4.01b 4.29%
OCBC S$4.08b S$4.11b S$3.65b S$4.30b S$4.68b 2.78%
DBS emerged on top for its Net Profit After Tax growth, followed by UOB, and then OCBC.

Return on Equity:

FY2014 FY2015 FY2016 FY2017 FY2018
DBS 10.9% 11.2% 10.1% 9.7% 12.1%
UOB 12.3% 11.0% 10.2% 10.2% 11.3%
OCBC 13.2% 12.3% 10.0% 11.0% 11.5%
Non-Performing Loans:

FY2014 FY2015 FY2016 FY2017 FY2018
DBS 0.9% 0.9% 1.4% 1.7% 1.5%
UOB 1.2% 1.4% 1.5% 1.8% 1.5%
OCBC 0.6% 0.9% 1.3% 1.5% 1.5%
Total Dividend Payout:

The following are the 3 banks’ Total Dividend Payout to shareholders over the years:

FY2014 FY2015 FY2016 FY2017 FY2018 CAGR
DBS 58 cents 60 cents 60 cents 143 cents 120 cents 15.65%
UOB 75 cents 90 cents 70 cents 100 cents 120 cents 9.86%
OCBC 36 cents 36 cents 36 cents 37 cents 43 cents 3.42%
DBS again emerged on top in terms of its CAGR in dividend growth at 15.65%, followed by UOB, and then OCBC.

Current Share Prices and Valuations:

The following at the current share prices (at the time of writing), along with their valuations:

Current Price P/E Ratio P/B Ratio Dividend Yield
DBS S$24.89 10.4 1.2 4.8%
UOB S$24.74 9.7 1.0 4.9%
OCBC S$10.84 10.0 1.0 4.0%
In terms of P/E Ratio, UOB has the lowest P/E Ratio (at 9.7), followed by OCBC and finally DBS.

In terms of P/B Ratio, UOB and OCBC have the lowest P/B Ratio (at 1.0), followed by DBS.

And finally, in terms of their respective Dividend Yields, UOB have the highest dividend yields (at 4.9%), followed by DBS, and then OCBC.

In Conclusion:

While DBS has the highest CAGR in terms of their financial results over the years, but in terms of its current price and valuation, it is also the most expensive of the 3 banks, with UOB being the cheapest.

Congrats, bro,....

Yeah,... look at the details from Prophet too,... for myself,... I think the SG banks has more to drop year-end.

Set a target for yourself. Once hit that price just hit buy. No need to ask people right price or not. Cause in the end is your money and are you happy with the price?

For me personally won't touch them at current price.

You think he does not know this ? You are just stating what he already knows,...

He is wise enough to seek further opinions,... I see you doing this at times too,...

Yes..sometimes i just wan ask further despite the figure shown above.

And it has been some time I invested in Sg share. Bz with work

Yes.. this seems to be very informative.

Lately I park a small portion in Sg Stashaway robotic investing. Hope it won't bring my money into drain.

all still holding Sintel or take capital gain? Reach 3.49 already

This post has been edited by elea88: Jun 25 2019, 10:47 AM

I just manage to break even, I’m having the some question too.

I am still keeping, my average price is $3.00.

When sell, dunno money goes where

You?

monitoring closely. might sell and buy back once i see a turn.

Sorry a bit off topic, but can anyone recommend a low-cost SG broker? Between pre-paid POEMS or FSM, which is better? Both accounts charge SGD 10 per trade. I'm inclined to choose POEMS, as they offer money market fund.

I do not need margin financing. My trading frequency and trading volume are low (less than SGD 500 per month).

Thanks for your input.

Avoid POEMS for stocks. There have quarterly dividend charges.
POEMS only good for unit trust.
Their money market fund is good to open. Other than unit trust and money market fund, they are pretty useless.

FSM better choice. Now with their own money market fund at 1.5% p.a, is quite a good place to park. Cheapest stock exchange is interactive broker. If you have no USD100k, or don't generate min USD10/month trade commission (their commission is in few cents), best to go with whitelabels of interactive broker. More info can be found
https://forum.lowyat.net/topic/3396549

Thank you for your valuable input Ramjade.
I'm actually looking for a broker that offers regular savings plan (monthly deductions from savings account to purchase stocks/ ETF). Apparently only DBS, OCBC, and POEMS offer RSP to purchase stocks/ ETF. Maybank KE has sadly discontinued RSP.

Not worth to do DCA with small amount. Best to save up say SGD4k then DCA every few months.
If you really want to DCA, my suggestion is
1. Use IB (% commission wise still expensive but cheaper vs using SG banks)
2. Stashaway SG
3. Endowus

elea88, gark Havoc Knightmare ShinG3e
Time to close Maybank KE account



This post has been edited by Ramjade: Jul 22 2019, 08:12 PM

Guys anyone think singtel is gone case? Especially for India market or still got chance? Their dividend is not sustainable and may need to cut. Thinking of cut loss and move on.