View more search results. The coronavirus pandemic continues to worsen in Singapore, with new infections confirmed over the long Easter weekend. This takes the total number of Covid cases in the country to 2, IG is a world-leading online trading and investments provider for thousands of financial markets.
With CFDs, you can buy long or sell short on OCBC shares and other major stocks depending on whether you think prices will rise or fall.
Participation rate in OCBC's scrip dividend scheme made up 75.2% of shareholdings
Start today by opening an account on IG's market-leading trading platform. Apart from the government stimulus, Singapore banks received a further boost after the Monetary Authority of Singapore MAS announced on 07 April a series of fiscal measures aimed at helping financial institutions to focus on dealing with issues related to the Covid pandemic and supporting their customers during this time. Maybank analyst Thilan Wickramasinghe named OCBC as his preferred equity bank, given its gearing to Southeast Asia and a deposit mix that should see relatively lower impact from falling rates.
Furthermore, he noted that even prior to the new regulatory measures, Singapore banks were already well capitalised and had high levels of liquidity at around a CET-1 ratio that is basis points higher than the regulatory minimum. Are you bullish or bearish on OCBC? Start today by opening an IG account. Finally, he stated that while operating conditions may remain volatile as this pandemic progresses — trading below 1x E PB with a dividend yield amongst the highest in the region, he is still confident that the Singapore banks offer defensive value at this point in the cycle.
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Although they are all local banks, each of them has different composition in business segment and geographical exposure. As we all know, global interest rate will be having multiple rounds of interest rate cut and hence lower interest margin for the banks. So, a bank with lower exposure to net — interest income tends to be more stable in earnings.
OCBC has the lowest net — interest income among the three banks. Its earnings will be less sensitive to interest rate. In terms of geographical exposure, a bank that has less exposure to the Greater China should be more stable in earnings, given that the China economy has been severely affected by Covid UOB has the lowest income exposure to the Greater China among the three banks. It should be be less affected by the slowdown in China. Although the share prices for the banks are dropping, all the three banks actually reported better financial results for FY With higher earnings reported, all three banks have declared higher dividends for FY As many investors are concerned about an economic slowdown, investors have to ensure that banks have strong financial stability to withstand the economic impact for years to come.
For banks, we have to use capital adequacy ratio instead of debt to equity ratio. Capital adequacy ratio CAR is critical to ensure that a bank has enough cushion to absorb a reasonable amount of losses before it becomes insolvent.
All three banks have quite a fair bit of buffer from the MAS guidelines. This shows that Singapore banks should be able to absorb losses from non-performing loans NPL.
For NPL ratio, all three banks have the same ratio at 1. Given the current price correction, it is good that we can identify if any of the banks are trading at low valuations and hence good prices to enter. For banks, I prefer to use relative price-to-book valuation and compare to their historical average. The key idea is that in the long run, the valuation should move back to historical average level because of mean reversion effects in the markets.
Based on the share prices at 9 Marchall three banks are trading at price-to-book ratios lower than the historical average.SG investors. SGD 8. Share Price as of: SI Bloggers Say. SI Company Announcements. Perpetual Capital Securities first callable in Notice of Use of Treasury Shares.
Announcement of Cessation of Head of Global Treasury. Grant of Share Awards. Subscription of shares in Boost Holdings Sdn Bhd. Change of Auditor. Annual General Meeting::Voluntary. Dissolution of a wholly-owned subsidiary. Issue of Annual Report Annual Reports and Related Documents. Daily Share Buy-Back Notice. Change of Composition of Audit Committee. Members' voluntary liquidation of subsidiaries in Hong Kong. Change of composition of Audit Committee.
Completion of acquisition of Pacific Mutual Fund Berhad. Members' Voluntary Liquidation. Dissolution of subsidiary companies in Hong Kong. Dissolution of Premier Investment Private Limited.
Dissolution of an associated company. Incorporation of subsidiary in the Republic of Indonesia. Appointment of Assistant Secretary. Incorporation of wholly-owned subsidiary in the People's Republic of China.
Dissolution of subsidiary companies in Jersey. OCBC collaborates in a first-of-its-kind venture with leading Chinese corporat. Disclosure of Inte.SG investors. In this respect, Singapore banks are still relatively less constrained than European banks for example, which have been restricted on all dividends and share buybacks this year. See MAS announcement.
For banks which have paid interim dividends for 1Q20 e. DBSthe dividend restriction and offering of scrip will be extended for another quarter until 1Q The bank notes that its capital and liquidity are well above regulatory requirements, and its balance sheet has also been fortified by high levels of allowance reserves. Given that 1Q20 dividends SGD0. Disappointing near term, but stronger capital build-up should provide room for higher dividends in the future.
In our previous sector updates Singapore Banks - OCBC Investment Navigating Multiple Headwindswe have highlighted downside risks for dividends even for well capitalised banks or firms with stronger balance sheets as capital preservation will be prioritised as the downturn becomes more prolonged and deeper. Our advice for investors to moderate dividend expectations during this downturn and diversify their portfolio is unchanged given the extended Covid recovery path.
For the banking sector, time will be needed for asset quality deterioration to pan out. As a recap, we expect a deteriorating credit cycle from to While valuations are undemanding for long-term investors, we see limited catalysts near term and expect a more meaningful sector performance when the macro growth outlook picks up. Newer Post Older Post Home.Meanwhile, HCSS on Wednesday night said its minority shareholder Serene Tiong has lodged a summons for leave to appeal against the High Court decision that was in favour of surgeon Julian Ong's defamation suit against her.
Mr Ong was most recently the executive senior director of Great Eastern Financial Advisers and has 28 years of experience in the insurance industry. Frasers Centrepoint Trust FCT : Over half of FCT's gross proceeds raised from its private placement has been allocated to temporarily pare down its revolving credit facilities, its manager said.
Hong Leong Finance: Customers representing 20 per cent of Hong Leong Finance's loan portfolio have opted for deferred repayments amid the pandemic, The Business Times reported on Thursday. But all such loans, except the government-assisted Enterprise Singapore loans, are secured. Raffles Medical Group: The mainboard-listed company has appointed Kenneth Wu and Chong Ee Rong as co-deputy managing directors of operations and commercial respectively.
This came on the back of higher sales volume of iron ore, the company said. We have been experiencing some problems with subscriber log-ins and apologise for the inconvenience caused. Until we resolve the issues, subscribers need not log in to access ST Digital articles. But a log-in is still required for our PDFs. Skip to main content. Share gift link below with your friends and family.
Link Copied! Copy gift link. Please sign up or log in to continue reading the article. Sign up. Already have an account? Log in. Resend verification e-mail. Subscribe now. Branded Content.SG investors. The strong sequential rebound was due to: MTM gains from Great Eastern Holdings SGX:G07which are reflected in increased contributions from insurance and higher net trading income, and moderation in credit costs by 32bp q-o-q to 67bp big blow from Hin Leong in 1Q Progressive reopening will provide momentum for an economic recovery.
Maintain BUY. We expect muted loan growth of 2. However, bookings for residential mortgages have slowed and competition has intensified, resulting in some customers repaying after securing refinancing. We expect NIM to have collapsed by 11bp y-o-y and 8bp q-o-q to 1.
US dollar-denominated loans accounted for The synchronised fall of these benchmark interest rates has caused significant compression of loan yields. The equity market bottomed in the third week of March. Great Eastern 's investment portfolios are expected to register mark-to-market MTM gains. Overall, we expect credit costs of 67bp in 2Q20 2Q 17bp, 1Q 99bp. The strong sequential rebound is generated by: MTM gains from Great Easternwhich reflects increased contributions from insurance and higher net trading income, moderation in credit costs by 32bp q-o-q to 67bp suffered big blow from Hin Leong in 1Q OCBC has halved the salary credit bonus interest rates for its savings accounts from 1.
The bank has also stopped offering credit card spend bonus interest previously at 0. Management previously guided that NPL ratio will deteriorate to 2. Management will strive to maintain DPS at current 56 S cents per year, subject to review every six months.
We increase our OCBC 's net profit forecast for marginally by 1. We expect interim dividend for 1H20 to be reduced by 7.3 Singapore Stocks to Buy Now Before It's Too Late
We expect full-year DPS for to be 52 S cents. Non-interest income from wealth management, fund management and life insurance will expand in tandem with growing affluence in Asia. Newer Post Older Post Home.Hello, your email is unverified. Please confirm for access to all your SPH accounts. Get our introductory offer at only.
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Singapore stock watch: OCBC, HC Surgical, Medinex, CDL, Frasers Centrepoint Trust
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