OCBC Share Price and Stock Investing Info | Focus on Singapore Stock Market Today
What is OCBC Bank?
OCBC is a multinational company that offers financial services and banking services in multiple countries. The name is an abbreviation for Oversea-Chinese Banking Corporation. The bank is currently the second largest financial services provider in Southeast Asia. It focuses on multiple areas including financial management, wealth management, commercial banking, stock broking, asset management and insurance among others.
History and operations
OCBC Bank was founded in 1932, and has since then become one of the biggest banks in the Asian market in terms of market cap. It is also the oldest bank in Singapore and it exists as a result of a merger between three banks previously launched in the city state. OCBC Bank currently has operations in 19 countries and more than 500 branches. (source: ocbc.com)
The bank is based in Singapore but it has extensive operations in other countries including Indonesia, Malaysia and China. OCBC is also listed on the Singapore Exchange (SGX) where it trades under the ticker O39.SI.
OCBC Bank’s management
Great leadership has been a key pillar in helping OCBC Bank to fulfil its potential. The company has a strong management team that continues to steer it towards the right direction especially with the increasing market uncertainties. Here is the list of individuals that consists of the bank’s management team.
- Samuel N. Tsien- the Chief Executive Officer.
- Ching Wei Hong- Deputy President.
- Darren Tan- Chief Financial Officer.
- Helen Wong- Deputy President.
- Vincent Choo- Group Risk Management Executive
- Kenneth Lai- Global Treasury
- Na Wu Beng- The CEO of OCBC Wing Hang Bank.
- Elaine Lam- Head of global corporate banking
- Linus Goh- Head of global commercial banking
- Tan Wing Ming- Northeast Asia regional general manager.
- Bahren Shaari- CEO of Bank of Singapore
- Wang Ke- CEO of OCBC Wing Hang Bank Limited China.
- Ga Kok Kim- Head of global investment banking
- Parwati Surdaudaja- the CEO, President and director of Bank OCBC NISP.
- Ong Eng Bin- CEO OCB Bank Malaysia
- Jason Ho- Group Human Resources
- Tan Chor Sen- head of global enterprise banking
- Sunny Quek- Head of Consumer financial services in Singapore
- Loretta Yuen- Head of Group legal and regulatory compliance
- Goh Chin Lee- Group Audit head.
- Lim Khiang Tong- Head of group operations and technology.
- Melvyn Low- Head of global transaction banking.
- Peter Yeoh- Group secretariat
- Koh Ching Ching- Global brand and communications.
OCBC Bank Share price and performance
OCBC share price closed the latest trading session on at 10.26 SGD with a market cap of 45.386 billion SGD. The stock price has a 52-week low of 7.80 SGD and a 52-week high of 11.14 SGD. The stock demonstrated an overall bullish performance in January 2020 with the bulls pushing the stock from a monthly low of 10.04 SGD to a monthly high of 10.73 SGD.
OCBC stock had an underwhelming performance especially in the past 12 months due to the pandemic and the resulting economic pressure. The stock tanked from a high of 11.06 SGD in February 2020 and was trading at 8.36 by Mid-March. The company’s share price entered a recovery bull run in the fourth quarter of 2020, at around the same time that the markets were also recovering. The stock currently has a trailing 12-month PE ratio of 10.11 SGD and a TTM EPS of 1.02 SGD. (source: zuuonline.sg)
The OCBC share price is currently trading near the same levels at which it traded in 2015. It peaked at 13.96 SGD in 2018. Although there have been some instability over the last five years, the stock has managed to trade at healthy levels rather than losing too much value. That bounce back especially from the 2020 economic slump is courtesy of the bank’s strong financial position, good management and economic conditions also come into play.
OCBC dividend policy
OCBC Bank maintains a strong commitment to generating value for shareholders. The company managed to deliver a dividend yield of more than 3 SGD every year from 2015 to 2019. It reported an annual dividend yield of 3.66% in 2015, 4.19% in 2016, 3.46% in 2017, 3.57% in 2018 and 4.75% in 2019. The actual dividend payout has improved significantly especially in the last decade. For example, the final dividend issued in 2008 was 14 cents per share (SGD), while the final dividend payout in 2018 was 23 cents per share. (source: ocbc.com)
The dividend payout has been increasing gradually over the years. It reached the 15 cents per share threshold in 2010 and 17 cents per share by 2012. The final dividend in 2019 was 28 cents per share, highlighting good incremental dividend returns which represents positive investor sentiments. Unfortunately, 2020 was quite a challenging year and it is no surprise that the dividend payout took a hit. OCBC announced an interim dividend of 15.9 cents per share in August 2020.
Mr. Tsien, the company’s CEO, released a statement during the last investor earnings call in which he pointed out that OCBC has been on a recovery path after the tough times in 2020. He however noted that a full recovery is being held back by the echoes of the negative economic impact caused by the pandemic. The CEO hopes that the company will enjoy more visibility in 2021 as the markets recovery completely and regain full capacity.
The company executive hopes that OCBC will enjoy a strong performance in 2021, and perhaps even be in the list of the best stocks in Singapore. Economic recovery does not necessarily guarantee that a stock will be heavily bullish moving forward. It takes a careful mix of good corporate governance, favorable economic conditions, high quality services and a strong customer base.
OCBC managed to make a quick recovery towards the end of 2020 because it had the right measures in place and it reacted adequately to the changing economic conditions. The company hopes to continue in the same spirit. The future is uncertain but OCBC currently seems to be in a good position to move forward. It is a stock that investors should certainly keep an eye on.