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Which Singapore-Listed Bank Had the Most Resilient Set of Q3 Results for FY2022?

Which Singapore-Listed Bank Had the Most Resilient Set of Q3 Results for FY2022?

All 3 Singapore-listed banks (in DBS, UOB, and OCBC) have already released their business updates for the third quarter ended 30 September 2022. As I have investments in them, I have posted reviews when their business updates were made available and you can find them in the respective posts below:

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

My focus in this post is to put the 3 banks’ results side-by-side to find out which one reported the most resilient set of results both on a quarter-on-quarter (Q3 FY2021 vs. Q3 FY2022) and on a year-on-year (9M FY2021 vs. 9M FY2022), as well as which is currently the ‘cheapest’ (based on their current valuations.)

Before I begin, a quick recap on the 3 banks’ performance for the 2nd quarter, as well as for the first half of the financial year – both UOB and OCBC stood out in terms of improvements in its financial results, as well as in its key financial ratios, with OCBC being ‘cheapest’ among the three.

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My Review of OCBC’s Q3 FY2022 Business Update

My Review of OCBC’s Q3 FY2022 Business Update

Early this morning (05 November 2022), Overseas-Chinese Banking Corporation Limited (SGX:O39), or OCBC for short, is the last of the 3 Singapore-listed bank to release its business update for the third quarter of FY2022 ended 30 September 2022 (you can check out my review of UOB’s Q3 FY2022 business update here, and DBS’ Q3 FY2022 business update here.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Just to recap – in the previous quarter (i.e. Q2 and 1H FY2022), the performance of its non-performing loans ratio (where it saw a 0.1 percentage point, or pp for short, decline to 1.3%, despite the economic headwinds) stood out. Also, the 12.0% increase in its interim dividend payout to 28.0 cents/share was also a pleasant surprise (do note that for the current quarter under review, there are no dividend payouts declared as the bank pays out dividends on a half-yearly basis.)

Will its results this time round spring up any more pleasant surprises? Let us find out in this post, where you’ll read about my review of the Singapore-listed bank’s latest Q3 and 9M business update (as the bank have also changed to reporting its full financial statements on a half-yearly basis, it only provided a snippet of its financial performances this time round) in terms of its key financial performances and ratios:

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DBS Group Holdings’ Q3 FY2022 Business Update – What You Need to Know

DBS Group Holdings’ Q3 FY2022 Business Update – What You Need to Know

Singapore’s largest bank in DBS Group Holdings Limited (SGX:D05) is the second bank to release its business update for the third quarter of the financial year 2022 ended 30 September 2022 early this morning (03 November 2022.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

Similar to UOB (which have published its Q3 FY2022 business update last Friday, and you can check out my review about it here), for the current quarter under review, it only released a snippet of some of the key financial figures (as the bank have switched to reporting its full financial results on a half-yearly basis), which we will be looking at, along with some of the key financial ratios in this post. I’ll also be sharing my thoughts about the bank’s latest ‘report card.’

Let’s begin:

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Which Singapore-Listed Bank Had the Most Resilient Set of Q1 FY2021 Results? (guest post)

Which Singapore-Listed Bank Had the Most Resilient Set of Q1 FY2021 Results? (guest post)

Which Singapore-Listed Bank Had the Most Resilient Set of Q1 FY2021 Results?

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2,000 followers.

All 3 Singapore-listed banks (in DBS, UOB, and OCBC) have reported their business updates for the first quarter of the financial year 2021 ended 31 March 2021.

As a shareholder of all 3 banks, I have reviewed and posted a summary when their results were released. In case you’ve missed out, you can find them below:dbs-bank-blog-imageDBS: https://www.thesingaporeaninvestor.sg/2021/05/04/dbs-group-holdings-q1-fy2021-business-updates-key-highlights-and-my-thoughts/

uob-bank-blog-imageUOB: https://www.thesingaporeaninvestor.sg/2021/05/06/my-review-of-uobs-latest-q1-fy2021-business-update/

Views of OCBC Bank Branches Ahead Of EarningsOCBC: https://www.thesingaporeaninvestor.sg/2021/05/07/overseas-chinese-banking-corporations-q1-fy2020-business-update-key-highlights-and-thoughts/

In this post, I’ll be putting the 3 banks’ key financial results, as well as its key financial ratios side-by-side to find out which one had the strongest set of results for the current quarter under review. Also, you’ll learn about which bank is currently the ‘cheapest’ based on its current valuations.

Let’s begin…

Key Financial Results (Q1 FY2020 vs. Q1 FY2021)

In this section, you will find a comparison of the 3 banks’ key financial results for the first quarter of the financial year 2021 ended 31 March 2021, compared against that reported in the same time period last year – i.e. first quarter of the financial year 2020 ended 31 March 2020: …

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4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

By now, you probably have heard about India’s central bank proposing a scheme to merge the ailing Lakshmi Vilas Bank (LVB) with DBS Bank.

Many investors have been crying foul about the bad deal etc. On the analysts side, there have been a mixed reaction as shown from the Biz Times article here.

But on an objective note, here’s 4 key things investors need to know about the proposed DBS – Lakshmi Vilas Bank (LVB) merger (there are plenty of snippets from various sources below and you can refer to the url links posted at the end).

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 913 followers.

1) What led to DBS – Lakshmi Vilas Bank (LVB) merger?

This is believed to be the first time that the India central bank has turned to a foreign lender to rescue a failing local bank, in a move that took the industry by surprise.

Lakshmi Vilas Bank has been struggling with financial decline and red ink for the past three years. It incurred a loss of around $150 million in the 12 months to March 31. Its net worth has also shrunk while unpaid loans have increased.

India’s central bank advised LVB in September last year to reduce bad assets and bring in new capital.

However, after many months of futile discussion talks and sensing that things are deteriorating, The central bank stepped in to bail them out.

RBI (Reserve Bank of India) then did the following on 17 Nov 2020:

  • Imposed a one-month moratorium on LVB
  • Capped deposit withdrawals at 25,000 rupees and
  • Unveiled the proposed merger with DBS soon after.

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OCBC – Summary of Q3 and 9M FY2020 Business Update (Guest Post)

OCBC – Summary of Q3 and 9M FY2020 Business Update (Guest Post)

How is OCBC faring this third quarter? Let’s find out.

Salaries at OCBC in Singapore: what you'll really get paid | eFinancialCareers

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1433 followers.

Besides DBS (you can check out my summary of its latest Q3 and 9M FY2020 results here), Overseas-Chinese Banking Corporation or OCBC (SGX:O39) also provided its business updates for the third quarter as well as for the first 9 months of the financial year 2020 (ended 30 September 2020) early this morning before trading hours.

As a shareholder of the longest established bank in Singapore, I have studied the related documents and in this post, you will find a summary of the bank’s latest financial statistics, key financial ratios, along with my personal thoughts to share.

Let’s get started…
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Key Summary from UOB’s 2Q and 1H FY2020 Results (Guest Post)

Key Summary from UOB’s 2Q and 1H FY2020 Results (Guest Post)

Along with DBS Group Holdings, United Overseas Bank (SGX:U11) also released its results for the second quarter and first half of the financial year 2020 ended 30 June 2020 yesterday morning before trading hours.

7 more UOB branches in shopping malls and retail areas to reopen ...

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241  followers.

As a shareholder of the Singapore bank, I have studied its latest update in detail and in today’s post, I will be sharing with you the most important aspects to take note of, my personal thoughts (about the bank’s latest results), along with important information about the bank’s dividends (both cash and scrip) to take note of (especially if you are a shareholder of the bank)…

Key Financial Results (2Q FY2019 vs. 2Q FY2020, and 1H FY2019 vs. 1H FY2020)

In this section, we will be looking at the bank’s key financial results both on a quarter-on-quarter (q-o-q) as well as on a year-on-year (y-o-y) basis:

2Q FY2019 vs. 2Q FY2020:

2Q FY2019 2Q FY2020 % Variance
Total Income
(S$’bil)		 $2.58b $2.26b -12.5%
– Net Interest
Income (S$’bil)		 $1.65b $1.46b -11.5%
– Net Fee &
Commission Income
(S$’bil)		 $0.53b $0.45b -15.1%
– Other Non-Interest
Income (S$’bil)		 $0.40b $0.36b -10.0%
Net Profit
(S$’bil)		 $1.17b $0.71b -39.7%
Net Profit
Attributable to
Shareholders (S$’bil)		 $1.17b $0.70b -39.8%

At one look, you can conclude that on a q-o-q basis, it was a weaker one for the bank. …

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Why OCBC Q3FY19 Profit Results Might Fall Double-Digit Percentage YoY (Guest Post)

Why OCBC Q3FY19 Profit Results Might Fall Double-Digit Percentage YoY (Guest Post)

OCBC is scheduled to announced its results on the 5th Nov (Tuesday morning) before the start of market trading.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and 1800+ followers.

UOB announced its Q3 results this morning which gives a big hint of what is to come for the other two banks.

The drop in NIM and increase in NPA is worst than expected, and if not for the loan growth segment in the Singapore that helps, it might look like a worsen Q3.

This is 5 reasons why I think OCBC Q3 FY19 profit results are going to fall double-digit in terms of percentage year on year.

Image result for ocbc

1) Net Interest Margin Compressed QoQ and YoY

In FY18, OCBC’s Net Interest Income contributes 60% to their total revenue while Non-Interest Income contributes the rest of the other 40%, so we’ll approximately use that as a gauge.

Q2FY19 Net Interest Income came in at $1,588m while Q3FY18 Net Interest Income came in at $1,505m. …

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The 2008 Financial Crisis: What Caused the Financial Crisis & Recession?

The 2008 Financial Crisis: What Caused the Financial Crisis & Recession?

A decade ago, the 2008 financial crisis wreaked havoc on global markets as well as the world. The financial crisis has sunk some banks and paralyzed markets, resulting in staggering losses for many people out there. It is also considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

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How did it all happen? 

After 10 years, the causes and repercussions remain tricky to comprehend. What exactly set it into motion involves a whole series of complex questions with a number of interlocking answers.

Here is a quick infographic attempting to detail what caused the 2008 Financial Crisis:

2008 Financial Crisis Infographic by InvestingNote
2008 Financial Crisis Infographic by InvestingNote

 It all began with the use of securitization. Securitization simply means the pooling of debt and then issuing assets based upon that debt.

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