DBS Bank: Technicaly Bearish!

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DBS Bank is forming a Falliing Wedge and is also technically bearish as the stock price is trading below 20D, 50D and 200D SMA. The 20D/200D SMA death cross is going to happen in next few days inevitably which is another bearish signal.

  • Next Immediate Support: $13.72 (38.2% Fibonacci Retracement Level)
  • Next Immediate Resistance: $14.00 (200D SMA, Falling Wedge Resistance & Psychological Resistance)

Key Statistics for DBS

Current P/E Ratio (ttm) 9.9467
Estimated P/E(12/2012) 9.8928
Relative P/E vs.FSSTI 0.8155
Earnings Per Share (SGD) (ttm) 1.3914
Est. EPS (SGD) (12/2012) 1.3990
Est. PEG Ratio 0.8678
Market Cap (M SGD) 33,721.57
Shares Outstanding (M) 2,436.53
30 Day Average Volume 3,164,300
Price/Book (mrq) 1.1073
Price/Sale (ttm) 3.1827
Dividend Indicated Gross Yield 4.05%
Cash Dividend (SGD) 0.2800
Last Dividend 08/15/2012
5 Year Dividend Growth -0.58%
Next Earnings Announcement 02/08/2013
Continue ReadingDBS Bank: Technicaly Bearish!

Singapore Banks average 15% total return over past year

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Source: SGX Gateway

Singapore Exchange (SGX) lists three locally incorporated banks, DBS Group (D05), OCBC (O39) and UOB (U11) which together make up a quarter of the Straits Times Index (STI) market capitalisation.  A key measure of a bank is its tier 1 capital to risk weighted asset ratio. Tier 1 capital represents the best form of capital and the higher the ratio to risk weighted assets, the more money the bank has to support the risks it takes.  Together, the Singapore banks maintain a Tier 1 capital ratio to risk weighted assets of 13.6%, as reported by the IMF Global Financial Stability Report last week.  
 
Singapore maintains the highest Tier 1 to risk weighted asset ratio across Asia, with Tier 1 capital for Japan Banks at 12.3% and Hong Kong Banks at 10.4%.  It is a key measure of the strength of a bank, which is why the annual Bloomberg global rankings place 40% of the scoring emphasis on it. These rankings placed OCBC at #1, UOB at #7 and DBS at #8 in 2012. The total return of the three banks over the past year averages to 15%with individual performances as follows:

  1. DBS Group Holdings (D05) accounts for 9.2% of the STI market capitalisation. The 2012 World’s Strongest Bank rankings from Bloomberg noted DBS maintained a 12.9% ratio of Tier 1 capital to risk weighted assets. DBS has generated a total return of 19.6% in the past year, compared to an average annualised total return of 8.1% over the ten year period ending September 2012. DBS currently maintains an indicative dividend yield of 3.95%.
     
  2. OCBC (O39) accounts for 8.5% of the STI market capitalisation. This 2012 World’s Strongest Bank rankings from Bloomberg noted OCBC maintained a 14.4% ratio of Tier 1 capital to risk weighted assets. OCBC has generated a total return of 14.4% in the past year. This compares to an average annualised total return of 14.2% over the ten year period ending September 2012. OCBC currently maintains an indicative dividend yield of 3.33%.
     
  3. United Overseas Bank (U11) accounts for 8.1% of the STI market capitalisation. This year’s World’s Strongest Bank ranking from Bloomberg noted UOB maintain a 13.5% ratio of Tier 1 capital to risk weighted assets. UOB has generated a total return of 11.2% in the past year, compared to an average annualised total return of 9.6% over the ten year period ending September 2012. UOB currently maintains an indicative dividend yield of 3.17%.
Continue ReadingSingapore Banks average 15% total return over past year