Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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<li>
For the year ended 31 Dec 2019, Singapore's three listed banks averaged a net profit of S$5.2 billion, up  10.1% YoY. Among the three, DBS reported the highest FY19 net profit of S$6.4 billion, reflecting a 13.6% YoY increase. 
	 </li>
	<li>
The trio averaged a ROE of 12.1%, versus 11.6% in FY18. The NPL ratio averaged 1.5% as at 31 Dec 2019, unchanged from the previous year. 
	 </li>
	<li>Over the 2019 calendar year, the three banks averaged a total return of 10.0%, bringing their 1Y and 3Y total returns to 3.0% and 41.6% respectively. The two best performers in 2019 were DBS and UOB, with total returns of 15.5% and 12.8% respectively.</li>
</ul>
 
Singapore’s three listed banks, which have a combined market capitalisation of more than S$150 billion, reported their earnings for the full year and quarter ended 31 December 2019 over the last two weeks.

For the full year ended 31 December 2019, the three banks averaged a net profit of S$5.2 billion, up an average 10.1% YoY. Among the three, DBS reported the highest FY19 net profit of S$6.4 billion, reflecting a 13.6% YoY increase.

For the fourth quarter ended 31 December 2019, the trio averaged a 19.4% YoY gain in net profit to S$1.3 billion. OCBC posted the highest YoY percentage growth of 34.2% in net profit to S$1.2 billion for the three-month period.

For FY19, the trio averaged a Return on Equity (ROE) of 12.1%, versus an average of 11.6% in FY18. DBS posted the highest ROE of 13.2%, up from 12.1% in the previous year. The three banks averaged a Non-Performing Loan (NPL) ratio of 1.5% as at 31 December 2019, unchanged from the previous year.

 FY19 and 4Q19 Financial Results 
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			FY19 Net Profit (S$M)
			</td>
			<td>
			YoY Growth (%)
			</td>
			<td>
			4Q19 Net Profit (S$M)
			</td>
			<td>
			YoY Growth (%)
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			6,391
			</td>
			<td>
			13.6
			</td>
			<td>
			1,508
			</td>
			<td>
			14.3
			</td>
		</tr>
<tr>
<td>
			OCBC
			</td>
			<td>
			4,869
			</td>
			<td>
			8.4
			</td>
			<td>
			1,243
			</td>
			<td>
			34.2
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			4,343
			</td>
			<td>
			8.4
			</td>
			<td>
			1,006
			</td>
			<td>
			9.8
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			5,201
			</td>
			<td>
			10.1
			</td>
			<td>
			1,252
			</td>
			<td>
			19.4
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			FY19 ROE (%)
			</td>
			<td>
			FY18 ROE (%)
			</td>
			<td>
			FY19 NPL Ratio (%)
			</td>
			<td>
			FY18 NPL Ratio (%)
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			13.2
			</td>
			<td>
			12.1
			</td>
			<td>
			1.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			OCBC
			</td>
			<td>
			11.4
			</td>
			<td>
			11.5
			</td>
			<td>
			1.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			11.6
			</td>
			<td>
			11.3
			</td>
			<td>
			1.5
			</td>
			<td>
			1.5
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			12.1
			</td>
			<td>
			11.6
			</td>
			<td>
			1.5
			</td>
			<td>
			1.5
			</td>
		</tr>
</tbody></table>
Source: Company data

Outlook

DBS

<ul>
<li>The bank was on track to meet its previous 2020 guidance prior to the outbreak of the novel coronavirus.</li>
	<li>Assuming the outbreak is controlled by summer, we expect a revenue impact of around 1%-2%, and special provisions could rise by a few basis points of loans.</li>
	<li>Our record performance with ROE at a new high of 13.2% demonstrates a franchise that delivers high quality results.</li>
	<li>The increased quarterly dividend proposed by the board reflects the enhanced capacity of our business to generate earnings and reward shareholders.</li>
</ul>
 

OCBC 

<ul>
<li>Looking ahead, the global economic outlook is expected to be weaker than originally expected.</li>
	<li>We are watchful of the impact to our business and customers from the continuing trade tensions, heightened geo-political risks and the COVID-19 outbreak, and will extend support to customers to help them overcome the market challenges.</li>
	<li>OCBC has a solid record of producing stable earnings through economic cycles, and we are confident of delivering sustainable returns to all our stakeholders.</li>
</ul>
 

UOB 

<ul>
<li>Many signs point to more challenging times ahead, including the unfolding impact of the COVID-19 epidemic. To help cushion its impact on our customers, we have implemented a range of relief assistance measures for affected companies, especially SMEs, and mortgage relief for homeowners.</li>
	<li>We believe the region will weather this storm and are confident of ASEAN’s long-term potential. We will continue to invest in our capabilities, including digital, and seize the opportunities arising from the shifting economic environment.</li>
</ul>
 Click <a href="https://links.sgx.com/FileOpen/4Q19_performance_summary.ashx?App=Announcement&amp;FileID=596222">here</a>, <a href="https://links.sgx.com/FileOpen/OCBC_FY19_Financial_Results.ashx?App=Announcement&amp;FileID=597227">here</a> and <a href="https://links.sgx.com/FileOpen/FY4Q19%20UOB%20Group%20Financial%20Report.ashx?App=Announcement&amp;FileID=597223">here</a> for full results releases of DBS, OCBC and UOB. 
 

2019 Performances

Over the 2019 calendar year, the three banks averaged a total return of 10.0%, bringing their one-year and three-year total returns to 3.0% and 41.6% respectively. The two best performers in 2019 were DBS and UOB, with total returns of 15.5% and 12.8% respectively.

The tables below detail SGX’s three listed banks, sorted by market cap.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return 2019 (%)
			</td>
			<td>
			Total Return YTD (%)
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			64,421
			</td>
			<td>
			15.5
			</td>
			<td>
			-3.0
			</td>
		</tr>
<tr>
<td>
			OCBC
			</td>
			<td>
			O39
			</td>
			<td>
			48,715
			</td>
			<td>
			1.7
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			42,993
			</td>
			<td>
			12.8
			</td>
			<td>
			-2.0
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			10.0
			</td>
			<td>
			-1.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			DBS
			</td>
			<td>
			D05
			</td>
			<td>
			5.8
			</td>
			<td>
			57.0
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			OCBC
			</td>
			<td>
			O39
			</td>
			<td>
			-1.3
			</td>
			<td>
			29.6
			</td>
			<td>
			4.8
			</td>
		</tr>
<tr>
<td>
			UOB
			</td>
			<td>
			U11
			</td>
			<td>
			4.5
			</td>
			<td>
			38.0
			</td>
			<td>
			5.0
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			3.0
			</td>
			<td>
			41.6
			</td>
			<td>
			4.9
			</td>
		</tr>
</tbody></table>
 Source: Bloomberg &amp; StockFacts (data as of 20 Feb 20)
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For the year ended 31 Dec 2019, Singapore's three listed banks averaged a net profit of S$5.2 billion, up  10.1% YoY. Among the three, DBS reported the highest FY19 net profit of S$6.4 billion, reflecting a 13.6% YoY increase. 
	 
	
The trio averaged a ROE of 12.1%, versus 11.6% in FY18. The NPL ratio averaged 1.5% as at 31 Dec 2019, unchanged from the previous year. 
	 
	Over the 2019 calendar year, the three banks averaged a total return of 10.0%, bringing their 1Y and 3Y total returns to 3.0% and 41.6% respectively. The two best performers in 2019 were DBS and UOB, with total returns of 15.5% and 12.8% respectively.

 
Singapore’s three listed banks, which have a combined market capitalisation of more than S$150 billion, reported their earnings for the full year and quarter ended 31 December 2019 over the last two weeks.

For the full year ended 31 December 2019, the three banks averaged a net profit of S$5.2 billion, up an average 10.1% YoY. Among the three, DBS reported the highest FY19 net profit of S$6.4 billion, reflecting a 13.6% YoY increase.

For the fourth quarter ended 31 December 2019, the trio averaged a 19.4% YoY gain in net profit to S$1.3 billion. OCBC posted the highest YoY percentage growth of 34.2% in net profit to S$1.2 billion for the three-month period.

For FY19, the trio averaged a Return on Equity (ROE) of 12.1%, versus an average of 11.6% in FY18. DBS posted the highest ROE of 13.2%, up from 12.1% in the previous year. The three banks averaged a Non-Performing Loan (NPL) ratio of 1.5% as at 31 December 2019, unchanged from the previous year.

 FY19 and 4Q19 Financial Results 
 




			Name
			
			
			FY19 Net Profit (S$M)
			
			
			YoY Growth (%)
			
			
			4Q19 Net Profit (S$M)
			
			
			YoY Growth (%)
			
		


			DBS
			
			
			6,391
			
			
			13.6
			
			
			1,508
			
			
			14.3
			
		


			OCBC
			
			
			4,869
			
			
			8.4
			
			
			1,243
			
			
			34.2
			
		


			UOB
			
			
			4,343
			
			
			8.4
			
			
			1,006
			
			
			9.8
			
		


			Average
			
			
			5,201
			
			
			10.1
			
			
			1,252
			
			
			19.4
			
		

 




			Name
			
			
			FY19 ROE (%)
			
			
			FY18 ROE (%)
			
			
			FY19 NPL Ratio (%)
			
			
			FY18 NPL Ratio (%)
			
		


			DBS
			
			
			13.2
			
			
			12.1
			
			
			1.5
			
			
			1.5
			
		


			OCBC
			
			
			11.4
			
			
			11.5
			
			
			1.5
			
			
			1.5
			
		


			UOB
			
			
			11.6
			
			
			11.3
			
			
			1.5
			
			
			1.5
			
		


			Average
			
			
			12.1
			
			
			11.6
			
			
			1.5
			
			
			1.5
			
		

Source: Company data

Outlook

DBS


The bank was on track to meet its previous 2020 guidance prior to the outbreak of the novel coronavirus.
	Assuming the outbreak is controlled by summer, we expect a revenue impact of around 1%-2%, and special provisions could rise by a few basis points of loans.
	Our record performance with ROE at a new high of 13.2% demonstrates a franchise that delivers high quality results.
	The increased quarterly dividend proposed by the board reflects the enhanced capacity of our business to generate earnings and reward shareholders.

 

OCBC 


Looking ahead, the global economic outlook is expected to be weaker than originally expected.
	We are watchful of the impact to our business and customers from the continuing trade tensions, heightened geo-political risks and the COVID-19 outbreak, and will extend support to customers to help them overcome the market challenges.
	OCBC has a solid record of producing stable earnings through economic cycles, and we are confident of delivering sustainable returns to all our stakeholders.

 

UOB 


Many signs point to more challenging times ahead, including the unfolding impact of the COVID-19 epidemic. To help cushion its impact on our customers, we have implemented a range of relief assistance measures for affected companies, especially SMEs, and mortgage relief for homeowners.
	We believe the region will weather this storm and are confident of ASEAN’s long-term potential. We will continue to invest in our capabilities, including digital, and seize the opportunities arising from the shifting economic environment.

 Click here, here and here for full results releases of DBS, OCBC and UOB. 
 

2019 Performances

Over the 2019 calendar year, the three banks averaged a total return of 10.0%, bringing their one-year and three-year total returns to 3.0% and 41.6% respectively. The two best performers in 2019 were DBS and UOB, with total returns of 15.5% and 12.8% respectively.

The tables below detail SGX’s three listed banks, sorted by market cap.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return 2019 (%)
			
			
			Total Return YTD (%)
			
		


			DBS
			
			
			D05
			
			
			64,421
			
			
			15.5
			
			
			-3.0
			
		


			OCBC
			
			
			O39
			
			
			48,715
			
			
			1.7
			
			
			0.5
			
		


			UOB
			
			
			U11
			
			
			42,993
			
			
			12.8
			
			
			-2.0
			
		


			Average
			
			
			 
			
			
			 
			
			
			10.0
			
			
			-1.5
			
		

 




			Name
			
			
			SGX Code
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			Div Ind Yld (%)
			
		


			DBS
			
			
			D05
			
			
			5.8
			
			
			57.0
			
			
			4.9
			
		


			OCBC
			
			
			O39
			
			
			-1.3
			
			
			29.6
			
			
			4.8
			
		


			UOB
			
			
			U11
			
			
			4.5
			
			
			38.0
			
			
			5.0
			
		


			Average
			
			
			 
			
			
			3.0
			
			
			41.6
			
			
			4.9
			
		

 Source: Bloomberg &amp; StockFacts (data as of 20 Feb 20)



DBS, OCBC & UOB Average 10% Net Profit Growth in FY19