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Hi all,
Sorry for noob question. I'm Malaysian. Hence, not quite familiar with situation in Singapore.
I was wondering, what are some good & solid bank stocks to be invested in Singapore?
In Malaysia, ppl usually invest in
PUBLIC BANK - Solid historical track record. Good earning growth from year to year. Low NPE (0.7%). Good dividend (But drop to 2.5% recently as stock price cheong like rocket)
MAYABANK - Solid historical track record. Good dividend (5%)
Several Singapore banks are under my radar.
+ DBS
+ UOB
+ OCBC
I was wondering, among the three, which bank has best reputation as solid & quality bank among investor community?
Kam sia!
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In Singapore, ppl usually invest in 2.5% guaranteed return. But one needs lots of patience...
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Hi YC Cheok,
I rather invest in Malaysia bank than Singapore banks. There are banks in Malaysia such as Public bank which is had a solid track record however, the sucession plan is an issue. Alternatively, LPI is also another good one.
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How much you understand about Malaysian banking sector and how much you understand about Singaporean banks when making a comparison of " I rather this than there"?
Singapore banks are fundamentally strong but they are expensive today and compare with Malaysian banks their exposure of global risk is higher. You need to study in deep instead of listening comments. I don't know how good is Public bank, maybe you can share with us.
additionally, a claim to be value investor needs to pay some much attention on CPF money meaning he is financially weak. His advice is worthless.
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(25-06-2014, 08:28 AM)Fish Head Wrote: How much you understand about Malaysian banking sector and how much you understand about Singaporean banks when making a comparison of " I rather this than there"?
Singapore banks are fundamentally strong but they are expensive today and compare with Malaysian banks their exposure of global risk is higher. You need to study in deep instead of listening comments. I don't know how good is Public bank, maybe you can share with us.
additionally, a claim to be value investor needs to pay some much attention on CPF money meaning he is financially weak. His advice is worthless.
I am rather strict on newbie (new member).
Your post seems target on person, rather on post, especially the last statement. Personal attack is prohibited here.
A basic warning is issued, which carries no restriction. It is for tracking of moderator.
Please take note on your future post
Regards
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“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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(24-06-2014, 01:45 AM)yccheok Wrote: Sorry for noob question. I'm Malaysian. Hence, not quite familiar with situation in Singapore.
I was wondering, what are some good & solid bank stocks to be invested in Singapore?
I was wondering, among the three, which bank has best reputation as solid & quality bank among investor community?
Other than choosing between the big 3 of DBS/OCBC/UOB, you can also choose to buy the STI index directly. I have raised this before in another thread:
http://www.valuebuddies.com/thread-4865.html
In particular you might want to understand the weightage of the banks in the STI to get my drift.
On a very macro level, i think the 3 banks can all be taken as safe proxies on the Singapore's economy since all are supervised by MAS - you can probably research on the capital adequacy ratios etc to get a feeling of the supervision.
On a micro level, the 3 banks differ in degrees from their Interest/Non-Interest Income ratios, management style, geographic exposures. I'm not sure if reputation and past histories count for much - see the change in DBS/OCBC ever since Gupta/Tsien took over.
There are plenty of analyst reports on the banks - I'm sure you can spend sometime on googling and reading them. If you just cannot decide and simply want an exposure (though not pure), then STI can also be an alternative.
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You can compared Public Bank financial ratios like ROE and its margin to Singapore banks. For all banks, there is nothing such as safe or not safe as bank is a risky business. Eventually, the government will bail out banks if there is any problem.
Secondly, if you took a look at the management there, its founder has build up the bank from nothing to what it is today and this is the track record that it has been made. Other than this, the way that bank do business are almost the same through out the whole financial sectors, its are about the spread though business environment might be different such as regulatory requirements or the loan profile.
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I think you have an underlying motive to want to look to invest in SG banks because of the ever deflating MY currency and see SG currency as stable (my guess)...
Of 3 SG banks, so far (if my memory serves well) only UOB have not had a stock split.
OCBC looks cheapest on face value and most people buy it because of the 1 lot min buy restriction, it becomes most affordable.
If taking in the split, maybe UOB would be cheapest (i haven't looked into the financials - and didn't because its out of my financial position)
Other than the 3 main SG banks, u would be more familiar with Hong Leong bank too thats also listed in SG.
There are other factors to look into the banks' assets as well like land banks and properties.
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(25-06-2014, 08:28 AM)Fish Head Wrote: How much you understand about Malaysian banking sector and how much you understand about Singaporean banks when making a comparison of " I rather this than there"?
Singapore banks are fundamentally strong but they are expensive today and compare with Malaysian banks their exposure of global risk is higher. You need to study in deep instead of listening comments. I don't know how good is Public bank, maybe you can share with us.
additionally, a claim to be value investor needs to pay some much attention on CPF money meaning he is financially weak. His advice is worthless.
In fact, I hold public bank for 8 years. I do few times top-up from time-to-time (no selling). It gave total 200% returns till to-date including dividends. I can say is no brainier gain. As I simply buy and then forget it.
Malaysia dollar is getting weaker over the time. Want to go oversea "chiak huang" also "boh lui".
Looking to diversify some investment in Sing dollar, as I think 10 years later, Sing dollar will grow stronger than it is today.
I do have particular preference on banking stock, that's why I ask for Singapore bank stock.
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(25-06-2014, 08:21 PM)D.L Wrote: For all banks, there is nothing such as safe or not safe as bank is a risky business. Eventually, the government will bail out banks if there is any problem. In theory, all banks are highly leveraged entities and may be considered to be risky by the serious conservative investor. In a crisis, the gov does has a track record of bailing out banks. An soft example would be the Spore Gov put up a deposit guarantee in the depths of GFC2008 for all deposits in banks/financial institutions licensed by MAS, using its reserves as a backing.
In practice, there is still a big difference to the shareholders between banks that are bailed out, vs those that are not. Just contrast the fate of the shareholders of pre-GFC 2008 Citibank vs Well Fargos, is there any difference?
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