Oversea-Chinese Banking Corp is trading at the same price/book levels as HSBC and Wells Fargo. Yet OCBC’s yield is higher than Wells Fargo’s.
When looking around the world including at US banks, HSBC and Standard Chartered, there is a case to be made for a continued investment in Singapore banks. Their sound capital position, asset quality, nimble asset-liability management, steady growth and their generous dividends are almost unmatched.
Take DBS Group Holdings and JP Morgan. They are both trading at similar price to book ratios. But DBS’s dividend yield at $58 is more than 5%.
