Sunday, 5 April 2020

How far did DBS, OCBC and UOB shares drop in 2009?

Have you wondered how far the local bank shares (i.e. DBS, OCBC, UOB) fell during the Global Financial crisis, also known as the Subprime Mortgage crisis in 2009?

All 3 bank shares recorded their lowest share price on the same day, on 10 March 2009. As the share prices itself would not provide much context, I have also include other details such as net asset value, price to book ratio and dividend yield. 
The price to book ratio shows an interesting sign as DBS recorded the lowest ratio of 0.59 as its shares dropped to $6.42. 

Compare to today, in the light of the COVID19 developments, the details are as follows:
As of 3 April 2020
OCBC price to book ratio is the lowest at 0.81 while DBS is the highest at 0.93. The dividend yield is for reference. During financial crisis, the banks will likely cut dividends as they conserve cash and prepare for more non-performing loans.

How much would DBS, OCBC and UOB share price be if they were to fall to the price to book ratio of 2009? 
DBS would need to fall to $11.34! Is this possible?

I have no idea. In the meantime,  I did 2 purchases in DBS as stated in my end March portfolio update. I have also recently purchased OCBC. 




3 comments:

  1. what website did u use to pull out your NAV for the 2009 period? Most only have 10 years period ie 2010 onwards s

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    Replies
    1. Go to the banks website and search for their annual reports. Their NAV are all captured in the respective annual reports.

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