These 2 Blue-Chip Banks Bought Back Their Shares This Week
Share buybacks can be favourable for shareholders if done for the right reasons. So far during the week (as of market open today), two bank stocks have repurchased their shares. Let’s take a deeper look.
United Overseas Bank Ltd (SGX: U11)
With more than 500 branches in 19 countries, United Overseas Bank (UOB) is one of the largest banks in Southeast Asia.
On 6, 7, and 8 August 2018, the bank bought back a total of 181,894 shares ranging from S$27.08 to S$28.35 per share. The total cost came up to around S$5.02 million.
Last week, UOB announced its earnings for the second quarter of 2018. Total income grew 11% to S$2.34 billion while net profit improved 28% year-on-year to S$1.08 billion. You can go here to know more about the latest results.
UOB shares closed at S$28.34 each on Wednesday. This gives a price-to-book (PB) ratio of 1.3 and a dividend yield of 3.4%, excluding special dividend.
Oversea-Chinese Banking Corp Limited (SGX: O39)
Oversea-Chinese Banking Corporation, or OCBC for short, is the longest established local bank and is the second largest financial services group in Southeast Asia by assets.
On 7 and 8 August, OCBC bought back a total of 200,000 shares at a price range of between S$11.94 and S$11.99 per share. The total cost was around S$2.40 million.
On Monday (6 August), the bank reported its financial results for the 2018 second-quarter where net profit rose 16% to S$1.21 billion, a record high. The improved results were due to strong performance across each of the group’s banking, wealth management and insurance businesses. To know more about the latest earnings, you can head here.
OCBC shares closed at S$12.00 apiece on Wednesday. This translates to a PB ratio of 1.3 and a dividend yield of 3.3%.