Oct[4] - Banks Screening

Local banks have been falling ~20 to 30% from respective peak of share price this year. In fact, they led the recent down sliding of entire market. Historical mean value for bank shares is about 1.5 P/B (Price to Book) of which have been exceeded on mid of this year. Bank shares fall below Book Value during crisis period, such as 1999, 2009 and 2016 as shown below.

Latest update on valuation of banks are below.

UOB just released it's earning last week. NAV and RNAV reached 20.78/share and 23.64/share with 5% improve year to year. DBS and OCBC will give respective announcement on 5 Nov and 1 Nov. It's everyone guess whether we are coming to any stock market crisis period. From perspective of valuation, recent plummet across bank shares deserve some attention of investors. OCBC was selected for showing price valuation chart below. Support at 10.87 already broken, bargain hunter could back anytime soon.