atans1

Local banks: Underperforming their regional peers

In Banks on 23/03/2010 at 5:19 am

Our local banks were thrashed by Malaysian, Thai and Indonesian banks when measured by relative total shareholder return (RTSR) of mid-cap banks over the last five years according to a  Boston Consulting Group (BCG) report.

OCBC was 11th, with a 2.4 per cent RTSR while UOB with 0.4 per cent RTSR was 18th. In the previous five year period 2004-2008, OCBC and UOB were placed 24th and 23rd respectively. They have improved.

DBS has a negative RTSR. It was ranked 35 over the five-year 2005-2009 period with an RTSR of minus 4.6 per cent. Previously, DBS ranked 49 out of 50 in the mid-cap bank category. Still bottom of the class but our national champ. Or shld it be our national chump?

“The rankings were for the biggest 100 banks as measured by capitalisation for which a five-year RTSR could be calculated; they were then split into two categories – large-cap and mid-cap. RTSR measures total shareholder return based on the change in share price and that includes gains from reinvesting dividends adjusted to the performance of the local stock market,” BT reported.

The following table is taken from BT.

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