Comparative Study of UOB and OCBC for Bank Management and Financial Services

Running Head: Bank management and financial services
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UOB and OCBC
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Bank management and
financial services
Comparative study
Student’s Name

Bank management and financial services 2
Executive summary
In the report, UNITED OVERSEAS BANK LTD and OVERSEA-CHINESE
BANKING CORP LTD has been evaluated to identify the performance of both the banks in
the market on the basis of their profitability, credit position, liquidity level and efficiency and
leverage level of the company. The ownership governance structure and net revenue of both
the banks have also been evaluated to measure the entire performance of banks. The report
explains that the performance of OCBC bank is better than UOB bank.

Bank management and financial services 3
Contents
Background:......................................................................................................................4
Major shareholders:..........................................................................................................4
Bank’s net interest income and non-interest income:.......................................................6
Profitability ratio:..............................................................................................................6
Return on equity:..........................................................................................................6
Return on assets:...........................................................................................................7
Net interest margin:......................................................................................................7
Credit risk ratio:................................................................................................................7
Nonperforming loan rate:.............................................................................................8
Specific allowance / average loans:..............................................................................8
Liquidity risk ratio:...........................................................................................................8
Loan to deposit ratio:....................................................................................................8
Total customer’s deposit to total liabilities:..................................................................9
Other ratio:........................................................................................................................9
Efficiency ratio:............................................................................................................9
Leverage ratio:............................................................................................................10
Comparing UOB and OCBC:.........................................................................................10
References:.....................................................................................................................11

Bank management and financial services 4
Background:
Managing the financial performance of an organization is quote crucial as it helped the
stakeholders and the other parties of the company to make better decision about the
performance of the company and compare among 2 or more companies to identify the
performance of the company. Financial performance of an organization could be evaluated on
the basis of the various financial items and the annual report of the company (Weston and
Brigham, 2015).
United overseas bank limited is a Singapore bank which is listed in SGX. The
company offers the financial services and investment banking services. The bank has been
founded as United Chinese bank is 1935. The bank is among the third largest bank in the area
of the south east (Home, 2018). The main services of the bank include corporate banking
services, private banking services, personal financial services, management services,
corporate finance etc.
Further, OCBC bank is also a public listen bank in Singapore stock exchange. The main
products of the company includes corporate banking services, private banking services,
personal financial services, management services, corporate finance etc. the main area of
business of the bank is East Asia and south east Asia (Home, 2018). The main mission of the
company is to grab more market to enhance the market base and revenues of the bank.
Major shareholders:
Major shareholders explain about those investors who has invested into the equity
shares of the company and currently they are holding huge number of shares of the company.
In case of UNITED OVERSEAS BANK LTD, it has been recognized that the major
shareholder of the bank is Citibank Nominees Singapore pte limited which is holding around
18.72% in total stock of the company. The major share holder of the company are Citibank
Nominees Singapore Pte Ltd and DBS Nominees (Private) Limited who are holding more
than 15% in the total shares of the company.