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ABSA Bank KenyaNAI:ABSA -0.15%78 Return-on-Tangible-Asset is 3.84% as of Mar. 2026, which is 35% above its 10-year median of 2.84. GuruFocus rates NAI:ABSA with a GF Score™ of 78/100 and a GF Value™ of KES16.33 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,527 Banks companies, ABSA Bank Kenya ranks better than 97.05% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. ABSA Bank Kenya's annualizedNet Income for the quarter that ended in Mar. 2026 was KES21,245 Mil. ABSA Bank Kenya's average total tangible assets for the quarter that ended in Mar. 2026 was KES553,025 Mil. Therefore, ABSA Bank Kenya's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.84%.
The historical rank and industry rank for ABSA Bank Kenya's Return-on-Tangible-Asset or its related term are showing as below:
NAI:ABSA'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.11 Med: 2.84 Max: 4.4
Current: 4.07
During the past 13 years, ABSA Bank Kenya's highest Return-on-Tangible-Asset was 4.40%. The lowest was 1.11%. And the median was 2.84%.
NAI:ABSA's Return-on-Tangible-Asset is ranked better than 97.05% of 1527
companies
in the Banks industry
Industry Median: 1.01
vs NAI:ABSA: 4.07
ABSA Bank Kenya (NAI:ABSA) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
ABSA Bank Kenya Return-on-Tangible-Asset Related Terms
ABSA Bank Kenya Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for ABSA Bank Kenya's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ABSA Bank Kenya Return-on-Tangible-Asset Competitor Comparison
For the Banks - Regional subindustry, ABSA Bank Kenya's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ABSA Bank Kenya Return-on-Tangible-Asset vs Banks Industry
For the Banks industry and Financial Services sector, ABSA Bank Kenya's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where ABSA Bank Kenya's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.84% mean?
ABSA Bank Kenya (NAI:ABSA) has a Return-on-Tangible-Asset of 3.84% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ABSA Bank Kenya and its competitors. This is 35% above median its historical median of 2.84. Over the past decade, ABSA Bank Kenya's Return-on-Tangible-Asset has ranged from 1.11 to 4.40. According to the industry distribution chart, ABSA Bank Kenya ranks #45 out of 1527 companies in the Banks industry, placing it in the top 2.9%.
Is ABSA Bank Kenya's Return-on-Tangible-Asset too high?
ABSA Bank Kenya's current Return-on-Tangible-Asset of 3.84% is 35% above median its 10-year median of 2.84. Over the past 10 years, this metric has ranged from a low of 1.11 to a high of 4.40. The Banks industry median Return-on-Tangible-Asset is 1.01. ABSA Bank Kenya's value of 3.84% is 280.2% above this industry median. Based on the distribution chart, ABSA Bank Kenya ranks #45 out of 1527 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, ABSA Bank Kenya has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABSA Bank Kenya's Return-on-Tangible-Asset compare to competitors?
According to the Banks industry distribution chart, ABSA Bank Kenya ranks #45 out of 1527 companies for Return-on-Tangible-Asset. This places ABSA Bank Kenya in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.01. ABSA Bank Kenya's value of 3.84% is 280.2% above this benchmark. Historically, ABSA Bank Kenya's own Return-on-Tangible-Asset has ranged from 1.11 to 4.40 over the past decade. While the company's 10-year median is 2.84 vs. the industry median of 1.01, ABSA Bank Kenya has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Banks company?
The median Return-on-Tangible-Asset among Banks companies is 1.01, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ABSA Bank Kenya's current Return-on-Tangible-Asset of 3.84% is 280.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on ABSA Bank Kenya and its competitors. For the Banks industry, the median Return-on-Tangible-Asset is 1.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABSA Bank Kenya's current Return-on-Tangible-Asset is 3.84%, which is 35% above median its own 10-year median of 2.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABSA Bank Kenya stock overvalued right now?
Based on GuruFocus' analysis, ABSA Bank Kenya (NAI:ABSA) is currently considered Significantly Overvalued. The stock's GF Value™ is KES16.33, compared to a current price of KES33.30 — trading 103.9% above its estimated fair value. The current Return-on-Tangible-Asset is 3.84%, which is 35% above median its 10-year median of 2.84 and 280.2% above the Banks industry median of 1.01. ABSA Bank Kenya's overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For ABSA Bank Kenya (NAI:ABSA), the current Return-on-Tangible-Asset is 3.84% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ABSA Bank Kenya (NAI:ABSA) Overvalued in 2026?
Based on GuruFocus' analysis, ABSA Bank Kenya stock appears to be overvalued.
The current stock price of KES33.30 is trading 103.9% above its estimated GF Value™ of KES16.33.
GuruFocus considers ABSA Bank Kenya to be Significantly Overvalued.
Key valuation signals for NAI:ABSA:
Return-on-Tangible-Asset: 3.84% (35% above median its 10-year median of 2.84)
GF Value™: KES16.33 vs. price of KES33.30 (103.9% above fair value)
Industry Position: 280.2% above the Banks median (#45 of 1527)
No single metric tells the full story. See the NAI:ABSA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABSA Bank Kenya PLC is a diversified financial services company offering clients a range of retail, business, corporate and investment, and wealth management solutions. The company's operating segment includes Consumer banking and Corporate banking. It generates maximum revenue from the Consumer Banking segment. The Consumer Banking segment incorporates private customer current accounts, savings, deposits, credit and debit cards, consumer loans, and mortgages. Its Corporate Banking segment includes the business model that centers on delivering specialist investment banking, financing, risk management, and advisory solutions across asset classes to corporates, financial institutions and government clients.
78GF Score
Get the complete analysis for NAI:ABSA
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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