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ABSA Bank KenyaNAI:ABSA 77 Return-on-Tangible-Equity is 20.86% as of Mar. 2026, which is 4% above its 10-year median of 20.08. GuruFocus rates NAI:ABSA with a GF Score™ of 77/100 and a GF Value™ of KES16.18 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,523 Banks companies, ABSA Bank Kenya ranks better than 93.04% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ABSA Bank Kenya's annualized net income for the quarter that ended in Mar. 2026 was KES21,245 Mil. ABSA Bank Kenya's average shareholder tangible equity for the quarter that ended in Mar. 2026 was KES101,855 Mil. Therefore, ABSA Bank Kenya's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.86%.
The historical rank and industry rank for ABSA Bank Kenya's Return-on-Tangible-Equity or its related term are showing as below:
NAI:ABSA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.18 Med: 20.08 Max: 27.38
Current: 23.19
During the past 13 years, ABSA Bank Kenya's highest Return-on-Tangible-Equity was 27.38%. The lowest was 9.18%. And the median was 20.08%.
NAI:ABSA's Return-on-Tangible-Equity is ranked better than 93.04% of 1523
companies
in the Banks industry
Industry Median: 11.23
vs NAI:ABSA: 23.19
ABSA Bank Kenya (NAI:ABSA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ABSA Bank Kenya Return-on-Tangible-Equity Related Terms
ABSA Bank Kenya Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ABSA Bank Kenya's Return-on-Tangible-Equity 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-Equity Competitor Comparison
For the Banks - Regional subindustry, ABSA Bank Kenya's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Banks Industry
For the Banks industry and Financial Services sector, ABSA Bank Kenya's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ABSA Bank Kenya's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.86% mean?
ABSA Bank Kenya (NAI:ABSA) has a Return-on-Tangible-Equity of 20.86% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ABSA Bank Kenya and its competitors. This is near median its historical median of 20.08. Over the past decade, ABSA Bank Kenya's Return-on-Tangible-Equity has ranged from 9.18 to 27.38. According to the industry distribution chart, ABSA Bank Kenya ranks #106 out of 1523 companies in the Banks industry, placing it in the top 7%.
Is ABSA Bank Kenya's Return-on-Tangible-Equity too high?
ABSA Bank Kenya's current Return-on-Tangible-Equity of 20.86% is near median its 10-year median of 20.08. Over the past 10 years, this metric has ranged from a low of 9.18 to a high of 27.38. The Banks industry median Return-on-Tangible-Equity is 11.23. ABSA Bank Kenya's value of 20.86% is 85.8% above this industry median. Based on the distribution chart, ABSA Bank Kenya ranks #106 out of 1523 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 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABSA Bank Kenya's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, ABSA Bank Kenya ranks #106 out of 1523 companies for Return-on-Tangible-Equity. This places ABSA Bank Kenya in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.23. ABSA Bank Kenya's value of 20.86% is 85.8% above this benchmark. Historically, ABSA Bank Kenya's own Return-on-Tangible-Equity has ranged from 9.18 to 27.38 over the past decade. While the company's 10-year median is 20.08 vs. the industry median of 11.23, 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-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.23, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 20.86% is 85.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ABSA Bank Kenya and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.23 — 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-Equity is 20.86%, which is near median its own 10-year median of 20.08. 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 KES16.18, compared to a current price of KES33.40 — trading 106.4% above its estimated fair value. The current Return-on-Tangible-Equity is 20.86%, which is near median its 10-year median of 20.08 and 85.8% above the Banks industry median of 11.23. ABSA Bank Kenya's overall GF Score™ is 77/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ABSA Bank Kenya (NAI:ABSA), the current Return-on-Tangible-Equity is 20.86% 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 KES33.40 is trading 106.4% above its estimated GF Value™ of KES16.18.
GuruFocus considers ABSA Bank Kenya to be Significantly Overvalued.
Key valuation signals for NAI:ABSA:
Return-on-Tangible-Equity: 20.86% (near median its 10-year median of 20.08)
GF Value™: KES16.18 vs. price of KES33.40 (106.4% above fair value)
Industry Position: 85.8% above the Banks median (#106 of 1523)
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.
77GF Score
Get the complete analysis for NAI:ABSA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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