ABSA Bank KenyaNAI:ABSA +0.62%76 ROE % is 20.56% as of Mar. 2026, which is 5% above its 10-year median of 19.57. GuruFocus rates NAI:ABSA with a GF Score™ of 76/100 and a GF Value™ of KES16.01 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,527 Banks companies, ABSA Bank Kenya ranks better than 94.7% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ABSA Bank Kenya's annualized net income for the quarter that ended in Mar. 2026 was KES21,245 Mil. ABSA Bank Kenya's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was KES103,305 Mil. Therefore, ABSA Bank Kenya's annualized ROE % for the quarter that ended in Mar. 2026 was 20.56%.
The historical rank and industry rank for ABSA Bank Kenya's ROE % or its related term are showing as below:
NAI:ABSA'
s ROE % Range Over the Past 10 Years
Min: 9.08 Med: 19.57 Max: 27.04
Current: 22.85
During the past 13 years, ABSA Bank Kenya's highest ROE % was 27.04%. The lowest was 9.08%. And the median was 19.57%.
NAI:ABSA's ROE % is ranked better than 94.7% of 1527
companies
in the Banks industry
Industry Median: 10.23
vs NAI:ABSA: 22.85
ABSA Bank Kenya (NAI:ABSA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
ABSA Bank Kenya ROE % Related Terms
ABSA Bank Kenya ROE % Historical Data
* Premium members only.
The historical data trend for ABSA Bank Kenya's ROE % 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.
For the Banks - Regional subindustry, ABSA Bank Kenya's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, ABSA Bank Kenya's ROE % distribution charts can be found below:
* The bar in red indicates where ABSA Bank Kenya's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
ABSA Bank Kenya (NAI:ABSA) has a ROE % of 20.56% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ABSA Bank Kenya and its competitors. This is near median its historical median of 19.57. Over the past decade, ABSA Bank Kenya's ROE % has ranged from 9.08 to 27.04. According to the industry distribution chart, ABSA Bank Kenya ranks #81 out of 1527 companies in the Banks industry, placing it in the top 5.3%.
Is ABSA Bank Kenya's ROE % too high?
ABSA Bank Kenya's current ROE % of 20.56% is near median its 10-year median of 19.57. Over the past 10 years, this metric has ranged from a low of 9.08 to a high of 27.04. The Banks industry median ROE % is 10.23. ABSA Bank Kenya's value of 20.56% is 101% above this industry median. Based on the distribution chart, ABSA Bank Kenya ranks #81 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 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABSA Bank Kenya's ROE % compare to competitors?
According to the Banks industry distribution chart, ABSA Bank Kenya ranks #81 out of 1527 companies for ROE %. This places ABSA Bank Kenya in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 10.23. ABSA Bank Kenya's value of 20.56% is 101% above this benchmark. Historically, ABSA Bank Kenya's own ROE % has ranged from 9.08 to 27.04 over the past decade. While the company's 10-year median is 19.57 vs. the industry median of 10.23, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.23, based on 1,527 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ABSA Bank Kenya's current ROE % of 20.56% is 101% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ABSA Bank Kenya and its competitors. For the Banks industry, the median ROE % is 10.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABSA Bank Kenya's current ROE % is 20.56%, which is near median its own 10-year median of 19.57. 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 KES16.01, compared to a current price of KES32.50 — trading 103% above its estimated fair value. The current ROE % is 20.56%, which is near median its 10-year median of 19.57 and 101% above the Banks industry median of 10.23. ABSA Bank Kenya's overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For ABSA Bank Kenya (NAI:ABSA), the current ROE % is 20.56% 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 KES32.50 is trading 103% above its estimated GF Value™ of KES16.01.
GuruFocus considers ABSA Bank Kenya to be Significantly Overvalued.
Key valuation signals for NAI:ABSA:
ROE %: 20.56% (near median its 10-year median of 19.57)
GF Value™: KES16.01 vs. price of KES32.50 (103% above fair value)
Industry Position: 101% above the Banks median (#81 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.
76GF Score
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