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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
ABSA Bank Kenya's 3-Year RORE % for the quarter that ended in Mar. 2026 was 11.84%.
The industry rank for ABSA Bank Kenya's 3-Year RORE % or its related term are showing as below:
NAI:ABSA's 3-Year RORE % is ranked better than 53.72% of 1465
companies
in the Banks industry
Industry Median: 9.96
vs NAI:ABSA: 11.84
ABSA Bank Kenya (NAI:ABSA) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
ABSA Bank Kenya 3-Year RORE % Related Terms
ABSA Bank Kenya 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for ABSA Bank Kenya's 3-Year RORE % 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 3-Year RORE % Competitor Comparison
For the Banks - Regional subindustry, ABSA Bank Kenya's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, ABSA Bank Kenya's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where ABSA Bank Kenya's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
ABSA Bank Kenya (NAI:ABSA) has a 3-Year RORE % of 11.84 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on ABSA Bank Kenya and its competitors. According to the industry distribution chart, ABSA Bank Kenya ranks #678 out of 1465 companies in the Banks industry, placing it in the top 46.3%.
Is ABSA Bank Kenya's 3-Year RORE % too high?
ABSA Bank Kenya's current 3-Year RORE % is 11.84. The Banks industry median 3-Year RORE % is 9.96. ABSA Bank Kenya's value of 11.84 is 18.9% above this industry median. Based on the distribution chart, ABSA Bank Kenya ranks #678 out of 1465 companies in the Banks industry, which is above the industry midpoint. 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 3-Year RORE % compare to competitors?
According to the Banks industry distribution chart, ABSA Bank Kenya ranks #678 out of 1465 companies for 3-Year RORE %. This puts ABSA Bank Kenya in the upper half of its industry. The industry median 3-Year RORE % is 9.96. ABSA Bank Kenya's value of 11.84 is 18.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Banks company?
The median 3-Year RORE % among Banks companies is 9.96, based on 1,465 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ABSA Bank Kenya's current 3-Year RORE % of 11.84 is 18.9% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on ABSA Bank Kenya and its competitors. For the Banks industry, the median 3-Year RORE % is 9.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABSA Bank Kenya's current 3-Year RORE % is 11.84. 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 KES16.24, compared to a current price of KES33.05 — trading 103.5% above its estimated fair value. The current 3-Year RORE % is 11.84 and 18.9% above the Banks industry median of 9.96. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For ABSA Bank Kenya (NAI:ABSA), the current 3-Year RORE % is 11.84 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 KES33.05 is trading 103.5% above its estimated GF Value™ of KES16.24.
GuruFocus considers ABSA Bank Kenya to be Significantly Overvalued.
Key valuation signals for NAI:ABSA:
3-Year RORE %: 11.84
GF Value™: KES16.24 vs. price of KES33.05 (103.5% above fair value)
Industry Position: 18.9% above the Banks median (#678 of 1465)
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
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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