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ABSA

Absa Bank KenyaNASE:ABSA Stock Report

Market Cap

KSh54.9b

7D

0.5%

1Y

7.4%

Updated

19 Oct, 2021

Data

Company Financials
ABSA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

ABSA Overview

Absa Bank Kenya PLC, together with its subsidiaries, provides various banking products and services to private customers, corporates, financial institutions, and government clients in Kenya.

Price History & Performance

Summary of all time highs, changes and price drops for Absa Bank Kenya
Historical stock prices
Current Share PriceKSh10.20
52 Week HighKSh8.50
52 Week LowKSh11.35
Beta0.47
1 Month Change-1.45%
3 Month Change2.20%
1 Year Change7.37%
3 Year Change-2.86%
5 Year Change27.50%
Change since IPO235.80%

Recent News & Updates

Shareholder Returns

ABSAKE BanksKE Market
7D0.5%-1.1%1.4%
1Y7.4%16.5%29.7%

Return vs Industry: ABSA underperformed the KE Banks industry which returned 16.5% over the past year.

Return vs Market: ABSA underperformed the KE Market which returned 29.7% over the past year.

Price Volatility

Is ABSA's price volatile compared to industry and market?
ABSA volatility
ABSA Beta0.47
Industry Beta0.56
Market Beta1

Stable Share Price: ABSA is less volatile than 75% of KE stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABSA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19161,991Jeremy Edward Aworihttps://www.absabank.co.ke

Absa Bank Kenya PLC, together with its subsidiaries, provides various banking products and services to private customers, corporates, financial institutions, and government clients in Kenya. It operates in two segments, Consumer Banking and Corporate Banking. The company offers current accounts, savings, and deposits; credit and debit cards; consumer loans and mortgages; and investment banking, financing, risk management, advisory, transactional banking, and cash management services.

Absa Bank Kenya Fundamentals Summary

How do Absa Bank Kenya's earnings and revenue compare to its market cap?
ABSA fundamental statistics
Market CapKSh54.86b
Earnings (TTM)KSh9.15b
Revenue (TTM)KSh29.97b

6.1x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABSA income statement (TTM)
RevenueKSh29.97b
Cost of RevenueKSh0
Gross ProfitKSh29.97b
ExpensesKSh20.82b
EarningsKSh9.15b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.68
Gross Margin100.00%
Net Profit Margin30.52%
Debt/Equity Ratio107.7%

How did ABSA perform over the long term?

See historical performance and comparison

Valuation

Is Absa Bank Kenya undervalued compared to its fair value and its price relative to the market?

6.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABSA (KES10.2) is trading above our estimate of fair value (KES3.2)

Significantly Below Fair Value: ABSA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABSA is good value based on its PE Ratio (6.1x) compared to the KE Banks industry average (6.2x).

PE vs Market: ABSA is good value based on its PE Ratio (6.1x) compared to the KE market (6.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ABSA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ABSA is overvalued based on its PB Ratio (1.1x) compared to the KE Banks industry average (0.8x).


Future Growth

How is Absa Bank Kenya forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.2%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Absa Bank Kenya has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Absa Bank Kenya performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABSA has a high level of non-cash earnings.

Growing Profit Margin: ABSA's current net profit margins (30.5%) are higher than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: ABSA's earnings have declined by 5.6% per year over the past 5 years.

Accelerating Growth: ABSA's earnings growth over the past year (119.5%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: ABSA earnings growth over the past year (119.5%) exceeded the Banks industry -5.6%.


Return on Equity

High ROE: ABSA's Return on Equity (17.6%) is considered low.


Financial Health

How is Absa Bank Kenya's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: ABSA's Assets to Equity ratio (7.7x) is low.

Allowance for Bad Loans: ABSA has a low allowance for bad loans (99%).

Low Risk Liabilities: 78% of ABSA's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABSA has an appropriate level of Loans to Assets ratio (55%).

Low Risk Deposits: ABSA's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: ABSA has a high level of bad loans (8.4%).


Dividend

What is Absa Bank Kenya current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ABSA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ABSA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABSA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABSA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ABSA is not paying a notable dividend for the KE market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABSA's dividend in 3 years as they are not forecast to pay a notable one for the KE market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Jeremy Edward Awori (50 yo)

8.67yrs

Tenure

KSh116,311,894

Compensation

Dr. Jeremy Edward Hannington Awori has been the Chief Executive Officer and Director of Absa Bank Kenya PLC (formerly known as Barclays Bank of Kenya Ltd.) since February 01, 2013. He serves as Managing Di...


CEO Compensation Analysis

Compensation vs Market: Jeremy Edward's total compensation ($USD1.05M) is above average for companies of similar size in the KE market ($USD713.74K).

Compensation vs Earnings: Jeremy Edward's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ABSA's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: ABSA's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Absa Bank Kenya PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Absa Bank Kenya PLC
  • Ticker: ABSA
  • Exchange: NASE
  • Founded: 1916
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: KSh54.859b
  • Shares outstanding: 5.43b
  • Website: https://www.absabank.co.ke

Number of Employees


Location

  • Absa Bank Kenya PLC
  • Off Waiyaki Way Westlands
  • PO Box 30120
  • Nairobi
  • 100
  • Kenya

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:40
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.