Analysts Ask Investors To Bet On Absa Bank Shares This Week

By Juma / Published March 26, 2024 | 6:30 am

KEY POINTS

Customer loans and advances increased by 18% to Kshs.336 billion as the Bank focused on supporting key economic sectors such as energy, telecommunications, manufacturing, trade, commercial property, and affordable housing.

Analysts from Genghis Capital have advised those looking to buy shares this week to consider Absa Bank Kenya. The lender, who released some remarkable annual financial results has seen their share price gain at the Nairobi Securities Exchange (NSE) as the week kicked off.

“This week we issue a BUY recommendation on Absa Bank of Kenya. Following their recent 2023 results, they maintained an upbeat performance with an EPS (Earnings Per Share) growth of 12% y/y speared by its 24% y/y growth in its net interest income. Its DPS (Dividend Per Share) of KES 1.35 translates to an resilient dividend yield of 12.5%,” they said.

The bank reported a strong performance for the full year 2023 as net earnings increased 12% to Kshs.16.4 billion compared to the previous year, supported by increased funding of core sectors fueling Kenya’s economic growth.

During the period, customer loans and advances increased by 18% to Kshs.336 billion as the Bank focused on supporting key economic sectors such as energy, telecommunications, manufacturing, trade, commercial property, and affordable housing.

The Bank also prioritized the needs of the SME sector, facilitating increased access to financing, access to markets, mentorship, and networking opportunities, as well as driving digital enhancements to improve the customer experience.

In the period, revenues increased by 19% to Kshs.54.6 billion on the back of growing customer assets as well as faster growth of new business lines such as bancassurance, asset management, and digital finance.

Interest income increased by 24% to Kshs.40 billion, while non-funded income grew by 6% to Kshs.14.5 billion despite a challenging macros environment.

Customer deposits increased 19% to Kshs.363 billion. Total assets ended the year at Kshs.520 billion, up from Kshs.477 billion the year before, representing a 9% increase.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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