Experts Recommend A BUY For Absa Shares This Week

“This week we issue a BUY recommendation on Absa Bank of Kenya. Following their recent Q1 results, they maintained an upbeat performance with an EPS (Earnings Per Share) growth of 32.92% q/q speared by its 21.70% q/q growth in its net interest income,” said experts from Genghis Capital.

Amidst a challenging operating context characterized by volatile rates and elevated inflation, the Bank grew its loans and advances by 5% to reach Kshs.327 billion, underscoring its broader mission to empower its customers’ growth stories.

Customer deposits for the period rose by 14% to Kshs.355 billion, further propelling balance sheet momentum.

Read Also: Absa Bank To Train 30,000 Women Entrepreneurs In Western Kenya

Underpinned by the Bank’s ongoing revenue diversification strategies that are supported by new businesses such as bancassurance, asset management, Timiza, and stock brokerage, as well as rising customer assets, total revenues accelerated by 19% to Kshs.16.5 billion.

Resultingly, interest income grew by 22% to Kshs.11.4 billion, while non-funded income rose by 13% to Kshs.5.1 billion.

The Bank’s statutory operating expenses increased by 11% as the Bank executed transformational and people investments.

The Bank has leveraged these investments to accelerate revenue growth, which has led to a significant improvement in cost to income ratio to 33.9%.

Read Also: Absa Bank Kenya PLC Reports A 34% Increase in Q1 Net Earnings

Equities

Bearish market sentiments prevailed in the equities market, as signaled by the NASI and NSE 20 w/w performance. Total market turnover increased by 422.00% w/w to KES 11.65Bn up from KES 2.23Bn in the previous week.

Foreigners’ trading activity increased by 74.80% w/w to KES 1.99Bn during the week. Foreign investors were bullish across key blue chips– printing overall net inflows amounting to KES 0.88Bn

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