ABSA Bank Kenya met in-house expectations to record a modest 12.2% y/y growth in net earnings to KES 16.37Bn throughout 2023. The expansion in revenue was propelled by organic demand growth and margin expansion across both wholesale banking and retail segments.
The Board of Directors recommend a final Dividend of KES 1.35 per share. In addition to the earlier issued interim dividend of KES 0.20, this raises the total FY’23 dividend to KES 1.55.
Recommendation - We revise our recommendation to BUY on ABSA Bank Kenya on account of its resilient return on equity momentum and promising revenue growth prospects.
