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ICICI Bank (IBN) Q1 Earnings Rise Y/Y as NII, Fee Income Grow
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ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended Jun 30, 2024) was INR 110.6 billion ($1.32 billion), up 14.6% from the prior-year quarter.
Results were driven by a rise in net interest income (NII), non-interest income, and growth in loans and deposits. However, higher operating expenses and provisions were the undermining factors.
NII & Fee Income Improve, Expenses Rise
NII grew 7.3% year over year to INR 195.5 billion ($2.34 billion). The net interest margin was 4.36%, down 42 basis points.
Non-interest income was INR 63.9 billion ($765 million), up 23.3% year over year. Fee income increased 13.4% year over year to INR 54.9 billion ($658 million).
In the reported quarter, IBN recorded a treasury income of INR 6.13 billion ($73.4 million), up significantly from the prior-year quarter.
Operating expenses totaled INR 105.3 billion ($1.26 billion), up 10.6% year over year.
Loans & Deposits Increase
As of Jun 30, 2024, ICICI Bank’s total advances were INR 12,231.5 billion ($147 billion), up 15.7% year over year. Growth was primarily driven by a solid rise in business banking loans and SME loans.
Total deposits grew 15.1% year over year to INR 14,261.5 billion ($171 billion).
Credit Quality Worsens
As of Jun 30, 2024, the net non-performing assets (NPA) ratio was 0.43%, which declined from 0.48% in the prior-year period. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR 32.92 billion ($395 million) in the reported quarter.
In the fiscal first quarter, there were net additions of INR 26.24 billion ($314.5 million) to gross NPA. Gross NPA additions were INR 59.16 billion ($709 million), while gross NPA written-off was INR 17.5 billion ($209 million).
Provisions (excluding provision for tax) increased 3.1% to INR 13.3 billion ($159 million). As of Jun 30, 2024, the bank held a total contingency provision of INR 131 billion ($1.57 billion).
Capital Ratios Strong
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.41%, and Tier-1 capital adequacy was 15.71% as of Jun 30, 2024. Both ratios were well above the minimum requirements.
Our Take
ICICI Bank’s quarterly performance was impressive, driven by increased consumer loan demand, improved deposit balances, and growth in NII and non-interest income. These factors are anticipated to continue supporting the bank’s financials. However, elevated expenses and macroeconomic uncertainties are significant near-term challenges.
ICICI Bank Limited Price, Consensus and EPS Surprise
Performance & Earnings Release Date of Other Foreign Banks
Deutsche Bank (DB - Free Report) reported a second-quarter 2024 loss attributable to its shareholders of €143 million ($155.6 million) against the year-ago reported profit attributable to shareholders of €763 million ($830.7 million).
Results were negatively impacted by an increase in expenses and a rise in provision for credit losses. However, an increase in commissions and fee income, and stable net interest income acted as tailwinds.
Barclays (BCS - Free Report) is scheduled to release quarterly numbers on Aug 1.
The Zacks Consensus Estimate for BCS’s quarterly earnings has been unchanged at 40 cents per share over the past seven days. The estimate indicates a decline of 7% from the prior-year quarter’s reported number.
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ICICI Bank (IBN) Q1 Earnings Rise Y/Y as NII, Fee Income Grow
ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended Jun 30, 2024) was INR 110.6 billion ($1.32 billion), up 14.6% from the prior-year quarter.
Results were driven by a rise in net interest income (NII), non-interest income, and growth in loans and deposits. However, higher operating expenses and provisions were the undermining factors.
NII & Fee Income Improve, Expenses Rise
NII grew 7.3% year over year to INR 195.5 billion ($2.34 billion). The net interest margin was 4.36%, down 42 basis points.
Non-interest income was INR 63.9 billion ($765 million), up 23.3% year over year. Fee income increased 13.4% year over year to INR 54.9 billion ($658 million).
In the reported quarter, IBN recorded a treasury income of INR 6.13 billion ($73.4 million), up significantly from the prior-year quarter.
Operating expenses totaled INR 105.3 billion ($1.26 billion), up 10.6% year over year.
Loans & Deposits Increase
As of Jun 30, 2024, ICICI Bank’s total advances were INR 12,231.5 billion ($147 billion), up 15.7% year over year. Growth was primarily driven by a solid rise in business banking loans and SME loans.
Total deposits grew 15.1% year over year to INR 14,261.5 billion ($171 billion).
Credit Quality Worsens
As of Jun 30, 2024, the net non-performing assets (NPA) ratio was 0.43%, which declined from 0.48% in the prior-year period. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR 32.92 billion ($395 million) in the reported quarter.
In the fiscal first quarter, there were net additions of INR 26.24 billion ($314.5 million) to gross NPA. Gross NPA additions were INR 59.16 billion ($709 million), while gross NPA written-off was INR 17.5 billion ($209 million).
Provisions (excluding provision for tax) increased 3.1% to INR 13.3 billion ($159 million). As of Jun 30, 2024, the bank held a total contingency provision of INR 131 billion ($1.57 billion).
Capital Ratios Strong
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.41%, and Tier-1 capital adequacy was 15.71% as of Jun 30, 2024. Both ratios were well above the minimum requirements.
Our Take
ICICI Bank’s quarterly performance was impressive, driven by increased consumer loan demand, improved deposit balances, and growth in NII and non-interest income. These factors are anticipated to continue supporting the bank’s financials. However, elevated expenses and macroeconomic uncertainties are significant near-term challenges.
ICICI Bank Limited Price, Consensus and EPS Surprise
ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited Quote
ICICI Bank currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Release Date of Other Foreign Banks
Deutsche Bank (DB - Free Report) reported a second-quarter 2024 loss attributable to its shareholders of €143 million ($155.6 million) against the year-ago reported profit attributable to shareholders of €763 million ($830.7 million).
Results were negatively impacted by an increase in expenses and a rise in provision for credit losses. However, an increase in commissions and fee income, and stable net interest income acted as tailwinds.
Barclays (BCS - Free Report) is scheduled to release quarterly numbers on Aug 1.
The Zacks Consensus Estimate for BCS’s quarterly earnings has been unchanged at 40 cents per share over the past seven days. The estimate indicates a decline of 7% from the prior-year quarter’s reported number.