ICICI Bank, the second largest private sector bank in India, is set to announce its September quarter earnings on Saturday, October 26. ICICI Bank Q2 results are estimated to be decent led by healthy loan and deposit growth, stable asset quality and credit costs remaining under control.
ICICI Bank is expected to report a net profit of ₹11,106 crore in the second quarter of FY25, registering a growth of 8.2% from ₹10,261 crore in the same quarter last fiscal year, according to Livemint poll of seven brokerage estimates.
Net Interest Income (NII), the difference between interest earned and interest paid, in Q2FY25 is estimated to rise 9.6% to ₹20,071 crore from ₹18,308 crore, year-on-year (YoY).
Net Interest Margin (NIM) is expected to contract marginally due to rise in cost of deposits on a YoY basis, but remain stable sequentially. Analysts have pegged ICICI Bank’s NIMs to be at 4.4% in Q2FY25 as compared with 4.5% in Q2FY24.
Kotak Institutional Equities expects NIM to decline 10 bps or possibly be stable at 4.1%. The NIM compression cycle appears to be gradually behind, which is likely to be a key positive outcome, it said.
Pre-Provisions Operating Profit (PPOP) in the quarter ended September 2024 is expected to grow 13.7% to ₹16,180 crore from ₹14,229 crore, YoY, aided by healthy fee income and largely stable cost ratios.
Loan and Deposit Growth
ICICI Bank’s credit growth in the September quarter is estimated to be largely in line with Deposit growth and the C-D ratio to remain stable.
Loan growth is likely to be around 13% – 14% YoY, led by the contribution from all segments (slowdown in unsecured loans).
Asset Quality
Asset quality of the private lender is expected to remain stable sequentially. Motilal Oswal Financial Services estimates ICICI Bank’s Gross Non-Performing Assets (GNPA) ratio at the end of September 2024 quarter to be around 2.3% as against 2.2% in the June quarter. Net NPA ratio in Q2FY25 is expected to be at 0.5% as compared to 0.4%, QoQ.
Provisions growth is likely to be higher as the base quarter had negligible provisions. Slippages are estimated at 2%.
ICICI Bank Stock Price
ICICI Bank stock price has given decent returns this year. While ICICI Bank shares are up only over 4% in the past three months, the stock has risen more than 25% year-to-date (YTD). ICICI Bank share price has gained over 36% in the past one year.
At 3:00 PM, ICICI Bank shares were trading 0.06% higher at ₹1,253.35 apiece on the BSE.
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