ICICI Bank shares gain over 2% after Q1 beat; brokerages raise target price

ICICI Bank shares in Monday’s  early trade (July 29) gained over 2 per cent at day's high to Rs 1,237 as the lender released its quarterly results on Saturday. The country’s leading lender posted a 14.6 per cent year-on-year increase in its standalone net profit with 7.3 per cent growth in net interest income - or the difference between interest earned and interest paid. 

Both the top line as well as bottom line were better than analysts' expectations. According to Zee Business research, ICICI Bank's June-quarter net profit was estimated at Rs 10,570 crore and revenue at Rs 19,430 crore. 

ICICI Bank's gross non-performing assets (GNPAs) as a percentage of total loans stood at 2.15 per cent for the June quarter, as against 2.16 per cent for the previous three months. Similarly, its net non-performing assets (NNPAs) - or net bad loans - came in at 0.43 per cent as against 0.42 per cent in the final three months of FY24. 

Here's how global brokerages view the stock after Q1

After the Q1 global brokerages are divided on the stock:

 
Jefferies on ICICI Bank (CMP 1207)
Maintain buy, target raised to 1460 from 1350
 
JP Morgan on ICICI Bank (CMP 1207)
Maintain overweight, target raised to 1375 from 1300
1Q PAT at Rs110.5bn (+15% y/y; ROE: 18%) in-line with JPMe
NII in-line with 4bps q/q NIM decline along expected lines
Core PPOP up 11% y/y with overall avg. asset growth at 16% y/y with NIMs having moderated 42bps from 1QFY24 levels
 
Goldman Sachs on ICICI Bank (CMP 1207)
Maintain neutral, target raised to 1260 from 1186
 
Citi on ICICI Bank (CMP 1207)
Maintain buy, target raised to 1464 from 1350
Sustained >2.3% RoA/17% RoE
NIM decline restricted at 4bps & credit cost/slippages were contained at 0.44%/2%
Besides seasonal agri, no stress visible in other segments
Mgtm. expects 10-15% impact of LCR draft circular
Macquarie on ICICI Bank (CMP 1207)
 
Macquarie on ICICI Bank (CMP 1207)
Maintain outperform ,target 1300
 
CLSA on ICICI Bank
Maintian Outperform  Target Raised to 1500 from 1350
Delivered Balanced Q1, Loan Growth & Deposit Growth Were In Mid-Teens
NIM Moderated A Few Bps Sequentially
PPoP Grew A Tad Faster Than NII Due To Some Ops Leverage
Gross NPL Ratio Was Stable & Credit Costs Were Benign At 45 bps
Among Large Banks, ICICI Has Highest Standard Asset Provisioning
Only Fee Income Was A Bit Tepid, Growing 13% YoY