ICICI Bank Q1 results preview: Net profit likely to jump 33%, asset quality may remain steady
According to Zee Business research, ICICI Bank is likely to report a 32.7 per cent year-on-year jump in standalone net profit to Rs 9,160 crore for the April-June period. The analysts peg ICICI Banks net interest margin for the three-month period at 4.8 per cent.
ICICI Bank — the country's second-largest lender by market value — is all set to report its financial results for the April-June period on Saturday, July 22. Analysts expect the private sector banking behemoth to stage a strong performance driven by double-digit loan growth and steady asset quality.
According to Zee Business research, ICICI Bank is estimated to report a standalone net profit of Rs 9,160 crore for the first quarter of the current financial year, which translates to an increase of 32.7 per cent compared with the corresponding period a year ago.
The analysts estimate its net interest income (NII) — or the difference between interest earned and interest paid — to expand 34.6 per cent on a year-on-year basis to Rs 17,780 crore for the June quarter.
The lender is expected to register growth to the tune of 18 per cent and 16 per cent in loans and deposits for the three-month period respectively, according to the research.
ICICI Bank's net interest margin (NIM) — a key measure of profitability — is pegged at 4.8 per cent for the three-month period, as against 4.9 per cent for the March quarter.
Analysts expect the SME and retail segments to lead loan growth for ICICI Bank and its credit costs to remain stable.
Asset quality
The lender's asset quality, measured as the percentage of non-performing assets (NPAs) or bad loans in total loans, is likely to remain steady.
According to Zee Business research, ICICI Bank's gross NPAs are estimated to be in the range of 2.7-2.8 per cent for the June quarter, as against 2.81 per cent for the previous three months. Its net NPAs are estimated to remain unchanged sequentially at 0.48 per cent.
How ICICI Bank fared in Q4
For the last quarter of the financial year 2022-23, ICICI Bank reported a 30 per cent year-on-year jump in net profit to Rs 9,121.9 crore and 40.2 per cent growth in net interest income to Rs 17,666.8 crore.
The lender's net interest margin came in at 4.9 per cent for the March quarter.
ICICI Bank shares: Past performance
ICICI Bank shares finished the June quarter with a gain of 6.5 per cent, underperforming a rise of more than 10 per cent each in the Nifty and Nifty Bank indices.
As of July 21, ICICI Bank shares have grown 10.9 per cent in value for the year, in line with an 8.5 per cent rise in the headline index.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.