ICICI Bank Q3FY23 Results: Private lender’s profit, NII each grow 34%; asset quality improves - beat estimates

ICICI Bank Q3FY23 Results: ICICI Bank – the second largest private lender – on Saturday, January 21, reported strong earnings for the October-December quarter of the financial year 2022-23 (Q3FY23). The banking heavyweight’s results beat Zee Business' estimates with respect to profit, net interest income, and asset quality.

The private lender reported a 34 per cent jump in its standalone profit at Rs 8,312 crore for the quarter ended in December 2022, helped by healthy growth in net interest income. The bank had posted a net profit of Rs 6,194 crore in the same quarter a year ago.

According to Zee Business research, the bank was estimated to report a profit after tax of Rs 8,120 crore. Here, profit after tax is referred to the amount that remains after a company pays off all its operating and non-operating expenses and taxes

The bank's total income increased to Rs 33,529 crore in the latest December quarter from Rs 27,069 crore in the year-ago period, the bank said in a regulatory filing.

The bank’s net interest income (NII) – or the difference between interest earned and interest paid – increased by 34.6 per cent to Rs 16,465 crore in Q3FY23 from Rs 12,236 crore in the third quarter a year ago. Zee Business expected the bank to report a net interest income to come around Rs 15,730 crore.

ICICI Bank’s Net Interest Margin (NIM) – a key measure of profitability for lenders – too improved to 4.65 per cent as compared to 3.96 per cent in the same period a year ago.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 3.07 per cent as compared to 3.19 per cent quarter-on-quarter and Net NPAs also eased to 0.55 per cent as against 0.61 per cent QoQ.

The bank's consolidated profit increased by 34.5 per cent to Rs 8,792 crore from Rs 6,536 crore in the third quarter of FY22.

Highlights:

Fee income grew by 3.7 per cent year-on-year to Rs 4,448 crore (US$ 538 million) in Q3FY23 from Rs 4,291 crore (US$ 519 million) in Q3FY22.

Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q3FY23.

There was a treasury gain of Rs 36 crore (US$ 4 million) in Q3FY23 compared to Rs 88 crore (US$ 11 million) in Q3FY22.

Provisions (excluding provision for tax) increased by 12.5% year-on-year to Rs 2,257 crore (US$ 273 million) in Q3FY3 from Rs 2,007 crore (US$ 243 million) in Q3FY22.