ICICI Bank's Q3FY18 net profit declines by 32% yoy; gross NPA at 7.8%
Analysts at Zee Business expected the bank’s NII at Rs 5,864 crore, while net profit at Rs 1,248.50 crore in Q3FY18.
Largest private lender ICICI Bank’s performance during December 2017 (Q3FY18) quarter was weak with bottom-line witnessing decline.
ICICI Bank standalone net profit came in at Rs 1,650.24 crore, declining by 32.42% from Rs 2,441.82 crore in the corresponding period of previous year.
Similarly, Q3FY18 net profit plunged by 19.82% from net profit of Rs 2,058.19 crore in preceding quarter.
Net Interest Income (NII) was at Rs 5,705.27 crore in this quarter, which was up by 6.37% from Rs 5,363.35 crore in Q3FY17, but mostly muted from Rs 5,709.07 crore in Q2FY18.
Domestic net interest margin was 3.53% and the overall net interest margin was 3.14% in Q3FY18.
Analysts at Zee Business expected the bank’s NII at Rs 5,864 crore, while net profit at Rs 1,248.50 crore in Q3FY18.
Provisions of ICICI Bank stood at Rs 3,569.56 crore - which increased by 31.59% compared to Rs 2,712.70 crore in Q3FY17, but decreased by 20.73% from Rs 4,502.93 crore in Q2FY18.
There was 160 basis points increase in provisioning coverage ratio to 60.9% (including cumulative prudential/ technical write-offs), further strengthening the balance sheet
At the same time, gross NPAs of ICICI Bank stood at Rs 46,038.70 crore - rising by 20.88% versus Rs 38,084.97 crore in Q3FY17 and up by 3.48% as against Rs 44,488.54 crore in Q2FY18.
In percentage terms, gross NPA was at 7.82% in Q3FY18 versus 7.20% of Q3FY17 and 7.87% in Q2FY18.
During Q3FY18, recoveries and upgrades of Rs 1,108 crore ($ 173 million) from non-performing loans in Q3-2018 compared to Rs 1,029 crore ($ 161 million) in Q2-2018 and Rs 625 crore ($ 98 million) in Q3-2017.
Core operating profit, excluding treasury income and exchange rate gains relating to overseas operations, increased by 10% year-on-year to Rs 4,992 crore ($ 782 million) this quarter, compared to Rs 4,549 crore ($ 712 million) in Q3FY17.
Here are key highlights of ICICI Bank’s performance during Q3FY18.
- Current and savings account (CASA) ratio at 50.4% at December 31, 2017.
- YoY growth in domestic advances was 16% at December 31, 2017 compared to growth of 13% at September 30, 2017.
- Bank has continued to leverage its strong retail franchise, resulting in a yoy growth of 22% in the retail portfolio during Q3 versus 19% growth in Q2FY18.
- Retail portfolio constituted about 54% of the loan portfolio of the Bank.
- Total advances increased by 10% yoy to Rs 505,387 crore ($ 79.1 billion) at Q3FY18, from Rs 457,469 crore ($ 71.6 billion) at Q3FY17 compared to growth of 6% yoy at Q2FY17.
- CASA deposits increased by 12% yoy to Rs 260,635 crore ($ 40.8 billion).
- Bank’s CASA ratio was 50.4% at Q3 compared to 49.5% at Q2FY18 and 49.9% at Q3FY17.
- Total deposits increased by 11% year-on-year to Rs 517,403 crore ($ 81.0 billion).
- Debit and credit card transactions continued to grow at a healthy rate of about 40% year-on-year in 9M-2018.
- Over 8.3 million Unified Payment Interface (UPI) Virtual Payment Addresses have been created using the Bank’s and partners’ platforms till December 31, 2017.
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