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01/10 19:46
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents mixed signals. Basic financial performance is stable with growth in deposits and loans, but NIMs have slightly declined. The Q&A reveals uncertainty in growth revival and unclear management responses. While there are positives like strong business banking performance and increased dividend income, the cautious outlook on growth and unchanged guidance suggest a neutral sentiment. The market's reaction is likely to be muted, resulting in a stock price movement within the neutral range of -2% to 2%.
Profit Before Tax (excluding treasury) INR 156.90 billion, grew by 11.4% year-on-year. The growth is attributed to a 360-degree customer-centric approach and serving opportunities across ecosystems and micro markets.
Core Operating Profit INR 175.05 billion, increased by 13.6% year-on-year. The increase reflects operational resilience and enhanced delivery capabilities.
Profit After Tax INR 127.68 billion, grew by 15.5% year-on-year. The growth is due to strong operational performance and treasury gains.
Total Deposits Grew by 12.8% year-on-year and were flat sequentially. Average deposits grew by 11.2% year-on-year and 3.1% sequentially, driven by growth in current and savings account deposits.
Domestic Loan Portfolio Grew by 12% year-on-year and 1.5% sequentially. Growth was driven by business banking and retail loans, while rural portfolio declined.
Net NPA Ratio 0.41% at June 30, 2025, compared to 0.43% at June 30, 2024. Improvement reflects better credit quality and recoveries.
Net Interest Income INR 216.35 billion, increased by 10.6% year-on-year. Growth driven by higher interest income and stable net interest margins.
Non-Interest Income (excluding treasury) INR 72.64 billion, grew by 13.7% year-on-year. Growth driven by higher fee income and dividend income from subsidiaries.
Operating Expenses Increased by 8.2% year-on-year. Employee expenses rose by 8.5% due to annual increments and promotions, while non-employee expenses increased by 8%.
Provisions INR 18.15 billion, compared to INR 13.32 billion in Q1 of last year. Increase due to seasonality of KCC provisioning and higher contingency provisions.
Dividend Income from Subsidiaries INR 13.36 billion, compared to INR 8.94 billion in Q1 of last year. Increase due to higher dividends from ICICI Securities, ICICI AMC, and ICICI General.
Gross NPA Additions INR 62.45 billion, compared to INR 59.16 billion in Q1 of last year. Increase due to higher additions from the Kisan credit card portfolio.
Net Interest Margin (NIM) 4.34% in this quarter, compared to 4.36% in Q1 of last year. Slight decline due to changes in computation convention and interest rate dynamics.
Domestic loan portfolio growth: Grew by 12% year-on-year and 1.5% sequentially as of June 30, 2025.
Business banking portfolio growth: Increased by 29.7% year-on-year and 3.7% sequentially.
Retail loan portfolio growth: Grew by 6.9% year-on-year and 0.5% sequentially.
Overseas loan portfolio: Accounted for 2.4% of the overall loan book as of June 30, 2025.
Profit before tax (excluding treasury): Increased by 11.4% year-on-year to INR 156.90 billion.
Core operating profit: Grew by 13.6% year-on-year to INR 175.05 billion.
Net NPA ratio: Improved to 0.41% as of June 30, 2025, compared to 0.43% a year earlier.
Net interest income: Increased by 10.6% year-on-year to INR 216.35 billion.
Non-interest income: Grew by 13.7% year-on-year to INR 72.64 billion.
Focus on technology: Investments in digital channels and system resilience to simplify customer solutions.
Capital adequacy: Maintained a CET1 ratio of 16.31% and total capital adequacy ratio of 16.97% as of June 30, 2025.
Rural Portfolio Decline: The rural portfolio declined by 0.4% year-on-year and 1.5% sequentially, indicating potential challenges in rural lending or demand.
Net NPA Additions: Net additions to gross NPAs were INR 30.34 billion in the current quarter, up from INR 26.24 billion in Q1 of last year, reflecting a rise in non-performing assets.
Kisan Credit Card NPAs: Gross NPA additions from the Kisan credit card portfolio were INR 7.67 billion, showing seasonal and structural risks in this segment.
Corporate and Business Banking NPAs: Net additions to gross NPAs in the corporate and business banking portfolios were INR 3.66 billion, compared to a net deletion in Q1 of last year, indicating deteriorating credit quality in this segment.
Credit Card Portfolio Decline: The credit card portfolio declined by 5.4% sequentially, suggesting potential challenges in consumer spending or credit card usage.
Auto Loans Decline: Auto loans declined by 0.7% sequentially, indicating possible challenges in the auto financing segment.
Loans to NBFCs and HFCs: The total outstanding to NBFCs and HFCs declined, reflecting reduced exposure or potential risks in this sector.
BB and Below Rated Portfolio: Loans and non-fund-based outstanding to performing corporate borrowers rated BB and below increased to INR 29.95 billion, indicating higher exposure to lower-rated borrowers.
Provisioning Increase: Total provisions during the quarter were INR 18.15 billion, up from INR 13.32 billion in Q1 of last year, reflecting increased provisioning requirements.
International Subsidiaries Performance: ICICI Bank Canada and ICICI Bank U.K. reported lower profits compared to Q1 of last year, indicating challenges in international operations.
Future growth opportunities: The company sees many opportunities to drive risk-calibrated profitable growth and grow market share across key segments.
Balance sheet and capital management: The company remains focused on maintaining a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable and predictable returns to shareholders.
Interest rate impact: The impact of transmission of repo rate cuts on external benchmark linked loans is expected to be higher in the second quarter, partially offset by reduction in savings account interest rates and gradual repricing of term deposits.
Technology investments: The company continues to enhance the use of technology in operations to provide simplified solutions to customers and make investments in digital channels, while strengthening system resilience and simplifying processes.
Dividend income from subsidiaries: Dividend income from subsidiaries was INR 13.36 billion in this quarter compared to INR 8.94 billion in Q1 of last year. The year-on-year increase in dividend income was primarily due to higher dividend from ICICI Securities, ICICI AMC and ICICI General and receipt of dividend from ICICI Securities primary dealership in the current quarter compared to Q2 of last year.
The earnings call summary reveals a stable financial performance with range-bound margins and improving asset quality. However, the lack of specific guidance and vague management responses in the Q&A session, particularly regarding CEO tenure and NIM projections, introduces uncertainty. No significant positive catalysts like partnerships or strong guidance were mentioned, and the absence of market cap data limits insight into potential stock reactions. Thus, the prediction remains neutral.
The earnings call presents mixed signals. Basic financial performance is stable with growth in deposits and loans, but NIMs have slightly declined. The Q&A reveals uncertainty in growth revival and unclear management responses. While there are positives like strong business banking performance and increased dividend income, the cautious outlook on growth and unchanged guidance suggest a neutral sentiment. The market's reaction is likely to be muted, resulting in a stock price movement within the neutral range of -2% to 2%.
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