InvestorQ : What is your quick take on the good results announced by ICICI Bank for Q2FY23?
Anamika Sodhani made post

What is your quick take on the good results announced by ICICI Bank for Q2FY23?

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Angel dcosta answered.
2 months ago
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For the second quarter of the fiscal year ended September 2022, ICICI Bank reported 14.4% growth in total revenues at Rs45,178 crore on a consolidated basis. Revenue growth was an impressive 15.2% in sequential terms compared to the June figure. For the quarter, ICICI Bank saw smart growth in the top line revenues across retail banking, corporate banking as well as from the rather volatile treasury operations.

In terms of operating profit performance, growth in gains was more robust across retail banking and corporate banking. However, the growth in operating profits was relatively subdued in treasury. The net interest income (NII) was up 26% yoy at Rs14,787 crore for the September 2022 quarter. At the same time, the net interest margin (NIM) surged from 4% to 4.31% yoy. Fee income spiked 18% at Rs4,480 crore. The retail loan portfolio grew 25% yoy while business banking portfolio grew 43%. Deposits were subdued at 12% yoy.

ICICI Bank

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 45,178

₹ 39,484

14.42%

₹ 39,218

15.20%

Operating Profit (Rs cr)

₹ 12,498

₹ 11,125

12.34%

₹ 11,123

12.36%

Net Profit (Rs cr)

₹ 8,007

₹ 6,092

31.44%

₹ 7,385

8.43%

Diluted EPS (Rs)

₹ 11.25

₹ 8.60

₹ 10.41

OPM

27.66%

28.18%

28.36%

Net Margins

17.72%

15.43%

18.83%

Let me turn to the profit performance. PAT for Q2FY23, rose 31.44% at Rs8,007 crore, helped by growth in NII and expansion of NIM. A sharp fall in provisions for loan losses by 39% at Rs1,644 crore in the quarter also helped. Gross NPAs fell from 3.41% to 3.19% in the quarter while net NPAs fell from 0.70% to 0.61% hinting at most losses already provided for.

PAT margins of the bank were higher at 17.72% in the Sep-22 quarter compared to 15.43% in Sep-21 year ago quarter but lower than 18.83% in June 2022 sequential quarter. Total capital adequacy for the bank standalone stood at 18.27% of which 17.51% was Tier 1 capital adequacy. That is comfortably above the statutory requirements.

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