ICICI Bank Q3 Results Review - Firing On All Cylinders: Axis Securities

Axis Securities Report

ICICI Bank Ltd. reported strong advances growth of 20/4% YoY/QoQ, driven by sustained growth in the retail (up 23/4% YoY/QoQ), small and medium enterprise (up 25/8% YoY/QoQ), and the business banking book (up 38/5% YoY/QoQ).

Retail growth was primarily led by auto finance, personal loans, and credit card segment. Driven by strong credit growth and margin expansion (up 69/34 basis points YoY/QoQ), net interest income grew by 35/11% YoY/QoQ.

Fee income growth remained muted at 4/2% YoY/QoQ. Opex growth remains steady at 16/9% YoY/QoQ with the cost-income ratio at 38.2% versus 41.1% YoY/QoQ.

Pre-provision operating profit growth was healthy at 31/14% YoY/QoQ. Provisions were slightly higher (up 12/37% YoY/QoQ) owing to ICICI Bank tightening its provisioning norms for the corporate/SME segment’s nn performing assets.

Despite higher provisions, earnings growth was healthy at 34/10% YoY/QoQ.

Asset quality improved led by better recoveries despite marginally higher slippages from the agri pool. GNPA stood at 3.1% (down 106/down 12bps YoY/QoQ).

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