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ICICI Bank (IBN) Poised for Growth Amid Rise in Retail Loans
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On Jun 7, we issued an updated research report on ICICI Bank Ltd. (IBN - Free Report) . The company is well positioned to continue benefiting from a rise in retail loans and improving fee income.
Shares of ICICI Bank have gained 34.7% so far this year, outperforming the 7.5% rally for the Zacks categorized Foreign Banks industry.
Notably, this Zacks Rank #2 (Buy) stock’s earnings estimates for fiscal 2018 and fiscal 2019 have remained stable over the last 30 days.
ICICI Bank has been marketing retail deposits on a large scale, chiefly to lower its funding costs and create a stable funding base. In fiscal 2017, retail loans grew 18.5% year over year. This makes the company well positioned to deal with a more challenging rate environment.
Also, as domestic loans comprise majority of overall loan portfolio, the bank is less likely to be affected by global concerns. ICICI Bank projects domestic loan growth at around 15–16% for fiscal 2018.
Further, ICICI Bank has been witnessing a continued increase in non-interest income, driven by successfully leveraging its technological initiatives. Also, increased digitization will help the company garner more fee income in the quarters head. Notably, in fiscal 2018, the company anticipates double digit growth in fee income, mainly a result of rise in retail fees.
On the flip side, ICICI Bank has been witnessing a persistent decline in asset quality over the last several quarters, with a similar trend expected to persist in the near-term. Moreover, mounting operating expenses remain another major headwind for the company.
Banco Santander witnessed an upward earnings estimate revision of 8.7% for the current year, in the last 60 days. So far this year, its share price rallied 25.9%.
HSBC witnessed a marginal upward earnings estimate for the current year, in the last 60 days. Its share price increased 10.2%, year to date.
For the current year, UBS Group’s Zacks Consensus Estimate has been revised 5% upward, in the last 60 days. Its share price increased 2.6% so far this year.
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ICICI Bank (IBN) Poised for Growth Amid Rise in Retail Loans
On Jun 7, we issued an updated research report on ICICI Bank Ltd. (IBN - Free Report) . The company is well positioned to continue benefiting from a rise in retail loans and improving fee income.
Shares of ICICI Bank have gained 34.7% so far this year, outperforming the 7.5% rally for the Zacks categorized Foreign Banks industry.
Notably, this Zacks Rank #2 (Buy) stock’s earnings estimates for fiscal 2018 and fiscal 2019 have remained stable over the last 30 days.
ICICI Bank has been marketing retail deposits on a large scale, chiefly to lower its funding costs and create a stable funding base. In fiscal 2017, retail loans grew 18.5% year over year. This makes the company well positioned to deal with a more challenging rate environment.
Also, as domestic loans comprise majority of overall loan portfolio, the bank is less likely to be affected by global concerns. ICICI Bank projects domestic loan growth at around 15–16% for fiscal 2018.
Further, ICICI Bank has been witnessing a continued increase in non-interest income, driven by successfully leveraging its technological initiatives. Also, increased digitization will help the company garner more fee income in the quarters head. Notably, in fiscal 2018, the company anticipates double digit growth in fee income, mainly a result of rise in retail fees.
On the flip side, ICICI Bank has been witnessing a persistent decline in asset quality over the last several quarters, with a similar trend expected to persist in the near-term. Moreover, mounting operating expenses remain another major headwind for the company.
Other Stocks that Warrant a Look
Other stocks in Foreign Banks category worth considering include Banco Santander, S.A. (SAN - Free Report) , HSBC Holdings plc (HSBC - Free Report) and UBS Group AG (UBS - Free Report) . All these carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Banco Santander witnessed an upward earnings estimate revision of 8.7% for the current year, in the last 60 days. So far this year, its share price rallied 25.9%.
HSBC witnessed a marginal upward earnings estimate for the current year, in the last 60 days. Its share price increased 10.2%, year to date.
For the current year, UBS Group’s Zacks Consensus Estimate has been revised 5% upward, in the last 60 days. Its share price increased 2.6% so far this year.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy.
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>