ICICI Bank (IBN - Free Report) released fourth-quarter fiscal 2023 (ended Mar 31) results. Net income was INR91.22 billion ($1.1 billion), up 30% from the prior-year quarter.
Results were driven by a rise in net interest income (NII) and non-interest income, higher rates, and growth in loans and deposits. However, provisions increased in the quarter. Also, higher operating expenses posed as the undermining factor.
NII & Fee Income Improve, Expenses Rise
NII jumped 40.2% year over year to INR176.67 billion ($2.2 billion). The net interest margin was 4.90%, up 90 basis points (bps).
Non-interest income (excluding treasury income) was INR51.27 billion ($624 million), up 11.3%. Fee income increased 10.6% to INR48.30 billion ($588 million).
In the reported quarter, IBN incurred a treasury loss of INR0.4 billion ($5 million) against a treasury income of INR1.29 billion ($16 million) in the year-ago quarter.
Operating expenses totaled INR89.28 billion ($1.1 billion), jumping 26.7% year over year.
Loans & Deposits Increase
As of Mar 31, 2023, ICICI Bank’s total advances were INR10,196.38 billion ($124.1 billion), up 18.7% year over year. Growth was primarily driven by a solid rise in retail loan balances, business banking loans and SME loans.
Total deposits grew 10.9% to INR11,808.41 billion ($143.7 billion).
Credit Quality: Mixed Bag
As of Mar 31, 2023, the net non-performing assets (NPA) ratio was 0.48%, down from 0.76% in the prior-year period. Recoveries and upgrades (excluding write-offs and sale) of NPAs were INR42.83 billion ($560 million) in the quarter.
In the fiscal fourth quarter, there were net additions of INR14 billion ($1.7 million) to gross NPA. Gross NPA additions were INR42.97 billion ($523 million), while gross NPA written-off was INR11.58 billion ($141 million).
Provisions (excluding provision for tax) surged 51.5% to INR16.19 billion ($197 million). This included an additional contingency provision of INR16.00 billion ($195 million) made on a prudent basis.
Capital Ratios Strong
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 18.34% and Tier-1 capital adequacy was 17.60% as of Mar 31, 2023. Both ratios were well above the minimum requirements.
Our Take
ICICI Bank’s quarterly performance was impressive on a robust rise in demand for consumer loans. Growth in NII was a major tailwind, which is expected to keep supporting the company's financial performance. However, elevated expenses and macroeconomic concerns are major near-term headwinds.
ICICI Bank currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Foreign Banks
Deutsche Bank (DB - Free Report) is scheduled to announce first-quarter 2023 numbers on Apr 27.
Over the past 30 days, the Zacks Consensus Estimate for Deutsche Bank’s quarterly earnings has remained unchanged at 55 cents, suggesting an 11.9% fall from the prior-year reported number.
HSBC Holdings (HSBC - Free Report) is slated to announce first-quarter 2023 numbers on May 2.
Over the past week, the Zacks Consensus Estimate for HSBC’s quarterly earnings has remained unchanged at $1.30, implying an 85.7% jump from the prior-year reported number.
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ICICI Bank (IBN - Free Report) released fourth-quarter fiscal 2023 (ended Mar 31) results. Net income was INR91.22 billion ($1.1 billion), up 30% from the prior-year quarter.
Results were driven by a rise in net interest income (NII) and non-interest income, higher rates, and growth in loans and deposits. However, provisions increased in the quarter. Also, higher operating expenses posed as the undermining factor.
NII & Fee Income Improve, Expenses Rise
NII jumped 40.2% year over year to INR176.67 billion ($2.2 billion). The net interest margin was 4.90%, up 90 basis points (bps).
Non-interest income (excluding treasury income) was INR51.27 billion ($624 million), up 11.3%. Fee income increased 10.6% to INR48.30 billion ($588 million).
In the reported quarter, IBN incurred a treasury loss of INR0.4 billion ($5 million) against a treasury income of INR1.29 billion ($16 million) in the year-ago quarter.
Operating expenses totaled INR89.28 billion ($1.1 billion), jumping 26.7% year over year.
Loans & Deposits Increase
As of Mar 31, 2023, ICICI Bank’s total advances were INR10,196.38 billion ($124.1 billion), up 18.7% year over year. Growth was primarily driven by a solid rise in retail loan balances, business banking loans and SME loans.
Total deposits grew 10.9% to INR11,808.41 billion ($143.7 billion).
Credit Quality: Mixed Bag
As of Mar 31, 2023, the net non-performing assets (NPA) ratio was 0.48%, down from 0.76% in the prior-year period. Recoveries and upgrades (excluding write-offs and sale) of NPAs were INR42.83 billion ($560 million) in the quarter.
In the fiscal fourth quarter, there were net additions of INR14 billion ($1.7 million) to gross NPA. Gross NPA additions were INR42.97 billion ($523 million), while gross NPA written-off was INR11.58 billion ($141 million).
Provisions (excluding provision for tax) surged 51.5% to INR16.19 billion ($197 million). This included an additional contingency provision of INR16.00 billion ($195 million) made on a prudent basis.
Capital Ratios Strong
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 18.34% and Tier-1 capital adequacy was 17.60% as of Mar 31, 2023. Both ratios were well above the minimum requirements.
Our Take
ICICI Bank’s quarterly performance was impressive on a robust rise in demand for consumer loans. Growth in NII was a major tailwind, which is expected to keep supporting the company's financial performance. However, elevated expenses and macroeconomic concerns are major near-term headwinds.
ICICI Bank currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Foreign Banks
Deutsche Bank (DB - Free Report) is scheduled to announce first-quarter 2023 numbers on Apr 27.
Over the past 30 days, the Zacks Consensus Estimate for Deutsche Bank’s quarterly earnings has remained unchanged at 55 cents, suggesting an 11.9% fall from the prior-year reported number.
HSBC Holdings (HSBC - Free Report) is slated to announce first-quarter 2023 numbers on May 2.
Over the past week, the Zacks Consensus Estimate for HSBC’s quarterly earnings has remained unchanged at $1.30, implying an 85.7% jump from the prior-year reported number.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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