ICICI Bank’s ( IBN Quick Quote IBN - Free Report) fourth-quarter fiscal 2022 (ended Mar 31) net income was INR70.19 billion ($926 million), jumping 59% from the prior-year quarter. Shares of IBN have rallied 2.9% in pre-market trading, gaining investors’ confidence on solid quarterly performance. The full-day trading session will display a clearer picture. Results were driven by a rise in net interest income, non-interest income and growth in loans and deposits. Provisions also declined during the quarter. However, higher operating expenses posed a headwind. In fiscal 2022, net income of INR233.39 billion ($3.1 billion) surged 44% from the prior year. Net Interest Income & Fee Income Up, Expenses Rise
Net interest income rose 21% year over year to INR126.05 billion ($1.7 billion). Net interest margin was 4.00%, up 16 basis points (bps).
Non-interest income (excluding treasury income) was INR46.08 billion ($608 million), up 11%. Fee income increased 14% to INR43.66 billion ($576 million). Fees from retail, business banking and SME customers constituted approximately 77% of total fees in the quarter. Treasury income gain was INR1.29 billion ($17 million) in the reported quarter against a treasury loss of INR0.25 billion ($3 million) in the year-ago quarter. Operating expenses totaled INR70.49 billion ($930 million), increasing 17%. Loans & Deposits Increase
As of Mar 31, 2022, ICICI Bank’s total advances were INR8,590.2 billion ($113.3 billion), up 17% year over year. The growth was driven by a solid rise in demand for retail loans (excluding rural loans), which improved 20% and accounted for 52.8% of the total loan portfolio.
Total deposits grew 14% to INR10,645.72 billion ($140.5 billion). Credit Quality Improves
As of Mar 31, 2022, net non-performing assets (NPA) ratio was 0.76%, down 38 bps sequentially. Recoveries and upgrades (excluding write-offs and sale) of NPAs were INR46.93 billion ($619 million) in the quarter.
Gross NPA deletions were INR4.89 billion ($65 million) compared with INR1.91 billion ($25 million) in the prior quarter. During the fiscal fourth quarter, gross NPAs additions were INR42.04 billion ($555 million), while gross NPA written off was INR26.44 billion ($349 million). Provisions (excluding provision for tax) plunged 63% from the prior-year quarter to INR10.69 billion ($141 million). This included an additional contingency provision of INR10.25 billion ($135 million) made on a prudent basis during the reported quarter. Thus, as of Mar 31, 2022, ICICI Bank held a total contingency provision of INR74.5 billion ($983 million). Capital Ratios Strong
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 19.16% and Tier-1 capital adequacy was 18.35% as of Mar 31, 2022. Both the ratios were well above the minimum requirements.
ICICI Bank’s quarterly performance was impressive on the back of a robust rise in demand for consumer loans. Growth in net interest income was a major tailwind, which is expected to support the company's financial performance, going forward. However, elevated expenses are likely to adversely impact the bank’s bottom line.
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 Dates of Other Foreign Banks
Now we look forward to the earnings releases of
UBS Group AG ( UBS Quick Quote UBS - Free Report) , HSBC Holdings ( HSBC Quick Quote HSBC - Free Report) and Barclays ( BCS Quick Quote BCS - Free Report) . Both UBS Group and HSBC are scheduled to announce first-quarter 2022 results on Apr 26. Barclays is slated to report the same on Apr 28.