We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBN's Q1 Earnings Rise Y/Y on Strong NII & Fee Income, Provisions Up
Read MoreHide Full Article
Key Takeaways
ICICI Bank's Q1 net income rose 15.5% Y/Y to INR127.7B, driven by NII, non-interest income, and loan growth.
NII climbed 10.6% Y/Y to INR216.3B, while non-interest income rose 13.7% to INR72.6B in the quarter.
Operating expenses increased 8.2% and provisions surged 24.1%, while deposits declined slightly.
ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter.
Results were driven by a rise in net interest income (NII), non-interest income and growth in loans. However, higher operating expenses, decline in deposits and provisions were the headwinds.
IBN’s NII & Fee Income Up, Expenses Rise
NII grew 10.6% year over year to INR216.3 billion ($2.5 billion). The net interest margin was 4.34%, down 2 basis points.
Non-interest income was INR72.6 billion ($847 million), up 13.7% year over year. Fee income increased 7.5% year over year to INR59 billion ($688 million).
In the reported quarter, IBN recorded a treasury income of INR12.4 billion ($145 million) compared with a treasury gain of INR6.1 billion ($71 million) in the prior-year quarter.
Operating expenses totaled INR113.9 billion ($1.33 billion), up 8.2% year over year.
ICICI Bank’s Loans Increase & Deposits Decrease
As of June 30, 2025, ICICI Bank’s total advances were INR13,641.5 billion ($159.1 billion), up 1.7% sequentially. Growth was primarily driven by a solid rise in business banking loans.
Total deposits declined marginally on a sequential basis to INR16,085.2 billion ($187.6 billion).
IBN’s Credit Quality: Mixed Bag
As of June 30, 2025, the net non-performing assets (NPA) ratio was 0.41%, which declined from 0.43% in the prior-year quarter. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR32.11 billion ($374 million) in the reported quarter.
In the fiscal first quarter, there were net additions of INR30.34 billion ($354 million) to gross NPA. Further, gross NPA additions were INR62.45 billion ($728 million), while gross NPA written-off was INR23.59 billion ($275 million).
Provisions (excluding provision for tax) increased 36.2% year over year to INR18.1 billion ($212 million). As of June 20, 2025, the bank held a total contingency provision of INR 131 billion ($1.5 billion).
Capital Ratios Strong for ICICI Bank
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.97%. Tier-1 capital adequacy was 16.31% as of June 30, 2025. Both ratios were well above the minimum requirements.
Our Take on IBN
Increased consumer loan demand and growth in NII and non-interest income are anticipated to continue supporting ICICI Bank’s financials. However, elevated expenses, decreasing deposit balances and weak asset quality amid macroeconomic uncertainties are near-term challenges.
ICICI Bank Limited Price, Consensus and EPS Surprise
HSBC Holdings plc (HSBC - Free Report) is scheduled to announce second-quarter 2025 numbers on July 30. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The consensus estimate for HSBC’s quarterly earnings has remained unchanged at $1.62 per share over the past week. The figure implies a decline of 1.8% from the prior-year quarter.
Deutsche Bank AG (DB - Free Report) is slated to report second-quarter 2025 results on July 24.
The Zacks Consensus Estimate for DB’s quarterly earnings has remained unchanged at 78 cents per share over the past week. The figure implies an increase of 290% from the prior-year quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IBN's Q1 Earnings Rise Y/Y on Strong NII & Fee Income, Provisions Up
Key Takeaways
ICICI Bank Ltd.’s (IBN - Free Report) net income for the first quarter of fiscal 2025 (ended June 30) was INR127.7 billion ($1.5 billion), up 15.5% from the prior-year quarter.
Results were driven by a rise in net interest income (NII), non-interest income and growth in loans. However, higher operating expenses, decline in deposits and provisions were the headwinds.
IBN’s NII & Fee Income Up, Expenses Rise
NII grew 10.6% year over year to INR216.3 billion ($2.5 billion). The net interest margin was 4.34%, down 2 basis points.
Non-interest income was INR72.6 billion ($847 million), up 13.7% year over year. Fee income increased 7.5% year over year to INR59 billion ($688 million).
In the reported quarter, IBN recorded a treasury income of INR12.4 billion ($145 million) compared with a treasury gain of INR6.1 billion ($71 million) in the prior-year quarter.
Operating expenses totaled INR113.9 billion ($1.33 billion), up 8.2% year over year.
ICICI Bank’s Loans Increase & Deposits Decrease
As of June 30, 2025, ICICI Bank’s total advances were INR13,641.5 billion ($159.1 billion), up 1.7% sequentially. Growth was primarily driven by a solid rise in business banking loans.
Total deposits declined marginally on a sequential basis to INR16,085.2 billion ($187.6 billion).
IBN’s Credit Quality: Mixed Bag
As of June 30, 2025, the net non-performing assets (NPA) ratio was 0.41%, which declined from 0.43% in the prior-year quarter. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR32.11 billion ($374 million) in the reported quarter.
In the fiscal first quarter, there were net additions of INR30.34 billion ($354 million) to gross NPA. Further, gross NPA additions were INR62.45 billion ($728 million), while gross NPA written-off was INR23.59 billion ($275 million).
Provisions (excluding provision for tax) increased 36.2% year over year to INR18.1 billion ($212 million). As of June 20, 2025, the bank held a total contingency provision of INR 131 billion ($1.5 billion).
Capital Ratios Strong for ICICI Bank
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.97%. Tier-1 capital adequacy was 16.31% as of June 30, 2025. Both ratios were well above the minimum requirements.
Our Take on IBN
Increased consumer loan demand and growth in NII and non-interest income are anticipated to continue supporting ICICI Bank’s financials. However, elevated expenses, decreasing deposit balances and weak asset quality amid macroeconomic uncertainties are near-term challenges.
ICICI Bank Limited Price, Consensus and EPS Surprise
ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited Quote
ICICI Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Foreign Banks
HSBC Holdings plc (HSBC - Free Report) is scheduled to announce second-quarter 2025 numbers on July 30. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The consensus estimate for HSBC’s quarterly earnings has remained unchanged at $1.62 per share over the past week. The figure implies a decline of 1.8% from the prior-year quarter.
Deutsche Bank AG (DB - Free Report) is slated to report second-quarter 2025 results on July 24.
The Zacks Consensus Estimate for DB’s quarterly earnings has remained unchanged at 78 cents per share over the past week. The figure implies an increase of 290% from the prior-year quarter.