ICICI Bank (NYSE:IBN) Issues Quarterly Earnings Results

Key Points

• ICICI Bank beat quarterly expectations, reporting EPS of $0.47 versus the $0.40 consensus estimate and revenue of $9.19 billion, while net margin reached 25.60%.
• Profitability and lending growth remained strong: profit after tax rose 20.1% year over year and total loans increased 30%, driven especially by business banking and domestic corporate lending.
• Margins face near-term pressure from approximately $18 billion in FCNR deposits, with net interest margin falling to 4.18%; however, asset quality and capital remained strong, including a 0.3% net NPA ratio and 16.01% CET1 ratio.

ICICI Bank (NYSE:IBN - Get Free Report) released its quarterly earnings data on Saturday. The bank reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.07, FiscalAI reports. The company had revenue of $9.19 billion during the quarter, compared to analysts' expectations of $3.47 billion. ICICI Bank had a net margin of 25.60% and a return on equity of 13.81%.

Here are the key takeaways from ICICI Bank's conference call:

• Profitability remained strong, with profit before tax excluding treasury up 23.4% year over year and profit after tax up 20.1% to INR 148.43 billion. Core operating profit excluding subsidiary dividends rose 25%.
• Loan growth accelerated, with total loans up 30% year over year, or 24.1% excluding FCNR-related overseas loans. Business banking and domestic corporate loans grew particularly strongly, while management said growth reflects genuine customer demand rather than temporary FCNR fund parking.
• The bank mobilized approximately USD 18 billion of FCNR deposits, supporting future loan growth but putting near-term pressure on margins. Net interest margin declined to 4.18%, and management expects further moderation in Q3 before recovery from Q4 as the funds are deployed and rate benefits emerge.
• Asset quality improved, with the net NPA ratio falling to 0.3% from 0.5% in the prior quarter. Management indicated normalized credit costs could remain around 50 basis points, supported by lower retail NPA formation and substantial contingency provisions of INR 131 billion.
• Capital remained strong, with a CET1 ratio of 16.01% and total capital adequacy of 16.68%. Subsidiaries also reported growth, including higher value of new business at ICICI Life and improved profits at ICICI Life, ICICI General, ICICI AMC, and ICICI Securities.

ICICI Bank Stock Up 2.0%

Shares of ICICI Bank stock opened at $30.02 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.03 and a quick ratio of 1.03. The stock has a market cap of $107.77 billion, a price-to-earnings ratio of 19.00, a PEG ratio of 1.38 and a beta of 0.41. The firm's 50-day moving average is $28.98 and its two-hundred day moving average is $28.22. ICICI Bank has a 1 year low of $25.08 and a 1 year high of $33.03.

Analysts Set New Price Targets

A number of brokerages have recently commented on IBN. The Goldman Sachs Group began coverage on shares of ICICI Bank in a research report on Friday, August 21st. They set a "buy" rating on the stock. Zacks Research raised shares of ICICI Bank from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Sanford C. Bernstein upgraded ICICI Bank from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 21st. Finally, Wall Street Zen upgraded ICICI Bank from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy".

ICICI Bank Company Profile

ICICI Bank Limited is an India-based private-sector bank that provides banking and financial services to individuals, businesses, institutions and government entities. Its offerings include savings and current accounts, deposits, residential and commercial loans, personal loans, credit cards, payments, wealth management, insurance and investment products.

The bank serves retail customers through digital channels and a network of branches and ATMs, while its corporate and institutional businesses provide working-capital finance, term loans, trade finance, cash management, foreign-exchange services and other banking solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.