ICICI Bank Q1 Results: Net profit rises 14.6% to ₹11,059 crore on treasury gains, loan growth; NII up 7.3% YoY

ICICI Bank Q1 Results: ICICI Bank announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Saturday, July 27, reporting a rise of 14.6 per cent in standalone net profit to ₹11,059 crore, compared to ₹9,648.2 crore in the corresponding period last year. The growth in net profit for India's second-largest private lender by market cap was due to robust loan growth, healthy core lending income, and solid treasury operations in the June quarter.

The private sector lender's net interest income (NII)—the difference between interest earned on loans and paid on deposit—rose 7.4 per cent in the first quarter of the current fiscal year at ₹19,553 crore, compared to ₹18,226 crore in the year-ago period. The net interest margin (NIM) -- a key gauge of profitability -- fell to 4.36 per cent, compared to 4.78 per cent a year earlier and 4.40 per cent in the previous quarter due to an increased cost of funds.

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ICICI Bank Q1 Results - Key Metrics

The NII growth was restricted majorly by the over 0.40 per cent narrowing in the NIM and a nearly 16 per cent domestic loan growth. The bank's non-interest income grew 23 per cent to ₹6,389 crore, excluding the performance of the treasury operations, while the treasury gains alone more than doubled to ₹613 crore in the June quarter from ₹252 crore in the year-ago period.

ICICI Bank's total loans grew by 15.9 per cent in the June quarter, while asset quality improved, with the gross non-performing assets (NPA) ratio at 2.15 per cent as of June 2024, compared to 2.16 per cent at the end of the prior three months in 2024. The net NPA was 0.43 per cent, compared to 0.42 per cent in the preceding March quarter of FY24.

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The fresh slippages increased to ₹5,916 crore for the reporting quarter. They were driven by the retail, rural, and business banking segments, collectively contributing ₹5,732 crore of the dud loans. Deposits rose 15 per cent year-on-year (YoY) to ₹14.26 lakh crore, while advances were up 15.6 per cent YoY to ₹12.23 lakh crore. 

The core operating profit grew by 11 per cent YoY to ₹15,412 crore in Q1FY25 from ₹13,887 crore in Q1FY24. The average current account and savings account (CASA) ratio was 39.6 per cent in Q1FY25. The domestic loan portfolio grew by 15.9 per cent YoY to ₹11,88,587 crore in the June quarter.

ICICI Bank’s loan portfolio is dominated by retail loans, accounting for nearly 55 per cent at the end of March 2024. The bank added 64 branches during the quarter, bringing its total network size to 6,587. The value of the bank’s merchant acquiring transactions through UPI grew by 51.6 per cent YoY.

Provisions rose 3.1 per cent YoY to ₹1,332.2 crore in the June quarter. The bank's capital adequacy ratio was 16.63 per cent, including core tier-I capital at 15.92 per cent. The management attributed the uptick to a seasonal impact on the Kisan Credit Card (KCC), which experienced fresh slippages of ₹721 crore. 

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Among its subsidiaries, the bank's life insurance arm's net increased to ₹225 crore from ₹207 crore in the year-ago period. The general insurance arm posted a 49 per cent jump in net at ₹580 crore, and the asset management company saw its net profit increase to ₹633 crore from ₹474 crore in the year-ago period. The bank management also informed that during the quarter, it infused ₹500 crore into the dedicated home loan finance arm.

Shares of ICICI Bank have rallied 20.6 per cent year-to-date (YTD) and around 22 per cent in the last one year. The banking heavyweight has given 8.39 per cent returns to investors in the last three months. On Friday, shares of ICICI Bank settled 0.81 per cent higher at ₹1,207.70 against a 52-week high of ₹1,257.65 apiece on the BSE. The bank commands a market cap of ₹8,50,020.53 crore.