ICICI Bank Q4 Earnings Forecast: Anticipated 10% YoY Net Profit Surge Driven by Robust Loan and NII Growth

ICICI Bank is set to report impressive Q4 results, showcasing a robust growth trajectory that reflects its strong performance in the banking sector. Analysts predict a net profit increase of over 10% year-on-year, driven by significant loan growth and a steady rise in net interest income (NII). As the bank gears up to unveil its earnings for the July-September 2024-25 quarter, the anticipation is palpable.

Financial Highlights: Growth Across the Board

In Q2FY25, ICICI Bank’s core net interest income surged by 9.5% year-over-year, reaching an impressive ₹20,048 crore. This growth is largely attributed to a 15.7% increase in the bank’s domestic loan portfolio. However, net interest margins saw a slight dip, falling to 4.27%, down from 4.53% a year prior. This decline can be linked to a softening of interest-earning asset (IEA) yields, which now stand at 9.20%.

Non-Interest Income and Operating Profit

Non-interest income also showed positive momentum, climbing by 10.8% to ₹6,496 crore in the September quarter.
This growth was mainly driven by a robust 13.3% uptick in fee income, which hit ₹5,894 crore.

The bank’s core operating profit demonstrated a solid increase of 12.1% year-over-year, rising to ₹16,043 crore compared to ₹14,314 crore in Q2FY24.

Profit Growth and Asset Quality Improvement

ICICI Bank’s profit after tax experienced a substantial boost, soaring by 14.5% year-on-year to ₹11,746 crore, up from ₹10,261 crore in the same quarter last year.

In terms of asset quality, the bank has made noteworthy strides. The gross non-performing asset (NPA) ratio improved to 1.97% as of September 30, 2024, a drop from 2.15% at the end of the previous quarter. Furthermore, the net NPA ratio slightly decreased to 0.42%, down from 0.43%.

Conclusion: A Bright Future Ahead

As ICICI Bank prepares to announce its Q4 results, the financial indicators point towards a healthy and thriving institution. With solid loan growth, increased non-interest income, and improved asset quality, the outlook remains optimistic for the bank’s continued success in the competitive banking landscape. Investors and analysts alike will be keenly watching for further insights from this leading financial institution.