ICICI Bank Q4 Results Review - Business Growth Remains Strong; NIM Compression On Expected Lines: Nirmal Bang

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.ICICI Bank Ltd.’s Q3 FY24 performance was better than our expectations, with net interest income/pre-provision operating profit/profit after tax coming in at a variation of 0.2%/0.5%/6.6% versus our estimates. PAT grew by 17.4% YoY on the back of strong loan growth of 16.8% YoY, lower credit cost with improved asset quality and part reversal of Rs 1.2 billion from the Rs 6.3 billion AIF provisions made in Q3 FY24. Net interest margin continued to compress by 3 bps QoQ to 4.4% due to 10 bps QoQ increase in the cost of funds due to a lag in deposit repricing and absence of IT refunds, which had 4 bps impact last year. We remain positive on ICICI Bank given its healthy growth outlook and earnings trajectory with return ratios expected to remain healthy. While the momentum in balance sheet growth is expected to remain strong, the bank has guided that the NIM will remain under pressure in the near term. We expect earnings to clock a compound annual growth rate of 13.2% over FY24-FY26E on the back of 16.3% CAGR in the loan book, 4.4% average NIM, 39.3% average cost/income ratio and 53 bps average credit cost..Click on the attachment to read the full report:.ICICI Bank Q4 Review - Steady Quarter; Cost Control Emerging As Additional Earnings Lever: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ICICI Bank Q4 Results Review - Business Growth Remains Strong; NIM Compression On Expected Lines: Nirmal Bang

We roll forward our valuation to March 2026E ABV of Rs 448, keeping the target multiple for the standalone entity unchanged at 2.7 times

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

ICICI Bank Q4 Results Review - Business Growth Remains Strong; NIM Compression On Expected Lines: Nirmal Bang

We roll forward our valuation to March 2026E ABV of Rs 448, keeping the target multiple for the standalone entity unchanged at 2.7 times

Choose a plan

Follow Us

DOWNLOAD THE APP