ICICI Bank Q4: Profit grows 59% to shatter forecasts and other key takeaways

ICICI Bank reported a 59% year-on-year jump in net profit to Rs 7,018.7 crore for the quarter ended March 31, helped by a sharp drop in provisions for possible bad loans.

Net interest income rose almost 21% to Rs 12,605 crore for the fiscal fourth quarter, India’s second-largest private-sector bank said. Non-interest income rose 11% to Rs 4,608 crore while fee income increased 14% to Rs 4,366 crore.

Net interest margin expanded to 4% from 3.84 percent a year ago and 3.96% in the previous quarter.

Profit exceeded analysts’ estimate of Rs 6,400-6,450 crore while net interest income was also above expectations.

The bank’s bottom line was boosted also by a 63% decline in provisions to Rs 1,069 crore as well as strong growth in retail and small business lending portfolio.

Net non-performing assets (NPAs) fell 25% to Rs 6,961 crore but gross NPAs rose to Rs 4,204 crore in the fourth quarter from Rs 4,018 crore in the third quarter.

Other key highlights

1) Core operating profit (profit before provisions and tax, excluding treasury income) grew by 19% year-on-year to Rs 10,164 crore in Q4.

2) Core operating profit grew by 22% to Rs 38,347 crore in the year ended March 31, 2022.

3) Profit after tax grew by 44% year-on-year to Rs 23,339 crore in FY2022.

4) Total deposits grew by 14% year-on-year to Rs 10,64,572 crore (US$ 140.5 billion) at March 31, 2022.

5)  Domestic loan portfolio grew by 17% year-on-year; average CASA ratio was 45%.

6) Retail loan portfolio grew 20%, and now accounts for almost 53% of the overall lending book.

7) Small business loans grew 34% while wholesale loan book grew 10% on-year.

8) Net NPA ratio declined to 0.76% at March 31, 2022 from 0.85% at December 31, 2021.

9) Provision coverage ratio on non-performing assets was 79.2% at March 31, 2022.

10) Total capital adequacy ratio was 19.16% and Tier-1 capital adequacy ratio was 18.35% on a standalone basis at March 31.