ICICI Bank’s Fourth Quarter Earnings: ICICI Bank’s Fourth Quarter Earnings: Autonomous Net Profit Jumps 59% YoY; 5 takeaway meals
Sequentially, net profit increased by 13.32% from Rs 6,193.81 crore.
Analysts had estimated 45-65% year-on-year net profit growth for the private lender in January-March.
India’s second-largest private bank’s net interest income saw a 21% year-on-year increase to Rs 12,605 crore in January-March from Rs 10,431 crore a year ago .
Net interest income is the difference between interest earned and interest spent. In the fourth quarter of the previous year, the private bank’s net interest margin was 4%, compared to 3.84% a year ago and 3.96% in the quarter ended December 31.
Growth in net interest income is lower than Street estimates, as analysts had forecast net interest income (NII) growth of 22-27% while they estimate earnings growth in the range of 46 to 65% year-on-year.
For the previous financial year as a whole, ICICI Bank’s after-tax profit rose 44% year-on-year to Rs 23,339 crore.
The private bank reported an improvement in asset quality over the past quarter, with both gross and net non-performing asset ratios declining year-over-year as well as on a sequential basis.
As of March 31, the bank’s gross NPA ratio was 3.60% compared to 4.13% a quarter ago and 4.96% a year ago.
The net NPA ratio was 0.76% as of March 31 compared to 0.85% as of December 31 and 1.14% a year ago.
As of March 31, the bank’s Basel III capital ratio stood at 19.16% compared to 17.91% a quarter ago and 19.12% a year ago.
The provision coverage ratio on non-performing assets was 79.2% as of March 31, 2022.
“NPA recoveries and upgrades, excluding write-offs and sales, increased to 4,693 crore (US$619 million) in Q4-2022 from 4,209 crore (US$555 million) in Q3-2022. Gross NPAs written off in the fourth quarter of 2022 were 2,644 crore rupees (US$349 million),” the bank said in an exchange filing.
As of March 31, ICICI Bank’s total advances registered a 17% year-on-year growth to reach Rs 859,020 crore. Sequentially, the
growth in domestic advances was 6 percent.
For the reporting period, ICICI Bank’s retail loan portfolio, excluding rural loans, increased 20% year-on-year and 6% sequentially, accounting for 52.8% of the total March, 31st.
The business banking portfolio grew 43% year-on-year and 10% sequentially as of March 31, the bank said.
Small and medium business activity, which includes borrowers with turnover of less than Rs 250 crore, was up 34% year-on-year and 11% quarter-on-quarter.
SME activity, comprised of borrowers with revenue of less than Rs 250 crore (US$33 million), grew 34% year-on-year and 11% sequentially in March 31, 2022.
National wholesale banking portfolio growth was 10% year-on-year as of March 31, 2022.
As of March 31, ICICI Bank’s total deposits increased by 14% year-on-year to Rs 1,064,572 crore. Sequential deposit growth was 5%.
Average current account savings account deposits increased 23% year-on-year from January to March.
Total fixed deposits increased by 9% year-on-year to reach 546,135 crore rupees (72.1 billion US dollars) as of March 31, 2022.
PROVISIONS DECLINE YOY
For the quarter under review, ICICI Bank’s provisions excluding tax provision decreased by 63% year-on-year to Rs 1,069.
of Rs 2,883 crore at the same time a year ago.
Provisions for the fourth quarter of the prior year included a contingency provision of Rs 1,025 crore made over a
cautious, the bank informed the exchanges.
“The bank continues to carry a provision related to Covid-19 of Rs 6,425 crore ($848 million) as of March 31, 2022 as contingencies as of March 31, 2022,” the bank said.
“Currently, as the number of new Covid-19 cases has declined significantly and the Indian government has lifted most of the Covid-19 related restrictions, the future trajectory of the pandemic could impact the Bank’s results. and the Group. .”
In the last quarter of 2021-22 (April-March), ICICI Bank’s pre-tax profit recorded a year-on-year growth of 63% to Rs 9,224.
of Rs 5,657 crore at the same time a year ago.
The bank’s board has recommended a dividend of Rs 5 per share and record/book dates will be announced in due course, according to the exchange filing.