ICICI Bank (NYSE:IBN) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

ICICI Bank (NYSE:IBN) announced its quarterly earnings results on Saturday. The bank reported $0.47 EPS for the quarter, beating the consensus estimate of $0.40 by $0.07, FiscalAI reports. ICICI Bank had a return on equity of 13.81% and a net margin of 25.60%. The business had revenue of $9.19 billion for the quarter, compared to analyst estimates of $3.47 billion.

Here are the key takeaways from ICICI Bank’s conference call:

• Profitability remained strong, with profit before tax excluding treasury up 23.4% year over year and profit after tax up 20.1% to INR 148.43 billion. Core operating profit excluding subsidiary dividends rose 25%.
• Loan growth accelerated, with total loans up 30% year over year, or 24.1% excluding FCNR-related overseas loans. Business banking and domestic corporate loans grew particularly strongly, while management said growth reflects genuine customer demand rather than temporary FCNR fund parking.
• The bank mobilized approximately USD 18 billion of FCNR deposits, supporting future loan growth but putting near-term pressure on margins. Net interest margin declined to 4.18%, and management expects further moderation in Q3 before recovery from Q4 as the funds are deployed and rate benefits emerge.
• Asset quality improved, with the net NPA ratio falling to 0.3% from 0.5% in the prior quarter. Management indicated normalized credit costs could remain around 50 basis points, supported by lower retail NPA formation and substantial contingency provisions of INR 131 billion.
• Capital remained strong, with a CET1 ratio of 16.01% and total capital adequacy of 16.68%. Subsidiaries also reported growth, including higher value of new business at ICICI Life and improved profits at ICICI Life, ICICI General, ICICI AMC, and ICICI Securities.

ICICI Bank Trading Up 2.0%

IBN opened at $30.02 on Friday. ICICI Bank has a 1-year low of $25.08 and a 1-year high of $33.03. The stock has a market capitalization of $107.77 billion, a PE ratio of 19.00, a PEG ratio of 1.38 and a beta of 0.41. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.57. The firm has a 50-day moving average price of $28.98 and a two-hundred day moving average price of $28.22.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Sanford C. Bernstein raised ICICI Bank from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 21st. Wall Street Zen upgraded shares of ICICI Bank from a “sell” rating to a “hold” rating in a research note on Saturday, August 29th. Zacks Research raised shares of ICICI Bank from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. Finally, The Goldman Sachs Group began coverage on shares of ICICI Bank in a research report on Friday, August 21st. They set a “buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, ICICI Bank presently has an average rating of “Moderate Buy”.

ICICI Bank Company Profile

ICICI Bank Limited is an India-based private-sector bank that provides banking and financial services to individuals, businesses, institutions and government entities. Its offerings include savings and current accounts, deposits, residential and commercial loans, personal loans, credit cards, payments, wealth management, insurance and investment products.

The bank serves retail customers through digital channels and a network of branches and ATMs, while its corporate and institutional businesses provide working-capital finance, term loans, trade finance, cash management, foreign-exchange services and other banking solutions.