ICICI Bank Q3 Results

ICICI Bank Performance Review: Quarter Ended December 31, 2023

Key Highlights

Profitability Metrics:

1. Profit before tax, excluding treasury, experienced robust growth, reaching ₹13,551 crore (US$ 1.6 billion), marking a 23.4% YoY increase in Q3-2024.

2. Core operating profit witnessed a solid 10.3% YoY growth, reaching ₹14,601 crore (US$ 1.8 billion) during Q3-2024.

3. Profit after tax demonstrated a notable YoY increase of 23.6%, totaling ₹10,272 crore (US$ 1.2 billion) in Q3-2024.

Financial Position:

4. Total period-end deposits displayed substantial growth, rising by 18.7% YoY to ₹13,32,315 crore (US$ 160.1 billion) as of December 31, 2023.

5. The average current account and savings account (CASA) ratio stood at 39.4% in Q3-2024.

Additional Read: Q3 Results Dashboard

Loan Portfolio and Asset Quality:

6. The domestic loan portfolio expanded by 18.8% YoY, reaching ₹11,14,820 crore (US$ 134.0 billion) by December 31, 2023.

7. Net Non-Performing Asset (NPA) ratio was marginally up at 0.44% on December 31, 2023, compared to 0.43% on September 30, 2023.

8. The provisioning coverage ratio on non-performing assets was robust at 80.7% as of December 31, 2023.

Capital Adequacy:

9. Including profits for the nine months ended December 31, 2023 (9M-2024), the total capital adequacy ratio stood at 16.70%.

10. The Common Equity Tier 1 (CET-1) ratio was strong at 16.03%, on a standalone basis, as of December 31, 2023.

Financial Performance Details: Quarter Ended December 31, 2023

1. Profitability Metrics:

• Profit before tax, excluding treasury, exhibited robust growth, surging by 23.4% YoY to ₹13,551 crore (US$ 1.6 billion) in Q3-2024 from ₹10,978 crore (US$ 1.3 billion) in Q3-2023.
• Core operating profit also demonstrated a significant 10.3% YoY increase, reaching ₹14,601 crore (US$ 1.8 billion) in Q3-2024 compared to ₹13,235 crore (US$ 1.6 billion) in Q3-2023.
• Excluding dividend income from subsidiaries/associates, core operating profit grew by 9.7% YoY in Q3-2024.

2. Net Interest Income (NII) and Margins:

• Net interest income increased by 13.4% YoY to ₹18,678 crore (US$ 2.2 billion) in Q3-2024 from ₹16,465 crore (US$ 2.0 billion) in Q3-2023.
• The net interest margin stood at 4.43% in Q3-2024, compared to 4.53% in Q2-2024 and 4.65% in Q3-2023. The net interest margin for 9M-2023 was 4.57%.

3. Non-Interest Income:

• Non-interest income, excluding treasury, saw a substantial 19.8% YoY increase, reaching ₹5,975 crore (US$ 718 million) in Q3-2024 from ₹4,987 crore (US$ 599 million) in Q3-2023.
• Fee income grew by 19.4% YoY to ₹5,313 crore (US$ 638 million) in Q3-2024 from ₹4,448 crore (US$ 535 million) in Q3-2023. Approximately 79% of total fees in Q3-2024 were from retail, rural, business banking, and SME customers.

4. Treasury and Provisions:

• There was a treasury gain of ₹123 crore (US$ 15 million) in Q3-2024 compared to ₹36 crore (US$ 4 million) in Q3-2023.
• Provisions (excluding provision for tax) amounted to ₹1,050 crore (US$ 126 million) in Q3-2024, down from ₹2,257 crore (US$ 271 million) in Q3-2023.
• Q3-2024 provisions included ₹627 crore (US$ 75 million) related to investments in Alternate Investment Funds as per the RBI circular dated December 19, 2023.

5. Overall Profit Growth:

• The profit before tax demonstrated strong growth, increasing by 24.2% YoY to ₹13,674 crore (US$ 1.6 billion) in Q3-2024 from ₹11,014 crore (US$ 1.3 billion) in Q3-2023.
• Profit after tax also showed a substantial YoY increase of 23.6%, reaching ₹10,272 crore (US$ 1.2 billion) in Q3-2024 from ₹8,312 crore (US$ 999 million) in Q3-2023.

Additional Read: ICICI Bank Share price

Credit Growth:

1. Net domestic advances experienced robust growth, increasing by 18.8% YoY and 3.8% sequentially at December 31, 2023.

2. Retail loan portfolio exhibited strong growth, up by 21.4% YoY and 4.5% sequentially, forming 54.3% of the total loan portfolio.

3. Business banking portfolio grew significantly by 31.9% YoY and 6.5% sequentially, highlighting a dynamic business segment.

4. SME business, catering to borrowers with a turnover of less than ₹250 crore (US$ 30 million), showed substantial growth of 27.5% YoY and 6.7% sequentially.

5. The rural portfolio grew by 18.2% YoY and 4.6% sequentially at December 31, 2023.

6. Domestic corporate portfolio expanded by 13.3% YoY and 2.9% sequentially at December 31, 2023.

7. Total advances increased by 18.5% YoY and 3.9% sequentially, reaching ₹11,53,771 crore (US$ 138.7 billion) at December 31, 2023.

Deposit Growth:

8. Total period-end deposits demonstrated strong growth, increasing by 18.7% YoY and 2.9% sequentially to ₹13,32,315 crore (US$ 160.1 billion) at December 31, 2023.

9. Period-end term deposits recorded a remarkable 31.2% YoY growth and 4.9% sequential increase, reaching ₹8,04,320 crore (US$ 96.7 billion) at December 31, 2023.

10. Average current account deposits increased by 11.6% YoY in Q3-2024, while average savings account deposits grew by 2.8% YoY in the same quarter.

Branch Network:

11. With the addition of 471 branches in 9M-2024, the Bank expanded its network to 6,371 branches and 17,037 ATMs and cash recycling machines by December 31, 2023.

Asset Quality:

12. The gross NPA ratio showed improvement, declining to 2.30% at December 31, 2023, from 2.48% at September 30, 2023.

13. Net NPA ratio was 0.44% at December 31, 2023, compared to 0.43% at September 30, 2023, and 0.55% at December 31, 2022.

14. Gross NPA additions were ₹5,714 crore (US$ 687 million) in Q3-2024, with recoveries and upgrades amounting to ₹5,351 crore (US$ 643 million).

15. The provisioning coverage ratio on NPAs stood at a robust 80.7% at December 31, 2023.

Capital Adequacy:

16. Including profits for the nine months ended December 31, 2023, the Bank maintained a strong total capital adequacy ratio of 16.70% and CET-1 ratio of 16.03% at December 31, 2023, surpassing regulatory requirements.

Consolidated Results:

17. Consolidated profit after tax increased by 25.7% YoY to ₹11,053 crore (US$ 1.3 billion) in Q3-2024.

18. Consolidated assets grew by 17.0% YoY to ₹22,08,018 crore (US$ 265.3 billion) at December 31, 2023.

Key Subsidiaries and Associates:

19. Annualised premium equivalent for ICICI Prudential Life Insurance increased by 1.7% YoY to ₹5,430 crore (US$ 653 million) in 9M-2024.

20. ICICI Lombard General Insurance Company’s Gross Direct Premium Income grew by 13.4% YoY to ₹6,230 crore (US$ 749 million) in Q3-2024, with a combined ratio of 103.6%. The profit after tax for ICICI General increased by 22.1% to ₹431 crore (US$ 52 million) in Q3-2024.

Summary Profit and Loss Statement (as per standalone Indian GAAP accounts)

₹ crore

	FY2023	Q3-2023	9M-2023	Q2-2024	Q3-2024	9M-2024
	Audited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
Net interest income	62,129	16,465	44,462	18,308	18,678	55,213
Non-interest income	19,883	4,987	14,755	5,861	5,975	17,019
Core operating profit1	49,139	13,235	35,272	14,314	14,601	42,802
Profit before tax excl. treasury	42,473	10,978	30,237	13,731	13,551	39,878
Profit before tax	42,421	11,014	30,215	13,646	13,674	40,168
Profit after tax	31,896	8,312	22,775	10,261	10,272	30,181

¹ Excluding treasury

About ICICI Bank 

ICICI, formed in 1955 with support from the World Bank, the Government of India, and Indian industry, initially focused on project finance. By the 1990s, it evolved into a diversified financial services provider, adapting to India’s liberalised financial sector. In 1994, ICICI Bank was incorporated, becoming the first Indian company listed on the New York Stock Exchange in 1999. The shift to universal banking led to the merger of ICICI and ICICI Bank in 2002. This strategic move aimed to access low-cost deposits, offer a broader range of services, and enhance value for shareholders by leveraging ICICI’s corporate relationships and market presence. The merger received approvals from regulatory authorities and consolidated the group’s financing and banking operations into a unified entity.

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