Last Updated on October 26, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
With a market cap of around ₹ 6.54 Lakh Cr, ICICI Bank is one of the 5 largest companies in India (by m-cap). Formed in 1955, with its headquarters in Mumbai, India, the bank is listed on both the major Indian stock exchanges – the BSE and the NSE. In 1999, ICICI Bank became the first Indian company to be listed on the New York Stock Exchange (NYSE). Through its parent company and subsidiaries, ICICI Bank offers a variety of banking and financial services to corporates, enterprises, SMEs, and retail investors alike.
The bank’s key subsidiaries include:
- ICICI Prudential Life Insurance
- ICICI Lombard General Insurance
- ICICI Prudential Asset Management
- ICICI Securities
- ICICI Securities Primary Dealership
- ICICI Home Finance
- ICICI Venture
- ICICI Bank UK
- ICICI Bank Canada
On 21 Oct, 2023, the bank announced its consolidated performance results for the quarter ending 30 Sep, 2023. Here’s what you need to know.
Additional Read: Q2 Results Dashboard
Standalone Performance Highlights
- Total Income: ₹ 40,697.07 Cr
- Operating Profit: ₹ 14,229.27 Cr
- Profit before tax: ₹ 13,646 Cr
- Net Profit (PAT): ₹ 10,261 Cr
- Net interest income (NII): ₹ 18,308 Cr
ICICI Bank delighted its investors with a Q2 FY 23-24 result that surpassed most market estimates. The profit before tax (excluding treasury), reached ₹ 13,731 Cr which is 35.7% higher than the same period last year. The core operating profit also saw a growth of 21.7% and stood at ₹ 14,314 Cr. The profit after tax registered a 35.8% growth from the figure reported on 30 Sep, 2022 (₹ 7,558 Cr) to reach ₹ 10,261 Cr.
In the second quarter of FY 23-24, the bank made ₹ 18,308 Cr from the interest it earned on loans and other financial activities. This was a 23.8% increase compared to the same time last year, when they made ₹ 14,787 Cr. The Net Interest Margin that measures how much profit the company makes from its loans, was 4.53% for the period. This is 4.31% higher YoY but 4.78% lower than the first quarter of the current financial year.
Non-interest income (excluding treasury) was reported to be ₹ 5,861 Cr which was 14.0% more than the same period last year. Customers paid fees for various services, and these fees went up by 16.2% from last year. In Q2-2024, the company made ₹5,204 crore (or around $627 million) from fees. Out of this, 78% came from everyday people, small businesses, and other customers. Fee income, too, saw a rise and stood at ₹ 5,204 Cr – up 16.2% YoY.
For the period under discussion, the bank set aside ₹ 583 Cr under the head of ‘provisions’. Lastly, the company reported a loss of ₹ 85 crore which was similar to the loss reported in Q2 FY 22-23. The earnings per share for the quarter were ₹ 14.66 per share.
Additional Read: ICICI Lombard Share Price
Key Financial Ratios
- Net interest margin (NIM): 4.53%
- Gross NPA ratio: 2.48%
- Net NPA ratio: 0.43%
- Provision coverage ratio on non-performing assets: 82.6%
- Total Capital Adequacy Ratio (CAR): 17.59% (minimum regulatory requirement: 11.70%)
- Tier 1 CAR: 16.86% (minimum regulatory requirement: 9.70%)
- CASA ratio (average current account and savings account ratio): 40.8%
- Core operating profit/average assets: 3.36
Additional Read: ICICI Bank Share Price
Operational Highlights
- ₹ 12,94,742 Cr total deposits at the end of the period (30 Sep, 2023), a growth of 18.8% YoY
- Domestic loans: ₹ 10,74,206 Cr, growth of 19.3%
- 1Cr+ iMobile Pay app activation by non-ICICI Bank account holders
- 15.4% YoY growth in e-toll collections
- 19.3% YoY growth in net domestic advances
- 21.4% surge in the retail loan portfolio that constitutes 54.3% of the total loan portfolio in Q2
- 30.3% YoY growth registered in the business banking portfolio
- 29.4% YoY rise in SME business (turnover of under ₹ 250 Cr)
- 17.3% YoY jump in rural portfolio
- 15.3% growth in domestic corporate business
ICICI Bank improved its asset quality significantly, which is reflected in its gross NPA and net NPA declining and presently at 2.48% and 0.43% respectively. The bank added ₹ 116 Cr as net additions to the gross NPA in the quarter with a provision coverage of 82.6%. ₹ 1,922 Cr were written off for NPAs with ₹ 13,100 Cr being maintained as contingency provisions. The total book value stood at
Standalone YoY and QoQ Performance Comparison
| Q2 FY24 | Q2 FY23 | Q1 FY24 | |
| Interest earned | ₹ 18,308 Cr | ₹ 14,787 Cr | ₹ 18,227 Cr |
| Core operating income | ₹ 24,169 Cr | ₹ 19,926 Cr | ₹ 23,410 Cr |
| Operating expenses | ₹ 9,855 Cr | ₹ 8,161 Cr | ₹ 9,523 Cr |
| Core operating profit | ₹ 14,314 Cr | ₹ 11,765 Cr | ₹ 13,887 Cr |
| Profit Before Tax | ₹ 13,646 Cr | ₹ 10,036 Cr | ₹ 12,847 Cr |
| Profit after Tax | ₹ 10,261 Cr | ₹ 7,558 Cr | ₹ 9,648 Cr |
Source:
https://www.icicibank.com/content/dam/icicibank/india/managed-assets/docs/about-us/2024/2023_10_pr1_q2-2024.pdf
https://www.icicibank.com/content/dam/icicibank/india/managed-assets/docs/about-us/2024/2023-1-q2-2024-investor-presentation.pdf
https://www.icicibank.com/content/dam/icicibank/india/managed-assets/docs/about-us/2024/2023_10_pr2_q2-2024.pdf
