ICICI Buzz: Before Any Trade Call In ICICI Bank In Holiday-Shorten Week; Know Hits And Misses Of Q3

Among many leading private sector banks, ICICI Bank will also be in focus this week after its Q3 results for FY24. The trading week is holiday-shorten due to Ayodhya Ram Mandir's inauguration on January 22 and Republic Day celebration on January 26. But before making any trade call in ICICI Bank stock price, here are the hits and misses of its third quarterly earnings.

On BSE, ICICI Bank's share price ended at Rs 1,008.30 apiece, up by 0.92% on the special trading session of Saturday.

ICICI Bank is the second largest bank in India in terms of market share. As of January 20, 2024, the bank's market value is at Rs 7,07,373.79 crore.

The leading private lender declared its Q3 on January 20, 2024.

In Q3FY24, the bank posted a profit of Rs 10,272 crore, registering a growth of 23.6% from Rs 8,312 crore in the same quarter a year ago. Net interest income (NII), which is the difference between interest earned and expended, came in at Rs 18,678 crore in Q3FY24, rising by 13.4% from Rs 16,465 crore in Q3FY23. Meanwhile, the net interest margin was 4.43% in Q3-2024 compared to 4.53% in Q2-2024 and 4.65% in Q3-2023. The net interest margin was 4.57% in 9M-2023.

Gaurav Jani - Research Analyst, Prabhudas Lilladher has listed key highlights of ICICI Bank's Q3FY24 which investors should look into before the stock trades this week. They are:

- NII was ahead at Rs186.8bn (PLe Rs183.5bn) led by better NIM as loan growth was a bit lower

- NIM (calc.) was a beat at 4.78% (PLe 4.69%) due to better yield on advances at 10.74% (PLe 10.54%)

- Loan growth was a tad lower at 18.5% YoY (PLe 19.0%). Domestic loans grew by 18.8% YoY and 3.8% QoQ

- Overall loans grew by 3.9% QoQ (PLe 4.4%) led by retail (4.5%) and SME (6.5%). Corporate grew by 2.9%

- Deposit accretion was 18.7% YoY and 2.9% QoQ (PLe 19.5% YoY) led by TD growth of 4.9% YoY. CASA ratio dipped to 39.6% from 40.8% in Q2'24

- Other income was broadly in-line at Rs61bn; fees were lower that was offset by more dividend income

- Opex at Rs100.5bn was 4.4% below PLe led by both lower employee cost and other opex

- Core PPoP at Rs139.0bn was 4.8% ahead of PLe. PPP was beat at Rs147.2bn (PLe Rs139bn).

- Asset quality was better; GNPA was lower at 2.34% (PLe 2.4%) due to stronger recoveries despite higher slippages

- Gross slippages were a miss of Rs57.1bn (PLe Rs53bn) offset by higher recoveries at Rs53.5bn due to a chunky corporate recovery (Rs6.2bn).

- Provisions were lower at Rs10.5bn (PLe Rs9bn) owing to provision on AIF investments of Rs6.3bn. Buffer provisions were intact at Rs131bn or 1.1% of loans

- Core PAT was 4.1% ahead of PLe while PAT was Rs96.8bn (PLe Rs93bn)

- The stock trades at P/core ABV of 2.4x/2.1 FY25/26E core ABV.

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