ICICI Bank to Announce Q2FY26 Financial Results on October 18 Amidst Margin Pressures

ICICI Bank is set to announce its financial results for the quarter ending September 2025 on October 18. Analysts predict steady growth for the private lender, driven by strong credit expansion and solid asset quality. However, repo rate dynamics may lead to a reduction in Net Interest Margins (NIMs). Despite this, net profit is expected to remain stable year-on-year, though operational performance might decline due to lower treasury gains and modest operating expenses.

InCred Equities anticipates ICICI Bank's Net Interest Income (NII) for Q2FY26 to be Rs 21,200 crore. This figure represents a 5.6% increase year-on-year but a slight 0.5% decrease quarter-on-quarter. The Pre-Provision Operating Profit (PPOP) is expected to be Rs 17,200 crore, marking a 2.9% rise from the previous year but an 8.2% drop compared to the previous quarter.

Axis Direct projects ICICI Bank's NII at Rs 21,186 crore for Q2FY26, reflecting a 5.7% year-on-year increase but a 2.1% sequential decline due to margin compression from repo rate changes. Non-interest income is expected to reach Rs 7,553 crore, up 5.2% year-on-year, though it may decrease by 11.2% quarter-on-quarter due to reduced treasury gains.

The bank's Profit After Tax (PAT) is predicted to fall by 2.2% year-on-year and 10.1% sequentially to Rs 11,500 crore, indicating pressure on margins. The net interest margin (NIM) is likely to moderate to 4.16%, down by 18 basis points quarter-on-quarter and 11 basis points year-on-year. Credit costs are expected to remain steady at 54 basis points, which is an increase of 14 basis points from the previous year.

ICICI Bank's advances on the balance sheet are projected to grow by Rs 13,97,900 crore, showing a robust increase of 9.4% year-on-year and 2.5% quarter-on-quarter despite margin compression. The Pre-Provision Operating Profit (PPOP) is expected to reach Rs 17,208 crore, representing a 2.9% year-on-year increase but an 8.2% quarter-on-quarter decline due to low operating expenses.

Key Observations and Expectations

The provision estimate of Rs 1,711 crore indicates a normalization trend with a significant rise of 38.8% year-on-year. Consequently, net profit is anticipated at Rs 11,669 crore, down by 8.6% quarter-on-quarter and nearly flat year-on-year with a slight decrease of -0.7%. Earnings per share (EPS) are expected to be Rs 16.4.

Despite potential margin pressure, ICICI Bank's overall business growth is expected to remain strong with stable loan-to-deposit ratios. Management's insights on NIM outlook, growth trajectory, and developments in the unsecured loan portfolio are crucial metrics for investors and analysts to monitor closely.