ICICI Bank Q4: Interest income, provisions, key highlights of the quarter

After Q4 earnings, the focus will be on the bank’s stock on Monday.

1. Net Profit:

In Q4FY23, ICICI Bank’s core operating profit (profit before provisions and tax, excluding treasury income) grew 36.4% year-on-year 13,866 crores. Its profit after tax increased by 30.0% year-on-year 9,122 crores to 7,018 crore in the corresponding quarter last year.

2. Top-Line Front:

Net interest income (NII), which is the difference between interest earned less interest spent in Q4 FY2023, grew by 40.2 percent year-on-year 17,667 crores to 12,605 crore in Q4FY22. The net interest margin (NIM) in Q4-2023 stood at 4.90 per cent, as against 4.00 per cent in Q4-2022.

There was a growth of around 32% in total standalone income for the quarter under review 36,108.88 crores. it was on 27,412.32 crore in Q4FY22. Non-interest income, excluding treasury income, grew 11.3% year-over-year 5,127 cr in Q4FY2023 4,608 crore in Q4-FY022

3. Advances:

Home advances grew 20.5% year-on-year and 5.% sequentially as of March 31, 2023. Total advances grew 18.7% year-on-year and 4.7% sequentially 1,019,638 crore as on March 31, 2023.

4. Retail Loans:

The lender’s retail loan portfolio grew by 22.7 per cent and comprised 54.7 per cent of the total loan portfolio as on March 31, 2023.

The business banking portfolio grew by 34.9 per cent as on March 31, 2023, while small medium enterprises (SME) business grew by 19.2 per cent.

ICICI Bank’s rural portfolio grew by 13.8 per cent YoY as on March 31, 2023 and 5.5 per cent sequentially.

5. Deposit:

The bank witnessed a healthy growth in terms of total deposits, which came at 11.8 lakh crore to Rs. 10.6 lakh crore, an annual growth of 10.9 per cent.

The lender’s average current and savings account (CASA) ratio stood at 43.6 per cent in the March 2023 quarter.

6. Asset quality:

ICICI Bank’s gross NPA ratio declined to 2.81 per cent in the fourth quarter of FY 2022-23, from 3.60 per cent last year.

Net NPA ratio declined to 0.48 per cent from 0.76 per cent in the previous year.

Net non-performing assets declined 25.9% year-on-year and 8.8% sequentially 5,155 crore as on March 31, 2023. Net increase from gross NPAs, excluding writeoffs and sales, was As compared to 14 cr in Q4FY2023 1,119 crore in the quarter ending December 31, 2022 (Q3FY2023).

7. Capital Adequacy

The total capital adequacy ratio of the bank as on March 31, 2023 stood at 18.34% and Tier 1 capital adequacy ratio stood at 17.60% as against the minimum regulatory requirements of 11.70% and 9.70% respectively.

8. Dividend:

The bank’s board recommended a dividend of Rs. 8 per equity share of face value Rs.2 each. The declaration of dividend is subject to requisite approvals. The dates of record/book closure will be announced in due course.