ICICI Bank Q4 Results: Brokerage gave this rating after earnings

Total income of private players increased 36,108.88 crore in Q4FY23 from 27,412.32 crore in the same quarter last year, while its total expenditure increased by Rs. 22,282.50 crore from 17,119.38 crores.

The overall provisions of the company increased 1,619.80 crore from 1,068.95 crore year-on-year, while they decreased from 2,257.44 crores sequentially. As of March 31, 2023, gross non-performing assets as a percentage of all loans stood at 2.81%, up from 3.60% a year ago and 3.07% a quarter ago.

The stock closed up 2.31% in Monday’s trading session 904.65 per share. The stock gained 34.92% from its 52-week low of 670 recorded on June 17, 2022. The stock price is up 18.7% and its sector is up 3.7% in the past year.

According to technical analysts, the stock was down last week, but declined after the results. stock prices Positive start. They expect this positive momentum to continue till the 930-level and further in the near term, and 880 – 870 is the support.

Let’s take a look at what brokerages are saying about ICICI Bank’s Q4FY23 earnings.

Nuwama Institutional Equities

The private lender delivered flawed financial results for the thirteenth consecutive quarter, according to the brokerage. The brokerage believes that the bank is well positioned to outperform peers in the future as well, thanks to a strong deposit franchise and digital Leadership, The brokerage has revised the target price 1,180 and reiterates ‘Buy’ rating on the stock and considers it a top pick list.

“ICICI again reported strong, high-quality earnings. Core pre-provision operating profit (PPOP) up 40% year-on-year (YoY) / 9% quarter-on-quarter (QoQ) excluding one-offs increased, which was driven by higher net interest margin (NIM) and charges that offset higher operating expenses (Opex) and lower dividends.

Loans/Deposits grew by 5% QoQ while NIM grew by a strong QoQ of 25 basis points Net Interest Income (NII) grew by 7% QoQ/40% YoY. The NII beat the Bloomberg consensus by 3%. Opex grew sharply by 27% YoY/9% QoQ as the bank provided more for retirement benefits. Return on assets (RoA) improved to 2.3% from 2.2% QoQ,” the brokerage said.

Motilal Oswal

In 4QFY23, ICICI Bank Reported another good quarter supported by strong NII/core PPOP growth and well controlled provisions. The strong asset quality of the bank enabled it to incorporate provisions for NPAs and contingencies as well. The brokerage believes that the franchisee’s consistent combination of a high-yielding portfolio and low-cost liabilities will result in continued growth in NII, pushing margins up to 4.9%.

“The bank is witnessing a strong recovery across sectors, while the asset quality trend remains healthy with an industry-best provision coverage ratio (PCR) of around 83%. Additional Covid-related provisioning buffer (1.3% of loans) and Provides comfort. We expect the bank to deliver ROA/ROE of 2.2%/17.6% in FY25. We reiterate our ‘Buy’ rating with target price 1,150,” the brokerage said.

Kotak Institutional Equities

As per the brokerage report, ICICI Bank reported a strong year-on-year growth of nearly 30%, supported by a rise in operating profit of nearly 35%.

“NIM expanded 15 basis points quarter-on-quarter to nearly 5%. Loan growth was strong at ~20% annually and asset-quality ratios continued to improve. We will see pressure in NIM from here on, as it returns to normal levels. . However, the bank is a solid franchise for itself. Maintain ‘Buy’ with unchanged fair value 1,070. ICICI Bank remains one of our top picks,” the brokerage said.

MK Global Financial Services

Given its exceptional financial performance, stability and credibility of the top-management, and adequate capital and provisioning buffers, ICICI continues to be the preferred choice of brokerage in the banking sector. The brokerage has maintained a ‘Buy’ recommendation on the company with a target price of 1,250 per share.

“We expect the bank to deliver best ever ROA/ROE of 2.0-2.2% / 17-18% over FY 24-26E, led by structurally strong margins and thus, core profitability, while contingent The buffer will protect any P&L.Asset-quality bump from recent RBI approval HDFC The brokerage said, to increase its stake in the insurance business, stake sale in ICICI Lombard should also be stopped.