ICICI Bank Q1 results preview: Net profit may rise 32% to ₹9,100 crore; NII growth seen at 34% YoY

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₹9,100 crore in the quarter ended June 2023, witnessing a growth of nearly 32% from ₹6,904.9 crore in the same period last year. On a sequential basis, the lender’s net profit is likely to remain flat on the back of high provisions, analysts said. ICICI Bank is slated to release its Q1FY24 results on July 22, Saturday.

Net interest income (NII) in Q1FY24 is expected to grow by 34% to ₹17,800 crore from ₹13,210 crore, YoY. Margins are likely to moderate by 15 bps QoQ to 4.73% as funding costs rise.  “This will be partly offset by benefits from the repricing of the loan book and a continued mix shift towards the retail and SME segments. Also, margins will be impacted by seasonal factors.

Note that 1Q has fewer days than 4Q and therefore annualized computation results in slightly lower margins," Morgan Stanley said. Also Read: Hindustan Zinc Q1 results: Net profit falls 36% to Rs1,964 crore on lower metal prices; revenue drops 22% YoY Meanwhile, ICICI Bank’s loan growth is expected to remain healthy at 18% YoY, led by Retail and SME segments. The bank is becoming a growth leader in the SME and Retail segments, aided by continued investments in technology and partnerships with new ecosystem players.

Credit cost should remain benign at 61 bps versus 65 bps last quarter, supported by adequate contingency buffers. Asset quality in Q1FY24 is expected to remain stable. Going ahead, key factors to watch include margin outlook for full year F24 and extent of potential moderation.