ICICI Bank Q4 results preview: Experts see rise in PAT, NII; contraction in NIMs
ICICI Bank Q4 results 2024 preview: Amid speculations of weak quarterly numbers from the Indian banks in Q4FFY24, ICICI Bank is going to declare its Q4 results 2024 today. According to market experts, the private lender may see a rise in net profit and net interest income on a rise in loan books and improved asset quality.
However, they predicted a contraction in NIMs of ICICI Bank due to challenges posed by low-cost deposits and the rising cost of funding. Speaking on ICICI Bank's Q4 results preview for FY24, Shreyansh V Shah, Research Analyst at StoxBox said, "ICICI Bank is likely to post mid-teen annual growth in net profit in the fourth quarter, driven by healthy loan book growth, especially in retail and SME segments.
The NIIs are also anticipated to show mid-single-digit growth along with traction in PPOP. We expect the asset quality to be stable, with lower sequential credit costs on the back of reversal of AIF provisions." Also Read: Gold prices end five-week rally on ease in Iran-Israel conflict, dent in US Fed rate cut buzz "The challenge of garnering low-cost deposits is likely to be visible on NIMs which should compress marginally this quarter.
We will closely monitor management comments on the NIM outlook, their strategy for deposit mobilization, outlook on the unsecured loan book, anticipated credit costs, and branch expansion strategy," the StoxBox expert added. Highlighting the key concern areas in ICICI Bank's Q4 results 2024, Kotak Securities said, "Key concern would be the progress of NIM as the cost of funds is yet to peak, especially with slower CASA growth.
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