ICICI Bank Q2 results takeaways: Profit, NII beat Street estimates; asset quality improves


NEW DELHI: ‘s September quarter numbers beat Street estimates on all key metrics. Asset quality for the bank improved and fresh provisions also fell. Net interest margin (NIM) improved to 4 per cent while disbursements of personal loans and auto loans were close to March quarter levels. Besides, SME loans soared 44 per cent on a YoY basis.

Here are the key takeaways from the ICICI Bank’s quarterly results:

PAT, NII beat Street estimates
ICICI Bank’s 30 per cent year-on-year (YoY) jump in September quarter net profit beat Street estimates by a wide margin. An ET NOW poll of analysts had anticipated profit to grow 20 per cent at Rs 5,100 crore. ICICI Bank, however, reported a 30 per cent surge in net profit at Rs 5,511 crore.

The net interest income (NII) for the quarter climbed 25 per cent YoY to Rs 11,690 crore in September quarter compared with Rs 9,366 crore in the year-ago quarter. The poll had anticipated NII at Rs 11,240 crore, up 20 per cent.

BB and below-rated pool, provisions drop
The bank said loan and non-fund based outstanding to performing borrowers rated BB and below reduced to Rs 12,714 crore at September 30 from Rs 13,975 crore at June 30.

Provisions, excluding provision for tax, declined 9 per cent YoY to Rs 2,714 crore compared with Rs 2,995 crore in the year-ago quarter. Provisions in June quarter stood at Rs 2,852 crore in June quarter.

The bank said it continues to hold provisions amounting to Rs 1,950 crore against these borrowers under resolution as of September 30, 2021. In addition, the bank continues to hold Covid-19 provisions of Rs 6,425 crore as of September 30, 2021, the same level as June 30, 2021.

Retail loans grow at 20%, 62.1% of portfolio
The bank said its retail loan portfolio jumped 20 per cent on YoY basis and 5 percent sequentially. Retail loan portfolio accounted for 62.1 per cent of the total loan portfolio at September 30.

Including non-fund outstanding, the retail loan portfolio was 51.6 per cent of the total portfolio, the private lender said.

The business banking portfolio saw 43 per cent YoY growth (up 12 per cent QoQ) . The SME

business, comprising borrowers with a turnover of less than Rs 250 crore, grew 42 per cent YoY (11 per cent QoQ) on September 30.

“Growth in the domestic wholesale banking portfolio was 14 per cent YoY at September 30,” the bank said.

Deposit growth, meanwhile, was at 17 per cent YoY at Rs 9,77,449 crore. Average current

account deposits rose 36 per cent YoY while savings account deposits rose 25 per cent YoY.

Mobile transactions up 62%
The value of mobile banking transactions climbed 62 per cent year-on-year to Rs 406,501 crore for September quarter. Digital channels like internet, mobile banking, PoS and others accounted for over 90 per cent of the savings account transactions in H1FY22, the bank said.

“The bank is the market leader in electronic toll collections through FASTag. The bank had a market share of 37 per cent by value in electronic toll collections through FASTag in Q2 2022, with a 63 per cent year-on-year growth in collections,” ICICI Bank said.

Subsidiaries log solid numbers
Among key subsidiaries, profit of ICICI Securities on a consolidated basis rose 26 per cent YoY to Rs 351 crore from Rs 278 crore YoY. ICICI Prudential Asset Management Company’s profit rose 37 per cent YoY to Rs 383 crore from Rs 282 crore YoY.

In the case of ICICI Lombard, profit came in at Rs 446 crore against Rs 416 crore in the year-ago quarter.

“Prior period numbers are not comparable due to the reflection of the Scheme of Arrangement in current period numbers,” the company said.

What did the bank say?

The bank said disbursements across all retail products increased sequentially in the September quarter. Mortgage disbursements, it said, were close to the level seen in the March quarter, reflecting the increase in demand.

Disbursements of personal loans and auto loans were also close to March quarter levels, it said, adding that the value of credit card spends was up 47 per cent sequentially.

‘Spends across most categories other than travel crossed March 2021 levels in September 2021. The bank continued to focus on providing the full suite of banking products to corporate clients and their ecosystems and lending to well-rated corporates,” it said.

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