ICICI Bank Ltd. share price target

We maintain BUY on the stock with a revised target price of Rs 975 (SOTP basis core book at 2.8x FY24E and Rs 182 Subsidiary Value).

ICICI Bank (one of our top picks) reported strong profitability growth at 30% YoY (19% QoQ) led by lower provisions (down 9% YoY; 5% QoQ). Asset quality improved with GNPA at 4.8% vs 5.15% QoQ led by lower slippages and higher recoveries. However, restructured assets increased to 1.3% vs 0.7% QoQ; spread across the portfolio. During Q2FY22, NII grew by 25% YoY against a loan growth of 17% YoY; margins improved sequentially. PPoP grew by 20% YoY led by increase in non-interest income (up 19% YoY). Strong liability franchise and higher Tier I capital ratio will advantage bank when the economy growth recovers. We have moved to FY24E estimates and maintained...

ICICIBC reported a strong 2QFY22, led by healthy NII growth (11bp NIM expansion), strong fee income trends, and controlled provisions. The bank reported a 5%/9% beat to our PPOP/net earnings estimate and is progressing swiftly towards earnings normalization. Business growth has picked up sharply, with domestic loans growing 4% QoQ, led by Business Banking (12%), Retail loans (5%), SME (11%). Most Retail segments showed a robust pickup, with Mortgage up 6% QoQ. A sharp recovery was seen in the Unsecured portfolio, with Personal...

Strong growth momentum continues

Earnings in 2QFY22 re-acknowledge our conviction that ICICI Bank is preparing for sustainable, prudent and cautious growth with improvement in economic activities. The bank has reported its 2QFY22 results with the key pointers being: 1) Strong NII growth of 25% YoY, with headline NIMs...

For Q1FY22 standalone, Net interest income went up 17.8% YoY with marginal +20bps YoY expansion in NIM to 3.89%. Pre-provisioning profit reached Rs. 8,894cr (-17.5% YoY) impacted by 290bps YoY rise in cost-to-income ratio. However, PAT surged 77.6% with PCR 78.2%, owing to lowered provisions. Commercial and rural banking loans to act as growth catalyst in the upcoming quarter. Strong liquidity may be diverted into loan growth as credit demand recovers. Asset quality has been comparatively strong...

ICICI Bank reported robust 78% growth in net profit at Rs 4616.02 crore for the quarter ended June 2021 (Q1FY2022). The bank has posted strong 18% growth in the net interest income and further improved net interest margins to 3.89% in Q1FY2022. The core fee income of the bank has surged 53% on low base. Bank has showed accelerated loan growth, while maintained healthy CASA ratio in Q1FY2022. Bank has also expanded its distribution network. The asset quality of the bank remained stable despite elevated fresh slippages of loans in Q1FY2022. Asset quality stable: Bank has exhibited maintained asset quality stable despite higher fresh...

We maintain BUY on the stock with a revised target price of Rs 810 (SOTP basis core book at 2.6x FY23E and Rs 176 Subsidiary Value).

ICICIBC reported strong earnings performance, led by robust core PPOP, aided by healthy NII growth (5bp NIM expansion). Also, lower provisions (23% below our estimate) drove the earnings beat v/s our estimate. The bank is thus progressing well towards earnings normalization. Fresh slippages stood elevated at INR72.3b (annualized ~4% of loans), pre-dominantly from the Retail/Business Banking portfolio. However, this was partially compensated by higher recoveries and upgrades. The GNPA/NNPA ratio grew by 19bp/2bp QoQ to 5.15%/1.16%. PCR remains...

Impressive show but asset quality weakens