ICICI Bank Ltd. share price target

ICICI Bank reported 5% decline in net profit at Rs 969.06 crore for the quarter ended March 2019 (Q4FY2019). The bank has exhibited sharp improvement in margins and asset quality in Q4FY2019. The global NIM of the bank has increased to one of the best level of 3.72% in Q4FY2019, while the bank has sharply reduced net NPA ratio closer to 2% end March 2019. The net interest income of the bank has surged 27%, while the core fee income of the bank has also increased at healthy pace of 15% in Q4FY2019....

ICICI Bank Ltd reported Q4FY19 numbers largely inline with our/market expectations on the net revenue front.

In Q4FY2019, ICICI Bank's net interest income (NII) rose by 26.5% y-o-y to Rs. 7,620crore, was better than expectations, aided by margin expansion. However, its other income witnessed a prima facie de growth due to stake sale gain in Q4FY18. Hence, excluding the one off, other income grew ~53% y-o-y, margins expanded to a multi-quarter high, but more importantly,...

6 May 2019 ICICIBC reported PAT of INR9.7b (significantly below our estimate) in 4QFY19, NII grew 17%, while PAT declined 50% YoY to INR33.6b owing to higher provisions (credit cost of ~3.6%). NII increased 26.5% YoY to INR76.2b in the quarter, led by a 32bp QoQ improvement in the margin to 3.72%. The NIM was driven by a one-off impact of (a) 20bp on account of income tax refund (INR4.1b) and (b) 5bp due to interest collection from NPLs. On a like-to-like basis, the margin improved 25bp QoQ. Core fee income grew ~15% YoY, with retail forming 74% of total fees. Advances rose 14.5% YoY, with domestic book growing by 17% YoY (~22% YoY growth in retail), while the overseas loan mix declined to 10.7%.

ICICI bank has always played a pioneering role in transforming retail banking in the country. The retail franchise is supported by a wide...

ICICI Bank reported a stable third quarter performance with sharp improvement in asset quality. Slippages have moved to normalized levels (1.5% of loans), gross NPA ratio is at a two-year low while net NPA ratio is at a three-year low.

ICICI Bank has been undergoing various structural changes in areas such as credit culture/pricing, customer engagement, role-based employee designations, and performance evaluation system with a clear focus on improving customer experience, productivity and business profitability. The bank believes that the lumpy asset-quality stress is now a thing of the past and credit cost should gradually gravitate toward 20% of the operating profits. The bank has maintained its June 2020 guidance of 15% RoE, which could be revised upward as it gains more confidence on financial performance and credit cost....

ICICI Bank has reported marginally 3% decline in the net profit at Rs 1604.91 crore for the quarter ended December 2018 (Q3FY2019) compared with Rs 1650.24 crore Q3FY2018. The bank has posted healthy core operating performance with 21% jump in the NII and strong 16% growth in the core fee income in Q3FY2019. The bank has exhibited acceleration in business growth to 14%, with stable loan growth of 12% end December 2018. The bank has improved margins to 3.4% in Q3FY2019, while CASA...

Past the stability phase, recovery starts to take center stage; see multiyear ROE uptrend: Recovery continues to gain momentum across the parameters. While the headlinegrowth numbers are still modest (3.6%/11.7% YoY/QoQ), the underlying trend is much healthier.

Maintain BUY with an SOTP of Rs 425 (2.0x Dec-20 core ABV of Rs 160 and sub-value of Rs 104). A sharp decline in slippages (~Rs 20.9bn at an 18 qtr low), reducing net stress (~5.9% vs. ~8.1% QoQ), dramatic improvement in coverage as the PCR climbed ~690bps to ~76% (Reported) resulting in a 26% QoQ dip in NNPAs coupled with sustained growth in the domestic book (+16% YoY) made 3Q a blockbuster quarter.