The bank’s net interest income (NII) for the quarter rose by 7.3% YoY to Rs 19,553 crore while the net interest margin was 4.36% in Q1 compared to 4.40% in Q4 of FY24 and 4.78% in Q1 of FY24.
During the quarter, ICICI Bank’s fee income grew by 13.4% YoY to Rs 5,490 crore in Q1. Fees from retail, rural, business banking, and SME customers constituted about 78% of total fees.
The NII of the bank was in line with ET Now poll estimates while PAT was above expectations. Here is how analysts viewed the quarterly results:
Morgan Stanley: Overweight| Target price: Rs 1,500
The global brokerage firm has maintained an overweight call on ICICI Bank and hiked the target price to Rs 1,500 vs Rs 1,400
The delivery stood uninterrupted and Morgan Stanley expects the stock to do well post strong F1Q25. RoAs were well above normalized levels and had room to absorb potential margin normalisation. The stock is well-placed to absorb potential regulatory changes.
Nuvama: Buy| Target price: Rs 1,450
Nuvama said that ICICI Bank turned in strong earnings and outperformed on three key concerns plaguing its peers in Q1FY25: asset quality, LDR and NIM. Loans grew 15% YoY/3% QoQ while the 4bp QoQ dip in NIM is lower than expected and the QoQ increase in slippage of 11% YoY is also lower than peers and expectations. Despite elections and the heatwave, ICICI’s retail slippage ratio declined YoY. Core PPOP grew 11% YoY/remained flat QoQ due to the seasonal sequential spike in opex.
ICICI Bank remains the most consistent in delivering core earnings and granular growth.
Macquarie: Outperform| Target price: Rs 1,300
Macquarie retained an outperform rating on the bank with a target price of Rs 1,300.
PAT was in line and a high opex offset by high fee income was seen while the credit cost is likely to normalize to 50bp in near term. Macquarie believes that margin pressure will remain in the near term
IIFL: Add| Target price: Rs 1,320
IIFL has maintained an add rating on ICICI Bank with a target price of Rs 1,320.
The growth was healthy while the NIM pressure should persist. The bank’s asset quality was stable and credit costs are likely to inch-up. IIFL expects valuation premium to narrow.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
