ICICI Bank Q4 results preview: Analysts predict lower NII growth and higher net profit.

ICICI Bank Q4 results preview: ICICI Bank, the nation’s second-largest private lender, is scheduled to release its fourth-quarter results report this Saturday. Analysts predict a rise in net profit for the lender, but a decline in net interest margin (NIM).

According to predictions from most brokerages, the net profit for the March quarter will increase to as much as 18% YoY. Growth in net interest income will probably be behind that in net income. It is most likely to expand by 4–8%.

Net interest income (NII) for the bank increased 13.4% year over year to Rs 18,678 crore for the third quarter from Rs 16,465 crore during the same time last year.

In the third quarter, the net interest margin (NIM) was 4.43%, down from 4.65% in the same quarter the previous year and 4.53% in the September quarter.

It is anticipated that Profit After Tax (PAT) will total Rs 10,323.3 crore, indicating a 13.2% YoY increase and a 0.5% QoQ increase.  -ICICI Bank Q4 results preview

What Brokerages Can Expect Right Now

BNP Paribas

• As for ICICI Bank, BNP Paribas projects a 4.7 percent annual gain in net profit, or a 7% quarterly decline, to Rs 9,551.6 crore.
• The PPoP and NII might increase by around 6% each to Rs 14,666.6 crore and Rs 18,798.9 crore, respectively.

Nomura

• ICICI Bank expects a net profit of Rs 10,540 crore, up 16 percent year on year from the Rs 9,121.9 crore profit achieved in Q4 FY23.
• NII is expected to expand by 2% quarter on quarter, while loans will grow by 4%.
• NIMs are expected to fall by 7 basis points quarter on quarter.

Equirus Securities

• ICICI Bank is expected to report strong year-over-year growth in deposits and advances of 17% and 19%, respectively.
• The retail sector may be driving the surge in loans.
• The Q-o-Q fall in met interest margins (NIMs) is expected to be 10bps, from 4.4% in Q3FY24 to 4.3% in Q4FY24.
• It sets the NII at Rs 18,850.9 crore, the PPoP at Rs 14,967.5 crore, and the net profit at Rs 10,571.9 crore.

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Axis Securities

• A robust 17% YoY growth in advances is anticipated, driven by the expansion of the SME and retail sectors.
• Growth in deposits is anticipated to improve gradually.
• There is probably going to be less margin reduction every quarter.
• Stable cost ratios and robust fee income are necessary to sustain the growth of PPOP.
• AIF-related provisions are reversed to maintain lower credit costs from quarter to quarter; asset quality is unaffected.