ICICI Bank shares: Shares of ICICI Bank experienced a 3% increase during the trading session after the unveiling of its Q4FY24 results. Brokerages offered significant perspectives on the performance of this private bank.
In short
- ICICI Bank’s shares jumped more than 3% following the announcement of its Q4 results.
- The bank revealed an 18.4% increase in its consolidated net profit compared to the previous year.
- Net interest income for the quarter showed an 8.1% year-on-year increase.
ICICI Bank shares surged over 3% to reach an intra-day peak of Rs 1,142 on Monday following the announcement of its Q4 results during the weekend.
The bank disclosed a consolidated net profit of Rs 11,671.52 crore, marking an 18.4% year-on-year increase. Its total income also experienced a substantial surge of nearly 25% year-on-year, reaching Rs 67,181.70 crore for the equivalent time frame.
Moreover, the net interest income for the quarter increased by 8.1% year-on-year to reach Rs 19,093 crore.
In general, analysts maintain a positive outlook on ICICI Bank, anticipating sustained growth and favorable returns in the upcoming years.
Brokerages on ICICI’s Q4 FY24 earnings
Motilal Oswal reaffirmed its ‘Buy’ rating on ICICI Bank, setting a revised Target Price of Rs 1,300 per share. The brokerage emphasized that the bank’s solid quarter was propelled by strong Net Interest Income (NII) and disciplined management of operating expenses and provisions.
Although there was a slight deceleration in the contraction of Net Interest Margin (NIM), the ongoing pressure on funding costs may persistently impact margins, noted the brokerage.
Nevertheless, enhancements in asset quality have resulted in a significant decrease in both Gross and Net Non-Performing Asset (GNPA/NNPA) ratios, it further stated.
Nuvama Institutional Equities commented that despite falling short of loan growth expectations by 1%, ICICI Bank’s Q4 results were strong. The brokerage highlighted ICICI Bank’s stable core net interest margin (NIM) compared to the previous quarter, as well as reduced operating expenses and low specific credit costs as positive factors.
The brokerage revised its EPS estimates for FY25 and FY26 by 5-6% and increased the target price to Rs 1,295.
“Considering the rollover in base, the target price has been raised to Rs 1,295 from Rs 1,200. ICICI Bank continues to demonstrate consistent core earnings and steady growth. With its early adoption of technology for expansion and risk management, we perceive ICICI Bank as less susceptible to regulatory issues compared to its peers, especially given its earlier reduction in operating expenses,” it stated.
Meanwhile, Nirmal Bang maintains a positive stance on ICICI Bank, anticipating a robust growth trajectory and earnings performance, with a target price of Rs 1,315.
We continue to hold a positive outlook on ICICI Bank, given its promising growth prospects and anticipated earnings trajectory, supported by healthy return ratios. While we expect the balance sheet expansion momentum to persist, the bank has indicated that the net interest margin (NIM) may face pressure in the short term, stated the brokerage.
We project earnings to achieve a compounded annual growth rate (CAGR) of 13.2% from FY24 to FY26, it further mentioned.
JM Financial reiterates its target price of Rs 1,330 and maintains a ‘Buy’ rating on ICICI Bank’s shares. They express confidence in the bank’s ability to uphold strong Return on Assets (RoA) and Return on Equity (RoE) throughout FY25–26.
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In addition to other brokerages, CLSA has increased its target price for the stock to Rs 1,350, while Nomura India values it at Rs 1,335. JPMorgan holds an overweight rating on ICICI Bank, setting a target of Rs 1,300, whereas Bernstein predicts the banking share to reach Rs 1,150.
