Synopsis: ICICI Bank Posts Strong Q1FY25 Results with 14.6% Net Profit Growth. In the first quarter of the financial year 2025 (Q1FY25), ICICI Bank, a major player in the private sector banking arena, reported a robust net profit growth of 14.6% year-on-year (YoY), amounting to Rs 11,059 crore. This performance underscores the bank's resilient financial health and strategic execution.
In the first quarter of financial year 2025 (Q1FY25), ICICI Bank, a major player in the private sector banking arena, reported a robust net profit growth of 14.6% year-on-year (YoY), amounting to Rs 11,059 crore.
This performance underscores the bank's resilient financial health and strategic execution.
The bank's net interest income (NII) saw a 7.3% YoY increase, rising to Rs 19,553 crore, slightly above the anticipated 7% growth.
For comparison, the NII in the same period last year was Rs 18,226.5 crore.
NII reflects the difference between the revenue generated from a bank's interest-bearing assets and the expenses linked to its interest-bearing liabilities.
ICICI Bank's core operating profit also demonstrated a healthy increase of 11% YoY, climbing to Rs 15,412 crore in Q1FY25 from Rs 13,887 crore in Q1FY24.
The bank’s provisions, excluding tax provisions, rose by 3.1% to Rs 1,332 crore, compared to Rs 1,292 crore in the same quarter the previous year.
The bank’s net non-performing assets (NPAs) ratio experienced a slight increase, moving to 0.43% from 0.42% in the previous quarter.
Net NPAs for this quarter rose to Rs 5,684.8 crore from Rs 5,377.8 crore in Q4FY24.
Meanwhile, gross NPAs increased to Rs 28,718.6 crore during the quarter, up from Rs 27,961.7 crore in the March 2024 quarter.
However, the gross NPA ratio marginally decreased to 2.15% in Q1FY25 from 2.16% in Q4FY24.
ICICI Bank's total advances surged by 15.7% YoY, amounting to Rs 12,23,154 crore as of June 30, 2024.
The retail loan portfolio grew by 17.1% YoY and 2.4% sequentially, representing 54.4% of the bank's total loan portfolio.
The bank's total period-end deposits increased by 15.1% YoY, reaching Rs. 14,26,150 crore, while its average deposits saw a 17.8% YoY rise, reaching Rs. 13,78,658 crore.
Average current account deposits grew by 13.3% YoY, and average savings account deposits rose by 8.2% YoY.
Reflecting this strong performance, ICICI Bank's stock rose by 1.59% or around 19 points on July 26.
Over the last six months, the stock has appreciated by over 200 points, a rise of 19.74%.
In conclusion, ICICI Bank’s Q1FY25 financial results highlight its robust performance, marked by significant growth in net profit, NII, and total advances.
Despite a slight increase in NPAs, the bank has managed to maintain a strong balance sheet and impressive growth across key financial metrics.
These results reinforce ICICI Bank’s strong position in the private sector banking space and its ability to navigate challenging economic environments effectively.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The performance and projections discussed are based on the latest available data and are subject to market risks and uncertainties. Readers are advised to consult with a financial advisor before making any investment decisions.
