ICICI Bank's Q1 net profit rises 17 pct to Rs 2,655 crore, beats estimates

Written by Agencies | New Delhi | Updated: Jul 31 2014, 22:11pm hrs
Icici bankNet profit for ICICI Bank fiscal first quarter ended June rose to 26.55 billion rupees ($440 million). (Reuters)
ICICI Bank Ltd, India's second-biggest lender by assets, reported a 17 percent rise in quarterly profit to Rs 2,655 crore, beating estimates, helped by loan growth and higher fee income - on consolidated basis, bank's net profit inches up three per cent to Rs 2,832 crore.

ICICI Bank Report - I

ICICI Bank Report - II

HIGHLIGHTS

* 17% year-on-year increase in standalone profit after tax to `2,655 crore (US$ 441 million) for the quarter ended June 30, 2014 (Q1-2015) from ` 2,274 crore (US$ 378 million) for the quarter ended June 30, 2013 (Q1-2014).

* Operating profit increased by 18% to ` 4,517 crore (US$ 751 million) for Q1-2015 from ` 3,814 crore (US$ 634 million) for Q1-2014.

* 26% year-on-year increase in retail advances at June 30, 2014.

* Year-on-year growth of 15% in current and savings account (CASA) deposits; CASA ratio at 43.0% at June 30, 2014.

* Net interest margin improved to 3.40% in Q1-2015 compared to 3.27% in Q1-2014.

* Total capital adequacy of 17.39% and Tier-1 capital adequacy of 12.62% at June 30, 2014, including profits for Q1-2015.

* Consolidated profit after tax was ` 2,832 crore (US$ 471 million) for Q1-2015

ICICI Bank's consolidated Q1 Net rises 3% to Rs 2,832 crore

(PTI) The country's largest private sector lender, ICICI Bank, today reported three per cent rise in its consolidated net profit at Rs 2,832 crore.

On a standalone basis, the bank posted 17 per cent rise in net profit at Rs 2,655 crore.

The Chanda Kochhar-led bank had reported a post tax net profit of Rs 2,274 crore in the corresponding period, it said in a statement.

During the reported quarter, the bank's total income increased to Rs 14,616 crore from Rs 12,904 crore in the year ago period.

Its operating profit was up 18 per cent to Rs 4,517 crore as against Rs 3,814 crore in the April-June period of last year.

The bank's total provisions were up 22.42 per cent to Rs 726 crore as against Rs 593 crore in the same period year ago.

The bank's shares were trading 0.31 per cent down at Rs 1,485 apiece during afternoon trade on the BSE.

NII grew 17.6% YoY (ahead of expectations) on back of 5bps QoQ margin improvement to 3.40% in Q1FY15. Other income was also strong (14.7% YoY) aiding in healthy revenue growth. However, positive surprise came on lower new impairment (Rs.26 bn as against Rs34 bn in previous quarter). Reported headline NPLs remained stable with gross and net NPAs remaining at 3.05% and 0.99% (in absolute terms grew only 3-4% QoQ). We maintain our positive stance on ICICI bank and recommend BUY on the stock, Saday Sinha, banking analyst, Kotak Securities.

ICICI Bank Q1 net profit up 17 pct, beats estimates

(Reuters) ICICI Bank Ltd, India's second-biggest lender by assets, on Thursday beat estimates with a 17 percent rise in quarterly net profit, helped by growth in credit demand and higher fee income.

Indian lenders, including ICICI and its private sector rivals HDFC Bank Ltd and Axis Bank Ltd, are betting on an economic recovery to spur demand for loans after a new government was formed in May.

The economy grew less than 5 percent in each of the last two fiscal years, squeezing credit growth and leading to higher defaults.

Net income for the Indian banking sector is expected to grow 22.4 percent in the next 12 months, according to Thomson Reuters StarMine SmartEstimates, which would be the fastest earnings growth in the sector in the Asia-Pacific region.

ICICI's net profit for its fiscal first quarter ended June rose to 26.55 billion rupees ($440 million) from 22.74 billion rupees a year earlier, the bank said on Thursday. Analysts on average had expected a net profit of 25.73 billion rupees.

Net non-performing loans as a percentage of loans were 0.99 percent compared with 0.97 percent in the March quarter. Net interest income, the difference between interest earned and paid, grew 18 percent to 44.92 billion rupees in the quarter.

Net interest margin rose to 3.40 percent from 3.27 percent a year earlier. Retail loans grew 26 percent annually, faster than a 15 percent growth in total credit demand for the bank.

ICICI, which is the largest private sector lender in India, where nearly two dozen state banks account for two-thirds of the assets, said fee income rose 8 percent in the June quarter to 19.36 billion rupees.

Of the 49 analysts tracking ICICI, 42 have a "buy" or equivalent rating, six have a "hold" and one recommends selling the stock, according to data compiled by Thomson Reuters.

Shares in ICICI, valued at more than $28 billion, were up 0.2 percent at 1,491.45 rupees at 0842 GMT in a Mumbai market that was down 0.3 percent.

($1 = 60.40 Indian rupees)