ICICI Bank Q2 results today: Net profit expected to rise 8%, NII to be up 10% YoY – Here’s what to expect

ICICI Bank, the second largest private bank in India, will announce its quarterly results for September on Saturday, October 26. ICICI Bank’s Q2 results are expected to be decent due to healthy loan and deposit growth, stable asset quality and borrowing costs remaining under control.

ICICI Bank is expected to report a net profit of ₹11,106 crore in Q2FY25, registering a growth of 8.2% ₹10,261 crore in the same quarter of the last fiscal, according to Livemint Survey of seven broker estimates.

Net interest income (NII), the difference between interest earned and interest paid, is expected to increase 9.6% in the second quarter of fiscal 2025 ₹20,071 crore of ₹18,308 crore, YoY (YoY).

The net interest margin (NIM) is expected to contract slightly year-on-year due to the increase in cost of deposits, but remain stable in the previous quarter. Analysts expect ICICI Bank’s NIMs to be at 4.4% in the second quarter of FY2025 compared to 4.5% in the second quarter of FY2024.

Kotak Institutional Equities expects the NIM to decline by 10 basis points or possibly remain stable at 4.1%. The NIM compression cycle appears to be starting to lag, which is likely a key positive outcome, it said.

Operating profit before provisions (PPOP) in the quarter ending September 2024 is expected to rise 13.7% ₹16,180 crore from ₹14,229 crore, YoY, supported by healthy fee income and broadly stable cost ratios.

Loan and deposit growth

ICICI Bank’s loan growth in the September quarter is estimated to be broadly in line with deposit growth and CD ratio to remain stable.

Loan growth is expected to be around 13%-14% YoY, led by contribution from all segments (slowdown in unsecured loans).

Asset quality

The private lender’s asset quality is expected to remain stable quarter-on-quarter. Motilal Oswal Financial Services estimates that ICICI Bank’s gross non-performing assets ratio (GNPA) will be about 2.3% at the end of September 2024, compared to 2.2% in the June quarter. Net NPA ratio in Q2FY25 is expected to be 0.5% compared to 0.4% in QoQ.

Provision growth is expected to be higher as provisions were negligible in the base quarter. Slippages are estimated at 2%.

ICICI Bank share price

ICICI Bank share price has delivered decent returns this year. While ICICI Bank shares have only risen over 4% in the last three months, the stock has risen over 25% year-to-date (YTD). ICICI Bank share price has risen over 36% in the last one year.

At 3:00 pm, shares of ICICI Bank were trading 0.06% higher ₹1,253.35 each on the BSE.

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