ICICI Bank Q4FY23 result preview: Unlike HDFC Bank, which posted muted net profit growth sequentially, private lender ICICI Bank may see double digit gains in net profit on yearly and quarterly basis during the March quarter of Fy23 (Q4FY23).
According to consensus estimates by Bloomberg, ICICI Bank's profit after tax (PAT) may come in at Rs 9,304 crore, up 12 per cent quarter-on-quarter (QoQ) and 32.6 per cent year-on-year (YoY).
Better-than-industry loan growth, meanwhile, may drive its net interest income (NII) 4 per cent QoQ/29 per cent YoY higher to Rs 22,304 crore.
The lender is slated to report its January-March quarter result on Saturday, April 22.
Here's what key brokerages expect:
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This brokerage expects PAT to surge 33 per cent YoY to Rs 9,342.7 crore from Rs 7,018.7 crore reported in Q4FY22. Sequentially, it sees 12.4 per cent jump in profit from Rs 8,311.9 crore logged in Q3FY23.
NII, and pre-provision operating profit (PPoP), meanwhile, are seen slipping 1 per cent and 2 per cent, respectively, on a quarterly basis to Rs 16,284.4 crore and 13,020.2 crore. On a YoY basis, this is an over 25 per cent growth for both the parameters.
It expects NII to 36 per cent YoY and over 4 per cent QoQ to Rs 17,166 crore on the back of 18 per cent YoY improvement in loan book.
This would also boost PPoP by 36 per cent YoY/6 per cent QoQ to Rs 14,039 crore, along with sequential improvement in net interest margin.
PPoP was Rs 10,293 crore in Q4FY22 and Rs 13,271 crore in Q3FY23. PBT, and PAT are pegged at Rs 12,151 crore, and Rs 9,074 crore, respectively.
Kotak Institutional Equities
It expects PPoP to grow at around 33 per cent YoY (Rs 13,661.7 crore) due to most operating metrics staying stable to positive. It antici[ates loan growth to be solid at 20 per cent YoY driven by healthy contribution from all segments. They have built flat NIM on a sequential basis at 4.7 per cent.
Moreover, provisions are expected to remain at low levels (down 10 per cent QoQ at Rs 2,022.5 crore), given lower slippages and better trends on recovery/upgradation.
Slippages could be around 2 per cent (Rs 5,000 crore), with asset quality staying steady.
Key concern would be the reversal of NIM as cost of funds is starting to move up sharply for the sector, especially with slower CASA growth, the brokerage said.
The brokerage sees NII at Rs 17,199.7 crore, and PAT at Rs 8,869 crore. On the asset quality front, gross non-performing asset (GNPA) ratio is seen improving to 2.9 per cent, while NNPA is seen improving to 0.5 per cent.
The brokerage pegs a 12.6 per cent QoQ decline in slippages to Rs 5,000 vs Rs 5,723 crore in Q3FY23. On a yearly basis, though, slippages may be 19 per cent higher.
The Loan book is pegged at Rs 10.13 trillion, up 18 per cent YoY (Rs 8.5 trillion) and 4 per cent QoQ (Rs 9.74 trillion).