ICICI Bank Q4 results preview: Net interest margin expected to decline, slippages may see a fall

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Bank, India’s second-largest private lender, will unveil its fourth-quarter earnings on Saturday (April 27). Analysts project a decline in net interest margin (NIM), with estimates ranging from a 10 to 20 basis points reduction quarter on quarter (QoQ).

This factor could potentially impact Net Interest (NI) growth too.

According to CNBC-TV18 poll, Net Interest Income (NII) is anticipated to stand at ₹18,982.3 crore, up by 7.4% compared to the previous year and a modest 1.6% increase QoQ.

CNBC-TV18 Stocks Board | Net Interest Margin compression cycle could impact Net Interest Income growth for @ICICIBank in #Q4. Slippages are expected to decline QoQ. @kothariabhishek lines up all the expectations from the bank in #Q4FY24 pic.twitter.com/bvyqWOACeQ

— CNBC-TV18 (@CNBCTV18News) April 26, 2024

Profit After Tax (PAT) is expected to reach ₹10,323.3 crore, reflecting a 13.2% growth YOY and a marginal 0.5% uptick QoQ.

Year-on-year loan growth is anticipated to be robust at 18%, but QoQ growth is expected to be more subdued at around 4%.

A decline in slippages is forecasted for the quarter, with estimates indicating an improvement from the previous quarter.

Analysts will closely monitor ICICI Bank’s asset quality, with expectations leaning towards stability or even improvement.

In the third quarter of FY24, the bank had registered 23.5% increase in standalone profit and a 13% rise in net interest income.

The bank’s net interest income (NII) experienced a year-on-year growth of 13.4%, reaching ₹18,678 crore for the third quarter from ₹16,465 crore in the same period a year ago.

The net interest margin (NIM) stood at 4.43% in the third quarter, compared to 4.53% in the September quarter and 4.65% in the corresponding quarter of last year.

At the time of writing this report, the shares of ICICI Bank were trading 0.51% lower at ₹1,107.35 apiece on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow