Q1FY23 Preview: ICICI Bank: Net Interest Income seen at Rs129.7 billion, PAT at Rs64.6 billion

22 Jul 2022 , 04:59 PM

Result date: 23^rd July, 2022
Recommendation: Buy
Target price: Rs1,000

ICICI Bank is likely to post strong growth in its loan book at 4.5% sequentially and 21.5% over the year-ago quarter. Deposits could grow by 4.5% sequentially and 20% over the year-ago quarter. Growth in its Net Interest Income is pegged at 19% over the year-ago quarter, even as non-interest income could grow by 18%.

The bank’s Net Interest Margin are likely to remain stable on a sequential basis at ~3.96%.

Falling provisions as compared to the year-ago quarter will aid pre-provisioning operating profit. Slippages should moderate sequentially, from ~Rs42 billion in March 2022 quarter, leading to continued improvement in asset quality.

Consequently, the Profit After Tax (PAT) could grow 40% on a year-on-year basis.

Important management insights to watch out for:
·         Trends in loan growth, margins
·         Outlook on asset quality

(Rs billion)	June 2022 estimates	YoY change	QoQ change
Net Interest Income	129.7	19%	3%
Total Income	176.9	18%	2%
Pre Provisioning Op. Profit	103.1	16%	0%
Profit After Tax	64.6	40%	(8)%

Source: IIFL Research