Q2FY23 Preview: ICICI Bank: NII seen at Rs136.6 billion, PAT at Rs72.8 billion

21 Oct 2022 , 07:47 AM

Result date: 22^nd October, 2022
Recommendation: Buy
Target price: Rs1,070

ICICI Bank could register healthy loan growth at 22.4% over the year-ago quarter and 4.5% sequentially. Deposit growth could come in at 12% over the year-ago quarter and 4.5% sequentially. The Bank’s Net Interest Income (NII) is likely to grow 17% over the year-ago quarter and 3% sequentially.

However, lower growth in non-interest income could lead to single digit growth in pre-provisioning operating profit. Analysts at IIFL Capital Services expect the Bank’s slippages to moderate sequentially, in continuation with the trend of improving asset quality.

A sharp 58% decline in provisions could aid Profit After Tax (PAT) which could grow 32% over the year-ago quarter.

Important management insights to watch out for:

• Credit demand across key segments
• Asset quality trends
• Margin drivers
• Outlook on credit cards business

Rs. Billion	September 2022 estimates	QoQ change	YoY change
Net Interest Income	136.6	3%	17%
Total Income	186.5	4%	13%
Pre-Provisioning Operating Profit	108.5	5%	9%
Provisions	11.5	1%	(58)%
Profit After Tax	72.8	5%	32%
Loans	9,359	5%	22%
Deposits	10,976	5%	12%

Source: Company, IIFL Research