ICICI Bank Q4FY23 net profit up 27.6% at Rs9,853 crore as NIMs surge to record 4.90%
ICICI Bank reported 25.9% growth in total revenues for the March 2023 quarter on consolidated basis at Rs53,923cr. Revenue growth was 12.67% in sequential terms for Q4FY23. Net interest income (NII) increased by 40.2% yoy at Rs17,667 crore in Q4FY23 while the net interest margins (NIM) expanded by a record 90 bps from 4.00% to 4.90% yoy. NIMs were up 35 bps on a sequential basis.
The core operating profits adjusted for provisions grew 34.7% yoy at Rs12,247 crore in the fourth quarter. The spike in the net profit was despite a sharp 52% spike in the provisions made in the latest quarter. Apart from the core interest income growth, even the non-interest income grew 11.3% while the fee income for the quarter was up 10.6% yoy at Rs4,830 crore. While operating margins were sharply higher on a yoy basis, the growth in net margins was more subdued.
Financial highlights for Mar-23 compared yoy and sequentially
| ICICI Bank | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income | ₹ 53,923 | ₹ 42,834 | 25.89% | ₹ 47,860 | 12.67% |
| Operating Profit | ₹ 15,206 | ₹ 11,528 | 31.91% | ₹ 14,370 | 5.82% |
| Net Profit | ₹ 9,853 | ₹ 7,719 | 27.64% | ₹ 8,792 | 12.06% |
| Diluted EPS | ₹ 13.84 | ₹ 10.88 | ₹ 12.35 | ||
| Operating Margins | 28.20% | 26.91% | 30.02% | ||
| Net Margins | 18.27% | 18.02% | 18.37% | ||
| Gross NPA Ratio | 2.81% | 3.60% | 3.07% | ||
| Net NPA Ratio | 0.48% | 0.76% | 0.55% | ||
| Return on Assets (Ann) | 2.39% | 2.11% | 2.20% | ||
| Capital Adequacy | 18.34% | 19.16% | 16.26% |
In terms of business growth overall, the total deposits in the fourth quarter grew 10.9% at Rs11.81 trillion with the average CASA ratio standing at 43.6% of the total deposits base. The domestic loan portfolio grew by 20.5% on a yoy basis. With provision coverage ratio of 82.8% of non-performing assets, the NPA situation is getting a lot more comfortable. Gross NPAs also fell to 2.81% while the net NPAs were also sharply lower at 0.48% in the March 2023 quarter. Returns on assets has sustained above 0.50% in the last few quarters.