ICICI Bank Q1 Results Review - Steady Quarter; Robust Other Income Drives Earnings Beat: Motilal Oswal

Motilal Oswal Report

ICICI Bank Ltd. reported a steady quarter, with 15% YoY growth in net earnings (4% beat). Net interest income was in line, while other income was strong, led by healthy treasury gains and dividends. Net interest margins inched down 4 basis points QoQ to 4.36%.

ICICI Bank's credit growth was healthy at 15.7% YoY/3.3% QoQ, led by healthy traction in small and medium enterprise and business bankingBB, and relatively slower but decent growth in retail. Deposit growth was slower at 15.1% YoY/0.9% QoQ, similar to peers.

On the asset quality side, slippages were slightly higher at Rs 59.16 billion/ 2.2% owing to seasonal KCC slippages. Gross non-performing asset/net non-performing asset ratios stood broadly flat at 2.15%/0.43%, while contingency buffer remained unchanged at Rs 131 billion (1.1% of loans). 

We fine-tune our EPS estimates for FY25/FY26, projecting return on asset/return on equity of 2.19%/17.3% by FY26. Reiterate Buy with SoTP-based target price of Rs 1,400.

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