ICICI Bank's Q3 Earnings Increase Y/Y as NII & Fee Income Rise

ICICI Bank Ltd.’s IBN net income for the third quarter of fiscal 2025 (ended Dec. 31, 2024) was INR 117.9 billion ($1.4 billion), up 14.8% from the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The results were driven by a rise in net interest income (NII), non-interest income and growth in loans and deposits. However, higher operating expenses and provisions were the undermining factors.IBN’s NII & Fee Income Improve, Expenses RiseNII grew 9.1% year over year to INR 203.7 billion ($2.38 billion). The net interest margin was 4.25%, down 18 basis points.Non-interest income was INR 67 billion ($782 million), up 12.1% year over year. Fee income increased 16.3% year over year to INR 61.8 billion ($722 million).In the reported quarter, IBN recorded a treasury income of INR 3.7 billion ($81 million), up significantly from the prior-year quarter.Operating expenses totaled INR 105.6 billion ($1.23 billion), up 5% year over year.ICICI Bank’s Loans & Deposits IncreaseAs of Dec. 31, 2024, ICICI Bank’s total advances were INR 13,143.7 billion ($153.51 billion), up 2.9% sequentially. Growth was primarily driven by a solid rise in business banking loans and domestic corporate and other loans.Total deposits grew 1.5% sequentially to INR 15,203.1 billion ($177.56 billion).IBN’s Credit Quality: Mixed BagAs of Dec. 31, 2024, the net non-performing assets (NPA) ratio was 0.42%, which declined from 0.44% in the prior-year period. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR 33.92 billion ($396 million) in the reported quarter.In the fiscal third quarter, there were net additions of INR 26.93 billion ($315 million) to gross NPA. Gross NPA additions were INR 60.85 billion ($711 million), while gross NPA written-off was INR 20.1 billion ($235 million).Provisions (excluding provision for tax) increased substantially year over year to INR 37.9 billion ($442.9 million). As of Dec. 31, 2024, the bank held a total contingency provision of INR 131 billion ($1.53 billion).Capital Ratios Strong for ICICI BankIn compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 14.71%. Tier-1 capital adequacy was 14.04% as of Dec. 31, 2024. Both ratios were well above the minimum requirements.Our Take on IBNICICI Bank’s quarterly performance was impressive, driven by increased consumer loan demand, improved deposit balances and growth in NII and non-interest income. These factors are anticipated to continue to support the bank’s financials. However, elevated expenses and weak asset quality amid macroeconomic uncertainties are significant near-term challenges.ICICI Bank Limited Price, Consensus and EPS Surprise ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited QuoteICICI Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Results Date of Other Foreign BanksBarclays PLC BCS is slated to report fourth-quarter and full-year 2024 results on Feb. 13.The Zacks Consensus Estimate for BCS’ quarterly earnings has remained unchanged at 19 cents over the past week.HSBC Holdings PLC HSBC is scheduled to release fourth-quarter and full-year 2024 numbers on Feb. 19. The consensus estimate for HSBC’s quarterly earnings has remained unchanged at $1.41 over the past week.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks