ICICI Bank Q2 results preview: Single-digit growth in net profit expected

“The meeting of the Board of Directors of the bank is scheduled to be held on Saturday, October 26, 2024, to, inter alia, consider and approve the unaudited financial results (standalone and consolidated) for the quarter and six months ending September 30, 2024,” the bank had informed in a stock exchange notification last month.

Experts are predicting ICICI Bank to post net profit growth in the range of 4-11% in the September quarter of the current financial year compared to the year-ago period.

Various estimates peg the lender’s net profit at ₹10,667 crore to ₹11,432 crore compared to ₹10,261 crore in the year-ago period.

Estimates for ICICI Bank’s net interest income (NII) growth are more varied, with a broader range of 9-45% compared to a year ago. The absolute NII number is forecast to be in the range of ₹19,930 to ₹26,710 in Q2FY25 compared to ₹18,308 crore in Q2FY24.

Meanwhile, Investing.com estimates ICICI Bank’s revenue at ₹24,435 crore for Q2FY25.

Previous quarter performance

For the quarter ended June 2024, ICICI Bank had reported that its June quarter standalone profit after tax had grown by 14.6% to ₹11,059 crore compared to a year ago. The bank’s NII had risen 7.3% to ₹19,553 crore from year-ago levels.

Net interest margin (NIM) had contracted to 4.36% in Q1FY25 compared to 4.78% in Q1FY24 and 4.4% in Q4FY24.

In terms of asset quality, ICICI Bank’s gross non-profit assets (NPA) declined marginally to 2.15% at ₹28,718.6 crore at the end of Q1FY25.

Key factors to watch out for in Q2 results

Considering the benign numbers and poor outlook of other private banks, market participants will keenly watch ICICI Bank’s management commentary on its margin outlook and lending growth.

Besides that, key metrics to be in focus would also include deposit growth and loan growth at the lender, which would set the pace for future earnings growth.

ICICI Bank share price

Traders were cautious ahead of ICICI Bank’s earnings announcement, with the stock erasing early gains to trade in the red. Shares of ICICI Bank declined as much as 1.48% to hit an intraday low of ₹1,234.2 apiece on the NSE. The stock, however, recovered losses to close 0.55% higher at ₹1,259.65 apiece on the NSE.

The banking stock has lost more than 2% in the past five trading sessions and 6.5% in the past one month. However, the ICICI Bank stock has gained almost 24% year-to-date, while jumping more than 35% in the past one year.