ICICI Bank, the leading private sector bank has announced its quarterly results for the quarter ended 31st March 2022 on Monday 23rd April 2022. Bank has posted a strong set of numbers on the board this quarter and has recorded a standalone net profit of Rs. 7,019 Cr. up by 59.4% YoY and 13% QoQ. Let’s deep dive into it to know the reason for this sharp growth.
Financial Highlights- Standalone:
- ICICI Bank’s standalone business reported a net profit of Rs. 7,019 Cr. in the quarter ended 31st March 2022 which grew by 59.4% YoY and 13% QoQ.
- This strong profitability growth of the bank is being driven by the lower provisions amount. Bank maintain provision for bad loans to reduce the burden of uncertainty and these provision of ICICI bank has reduced in big numbers.
- In the last quarter provision was 1,069 Cr. There is a fall in provision is approximately 63% YoY and QoQ is down by 47%.
- As banks have to prepare fewer provisions which ultimately improves the asset quality of the ICICI Bank Limited.
- The balance sheet size of ICICI bank is Rs.14.11 lakh cr. and there is a growth of 14.7% in this balance sheet, and 4.2% growth in QoQ Compared to the advances the movement in the balance sheet is a bit low.
- CASA is valued at 45.2% of the total deposits and in absolute Rs. 5.18 lakh cr. The growth of CASA is 20% YoY and QoQ is 7.8%.
- The total loan book of the ICICI bank is Rs. 8.59 lakh cr. These numbers are up by 17% in YoY and 5.5% in QoQ.
- The retail loan book is valued at Rs. 4.54 lakh cr. which is 56% of the total loan book, approximately 20% growth has been seen in YoY and 6% in QoQ.
- The share of retail loans book indicated the ICICI bank is focusing on the retail loans majorly.
- Net Interest Margin numbers as of 31st March 2022:
- Global:- 4%
- Domestics:- 4.12%
- Around 90-95% business of the ICICI bank is domestic.
- Cost to Income Ratio as of 31st March 2022 is 40.6%. It is reduced from last quarter which means banks is improving its efficiency.
- The Capital Adequacy Ratio (CAR) is 19.2% as of 31st March 2022. In comparison to the last quarter, it has been increasing which means the bank will retain its profit.
- Return on Average Assets is at 2.11% as of 31st March 2022. If banks have more than 2% return on average assets it shows positivity which can be seen here as well.
- Gross NPA (Non-Performing Assets) is 3.6% as of 31st March 2022. In comparison to the last quarter which was 4.13% showcasing improvement in this factor.
- Net NPA (Non-Performing Asset) is 0.76% as of 31st March 2022. In the Q3FY22, it was 0.85% which means the bank is improving on this front as well.
- Provision coverage ratios are 79.2% as of 31st March 2022. This ratio is a bit lower than last quarter but not much of a concern.
- The net profit of the consolidated financial is Rs. 7,719 Cr. which has grown by 58% YoY and 18% in QoQ which means ICICI bank and all the subsidiaries of ICICI are also growing.
What Should Shareholders Do?
ICICI Bank has posted a strong quarterly result for the quarter ended 31st March 2022 in all aspects. The stock has not performed up to the expectation in the recent past but one cannot ignore its consistency in terms of profitability view, asset management, and all other aspects. Hence one should closely watch this counter and should keep this stock on their radar.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.