ICICI Bank's shares experienced a near 1% rise on the NYSE following the announcement of its Q2 fiscal 2024 results. The bank reported a significant net income increase of 35.8% year-on-year (YoY), reaching INR102.61 billion ($1.2 billion). This growth can be attributed to a surge in Net Interest Income (NII), non-interest income, and loans and deposits, despite a treasury loss of INR0.85 billion ($10 million). According to InvestingPro data, the bank's market cap stands at a robust $77.25 billion, and its P/E ratio is at 15.91.
Operating expenses for the bank also saw a rise, increasing by 20.8% to INR98.55 billion ($1.2 billion). NII saw a significant increase of 23.8% YoY, reaching INR183.08 billion ($2.2 billion), and the net interest margin grew by 22 basis points to 4.53%. Non-interest income (excluding treasury income) rose by 14% to INR58.61 billion ($706 million), while fee income experienced a growth of 14.2%, amounting to INR52.04 billion ($627 million). The InvestingPro data shows revenue growth of 21.15% for the bank, highlighting its strong financial performance.
The bank's total advances, which were boosted by retail loan balances, business banking loans, and SME loans, surged by 18.3% YoY to INR11,105.42 billion ($133.7 billion). Total deposits followed suit with an increase of 18.8%, amounting to INR12,947.42 billion ($155.9 billion). As per InvestingPro Tips, the bank is a prominent player in the banking industry and has consistently increased its earnings per share, which is a positive sign for potential investors.
ICICI Bank's net NPA ratio witnessed a decrease from 0.61% to 0.43%, with recoveries and upgrades of NPAs amounting to INR45.71 billion ($550 million). Provisions (excluding tax provision) reduced significantly by 64.5% to INR5.83 billion ($70 million). The bank's return on assets stands at 2.11% as per InvestingPro data, indicating a strong financial position.
The bank, currently holding a Zacks Rank #3 (Hold), maintained strong capital adequacy with total capital at 17.59% and Tier-1 capital at 16.86%. The contingency provision stood at INR131 billion ($1.6 billion). InvestingPro Tips also suggests that the bank has been profitable over the last twelve months, further strengthening its financial stability.
In other banking news, Barclays reported a Q3 2023 net income of £1.27 billion ($1.61 billion), and HSBC is set to announce its Q3 2023 earnings on October 30, 2023. For more insights and tips on investing, visit InvestingPro for access to over 15 additional tips and real-time metrics.
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