Stronger loan growth, higher net interest income and a 30.5% drop in provisions helped the Indian lender top LSEG analyst forecasts, while asset quality improved slightly.
ICICI Bank reported stronger-than-expected first-quarter earnings, with stand-alone net profit rising to 148 billion Indian rupees for the three months ended June from 127.68 billion rupees a year earlier, ahead of the 131.8 billion rupees forecast by analysts polled by LSEG. The result was supported by a 12.7% increase in net interest income to 243.8 billion rupees, aided by a 19.6% rise in domestic loans, and by a 30.5% decline in provisions to 12.6 billion rupees. Deposits grew 14% in the quarter. Net interest margin was marginally higher at 4.36%, while other income, including income from bonds and other investments, rose 16% to 84.25 billion rupees amid volatile currency and debt markets. Asset quality improved slightly, with the gross non-performing asset ratio at 1.38% at the end of June versus 1.4% in the prior three months. The results come as Indian banks have seen loan growth pick up since April, driven by demand for personal credit, loans against gold, and higher small-business borrowing, partly supported by government default guarantees introduced amid disruptions caused by the Iran war.