ICICI Bank shares rise after strong results. Should you buy, hold or sell the stock?

ICICI Bank shares rose on Monday, after the country’s second largest lender reported a strong set of quarterly financial results. The ICICI Bank stock climbed by as much as Rs 13.6 or 1.6 per cent to Rs 883.9 apice on BSE. Brokerages have largely positive views on ICICI Bank, with targets implying a potential upside as high as 43.6 per cent.  

On Saturday, the bank reported a 34.2 per cent increase in net profit to Rs 8,311.8 crore for the October-December period on the back of 34.5 per cent growth in net interest income — or the difference between interest earned and interest paid — to Rs 16,465 crore compared with the corresponding period a year ago. 

Its net interest margin  —  a key measure of profitability for lenders — improved by 34 basis points sequentially to 4.65 per cent, according to a regulatory filing. 

According to Zee Business research, the lender’s quarterly net profit was estimated at Rs 8,120 crore, NII at 15,730 crore and NIM growth at 10-15 bps. 

ICICI Bank’s gross non-performing assets (gross bad loans) as a percentage of total loans shrank by 12 bps on a quarter-on-quarter basis to 3.07 per cent, better than the analysts’ estimates.

Net bad loans improved by six basis points to 0.55 per cent, as against the Zee Business research estimate of no change.

The lender’s provisions increased 12.5 per cent on year to Rs 2,257.4 crore, according to the filing.

What brokerages say

CLSA on ICICI Bank (CMP: 870) 

Maintain Buy, Target 1175 

Delivered impeccable 3Q with 34% YoY 

 core PPOP growth driven by another 34bps of QoQ NIM expansion & robust 20% YoY loan growth 

Deposits grew 3% QoQ 

Opex growth moderated to 16% YoY 

Expect bank to deliver a +3% RORWA & +17% ROE 


Morgan Stanley on ICICI Bank (CMP: 870) 

Maintain Overweight, Target 1250 

Another strong qtr, with 30% core PPoP growth 

Key question- whether PPoP growth can be sustained at 18-20% during F24-25 

Think so, reflecting stable average margins in F24, deposit growth acceleration & higher operating leverage 


JP Morgan on ICICI Bank (CMP: 870) 

Maintain Overweight, Target 1150 

Continued its strong earnings momentum in 3Q with net income up 34% y/y (ROE: 18%) – 2% ahead of est.  

Core PPOP up 34% y/y (12% q/q) & NIM expansion (+34bps q/q)  

resulting in an all-time-high operating profit margin 


Citi on ICICI Bank (CMP: 870) 

Maintain Buy, Target raised to 1100 from 1080 


Jefferies on ICICI Bank (CMP: 870) 

Maintain Buy, Target 1150 

3Q profit up 34% YoY, ahead of est. aided by stronger than expected NIMs  

SME & unsecured lending continue to lead loan growth of 20%, but fee growth lagged at 4% 

Asset quality stays robust & bank beefed up reserves 

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