The share price of ICICI Bank increased by more than 2% on Monday following the strong earnings report for the first quarter of FY25. ICICI Bank’s first quarter performance exceeded analysts’ expectations, showing a 15% increase in net profit compared to the same time last year, driven by strong gains in treasury and dividends. Shares of ICICI Bank rose by 2.67% to reach ₹1,239.95 each on the BSE.
During the April-June quarter of FY25, ICICI Bank, a private lender, recorded a standalone net profit of ₹11,059.1 crore, marking a 14.6% increase from ₹9,648.2 crore in the same period of the previous fiscal year.
In the first quarter of FY25, there was a 7.4% growth in net interest income (NII) to ₹19,553 crore compared to ₹18,226 crore in the previous year. The net interest margin (NIM) decreased to 4.36% from 4.78% last year and 4.40% in the previous quarter because of higher funding expenses.
Asset quality stayed robust, with a gross slippage ratio of 2.2% despite a rise in net slippages to 1% caused by reduced recoveries and upgrades due to seasonal factors and the gradual return to normalcy in the asset quality cycle.
This is what analysts are saying regarding ICICI Bank Q1 results and ICICI Bank stock price:
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ICICI Bank had a consistent quarter, which was not the case for many other big banks. The growth of NII has remained steady, and the rate of NIM contraction has decreased, with expenses being effectively managed, despite accounting for employee salary increases in Q1. Motilal Oswal stated that the bank’s significant technology investment provides a degree of protection from operational expenditure costs.
The brokerage firm reduced its earnings per share (EPS) estimates by 2.3% and 2.0% for fiscal year 2025 and fiscal year 2026. It projected a return on assets (RoA) of 2.19% and a return on equity (RoE) of 17.3% in fiscal year 2026. Anticipates the bank will maintain a compound annual growth rate of approximately 12% in profits after tax from fiscal year 2024 to 2026.
MOFSL reaffirmed its recommendation to ‘Buy’ ICICI Bank shares and raised the target price to ₹1,400 per share, up from ₹1,350.
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Nuvama Institutional Equities reported that ICICI Bank delivered robust earnings and excelled in addressing three major concerns faced by its competitors in Q1FY25: asset quality, LDR, and NIM. Loan growth increased by 15% year-over-year and 3% quarter-over-quarter, while the 4 basis point quarter-over-quarter decrease in Net Interest Margin (NIM) was less than anticipated. Additionally, the 11% year-over-year increase in slippage was lower than both competitors and predicted.
ICICI Bank continues to lead in providing stable profits and steady expansion. As ICICI’s profits were not affected by the issues that impacted its competitors in Q1FY25, we believe the stock should be reassessed. Nuvama Equities stated that they anticipate the excellent performance to persist due to the robust digital initiatives, emphasis on risk-adjusted operating returns, and a solid, detailed Balance Sheet.
It kept a ‘Buy’ rating and adjusted the target price to ₹1,430 per share.
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ICICI Bank remains steadfast in providing strong performance through superior RoA, robust asset quality, and balance sheet. Antique Stock Broking stated that the bank’s liability profile is strong, capitalization is comfortable, and it has developed strong buffers to safeguard earnings in case of a negative macroeconomic environment.
It anticipates RoA to fall between 2% and 2.2% and RoE to range from 16% to 18% during FY25–27E. The brokerage firm reaffirmed its ‘Buy’ recommendation and increased the target price for ICICI Bank shares to ₹1,400 per share, up from ₹1,350.
ICICI Bank shares on the BSE were trading at ₹1,228.65 per share at 10:15 am, showing a 1.73% increase.
MOFSL anticipates that ICICI Bank will maintain a 12 percent CAGR in net profit from fiscal year 2024 to fiscal year 2026. It restated its recommendation to ‘Buy’ with an updated target price of Rs 1,400, up from Rs 1,350 previously. Nirmal Bang Institutional Equities estimated ICICI Bank’s value at 2.8 times June 2026 ABV.
(Disclaimer: The opinions and suggestions mentioned are from individual analysts, experts, and broking firms, not endorsed by Businessuncover. Investors should consult certified experts before deciding on investments.)
