The financial institution’s internet curiosity revenue (NII) for the quarter rose by 7.3% YoY to Rs 19,553 crore whereas the online curiosity margin was 4.36% in Q1 in comparison with 4.40% in This autumn of FY24 and 4.78% in Q1 of FY24.
Through the quarter, ICICI Financial institution’s price revenue grew by 13.4% YoY to Rs 5,490 crore in Q1. Charges from retail, rural, enterprise banking, and SME clients constituted about 78% of complete charges.
The NII of the financial institution was consistent with ET Now ballot estimates whereas PAT was above expectations. Right here is how analysts seen the quarterly outcomes:
Morgan Stanley: Chubby| Goal worth: Rs 1,500
The worldwide brokerage agency has maintained an obese name on ICICI Financial institution and hiked the goal worth to Rs 1,500 vs Rs 1,400
The supply stood uninterrupted and Morgan Stanley expects the inventory to do nicely put up sturdy F1Q25. RoAs have been nicely above normalized ranges and had room to soak up potential margin normalisation. The inventory is well-placed to soak up potential regulatory adjustments.
Nuvama: Purchase| Goal worth: Rs 1,450
Nuvama stated that ICICI Financial institution turned in sturdy earnings and outperformed on three key issues plaguing its friends in Q1FY25: asset high quality, LDR and NIM. Loans grew 15% YoY/3% QoQ whereas the 4bp QoQ dip in NIM is decrease than anticipated and the QoQ enhance in slippage of 11% YoY can be decrease than friends and expectations. Regardless of elections and the heatwave, ICICI’s retail slippage ratio declined YoY. Core PPOP grew 11% YoY/remained flat QoQ because of the seasonal sequential spike in opex.
ICICI Financial institution stays probably the most constant in delivering core earnings and granular progress.
Macquarie: Outperform| Goal worth: Rs 1,300
Macquarie retained an outperform ranking on the financial institution with a goal worth of Rs 1,300.
PAT was in line and a excessive opex offset by excessive price revenue was seen whereas the credit score price is prone to normalize to 50bp in close to time period. Macquarie believes that margin strain will stay within the close to time period
IIFL: Add| Goal worth: Rs 1,320
IIFL has maintained an add ranking on ICICI Financial institution with a goal worth of Rs 1,320.
The expansion was wholesome whereas the NIM strain ought to persist. The financial institution’s asset high quality was steady and credit score prices are prone to inch-up. IIFL expects valuation premium to slim.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of Financial Instances)
