Home > Companies > Company Results > Higher expenses drag down ICICI Bank Q4 net profit to 969 crore

Private sector lender ICICI Bank today reported a 5% drop in net profit to 969 crore in the fourth quarter ended March 31, 2019, hurt by higher expenses. This was lower than 2,129 crore profit expected by analysts. Total expenses jumped 18.1% to 14,680 crore. In comparison, the bank had posted a net profit of 1,020 crore in the same period last year. The bank's asset quality improved quarter on quarter while net interest income jumped 27% in the fourth quarter. ICICI Bank's shares today ended flat at 401 ahead of the earnings announcement.

Here are key highlights of ICICI Bank Q4 results:

The net NPA ratio decreased to 2.06% of advances as of March 31, 2019, from 2.58% at December 31, 2018

Net interest income (NII) increased by 27% year-on-year to 7,620 crore in Q4-2019 from 6,022 crore in the quarter ended March 31, 2018 (Q4-2018).

NII in Q4-2019 includes 414 crore of interest on income tax refund

The net interest margin was 3.72% in Q4-2019 compared to 3.40% in the quarter ended December 31, 2018

Provisions were 5,451 crore in Q4-2019 compared to 6,626 crore in Q4-2018

The gross additions to NPA were 3,547 crore in Q4-2019 as compared to 2,091 crore in Q3-2019. The gross NPA additions in Q4-2019 include an account in the sugar sector where the payment obligations are being met, which has been classified as non-performing pursuant to a regulatory interpretation communicated to banks relating to change in management.

Recoveries and upgrades of non-performing loans were 1,522 crore in Q4-2019

Fee income grew by 15% year-on-year to 3,178 crore

Domestic loan growth at 17% year-on-year at March 31, 2019 driven by retail; tetail loans grew by 22% year-on-year and constituted 60% of the loan portfolio at March 31, 2019

Provision coverage ratio (including technical/prudential write-offs) increased from 60.5% at March 31, 2018 to 80.7% at March 31, 2019

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