ICICI Bank Q4 results preview: Experts see rise in PAT, NII; contraction in NIMs

  • Q4 results 2024 today: ICICI Bank is likely to post mid-teen annual growth in net profit, driven by healthy loan book growth, say experts

Asit Manohar
First Published27 Apr 2024, 09:21 AM IST
ICICI Bank Q4 results today: Key concern would be the progress of NIM as the cost of funds is yet to peak, especially with slower CASA growth. Deposit mobilization is likely to be another key area of discussion, say experts.
ICICI Bank Q4 results today: Key concern would be the progress of NIM as the cost of funds is yet to peak, especially with slower CASA growth. Deposit mobilization is likely to be another key area of discussion, say experts.(Photo: Mint)

ICICI Bank Q4 results 2024 preview: Amid speculations of weak quarterly numbers from the Indian banks in Q4FFY24, ICICI Bank is going to declare its Q4 results 2024 today. According to market experts, the private lender may see a rise in net profit and net interest income on a rise in loan books and improved asset quality. However, they predicted a contraction in NIMs of ICICI Bank due to challenges posed by low-cost deposits and the rising cost of funding.

ICICI Bank Q4 results 2024 preview

Speaking on ICICI Bank's Q4 results preview for FY24, Shreyansh V Shah, Research Analyst at StoxBox said, "ICICI Bank is likely to post mid-teen annual growth in net profit in the fourth quarter, driven by healthy loan book growth, especially in retail and SME segments. The NIIs are also anticipated to show mid-single-digit growth along with traction in PPOP. We expect the asset quality to be stable, with lower sequential credit costs on the back of reversal of AIF provisions."

Also Read: Gold prices end five-week rally on ease in Iran-Israel conflict, dent in US Fed rate cut buzz

"The challenge of garnering low-cost deposits is likely to be visible on NIMs which should compress marginally this quarter. We will closely monitor management comments on the NIM outlook, their strategy for deposit mobilization, outlook on the unsecured loan book, anticipated credit costs, and branch expansion strategy," the StoxBox expert added.

Highlighting the key concern areas in ICICI Bank's Q4 results 2024, Kotak Securities said, "Key concern would be the progress of NIM as the cost of funds is yet to peak, especially with slower CASA growth. Deposit mobilization is likely to be another key area of discussion."

On key business areas of the ICICI Bank that will be in focus, Equirus Securities said, "Key things to look for will be comments on trends in housing loan business as well as Capex cycle, expected growth, and trends in retail non-performing assets (NPAs)."

Advising stock market investors to have a realistic approach while assessing the Q4 results of ICICI Bank, Prabhudas Lilladher said, "Banks under our coverage are expected to witness a weak quarter, as core earnings could fall by 4.6% QoQ to Rs483bn (vs +1.1% QoQ in Q3’24), mainly driven by reduction in NIM. Loan growth might come in at 4% QoQ (4.3% in Q3FY24), while deposit accretion could be +5.3% QoQ (1.9% last quarter). LDR may fall by 1% QoQ to 86% mainly led by HDFCB. NIM contraction would increase this quarter (vs Q3FY24) and we expect NIM to decline by 10bps QoQ (-2bps in Q3’24) to 3.55%."

Also Read: Silver price up 16% in just 2 months; is the metal ready for a strong rally?

"IIB, CUB, and DCB may see better NIM performance. Owing to seasonality in the case of PSU banks, fees for could grow by 9.7% QoQ to Rs360bn which would be offset by higher opex at Rs918bn (+10.5% QoQ). Core PPoP may come in at Rs720bn (-4.4% QoQ). AXSB, ICICIB, and HDFCB might do better on core PPoP. The gross slippage ratio might see a decline of 9bps QoQ as large banks had witnessed an increase in agri slippages in Q3’24. Banks’ PAT is expected to decline by 6.1% QoQ to Rs534bn. Among our coverage universe, we prefer AXSB and HDFCB," Prabhudas Lilladher's report added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:27 Apr 2024, 09:21 AM IST
HomeCompaniesCompany ResultsICICI Bank Q4 results preview: Experts see rise in PAT, NII; contraction in NIMs

Most Active Stocks

Tata Steel

168.00
03:59 PM | 10 JUL 2024
-3.8 (-2.21%)

Indian Oil Corporation

171.95
03:59 PM | 10 JUL 2024
0.25 (0.15%)

Bharat Electronics

333.70
03:58 PM | 10 JUL 2024
-0.85 (-0.25%)

Ashok Leyland

225.95
03:52 PM | 10 JUL 2024
-2.4 (-1.05%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Capri Global Capital

225.65
03:49 PM | 10 JUL 2024
11.15 (5.2%)

Vardhaman Textiles

532.60
03:47 PM | 10 JUL 2024
26 (5.13%)

India Cements

295.50
03:29 PM | 10 JUL 2024
13.85 (4.92%)

NLC India

276.40
03:59 PM | 10 JUL 2024
12.9 (4.9%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K

    Fuel Price

    • Petrol
    • Diesel
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts