ICICI Bank Q1 results preview: NIMs likely to contract; check Q1 previews & targets

Leading private sector lender ICICI Bank will announce its unaudited standalone and consolidated financial results for the quarter ended June 30, 2025 on Saturday, July 19. 2025. The director board of the bank shall meet today to consider and approve the results June 2025 quarter, followed by a concall at 5 pm IST.

Brokerage firms tracking the stock expect ICICI Bank to report a high single digit growth net interest income (NII), pre-provision operating profit (PPOP) and net profit on a year-on-year (YoY) basis. However, the performance on a quarter-and-quarter (QoQ) basis may remain muted. Net interest margins (NIMs) may also remain under pressure.

Equirus Securities is expecting ICICI Bank to report NIIs at Rs 20,127.7 crore, up 2.9 per cent YoY but down 5.1 per cent QoQ in June 2025 quarter. Its PPOP is marked at Rs 16,863 crore, up 5.2 per cent YoY but down 4.5 per cent QoQ. NIMs are seen contracting 20 bps to 4.2 per cent. It may clock a net profit of Rs 11.579.8 crore, up 4.7 YoY but down 8.3 per cent QoQ.

"We expect robust advances/deposit growth at 3 per cent/2 per cent QoQ. We also expect NIMs to decline by 20-25bps QoQ and contained credit cost trends may continue," added Equirus. According to its NIM guidance comments on unsecured retail asset quality, retail credit demand shall be key things to watch out for.

"We expect PPOP to grow at 7 per cent YoY to Rs 17,128.6 crore as we build in slower NII growth led by recent cut in policy rates. Loan growth is likely to be at 13 per cent YoY. We are building in NIM to decline 20 bps QoQ at 4 per cent - reported NIM would be higher than our estimates. We expect stable credit costs resulting in similar provisions to the base quarter," said Kotak Institutional Equities.

"We expect commentary on NIM to be negative to factor in the recent rate cuts and time taken for the cost of term deposits to decline. We are building slippages of 2 per cent. We don’t expect any negative commentary on asset quality. Key discussion areas would be recovery of NIM and improvement in the loan growth trajectory," added Kotak.

Anand Rathi Shares and Stock Brokers are expecting ICICI Bank to clock a NII at Rs 21,788.4 crore, up 9.6 per cent YoY and 3 per cent QoQ. PPOP may come at Rs 18,742 crore, up 17 per cent YoY and 6.1 per cent sequentially. Net profit is seen at Rs 12,709.4 crore, up 14.9 per cent YoY and 0.6 per cent QoQ.

Emkay Global Financial Services is expecting ICICI Bank to report an income of Rs 21,345.1 crore, up 9.2 per cent YoY and 0.7 per cent QoQ. Ebitda is seen at Rs 17,909.1, up 9.8 per cent YoY but down 1.2 per cent QoQ. Net profit may come in at Rs 12,381.8 crore, up 12 per cent YoY but down 2 per cent QoQ.

Anand Rathi, Kotak Institutional Equities and Emkay Global have a 'buy' rating on ICICI Bank, while Equirus has suggested to 'long the stock. Emkay, Kotak and Equirus have a target price of Rs 1,600 for it. Shares of ICICI Bank rose more than half a per cent to Rs 1426.50 on Friday, commanding a total market capitalization of more than Rs 10 lakh crore.