Private sector lender ICICI Bank will announce its earnings for quarter ended March today. ICICI Bank share price closed 0.30 percent higher at Rs 337.35 on May 8. Dalal Street expects ICICI Bank to report healthy earnings in Q4. Edelweiss Securities expects Q4 profit to be high as the March quarter of 2019 witnessed higher than normal credit cost and due to the private lender's move to shift to new corporate tax regime.
The brokerage sees 278 per cent YoY rise in Q4 net profit to Rs 3,664 compared with Rs 969 crore in the year-ago quarter. Net interest income (NII), including other income, is seen rising 10 per cent to Rs 12,399 crore from Rs 11,241 crore YoY.
Global brokerage Nomura expects profit after tax (PAT) to come at Rs 4,252 crore, up 339 per cent YoY from Rs 969.1 crore. However, amounts to 3 per cent sequential gain from a profit of Rs 4,146.5 crore clocked in Q3FY20.
"With lower exposure towards vulnerable granular segments, lower risk underwriting in the corporate segment in the past 3-4 years, and reasonable valuation providing better safety nets to ride the current cycle, we expect ICICI Bank to report healthy numbers this quarter," analysts at Nomura wrote in their earnings preview note.
"Higher non-interest income and controlled operating expenditure (opex) growth could drive over 19 per cent YoY operating profit growth," HDFC Securities said in its earnings expectations note.
Here are the key things to watch out for in ICICI Bank's earnings report.
- Net profit
- Net interest income
- Operating profit
- Total deposits
- Non-performing assets (NPAs)
- Moratorium utilised by customers
- Management's commentary on fund raising plans
- Business growth projections
- Management's commentary on Covid-19 related impact
In third quarter of previous fiscal, ICICI Bank's net profit rose 158.36 per cent as provisions halved.
The bank reported a standalone net profit of Rs 4,146.46 crore during the quarter under review, as opposed to Rs 1,604.91 crore registered in the year-ago period.
Net interest income (NII), the difference between interest earned and interest expended, increased 24 per cent on annual basis to Rs 8,545 crore in Q3 FY20 from Rs 6,875 crore in Q3 FY19.
Net interest margin climbed 3.77 per cent in December quarter, compared to 3.64 per cent in the quarter ended September 30, 2019, and 3.40 per cent in Q3 FY19. Operating profit increased 22.8 per cent during Q3 FY20 to Rs 7,548 crore.