Rs 11 Per Share Dividend Declared: India's Second Largest Private Bank Reported 18 Per Cent Jump In Q4 Net Profit, Strong Credit Growth, Improved Asset Quality
In the last year, the stock has given 31 per cent returns, outperforming Banknifty's 14 per cent returns.
ICICI Bank reported a robust performance for the quarter ended March 31, 2025 (Q4 FY25), with profit before tax (excluding treasury) rising 13.2 per cent year-on-year to Rs 16,534 crore. The bank’s core operating profit increased by 13.7 per cent to Rs 17,425 crore during the quarter. Net profit grew by 18.0 per cent year-on-year to Rs 12,630 crore, outperforming market estimates.
For the full year FY2025, profit before tax excluding treasury rose by 11.4 per cent to Rs 60,713 crore, and core operating profit was up 12.5 per cent at Rs 65,396 crore. The bank reported a 15.5 per cent annual growth in net profit at Rs 47,227 crore. Net Interest Income (NII) grew by 11 per cent year-on-year in Q4 to Rs 21,193 crore, while the Net Interest Margin (NIM) improved to 4.41 per cent from 4.25 per cent in the previous quarter.
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In terms of credit growth, total advances stood at Rs 13.42 lakh crore, a growth of 13.3 per cent year-on-year and 2.1 per cent sequentially. Domestic advances rose 13.9 per cent YoY and 2.2 per cent QoQ, while the retail loan portfolio, comprising 52.4 per cent of the total, increased by 8.9 per cent YoY and 2 per cent QoQ. Business banking grew sharply at 33.7 per cent YoY, while the rural loan book rose 5.1 per cent YoY but declined 1.5 per cent QoQ. Domestic corporate loans saw an 11.9 per cent rise YoY but slipped 0.4 per cent on a sequential basis. Deposit growth was strong, with total period-end deposits increasing 14.0 per cent YoY and 5.9 per cent QoQ to Rs 16.1 lakh crore. The bank added 241 branches during Q4, expanding its network to 6,983 branches and 16,285 ATMs.
Asset quality improved in Q4. Gross NPAs declined to Rs 24,166.2 crore from Rs 27,745.3 crore in the previous quarter, with the gross NPA ratio falling to 1.67 per cent from 1.96 per cent. Net NPAs also dropped to Rs 5,589.4 crore, with the net NPA ratio improving to 0.39 per cent from 0.42 per cent. Recoveries and upgrades stood at Rs 3,817 crore, while the bank wrote off Rs 2,118 crore of bad loans. The provision coverage ratio was 76.2 per cent. The capital adequacy ratio stood at 16.55 per cent, and CET-1 ratio was 15.94 per cent, both well above regulatory requirements.
ICICI Bank’s subsidiaries also delivered strong results. ICICI Prudential Life Insurance posted a 29.5 per cent increase in FY25 net profit at Rs 2,651 crore. Its value of new business (VNB) grew to Rs 2,370 crore, with a margin of 22.8 per cent. ICICI Lombard General Insurance reported a 30.7 per cent rise in FY25 net profit at Rs 2,508 crore, despite a slight drop in premium income. ICICI Prudential AMC recorded a 29.3 per cent YoY rise in Q4 profit to Rs 692 crore. ICICI Securities, now a wholly-owned subsidiary post-delisting in March 2025, saw its full-year profit grow 14.4 per cent to Rs 1,942 crore despite a quarterly dip.
The ICICI Bank board has recommended a dividend of Rs 11 per share for FY2025, reflecting its consistent profitability and strong capital position. In the last year, the stock has given 31 per cent returns, outperforming Banknifty's 14 per cent returns. In the last 5 years stock has given 274 per cent returns.
Disclaimer: The article is for informational purposes only and not investment advice.