ICICI Bank (IBN) Q1 Earnings Rise Y/Y as NII, Fee Income Grow

Core Insights - ICICI Bank Ltd. reported a net income of INR 110.6 billion ($1.32 billion) for Q1 FY2025, reflecting a 14.6% increase year-over-year, driven by growth in net interest income, non-interest income, and loans and deposits [1][9]. Financial Performance - Net interest income (NII) rose by 7.3% year-over-year to INR 195.5 billion ($2.34 billion), with a net interest margin of 4.36%, down 42 basis points [2]. - Non-interest income increased by 23.3% year-over-year to INR 63.9 billion ($765 million), while fee income grew by 13.4% to INR 54.9 billion ($658 million) [2]. - Operating expenses totaled INR 105.3 billion ($1.26 billion), marking a 10.6% increase year-over-year [3]. Loans and Deposits - Total advances as of June 30, 2024, reached INR 12,231.5 billion ($147 billion), up 15.7% year-over-year, primarily driven by business banking and SME loans [4]. - Total deposits grew by 15.1% year-over-year to INR 14,261.5 billion ($171 billion) [5]. Credit Quality - Provisions (excluding tax) increased by 3.1% to INR 13.3 billion ($159 million), with total contingency provisions at INR 131 billion ($1.57 billion) [7]. - The net non-performing assets (NPA) ratio improved to 0.43%, down from 0.48% in the prior-year period, with recoveries and upgrades of NPAs at INR 32.92 billion ($395 million) [13]. Capital Adequacy - As of June 30, 2024, ICICI Bank's total capital adequacy ratio was 16.41%, and Tier-1 capital adequacy was 15.71%, both exceeding minimum requirements set by the Reserve Bank of India [8].