ICICI Bank's Q3 Earnings Increase Y/Y as NII & Fee Income Rise

Core Viewpoint - ICICI Bank Ltd. reported a net income of INR 117.9 billion ($1.4 billion) for Q3 FY2025, reflecting a 14.8$2.38 billion), with a net interest margin of 4.25%, down 18 basis points [3]. - Non-interest income increased to INR 67 billion ($782 million), marking a 12.1$722 million) [3]. - Operating expenses totaled INR 105.6 billion ($1.23 billion), up 5$153.51 billion), a sequential increase of 2.9%, primarily driven by business banking loans and domestic corporate loans [5]. - Total deposits grew by 1.5% sequentially to INR 15,203.1 billion ($177.56 billion) [5]. Credit Quality - The net non-performing assets (NPA) ratio improved to 0.42$396 million) [6]. - There were net additions of INR 26.93 billion ($315 million) to gross NPA, with gross NPA additions at INR 60.85 billion ($711 million) and write-offs of INR 20.1 billion ($235 million) [6]. Provisions and Capital Ratios - Provisions (excluding tax) increased significantly to INR 37.9 billion ($442.9 million), with total contingency provisions at INR 131 billion ($1.53 billion) [7]. - ICICI Bank's total capital adequacy ratio was 14.71% and Tier-1 capital adequacy was 14.04% as of December 31, 2024, both exceeding minimum requirements [8]. Overall Assessment - The quarterly performance of ICICI Bank was strong, supported by increased consumer loan demand, improved deposit balances, and growth in NII and non-interest income, although elevated expenses and asset quality concerns pose challenges [9].