IBN's Q4 Earnings Increase Y/Y as NII & Fee Income Rise, Provisions Up

Core Insights - ICICI Bank Ltd. reported a net income of INR126.3 billion ($1.5 billion) for Q4 FY2025, marking an 18$2.5 billion), with a net interest margin of 4.41%, up 1 basis point [2]. - Non-interest income increased by 18.4% to INR70.2 billion ($821 million), while fee income grew 16$738 million) [2]. - Operating expenses totaled INR107.9 billion ($1.26 billion), reflecting an 11.1$157 billion), up 1.2% sequentially, primarily driven by business banking loans [4]. - Total deposits grew 5.9% sequentially to INR16,103.5 billion ($188.4 billion) [4]. Credit Quality - The net non-performing assets (NPA) ratio improved to 0.39$447 million) [5]. - There were net additions of INR13.25 billion ($155 million) to gross NPA, with gross NPA additions totaling INR51.42 billion ($602 million) and write-offs of INR21.18 billion ($248 million) [6]. Provisions and Capital Ratios - Provisions (excluding tax) increased by 24.1$104 million), with total contingency provisions at INR131 billion ($1.5 billion) [6]. - ICICI Bank's total capital adequacy ratio was 16.55%, and Tier-1 capital adequacy was 15.94% as of March 31, 2025, both exceeding minimum requirements [7]. Market Outlook - Increased consumer loan demand, improved deposit balances, and growth in NII and non-interest income are expected to support ICICI Bank's financials, although elevated expenses and weak asset quality present near-term challenges [8].