ICICI Bank Q2-2024 results: Key metrics showcase robust growth

In the recently released financial results for the quarter ending September 30, 2023 (Q2-2024), ICICI Bank exhibited robust growth across key financial metrics. Notably, the bank’s profit before tax, excluding treasury, surged by a remarkable 35.7% year-on-year, reaching ₹13,731 crore (US$ 1.6 billion). Alongside, the bank also reported substantial increases in core operating profit, net interest income, and non-interest income. The financial performance underscores ICICI Bank’s momentum in consolidating its market position, further augmented by substantial digital growth and advances in key operational areas.

Key Financial Outcomes:

• Core Growth: Core operating profit witnessed a 21.7% YoY growth, reaching ₹ 14,314 crore (US$ 1.7 billion) in Q2-2024. Excluding dividend income from subsidiaries, this figure grew by 22.9% YoY.
• Net Interest Income: NII surged by 23.8% YoY, standing at ₹ 18,308 crore (US$ 2.2 billion), with the net interest margin increasing to 4.53% in Q2-2024 from 4.31% in Q2-2023.
• Non-Interest Income: A growth of 14% YoY was seen in non-interest income, amounting to ₹ 5,861 crore (US$ 706 million).
• Fee Income: It grew by 16.2% YoY, standing at ₹ 5,204 crore (US$ 627 million). Most of these fees, about 78%, came from the retail, rural, business banking, and SME segments.

ICICI Bank consolidates position with strong Q2-2024 financial outcomes. Photo courtesy of Sumedh/Wikipedia.org.

Operational Highlights:

• Digital and Payments Platforms: The bank witnessed over one crore activations of iMobile Pay by non-ICICI Bank account holders. The bank’s Merchant STACK platform has provided significant digital solutions, with UPI transactions growing by 69.5% YoY. Additionally, ICICI holds about a 30% market share in FASTag electronic toll collections.
• Loan Portfolio: The bank’s net domestic advances grew by 19.3% YoY with the retail loan portfolio increasing by 21.4% YoY, which constituted 54.3% of the total loan portfolio.
• Deposits: Total period-end deposits increased by 18.8% YoY, reaching ₹ 12,94,742 crore (US$ 155.9 billion). The average current account deposits grew by 14.0% YoY.
• Branch Network Expansion: With an addition of 174 branches in Q2-2024, the bank’s physical presence has expanded to 6,248 branches and 16,927 ATMs.

Asset Quality Metrics:

• Gross NPA: The gross NPA ratio improved, declining to 2.48% in September 2023 from 2.76% in June 2023.
• Net NPA: The net NPA ratio witnessed a decline, registering at 0.43% in September 2023.

Consolidated Outcomes:

• Profit Growth: The consolidated profit after tax increased by 36.1% YoY to ₹ 10,896 crore (US$ 1.3 billion). Furthermore, the bank’s total assets grew by 15.9% YoY to ₹ 21,24,850 crore (US$ 255.9 billion).
• Subsidiary Performance: ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company both exhibited growth, with GDPI of the latter growing by 17.4% YoY.