ICICI Bank Q1 results: Profit rises 36% to Rs 2,599 cr, misses Street estimates; bank makes Rs 5,550 cr in Covid-related provisions

NEW DELHI: ICICI Bank on Saturday reported a 36 per cent year-on-year (YoY) rise in net profit at Rs 2,599 crore for June quarter compared with Rs 1,908 crore in the same quarter last year.

The profit fell well short of Rs 3,300 crore profit figure analysts projected in an ET NOW poll.

The profit growth for the quarter was aided by one-off stake sales in ICICI Lombard and ICICI Prudential Life.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 20 per cent to Rs 9,280 crore in June quarter against Rs 7,737 crore in the year-ago quarter.

Net interest margin (NIM) for the quarter came in at 3.69 per cent, which was higher than 3.61 per cent in the same quarter last year, but lower than the 3.87 per cent margin the bank reported in the March quarter.

During the quarter, the private lender made Rs 5,550 crore in additional Covid-19 related provisions. This, the bank said, was made on a prudent basis with the objective of completely cushioning the balance sheet from the impact of Covid-19.

Net non-performing asset (NPA) ratio fell to 1.23 per cent in June quarter from 1.41 per cent in March quarter. Provision coverage ratio, excluding technical write-offs, rose to 78.6 per cent as of June 30 from 75.7 per cent as of March 31.

Provisions, excluding Covid-19 related provisions and provision for tax, plunged 42 per cent year-on-year to Rs 2,044 crore from Rs 3,496 crore in the year-ago quarter.

The lender's non-interest income fell to Rs 2,380 crore in the June quarter from Rs 3,247 crore YoY.

Fee income declined to Rs 2,104 crore from Rs 3,039 crore YoY, reflecting lower business volumes and customer activity in view of the lockdown.

Retail fees accounted for 70 per cent of total fees.

Treasury income, meanwhile soared to Rs 3,763 crore from Rs 179 crore as the bank sold 4 per cent stake in ICICI Lombard General Insurance and 1.5 per cent shareholding in ICICI Prudential Life Insurance (ICICI Life).

The aggregate gains from these transactions were Rs 3,036 crore.

Domestic advances grew 10 per cent. Retail loan portfolio saw a growth of 11 per cent and accounted for 54.4 per cent of the total portfolio as of June 30, ICICI Bank said.

Growth in the domestic corporate portfolio was about 8 per cent year-on-year.

Total advances increased by 7 per cent YoY to Rs 6,31,215 crore from Rs 5,92,415 crore in the comparable period of last year.

Total deposits rose 21 per cent YoY to Rs 8,01,622 crore at June 30, 2020. Average current account deposits increased by 20 per cent YoY.