ICICI Bank's second quarter results: Net profit up 35.8% year over year to $10,261 billion; NII up 23.8% to $18,308 billion

 ICICI Bank's second quarter results: Net profit up 35.8% year over year to $10,261 billion; NII up 23.8% to $18,308 billion

Results for ICICI Bank's second quarter: The bank recorded a 35.8% YoY increase in standalone net profit for the September quarter of FY24, coming in at $10,261, up from $7557.84 crore in the same quarter a year earlier.

On Friday, the BSE saw the bank shares finish 0.28% down at Rs. 932.45 a share.

LIVE Results for ICICI Bank's Second Quarter

In comparison to the same quarter a year before, ICIC Bank's net interest income (NII) climbed by 23.8% YoY to 18,308 crore from 14,787 crore. In Q2FY24, the bank's net interest margin was 4.53%.

In Q2-2024, fees from retail, rural, business banking, and SME clients made up around 78% of total fees. The overall capital adequacy ratio for the private lender was 17.59%, which included earnings for the first half of FY23–24. At September 30, 2023, the Bank's Tier-1 capital adequacy ratio was 16.86% on a standalone basis.

The September quarter performance of ICICI Bank surpassed analysts' predictions. But the private lenders kept moving in the direction of their expected development trajectory.

The re-pricing of liabilities and the influx of SA deposits into TD would keep financing costs high and put pressure on margins. Margin had bottomed out in Q4FY23 at around 4.9%. In light of the fact that 70% of the book is floating, the majority of the asset re-pricing has already taken place, and loan rates may continue to stall, warned brokerage company Motilal Oswal Financial Services prior to the release of ICICI Bank's Q2 results.

Performance of the main subsidiary of ICICI 

ICICI Prudential Life Insurance Company's (ICICI Life) earnings after taxes climbed by 22.6% year over year to $244 crore in Q2-2024 from $199 crore in the prior quarter.

When compared to H1-2023, the Value of New Business (VNB) of ICICI Prudential Life Insurance Company (ICICI Life) fell by 7.1% year over year to $1,015 crore.  Another subsidiary, ICICI Lombard General Insurance Company (ICICI General), recorded a net profit after tax in the course of the period under review of Rs. 577 crore as opposed to Rs. 591 crore in Q2-2023.

To reach 6,086 crore, its Gross Direct Premium Income (GDPI) increased by 17.4% year over year. According to Ind AS, ICICI Prudential Asset Management Company's earnings after tax increased by 23.5% year over year to Rs501 crore in Q2-2024 from Rs406 crore in the same period last year.

In Q2 2024, ICICI Securities reported a profit after tax of 424 crore (US$ 51 million), up from 300 crore in Q2 2023.