ICICI Bank's Q3FY18 net profit declines by 32% yoy; gross NPA at 7.8%

Largest private lender ICICI Bank’s performance during December 2017 (Q3FY18) quarter was weak with bottom-line witnessing decline.

ICICI Bank standalone net profit came in at Rs 1,650.24 crore, declining by 32.42% from Rs 2,441.82 crore in the corresponding period of previous year.

Similarly, Q3FY18 net profit plunged by 19.82% from net profit of Rs 2,058.19 crore in preceding quarter.

Net Interest Income (NII) was at Rs 5,705.27 crore in this quarter, which was up by 6.37% from Rs 5,363.35 crore in Q3FY17, but mostly muted from Rs 5,709.07 crore in Q2FY18.

Domestic net interest margin was 3.53% and the overall net interest margin was 3.14% in Q3FY18.

Analysts at Zee Business expected the bank’s NII at Rs 5,864 crore, while net profit at Rs 1,248.50 crore in Q3FY18.

Provisions of ICICI Bank stood at Rs 3,569.56 crore - which increased by 31.59% compared to Rs 2,712.70 crore in Q3FY17, but decreased by 20.73% from Rs 4,502.93 crore in Q2FY18.

There was 160 basis points increase in provisioning coverage ratio to 60.9% (including cumulative prudential/ technical write-offs), further strengthening the balance sheet

At the same time, gross NPAs of ICICI Bank stood at Rs 46,038.70 crore - rising by 20.88% versus Rs 38,084.97 crore in Q3FY17 and up by 3.48% as against Rs 44,488.54 crore in Q2FY18.

In percentage terms, gross NPA was at 7.82% in Q3FY18 versus 7.20% of Q3FY17 and 7.87% in Q2FY18.

During Q3FY18, recoveries and upgrades of Rs 1,108 crore ($ 173 million) from non-performing loans in Q3-2018 compared to Rs 1,029 crore ($ 161 million) in Q2-2018 and Rs  625 crore ($ 98 million) in Q3-2017.

Core operating profit, excluding treasury income and exchange rate gains relating to overseas operations, increased by 10% year-on-year to Rs 4,992 crore ($ 782 million) this quarter, compared to Rs  4,549 crore ($ 712 million) in Q3FY17.

Here are key highlights of ICICI Bank’s performance during Q3FY18.

• Current and savings account (CASA) ratio at 50.4% at December 31, 2017.
• YoY growth in domestic advances was 16% at December 31, 2017 compared to growth of 13% at September 30, 2017.
• Bank has continued to leverage its strong retail franchise, resulting in a yoy growth of 22% in the retail portfolio during Q3 versus 19% growth in Q2FY18.
• Retail portfolio constituted about 54% of the loan portfolio of the Bank.
• Total advances increased by 10% yoy to Rs 505,387 crore ($ 79.1 billion) at Q3FY18,  from Rs  457,469 crore ($ 71.6 billion) at Q3FY17 compared to growth of 6% yoy at Q2FY17.
• CASA deposits increased by 12% yoy to Rs  260,635 crore ($ 40.8 billion).
• Bank’s CASA ratio was 50.4% at Q3  compared to 49.5% at Q2FY18 and 49.9% at Q3FY17.
• Total deposits increased by 11% year-on-year to Rs  517,403 crore ($ 81.0 billion).
• Debit and credit card transactions continued to grow at a healthy rate of about 40% year-on-year in 9M-2018.
• Over 8.3 million Unified Payment Interface (UPI) Virtual Payment Addresses have been created using the Bank’s and partners’ platforms till December 31, 2017.