ICICI Bank Ltd.’s IBN net income for the fourth quarter of fiscal 2025 (ended March 31) was INR126.3 billion ($1.5 billion), up 18% from the prior-year quarter.

The results were driven by a rise in net interest income (NII), non-interest income and growth in loans and deposits. However, higher operating expenses and provisions were the headwinds.

IBN’s NII & Fee Income Up, Expenses Rise

NII grew 11% year over year to INR211.9 billion ($2.5 billion). The net interest margin was 4.41%, up 1 basis point.

Non-interest income was INR70.2 billion ($821 million), up 18.4% year over year. Fee income increased 16% to INR63.1 billion ($738 million).

In the reported quarter, IBN recorded a treasury income of INR2.4 billion ($28 million) against a treasury loss of INR2.8 billion ($33 million) in the prior-year quarter.

Operating expenses totaled INR107.9 billion ($1.26 billion), up 11.1% year over year.

ICICI Bank’s Loans & Deposits Increase

As of March 31, 2025, ICICI Bank’s total advances were INR13,417.7 billion ($157 billion), up 1.2% sequentially. Growth was primarily driven by a solid rise in business banking loans.

Total deposits grew 5.9% sequentially to INR16,103.5 billion ($188.4 billion).

IBN’s Credit Quality: Mixed Bag

As of March 31, 2025, the net non-performing assets (NPA) ratio was 0.39%, which declined from 0.42% in the prior-year quarter. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR38.17 billion ($447 million) in the reported quarter.

In the fiscal fourth quarter, there were net additions of INR13.25 billion ($155 million) to gross NPA. Further, gross NPA additions were INR51.42 billion ($602 million), while gross NPA written-off was INR21.18 billion ($248 million).

Provisions (excluding provision for tax) increased 24.1% year over year to INR8.9 billion ($104 million). As of March 31, 2025, the bank held a total contingency provision of INR 131 billion ($1.5 billion).

Capital Ratios Strong for ICICI Bank

In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.55%. Tier-1 capital adequacy was 15.94% as of March 31, 2025. Both ratios were well above the minimum requirements.

Our Take on IBN

Increased consumer loan demand, improved deposit balances and growth in NII and non-interest income are anticipated to continue supporting ICICI Bank’s financials. However, elevated expenses and weak asset quality amid macroeconomic uncertainties are near-term challenges.

ICICI Bank Limited Price, Consensus and EPS SurpriseICICI Bank Limited Price, Consensus and EPS Surprise

ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited Quote

Story Continues

ICICI Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of IBN’s Global Peers

HSBC Holdings HSBC is scheduled to announce first-quarter 2025 numbers on April 29. (See the Zacks Earnings Calendar to stay ahead of market-making news.) 

The consensus estimate for HSBC’s quarterly earnings has remained unchanged at $1.60 over the past week. The figure implies a fall of 5.9% from the prior-year quarter.

Barclays BCS is slated to report first-quarter 2025 results on April 30. 

The Zacks Consensus Estimate for Barclays’ quarterly earnings has remained unchanged at 58 cents over the past week. The figure implies an increase of 11.5% from the prior-year quarter.

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