{"id":135083,"date":"2022-10-24T06:39:41","date_gmt":"2022-10-24T10:39:41","guid":{"rendered":"https:\/\/44.250.171.167\/?p=135083"},"modified":"2023-04-25T08:30:40","modified_gmt":"2023-04-25T12:30:40","slug":"the-story-behind-icici-bank-ltd-s-q2fy23-quarterly-results","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/the-story-behind-icici-bank-ltd-s-q2fy23-quarterly-results\/","title":{"rendered":"The Story Behind ICICI Bank Ltd.’s Q2FY23 Quarterly Results"},"content":{"rendered":"\n
Financial Results:<\/strong><\/h6>\n\n\n\n

ICICI Bank Ltd.<\/a> has expanded its loan portfolio by 22.7% YoY. This increase in total advances have contributed to the increased operating profit.<\/p>\n\n\n\n

It is evident that part of the increase in profitability stems from the reduction of Provisions & Contingencies amount by 39.4%. That would explain why the YoY growth for Core Operating Profit is 23.6% whereas the YoY growth for Profit After Tax is 37.1%. <\/p>\n\n\n\n

\u20b9 Cr.<\/strong><\/td>Q2FY23<\/strong><\/td>Q2FY22<\/strong><\/td>YoY%<\/strong><\/td><\/tr>
Net interest income<\/td>14,787<\/td>11,690<\/td>26.5%<\/td><\/tr>
Core operating income<\/td>19,926<\/td>16,090<\/td>23.8%<\/td><\/tr>
Operating expenses<\/td>8,161<\/td>6,572<\/td>24.2%<\/td><\/tr>
Core operating profit<\/strong><\/td>11,765<\/strong><\/td>9,518<\/strong><\/td>23.6%<\/strong><\/td><\/tr>
Net provisions<\/strong><\/td>1,644<\/strong><\/td>2,714<\/strong><\/td>(39.4%)<\/strong><\/td><\/tr>
Profit after tax<\/strong><\/td>7,558<\/strong><\/td>5,511<\/strong><\/td>37.1%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Key Ratios:<\/strong><\/h6>\n\n\n\n

Net Interest Margin has increased on a YoY basis. That is supported by the fact that the return on average assets has also seen an increase. This showcases the reasoning behind the bank\u2019s increased profitability. <\/p>\n\n\n\n

However, the Cost of Deposits have seen an increase despite the fact that share of CASA Ratio has increased. Along with that, there seems to be a slight increase in the Cost to Income Ratio of the bank.<\/p>\n\n\n\n

Percent (%)<\/strong><\/td>Q2FY23<\/strong><\/td>Q2FY22<\/strong><\/td><\/tr>
Net interest margin<\/strong><\/td>4.31<\/strong><\/td>4<\/strong><\/td><\/tr>
Cost of deposits<\/strong><\/td>3.55<\/strong><\/td>3.53<\/strong><\/td><\/tr>
Cost-to-income<\/strong><\/td>41.1<\/strong><\/td>39.9<\/strong><\/td><\/tr>
Return on average assets<\/strong><\/td>2.06<\/strong><\/td>1.79<\/strong><\/td><\/tr>
Standalone return on equity<\/td>16.6<\/td>14.1<\/td><\/tr>
Book value (\u20b9)<\/td>261.9<\/td>226.1<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Growth in Loan Portfolio:<\/strong><\/h6>\n\n\n\n
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