ICICI Bank Q4 results review: Motilal Oswal Securities said ICICI Securities’ Q4 results were driven by healthy NII and controlled opex and provisions backed by healthy asset quality.
ICICI Bank Q4 earnings: While the momentum in balance sheet growth is expected to remain strong, the bank has guided that the NIM will remain under pressure in the near term.
ICICI Bank price targets: ICICI Bank’s Q4 profit met analyst estimates but its margin came in higher than expectations. Credit cost fell while asset quality improved, as a few analysts upped their target prices on the stock post quarterly earnings. ICICI Bank is less vulnerable to regulatory lapses than peers, said analysts as they upped their earnings and price estimates for the private lender post Q4 results.
Nuvama said ICICI Bank’s loan growth was a miss by 1 per cent but the results were robust since core net interest margin (NIM) was flat sequentially against an expected decline. Opex moderated while specific credit cost held low at 28 basis points, it said while revising its FY25E and FY26 EPS estimates by 5-6 per cent.
“This along with a rollover in base pushes up the target price to Rs 1,295 from Rs 1,200). ICICI Bank remains the most consistent in delivering core earnings and granular growth. With an early-mover advantage in leveraging technology for growth and risk management, we view ICICI Bank as less vulnerable to regulatory lapses than peers, not to mention the moderation in opex much ahead of peers,” it said.
CLSA has upped its target on the stock to Rs 1,350. Nomura India finds the stock worth Rs 1,335. JPMorgan is overweight on ICICI Bank with a target of Rs 1,300 while Bernstein sees the banking share at Rs 1,150.
“We remain positive on ICICI Bank given its healthy growth outlook and earnings trajectory with return ratios expected to remain healthy. While the momentum in balance sheet growth is expected to remain strong, the bank has guided that the NIM will remain under pressure in the near term. We expect earnings to clock a CAGR of 13.2% over FY24-FY26E,” said Nirmal Bang.
This brokerage has upped its target on ICICI Bank to Rs 1,315 from Rs 1,264.
Motilal Oswal Securities said ICICI Securities’ Q4 results were driven by healthy NII and controlled opex and provisions backed by healthy asset quality.
“The stable mix of a high-yielding portfolio (Retail/Business Banking) and continued traction in BB, SME, and secured retail drove broad-based growth, which helped to retain healthy business diversification. Although the pace of NIM contraction has decelerated (3bp QoQ), persistent funding cost pressure may keep margins low,” it said.
This brokerage has upped its EPS estimates by 2 per cent for FY26, with little change to its FY25 outlook. It reiterated ‘BUY’ with a revised SoTP-based target price of Rs 1,300 (against Rs 1,250 earlier).
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