Analysts polled by Bloomberg have estimated a profit of ₹6,402.5 crore for the fourth quarter. While JM Financial analysts predicted PAT of ₹6,314.3 crore up 43.4% yoy and 1.9% qoq. With that, ICICI Bank‘s earnings beat estimates.
Provisions and contingencies in the Q4FY22 drastically dropped to ₹1,068.95 crore compared to ₹2 883.47 crore in Q4 last year. Gross NPA stood at 3.60% in Q4FY22 versus 4.96% in Q4FY21 and 4.13% in Q3FY22.
Here are key highlights of the financial performance.
1. Other Income:
Non-interest income, excluding treasury income, increased by 11% year-on-year to ₹4,608 crore ($ 608 million) in Q4-2022 from ₹4,137 crore ($ 546 million) in Q4-2021.
Fee income grew by 14% year-on-year to ₹4,366 crore ($ 576 million) in Q4-2022 from ₹3,815 crore ($ 503 million) in Q4-2021. Fees from retail, rural, business banking and SME customers constituted about 77% of total fees in Q4-2022.
2. Credit Growth:
The retail loan portfolio, excluding rural loans, grew by 20% year-on-year and 6% sequentially and comprised 52.8% of the total loan portfolio on March 31, 2022. Including non-fund outstanding, the retail loan portfolio, was 43.8% of the total portfolio on March 31, 2022.
The business banking portfolio grew by 43% year-on-year and 10% sequentially on March 31, 2022. The SME business, comprising borrowers with a turnover of less than ₹250 crore ($ 33 million), grew by 34% year-on-year and 11% sequentially on March 31, 2022.
Growth in the domestic wholesale banking portfolio was 10% year-on-year on March 31, 2022. The domestic advances grew by 17% year-on-year and 6% sequentially on March 31, 2022.
Total advances increased by 17% year-on-year and 6% sequentially to ₹859,020 crore ($ 113.3 billion) at March 31, 2022.
3. Deposit growth:
Total deposits increased by 14% year-on-year and 5% sequentially to ₹1,064,572 crore ($ 140.5 billion) at March 31, 2022. Average current account deposits increased by 24% year-on-year in Q4-2022.
Average savings account deposits increased by 23% year-on-year in Q4-2022.
Total term deposits increased by 9% year-on-year to ₹546,135 crore ($ 72.1 billion) at March 31, 2022.
The Bank had a network of 5,418 branches and 13,626 ATMs at March 31, 2022.
4. Asset quality:
The net non-performing assets declined by 24% year-on-year and 5% sequentially to ₹6,961 crore ($ 918 million) at March 31, 2022. The net NPA ratio declined to 0.76% at March 31, 2022 from 0.85% at December 31, 2021 and 1.14% at March 31, 2021.
The net deletions from gross NPAs, excluding write-offs and sales, were ₹489 crore ($ 65 million) in Q4-2022 compared to ₹191 crore ($ 25 million) in Q3-2022.
Meanwhile, gross NPA additions were ₹4,204 crore ($ 555 million) in Q4-2022 compared to ₹4,018 crore ($ 530 million) in Q3-2022. Recoveries and upgrades of NPAs, excluding write-offs and sale increased to ₹4,693 crore ($ 619 million) in Q4-2022 from ₹4,209 crore ($ 555 million) in Q3-2022.
Gross NPAs written-off in Q4-2022 were at ₹2,644 crore ($ 349 million). The provision coverage ratio on NPAs was 79.2% at March 31, 2022.
5. Capital adequacy:
Total capital adequacy at March 31, 2022 was 19.16% and Tier-1 capital adequacy was 18.35% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.
6. Digital and payments platforms:
There have been 63 lakh activations of iMobile Payfrom non-ICICI Bank account holders as of end-March 2022. The value of transactions by non-ICICI Bank account holders in Q4-2022 was 4.9 times the value of transactions in Q3-2022.
Notably, the Bank’s supply chain platforms enable corporates to seamlessly manage their supply chain financing and payments, collection and reconciliation requirements of their dealers and vendors in a convenient and paperless manner. The value of transactions through these supply chain platforms in Q4-2022 was 2.7 times the value of transactions in Q4-2021.
Further, the value of the Bank’s merchant acquiring transactions through UPI in Q4- 2022 was 2.4 times the value of transactions in Q4-2021. The Bank is the market leader in electronic toll collections through FASTag. The Bank had a market share of about 33% by value in electronic toll collections through FASTag in Q4-2022, with a 27% year-on-year growth in collections.
Whereas the value of mobile banking transactions advanced by 30% year-on-year to ₹477,228 crore ($ 63.0 billion) in Q4-2022. Digital channels like internet, mobile banking, PoS and others accounted for over 90% of the savings account transactions in FY2022.
7. Consolidated results:
Consolidated profit after tax surged by 58% year-on-year to ₹7,719 crore ($ 1.0 billion) in Q4-2022 from ₹4,886 crore ($ 645 million) in Q4-2021.
For full year FY22, consolidated profit after tax increased by 37% year-on-year to ₹25,110 crore ($ 3.3 billion) from ₹18,384 crore ($ 2.4 billion) in FY2021.