ICICI Bank Q4 Result Preview: PAT likely to rise nearly 18% YoY, NII growth seen at 4-8%

NII, which is the difference between interest earned and interest expended, is likely to grow anywhere between 4-8%, as per four different estimates of various brokerages.

Key Monitorables for investors in the earnings card include NIM outlook, comments on growth in the unsecured book.

In the preceding third quarter, the lender reported 24% YoY growth in its PAT to Rs 10,272 crore, while NII increased by 13% YoY to Rs 18,678 crore.

Here's what analysts expect from ICICI Bank's Q4:

Motilal Oswal

Expect loan growth to remain healthy, led by Retail and SME segments. Expect credit costs to moderate; adequate contingency buffers to add comfort. Potential reversal in AIF provisions to aid credit cost improvement. Margin and deposit traction to be the key monitorable.

Nuvama

We expect NII to grow 2% quarter-on-quarter with loan growth of 4% quarter-on-quarter. We expect NIMs to decline by 7 bps quarter-on-quarter.

Axis Securities

Advances growth is expected to be healthy at 17% YoY, led by the Retail and SME segment; Deposit growth is expected to improve sequentially. Quantum of margin compression is likely to be lower quarter-on-quarter. Healthy fee income and largely stable cost ratios to support PPOP growth. Reversal of AIF-related provisions to keep credit costs lower quarter-on-quarter; no challenges on asset quality.

Elara Capital

We expect yet another strong quarter, with positive traction across most key operating variables. We see lower loan growth but better NIM, which would support better NII. We would monitor core PPoP traction (likely in the single digits). Meanwhile curtailed credit cost and reversal of AIF exposures (already provided) may help deliver strong earnings traction.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)