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What were the key takeaways from ICICI Bank's earnings call?

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- **Revenue Growth**: PBT (ex treasury) up 9.1% YoY to INR 161.64 billion, driven by 10.6% YoY loan growth and 9.1% YoY deposit expansion.
- **Credit Quality Improvement**: Net NPA ratio at 0.39%, lowest in 3 quarters; gross NPA additions down 17% YoY.
- **Margin Stability**: NIM stable at 4.30% despite deposit repricing, supported by lower funding costs.
- **Capital Strength**: CET1 ratio of 16.35% provides buffer for growth while maintaining regulatory compliance.
- **Strategic Focus**: Business banking loans +24.8% YoY; CASA growth driven by digital channels and ICICI Direct integration.


**【CEO Summary Section】**
- Profit before tax (PBT), excluding treasury, grew 9.1% YoY to INR 161.64 billion, driven by strong loan growth and cost control.
- Average deposits rose 9.1% YoY, with CASA deposits up 9.7% YoY, reflecting improved customer retention.
- Domestic loan portfolio expanded 10.6% YoY, with retail loans growing 6.6% YoY and business banking loans surging 24.8% YoY.
- Net NPA ratio improved to 0.39%, with provisions at 5.4% of core operating profit, reflecting prudent risk management.
- CET1 capital ratio remained strong at 16.35%, supporting sustainable growth.

**【CFO Financial Commentary】**
- **Loan Growth by Segment**: 
  - Retail mortgage loans +9.9% YoY; auto loans flat YoY; personal loans -0.7% YoY due to cautious disbursement.
  - Business banking loans +24.8% YoY; corporate loans +3.5% YoY.
- **Credit Quality**: 
  - Gross NPA additions down 17% YoY to INR 50.34 billion; recoveries up 13% YoY to INR 36.48 billion.
  - Net additions to gross NPAs at INR 13.86 billion, lowest in 3 quarters.
- **Profitability**: 
  - Net interest margin (NIM) stable at 4.30%, benefiting from lower deposit rates and repricing.
  - Non-interest income +13.2% YoY to INR 73.56 billion, driven by fee income (+10.1% YoY).
- **Cost Management**: 
  - Operating expenses +12.4% YoY due to marketing and branch expansion (724 new branches in H1).
  - Technology expenses accounted for 11% of operating expenses.
- **Subsidiary Performance**: 
  - ICICI Life PBT +26% YoY; ICICI General PBT +18% YoY; ICICI Securities PBT -19% YoY.

**【Q&A Highlights】**
- **Growth Outlook**: 
  - Sequential loan growth accelerated to 3.3% QoQ (vs 1.5% QoQ prior quarter), driven by retail and business banking.
  - Management cautious on corporate loan growth due to strong balance sheets among borrowers.
- **Margins**: 
  - NIM expected to remain range-bound at 4.30% due to deposit repricing and CRR cuts offsetting KCC seasonality.
  - Cost of deposits down 0.23% QoQ to 4.64%.
- **CASA Strategy**: 
  - CASA growth fueled by digital platforms, business banking, and ICICI Direct integration.
  - LDR at 87% seen as sustainable, with focus on term deposit growth to match loan expansion.
- **Capital Utilization**: 
  - CET1 ratio of 16.35% provides flexibility for growth while maintaining capital adequacy.
  - No immediate plans to adjust dividend payout ratio, prioritizing reinvestment in growth initiatives.
  - ECL implementation could reduce provisioning requirements, but impact depends on final RBI guidelines.


ICICI Bank Limited (IBN) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

IBN

IBN fundamentals

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