ICICI Bank Surges 3% After Strong Q1 Earnings Report

Shares of ICICI Bank surged close to 3% after the bank announced a 10% rise in consolidated net profit for the June quarter. The profit growth was primarily driven by a spike in treasury gains, although core income growth slowed. Non-interest income also saw a 23% increase.

Shares of ICICI Bank climbed nearly 3 percent on Monday morning trade after the company posted a nearly 10 percent increase in consolidated net profit for the June quarter.

The stock went up 2.67 percent to Rs 1,239.95 on the BSE, while at the NSE, it climbed 2.74 percent to Rs 1,240.35.

Treasury gains were a key factor, enabling ICICI Bank to report a nearly 10 percent increase in the consolidated net profit for the quarter, reaching Rs 11,696 crore on Saturday.

Despite a slowdown in core income growth for India’s second-largest private sector lender, treasury operations facilitated a 14.62 percent rise in post-tax profit, amounting to Rs 11,059 crore on a standalone basis.

The core net interest income (NII) growth for the quarter came in at a multi-quarter low of 7.3 percent to Rs 19,553 crore. The NII growth was restricted largely by a 0.40 percent decrease in the net interest margin to 4.36 percent compared to the same period last year and around 16 percent domestic loan growth.

Non-interest income excluding treasury operations grew by 23 percent to Rs 6,389 crore, while treasury gains alone more than doubled to Rs 613 crore, compared to Rs 252 crore from the year-ago period.

The gross non-performing assets ratio remained stable at 2.36 percent as of June 30, 2024.