ICICI Bank Q2 FY25 preview: Net profit expected under 11%, NII to be around 11% YoY

ICICI Bank Q2 FY25 results: Private lender ICICI Bank is anticipated to show moderate growth in net profit during the second quarter of the fiscal year 2025 due to sluggish interest income and loan expansion. Analysts predict that the quarter's net profit will fall within the range of Rs 10,930 crore to Rs 11,437 crore, with the net interest income expected to rise by 8%- 11% to reach figures ranging from Rs 19,804 crore to Rs 20,292 crore.

Industry experts forecast that ICICI Bank's deposit growth will align with credit growth, with Motilal Oswal analysts projecting a 14.6% year-on-year increase in deposits to reach Rs 14.8 lakh crore in Q2FY25. Similarly, loans are expected to rise by 14.6% year-on-year to Rs 12.7 lakh crore in the same period.

According to brokerages, the private lender is expected to see a slight annual moderation in margins with a negative bias, while remaining stable on a sequential basis. In the second quarter of FY25, Net Interest Margins (NIMs) are projected to decrease to 4.4 percent from 4.5 percent in the same period of FY24.

ICICI Bank's gross non-performing assets (GNPA) are anticipated to decrease to 2.3% in Q2FY25 from 2.5% in the previous year. At the same time, net non-performing assets (NPA) are expected to experience a slight increase to 0.5% in Q2FY25 from 0.4 percent in Q2FY24.

JM Financial predicts that the Net Interest Income (NII) is expected to reach Rs 20,292 crore, with a potential increase of 10.8% Year-on-Year (YoY) and 3.8% Quarter-on-Quarter (QoQ). The net profit for the current reporting quarter is projected to rise by 11.5% YoY and 3.4% QoQ, reaching Rs 11,437 crore.

The Pre-Provision Operating Profit (PPoP) is anticipated to be at approximately Rs 16,970 crore, marking a 19.3% YoY growth and 5.9% QoQ growth.

Sharekhan is forecasting a 9% year-over-year (YoY) and 2.1% quarter-over-quarter (QoQ) growth in Net Interest Income (NII) to reach Rs 19,957 crore. Profit After Tax (PAT) is expected to be Rs 10,978 crore, showing a 7% increase YoY and a 0.7% decrease QoQ.

Pre-Provision Operating Profit (PPoP) is anticipated to be Rs 15,996 crore, reflecting a YoY growth of 12.4% with a minor 0.2% decline QoQ.

Loan advances are expected to increase by 14% YoY, supported by growth across all segments, while Net Interest Margins (NIMs) are projected to decrease slightly on a QoQ basis.

Q1 FY25 result

In the previous quarter ending in June, standalone profit after tax grew by 14.6% to Rs 11,059 crore compared to the same period the previous year. The bank's NII also saw an increase of 7.3% to Rs 19,553 crore compared to the previous year.

The Net Interest Margin (NIM) decreased to 4.36% in Q1FY25, down from 4.78% in Q1FY24 and 4.4% in Q4FY24.

Regarding asset quality, ICICI Bank's gross non-performing assets (NPA) slightly declined to 2.15% at Rs 28,718.6 crore by the end of Q1FY25.