Earnings Boost: ICICI Bank Receives Bullish Ratings from Brokerages After Q4 Results

Following the release of its Q4 and full fiscal year FY24 financial results, ICICI Bank, the second largest private sector bank in India, has garnered positive evaluations from analysts. The bank’s net earnings in Q4FY24 showed a significant 17% YoY increase, driven by robust growth in net interest income (NII), controlled operating expenses, and managed credit costs.

The bank’s impressive financial performance translated to an annualized Return on Assets (RoA) of 2.4% and a Return on Equity (RoE) of 18.5%. Notably, the bank’s NIM grew by 8% YoY, supported by a 16.2% YoY increase in loans, though NIMs saw a slight 3 basis points decline QoQ to 4.40%.

During Q4, ICICI Bank reported a 11% YoY increase in other income, with a slight 7% QoQ decrease primarily due to strong growth in core fees offset by modest treasury gains. The bank’s advances showed robust growth, with a 16.2% YoY expansion driven by retail, BB, and SME loans, marking healthy growth in segments like housing, rural, and unsecured credit.

Several brokerages have revised their ratings and price targets for ICICI Bank post its Q4 results. JM Financial maintains a ‘Buy’ rating with a target price of ₹1,330, while Systematix has raised its target to ₹1,275 and continues to affirm a ‘Buy’ recommendation. Antique Stock Broking maintains a ‘buy’ rating and has set a revised price target of ₹1,300 per share.

ICICI Bank’s consistent performance and strong asset quality have contributed to the positive outlook. Brokerages like CLSA, JP Morgan, and Nomura have upheld their ratings on the stock. CLSA maintains a ‘buy’ stance with a target price of ₹1,350, while JP Morgan remains ‘overweight’ with a target price of ₹1,300. Nomura, the Japanese brokerage firm, also continues to endorse the stock with a targeted price of ₹1,335 per share.