ICICI Bank up over 1% as Q3 profit exceeds estimates; Credit Suisse maintains 'outperform'

ICICI Bank Q3 Results: Net interest income grows 23% YoY to Rs 12,236 crore; net profit at Rs 6,193.71 crore, up 25% QoQ

In its quarterly earnings report, the bank said its net interest margin was at 3.96 percent in the latest quarter, down slightly from 4 percent in the September quarter.

In the report, the bank said its business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ, which offers various services such as instant overdraft facility, payment of GST, foreign exchange deal booking, business loans based on revenues reported in GST returns, automatic bank reconciliations and inward and outward remittances.

Credit Suisse maintained an 'outperform' rating on the bank’s stock with a target price of Rs 930. The brokerage raised its 2022E earnings per share forecast for ICICI Bank by 4.4 percent on lower credit costs and better fee growth. ICICI Bank remains the brokerage's preferred pick.

JP Morgan has kept its 'overweight' rating on the stock with a target price of Rs 930. The lender's Q3 pre-provision operating profit (PPoP) was strong, according to JPMorgan. The brokerage has raised its FY23 and FY24 earnings per share estimates for ICICI Bank by seven percent to factor in lower credit costs.

Among subsidiaries, ICICI Lombard General Insurance Company posted a profit of Rs 318 crore versus Rs 314 crore, while ICICI Prudential AMC’s profit dropped to Rs 334 crore from Rs 358 crore in the year-ago quarter. ICICI Securities posted a profit of Rs 380 crore in the December quarter, up 42 percent from Rs 267 crore in Q3-2021.ICICI Prudential Life Insurance's profit was at Rs 311 crore against Rs 306 crore a year ago.