ICICI Bank Ltd.’s IBN profit after tax for first-quarter fiscal 2027 (ended June 30) was INR148.05 billion ($1.56 billion), up 16% from the prior-year quarter.
Results were aided by growth in net interest income (NII) and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses hurt the results to some extent.
IBN’s NII & Fee Income Improve, Expenses Rise
NII grew 12.7% year over year to INR243.84 billion ($2.58 billion). The net interest margin was 4.36%, up 2 basis points.
Non-interest income (excluding treasury) was INR84.25 billion ($890.43 million), growing 16% year over year. Fee income increased 23.5% to INR72.86 billion ($770.05 million).
In the reported quarter, IBN recorded treasury income of INR1.51 billion ($15.96 million), down 87.8% from the prior-year quarter.
Operating expenses were INR125.74 billion ($1.33 billion), up 10.4% year over year.
ICICI Bank’s Loans & Deposits Increase
As of June 30, 2026, ICICI Bank’s total advances were INR16,312.60 billion ($172.34 billion), up 5% sequentially. Growth was driven by a rise in retail loans, rural loans, business banking loans, and domestic corporate and other loans.
Total deposits were INR18,335.86 billion ($193.71 billion), up 2.2% from the previous quarter.
IBN’s Credit Quality Improves
As of June 30, 2026, the net non-performing assets (NPA) ratio was 0.35%, which declined from 0.41% as of June 30, 2025. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR28.45 billion ($300.69 million) in the reported quarter.
In the reported quarter, there were net additions of INR27.07 billion ($286.10 million) to gross NPA. Gross NPA additions were INR55.52 billion ($586.79 million), while gross NPA written off was INR16.73 billion ($176.82 million).
Provisions (excluding provision for tax) were INR12.60 billion ($133.17 million), down 30.6% from the prior-year quarter.
Capital Ratios Strong for ICICI Bank
In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.84%. The Common Equity Tier 1 ratio was 16.19% as of June 30, 2026.
Our Take on IBN
Mounting expenses due to ICICI Bank’s initiatives to digitize banking operations are expected to weigh on profitability in the coming quarters. Additionally, weak credit quality remains a near-term headwind. However, robust loan demand, efforts to digitize operations for bolstering fee income and decent economic growth are expected to offer some support.
ICICI Bank Limited Price, Consensus and EPS Surprise
ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited Quote
ICICI Bank currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Foreign Banks
Barclays BCS is scheduled to announce quarterly results on July 28.
The consensus estimate for BCS’ quarterly earnings has been unchanged at 89 cents per share over the past week. The figure implies an increase of 43.6% from the prior-year quarter’s actual.
UBS Group AG UBS is scheduled to report quarterly results on July 31.
The Zacks Consensus Estimate for UBS’ quarterly earnings has been unchanged at 90 cents per share over the past seven days. The figure implies a 25% rise from the prior-year quarter’s reported number.
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