Icici Bank (IBN) AI Stock Analysis

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Icici Bank

(NYSE:IBN)

77Outperform

Icici Bank demonstrates a solid overall performance driven by strong financial results and positive technical indicators. The financial performance stands out with impressive revenue growth and profitability, while technical analysis supports a bullish short-term outlook. Valuation appears reasonable, but caution is advised due to high momentum indicators suggesting overbought conditions.

Positive Factors

Financial Performance

Record quarterly profit with net profit ahead of expectations reflects strong financial performance.

Market Position

ICICI Bank is well-positioned with a strong deposit franchise and stable asset quality, providing a competitive edge.

Negative Factors

Asset Quality Risk

Key risks include potential deterioration in asset quality and weaker earnings due to slower loan growth and net interest margins.

Interest Margin

There was a softer headline net interest margin, attributed to a diminishing contribution from the high yield book impacting the bank's funding pressure.

Icici Bank (IBN) vs. S&P 500 (SPY)

Market Cap

$117.36B

Dividend Yield0.61%

Average Volume (3M)6.10M

Price to Earnings (P/E)19.9

Beta (1Y)0.39

Revenue Growth24.97%

EPS Growth13.74%

CountryUS

Employees187,765

SectorFinancial

Sector Strength77

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.67

Shares Outstanding3,561,472,000

10 Day Avg. Volume7,620,929

30 Day Avg. Volume6,096,022

Financial Highlights & Ratios

PEG Ratio1.45

Price to Book (P/B)N/A

Price to Sales (P/S)5.89

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.50

Price Target Upside5.88% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Icici Bank Business Overview & Revenue Model

Company DescriptionICICI Bank Limited, together with its subsidiaries, engages in the provision of various banking and financial services to retail and corporate customers in India and internationally. The company operates through Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, and Others segments. It accepts savings, salary, pension, current, trade, escrow, foreign currency, and vostro accounts, as well as time, fixed, recurring, and security deposits services. The company also provides home, car, two-wheeler, personal, gold, and commercial business loans, as well as loans against securities and other loans; business loans, including working capital finance, term loans, collateral free loans, loans without financials, finance for importers and exporters, and overdraft facilities, as well as loans for new entities and card swipes; and credit, debit, prepaid, travel, forex, and corporate cards. In addition, it offers pockets wallet; fixed income products; investment products, such as mutual funds, gold monetization schemes, initial public offerings, and other online investment services; and agri and rural business, farmer finance, tractor loans, and micro banking services. Further, the company provides portfolio management, trade, foreign exchange, locker, private and NRI banking, and cash management services; family wealth and demat accounts; commercial and investment banking, capital market, custodial, and institutional banking services; health, personal accident, fire, and motor insurance, as well as distributes general and life insurance products; and Internet, mobile, and phone banking services. Additionally, it offers securities investment, broking, trading, and underwriting services; and merchant banking, trusteeship, housing finance, pension fund management, asset management, investment advisory, points of presence, and private equity/venture capital fund management services. The company was founded in 1955 and is headquartered in Mumbai, India.

How the Company Makes MoneyICICI Bank generates revenue primarily through interest earned on various lending products, including personal loans, home loans, and corporate loans. The bank also earns income from fees and commissions on services like credit card transactions, asset management, and investment banking. Additionally, ICICI Bank derives revenue from its treasury operations and investments in government and corporate securities. The bank's earnings are also supported by strategic partnerships and collaborations with global financial institutions, enabling it to offer a broad spectrum of financial solutions to its clients.

Icici Bank Financial Statement Overview

Summary

Icici Bank exhibits a strong financial position with commendable revenue growth and profitability improvements. The balance sheet supports stability with prudent leverage management, while cash flow metrics indicate healthy cash generation and financial resilience. Continued focus on managing liabilities and maintaining cash flow strength will be crucial for sustaining long-term growth.

Income Statement

Very Positive

Icici Bank has demonstrated solid financial performance with consistent revenue growth and improving profitability. The gross profit and net profit margins have shown notable improvement, reflecting efficient cost management. The EBIT margin has also improved, indicating operational effectiveness. However, the absence of EBITDA data in recent years limits a comprehensive assessment of underlying earnings strength.

Balance Sheet

Positive

The balance sheet reflects a strong equity base with a healthy equity ratio, suggesting financial stability. The debt-to-equity ratio is moderate, indicating a balanced approach to leverage. Return on Equity (ROE) has improved, showcasing effective utilization of equity. Nonetheless, increasing total liabilities warrant cautious monitoring for future leverage implications.

Cash Flow

Very Positive

The cash flow statement indicates robust free cash flow growth, enhancing the company's financial flexibility. A strong operating cash flow to net income ratio suggests good cash generation from operations, despite fluctuations in operating cash flow in previous years. The free cash flow to net income ratio confirms efficient capital expenditure management.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
2.13T	1.43T	1.36T	1.16T	1.19T	1.05T
	Gross Profit
2.13T	2.36T	1.36T	1.16T	1.19T	1.05T
	EBIT
450.31B	1.07T	344.63B	257.84B	202.20B	110.50B
	EBITDA
-7.67B	623.70B	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
453.16B	442.56B	340.37B	251.10B	183.84B	95.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
495.94B	3.55T	764.89B	807.23B	1.08T	1.03T
	Total Assets
7.48T	23.64T	19.58T	17.53T	15.74T	13.77T
	Total Debt
1.84T	2.01T	1.89T	1.62T	1.44T	2.14T
	Net Debt
1.35T	108.69B	526.05B	-215.23B	-36.71B	859.99B
	Total Liabilities
6.69T	20.94T	17.37T	15.65T	14.07T	12.48T
	Stockholders Equity
764.30B	2.56T	2.14T	1.82T	1.58T	1.23T
Cash Flow		Free Cash Flow
0.00	1.54T	-62.39B	562.51B	1.36T	776.91B
	Operating Cash Flow
0.00	1.57T	-37.71B	581.11B	1.38T	795.65B
	Investing Cash Flow
0.00	-1.46T	-680.05B	-393.21B	-629.87B	-423.08B
	Financing Cash Flow
0.00	137.65B	247.91B	174.51B	-546.67B	29.92B

Icici Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price33.53

Price Trends

50DMA

29.84

Positive

100DMA

29.81

Positive

200DMA

29.56

Positive

Market Momentum

MACD

0.74

Negative

RSI

74.33

Negative

STOCH

90.61

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBN, the sentiment is Positive. The current price of 33.53 is above the 20-day moving average (MA) of 31.43, above the 50-day MA of 29.84, and above the 200-day MA of 29.56, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 74.33 is Negative, neither overbought nor oversold. The STOCH value of 90.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBN.

Icici Bank Risk Analysis

Icici Bank disclosed 63 risk factors in its most recent earnings report. Icici Bank reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Icici Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBN	77 Outperform	$117.36B	19.88	18.52%	0.61%	24.97%	13.74%
ITUB	76 Outperform	$56.84B	8.80	20.84%	6.13%	-7.01%	15.18%
LYG	76 Outperform	$55.99B	11.70	9.95%	3.87%	36.29%	-19.79%
HDB	73 Outperform	$170.88B	21.99	14.96%	0.82%	37.85%	0.54%
BBD	70 Outperform	$22.11B	7.36	10.44%	1.34%	-8.55%	13.58%
BSBR	70 Outperform	$17.47B	14.14	11.61%	4.66%	-3.94%	31.52%
Sector *	62 Neutral	$11.85B	9.13	8.11%	79.54%	12.80%	-5.24%

* Financial Sector Average

Performance Comparison

IBN

Icici Bank

33.53

7.61

29.36%

BBD

Banco Bradesco SA

2.23

-0.22

-8.98%

BSBR

Banco Santander Brasil

4.72

-0.29

-5.79%

HDB

Hdfc Bank

73.77

16.04

27.78%

ITUB

Itau Unibanco

5.69

0.54

10.49%

LYG

Lloyds Banking

3.72

1.31

54.36%

Icici Bank Earnings Call Summary

Earnings Call Date: Apr 19, 2025 | % Change Since: ― | Next Earnings Date: Jul 21, 2025

Earnings Call Sentiment Neutral

The earnings call reflects strong growth in profits, deposits, and domestic loan portfolios. However, challenges such as declining net interest margins and increased write-offs on NPAs are evident. The bank's focus on digital transactions and improved asset quality are positive signs, but some areas like retail NPA additions and overseas loan portfolio decline pose challenges.

Highlights

Strong Profit Growth

Profit before tax, excluding treasury, increased by 7.9% year-on-year and 5.2% quarter-on-quarter to INR 148.10 billion. Profit after tax grew by 14.5% year-on-year to INR 117.46 billion.

Robust Loan Portfolio Growth

The domestic loan portfolio grew by 15.7% year-on-year. Retail loans grew by 14.2% year-on-year, and business banking saw a significant growth of 30% year-on-year.

Healthy Deposit Growth

Total deposits increased by 15.7% year-on-year, with term deposits growing by 15.9% year-on-year.

Improved Asset Quality

The net NPA ratio improved to 0.42% from 0.43% in the previous quarter.

Digital Transactions and Technology Investment

72% of trade transactions were done digitally, with a 20% year-on-year increase in trade online transactions.

Lowlights

Moderate Net Interest Margin

Net interest margin decreased to 4.27% from 4.36% in the previous quarter and 4.53% in the same quarter last year.

Higher NPAs in Retail and Rural Portfolios

Gross NPA additions were INR 50.73 billion, with retail and rural portfolio additions at INR 43.41 billion.

Overseas Loan Portfolio Decline

The overseas loan portfolio in U.S. dollar terms declined by 6.9% year-on-year.

Increased Write-offs

Gross NPAs written-off during the quarter were INR 33.36 billion, indicating higher non-performing asset disposal.

Company Guidance

During the ICICI Bank Q2 FY2025 earnings call, the bank reported a profit before tax, excluding treasury, of INR 148.10 billion, marking a year-on-year increase of 7.9% and a quarter-on-quarter rise of 5.2%. The core operating profit grew 12.1% year-on-year to INR 160.43 billion. Furthermore, the profit after tax surged by 14.5% year-on-year to INR 117.46 billion. The bank's domestic loan portfolio expanded by 15.7% year-on-year, with a 4.6% sequential increase, and the retail loan portfolio saw a 14.2% year-on-year growth. Deposits grew by 15.7% year-on-year, while the liquidity coverage ratio stood at approximately 120%. The net NPA ratio slightly decreased to 0.42% from 0.43% in the previous quarter. The capital adequacy ratio remained robust at 16.66%. The bank emphasized a focus on risk-calibrated profitable growth, maintaining high governance standards, and leveraging technology and customer-centric approaches to drive market share growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.