AI-generated · cited to primary sources · not investment advice
ICICI Bank (532174) Oct 2024 Filing Analysis
Does management do what it says?
Credit costs remained exceptionally low at 27 basis points for the quarter, significantly better than the guided normalization range of 40-50 bps. (3 exceeded, 2 met across 5 tracked commitments)
“But finally, one has to look at it the overall portfolio and the overall numbers at a credit cost of 40 to 50 bps of advances, how much more breakups will one do.”
Personal loan growth has already moderated to 17.3% year-on-year, meeting the target ahead of the fiscal year-end. (1 met, 2 exceeded, 1 in progress across 4 tracked commitments)
“So, on a portfolio growth perspective, as we mentioned that it has come down from 40% to 17% and you will see it trend-down further over the next couple of quarters definitely.”
The bank is maintaining a strategic focus on 'Customer 360' to capture a higher share of customer wallet across credit, deposits, and transaction banking. (+1 more commitment)
“And this is one segment where we really focus a lot on the customer 360, because in many cases we would be having a significant share of the wallet, not only across credit, but also across transaction banking, deposits, Fx, and so on.”
Operating expense growth is expected to remain around current levels (approx. 8.5% for H1), with a potential slight increase in H2 due to seasonal spends. — target: Around 8.5% (give or take a couple of percentage points) (+4 more commitments)
“For the first half this year, it's about 8.5% or so. And it could be slightly higher in the second half, given all the festive season-related spends and other technology spends, etc., that we have planned out. But broadly, around this level, give or take a couple of percentage points is where we should see it in the near term.”
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