ICICI Bank - Q1FY22 Result Update - YES Securities

(Rating: BUY, TP: Rs859, Upside: 27%)

- Asset quality: Annualized slippage ratio for 1QFY22 was elevated at 3.9%, but management flagged decline for 2QFY22 and significant decline for 2HFY22

- Margin picture: NIM at 3.89% was up 5 bps QoQ, benefiting marginally from liquidity drawdown as well as higher yield on surplus liquidity

- Asset growth: Advances grew 0.7%/17.0% QoQ/YoY driven by home loans and business banking

- Opex control: Total opex inched up 0.6% QoQ driven by employee expenses, which grew 18.2% QoQ even as other opex de-grew -8.3% QoQ

- Fee income: Core fee income declined -15.6% QoQ, expectedly, even as management expected minimal impact from the ban on Mastercard

- We maintain 'Buy' rating on ICICI with a revised price target of Rs 859: We value the standalone bank at 2.5x FY23 P/BV for an FY22E/23E/24E RoE profile of 12.5/13.9/15.2%. We assign a value of Rs 190 per share to the subsidiaries, on SOTP.

Shares of ICICI BANK LTD. was last trading in BSE at Rs. 677.65 as compared to the previous close of Rs. 676.75. The total number of shares traded during the day was 213733 in over 5163 trades.

The stock hit an intraday high of Rs. 685.6 and intraday low of 673.3. The net turnover during the day was Rs. 145370341.

Source : Equity Bulls

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