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BFSI Q2 Results Review - Upbeat On Growth Momentum: ICICI Securities

Operating performance of banks under our coverage demonstrated an upbeat stance on advance growth credit cost outlook.

<div class="paragraphs"><p>500 rupees Indian bank notes arranged for photograph. (Photo: Usha Kunji/BQ Prime)</p></div>
500 rupees Indian bank notes arranged for photograph. (Photo: Usha Kunji/BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

In this compendium, we have put together Q2 FY23 and Q1 FY23 earnings call takeaways for banking, financial services and insurance companies under our coverage (and also a few other key names in the sector). 

Operating performance of banks under our coverage demonstrated an upbeat stance on advance growth (up 5% QoQ/ 21% YoY), credit cost outlook, net interest margin expansion and limited treasury hit.

Financiers are upbeat on growth momentum as green shoots are visible in some corporate segments with sustained growth in retail and SME.

Upward repricing of external benchmark linked rate/marginal cost of funds lending rate loans, asset mix change with deployment of liquidity for advances growth and outperformance of unsecured lending supported improvement in yields.

This, coupled with contained deposit cost, led to a sharp beat at net interest income level.

For Q2 FY23, banks under our coverage improved traction in NII growth to 18% YoY/ 9% QoQ.

Click on the attachment to read the full report:

ICICI Securities BFSI Q2FY23 Earnings Review.pdf

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