ICICI BANK 2024-25 Annual Report Analysis

Thu, 7 Aug

ICICI BANK has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the bank during the year 2024-25.

ICICI BANK Income Statement Analysis

• Interest income during the year rose 2.3% on a year-on-year (YoY) basis.
• Interest expenses were up by 10.8% YoY during the same period.
• Operating expenses declined by 56.7% YoY during the year.
• The bank's net interest income (NII) decreased by 5.0% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 4.4% in FY25 as against 4.1% in FY24.
• Other income declined by 62.7% YoY during the year.
• Net profit for the year increased by 6.7% YoY.
• Net profit margins during the year increased to 28.9% in FY25 from 27.7% in FY24.

ICICI BANK Income Statement – 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Interest Income	Rs m	1,595,159	1,632,638	2.3%
Other Income	Rs m	765,218	285,067	-62.7%
Interest Expense	Rs m	741,082	820,993	10.8%
Net Interest Income	Rs m	854,078	811,644	-5.0%
Operating Expense	Rs m	977,828	423,723	-56.7%
Pre-provision Operating Profit	Rs m	641,468	672,988	4.9%
Provisions & Contingencies	Rs m	191,400	200,718	4.9%
Profit before tax	Rs m	604,344	626,162	3.6%
Tax	Rs m	154,276	153,892	-0.2%
Profit after tax	Rs m	442,564	472,270	6.7%
Minority Interest	Rs m	-18,241	0	100.0%
Net Interest Margin	%	4.1	4.4
Net profit margin	%	27.7	28.9

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ICICI BANK Balance Sheet Analysis

• The bank's deposits during FY25 stood at Rs 16,103.5 bn as compared to Rs 14,435.8 bn in FY24, thereby witnessing an increase of 11.6%.
• Advances for the year stood at Rs 13,417.7 bn as compared to Rs 12,607.8 bn during FY24, a rise of 6.4%.
• Cost of deposits for ICICI BANK rose 7.7% and stood at 4.4%, while yield on advances rose to 9.4%.
• The lender's investments fell to Rs 5,047.6 bn during the year from Rs 8,271.6 bn in FY24.
• Borrowing stood at Rs 1,235.4 bn, a fall of 40.4% as compared to previous year.
• Overall, the total assets and liabilities for FY25 stood at Rs 21,182.4 bn as against Rs 23,640.6 bn during FY24, thereby witnessing a fall of 10.4%.

ICICI BANK Balance Sheet – as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	2,547,385	2,900,065	13.8%
Advances	Rs m	12,607,762	13,417,662	6.4%
Deposits	Rs m	14,435,800	16,103,480	11.6%
Yield on advances	%	9.2	9.4
Cost of Deposits	%	4.1	4.4
Investments	Rs m	8,271,625	5,047,567	-39.0%
Borrowings	Rs m	2,074,280	1,235,383	-40.4%
Total Assets	Rs m	23,640,630	21,182,400	-10.4%

Current Valuations for ICICI BANK

• The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 66.3, an improvement from the EPS of Rs 63.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,436.3, stands at 18.3 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 3.5 times, while the price to income ratio stands at 5.3 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Income per share (Unadj.)	Rs	227.2	229.2
Earnings per share (Unadj.)	Rs	63.0	66.3
Diluted earnings per share	Rs	62.0	66.1
Avg P/E ratio	Rs	15.7	18.3
Avg P/ABV ratio	Rs	3.3	3.5
Avg Market Cap	Rs	6,944,388	8,620,559
Dividends per share (Unadj.)	Rs	10.00	11.00

Ratio Analysis for ICICI BANK

• Efficiency Ratios

  Credit/Deposit Ratio: The bank's credit/deposit ratio deteriorated and stood at 83.3x during FY25, from 87.3x during FY24. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The bank's debt to equity ratio decreased and stood at 5.98x during FY25, from 6.48x during FY24. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): ICICI BANK's capital adequacy ratio (CAR) was at 16.6% as on 31 March 2025 as compared to 16.3% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

  A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the bank deteriorated and stood at 16.3% during FY25, from 17.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the bank improved and stood at 2.23% during FY25, from 1.87% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the bank improved and stood at 19.02% during FY25, from 17.47% during FY24. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. ICICI BANK's gross NPA ratio stood at 1.7% as of 31 March 2025 compared to 2.3% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

  The net NPA ratio of ICICI BANK was 0.4% in financial year 2025. This compared with 0.5% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Credit/Deposit Ratio	x	87.3	83.3
Debt to Equity Ratio	x	6.5	6.0
Loans / Deposits	x	0.1	0.1
Capital Adequacy Ratio	%	16.3	16.6
Return on Equity	%	17.4	16.3
Return on Assets	%	1.9	2.2
Return on Capital Employed	%	17.5	19.0
% of Gross NPAs	%	2.3	1.7
% of Net NPAs	%	0.5	0.4
Yield on Advances	x	9.2	9.4
Yield on Investments	x	5.1	6.7

To see how ICICI BANK has performed over the last 5 years, please visit here.

ICICI BANK Share Price Performance

Over the last one year, ICICI BANK share price has moved up from Rs 1,172.9 to Rs 1,436.3, registering a gain of Rs 263.5 or around 22.5%.

Meanwhile, the S&P BSE BANKEX is trading at 61,409.6 (down 0.4%). Over the last one year it has moved up from 57,033.7 to 61,409.6, registering a gain of 4,375.8 points (up 7.7%).

Overall, the S&P BSE SENSEX is up 1.7% over the year.

(To know more, you can check out historical annual results for ICICI BANK here and quarterly results for ICICI BANK here)