IBN's Q3 Earnings Dip on Higher Provision & Expenses, NII Rises Y/Y

ICICI Bank Ltd.’s IBN profit after tax for the third-quarter fiscal 2026 (ended Dec. 31) was INR113.2 billion ($1.3 billion), down 4% from the prior-year quarter.Results were hurt by a significant rise in provisions, higher operating expenses and treasury loss. However, rising net interest income (NII) and non-interest income, along with solid loan growth, were tailwinds.IBN’s NII & Fee Income Improve, Expenses RiseNII grew 7.7% year over year to INR219.3 billion ($2.4 billion). The net interest margin was 4.30%, up 5 basis points.Non-interest income (excluding treasury) was INR75.3 billion ($837 million), growing 12.4% year over year. Fee income increased 6.3% to INR65.7 billion ($731 million).In the reported quarter, IBN incurred a treasury loss of INR1.57 billion ($17 million), against the INR3.71 billion ($41 million) of treasury gains from the previous-year quarter.Operating expenses were INR119.4 billion ($1.3 billion), up 13.2% year over year.ICICI Bank’s Loans & Deposits IncreaseAs of Dec. 31, 2025, ICICI Bank’s total advances were INR14,661.5 billion ($163.1 billion), up 4.1% sequentially. Growth was primarily driven by a solid rise in domestic loans, retail loans, rural loans, business banking loans, domestic corporate and other loans.Total deposits were INR16,596.1 billion ($184.6 billion), up 3.2% from the prior quarter.IBN’s Credit Quality: Mixed BagAs of Dec. 31, 2025, the net non-performing assets (NPA) ratio was 0.37%, which declined from 0.42% in the prior-year period. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR32.8 billion ($365 million) in the reported quarter.In the reported quarter, there were net additions of INR20.7 billion ($231 million) to gross NPA. Gross NPA additions were INR53.6 billion ($596 million), while gross NPA written off was INR20.5 billion ($228 million).Provisions (excluding provision for tax) were INR25.6 billion ($285 million) compared with INR12.3 billion ($136.8 million) from the prior-year quarter.Capital Ratios Strong for ICICI BankIn compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 17.34%. Tier-1 capital adequacy was 16.46% as of Dec. 31, 2025. Both ratios were well above the minimum requirements.Our Take on IBNMounting expenses due to ICICI Bank’s initiatives to digitize banking operations are expected to weigh on profitability in the coming quarters. Additionally, weak credit quality remains a near-term headwind. However, robust loan demand, efforts to digitize operations for bolstering fee income and decent economic growth are expected to offer some support. ICICI Bank Limited Price, Consensus and EPS Surprise ICICI Bank Limited price-consensus-eps-surprise-chart | ICICI Bank Limited QuoteICICI Bank currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of Other Foreign BanksDeutsche Bank AG DB is scheduled to report fourth-quarter and full-year 2025 results on Jan. 29, 2026.The Zacks Consensus Estimate for DB’s quarterly earnings has been unchanged at 72 cents per share over the past seven days. The figure implies a significant increase from the prior-year quarter.Barclays BCS is scheduled to announce fourth-quarter and full-year 2025 results on Feb. 10, 2026.The consensus estimate for BCS’ quarterly earnings has been unchanged at 42 cents per share over the past week. The figure implies an increase of 23.5% from the prior-year quarter.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks