IBN

This article first appeared on GuruFocus. Release Date: October 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Profit before tax excluding treasury grew 23.4% YoY to INR199.54 billion, with core operating profit up 21.8% YoY. - Total deposits grew 27.1% YoY and 11.8% QoQ; average deposits increased 21.2% YoY. - Net NPA ratio improved to 0.30% from 0.35% in the previous quarter and 0.39% a year ago. - Capital position remains strong with CET1 ratio of 16.01% and total capital adequacy of 16.68%. - Fee income grew 20.1% YoY, driven by retail, rural, and business banking fees, which constituted 75% of total fees. - Net interest margin declined to 4.18% from 4.36% in the previous quarter and 4.30% in Q2 FY26. - Credit card portfolio declined 9.7% YoY and 0.2% QoQ. - Savings deposit growth was soft at 5% YoY, with a decline in institutional savings. - Treasury loss of INR2.3 billion in the quarter compared to a gain of INR1.5 billion in the previous quarter. - Margins are expected to moderate further in Q3 due to the full impact of FCNR(B) deposits and seasonal agriculture provisions. - Warning! GuruFocus has detected 3 Warning Sign with IBN. - Is IBN fairly valued? Test your thesis with our free DCF calculator. Q: How should one look at margins for the next one or two quarters? Has the impact of heavy FCNR (B) sourcing played out fully this quarter, or do you expect more compression before recovery? A: Anindya Banerjee (Group CFO) explained that the full impact of the FCNR (B) deposits raised in Q2 and the higher proportion of the overseas book will be reflected in the Q3 averages, leading to further margin moderation, partly offset by the rate hike. From Q4, margins are expected to recover healthily as these factors reverse, even assuming no further rate hikes. He noted the bank raised a large quantum of fixed-rate funding that will support growth, and the optical decline over a quarter or two is not a concern. Q: On corporate growth, is it just temporary parking of FCNR funds, or do you see corporate growth remaining high? Retail growth looks softer than usual while corporate is very strong how do you see the mix going forward? A: Anindya Banerjee (Group CFO) said retail growth has been steadily picking up over the last few quarters, from single digits to close to 15%, with mortgages and personal loans back to mid-teen levels. Corporate growth partly reflects a low base from last year, but is not temporary FCNR parking it is a response to client demand and pricing, driven by working capital needs, a shift from bond and foreign currency markets, and some investment activity. The franchise is open on both retail and corporate fronts, and the bank will take whatever meets its risk-reward threshold. Q: On provisions, credit costs have been lower than the new normal in the last two quarters. When does the agri provision of around INR13 billion get reversed, and was there a big corporate recovery this quarter as well? A: Anindya Banerjee (Group CFO) said corporate NPL formation is negligible, business banking is low, and retail is stable, with personal loans and cards seeing lower formation over the past four to six quarters. This quarter included one chunky corporate recovery and higher general provisioning due to loan book expansion, particularly loans against FCNR deposits, which is more of a one-off. Adjusted for these, credit cost is expected to remain up to 50 basis points. On the agriculture standard asset provisioning, the remediation review process is underway, and an update is expected over the next two quarters. Q: On the FCNR strategy, relative to peers the amount raised is very high as a proportion of the balance sheet. Is there a strategic change are you now prioritizing NII over NIM? A: Anindya Banerjee (Group CFO) said the bank solves for sustainable earnings growth, not NII over NIM. The FCNR opportunity was a one-off, and the bank did not weigh it against short-term margin impact but rather the strength it gives for business growth going forward. Of the roughly USD18 billion raised, about USD10 billion was lent to customers, about USD3.6 billion lent by partner banks, and upwards of USD4 billion where customers put in their own money. The deposits are cost-effective with no regulatory preemption and support growth, making it a big opportunity. Q: On overseas margins, the base has widened and the incremental FCNR-linked book would be at a much lower margin. How is the overseas margin moving up, and to what level can it settle? Can you quantify the FCNR impact on margins this quarter? A: Anindya Banerjee (Group CFO) said overseas margins are also supported by higher dollar interest rates, which increase spreads on float deposits. He declined to project overseas margins separately or give a pro forma FCNR impact number, saying it can be calculated in many ways and would be theoretical. On an overall basis, the full impact of the higher term deposit denominator, lower CASA ratio, and larger overseas book (earning about 1% margin versus 4%-plus domestic) will be seen in Q3 averages, with a healthy pickup from Q4. Excess liquidity is expected to be deployed over the next two quarters. Q: On the retail lending products, credit card growth has been subdued and the book declined slightly quarter-on-quarter. When will recovery come? And gold loan growth was much lower this quarter versus peers anything to read into that? A: Anindya Banerjee (Group CFO) said the bank is fully engaged in credit cards, launching new products and variants and shifting from a product lens to a customer lens to build primariness. The decline this quarter was mainly seasonal last year the book built up toward end-September, while this year that will happen in Q3 and underlying growth is okay, maybe marginally positive. On jewel loans, year-on-year growth is very strong, but sequential growth came off as processes and distribution were aligned with new RBI guidelines; volumes are expected to pick up over time. Q: On fees, 20% fee income growth is much higher than peers. Is there any one-off on FCNR to call out this quarter? A: Anindya Banerjee (Group CFO) confirmed there were some processing fees charged for the leverage against FCNR deposits. However, the sequential increase in operating expenses was largely due to the cost of wholesale resources, bonds, and loans raised during the quarter to fund that leverage, so broadly the two even each other out. Q: On the retail versus corporate debate, do the two businesses have similar RAROC thresholds, and could continued corporate growth dilute ROE? A: Anindya Banerjee (Group CFO) said it does not work that way. Corporate credit losses are much lower because the focus is on return of capital at the client level, a go/no-go decision, whereas granular portfolios are managed at a portfolio level with some tolerance for credit loss. Corporate also brings ancillary revenue such as transaction banking and collections, which factor into the overall return. He stated clearly that corporate is definitely not worse than retail, and healthy current account growth owes substantially to the corporate franchise. Q: Savings deposit growth looks soft at around 5% year-on-year. Anything to read into that, and can you call out the LCR for September separately? A: Anindya Banerjee (Group CFO) said there is nothing to read into it. Institutional savings, particularly from government departments, have been trending down, while retail savings growth is okay. The bank manages the business on retail "money in bank" total retail customer balances across FDs and savings and retail MIB accretion is stable to slightly better than For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Saturday, Oct. 17, 2026 - Managing Director and Chief Executive Officer - Sandeep Bakhshi Operator: Ladies and gentlemen, good day, and welcome to ICICI Bank Limited Q2 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sandeep Bakhshi, Managing Director and Chief Executive Officer of ICICI Bank. Thank you, and over to you, sir. Sandeep Bakhshi: Thank you. Good evening to all of you, and welcome to the ICICI Bank earnings call to discuss the results for Q2 of FY '27. Joining us today on this call are Sandeep Batra, Rakesh, Ajay, Anindya and Abhinek. At ICICI Bank, our strategic focus continues to be on growing profit before tax, excluding treasury through the 360-degree customer-centric approach and by serving opportunities across ecosystems and micro markets. The profit before tax, excluding treasury, grew by 23.4% year-on-year to INR 199.54 billion in this quarter. The core operating profit increased by 21.8% year-on-year to INR 208.05 billion in this quarter. The core operating profit, excluding dividend from subsidiaries increased by 25% year-on-year to INR 203.42 billion in this quarter. The profit after tax grew by 20.1% year-on-year to INR 148.43 billion in this quarter. Total deposits grew by 27.1% year-on-year and 11.8% sequentially at September 30, 2026. Average deposits grew by 21.2% year-on-year and 8% sequentially and average current and savings accounts deposits grew by 10.7% year-on-year and 1.4% sequentially during this quarter. The bank has mobilized gross FCNR (B) deposits of about USD 18 billion pursuant to RBI swap facility. Excluding FCNR (B) deposits, total period-end deposits grew by 17% year-on-year and 3.1% sequentially at September 30, 2026. The bank's average liquidity coverage ratio for the quarter was about 126%. The overall loan portfolio, including the international branches grew by 30% year-on-year and 12% sequentially at September 30, 2026. Excluding loans provided by international branches of the bank against FCNR (B) deposits, total loans grew by 24.1% year-on-year and 7.3% sequentially. The retail and rural portfolio grew by 14.8% year-on-year and 3.2% sequentially. Including non-fund-based outstanding, the retail and rural portfolio was 43% of the total portfolio. The business banking portfolio grew by 33.8% year-on-year and 11.1% sequentially. The domestic corporate portfolio grew by 30.6% year-on-year and 10.4% sequentially. The domestic loan portfolio grew by 22.8% year-on-year and 6.8% sequentially at September 30, 2026. The overseas loan portfolio was 7.8% of the overall loan book at September 30, 2026. The net NPA ratio was 0.30% at September 30, 2026, compared to 0.35% at June 30, 2026, and 0.39% at September 30, 2025. During the quarter, there were net additions of INR 12.13 billion to gross NPAs, excluding write-offs and sales. The total provisions during the quarter were INR 8.51 billion or 4.1% of core operating profit and 0.2% of average advances. The provisioning coverage ratio on nonperforming loans was 75% at September 30, 2026. In addition, the bank continues to hold contingency provisions of INR 131 billion or about 0.7% of total advances at September 30, 2026. The capital position of the bank continued to be strong with a CET1 ratio of 16.01% and total capital adequacy of 16.68% at September 30, 2026. The bank purchased 2% additional shareholding in ICICI Life Insurance Limited for a consideration of INR 14.7 billion during the quarter. Looking ahead, we see many opportunities to drive risk-calibrated profitable growth and grow market share across key segments. We remain focused on maintaining a strong balance sheet, prudent provisioning and healthy levels of capital, while delivering sustainable and predictable returns to our shareholders. I now hand the call over to Anindya. Anindya Banerjee: Thank you, Sandeep. I will talk about loan growth, credit quality, P&L details and the performance of subsidiaries. On loan growth, we have revised the presentation of loans to reflect the consolidated view of the retail and rural portfolio with additional product-wise details. The comparable data for previous periods have also been provided on Slide 64 and 65 of the investor presentation. Coming to the growth across retail and rural products, the mortgage portfolio grew by 15.3% year-on-year and 3.5% sequentially. Vehicle loans grew by 7.8% year-on-year and 1.4% sequentially. Personal loans grew by 16.6% year-on-year and 4.7% sequentially. The credit card portfolio declined by 9.7% year-on-year and 0.2% sequentially. Jewel loans grew by 79.4% year-on-year and 4.5% sequentially. Within the corporate portfolio, the total outstanding to NBFCs and HFCs was INR 1,033.78 billion at September 30, 2026, compared to INR 920.52 billion at June 30, 2026. The total outstanding loans to NBFCs and HFCs were about 4.3% of our advances at September 30, 2026. The builder portfolio, including construction finance, lease rental discounting, term loans and working capital was INR 788.52 billion at September 30, 2026, compared to INR 747.21 billion at June 30, 2026. The builder loan portfolio was 4% of our total loan portfolio. Our portfolio largely comprises well-established builders, and this is also reflected in the sequential increase in the portfolio. About 0.5% of the builder portfolio at September 30, 2026, was either rated BB and below internally or was classified as nonperforming. Moving on to credit quality. The gross NPA additions were INR 48.33 billion in the current quarter compared to INR 50.34 billion in Q2 of last year. Recoveries and upgrades from gross NPAs, excluding write-offs and sale, were INR 36.20 billion in the current quarter compared to INR 36.48 billion in Q2 of last year. The net additions to gross NPAs were INR 12.13 billion in the current quarter compared to INR 13.86 billion in Q2 of last year. The gross NPA additions from the retail and rural portfolio were INR 37.09 billion in the current quarter compared to INR 40.49 billion in Q2 of last year. Recoveries and upgrades from the retail and rural portfolio were INR 26.04 billion in the current quarter compared to INR 26.10 billion in Q2 of last year. The net additions to gross NPAs in the retail and rural portfolio were INR 11.05 billion in the current quarter compared to INR 14.39 billion in Q2 of last year. The gross NPA additions from the corporate and business banking portfolios were INR 11.24 billion in the current quarter compared to INR 9.85 billion in Q2 of last year. Recoveries and upgrades from the corporate and business banking portfolios were INR 10.16 billion in the current quarter compared to INR 10.38 billion in Q2 of last year. There were net additions to gross NPAs of INR 1.08 billion in the current quarter in the corporate and business banking portfolios compared to net deletions of INR 0.53 billion in Q2 of last year. The gross NPAs written off during the quarter were INR 15.92 billion. Further, there was sale of NPAs of INR 1.33 billion for cash in the current quarter. The non-fund-based outstanding to borrowers classified as nonperforming was INR 22.51 billion as of September 30, 2026, as compared to INR 22.07 billion as of June 30, 2026, and INR 23.22 billion as of September 30, 2025. The loans and non-fund-based outstanding to performing corporate borrowers rated BB and below was INR 35.47 billion at September 30, 2026, as compared to INR 34.85 billion at June 30, 2026, and INR 36.61 billion at September 30, 2025. This portfolio was about 0.2% of our advances at September 30, 2026. The total fund-based outstanding to all standard borrowers under resolution as per various guidelines declined to INR 11.85 billion at September 30, 2026, from INR 13.63 billion at June 30, 2026, and INR 16.24 billion at September 30, 2025. At the end of September, the total provisions, other than specific provisions on fund-based outstanding to borrowers classified as nonperforming, were INR 238.15 billion or 1.3% of loans. This includes the contingency provisions of INR 131 billion as well as general provision on standard assets, provisions held for non-fund-based outstanding to borrowers classified as nonperforming, fund and non-fund-based outstanding to standard borrowers under resolution and the BB and below portfolio. The bank also continues to hold additional standard asset provision of INR 12.83 billion made in Q3 of FY 2026 as directed by RBI in respect of the agricultural priority sector portfolio till completion of the review process. Moving on to the P&L details. Net interest income increased by 17.7% year-on-year and 3.9% sequentially to INR 253.39 billion in this quarter. The net interest margin was 4.18% in this quarter compared to 4.36% in the previous quarter and 4.30% in Q2 of last year. Excluding the benefit of interest on tax refund, the net interest margin would have been 4.28% in the previous quarter. The domestic NIM, excluding benefit of interest on income tax refund, was 4.32% in the current quarter compared to 4.36% in the previous quarter and 4.37% in Q2 of last year. The cost of deposits was 4.50% in this quarter compared to 4.41% in the previous quarter and 4.64% in Q2 of last year. The increase in proportion of the assets of overseas branches in the total assets and the large sequential increase in the retail term deposit base have led to a moderation in margins and the full impact would reflect in the third quarter, after which we expect the margins to start moving back up even based on the current level of policy rates. Of the total domestic loans, interest rates on about 57% of the loans are linked to the repo rate and other external benchmarks, 14% to MCLR and other older benchmarks, and the remaining 29% of loans have fixed interest rates. Non-interest income, excluding treasury, grew by 12.5% year-on-year to INR 82.77 billion in Q2 of FY 2027. Fee income increased by 20.1% year-on-year to INR 77.95 billion in this quarter. Fees from retail, rural and business banking customers constituted about 75% of the total fees in this quarter. Fee income for the quarter includes fees for providing lending facilities against FCNR (B) deposits. Dividend income from subsidiaries was INR 4.63 billion in this quarter compared to INR 8.10 billion in Q2 of last year, primarily reflecting the shift in timing of dividend declaration from quarterly to half yearly basis by ICICI Prudential AMC Limited. On costs, the bank's operating expenses increased by 8.5% year-on-year and 1.9% sequentially in this quarter. Employee expenses increased by 13.5% year-on-year. Non-employee expenses increased by 5.6% year-on-year. Our branch count has increased by 145 in H1 of 2027. We had 7,656 branches as of September 30, 2026. The technology expenses were about 11.2% of our operating expenses in H1 of the current year. The total provisions during the quarter were INR 8.51 billion or 4.1% of core operating profit and 0.2% of average advances compared to the provisions of INR 9.14 billion in Q2 of last year. Adjusting for one-off corporate recoveries, standard asset provision on loans provided against FCNR (B) deposits and seasonality of KCC provisioning, the normalized credit cost to advances would be about 50 basis points. The profit before tax, excluding treasury, grew by 23.4% year-on-year to INR 199.54 billion in Q2 of this year. There was a treasury loss of INR 2.3 billion in this quarter as compared to a gain of INR 1.5 billion in the previous quarter and INR 2.2 billion in Q2 of last year, reflecting market movements. The tax expense was INR 48.81 billion in this quarter compared to INR 43.21 billion in the previous quarter and INR 40.25 billion in Q2 of last year. In the previous quarter, the bank had written back tax provision of INR 4.46 billion pursuant to favorable tax orders. The profit after tax grew by 20.1% year-on-year to INR 148.43 billion in this quarter. The consolidated profit after tax grew by 22.3% year-on-year to INR 163.33 billion in this quarter. The details of the financial performance of key subsidiaries are covered in Slides 37 to 39 and 58 to 63 in the investor presentation. The annualized premium equivalent of ICICI Life increased to INR 49.35 billion in H1 of this year from INR 42.86 billion in H1 of last year. The value of new business increased to INR 12.83 billion in H1 of this year from INR 10.49 billion of H1 of last year. The value of new business margin was 26% in H1 of this year compared to 24.7% in FY 2026 and 24.5% in H1 of last year. The profit after tax of ICICI Life increased to INR 7.6 billion in H1 of this year from INR 6.01 billion in H1 of last year and INR 3.74 billion in this quarter from INR 2.99 billion in the second quarter of FY 2026. Gross direct premium income of ICICI General increased to INR 67.92 billion in Q2 2027 from INR 65.96 billion in Q2 2026. The combined ratio stood at 107% in Q2 2027 compared to 105.1% in Q2 2026. Excluding the impact of cat losses of INR 1.18 billion in Q2 2027 and INR 0.73 billion in Q2 2026, the combined ratio was 105.3% and 103.8%, respectively. The profit after tax increased to INR 9.46 billion in Q2 2027 from INR 8.2 billion in Q2 2026. The profit after tax of ICICI AMC as per Ind AS increased to INR 8.89 billion in this quarter from INR 8.38 billion in Q2 of last year. The profit after tax of ICICI Securities as per Ind AS on a consolidated basis increased to INR 4.39 billion in this quarter from INR 4.25 billion in Q2 of last year. ICICI Bank Canada had a profit after tax of CAD 5 million in this quarter compared to CAD 6.3 million in Q2 of last year. ICICI Bank U.K. had a profit after tax of USD 6.5 million in this quarter compared to USD 6.4 million in Q2 of last year. As per Ind AS, ICICI Home Finance profit after tax increased to INR 2.2 billion in the current quarter from INR 2.03 billion in Q2 of last year. With this, we conclude our opening remarks, and we will now be happy to take your questions. Operator: [Operator Instructions] We'll take our first question from the line of Mahrukh Adajania from Tara Capital. Mahrukh Adajania: Congratulations. I just had a couple of questions. Firstly, on the corporate growth, is it just temporary parking of FCNR funds? Or do we see corporate growth remaining high in the future quarters? I mean, what is the kind of retail corporate mix, because retail growth looks a bit softer than usual and corporate growth is very strong. So how do you see it in the future quarters? That's my first question. Secondly, on provisions. So we've seen credit costs lower than the new normal in the last 2 quarters. And then in the third quarter of last year, there was also this agri provision of around INR 13 billion. When does that get reversed? And was there a big corporate recovery -- you did mention, so that continued -- I mean, there was a big corporate recovery even this quarter like there was in the last. Is that true? That's what I wanted to know. Anindya Banerjee: Yes. So on the first question, actually, Mahrukh, the retail growth has been steadily picking up over the last few quarters. If you look back maybe 3 or 4 quarters ago, retail loan growth was running in the single digits, and that has picked up now to close to 15%. And within that, in segments like home loans -- the mortgages and personal loans, we have seen quite a steady pickup now back to mid-teen kind of levels. On the corporate side, partly, I guess, because still maybe Q2 last year, our corporate growth was quite subdued. So maybe the base effect is also there. But I don't think there is anything of really temporary parking of FCNR funds, et cetera. It is really a response to client demand and our view on pricing. Of course, as in any quarter, there is a mix of working capital draws, short-term lending and long-term lending in the mix of the book growth. It's across all 3. What is driving it, I think, is a mix of factors. Working capital requirements, some shift from bond markets, some shift from foreign currency borrowing markets, and some amount of investment activity. So we don't have a particular view on the mix between retail and corporate going forward. The franchise is open on both fronts, and whatever comes in and meets our risk-reward kind of threshold, we would be quite happy to do, and we have the capital and funding for that. Yes. So that would be the response. It's not really, in terms of our thinking, a temporary thing from a liquidity perspective. While we are on the subject of loan growth, I'll also just cover the business banking piece where we have seen a pretty strong growth. Partly, of course, over the last few quarters, there have been draws on the ECLGS front. But aside from that, also the underlying growth in terms of both new customer acquisition by us as well as the same increase in working capital or fresh expansion of business-led activity also continues. And as you would have seen from the NPL numbers across all these segments, the portfolio performance continues to be extremely healthy. So that is the way we would look at it. And that takes us into your second question. On provisioning, I think if we look at it on the NPL formation in the corporate side, new NPL formation on the corporate side is pretty negligible. On business banking, it continues to be quite low. And on retail, it is pretty stable. Actually, if we look back over the past 4 to 6 quarters, it has come down because of the reduction in NPL formation in personal loans and cards. And that is really feeding into the provisioning number. Yes, in this quarter, there was 1 relatively chunky recovery on the corporate side. And as I mentioned in the opening remarks, we also had some higher general provisioning this quarter because of the expansion of the loan book, particularly the loans against FCNR deposits in the overseas branches, which is more of a one-off. And adjusted for all this, we would continue to believe that up to 50 basis points is where the credit cost would be. On the agriculture portfolio-related standard asset provisioning, I think it is still work in process in the sense that, as I had mentioned earlier, we want to be very sure that whatever remediation we have done is to the satisfaction of the regulator. That process is underway. And hopefully, we should have an update on that over the next 2 quarters. Operator: Next question is from the line of Nitin Aggarwal from Motilal Oswal. Nitin Aggarwal: So a couple of questions from my side. One is on the 2 retail lending product segments. One is the credit card and also the gold loans. So credit card, we know that the trend has been running subdued for the industry, and for the bank, the book has been declining slightly quarter-over-quarter. So where are we on that? When are we likely to see some recovery in credit card portfolio growth? And on the gold loans also, this quarter, we have seen a much lower growth per se, like versus what we are seeing with some other banks. So anything to read into that? What is our aspirations on this portfolio overall over the coming year? Anindya Banerjee: So as far as the credit card book is concerned, I think we are fully engaged in the business, and we are, as you would have seen, launching some of the new products and variants aimed at particular customer segments as well. And we are increasingly looking at it as a shifting from a product lens to a customer lens in this product and looking at it as part of the overall bouquet of our services to customers, a high-touch product that helps us try and establish primariness with the customers. So that is the broad approach. I think the spend piece will keep moving up and down. I mean the specific reason for the decline this quarter was that last year, there was a buildup of the book towards the end of September, which this year that will happen during the third quarter and not at the end of Q2. So that's more of a seasonal effect. But I don't think the -- the underlining in terms of growth, things are okay, maybe marginally positive. The decline is more of just a date and base issue. On jewel loans, as you would have seen, the year-on-year growth is very strong. The sequential growth has come off as we have been aligning our processes and the distribution as well as various operational risk management measures towards the new RBI guidelines and making sure that we do the business in full compliance with those. But I think it's a matter of time, and we would expect volumes to pick up there. Nitin Aggarwal: Right. And the other question is on the overall growth per se. Like this quarter has been very well supported by FCNR. But do you see any change as such in the business environment that is driving such a strong growth even adjusted for FCNR, like we are reporting a 10% plus corporate growth on a Q-o-Q, which you alluded to is because of the base and you have not grown much in the past. But is there something which is materially changing the growth trajectory for the bank over the coming 1 or 2 years versus how it was in the last year as such? Anindya Banerjee: So I think when we look at the bank, I think we have a very strong franchise across customer segment. So we have access to all growth opportunities that come up as we serve the customers. At different points of time, we may have a different view on either pricing or the rate environment or the rate cycle and may calibrate our growth accordingly. But as we have gotten comfortable with, as we have spoken in the past, the point of the rate cycle or the level of pricing in the market, we have picked up the growth. That is the way we would continue to look at it. I think for banks in general and for us, of course, growth is supported currently by some of the factors that we mentioned earlier, including some amount of shift from bond markets as well as some amount of shift from offshore to onshore rupee markets. So we will keep taking those opportunities as we go along. But fundamentally, I think the franchise is fully open and capable of delivering very robust levels of growth. Nitin Aggarwal: Got that. And lastly, if I can squeeze 1 more question. How should 1 look at the margins now for the next 1 or 2 quarters? Has the impact of, say, FCNR (B) sourcing, which is very heavy for us, has it played out fully in this quarter? Or we expect some more compression before the journey starts recovering? Anindya Banerjee: So as I explained, I mean, if you look at the numbers, there has been a small reduction in the domestic margin if 1 leaves out the impact of income tax refund in the previous quarter. And the overseas margin has been stable to slightly higher. So the main impact which has come is the fact that the overseas book has expanded as a proportion of the overall book. And also, given the large increase in the term deposit base, that has led to the small reduction in the domestic margin that I spoke of, because just mathematically, the average CASA ratio has come down. The FCNR (B) deposits were raised during Q2. So the full impact of these on the average balance sheet will come in Q3, and we will see a further moderation in margins, offset a little bit by the rate hike, which has already taken place. But then from Q4, I would expect margins to come back in a pretty healthy way as these factors start to reverse out, even assuming that there are no further rate hikes. But from an overall perspective, as we have said before, this sort of decline in margins for a quarter or 2 quarters on an optical basis doesn't worry us at all, because we believe that we have raised a very large quantum of fixed rate funding, which will support our growth and the expansion of our franchise over a period of time. And also given the fact that interest rates are certainly unlikely to go down and probably likely to go up, that gives a cushion to the profitability as well. So from a timing balance sheet construct and just pure franchise perspective, we saw this as a big opportunity. And the small movement in margins, which anyway continue to be pretty healthy at the absolute level, while there is a shift from quarter-to-quarter, was not really something that concerned us too much. Operator: Next question is from the line of Kunal Shah from Citi. Kunal Shah: Congratulations for a good set of numbers. So on overseas margins, if I look at it, it has gone up sequentially. The base has obviously widened. And I believe that incremental INR 90,000-odd crores that would be at a much lower margin compared to 1%, which is there on the overseas business. So didn't get as to how it's moving up during the quarter and maybe to what level can it actually settle once we see the full impact of the overseas FCNR leveraged book. So that's the first question. And secondly, in terms of the FCNR, given that we have raised a substantial chunk. So 1 of the banks quantified 11 basis points of impact due to FCNR. Maybe if you look at it, 4.9, 5-odd percent increase in the overseas, and just multiply the difference, that itself is the margin impact. But if you can quantify how much is the FCNR impact in margin during the quarter? And when do we see this utilization coming through to the average yield on interest-earning assets at 8.1% or maybe yield on advances at 8.8-odd percent, how long would the entire utilization take place, yes? Anindya Banerjee: So overseas margins are not affected only by the margins on FCNR. Interest rates have gone up in dollar markets over the last 3, 4 months. And that also results in an increase in margins, because you earn a higher spread on the deposits, particularly the float deposits that are there in any bank, including in the operations of our overseas branches. I would not want to get into projecting overseas margins separately. I think on an overall basis, what I have said is that the full impact of this increase in the term deposit denominator and its impact on the CASA ratio, and the increase in the proportion of the overseas book, which earns a 1% thereabouts margin compared to the 4% plus margin on the domestic book, will just mathematically be fully seen in the averages in Q3. And thereafter, I think we should start seeing a pretty healthy pickup from Q4 onwards. So that is the way it would work. And on the utilization piece also, yes, obviously, we are carrying some amount of excess liquidity currently, and I would expect that to be kind of deployed over the next 2 quarters, which is anyway the season where traditionally credit growth tends to be strong. On the impact of FCNR, I don't really want to give a number excluding. I mean, finally, it is something which is there on the balance sheet. So we have kind of explained the trend of how it impacted the margins and what we expect to see going forward. I don't really want to give a pro forma excluding or impact number because that can be calculated in many ways. Kunal Shah: Sure. And... Anindya Banerjee: It would be a theoretical number. The FCNR deposits are what they are and the margins are what they are, and we are trying to explain them and also give an outlook on how we expect them to move going forward. Kunal Shah: Sure. And fair to assume that the repo rate hike, the positive impact of that will be lower than the drag which we would see because of the full quarter FCNR impact getting into Q3, plus there will be seasonal agri also which will come in Q3. So that's the reason you are indicating that margins should be down in the third quarter? Anindya Banerjee: Yes. Operator: We'll take our next question from the line of Param Subramanian from Investec. Parameswaran Subramanian: Firstly, a question on the FCNR itself. So we have -- I mean, relative to our peers as a proportion of our balance sheet, the number is very high that we have raised. So any change in our, say, strategy that has prompted this? As in are we -- from a strategic perspective, are we now prioritizing NII over NIM or any such thing? Because if I -- the reason I ask is, if I think back to last year, when the rate cuts were going on, it almost seemed to indicate that we had slowed down loan growth a bit and was solving for margin. So is there a strategic direction change as such? Anindya Banerjee: No, no, we solve for sustainable earnings growth. And yes, as you said, and we have indicated, at a time when there was a downward rate cycle and we felt that spreads over the rate levels were not sufficient, we did calibrate our growth and which has, of course, changed over the last few quarters. The FCNR opportunity was a one-off opportunity. And as I said, it's not something that we weighed in the context of short-term impact on margins, but rather the strength that it gave us in terms of business growth for a period of time going forward and the impact on margins is anyway going to be transient. And I think it is an outcome that we are very happy with, because if we look at sort of the broad breakup of the deposit mobilization, and we had given this number shortly after the end of August, we made a public disclosure. I'm just rounding out the numbers, about USD 18 billion in all, around USD 10 billion where we have provided loans to the customers, about USD 3.6 billion or so where partner banks have provided loans, and upwards of USD 4 billion, which is really where the customers have put in their own money. And we saw that is a very healthy outcome, including in terms of demonstration of the NRI franchise and the opportunity it gave us for engagement with NRI customers, both existing and new. So I think we just saw it as a big opportunity to garner these resources, which would support our growth, which were very cost effective, because there is no regulatory preemption and so on, on these deposits once you bring them onshore. And it just made long-term economic sense to maximize on these. Parameswaran Subramanian: Perfect. Very clear, Anindya. Second question on the fees. Is there any one-off on FCNR that you want to call out in this quarter, because 20% fee income growth is much higher than what any of your peers are reporting. Anindya Banerjee: Yes, there is some amount of the processing fees that were charged for the leverage against FCNR. But equally, for example, if you look at the OpEx, if you look at the sequential increase in OpEx, it's largely due to the cost of the wholesale resources, bonds and loans that we raised during the quarter to fund that leverage. So I think net broadly, the 2 even each other out. Parameswaran Subramanian: Okay. Possible to call that out? Anindya Banerjee: So as I said, the increase in the OpEx between Q1 and Q2 can largely be explained by that. Parameswaran Subramanian: Okay. Perfect. Perfect. And 1 last question. Your savings growth, if anything, maybe that's the softer -- savings deposit growth, that's a soft number, 5% Y-o-Y. So anything to read into that? And if you can call out the LCR for the month of September separately, because that would be higher than the average for the quarter, right? Yes, that's it from me. Anindya Banerjee: So on the savings deposit growth, nothing really. I think as we have been saying, there is a sort of -- it moves up and down quarter-to-quarter. But in general, there has been a trend of decline in the institutional savings, particularly what comes from the government departments and so on, while the retail savings growth continues to be quite okay. On the retail savings side also, we generally don't really drive the business on savings per se. We drive our business on money in bank. So what is the total sort of money that the retail customer is keeping with us in both the form of FDs and in the form of savings accounts, the retail MIB as we call it. And if I look at the retail MIB accretion, it is pretty stable to slightly better actually if I compare with past quarters. So that is really the way we would look at it. We are not really looking at the headline number. On the LCR for the month of September, it would not really be too informative, Param, because we could have deployed a lot of the excess liquidity in non-HQLA. For example, papers issued by financial counterparties and so on, or money market mutual funds or bank CDs, which are not eligible as HQLA, because given the anyway base level of LCR, there was no need to deploy further in HQLA. There was a need to optimize return on liquidity while investing in safe instruments, which is what we did. Operator: We'll take our next question from the line of Chintan from Autonomous. Chintan Joshi: Can I come back to the retail versus corporate debate? Do the 2 businesses have similar RAROC thresholds that you give out to the businesses? I would assume that the RAROC achieved in retail is higher than in the corporate. So even if the businesses meet the threshold, is it fair to say there could be some dilution in ROE if you keep doing corporate, or it doesn't work that way? Just would like some color both on the thresholds, but also on achieved RAROCs that you give to retail versus corporate businesses. Anindya Banerjee: So it doesn't really work like that for a couple of reasons. One, I think in corporate, the credit loss that is there in the corporate segment is much lower. I mean, even adjusting for the one-off recoveries, because in the corporate segment, by and large, our focus on return of capital at the sort of client level is very high, whereas in the granular portfolios, we have to look at it at a portfolio level and have a certain tolerance for credit loss, whereas in the corporate portfolios, our focus on return of capital is very high. It is like a go/no-go kind of decision. So in that sense, I would expect credit cost in the corporate portfolio to sustainably be lower than in retail. And of course, we look at it -- in the case of corporate, there are a lot of ancillary revenue streams, transaction banking, payment collections, et cetera. So we factor all that into account. So just the lending RAROC may not show it up. So for example, if you look at the very healthy growth in our current account balances over the last year, even year-on-year basis, a substantial part of that owes to work done on the corporate franchise. So to really look at it in totality. Chintan Joshi: Okay. But they produce similar ROEs for you. Is that a fair assumption? I'm asking because 1 of your peers had said in a call a couple of quarters ago that the corporate business produces a slightly lower return than the retail business. I just wanted to understand whether that is true or false for ICICI? [Technical Difficulty] Operator: Ladies and gentleman, we have lost the management connection. Please stay connected. Ladies and gentleman, we have the management team back on the call. Chintan, can you just repeat the last part, please? Chintan Joshi: Yes. So what I was asking is that... Anindya Banerjee: I am sorry we got cut off. To answer your question, corporate is definitely not worse than retail. Chintan Joshi: That's good enough. And the second question is, I appreciate all the color on the NIMs. Just kind of extrapolating your comments, it does look like the underlying NIMs, excluding FCNR, probably improved quarter-on-quarter. Is that a fair observation? Anindya Banerjee: See, I don't -- because it's now money which is sitting in the balance sheet. So we can explain how it has impacted the thing. But we can't really talk about excluding number. But I would say that even if you leave aside this, yes, I guess our ability to raise funding at the most competitive costs and our focus on pricing and our ability to price our loans well has remained the same. Operator: Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference back to management for closing comments. Over to you, sir. Anindya Banerjee: Thank you very much for taking time out on a Saturday evening, and happy Dussehra in advance. Thank you. Operator: Thank you. On behalf of ICICI Bank, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Before you buy stock in Icici Bank, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Icici Bank wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ICICI Bank (IBN) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

- Interested in ICICI Bank Limited? Here are five stocks we like better. - ICICI Bank's fiscal Q2 profit rose 20.1% year over year to INR 148.43 billion, driven by higher net interest income, fee income and broad-based lending growth. Consolidated profit increased 22.3% to INR 163.33 billion. - Deposits grew 27.1% and loans increased 30% year over year, led by strong business banking and corporate lending, while retail and rural loans rose 14.8%. The bank mobilized approximately $18 billion in FCNR deposits through an RBI swap facility. - Asset quality improved, with the net NPA ratio falling to 0.3% from 0.5% in the prior quarter. However, net interest margin declined to 4.18% and is expected to moderate further in Q3 before potentially recovering in Q4 as the impact of FCNR deposits fades. - 5 NYSE-Listed Emerging Market Stocks For Income Investors ICICI Bank (NYSE:IBN) reported a 20.1% year-over-year increase in second-quarter fiscal 2027 profit after tax to INR 148.43 billion, supported by growth in net interest income, fees and lending across corporate, business banking, retail and rural portfolios. Profit before tax excluding treasury rose 23.4% from a year earlier to INR 199.54 billion, while core operating profit increased 21.8% to INR 208.05 billion. Core operating profit excluding dividends from subsidiaries increased 25% to INR 203.42 billion. → Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? - Great India Stocks to Buy Now The bank's consolidated profit after tax grew 22.3% year over year to INR 163.33 billion. Its treasury operation recorded a loss of INR 2.3 billion during the quarter, compared with a gain of INR 2.2 billion a year earlier, reflecting market movements. Total deposits increased 27.1% year over year and 11.8% sequentially as of Sept. 30, 2026. The bank mobilized about $18 billion in gross foreign currency non-resident, or FCNR, deposits through the Reserve Bank of India swap facility. Excluding FCNR deposits, period-end deposits rose 17% from a year earlier and 3.1% from the prior quarter. → Bank of America Stock Sell-Off Looks Like a Buying Opportunity Loans, including international branches, rose 30% year over year and 12% sequentially. Excluding international-branch loans against FCNR deposits, loans increased 24.1% year over year and 7.3% sequentially. Retail and rural lending grew 14.8% year over year and 3.2% sequentially, representing 43% of the total portfolio including non-fund-based outstanding. Business banking loans rose 33.8% year over year, while domestic corporate loans increased 30.6%. → Palantir's Potential Next Catalyst After Retail Profit-Taking Within retail and rural products, mortgage lending increased 15.3% year over year, personal loans rose 16.6%, and jewel loans climbed 79.4%. Vehicle loans rose 7.8%. The credit-card portfolio declined 9.7% from a year earlier and 0.2% sequentially. Group CFO Anindya Banerjee said retail loan growth has improved over recent quarters, with mortgage and personal-loan growth returning to mid-teen levels. He said corporate loan growth was driven by client demand and pricing, including working-capital needs, shifts from bond and foreign-currency borrowing markets, and some investment activity. "It is not really, in terms of our thinking, a temporary thing from a liquidity perspective," Banerjee said of corporate growth. He said the bank would pursue opportunities across retail and corporate lending that meet its risk-return standards. Net interest income increased 17.7% year over year to INR 253.39 billion. Net interest margin was 4.18%, compared with 4.30% in the same quarter a year earlier and 4.36% in the prior quarter. Excluding interest on an income-tax refund, the previous quarter's margin would have been 4.28%. Banerjee attributed the margin moderation to the larger proportion of overseas assets and a substantial sequential increase in retail term deposits. The cost of deposits rose to 4.50%, from 4.41% in the prior quarter, though it remained below 4.64% a year earlier. The bank expects the full impact of FCNR deposit mobilization on average balances to appear in the third quarter, leading to additional margin moderation. Banerjee said margins should begin to improve in the fourth quarter, even if policy rates do not increase further. He said the bank viewed the FCNR program as a long-term funding opportunity rather than a change in strategy toward prioritizing net interest income over margin. Of the approximately $18 billion raised, he said roughly $10 billion involved loans provided to customers, about $3.6 billion involved loans from partner banks, and more than $4 billion represented customers' own funds. The net non-performing asset ratio improved to 0.3% at Sept. 30 from 0.5% at June 30 and 0.39% a year earlier. The provision coverage ratio on non-performing loans was 75%. Gross NPA additions were INR 48.33 billion, down from INR 50.34 billion in the prior-year quarter. Recoveries and upgrades totaled INR 36.20 billion, resulting in net additions of INR 12.13 billion, compared with INR 13.86 billion a year earlier. Total provisions were INR 8.51 billion, equal to 4.1% of core operating profit and 0.2% of average advances, down from INR 9.14 billion in the prior-year period. The bank held INR 131 billion in contingency provisions, equivalent to about 0.7% of total advances. Banerjee said new NPA formation remained negligible in corporate lending, low in business banking and stable in retail. He said the bank continues to expect normalized credit costs of up to 50 basis points after adjusting for corporate recoveries, FCNR-related standard-asset provisions and seasonal agricultural provisions. Non-interest income excluding treasury increased 12.5% year over year to INR 82.77 billion. Fee income rose 20.1% to INR 77.95 billion, with retail, rural and business-banking customers accounting for about 75% of fees. The quarter included fees from lending facilities backed by FCNR deposits. Operating expenses increased 8.5% year over year. The bank added 145 branches in the first half, ending September with 7,656 branches. Technology spending represented about 11.2% of operating expenses during the first half. Among subsidiaries, ICICI Life's value of new business increased to INR 12.83 billion in the first half from INR 10.49 billion a year earlier, while its value of new business margin reached 26%. ICICI General's second-quarter profit after tax rose to INR 9.46 billion from INR 8.2 billion. ICICI AMC's profit after tax increased to INR 8.89 billion from INR 8.38 billion. The bank's CET1 capital ratio stood at 16.01%, and total capital adequacy was 16.68% at Sept. 30. During the quarter, ICICI Bank also purchased an additional 2% stake in ICICI Life Insurance for INR 14.7 billion. ICICI Bank Limited is a private-sector banking and financial services company headquartered in Mumbai, India. The bank provides a broad range of services to retail customers, businesses, institutions and government entities, including savings and current accounts, deposits, personal and business loans, mortgages, credit cards, payments, investment services and wealth management. Through its corporate and institutional banking operations, ICICI Bank offers working-capital finance, term lending, trade finance, cash-management services, foreign-exchange services, capital-market solutions and other banking products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ICICI Bank Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

HSBC Holdings HSBC reported second-quarter 2026 pre-tax profit of $10.1 billion, which increased 60.4% from the prior-year quarter, primarily reflecting a net favorable impact from notable items of $2.6 billion.Results were aided by an improvement in revenues and a decline in expenses. A fall in expected credit losses and other credit impairment charges (ECL) also supported the results to an extent. Total revenues were $19.12 billion, up 16.1% year over year. The rise was driven by higher net interest income, net fee income and other operating income.Total operating expenses declined 2.4% year over year to $8.71 billion. The decline reflected lower restructuring costs together with the resultant cost reduction benefits from the organizational simplification, and the phasing of performance-related pay accrual relative to second-quarter 2025. These reductions were partly offset by higher planned spend and investment in technology, the impact of inflation and an adverse impact from foreign currency translation differences of $0.1 billion.In the quarter under review, ECL was $1.05 billion, down 1.2% from the prior-year quarter. The charge in the reported quarter primarily comprised stage 3 charges, including $0.2 billion related to the Hong Kong CRE sector.The common equity tier 1 (CET1) ratio, as of June 30, 2026, was 14.1%, down from 14.9% as of Dec. 31, 2025. The leverage ratio was 4.9%, down from 5.3% as of Dec. 31, 2025. The Hong Kong Business: The segment reported $2.55 billion in pre-tax profit, up 24% from the year-ago period. The rise was driven by higher revenues and lower ECL.The UK Business: The segment reported a pre-tax profit of $1.69 billion, up 2.8% from the year-ago quarter. A rise in revenues and lower expenses resulted in the increase.Corporate and Institutional Banking: Pre-tax profit was $3.91 billion, which increased 30.2% year over year. The rise was driven by higher revenues and lower expenses.International Wealth and Premier Banking: Pre-tax profit was $1.39 billion, which increased 53.2% year over year. The rise was driven by higher revenues and lower ECL.Corporate Centre: The segment reported a pre-tax profit of $612 million against a pre-tax loss of $1.28 billion in the year-ago quarter. The company’s board of directors approved a second interim dividend of 10 cents per share. Also, HSBC intends to initiate a share buyback of up to $1 billion, which is expected to be completed by the third-quarter 2026 result announcement. For 2026, management expects banking net interest income (NII) of at least $46 billion.ECL charges as a percentage of average gross loans are expected to be 45bps in 2026 (including held-for-sale loan balances). Over the medium term, the company plans to retain 30-40bps.The company projects growth in target basis operating expenses of 1% for 2026 from that reported in 2025.Management expects growth in revenues from 2026 to 2028, rising to 5% growth in 2028 from 2027.HSBC expects a return on average tangible equity of 17% or better for 2026, 2027 and 2028, excluding notable items.The company intends to manage the CET1 ratio within its medium-term target of 14-14.5%.The dividend payout ratio on a target basis is expected to be 50% in 2026, 2027 and 2028, excluding material notable items and related impacts. HSBC’s strong capital position, a global network and business-simplification initiatives are expected to support its financials. As part of its focus on optimizing returns, the company is divesting operations in underperforming regions and has exited retail banking across multiple markets. These moves position it for improved operating efficiency. HSBC Holdings plc price-consensus-eps-surprise-chart | HSBC Holdings plc Quote Currently, HSBC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Barclays BCS reported second-quarter 2026 net income attributable to ordinary equity holders of £2.26 billion ($3.03 billion), up 36% from the prior-year quarter.An increase in revenues and a strong balance sheet supported BCS’ results. However, the company recorded higher operating expenses in the quarter, which, along with an increase in credit impairment charges, hurt the results to some extent.ICICI Bank Ltd.’s IBN profit after tax for first-quarter fiscal 2027 (ended June 30, 2026) was INR148.05 billion ($1.56 billion), up 16% from the prior-year quarter.IBN’s results were aided by growth in net interest income and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses hurt the results to some extent. 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 HSBC Holdings plc (HSBC) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report ICICI Bank Limited (IBN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UBS Group AG UBS reported a second-quarter 2026 net profit attributable to shareholders of $2.80 billion compared with $2.39 billion in the prior-year quarter. Results were driven by strong performances in the Global Wealth Management, Personal & Corporate Banking, Asset Management and Investment Bank divisions. An increase in total assets and invested assets was also encouraging. However, higher operating expenses acted as a headwind. The company’s second-quarter total revenues increased 13.1% year over year to $13.70 billion. Operating expenses rose 2.4% year over year to $9.99 billion. UBS Group reported total credit loss expenses of $121 million, which declined 25.8% from the year-ago quarter. Global Wealth Management’s operating profit before tax was $1.88 billion, up 56.4% from $1.20 billion in the year-ago quarter. Asset Management’s operating profit before tax was $214 million, up 39.9% from $153 million in the year-ago quarter. Personal & Corporate Banking reported operating profit before tax of $857 million, up 23.3% from $695 million in the year-ago quarter. The Investment Bank unit reported an operating profit before tax of $1.15 billion, up from $557 million in the year-ago quarter. Non-Core & Legacy incurred an operating loss before tax of $203 million in the reported quarter compared with a loss of $250 million in the year-ago quarter. Group Items reported an operating loss before tax of $307 million compared with a loss of $167 million in the year-ago quarter. Total assets rose 1.2% from the previous quarter’s end to $1.71 trillion. UBS’s return on Common Equity Tier 1 (CET1) capital was 15.4% as of June 30, 2026, compared with 13.5% as of June 30, 2025. Risk-weighted assets declined slightly year over year to $503.9 billion. CET1 capital declined marginally year over year to $72.5 billion. As of June 30, 2026, UBS's invested assets were $7.3 trillion, up 10.7% year over year. In the second quarter of 2026, UBS repurchased $1.9 billion worth of shares under its 2026 share repurchase program. The company completed its latest share buyback program and is continuing with another $3 billion program to be completed by the end of the second quarter of 2027 at the latest. UBS plans to repurchase at least $1 billion worth of shares over the next three months. The amount and pace of repurchases will depend on the company’s short-term financial performance and outlook, its ability to maintain a CET1 capital ratio of around 14% and further visibility on the Swiss Parliament’s deliberations regarding the capitalization of foreign subsidiaries. Following the completion of the global migration of former Credit Suisse client accounts onto UBS infrastructure in March 2026, the company entered the final phase of the integration, primarily involving the decommissioning of legacy IT infrastructure. As of June 30, 2026, more than 90% of the legacy Credit Suisse IT applications within the scope of decommissioning were no longer in use, while around 70% had been fully decommissioned. The company remains on track to substantially complete the integration by the end of 2026. In the second quarter of 2026, UBS realized an additional $1.1 billion in gross cost savings. Cumulative gross cost savings reached $12.6 billion at the end of the quarter compared with the combined 2022 cost base of UBS and Credit Suisse. The company continues to target approximately $13.5 billion in annualized exit rate gross cost savings by the end of 2026. Cumulative integration-related expenses totaled $14.2 billion at the end of June 2026, and UBS expects these expenses to reach around $15 billion by the end of the year, assuming constant foreign-exchange rates. As of June 30, 2026, the Non-core and Legacy division had delivered a 68% reduction in risk-weighted assets (RWA) since the second quarter of 2023. UBS had also reduced credit and market RWA to $4 billion, in line with its year-end 2026 ambition. Additionally, the company achieved an 88% reduction in underlying operating expenses, excluding litigation compared with the 2022 baseline. UBS delivered strong second-quarter and first-half 2026 financial performance, supported by robust client momentum across its businesses. The company maintained a solid capital position and continued to invest in its franchise, technology, global capabilities and talent. UBS also continued to make steady progress in integrating Credit Suisse. The planned completion of the integration by the end of 2026, along with its strong capital position, is likely to support the company’s financial performance going forward. UBS Group AG price-consensus-eps-surprise-chart | UBS Group AG Quote Currently, UBS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Barclays BCS reported second-quarter 2026 net income attributable to ordinary equity holders of £2.26 billion ($3.03 billion), up 36% from the prior-year quarter. An increase in revenues and a strong balance sheet supported the BCS’s results. However, the company recorded higher operating expenses in the quarter, which, along with an increase in credit impairment charges, hurt the results to some extent. ICICI Bank Ltd.’s IBN profit after tax for first-quarter fiscal 2027 (ended June 30, 2026) was INR148.05 billion ($1.56 billion), up 16% from the prior-year quarter. IBN’s results were aided by growth in net interest income and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses hurt the results to some extent. 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 UBS Group AG (UBS) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report ICICI Bank Limited (IBN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Barclays BCS reported second-quarter 2026 net income attributable to ordinary equity holders of £2.26 billion ($3.03 billion), up 36% from the prior-year quarter.An increase in revenues and a strong balance sheet supported the results. However, the company recorded higher operating expenses in the quarter, which, along with an increase in credit impairment charges, hurt the results to some extent. Total income was £8.34 billion ($11.19 billion), up 16% year over year.Operating expenses (excluding litigation and conduct costs, and U.K. regulatory levies) of £4.51 billion ($6.05 billion) increased 9% year over year.The cost-to-income ratio was 54%, down from 59% in the year-ago period.Barclays recorded credit impairment charges of £571 million ($766 million), up 22% year over year.Pre-tax income was £3.25 billion ($4.36 billion), up 31% from the prior-year quarter. Total assets, as of June 30, 2026, were £1,730.4 billion ($2,291.4 billion), up 12% from the Dec. 31, 2025, level.Total risk-weighted assets increased 2% from the Dec. 31, 2025, level to £364.8 billion ($483.1 billion) as of June 30, 2026.As of June 30, 2026, the Common Equity Tier 1 (CET1) ratio was 14.3% compared with 14% as of June 30, 2025. The company projects total income of £31.5 billion.NII (excluding Barclays Investment Bank and Head Office) is expected to be more than £13.7 billion. Of this, Barclays U.K. is projected to generate NII of £8.1-£8.3 billion.The cost-to-income ratio is anticipated to be in the high-50s in percentage terms.The loan loss rate is projected to be at the high end of 50-60 basis points through the cycle.The CET1 ratio is expected to be 13-14%, and return on tangible equity (RoTE) is estimated to be more than 12%.Barclays Investment Bank RWAs are expected to be in the mid-50s percentage of Group RWAs. The impacts of regulatory change on RWAs will be in line with the company’s prior guidance of £19-£26 billion.In terms of capital returns, Barclays plans to return at least £10 billion between 2024 and 2026 through dividends and share buybacks, with a continued preference for buybacks. The company also expects a progressive increase in total capital returns compared with 2025, including planned £2 billion in dividends for 2026. The company expects total income to witness a compound annual growth rate (CAGR) of more than 5% between 2025 and 2028.The cost-to-income ratio is anticipated to be in the low 50s in percentage terms. This includes gross efficiency savings of more than £2 billion during 2026-2028.Management expects the loan loss rate to be 50-60 basis points through the cycle.The CET1 ratio is expected to be 13-14%, and RoTE is estimated to be more than 14%.Barclays Investment Bank RWAs are expected to be 50% of the Group RWAs.In terms of capital returns, Barclays plans to return more than £15 billion of capital to its shareholders between 2026 and 2028 through dividends and share buybacks, providing capacity for additional investment and growth beyond the current plan. In June, BCS agreed to acquire GoHenry’s U.K. business from Acorns, which will strengthen its presence in youth banking.In May, Barclays’ U.S. consumer banking arm, Barclays Bank Delaware, acquired Best Egg, a leading U.S. digital personal loan platform, for $800 million. The deal will strengthen its U.S. consumer finance capabilities and broaden its unsecured lending portfolio.Given Barclays’ restructuring and business-simplification efforts, its operating efficiency is expected to improve in the quarters ahead. The company’s cost-saving efforts will likely keep aiding financials. However, uncertainties around capital markets performance remain concerning. Barclays PLC price-consensus-eps-surprise-chart | Barclays PLC Quote Currently, Barclays carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ICICI Bank Ltd.’s IBN profit after tax for first-quarter fiscal 2027 (ended June 30, 2026) was INR148.05 billion ($1.56 billion), up 16% from the prior-year quarter.IBN’s results were aided by growth in net interest income and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses hurt the results to some extent.UBS Group AG UBS is scheduled to report quarterly results on July 31.The Zacks Consensus Estimate for UBS’ quarterly earnings has been unchanged at 90 cents per share over the past seven days. The figure implies a 25% rise from the prior-year quarter’s reported number. 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 UBS Group AG (UBS) : Free Stock Analysis Report ICICI Bank Limited (IBN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ICICI Bank Ltd (NYSE:IBN) reported a 20.9% year-on-year growth in profit before tax, excluding treasury, reaching Rs.189.75 billion. The core operating profit increased by 15.6% year-on-year to Rs.202.35 billion. Total deposits grew by 14% year-on-year, indicating strong customer trust and financial stability. The retail loan portfolio grew by 12% year-on-year, showcasing robust demand in the retail segment. The bank's capital position remains strong with a CET1 ratio of 16.19% and a total capital adequacy ratio of 16.84%. The net NPA ratio slightly increased to 0.35% from 0.33% in the previous quarter. The credit card portfolio declined by 1.9% year-on-year, indicating challenges in this segment. There were net additions of Rs.27.07 billion to gross NPAs, highlighting ongoing asset quality issues. The profit after tax of ICICI General decreased to Rs.4.03 billion from Rs.7.47 billion in the previous year. The bank's operating expenses increased by 10.4% year-on-year, which could impact profitability. Warning! GuruFocus has detected 4 Warning Sign with IBN. Is IBN fairly valued? Test your thesis with our free DCF calculator. Q: Given the strong loan growth in a seasonally weak quarter, do you expect to sustain high-teen loan growth throughout the year? Also, could you comment on the aggressive growth in foreign loans this quarter? A: The loan growth reflects positive momentum from policy measures and high-frequency indicators. We will continue to explore opportunities as they arise. Regarding foreign loans, growth is driven by increased trade-related activities and borrowing by overseas operations of Indian companies. We expect this momentum to continue. Q: Despite reversals on Agri, overall yields have held steady. Were there any offsetting recoveries during the quarter? A: The stable yields are due to our disciplined approach to deposit and loan pricing, as well as management of the government securities book. There is always some level of collection each quarter, and interest on income tax refunds also contributed to the stability. Q: Fee income has accelerated significantly. What is driving this growth, and should we expect it to align with overall balance sheet growth going forward? A: The growth in fee income is partly due to a base effect from last year and reflects underlying business momentum across all segments. We will continue to focus on fee income as business volumes grow. Q: Could you discuss the potential impact on margins and profitability from FCNR deposits raised via self-leverage versus tie-ups with foreign banks? A: The process has just started, and it will involve a combination of unleveraged deposits and those with leverage. There may be some impact on NIM, but from an earnings perspective, it is positive. Q: With strong loan growth, particularly in business banking, is this the right time to accelerate given macroeconomic uncertainties like the energy shock and El Nino? A: We are monitoring the portfolio closely and factoring in macroeconomic conditions into our customer selection. We feel comfortable with the portfolio's stability and are open to growth opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ICICI Bank Ltd.’s IBN profit after tax for first-quarter fiscal 2027 (ended June 30) was INR148.05 billion ($1.56 billion), up 16% from the prior-year quarter.Results were aided by growth in net interest income (NII) and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses hurt the results to some extent. NII grew 12.7% year over year to INR243.84 billion ($2.58 billion). The net interest margin was 4.36%, up 2 basis points.Non-interest income (excluding treasury) was INR84.25 billion ($890.43 million), growing 16% year over year. Fee income increased 23.5% to INR72.86 billion ($770.05 million).In the reported quarter, IBN recorded treasury income of INR1.51 billion ($15.96 million), down 87.8% from the prior-year quarter.Operating expenses were INR125.74 billion ($1.33 billion), up 10.4% year over year. As of June 30, 2026, ICICI Bank’s total advances were INR16,312.60 billion ($172.34 billion), up 5% sequentially. Growth was driven by a rise in retail loans, rural loans, business banking loans, and domestic corporate and other loans.Total deposits were INR18,335.86 billion ($193.71 billion), up 2.2% from the previous quarter. As of June 30, 2026, the net non-performing assets (NPA) ratio was 0.35%, which declined from 0.41% as of June 30, 2025. Recoveries and upgrades (excluding write-offs and sales) of NPAs were INR28.45 billion ($300.69 million) in the reported quarter.In the reported quarter, there were net additions of INR27.07 billion ($286.10 million) to gross NPA. Gross NPA additions were INR55.52 billion ($586.79 million), while gross NPA written off was INR16.73 billion ($176.82 million).Provisions (excluding provision for tax) were INR12.60 billion ($133.17 million), down 30.6% from the prior-year quarter. In compliance with the Reserve Bank of India's guidelines on Basel III norms, ICICI Bank's total capital adequacy was 16.84%. The Common Equity Tier 1 ratio was 16.19% as of June 30, 2026. Mounting 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-eps-surprise-chart | ICICI Bank Limited Quote ICICI Bank currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Barclays BCS is scheduled to announce quarterly results on July 28.The consensus estimate for BCS’ quarterly earnings has been unchanged at 89 cents per share over the past week. The figure implies an increase of 43.6% from the prior-year quarter’s actual.UBS Group AG UBS is scheduled to report quarterly results on July 31.The Zacks Consensus Estimate for UBS’ quarterly earnings has been unchanged at 90 cents per share over the past seven days. The figure implies a 25% rise from the prior-year quarter’s reported number. 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 ICICI Bank Limited (IBN) : Free Stock Analysis Report Barclays PLC (BCS) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ICICI Bank Limited? Here are five stocks we like better. ICICI Bank posted strong Q1 fiscal 2027 results, with profit after tax up 15.9% year over year and profit before tax excluding treasury rising 20.9%, supported by broad-based loan growth, stable margins and healthy deposit expansion. Loan growth was especially robust across multiple segments, with overall loans up 19.6% year over year, driven by rural, business banking and corporate lending, while deposits increased 14% and capital and liquidity remained strong. Asset quality stayed steady, with the net NPA ratio at 0.35% and provisions lower than a year ago, while fee income also surged 23.5%, helping offset a smaller treasury gain and higher operating expenses. 5 NYSE-Listed Emerging Market Stocks For Income Investors ICICI Bank (NYSE:IBN) reported higher first-quarter earnings for fiscal 2027, with management citing broad-based loan growth, stable margins, healthy deposit expansion and continued asset-quality discipline. Sandeep Bakhshi, managing director and chief executive officer, said the bank’s strategic focus remains on growing profit before tax excluding treasury through a “360-degree customer-centric approach” across ecosystems and micro markets. Profit before tax excluding treasury rose 20.9% year over year to INR 189.75 billion in the quarter, while core operating profit increased 15.6% to INR 202.35 billion. Profit after tax grew 15.9% year over year to INR 148.05 billion. → Cintas Keeps Beating Expectations—And the Story Isn’t Over Great India Stocks to Buy Now “Looking ahead, we see many opportunities to drive risk-calibrated profitable growth and grow market share across key segments,” Bakhshi said. He added that the bank remains focused on maintaining “a strong balance sheet, prudent provisioning, and healthy levels of capital” while delivering sustainable returns. The bank’s overall loan portfolio, including international branches, grew 19.6% year over year and 5% sequentially as of June 30, 2026. Domestic loans increased 18.8% from a year earlier and 4.6% from the previous quarter. → Sandisk: What the Chart Is Trying to Tell Us Bakhshi said the retail loan portfolio grew 12% year over year and 2.7% sequentially, while the rural portfolio, including gold loans, rose 35.4% year over year and 6.2% sequentially. Business banking loans increased 28.2% year over year and 6.9% sequentially, and the domestic corporate portfolio grew 18.5% year over year and 6.9% sequentially. Anindya Banerjee, group chief financial officer, provided additional detail on retail products. Mortgages grew 14.6% year over year, personal loans rose 12.9%, and commercial vehicle and equipment loans increased 12.8%. Auto loans grew 3.6%, while the credit card portfolio declined 1.9% year over year and 1.7% sequentially. → MarketBeat Week in Review – 07/13- 07/17 During the question-and-answer session, Banerjee said loan growth reflected stronger systemwide momentum over the past several quarters as policy measures took effect. “The momentum continues to be pretty good as far as we can see it,” he said, while noting that the bank would continue evaluating opportunities as they arise. On corporate loan growth, Banerjee said part of the increase came from a shift away from bond-market funding, as well as working capital utilization and corporates maintaining liquidity buffers. He said the bank saw “a healthy pipeline at reasonable rates” during the quarter. Total deposits grew 14% year over year and 2.2% sequentially as of June 30, 2026. Average deposits rose 14% year over year and 6.1% sequentially, while average current and savings account deposits increased 12.1% year over year and 4.7% sequentially. The bank’s average liquidity coverage ratio for the quarter was about 124%. ICICI Bank’s capital position also remained strong, with a common equity tier 1 ratio of 16.19% and a total capital adequacy ratio of 16.84% at quarter-end. Asked about foreign currency non-resident deposits, or FCNR, Banerjee said the bank had not set a public target and that the program was in early stages. He said the all-in cost after hedging could be around 6.30% to 6.40%, which he described as competitive compared with wholesale lending rates. He also said the program could support incremental overseas loan growth as funds are deployed. Net interest income rose 12.7% year over year and 6.1% sequentially to INR 243.84 billion. Net interest margin was 4.36%, compared with 4.32% in the previous quarter and 4.34% in the year-earlier quarter. Banerjee said the cost of deposits was 4.41%, down from 4.85% in the year-earlier quarter. Excluding the benefit of interest on income tax refunds, the net interest margin would have been 4.28%, compared with 4.27% in both the previous quarter and the year-earlier quarter. In response to analyst questions, Banerjee said the margin performance reflected the bank’s funding franchise, disciplined approach to deposit and loan pricing, and management of its government securities book. He said margins should remain range-bound under current conditions, assuming no major policy rate movements, though he noted that FCNR-related activity could have some impact over time. The net non-performing asset ratio was 0.35% as of June 30, 2026, compared with 0.33% at March 31, 2026, and 0.41% a year earlier. Gross NPA additions were INR 55.52 billion in the quarter, down from INR 62.45 billion in the first quarter of the prior year. Net additions to gross NPAs were INR 27.07 billion, compared with INR 30.34 billion a year earlier. Banerjee said gross NPA additions from the retail and rural portfolios totaled INR 43.31 billion, including INR 7.06 billion from the Kisan Credit Card portfolio. He said the bank typically sees higher NPA additions from that portfolio in the first and third quarters of a fiscal year. Total provisions were INR 12.60 billion, equivalent to 6.2% of core operating profit and 0.32% of average advances. That compared with INR 18.15 billion in the year-earlier quarter. The provisioning coverage ratio on non-performing loans was 74.7% at June 30, 2026, and the bank continued to hold contingency provisions of INR 131 billion, or about 0.8% of total advances. Banerjee said that, adjusting for chunky recoveries, credit costs would be around 50 basis points on a more normalized basis. He also said the bank continues remediation work on an agricultural priority sector portfolio provision directed by the Reserve Bank of India, but did not provide a timeline for any potential writeback. Non-interest income excluding treasury grew 16% year over year to INR 84.25 billion. Fee income rose 23.5% to INR 72.86 billion, which Banerjee said reflected both business momentum and a low base in the prior-year quarter. Fees from retail, rural and business banking customers accounted for about 72% of total fees. Operating expenses increased 10.4% year over year. Employee expenses rose 5.5%, mainly due to annual increments and promotions, while non-employee expenses increased 13.8%. The bank added 97 branches during the quarter, bringing its total branch count to 7,608 as of June 30, 2026. Technology expenses represented about 11.4% of operating expenses. The bank reported a treasury gain of INR 1.51 billion, compared with a treasury gain of INR 12.41 billion in the year-earlier quarter. Consolidated profit after tax rose 13.9% year over year to INR 154.4 billion. Among key subsidiaries, ICICI Life reported higher annualized premium equivalent, value of new business and profit after tax. ICICI General’s gross direct premium income increased, but profit after tax declined to INR 4.03 billion from INR 7.47 billion a year earlier, with results including the impact of higher reserves following a recent judicial pronouncement. ICICI AMC and ICICI Securities both reported higher profits after tax on an Ind AS basis. ICICI Bank Limited is an Indian multinational banking and financial services company that provides a broad range of products and services to retail, corporate and institutional customers. The bank traces its origins to the Industrial Credit and Investment Corporation of India, founded in 1955, and was converted into a commercial bank during the 1990s as part of its evolution into a full-service financial institution. It is one of India's largest private-sector banks and is listed in the United States as an American depositary receipt under the ticker IBN. The bank's core activities include retail banking (deposit accounts, consumer loans, mortgages, credit cards and payments), corporate and commercial banking (working capital, term lending, trade finance and cash management), and treasury operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ICICI Bank Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.