Are ICICI Bank latest results good or bad?

ICICI Bank's latest financial results for Q2 FY26 reflect a complex operational landscape. The bank reported a net profit of ₹14,318 crores, which shows a year-on-year growth of 3.30%, indicating its ability to maintain profitability amidst competitive pressures. However, this figure represents a slight decline of 0.53% compared to the previous quarter, suggesting some near-term challenges in sustaining profit momentum.
Interest earned was reported at ₹48,181 crores, marking a 1.83% decrease from the prior quarter but a 4.00% increase year-on-year. This sequential decline may reflect a normalization after a particularly strong performance in the preceding quarter, while the year-on-year growth highlights the bank's capacity to expand its earning asset base.

The net interest income stood at ₹26,164 crores, showing a marginal increase of 0.67% quarter-on-quarter and an 8.56% rise year-on-year, which underscores the bank's operational efficiency. However, the operating profit before provisions decreased by 6.30% from the previous quarter, primarily due to a significant drop in other income.

ICICI Bank's balance sheet remains robust, with a capital adequacy ratio of 16.14% and a return on equity of 16.09%, reflecting strong capital efficiency and a solid foundation for future growth. The bank's ability to attract deposits is evident, with a 13.72% year-on-year increase in total deposits, indicating sustained customer confidence.

In terms of market performance, ICICI Bank has outperformed the Sensex over various timeframes, achieving a 16.59% return over the past year compared to the Sensex's 3.64% gain. This performance underscores the bank's strong positioning within the private banking sector.

Overall, while ICICI Bank demonstrated healthy year-on-year growth in several key metrics, the sequential declines in profit and interest earned indicate areas for attention. The company saw an adjustment in its evaluation, reflecting these mixed operational trends.