On Jul 3, 2014, we issued an updated research report on
ICICI Bank Ltd.
). The company reported robust fourth-quarter fiscal 2014 results,
driven by growth in fee income and net interest income.
In fiscal 2014, ICICI Bank's fee revenues rose 12% year over year.
Further, an improvement in asset mix and enhanced pricing power are
expected to support margins in the near term.
Additionally, ICICI Bank has been marketing retail deposits on a
large scale, chiefly to lower its funding cost and create a stable
funding base. As of Mar 31, 2014, retail loans grew 23% from the
year-ago period. This makes the company well positioned to deal
with a more challenging rate environment.
Given the impressive fourth-quarter results, the Zacks Consensus
Estimate depicted bullish response over the last 60 days. The Zacks
Consensus Estimate for fiscal 2015 climbed 3.4% to $3.33 per ADR,
while for fiscal 2016 it was $4.22 per ADR.
On the flip side, mounting operating expenses remain a major
headwind for ICICI Bank. With the company continuing to strengthen
its network, we anticipate non-interest expenses to rise going
ICICI Bank currently has a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Some better-ranked foreign banks include
BBVA Banco Franc
Mitsubishi UFJ Financial Group, Inc.
The Royal Bank of Scotland Group plc
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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ICICI BANK LTD (IBN): Free Stock Analysis
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