ICICI Bank Announces Performance Review – Quarter Ended June 30, 2012

The Board of Directors of ICICI Bank Limited (NYSE:IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended June 30, 2012.

Profit & loss account
  • Standalone profit before tax increased 39% to Rs 2,483 crore (US$ 446 million) for the quarter ended June 30, 2012 (Q1-2013) from Rs 1,780 crore (US$ 320 million) for the quarter ended June 30, 2011 (Q1-2012).
  • Standalone profit after tax increased 36% to Rs 1,815 crore (US$ 326 million) for Q1-2013 from Rs 1,332 crore (US$ 240 million) for Q1-2012.
  • Net interest income increased 32% to Rs 3,193 crore (US$ 574 million) in Q1-2013 from Rs 2,411 crore (US$ 434 million) in Q1-2012.
  • Net interest margin improved to 3.01% for Q1-2013 from 2.61% for Q1-2012.
  • Non interest income increased by 14% to Rs 1,880 crore (US$ 338 million) in Q1-2013 from Rs 1,643 crore (US$ 295 million) in Q1-2012.
  • Cost-to-income ratio reduced to 41.8% in Q1-2013 from 44.7% in Q1-2012.
  • Provisions were at Rs 466 crore (US$ 84 million) in Q1-2013 compared to Rs 454 crore (US$ 82 million) in Q1-2012. Provisions in Q1-2013 include general provisions of Rs 76 crore (US$ 14 million) on standard assets, reflecting the growth in the loan portfolio.

Operating review

The Bank has continued with its strategy of pursuing profitable growth. In this direction, the Bank continues to leverage its strong corporate franchise, its international presence and its expanded branch network in India. At June 30, 2012, the Bank had 2,755 branches, the largest branch network among private sector banks in the country. The Bank has also increased its ATM network to 9,366 ATMs at June 30, 2012 as compared to 6,425 at June 30, 2011.

Credit growth

Advances increased by 22% year-on-year to Rs 268,430 crore (US$ 48.3 billion) at June 30, 2012 from Rs 220,693 crore (US$ 39.7 billion) at June 30, 2011.

Deposit growth

At June 30, 2012, savings account deposits increased by 17% year-on-year to Rs 77,923 crore (US$ 14.0 billion). Current account deposits were Rs 30,754 crore (US$ 5.5 billion) at June 30, 2012. The CASA ratio was at 40.6% at June 30, 2012. The average CASA ratio remained stable at 39.1% in Q1-2013.

Capital adequacy

The Bank’s capital adequacy at June 30, 2012 as per Reserve Bank of India’s guidelines on Basel II norms was 18.54% and Tier-1 capital adequacy was 12.78%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.

Asset quality

Net non-performing assets decreased by 17% to Rs 1,941 crore (US$ 349 million) at June 30, 2012 from Rs 2,351 crore (US$ 423 million) at June 30, 2011. The Bank’s net non-performing asset ratio decreased to 0.61% at June 30, 2012 from 0.91% at June 30, 2011 and 0.62% at March 31, 2012. The Bank’s provision coverage ratio computed in accordance with the RBI guidelines at June 30, 2012 was 80.6% compared to 76.9% at June 30, 2011. Net restructured assets at June 30, 2012 were Rs 4,172 crore (US$ 750 million) compared to Rs 4,256 crore (US$ 765 million) at March 31, 2012.

Consolidated profits

Consolidated profit after tax increased 25% to Rs 2,077 crore (US$ 373 million) for Q1-2013 from Rs 1,667 crore (US$ 300 million) for Q1-2012. The consolidated return on equity improved from 12.0% in Q1-2012 to 13.3% in Q1-2013.

Insurance subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) was the largest private sector life insurer based on new business retail weighted received premium during Q1-2013. ICICI Life’s profit after tax for Q1-2013 was Rs 349 crore (US$ 63 million) compared to Rs 339 crore (US$ 61 million) for Q1-2012. ICICI Life’s annualised premium equivalent (APE) increased by 29% to Rs 570 crore (US$ 102 million) in Q1-2013 from Rs 443 crore (US$ 80 million) in Q1-2012. The assets under management at June 30, 2012 were Rs 70,435 crore (US$ 12.7 billion).

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector during Q1-2013. The gross premium income of ICICI General increased by 18% to Rs 1,532 crore (US$ 275 million) in Q1-2013 from Rs 1,303 crore (US$ 234 million) in Q1-2012. ICICI General’s profit after tax for Q1-2013 was Rs 83 crore (US$ 15 million) compared to Rs 40 crore (US$ 7 million) for Q1-2012.

Summary Profit and Loss Statement (as per unconsolidated Indian GAAP accounts)
 

Rs crore
 
  Q1-2012 Q1-2013 FY2012
Net interest income 2,411   3,193   10,734  
Non-interest income 1,643   1,880   7,502  
- Fee income 1,578   1,647   6,707  
- Lease and other income 90   254   808  
- Treasury income (25 ) (21 ) (13 )
Less:      
Operating expense 1 1,820   2,124   7,850  
Operating profit 2,234   2,949   10,386  
Less: Provisions 454   466   1,583  
Profit before tax 1,780   2,483   8,803  
Less: Tax 448   668   2,338  
Profit after tax 1,332   1,815   6,465  
 

1. Includes commissions paid to direct marketing agents (DMAs) for origination of retail loans and lease depreciation.

2. Prior period figures have been regrouped/re-arranged where necessary.

Summary Balance Sheet
 

Rs crore
 
  At

June 30, 2011
 

June 30, 2012
 

March 31, 2012
(Audited)   (Audited)   (Audited)
Capital and Liabilities          
Capital 1,152   1,153   1,153
Employee stock options outstanding 1   3   2
Reserves and surplus 55,308   61,868   59,250
Deposits 230,678   267,794   255,500
Borrowings (includes subordinated debt) 1 114,051   137,207   140,165
Other liabilities 14,025   15,469   17,577
Total Capital and Liabilities 415,215   483,494   473,647
           
Assets          
Cash and balances with Reserve Bank of India 19,218   17,951   20,461
Balances with banks and money at call and short notice 15,676   18,325   15,768
Investments 139,556   155,132   159,560
Advances 220,693   268,430   253,728
Fixed assets 4,699   4,668   4,615
Other assets 15,373   18,988   19,515
Total Assets 415,215   483,494   473,647
 

1. Borrowings include preference share capital of Rs 350 crore.

All financial and other information in this press release, other than financial and other information for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for ICICI Bank Limited only unless specifically stated to be on a consolidated basis for ICICI Bank Limited and its subsidiaries. Please also refer to the statement of audited unconsolidated, consolidated and segmental results required by Indian regulations that has, along with this release, been filed with the stock exchanges in India where ICICI Bank’s equity shares are listed and with the New York Stock Exchange and the US Securities Exchange Commission, and is available on our website www.icicibank.com .

Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology, our rural expansion, our exploration of merger and acquisition opportunities, our ability to integrate recent or future mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage the increased complexity of the risks we face following our rapid international growth, future levels of impaired loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit and investment losses, technological changes, investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in India and other jurisdictions on us, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature or level of credit spreads, interest spreads from time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

This release does not constitute an offer of securities.

For further press queries please call Sujit Ganguli at 91-22-2653 8525 or email ganguli.sujit@icicibank.com .

For investor queries please call Rakesh Mookim at 91-22-2653 6114 or email ir@icicibank.com .

1 crore = 10.0 million

US$ amounts represent convenience translations at US$1= Rs 55.62

UNCONSOLIDATED FINANCIAL RESULTS

(Rs in crore)
 
Sr. No. Particulars Three months ended Year ended
June

30, 2012
March

31, 2012
June

30, 2011
March

31, 2012
(Audited) (Unaudited) (Audited) (Audited)
1. Interest earned (a)+(b)+(c)+(d) 9,545.65   9,174.64   7,618.52   33,542.65  
a) Interest/discount on advances/bills 6,455.83   6,128.18   4,935.13   22,129.89  
b) Income on investments 2,701.91   2,615.47   2,251.03   9,684.02  
c) Interest on balances with Reserve Bank of India and other inter-bank funds 123.61   127.93   113.83   491.14  
d) Others 264.30   303.06   318.53   1,237.60  
2. Other income 1,879.92   2,228.46   1,642.89   7,502.76  
3. TOTAL INCOME (1)+(2) 11,425.57   11,403.10   9,261.41   41,045.41  
4. Interest expended 6,352.71   6,069.87   5,207.60   22,808.50  
5. Operating expenses (e)+(f) 2,123.53   2,221.64   1,819.78   7,850.44  
e) Employee cost 987.03   1,103.10   732.85   3,515.28  
f) Other operating expenses 1,136.50   1,118.54   1,086.93   4,335.16  
6. TOTAL EXPENDITURE (4)+(5)

(excluding provisions and contingencies)
8,476.24   8,291.51   7,027.38   30,658.94  
7. OPERATING PROFIT (3)–(6)

(Profit before provisions and contingencies)
2,949.33   3,111.59   2,234.03   10,386.47  
8. Provisions (other than tax) and contingencies 465.87   469.30   453.86   1,583.04  
9. Exceptional items        
10. PROFIT/(LOSS) FROM ORDINARY ACTIVITIES BEFORE TAX (7)–(8)–(9) 2,483.46   2,642.29   1,780.17   8,803.43  
11. Tax expense (g)+(h) 668.41   740.53   447.97   2,338.17  
g) Current period tax 736.54   629.07   527.03   2,193.52  
h) Deferred tax adjustment (68.13 ) 111.46   (79.06 ) 144.65  
12. NET PROFIT/(LOSS) FROM ORDINARY ACTIVITIES AFTER TAX (10)–(11) 1,815.05   1,901.76   1,332.20   6,465.26  
13. Extraordinary items (net of tax expense)        
14. NET PROFIT/(LOSS) FOR THE PERIOD (12)–(13) 1,815.05   1,901.76   1,332.20   6,465.26  
15.

Paid-up equity share capital (face value Rs 10/-)
1,152.93   1,152.77   1,152.18   1,152.77  
16. Reserves excluding revaluation reserves 61,867.68   59,250.09   55,308.14   59,250.09  
17. Analytical ratios        
i) Percentage of shares held by Government of India 0.01        
ii) Capital adequacy ratio 18.54 % 18.52 % 19.57 % 18.52 %
iii) Earnings per share (EPS)        

a) Basic EPS before and after extraordinary items, net of tax expense (not annualised for three months) (in Rs)
15.74   16.50   11.56   56.11  

b) Diluted EPS before and after extraordinary items, net of tax expense (not annualised for three months) (in Rs)
15.71   16.46   11.51   55.95  
18. NPA Ratio 1        
i) Gross non-performing advances (net of write-off) 9,816.63   9,475.33   9,982.76   9,475.33  
ii) Net non-performing advances 1,904.99   1,860.84   2,302.52   1,860.84  
iii) % of gross non-performing advances (net of write-off) to gross advances 3.54 % 3.62 % 4.36 % 3.62 %
iv) % of net non-performing advances to net advances 0.71 % 0.73 % 1.04 % 0.73 %
19. Return on assets (annualised) 1.57 % 1.69 % 1.30 % 1.50 %
20. Public shareholding        
i) No. of shares 1,152,874,294   1,152,714,442   1,152,129,421   1,152,714,442  
ii) Percentage of shareholding 100   100   100   100  
21. Promoter and promoter group shareholding

 

 

 

 

 

 

 
i) Pledged/encumbered

 

 

 

 

 

 

 

 
a) No. of shares

 

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b) Percentage of shares (as a % of the total shareholding of promoter and promoter group)

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c) Percentage of shares (as a % of the total share capital of the Bank)

 

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ii) Non-encumbered

 

 

 

 
a) No. of shares

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b) Percentage of shares (as a % of the total shareholding of promoter and promoter group)

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c) Percentage of shares (as a % of the total share capital of the Bank)

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1. At June 30, 2012, the percentage of gross non-performing customer assets to gross customer assets was 3.04% and net non-performing customer assets to net customer assets was 0.61%. Customer assets include advances and credit substitutes.

SUMMARISED UNCONSOLIDATED BALANCE SHEET

 
 

(Rs in crore)
 
Particulars At
June 30, 2012   June 30, 2011   March 31,2012
(Audited)   (Audited)   (Audited)
Capital and Liabilities          
Capital 1,152.93   1,152.18   1,152.77
Employees stock options outstanding 2.90   0.81   2.39
Reserves and surplus 61,867.68   55,308.14   59,250.09
Deposits 267,794.23   230,677.76   255,499.96
Borrowings (includes preference shares and subordinated debt) 137,206.55   114,051.03   140,164.90
Other liabilities 15,469.84   14,025.37   17,576.98
Total Capital and Liabilities 483,494.13   415,215.29   473,647.09
           
Assets          
Cash and balances with Reserve Bank of India 17,951.32   19,218.36   20,461.30
Balances with banks and money at call and short notice 18,324.49   15,676.01   15,768.02
Investments 155,132.45   139,555.95   159,560.04
Advances 268,429.89   220,693.03   253,727.66
Fixed assets 4,668.14   4,699.42   4,614.68
Other assets 18,987.84   15,372.52   19,515.39
Total Assets 483,494.13   415,215.29   473,647.09
   

CONSOLIDATED FINANCIAL RESULTS

(Rs in crore)
 
Sr. No. Particulars Three months ended Year ended
June

30, 2012
March

31, 2012
June

30, 2011
March

31, 2012
(Unaudited) (Unaudited) (Unaudited) (Audited)
1. Total income 16,639.71 19,300.53 14,749.79 66,658.28
2. Net profit 2,076.58 1,810.27 1,666.77 7,642.94
3. Earnings per share (EPS)        

a) Basic EPS (not annualised for three months)(in Rs)
18.01 15.71 14.47 66.33

b) Diluted EPS (not annualised for three months)(in Rs)
17.94 15.69 14.37 66.06
 

UNCONSOLIDATED SEGMENTAL RESULTS OF ICICI BANK LIMITED
 

(Rs in crore)
 
Sr. No. Particulars Three months ended Year ended
June

30, 2012
March

31, 2012
June

30, 2011
March

31, 2012
(Audited) (Unaudited) (Audited) (Audited)
1. Segment revenue  
a Retail Banking 5,464.05   5,224.15   4,682.83   19,711.27  
b Wholesale Banking 7,248.57   7,384.22   5,644.05   26,171.31  
c Treasury 8,509.06   8,293.98   7,013.95   30,141.42  
d Other Banking 82.06   94.70   70.02   282.18  
  Total segment revenue 21,303.74   20,997.05   17,410.85   76,306.18  
  Less: Inter segment revenue 9,878.17   9,593.95   8,149.44   35,260.77  
  Income from operations 11,425.57   11,403.10   9,261.41   41,045.41  
2. Segmental results (i.e. Profit before tax)        
a Retail Banking 142.84   208.08   (84.14 ) 549.99  
b Wholesale Banking 1,588.00   1,749.78   1,205.52   6,207.73  
c Treasury 799.17   700.26   635.05   2,080.68  
d Other Banking (46.55 ) (15.83 ) 23.74   (34.97 )
  Total segment results 2,483.46   2,642.29   1,780.17   8,803.43  
  Unallocated expenses        
  Profit before tax 2,483.46   2,642.29   1,780.17   8,803.43  
3. Capital employed (i.e. Segment assets – Segment liabilities)  
a Retail Banking (115,832.84 ) (106,850.82 ) (90,850.77 ) (106,850.82 )
b Wholesale Banking 115,942.39   106,384.77   82,868.20   106,384.77  
c Treasury 55,039.02   53,552.58   58,192.33   53,552.58  
d Other Banking 2,269.17   1,717.58   817.29   1,717.58  
e Unallocated 5,605.77   5,601.14   5,434.08   5,601.14  
  Total 63,023.51   60,405.25   56,461.13   60,405.25  
 

Notes on segmental results:

1. The disclosure on segmental reporting has been prepared in accordance with Reserve Bank of India (RBI) circular no. DBOD.No.BP.BC.81/21.04.018/2006-07 dated April 18, 2007 on guidelines on enhanced disclosures on ”Segmental Reporting” which is effective from the reporting period ended March 31, 2008.

2. “Retail Banking” includes exposures which satisfy the four criteria of orientation, product, granularity and low value of individual exposures for retail exposures laid down in Basel Committee on Banking Supervision document “International Convergence of Capital Measurement and Capital Standards: A Revised Framework”.

3. “Wholesale Banking” includes all advances to trusts, partnership firms, companies and statutory bodies, which are not included under Retail Banking.

4. “Treasury“ includes the entire investment portfolio of the Bank.

5. “Other Banking” includes hire purchase and leasing operations and other items not attributable to any particular business segment.

Notes:

1. The financial statements have been prepared in accordance with Accounting Standard (AS) 25 on ‘Interim Financial Reporting’.

2. The provision coverage ratio of the Bank at June 30, 2012, computed as per the RBI circular dated December 1, 2009, is 80.6% (March 31, 2012: 80.4%; June 30, 2011: 76.9%).

3. In accordance with Insurance Regulatory and Development Authority (IRDA) guidelines, ICICI Lombard General Insurance Company (ICICI General), together with all other general insurance companies participated in the Indian Motor Third Party Insurance Pool (the Pool), administered by the General Insurance Corporation of India (GIC) from April 1, 2007. The Pool covered reinsurance of third party risks of commercial vehicles. IRDA through its orders dated December 23, 2011, January 3, 2012 and March 22, 2012 has directed the dismantling of the Pool on a clean cut basis and advised recognition of the Pool liabilities as per loss ratios estimated by GAD UK (“GAD Estimates”) for underwriting years commencing from the year ended March 31, 2008 to year ended March 31, 2012. ICICI General recognised the additional liabilities of the Pool in the three months ended March 31, 2012 (Q4-2012) and accordingly the Bank’s consolidated net profit after tax for the year ended March 31, 2012 and Q4-2012 includes impact of additional Pool losses of Rs 503.03 crore in line with Bank’s shareholding in ICICI General.

4. During the three months ended June 30, 2012, the Bank has allotted 159,852 equity shares of Rs 10/- each pursuant to exercise of employee stock options.

5. Status of equity investors’ complaints/grievances for the three months ended June 30, 2012:
Opening balance   Additions   Disposals   Closing balance
0   29   29   0
     

6. Previous period/year figures have been re-grouped/re-classified where necessary to conform to current period classification.

7. The above financial results have been approved by the Board of Directors at its meeting held on July 27, 2012.

8. The above unconsolidated financial results are audited by the statutory auditors, S.R. Batliboi & Co., Chartered Accountants.

9. The amounts for three months ended March 31, 2012 are balancing amounts between the amounts as per the audited accounts for the year ended March 31, 2012 and nine months ended December 31, 2011.

10. Rs 1 crore = Rs 10 million.

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