Performance Review – Quarter ended September 30, 2013
· 20% year-on-year increase in standalone profit after tax to `
2,352 crore (US$ 376 million) for the quarter ended
September 30, 2013 (Q2-2014) after fully recognising markto-
market provisions on investment portfolio
· Current & savings account (CASA) deposits increased by `
8,073 crore (US$ 1.29 billion) in Q2-2014; year-on-year
growth of 17% in CASA deposits
· CASA ratio maintained at 43.3% at September 30, 2013
· Net interest margin (NIM) increased to 3.31% in Q2-2014
compared to 3.00% in Q2-2013; domestic NIM at 3.65%
· Total capital adequacy of 16.50% and Tier-1 capital adequacy
of 11.33% as per Reserve Bank of India’s guidelines on Basel
III norms (17.21% and 12.04% including profits for half year
ended September 30, 2013 )
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 September 30, 2013.
Profit & loss account
· Standalone profit after tax increased 20% to ` 2,352 crore (US$ 376
million) for the quarter ended September 30, 2013 (Q2-2014) from ` 1,956
crore (US$ 312 million) for the quarter ended September 30, 2012 (Q2-
2013).
· The Bank has fully recognised the mark-to-market provisions of ` 279
crore (US$ 45 million) on its investment portfolio, and has not availed the
option permitted by the Reserve Bank of India of recognising the same
over three quarters.
· Operating profit excluding treasury increased 31% year-on-year to `
3,967 crore (US$ 634 million) in Q2-2014 from ` 3,022 crore (US$ 483
million) in Q2-2013.
· Net interest income increased 20% to ` 4,044 crore (US$ 646 million) in
Q2-2014 from ` 3,371 crore (US$ 538 million) in Q2-2013.
· Net interest margin increased by 31 basis points from 3.00% for Q2-2013
and 3.27% in Q1-2014 to 3.31% for Q2-2014.
· Net interest margin of international branches increased from 1.60% in
Q1-2014 to 1.80% in Q2-2014, while the domestic net interest margin
was stable at 3.65% in Q2-2014 vis-Ã -vis 3.63% in Q1-2014.
· Fee income increased by 17% to ` 1,994 crore (US$ 319 million) in Q2-
2014 from ` 1,709 crore (US$ 273 million) in Q2-2013.
· Cost-to-income ratio reduced to 37.3% in Q2-2014 from 40.9% in Q2-
2013.
· Provisions were at ` 625 crore (US$ 100 million) in Q2-2014 compared to
` 508 crore (US$ 81 million) in Q2-2013.
· Return on average assets was 1.70% in Q2-2014 compared to 1.54% in
Q2-2013.
Operating review
The Bank has continued with its strategy of pursuing profitable growth.
The Bank continued to leverage its branch network, its strong corporate
franchise and its international presence. During the quarter, the Bank
added 157 branches, including 105 low cost Gramin branches, and 196
ATMs to its network. At September 30, 2013, the Bank had 3,507 branches,
the largest branch network among private sector banks in the country. The
Bank’s ATM network increased to 11,098 ATMs at September 30, 2013 as
compared to 10,006 at September 30, 2012.
Credit growth
Total advances increased by 16% year-on-year to ` 317,786 crore (US$
50.8 billion) at September 30, 2013 from ` 275,076 crore (US$ 43.9 billion)
at September 30, 2012. The year-on-year growth in domestic advances
was 14%. The Bank has continued to see healthy growth in its retail
disbursements. As a result, the outstanding mortgages and auto loan
portfolios for the Bank have grown by 23% and 27% respectively on a
year-on-year basis at September 30, 2013. Based on the above, the Bank
has seen a year-on-year growth of 20% in its total retail portfolio at
September 30, 2013.
Deposit growth
The Bank has seen healthy trends in current and savings account (CASA)
deposits mobilisation. During Q2-2014, savings account deposits increased
by ` 4,682 crore (US$ 748 million) and current account deposits increased
by ` 3,391 crore (US$ 542 million). At September 30, 2013, savings account
deposits were ` 93,535 crore (US$ 14.9 billion) and current account
deposits were ` 40,373 crore (US$ 6.4 billion). The Bank’s CASA ratio was
maintained at 43.3% at September 30, 2013. The average CASA ratio
Iimproved to 40.3% during Q2-2014 compared to 39.0% during the quarter
ended June 30, 2013 (Q1-2014).
Capital adequacy
The Bank’s capital adequacy at September 30, 2013 as per Reserve Bank of
India’s guidelines on Basel III norms was 16.50% and Tier-1 capital
adequacy was 11.33%, well above regulatory requirements. In line with
applicable guidelines, the Basel III capital ratios reported by the Bank for at
September 30, 2013 do not include the profits for the half year ended
September 30, 2013 (H1-2014). Including the profits for H1-2014, the
capital adequacy ratio for the Bank as per Basel III norms would have been
17.21% and the Tier I ratio would have been 12.04%.
Asset quality
Net non-performing assets at September 30, 2013 were ` 2,707 crore (US$
432 million) compared to ` 2,472 crore (US$ 395 million) at June 30, 2013.
The net non-performing asset ratio was 0.73% at September 30, 2013
compared to 0.69% at June 30, 2013. The Bank’s provision coverage ratio,
computed in accordance with the RBI guidelines was 73.1% at September
30, 2013. Net loans to companies whose facilities have been restructured
were ` 6,826 crore (US$ 1.1 billion) at September 30, 2013 compared to `
5,915 crore (US$ 945 million) at June 30, 2013.
Consolidated profits
Consolidated profit after tax increased 13% to ` 2,698 crore (US$ 431
million) for Q2-2014 from ` 2,390 crore (US$ 382 million) for Q2-2013, after
including the impact of market volatility on subsidiaries with market linked
businesses. The consolidated return on equity on an annualised basis was
14.6% during Q2-2014. The consolidated profit after tax increased by 22%
from ` 4,467 crore (US$ 714 million) for the half year ended September 30,
2012 (H1-2013) to ` 5,445 crore (US$ 870 million) for the half year ended
September 30, 2013 (H1-2014). The consolidated return on equity on an
annualised basis increased from 14.1% in H1-2013 to 15.1% in H1-2014
Insurance subsidiaries
ICICI Life’s profit after tax for Q2-2014 was ` 387 crore (US$ 62 million)
compared to ` 396 crore (US$ 63 million) for Q2-2013. ICICI Life’s new
business annualised premium equivalent (APE) was ` 954 crore (US$ 152
million) in Q2-2014 compared to ` 781 crore (US$ 125 million) in Q2-2013.
The assets under management at September 30, 2013 were ` 73,976 crore
(US$ 11.8 billion).
ICICI Lombard General Insurance Company (ICICI General) maintained its
leadership in the private sector during April-August 2013. The gross
premium income of ICICI General increased by 12% to ` 1,701 crore (US$
272 million) in Q2-2014 from ` 1,517 crore (US$ 242 million) in Q2-2013.
ICICI General’s profit after tax for Q2-2014 increased to ` 156 crore (US$ 25
million) from ` 101 crore (US$ 16 million) for Q2-2013.
Chief Financial Officer
Mr. Rakesh Jha, Deputy Chief Financial Officer has been designated as
Chief Financial Officer of ICICI Bank. He will continue to report to Mr. N. S.
Kannan, Executive Director.
ICICI Bank Limited
ICICI Bank Towers
Bandra Kurla Complex
Mumbai 400 051
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. 62.61
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