Saturday, April 28, 2012

ICICI BANK LTD = RESULTS FOR = Q4 FY 2012 = & FY 2012 = CONSOL.NPT UP 25% FOR FY 2012 YoY = UP 15% FOR Q4 FY 12 YoY


ICICI Bank Limited

Performance Review
Quarter and Y/E Mar 31, 2012

Ø  31% YoY increase in Standalone profit after tax to Rs.1,902 Cr for Q/e Mar 31, 2012 (Q4-2012) from Rs.1,452 Cr  for the Q/e Mar 31, 2011 (Q4-2011)
Ø  26% YoY increase in standalone profit after tax to Rs.6,465 Cr ) for the y/e Mar 31, 2012 (FY2012) from Rs.5,151 Cr for the y/e Mar 31, 2011 (FY2011)
Ø  25% YoY increase in consolidated profit after tax to Rs.7,643 Cr for FY 2012 from Rs. 6,093 Cr  for FY2011.
Ø  Improvement in net interest margin to 3.01% in Q4-2012 from 2.74% for Q4-2011
Ø  17% YoY increase in advances to Rs.253,728 Cr  at Mar 31, 2012
Ø  Current and savings account (CASA) ratio maintained at 43.5% at Mar 31, 2012
Ø  Net non-performing asset ratio decreased to 0.62% at Mar 31, 2012 from 0.94% at Mar 31, 2011
Ø  Strong capital adequacy ratio of 18.52% and Tier-1 capital adequacy of 12.68%
Ø  Dividend of Rs.16.50 per share proposed 

Profit & loss account

Ø  Standalone profit before tax increased 38% to Rs.2,642 Cr  for the q / e Mar 31, 2012 (Q4-2012) from Rs.1,921 Cr for the q / e Mar 31, 2011 (Q4-2011).      
Ø  Standalone profit after tax increased 31% to Rs.1,902 Cr for Q4-2012 from Rs.1,452 Cr for Q4-2011.
Ø  Net interest income increased 24% to Rs.3,105 Cr in Q4-2012 from Rs.2,510 Cr in Q4-2011.
Ø  Net interest margin improved to 3.01% for Q4-2012 from 2.74% for Q42011.
Ø  Non interest income increased by 36% to Rs.2,228 Cr in Q4-2012 from Rs.1,641 Cr  in Q4-2011.
Ø  Standalone profit after tax increased 26% to Rs.6,465 Cr for FY2012 from Rs. 5,151 Cr for FY2011. 

Operating review

At Mar 31, 2012, ICICI Bank had 2,752 branches, the largest branch network among private sector banks in the country. It also increased its ATM network to 9,006 ATMs at Mar 31, 2012 as compared to 6,104 at Mar 31, 2011. 

Ø  Credit growth 

Advances increased by 17% YoY to Rs.253,728 Cr at Mar 31, 2012 from Rs.216,366 Cr at Mar 31, 2011.  

Ø  Deposit growth 

At Mar 31, 2012, savings account deposits were Rs. 76,046 Cr and current account deposits were Rs.34,973 Cr. The CASA ratio was maintained at 43.5% at Mar 31, 2012 as compared to 43.6% at December 31, 2011 and the average CASA ratio remained stable at 39.0% in Q4-2012. 

Ø  Capital adequacy 

Capital adequacy at Mar 31, 2012 as per RBI’s guidelines on Basel II norms was 18.52% and Tier-1 capital adequacy was 12.68%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%. 

Ø  Asset quality 

Net NPAs decreased by 23% to Rs.1,894 Cr at Mar 31, 2012 from Rs.2,459 Cr at Mar 31, 2011. Net NPA ratio decreased to 0.62% at Mar 31, 2012 from 0.94% at Mar 31, 2011 and 0.70% at December 31, 2011. Provision coverage ratio computed in accordance with the RBI guidelines at Mar 31, 2012 was 80.4% compared to 76.0% at Mar 31, 2011. Net restructured assets at Mar 31, 2012 were Rs.4,256 Cr. 

Ø  Dividend on equity shares

The Board has recommended a dividend of Rs.16.50 per equity share for FY2012.

Ø  Consolidated profits

Consolidated profit after tax increased 25% to Rs.7,643 Cr for FY2012 from Rs.6,093 Cr for FY2011. 

Consolidated profit after tax increased 15% to Rs.1,810 Cr for Q4-2012 from Rs.1,568 Cr for Q4-2011. 

IRDA through its orders dated Dec 23, 2011, Jan 3, 2012 and Mar 22, 2012 had directed dismantling of the third party motor pool (the Pool) on a clean cut basis and advised recognition of the Pool liabilities as per the loss ratios estimated by GAD UK (“GAD Estimates”) for all underwriting years commencing from y/e Mar 31, 2008 to y/e Mar 31, 2012, with the option to recognise the same over a three year period. ICICI Lombard General Insurance Company (ICICI General) has decided to recognise the additional liabilities of the Pool in the current year and therefore, the loss after tax of ICICI General of  Rs.416 Cr for FY2012 and Rs.613 Cr for Q4-2012 includes the impact of additional Pool losses of Rs.685 Cr. 

Consolidated net profit after tax for FY2012 and Q42012 includes the impact of additional Pool losses of  Rs.503 Cr in line with the Bank’s shareholding in ICICI General.  

Ø  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 FY2012. ICICI Life’s profit after tax for FY2012 was Rs.1,384 Cr compared to Rs.808 Cr for FY2011. ICICI Life’s annualised premium equivalent (APE) was Rs.1,077 Cr in Q4-2012 compared to Rs.878 Cr in Q4-2011. The assets under management at Mar 31, 2012 were Rs.70,771 Crs.

ICICI General maintained its leadership in the private sector during FY2012. The gross premium income of ICICI General increased by 22% to Rs.5,358 Cr  in FY2012 from Rs.4,408 Cr in FY2011. ICICI General provided  Rs.685 Cr during Q4-2012 towards additional motor pool losses pursuant to the IRDA orders dated December 23, 2011, January 3, 2012 and Mar 22, 2012. After taking the same into account, ICICI General reported a loss of  Rs.416 Cr  for FY2012.

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

Rs. Cr
ITEM   ::             Q4-2011 :: FY11  ::  Q3-12  ::  Q4-12  ::  FY 12
Net interest income :: 2,510 :: 9,017 :: 2,712 :: 3,105 :: 10,734
Non-interest income :: 1,641 :: 6,648 :: 1,892 :: 2,228 :: 7,502
Less:                                                    
Operating expense :: 1,789 :: 6,381 :: 1,870 :: 2,160 :: 7,648
Operating profit  ::  2,305 :: 9,048 :: 2,687 ::  3,111  ::  10,386
Less: Provisions  ::  384  ::  2,287  ::  341 ::  469  ::  1,583
Profit before tax   ::  1,921  ::  6,761  ::  2,346  :: 2,642  ::          8,803
Less: Tax  :: 469  ::  1,610 ::  618 :: 740  ::  2,338 
Profit after tax  :: 1,452 :: 5,151 ::  1,728  ::  1,902  ::  6,465

CONSOLIDATED RESULTS
FOR FY 12,FY 11 & FY10

The table below shows the consolidated Results for FY12 and FY 11 and the percentage improvement (+/-) of FY 12 over FY11; next column id result for FY 10 and then, the percentage improvement (+/-) of FY 12 over FY10; Total income over previous 2 years has improved by 11.84%; while the total expenditure has increased by 12.59%.

Operating Profit has increased by 8.58%; Profit before tax by 62.44% helped by a steep decrease in Provisions in current year (FY 12). Consolidated Net Profit has increased by 63.65%.

Basic EPS has increased in FY 12 by 23.89% over FY 11 and by 58.19% over FY 11. The improvement is quite impressive. The asset quality also has improved . 

Current Market price of ICICI Bank is Rs.870.70; while the 52 week high price is Rs.1128.50 and the  52 week low price  is Rs.641. 

But, on a Face Value of Rs.10, at Rs.66.33 in Basic EPS, it is still far behind both HDFC Bank which has clocked Rs.112.5 (Rs.22.5 on FV of Rs.2) and Axis Bank, which has clocked Rs.102.4 in FY 12.

The PE for HDFC Bank is 23.97,while the PE Ratio for Axis Bank is 10.97. The PE Ratio for ICICI Bank is 13.13. Considering the excellent performance of Axis Bank, and the improving performance of ICICI Bank, there is good scope for improvement in their Market prices.

FY12
%dif1
%dif2
Interest on Advances
2462012
1909754
28.92
2036264
20.91
Income on Investments
1137629
918068
23.92
781644
45.54
Intrst on Balances With RBI
70060
46932
49.28
71117
-1.49
Others
129785
133386
-2.70
126346
2.72
Interest Earned
3799486
3008140
26.31
3015371
26
Other Income
2866342
3151330
-9.04
2944606
-2.66
Total Income
6665828
6159470
8.22
5959977
11.84
Interest Expended
2501325
1934257
29.32
2072919
20.67
Employees cost
510127
439260
16.13
367843
38.68
Other Operating Expenses
2445077
2690985
-9.14
2405481
1.65
Operating Expenses
2955204
3130245
-5.59
2773324
6.56
Total Expdr(excl.provisions)
5456529
5064502
7.74
4846243
12.59
Operating Profit
1209299
1094968
10.44
1113734
8.58
Provisions
140634
255998
-45.06
455870
-69.15
Profit before tax
1068665
838970
27.38
657864
62.44
Tax Expense
274901
207151
32.71
173523
58.42
Net Profit
793764
631819
25.63
484341
63.89
Minority Interest
29470
22492
31.02
17312
70.23
Consolidated NPT
764294
609327
25.43
467029
63.65
Face Value.Rs.
10
10
0.00
10
0
Paid-up Equity
115277
115182
0.08
111489
3.4
Basic EPS .Rs.
66.33
53.54
23.89
41.93
58.19
Diluted EPS.Rs.
66.06
53.25
24.06
41.72
58.34

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