ICICI BANK - RESULTS FOR - Q2 FY 2013 – SEP 2012 - STAND ALONE PROFIT UP 30% YoY; NPAs UNDER GOOD CONTROL - NIM 3% - NII UP 35% - VERY GOOD PERFORMANCE

ICICI BANK

CHANDA KOCHHAR, MD & CEO

RESULTS FOR

Q2 FY 2013 – SEP 2012

Performance Review

 Quarter ended Sep 30, 2012

  

SOME HIGH LIGHTS

• 30% YoY increase in standalone profit after tax to 1,956 Cr  for the quarter ended  Sep 30, 2012 (Q2-2013) from  Rs.1,503 Cr  for the quarter ended Sep 30, 2011 (Q2-2012) 

. The Bank seems to have moved decisively into higher Growth path in terms of Top Line and Bottom line.

• Consolidated return on equity (annualised) of 14.8% in Q2-2013

• Net interest margin maintained at 3.00% for the third  consecutive quarter

• 18% YoY increase in advances to  Rs. 275,076 Cr   at Sep 30, 2012 

• Net non-performing asset ratio at 0.66% at Sep 30,  2012 compared to 0.80% at Sep 30, 2011 .NPAs are gradually coming down to satisfactory levels.

• 20% YoY increase in consolidated profit after tax to  Rs. 2,390 Cr  for Q2-2013 from Rs. 1,992 Cr   for Q2-2012 . The consolidated Profit improvement proves that the subsidiary functioning is improving very fast.

• Strong capital adequacy ratio of 18.28% and Tier-1 capital  adequacy of 12.83%

Profit & loss account

• Standalone profit before tax increased 32% to  Rs. 2,685 Cr for Q2-2013 from  Rs.2,035 Cr   Q2-2012.

• Standalone profit after tax increased 30% to Rs. 1,956 Cr  for Q2-2013 from Rs.1,503 Cr  for Q2-2012.

• Net interest income increased 35% to  Rs.3,371 Cr  in Q2-2013 from Rs.2,506 Cr   in Q2-2012.

• Net interest margin improved to 3.00% for Q2-2013 from 2.61% for Q2-2012.

• Non-interest income increased by 17% to  Rs.2,043 Cr  in Q2-2013 from Rs.1,740 Cr   in Q2-2012.

• Cost-to-income ratio reduced to 40.9% in Q2-2013 from 44.4% in Q2-2012. 

• Provisions were at  Rs.508 Cr   in Q2-2013 compared to Rs. 319 Cr in Q2-2012 and Rs. Rs.466 Cr   in Q1-2013. Provisions are Higher, in line with the Industry expectations of the NPAs – but ICICI Bank has shown reasonable GRIP on management of NPAs.

• Return on average assets (annualised) was 1.59% in Q2-2013 compared  to 1.41% in Q2-2012.

Operating review

At Sep 30, 2012, the Bank had 2,772 branches, the largest branch network among private sector banks in the country. The Bank has also increased its ATM network to 10,006 ATMs at Sep 30, 2012 as compared to 6,913 at Sep 30, 2011.

Credit growth

Advances increased by 18% YoY to  Rs.275,076 Cr  at Sep 30, 2012 from Rs.233,952 Cr   at  Sep 30, 2011.

The YoY growth in retail advances was 14.0% at Sep 30, 2012 compared to a YoY growth of 10.3% at June 30, 2012. 

Deposit growth

At Sep 30, 2012, savings account deposits increased by 15% YoY to  Rs. 80,618 Cr  .

Current account deposits  were   Rs.33,800 Cr   at Sep 30, 2012.

The CASA ratio was at 40.7% at Sep 30, 2012. The average CASA ratio was at 37.5% for Q2-2013.

Capital adequacy

The Bank’s capital adequacy at Sep 30, 2012 as per Reserve Bank  of India’s guidelines on Basel II norms was 18.28% and Tier-1 capital adequacy was 12.83%, well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6.0%. 

Capital Adequacy Ratio is quite Healthy – and ensures next quarter’s healthy operations.

Asset quality

Net non-performing assets at Sep 30, 2012 were   Rs.2,138 Cr  compared to Rs.1,941 Cr   at June 30, 2012 and  Rs. 2,236 Cr   at Sep 30, 2011.

The Bank’s net non-performing asset ratio was 0.66% at Sep 30, 2012 compared to 0.61% at June 30, 2012 and 0.80% at Sep 30, 2011.

The Bank’s provision coverage ratio computed in accordance with the RBI guidelines was 78.7% at Sep 30, 2012. 

Net restructured assets at Sep 30, 2012 were Rs.4,158 Cr   compared to Rs.4,172 Cr  at June 30, 2012.

The heartening feature is – Net Restructured Assets has come down a bit in Q2 from Q1 levels – displaying the Bank’s current hold on the NPAs and the improving quality of its Loans.

Consolidated profits

Consolidated profit after tax increased 20% to  Rs.2,390 Cr   for Q2-2013 from  Rs.1,992 Cr   for Q2-2012. 

The consolidated return on equity (annualised) improved from 13.7% in Q2-2012 to 14.8% in Q2-2013. 

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 April-August 2012. 

ICICI Life’s profit after tax for Q2-2013 was Rs.396 Cr   compared to  Rs.350 Cr   for Q2-2012.

ICICI Life’s annualised premium equivalent (APE) increased by 14% to Rs.1,351 Cr   in H1-2013 from  Rs.1,180 Cr  in H1-2012. The assets under management at Sep 30, 2012 were  Rs.73,521 Cr  .

 

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector  during Q2-2013. The gross premium income of ICICI General increased by 16% to  Rs.1,517 Cr  in Q2-2013 from  Rs.1,306 Cr in Q2-2012.

 ICICI General’s profit after tax for Q2-2013 was  Rs.101 Cr   compared to Rs.56 Cr  for Q2-2012.

Summary Profit and Loss Statement

 (as per unconsolidated

Indian GAAP accounts) –Rs.in Crs

ICICI BANK	FY 2012	Q1 FY 12	Q2 FY 12	H1 FY 12	Q1 FY13	Q2 FY 13	H1 FY 13
Net Interest Income	10,734	2,411	2,506	4,917	3,193	3,371	6,564
Non-interest Income	7,502	1,643	1,740	3,383	1,880	2,043	3,923
Fee income	6,707	1,578	1,700	3,278	1,647	1,709	3,356
Lease & Other Income	808	90	120	210	254	162	416
Treasury Income	-13	-25	-80	-105	-21	172	151
Less:
Operating Exp	7,850	1,820	1,892	3,712	2,124	2,221	4,344
Operating Profit	10,386	2,234	2,354	4,588	2,949	3,193	6,143
Less: Provisions	1,583	454	319	773	466	508	974
Profit Before Tax	8,803	1,780	2,035	3,815	2,483	2,685	5,169
Less: Tax	2,338	448	532	980	668	729	1,398
Profit After Tax	6,465	1,332	1,503	2,835	1,815	1,956	3,771

ICICI BANK  BALANCE  SHEET

ICICI BANK	Sep-11	Mar-12	Jun-12	Sep-12
Capital &
Liabilities
Capital	1,153	1,153	1,153	1,153
Employee	1	2	3	3
options o/s
Reserves &	57,448	59,250	61,868	63,306
surplus
Deposits	245,092	255,500	267,794	281,438
Borrowings	121,324	140,165	137,207	135,390
(includes
subordinated
debt)
Other Liabilities	15,707	17,577	15,469	15,765
Total Capital
&Liabilites	440,725	473,647	483,494	497,055
Assets
Cash &	23,302	20,461	17,951	21,175
balances
with RBI
India
Balances With	12,877	15,768	18,325	21,247
banks & money
at Call &
Short Notice
Investments	147,685	159,560	155,132	157,914
Advances	233,952	253,728	268,430	275,076
Fixed Assets	4,696	4,615	4,668	4,621
Other Assets	18,213	19,515	18,988	17,022
Total Assets	440,725	473,647	483,494	497,055

As we can see, Advances has gone up very well from Quarter to Quarter and now stands at Rs.2,75,076 Cr s.

Over All – ICICI Bank has certainly turned in a very Good performance indicating good quality of Loan assets, good improvement in Profitability and slowly reducing NPAs.

 *  *  *  E  N  D  *  *  *