ICICI Bank Announces Performance Review - Quarter ended December 31, 2012

ICICI Bank Announces Performance Review - Quarter ended December 31, 2012

  • Consolidated return on equity (annualised) of 15.7% for the quarter ended December 31, 2012 (Q3-2013)

  • 30% year-on-year increase in standalone profit after tax to Rs 2,250 crore (US$ 409 million) for Q3-2013 from Rs 1,728 crore (US$ 314 million) for the quarter ended December 31, 2011 (Q3-2012)

  • 22% year-on-year increase in consolidated profit after tax to Rs 2,645 crore (US$ 481 million) for Q3-2013 from Rs 2,174 crore (US$ 395 million) for Q3-2012

  • Net interest margin improved by 37 basis points to 3.07% for Q3-2013 compared to the same period last year

  • 16% year-on-year increase in advances to Rs 286,766 crore (US$ 52.1 billion) at December 31, 2012

  • 17% year-on-year increase in retail advances to Rs 96,528 crore (US$ 17.6 billion) at December 31, 2012

  • Net non-performing asset ratio at 0.64% at December 31, 2012 compared to 0.70% at December 31, 2011 and 0.66% at September 30, 2012

  • Strong capital adequacy ratio of 19.53% and Tier-1 capital adequacy of 13.25%

MUMBAI, India--(BUSINESS WIRE)-- The Board of Directors of ICICI Bank Limited (NYS: IBN) at its meeting held at Mumbai today, approved the audited accounts of the Bank for the quarter ended December 31, 2012.

Profit & loss account

  • Standalone profit after tax increased 30% to Rs 2,250 crore (US$ 409 million) for the quarter ended December 31, 2012 (Q3-2013) from Rs 1,728 crore (US$ 314 million) for the quarter ended December 31, 2011 (Q3-2012).

  • Standalone profit after tax increased 32% to Rs 6,021 crore (US$ 1,095 million) for the nine months ended December 31, 2012 (9M-2013) from Rs 4,563 crore (US$ 830 million) for the nine months ended December 31, 2011 (9M-2012).

  • Net interest income increased 29% to Rs 3,499 crore (US$ 636 million) in Q3-2013 from Rs 2,712 crore (US$ 493 million) in Q3-2012.

  • Net interest margin improved to 3.07% for Q3-2013 from 2.70% for Q3-2012.

  • Non-interest income increased by 17% to Rs 2,215 crore (US$ 403 million) in Q3-2013 from Rs 1,892 crore (US$ 344 million) in Q3-2012.

  • Cost-to-income ratio reduced to 39.5% in Q3-2013 from 41.5% in Q3-2012.

  • Provisions were at Rs 369 crore (US$ 67 million) in Q3-2013 compared to Rs 341 crore (US$ 62 million) in Q3-2012 and Rs 508 crore (US$ 92 million) in the quarter ended September 30, 2012 (Q2-2013).

  • Return on average assets (annualised) was 1.76% in Q3-2013 compared to 1.49% in Q3-2012.


Operating review

The Bank has continued with its strategy of pursuing profitable growth. The Bank has grown its retail disbursements, resulting in an improvement in retail loan portfolio growth. The Bank continued to leverage its strong corporate franchise, its international presence and its branch network in India. At December 31, 2012, the Bank had 2,895 branches, the largest branch network among private sector banks in the country. The Bank has also increased its ATM network to 10,040 ATMs at December 31, 2012 as compared to 7,602 at December 31, 2011.

Credit growth

Advances increased by 16% year-on-year to Rs 286,766 crore (US$ 52.1 billion) at December 31, 2012 from Rs 246,157 crore (US$ 44.8 billion) at December 31, 2011. The year-on-year growth in retail advances was 17% at December 31, 2012 compared to a year-on-year growth of 14% at September 30, 2012.

Deposit growth

The Bank maintained its current and savings account (CASA) ratio at 40.9% at December 31, 2012 compared to 40.7% at September 30, 2012. The Bank also maintained its average CASA ratio at 37.4% during Q3-2013 compared to 37.5% during Q2-2013. During Q3-2013, CASA deposits increased by Rs 2,718 crore (US$ 494 million). At December 31, 2012, savings account deposits were Rs 81,463 crore (US$ 14.8 billion) and current account deposits were Rs 35,674 crore (US$ 6.5 billion).

Capital adequacy

The Bank's capital adequacy at December 31, 2012 as per Reserve Bank of India's guidelines on Basel II norms was 19.53% and Tier-1 capital adequacy was 13.25%, 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 at December 31, 2012 were Rs 2,185 crore (US$ 397 million) compared to Rs 2,138 crore (US$ 389 million) at September 30, 2012 and Rs 2,082 crore (US$ 379 million) at December 31, 2011. The Bank's net non-performing asset ratio was 0.64% at December 31, 2012 compared to 0.66% at September 30, 2012 and 0.70% at December 31, 2011. The Bank's provision coverage ratio computed in accordance with the RBI guidelines was 77.7% at December 31, 2012. Net restructured loans at December 31, 2012 were Rs 4,169 crore (US$ 758 million) compared to Rs 4,158 crore (US$ 756 million) at September 30, 2012.

Consolidated profits

Consolidated profit after tax increased 22% to Rs 2,645 crore (US$ 481 million) for Q3-2013 from Rs 2,174 crore (US$ 395 million) for Q3-2012. The consolidated return on equity (annualised) improved from 14.2% in Q3-2012 to 15.7% in Q3-2013.

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 9M-2013. ICICI Life's profit after tax for Q3-2013 was Rs 397 crore (US$ 72 million) compared to Rs 367 crore (US$ 67 million) for Q3-2012. ICICI Life's annualised premium equivalent (APE) increased by 11% to Rs 2,255 crore (US$ 410 million) in 9M-2013 from Rs 2,040 crore (US$ 371 million) in 9M-2012. The assets under management at December 31, 2012 were Rs 74,982 crore (US$ 13.6 billion).

ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector during 9M-2013. The gross premium income of ICICI General increased by 24% to Rs 1,687 crore (US$ 307 million) in Q3-2013 from Rs 1,356 crore (US$ 247 million) in Q3-2012. ICICI General's profit after tax for Q3-2013 was Rs 95 crore (US$ 17 million) compared to Rs 101 crore (US$ 18 million) for Q3-2012.

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

Rs crore

FY2012

Q3-2012

9M-2012

Q2-2013

Q3-2013

9M-2013

Net interest income

10,734

2,712

7,629

3,371

3,499

10,063

Non-interest income

7,502

1,892

5,274

2,043

2,215

6,138

- Fee income

6,707

1,701

4,979

1,709

1,771

5,126

- Dividend and other income

808

256

465

162

193

609

- Treasury income

(13

)

(65

)

(170

)

172

251

403

Less:

Operating expense1

7,850

1,917

5,628

2,221

2,261

6,606

Operating profit

10,386

2,687

7,275

3,193

3,453

9,595

Less: Provisions

1,583

341

1,114

508

369

1,342

Profit before tax

8,803

2,346

6,161

2,685

3,084

8,253

Less: Tax

2,338

618

1,598

729

834

2,232

Profit after tax

6,465

1,728

4,563

1,956

2,250

6,021

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

December
31, 2011

March
31, 2012

September
30, 2012

December
31, 2012

Capital and Liabilities

Capital

1,153

1,153

1,153

1,153

Employee stock options outstanding

2

2

3

4

Reserves and surplus

59,821

59,250

63,306

65,961

Deposits

260,589

255,500

281,438

286,418

Borrowings (includes subordinated debt)1

122,281

140,165

135,390

147,149

Other liabilities2

47,095

32,999

29,904

26,654

Total Capital and Liabilities

490,941

489,069

511,194

527,339

Assets

Cash and balances with Reserve Bank of India

22,144

20,461

21,175

21,778

Balances with banks and money at call and short notice

17,202

15,768

21,247

19,351

Investments

149,791

159,560

157,914

166,842

Advances

246,157

253,728

275,076

286,766

Fixed assets

4,617

4,615

4,621

4,619

Other assets2

51,030

34,937

31,161

27,983

Total Assets

490,941

489,069

511,194

527,339

1.Borrowings include preference share capital of Rs 350 crore.
2.At December 31, 2012, the Bank has presented the mark-to-market (MTM) gain or loss on forex and derivative transactions on gross basis. Accordingly, the gross positive MTM amounting to Rs 12,254 crore has been included in Other assets and gross negative MTM amounting to Rs 10,744 crore has been included in Other liabilities. Consequent to the change, Other assets and Other liabilities have increased by Rs 14,139 crore, Rs 15,422 crore and Rs 31,648 crore at September 30, 2012, March 31, 2012 and December 31, 2011 respectively.

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 websitewww.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 emailganguli.sujit@icicibank.com.

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

1 crore = 10.0 million
US$ amounts represent convenience translations at US$1= Rs 55.00

ICICI Bank Limited

Registered Office: Landmark, Race Course Circle, Vadodara - 390 007.

Corporate Office: ICICI Bank Towers, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051.

Web site: http://www.icicibank.com

UNCONSOLIDATED FINANCIAL RESULTS

(Rs in crore)

Sr. no.

Particulars

Three months ended

Nine months ended

Year ended

December

31, 2012

September 30, 2012

December

31, 2011

December

31, 2012

December

31, 2011

March

31, 2012

(Audited)

(Audited)

(Audited)

(Audited)

(Audited)

(Audited)

1.

Interest earned (a)+(b)+(c)+(d)

10,138.29

10,026.33

8,591.87

29,710.27

24,368.01

33,542.65

a)

Interest/discount on advances/bills

7,065.80

6,848.79

5,685.84

20,370.42

16,001.71

22,129.89

b)

Income on investments

2,742.42

2,744.54

2,472.54

8,188.87

7,068.55

9,684.02

c)

Interest on balances with Reserve Bank of India and other inter-bank funds

136.25

148.83

134.11

408.69

363.21

491.14

d)

Others

193.82

284.17

299.38

742.29

934.54

1,237.60

2.

Other income

2,214.62

2,042.97

1,891.86

6,137.51

5,274.30

7,502.76

3.

TOTAL INCOME (1)+(2)

12,352.91

12,069.30

10,483.73

35,847.78

29,642.31

41,045.41

4.

Interest expended

6,639.27

6,655.10

5,879.85

19,647.08

16,738.63

22,808.50

5.

Operating expenses (e)+(f)

2,261.16

2,220.90

1,916.78

6,605.59

5,628.80

7,850.44

e)

Employee cost

940.64

965.88

836.63

2,893.55

2,412.18

3,515.28

f)

Other operating expenses

1,320.52

1,255.02

1,080.15

3,712.04

3,216.62

4,335.16

6.

TOTAL EXPENDITURE (4)+(5)
(excluding provisions and contingencies)

8,900.43

8,876.00

7,796.63

26,252.67

22,367.43