Performance Review:Q1-2012
July 29, 2011
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Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in ICICI Bank's filings with the US Securities and Exchange Commission.
All financial and other information in these slides, 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 unconsolidated, consolidated and segmental results required by Indian regulations that has, along with these slides, 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 and Exchange Commission, and is available on our website www.icicibank.com
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Overview
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Q1-2012: Profitability highlights
29.8% increase in profit after tax from ` 10.26 bn in Q1-2011 to ` 13.32 bn in Q1-2012
Net interest income increased by 21.1% year-on-year; net interest margin at 2.6%
11.7% increase in fee income year-on-year
43.1% reduction in provisions
52.8% increase in consolidated profit after tax from ` 10.91 bn in Q1-2011 to ` 16.67 bn in Q1-2012
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Other highlights
Average CASA ratio at 40.0% in Q1-2012; CASA ratio at 41.9% at June 30, 2011
Net NPA ratio decreased to 0.91% at June 30, 2011 from 0.94% at March 31, 2011 (June 30, 2010: 1.62%)
Provisioning coverage ratio increased to 76.9% at June 30, 2011 from 76.0% at March 31, 2011
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Unconsolidated financials
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Profit & loss statement
(2.15)-(0.25)(1.96)1.04- Treasury income
90.482.1%22.3423.0521.88Operating profit
0.79(45.5)%0.120.120.22Lease depreciation
1.57
63.81
156.65
4.44
64.19
66.48
90.17
FY2011
0.45
17.89
41.51
0.46
17.91
16.41
25.10
Q4-2011
0.34
17.74
40.54
0.90
15.78
16.43
24.11
Q1-2012
0.36
14.25
36.71
1.63
14.13
16.80
19.91
Q1-2011
(5.6)%
24.5%
10.4%
(44.8)%
11.7%
(2.2)%
21.1%
Q1-0-Q1 Growth
Total income
DMA expenses
Operating expenses
- Other income
- Fee income
Non-interest income
Net interest income
(` billion)
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Profit & loss statement
51.5129.8%13.3214.5210.26Profit after tax
16.10
67.61
22.87
90.48
FY2011
4.69
19.21
3.84
23.05
Q4-2011
4.48
17.80
4.54
22.34
Q1-2012
3.64
13.90
7.98
21.88
Q1-2011
23.1%
28.1%
(43.1)%
2.1%
Q1-0-Q1 Growth
Tax
Profit before tax
Provisions
Operating profit
(` billion)
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Balance sheet: Assets
44.5%149.51150.80103.49- RIDF1 and related
3.3%725.35641.42702.20- SLR investments
2.1%124.53124.53122.00- Equity investment insubsidiaries
3,639.97
216.03
1,843.78
1,275.71
304.45
June 30, 2010
9.4%1,395.561,346.86Investments
4,062.34
210.92
2,163.66
340.90
March 31, 2011
4,152.15
200.72
2,206.93
348.94
June 30, 2011
14.1%
(7.1)%
19.7%
14.6%
Y-o-Y growth
Total assets
Fixed & other assets
Advances
Cash & bank balances
(` billion)
Investment in security receipts of asset reconstruction companies was ` 27.56 bn at June 30, 2011Credit derivative exposure (including off balance sheet exposure) of ` 21.32bn at June 30, 2011 (underlying comprises Indian corporate credits)
Including impact of exchange rate movement1. Rural Infrastructure Development Fund
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SME4.8%
Rural9.7%
Retail business
group38.7%
Overseas branches
25.5%
Domestic corporate
21.3%
Composition of total loan book
1. Retail business group includes builder loans and dealer funding
March 31, 2011
Total loan book: ` 2,164 bn
June 30, 2011
Total loan book: ` 2,207 bn
Domestic corporate
23.7%
Overseas branches
25.3% Retail business
group37.5%Rural
8.5%
SME5.0%
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Composition of retail loan book
1. March 31, 2011 :Vehicle loans includes auto loans 9.2%, commercial business 17.7%
2. June 30, 2011 :Vehicle loans includes auto loans 9.4%, commercial business 16.5%
Vehic le loans26.9%
Home64.4%
Personal loans2.8%
Other secured
2.5%
Cred i t cards3.3%
March 31, 2011
Total retail loan book: ` 837 bn
1
Total retail loan book: ` 827 bn
June 30, 2011
Vehic le loans25.9%
Home66.0%
Personal loans2.4%
Other secured
2.5%
Cred i t cards3.2%
2
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Equity investment in subsidiaries
124.53
0.14
0.05
0.61
1.87
1.58
3.00
13.48
11.12
23.25
33.50
35.93
March 31, 2011
122.00
0.14
0.05
0.61
1.87
1.58
3.00
10.96
11.12
23.25
33.50
35.93
June 30, 2010
11.12ICICI Home Finance
23.25ICICI Bank UK
0.61ICICI AMC
33.50ICICI Bank Canada
3.00ICICI Bank Eurasia LLC
13.48ICICI Lombard General Insurance
1.58ICICI Securities Primary Dealership
0.14Others
124.53
0.05
1.87
35.93
June 30, 2011
Total
ICICI Venture Funds Mgmt
ICICI Securities Limited
ICICI Prudential Life Insurance
(` billion)
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Balance sheet: Liabilities
18.2%668.58668.69565.46- Savings
6.1%297.77347.78280.72- Current
3,639.97
152.64
949.97
2,009.13
517.07
11.16
528.23
June 30, 2010
4,062.34
159.86
1,095.54
2,256.02
539.39
11.52
550.91
March 31, 2011
4,152.15
140.25
1,140.51
2,306.78
553.09
11.52
564.61
June 30, 2011
14.1%
(8.1)%
20.1%
14.8%
7.0%
3.2%
6.9%
Y-o-Y growth
Borrowings1
Total liabilities
Other liabilities
Deposits
- Reserves
- Equity capital
Net worth
(` billion)
Credit/deposit ratio of 75.5% on the domestic balance sheet at June 30, 2011
Including impact of exchange rate movement
1. Borrowings include preference shares amounting to ` 3.50 bn
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Composition of borrowings
949.97
483.55
15.72
499.27
134.22
316.48
450.70
June 30, 2010
592.75550.48Overseas
200.66192.75- Other borrowings
347.10352.31- Capital instruments1
1,140.51
577.61
15.14
547.76
June 30, 2011
1,095.54
535.38
15.11
545.06
Mar 31, 2011
Total borrowings
- Other borrowings
- Capital instruments
Domestic
Capital instruments constitute 63.4% of domestic borrowings
1. Includes preference share capital ` 3.50 bn
(` billion)
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Capital adequacy (Basel II)
818.82793.17684.45-Off balance sheet
2,656.022,621.812,335.93-On balance sheet
3,414.98
217.50
449.75
667.25
` bn
March 31, 2011
6.37%
13.17%
19.54%
%
6.21%
13.36%
19.57%
%
3,474.84
215.74
464.35
680.09
` bn
June 30, 2011
3,020.37
187.22
422.97
610.19
` bn
June 30, 2010
6.20%
14.00%
20.20%
%
Risk weighted assets
- Tier II
- Tier I
Total Capital
Basel II
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Key ratios
9.69.610.77.9Return on average net worth1, 2
45.1
1.8
44.3
43.3
2.7
478
51.1
1.44
11.5
Q4-2011
1.71.71.6Cost to average assets2
41.9
44.7
39.0
2.6
490
46.5
1.29
12.0
Q1-2012
1.341.15Return on average assets2
45.142.1CASA ratio
40.0
38.7
2.5
474
36.9
8.6
Q1-2011
41.9
41.2
2.6
478
45.3
11.6
FY 2011
Fee to income
Book value (`)
Cost to income
Net interest margin2
Weighted avg EPS (`)2
Return on average net worth1, 2
(Consolidated basis)
(Percent)
1. Based on quarterly average net worth2. Annualised for all interim periods
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Asset quality and provisioning
Gross retail NPLs at ` 63.58 bn and net retail NPLs at ` 11.18 bn at June 30, 2011Net restructured loans of ` 19.66 bn at June 30, 2011Outstanding general provision on standard assets: ` 14.80 bn at June 30, 2011Provisioning coverage ratio of 76.9% at June 30, 2011 computed in accordance with RBI guidelines
(` billion)
0.94%
24.59
76.55
101.14
Mar 31, 2011
1.62%
35.14
64.63
99.77
June 30, 2010
0.91%
23.51
77.11
100.62
June 30, 2011
Net NPA ratio
Net NPAs
Less: Cumulative provisions
Gross NPAs
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Overseas subsidiaries
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Loans & advances
57.4%
Asset backed securi ties
2.0%
Other assets & investments
6.0%
Ind ia l inked investments
3.3%
Cash & l iquid securi ties
20.6%Bonds/notes o f financia l
insti tutions10.7%
`
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Loans & advances
56.4%
Asset backed securi ties
1.9%
Other assets & investments
6.1%
Ind ia l inked investments
4.0%
Cash & l iquid securi ties
21.0%Bonds/notes o f
financ ial insti tutions
10.6%
`
ICICI Bank UK asset profile
1. Includes cash & advances to banks, T Bills and CDs2. Includes India-linked credit derivatives of US$ 14 mn at June 30, 2011 (US$ 98 mn at
March 31, 2011)3. Includes securities re-classified to loans & advances4. Does not include US$ 154 mn of ABS reclassified
as loans & receivables in FY2009
Total assets: USD 6.4 bn
March 31, 2011
14
2
3
Total assets: USD 6.0 bn
June 30, 2011
1
4
2
3
2020
ICICI Bank UK liability profile
Total liabilities: USD 6.4 bn
March 31, 2011
Profit after tax of US$ 5 mn in Q1-2012 as compared to US$ 9 mn in Q1-2011Capital adequacy ratio at 25.4%Proportion of retail term deposits in total deposits at 76% at June 30, 2011
Demand deposi ts
15.3%
Syndicated loans &
interbank borrowings
5.5%
Other l iab i l i ties
5.5%
Term deposi ts50.1%
Net worth10.6%
Long term Debt
13.0%
Total liabilities: USD 6.0 bn
June 30, 2011
Demand deposi ts
15.4%
Syndicated loans &
interbank borrowings
5.9%
Other l iab i l i ties
5.1%
Term deposi ts47.9%
Net worth11.6%
Long term Debt
14.1%
2121
ICICI Bank Canada asset profile
1. Includes cash & advances to banks and government securities
2. Includes India-linked credit derivatives of CAD 29 million at June 30, 2011 (CAD 65 million at March 31, 2011)
3. Based on IFRS, securitised portfolio of CAD 767 million considered as part of federally insured mortgage portfolio
Total assets: CAD 4.5 bn
March 31, 2011
Cash & l iquid securi ties
11.9%
Federal ly insured
mortgage6.9%
Other assets & investments
11.7%
Asset backed securi ties
1.7%
India l inked investments
1.8%
Loans to customers
66.0%
2
1
Total assets: CAD 5.1 bn
June 30, 20113
Cash & liquid securit ies
11.6%
Federally insured
mortgage21.5%
Other assets & investments
10.5%
Asset backed securit ies
1.4%
India linked investments
0.8%
Loans to customers
54.1%
2
1
3
2222
ICICI Bank Canada liability profile
Total liabilities: CAD 5.1 bn
Profit after tax of CAD 12.3 mn in Q1-20122
Capital adequacy ratio at 28.5%2
March 31, 2011
Borrowings1.7%
Net worth21.8%
Demand deposi ts
15.7%
Other l iab i l i ties
2.7% Term deposi ts58.2%
1. As per IFRS, proceeds of CAD 769 million from sale of securitised portfolio considered as part of borrowings
2. As per IFRS
Total liabilities: CAD 4.5 bn
Borrowings16.6%
Net worth19.3%
Demand deposi ts
14.1%
Other l iab i l i ties
1.9%
Term deposi ts48.1%
June 30, 20111
1
2323
ICICI Bank Eurasia asset profile
Total assets: USD 324 mn
1. Includes cash & call placements with banks, balances with central bank and nostro balances
Total borrowings of USD 180 mn at June 30, 2011Capital adequacy of 30.5% at June 30, 2011Net loss of USD 0.3 mn in Q1-2012
March 31, 2011
Other assets & investments
2.3%
Corporate bonds2.0%
Promissory notes9.1%
Cash & cash equivalents
31.2%
Retai l loans17.4%
Loans to corporates &
banks38.0%
1
Loans to corporates &
banks39.0%
Retail loans16.0%
Cash & cash equivalents
38.7%
Promissory notes2.9%
Corporate bonds2.1%
Other assets & investments
1.3%
Total assets: USD 338 mn
June 30, 2011
1
1
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Domestic subsidiaries
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ICICI Home Finance
Total assets: ` 86.52 bnProfit after tax of ` 703.8 mn in Q1-2012 compared to ` 572.0 mn in Q1-2011Capital adequacy ratio of 23.9% at June 30, 2011Net NPA ratio: 1.3%At June 30, 2011 : Networth ` 13.63 bn; Deposits ` 16.29 bn and Borrowings ` 51.73 bn
March 31, 2011
Loans 96.1%
Investments and other assets
3.9%
Total assets: ` 81.65 bn
June 30, 2011
Loans 94.8%
Investments and other assets
5.2%
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ICICI Life
4.4511.82Annualised premium equivalent (APE)
8.2414.07New business received premium
674.47595.47Assets Under Management
3.39(1.16)1Statutory profit/(loss)
16.0%19.0%NBP margin
0.712.25New Business Profit (NBP)
18.0719.88Renewal premium
18.9%21.1%Expense ratio2
26.3133.95Total premium
Q1-2012Q1-2011(` billion)
1. Does not include surplus on the non-participating policyholders’ funds of ` 2.35 billion2. Expense ratio: All expenses (including commission) / (Total premium – 90% of Single
Premium)3. On new business retail weighted received premium basis
Continued market leadership in private sector3
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ICICI General
1. Excluding remittances from third party motor pool and including premium on reinsurance accepted
0.400.33PAT
13.0311.18Gross premium1
Q1-2012Q1-2011(` billion)
Continued market leadership in private sector
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Other subsidiaries
0.32
0.11
0.34
0.25
Q1-2011
0.25ICICI Prudential Asset Management
0.10ICICI Securities
0.05
0.23
Q1-2012Profit after tax
ICICI Venture
ICICI Securities Primary Dealership
Consolidated profit after tax increased by 52.8% to ` 16.67 bn in Q1-2012 compared to ` 10.911 bn in Q1-2011Consolidated return on average net worth for Q1-2012 at 12.0% compared to 8.6% in Q1-2011 (11.6% in FY2011)
(` billion)
1. Does not include surplus on the non-participating policyholders’ funds of ` 1.73 bn
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Thank you