 |
|
Source Name: ICICI Bank Limited
|
ICICI Bank – Q2 FY15 Performance Review
|
|
Oct 30, 2014 14:57 PM
|
India
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, 2014.
Profit & loss account:
Operating review: The Bank has continued with its strategy of pursuing profitable growth. The Bank continued to grow its retail franchise and has seen healthy growth in retail assets and deposits. The Bank continued to strengthen its deposit franchise with healthy mobilisation of current and savings account (CASA) deposits, leveraging its increased branch network and technology initiatives. During the quarter, the Bank added 52 branches and 292 ATMs to its network. At September 30, 2014, the Bank had 3,815 branches, of which 450 branches were low cost branches in hitherto unbanked rural areas. The Bank continues to have the largest branch network among private sector banks in the country. The Bank had a presence in over 2,300 centers at September 30, 2014. The Bank’s ATM network increased to 11,739 ATMs at September 30, 2014 compared to 11,098 at September 30, 2013. The Bank also continued to strengthen its technology channels for increasing customer convenience. During the quarter, the Bank launched six next generation mobile banking apps. The new apps include features using which customers can access loan account details, track status of dispatches, initiate transactions before visiting a branch, connect with a service executive over video call and view transactions on their mobile phones. The Bank also has the highest market share among banks in India in terms of value of transactions through mobile banking.
Credit growth Total advances increased by 14% year-on-year to Rs 361,757 crore (US$ 58.6 billion) at September 30, 2014 from Rs. 317,786 crore (US$ 51.5 billion) at September 30, 2013. The year-on-year growth in domestic advances was 15%. The Bank has continued to see healthy growth in its retail disbursements resulting in a year-on-year growth of 25% in the retail portfolio at September 30, 2014. The retail portfolio constituted 40% of the loan portfolio of the Bank at September 30, 2014.
Deposit growth The Bank has seen healthy trends in current and savings account (CASA) deposits mobilisation. During Q2-2015, savings account deposits increased by Rs 2,871 crore (US$ 465 million) and current account deposits increased by Rs 6,440 crore (US$ 1.0 billion). The Bank’s CASA ratio improved to 43.7% at September 30, 2014 from 43.0% at June 30, 2014. The average CASA ratio for Q2-2015 remained stable at 39.5%. Total deposits increased by 14% year-on-year to Rs. 352,055 crore (US$ 57.0 billion) at September 30, 2014.
Capital adequacy The Bank’s capital adequacy at September 30, 2014 as per Reserve Bank of India’s guidelines on Basel III norms was 16.64% and Tier-1 capital adequacy was 11.98%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the Bank for September 30, 2014 do not include the profits for the half year ended September 30, 2014 (H1-2015). Including the profits for H1-2015, the capital adequacy ratio for the Bank as per Basel III norms would have been 17.41% and the Tier I ratio would have been 12.75%.
Asset quality Net non-performing assets at September 30, 2014 were Rs. 3,997 crore (US$ 647 million) compared to Rs 3,474 crore (US$ 563 million) at June 30, 2014 and Rs 2,707 crore (US$ 438 million) at September 30, 2013. The net non-performing asset ratio was 0.96% at September 30, 2014 compared to 0.87% at June 30, 2014 and 0.73% at September 30, 2013. The Bank’s provision coverage ratio, computed in accordance with RBI guidelines, was 65.9% at September 30, 2014. Net loans to companies whose facilities have been restructured were Rs 11,020 crore (US$ 1.8 billion) at September 30, 2014 compared to Rs 11,265 crore (US$ 1.8 billion) at June 30, 2014 and Rs 6,826 crore (US$ 1.1 billion) at September 30, 2013.
Consolidated results Consolidated profit after tax increased by 14% to Rs. 3,065 crore (US$ 496 million) for Q2-2015 from Rs. 2,698 crore (US$ 437 million) for Q2-2014. The annualised consolidated return on equity was 15.1% in Q2-2015.
Insurance subsidiaries ICICI Prudential Life Insurance Company’s (ICICI Life) profit after tax for Q2-2015 was Rs 399 crore (US$ 65 million) compared to Rs. 387 crore (US$ 63million) for Q2-2014. ICICI Life’s annualised premium equivalent (APE) was Rs 1,197 crore (US$ 194 million) in Q2-2015 compared to Rs 954 crore (US$ 154 million) in Q2-2014. During Q2-2015, ICICI Life has seen an increase in its assets under management to Rs 90,726 crore (US$ 14.7 billion) at September 30, 2014 compared to Rs. 73,976 crore (US$ 12.0 billion) at September 30, 2013 and Rs 86,110 crore (US$ 13.9 billion) at June 30, 2014.
ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector. The gross premium income of ICICI General was Rs. 1,638 crore (US$ 265 million) in Q2-2015 compared to Rs. 1,701 crore (US$ 275 million) in Q2-2014. ICICI General’s profit after tax for Q2-2015 was stable at Rs. 158 crore (US$ 26 million) compared to Rs. 156 crore (US$ 25 million) in Q2-2014.
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 website www.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.
1 crore = 10.0 million
US$ amounts represent convenience translations at US$1= Rs. 61.75
|