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ICICI Bank – Q3 FY15 Performance Review | ||
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Jan 30, 2015 14:30 IST
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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 December 31, 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 strong growth in the retail loan portfolio. The Bank continued to strengthen its deposit franchise with healthy mobilisation of current & savings account (CASA) deposits, leveraging its branch network and technology initiatives. During the quarter, the Bank added 35 branches and 352 ATMs to its network. At December 31, 2014, the Bank had 3,850 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 centres at December 31, 2014. The Bank’s ATM network increased to 12,091 ATMs at December 31, 2014 compared to 11,215 at December 31, 2013. The Bank also continued to strengthen its technology channels for increasing customer convenience. During the quarter, the Bank launched the country’s first contactless debit and credit cards that use near-field communication, or NFC, techonology. The Bank has extended its ‘Pockets by ICICI Bank’ application on Facebook to its Non-Resident Indian customers. The Bank recently launched banking services on Twitter, becoming the first bank in India to do so.
Credit growth Total advances increased by 13% year-on-year to Rs. 375,345 crore (US$ 59.5 billion) at December 31, 2014 from Rs. 332,632 crore (US$ 52.8 billion) at December 31, 2013. The year-on-year growth in domestic advances was 16%. The Bank has continued to see robust growth in its retail disbursements resulting in a year-on-year growth of 26% in the retail portfolio at December 31, 2014. The retail portfolio constituted about 41% of the loan portfolio of the Bank at December 31, 2014.
Deposit growth The Bank has seen healthy trends in CASA deposit mobilisation. During Q3-2015, savings account deposits increased by Rs. 4,927 crore (US$ 782 million). The Bank’s CASA ratio improved to 44.0% at December 31, 2014 from 43.7% at September 30, 2014. The average CASA ratio for Q3-2015 was at 39.3%. Total deposits increased by 12% year-on-year to Rs. 355,340 crore (US$ 56.4 billion) at December 31, 2014. Total CASA deposits increased by 14% year-on-year to Rs. 156,449 (US$ 24.8 billion) at December 31, 2014.
Capital adequacy In line with Reserve Bank of India’s Basel III guidelines, the capital ratios reported by the Bank for December 31, 2014 do not include the profits for 9M-2015. Including the profits for 9M-2015, the capital adequacy ratio for the Bank as per Basel III norms would have been 17.57% and the Tier I ratio would have been 12.96% at December 31, 2014. Excluding profits for 9M-2015, the capital adequacy ratio was 16.39% and Tier-1 capital adequacy was 11.78%, well above the regulatory requirements.
Asset quality Net non-performing assets at December 31, 2014 were Rs. 4,831 crore (US$ 766 million) compared to Rs. 3,997 crore (US$ 634 million) at September 30, 2014 and Rs. 3,121 crore (US$ 495 million) at December 31, 2013. The net non-performing asset ratio was 1.12% at December 31, 2014 compared to 0.96% at September 30, 2014 and 0.81% at December 31, 2013. The Bank’s provision coverage ratio, computed in accordance with RBI guidelines, was 63.5% at December 31, 2014. Net loans to companies whose facilities have been restructured were Rs. 12,052 crore (US$ 1.9 billion) at December 31, 2014 compared to Rs. 11,020 crore (US$ 1.7 billion) at September 30, 2014 and Rs. 8,602 crore (US$ 1.4 billion) at December 31, 2013.
Consolidated results Consolidated profit after tax increased by 14% to Rs. 3,265 crore (US$ 518 million) for Q3-2015 from Rs. 2,872 crore (US$ 456 million) for Q3-2014. The annualised consolidated return on equity was 15.5% in Q3-2015.
Insurance subsidiaries ICICI Prudential Life Insurance Company (ICICI Life) achieved profit after tax of Rs. 462 crore (US$ 73 million) for Q3-2015 compared to Rs. 428 crore (US$ 68 million) for Q3-2014. ICICI Life maintained its leadership in the private sector. ICICI Life’s retail weighted received premium increased by 37.5% from Rs. 2,190 crore (US$ 347 million) in 9M-2014 to Rs. 3,011 crore (US$ 478 million) in 9M-2015. ICICI Life’s annualised premium equivalent (APE) was Rs. 1,290 crore (US$ 205 million) in Q3-2015 compared to Rs. 868 crore (US$ 138 million) in Q3-2014. ICICI Life’s assets under management were Rs. 94,593 crore (US$ 15.0 billion) at December 31, 2014 compared to Rs. 77,393 crore (US$ 12.3 billion) at December 31, 2013 and Rs. 90,726 crore (US$ 14.4 billion) at September 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. 1,708 crore (US$ 271 million) in Q3-2015 compared to Rs. 1,738 crore (US$ 276 million) in Q3-2014. ICICI General’s profit after tax increased to Rs. 176 crore (US$ 28 million) in Q3-2015 compared to Rs. 76 crore (US$ 12 million) in Q3-2014.
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.
For further press queries please call Sujit Ganguli at 91-22-2653 8525 or email ganguli.sujit@icicibank.com.
For investor queries please call Anindya Banerjee/Nayan Bhatia at 91-22-2653 7144 or email ir@icicibank.com.
1 crore = 10.0 million
US$ amounts represent convenience translations at US$1= Rs. 63.04
For detailed press release, click here For detailed results table, click here
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