ICICI Bank announces results for quarter ended June 30, 2009
The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting
held at Mumbai on July 25, 2009, approved the audited unconsolidated accounts
and the unaudited consolidated accounts of the Bank for the quarter
ended June 30, 2009.
Profit & loss account
• Profit before tax increased 31% to Rs. 1,205 crore (US$ 252 million)
for the quarter ended June 30, 2009 (Q1-2010) from Rs. 922 crore
(US$ 192 million) for the quarter ended June 30, 2008 (Q1-2009).
• Profit after tax increased 21% to Rs. 878 crore (US$ 183 million) for
Q1-2010 from Rs. 728 crore (US$ 152 million) for Q1-2009.
• The net interest margin was maintained at 2.4%. Net interest income
for Q1-2010 was Rs. 1,985 crore (US$ 414 million) compared to Rs.
2,090 crore (US$ 436 million) for Q1-2009. The decrease in net
interest income was mainly due to the decrease in advances by
11.6%.
• The Bank earned treasury income of Rs. 714 crore (US$ 149 million)
in Q1-2010. The Bank positioned its treasury strategy to benefit from
the opportunities in equity and fixed income markets during the
quarter.
• Fee income for Q1-2010 at Rs. 1,319 crore (US$ 275 million) was
maintained at about the same level as for the quarter ended March
31, 2009 (Q4-2009). The lower level of fee income compared to Q1-
2009 was due to reduced investment and mergers & acquisition
activity in the corporate sector and lower level of fees from
distribution of retail financial products, reflecting the continued
impact of the adverse global economic conditions on the operating
environment.
• Operating expenses (including direct marketing agency expenses)
decreased 20% to Rs. 1,494 crore (US$ 312 million) in Q1-2010 from
Rs. 1,862 crore (US$ 389 million) in Q1-2009. The Bank achieved a
reduction in the cost/average asset ratio to 1.6% for Q1-2010 from
1.9% for Q1-2009, despite the reduction in total asset.
Balance sheet
The Bank has continued with its strategy of strengthening its deposit
franchise and maintaining high capitalization levels. This is reflected in the
Bank’s strong capital adequacy ratio, robust growth in savings account
deposits, increase in CASA ratio and reduction in wholesale term
deposits. The Bank has also placed strong emphasis on efficiency
improvement and cost rationalization. The Bank continues to invest in
expansion of its branch network to enhance its deposit franchise and
create an integrated distribution network for both asset and liability
products.
In line with the above strategy, the total deposits of the Bank were Rs.
210,236 crore (US$ 43.9 billion) at June 30, 2009, compared to Rs.
218,348 crore (US$ 45.6 billion) at March 31, 2009. During the quarter, the
Bank’s savings account deposits increased by Rs. 3,423 crore (US$ 715
million) resulting in an improvement in the CASA ratio to 30.4% at June
30, 2009 from 28.7% at March 31, 2009 and 27.6% at June 30, 2008.
The branch network of the Bank stood at 1,471 at July 24, 2009. The Bank
is in the process of implementing the 580 branch licenses received from
Reserve Bank of India which would expand the branch network to about
2,000 branches, giving the Bank a wide distribution reach in the country.
Reflecting the moderation in systemic credit offtake and the Bank’s
conscious strategy of risk containment, the loan book of the Bank
decreased to Rs. 198,102 crore (US$ 41.4 billion) at June 30, 2009 from
Rs. 224,146 crore (US$ 46.8 billion) at June 30, 2008. In Q1-2010, the
Bank’s agricultural loan portfolio reduced in line with the seasonal nature
of the business.
Capital adequacy
The Bank’s capital adequacy at June 30, 2009 as per Reserve Bank of
India’s Basel II norms was 17.4% and Tier-1 capital adequacy was 13.1%,
well above RBI’s requirement of total capital adequacy of 9.0% and Tier-1
capital adequacy of 6.0%.
Asset quality
At June 30, 2009, the Bank’s net non-performing asset ratio was 2.19%
compared to 1.96% at March 31, 2009, reflecting the decline in the loan
portfolio during the quarter.
Consolidated profits
Consolidated profit after tax of the Bank increased by 68% from Rs. 617
crore (US$ 129 million) in Q1-2009 to Rs. 1,035 crore (US$ 216 million) in
Q1-2010, driven primarily by higher profit after tax of ICICI Bank and sharp
reduction in losses of ICICI Prudential Life Insurance Company (ICICI Life).
Overseas banking subsidiaries
ICICI Bank Canada’s profit after tax for Q1-2010 was CAD 8.9 million. ICICI
Bank Canada’s capital position continued to be strong with a capital
adequacy ratio of 22.0% at June 30, 2009. ICICI Bank UK’s profit after tax
for Q1-2010 was USD 4.9 million. ICICI Bank UK’s capital position
continued to be strong with a capital adequacy ratio of 16.0% at June 30,
2009. Both ICICI Bank Canada and ICICI Bank UK continued to maintain
substantial excess liquidity during the quarter.
For Results of ICICI Insurance subsidiaries...Click here
(This is a press release from ICICI Bank)
