ICICI Bank Ltd Performance Review for Quarter ended December 31,
• Profit after tax of Rs. 1,272 crore; 25% increase over second
quarter
• 23% year-on-year increase in operating profit for the quarter
ended December 31, 2008
• Strong capital adequacy ratio of 15.6%; highest among large
Indian banks
• 19% year-on-year reduction in costs due to cost
rationalization measures
• Branch network increased to 1,416 branches
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, 2008 (Q3-2009).
Highlights
• The profit after tax for Q3-2009 was Rs. 1,272 crore (US$ 261 million)
which represents an increase of 25% over the profit after tax of Rs.
1,014 crore (US$ 208 million) in the quarter ended September 30,
2008 (Q2-2009). Profit after tax for the quarter ended December 31,
2007 (Q3-2008) was Rs. 1,230 crore (US$ 253 million).
• Operating profit for Q3-2009 was Rs. 2,771 crore (US$ 569 million)
which represents an increase of 23% over operating profit of Rs.
2,259 crore (US$ 464 million) for Q3-2008.
• Net interest income for Q3-2009 was Rs. 1,990 crore (US$ 409
million) compared to the net interest income of Rs. 1,960 crore (US$
402 million) for Q3-2008.
• The Bank earned treasury income of Rs. 976 crore (US$ 200 million)
in Q3-2009, primarily by positioning its treasury strategy to benefit
from the decline in yields on government bonds.
• Operating expenses decreased 19% to Rs. 1,680 crore (US$ 345
million) in Q3-2009 from Rs. 2,080 crore (US$ 427 million) for Q3-
2008. The cost/average asset ratio for Q3-2009 was 1.8% compared
to 2.2% for Q3-2008.
2
ICICI Bank Limited
ICICI Bank Towers
Bandra Kurla Complex
Mumbai 400 051
Operating review
During the current year, the Bank has pursued a strategy of lightening the
balance sheet and prioritizing capital conservation, liquidity management
and risk containment given the challenging economic environment. The
Bank has also placed strong emphasis on efficiency improvement and
cost rationalization. During Q3-2009, the Bank continued with this
strategy, while also taking advantage of market opportunities to increase
its treasury income. In line with the above strategy, the loan book of the
Bank stood at Rs. 212,521 crore (US$ 43.6 billion) at December 31, 2008.
Current and savings account (CASA) deposits constituted 27.4% of total
deposits at December 31, 2008 compared to 27.2% at December 31,
2007.
Branch network
The Bank continues to expand its branch network to enhance its deposit
franchise and create an integrated distribution network for both asset and
liability products. The branch network of the Bank has increased from 755
branches at March 31, 2007 to 1,416 branches at January 23, 2009. The
Bank has also received Reserve Bank of India’s approval to set up 580
branches which would expand the branch network to about 2,000
branches, giving the Bank a wide distribution reach in the country.
Capital adequacy
The Bank’s capital adequacy at December 31, 2008 as per Reserve Bank
of India’s revised guidelines on Basel II norms was 15.6% and Tier-1
capital adequacy was 12.1%, well above RBI’s requirement of total capital
adequacy of 9.0% and Tier-1 capital adequacy of 6.0%.
Asset quality
At December 31, 2008, the Bank’s net non-performing asset ratio was
1.95% on an unconsolidated basis. The consolidated net non-performing
advances ratio was about 1.73%.
Performance highlights of banking subsidiaries
ICICI Bank Canada saw an increase of about CAD 550 million in retail term
deposits during Q3-2009. ICICI Bank Canada’s customer base increased
from about 270,000 at September 30, 2008 to over 291,000 customers at
December 31, 2008. ICICI Bank Canada had liquidity of about CAD 1.1
billion at December 31, 2008. ICICI Bank Canada’s profit after tax for 9M-
2009 was CAD 32.9 million. ICICI Bank Canada’s capital adequacy ratio
was 16.1% at December 31, 2008.
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ICICI Bank Limited
ICICI Bank Towers
Bandra Kurla Complex
Mumbai 400 051
ICICI Bank UK saw an increase of about USD 530 million in retail term
deposits during Q3-2009. ICICI Bank UK’s customer base increased from
about 258,000 at September 30, 2008 to over 281,000 customers at
December 31, 2008. ICICI Bank UK had liquidity of about USD 1.0 billion at
December 31, 2008. After accounting for the gains on buyback of bonds
and mark-to-market provisions on the investment portfolio, ICICI Bank
UK’s profit after tax for 9M-2009 was USD 1.4 million. ICICI Bank UK’s
capital position continued to be strong with a capital adequacy ratio of
18.6% at December 31, 2008.
Performance highlights of insurance subsidiaries
ICICI Prudential Life Insurance Company (ICICI Life) maintained its market
leadership in the private sector with an overall market share of 12.0% in
retail new business weighted received premium during the nine month
period ended December 31, 2008 (9M-2009). ICICI Life’s total premium
increased by 28% to Rs 9,918 crore (US$ 2.0 billion) in 9M-2009. ICICI
Life’s renewal premium increased by 75%, reflecting the long term
sustainability of the business. ICICI Life’s unaudited New Business Profit
(NBP) in 9M-2009 was Rs. 712 crore (US$ 146 million). Due to the
business set-up and customer acquisition costs, which are not amortised,
and reserving for actuarial liability, ICICI Life’s statutory accounting results
reduced the consolidated profit after tax of ICICI Bank by Rs. 565 crore
(US$ 116 million) in 9M-20091. Assets held increased to Rs. 28,445 crore
(US$ 5.8 billion) at December 31, 2008.
ICICI Lombard General Insurance Company (ICICI General) maintained its
leadership in the private sector with an overall market share of 12.2%
during April-November 2008. ICICI General’s premiums increased 4.1%
on a year-on-year basis to Rs. 2,722 crore (US$ 559 million) in 9M-2009.
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