Icici Bank Limited · NSE:ICICIBANK
Icici Bank — Q1 FY2004 Earnings Presentation
20 slides from Icici Bank's earnings presentation, Jul 28, 2003
Slide 1: Form 6-K Report of Foreign Issuer, July 2003
United States Securities and Exchange Commission Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 For the month of July 2003 ICICI Bank Limited (Translation of registrant’s name into English) ICICI Bank Towers, Bandr
Slide 2: Performance Review: Q1-2004
By : /s/ Jyotin Mehta Name : Jyotin Mehta Title : General Manager & Company Secretary Item 1 Performance Review: Q1-2004 July 25, 2003 Highlights
Slide 3: Highlights
• 34% increase in profit after tax to Rs. 3.40 bn compared to Rs. 2.53 bn in Q1-2003 • Net interest margin improved to 1.7% for Q1- 2004 compared to 1.4% for FY2003 • Equity capital gains of Rs. 0.76 bn • Capitalising on favourable market conditions to unlock value from historic long term investment
Slide 4: Highlights: Retail, NPA and deposits
• Sustained growth in retail portfolio, now constituting 35% of customer assets • Net NPA ratio at 4.9% after compliance with 90-day norm • Deposit growth of 12% in the quarter • Deposits constitute 57% of funding • About Rs. 23.00 bn of erstwhile ICICI borrowings repaid in Q1-2004 3 Profit & loss s
Slide 5: Profit & loss statement
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 Interest income 93.15 23.96 23.811 22.56 Interest expense 79.44 20.60 19.96 18.40 NII 13.71 3.36 3.851 4.16 Non-interest income 20.20 4.60 4.621 6.44 - Fee income 8.47 1.95 2.27 2.36 - Treasury 5.00 0.97 0.701 2.61 Of which: Equity 1.09 0.11 0.13 0
Slide 6: Profit & loss statement
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 Operating income 33.91 7.96 8.47 10.60 Operating expense 15.35 3.51 4.30 4.63 Other DMA expense 1.62 0.13 0.56 0.58 Lease depreciation 3.14 0.79 0.80 0.73 Operating profit 13.80 3.53 2.81 4.66 5 Profit & loss statement
Slide 7: Profit & loss statement
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 Operating profit 13.80 3.53 2.81 4.66 Profit on sale of ICICI Bank 11.91 - - - shares Less: - Provisions incl. addl. provision on loans 21.34 1.30 1.19 1.80 - Writeback on loans (4.04) (0.57) (1.86) (0.55) - Provisions/(writeback) on investments 0.
Slide 8: Balance sheet: Assets
(Rs. in billion) Mar 31, Mar 31, Jun 30, 2002 2003 2003 Cash, balances with banks & SLR 355.78 320.72 338.30 - Cash & bank balances 127.86 64.89 68.01 - SLR investments 227.92 255.83 270.29 Advances 470.35 532.79 543.80 Of which : Retail 61.25 191.32 225.35 Debentures & bonds 64.36 56.90 60.08 Other
Slide 9: Balance sheet: Liabilities
1. Includes advance tax, deferred tax & other current assets 8 Balance sheet: Liabilities (Rs. in billion) Mar 31, Mar 31, Jun 30, 2002 2003 2003 Net worth 62.45 69.33 72.73 - Equity capital 6.13 6.13 6.13 - Reserves 56.32 63.20 66.61 Preference capital 3.50 3.50 3.50 Deposits 320.85 481.69 538.53 -
Slide 10: Key ratios
(Per cent) FY Q1- 2003 2004 Return on assets 1.2 1.2 Return on net worth 18.3 19.2 EPS (Rs.) 19.7 22.2 NIM 1.4 1.7 Cost of deposits 6.8 6.0 Cost to income 49.9 46.9 Book value per share (Rs.) 113.1 118.7 10 Capital adequacy
Slide 11: Capital adequacy
Mar 31, 2003 Jun 30, 2003 Rs. bn % Rs. bn % Total capital 91.46 11.10 94.85 11.15 - Tier I1 58.07 7.05 60.27 7.09 - Tier II 33.39 4.05 34.58 4.06 Total risk weighted assets 823.81 850.53 1. Deferred tax asset netted off as per RBI guidelines Rs.5.03 bn at June 30, 2003 and Rs. 4.88 bn at March 31, 2
Slide 12: Consolidated profits
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 ICICI Bank standalone profit 12.06 2.53 3.38 3.40 Add: - ICICI Securities 1.08 0.18 0.32 0.63 - ICICI Prudential Life (1.09) (0.25) (0.18) (0.26) Less: - Dividend and other 1.09 0.17 0.32 0.40 adjustments Consolidated profit 11.52 2.33 3.37 3.37 12
Slide 13: Performance of key subsidiaries
(Rs. in million) Profit after tax FY2003 Q1-2003 Q4-2003 Q1-2004 ICICI Securities1 1,082 177 318 627 ICICI Prudential (1,471) (335) (234) (351) ICICI Lombard 33 (32) 13 64 1. Consolidated 13 Asset quality and provisioning
Slide 14: Asset quality and provisioning
(Rs. in billion) June March 30, 31, 2003 2003 Gross NPAs 84.14 86.75 Less: cumulative write-offs 25.26 25.55 Less: cumulative provisions 27.37 29.21 Net NPAs 31.51 31.99 Provision cover on NPAs 62.6% 63.1% • Net NPA ratio at 4.9%, based on 90-day norm • Net restructured assets at Rs. 104.91 bn • 5.5
Slide 15: Top 10 industry-wise exposure
(% to total) March June Industry 31, 30, 2003 2003 Retail finance 22.9 24.1 Power 10.1 9.1 Iron & steel 9.6 9.0 Telecom 5.2 6.7 Textiles 4.9 4.2 Other services 8.5 4.2 Engineering 3.5 3.8 Financial services 3.7 3.7 Crude petroleum & refining 5.4 3.1 Petrochemicals 2.6 2.6 Total exposure (Rs. bn) 840
Slide 16: Top 10 industry-wise net NPLs
(% to total) June Industry March 30, 31, 2003 2003 Textiles 16.3 18.0 Iron & Steel 13.3 11.1 Chemicals 8.7 9.2 Man-made fibres 9.8 7.7 Engineering 8.9 6.9 Metal & metal Products 6.9 6.2 Services 4.8 4.2 Paper & paper products 3.0 3.0 Food-processing 3.2 2.8 Petrochemicals 2.7 2.4 16 Shareholding pat
Slide 17: Thank you
17 Thank you 18 Interest income
Slide 18: Interest income
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 Advances 60.16 14.68 15.60 15.69 Investments 28.571 8.06 6.581 6.01 Balances with RBI, banks and others 4.42 1.22 1.63 0.86 Total interest income 93.15 23.96 23.81 22.56 • Interest income is net of • HTM premium amortisation of Rs. 0.35 bn (Q1-2003
Slide 19: Interest expense
(Rs. in billion) FY Q1- Q4- Q1- 2003 2003 2003 2004 Deposits 24.80 5.97 6.67 7.27 RBI / inter-bank 1.83 0.47 0.59 0.87 borrowings Bonds, ICICI borrowings 52.81 14.16 12.70 10.26 & others Total interest expense 79.44 20.60 19.96 18.40 20 Operating expenses
Slide 20: Operating expenses
(Rs. in billion) FY Q1- Q4 - Q1- 2003 2003 2003 2004 Salary 4.03 0.89 1.19 1.19 Rents, taxes & lighting 1.12 0.28 0.27 0.35 Printing & stationery 0.75 0.13 0.22 0.21 Postage & courier 1.04 0.23 0.36 0.32 Repairs & maintenance 1.45 0.40 0.36 0.45 Insurance 0.25 0.05 0.08 0.09 Bank charges 0.23 0.05 0