Icici Bank Limited · NSE:ICICIBANK
Icici Bank — Q4 FY2022 Earnings Presentation
100 slides from Icici Bank's earnings presentation, Apr 25, 2022
Slide 1: Exchange cover letter: earnings call for quarter ended March 31, 2022
April 23, 2022 BSE Limited National Stock Exchange of India Limited Listing Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th floor Dalal Street Plot No. C/1, G Block Mumbai 400 001 Bandra-Kurla Complex Bandra(East Mumbai 400 051 Dear Madam/Sir, Sub: Earnings call for quart
Slide 2: Q4-2022: Performance review
Q4-2022: Performance review April 23, 2022
Slide 3: Forward-looking statements
Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities laws including the US Private Securities Litigat
Slide 4: Highlights for Q4-2022
Highlights for Q4-2022 3
Slide 5: Key highlights for Q4-2022 (1/2)
Key highlights for Q4-2022 (1/2) • Growth of 18.7% y-o-y to ` 101.64 bn in Q4-2022 Core • Excluding dividend income from subsidiaries/associates, growth of 21.0% y- operating o-y in Q4-2022 profit1 • Growth of 22.3% y-o-y to ` 383.47 bn in FY2022 • Average current account deposits increased by 23.6%
Slide 6: Key highlights for Q4-2022 (2/2)
Key highlights for Q4-2022 (2/2) • Net NPA ratio declined to 0.76% at Mar 31, 2022 from 0.85% at Dec 31, 2021 • Net deletions of ` 4.89 bn from gross NPAs in Q4-2022 (Q3-2022: ` 1.91 bn) • Total provisions of ` 10.69 bn in Q4-2022 (0.53% of average loans, 10.5% of Asset core operating profit) qualit
Slide 7: Operating performance
Operating performance 6
Slide 8: P&L trends: Q4-2022
P&L trends: Q4-2022 Net interest margin (%) Fee income 4.00 in Q4-2022; 3.96 in FY2022 Growth of 14.4% y-o-y to ` 43.66 billon (Q4-2021: 3.84; FY2021: 3.69) Core operating profit to average Provision to core operating profit (%) assets (%) 10.5 in Q4-2022; 22.5 in FY2022 3.06 in Q4-2022; 3.03 in FY2
Slide 9: Profit & loss statement
Profit & loss statement (` billion) FY2021 Q4- Q3- Q4- FY2022 Q4-o-Q4 2021 2022 2022 (%) Net interest income1 389.89 104.31 122.36 126.05 474.66 20.8% Non-interest income 139.23 41.37 48.99 46.08 176.14 11.4% - Fee income 126.59 38.15 42.91 43.66 156.87 14.4% - Dividend income2 12.34 3.57 6.03 2.32
Slide 10: Profit & loss statement
Profit & loss statement (` billion) FY2021 Q4- Q3- Q4- FY Q4-o-Q4 2021 2022 2022 2022 (%) Core operating profit 313.51 85.65 100.60 101.64 383.47 18.7% Treasury income 50.461 (0.25) 0.88 1.29 9.03 - Operating profit 363.97 85.40 101.48 102.93 392.50 20.5% Net provisions 162.14 28.83 20.07 10.69 86.4
Slide 11: Key ratios
Key ratios Percent FY2021 Q4- Q3- Q4- FY 2021 2022 2022 2022 Net interest margin1,4 3.69 3.84 3.96 4.00 3.96 Cost of deposits4 4.12 3.80 3.47 3.48 3.53 Cost-to-income 39.72 41.3 41.1 40.6 40.5 Provisions/core operating profit 36.63 22.03 20.0 10.5 22.5 Provisions/average advances4 1.753 1.093 1.01 0
Slide 12: Unconsolidated segment-wise PBT
Unconsolidated segment-wise PBT Profit before tax FY2021 Q4- Q3- Q4- FY (` billion) 2021 2022 2022 2022 Retail 77.40 22.98 37.62 46.43 114.00 Wholesale 58.20 25.25 19.90 32.78 90.53 Treasury 110.80 18.09 22.40 23.24 98.20 Others 2.93 0.25 1.49 0.04 3.11 Unallocated1 (47.50) (10.00) - (10.25) 0.25 To
Slide 13: Balance sheet growth
Balance sheet growth 12
Slide 14: Deposits
Deposits (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2021 2021 2022 growth Mar 31, 2022 CASA 4,316.23 4,806.56 5,184.37 20.1% 47.2% - Current 1,361.70 1,460.43 1,584.80 16.4% 14.4% - Savings 2,954.53 3,346.13 3,599.57 21.8% 32.8% Term 5,008.99 5,368.11 5,461.35 9.0% 52.8% Total deposits 9,3
Slide 15: Loan portfolio
Loan portfolio (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2021 2021 2022 growth Mar 31, 20224 Retail 3,797.35 4,287.35 4,546.35 19.7% 52.9% Rural loans 721.58 736.85 768.30 6.5% 8.9% Business banking 373.27 484.84 534.37 43.2% 6.2% SME1 302.84 363.53 404.50 33.6% 4.7% Domestic corporate an
Slide 16: Retail portfolio
Retail portfolio (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at Mar 2021 2021 2022 growth 31, 2022 Mortgages 2,436.54 2,782.67 2,930.63 20.3% 64.5% Vehicle loans 641.54 658.64 680.51 6.1% 15.0% - Auto finance 362.39 387.37 403.20 11.3% 8.9% - Commercial vehicle and 265.16 256.71 261.67 (1.3)%
Slide 17: Portfolio of overseas branches
Portfolio of overseas branches Total outstanding1 at Mar 31, 2022: USD 3.65 billion The overseas non-India linked corporate portfolio reduced by 48.2% year-on-year or about USD 597 million and 6.8% sequentially or about USD 47 million at March 31, 2022 1. Corporate fund and non-fund outstanding of o
Slide 18: Growing digital platforms
Growing digital platforms 17
Slide 19: iMobile Pay: Universal Super App
iMobile Pay : Universal Super App iMobile Pay 3.0 Tap2Pay Bill Any Bank Personal Invest, Offers & Payment Scan2Pay Card Finance Insure & Loans Shopping & Pay2Contact payment Mgmt Tax Recharge One app for All Banks | Seamless Journeys | Hyper Personalization iMobile 2.0 One App Strategy Products & Se
Slide 20: iMobile Pay – Built for all, Built for scale
iMobile Pay – Built for all, Built for scale Send money: Pay to Contact Industry First Scan to Pay Bill payments, FASTag & recharges ~6.3 million activations from non-ICICI Bank customers Open savings a/c Live with end-to-end 4.9X in value of Credit card digital transactions1 journeys from Home loan
Slide 21: Seamless payment features driving growth
Seamless payment features driving growth UPI -iMobile Pay Scan to Pay Number of transactions Number of transactions 3.2x y-o-y1 3.2x y-o-y1 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Industry Pay to contact Mobile banking transactions avg ticket size first 2x of
Slide 22: New features on iMobile Pay
New features on iMobile Pay Outward remittance using iMobile Pay Smart checkout Launched in February 2022 Launched in February 2022 Fingerprint/ No need to MPIN Seamless remember user payment customer ID and password completion experience Move towards Better App-to-app transition, transactions less
Slide 23: Digital solutions for merchant ecosystem
Digital solutions for merchant ecosystem • Super merchant account: Zero balance, swipe based benefits • Enabling Eazypay POS/QR onboarding for savings customers and non-ICICI Bank account holders • Digital POS solutions through Eazypay (POS, UPI, Cards, etc.) • PG: Eazypay Pro , POS: Eazypay Platinu
Slide 24: InstaBIZ is now interoperable for merchants
InstaBIZ is now interoperable for merchants Benefits of the app available to all merchants including those who do not have a current account with the Bank Key Digital features All-in-one Instant Paperless collection Create Loyalty Apply for digital app activation KYC solution: UPI POS rewards ID, QR
Slide 25: InstaBIZ: Universal app for small business
InstaBIZ: Universal app for small business Key features Key metrics 44% value of financial transactions2 4.7 TOP SERVICES Dec’21 27% count of financial transactions2 88%+ Payments on digital channels3 COLLECT © GlobalLinker. All rights THROUGH reserved 1.49x Balances of digitally active vs inactive
Slide 26: BizPay360 – Bulk Payment Solution
BizPay360 – Bulk Payment Solution Digital onboarding with instant activation 67% Choose your debit type – consolidated / individual Q-o-Q growth in customer registrations1 Customized debit credit narration for ease in reconciliation 50,000+ registrations Upto 10 onscreen payments with single OTP 65%
Slide 27: Business banking: Digital initiatives
Business banking: Digital initiatives Paperless overdraft process Contactless disbursement Collateral free overdraft upto ` 51 million Digital document Remote access to On the fly e- stamping, e-sign generation and digital documents and document scrutiny by signor Offerings to pre-approved customers
Slide 28: Supply chain platforms driving growth
Supply chain platforms driving growth Increasing value of 2.7x y-o-y Increasing value of throughput outstanding book 2.7x y-o-y Digital penetration in dealers and vendors Plug-and-play solution Open architecture solution Real time status update across journey Algorithm Seamless API integration ERP i
Slide 29: Growing corporate ecosystem through execution
Growing corporate ecosystem through execution… Seamless execution … Superior experience … Market share & income growth Digital onboarding 1.8x 1.4x efficiency | coverage | wallet share FY21 FY22 FY21 FY22 Distribution Technology Digital transaction Value of transactions done Growth in integrations |
Slide 30: Expanding digital reach across corporate ecosystem
Expanding digital reach across corporate ecosystem… Value driven by recent initiatives Capital Market Ecosystem End-to-end blockchain Enabling seamless onboarding One stop solution for all solution for domestic trade and transaction for investors trade needs 33 1.67x 1.4x New customers since launch
Slide 31: Digital sourcing for retail products in FY2022
Digital sourcing for retail products in FY2022 Personal loan Credit cards (by volume) SIPs initiated (by volume) disbursements (by volume) Term life insurance Fixed deposits Mortgages policies sold online (by volume) (Number of sanctions) 30
Slide 32: Digital payments: credit and debit cards
Digital payments: credit and debit cards Debit card spends Credit card spends 1.8x y-o-y ` ` Increasing market share1 (%) Tied up with Emirates Partnerships Skywards, an award-winning Issued 3 mn+ cards loyalty programme of Emirates and FlyDubai 1. Source: RBI 31
Slide 33: Digital payments
Digital payments UPI: P2M1 transactions Electronic toll collections Value: 2.4x y-o-y; Volume: 1.7x y-o-y 27.4% y-o-y ` ` Market share by volume was 15% in Q4- Market share by value was 33% in 2022; ranked 3rd in the industry Q4-2022; ranked 1st in the industry 1. Payments to merchants 32
Slide 34: Asset quality trends
Asset quality trends 33
Slide 35: NPA trends
NPA trends (` billion) Mar 31, Dec 31, Mar 31, 2021 2021 2022 Gross NPAs1 413.73 370.53 339.20 Less: cumulative provisions 321.93 297.09 269.59 Net NPAs1 91.80 73.44 69.61 Gross NPA ratio1 4.96% 4.13% 3.60% Net NPA ratio1 1.14% 0.85% 0.76% Provision coverage ratio 77.7% 79.9% 79.2% Non-fund o/s to N
Slide 36: NPA movement
NPA movement1 ` in billion FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 Opening gross NPA 414.09 348.60 414.37 370.53 413.73 Add: gross additions (1) 161.23 118.182 40.18 42.04 192.91 - Retail, rural and business banking 128.25 99.56 38.533 37.36 173.57 - Corporate and SME 32.98 18.62 1.65 4.68 19.34 Less:
Slide 37: Resolution under RBI frameworks
Resolution under RBI frameworks • The total fund based outstanding to all standard borrowers, under resolution as per the various frameworks was ₹ 82.67 billion or about 1.0% of the total loan portfolio at Mar 31, 2022 (Dec 31, 2021: ₹ 96.84 billion) • The sequential decline in outstanding was mainl
Slide 38: Standard asset and other provisions
Standard asset and other provisions (` billion) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2021 2021 2021 2021 2022 Contingency provisions1 74.75 64.25 64.25 64.25 74.50 Provision on non-fund based o/s to 14.92 16.55 17.71 19.57 20.51 NPAs Provisions on fund based o/s to 7.16 8.99 19.50 24.36 25.30 sta
Slide 39: Loan portfolio information
Loan portfolio information 38
Slide 40: Diversified and granular loan book
Diversified and granular loan book Breakup of loan portfolio1 at Mar 31, 2022 52.9% of total loans are retail3 Retail portfolio largely secured and built on proprietary data and analytics in addition to bureau checks and well-priced in relation to risk 2 Focus on granular exposures and higher rated
Slide 41: Rating-wise loan book, excluding retail and rural portfolio
Rating-wise loan book, excluding retail and rural portfolio Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Rating category1 2018 2019 2020 2021 2022 AA- and above 21.2% 25.3% 27.3% 35.3% 36.1% A+, A, A- 25.1% 32.5% 36.9% 33.7% 35.7% A- and above 46.3% 57.7% 64.2% 69.1% 71.8% BBB+,BBB, BBB- 34.5% 33.4% 29.8
Slide 42: Corporate and SME: BB and below
Corporate and SME: BB and below ` billion Mar 31, Dec 31, Mar 31, 20211 2021 2022 BB and below outstanding1 130.98 118.42 108.08 - Fund and non-fund o/s to borrowers with loans 14.05 36.92 23.89 under resolution - Other borrowers with o/s greater than ` 1.00 bn2 79.17 52.34 58.81 - Other borrowers w
Slide 43: Movement in Corporate & SME BB and below: Q4-2022
Movement in Corporate & SME BB and below: Q4-2022 (` billion) 1,2 1,2 1. Fund-based and non-fund based outstanding 2. Excludes banks, investments and fund and non-fund based outstanding to NPAs 42
Slide 44: Mortgage portfolio
Mortgage portfolio Mortgage portfolio includes home loans ~70%, top-up loans given to existing home loan customers 6%, office premises loans ~5% and loan against property ~19% Home loans are geographically well diversified, built on fundamental premises of cashflow assessment of underlying borrower
Slide 45: Auto and two wheeler finance
Auto and two wheeler finance Auto loan portfolio comprises 86% new vehicles and 14% used vehicles Instant car loan disbursement, a industry first proposition, for pre-approved customers; delivery order is generated digitally in a seamless manner. The product won the ‘Best Automobile/Car Loan Product
Slide 46: Rural and personal loan and credit card portfolio
Rural and personal loan and credit card portfolio Rural loans Personal loans and credit cards Gold loans comprise ~2% and kisan credit cards Personal loan disbursements increased comprise ~3% of the total loan book sequentially Leverage opportunities for growth Growth in credit card spends driven by
Slide 47: SME and business banking portfolio
SME and business banking portfolio Growth driven by leveraging distribution network and digital platforms such as InstaBIZ, Merchant STACK and Trade Online and efforts towards process decongestion such as e-signing of disbursement documents through EasySign Focus on parameterised and programme based
Slide 48: Exposure to power sector
Exposure to power sector (` billion) Mar 31, Dec 31, Mar 31, Share at Mar 2021 2021 2022 31, 2022 (%) Borrowers classified as NPA/proforma NPA 82.21 75.79 73.24 18.3% or part of BB and below portfolio1 Other borrowers 276.39 301.42 327.47 81.7% Total 356.59 377.21 400.71 100.0% • Of the other borrow
Slide 49: NBFCs, HFCs and builder portfolio
NBFCs, HFCs and builder portfolio Outstanding (` billion) Mar 31, Dec 31, Mar 31, 2021 2021 2022 NBFCs1 486.47 557.84 601.44 HFCs1 158.62 118.02 84.88 Builder portfolio (construction finance, lease rental 226.71 257.53 269.48 discounting, term loans and working capital loans) • Proportion of the NBF
Slide 50: Concentration risk ratios
Concentration risk ratios Details Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, 2018 2019 2020 2021 2022 Exposure to top 20 12.5% 10.8% 11.0% 12.1% 9.6% borrowers1 as a % of total exposure Exposure to top 10 groups 14.3% 13.6% 12.1% 11.6% 10.3% as a % of total exposure • Hard limit on borrower groups base
Slide 51: Capital
Capital 50
Slide 52: Strong capital position
Strong capital position Dec 31, 2021 Mar 31, 20221 (` billion) % (` billion) % Total capital 1,530.72 17.91% 1,693.13 19.16% - Tier I 1,446.86 16.93% 1,621.21 18.35% - of which: CET1 1,347.47 15.77% 1,555.00 17.60% - Tier II 83.85 0.98% 71.92 0.81% Risk weighted assets 8,546.87 8,835.91 - On balance
Slide 53: Group companies
Group companies 52
Slide 54: Profit after tax of key subsidiaries and associates
Profit after tax of key subsidiaries and associates Profit after tax (` billion) FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 ICICI Prudential Life Insurance 9.60 0.64 3.11 1.85 7.54 ICICI Lombard General Insurance3 14.73 3.46 3.18 3.13 12.71 ICICI Prudential Asset Management1 12.45 3.48 3.34 3.57 14.54 IC
Slide 55: Insurance entities
Insurance entities ICICI Prudential Life Insurance • New business premium grew by 15.4% y-o-y to ` 150.36 billion in FY2022 • Value of new business (VNB) grew by 33.4% y-o-y to ` 21.63 billion in FY2022; VNB margins increased from 25.1% in FY2021 to 28.0% in FY2022 • Annuity new business premium gre
Slide 56: ICICI Securities and ICICI AMC
ICICI Securities and ICICI AMC ICICI Securities • Revenue1 grew by 33.0% to ₹ 34.38 billion in FY2022 from growth across all businesses • New client acquisition of ~ 2.3 mn in FY2022; highest ever in a year • Overall active clients grew by ~77.5% y-o-y to 3.4 million in Q4-2022 • Profit after tax1 g
Slide 57: Environmental, Social and Governance (ESG) initiatives
Environmental, Social and Governance (ESG) initiatives 56
Slide 58: ESG @ ICICI Bank
ESG @ ICICI Bank The Bank has adopted a Board approved ESG policy along with a governance and oversight framework for ESG • Adopting sustainable business practices that ensure long-term success of the organization and have a positive impact on the environment and society Philosophy • To promote long
Slide 59: Key focus areas of ESG (1/2)
Key focus areas of ESG (1/2) Responsible financing Customers • Social and Environmental Management • Committed to the principle of “Fair to Framework for screening new project finance Customer, Fair to Bank” proposals • Various customer related policies like • Incorporating ESG and climate risk aspe
Slide 60: Key focus areas of ESG (2/2)
Key focus areas of ESG (2/2) Corporate governance Society Effective independent Board; separation • Dedicated focus through ICICI of the Board’s supervisory role from the Foundation in areas of skill development, executive management rural livelihoods, value chain Policies like Whistleblower, an
Slide 61: Thank you
ICICI Bank Thank you
Slide 62: Additional financial information
Additional financial information 61
Slide 63: Yield, cost and margin
Yield, cost and margin Movement in yield, costs & FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 margins (Percent)1 Yield on total interest-earning 7.49 7.31 7.15 7.19 7.21 assets2 - Yield on advances 8.76 8.45 8.19 8.31 8.27 Cost of funds 4.25 3.95 3.66 3.68 3.71 - Cost of deposits 4.12 3.80 3.47 3.48 3.53
Slide 64: Consolidated profit & loss statement
Consolidated profit & loss statement (` billion) FY2021 Q4- Q3- Q4- FY Q4-o-Q4 2021 2022 2022 2022 growth Net interest income 465.04 123.45 139.41 143.66 542.40 16.4% Non-interest income 720.30 212.69 155.52 178.34 621.29 (16.2)% - Fee income 161.95 48.62 54.82 55.30 203.35 13.7% - Premium income 47
Slide 65: Consolidated profit & loss statement
Consolidated profit & loss statement (` billion) FY2021 Q4- Q3- Q4- FY2022 Q4-o-Q4 2021 2022 2022 growth Operating profit 422.62 98.80 111.51 115.28 432.17 16.7% Contingency provisions1 47.50 10.00 - 10.25 (0.25) 2.5% Other provisions 116.28 19.23 21.28 0.79 90.02 (95.9)% Profit before tax 258.84 69
Slide 66: Key ratios (consolidated)
Key ratios (consolidated) Percent FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 Return on equity1 13.0 12.8 15.1 17.5 14.8 Weighted average EPS1 (`) 27.3 28.7 37.4 45.1 36.2 Book value (`) 228 228 252 262 262 slide 10 1. Annualised for all interim periods 65
Slide 67: Balance sheet: liabilities
Balance sheet: liabilities (` billion) Mar 31, 2021 Dec 31, 2021 Mar 31, 2022 Net worth 1,475.09 1,630.69 1,705.12 - Equity capital 13.83 13.89 13.90 - Reserves 1,461.26 1,616.80 1,691.22 Deposits 9,325.22 10,174.67 10,645.72 - Current 1,361.70 1,460.43 1,584.80 - Savings 2,954.53 3,346.13 3,599.57
Slide 68: Composition of borrowings
Composition of borrowings (` billion) Mar 31, Dec 31, Mar 31, 2021 2021 2022 Domestic 616.88 833.19 753.10 - Capital instruments 172.46 172.50 138.51 - Other borrowings 444.42 660.69 614.59 - Long term infrastructure bonds 194.67 307.89 387.84 Overseas borrowings1 299.43 262.66 319.21 Total borrowin
Slide 69: Consolidated balance sheet
Consolidated balance sheet (` billion) Mar 31, 2021 Dec 31, 2021 Mar 31, 2022 Cash & bank balances 1,475.71 1,956.15 1,831.26 Investments 5,365.79 5,318.23 5,670.98 Advances 7,918.01 8,745.94 9,203.08 Fixed & other assets 978.61 808.72 821.05 Total assets 15,738.12 16,829.04 17,526.37 Net worth 1,57
Slide 70: Branch and ATM network
Branch and ATM network Branches Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, % share at 2018 2019 2020 2021 2022 Mar 31, 2022 Metro 1,443 1,438 1,585 1,542 1,567 29% Urban 991 991 1,067 1,063 1,074 20% Semi urban 1,449 1,453 1,546 1,537 1,599 30% Rural 984 992 1,126 1,124 1,178 21% Total branches 4,867 4
Slide 71: Balance sheet: assets
Balance sheet: assets (` billion) Mar 31, Dec 31, Mar 31, 2021 2021 2022 Cash & bank balances 1,331.28 1,809.09 1,678.22 Investments 2,812.87 2,848.23 3,102.41 - SLR investments 2,136.10 2,335.23 2,563.78 - Equity investment in subsidiaries2 97.57 75.91 67.13 Advances 7,337.29 8,139.92 8,590.20 Fixe
Slide 72: Equity investment in subsidiaries
Equity investment in subsidiaries (` billion) Mar 31, Dec 31, Mar 31, 2021 2021 2022 ICICI Prudential Life Insurance 32.75 32.75 32.75 ICICI Bank Canada 18.74 18.74 9.96 ICICI Bank UK 18.05 9.70 9.70 1 1 ICICI Lombard General Insurance 13.31 - - ICICI Home Finance 11.12 11.12 11.12 ICICI Securities
Slide 73: Portfolio composition
Portfolio composition Mar 31, 2021 Dec 31, 2021 Mar 31, 2022 Domestic 90.0% 90.8% 91.2% International 10.0% 9.2% 8.8% Total consolidated advances 7,918 8,746 9,203 (` billion) slide 14 72
Slide 74: Retail, rural and business banking NPAs
Retail, rural and business banking NPAs Mar 31, Dec 31, Mar 31, ` in billion 2021 2021 2022 Gross retail, rural and business banking NPAs 151.30 135.94 128.32 - as a % of gross advances 3.04% 2.43% 2.17% Net retail, rural and business banking NPAs 62.63 55.21 53.05 - as a % of net advances 1.28% 1.0
Slide 75: Sector-wise exposures
Sector-wise exposures Top 10 sectors1: % of total exposure of Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, the Bank 2018 2019 2020 2021 2022 Retail finance2 27.6% 30.4% 32.2% 33.9% 36.3% Rural 4.5% 4.7% 4.9% 6.3% 5.8% Services – finance 7.0% 7.3% 8.4% 9.9% 8.9% Banks 8.4% 7.9% 6.4% 7.9% 7.9% Electronics
Slide 76: Consolidated capital adequacy
Consolidated capital adequacy Basel III (%) Dec 31, Mar 31, 2021 20221 Total capital 17.64% 18.87% - Tier I 16.65% 18.02% - of which: CET 1 15.59% 17.34% - Tier II 0.99% 0.84% • Including profits for 9M-2022, CET1 ratio was 17.38%, Tier I ratio was 18.44% and total capital adequacy ratio was 19.43%
Slide 77: Insurance entities
Insurance entities ICICI Life (` billion) FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 Annualised premium equivalent 64.62 25.09 19.29 26.08 77.33 - Of which: protection 10.46 3.44 3.06 4.57 13.13 Assets under management 2,142.18 2,142.18 2,375.60 2,404.92 2,404.92 Expense ratio1 14.8% 15.3% 17.5% 20.6% 18
Slide 78: ICICI Bank UK
ICICI Bank UK (USD million) FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 Net interest income 50.9 11.5 9.8 10.0 40.5 Operating profit 25.9 6.8 2.1 4.3 14.4 Loans and advances 1,574.5 1,574.5 1,377.4 1,244.3 1,244.3 Deposits 1,957.5 1,957.5 1,598.4 1,542.0 1,542.0 - Retail term deposits 466.7 466.7 314.9 24
Slide 79: ICICI Bank UK asset and liability profile
ICICI Bank UK1 Asset profile Liability profile 2 3 Total assets: USD 2.24 bn Total liabilities: USD 2.24 bn 1. At Mar 31, 2022 2. Includes cash & advances to banks and T Bills 3. Includes securities re-classified to loans & advances 78
Slide 80: ICICI Bank Canada
ICICI Bank Canada (CAD million) FY2021 Q4-2021 Q3-2022 Q4-2022 FY2022 Net interest income 46.3 10.1 11.6 11.5 44.0 Operating profit 13.7 6.2 8.9 8.0 34.1 Loans and advances 5,086.7 5,086.7 4,997.9 4,984.1 4,984.1 - Residential mortgages 3,627.3 3,627.3 3,658.8 3,692.5 3,692.5 Deposits 2,716.4 2,716.
Slide 81: ICICI Bank Canada asset and liability profile
ICICI Bank Canada1 Asset profile Liability profile 2 4 3 Total liabilities: CAD 5.74 bn Total assets: CAD 5.74 bn 1. At Mar 31, 2022 2. Includes cash & placements with banks and government securities 3. Insured mortgages include CAD 2,400.3 million at Mar 31, 2022 (Dec 31, 2021: CAD 2,432.6 million)
Slide 82: ICICI Home Finance
ICICI Home Finance1 (` billion) Dec 31, 2021 Mar 31, 2022 Loans and advances 139.78 144.98 Gross impaired loans (stage 3)2 12.13 8.60 Net impaired loans (stage 3) 9.28 6.24 Capital adequacy ratio 20.57% 21.90% • At Mar 31, 2022, loans to borrowers where resolution was implemented as per the framewor
Slide 83: Analyst call on April 23, 2022: opening remarks
Analyst call on April 23, 2022: opening remarks Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities
Slide 84: Mr. Bakhshi's opening remarks
Mr. Bakhshi’s opening remarks Good evening to all of you and welcome to the ICICI Bank Earnings Call to discuss the results for Q4 of FY2022. Joining us today on this call are Vishakha, Anup, Sandeep Batra, Rakesh and Anindya. We hope that you are safe and in good health. In January we saw a sharp r
Slide 85: Opening remarks: strategic framework and quarterly performance
provisions below a defined percentage of core operating profit being a key imperative. We follow a micro market based approach to create an efficient distribution and resource allocation strategy by using analytics to identify opportunities. We aim to steadily grow our business within our strategic
Slide 86: Opening remarks: deposits and loan growth
year and average savings account deposits by 22.7% year-on-year. The liquidity coverage ratio for the quarter was about 130%, reflecting continued surplus liquidity. Our cost of deposits continues to be among the lowest in the system. Third-Growing our loan portfolio in a granular manner with a focu
Slide 87: Opening remarks: digital platforms and balance sheet protection
journeys, personalized solutions and value added features to customers and enable more data driven cross sell and up sell. In line with the philosophy of open architecture, of our digital platforms, recently, we made our InstaBIZ app interoperable, that is, all benefits of the app are now available
Slide 88: Opening remarks: strong capital base
Sixth- Maintaining a strong capital base The capital position of the Bank continued to be strong with a CET-1 ratio of 17.60% at March 31, 2022 after reckoning the impact of the proposed dividend. The Tier 1 ratio was 18.35% and the total capital adequacy ratio was 19.16% at March 31, 2022. Further,
Slide 89: Opening remarks: One Bank, One RoE
creation of multi-functional teams has helped in nurturing relationships and offering the entire bouquet of services of the Bank to customers. We continue to be guided by the twin principles of “One Bank, One RoE”, emphasising the goal of maximizing our share of target market across all products and
Slide 90: Rakesh's opening remarks: balance sheet growth
Rakesh’s opening remarks Thank you, Sandeep. I will talk about balance sheet growth, credit quality, P&L details, growth in digital offerings, portfolio trends and performance of subsidiaries. A. Balance sheet growth Sandeep covered the loan growth across various segments. Up to the last quarter, we
Slide 91: Opening remarks: overseas portfolio and funding
of the overall loan book at March 31, 2022. The non-India linked corporate portfolio reduced by 48.2% or about 597 million US Dollars year-on-year and 6.8% or about 47 million US Dollars sequentially. Of the overseas corporate portfolio, about 82% comprises Indian corporates, 10% is overseas corpora
Slide 92: Opening remarks: gross NPA additions and recoveries
The gross NPA additions were 42.04 billion Rupees in the current quarter compared to 40.18 in the previous quarter. The gross NPA additions from the retail, rural and business banking portfolio were 37.36 billion Rupees and from the corporate and SME portfolio were 4.68 billion Rupees. Recoveries an
Slide 93: Opening remarks: P&L details
provisions of 25.30 billion Rupees against these borrowers, which is higher than the requirement as per RBI guidelines. C. P&L Details Net interest income increased by 20.8% year-on-year to 126.05 billion Rupees. The net interest margin was at 4.00% in this quarter compared to 3.96% in the previous
Slide 94: Opening remarks: costs and core operating profit
Q4 of last year. The dividend income in Q4 of last year included interim dividend of ICICI General and ICICI Securities PD On Costs: The Bank’s operating expenses increased by 17.4% year-on- year in this quarter. The employee expenses increased by 21.0% year-on- year. The Bank had about 105,800 empl
Slide 95: Opening remarks: provisions and profit
The total provisions during the quarter were 10.69 billion Rupees or 10.5% of core operating profit and 0.53% of average advances. During the quarter we made contingency provisions of 10.25 billion Rupees on a prudent basis. The Bank continues to carry Covid-19 related provision of 64.25 billion Rup
Slide 96: D. Growth in digital offerings
D. Growth in digital offerings Leveraging digital and technology across businesses is a key element of our strategy of growing the risk calibrated core operating profit. We have seen significant increase in the adoption of our mobile banking app, iMobile Pay. There have been 6.3 million activations
Slide 97: Opening remarks: digital sanctions and portfolio information
The proportion of end-to-end digital sanctions and disbursements across various products has been increasing steadily. About 34% of our mortgage sanctions and 44% of our personal loan disbursements, by volume, were end-to-end digital in FY2022. The Bank has created more than 20 industry specific STA
Slide 98: Opening remarks: BB and below and builder portfolio
Other than two accounts one each in power and telecom sectors, the maximum single borrower outstanding in the BB and below portfolio was less than 6 billion Rupees at March 31, 2022. At March 31, 2022, we held provisions of 12.32 billion Rupees on the BB and below portfolio compared to 15.75 billion
Slide 99: Opening remarks: insurance subsidiaries
The VNB margin increased from 25.1% in FY2021 to 28.0% in FY2022. The value of new business increased by 33.4% year-on-year to 21.63 billion Rupees in FY2022. The profit after tax of ICICI Life was 7.54 billion Rupees in FY2022 compared to 9.60 billion Rupees in FY2021. The Embedded value increased
Slide 100: Opening remarks: overseas subsidiaries and close
11.5 million Canadian dollars in Q3 this year. Profit after tax was higher in Q4 last year and Q3 this year due to write-back of provisions. ICICI Bank Canada repatriated CAD 220 million of equity capital to ICICI Bank in Q4 this year. ICICI Bank UK had a profit after tax of 3.1 million US dollars t