Icici Bank Limited · NSE:ICICIBANK
Icici Bank — Q4 2024 Earnings Presentation
65 slides from Icici Bank's earnings presentation, Apr 27, 2024
Slide 1: Q4-2024: Performance review
Q4-2024: Performance review April 27, 2024
Slide 2: 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 3: Highlights for Q4-2024
Highlights for Q4-2024 3
Slide 4: Key highlights for Q4-2024 (1/2)
Key highlights for Q4-2024 (1/2) • Profit before tax excluding treasury, grew by 19.2% y-o-y to ₹ 146.02 bn in Q4-2024; 28.3% y-o-y to ₹ 544.79 bn in FY2024 Earnings • Core operating profit grew by 10.5% y-o-y to ₹ 153.20 bn in Q4-2024; 18.3% y-o-y to ₹ 581.22 bn in FY2024 • Provisions of ₹ 7.18 bn
Slide 5: Key highlights for Q4-2024 (2/2)
Key highlights for Q4-2024 (2/2) • Net NPA ratio declined to 0.42% at Mar 31, 2024 from 0.44% at Dec 31, 2023 • Net additions of ₹ 12.21 bn to gross NPAs in Q4-2024 (Q3-2024: ₹ 3.63 bn) Asset • Provision coverage was 80.3% at Mar 31, 2024 (Dec 31, 2023: 80.7%) quality • Fund based o/s of ₹ 30.59 bn
Slide 6: Operating performance
Operating performance 6
Slide 7: Profit & loss statement
Profit & loss statement (₹ billion) FY2023 Q4- Q3- Q4- FY2024 Q4-o-Q4 2023 2024 2024 (%) Net interest income1 621.29 176.67 186.78 190.93 743.06 8.1% Non-interest income 198.83 51.27 59.75 59.30 229.49 15.7% - Fee income 180.01 48.30 53.13 54.36 207.96 12.5% - Dividend income from 17.84 2.73 6.50 4.
Slide 8: Profit & loss statement
Profit & loss statement ₹ in billion FY2023 Q4- Q3- Q4- FY2024 Q4-o-Q4 2023 2024 2024 (%) Core operating profit 491.39 138.66 146.01 153.20 581.22 10.5% Net provisions 66.661 16.19 10.502 7.18 36.432 (55.7)% - Contingency provisions 56.50 16.00 - - - - - Other provisions 10.16 0.19 10.502 7.18 36.43
Slide 9: Key ratios
Key ratios Q4- Q3- Q4- FY Percent FY2023 2023 2024 2024 2024 Net interest margin1,2 4.48 4.90 4.43 4.40 4.53 Cost of deposits2 3.66 3.98 4.72 4.82 4.61 Cost-to-income 40.1 39.2 40.6 39.2 40.2 Core operating profit/average assets2 3.32 3.60 3.31 3.37 3.37 Provisions/core operating profit 13.63 11.7 7
Slide 10: Unconsolidated segment-wise PBT
Unconsolidated segment-wise PBT Profit before tax FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 (₹ billion) Retail 175.34 49.03 42.89 54.86 188.49 Wholesale 157.85 45.04 57.46 54.76 199.72 Treasury 142.72 42.35 33.28 32.42 148.99 Others 4.80 1.65 3.11 1.17 7.68 Unallocated1 (56.50) (16.00) - - - Total 424.2
Slide 11: Balance sheet growth
Balance sheet growth 11
Slide 12: Deposits
Deposits (₹ billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at Mar 2023 2023 2024 growth 31, 2024 CASA 5,412.62 5,279.95 5,958.72 10.1% 42.2% - Current 1,614.86 1,534.11 1,935.72 19.9% 13.7% - Savings 3,797.76 3,745.84 4,023.00 5.9% 28.5% Term 6,395.79 8,043.20 8,169.53 27.7% 57.8% Total deposits 11,
Slide 13: Loan portfolio
Loan portfolio Mar 31, Dec 31, Mar 31, Y-o-Y % share at (₹ billion) 2023 2023 2024 growth Mar 31, 20244 Retail 5,578.17 6,425.72 6,662.61 19.4% 54.9% Rural loans 874.31 980.36 1,024.46 17.2% 8.4% Business banking 721.12 882.39 932.28 29.3% 7.7% SME1 482.21 579.18 600.95 24.6% 5.0% Domestic corporate
Slide 14: Retail portfolio
Retail portfolio (₹ billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2023 2023 2024 growth Mar 31, 2024 Mortgages 3,446.96 3,841.32 3,959.21 14.9% 59.4% Vehicle loans 794.19 905.01 926.35 16.6% 13.9% - Auto finance 496.87 578.74 592.19 19.2% 8.9% - Commercial vehicle and 275.41 304.48 314.26 14.1%
Slide 15: Growing digital platforms
Growing digital platforms 15
Slide 16: Digital sourcing for retail products in FY2024
Digital sourcing for retail products in FY2024 Personal loan Credit cards (by volume) SIPs initiated (by volume) disbursements (by volume) 1 Mortgages Fixed deposits (Number of sanctions) (by volume) 16 1. Represents insignificant number
Slide 17: Digital payments: credit and debit cards
Digital payments: credit and debit cards Credit card spends Debit card spends 1 Credit card Issued 4.9 mn+ partnerships Amazon Pay cards 1. Excluding proprietory cards 17
Slide 18: Digital payments
Digital payments UPI: P2M1 transactions Electronic toll collections Volume: 13.2% y-o-y Value: 67.7% y-o-y 14.5% y-o-y Market share by value was 18.3% in Mar Market share by value was 29.7% in 2024 Q4-2024 1. Payments to merchants 18
Slide 19: Asset quality trends
Asset quality trends 19
Slide 20: NPA trends
NPA trends (₹ billion) Mar 31, Dec 31, Mar 31, 2023 2023 2024 Gross NPAs1 311.84 287.75 279.62 Less: cumulative provisions 260.29 233.97 225.84 Net NPAs1 51.55 53.78 53.78 Gross NPA ratio1 2.81% 2.30% 2.16% Net NPA ratio1 0.48% 0.44% 0.42% Provision coverage ratio 82.8% 80.7% 80.3% Non-fund o/s to N
Slide 21: NPA movement
NPA movement1 ₹ billion FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 Opening gross NPA 339.20 325.28 298.37 287.75 311.84 Add: gross additions (1) 186.41 42.97 57.14 51.39 190.27 - Retail, rural and business banking 154.90 40.20 54.822 49.28 180.36 - Corporate and SME 31.51 2.77 2.32 2.11 9.91 Less: recove
Slide 22: Resolution under RBI frameworks
Resolution under RBI frameworks (₹ billion) 31-Mar-23 31-Dec-23 31-Mar-24 Retail, rural and business banking1 38.33 27.82 25.45 Corporate and SME1 6.75 5.36 5.14 Total fund based o/s1 45.08 33.18 30.59 Total fund based o/s1 as % of total advances 0.4% 0.3% 0.3% Provisions held on loans under resolut
Slide 23: Standard asset and other provisions
Standard asset and other provisions (₹ billion) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2023 2023 2023 2023 2024 Contingency provisions1 131.00 131.00 131.00 131.00 131.00 Provision on non-fund based o/s to 20.05 19.64 20.64 20.61 20.90 NPAs Provisions on fund based o/s to 13.80 12.24 11.07 10.32 9.
Slide 24: Loan portfolio information
Loan portfolio information 24
Slide 25: Diversified and granular loan book
Diversified and granular loan book Breakup of loan portfolio1 at Mar 31, 2024 54.9% of total loans are retail3 2 1. Proportions are gross of BRDS/IBPC 2. Includes dealer funding, loan against shares and others 3. Including non-fund based outstanding, the share of retail portfolio was 46.8% of the to
Slide 26: 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, Dec 31, Mar 31, Rating category1 2020 2021 2022 2023 2023 2024 AA- and above 27.3% 35.3% 36.1% 46.9% 41.7% 39.8% A+, A, A- 36.9% 33.7% 35.7% 26.6% 28.1% 27.9% A- and above 64.2% 69.1% 71.8% 73.5% 69.8% 67.7%
Slide 27: Corporate and SME: BB and below
Corporate and SME: BB and below (₹ billion) Mar 31, Dec 31, Mar 31, 2023 2023 2024 BB and below outstanding1 47.04 58.53 55.28 - Fund and non-fund o/s to borrowers with loans 7.74 6.61 6.45 under resolution - Other borrowers with o/s greater than ₹ 1.00 bn2 18.01 31.66 26.89 - Other borrowers with o
Slide 28: Mortgage portfolio
Mortgage portfolio Mortgage portfolio includes home loans ~69%, 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 29: Auto and two wheeler finance
Auto and two wheeler finance Auto loan portfolio comprises 85% new vehicles and 15% 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 30: 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 comprise ~2% of the total loan book increased sequentially with focus on cross-selling to our existing customers Leverage opportuni
Slide 31: SME and business banking portfolio
SME and business banking portfolio Growth driven by leveraging branch 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 EazySign Focus on parameterised and programme based lend
Slide 32: Exposure to power sector
Exposure to power sector (₹ billion) Mar 31, Dec 31, Mar 31, Share at Mar 2023 2023 2024 31, 2024 (%) Borrowers classified as NPA or part of BB 45.03 13.98 10.00 1.9% and below portfolio1 Other borrowers 432.19 483.33 520.96 98.1% Total 477.22 497.31 530.96 100.0% • Of the other borrowers aggregatin
Slide 33: NBFCs, HFCs and builder portfolio
NBFCs, HFCs and builder portfolio Mar 31, Dec 31, Mar 31, Outstanding (₹ billion) 2023 2023 2024 NBFCs1 725.93 740.50 693.64 HFCs1 108.97 44.34 77.04 Builder portfolio (construction finance, lease rental 398.87 456.85 482.92 discounting, term loans and working capital) • Proportion of the NBFC and H
Slide 34: Portfolio of overseas branches
Portfolio of overseas branches Total outstanding1 at Mar 31, 2024: USD 3.11 billion The overseas non-India linked corporate portfolio reduced by 10.1 % year-on-year or about USD 31 million at Mar 31, 2024 1. Corporate fund and non-fund outstanding of overseas branches, net of cash/bank/insurance bac
Slide 35: Concentration risk ratios
Concentration risk ratios Mar 31, Mar 31, Mar 31, Sep 30, Dec 31, Mar 31, Advances 2021 2022 2023 2023 2023 2024 Exposure to top 20 borrowers1 as a % of total 12.1% 9.6% 8.5% 8.6% 8.2% 8.3% exposure Exposure to top 10 groups 11.6% 10.3% 10.1% 10.1% 10.0% 10.0% as a % of total exposure • All top 20 b
Slide 36: Capital
Capital 36
Slide 37: Standalone capital adequacy
Standalone capital adequacy Dec 31, 20231 Mar 31, 20242 (₹ billion) % (₹ billion) % Total capital 1,936.21 14.61 2,242.27 16.33 - Tier I 1,847.42 13.94 2,142.17 15.60 - of which: CET1 1,847.62 13.94 2,142.17 15.60 - Tier II 88.79 0.67 100.10 0.73 Risk weighted assets 13,253.25 13,727.62 - On balance
Slide 38: Group companies
Group companies 38
Slide 39: Profit after tax of key subsidiaries
Profit after tax of key subsidiaries Profit after tax (₹ billion) Q4- Q3- Q4- FY2023 FY2024 2023 2024 2024 ICICI Prudential Life Insurance 8.11 2.35 2.27 1.74 8.52 ICICI Lombard General Insurance 17.29 4.37 4.31 5.20 19.19 ICICI Prudential Asset Management1 15.16 3.85 5.46 5.29 20.50 ICICI Securitie
Slide 40: Insurance entities
Insurance entities ICICI Prudential Life Insurance • Annualised premium equivalent (APE) was ₹ 90.46 billion in FY2024 (FY2023: ₹ 86.40 billion) • Value of new business (VNB) was ₹ 22.27 billion in FY2024 (FY2023: ₹ 27.65 billion) • VNB margin was 24.6% in FY2024 (FY2023: 32.0%) • New business sum a
Slide 41: ICICI Securities and ICICI AMC
ICICI Securities and ICICI AMC ICICI Securities • NSE active clients1 market share at 4.6% at March 31, 2024 compared to 5.3% at December 31, 2023 • Retail equity market share was 12.7% in Q4-2024 compared to 13.1% in Q3-2024 • Market share in commodity trading segment2 was 7.1% in Q4-2024 compared
Slide 42: Environmental, Social and Governance (ESG) initiatives
Environmental, Social and Governance (ESG) initiatives 42
Slide 43: ESG at ICICI Bank
ESG at ICICI Bank Environment Social Governance Promoting sustainable Striving to create value Being responsible & practices for stakeholders transparent • Enhancing internal risk • Credit facilities extended to ~1.1 • Risk Committee oversight on ESG; assessment tools to evaluate mn women through 10
Slide 44: Thank you
PICICI Bank Thank you
Slide 45: Additional financial information
Additional financial information 45
Slide 46: Yield, cost and margin
Yield, cost and margin Movement in yield, costs & FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 margins (Percent)1 Yield on total interest-earning 7.87 8.60 8.71 8.74 8.71 assets2 - Yield on advances 8.94 9.75 9.79 9.88 9.83 Cost of funds 3.93 4.29 4.96 5.05 4.86 - Cost of deposits 3.66 3.98 4.72 4.82 4.61
Slide 47: Consolidated profit & loss statement (1/2)
Consolidated profit & loss statement (1/2) Q4-o-Q4 (₹ billion) FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 growth Net interest income 705.23 199.59 214.57 221.83 854.08 11.1% Non-interest income 651.12 194.84 186.14 245.75 765.22 26.1% - Fee income 228.72 60.69 70.64 73.44 274.92 21.0% - Premium income 41
Slide 48: Consolidated profit & loss statement (2/2)
Consolidated profit & loss statement (2/2) (₹ billion) Q4-o-Q4 FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 growth Operating profit 531.96 152.06 161.62 168.52 641.47 10.8% Contingency provisions 56.50 16.00 - - - - Other provisions 12.90 1.22 10.20 6.98 37.13 - Profit before tax 462.56 134.84 151.42 161.5
Slide 49: Key ratios (consolidated)
Key ratios (consolidated) Percent FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 Return on equity1 17.3 19.1 18.5 18.8 18.9 Weighted average EPS1 (₹) 48.9 57.3 62.7 66.9 63.2 Book value (₹) 307 307 347 361 361 slide 9 1. Annualised for all interim periods 49
Slide 50: Balance sheet: liabilities
Balance sheet: liabilities (₹ billion) Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Net worth 2,007.16 2,268.37 2,383.99 - Equity capital 13.97 14.03 14.05 - Reserves 1,993.19 2,254.34 2,369.94 Deposits 11,808.41 13,323.15 14,128.25 - Current 1,614.86 1,534.11 1,935.72 - Savings 3,797.76 3,745.84 4,023.00
Slide 51: Composition of borrowings
Composition of borrowings (₹ billion) Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Domestic 935.11 947.38 953.96 - Capital instruments 82.81 28.38 28.50 - Other borrowings 852.30 919.00 925.46 - Long term infrastructure bonds 459.04 460.18 460.18 - Refinance 355.95 387.12 387.14 Overseas borrowings1 258.1
Slide 52: Consolidated balance sheet
Consolidated balance sheet (₹ billion) Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Cash & bank balances 1,364.56 1,214.49 1,627.69 Investments 6,395.52 7,548.65 8,271.63 Advances 10,838.66 12,291.98 12,607.76 Fixed & other assets 986.16 1,025.06 1,133.55 Total assets 19,584.90 22,080.18 23,640.63 Net wor
Slide 53: Branch and ATM network
Branch and ATM network Branches % share at Mar 31, Mar 31, Mar 31, Sep 30, Dec 31, Mar 31, Mar 31, 2021 2022 2023 2023 2023 2024 2024 Metro 1,542 1,567 1,709 1,838 1,882 1,907 29.2% Urban 1,063 1,074 1,160 1,250 1,298 1,310 20.1% Semi urban 1,537 1,599 1,712 1,797 1,814 1,838 28.2% Rural 1,124 1,178
Slide 54: Balance sheet: assets
Balance sheet: assets (₹ billion) Mar 31, Dec 31, Mar 31, 2023 2023 2024 Cash & bank balances 1,194.38 993.28 1,399.26 Investments 3,623.30 4,366.50 4,619.42 - SLR investments 3,057.69 3,683.42 3,755.74 1 1 - Equity investment in subsidiaries 69.78 69.78 111.322 Advances 10,196.38 11,537.71 11,844.0
Slide 55: Equity investment in subsidiaries
Equity investment in subsidiaries (₹ billion) Mar 31, Dec 31, Mar 31, 2023 2023 2024 ICICI Prudential Life Insurance 32.75 32.75 32.75 ICICI Lombard General Insurance -1 -1 41.422 ICICI Bank Canada 9.96 9.96 9.96 ICICI Bank UK 9.70 9.70 9.70 ICICI Home Finance 13.62 13.62 13.62 ICICI Securities Limi
Slide 56: Portfolio composition
Portfolio composition Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Domestic 93.2% 93.4% 94.1% International 6.8% 6.6% 5.9% Total consolidated advances 10,839 12,292 12,608 (₹ billion) slide 13 56
Slide 57: Retail, rural and business banking NPAs
Retail, rural and business banking NPAs Mar 31, Dec 31, Mar 31, ₹ in billion 2023 2023 2024 Gross retail, rural and business banking NPAs 121.13 137.88 139.14 - as a % of gross advances 1.67% 1.65% 1.60% Net retail, rural and business banking NPAs 42.04 48.81 49.15 - as a % of net advances 0.59% 0.5
Slide 58: Sector-wise exposures
Sector-wise exposures Top 10 sectors1: % of total Mar 31, Mar 31, Mar 31, Sep 30, Dec 31, Mar 31, exposure of the Bank 2021 2022 2023 2023 2023 2024 Retail finance2 33.9% 36.3% 38.3% 39.2% 39.8% 39.5% Services – finance 9.9% 8.9% 8.7% 8.4% 8.2% 8.0% Rural 6.3% 5.8% 6.2% 6.1% 6.2% 6.3% Wholesale/reta
Slide 59: Consolidated capital adequacy
Consolidated capital adequacy Basel III (%) Dec 31, Mar 31, 20231 20242 Total capital 14.38% 16.14% - Tier I 13.73% 15.43% - of which: CET 1 13.73% 15.43% - Tier II 0.65% 0.71% • Including profits for 9M-2024, CET 1 ratio was 15.77%, Tier I ratio was 15.77 % and total capital adequacy ratio was 16.4
Slide 60: Insurance entities
Insurance entities ICICI Life (₹ billion) FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 Annualised premium equivalent 86.40 33.00 19.07 36.15 90.46 - Of which: protection 15.04 4.54 3.58 4.33 15.25 Assets under management 2,511.91 2,511.91 2,866.76 2,941.40 2,941.40 Expense ratio1 21.5% 22.9% 23.9% 21.8% 24
Slide 61: ICICI Bank UK
ICICI Bank UK (USD million) FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 Net interest income 52.6 16.0 16.7 16.1 66.7 Operating profit 21.7 9.9 10.0 9.2 38.2 Loans and advances 997.2 997.2 1,070.3 1,047.3 1,047.3 Deposits 1,617.4 1,617.4 1,834.3 1,668.6 1,668.6 - Retail term deposits 650.2 650.2 868.6 683.
Slide 62: ICICI Bank UK asset and liability profile
ICICI Bank UK1 Asset profile Liability profile 2 3 Total assets: USD 2.20 bn Total liabilities: USD 2.20 bn 1. At Mar 31, 2024 2. Includes cash & advances to banks and T Bills 3. Includes Interbank lending of more than 3 months 62
Slide 63: ICICI Bank Canada
ICICI Bank Canada (CAD million) FY2023 Q4-2023 Q3-2024 Q4-2024 FY2024 Net interest income 84.2 26.8 30.2 31.2 119.6 Operating profit 65.6 20.7 24.4 24.9 98.4 Loans and advances 5,182.1 5,182.1 5,299.0 5,248.1 5,248.1 - Residential mortgages 3,741.5 3,741.5 3,692.8 3,607.7 3,607.7 Deposits 3,176.7 3,
Slide 64: ICICI Bank Canada asset and liability profile
ICICI Bank Canada1 Asset profile Liability profile 2 4 3 Total assets: CAD 5.88 bn Total liabilities: CAD 5.88 bn 1. At March 31, 2024 2. Includes government securities and cash & placements with banks 3. Insured mortgages include CAD 2,183.9 million of securitised mortgages at Mar 31, 2024 (Dec 31,
Slide 65: ICICI Home Finance
ICICI Home Finance1 (₹ billion) Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Loans and advances 175.44 208.28 225.22 Gross impaired loans (stage 3)2 5.61 4.28 3.91 Net impaired loans (stage 3) 3.56 2.58 2.39 Capital adequacy ratio 23.47% 21.07% 19.9% slide 39 1. As per Ind AS 2. Includes nil commercial re