Icici bank announces performance review – quarter ended december 31, 2012
Mumbai, india--(business wire)--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, 2012. profit & loss account standalone profit after tax increased 30% to rs 2,250 crore (us$ 409 million) for the quarter ended december 31, 2012 (q3-2013) from rs 1,728 crore (us$ 314 million) for the quarter ended december 31, 2011 (q3-2012). standalone profit after tax increased 32% to rs 6,021 crore (us$ 1,095 million) for the nine months ended december 31, 2012 (9m-2013) from rs 4,563 crore (us$ 830 million) for the nine months ended december 31, 2011 (9m-2012). net interest income increased 29% to rs 3,499 crore (us$ 636 million) in q3-2013 from rs 2,712 crore (us$ 493 million) in q3-2012. net interest margin improved to 3.07% for q3-2013 from 2.70% for q3-2012. non-interest income increased by 17% to rs 2,215 crore (us$ 403 million) in q3-2013 from rs 1,892 crore (us$ 344 million) in q3-2012. cost-to-income ratio reduced to 39.5% in q3-2013 from 41.5% in q3-2012. provisions were at rs 369 crore (us$ 67 million) in q3-2013 compared to rs 341 crore (us$ 62 million) in q3-2012 and rs 508 crore (us$ 92 million) in the quarter ended september 30, 2012 (q2-2013). return on average assets (annualised) was 1.76% in q3-2013 compared to 1.49% in q3-2012. operating review the bank has continued with its strategy of pursuing profitable growth. the bank has grown its retail disbursements, resulting in an improvement in retail loan portfolio growth. the bank continued to leverage its strong corporate franchise, its international presence and its branch network in india. at december 31, 2012, the bank had 2,895 branches, the largest branch network among private sector banks in the country. the bank has also increased its atm network to 10,040 atms at december 31, 2012 as compared to 7,602 at december 31, 2011. credit growth advances increased by 16% year-on-year to rs 286,766 crore (us$ 52.1 billion) at december 31, 2012 from rs 246,157 crore (us$ 44.8 billion) at december 31, 2011. the year-on-year growth in retail advances was 17% at december 31, 2012 compared to a year-on-year growth of 14% at september 30, 2012. deposit growth the bank maintained its current and savings account (casa) ratio at 40.9% at december 31, 2012 compared to 40.7% at september 30, 2012. the bank also maintained its average casa ratio at 37.4% during q3-2013 compared to 37.5% during q2-2013. during q3-2013, casa deposits increased by rs 2,718 crore (us$ 494 million). at december 31, 2012, savings account deposits were rs 81,463 crore (us$ 14.8 billion) and current account deposits were rs 35,674 crore (us$ 6.5 billion). capital adequacy the bank’s capital adequacy at december 31, 2012 as per reserve bank of india’s guidelines on basel ii norms was 19.53% and tier-1 capital adequacy was 13.25%, well above rbi’s requirement of total capital adequacy of 9.0% and tier-1 capital adequacy of 6.0%. asset quality net non-performing assets at december 31, 2012 were rs 2,185 crore (us$ 397 million) compared to rs 2,138 crore (us$ 389 million) at september 30, 2012 and rs 2,082 crore (us$ 379 million) at december 31, 2011. the bank’s net non-performing asset ratio was 0.64% at december 31, 2012 compared to 0.66% at september 30, 2012 and 0.70% at december 31, 2011. the bank’s provision coverage ratio computed in accordance with the rbi guidelines was 77.7% at december 31, 2012. net restructured loans at december 31, 2012 were rs 4,169 crore (us$ 758 million) compared to rs 4,158 crore (us$ 756 million) at september 30, 2012. consolidated profits consolidated profit after tax increased 22% to rs 2,645 crore (us$ 481 million) for q3-2013 from rs 2,174 crore (us$ 395 million) for q3-2012. the consolidated return on equity (annualised) improved from 14.2% in q3-2012 to 15.7% in q3-2013. insurance subsidiaries icici prudential life insurance company (icici life) was the largest private sector life insurer based on new business retail weighted received premium during 9m-2013. icici life’s profit after tax for q3-2013 was rs 397 crore (us$ 72 million) compared to rs 367 crore (us$ 67 million) for q3-2012. icici life’s annualised premium equivalent (ape) increased by 11% to rs 2,255 crore (us$ 410 million) in 9m-2013 from rs 2,040 crore (us$ 371 million) in 9m-2012. the assets under management at december 31, 2012 were rs 74,982 crore (us$ 13.6 billion). icici lombard general insurance company (icici general) maintained its leadership in the private sector during 9m-2013. the gross premium income of icici general increased by 24% to rs 1,687 crore (us$ 307 million) in q3-2013 from rs 1,356 crore (us$ 247 million) in q3-2012. icici general’s profit after tax for q3-2013 was rs 95 crore (us$ 17 million) compared to rs 101 crore (us$ 18 million) for q3-2012. summary profit and loss statement (as per unconsolidated indian gaap accounts) rs crore 1. includes commissions paid to direct marketing agents (dmas) for origination of retail loans and lease depreciation.2. prior period figures have been regrouped/re-arranged where necessary. summary balance sheet rs crore december31, 2011 march31, 2012 september30, 2012 december31, 2012 1. borrowings include preference share capital of rs 350 crore.2. at december 31, 2012, the bank has presented the mark-to-market (mtm) gain or loss on forex and derivative transactions on gross basis. accordingly, the gross positive mtm amounting to rs 12,254 crore has been included in other assets and gross negative mtm amounting to rs 10,744 crore has been included in other liabilities. consequent to the change, other assets and other liabilities have increased by rs 14,139 crore, rs 15,422 crore and rs 31,648 crore at september 30, 2012, march 31, 2012 and december 31, 2011 respectively. all financial and other information in this press release, other than financial and other information for specific subsidiaries where specifically mentioned, is on an unconsolidated basis for icici bank limited only unless specifically stated to be on a consolidated basis for icici bank limited and its subsidiaries. please also refer to the statement of audited unconsolidated, consolidated and segmental results required by indian regulations that has, along with this release, been filed with the stock exchanges in india where icici bank’s equity shares are listed and with the new york stock exchange and the us securities exchange commission, and is available on our website www.icicibank.com. except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. these forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. these risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the internet and other technology, our rural expansion, our exploration of merger and acquisition opportunities, our ability to integrate recent or future mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our ability to manage the increased complexity of the risks we face following our rapid international growth, future levels of impaired loans, our growth and expansion in domestic and overseas markets, the adequacy of our allowance for credit and investment losses, technological changes, investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in india and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in banking regulations and other regulatory changes in india and other jurisdictions on us, the bond and loan market conditions and availability of liquidity amongst the investor community in these markets, the nature or level of credit spreads, interest spreads from time to time, including the possibility of increasing credit spreads or interest rates, our ability to roll over our short-term funding sources and our exposure to credit, market and liquidity risks as well as other risks that are detailed in the reports filed by us with the united states securities and exchange commission. icici bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. this release does not constitute an offer of securities. for further press queries please call sujit ganguli at 91-22-2653 8525 or email ganguli.sujit@icicibank.com. for investor queries please call rakesh mookim at 91-22-2653 6114 or email ir@icicibank.com. 1 crore = 10.0 millionus$ amounts represent convenience translations at us$1= rs 55.00 web site: http://www.icicibank.com (rs in crore) sr. no. particulars 31, 2012 31, 2011 31, 2012 31, 2011 31, 2012 c) total expenditure (4)+(5)(excluding provisions and contingencies) operating profit (3)–(6)(profit before provisions and contingencies) .. .. .. .. .. .. .. .. .. .. .. .. paid-up equity share capital (face value rs 10/- each) .. .. .. basic eps before and after extraordinary items, net of tax expense (not annualised for three months/nine months) (in rs) diluted eps before and after extraordinary items, net of tax expense (not annualised for three months/nine months) (in rs) .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. (rs in crore) december31, 2012 30, 2012 31, 2012 31, 2011 (rs in crore) 31, 2012 31, 2012 a) basic eps (not annualised for three months/nine months) (in rs) b) diluted eps (not annualised for three months/nine months) (in rs) (rs in crore) 31, 2012 31, 2012 .. .. .. .. .. .. capital employed (i.e. segment assets – segment liabilities) in accordance with insurance regulatory and development authority (irda) guidelines, icici lombard general insurance company (icici general), together with all other general insurance companies participated in the indian motor third party insurance pool (the pool), administered by the general insurance corporation of india (gic) from april 1, 2007. the pool covered reinsurance of third party risks of commercial vehicles. irda through its orders dated december 23, 2011, january 3, 2012 and march 22, 2012 has directed the dismantling of the pool on a clean cut basis and advised recognition of the pool liabilities as per loss ratios estimated by gad uk ("gad estimates") for underwriting years commencing from the year ended march 31, 2008 to year ended march 31, 2012. icici general recognised the additional liabilities of the pool in the three months ended march 31, 2012 and accordingly the bank's consolidated net profit after tax for the year ended march 31, 2012 includes impact of additional pool losses of rs 503.03 crore in line with bank's shareholding in icici general. at december 31, 2012 the bank has presented the mark-to-market (mtm) gain or loss on forex and derivative transactions on gross basis. accordingly, the gross positive mtm amounting to rs 12,254.23 crore has been included in other assets and gross negative mtm amounting to rs 10,743.75 crore has been included in other liabilities. consequent to the change, other assets and other liabilities have increased by rs 14,139.33 crore, rs 15,421.71 crore and rs 31,648.46 crore at september 30, 2012, march 31, 2012 and december 31, 2011 respectively. during the three months ended december 31, 2012 the bank has allotted 275,390 equity shares of rs 10/- each pursuant to exercise of employee stock options. rs 1 crore = rs 10 million.
