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November 2011
Agenda
Recent developments Strategy & execution Financial results: Q2-2012
Industrial production
Growth in IIP at 4.1% in Aug 2011; Apr-Aug 2011 at 5.6% against 8.7% in Apr-Aug 2010
Exports
Exports growth in H1-2012 at 52.4% compared to 29.7% in H1-2011
Exports grew by 10.8% in Oct 2011
Corporate performance
Moderation in sales and net profits both on a y-o-y and sequential basis
Inflation expected to moderate from December 2011 Low likelihood of rate action in December review FY2012 GDP growth projection revised downwards to 7.6%
Some smaller banks have already increased their savings bank deposit rates
Agenda
Recent developments Strategy & execution Financial results: Q2-2012
7 7
FY2011
Resume balance sheet growth Further improve funding mix through retail term deposit growth Improve RoA: sharp reduction in provisions
FY2012 onwards
Accelerate growth On the back of improved liability structure & RoA Leverage capital to increase RoE
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Despite significant scale up in branch network from 1,262 at March 2008 to 2,535 at September 2011
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Key subsidiaries
Domestic subsidiaries Insurance, asset management & securities businesses adjusting to regulatory changes and market conditions Continued focus on building franchise to capitalise on long-term opportunity Strong profit growth in life insurance business Overseas banking subsidiaries Consolidation strategy in view of regulatory approach Ongoing dialogue on future plan
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7.8% 0.98%
11.6% 1.34%
12.9% 1.35%
7.7%
9.6%
10.0%
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Agenda
Recent developments Strategy & execution Financial results: Q2-2012
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Ru ral 7. 5%
Retail business group includes builder loans and dealer funding Including impact of exchange rate movement
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Gross retail NPLs at ` 63.17 bn and net retail NPLs at ` 9.76 bn at September 30, 2011 Provisioning coverage ratio of 78.2% at September 30, 2011 computed in accordance with RBI guidelines Net restructured loans of ` 25.01 bn at September 30, 2011 Outstanding general provision on standard assets: ` 14.80 bn at September 30, 2011
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Key ratios
FY 2011 Return on average net worth1,2 (Consolidated basis) Return on average net worth1, 2 Return on average assets2 Weighted avg EPS (`)2 Book value (`) Net interest margin2 Fee to income Cost to income (incl. DMA) Cost to average assets (incl. DMA)2 CASA ratio
1. 2.
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(Percent)
Q22011 10.7 9.2 1.30 43.3 470 2.62 42.4 41.0 1.6 44.0 H12011 9.7 8.5 1.22 40.2 470 2.57 40.6 40.5 1.6 44.0 Q12012 12.0 9.6 1.29 46.5 490 2.61 39.0 44.7 1.7 41.9 Q22012 13.7 10.4 1.41 51.9 509 2.61 40.2 44.4 1.8 42.1 H12012 12.9 10.0 1.35 49.2 509 2.61 39.6 44.6 1.8 42.1
11.6 9.6 1.34 45.3 478 2.64 41.2 41.9 1.7 45.1
Based on quarterly average net worth Annualised for all interim periods
Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in ICICI Bank's filings with the US Securities and Exchange Commission. All financial and other information in these slides, 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 unconsolidated, consolidated and segmental results required by Indian regulations that has, along with these slides, been filed with the stock exchanges in India where ICICI Banks equity shares are listed and with the New York Stock Exchange and the US Securities and Exchange Commission, and is available on our website www.icicibank.com
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Thank you
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Unconsolidated financials
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(0.80)
42.46 18.44 0.36 0.12 23.54
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(` billion)
Q2-o-Q2 growth 6.4% (50.2%) 29.5% 58.8% 21.6%
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(` billion)
Y-o-Y growth 3.8% 8.4%
Investment in security receipts of asset reconstruction companies was ` 26.70 bn at September 30, 2011 Credit derivative exposure (including off balance sheet exposure) of ` 20.21 bn at September 30, 2011 (underlying comprises Indian corporate credits)
1. 2.
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(` billion)
September 30, 2011 35.93 33.50 23.25 11.12 13.48 3.00 1.58 1.87 0.61 0.05 0.14 124.53
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(` billion)
September 30, 2011 586.02 Y-o-Y growth 8.6%
11.51 528.24
2,230.94
11.52 553.09
2,306.78
11.52 574.50
2,450.92
0.1% 8.8%
9.9%
- Savings - Current
Borrowings1,2 Other liabilities Total liabilities2
1. 2.
632.48 348.57
970.10 159.19 3,899.98
668.58 297.77
1,140.51 140.25 4,152.15
701.49 329.97
1,213.24 157.07 4,407.25
10.9% (5.3%)
25.1% (1.3)% 13.0%
Borrowings include preference shares amounting to ` 3.50 bn Including impact of exchange rate movement
Credit/deposit ratio of 72.3% on the domestic balance sheet at September 30, 2011
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Composition of borrowings
(` billion)
September 30, 2010 Domestic - Capital instruments1 - Other borrowings Overseas2 - Capital instruments - Other borrowings Total borrowings2
1. 2.
June 30, 2011 547.76 347.10 200.66 592.75 15.14 577.61 1,140.51
September 30, 2011 543.70 349.30 194.40 669.54 16.60 652.94 1,213.24
Includes preference share capital ` 3.50 bn Including impact of exchange rate movement
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Overseas subsidiaries
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Other a ssets & Bo nd s/no tes o f 4 A sset b a c ked i nvestments fi na nc i a l sec uri ti es 7.0% i nsti tuti o ns 1.8% 5.6%
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L o a ns & 3 a d va nc es 58.0%
Includes cash & advances to banks, T Bills and CDs Includes India-linked credit derivatives of US$ 14 mn at September 30, 2011 (US$ 14 mn at June 30, 2011) 3. Includes securities re-classified to loans & advances 4. Does not include US$ 154 mn of ABS reclassified as loans & receivables in FY2009
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Synd i c a ted Other l o a ns & i nterb a nk l i a b i l i ti es 5.9% b o rro wi ng s 6.2% L o ng term d eb t 15.6%
Profit after tax of US$ 2.2 mn in Q2-2012 compared to US$ 8.4 mn in Q2-2011 Capital adequacy ratio at 29.8% Proportion of retail term deposits in total deposits at 71% at September 30, 2011
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investments 0.8%
Other assets & investments 10.0% Asset backed secur ities 1.4% Loans to customers 51.9%
Includes cash & advances to banks and government securities Includes India-linked credit derivatives of CAD 32 million at September 30, 2011 (CAD 29 million at June 30, 2011) Based on IFRS, securitised portfolio of CAD 767 million and CAD 921 million considered as part of Insured mortgage portfolio at June 30, 2011 and September 30, 2011 respectively
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B orrow ings 1 9 .6 %
D e mand de posit s 1 4 .2 %
Te rm de posits 4 3 .7 %
Profit after tax of CAD 5.2 mn in Q2-2012 compared to CAD 12.3 mn in Q1-2012 Capital adequacy ratio at 29.3%
1. As per IFRS, proceeds of CAD 769 million and CAD 926 million from sale of securitised portfolio considered as part of borrowings at June 30, 2011 and September 30, 2011 respectively
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1C ash
1 C ash
Promissory n otes 2. 9%
C orporate bon ds 2. 1%
Promissory n otes 4. 0%
C orporate bon ds 2. 2%
Total borrowings of USD 172 mn at September 30, 2011 Capital adequacy of 30.6% at September 30, 2011 Net profit of USD 2.2 mn in Q2-2012
1.
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Includes cash & call placements with banks, balances with central bank and nostro balances
Domestic subsidiaries
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Loans 94.8%
Loans 95.5%
Profit after tax of ` 561.3 mn in Q2-2012 compared to ` 539.0 mn in Q2-2011 Capital adequacy ratio of 25.5% at September 30, 2011 Net NPA ratio: 1.3% At September 30, 2011: Networth ` 13.78 bn; Deposits ` 11.06 bn and Borrowings ` 51.65 bn
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ICICI Life
Q2-2011
New business received premium Renewal premium Total premium Annualised premium equivalent (APE) New Business Profit (NBP) NBP margin Statutory profit/(loss) Assets Under Management Expense ratio2 16.09 22.64 38.73 13.44 2.54 18.9% 0.151 654.84 19.4%
Market share based on retail weighted received premium was 5.7%3 for April-August 2011
1. 2. 3.
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Does not include surplus on the non-participating policyholders funds of ` 2.54 billion Expense ratio: All expenses (including commission) / (Total premium 90% of Single Premium) Source: IRDA
ICICI General
Q2-2011
Gross premium1 PAT 10.91 1.04
Q2-2012
13.06 0.56
(` billion) FY2011
44.08 (0.80)
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Other subsidiaries
Profit after tax
ICICI Securities Ltd ICICI Securities Primary Dealership ICICI Venture ICICI Prudential Asset Management
Q2-2011
0.29 (0.02) 0.22 0.14
Q2-2012
0.16 0.17 0.03 0.20
(` billion) FY2011
1.13 0.53 0.74 0.72
Consolidated profit after tax increased by 47.1% to ` 36.58 bn in H1-2012 from ` 24.861 bn in H1-2011
Consolidated profit after tax increased by 42.8% to ` 19.92 bn in Q22012 from ` 13.952 bn in Q2-2011
Consolidated return on average net worth for H1-2012 at 12.9% compared to 9.7% in H1-2011
Consolidated return on average net worth for Q2-2012 at 13.7% compared to 10.7% in Q2-2011 (11.6% in FY2011)
1. 2.
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Does not include surplus on the non-participating policyholders funds of ` 3.61 bn Does not include surplus on the non-participating policyholders funds of ` 1.88 bn