ICICI Bank Announces Performance Review - Quarter Ended December 31, 2006: 42% Year-on-Year Growth in Profit after Tax.MUMBAI, India -- The Board of Directors of ICICI Bank ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Limited (NYSE NYSE See: New York Stock Exchange : IBN IBN Internet Business Network IBN Institute of Bioengineering and Nanotechnology IBN Institut Belge de Normalisation IBN Islamic Broadcasting Network IBN Integrated Business Network IBN Identification Beacon IBN Isolated Bonding Network ) at its meeting held at Vadodara today, approved the audited accounts of the Bank for the quarter ended December 31, 2006 (Q3-2007). Highlights * Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 65% to Rs. 1,976 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>. Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million (US$ 446 million) for Q3-2007 from Rs. 1,194 crore (US$ 270 million) for Q3-2006. * Profit after tax for Q3-2007 increased 42% to Rs. 910 crore (US$ 206 million) from Rs. 640 crore (US$ 145 million) for Q3-2006. * Net interest income increased 32% to Rs. 1,709 crore (US$ 386 million) for Q3-2007 from Rs. 1,296 crore (US$ 293 million) for Q3-2006. * Fee income increased 53% to Rs. 1,345 crore (US$ 304 million) for Q3-2007 from Rs. 881 crore (US$ 199 million) for Q3-2006. * Profit after tax increased 31% to Rs. 2,285 crore (US$ 516 million) for the nine-month period ended December 31, 2006 (9m-2007) from Rs. 1,750 crore (US$ 395 million) for the nine-month period ended December 31, 2005 (9m-2006). * Retail assets increased 50% to Rs. 117,914 crore (US$ 26.6 billion) at December 31, 2006 from Rs. 78,495 crore (US$ 17.7 billion) at December 31, 2005. * Deposits increased 47% to Rs. 196,893 crore (US$ 44.5 billion) at December 31, 2006 from Rs. 133,881 crore (US$ 30.3 billion) at December 31, 2005. Operating review Credit growth The Bank's net customer assets increased 42% to Rs. 180,960 crore (US$ 40.9 billion) at December 31, 2006 compared to Rs. 127,319 crore (US$ 28.8 billion) at December 31, 2005. In 9m-2007, the Bank's total retail disbursements were about Rs. 54,100 crore (US$ 12.2 billion) including home loan disbursements of about Rs. 21,300 crore (US$ 4.8 billion). Retail assets constituted 68% of advances and 65% of customer assets. The Bank is focusing on non-fund based products and services, as well as capitalising on opportunities presented by the domestic and international expansion of Indian companies This is a list of major companies based in India. Please note that the list is highly incomplete and does not have every company of all sizes. More information about the companies can be found in the links to the company articles. A
Deposit growth The Bank's total deposits increased 47% to Rs. 196,893 crore (US$ 44.5 billion) at December 31, 2006 from Rs. 133,881 crore (US$ 30.2 billion) at December 31, 2005. During this period, savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. increased by 53% from Rs. 18,951 crore (US$ 4.3 bn) to Rs. 28,878 crore (US$ 6.5 bn). The Bank added 35 branches and 345 ATMs during the quarter, taking the number of branches and extension counters to 667 and ATMs to 2,681. International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. The Bank now has wholly-owned subsidiaries, branches and representative offices in 16 countries, and an offshore banking unit in Mumbai. The total assets of the Bank's international branches increased to about Rs. 40,300 crore (US$ 9.1 billion) at December 31, 2006 from about Rs. 25,180 crore (US$ 5.7 billion) at December 31, 2005. The total assets of the Bank's international banking subsidiaries increased to about Rs. 24,450 crore (US$ 5.5 billion) at December 31, 2006 from about Rs. 8,600 crore (US$ 1.9 billion) at December 31, 2005. The Bank's remittance volumes grew by 30% in Q3-2007 compared to Q3-2006. The Bank has launched remittances services to Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop. and the Philippines through its UK and Canada subsidiaries. ICICI Bank UK's unaudited profit after tax for 9m-2007 was US$ 28.9 million (approximately Rs. 128 crore), translating into a return on equity of about 20%. During the quarter, the Bank opened representative offices in Thailand and Malaysia. Capital adequacy The Bank's capital adequacy at December 31, 2006 was 13.4% (including Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. adequacy of 8.6%), well above RBI's requirement of total capital adequacy of 9%. Asset quality At December 31, 2006, the Bank's net non-performing assets constituted 1.0% of net customer assets. Insurance and asset management businesses ICICI Lombard ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and the US-based $26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate General Insurance Company (ICICI Lombard) enhanced its leadership position with a market share of about 35.8% among private sector general insurance companies and an overall market share of about 12.5% during April-November 2006. ICICI ICICI Industrial Credit and Investment Corporation of India Lombard's unaudited profit after tax for Q3-2007 was Rs. 16 crore (US$ 4 million). ICICI Prudential Life Insurance Company (ICICI Prudential Life) continued to maintain its market leadership among private sector life insurance companies. Life insurance companies worldwide make losses in the initial years, in view of business set-up and customer acquisition costs in the initial years as well as reserving for actuarial liability. While the growing operations of ICICI Prudential Life had a negative impact of Rs. 95 crore (US$ 21 million) on the Bank's consolidated profit after tax in Q3-2007 on account of the above reasons, the company's unaudited New Business Achieved Profit (NBAP NBAP Node B Application Part (UMTS network) NBAP National Beef Ambassador Program (National Beef Association) NBAP National Biodiesel Accreditation Program ) for Q3-2007 was Rs. 193 crore (US$ 44 million) as compared to Rs. 142 crore (US$ 32 million) in Q3-2006. NBAP is a metric for the economic value of the new business written during a defined period. It is measured as the present value of all the future profits for the shareholders, on account of the new business based on standard assumptions of mortality, expenses and other parameters. Actual experience could differ based on variance from these assumptions especially in respect of expense overruns in the initial years. Prudential ICICI Asset Management Company continues to be among the largest asset management companies in India with assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. of over Rs. 33,350 crore (US$ 7.5 billion) at December 31, 2006. Summary Profit and Loss Statement [TABLE OMITTED] 1. DMA (1) (Digital Media Adapter) See digital media hub. (2) (Document Management Alliance) A specification that provides a common interface for accessing and searching document databases. expense on automobile loans, which was earlier deducted from net interest income, is now included in "Expenses on direct marketing agents (DMAs)". 2. Includes income from treasury products and services. 3. Includes premium amortisation on government securities: Rs. 220 crore in Q3-2006, Rs. 224 crore in Q3-2007, Rs. 559 crore in 9m-2006, Rs. 733 crore in 9m-2007 and Rs. 802 crore in FY2006. 4. Includes standard asset provisions of Rs. 208 crore in Q3-2006, Rs. 144 crore in Q3-2007, Rs. 248 crore in 9m-2006, Rs. 278 crore in 9m-2007 and Rs. 339 crore in FY2006. 5. Includes provision of Rs. 85 crore for potential losses from frauds pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the warehouse receipt-based financing product for agricultural credit. 6. Prior period figures have been regrouped/re-arranged where necessary. Summary Balance Sheet [TABLE OMITTED] 1. Includes Hybrid Tier-1 and Upper Tier-2 capital of Rs. 4,197 crore. Except for the historical information contained herein, statements in this Release which contain words or phrases such as 'will', 'would', 'indicating', '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 to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections A Cash Flow Projection is an attempt to forecast the cash flows that will be generated by an asset, often a company, over a specified time frame. Methodology Projections can be made with varying levels of detail, but any cash flow projection for a business entails , our exposure to market risks as well as other risks detailed in the reports filed by us with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. [TABLE OMITTED] Notes 1. The financial results have been prepared in accordance with Accounting Standard ("AS") 25 on "Interim Financial Reporting". 2. During the quarter ended December 31, 2006, the Bank allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. 1,151,362 equity shares pursuant to exercise of employee stock options and forfeited 44,280 partly paid equity shares for non-payment of balance amount due in respect of Public Issue of equity shares made in December, 2005. 3. Status of equity investors' complaints / grievances for the quarter ended December 31, 2006. Opening balance Additions Disposals Closing balance * 8 437 437 8 4. Provision for current period tax includes Rs. 9.98 crore towards provision for fringe benefit fringe benefit Any nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. tax for the quarter ended December 31, 2006 (Rs. 31.96 crore for the nine months ended December 31, 2006). 5. Other provisions and contingencies for the quarter ended December 31, 2006 includes provisions of Rs. 85.05 crore for potential losses from frauds pertaining to warehouse receipt-based financing product for agricultural credit. 6. Till the year ended March 31, 2006, the Bank deducted direct marketing agency expenses on automobile loans from the interest income. For the period ended December 31, 2006, the Bank has reported all direct marketing agency expenses, on automobile loans and other retail loans, separately under "Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ". 7. ICICI Web Trade Limited has merged with ICICI Brokerage Services Limited, a subsidiary of ICICI Bank Limited, effective October 1, 2006. 8. Previous period / year figures have been regrouped / reclassified where necessary to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" current period classification. 9. The above financial results have been taken on record by the Board of Directors at its meeting held on January 20, 2007. SEGMENTAL segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. INFORMATION OF ICICI BANK LIMITED FOR THE PERIOD ENDED DECEMBER 31, 2006 [TABLE OMITTED] For further press queries please call Charudatta Deshpande at 91-22-2653 8208 or e-mail: charudatta.deshpande@icicibank.com. For investor queries please call Rakesh Jha at 91-22-2653 6157 or Anindya Banerjee at 91-22-2653 7131 or email at ir@icicibank.com. 1 crore = 10.0 million US$ amounts represent convenience translations at US$1= Rs. 44.26. |
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