ICICI Bank Announces Performance Review - Quarter Ended September 30, 2006: 30% 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 Mumbai today, approved the audited accounts of the Bank for the quarter ended September 30, 2006 (Q2-2007). 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. excluding treasury income increased 65% in Q2-2007 to Rs. 1,325 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>. Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million (US$ 288 million) from Rs. 804 crore (US$ 175 million) in the quarter ended September 30, 2005 (Q2-2006). * Operating profit increased 54% to Rs. 1,612 crore (US$ 351 million) in Q2-2007 from Rs. 1,044 crore (US$ 227 million) in Q2-2006. * Profit after tax for Q2-2007 increased 30% to Rs. 755 crore (US$ 164 million) from Rs. 580 crore (US$ 126 million) for Q2-2006. * Net interest income increased 47% to Rs. 1,577 crore (US$ 343 million) for Q2-2007 from Rs. 1,070 crore (US$ 233 million) for Q2-2006. * Fee income increased 62% to Rs. 1,138 crore (US$ 248 million) for Q2-2007 from Rs. 704 crore (US$ 153 million) for Q2-2006. * Profit after tax increased 24% to Rs. 1,375 crore (US$ 299 million) for the six-month period ended September 30, 2006 (H1-2007) from Rs. 1,110 crore (US$ 242 million) for the six-month period ended September 30, 2005 (H1-2006). * Retail assets increased 57% to Rs. 107,679 crore (US$ 23.4 billion) at September 30, 2006 from Rs. 68,537 crore (US$ 14.9 billion) at September 30, 2005. * Deposits increased 57% to Rs. 189,499 crore (US$ 41.3 billion) at September 30, 2006 from Rs. 120,452 crore (US$ 26.2 billion) at September 30, 2005. Operating review Credit growth The Bank's net customer assets increased 47% to Rs. 163,785 crore (US$ 35.7 billion) at September 30, 2006 compared to Rs. 111,514 crore (US$ 24.3 billion) at September 30, 2005. The Bank maintained its growth momentum and market leadership in the retail segment. In H1-2007, the Bank's total retail disbursements were about Rs. 33,500 crore (US$ 7.3 billion) including home loan disbursements of about Rs. 13,400 crore (US$ 2.9 billion). Retail assets constituted 69% of advances and 66% 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
Rural banking The Bank is rolling out its rural strategy, providing a comprehensive product suite encompassing credit, transaction banking, deposit, investment and insurance, through a range of channels. The Bank is focusing on rural retail lending for productive purposes, as well as rural infrastructure. The Bank's rural retail delivery channels include its own branches, as well as various partnerships, including micro-finance institution (MFI MFI Microfinance Institution MFI Money Flow Index MFI Melt Flow Index MFI Median Family Income MFI Malaria Foundation International MFI Massachusetts Family Institute MFI Multi-port Fuel Injection (automobile) ) partners. The Bank has also initiated banking correspondent models. The Bank's rural portfolio grew by about 70% on a year-on-year basis. 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 operates in 14 countries through branches, representative offices and wholly-owned subsidiaries. During the quarter, the Bank's Canadian subsidiary opened its sixth branch and the Bank opened a representative office in Indonesia. The loan portfolio of the Bank's international branches (including foreign currency financing to Indian companies) increased to about Rs. 15,000 crore (US$ 3.3 billion) at September 30, 2006 from Rs. 9,600 crore (US$ 2.1 billion) at September 30, 2005. The loan portfolio of the Bank's international banking subsidiaries (including foreign currency financing to Indian companies) increased to about Rs. 9,400 crore (US$ 2.0 billion) at September 30, 2006 from Rs. 4,100 crore (US$ 0.9 billion) at September 30, 2005. The Bank's remittance volumes grew by 74% in H1-2007 compared to H1-2006. 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 of for H1-2007 was US$ 16.1 million (approximately Rs. 74 crore), translating into a return on equity of 21%. Capital adequacy The Bank's capital adequacy at September 30, 2006 was 14.3% (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 9.4%), well above RBI's requirement of total capital adequacy of 9.0%. The Bank's unaudited capital adequacy estimated based on RBI's draft guidelines issued in February 2005 on implementation of the revised capital adequacy framework (Basel II Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II is to create an international standard that banking regulators can use when creating regulations ), was about 14.9% (including Tier 1 capital adequacy of about 10.5%) at September 30, 2006. Asset quality At September 30, 2006, the Bank's net non-performing assets constituted 0.9% of customer assets against 1.0% at September 30, 2005. The Bank's net restructured loans at September 30, 2006 were Rs. 4,942 crore (US$ 1.1 billion), down from Rs. 5,713 crore (US$ 1.2 billion) at September 30, 2005. Key domestic subsidiaries ICICI ICICI Industrial Credit and Investment Corporation of India Securities achieved a profit after tax of Rs. 35 crore (US$ 8 million) in Q2-2007. ICICI Lombard ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and the US-based $26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate General Insurance Company (ICICI Lombard) enhanced its leadership position with a market share of 35% among private sector general insurance companies and an overall market share of 12% in H1-2007. ICICI Lombard's unaudited profit after tax for Q2-2007 was Rs. 18 crore (US$ 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 ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin liability. While the growing operations of ICICI Prudential Life had a negative impact of Rs. 112 crore (US$ 24 million) on the Bank's consolidated profit after tax in Q2-2007 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 Q2-2007 was Rs. 161 crore (US$ 35 million) as compared to Rs. 100 crore (US$ 22 million) in Q2-2006. 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 top two 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. 30,000 crore (US$ 6.5 billion) at September 30, 2006. [TABLE OMITTED] [TABLE OMITTED] 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. 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. 45.92. [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 September 30, 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. 1,000,376 equity shares pursuant to exercise of employee stock options. 3. Status of equity investors' complaints / grievances for the quarter ended September 30, 2006. Opening balance Additions Disposals Closing balance 9 955 956 8 4. Provision for current period tax includes Rs. 10.84 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 September 30, 2006 (Rs. 21.98 crore for the half year ended September 30, 2006). 5. 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 September 30, 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. ". 6. ICICI Web Trade Limited has merged with ICICI Brokerage Services Limited, a subsidiary of ICICI Bank Limited, effective October 1, 2006. 7. 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. 8. The above financial results have been taken on record by the Board of Directors at its meeting held on October 24, 2006. [TABLE OMITTED] |
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