Performance Review of ICICI Bank -- Half-Year Ended September 30, 2004: 28% Year-on-Year Growth in Profit before Tax.MUMBAI Mumbai (m  mbī`, m m`bī), formerly Bombay (bŏmbā`), city (1991 pop. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. -- 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 NYSESee: 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 half-year ended September September: see month. 30, 2004 (H1-2005). Highlights --Net interest income increased 42% to Rs. 1,316 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>. Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million (US$ 286 million) for H1-2005 from Rs. 927 crore (US$ 201 million) for the half-year ended September 30, 2003 (H1-2004). --Fee income increased 93% to Rs. 955 crore (US$ 208 million) for H1-2005 from Rs. 496 crore (US$ 108 million) for H1-2004. --Core 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. i.e. profit before treasury gains, provisions and tax increased 129% to Rs. 1,092 crore (US$ 237 million) for H1-2005 from Rs. 477 crore (US$ 104 million) for H1-2004. --Profit before tax increased 28% to Rs. 1,067 crore (US$ 232 million) for H1-2005 from Rs. 834 crore (US$ 181 million) for H1-2004. --Profit after tax for H1-2005 increased 18% to Rs. 873 crore (US$ 190 million) from Rs. 742 crore (US$ 161 million) for H1-2004. --Retail assets increased 57% to Rs. 39,609 crore (US$ 8.6 billion) at September 30, 2004 from Rs. 25,205 crore (US$ 5.5 billion) at September 30, 2003. Operating review Credit growth The retail credit market continues to witness robust growth and there is a significant pipeline of corporate investment in infrastructure and manufacturing. The Bank is focusing on credit origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real in both the corporate and retail segments and on growth in non-fund based products, leveraging its corporate relationships and its retail distribution capabilities and customer franchise. The Bank's international presence combined with its domestic balance sheet enables it to offer a wider range of credit and trade finance solutions to 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
n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be through securitisation. The Bank's total advances increased 25% to Rs. 67,901 crore (US$ 14.8 billion) at September 30, 2004 compared to Rs. 54,127 crore (US$ 11.8 billion) at September 30, 2003. The Bank maintained its growth momentum in the retail segment. The Bank's home loan disbursements during H1-2005 were Rs. 8,221 crore (US$ 1.8 billion). Retail assets constituted 58% of advances and 52% of customer assets at September 30, 2004. Funding Total deposits increased 26% to Rs. 71,598 crore (US$ 15.6 billion) at September 30, 2004 from Rs. 56,880 crore (US$ 12.4 billion) at September 30, 2003. Savings and current account deposits constituted 25% of total deposits. During H1-2005, the Bank repaid about Rs. 3,600 crore (US$ 782 million) of erstwhile erst·while adv. In the past; at a former time; formerly. adj. Former: our erstwhile companions. erstwhile Adjective former Adverb ICICI's liabilities as they fell due in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with their terms of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan . At September 30, 2004, erstwhile ICICI's liabilities constituted 22% of the Bank's funding compared to 34% at September 30, 2003. The Bank's average cost of deposits for H1-2005 was 4.4% compared to 5.8% for H1-2004. Growing international presence The Bank opened a representative office in Bangladesh Bangladesh (bäng-lädĕsh`, băng–) [Bengali,=Bengal nation], officially People's Republic of Bangladesh, republic (2005 est. pop. 144,320,000), 55,126 sq mi (142,776 sq km), S Asia. in August 2004 and an offshore branch in Bahrain Bahrain or Bahrein (both: bärān`, bə–), officially Kingdom of Bahrain, constitutional monarchy and archipelago (2005 est. pop. 688,300), 266 sq mi (689 sq km), in the Persian Gulf. in October October: see month. 2004. In addition to providing credit and trade finance solutions to Indian companies, the Bank is expanding its international retail franchise through alliances with foreign banks. Total NRI NRI Nomura Research Institute (Tokyo, Japan) NRI Non-Resident Indian NRI Natural Resources Institute NRI National Resources Inventory NRI Networked Readiness Index NRI Natural Resources Inventory NRI National Research Institute inward in·ward adj. 1. Located inside; inner. 2. Directed or moving toward the interior: an inward flow. 3. remittances
Remittances are transfers of money by foreign workers to their home countries. for H1-2005 were about Rs. 6,000 crore (US$ 1.3 billion). Capital adequacy The Bank's capital adequacy at September 30, 2004 was 15.2% (including Tier-1 capital adequacy of 9.4%), well above RBI's requirement of total capital adequacy of 9.0%. Asset quality The Bank's net restructured assets at September 30, 2004 were Rs. 6,817 crore (US$ 1.5 billion), down from Rs. 7,856 crore (US$ 1.7 billion) at September 30, 2003. At September 30, 2004, the Bank's net non-performing assets constituted 2.6% of customer assets against 4.8% at September 30, 2003. Group companies ICICI Lombard ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and the US-based $26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate General Insurance Company (ICICI Lombard) maintained its leadership position among private sector general insurance companies. ICICI Lombard achieved a profit after tax of Rs. 22 crore (US$ 5 million) in H1-2005, compared to profit after tax of Rs. 9 crore (US$ 2 million) for H1-2004. ICICI ICICI Industrial Credit and Investment Corporation of India Prudential Prudential is the name of two different companies and buildings named after them: Companies:
1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations , 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. 91 crore (US$ 20 million) on the Bank's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: profit after tax in H1-2005 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 H1-2005 was Rs. 121 crore (US$ 26 million) compared to a full year unaudited NBAP of Rs. 204 crore (US$ 44 million) for FY2004. NBAP represents the present discounted value of future profit streams from new policies written by the company during the year, calculated on the basis of certain assumptions as to mortality and other parameters. Internationally, life insurance companies in the growth phase are valued as a multiple of their NBAP. The Bank's consolidated profit after tax for H1-2005 was Rs. 749 crore (US$ 163 million).
Summary Profit and Loss Statement
Rs. crore
Growth
over
H1-
Q2-2004 H1-2004 Q2-2005 H1-2005 2004 FY2004
----------------------------------------------------------------------
NII 472 927 685 1,316 42% 1,987
----------------------------------------------------------------------
Non-interest income 401 785 712 1,277 63% 1,751
----------------------------------------------------------------------
- Fee income 260 496 537 955 93% 1,175
----------------------------------------------------------------------
- Lease income 112 225 106 209 -7% 422
----------------------------------------------------------------------
- Others 29 64 69 113 77% 154
----------------------------------------------------------------------
Core operating income 873 1,712 1,397 2,593 52% 3,738
----------------------------------------------------------------------
Operating expense 496 959 587 1,152 20% 1,999
----------------------------------------------------------------------
Other DMA expense 69 127 112 197 55% 293
----------------------------------------------------------------------
Lease depreciation 76 149 69 153 3% 279
----------------------------------------------------------------------
Core operating profit 232 477 629 1,092 129% 1,166
----------------------------------------------------------------------
Treasury income 461 721 123 216 -70% 1,314
----------------------------------------------------------------------
Provisions 240 364 195 241 -34% 579
----------------------------------------------------------------------
Profit before tax 453 834 557 1,067 28% 1,902
----------------------------------------------------------------------
Tax 51 92 115 194 111% 265
----------------------------------------------------------------------
Profit after tax 402 742 442 873 18% 1,637
----------------------------------------------------------------------
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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. , our growth and expansion in business, 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date thereof. For further press queries please call Madhvendra Das See direct attached storage and FDDI. DAS - Digital Analog Simulator. Represents analog computer design. at 91-22-2653 8208 or e-mail: madhvendra.das@icicibank.com. For investor queries please call Rakesh Jha at 91-22-2653 6157 or Anindya Banerjee Banerjee (anglicized from Bandyopadhyay) is a prevalent brahmin surname in the Bengal region of India. Banerjees are kulin brahmins, the highest class in Bengal (along with Mukherjees, Chatterjees, Gangulis, and Ghoshals). 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. 46.01.
AUDITED FINANCIAL RESULTS
(Rs. in crore)
Quarter ended
Sr. Particulars --------------------------
No. September September
30, 2004 30, 2003
------------------------------------------------------------------
1. Interest earned (a)+(b)+(c)+(d) 2,230.52 2,210.67
------------------------------------------------------------------
a) Interest/discount on
advances/bills 1,572.03 1,477.88
------------------------------------------------------------------
b) Income on investments 546.05 680.70
------------------------------------------------------------------
c) Interest on balances with Reserve
Bank of India and other interbank
funds 51.42 33.56
------------------------------------------------------------------
d) Others 61.02 18.53
----------------------------------------------------------------------
2. Other income 835.40 862.21
------------------------------------------------------------------
A) TOTAL INCOME (1) + (2) 3,065.92 3,072.88
----------------------------------------------------------------------
3. Interest expended 1,545.31 1,738.32
----------------------------------------------------------------------
4. Operating expenses (e) + (f) + (g) 768.84 641.37
------------------------------------------------------------------
e) Payments to and provisions for
employees 179.97 124.83
------------------------------------------------------------------
f) Direct marketing agency expenses 112.39 69.49
----------------------------------------------------------------------
g) Other operating expenses 476.48 447.05
----------------------------------------------------------------------
B) TOTAL EXPENDITURE (3) + (4)
(excluding provisions and
contingencies) 2,314.15 2,379.69
----------------------------------------------------------------------
5. OPERATING PROFIT (A-B)
(Profit before provisions and
contingencies) 751.77 693.19
----------------------------------------------------------------------
6. Other provisions and contingencies 194.70 240.40
----------------------------------------------------------------------
7. Provision for taxes
----------------------------------------------------------------------
a) Current period tax 114.44 64.10
----------------------------------------------------------------------
b) Deferred tax adjustment 0.55 (12.71)
----------------------------------------------------------------------
8. Net profit (5-6-7) 442.08 401.40
----------------------------------------------------------------------
9. Paid-up equity share capital (face value
Rs. 10/-) 734.46 613.36
----------------------------------------------------------------------
10. Reserves excluding revaluation reserves 11,358.49 7,069.31
----------------------------------------------------------------------
11. Analytical ratios
----------------------------------------------------------------------
(i) Percentage of shares held by
Government of India -- --
------------------------------------------------------------------
(ii) Capital adequacy ratio 15.20% 11.15%
------------------------------------------------------------------
(iii) Earnings per share for the period
(not annualised for quarter/half year)
(in Rs.) (basic) 6.02 6.55
------------------------------------------------------------------
(iv) Earnings per share for the period
(not annualised for quarter/half year)
(in Rs.) (diluted) 5.97 6.52
----------------------------------------------------------------------
12. Aggregate of non-promoter shareholding
------------------------------------------------------------------
-- No. of shares 73,47,28,679 61,34,25,469
------------------------------------------------------------------
-- Percentage of shareholding 100 100
----------------------------------------------------------------------
13. Deposits 71,597.99 56,879.67
----------------------------------------------------------------------
14. Advances 67,900.78 54,127.32
----------------------------------------------------------------------
15. Total assets 132,780.69 112,024.36
----------------------------------------------------------------------
Half year ended
Sr. Particulars -------------------------- Year ended
No. September 30, September 30, March 31,
2004 2003 2004
------------------------------------------------------------------
1. Interest earned
(a)+(b)+(c)+(d) 4,426.30 4,505.41 9,002.39
------------------------------------------------------------------
a) Interest/discount on
advances/bills 3,157.82 3,046.73 6,073.85
------------------------------------------------------------------
b) Income on
investments 1,047.68 1,320.14 2,540.09
------------------------------------------------------------------
c) Interest on balances
with Reserve Bank of
India and other
interbank funds 119.45 85.67 210.64
------------------------------------------------------------------
d) Others 101.35 52.87 177.81
----------------------------------------------------------------------
2. Other income 1,493.11 1,506.02 3,064.92
------------------------------------------------------------------
A) TOTAL INCOME (1) + (2) 5,919.41 6,011.43 12,067.31
----------------------------------------------------------------------
3. Interest expended 3,110.54 3,578.53 7,015.25
----------------------------------------------------------------------
4. Operating expenses (e) +
(f) + (g) 1,501.26 1,235.27 2,571.23
------------------------------------------------------------------
e) Payments to and
provisions for
employees 346.88 244.25 546.06
------------------------------------------------------------------
f) Direct marketing
agency expenses 196.71 127.40 293.70
----------------------------------------------------------------------
g) Other operating
expenses 957.67 863.62 1,731.47
----------------------------------------------------------------------
B) TOTAL EXPENDITURE (3) +
(4) (excluding provisions
and contingencies) 4,611.80 4,813.80 9,586.48
----------------------------------------------------------------------
5. OPERATING PROFIT (A-B)
(Profit before provisions
and contingencies) 1,307.61 1,197.63 2,480.83
----------------------------------------------------------------------
6. Other provisions and
contingencies 240.54 364.09 578.62
----------------------------------------------------------------------
7. Provision for taxes
----------------------------------------------------------------------
a) Current period tax 266.97 118.84 271.99
----------------------------------------------------------------------
b) Deferred tax adjustment (72.72) (26.90) (6.88)
----------------------------------------------------------------------
8. Net profit (5-6-7) 872.82 741.60 1,637.10
----------------------------------------------------------------------
9. Paid-up equity share
capital (face value Rs.
10/-) 734.46 613.36 616.40
----------------------------------------------------------------------
10. Reserves excluding
revaluation reserves 11,358.49 7,069.31 7,394.16
----------------------------------------------------------------------
11. Analytical ratios
----------------------------------------------------------------------
(i) Percentage of shares
held by Government of
India -- -- --
------------------------------------------------------------------
(ii) Capital adequacy ratio 15.20% 11.15% 10.36%
------------------------------------------------------------------
(iii) Earnings per share
for the period (not
annualised for
quarter/half year) (in
Rs.) (basic) 12.13 12.10 26.66
------------------------------------------------------------------
(iv) Earnings per share for
the period (not annualised
for quarter/half year) (in
Rs.) (diluted) 12.03 12.05 26.44
----------------------------------------------------------------------
12. Aggregate of non-promoter
shareholding
------------------------------------------------------------------
-- No. of shares 73,47,28,679 61,34,25,469 61,63,91,905
------------------------------------------------------------------
-- Percentage of
shareholding 100 100 100
----------------------------------------------------------------------
13. Deposits 71,597.99 56,879.67 68,108.58
----------------------------------------------------------------------
14. Advances 67,900.78 54,127.32 62,095.52
----------------------------------------------------------------------
15. Total assets 132,780.69 112,024.36 1,25,228.87
----------------------------------------------------------------------
Notes
1. The financials have been prepared in accordance with Accounting
Standard ("AS") 25 on "Interim Financial Reporting".
2. During the quarter ended September 30, 2004, the Bank allotted
8,30,822 equity shares pursuant to exercise of employee stock
options.
3. The Bank enters into rupee derivative transactions as part of
its trading operations. Given the growing derivatives market and
the Bank's increasing volumes in this activity, effective April 1,
2004, the Bank recognises the mark-to-market impact of this
portfolio (net of provisions) in its profit and loss account. This
had a positive impact of Rs. 4.23 crore on the profit after tax
for the quarter ended September 30, 2004 (Rs. 33.22 crore for the
half year ended September 30, 2004)
4. Status of equity investors' complaints for the quarter ended
September 30, 2004
Opening balance Additions Disposals Closing balance (a)
----------------------------------------------------------------------
6 2122 2121 7
----------------------------------------------------------------------
(a) Of these, 2 have since been resolved.
The above figures include complaints relating to Public issue in
April 2004.
5. Previous period figures have been regrouped / reclassified
where necessary to conform to current period classification.
The above financial results have been taken on record by the Board
of Directors at its meeting held on October 21, 2004.
SEGMENTAL INFORMATION OF ICICI BANK LIMITED FOR THE PERIOD
ENDED SEPTEMBER 30, 2004
(Rs. in crore)
Sr. Quarter ended
No. Particulars ----------------------
September September
30, 2004 30, 2003
----------------------------------------------------------------------
1. Segment revenue
----------------------------------------------------------------------
a Consumer and commercial banking 2,590.68 2,368.74
----------------------------------------------------------------------
b Investment banking 721.47 1,002.80
----------------------------------------------------------------------
Total 3,312.15 3,371.54
----------------------------------------------------------------------
Less: Inter segment revenue (246.23) (298.66)
----------------------------------------------------------------------
Income from Operations 3,065.92 3,072.88
----------------------------------------------------------------------
2. Segmental results (i.e. Profit before tax &
provision)
----------------------------------------------------------------------
a Consumer and commercial banking 557.67 327.61
----------------------------------------------------------------------
b Investment banking 203.70 372.24
----------------------------------------------------------------------
Total 761.37 699.85
----------------------------------------------------------------------
3. Provisions
----------------------------------------------------------------------
a Consumer and commercial banking 163.57 245.16
----------------------------------------------------------------------
b Investment banking 31.13 (4.76)
----------------------------------------------------------------------
Total 194.70 240.40
----------------------------------------------------------------------
4. Segment results (i.e. Profit before tax)
----------------------------------------------------------------------
a Consumer and commercial banking 394.10 82.45
----------------------------------------------------------------------
b Investment banking 172.57 377.00
----------------------------------------------------------------------
Total profit before tax 566.67 459.45
----------------------------------------------------------------------
Unallocated 9.60 6.66
----------------------------------------------------------------------
Tax 114.99 51.39
----------------------------------------------------------------------
Profit after tax 442.08 401.40
----------------------------------------------------------------------
5. Capital employed (i.e. segment assets -
segment liabilities excluding inter-
segmental funds lent and borrowed)
----------------------------------------------------------------------
a Consumer and commercial banking (20,983.48)(17,297.19)
----------------------------------------------------------------------
b Investment banking 30,695.04 23,158.33
----------------------------------------------------------------------
Total 9,711.56 5,861.14
----------------------------------------------------------------------
Sr. Half year ended
No. Particulars ---------------------- Year ended
September September March 31,
30, 2004 30, 2003 2004
----------------------------------------------------------------------
1. Segment revenue
----------------------------------------------------------------------
a Consumer and commercial banking 5,094.89 4,766.93 9,581.93
----------------------------------------------------------------------
b Investment banking 1,332.53 1,823.22 3,590.28
----------------------------------------------------------------------
Total 6,427.42 6,590.15 13,172.21
----------------------------------------------------------------------
Less: Inter segment revenue (508.01) (578.72) (1,104.90)
----------------------------------------------------------------------
Income from Operations 5,919.41 6,011.43 12,067.31
----------------------------------------------------------------------
2. Segmental results (i.e. Profit
before tax & provision)
----------------------------------------------------------------------
a Consumer and commercial banking 1,023.98 646.90 1,298.42
----------------------------------------------------------------------
b Investment banking 302.83 557.39 1,208.01
----------------------------------------------------------------------
Total 1,326.81 1,204.29 2,506.43
----------------------------------------------------------------------
3. Provisions
----------------------------------------------------------------------
a Consumer and commercial banking 242.52 369.05 554.28
----------------------------------------------------------------------
b Investment banking (1.98) (4.96) 24.34
----------------------------------------------------------------------
Total 240.54 364.09 578.62
----------------------------------------------------------------------
4. Segment results (i.e. Profit
before tax)
----------------------------------------------------------------------
a Consumer and commercial banking 781.46 277.85 744.14
----------------------------------------------------------------------
b Investment banking 304.81 562.35 1,183.67
----------------------------------------------------------------------
Total profit before tax 1,086.27 840.20 1,927.81
----------------------------------------------------------------------
Unallocated 19.20 6.66 25.60
----------------------------------------------------------------------
Tax 194.25 91.94 265.11
----------------------------------------------------------------------
Profit after tax 872.82 741.60 1,637.10
----------------------------------------------------------------------
5. Capital employed (i.e. segment
assets - segment liabilities
excluding inter-segmental funds
lent and borrowed)
----------------------------------------------------------------------
a Consumer and commercial banking (20,983.48)(17,297.19)(20,698.00)
----------------------------------------------------------------------
b Investment banking 30,695.04 23,158.33 26,455.04
----------------------------------------------------------------------
Total 9,711.56 5,861.14 5,757.04
----------------------------------------------------------------------
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