ICICI Bank announces Q3 FY19 results

icici-bank logo

Consolidated profit after tax was Rs 1,874 crore (US$ 269 million) in Q3- 2019 compared to Rs 1,205 crore (US$ 173 million) in Q2-2019 and Rs 1,894 crore (US$ 271 million) in Q3-2018.

  • Core operating profit (profit before provisions and tax, excluding treasury income) grew by 14% year-on-year to Rs 5,667 crore (US$ 812 million) in the quarter ended December 31, 2018 (Q3-2019)
  • Core operating profit excluding dividend income from subsidiaries grew by 18% year-on-year to Rs 5,343 crore (US$ 766 million) in Q3-2019
  • Net interest margin at 3.40% in Q3-2019
  • Fee income grew by 16% year-on-year in Q3-2019
  • Net NPA ratio decreased from 3.65% at September 30, 2018 to 2.58% at December 31, 2018 – the lowest in the last 12 quarters
  • Gross NPA additions decreased from Rs 3,117 crore (US$ 447 million) in the quarter ended September 30, 2018 (Q2-2019) to Rs 2,091 crore (US$ 300 million) in Q3-2019 – the lowest in the last 14 quarters
  • Gross NPAs amounting to Rs 4,063 crore (US$ 582 million) recovered/upgraded/resolved through sale in Q3-2019
  • 690 basis points (bps) sequential increase in provision coverage ratio (including technical/prudential write-offs) to 76.3% at December 31, 2018, further strengthening the balance sheet
  • Domestic loan growth at 14% year-on-year at December 31, 2018 driven by retail
  • Retail loans grew by 22% year-on-year and constituted 59% of the loan portfolio at December 31, 2018
  • 15% year-on-year growth in current and savings account (CASA) deposits; period-end CASA ratio at 49.3% at December 31, 2018
  • 20% year-on-year growth in term deposits at December 31, 2018
  • Total capital adequacy ratio of 17.15% and Tier-1 capital adequacy ratio of 15.14% on standalone basis at December 31, 2018

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, 2018. Profit & loss account

  • Net interest income increased by 21% year-on-year from ` 5,705 crore (US$ 818 million) in the quarter ended December 31, 2017 (Q3-2018) to Rs 6,875 crore (US$ 985 million) in Q3-2019.
  • The net interest margin was 3.40% in Q3-2019 compared to 3.33% in Q2- 2019.
  • Non-interest income, excluding treasury income, was Rs  3,404 crore (US$ 488 million) in Q3-2019 compared to Rs  3,101 crore (US$ 444 million) in Q3-2018.
  • Fee income grew by 16% year-on-year from Rs 2,639 crore (US$ 378 million) in Q3-2018 to Rs 3,062 crore (US$ 439 million) in Q3-2019. Retail fee constituted 73% of total fees.
  • he core operating profit (profit before provisions and tax, excluding treasury income) increased by 14% year-on-year from Rs 4,992 crore (US$ 715 million) in Q3-2018 to Rs 5,667 crore (US$ 812 million) in Q3- 2019.
  • The core operating profit (profit before provisions and tax, excluding treasury income) excluding dividend income from subsidiaries grew by 18% year-on-year from Rs 4,547 crore (US$ 651 million) in Q3-2018 to Rs 5,343 crore (US$ 766 million) in Q3-2019.
  • Treasury income was Rs 479 crore (US$ 69 million) in Q3-2019 compared to Rs 66 crore (US$ 9 million) in Q3-2018.
  • Provisions were Rs 4,244 crore (US$ 608 million) in Q3-2019 compared to Rs 3,570 crore (US$ 512 million) in Q3-2018.
  • The standalone profit after tax was Rs 1,605 crore (US$ 230 million) in Q3- 2019 compared to Rs 909 crore (US$ 130 million) in Q2-2019 and Rs 1,650 crore (US$ 236 million) in Q3-2018.
  • Consolidated profit after tax was Rs 1,874 crore (US$ 269 million) in Q3- 2019 compared to Rs 1,205 crore (US$ 173 million) in Q2-2019 and Rs 1,894 crore (US$ 271 million) in Q3-2018.

Operating review

Credit growth

The year-on-year growth in domestic advances was 14% at December 31, 2018. The Bank has continued to leverage its strong retail franchise, resulting in a 22% year-on-year growth in the retail loan portfolio at December 31, 2018. Total advances increased by 12% year-on-year to Rs 564,308 crore (US$ 80.9 billion) at December 31, 2018 from Rs 505,387 crore (US$ 72.4 billion) at December 31, 2017.

Deposit growth

CASA deposits increased by 15% year-on-year to Rs 299,374 crore (US$ 42.9 billion) at December 31, 2018. The Bank’s CASA ratio was 49.3% at December 31, 2018 compared to 50.8% at September 30, 2018 and 50.4% at December 31, 2017. The average CASA ratio was 46.0% in Q3-2019 compared to 47.1% in Q2-2019. Term deposits increased by 20% year-onyear to Rs 307,381 crore (US$ 44.1 billion) at December 31, 2018. Total deposits increased by 17% year-on-year to Rs 606,755 crore (US$ 87.0 billion) at December 31, 2018. The Bank had a network of 4,867 branches and 14,944 ATMs at December 31, 2018.

Capital adequacy

The Bank’s total capital adequacy at December 31, 2018 as per Reserve Bank of India’s guidelines on Basel III norms was 17.15% and Tier-1 capital adequacy was 15.14% compared to the regulatory requirements of 11.03% and 9.03% respectively.

Asset quality

The net NPA ratio decreased from 3.65% at September 30, 2018 to 2.58% at December 31, 2018. The provision coverage ratio on non-performing loans, including cumulative technical/prudential write-offs, increased by 690 bps sequentially to 76.3% at December 31, 2018, further strengthening the balance sheet. The gross additions to NPA were ₹ 2,091 crore (US$ 300 million) in Q3-2019. Recoveries, upgrades and resolution of non-performing loans through sale were ` 4,063 crore (US$ 582 million) in Q3-2019. The recoveries and upgrades in Q3-2019 included ₹ 720 crore (US$ 103 million) on account of the impact of rupee appreciation on existing foreign currency NPAs.

Digital initiatives

During Q3-2019, the Bank launched ‘Amazon Pay ICICI Bank Credit Card’, a co-branded credit card in an exclusive seven year partnership with Amazon Pay, the online payment platform for Amazon.

The Bank has launched an instant digital credit facility, ‘PayLater’, to enable customers to buy small ticket items immediately in a digital and paperless manner. Customers can use this facility to shop online on e-commerce, entertainment, travel and accommodation booking websites among others. This facility leverages BHIM UPI 2.0 technology.

During Q3-2019, the Bank also revamped its ‘Trade Online’ platform, for export/import transactions by introducing new digital services. The platform now enables all our corporates as well as MSMEs to undertake almost all their export-import transactions online, eliminating the requirement of physical documentation and a branch visit. The list of services that can be initiated and executed digitally on Trade Online include issuance of letters of credit and bank guarantees, export/import collection bills, disbursement of export credit and payments against imports among others. The platform offers quick and convenient credit of inward remittance within minutes to the ICICI Bank current account of the recipient.

ICICI Bank celebrated 20 years of digital banking by adding an array of new services to its iMobile app. These services include an automated and robotics based investment advisory tool for customers, fund transfer service using voice commands, and enhanced security for credit and debit cardholders.

In Q3-2019, the value of debit card transactions and credit card transactions increased by 21% y-o-y and 29% y-o-y respectively. Over 23 million UPI Virtual Payment Addresses have been created using the Bank’s and partners’ platforms till December 31, 2018. Digital channels like internet, mobile banking, POS and others accounted for over 85% of the savings account transactions in 9M-2019.

Consolidated results

The Board has reviewed and approved the unaudited consolidated results of the Bank for the nine months ended December 31, 2018. The statutory auditors of the Bank have undertaken a limited review of the same. Consolidated profit after tax was Rs 1,874 crore (US$ 269 million) in Q3-2019 compared to Rs 1,205 crore (US$ 173 million) in Q2-2019 and Rs 1,894 crore (US$ 271 million) in Q3-2018. Consolidated assets grew by 12% from Rs 1,053,677 crore (US$ 151.0 billion) at December 31, 2017 to Rs 1,177,498 crore (US$ 168.8 billion) at December 31, 2018.

Subsidiaries

ICICI Prudential Life Insurance Company (ICICI Life) announced results for Q3-2019 on January 22, 2019. Total premium increased by 10% year-onyear to Rs 7,566 crore (US$ 1.1 billion) in Q3-2019. The Value of New Business grew by 19% year-on-year to Rs 910 crore (US$ 130 million) in 9M-2019. The new business margin was 17% in 9M-2019. ICICI Life’s profit after tax was Rs 297 crore (US$ 43 million) for Q3-2019 compared to ` 452 crore (US$ 65 million) for Q3-2018.

ICICI Lombard General Insurance Company (ICICI General) announced results for Q3-2019 on Januray 18, 2019. The gross written premium of ICICI General grew by 26% from Rs 3,002 crore (US$ 430 million) in Q3-2018 to Rs 3,769 crore (US$ 540 million) in Q3-2019. The company’s combined ratio was 96.0% in Q3-2019 compared to 95.9% in Q3-2018. ICICI General’s profit after tax was Rs 239 crore (US$ 34 million) in Q3-2019 compared to ` 232 crore (US$ 33 million) in Q3-2018.

ICICI Securities announced results for Q3-2019 on January 14, 2019. As per Ind AS, the profit after tax of ICICI Securities, on a consolidated basis, was Rs 101 crore (US$ 14 million) in Q3-2019 compared to Rs 154 crore (US$ 22 million) in Q3-2018. The return on equity was 55% in 9M-2019.

The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC) increased by 19% from Rs 161 crore (US$ 23 million) in Q3-2018 to Rs 193 crore (US$ 28 million) in Q3-2019.

NewsBarons is now active on WhatsApp. To receive news and updates on your handset, please click here and press send to subscribe.

Latika Bhargava
Latika Bhargava successfully manages the dual responsibility of news and website management at Newsbarons. Latika prides herself at her expertise on social media planning and management. An entrepreneur at heart, Latika is a quick learner, analytical and enjoys reading on technology innovation.
latika@newsbarons.com
banner4