ICICI Bank Q1 net profit at INR 1,908 crore

Fee income grew by 10% year-on-year to ₹ 3,039 crore (US $440 million) in Q1-2020 from ₹2,754 crore (US $399 million) in Q1-2019. Retail fees constituted 72% of total fees.

Performance Review: Quarter ended June 30, 2019

• Core operating profit (profit before provisions and tax, excluding treasury income) grew by 21% year-on-year to ₹ 6,110 crore (US$ 885 million) in the quarter ended June 30, 2019 (Q1-2020)
o The core operating profit excluding dividend income from        subsidiaries grew by 25% year-on-year to ₹ 5,919 crore          (US$ 858 million) in Q1-2020

• 21% year-on-year growth in total deposits at June 30, 2019
o Average current and savings account (CASA) ratio of               43.4% for the quarter

• Domestic loan growth at 18% year-on-year at June 30, 2019 driven by retail
o Retail loans grew by 22% year-on-year; including non-           fund outstanding, retail was 48.5% of the total portfolio           at June 30, 2019

• Net non-performing assets (NPA) decreased by 51% from 24,170 crore (US$ 3.5 billion) at June 30, 2018 to ` 11,857 crore (US$ 1.7 billion) at June 30, 2019
o Net NPA ratio decreased from 4.19% at June 30, 2018 to        1.77% at June 30, 2019 – the lowest in the last 14                  quarters
o Gross NPA additions in Q1-2020 were ` 2,779 crore (US$         403 million) compared to ` 3,547 crore (US$ 514                   million) in the quarter ended March 31, 2019 (Q4-2019)

• Total capital adequacy ratio of 16.19% and Tier-1 capital adequacy ratio of 14.60% on standalone basis at June 30, 2019, including profits for Q1-2020

 

The Board of Directors of ICICI Bank Limited at its meeting held at Mumbai today, approved the standalone and consolidated accounts of the Bank for the quarter ended June 30, 2019. The statutory auditors have conducted a limited review and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended June 30, 2019.

Profit & Loss account

The core operating profit (profit before provisions and tax, excluding treasury income) increased by 21% year-on-year to ₹ 6,110 crore (US $885 million) in Q1-2020 from ₹5,042 crore (US $731 million) in the quarter ended June 30, 2018 (Q1-2019).

The core operating profit excluding dividend income from subsidiaries increased by 25% year-on-year to ₹5,919 crore (US $858 million) in Q1-2020 from ₹4,725 crore (US $685 million) in Q1- 2019.

Net interest income (NII) increased by 27% year-on-year to ` 7,737 crore (US $1.1 billion) in Q1-2020 from `6,102 crore (US$ 884 million) in Q1- 2019. NII in Q1-2020 includes ` 184 crore (US $27 million) of interest on income tax refund compared to `8 crore (US $1 million) in Q1-2019 and `414 crore (US $60 million) in Q4-2019.

The net interest margin was 3.61% in Q1-2020 compared to 3.19% in Q1-2019 and 3.72% in Q4-2019. The impact of interest on income tax refund and interest collection from NPLs on net interest margin was about 17 basis points in Q1-2020 compared to about 25 basis points in Q4-2019.

Non-interest income, excluding treasury income, was ₹3,247 crore (US $470 million) in Q1-2020 compared to ₹3,085 crore (US $447 million) in Q1-2019.

Fee income grew by 10% year-on-year to ₹ 3,039 crore (US $440 million) in Q1-2020 from ₹2,754 crore (US $399 million) in Q1-2019. Retail fees constituted 72% of total fees.

Treasury income was `179 crore (US $26 million) in Q1-2020 compared to `766 crore (US $111 million) in Q1-2019. Treasury income in Q1-2019 included gain of ₹1,110 crore (US $161 million) on sale of shareholding in ICICI Prudential Life Insurance.

Provisions were ₹3,496 crore (US $507 million) in Q1-2020 compared to ₹5,971 crore (US $865 million) in Q1-2019.

On a standalone basis, the profit after tax was `1,908 crore (US $276 million) in Q1-2020 compared to a loss of ₹120 crore (US $17 million) in Q1-2019.

Operating review

Credit growth

The year-on-year growth in domestic advances was 18% at June 30, 2019. The Bank has continued to leverage its strong retail franchise, resulting in a 22% year-on-year growth in the retail loan portfolio at June 30, 2019. Excluding non-performing and restructured loans, the growth in domestic corporate loans was about 13% year-on-year. Total advances increased by 15% year-on-year to `592,415 crore (US $85.8 billion) at June 30, 2019 from `516,289 crore (US $74.8 billion) at June 30, 2018.

Deposit growth

Total deposits increased by 21% year-on-year to `660,732 crore (US $95.7 billion) at June 30, 2019. Average CASA deposits increased by 12.3% year-on-year in Q1-2020. The period-end CASA ratio was 45.2% at June 30, 2019 compared to 49.6% at March 31, 2019 and 50.5% at June 30, 2018. The average CASA ratio was 43.4% in Q1-2020 compared to 44.6% in Q4-2019 and 46.1% in Q1-2019. Term deposits increased by 34% year-on-year to `361,855 crore (US $52.4 billion) at June 30, 2019.

The Bank had a network of 4,882 branches and 15,101 ATMs at June 30, 2019.

Asset quality

Net NPA decreased by 51% from `24,170 crore (US $3.5 billion) at June 30, 2018 to `11,857 crore (US $1.7 billion) at June 30, 2019. The net NPA ratio decreased from 4.19% at June 30, 2018 to 1.77% at June 30, 2019. The provision coverage on non-performing loans, excluding cumulative technical write-offs, increased from 54.1% at June 30, 2018 to 74.0% at June 30, 2019. The provision coverage ratio on non-performing loans, including cumulative technical write-offs, was 83.4% at June 30, 2019 compared to 66.1% at June 30, 2018. The gross additions to NPA were ₹2,779 crore (US $403 million) in Q1-2020 compared to `4,036 crore (US $585 million) in Q1-2019 and `3,547 crore (US $514 million) in Q4-2019. Recoveries and upgrades of non-performing loans were `931 crore (US $135 million) in Q1-2020. At June 30, 2019, the fund-based and non-fund based outstanding to borrowers rated BB and below (excluding nonperforming assets) was `15,355 crore (US $2.2 billion) compared to `24,629 crore (US $3.6 billion) at June 30, 2018.

Capital adequacy

The Bank’s total capital adequacy at June 30, 2019 as per Reserve Bank of India’s guidelines on Basel III norms, including profits for the quarter, was 16.19% and Tier-1 capital adequacy was 14.60% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.

Consolidated results

Consolidated profit after tax was `2,514 crore (US $364 million) in Q1-2020 compared to `1,170 crore (US $170 million) in Q4-2019 and `5 crore (US $1 million) in Q1-2019.

Consolidated assets grew by 14% year-on-year to `1,250,472 crore (US $181.2 billion) at June 30, 2019 from `1,098,790 crore (US $159.2 billion) at June 30, 2018.