ICICI bank Q4 net profit down by 5% at INR 969 crore

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ICICI Bank reported a drop of 5% in its fourth quarter net profit to INR 969 crore in comparison to INR 1,020 crore net profit for the same period in the last year. 

Performance Review: Quarter ended March 31, 2019

Core operating profit (profit before provisions and tax,
excluding treasury income) grew by 26% year-on-year to INR 6,077 crore (US$ 879 million) in the quarter ended March 31, 2019 (Q4-2019)

  • Net interest margin at 3.72% in Q4-2019
  • Fee income grew by 15% year-on-year in Q4-2019

Core operating profit grew by 17% year-on-year to INR 22,072 crore (US$ 3.2 billion) in the year ended March 31, 2019 (FY2019)

Domestic loan growth at 17% year-on-year at March 31, 2019 driven by retail

  •  Retail loans grew by 22% year-on-year and constituted 60% of the loan portfolio at March 31, 2019

16% year-on-year growth in total deposits at March 31, 2019

  • 12% year-on-year growth in current and savings account (CASA) deposits; period-end CASA ratio at 49.6% at March 31, 2019

Net NPA ratio decreased from 2.58% at December 31, 2018 to 2.06% at March 31, 2019 – the lowest in the last 13 quarters

  • Net NPAs decreased by over 50% year-on-year to ` 13,577 crore (US$ 2.0 billion) at March 31, 2019
  • Provision coverage ratio (including technical/prudential write-offs) increased from 60.5% at March 31, 2018 to 80.7% at March 31, 2019, further strengthening the balance sheet
  • Gross NPA additions in FY2019 were ` 11,039 crore (US$ 1.6 billion) compared to ` 28,730 crore (US$ 4.2 billion) in the year ended March 31, 2018 (FY2018)

Total capital adequacy ratio of 16.89% and Tier-1 capital
adequacy ratio of 15.09% on standalone basis at March 31, 2019

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai today, approved the standalone and consolidated audited accounts of the Bank for the quarter ended March 31, 2019

Profit & loss account

The strong operating performance in FY2019 was driven by robust deposit growth, healthy growth in the loan portfolio, expansion in net interest margin and improvement in fee income growth

  • The core operating profit (profit before provisions and tax, excluding treasury income) increased by 17% year-on-year to INR 22,072 crore (US$ 3.2 billion) in FY2019 from INR 18,940 crore (US$ 2.7 billion) in FY2018.
  • Net interest income (NII) increased by 27% year-on-year to INR 7,620 crore (US$ 1.1 billion) in Q4-2019 from INR 6,022 crore (US$ 871 million) in the quarter ended March 31, 2018 (Q4-2018). NII in Q4-2019 includes INR 414 crore (US$ 60 million) of interest on income tax refund.
  • The net interest margin was 3.72% in Q4-2019 compared to 3.40% in the quarter ended December 31, 2018 (Q3-2019). The impact of interest on income tax refund and interest collection from NPLs on net interest margin was about 25 basis points in Q4-2019 compared to about 18 basis points in Q3-2019.
  • Non-interest income, excluding treasury income, was INR 3,465 crore (US$ 501 million) in Q4-2019 compared to INR 2,993 crore (US$ 433 million) in Q4-2018.
  • Fee income grew by 15% year-on-year to ₹ 3,178 crore (US $ 460 million) in Q4-2019 from ₹ 2,755 crore (US$ 398 million) in Q4-2018. Retail fees constituted 74% of total fees.
  • The core operating profit (profit before provisions and tax, excluding treasury income) increased by 26% year-on-year to INR 6,077 crore (US$ 879 million) in Q4-2019 from INR 4,829 crore (US$ 698 million) in Q4-2018.
  • Treasury income was INR 156 crore (US$ 23 million) in Q4-2019 compared to INR 2,685 crore (US$ 388 million) in Q4-2018. Treasury income in Q4-
    2018 was substantially higher due to gain of INR 3,320 crore (US$ 480 million) on sale of shareholding in ICICI Securities.
  • Provisions were INR 5,451 crore (US$ 788 million) in Q4-2019 compared to INR 6,626 crore (US$ 958 million) in Q4-2018.
  • The standalone profit after tax was INR 969 crore (US$ 140 million) in Q4- 2019 compared to INR 1,020 crore (US$ 147 million) in Q4-2018.
  • Consolidated profit after tax was INR 1,170 crore (US$ 169 million) in Q4- 2019 compared to INR 1,142 crore (US$ 165 million) in Q4-2018.
  • The standalone profit after tax was INR 3,363 crore (US$ 486 million) in FY2019 compared to INR 6,777 crore (US$ 980 million) in FY2018. The profit after tax in FY2018 included gains of INR 5,332 crore (US$ 771 million) from sale of shareholding in subsidiaries compared to INR 1,110 crore (US$ 161 million) in FY2019.

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