EX-99.04 7 aug0202_ex9904.txt [GRAPHIC] ICICI Bank Performance Review: Q1:FY2003 July 31, 2002 Highlights ICICI Bank o Profit after tax Rs. 2.53 billion despite full impact of merger transition costs and increase in general provision against standard assets o Return on assets at 1% and return on networth at 15.9% o Diversifying asset mix with increasing proportion of retail assets o Retail assets constitute 10% of total assets o Shift towards low-cost liability profile o Deposits constitute 36% of liabilities [GRAPHIC] ICICI Bank 2 Agenda Financial Performance Operational Focus Capital & Shareholding [GRAPHIC] ICICI Bank 3 Profit & loss statement ICICI Bank (Rs. in billion) ------------------------------------------------------------------------- Q1- Q1- FY02 FY03 FY02(1) ------------------------------------------------------------------------- Interest income 4.68 23.96 21.52 ------------------------------------------------------------------------- Interest expense 3.18 20.60 15.59 ------------------------------------------------------------------------- Net interest income 1.50 3.36 5.93 ------------------------------------------------------------------------- Non-interest income 1.27 4.38 5.75 ------------------------------------------------------------------------- - Fee income 0.61 1.95 2.83 ------------------------------------------------------------------------- - Treasury income 0.66 0.75 2.92 ------------------------------------------------------------------------- - Lease income - 1.38 - ------------------------------------------------------------------------- - Others - 0.30 - ------------------------------------------------------------------------- Total income 2.77 7.74 11.68 ------------------------------------------------------------------------- 1. Includes operations of ICICI and two subsidiaries from the Appointed Date i.e., Mar 30, 2002. 2. Results for Q1-FY03 are not comparable to results of standalone ICICI Bank for Q1-FY02. [GRAPHIC] ICICI Bank 4 Profit & loss statement ICICI Bank (Rs. in billion) ------------------------------------------------------------------------- Q1- Q1- FY02 FY03 FY02(1) ------------------------------------------------------------------------- Total income 2.77 7.74 11.68 ------------------------------------------------------------------------- Operating expenses 1.38 3.64 6.23 ------------------------------------------------------------------------- Lease depreciation - 0.79 - ------------------------------------------------------------------------- Operating profit 1.39 3.31 5.45 ------------------------------------------------------------------------- Provisions 0.46 0.49 2.55 ------------------------------------------------------------------------- Profit before tax 0.93 2.82 2.90 ------------------------------------------------------------------------- Tax 0.28 0.29 0.32 ------------------------------------------------------------------------- Profit after tax 0.65 2.53 2.58 ------------------------------------------------------------------------- 1. Includes operations of ICICI and two subsidiaries from the Appointed Date i.e., Mar 30, 2002. 2. Results for Q1-FY03 are not comparable to results of standalone ICICI Bank for Q1-FY02. [GRAPHIC] ICICI Bank 5 Conservative general provisioning policy ICICI Bank o Higher general provisions against standard assets o 2.0% on dealer funding, credit cards, personal loans & consumer durables o 0.5% on home loans o 1.0% on all other wholesale and retail assets o Excluding ICICI's corporate and project assets fair valued for the merger o Total general provision against standard assets of Rs. 0.84 billion for the quarter [GRAPHIC] ICICI Bank 6 Balance sheet: Assets ICICI Bank (Rs. in billion) ---------------------------------------------------------------------------- March 31, June 30, 2002 2002 ---------------------------------------------------------------------------- Cash, balances with banks & SLR 355.78 323.92 ---------------------------------------------------------------------------- - Cash & balances 127.86 78.88 with RBI & banks ---------------------------------------------------------------------------- - SLR investments 227.92 245.04 ---------------------------------------------------------------------------- Advances 470.35 469.87 ---------------------------------------------------------------------------- Debentures & bonds 64.36 59.69 ---------------------------------------------------------------------------- Other investments 66.63 50.74 ---------------------------------------------------------------------------- Fixed assets 42.39 41.92 ---------------------------------------------------------------------------- Other assets 41.55 50.56 ---------------------------------------------------------------------------- Total assets 1,041.06 996.70 ---------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 7 Balance sheet: Liabilities ICICI Bank (Rs. in billion) ---------------------------------------------------------------------------- March 31, June 30, 2002 2002 ---------------------------------------------------------------------------- Net worth 62.45 64.98 ---------------------------------------------------------------------------- - Equity capital 6.13 6.13 ---------------------------------------------------------------------------- - Reserves 56.32 58.85 ---------------------------------------------------------------------------- Preference capital 3.50 3.50 ---------------------------------------------------------------------------- Deposits 320.85 333.49 ---------------------------------------------------------------------------- Borrowings 589.70 533.92 ---------------------------------------------------------------------------- Of which: Subordinated debt 97.51 97.70 ---------------------------------------------------------------------------- Other liabilities 64.56 60.81 ---------------------------------------------------------------------------- Total liabilities 1,041.06 996.70 ---------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 8 Spreads ICICI Bank (Per cent) ---------------------------------------------------------------------------- Q1- Q1- FY02 FY02 FY03 ---------------------------------------------------------------------------- Yield on interest-earning assets (1) 10.4 10.4 9.7 ---------------------------------------------------------------------------- Cost of funds (2) 7.6 9.2 7.5 ---------------------------------------------------------------------------- - Cost of deposits 7.5 7.4 7.3 ---------------------------------------------------------------------------- Spread (1) - (2) 2.8 1.2 2.2 ---------------------------------------------------------------------------- Net interest margin 3.3 1.4 2.7 ---------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 9 Key ratios ICICI Bank (Per cent) ---------------------------------------------------------------------------- Q1- Q1- FY02 FY02 FY03 ---------------------------------------------------------------------------- Return on assets 1.4 1.0 1.1 ---------------------------------------------------------------------------- Return on net worth 19.4 15.9 17.6 ---------------------------------------------------------------------------- EPS (Rs.) 11.8 16.5 11.6 ---------------------------------------------------------------------------- Cost to income 49.9 47.0 53.3 ---------------------------------------------------------------------------- Cost to average assets 2.9 1.4 2.7 ---------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 10 Consolidated profits ICICI Bank (Rs. in billion) --------------------------------------------------------------------------- Q1-FY02 Q1-FY03 --------------------------------------------------------------------------- ICICI Bank standalone profit 0.65 2.53 --------------------------------------------------------------------------- Add: --------------------------------------------------------------------------- - ICICI Securities - 0.18 --------------------------------------------------------------------------- - ICICI Prudential Life - (0.25) --------------------------------------------------------------------------- - Others - 0.04 --------------------------------------------------------------------------- Less: --------------------------------------------------------------------------- - Dividend received from - 0.17 subsidiaries and affiliates --------------------------------------------------------------------------- ICICI Bank consolidated profit 0.65 2.33 --------------------------------------------------------------------------- Indian GAAP [GRAPHIC] ICICI Bank 11 Segment-wise results ICICI Bank (Rs. in billion) -------------------------------------------------------------------------------- Revenue P B T Net assets(1) -------------------------------------------------------------------------------- Commercial banking 22.87 1.97 (142.85) -------------------------------------------------------------------------------- Investment banking 8.54 1.04 101.89 -------------------------------------------------------------------------------- Others 1.46 (0.25) 32.54 -------------------------------------------------------------------------------- Inter-segment adj./ unallocated (2.94) - 8.43 -------------------------------------------------------------------------------- Total 29.93 2.76 - -------------------------------------------------------------------------------- 1. Segment assets less segment liabilities. Indian GAAP [GRAPHIC] ICICI Bank 12 Performance of subsidiaries Key subsidiaries (Rs. in million) ---------------------------------------------------------------------------- PAT ---------------------------------------------------------------------------- Q1-FY02 Q1-FY03 ---------------------------------------------------------------------------- ICICI Securities(1) 411 177 ---------------------------------------------------------------------------- ICICI Venture 10 32 ---------------------------------------------------------------------------- ICICI Prudential (33) (335) ---------------------------------------------------------------------------- ICICI Lombard (18.6) (9.5) ---------------------------------------------------------------------------- ICICI Home 6 14 ---------------------------------------------------------------------------- (1) Consolidated [GRAPHIC] ICICI Bank 13 Classification of loan assets ICICI Bank (Rs. in billion) -------------------------------------------------------------------------------- March 31, June 30, 2002 2002 -------------------------------------------------------------------------------- Amt. % Amt. % -------------------------------------------------------------------------------- Loss - - -------------------------------------------------------------------------------- Doubtful 21.80 22.00 -------------------------------------------------------------------------------- Sub-standard 12.57 12.91 -------------------------------------------------------------------------------- Less: additional 7.16 6.25 provision against non- performing loans -------------------------------------------------------------------------------- Net non-performing loans 27.21 4.7 28.66 4.9 -------------------------------------------------------------------------------- Standard 548.05 95.3 551.03 95.1 -------------------------------------------------------------------------------- - incl. restructured 46.98 8.2 50.36 8.7 -------------------------------------------------------------------------------- Total 575.26 100.0 579.69 100.0 -------------------------------------------------------------------------------- Standard assets have not been adjusted for general provisions. [GRAPHIC] ICICI Bank 14 Agenda Financial Performance Operational Focus Capital & Shareholding [GRAPHIC] ICICI Bank 15 Diversification of asset mix... March 2002 [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIALS.] Project finance 23 Corporate finance 24 Retail finance 7 Reserves & cash 34 Investments 6 Other assets 6 Rs. 1,056.88 billion(1) June 2002 [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIALS.] Project finance 23 Corporate finance 23 Retail finance 10 Reserves & cash 32 Investments 5 Other assets 7 Rs. 1,012.21 billion(1) ...in line with strategy of increasing proportion of retail assets and reducing proportion of historical project finance assets (1) Including assets of ICICI Home Finance Company Limited [GRAPHIC] ICICI Bank 16 Strong growth in retail assets... [THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIALS.] (Rs. in billion) March 2001 36.32 March 2002 77.35 June 2002 99.43 Including assets of ICICI Home Finance Company Limited [GRAPHIC] ICICI Bank 17 Shift towards lower cost liability profile... ICICI Bank o About Rs. 70.00 billion of erstwhile ICICI's high cost borrowings repaid during the quarter o Including exercise of all available prepayment options o Deposits now constitute 36% of total liabilities o Strengthening distribution network o ATM network expanded to 1,066 ATMs o Distribution capability being leveraged for third part distribution as well o Total third party distribution of about Rs. 37.00 billion for the quarter [GRAPHIC] ICICI Bank 18 Top 10 industry-wise exposure ICICI Bank (% to total) -------------------------------------------------------------------------------- Industry March 31, June 30, 2002 2002 -------------------------------------------------------------------------------- Retail finance(1) 9.7 12.0 -------------------------------------------------------------------------------- Services 9.1 10.8 -------------------------------------------------------------------------------- Iron & steel 10.9 10.4 -------------------------------------------------------------------------------- Power 10.7 10.0 -------------------------------------------------------------------------------- Textiles 6.2 6.3 -------------------------------------------------------------------------------- Crude petroleum & refining 5.1 5.5 -------------------------------------------------------------------------------- Telecom 5.0 5.1 -------------------------------------------------------------------------------- Engineering 3.5 4.5 -------------------------------------------------------------------------------- Electronics 3.0 3.5 -------------------------------------------------------------------------------- Metal & metal products 2.6 2.7 -------------------------------------------------------------------------------- Total exposure (Rs. bn) 819.90 829.54 -------------------------------------------------------------------------------- (1) Includes ICICI Home Finance portfolio [GRAPHIC] ICICI Bank 19 Agenda Financial Performance Operational Focus Capital & Shareholding [GRAPHIC] ICICI Bank 20 Capital adequacy ICICI Bank ------------------------------------------------------------------------------- FY02 Q1-FY03 ------------------------------------------------------------------------------- Rs. bn % Rs. bn % ------------------------------------------------------------------------------- Total capital 90.12 11.44 94.08 12.36 ------------------------------------------------------------------------------- - Tier I 58.88 7.47 60.94 8.01 ------------------------------------------------------------------------------- - Tier II 31.24 3.97 33.14(1) 4.35 ------------------------------------------------------------------------------- Total risk weighted assets 787.90 - 761.13 - ------------------------------------------------------------------------------- (1) Includes general provisions of Rs. 2.38 billion. [GRAPHIC] ICICI Bank 21 Shareholding pattern [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIALS.] ADR 25.71 FIIs & NRIs 20.14 ICICI Bank Shares Trust 16.54 Insurance companies 15.94 Individuals 9.91 Bodies corporate 5.20 UTI 3.61 Banks, FIs & MFs 2.95 Paid-up capital Rs. 6.13 billion [GRAPHIC] ICICI Bank 22 Thank You [GRAPHIC] ICICI Bank 23 Interest income ICICI Bank (Rs. in billion) ----------------------------------------------------------------------------- Q1- Q1- FY02 FY02 FY03 ----------------------------------------------------------------------------- Interest/discount on advances/bills 1.90 14.68 7.72 ----------------------------------------------------------------------------- Income on investments 2.39 8.05 12.34 ----------------------------------------------------------------------------- Interest on balances with RBI & banks 0.33 1.14 1.22 ----------------------------------------------------------------------------- Others 0.06 0.09 0.24 ----------------------------------------------------------------------------- Total interest income 4.68 23.96 21.52 ----------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 24 Interest expense ICICI Bank (Rs. in billion) ----------------------------------------------------------------------------- Q1- Q1- FY02 FY02 FY03 ----------------------------------------------------------------------------- Interest on deposits 2.91 5.97 13.89 ----------------------------------------------------------------------------- Interest on RBI / inter-bank borrowings 0.08 0.47 0.48 ----------------------------------------------------------------------------- Others (incl. erstwhile ICICI's borrowings) 0.19 14.16 1.22 ----------------------------------------------------------------------------- Total interest expense 3.18 20.60 15.59 ----------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 25 Operating expenses ICICI Bank (Rs. in billion) ----------------------------------------------------------------------------- Q1- Q1- FY02 FY02 FY03 ----------------------------------------------------------------------------- Salary 0.33 0.89 1.47 ----------------------------------------------------------------------------- Rents, taxes & lighting 0.15 0.28 0.66 ----------------------------------------------------------------------------- Printing & stationery 0.08 0.13 0.35 ----------------------------------------------------------------------------- Postage & courier 0.08 0.23 0.38 ----------------------------------------------------------------------------- Repairs & maintenance 0.15 0.40 0.78 ----------------------------------------------------------------------------- Depreciation 0.14 1.21 0.64 ----------------------------------------------------------------------------- Advertising & publicity 0.02 0.03 0.08 ----------------------------------------------------------------------------- Others 0.43 0.47 1.87 ----------------------------------------------------------------------------- Total operating expense 1.38 3.64 6.23 ----------------------------------------------------------------------------- [GRAPHIC] ICICI Bank 26