2010 10 q2 2011 investor presentation

8/2/2019 2010 10 Q2 2011 Investor Presentation

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Performance Review:Q2-2011October 29, 2010


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Certain statements in these slides are forward-looking statements.These statements are based on management's current expectations andare subject to uncertainty and changes in circumstances. Actual resultsmay differ materially from those included in these statements due to avariety of factors. More information about these factors is contained inICICI Bank's filings with the Securities and Exchange Commission.All financial and other information in these slides, other than financialand other information for specific subsidiaries where specificallymentioned, is on an unconsolidated basis for ICICI Bank Limited onlyunless specifically stated to be on a consolidated basis for ICICI BankLimited and its subsidiaries. Please also refer to the statement ofunconsolidated, consolidated and segmental results required by Indianregulations that has, along with these slides, been filed with the stockexchanges in India where ICICI Banks equity shares are listed and w iththe New York Stock Exchange and the US Securities ExchangeCommission, and is available on our website www.icicibank.com.


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Overview


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Q2-2011: Profitability highlights 18.8% increase in standalone profit after tax to ` 12.36bn in Q2-2011 from ` 10.40 bn in Q2-2010 Net interest income up 8.3% year-on-year

Increase in net interest margin to 2.6% in Q2-2011 from2.5% in Q2-2010 Fee income up 14.6% year-on-year Provisions down 40.2% year-on-year to ` 6.41 bn (Q2-2010: ` 10.71 bn; Q1-2011: ` 7.98 bn) Increase in consolidated profit after tax by 21.8% to `

13.95 billion in Q2-2011 compared to ` 11.45 billion inQ2-20101. The merger of erstwhile Bank of Rajasthan (e-BoR)was effective from close of business of August 12,2010. Financials for the quarter include operations

of e-BoR from August 13, 2010.


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Q2-2011: Balance sheet highlights Continued sequential expansion in advances to `1,942.01 bn at September 30, 2010 from ` 1,843.78bn at June 30, 2010 Continued growth in CASA deposits to ` 981.05 bn atSeptember 30, 2010 from ` 729.30 bn at September30, 2009

Increase in CASA ratio to 44.0% at September 30,2010 Average CASA ratio at 39.2% in Q2-2011

1. All numbers for September 30, 2010 are including e-BoR2. At Aug 12, 2010, e-BoR had advances: ` 65.28 bn;

deposits: ` 134.83 bn; CASA deposits: ` 46.80 bn


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Q2-2011: Balance Sheet highlights Net NPA ratio decreased to 1.37% at September 30,2010 (June 30, 2010: 1.62%; September 30, 2009:2.19%) Provisioning coverage ratio increased to 69.0% atSeptember 30, 2010 (June 30, 2010: 64.8%;September 30, 2009: 51.7%) Strong capital adequacy ratio of 20.2% and Tier-1capital adequacy of 13.8%

1. At Aug 12, 2010, e-BoR had networth: ` 3.56 bn;gross NPA: ` 4.11 bn; net NPA: ` 1.07 bn


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Merger of Bank of Rajasthan At August 12, 2010 BoR had total assets of ` 155.96 bn,

advances of ` 65.28 bn and deposits of ` 134.83 bn (includingCASA deposits ` 46.80 bn)

Networth at August 12, 2010 was ` 3.56 bn compared to `9.37 bn at March 31, 2010 reflecting primarily provisions foremployee benefits, move to 70% provision cover on NPAs anddeferred tax asset reversal in e-BoR books prior to merger

Fair valuation adjustment of ` 2.70 bn through reserves onmerger, primarily due to impact of alignment to ICICI Bank payscale on gratuity liability and mark-to-market on HTMinvestment portfolio

Accounts merged from August 13, 2010


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Unconsolidated financials


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Profit & loss statement

-9.2%44.0022.1221.8849.6424.3597.32Operating profit

-23.9%.57.35.22.98.46.42ease depreciation

-0.401.44.040.11.971.81Treasury income

0.7129.25

74.53

2.9530.0332.5841.95H1-

2011

0.2113.58

38.60

1.4013.8718.2420.36Q2-

2010

0.4828.25

79.35

1.9727.0639.1440.21H1-

2010

0.3515.00

37.82

1.3215.9015.7822.04Q2-

2011

1.2555.93

155.92

6.4756.5074.7881.14FY

2010

0.3614.25

36.71

1.6314.1316.8019.91Q1-

2011

-2.0%Total income

66.7%10.5%

-5.7%14.6%

-13.5%8.3%

Q2-o-Q2

growth

DMA expensesOperating expenses

- Other income- Fee incomeNon-interest incomeNII

(` billion)


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Profit & loss statement

40.25

13.2053.45

43.8797.32

FY

2010

10.40

3.2413.64

10.7124.35

Q2-

2010

19.18

6.5125.69

23.9549.64

H1-

2010

(9.2)%44.0022.1221.88Operating profit

12.36

3.3515.71

6.41

Q2-

2011

22.62

6.9929.61

14.39

H1-

2011

(40.2)%.98rovisions

10.26

3.6413.90

Q1-

2011

18.8%

3.4%15.2%

Q2-o-Q2

growth

Profit before tax

Profit after tax

Tax

(` billion)


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Balance sheet: Assets

(10.5)%96.8202.2078.34SLR investments0.8%22.0022.0021.00

- Equity investment insubsidiaries

3,663.74

262.821,908.60

1,199.65292.67

September

30, 2009

13.6%,362.75,275.71nvestments

3,639.97

216.031,843.78

304.45June 30,

2010

3,899.98

246.741,942.01

348.48September

30, 2010

6.4%

(6.1)%1.8%

19.1%Y-o-Y

growth

Total assets

Fixed & other assetsAdvances

Cash & bank balances

(` billion)

Investment in security receipts of asset reconstruction companiesat September 30, 2010 was ` 30.95 bn Credit derivative exposure (including off balance sheet exposure)of ` 45.06 bn at September 30, 2010 (underlying comprises Indiancorporate credits)Including impact of exchange rate movement


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SME4%

Rural7%

Retailbusiness

group40%

Overseasbranches

25%

Domesticcorporate

24%

Composition of total loan book

Total loan book: ` 1,942 bnTotal loan book: ` 1,844 bn

1. Retail business group includes builder loans and dealer

funding

S M E4 %

R u r a l9 %

R e ta i lb u s i n e s s

g r o u p4 1 %

O v e r s e a sb r a n c h e s2 6 %

D o m e s t i cc o r p o r a t e

2 0 %

At June 30, 2010 At September 30, 2010

1 1


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Composition of retail loan book

Total retail loan book: ` 781 bnTotal retail loan book: ` 763 bn1. June 30, 2010 :Vehicle loans includes auto loans 10%

and commercial business 16%

2. September 30, 2010 :Vehicle loans includes auto loans

9% and commercial business 15%


V e h i c l el o a n s2 6 % H o m e6 2 %

P e r s o n a ll o a n s

5 %O t h e r

s e c u r e d2 %

C r e d i tc a r d s

5 %

Vehicleloans24% Home

65%

Personalloans

4%thersecured3%

Creditcards

4%

1 2


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Equity investment in subsidiaries

121.00

0.140.050.610.871.583.00

10.9611.1223.2533.5035.93

September

30, 2009

122.00

0.140.050.611.871.583.00

10.9611.1223.2533.5035.93

June 30,

2010

11.12CICI Home Finance23.25CICI Bank UK

0.61CICI AMC

33.50CICI Bank Canada

3.00CICI Bank Eurasia LLC10.96CICI Lombard General Insurance

1.58CICI Securities Primary Dealership

0.14thers122.00

0.05

1.87

35.93September

30, 2010

Total

ICICI Venture Funds Mgmt

ICICI Securities Limited

ICICI Prudential Life Insurance

(` billion)


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Balance sheet: Liabilities

28.2%32.4865.4693.18Savings47.6%48.5780.7236.12Current

3,663.74

171.611,001.23

1,978.32501.4411.14

512.58September

30, 2009

3,639.97

152.64949.97

2,009.13517.07

11.16528.23

June 30,

2010

3,899.98

159.19970.10

2,230.94528.2411.51

539.75September

30, 2010

6.4%

(7.2)%(3.1)%

12.8%5.3%3.3%5.3%

Y-o-Y

growth

Borrowings1

Total liabilities

Other liabilities

Deposits- Reserves- Equity capital

Net worth

(` billion)

Credit/deposit ratio of 68% on the domestic balance sheet atSeptember 30, 2010Including impact of exchange rate movement

1. Borrowings include preference shares amounting to ` 3.50 billion


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Composition of borrowings

1,001.23487.8216.28

504.10234.42262.71497.13

September

30, 2009

488.5999.27verseas147.9134.22Other borrowings 333.6016.48Capital instruments

1

970.10473.37

15.22

481.51September

30, 2010

949.97483.5515.72

450.70June 30,

2010

Total borrowings- Other borrowings- Capital instruments

Domestic

Capital instruments contribute 69% of domestic borrowings1. Includes preference share capital ` 3.50 bn

(` billion)


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Capital adequacy (Basel II)

736.0284.4539.11Off balance sheet2,430.78,335.93,501.21On balance sheet

3,020.37187.22422.97610.19` bn

June 30, 2010

6.2%14.0%20.2%%

6.4%13.8%20.2%%

3,166.80204.02436.55640.57` bn

September 30,

2010

3,240.32141.67431.42573.09` bn

September 30,

2009

4.4%13.3%17.7%%

Risk weighted assets- Tier II- Tier I

Total Capital

Basel II


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Key ratios

9.70.7.6.1.5.6eturn on average net worth1,2(Consolidated basis)

1.6.6.6.6.5.6ost to average assets (incl.DMA)236.9%

36.734.52.4460

34.41.0

7.5H1-

2010

42.1%

40.038.7

2.5474

36.91.2

7.9Q1-

2011

1.2.3.2.1eturn on average assets2

44.0%4.0%6.9%1.7%ASA ratio

36.136.4

2.5460

37.1

8.1Q2-

2010

41.042.4

2.6470

43.3

9.2Q2-

2011

40.540.62.6470

40.2

8.5H1-

2011

36.6ee to income37.0

2.5463

36.1

7.9FY

2010

Book value (`)

Cost to income (incl. DMA)

Net interest margin2

Weighted avg EPS (`)2

Return on average net worth1, 2(Percent)

1. Based on quarterly average net worth2. Annualised for all interim periods


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Asset quality and provisioning

Gross retail NPLs at ` 67.99 bn and net retail NPLs at ` 17.12bn at September 30, 2010

Net restructured loans of ` 25.78 bn at September 30, 2010 Outstanding general provision on standard assets: ` 14.80 bnat September 30, 2010 Provisioning coverage ratio of 69.0% at September 30, 2010computed in accordance with RBI guidelines

(` billion)

1.62%35.1464.6399.77

June 30

2010

2.19%45.5849.1394.71

September

30, 2009

1.37%31.9270.41

102.33September

30, 2010

Net NPA ratioNet NPAsLess: Cumulative provisionsGross NPAs


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Overseas subsidiaries


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L o a n s &a d v a n c e s5 5 %

A s s e t b a c k e ds e c u r i t i e s

2 %

O t h e r a s s e t s &i n v e s t m e n t s

6 %

I n d i a l i n k e di n v e s t m e n t s

4 %

C a s h & l i q u i ds e c u r i t i e s

1 5 %B o n d s / no t e s o f

f i n a n c i a li n s t i t u t i o n s

1 8 %`

Bonds/notesof financialinstitutions

18%

Cash & l i quidsecurities

12%

India l i nkedinvestments

5%

Other assets &investments

6%sset backedsecurities

2%

Loans &advances

57%

`

ICICI Bank UK asset profile

1. Includes cash & advances to banks, T Bills and CDs2. Includes India-linked credit derivatives of US$ 121 mn atSeptember 30, 2010 (US$ 138 mn at June 30, 2010)3. Includes securities reclassified to loans & advances4. Does not include US$ 137 mn of ABS reclassifiedas loans & receivable in FY2009

Total assets: USD 7.2 bn

1

23

4


1

23

4

Total assets: USD 6.9 bn


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L o n g t e rm D e b t1 0 %

N e t w o r th9 %

T e r m d e p o s i ts5 1 %

O t h e rl i a b i l i t i e s

6 %

S y n d i c a t e dl o a n s &

i n t e r b a n kb o r r o w i n g s

8 %D e m a n dd e p o s i t s

1 6 %Long term

Debt10 %

Net worth9%

Term deposits46%

Other liabilit ies5%

Syndicatedloans &

interbankborrowings

11%

Demanddeposits

19%`

ICICI Bank UK liability profile

Total liabilities: USD 7.2 billion


Total liabilities: USD 6.9 billion Profit after tax of USD 8.4 million in Q2-2011 Capital adequacy ratio at 18.3% Net MTM writeback of USD 4.1 million (post-tax) in reserves inQ2-2011 Proportion of retail term deposits in total deposits at 75% at

September 30, 2010


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Cash & liquidsecurit ies

16%

Federallyinsured

mortgage4%


7%Asset backed

securities2%

India linkedinvestments

3%

Loans tocustomers

68%

`

ICICI Bank Canada asset profile

1. Includes cash & advances to banks and governmentsecurities2. Includes India-linked credit derivatives of CAD 88 mn atSeptember 30, 2010 (CAD 104 mn at June 30, 2010)

Total assets: CAD 5.0 bn

2

1


Total assets: CAD 5.2 bn

C a s h & l i q u i ds e c u r i t i e s

1 3 %

F e d e r a l l yi n s u r e d

m o r t g a g e7 %

O t h e r a s s e t s& in v e s t m e n t s

7 %A s s e t b ac k e d

s e c u r i t i e s2 %

I n d i a li n k e di n v e s t m e n t s

3 %

L o a n s t oc u s t o m e r s

6 8 %

`

2

1


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ICICI Bank Canada liability profile

Total liabilities: CAD 5.0 billion

B o r r o w i n g s1 %

N e t w o r t h1 9 %

D e m a n dd e p o s i t s

1 5 %

O t he r l i a b i l i t i e s3 % T e r m d e p o s its

6 2 %

Profit after tax of CAD 7.6 million in Q2-2011 Capital adequacy ratio at 22.9%


Total liabilities: CAD 5.2 billion

Borrowings1%

Net worth19%

Demanddeposits

15 %

Otherl iab i l i t ies

3% Term depo sits62%


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2%

Retail loans18%

Promissorynotes

1%

Cash & cashequivalents

37%

Corporatebonds

4%

Loans tocorporates &

banks38%

Other assets &investments3%

Corporatebonds3%

Promissorynotes10%

Cash & cashequivalents18%

Retail loans22%

Loans tocorporates &banks44%

ICICI Bank Eurasia asset profile

Total assets: USD 274 mn

1. Includes cash & call placements with banks,balances with central bank and nostro balances

Total borrowings of USD 168 million at September 30, 2010 Capital adequacy of 37.7% at September 30, 2010

1


Total assets: USD 353 mn

1


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Domestic subsidiaries


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ICICI Life

654.8400.93ssets Under Management0.151(0.69)tatutory profit/ (loss)

18.9%9.2%BP margin2.54.33ew Business Profit (NBP)

22.643.11enewal premium13.442.12nnualised premium equivalent (APE)

8.0%0.8%xpense ratio2

38.736.33otal premium

Q2-2011Q2-2010

(` billion)

Continued market leadership in private sector31. For Q2-2011, there was a surplus of ` 2.54 billion in the non-participating policyholders funds. Thesurplus in the non-participating funds would be available to be transferred to the shareholders account atthe end of the financial year based on the appointed actuarys recommendation. Including this surplus,the net profit after tax for the Q2-2011 would have been ` 2.69 billion2. Expense ratio: All expenses (excl. commission and front line sales cost) / (Total premium 90% of SinglePremium)3. During April 2010 September 2010 on new business retail weighted received premium basis


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ICICI General

Continued market leadership in private sector2

1. Excluding remittances from third party motorpool and including premium on reinsuranceaccepted2. For the period April 2010 - September 2010

1.04.51AT10.91.01ross premium1

Q2-2011Q2-2010(` billion)


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Other subsidiaries0.54.28CICI Home Finance

0.480.14

-0.38

Q2-2010

0.14CICI Prudential Asset ManagementCompany

0.29CICI Securities Ltd.

0.22(0.02)

Q2-2011Profit after tax

ICICI VentureICICI Securities PD

Consolidated profit after tax increased by 21.8% to ` 13.95billion in Q2-2011 compared to ` 11.45 billion in Q2-2010 If the surplus of ` 2.54 bn in the non-participatingpolicyholders funds of ICICI Life were transferred in Q2-2011, the Bank's consolidated profit after tax for Q2-2011would have been ` 15.83 billion

(` billion)


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Thank you

2010 10 q2 2011 investor presentation

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