ICICI Bank Limited Announces Performance Review - Quarter ended Decemb

ICICI Bank Limited Announces Performance Review - Quarter ended December 31, 2004: 28% Year-on-Year Growth in Profit before Tax

    Business Editors

    MUMBAI, India--(BUSINESS WIRE)--Jan. 17, 2005--The Board of Directors of ICICI Bank Limited (NYSE:IBN) at its meeting at Mumbai on January 16-17, 2005, approved the audited Indian GAAP accounts of the Bank for the quarter ended December 31, 2004 (Q3-2005).

    Highlights

--	Net interest income increased 43% to Rs. 733 crore (US$ 169 million) for Q3-2005 from Rs. 513 crore (US$ 118 million) for the quarter ended December 31, 2003 (Q3-2004).
--	Fee income increased 83% to Rs. 558 crore (US$ 128 million) for Q3-2005 from Rs. 305 crore (US$ 70 million) for Q3-2004.
--	Profit before tax increased 28% to Rs. 663 crore (US$ 153 million) for Q3-2005 from Rs. 516 crore (US$ 119 million) for Q3-2004.
--	Profit after tax increased 18% to Rs. 518 crore (US$ 119 million) for Q3-2005 from Rs. 440 crore (US$ 101 million) for Q3-2004.
--	Profit after tax increased 18% to Rs. 1,391 crore (US$ 320 million) for nine-month period ended December 31, 2004 (Apr-Dec 2004) from Rs. 1,182 crore (US$ 272 million) for nine-month period ended December 31, 2003 (Apr-Dec 2003).
--	Retail assets increased 63% to Rs. 46,194 crore (US$ 10.6 billion) at December 31, 2004 from Rs. 28,265 crore (US$ 6.5 billion) at December 31, 2003.

    Operating review

    Credit growth

    The Bank's total advances increased 32% to Rs. 76,092 crore (US$ 17.5 billion) at December 31, 2004 compared to Rs. 57,812 crore (US$ 13.3 billion) at December 31, 2003. The Bank maintained its growth momentum in the retail segment. The Bank's home loan disbursements during Apr-Dec 2004 were Rs. 13,147 crore (US$ 3.0 billion). The Bank strengthened its leadership in the credit card business and had a credit card base of over 3 million cards at December 31, 2004. Retail assets constituted 61% of advances and 54% of customer assets at December 31, 2004. While retail loans have been a major driver of banking sector credit growth, there are indications of a pickup in industrial credit as well. The Bank is focusing on credit origination in both the corporate and retail segments and on growth in non-fund based products. While seeking to fully leverage its origination skills, the Bank also focuses on syndication and securitisation.

    Funding

    Total deposits increased 35% to Rs. 81,928 crore (US$ 18.8 billion) at December 31, 2004 from Rs. 60,872 crore (US$ 14.0 billion) at December 31, 2003. During Apr-Dec 2004, the Bank repaid about Rs. 5,000 crore (US$ 1.1 billion) of erstwhile ICICI's liabilities as they fell due in accordance with their terms of repayment. At December 31, 2004, erstwhile ICICI's liabilities constituted 18% of the Bank's funding compared to 31% at December 31, 2003.

    International operations

    ICICI Bank continued to build on its existing presence in various geographies as well as enter new markets. The Bank opened a representative office in Bangladesh in August 2004 and an offshore branch in Bahrain in October 2004, and has received regulatory approval for establishing a representative office in South Africa. The Board of Directors has approved the establishment of representative offices in Indonesia, Malaysia, Thailand and Kenya, subject to approval from Reserve Bank of India (RBI) and regulators in the respective countries. The Bank's international presence combined with its domestic balance sheet enables it to offer a wider range of credit and trade finance solutions to Indian companies. In addition to providing credit and trade finance solutions to Indian companies, the Bank is expanding its international retail franchise. Total inward remittances by non-resident Indians (NRIs) through the Bank for Apr-Dec 2004 were about Rs. 9,300 crore (US$ 2.1 billion).

    Network

    The Bank had 505 branches and extension counters at December 31, 2004 as compared to 470 branches and extension counters at September 30, 2004. As part of its strategy to expand its reach in rural India, the Bank has a network of over 1,500 internet kiosks as franchisees for distribution of its financial products.

    Capital adequacy

    The Bank's capital adequacy at December 31, 2004 was 13.5% (including Tier-1 capital adequacy of 8.6%), well above RBI's requirement of total capital adequacy of 9.0%.

    Asset quality

    The Bank's net restructured assets at December 31, 2004 were Rs. 6,792 crore (US$ 1.6 billion), down from Rs. 7,410 crore (US$ 1.7 billion) at December 31, 2003. At December 31, 2004, the Bank's net non-performing assets constituted 2.3% of customer assets against 4.7% at December 31, 2003.

    Group companies

    ICICI Lombard General Insurance Company (ICICI Lombard) maintained its leadership position among private sector general insurance companies. ICICI Lombard achieved a profit after tax of Rs. 30 crore (US$ 7 million) in Apr-Dec 2004, compared to profit after tax of Rs. 16 crore (US$ 4 million) in Apr-Dec 2003.
    ICICI Prudential Life Insurance Company (ICICI Prudential Life) continued to maintain its market leadership among private sector life insurance companies. Life insurance companies worldwide require five to seven years to achieve breakeven, in view of business set-up and customer acquisition costs in the initial years as well as reserving for actuarial liability. While the growing operations of ICICI Prudential Life had a negative impact of Rs. 138 crore (US$ 32 million) on the Bank's consolidated profit after tax in Apr-Dec 2004 on account of the above reasons, the company's unaudited New Business Achieved Profit (NBAP) for Apr-Dec 2004 was Rs. 184 crore (US$ 42 million) compared to a full year unaudited NBAP of Rs. 204 crore (US$ 47 million) for FY2004. NBAP represents the present discounted value of future profit streams from new policies written by the company during the year, calculated on the basis of certain assumptions as to mortality and other parameters. Internationally, life insurance companies in the growth phase are valued as a multiple of their NBAP.
    The Bank's consolidated profit after tax for Apr-Dec 2004 was Rs. 1,248 crore (US$ 287 million).

Summary Profit and Loss Statement Rs. crore

Growth over Apr-Dec Apr-Dec Q3-2004 Q3-2005 Q3-2004 2003 2004 FY2004 ---------------------------------------------------------------------- NII 513 733 43% 1,440 2,049 1,987 ---------------------------------------------------------------------- Non-interest income (excl. treasury) 432 691 60% 1,217 1,967 1,751 ---------------------------------------------------------------------- - Fee income 305 558 83% 801 1,513 1,175 ---------------------------------------------------------------------- - Lease income 95 87 (8%) 320 296 422 ---------------------------------------------------------------------- - Others 32 46 44% 96 158 154 ---------------------------------------------------------------------- Treasury income 381 199 (48%) 1,102 415 1,314 ---------------------------------------------------------------------- Less: ---------------------------------------------------------------------- Operating expense 510 644 26% 1.469 1,795 1,999 ---------------------------------------------------------------------- Other DMA expense 73 138 89% 200 334 293 ---------------------------------------------------------------------- Lease depreciation 62 71 14% 211 224 279 ---------------------------------------------------------------------- Provisions 165 108 (35%) 529 349 579 ---------------------------------------------------------------------- Profit before tax 516 663 28% 1,350 1,729 1,902 ---------------------------------------------------------------------- Less: Tax 76 145 91% 168 339 265 ---------------------------------------------------------------------- Profit after tax 440 518 18% 1,182 1,391 1,637 ----------------------------------------------------------------------

    The information contained in this release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus and will contain detailed information about ICICI Bank Limited and its management, as well as financial statements. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. ICICI Bank Limited intends to register for sale in the United States an offering of its securities. Except for the historical information contained herein, statements in this Release which contain words or phrases such as 'will', 'would', 'indicating', 'expected to' etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

    1 crore = 10.0 million
    US$ amounts represent convenience translations at US$1= Rs.43.46.

AUDITED FINANCIAL RESULTS (Rs. in crore)

Quarter ended --------------------------- Sr. Particulars December 31, December 31, No. 2004 2003 ---------------------------------------------------------------------- 1. Interest earned (a)+(b)+(c)+(d) 2,378.36 2,219.91 ---------------------- ------------- ------------- a) Interest/discount on advances/bills 1,709.91 1,466.40 ---------------------- ------------- ------------- b) Income on investments 589.42 651.90 ---------------------- ------------- ------------- c) Interest on balances with Reserve Bank of India and other interbank funds 46.70 36.29 ---------------------- ------------- ------------- d) Others 32.33 65.32 ---------------------------------------------------------------------- 2. Other income 890.73 813.03 ---------------------- ------------- ------------- A) TOTAL INCOME (1)+(2) 3,269.09 3,032.94 ---------------------------------------------------------------------- 3. Interest expended 1,645.21 1,706.67 ---------------------------------------------------------------------- 4. Operating expenses (e)+(f)+(g) 852.66 645.35 ---------------------- ------------- ------------- e) Payments to and provisions for employees 184.62 144.64 ---------------------- ------------- ------------- f) Direct marketing agency expenses 138.00 72.90 ---------------------- ------------- ------------- g) Other operating expenses 530.04 427.81 ---------------------- ------------- ------------- B) TOTAL EXPENDITURE (3)+(4) (excluding provisions and contingencies) 2,497.87 2,352.02 ---------------------------------------------------------------------- 5. OPERATING PROFIT (A-B) (Profit before provisions and contingencies) 771.22 680.92 ---------------------------------------------------------------------- 6. Other provisions and contingencies 108.23 165.22 ---------------------------------------------------------------------- 7. Provision for taxes ---------------------- a) Current period tax (50.56) 96.47 ---------------------- ------------- ------------- b) Deferred tax adjustment 195.87 (20.87) ---------------------------------------------------------------------- 8. Net profit (5-6-7) 517.68 440.10 ---------------------------------------------------------------------- 9. Paid-up equity share capital (face value Rs. 10/-) 735.89 615.28 ---------------------------------------------------------------------- 10. Reserves excluding revaluation reserves 11,899.26 7,534.74 ---------------------------------------------------------------------- 11. Analytical ratios ---------------------- (i) Percentage of shares held by Government of India -- -- ---------------------- ------------- ------------- (ii) Capital adequacy ratio 13.50% 11.32% ---------------------- ------------- ------------- (iii) Earnings per share for the period (not annualised for quarter/ period) (in Rs.) (basic) 7.04 7.16 ---------------------- ------------- ------------- (iv) Earnings per share for the period (not annualised for quarter/period) (in Rs.) (diluted) 6.99 7.10 ---------------------------------------------------------------------- 12. Aggregate of non- promoter shareholding ---------------------- -- No. of shares 73,59,28,149 61,52,27,617 ---------------------- ------------- ------------- -- Percentage of shareholding 100 100 ---------------------------------------------------------------------- 13. Deposits 81,928.28 60,871.84 ---------------------------------------------------------------------- 14. Advances 76,092.46 57,812.11 ---------------------------------------------------------------------- 15. Total assets 1,46,214.18 1,16,857.21 ----------------------------------------------------------------------

Nine month period ended --------------------------- Year ended Sr. Particulars December 31, December 31, March 31, No. 2004 2003 2004 ---------------------------------------------------------------------- Interest earned 1. (a)+(b)+(c)+(d) 6,804.66 6,725.32 9,002.39 ---------------------- ------------- ------------- ------------- a) Interest/discount on advances/bills 4,867.73 4,513.13 6,073.85 ---------------------- ------------- ------------- ------------- b) Income on investments 1,637.10 1,972.04 2,540.09 ---------------------- ------------- ------------- ------------- c) Interest on balances with Reserve Bank of India and other interbank funds 166.15 121.96 210.64 ---------------------- ------------- ------------- ------------- d) Others 133.68 118.19 177.81 ---------------------------------------------------------------------- 2. Other income 2,383.84 2,319.05 3,064.92 ---------------------- ------------- ------------- ------------- A) TOTAL INCOME (1)+(2) 9,188.50 9,044.37 12,067.31 ---------------------------------------------------------------------- 3. Interest expended 4,755.75 5,285.20 7,015.25 ---------------------------------------------------------------------- 4. Operating expenses (e)+(f)+(g) 2,353.92 1,880.62 2,571.23 ---------------------- ------------- ------------- ------------- e) Payments to and provisions for employees 531.50 388.89 546.06 ---------------------- ------------- ------------- ------------- f) Direct marketing agency expenses 334.71 200.30 293.70 ---- ---------------------- ------------- ------------- ------------- g) Other operating expenses 1,487.71 1,291.43 1,731.47 ---- ---------------------- ------------- ------------- ------------- B) TOTAL EXPENDITURE (3)+(4) (excluding provisions and contingencies) 7,109.67 7,165.82 9,586.48 ---------------------------------------------------------------------- 5. OPERATING PROFIT (A-B) (Profit before provisions and contingencies) 2,078.83 1,878.55 2,480.83 ---------------------------------------------------------------------- 6. Other provisions and contingencies 348.77 529.31 578.62 ---------------------------------------------------------------------- 7. Provision for taxes ---------------------- a) Current period tax 216.41 215.31 271.99 ---------------------- ------------- ------------- ------------- b) Deferred tax adjustment 123.15 (47.77) (6.88) ---------------------------------------------------------------------- 8. Net profit (5-6-7) 1,390.50 1,181.70 1,637.10 ---------------------------------------------------------------------- 9. Paid-up equity share capital (face value Rs. 10/-) 735.89 615.28 616.40 ---------------------------------------------------------------------- 10. Reserves excluding revaluation reserves 11,899.26 7,534.74 7,394.16 ---------------------------------------------------------------------- 11. Analytical ratios ---------------------- (i) Percentage of shares held by Government of India -- -- -- ---------------------- ------------- ------------- ------------- (ii) Capital adequacy ratio 13.50% 11.32% 10.36% ---------------------- ------------- ------------- ------------- (iii) Earnings per share for the period (not annualised for quarter/ period) (in Rs.) (basic) 19.18 19.26 26.66 ---------------------- ------------- ------------- ------------- (iv) Earnings per share for the period (not annualised for quarter/period) (in Rs.) (diluted) 19.03 19.10 26.44 ---------------------------------------------------------------------- 12. Aggregate of non- promoter shareholding ---------------------- -- No. of shares 73,59,28,149 61,52,27,617 61,63,91,905 ---------------------- ------------- ------------- ------------- -- Percentage of shareholding 100 100 100 ---------------------------------------------------------------------- 13. Deposits 81,928.28 60,871.84 68,108.58 ---------------------------------------------------------------------- 14. Advances 76,092.46 57,812.11 62,095.52 ---------------------------------------------------------------------- 15. Total assets 1,46,214.18 1,16,857.21 1,25,228.87 ----------------------------------------------------------------------

Notes ----- 1. The financials have been prepared in accordance with Accounting Standard ("AS") 25 on "Interim Financial Reporting".

2. During the quarter ended December 31, 2004, the Bank allotted 11,99,470 equity shares pursuant to exercise of employee stock options.

3. The Bank enters into rupee derivative transactions as part of its trading operations. Given the growing derivatives market and the Bank's increasing volumes in this activity, effective April 1, 2004, the Bank recognises the mark-to-market impact of this portfolio (net of provisions) in its profit and loss account. This had a positive impact of Rs. 7.14 crore on the profit after tax for the quarter ended December 31, 2004 (Rs. 40.36 crore for the nine months ended December 31, 2004)

4. During the quarter ended December 31, 2004, the Bank transferred Statutory Liquidity Ratio (SLR) investments amounting to Rs. 21,348.94 crore from the Available For Sale (AFS) category to the Held To Maturity (HTM) category pursuant to Reserve Bank of India's circular DBOD. No. BP.BC.37/21.04.141/2004-05 dated September 2, 2004. As required by the above circular, a provision of Rs. 182.82 crore being the difference between the book value of each investment and the lower of its acquisition cost and market value has been made in the accounts.

5. Status of equity investors' complaints/ grievances for the quarter ended December 31, 2004

Opening balance Additions Disposals Closing balance(a) ---------------------------------------------------------------------- 7 1114 1108 13 ---------------------------------------------------------------------- (a) Of these, 9 have since been resolved. The above figures include complaints/ grievances relating to the Public issue in April 2004.

6. Previous period figures have been regrouped / reclassified where necessary to conform to current period classification.

The above financial results have been taken on record by the Board of Directors at its meeting held on January 16-17, 2005.

Place: Mumbai Kalpana Morparia Date : January 17, 2005 Deputy Managing Director

SEGMENTAL INFORMATION OF ICICI BANK LIMITED FOR THE PERIOD ENDED DECEMBER 31, 2004 (Rs. in crore)

Quarter ended ------------------------- Sr. Particulars December 31, December 31, No. 2004 2003 ---------------------------------------------------------------------- 1. Segment revenue -------------------------- a Consumer and commercial banking 2,591.24 2,373.70 -------------------------- ------------ ------------ b Investment banking 807.32 954.54 -------------------------- ------------ ------------ Total 3,398.56 3,328.24 -------------------------- ------------ ------------ Less: Inter segment revenue (129.47) (295.30) -------------------------- ------------ ------------ Income from Operations 3,269.09 3,032.94 ---------------------------------------------------------------------- 2. Segmental results (i.e. Profit before tax & provision) -------------------------- a Consumer and commercial banking 387.37 297.57 -------------------------- ------------ ------------ b Investment banking 393.45 392.69 -------------------------- ------------ ------------ Total 780.82 690.26 ---------------------------------------------------------------------- 3. Provisions -------------------------- a Consumer and commercial banking (118.35) 156.56 -------------------------- ------------ ------------ b Investment banking 226.58 8.66 -------------------------- ------------ ------------ Total 108.23 165.22 ---------------------------------------------------------------------- 4. Segment results (i.e. Profit before tax) -------------------------- a Consumer and commercial banking 505.72 141.01 -------------------------- ------------ ------------ b Investment banking 166.87 384.03 -------------------------- ------------ ------------ Total profit before tax 672.59 525.04 -------------------------- ------------ ------------ Unallocated 9.60 9.34 -------------------------- ------------ ------------ Tax 145.31 75.60 -------------------------- ------------ ------------ Profit after tax 517.68 440.10 ---------------------------------------------------------------------- 5. Capital employed (i.e. segment assets - segment liabilities excluding inter-segmental funds lent and borrowed) -------------------------- a Consumer and commercial banking (19,996.15) (18,026.81) -------------------------- ------------ ------------ b Investment banking 30,277.52 24,266.27 -------------------------- ------------ ------------ Total 10,281.37 6,239.46 -------------------------- ------------ ------------

Nine month period ended ------------------------- Year ended Sr. Particulars December 31, December 31, March 31, No. 2004 2003 2004 ---------------------------------------------------------------------- 1. Segment revenue -------------------------- a Consumer and commercial banking 7,686.13 7140.63 9,581.93 -------------------------- ------------ ------------ ------------ b Investment banking 2,139.85 2,777.76 3,590.28 -------------------------- ------------ ------------ ------------ Total 9,825.98 9,918.39 13,172.21 -------------------------- ------------ ------------ ------------ Less: Inter segment revenue (637.48) (874.02) (1,104.90) -------------------------- ------------ ------------ ------------ Income from Operations 9,188.50 9,044.37 12,067.31 ---------------------------------------------------------------------- 2. Segmental results (i.e. Profit before tax & provision) -------------------------- a Consumer and commercial banking 1,411.35 944.47 1,298.42 -------------------------- ------------ ------------ ------------ b Investment banking 696.28 950.08 1,208.01 -------------------------- ------------ ------------ ------------ Total 2,107.63 1,894.55 2,506.43 ---------------------------------------------------------------------- 3. Provisions -------------------------- a Consumer and commercial banking 124.17 525.61 554.28 -------------------------- ------------ ------------ ------------ b Investment banking 224.60 3.70 24.34 -------------------------- ------------ ------------ ------------ Total 348.77 529.31 578.62 ---------------------------------------------------------------------- 4. Segment results (i.e. Profit before tax) -------------------------- a Consumer and commercial banking 1,287.18 418.86 744.14 -------------------------- ------------ ------------ ------------ b Investment banking 471.68 946.38 1,183.67 -------------------------- ------------ ------------ ------------ Total profit before tax 1,758.86 1,365.24 1,927.81 -------------------------- ------------ ------------ ------------ Unallocated 28.80 16.00 25.60 -------------------------- ------------ ------------ ------------ Tax 339.56 167.54 265.11 -------------------------- ------------ ------------ ------------ Profit after tax 1,390.50 1,181.70 1,637.10 ---------------------------------------------------------------------- 5. Capital employed (i.e. segment assets - segment liabilities excluding inter-segmental funds lent and borrowed) -------------------------- a Consumer and commercial banking (19,996.15) (18,026.81) (20,698.00) -------------------------- ------------ ------------ ------------ b Investment banking 30,277.52 24,266.27 26,455.04 -------------------------- ------------ ------------ ------------ Total 10,281.37 6,239.46 5,757.04 -------------------------- ------------ ------------ ------------

--30--CER/se*

CONTACT: ICICI Bank Limited Press queries: Madhvendra Das, 91-22-2653-8208 madhvendra.das@icicibank.com or Investor queries: Rakesh Jha, 91-22-2653-6157 Anindya Banerjee, 91-22-2653-7131 ir@icicibank.com

KEYWORD: NEW YORK INDIA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: ICICI Bank Limited

Copyright Business Wire 2005