Performance Review: Q1:FY2003. July 31, 2002

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Rosamund Whitehead
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1 Performance Review: Q1:FY2003 July 31, 2002

2 Highlights Profit after tax Rs billion despite full impact of merger transition costs and increase in general provision against standard assets Return on assets at 1% and return on networth at 15.9% Diversifying asset mix with increasing proportion of retail assets Retail assets constitute 10% of total assets Shift towards low-cost liability profile Deposits constitute 36% of liabilities 2

3 Agenda Financial Performance Operational Focus Capital & Shareholding 3

4 Profit & loss statement (Rs. in billion) Q1- Q1- FY02 FY02 FY03 1 Interest income Interest expense Net interest income Non-interest income Fee income Treasury income Lease income Others Total income Includes operations of ICICI and two subsidiaries from the Appointed Date i.e., Mar 30, Results for Q1-FY03 are not comparable to results of standalone for Q1-FY02. 4

5 Profit & loss statement (Rs. in billion) Q1- Q1- FY02 FY02 FY03 1 Total income Operating expenses Lease depreciation Operating profit Provisions Profit before tax Tax Profit after tax Includes operations of ICICI and two subsidiaries from the Appointed Date i.e., Mar 30, Results for Q1-FY03 are not comparable to results of standalone for Q1-FY02. 5

6 Conservative general provisioning policy Higher general provisions against standard assets 2.0% on dealer funding, credit cards, personal loans & consumer durables 0.5% on home loans 1.0% on all other wholesale and retail assets Excluding ICICI s corporate and project assets fair valued for the merger Total general provision against standard assets of Rs billion for the quarter 6

7 Balance sheet: Assets (Rs. in billion) March 31, 2002 June 30, 2002 Cash, balances with banks & SLR - Cash & balances with RBI & banks - SLR investments Advances Debentures & bonds Other investments Fixed assets Other assets Total assets 1,

8 Balance sheet: Liabilities (Rs. in billion) March 31, June 30, Net worth Equity capital Reserves Preference capital Deposits Borrowings Of which: Subordinated debt Other liabilities Total liabilities 1,

9 Spreads (Per cent) Q1- Q1- FY02 FY02 FY03 Yield on interestearning assets (1) Cost of funds (2) Cost of deposits Spread (1) (2) Net interest margin

10 Key ratios (Per cent) Q1- Q1- FY02 FY02 FY03 Return on assets Return on net worth EPS (Rs.) Cost to income Cost to average assets

11 Consolidated profits Q1-FY02 Q1- FY03 standalone profit Add: - ICICI Securities ICICI Prudential Life - (0.25) - Others Less: - Dividend received from subsidiaries and affiliates (Rs. in billion) consolidated profit Indian GAAP

12 Segment-wise results (Rs. in billion) Revenue P B T Net assets 1 Commercial banking (142.85) Investment banking Others 1.46 (0.25) Inter-segment adj./ unallocated (2.94) Total Segment assets less segment liabilities. Rs. bn 12 Indian GAAP

13 Performance of subsidiaries (Rs. in million) PAT Key subsidiaries Q1-FY02 Q1-FY03 ICICI Securities ICICI Venture ICICI Prudential (33) (335) ICICI Lombard (18.6) (9.5) ICICI Home Consolidated 13

14 Classification of loan assets (Rs. in billion) March 31, 2002 June 30, 2002 Amt. % Amt. % Loss - - Doubtful Sub-standard Less: additional provision against nonperforming loans Net non-performing loans Standard incl. restructured Total Standard assets have not been adjusted for general provisions. 14

15 Agenda Financial Performance Operational Focus Capital & Shareholding 15

16 Diversification of asset mix... March 2002 June % 24% Project finance 5% 7% 23% 6% Corporate finance Retail finance Reserves & cash 6% 7% Investments Other assets 32% 23% 34% 10% Rs. 1, billion 1 Rs. 1, billion 1 in line with strategy of increasing proportion of retail assets and reducing proportion of historical project finance assets 16 1 Including assets of ICICI Home Finance Company Limited

17 Strong growth in retail assets (Rs. in billion) March 2001 March 2002 June Including assets of ICICI Home Finance Company Limited

18 Shift towards lower cost liability profile... About Rs billion of erstwhile ICICI s high cost borrowings repaid during the quarter Including exercise of all available prepayment options Deposits now constitute 36% of total liabilities Strengthening distribution network ATM network expanded to 1,066 ATMs Distribution capability being leveraged for third part distribution as well Total third party distribution of about Rs billion for the quarter 18

19 Top 10 industry-wise exposure (% to total) Industry March 31, 2002 June 30, 2002 Retail finance Services Iron & steel Power Textiles Crude petroleum & refining Telecom Engineering Electronics Metal & metal products Total exposure (Rs. bn) Includes ICICI Home Finance portfolio 19

20 Agenda Financial Performance Operational Focus Capital & Shareholding 20

21 Capital adequacy FY02 Q1-FY03 Rs. bn % Rs. bn % Total capital Tier I Tier II Total risk weighted assets Includes general provisions of Rs billion. 21

22 Shareholding pattern 2.95% 3.61% 5.20% 25.71% 9.91% 15.94% 20.14% 16.54% ADR FIIs & NRIs Shares Trust Insurance companies Individuals Bodies corporate UTI Banks, FIs & MFs Paid-up capital Rs billion 22

23 23 Thank You

24 Interest income Q1 FY02 Q1 FY03 (Rs. in billion) FY02Rs. bn Interest/discount on advances/bills Income on investments Interest on balances with RBI & banks Others Total interest income

25 Interest expense Q1 FY02 Q1 FY03 (Rs. in billion) FY02 Interest on deposits Interest on RBI / interbank borrowings Others (incl. erstwhile ICICI s borrowings) Total interest expense Rs. bn 25

26 Operating expenses Q1 FY02 Q1 FY03 (Rs. in billion) FY02 Salary Rents, taxes & lighting Printing & stationery Postage & courier Repairs & maintenance Depreciation Advertising & publicity Others Total operating expense

Performance Review: Q July 25, 2003

Performance Review: Q July 25, 2003 Performance Review: 2004 July 25, Highlights 34% increase in profit after tax to Rs. 3.40 bn compared to Rs. 2.53 bn in Net interest margin improved to 1.7% for 2004 compared to 1.4% for FY Equity capital