Performance Review: Quarter ended December 31, 2022

January 21, 2023

• Core operating profit (profit before provisions and tax, excluding treasury income) grew by 31.6% year-on-year to ₹13,235 crore (US$ 1.6 billion) in the quarter ended December 31, 2022 (Q3-2023)

• Profit after tax grew by 34.2% year-on-year to ₹ 8,312 crore (US$ 1.0 billion) in Q3-2023

• Total period-end deposits grew by 10.3% year-on-year to ₹ 11,22,049 crore (US$ 135.6 billion) at December 31, 2022

  • Average current account and savings account (CASA) ratio was 44.6% in Q3-2023

• Overall loan portfolio grew by 19.7% year-on-year

  • Domestic loan portfolio grew by 21.4% year-on-year

• Net NPA ratio declined to 0.55% at December 31, 2022 from 0.61% at September 30, 2022

• Provisioning coverage ratio on non-performing assets was 82.0% at December 31, 2022

• Including profits for the nine months ended December 31, 2022 (9M-2023), total capital adequacy ratio was 18.33% and Tier-1 capital adequacy ratio was 17.58%, on a standalone basis, at December 31, 2022

The Board of Directors of ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) at its meeting held at Mumbai today, approved the standalone and consolidated accounts of the Bank for the quarter ended December 31, 2022 (Q3-2023). The statutory auditors have conducted a limited review and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended December 31, 2022.

Profit & loss account

• The core operating profit (profit before provisions and tax, excluding treasury income) increased by 31.6% year-on-year to ₹ 13,235 crore (US$ 1.6 billion) in Q3-2023 from ₹ 10,060 crore (US$ 1.2 billion) in the quarter ended December 31, 2021 (Q3-2022)

• Net interest income (NII) increased by 34.6% year-on-year to ₹ 16,465 crore (US$ 2.0 billion) in Q3-2023 from ₹ 12,236 crore (US$ 1.5 billion) in Q3-2022

• The net interest margin was 4.65% in Q3-2023 compared to 3.96% in Q3-2022 and 4.31% in the quarter ended September 30, 2022 (Q2-2023). The net interest margin was 4.33% in 9M-2023

• Non-interest income, excluding treasury income, increased by 1.8% year-on-year to ₹ 4,987 crore (US$ 603 million) in Q3-2023 from ₹ 4,899 crore (US$ 592 million) in Q3-2022

• Fee income grew by 3.7% year-on-year to ₹ 4,448 crore (US$ 538 million) in Q3-2023 from ₹ 4,291 crore (US$ 519 million) in Q3-2022. Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q3-2023

• There was a treasury gain of ₹ 36 crore (US$ 4 million) in Q3-2023 compared to ₹ 88 crore (US$ 11 million) in Q3-2022

• Provisions (excluding provision for tax) increased by 12.5% year-on-year to ₹ 2,257 crore (US$ 273 million) in Q3-2023 from ₹ 2,007 crore (US$ 243 million) in Q3-2022. During the quarter, the Bank has changed its provisioning norms on non-performing assets to make them more conservative. This change resulted in higher provisions amounting to ₹ 1,196 crore in Q3-2023. Provisions for Q3-2023 also include contingency provision of ₹ 1,500 crore (US$ 181 million) made on a prudent basis.

• The profit before tax grew by 35.3% year-on-year to ₹ 11,014 crore (US$ 1.3 billion) in Q3-2023 from ₹ 8,141 crore (US$ 984 million) in Q3-2022

• On a standalone basis, the profit after tax grew by 34.2% year-on-year to ₹ 8,312 crore (US$ 1.0 billion) in Q3-2023 from ₹ 6,194 crore (US$ 749 million) in Q3-2022

• On a standalone basis, the profit after tax grew by 39.5% year-on-year to ₹ 22,775 crore (US$ 2.8 billion) in 9M-2023 from ₹ 16,321 crore (US$ 2.0 billion) in 9M-2022

Growth in digital and payments platforms

There have been around 86 lakh activations from non-ICICI Bank account holders on our mobile banking app, iMobile Pay as of end-December 2022. The value of transactions by non-ICICI Bank account holders on iMobile Pay during Q3-2023 was 2.3 times the value of transactions in Q3-2022.

The business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ along with the Bank’s extensive branch network. The value of financial transactions on InstaBIZ grew by about 29.2% year-on-year in Q3-2023. There have been about 215,000 registrations from non-ICICI Bank account holders on InstaBIZ till December 31, 2022.

The value of the Bank’s merchant acquiring transactions through UPI grew by 10.6% sequentially and 78.0% year-on-year in Q3-2023. The Bank had a market share of 30.6% by value in electronic toll collections through FASTag in Q3-2023, with a 22.2% year-on-year growth in collections.

The Bank has created more than 20 industry specific STACKs which provide bespoke and purpose-based digital solutions to corporate clients and their ecosystems. The Bank’s Trade Online and Trade Emerge platforms allow customers to perform most of their trade finance and foreign exchange transactions digitally. About 71.2% of trade transactions were done digitally in Q3 of this year. The value of transactions done through these platforms increased by 59.3% year-on-year in Q3 of this year.

The Bank has launched a STACK for real estate sector to offer digital and phygital banking solutions on one platform for builders, Real Estate Investment Trusts (REITs) and Alternate Investment Funds (AIFs) covering the entire lifecycle from construction to leasing and selling the property as well as services for their customers, employees and vendors.

The Bank has also launched comprehensive digital solutions, value-added services and Trade APIs for exporters covering the entire export life cycle including discovery of export markets, export finance - Insta EPC, foreign exchange services and export incentives.

Credit growth

The retail loan portfolio grew by 23.4% year-on-year and 4.5% sequentially, and comprised 54.3% of the total loan portfolio at December 31, 2022. Including non-fund outstanding, the retail portfolio was 44.9% of the total portfolio at December 31, 2022. The business banking portfolio grew by 37.9% year-on-year and 5.2% sequentially at December 31, 2022. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 30 million), grew by 25.0% year-on-year and 8.3% sequentially at December 31, 2022. The domestic corporate portfolio grew by 18.2% year-on-year and 4.7% sequentially at December 31, 2022. The rural portfolio grew by 12.5% year-on-year and 3.8% sequentially at December 31, 2022. The domestic advances grew by 21.4% year-on-year and 4.2% sequentially at December 31, 2022. Total advances increased by 19.7% year-on-year and 3.8% sequentially to ₹ 974,047 crore (US$ 117.8 billion) at December 31, 2022.

Deposit growth

Total period-end deposits increased by 10.3% year-on-year to ₹ 11,22,049 crore (US$ 135.6 billion) at December 31, 2022. Period-end term deposits increased by 14.2% year-on-year to ₹ 6,13,208 crore (US$ 74.1 billion) at December 31, 2022. Average current account and savings account deposits increased by 10.4% year-on-year in Q3-2023.

The Bank opened about 300 branches in 9M-2023 and had a network of 5,718 branches and 13,186 ATMs at December 31, 2022.

Asset quality

The gross NPA ratio declined to 3.07% at December 31, 2022 from 3.19% at September 30, 2022 and 4.13% at December 31, 2021. The net NPA ratio declined to 0.55% at December 31, 2022 from 0.61% at September 30, 2022 and 0.85% at December 31, 2021. During Q3-2023, there were net additions of ₹ 1,119 crore (US$ 135 million) to gross NPAs compared to ₹ 605 crore (US$ 73 million) in Q2-2023. The gross NPA additions were ₹ 5,723 crore (US$ 692 million) in Q3-2023 compared to ₹ 4,366 crore (US$ 528 million) in Q2-2023. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 4,604 crore (US$ 557 million) in Q3-2023 compared to ₹ 3,761 crore (US$ 455 million) in Q2-2023. The gross NPAs written-off in Q3-2023 were ₹ 1,162 crore (US$ 140 million). The provisioning coverage ratio on NPAs was 82.0% at December 31, 2022.

Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹ 4,987 crore (US$ 603 million) or 0.5% of total advances at December 31, 2022 from ₹ 6,713 crore (US$ 811 million) at September 30, 2022. The Bank holds provisions amounting to ₹ 1,529 crore (US$ 185 million) against these borrowers under resolution, as of December 31, 2022. In addition, the Bank held contingency provisions of ₹ 11,500 crore (US$ 1.4 billion) at December 31, 2022. The loan and non-fund based outstanding to performing borrowers rated BB and below reduced to ₹ 5,581 crore (US$ 675 million) at December 31, 2022 from ₹ 7,638 crore (US$ 923 million) at September 30, 2022.

Capital adequacy

Including profits for the nine months ended (9M-2023), the Bank’s total capital adequacy ratio at December 31, 2022 was 18.33% and Tier-1 capital adequacy was 17.58% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

Consolidated results

The consolidated profit after tax increased by 34.5% year-on-year to ₹ 8,792 crore (US$ 1.1 billion) in Q3-2023 from ₹ 6,536 crore (US$ 790 million) in Q3-2022.

Consolidated assets grew by 12.1% year-on-year to ₹ 1,887,209 crore (US$ 228.1 billion) at December 31, 2022 from ₹ 1,682,904 crore (US$ 203.4 billion) at December 31, 2021.

Key subsidiaries and associates

Value of New Business (VNB) of ICICI Prudential Life Insurance (ICICI Life) increased by 23.2% year-on-year to ₹ 1,710 crore (US$ 207 million) in 9M-2023. The VNB margin increased from 28.0% in FY2022 to 32% in 9M-2023. The annualised premium equivalent increased by 4.2% year-on-year to ₹ 5,341 crore (US$ 646 million) in 9M-2023. The profit after tax was ₹ 221 crore (US$ 27 million) in Q3-2023 compared to ₹ 311 crore (US$ 38 million) in Q3-2022.

The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) grew by 20.6% year-on-year to ₹ 16,048 crore (US$ 1.9 billion) in 9M-2023 from ₹ 13,311 crore (US$ 1.6 billion) in 9M-2022. The combined ratio was 104.6% in 9M-2023 compared to 111.0% in 9M-2022. The profit after tax of ICICI General grew by 11.0% to ₹ 353 crore (US$ 43 million) in Q3-2023 from ₹ 318 crore (US$ 38 million) in Q3-2022.

The profit after tax of ICICI Prudential Asset Management Company, as per Ind AS, grew by 25.7% year-on-year to ₹ 420 crore (US$ 51 million) in Q3-2023 from ₹ 334 crore (US$ 40 million) in Q3-2022.

The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, was ₹ 281 crore (US$ 34 million) in Q3-2023 compared to ₹ 380 crore (US$ 46 million) in Q3-2022.

Summary Profit and Loss Statement (as per standalone Indian GAAP accounts)

₹crore

1. Excluding treasury income

2. The Bank has made an additional contingency provision of ₹ 1,050 crore (US$ 133 million) Q1-2023, ₹ 1,500 crore (US$ 184 million) in Q2-2023, and ₹ 1,500 crore (US$ 181 million) in Q3-2023 (9M-2023: ₹ 4,050 crore (US$ 490 million)) on a prudent basis. Accordingly, the Bank holds contingency provision of ₹ 11,500 crore (US$ 1.4 billion) at December 31, 2022.

3. Prior period numbers have been re-arranged wherever necessary

Summary balance sheet

₹crore

1. Prior period figures have been re-grouped/re-arranged wherever necessary

Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities laws including the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties include, but are not limited to statutory and regulatory changes, international economic and business conditions, political or economic instability in the jurisdictions where we have operations, increase in non-performing loans, unanticipated changes in interest rates, foreign exchange rates, equity prices or other rates or prices, our growth and expansion in business, the adequacy of our allowance for credit losses, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks, changes in India’s sovereign rating, and the impact of the Covid-19 pandemic which could result in fewer business opportunities, lower revenues, and an increase in the levels of non-performing assets and provisions, depending inter alia upon the period of time for which the pandemic extends, the remedial measures adopted by governments and central banks, and the sustenance of economic activity at normal levels after the pandemic, as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. Any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this release. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov.

This release does not constitute an offer of securities.

For further press queries please email Sujit Ganguli / Kausik Datta at sujit.ganguli@icicibank.com / datta.kausik@icicibank.com or corporate.communications@icicibank.com

For investor queries please email Abhinek Bhargava at abhinek.bhargava@icicibank.com or Nitesh Kalantri nitesh.kalantri@icicibank.com or ir@icicibank.com.

1 crore = 10.0 million

US$ amounts represent convenience translations at US$1=₹82.73