Performance Review: Quarter ended September 30, 2023
October 21, 2023
Profit before tax excluding treasury grew by 35.7% year-on-year to ₹ 13,731 crore (US$ 1.6 billion) in the quarter ended September 30, 2023 (Q2-2024)
Core operating profit grew by 21.7% year-on-year to ₹ 14,314 crore (US$ 1.7 billion) in Q2-2024
Profit after tax grew by 35.8% year-on-year to ₹ 10,261 crore (US$ 1.2 billion) in Q2-2024
Total period-end deposits grew by 18.8% year-on-year to ₹ 12,94,742 crore (US$ 155.9 billion) at September 30, 2023
Average current account and savings account (CASA) ratio was 40.8% in Q2-2024
Domestic loan portfolio grew by 19.3% year-on-year to ₹ 10,74,206 crore (US$ 129.4 billion) at September 30, 2023
Net NPA ratio declined to 0.43% at September 30, 2023 from 0.48% at June 30, 2023
Provision coverage ratio on non-performing assets was 82.6% at September 30, 2023
Including profits for the six months ended September 30, 2023 (H1-2024), total capital adequacy ratio was 17.59% and Tier-1 capital adequacy ratio was 16.86% on a standalone basis at September 30, 2023
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 September 30, 2023 (Q2-2024). 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 September 30, 2023.
Profit & loss account
Profit before tax excluding treasury grew by 35.7% year-on-year to ₹ 13,731 crore (US$ 1.6 billion) in Q2-2024 from ₹ 10,121 crore (US$ 1.2 billion) in the quarter ended September 30, 2022 (Q2-2023)
The core operating profit grew by 21.7% year-on-year to ₹ 14,314 crore (US$ 1.7 billion) in Q2-2024 from ₹ 11,765 crore (US$ 1.4 billion) in Q2-2023; excluding dividend income from subsidiaries/associates, core operating profit grew by 22.9% year-on-year in Q2-2024
Net interest income (NII) increased by 23.8% year-on-year to ₹ 18,308 crore (US$ 2.2 billion) in Q2-2024 from ₹ 14,787 crore (US$ 1.8 billion) in Q2-2023
The net interest margin was 4.53% in Q2-2024 compared to 4.31% in Q2-2023 and 4.78% in Q1-2024. The net interest margin was 4.65% in H1-2024
Non-interest income excluding treasury increased by 14.0% year-on-year to ₹ 5,861 crore (US$ 706 million) in Q2-2024 from ₹ 5,139 crore (US$ 619 million) in Q2-2023
Fee income grew by 16.2% year-on-year to ₹ 5,204 crore (US$ 627 million) in Q2-2024 from ₹ 4,480 crore (US$ 539 million) in Q2-2023. Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Q2-2024
Provisions (excluding provision for tax) were ₹ 583 crore (US$ 70 million) in Q2-2024 compared to ₹ 1,644 crore (US$ 198 million) in Q2-2023
There was a treasury loss of ₹ 85 crore (US$ 10 million) in Q2-2024, similar to Q2-2023
The profit before tax grew by 36.0% year-on-year to ₹ 13,646 crore (US$ 1.6 billion) in Q2-2024 from ₹ 10,036 crore (US$ 1.2 billion) in Q2-2023
The profit after tax grew by 35.8% year-on-year to ₹ 10,261 crore (US$ 1.2 billion) in Q2-2024 from ₹ 7,558 crore (US$ 910 million) in Q2-2023
Growth in digital and payments platforms
There have been more than one crore activations of iMobile Pay by non-ICICI Bank account holders at end-September 2023.
ICICI Bank’s Merchant STACK offers an array of banking and value-added services to retailers, online businesses and large e-commerce firms such as digital current account opening, instant overdraft facilities based on point-of-sale transactions, connected banking services and digital store management, among others. The value of the Bank’s merchant acquiring transactions through UPI grew by 69.5% year-on-year and 13.9% sequentially in Q2-2024. The Bank had a market share of about 30% by value in electronic toll collections through FASTag in Q2-2024, with a 15.4% year-on-year growth in collections in Q2-2024.
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. The Bank’s digital solutions integrate the export transaction lifecycle with bespoke solutions providing frictionless experience to the clients and simplify customer journeys. About 71% of trade transactions were done digitally in Q2-2024. The volume of transactions done through Trade Online and Trade Emerge platforms in Q2-2024 grew by 29.7% year-on-year.
Credit growth
The net domestic advances grew by 19.3% year-on-year and 4.8% sequentially at September 30, 2023. The retail loan portfolio grew by 21.4% year-on-year and 5.5% sequentially, and comprised 54.3% of the total loan portfolio at September 30, 2023. Including non-fund outstanding, the retail portfolio was 46.0% of the total portfolio at September 30, 2023. The business banking portfolio grew by 30.3% year-on-year and 10.6% sequentially at September 30, 2023. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 30 million), grew by 29.4% year-on-year and 7.2% sequentially at September 30, 2023. The rural portfolio grew by 17.3% year-on-year and 3.5% sequentially at September 30, 2023. The domestic corporate portfolio grew by 15.3% year-on-year and 3.1% sequentially at September 30, 2023. Total advances increased by 18.3% year-on-year and 5.0% sequentially to ₹ 11,10,542 crore (US$ 133.7 billion) at September 30, 2023.
Deposit growth
Total period-end deposits increased by 18.8% year-on-year and 4.5% sequentially to ₹ 12,94,742 crore (US$ 155.9 billion) at September 30, 2023. Period end term deposits increased by 31.8% year-on-year and 9.2% sequentially to ₹ 7,67,112 crore (US$ 92.4 billion) at September 30, 2023. Average current account deposits increased by 14.0% year-on-year in Q2-2024. Average savings account deposits increased by 4.5% year-on-year in Q2-2024.
With an addition of 174 branches during Q2-2024, the Bank had a network of 6,248 branches and 16,927 ATMs and cash recycling machines at September 30, 2023.
Asset quality
The gross NPA ratio declined to 2.48% at September 30, 2023 from 2.76% at June 30, 2023. The net NPA ratio declined to 0.43% at September 30, 2023 from 0.48% at June 30, 2023 and 0.61% at September 30, 2022. The net addition to gross NPAs, excluding write-offs and sale, were ₹ 116 crore (US$ 14 million) in Q2-2024 compared to ₹ 1,807 crore (US$ 218 million) in Q1-2024. The gross NPA additions were ₹ 4,687 crore (US$ 564 million) in Q2-2024 compared to ₹ 5,318 crore (US$ 640 million) in Q1-2024. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 4,571 crore (US$ 550 million) in Q2-2024 compared to ₹ 3,511 crore (US$ 423 million) in Q1-2024. The Bank has written off gross NPAs amounting to ₹ 1,922 crore (US$ 231 million) in Q2-2024. The provision coverage ratio on NPAs was 82.6% at September 30, 2023.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹ 3,536 crore (US$ 426 million) or 0.3% of total advances at September 30, 2023 from ₹ 3,946 crore (US$ 475 million) at June 30, 2023. The Bank holds provisions amounting to ₹ 1,107 crore (US$ 133 million) against these borrowers under resolution. In addition, the Bank continues to hold contingency provisions of ₹ 13,100 crore (US$ 1.6 billion) at September 30, 2023. The loan and non-fund based outstanding to performing corporate and SME borrowers rated BB and below was ₹ 4,789 crore (US$ 581 million) at September 30, 2023 from ₹ 4,276 crore (US$ 515 million) at June 30, 2023. The increase is due to the upgrade of one borrower from non-performing status. The loan and non-fund based outstanding of ₹ 4,789 crore (US$ 581 million) at September 30, 2023 includes ₹ 682 crore (US$ 82 million) to borrowers under resolution.
Capital adequacy
Including profits for the six months ended (H1-2024), the Bank’s total capital adequacy ratio at September 30, 2023 was 17.59% and Tier-1 capital adequacy was 16.86% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.
Consolidated results
The consolidated profit after tax increased by 36.1% year-on-year to ₹ 10,896 crore (US$ 1.3 billion) in Q2-2024 from ₹ 8,007 crore (US$ 964 million) in Q2-2023.
Consolidated total assets grew by 15.9% year-on-year to ₹ 21,24,850 crore (US$ 255.9 billion) at September 30, 2023 from ₹ 18,33,154 crore (US$ 220.7 billion) at September 30, 2022.
Key subsidiaries and associates
Value of New Business (VNB) of ICICI Prudential Life Insurance Company (ICICI Life) decreased year-on-year by 7.1% to ₹ 1,015 crore (US$ 122 million) in H1-2024 compared to ₹ 1,092 crore (US$ 131 million) in H1-2023. The annualised premium equivalent was ₹ 3,523 crore (US$ 424 million) in H1-2024 compared to ₹ 3,519 crore (US$ 424 million) in H1-2023. The VNB margin was 28.8% in H1-2024 compared to 32.0% in FY2023. The profit after tax increased by 22.6% year-on-year to ₹ 244 crore (US$ 29 million) in Q2-2024 from ₹ 199 crore (US$ 24 million) in Q2-2023.
The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) grew by 17.4% year-on-year to ₹ 6,086 crore (US$ 733 million) in Q2-2024 from ₹ 5,185 crore (US$ 624 million) in Q2-2023. The combined ratio stood at 103.9% in Q2-2024 compared to 105.1% in Q2-2023. Excluding the impact of catastrophic losses of ₹ 48 crore (US$ 6 million) in Q2-2024 and ₹ 28 crore in Q2-2023 (US$ 3 million), the combined ratio was 102.8% and 104.3% respectively. The profit after tax of ICICI General was ₹ 577 crore (US$ 69 million) in Q2-2024 compared to ₹ 591 crore (US$ 71 million) in Q2-2023. The profit after tax of Q2-2023 included reversal of tax provisions of ₹ 128 crore (US$15 million).
The profit after tax of ICICI Prudential Asset Management Company, as per Ind AS, grew by 23.5% year-on-year to ₹ 501 crore (US$ 60 million) in Q2-2024 from ₹ 406 crore (US$ 49 million) in Q2-2023.
The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, was ₹ 424 crore (US$ 51 million) in Q2-2024 compared to ₹ 300 crore (US$ 36 million) in Q2-2023.
Summary Profit and Loss Statement (as per standalone Indian GAAP accounts)
₹ crore |
||||||
FY2023 |
Q2-2023 |
H1-2023 |
Q1-2024 |
Q2-2024 |
H1-2024 |
|
Audited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net interest income |
62,129 |
14,787 |
27,997 |
18,227 |
18,308 |
36,535 |
Non-interest income |
19,883 |
5,139 |
9,768 |
5,183 |
5,861 |
11,044 |
- Fee income |
18,001 |
4,480 |
8,723 |
4,843 |
5,204 |
10,047 |
- Dividend income from subsidiaries/associates |
1,784 |
648 |
995 |
291 |
648 |
939 |
- Other income |
98 |
11 |
50 |
49 |
9 |
58 |
Less: |
||||||
Operating expense |
32,873 |
8,161 |
15,727 |
9,523 |
9,855 |
19,378 |
Core operating profit1 |
49,139 |
11,765 |
22,038 |
13,887 |
14,314 |
28,201 |
Total net provision |
6,666 |
1,644 |
2,788 |
1,292 |
583 |
1,875 |
- Contingency provisions2 |
5,650 |
1,500 |
2,550 |
- |
- |
- |
- Other provisions |
1,016 |
144 |
238 |
1,292 |
583 |
1,875 |
Profit before tax excl. treasury |
42,473 |
10,121 |
19,250 |
12,595 |
13,731 |
26,326 |
Treasury |
(52) |
(85) |
(49) |
252 |
(85) |
167 |
Profit before tax |
42,421 |
10,036 |
19,201 |
12,847 |
13,646 |
26,493 |
Less: |
||||||
Provision for taxes |
10,525 |
2,478 |
4,738 |
3,199 |
3,385 |
6,584 |
Profit after tax |
31,896 |
7,558 |
14,463 |
9,648 |
10,261 |
19,909 |
Excluding treasury
The Bank continues to hold contingency provision of ₹ 13,100 crore (US$ 1.6 billion) at September 30, 2023
Prior period numbers have been re-arranged wherever necessary
Summary balance sheet
₹ crore |
||||
30-Sep-22 |
31-Mar-23 |
30-Jun-23 |
30-Sep-23 |
|
Unaudited |
Audited |
Unaudited |
Unaudited |
|
Capital and liabilities |
||||
Capital |
1,394 |
1,397 |
1,400 |
1,401 |
Employee stock options outstanding |
510 |
761 |
916 |
1,078 |
Reserves and surplus |
1,80,603 |
1,98,558 |
2,08,650 |
2,13,570 |
Deposits |
10,90,008 |
11,80,841 |
12,38,737 |
12,94,742 |
Borrowings (includes subordinated debt) |
1,29,934 |
1,19,325 |
1,11,252 |
1,16,758 |
Other liabilities and provisions |
86,225 |
83,325 |
86,045 |
93,231 |
Total capital and liabilities |
14,88,674 |
15,84,207 |
16,47,000 |
17,20,780 |
Assets |
||||
Cash and balances with Reserve Bank of India |
67,095 |
68,526 |
68,800 |
66,221 |
Balances with banks and money at call and short notice |
57,818 |
50,912 |
37,447 |
43,241 |
Investments |
3,33,031 |
3,62,330 |
3,98,140 |
4,13,253 |
Advances |
9,38,563 |
10,19,638 |
10,57,583 |
11,10,542 |
Fixed assets |
9,510 |
9,600 |
9,730 |
10,166 |
Other assets |
82,657 |
73,201 |
75,300 |
77,357 |
Total assets |
14,88,674 |
15,84,207 |
16,47,000 |
17,20,780 |
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, 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 at sujit.ganguli@icicibank.com or Kausik Datta at datta.kausik@icicibank.com or corporate.communications@icicibank.com
For investor queries please email Abhinek Bhargava at abhinek.bhargava@icicibank.com or Nitesh Kalantri at nitesh.kalantri@icicibank.com or ir@icicibank.com.
1 crore = 10.0 million
US$ amounts represent convenience translations at US$1= ₹ 83.05
