ICICI Bank Limited Q1 FY24 Results

Performance Review: Quarter ended June 30, 2023

• Core operating profit less provisions (profit before tax excluding treasury gains) grew by 38.0% year-on-year to ₹ 12,595 crore (US$ 1.5 billion) in the quarter ended June 30, 2023 (Q1-2024)
• Core operating profit grew by 2% year-on-year to ₹ 13,887 crore (US$1.7 billion) in Q1-2024
• Profit after tax grew by 39.7% year-on-year to ₹ 9,648 crore (US$ 1.2 billion) in Q1-2024
• Total period-end deposits grew by 9% year-on-year to ₹ 12,38,737 crore (US$ 151.0 billion) at June 30, 2023
• Average CASA ratio was 6% in Q1-2024
• Domestic loan portfolio grew by 20.6% year-on-year to ₹ 10,25,310 crore (US$ 0 billion) at June 30, 2023
• Net NPA ratio was 0.48% at June 30, 2023
• Provision coverage ratio on non-performing assets was 82.4% at June 30, 2023
• Including profits for Q1-2024, total capital adequacy ratio was 17.47% and Tier-1 capital adequacy ratio was 16.76% on a standalone basis at June 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 June 30, 2023 (Ǫ1-2024). The statutory auditors have conducted a limited and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended June 30, 2023.

Profit & loss account

• The core operating profit less provisions (profit before tax excluding treasury gains) grew by 0% year-on-year to ₹ 12,595 crore (US$ 1.5 billion) in Ǫ1- 2024 from ₹ 9,129 crore (US$ 1.1 billion) in the quarter ended June 30, 2022 (Ǫ1-2023)
• The core operating profit grew by 2% year-on-year to ₹ 13,887 crore (US$1.7 billion) in Ǫ1-2024 from ₹ 10,273 crore (US$ 1.3 billion) in the quarter ended June 30, 2022 (Ǫ1-2023); excluding dividend income from subsidiaries/associates, core operating profit grew by 37.0% year-on-year in Ǫ1-2024
• Net interest income (NII) increased by 38.0% year-on-year to ₹ 18,227 crore (US$ 2 billion) in Ǫ1-2024 from ₹ 13,210 crore (US$ 1.6 billion) in Ǫ1-2023
• The net interest margin was 4.78% in Ǫ1-2024 compared to 4.01% in Ǫ1-2023 and 90% in Ǫ4-2023
• Non-interest income, excluding treasury gains, increased by 0% year-on- year to ₹ 5,183 crore (US$ 632 million) in Ǫ1-2024 from ₹ 4,629 crore (US$ 564 million) in Ǫ1-2023
• Fee income grew by 14.1% year-on-year to ₹ 4,843 crore (US$ 590 million) in Ǫ1-2024 from ₹ 4,243 crore (US$ 517 million) in Ǫ1-2023. Fees from retail, rural, business banking and SME customers constituted about 78% of total fees in Ǫ1-2024
• Provisions (excluding provision for tax) were ₹ 1,292 crore (US$ 157 million) in Ǫ1-2024 compared to ₹ 1,144 crore (US$ 139 million) in Ǫ1-2023
• There was a treasury gain of ₹ 252 crore (US$ 31 million) in Ǫ1-2024 compared to a gain of ₹ 36 crore (US$ 4 million) in Ǫ1-2023
• The profit before tax grew by 2% year-on-year to ₹ 12,847 crore (US$ 1.6 billion) in Ǫ1-2024 from ₹ 9,165 crore (US$ 1.1 billion) in Ǫ1-2023
• The profit after tax grew by 39.7% year-on-year to ₹ 9,648 crore (US$ 1.2 billion) in Ǫ1-2024 from ₹ 6,905 crore (US$ 842 million) in Ǫ1-2023

Growth in digital and payments platforms

There have been more than one crore activations on iMobile Pay by non-ICICI Bank account holders at end-June 2023. There have been about 2,30,000 registrations by non-ICICI Bank account holders on InstaBIZ till June 30, 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 12% sequentially and 88% year-on-year in Ǫ1-2024. The Bank had a market share of 30% by value in electronic toll collections through FASTag in Ǫ1-2024, with a 16% 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. The Bank’s digital solutions integrate the export transaction lifecycle with bespoke solutions providing frictionless experience to the clients and simplify customer journeys. The latest digital solutions include Insta EPC for instant disbursal of export finance, eDocs solution for regulatory compliance, vessel tracking for real-time status update on shipment and document tracking for movement of export documents. About 70% of trade transactions were done digitally in Ǫ1-2024. The value of transactions done through Trade Online and Trade Emerge platforms in Ǫ1-2024 was 1.4 times the value in Ǫ1-2023.

Credit growth

The net domestic advances grew by 20.6% year-on-year and 4.0% sequentially at June 30, 2023. The retail loan portfolio grew by 21.9% year-on-year and 4.5% sequentially, and comprised 54.3% of the total loan portfolio at June 30, 2023. Including non-fund outstanding, the retail portfolio was 45.9% of the total portfolio at June 30, 2023. The business banking portfolio grew by 30.4% year- on-year and 3.8% sequentially at June 30, 2023. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 31 million), grew by 28.5% year-on-year and 5.0% sequentially at June 30, 2023. The rural portfolio grew by 17.6% year-on-year and 3.6% sequentially at June 30, 2023. The domestic corporate portfolio grew by 19.3% year-on-year and 2.8% sequentially at June 30, 2023. Total advances increased by 18.1% year-on-year and 3.7% sequentially to ₹ 10,57,583 crore (US$ 128.9 billion) at June 30, 2023.

Deposit growth

Total period-end deposits increased by 17.9% year-on-year and 4.9% sequentially to ₹ 12,38,737 crore (US$ 151.0 billion) at June 30, 2023. Total term deposits increased by 25.8% year-on-year and 9.8% sequentially to ₹ 7,02,511 crore (US$ 85.6 billion) at June 30, 2023. Average current account deposits increased by 9.2% year-on-year in Ǫ1-2024. Average savings account deposits increased by 5.6% year-on-year in Ǫ1-2024.

With an addition of 174 branches during Ǫ1-2024, the Bank had a network of 6,074 branches, 16,731 ATMs and cash recycling machines at June 30, 2023.

Asset quality

The gross NPA ratio was 2.76% at June 30, 2023 compared to 2.81% at March 31, The net NPA ratio was 0.48% at June 30, 2023 compared to 0.48% at March 31, 2023 and 0.70% at June 30, 2022. The net addition to gross NPAs, excluding write-offs and sale, were ₹ 1,807 crore (US$ 220 million) in Ǫ1-2024 compared to ₹ 14 crore (US$ 2 million) in Ǫ4-2023. The gross NPA additions were ₹ 5,318 crore (US$ 648 million) in Ǫ1-2024 compared to ₹ 4,297 crore (US$ 524 million) in Ǫ4-2023. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 3,511 crore (US$ 428 million) in Ǫ1-2024 compared to ₹ 4,283 crore (US$ 522 million) in Ǫ4-2023. The Bank has written off gross NPAs amounting to ₹ 1,169 crore (US$ 142 million) in Ǫ1-2024. The provision coverage ratio on NPAs was 82.4% at June 30, 2023.

Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹ 3,946 crore (US$ 481 million) or 0.4% of total advances at June 30, 2023 from ₹ 4,508 crore (US$ 549 million) at March 31, 2023. The Bank holds provisions amounting to ₹ 1,224 crore (US$ 149 million) against these borrowers under resolution. In addition, the Bank continues to hold contingency provisions of ₹ 13,100 crore (US$ 1.6 billion) at June 30, 2023. The loan and non-fund based outstanding to performing corporate and SME borrowers rated BB and below reduced to ₹ 4,276 crore (US$ 521 million) at June 30, 2023 from ₹ 4,704 crore (US$ 573 million) at March 31, 2023. The loan and non-fund based outstanding of ₹ 4,276 crore (US$ 521 million) at June 30, 2023 includes ₹ 727 crore (US$ 89 million) to borrowers under resolution.

Capital adequacy

Including profits for Ǫ1-2024, the Bank’s total capital adequacy ratio at June 30, 2023 was 17.47% and Tier-1 capital adequacy was 16.76% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

Consolidated results

The consolidated profit after tax increased by 44.0% year-on-year to ₹ 10,636 crore (US$ 1.3 billion) in Ǫ1-2024 from ₹ 7,385 crore (US$ 900 million) in Ǫ1-2023.

Consolidated assets grew by 17.0% year-on-year to ₹ 2,039,897 crore (US$ 248.6 billion) at June 30, 2023 from ₹ 1,742,777 crore (US$ 212.4 billion) at June 30, 2022.

Key subsidiaries and associates

Value of New Business (VNB) of ICICI Prudential Life Insurance Company (ICICI Life) was ₹ 438 crore (US$ 53 million) in Ǫ1-2024 compared to ₹ 471 crore (US$ 57 million) in Ǫ1-2023. The annualized premium equivalent was ₹ 1,461 crore (US$ 178 million) in Ǫ1-2024 compared to ₹ 1,520 crore (US$ 185 million) in Ǫ1- 2023. The VNB margin was 30.0% in Ǫ1-2024 compared to 32.0% in FY2023. The profit after tax increased by 32.7% year-on-year to ₹ 207 crore (US$ 25 million) in Ǫ1-2024 from ₹ 156 crore (US$ 19 million) in Ǫ1-2023.

The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) grew by 18.9% year-on-year to ₹ 6,387 crore (US$ 778 million) in Ǫ1-2024 from ₹ 5,370 crore (US$ 655 million) in Ǫ1-2023. The combined ratio stood at 103.8% in Ǫ1-2024 compared to 104.1% in Ǫ1-2023. Excluding the impact of cyclone of ₹ 35 crore (US$ 4 million), the combined ratio was 102.9% for Ǫ1-2024. The profit after tax of ICICI General grew by 11.8% to ₹ 390 crore (US$ 48 million) in Ǫ1-2024 compared to ₹ 349 crore (US$ 43 million) in Ǫ1-2023.

The profit after tax of ICICI Prudential Asset Management Company, as per Ind AS, grew by 55.4% year-on-year to ₹ 474 crore (US$ 58 million) in Ǫ1-2024 from ₹ 305 crore (US$ 37 million) in Ǫ1-2023.

The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, was ₹ 271 crore (US$ 33 million) in Ǫ1-2024 compared to ₹ 274 crore (US$ 33 million) in Ǫ1-2023.

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

1. Excluding treasury gains

2. The Bank continues to hold contingency provision of ₹ 13,100 crore (US$ 1.6 billion) at June 30, 2023

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

Summary balance sheet

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, 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.