2012 08MoSL Conf Investorpresentation

7/22/2019 2012 08MoSL Conf Investorpresentation

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ICICI Group: Strategy &PerformanceAugust 2012


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222

Certain statements in these slides are forward-looking statements.These statements are based on management's current expectations andare subject to uncertainty and changes in circumstances. Actual resultsmay differ materially from those included in these statements due to avariety of factors. More information about these factors is contained inICICI Bank's filings with the US Securities and Exchange Commission.All financial and other information in these slides, other than financialand other information for specific subsidiaries where specificallymentioned, is on an unconsolidated basis for ICICI Bank Limited onlyunless specifically stated to be on a consolidated basis for ICICI BankLimited and its subsidiaries. Please also refer to the statement ofunconsolidated, consolidated and segmental results required by Indianregulations that has, along with these slides, been filed with the stockexchanges in India where ICICI Banks equity shares are listed and withthe New York Stock Exchange and the US Securities and ExchangeCommission, and is available on our website www.icicibank.com


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Our strategic pathFY2010

4Cs: CASA,Costs, CreditQuality & Capital

FY2011 Resume

balance sheetgrowth

FY2012onwards Accelerategrowth

Position thebalance sheetfor growth

Furtherimprovefunding mixthrough retailterm depositgrowth

Improve RoA:sharpreduction inprovisions

On the back ofimprovedliabilitystructure &RoA

Leveragecapital toincrease RoE

Based on long-term economic growthoutlook for the Indian economy


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4

Significant improvement in asset and funding profile


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5

Healthy credit growth

Diversified loan mix; CAGR of over 19 since March2010

1. Including impact of exchange rate movement

5 2 1 13 8 3 6 3 5 33

252 32 11 8

282 72 6

2 5

555

4

891 0

1 0

0500

1 , 0 0 01 , 5 0 02 , 0 0 02 , 5 0 03 , 0 0 0

M a r c h 201 0 M a r c h 2011 M a r c h 2012 J u n e 2 012

bion

U n s e c u re d re t a i l S e c u re d re t a i l D o m e s t ic co rp o rat eO v e rs e as b ran ch e s S M E R u ra l

1,812

2,164

2,537

2,684


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6

Pickup in retail loan growth

Steady improvement in retail loan growth driven bygrowth in secured portfolio

0.0

5.0

10.0

15.020.0

25.0

Q2-2012 Q3-2012 Q4-2012 Q1-2013

Home loans (exc l. bu ilder f inance) Au to loans Commerc ia l business loansOverall retai l

YoYgowh)


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8

Improvement in asset quality

Net NPA ratio well below industry average

1.9

0.90.6 0.6

0.00.20.40.60.81.01.21.41.61.82.0

March 2010 March 2011 March 2012 June 2012404550556065707580

N et N PA Provision ing coverage ratio


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Healthy financial performance


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Improvement in net interest margin

Steady improvement in domestic and internationalmargins

0 . 000 . 501 . 001 . 502 . 002 . 503 . 003 . 50

FY 2010 F Y 2011 FY 2012 Q 1-2013

D o m est ic N IM In te r n a t io n a l N IM O v er a l l N IM


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Improvement in operating efficiency

Improvement in cost ratios from FY2008 despitesignificant scale up in branches & employee strength

1.0

1.21.41.61.8

2.02.22.4

FY2008 FY 2009 FY2010 FY2011 FY 2012 Q1-2013

oaes

20.0

25.030.035.040.0

45.050.055.0

onome

C ost to income ratio Cost to assets

1,262Mar 2008

1,419Mar 2009

1,707Mar 2010

2,529Mar 2011

2,752o. of branchesMar 2012


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Decline in credit costs

Decline in credit costs reflecting improvement inasset quality

4 3 . 8 7

4 . 6 6

1 5 . 8 32 2 . 8 7

0510

1520253035404550

FY 201 0 FY 2011 FY 2012 Q 1-2013

bion

0 . 5 0

1 . 0 0

1 . 5 0

2 . 0 0

2 . 5 0P ro v is io n s C red it c o sts a s o f a v e r a g e lo a n s


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13

Key subsidiariesInsurance

Life insurance: healthy y-o-y increase involumes; profitability sustained General insurance: third party motor poollosses largely taken; company expected

to be profitable in FY2013

Life insurance: healthy y-o-y increase involumes; profitability sustained General insurance: third party motor poollosses largely taken; company expected

to be profitable in FY2013Assetmanagement& broking

Focus on maintaining market position Profitable businesses despite marketdevelopments Focus on maintaining market position Profitable businesses despite marketdevelopments

Overseasbankingsubsidiaries Consolidation strategy in view ofregulatory approach; need to optimisecapital structure Consolidation strategy in view ofregulatory approach; need to optimisecapital structure

Healthy increase in dividend from subsidiaries from 4.11 billion in FY2011 to 7.36 billion in FY2012


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Steady improvement in profitability

Focused execution of strategy resulting inimprovement in return ratios

7 . 99 . 6

1 1 . 1 1 1 . 81 3 . 0 1 3 . 3

1 1 . 69 . 6

1 . 1 31 . 3 4

1 . 5 0 1 . 5 8

6 . 07 . 08 . 09 . 0

1 0 . 01 1 . 01 2 . 01 3 . 01 4 . 0

FY 20 10 FY 20 11 FY 2 012 Q 1-20 13

eturnonequity

1 . 0 01 . 2 01 . 4 01 . 6 01 . 8 02 . 0 0

eturnonassets

S ta n d a lo n e Ro E C o n so lid a ted Ro E S ta n d a lo n e Ro A


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Increased branch network to 2,755 at June 30, 2012;largest network among private sector banks Supplemented by over 9,300 ATMs

Investing in enabling infrastructureLarge physical footprint

Expanding internet presence through social networkingsites Advanced mobile banking platform Launch of 24x7 electronic branch Leveraging advances in mobility to improve customerexperience Enhanced ATM functionality Almost a Branch

Continued innovation in electronic channels


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Key priorities going forward


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Focus on asset growth in target segments

Domesticportfolio

Targeting to accelerate growth toslightly above system levels Driven by pick up in retail credit Corporate credit growth likely tosustain driven by working capitaldemand and draw down of existingsanctions

Overseasloans

Growth to be calibrated toconditions in global debt markets Expected inflows from asset

repayments adequate to meetliability maturities for FY2013


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Sustaining improvement in profitabilityContinued focus on funding profileSustaining improved net interest marginsImprovement in fee income growthContinued focus on operating efficiencyMaintaining asset quality

Resulting in further increase in return ratios


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Thank you


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2020

Financial results


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Q1-2013: Performance highlights (1/2) 36.3% increase in standalone profit after tax from13.32 bn in Q1-2012 (April-June 2011) to 18.15 bnin Q1-2013 (April-June 2012)

Net interest income increased by 32.4% year-on-year; net interest margin at 3.01% compared to2.61% in Q1-2012 Domestic margin at 3.32% in Q1-2013 compared to2.94% in Q1-2012

14.4% year-on-year increase in non-interest incomedriven by increased dividends from subsidiaries First equity dividend of 1.33 billion received fromICICI Bank Canada

24.6% increase in consolidated profit after tax from16.67 bn in Q1-2012 to 20.77 bn in Q1-2013


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Advances increased by 21.6% year-on-year to2,684.30 billion at June 30, 2012 Retail advances increased by 10.3% year-on-year to

911.74 billion at June 30, 2012 compared to 7.7%year-on-year growth at March 31, 2012 Average CASA ratio maintained at 39.1% in Q1-

2013 Period end CASA ratio at 40.6% at June 30, 2012

Net NPA ratio decreased to 0.61% at June 30, 2012from 0.62% at March 31, 2012 (June 30, 2011:0.91%)

Q1-2013: Performance highlights (2/2)


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D o m e s t i cc o r p o r a t e2 5 . 0

O ve r s e a sb r a n c h e s2 8 . 0 Reta i lb u s i n e s s

g r o u p3 4 . 0

R u r a l7 . 7

S M E5 . 3

Domesticcorporate23.0

Overseasbranches

27.4 Retailbusinessgroup35.5Rural

8.8

SME5.3

Composition of total loan book

1. Retail business group includes builder loans anddealer funding


March 31, 2012

Total loan book: 2,537 bn

1

2

June 30, 2012

2

1

Total loan book: 2,684 bn


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Vehicleloans29.5 Home

64.0

Personalloans1.1

Othersecured

2.6

Creditcards2.8

Composition of retail loan book

1. March 31, 2012 :Vehicle loans includes auto loans 9.7%,commercial business 19.7%

2. June 30, 2012 :Vehicle loans includes auto loans 10.0%,commercial business 18.3%

Total retail loan book: 901 bn

March 31, 2012

V e h i c l el o a n s2 8 . 3

H o m e6 5 . 2

P e r s o n a ll o a n s1 . 1

O t h e rs e c u r e d

2 . 6

C r e d i tc a r d s2 . 8

Total retail loan book: 912 bn

June 30, 2012


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Asset quality and provisioning

Gross retail NPLs at 59.44 bn and net retail NPLs at 6.82bn at June 30, 2012 Provisioning coverage ratio of 80.6% at June 30, 2012computed in accordance with RBI guidelines Net restructured loans of 41.72 bn at June 30, 2012 Outstanding general provision on standard assets: 15.56bn at June 30, 2012

( billion)

0.62%18.9476.6995.63

March 31,

2012

0.61%19.4179.7099.11

June 30,

2012

0.91%23.5177.11

100.62June 30,

2011

Net NPA ratioNet NPAsLess: Cumulative provisionsGross NPAs


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Key ratios


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Key ratios (consolidated)13.03.31.72.0

Return on average networth1,2(consolidated)

53062.8

Q4-20123

49457.9

Q1-2012

55572.0

Q1-2013

53066.3

FY20123

Book value ()Weighted avg EPS ()2

(Percent)

1. Based on quarterly average networth2. Annualised for all interim periods3. Includes impact of additional third party motor pool losses of 5.03 bn in FY2012


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Key ratios (standalone)11.11.82.6.6eturn on average networth1

1.81.84.98.75ost to average assets143.541.632.53.0152466.4

1.70

Q4-2012

1.50.58.29eturn on average assets1

43.50.61.9ASA ratio44.739.02.6149046.5

Q1-2012

41.832.53.0154763.1

Q1-2013

42.936.92.7352456.1

FY2012

Fee to income

Book value ()

Cost to income

Net interest margin1Weighted avg EPS ()1

(Percent)

1. Annualised for all interim periods


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Unconsolidated financials


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Profit & loss statement

32.0%

16.7%25.1%

--

4.414.4%32.4%

Q1-o-Q1

growth

29.49

21.2450.73

(0.21)2.54

16.4718.8031.93

Q1-

2013

182.3653.3340.54Total income

103.8631.1122.34Operating profit

(0.13).580.25)Treasury income

78.50

8.0867.0775.02

107.34FY2012

22.22

3.4217.2822.2831.05

Q4-

2012

18.20

0.9015.7816.4324.11

Q1-

2012

Operating expenses1

- Other income- Fee incomeNon-interest incomeNII

( billion)

1. Includes commissions paid to direct marketing agents (DMAs) for origination of retailloans and lease depreciation


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Profit & loss statement

18.15

6.6824.83

4.66129.49

Q1-

2013

36.3%

49.1%39.5%

2.6%32.0%

Q1-o-Q1

growth

64.6519.0213.32Profit after tax

23.38.40.48ax88.0326.4217.80Profit before tax

103.8631.1122.34Operating profit

4.54

Q1-

2012

4.69

Q4-

2012

15.83

FY

2012

Provisions

( billion)

1. Includes general provisions on standard assets of 0.76 billion


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Balance sheet: Assets

4,834.94

236.562,684.30

179.43124.53

831.161,551.32

362.76June 30,

2012

20.081.0349.51RIDF1 and related

14.669.3925.35SLR investments

-24.5324.53- Equity investment insubsidiaries

4,152.15

200.722,206.93

1,395.56348.94

June 30,

2011

11.2%,595.60nvestments

4,736.47

241.302,537.28

362.29March 31,

2012

16.4%

17.9%21.6%

4.0%Y-o-Y

growth

Total assets2

Fixed & other assetsAdvances2

Cash & bank balances

( billion)

Net investment in security receipts of asset reconstruction companies was 15.00 bnat June 30, 2012 Net credit derivative exposure (including off balance sheet exposure) was US 186 mnat June 30, 2012 compared to US 201 mn at March 31, 2012 and US 477 mn at June30, 2011

Underlying comprises Indian corporate credits1. Rural Infrastructure Development Fund



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Equity investment in subsidiaries

1.87.87.87CICI Securities Limited

124.53

0.140.050.611.58

3.0011.1213.4823.2533.5035.93

March 31,

2012

124.53

0.140.050.611.58

3.0011.1213.4823.2533.5035.93

June 30,

2012

13.48CICI Lombard General Insurance

124.53

0.140.050.611.58

3.0011.1223.2533.5035.93

June 30,

2011

ICICI Home FinanceICICI Bank UK

ICICI AMC

ICICI Bank Canada

ICICI Bank Eurasia LLC

ICICI Securities Primary Dealership

OthersTotal

ICICI Venture Funds Mgmt

ICICI Prudential Life Insurance

( billion)


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Balance sheet: Liabilities

4,834.94

154.691,372.07

307.54779.23

2,677.94618.71

11.53630.24

June 30,

2012

16.660.4668.58Savings3.349.7397.77Current

4,152.15

140.251,140.51

2,306.78553.09

11.52564.61

June 30,

2011

4,736.47

175.771,401.65

2,555.00592.52

11.53604.05

March 31,

2012

16.4%

10.3%20.3%

16.1%11.9

0.111.6%

Y-o-Y

growth

Borrowings1,2

Total liabilities2

Other liabilities

Deposits- Reserves- Equity capital

Net worth

( billion)

Credit/deposit ratio of 76.6% on the domestic balancesheet at June 30, 2012

1. Borrowings include preference shares amounting to 3.50 bn2. Including impact of exchange rate movement


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Composition of borrowings

1,401.65

644.6217.24

661.87377.382362.40739.78

March 31,

2012

1,140.51

577.6115.14

592.75200.66347.10547.76

June 30,

2011

728.34verseas3281.832- Other borrowings361.90Capital instruments1

1,372.07

709.4918.85

643.73June 30,

2012

Total borrowings3

- Other borrowings- Capital instruments

Domestic

Capital instruments constitute 56.2% of domestic borrowings

1. Includes preference share capital 3.50 bn2. Transactions with RBI under LAF are accounted for as borrowing and lendingtransactions for the quarters ended March 31, 2012 and June 30, 2012. Thesewere previously accounted for as purchase and sale transactions3. Including impact of exchange rate movement

( billion)


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Capital adequacy (Basel II)

987.9742.6318.82Off balance sheet3,132.13,043.23,656.02On balance sheet

3,985.86232.95505.18738.13` bn

March 31, 2012

5.8412.6818.52%

%

5.7612.7818.54%

%

4,120.10237.52526.39763.91` bn

June 30, 2012

3,474.84215.74464.35680.09` bn

June 30, 2011

6.2113.3619.57%

%

Risk weighted assets- Tier II- T ier I

Total Capital

Basel II


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Overseas subsidiaries


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L o a n s &a d v a n c e s

5 9 . 3

A s s e t b a c k e ds e c u r i t i e s

2 . 5

O the r as s e ts &i n v e s t m e n t s

5 . 4I n d i a l i n k e di n v e s t m e n t s

4 . 9 C a s h & l i q u i ds e c u r i t i e s

2 3 . 6

B o n d s / n o t e s o ff i n a n c i a l

i ns t i tu t io ns4 . 3

L o a n s &a d v a n c e s

5 9 . 8

A s s e t b a c k e ds e c u r i t i e s

2 . 1

O t h e r a s s e t s &i n v e s t m e n t s

5 . 5I n d i a l i n k e di n v e s t m e n t s

5 . 8 C a s h & l i q u i ds e c u r i t i e s

2 3 . 6

B o n d s / n o t e s o ff i n a n c i a l

i ns t i tu t io ns3 . 2

38

ICICI Bank UK asset profile

1. Includes cash & advances to banks, T Bills2. Includes India-linked credit derivatives of US 14 mn at June 30, 2012 (US14 mn at March 31, 2012)3. Includes securities re-classified to loans & advances

Total assets: USD 4.1 bn

March 31, 2012

1

3

2

Total assets: USD 3.9 bn

June 30, 2012

2

1

3


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ICICI Bank UK liability profile

Profit after tax of US 4.4 mn in Q1-2013 compared to US 5.0 mn in Q1-2012 Capital adequacy ratio at 34.1% Proportion of retail term deposits in total deposits

at 61% at June 30, 2012

Total liabilities: USD 4.1 bn

March 31, 2012

Total liabilities: USD 3.9 bn

June 30, 2012

D e m a n dd e p o s i t s

1 6 . 2

S y n d i c a t e dl o a n s , re p o &

i n t e r b a n kb o r r o w i n g s

1 2 . 0

O t he rl i a b i l i t i e s

5 . 6

T e r m d e p o s i ts3 8 . 0

N e t w o r th1 8 . 6

L o n gte r m d e b t

9 . 6Demanddeposits

18.3

Syndicatedloans &

interbankborrowings

7.8

Otherl iabi l i t ies

6.6

Term depo sits40.8

Net worth17.4

Longterm deb t9.1


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Term depo sits38.6


1.0

Demanddeposits

16.3

Net worth19.1

Borrowings25.0

Term deposits36.2


1.3

Demanddeposits

16.2

Net worth18.6

Borrowings27.7

41

ICICI Bank Canada liability profile

Total liabilities: CAD 5.2 bn Profit after tax of CAD 11.9 mn in Q1-2013 compared to CAD 12.3 mn in Q1-2012 Capital adequacy ratio at 31.8%1. As per IFRS, proceeds of CAD 1,236 mn and CAD 1,395 mn fromsale of securitised portfolio considered as part of borrowings atMarch 31, 2012 and June 30, 2012 respectively

March 31, 2012

1

June 30, 2012

Total liabilities: CAD 5.3 bn

1


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Loans tocorporates &

banks59.9

Retail loans18.0

Cash & cashequivalents

17.9

Corporatebonds2.6

Other assets &investments

1.6

Loans tocorporates &

banks52.1

Retail loans14.9

Cash & cashequivalents

28.4

Promissorynotes1.4

Corporatebonds2.3

Other assets &investments

0.9

42

ICICI Bank Eurasia asset profile

1. Includes cash & call placements with banks,balances with central bank, government securitiesand nostro balances

Total borrowings of USD 134 mn at June 30, 2012 Capital adequacy of 35.2% at June 30, 2012 Net profit of USD 1.2 mn in Q1-2013 compared to a loss of USD 0.3 mn in Q1-2012

1

Total assets: USD 300 mn

March 31, 2012 June 30, 2012

Total assets: USD 229 mn

1


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Domestic subsidiaries


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I n v e s t m e n t s a n d o t h e ra s s e t s1 2 . 5

L o ans8 7 . 5

ICICI Home Finance

Profit after tax of 490.0 mn in Q1-2013 compared to 703.8 mn in Q1-2012 Capital adequacy ratio of 28.7% at June 30, 2012 Net NPA ratio: 1.2% At June 30, 2012: Networth 14.20 bn; Deposits 5.17 bn and Borrowings49.26 bn

Total assets: 74.22 bn

March 31, 2012

Loans89.0

Investme nts and otherassets11.0

June 30, 2012

Total assets: 72.55 bn


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ICICI Life ( billion)

1. Expense ratio: All expenses (including commission and excluding unit costs) / (Totalpremium 90% of Single Premium)2. Source: IRDA (based on new business retail weightedpremium)

Sustained leadership in private space with a market share of5.3%2 for Q1-201321.8%704.35

3.4915.0%

0.855.70

23.8516.647.21

Q1-2013

17.9%707.7113.84

16.0%5.00

31.18140.2295.8044.41

FY2012Q1-2012

New business received premium 7.28Renewal premium 19.03Total premium 26.31Annualised premium equivalent (APE) 4.43New Business Profit (NBP) 0.71NBP margin 16.0%Statutory profit/(loss) 3.39Assets Under Management 674.47Expense ratio1 16.8%


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ICICI General

1. Excluding remittances from third party motor pool (the Pool) and including premium onreinsurance accepted2. IRDA through its orders dated December 23, 2011, January 3, 2012 and March 22, 2012 haddirected the dismantling of the Pool on a clean cut basis and advised recognition of Poolliabilities as per the loss ratios estimated by GAD UK (GAD Estimates) for all underwritingyears commencing from the year ended March 31, 2008 to year ended March 31, 2012, withthe option to recognise the same over a three year period. ICICI General had decided torecognise the additional liabilities of the Pool in FY2012 and therefore, the loss after tax ofICICI General of 4.16 bn for FY2012 includes the impact of additional Pool losses of 6.85bn

3. Source: IRDA

0.8315.32

Q1-2013

(4.16)253.58

FY2012

0.40AT13.03ross premium1

Q1-2012

Market share based on gross written premium was 8.7%3 forQ1-2013

( billion)


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Other subsidiaries

0.280.060.330.12

Q1-2013

0.880.680.860.77

FY2012

0.250.050.230.10

Q1-2012

ICICI Prudential Asset Management

ICICI Securities LtdProfit after tax

ICICI VentureICICI Securities Primary Dealership

24.6% increase in consolidated profit after tax from 16.67bn in Q1-2012 to 20.77 bn in Q1-2013 Consolidated return on average net worth for Q1-2013 at13.3% compared to 12.0% for Q1-2012 (13.0% for FY2012)

( billion)

Documents

2012 08MoSL Conf Investorpresentation