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ICICI Bank Performance Review – Quarter ended June 30, 2009

Posted by Dana in July 26th 2009

* 31% increase in standalone profit before tax to Rs. 1,205 crore for the quarter ended June 30, 2009 from Rs. 922 crore for the quarter ended June 30, 2008
* 21% increase in standalone profit after tax to Rs. 878 crore for the quarter ended June 30, 2009 from Rs. 728 crore for the quarter ended June 30, 2008
* Current and savings account (CASA) ratio increased to 30.4% at June 30, 2009 from 27.6% at June 30, 2008
* Strong capital adequacy ratio of 17.4% and Tier-1 capital adequacy ratio of 13.1%; Tier-1 capital adequacy ratio highest among large Indian banks
* 68% increase in consolidated profit after tax to Rs. 1,035 crore for the quarter ended June 30, 2009 from Rs. 617 crore for the quarter ended June 30, 2008

The Board of Directors of ICICI Bank Limited (NYSE: IBN) at its meeting held at Mumbai, approved the audited unconsolidated accounts and the unaudited consolidated accounts of the Bank for the quarter ended June 30, 2009.

Profit & loss account

* Profit before tax increased 31% to Rs. 1,205 crore (US$ 252 million) for the quarter ended June 30, 2009 (Q1-2010) from Rs. 922 crore (US$ 192 million) for the quarter ended June 30, 2008 (Q1-2009).
* Profit after tax increased 21% to Rs. 878 crore (US$ 183 million) for Q1-2010 from Rs. 728 crore (US$ 152 million) for Q1-2009.
* The net interest margin was maintained at 2.4%. Net interest income for Q1-2010 was Rs. 1,985 crore (US$ 414 million) compared to Rs. 2,090 crore (US$ 436 million) for Q1-2009. The decrease in net interest income was mainly due to the decrease in advances by 11.6%.
* The Bank earned treasury income of Rs. 714 crore (US$ 149 million) in Q1-2010. The Bank positioned its treasury strategy to benefit from the opportunities in equity and fixed income markets during the quarter.
* Fee income for Q1-2010 at Rs. 1,319 crore (US$ 275 million) was maintained at about the same level as for the quarter ended March 31, 2009 (Q4-2009). The lower level of fee income compared to Q1-2009 was due to reduced investment and mergers & acquisition activity in the corporate sector and lower level of fees from distribution of retail financial products, reflecting the continued impact of the adverse global economic conditions on the operating environment.
* Operating expenses (including direct marketing agency expenses) decreased 20% to Rs. 1,494 crore (US$ 312 million) in Q1-2010 from Rs. 1,862 crore (US$ 389 million) in Q1-2009. The Bank achieved a reduction in the cost/average asset ratio to 1.6% for Q1-2010 from 1.9% for Q1-2009, despite the reduction in total asset.