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ICICI Bank’s profit after tax grew by 50% year-on-year to ₹ 6,905 crore (US$ 874 million) in Q1-2023

ICICI BANK Q1-2023 PERFORMANCE REVIEW

ICICI Bank Q1-2023 performance

 

ICICI Bank Q1-2023 Performance Review: Quarter ended June 30, 2022

India’s second-largest private sector bank in terms of market capitalization as on 31st July 2022- ICICI Bank, has made a significant jump in net profit after tax YoY basis in the first quarter ended June 30- FY 2022-23. Profit after tax grew by 50% year-on-year to ₹6,905 crores (US$ 874 million) in Q1-2023 compared to ₹4,616 crores in Q1-2022.

ICICI Bank had a network of 5,534 branches and 13,379 ATMs on June 30, 2022. 

Key Highlights of ICICI Bank Q1-2023 Performance
  • Core operating profit (profit before provisions and tax, excluding treasury income) grew by 19% year-on-year to ₹10,273 crores (US$ 1.3 billion) in the quarter ended June 30, 2022 (Q1-2023)
  • Net interest income grew by 21% year-on-year in Q1-2023
  • Profit after tax grew by 50% year-on-year to ₹ 6,905 crores (US$874 million) in Q1-2023
  • Total period-end deposits grew by 13% year-on-year to ₹1,050,349 crore (US$ 133.0 billion) on June 30, 2022
  • The average current account and savings account (CASA) ratio was 45.8% in Q1-2023
  • The domestic loan portfolio grew by 22% year-on-year
  • Net NPA ratio declined to 0.70% at June 30, 2022 from 0.76% at March 31, 2022
  • The provisioning coverage ratio on non-performing assets was 79.6% on June 30, 2022
  • Including profits for Q1-2023, the total capital adequacy ratio was 18.74% and the Tier-1 capital adequacy ratio was 17.95%, on a standalone basis, on June 30, 2022
ICICI Bank Q1-2023 Performance Review- Profit and Loss Account (Income Statement) 
  • The core operating profit (profit before provisions and tax, excluding treasury income) increased by 19% year-on-year to ₹ 10,273 crores (US$ 1.3 billion) in Q1-2023 from ₹ 8,605 crores (US$ 1.1 billion) in the quarter ended June 30, 2021 (Q1-2022); excluding dividend income from subsidiaries/associates, core operating profit grew by 21% year-on-year in Q1-2023.
  • Net interest income (NII) increased by 21% year on year to ₹ 13,210 crores (US$ 1.7 billion) in Q1-2023 from ₹ 10,936 crores (US$ 1.4 billion) in Q1-2022.
  • The net interest margin was 4.01% in Q1-2023 compared to 3.89% in Q1-2022 and 4.00% in the quarter ended March 31, 2022 (Q4-2022).
  • Non-interest income, excluding treasury income, increased by 25% year-on-year to ₹ 4,629 crores (US$ 586 million) in Q1-2023 from ₹ 3,706 crores (US$ 469 million) in Q1-2022.
  • Fee income grew by 32% year-on-year to ₹ 4,243 crores (US$ 537 million) in Q1-2023 from ₹ 3,219 crores (US$ 408 million) in Q1-2022. Fees from retail, rural, business banking and SME customers constituted about 79% of total fees in Q1-2023.
  • There was a treasury gain of ₹ 36 crores (US$ 5 million) in Q1-2023 compared to a gain of ₹ 290 crore (US$ 37 million) in Q1-2022.
  • Provisions (excluding provision for tax) declined by 60% year-on-year to ₹ 1,144 crores (US$ 145 million) in Q1-2023 from ₹ 2,852 crores (US$ 361 million) in Q1-2022. Provisions for Q1-2023 include a contingency provision of ₹ 1,050 crores (US$ 133 million) made on a prudent basis.
  • The profit before tax grew by 52% year-on-year to ₹ 9,165 crores (US$ 1.2 billion) in Q1-2023 from ₹ 6,043 crores (US$ 765 million) in Q1-2022
  • On a standalone basis, the profit after tax grew by 50% year-on-year to ₹ 6,905 crores (US$ 874 million) in Q1-2023 from ₹ 4,616 crores (US$ 585 million) in Q1-2022
Key Performance Parameter Reviews
Growth in digital and payments platforms
  • In December 2020, the Bank expanded its mobile banking app, Mobile, to iMobile Pay which offers payment and banking services to customers of any bank. There have been 73 lakh activations of iMobile Pay from non-ICICI Bank account holders as of June 30, 2022.
  • The value of credit card spending in Q1-2023 grew by 13% sequentially and was two times the value of spending in Q1-2022. This growth is driven by improvement in discretionary spending, higher activation rate through digital onboarding of customers, including Amazon Pay credit cards, and diversification through commercial cards.
  • The business banking and SME franchise continue to grow on the back of digital offerings and platforms like InstaBIZ. The value of financial transactions on InstaBIZ grew by about 57% year-on-year in Q1-2023.
  • The value of the Bank’s merchant acquiring transactions through UPI in Q1- 2023 grew by 27% over Q4-2022 and was 2.3 times the value of transactions in Q1-2022.
  • The Bank is the market leader in electronic toll collections through FASTag. The Bank had a market share of about 32% by value in electronic toll collections through FASTag in Q1-2023, with a 53% year-on-year growth in collections.
Credit growth
  • The retail loan portfolio grew by 24% year-on-year and 5% sequentially and comprised 53.1% of the total loan portfolio on June 30, 2022. Including non-fund outstanding, the retail portfolio was 44.0% of the total portfolio at June 30, 2022.
  • The rural portfolio grew by 8% year-on-year and was flat sequentially at June 30, 2022.
  • The business banking portfolio grew by 45% year-on-year and 7% sequentially at June 30, 2022. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 32 million), grew by 32% year-on-year and declined by 3% sequentially at June 30, 2022.
  • The domestic wholesale banking portfolio grew by 14% year-onyear and 4% sequentially at June 30, 2022.
  • The domestic advances grew by 22% year-on-year and 4% sequentially at June 30, 2022.
  • Total advances increased by 21% year-on-year and 4% sequentially to ₹ 895,625 crore (US$ 113.4 billion) at June 30, 2022.
Deposit growth

Total period-end deposits increased by 13% year-on-year to ₹ 1,050,349 crore (US$ 133.0 billion) on June 30, 2022. Average current account deposits increased by 23% year-on-year and 3% sequentially in Q1-2023. Average savings account deposits increased by 19% year-on-year and 4% sequentially in Q1-2023. Period-end term deposits increased by 11% year on year to ₹ 558,235 crore (US$ 70.7 billion) on June 30, 2022.

Asset quality

The gross NPA ratio declined to 3.41% on June 30, 2022 from 3.60% on March 31, 2022, and 5.15% on June 30, 2021. The net NPA ratio declined to 0.70% on June 30, 2022, from 0.76% on March 31, 2022, and 1.16% on June 30, 2021. During Q1-2023, there were net additions of ₹ 382 crore (US$ 48 million) to gross NPAs compared to net deletions of ₹ 489 crore (US$ 62 million) in Q4-2022 and net additions of ₹ 3,604 crore (US$ 456 million) in Q1-2022.

The gross NPA additions were ₹ 5,825 crore (US$ 738 million) in Q1-2023 compared to ₹ 4,204 crore (US$ 532 million) in Q4-2022. Recoveries and upgrades of NPAs, excluding write-offs and sales, were ₹ 5,443 crore (US$ 689 million) in Q1-2023 compared to ₹ 4,693 crore (US$ 594 million) in Q4-2022. The gross NPAs written-off in Q1-2023 were ₹ 1,126 crore (US$ 143 million). The provisioning coverage ratio on NPAs was 79.6% on June 30, 2022.

Capital adequacy

Including profits for Q1-2023, the Bank’s total capital adequacy ratio on June 30, 2022, was 18.74% and Tier-1 capital adequacy was 17.95% compared to the minimum regulatory requirements of 11.70% and 9.70% respectively.

US$ amounts represent convenience translations at US$1= ` 78.97

Source: ICICI Bank financial results

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