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ICICI Bank's Earnings Up
by Zacks Equity ResearchApril 26, 2010 | Comments : 0 Recommended this article: (0)
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ICICI Bank Limited (IBN - Analyst Report) reported 2010 fiscal fourth quarter and full fiscal year (ended March 31) last week. For the fourth quarter, profit increased 35% year over year to INR10.06 billion (US$224 million). For full fiscal year 2010, ICICI Bank reported a profit of INR40.25 billion (US$896 million), up 7% year over year.
Quarterly results were primarily driven by an increase in fee income, a drop in loss provisions and reduced operating expenses. Asset quality showed signs of improvement while capital levels remained good.
ICICI Bank reported an improvement in asset quality. Net non-performing assets were down 11.7% sequentially and 15.5% year over year to INR39.01 billion (US$869 million) as of March 31, 2010. The bank's net non-performing asset ratio was at 1.87%, down 32 basis points sequentially. In addition, there was a 1% sequential and 9% year-over-year decrease in the provision for losses to INR9.9 billion (US$220 million).
Net interest income decreased approximately 5% year over year to INR20.35 billion (US$453 million). Fee income increased 13% year over year to INR15.21 billion (US$339 million).
The company reported a decrease in both its loan book and total deposits. The loan book was down to INR1812.06 billion (US$40.4 billion) as of Mar 31, 2010 from INR 2,183.11 billion (US$48.6 billion) as of Mar 31, 2009, reflecting repayments from the retail loan portfolio and the loan portfolio of overseas branches.
Total deposits were down to INR2,020.17 billion (US$45.0 billion) as of Mar 31, 2010, compared with INR2,183.48 billion (US$48.6 billion) as of Mar 31, 2009.
However, ICICI Bank has reported growth in current and savings account (CASA) deposits and an increase in CASA ratio. CASA deposits grew 34% year over year to INR842.16 billion (US$18.8 billion) as of Mar 31, 2010. The CASA ratio increased to 41.7% as of Mar 31, 2010 from 28.7% as of Mar 31, 2009.
Operating expenses were well controlled and reported a decrease of 6% year-over year to INR15.04 billion (US$335 million).
As of Mar 31, 2010, ICICI Bank's capital adequacy as per the Reserve Bank of India's Basel II norms was 19.4% and Tier-1 capital adequacy was 14.0%, well above the requirements of 9.0% and 6.0%, respectively.
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