Performance Review: Quarter ended June 30, 2021

July 24, 2021

• Core operating profit (profit before provisions and tax, excluding treasury income) grew by 23% year-on-year to ₹ 8,605 crore (US$ 1.2 billion) in the quarter ended June 30, 2021 (Q1-2022)

• Profit after tax grew by 78% year-on-year to ₹ 4,616 crore (US$ 621 million) in Q1-2022

• Total deposits grew by 16% year-on-year to ₹ 926,224 crore (US$ 124.6 billion) at June 30, 2021

  • 24% year-on-year growth in average current and savings account (CASA) deposits in Q1-2022; average CASA ratio was 44% in Q1-2022

  • Term deposits grew by 9% year-on-year at June 30, 2021

• Domestic loan portfolio grew by 20% year-on-year

  • Retail loan portfolio grew by 20% year-on-year

• The net NPA ratio was 1.16% at June 30, 2021 compared to 1.14% at March 31, 2021

• Provision coverage ratio was robust at 78.2% at June 30, 2021, higher than 77.7% at March 31, 2021

• At June 30, 2021, the Bank held Covid-19 related provisions of ₹ 6,425 crore (US$ 864 million)

• Total capital adequacy ratio was 19.27% and Tier-1 capital adequacy ratio was 18.24% on a standalone basis at June 30, 2021 (including profits for Q1-2022)

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, 2021 (Q1-2022). The statutory auditors have conducted a limited review and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended June 30, 2021.

Profit & loss account

• The core operating profit (profit before provisions and tax, excluding treasury income) increased by 23% year-on-year to ₹ 8,605 crore (US$ 1.2 billion) in Q1-2022 from ₹ 7,014 crore (US$ 944 million) in the quarter ended June 30, 2020 (Q1-2021)

• Net interest income (NII) increased by 18% year-on-year to ₹ 10,936 crore (US$ 1.5 billion) in Q1-2022 from ₹ 9,280 crore (US$ 1.2 billion) in Q1-2021

• The net interest margin was 3.89% in Q1-2022 compared to 3.84% in the quarter ended March 31, 2021 (Q4-2021) and 3.69% in Q1-2021

• Non-interest income, excluding treasury income, increased by 56% year-on-year to ₹ 3,706 crore (US$ 499 million) in Q1-2022 from ₹ 2,380 crore (US$ 320 million) in Q1-2021

• Fee income grew by 53% year-on-year to ₹ 3,219 crore (US$ 433 million) in Q1-2022 from ₹ 2,104 crore (US$ 283 million) in Q1-2021. Fees from retail, business banking and SME customers increased by 65% year-on-year and constituted about 76% of total fees in Q1-2022

• Treasury income was ₹ 290 crore (US$ 39 million) in Q1-2022 compared to ₹ 3,763 crore (US$ 506 million) in Q1-2021. The treasury gain in Q1-2021 included gains of ₹ 3,036 crore (US$ 408 million) from sale of shares of subsidiaries

• Provisions (excluding provision for tax) were ₹ 2,852 crore (US$ 384 million) in Q1-2022 compared to ₹ 7,594 crore (US$ 1.0 billion) in Q1-2021. During Q1-2022, the Bank has changed its policy on non-performing loans to make it more conservative. The change in policy resulted in higher provision on non-performing advances amounting to ₹ 1,127 crore (US$ 152 million) for aligning provisions on outsanding loans to the revised policy

• Based on its current assessment of the portfolio, the Bank wrote back Covid-19 provisions amounting to ₹ 1,050 crore (US$ 141 million) made in earlier periods

• At June 30, 2021, the Bank held Covid-19 related provision of ₹6,425 crore (US$ 864 million)

• The profit before tax grew by 90% year-on-year to ₹ 6,043 crore (US$ 813 million) in Q1-2022 from ₹ 3,183 crore (US$ 428 million) in Q1-2021

• On a standalone basis, the profit after tax grew by 78% year-on-year to ₹ 4,616 crore (US$ 621 million) in Q1-2022 compared to ₹ 2,599 crore (US$ 350 million) in Q1-2021

Growth in digital and payments platforms

In December 2020, the Bank had expanded its state-of-the-art mobile banking app, iMobile, to iMobile Pay which offers payment and banking services to customers of any bank. There have been over 25 lakh activations of iMobile Pay by non-ICICI Bank account holders within six months of its launch. The transactions by non-ICICI Bank account holders in terms of value and volume have grown by eight times and seven times, respectively, in June 2021 compared to March 2021. The value of transactions through the ‘Pay to Contact’ feature, which enables users to easily transfer money to any payment app or digital wallet via UPI, has grown by over three times in June 2021 compared to March 2021.

During Q1-2022, the Amazon Pay credit card became the fastest co-branded credit card in the country to cross the milestone of issuing 2.0 million cards. The Bank recently launched a co-branded credit card with Hindustan Petroleum Corporation Limited (HPCL) called ‘ICICI Bank HPCL Super Saver Credit Card’. This card offers best-in-class rewards and benefits to customers on their everyday spends on fuel as well as other categories.

The business banking and SME franchise continues to grow on the back of digital offerings and platforms like InstaBIZ. InstaBIZ offers various services such as instant overdraft facility, payment of Goods and Services Tax (GST), foreign exchange deal booking, business loans based on revenues reported in GST returns, automatic bank reconciliations and inward and outward remittances. The Bank’s supply chain platform enables corporates to seamlessly manage their supply chain financing and payments, collection and reconciliation requirements of their dealers and vendors in a convenient and paperless manner. The financial transactions on InstaBIZ and supply chain platforms have grown steadily in the past few quarters.

In the Unified Payment Interface (UPI) space, the Bank’s strategy is to participate directly through the Bank’s own platforms as well as partner with third party players, in both the peer-to-peer and payment-to-merchant segments. The value of the Bank’s merchant acquiring transactions through UPI has more than doubled year-on-year and grew by 32% sequentially in Q1-2022.

The value of mobile banking transactions increased by 117% year-on-year to ₹ 349,072 crore (US$ 47 billion) in Q1-2022. Digital channels like internet, mobile banking, PoS and others accounted for over 90% of the savings account transactions in Q1-2022. The Bank is a market leader in electronic toll collections through FASTag. The Bank had a market share of 36% by value in the electronic toll collections through FASTag in Q1-2022, with a 146% year-on-year growth in collections.

In Q1-2022, the Bank launched a digital platform called Merchant Stack, which 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 and instant settlement of point-of-sale transactions, among others.

In Q1-2022, the Bank introduced ICICI STACK for Corporates which is a comprehensive set of digital banking solutions for corporates and their entire ecosystem of promoters, employees, dealers, and vendors. These solutions enable corporates to seamlessly meet all banking requirements of their ecosystems in a frictionless manner.

Operating review

Retail disbursements moderated in April and May due to the containment measures in place across various aparts of the country. With the gradual easing of restrictions, disbursements picked up in June and July. Credit card spends declined in April and May and increased to March levels in June, driven by spends in categories like consumer durables, utilities, education and insurance. Credits received in the overdraft accounts of business banking and SME customers also picked up in June and July after declining in April and May.

Credit growth

The retail loan portfolio grew by 20% year-on-year and comprised 61.4% of the total loan portfolio at June 30, 2021. Including non-fund outstanding, retail was 50.4% of the total portfolio at June 30, 2021. The business banking portfolio grew by 53% year-on-year and was 5.4% of total loans at June 30, 2021. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 34 million), grew by 43% year-on-year and constituted 4.0% of total loans at June 30, 2021. Growth in the domestic corporate portfolio was about 11% year-on-year driven by disbursements to higher rated corporates and public sector undertakings across various sectors. The growth in performing domestic corporate portfolio, excluding the builder portfolio, was 15% year-on-year at June 30, 2021. The domestic advances grew by 20% year-on-year. Total advances increased by 17% year-on-year to ₹ 738,598 crore (US$ 99.4 billion) at June 30, 2021 from ₹ 631,215 crore (US$ 84.9 billion) at June 30, 2020.

Deposit growth

Total deposits increased by 16% year-on-year to ₹ 926,224 crore (US$ 124.6 billion) at June 30, 2021. Average current account deposits increased by 32% year-on-year in Q1-2022. Average savings account deposits increased by 22% year-on-year in Q1-2022. Total term deposits increased by 9% year-on-year to ₹ 501,122 crore (US$ 67.4 billion) at June 30, 2021.

The Bank had a network of 5,268 branches and 14,141 ATMs at June 30, 2021.

Asset quality

The net non-performing assets were ₹ 9,306 crore (US$ 1.3 billion) at June 30, 2021 compared to ₹ 9,180 crore (US$ 1.2 billion) at March 31, 2021. The net NPA ratio was 1.16% at June 30, 2021 compared to 1.14% at March 31, 2021. The net addition to gross NPAs during the quarter was ₹ 3,604 crore (US$ 485 million). The gross NPA additions were ₹ 7,231 crore (US$ 973 million) in Q1-2022. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 3,627 crore (US$ 488 million) in Q1-2022. The gross NPAs written off were ₹ 1,589 crore (US$ 214 million) in Q1-2022. Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines was ₹ 4,864 crore (US$ 654 million), or about 0.7% of the total loan portfolio, at June 30, 2021 compared to ₹ 3,927 crore (US$ 528 million) at March 31, 2021. The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding fund and non-fund based outstanding to NPAs) was ₹ 13,975 crore (US$ 1.9 billion) at June 30, 2021 compared to ₹ 13,098 crore (US$ 1.8 billion) at March 31, 2021.

Capital adequacy

The Bank’s total capital adequacy at June 30, 2021 was 19.27% and Tier-1 capital adequacy (including profits for Q1-2022) was 18.24% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.

Consolidated results

The consolidated profit after tax was ₹ 4,747 crore (US$ 639 million) in Q1-2022 compared to ₹ 4,886 crore (US$ 657 million) in Q4-2021 and ₹ 3,118 crore (US$ 419 million) in Q1-2021.

Consolidated assets grew by 9% year-on-year to ₹ 1,572,772 crore (US$ 211.6 billion) at June 30, 2021 from ₹ 1,443,576 crore (US$ 194.2 billion) at June 30, 2020.

Subsidiaries

Value of New Business (VNB) of ICICI Prudential Life Insurance (ICICI Life) increased by 78% year-on-year to ₹ 358 crore (US$ 48 million) in Q1-2022. The new business premium increased by 71% year-on-year to ₹ 2,559 crore (US$ 344 million) in Q1-2022. The new business margin increased from 24.4% in Q1-2021 to ₹ 29.4% in Q1-2022. The protection based annualised premium equivalent grew by 26% year-on-year to ₹ 270 crore (US$ 36 million) and accounted for 22.1% of the total annualised premium equivalent in Q1-2022.

The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) grew by 13% year-on-year to ₹ 3,733 crore (US$ 502 million) in Q1-2022 from ₹ 3,302 crore (US$ 444 million) in Q1-2021. The combined ratio was 121.3% in Q1-2022 compared to 99.7% in Q1-2021. The profit after tax of ICICI General was ₹ 152 crore (US$ 20 million) in Q1-2022 compared to ₹ 398 crore (US$ 54 million) in Q1-2021.

The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, grew by 61% year-on-year to ₹ 311 crore (US$ 42 million) in Q1-2022 from ₹ 193 crore (US$ 26 million) in Q1-2021.

The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC), as per Ind AS, grew by 48% year-on-year to ₹ 380 crore (US$ 51 million) in Q1-2022 compared to ₹ 257 crore (US$ 35 million) in Q1-2021.

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

₹ crore

1. Excluding treasury income

2. Includes profit on sale of shareholding in subsidiaries of ₹ 3,670 crore (US$ 494 million) in FY2021 (Q1-2021: ₹ 3,036 crore (US$ 408 million))

3. During Q1-2022, the Bank has changed its policy on non-performing loans to make it more conservative. The change in policy resulted in higher provision on non-performing advances amounting to about ₹ 1,127 crore (US$ 152 million) in Q1-2022

4. During FY2021, the Covid-19 pandemic resulted in a nation-wide lockdown in April-May 2020 which substantially impacted economic activity. For the banking sector, these developments resulted in lower demand for loans and fee-based services and regulatory measures like moratorium on payment of dues and standstill in asset classification to mitigate the economic consequences on borrowers. It also resulted in increase in provisioning reflecting higher actual and expected additions to non-performing loans. The easing of lockdown measures subsequently led to gradual improvement in economic activity and progress towards normalcy from the second half of FY2021.

The second wave of the Covid-19 pandemic in April-May 2021 led to the re-imposition of localised/regional lock-down measures in various parts of the country. In the absence of regulatory dispensations like moratorium on loan repayments and standstill on asset classification, the impact on the quality of the loan portfolio would likely be sharper and earlier during fiscal 2022. The second wave has started to subside from June 2021 onwards and there has been a gradual lifting of lock downs, resulting in an increase in economic activity.

The Bank made net Covid-19 related provision of ₹ 4,750 crore (US$ 639 million) in FY2021 and held an aggregate Covid-19 related provision of ₹ 7,475 crore (US$ 1.0 billion) at March 31, 2021. During Q1-2022, the Bank wrote back Covid-19 related provision of ₹ 1,050 crore (US$ 141 million) (made Covid-19 related provision of ₹ 5,550 crore (US$ 747 million) in Q1-2021) and accordingly held Covid-19 related provision of ₹ 6,425 crore (US$ 864 million) at June 30, 2021.

The impact, including with respect to credit quality and provisions, of the Covid-19 pandemic on the Bank and the Group, is uncertain and will depend on the trajectory of the pandemic, progress and effectiveness of the vaccination programme, the effectiveness of current and future steps taken by the government and central bank to mitigate the economic impact, steps taken by the Bank and the Group and the time it takes for economic activities to return to pre-pandemic levels.

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

Summary Balance Sheet

₹crore

	30-Jun-20	31-Mar-21	30-Jun-21
	Unaudited	Audited	Unaudited
Capital and Liabilities
Capital	1,295	1,383	1,385
Employee stock options outstanding	3	3	3
Reserves and surplus	117,321	146,123	150,988
Deposits	801,622	932,522	926,224
Borrowings (includes subordinated debt)	164,918	91,631	89,131
Other liabilities	53,454	58,771	52,923
Total capital and liabilities	1,138,613	1,230,433	1,220,654
Assets
Cash and balances with Reserve Bank of India	32,256	46,031	42,036
Balances with banks and money at call and short notice	88,995	87,097	63,828
Investments	301,851	281,287	294,849
Advances	631,215	733,729	738,598
Fixed assets	8,443	8,878	8,956
Other assets	75,853	73,411	72,387
Total assets	1,138,613	1,230,433	1,220,654

1.  

   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, and the impact of the Covid-19 pandemic which could result in fewer business opportunities, lower revenues, and an increase in the levels of non-performing assets and provisions, depending inter alia upon the period of time for which the pandemic extends, the remedial measures adopted by governments and central banks, and the time taken for economic activity to resume at normal levels after the pandemic, 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.

This release does not constitute an offer of securities.

For further press queries please email Sujit Ganguli / Kausik Datta at sujit.ganguli@icicibank.com / datta.kausik@icicibank.com or corporate.communications@icicibank.com

For investor queries please email Anindya Banerjee at anindya.banerjee@icicibank.com or Aashwij Mallya at aashwij.mallya@icicibank.com or ir@icicibank.com.

1 crore = 10.0 million

US$ amounts represent convenience translations at US$1=₹ 74.33