Performance Review: Quarter ended December 31, 2023
January 20, 2024
Profit before tax excluding treasury grew by 23.4% year-on-year to ₹ 13,551 crore (US$ 1.6 billion) in the quarter ended December 31, 2023 (Q3-2024)
Core operating profit grew by 10.3% year-on-year to ₹ 14,601 crore (US$ 1.8 billion) in Q3-2024
Profit after tax grew by 23.6% year-on-year to ₹ 10,272 crore (US$ 1.2 billion) in Q3-2024
Total period-end deposits grew by 18.7% year-on-year to ₹ 13,32,315 crore (US$ 160.1 billion) at December 31, 2023
Average current account and savings account (CASA) ratio was 39.4% in Q3-2024
Domestic loan portfolio grew by 18.8% year-on-year to ₹ 11,14,820 crore (US$ 134.0 billion) at December 31, 2023
Net NPA ratio was 0.44% at December 31, 2023 compared to 0.43% at September 30, 2023
Provisioning coverage ratio on non-performing assets was 80.7% at December 31, 2023
Including profits for the nine months ended December 31, 2023 (9M-2024), total capital adequacy ratio was 16.70% and CET-1 ratio was 16.03%, on a standalone basis, at December 31, 2023
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 December 31, 2023 (Q3-2024). 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 December 31, 2023.
Profit & loss account
Profit before tax excluding treasury grew by 23.4% year-on-year to ₹ 13,551 crore (US$ 1.6 billion) in Q3-2024 from ₹ 10,978 crore (US$ 1.3 billion) in the quarter ended December 31, 2022 (Q3-2023)
The core operating profit grew by 10.3% year-on-year to ₹ 14,601 crore (US$ 1.8 billion) in Q3-2024 from ₹ 13,235 crore (US$ 1.6 billion) in Q3-2023; excluding dividend income from subsidiaries/associates, core operating profit grew by 9.7% year-on-year in Q3-2024
Net interest income (NII) increased by 13.4% year-on-year to ₹ 18,678 crore (US$ 2.2 billion) in Q3-2024 from ₹ 16,465 crore (US$ 2.0 billion) in Q3-2023
The net interest margin was 4.43% in Q3-2024 compared to 4.53% in Q2-2024 and 4.65% in Q3-2023. The net interest margin was 4.57% in 9M-2023
Non-interest income, excluding treasury, increased by 19.8% year-on-year to ₹ 5,975 crore (US$ 718 million) in Q3-2024 from ₹ 4,987 crore (US$ 599 million) in Q3-2023
Fee income grew by 19.4% year-on-year to ₹ 5,313 crore (US$ 638 million) in Q3-2024 from ₹ 4,448 crore (US$ 535 million) in Q3-2023. Fees from retail, rural, business banking and SME customers constituted about 79% of total fees in Q3-2024
There was a treasury gain of ₹ 123 crore (US$ 15 million) in Q3-2024 compared to ₹ 36 crore (US$ 4 million) in Q3-2023
Provisions (excluding provision for tax) were ₹ 1,050 crore (US$ 126 million) in Q3-2024 compared to ₹ 2,257 crore (US$ 271 million) in Q3-2023
In Q3-2024, provisions included ₹ 627 crore (US$ 75 million) on investments in Alternate Investment Funds as per RBI circular dated December 19, 2023
The profit before tax grew by 24.2% year-on-year to ₹ 13,674 crore (US$ 1.6 billion) in Q3-2024 from ₹ 11,014 crore (US$ 1.3 billion) in Q3-2023
The profit after tax grew by 23.6% year-on-year to ₹ 10,272 crore (US$ 1.2 billion) in Q3-2024 from ₹ 8,312 crore (US$ 999 million) in Q3-2023
Growth in digital and payments platforms
There have been more than one crore activations from non-ICICI Bank account holders on the Bank’s mobile banking app, iMobile Pay as of end-December 2023.
ICICI Bank’s Merchant STACK 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, connected banking services and digital store management, among others. The value of the Bank’s merchant acquiring transactions through UPI grew by 85.0% year-on-year and 20.7% sequentially in Q3-2024. The Bank had a market share of about 28.8% by value in electronic toll collections through FASTag in Q3-2024, with a 11.9% year-on-year growth in collections in Q3-2024.
The Bank has created more than 20 industry specific STACKs which provide bespoke and purpose-based digital solutions to corporate clients and their ecosystems. The Bank’s Trade Online and Trade Emerge platforms allow customers to perform most of their trade finance and foreign exchange transactions digitally. The Bank’s digital solutions integrate the import transaction lifecycle with bespoke solutions providing frictionless experience to our clients and simplify customer journeys. About 72% of trade transactions were done digitally in Q3-2024. The volume of transactions done through Trade Online platform in Q3-2024 grew by 26.2% year-on-year.
The Bank has further simplified cross-border remittance journeys with new enhancements. SmartIRM is a multi-party cross-border inward remittance solution with virtual account architecture, enhanced security features and remittances reconciliation with payer identification. SmartORM enables pre-vetting of outward remittance transactions to ensure error-free submission before booking foreign exchange deals.
iLens, the retail lending platform currently enable for the mortgage, is being upgraded on an ongoing basis with new features such as integration with account aggregators, opening of instant paperless saving bank account for newly on-boarded mortgage customers and instant property valuation reports for select developers to provide enhanced customer experience and serve the customer’s 360° needs digitally.
Credit growth
The net domestic advances grew by 18.8% year-on-year and 3.8% sequentially at December 31, 2023. The retail loan portfolio grew by 21.4% year-on-year and 4.5% sequentially, and comprised 54.3% of the total loan portfolio at December 31, 2023. Including non-fund outstanding, the retail portfolio was 46.4% of the total portfolio at December 31, 2023. The business banking portfolio grew by 31.9% year-on-year and 6.5% sequentially at December 31, 2023. The SME business, comprising borrowers with a turnover of less than ₹ 250 crore (US$ 30 million), grew by 27.5% year-on-year and 6.7% sequentially at December 31, 2023. The rural portfolio grew by 18.2% year-on-year and 4.6% sequentially at December 31, 2023. The domestic corporate portfolio grew by 13.3% year-on-year and 2.9% sequentially at December 31, 2023. Total advances increased by 18.5% year-on-year and 3.9% sequentially to ₹ 11,53,771 crore (US$ 138.7 billion) at December 31, 2023.
Deposit growth
Total period-end deposits increased by 18.7% year-on-year and 2.9% sequentially to ₹ 13,32,315 crore (US$ 160.1 billion) at December 31, 2023. Period-end term deposits increased by 31.2% year-on-year and 4.9% sequentially to ₹ 8,04,320 crore (US$ 96.7 billion) at December 31, 2023. Average current account deposits increased by 11.6% year-on-year in Q3-2024. Average savings account deposits increased by 2.8% year-on-year in Q3-2024.
With the addition of 471 branches in 9M-2024, the Bank had a network of 6,371 branches and 17,037 ATMs and cash recycling machines at December 31, 2023.
Asset quality
The gross NPA ratio declined to 2.30% at December 31, 2023 from 2.48% at September 30, 2023. The net NPA ratio was 0.44% at December 31, 2023 compared to 0.43% at September 30, 2023 and 0.55% at December 31, 2022. The net additions to gross NPAs, excluding write-offs and sale, were ₹ 363 crore (US$ 44 million) in Q3-2024 compared to ₹ 116 crore (US$ 14 million) in Q2-2024. The gross NPA additions were ₹ 5,714 crore (US$ 687 million) in Q3-2024 compared to ₹ 4,687 crore (US$ 563 million) in Q2-2024. Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹ 5,351 crore (US$ 643 million) in Q3-2024 compared to ₹ 4,571 crore (US$ 549 million) in Q2-2024. The Bank has written off gross NPAs amounting to ₹ 1,389 crore (US$ 167 million) in Q3-2024. The provisioning coverage ratio on NPAs was 80.7% at December 31, 2023.
Excluding NPAs, the total fund based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹ 3,318 crore (US$ 399 million) or 0.3% of total advances at December 31, 2023 from ₹ 3,536 crore (US$ 425 million) at September 30, 2023. The Bank holds provisions amounting to ₹ 1,032 crore (US$ 124 million) against these borrowers under resolution, as of December 31, 2023. In addition, the Bank continues to hold contingency provisions of ₹ 13,100 crore (US$ 1.6 billion) at December 31, 2023. The loan and non-fund based outstanding to performing corporate and SME borrowers rated BB and below was ₹ 5,853 crore (US$ 703 million) at December 31, 2023 compared to ₹ 4,789 crore (US$ 576 million) at September 30, 2023. The loan and non-fund based outstanding of ₹ 5,853 crore (US$ 703 million) at December 31, 2023 includes ₹ 661 crore (US$ 79 million) to borrowers under resolution.
Capital adequacy
Including profits for the nine months ended December 31, 2023, the Bank’s total capital adequacy ratio at December 31, 2023 was 16.70% and CET-1 ratio was 16.03% compared to the minimum regulatory requirements of 11.70% and 8.20% respectively.
Consolidated results
The consolidated profit after tax increased by 25.7% year-on-year to ₹ 11,053 crore (US$ 1.3 billion) in Q3-2024 from ₹ 8,792 crore (US$ 1.1 billion) in Q3-2023.
Consolidated assets grew by 17.0% year-on-year to ₹ 22,08,018 crore (US$ 265.3 billion) at December 31, 2023 from ₹ 18,87,209 crore (US$ 226.8 billion) at December 31, 2022.
Key subsidiaries and associates
The annualised premium equivalent increased by 1.7% year-on-year to ₹ 5,430 crore (US$ 653 million) in 9M-2024 compared to ₹ 5,341 crore (US$ 642 million) in 9M-2023. The VNB margin was 26.7% in 9M-2024 compared to 32.0% in FY2023 and 32.0% in 9M-2023. Value of New Business (VNB) of ICICI Prudential Life Insurance (ICICI Life) was ₹ 1,451 crore (US$ 174 million) in 9M-2024 compared to 1,710 crore (US$ 205 million) in 9M-2023. The profit after tax was ₹ 679 crore (US$ 82 million) in 9M-2024 compared to ₹ 576 crore (US$ 69 million) in 9M-2023 and ₹ 227 crore (US$ 27 million) in Q3-2024 compared to ₹ 221 crore (US$ 27 million) in Q3-2023.
The Gross Direct Premium Income (GDPI) of ICICI Lombard General Insurance Company (ICICI General) grew by 13.4% year-on-year to ₹ 6,230 crore (US$ 749 million) in Q3-2024 from ₹ 5,493 crore (US$ 660 million) in Q3-2023. The combined ratio stood at 103.6% in Q3-2024 compared to 104.4% in Q3-2023. Excluding the impact of CAT losses, the combined ratio was 102.3% in Q3-2024. The profit after tax of ICICI General grew by 22.1% to ₹ 431 crore (US$ 52 million) in Q3-2024 from ₹ 353 crore (US$ 42 million) in Q3-2023.
The profit after tax of ICICI Prudential Asset Management Company, as per Ind AS, grew by 30.0% year-on-year to ₹ 546 crore (US$ 66 million) in Q3-2024 from ₹ 420 crore (US$ 50 million) in Q3-2023.
The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, grew by 65.8% year-on-year to ₹ 466 crore (US$ 56 million) in Q3-2024 from ₹ 281 crore (US$ 34 million) in Q3-2023.
Summary Profit and Loss Statement (as per standalone Indian GAAP accounts)
₹ crore
FY2023 |
Q3-2023 |
9M-2023 |
Q2-2024 |
Q3-2024 |
9M-2024 |
|
|---|---|---|---|---|---|---|
Audited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net interest income |
62,129 |
16,465 |
44,462 |
18,308 |
18,678 |
55,213 |
Non-interest income |
19,883 |
4,987 |
14,755 |
5,861 |
5,975 |
17,019 |
- Fee income |
18,001 |
4,448 |
13,171 |
5,204 |
5,313 |
15,360 |
- Dividend income from subsidiaries/associates |
1,784 |
516 |
1511 |
648 |
650 |
1,589 |
- Other income |
98 |
23 |
73 |
9 |
12 |
70 |
Less: |
||||||
Operating expense |
32,873 |
8,217 |
23,945 |
9,855 |
10,052 |
29,430 |
Core operating profit1 |
49,139 |
13,235 |
35,272 |
14,314 |
14,601 |
42,802 |
Total net provision |
6,666 |
2,257 |
5,045 |
583 |
1,050 |
2,924 |
- Impact of change in provisioning norms |
- |
1,196 |
1,196 |
- |
- |
- |
- Contingency provisions2 |
5,650 |
1,500 |
4,050 |
- |
- |
- |
- Other provisions |
1,016 |
(439) |
(201) |
583 |
1,050 |
2,924 |
Profit before tax excl. treasury |
42,473 |
10,978 |
30,237 |
13,731 |
13,551 |
39,878 |
Treasury |
(52) |
36 |
(12) |
(85) |
123 |
290 |
Profit before tax |
42,421 |
11,014 |
30,215 |
13,646 |
13,674 |
40,168 |
Less: |
||||||
Provision for taxes |
10,525 |
2,702 |
7,440 |
3,385 |
3,402 |
9,987 |
Profit after tax |
31,896 |
8,312 |
22,775 |
10,261 |
10,272 |
30,181 |
Excluding treasury
The Bank continues to hold contingency provision of ₹ 13,100 crore (US$ 1.6 billion) at December 31, 2023
Prior period numbers have been re-arranged wherever necessary
Summary balance sheet
₹crore
31-Dec-22 |
31-Mar-23 |
30-Sep-23 |
31-Dec-23 |
|
|---|---|---|---|---|
Unaudited |
Audited |
Unaudited |
Unaudited |
|
Capital and liabilities |
||||
Capital |
1,396 |
1,397 |
1,401 |
1,403 |
Employee stock options outstanding |
635 |
761 |
1,078 |
1,243 |
Reserves and surplus |
1,89,238 |
1,98,558 |
2,13,570 |
2,24,191 |
Deposits |
11,22,049 |
11,80,841 |
12,94,742 |
13,32,315 |
Borrowings (includes subordinated debt) |
1,30,550 |
1,19,325 |
1,16,758 |
1,26,871 |
Other liabilities and provisions |
77,880 |
83,325 |
93,231 |
97,199 |
Total capital and liabilities |
15,21,748 |
15,84,207 |
17,20,780 |
17,83,222 |
Assets |
||||
Cash and balances with Reserve Bank of India |
62,281 |
68,526 |
66,221 |
64,869 |
Balances with banks and money at call and short notice |
60,190 |
50,912 |
43,241 |
34,459 |
Investments |
3,37,050 |
3,62,330 |
4,13,253 |
4,36,650 |
Advances |
9,74,047 |
10,19,638 |
11,10,542 |
11,53,771 |
Fixed assets |
9,575 |
9,600 |
10,166 |
10,354 |
Other assets |
78,605 |
73,201 |
77,357 |
83,119 |
Total assets |
15,21,748 |
15,84,207 |
17,20,780 |
17,83,222 |
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, 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 Abhinek Bhargava at abhinek.bhargava@icicibank.com or Nitesh Kalantri nitesh.kalantri@icicibank.com or ir@icicibank.com.
1 crore = 10.0 million
US$ amounts represent convenience translations at US$1=₹ 83.21
