ICICI Bank (ICICIBANK) Q4 02/03 earnings summary

Executive summary

• Fiscal 2003 was the first full year operating as an integrated entity after the merger; fiscal 2002 included the acquired entities’ results for only two days, making comparisons not comparable.

• Rapid retail-credit and deposit growth, alongside restructuring and recovery actions, shifted the balance sheet toward more diversified assets and more stable funding.

• Indian GAAP net profit was Rs. 12.06 billion; US GAAP reported a Rs. 7.98 billion loss, mainly reflecting differences in merger accounting, provisions and gains recognition.

Financial highlights

• Operating profit, before provisions and tax and excluding the share-sale gain, rose to Rs. 13.80 billion from Rs. 5.45 billion; total provisions and write-offs were Rs. 17.91 billion.

• Indian GAAP profit after tax was Rs. 12.06 billion, including Rs. 11.91 billion from divestment of 101.4 million shares; consolidated profit after tax was Rs. 11.52 billion.

• Net interest income was Rs. 14.24 billion; non-interest income was Rs. 19.67 billion. Total assets were Rs. 1,068.12 billion at March 31, 2003.

• Deposits rose 50.1% to Rs. 481.69 billion; borrowings declined to Rs. 440.52 billion from Rs. 589.70 billion.

Outlook and guidance

• Strategic priorities included defending leadership in retail credit, deepening penetration in other businesses, and proactively resolving legacy distressed debt with other financial-system participants.

• Rural banking was identified as a significant growth opportunity, with plans to use technology and income- and cash-flow-led product design to serve customers at lower operating cost.

• International operations were expected to gain momentum as regulatory approvals enabled expansion; target areas included NRI services, trade finance and correspondent banking.

• Project finance opportunities were expected in airports, ports, urban infrastructure and power; the strategy emphasized origination, structuring and syndication.