ICICI Bank (ICICIBANK) Q4 04/05 earnings summary

Executive summary

• FY05 profit after tax rose 22.5% to Rs. 20.05bn; consolidated PAT increased 17.2% to Rs. 18.52bn. Retail lending, fee income and deposits drove growth, partly offset by lower treasury gains.

• Expanded retail, rural and international platforms; retail loans reached 61.4% of advances and operations extended to ten countries.

Financial highlights

• Net interest income rose 42.9% to Rs. 28.39bn; fee income increased 78.6% to Rs. 20.98bn; core operating profit advanced 92.5% to Rs. 22.45bn.

• Operating profit before provisions and tax grew 19.1% to Rs. 29.56bn; PBT increased 32.9% to Rs. 25.27bn.

• Treasury income fell 45.9% to Rs. 7.11bn amid adverse fixed-income markets; provisions declined 25.9% to Rs. 4.29bn.

• Total assets increased 33.9% to Rs. 1,676.59bn; advances rose 45.9% to Rs. 914.05bn and deposits 46.6% to Rs. 998.19bn.

Outlook and guidance

• Strategy centers on growing existing businesses, expanding international operations and developing a sustainable rural and urban low-income financial-services platform.

• Rural initiatives were at early implementation stages; plans targeted significant scaling over the medium term using technology, microfinance partners and multiple delivery channels.

• Fiscal 2006 prospects were viewed as favorable, supported by manufacturing and services growth and a revival in domestic investment; infrastructure investment remained a key imperative.