ICICI Bank (ICICIBANK) Q4 05/06 earnings summary

Executive summary

• FY06 net profit rose 26.7% to Rs. 25.40bn; operating profit grew 58.7% to Rs. 46.91bn, with higher provisions tempering pre-tax growth.

• Expansion centered on retail credit, fee-generating services, international operations and rural banking; equity issuance strengthened capacity to fund growth.

Financial highlights

• Net interest income increased 47.5% to Rs. 41.87bn; fee income rose 55.3% to Rs. 32.59bn; treasury income advanced 30.5% to Rs. 9.28bn.

• Profit before tax increased 22.6% to Rs. 30.97bn; net profit rose 26.7% to Rs. 25.40bn as the effective tax rate fell to 18.0% from 20.7%.

• Consolidated profit after tax was Rs. 24.20bn; US GAAP net income was Rs. 20.04bn.

• Total assets rose 49.9% to Rs. 2,513.89bn; net advances grew 59.9% to Rs. 1,461.63bn and deposits increased 65.4% to Rs. 1,650.83bn.

Outlook and guidance

• FY07 growth prospects were described as favorable, supported by manufacturing, services and expected agricultural recovery; infrastructure investment and rural development remained long-term priorities.

• Strategy focused on scaling rural banking, international operations, retail credit and SME services, while using technology and low-cost channels to expand access and serve customers profitably.

• Infrastructure project finance, overseas expansion by Indian corporates and transaction-banking fees were identified as business opportunities.