ICICI Bank (ICICIBANK) Q4 07/08 earnings summary

Executive summary

• Fiscal 2008 net profit rose 33.7% YoY to Rs. 41.58bn; consolidated profit after tax increased 23.1% to Rs. 33.98bn.

• Business mix shifted toward corporate and investment banking as retail credit moderated; growth strategy emphasized deposits, international operations and multiple financial-services businesses.

Financial highlights

• Operating income increased 28.3% to Rs. 161.15bn; operating profit rose 35.5% to Rs. 79.61bn and PBT grew 38.6% to Rs. 50.56bn.

• Net interest income rose 29.6% to Rs. 73.04bn; non-interest income increased 27.2% to Rs. 88.11bn, including fee income growth of 32.2%.

• Provisions and contingencies, excluding tax, increased 30.5% to Rs. 29.05bn; non-interest expenses rose 21.9% to Rs. 81.54bn.

• Total assets grew 16.0% to Rs. 3,997.95bn; advances rose 15.2% to Rs. 2,256.16bn and deposits increased 6.0% to Rs. 2,444.31bn.

Outlook and guidance

• Long-term outlook remained positive, supported by domestic demand, infrastructure and manufacturing investment, and international growth opportunities; inflation and global market conditions remained key variables.

• Net interest margin was expected to remain below other Indian banks until low-cost and retail deposits formed a larger share of funding; overseas margins were partly offset by higher fee income.

• Strategy called for flexibility as markets evolved, stronger retail liabilities, select international expansion, and continued focus on risk management and compliance.