Icici bank investor-presentation08
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Icici bank investor-presentation08

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its all abt the icici bank investor

its all abt the icici bank investor

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Icici bank investor-presentation08 Icici bank investor-presentation08 Presentation Transcript

  • ICICI Group: Strategy andPerformanceApril 2008
  • Contents Opportunities Strategy & Outlook Strategy & Outlook Key Subsidiaries Key Subsidiaries Financial Highlights Financial Highlights2
  • Robust economic growth GDP growth FY2005 FY2006 FY2007 9M-2008 Agriculture 0.7% 6.0% 2.7% 3.5% Industry 7.4% 8.0% 11.0% 9.1% Of which: 8.1% 9.1% 12.3% 9.9% manufacturing Services 10.2% 10.3% 11.0% 10.4% Total 7.5% 9.0% 9.4% 8.9%3
  • Economic growth drivers Favourable Knowledge demographics capital Rising disposable income Investment Personal ConsumptionManufacturing HousingInfrastructure TransportationInternational Personal credit expansion Investment and consumption cycles mutually re-enforcing4
  • Consumption drivers2000: Per capita 2000: Per capita 2007: Per capita 2007: Per capita 2015: Per capita 2015: Per capita GDP US$ 500 GDP US$ 500 GDP US$ 1,000 GDP US$ 1,000 GDP US$ 1,500 GDP US$ 1,500Middle and highMiddle and high Middle and high Middle and high Middle and high Middle and high income income 35% income 70% income income income population -- growth population -- growth population -- population population population 260 mn11 260 mn 350 mn11 350 mn 600 mn11 600 mn From per capita GDP of US$ 1,000 to US$ 1,500: consuming population to grow manifold Middle income: Rs. 90,000 (US$ 2,250)-Rs. 500,000 (US$ 12,500) per household High income: > Rs. 500,000 (US$ 12,500) per household Source: NCAER 5
  • Investment drivers Capacity utilisation rates 100 90 80 High capacity utilisation 70 60 and need for building 50 infrastructure resulting% 40 30 20 in a large investment 10 0 pipeline g rs y ile t il l v ee en ar n O be Ca pi xt St lli m e Debt/Equity p Te & ud ci Ce hi an d S Cr o Fo o 1.2 tAu 2000-2004 2005-2006 1.0 0.8 Supported by healthy 0.6 corporate balance sheets 0.4 0.2 0.0 2 0 0 0 -0 1 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7 Source: CRIS INFAC, CMIE 6
  • Opportunity spectrum for banks Low penetration of consumer finance at 13% of GDP Supported by structural drivers of rising income levels and growing consuming class Robust industrial and infrastructure investment pipeline estimated at about US$ 700 billion Internationalisation of Indian industry Potential for acquisition and trade finance Vast Indian diaspora spanning the globe Potential for credit and liability products and transaction services Low penetration of insurance and asset management7
  • Contents Opportunities Opportunities Strategy & Outlook Key Subsidiaries Key Subsidiaries Financial Highlights Financial Highlights8
  • Our strategy Enhance share of retail Domestic Retail deposits and sustain leadership Banking position in credit franchise Leverage corporate Shareholder valueGlobal Corporate relationships, structuringand Investment expertise, balance sheet and Banking global syndication capabilityInternational Retail Leverage NRI opportunity and Banking technology capabilities Rural Banking Invest for future growth Insurance, Asset Enhance and leverage market Mgmt & Broking leadership position9
  • Retail banking platform Leadership position with demonstrated Leadership position with demonstrated pricing power pricing power Credit Full range of products distributed through in- Full range of products distributed through in- house network and external agent force house network and external agent force Centralized credit & operations Centralized credit & operations Superior deposit gathering franchise: highest Superior deposit gathering franchise: highest savings account deposit per branch in the savings account deposit per branch in the Deposits industry industry Current and savings account ratio at 27% Current and savings account ratio at 27% compared to 22% at March 31, 2007 compared to 22% at March 31, 2007 Diversified fee income streams: loans, cards, Diversified fee income streams: loans, cards, transaction banking & distribution transaction banking & distribution Fee income Focus on cross sell of insurance and asset Focus on cross sell of insurance and asset management products management products10
  • Corporate & investment banking strategy Origination Structuring SyndicationLeveraging domestic Leveraging domestic Structuring skills Structuring skills Global distribution Global distributioncorporate relationships corporate relationships Balance sheet Balance sheet capability capabilityProject appraisal Project appraisal support –– support Focus on risk Focus on riskcapabilities capabilities domestic and domestic and diversification and diversification andM&A advisory M&A advisory international international return optimization return optimization Combined with transaction banking and treasury products Involved in 88% of outbound Indian M&A financing deals in CY2007 Ranked #1 in offshore corporate syndicated loans in CY200711
  • International banking Focus on fee and liability generation Focus on fee and liability generation Platform to capture large remittance flows Platform to capture large remittance flows into India and in other corridors; Market into India and in other corridors; Market International share of over 25% in remittances into India share of over 25% in remittances into India retail banking India linked products for NRIs; distribution India linked products for NRIs; distribution of third party investment products of third party investment products Technology-driven direct banking platform Technology-driven direct banking platform in UK and Canada in UK and Canada Presence in 19 international locations Presence in 19 international locations North America, UK, Europe, Russia, North America, UK, Europe, Russia, International Middle-East, South Africa, Asia Middle-East, South Africa, Asia International assets account for 23% of International assets account for 23% of franchise consolidated banking assets snapshot consolidated banking assets New branch opened in New York New branch opened in New York ICICI Bank UK: present in nine retail locations ICICI Bank UK: present in nine retail locations in UK and opened new branch in Frankfurt in UK and opened new branch in Frankfurt Largest international balance sheet among Indian banks12
  • Rural banking: investing for future growth Strategy to comprehensively cover an Strategy to comprehensively cover an identified rural geography with branches, identified rural geography with branches, Comprehensive partnerships & technology based channels partnerships & technology based channels channel strategy Branches at major agricultural markets Branches at major agricultural markets Franchisees, internet kiosks, MFI & Franchisees, internet kiosks, MFI & corporate partners corporate partners Multi-product suite for catering to various Multi-product suite for catering to various customer segments: farmer financing, customer segments: farmer financing, Comprehensive agri-businesses, commodity-based agri-businesses, commodity-based product strategy financing and micro-credit financing and micro-credit Savings and investment products Savings and investment products Insurance Insurance13
  • Contents Opportunities Opportunities Strategy & Outlook Strategy & Outlook Key Subsidiaries Financial Highlights Financial Highlights14
  • Life insurance: market share Bi rl a Sun Li fe Others 10.4% 11M-2008 3.0% Rel i a nc e L i fe 3.6% H D FC Sta nd a rd 4.3% SBI Li fe 4.7% LIC 50.3% Ba j a j A l l i a nz 10.6% I CI CI P rud enti a l 13.1% Total mkt : Rs 432.16 bn (USD 10.8 bn) Source: IRDA, weighted new business premiums for individual business15
  • ICICI Life: performance highlights 74% increase in new business weighted 74% increase in new business weighted received premium during 9M-2008 received premium during 9M-2008 Business Compared to industry growth of 23% Compared to industry growth of 23% highlights Assets held: Rs. 284.09 bn Assets held: Rs. 284.09 bn 70% of assets in equity 70% of assets in equity New Business Profit of Rs. 7.48 bn in 9M- New Business Profit of Rs. 7.48 bn in 9M- Financial 2008 compared to Rs. 5.40 bn in 9M-2007 performance 2008 compared to Rs. 5.40 bn in 9M-2007 Reflecting NBP margin of about 19.3% Reflecting NBP margin of about 19.3%16
  • ICICI Life: rapid distribution ramp-up Mar 05 Mar 06 Dec 07 Locations 74 132 855 Branches 107 177 1,065 Advisors (‘000) 57 72 263 Non agency share 30% 37% 37% Creating a nationwide agency network, complemented by increased focus on non-agency distribution17
  • General insurance Market leadership in private sector with market Market leadership in private sector with market Market share of 31.6%11 share of 31.6% leadership Overall market share at 12.6%11 Overall market share at 12.6% 17% increase in premiums to Rs. 27.22 bn in 17% increase in premiums to Rs. 27.22 bn in Business 9M-2008 9M-2008 Despite the impact of de-tariffication Despite the impact of de-tariffication Highlights Non-corporate business at 57% of gross Non-corporate business at 57% of gross premium in 9M-2008 premium in 9M-2008 Financial Profit after tax of Rs. 1.15 bn in 9M-2008 Profit after tax of Rs. 1.15 bn in 9M-2008 performance compared to Rs. 0.49 bn in 9M-2007 compared to Rs. 0.49 bn in 9M-2007 1. April 2007 – December 2007; Source: IRDA18
  • Securities business India’s largest online trading platform with India’s largest online trading platform with Business about 1.4 million customers about 1.4 million customers Highlights Ranked first in terms of amount raised Ranked first in terms of amount raised through domestic offerings during CY2007 through domestic offerings during CY2007 Revenue of Rs. 2.57 bn in Q3-2008 and Rs. Revenue of Rs. 2.57 bn in Q3-2008 and Rs. Financial 5.27 bn in 9M-2008 5.27 bn in 9M-2008performance Profit after tax of Rs. 710 mn in Q3-2008 and Profit after tax of Rs. 710 mn in Q3-2008 and Rs. 1,080 mn in 9M-2008 Rs. 1,080 mn in 9M-200819
  • Asset management Total FUM of Rs. 692.30 bn (including PMS & Total FUM of Rs. 692.30 bn (including PMS & advisory AUM) at December 31, 2007 advisory AUM) at December 31, 2007 ICICI Prudential Market share of 10.3% in mutual fund assets Market share of 10.3% in mutual fund assets Asset at December 31, 2007 at December 31, 2007Management Profit after tax of Rs. 0.75 bn in 9M-2008 from Profit after tax of Rs. 0.75 bn in 9M-2008 from compared to Rs. 0.33 bn in 9M-2007 compared to Rs. 0.33 bn in 9M-2007 Largest private equity player in India with Largest private equity player in India withICICI Venture funds under management of Rs. 96.34 bn funds under management of Rs. 96.34 bn Profit after tax of Rs. 0.52 bn in 9M-2008 Profit after tax of Rs. 0.52 bn in 9M-200820
  • Contents Opportunities Opportunities Strategy & Outlook Strategy & Outlook Key Subsidiaries Key Subsidiaries Financial Highlights21
  • Key financial indicators1 FY2007 FY2007 Q3-2007 Growth (US$ mn) Q3-2008 Net profit (Rs. bn) 31.10 789 9.10 12.30 35% NII (Rs. bn) 56.37 1,430 14.85 19.60 32% Fee (Rs. bn) 50.12 1,271 13.45 17.85 33% NIM (%) 2.2% 2.2% 2.3% 2.3% - Fee/income (%) 40.5% 40.5% 39.3% 41.2% - Advances (Rs. bn) 1,958.66 49,687 1,727.63 2,155.17 25% Deposits (Rs. bn) 2,305.10 58,475 1,968.93 2,297.79 17% Total assets (Rs. bn) 3,446.58 87,432 2,958.32 3,767.00 27% Capital adequacy 11.7% 11.7% 13.4% 15.8% - ratio Net NPA ratio 1.0% 1.0% 1.0% 1.5% - 1. Based on standalone Indian GAAP financials 2. US$ amounts represent convenience translations at US$1= Rs. 39.4222
  • The ICICI Group today Largest private sector bank in India Largest consumer credit provider Largest private sector life insurer Largest private sector general insurer Leading asset management company Largest private equity & venture fund Leading securities and broking company Consolidated banking assets of US$ 106 bn; market cap of US$ 23bn23
  • Except for the historical information contained herein, statements in this Release which contain words or phrases such as will, would, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward- looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the impact of any acquisitions, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.24
  • Thank you25