Analysts’ conference on October 23, 2021: opening remarks

Certain statements in this press release relating to a future period (including, without limitation, regarding our future business plans or growth prospects) are forward-looking statements intended to qualify for the “safe harbor” under Canadian law. applicable securities, including the US reform of private securities litigation. Act of 1995. Such forward-looking statements involve a number of risks and uncertainties which could cause actual results to differ materially from those contained in such forward-looking statements. These risks and uncertainties include, but are not limited to, legislative and regulatory changes, international economic and business conditions, political or economic instability in the jurisdictions in which we operate, increase in non-performing loans, unforeseen changes in interest rates, exchange rates, stock prices or other rates or prices, our growth and expansion of our business, the adequacy of our allowance for credit losses, actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks, changes in India’s sovereign rating, and the impact of the Covid-19 pandemic that could translate into through a decrease in business opportunities, a decrease in income and an increase in the levels of non-performing assets and provisions, depending, among other things, on the period in which the pandemic is spreading, the corrective measures taken by governments and central banks, and the time it takes for economic activity to resume its normal after the pandemic, as well as other risks detailed in the reports we have filed with the United States Securities and Exchange Commission. All forward-looking statements contained in this document are based on what we believe to be reasonable assumptions as of the date of this release. ICICI Bank assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date thereof. Additional risks that could affect our future results of operations are described in more detail in our filings with the United States Securities and Exchange Commission. These documents are available at

This press release does not constitute an offer of securities.


Opening remarks by Mr. Bakhshi

Good evening everyone and welcome to the ICICI Bank earnings call to discuss the second quarter of fiscal 2022 results. Vishakha, Anup, Sandeep Batra, Rakesh and Anindya join us today on this call.

We hope you are safe and healthy. India has seen a steady decline in Covid-19 cases and a massive resumption of the vaccination program since June. India has now passed the milestone of administering 100 crore doses of immunization. We would like to express our gratitude to the efforts and dedication of all health workers and essential service providers for their tireless efforts in the recovery from the pandemic. I would also like to take a moment to thank our employees for their service to customers during these difficult times. We are happy to share that now almost all of our employees have received at least one dose of the vaccine.

Economic activity has continued to improve since June. The ultra-frequency index, comprising several high-frequency indicators tracked by the Bank’s Economic Research Group, has steadily increased from 99.6 in the first week of July 2021 to 105.5 in September 2021 and has achieved

110.3 during the week ending October 17. The underlying economic activity continues to show upward momentum due to higher peak electricity demand, electronic bill generation and rail freight revenues, improved vehicle registrations. vehicles in the back of the holiday season and increased labor force participation rates in urban areas. Global industrial activity is above pre


Levels of Covid-19. The progress of the vaccination program supports an improvement in mobility indicators. We expect the holiday season to give new impetus to economic activity.

During the difficult period of the past 18 months, ICICI Bank has continued to strengthen our franchise and delivery and service capabilities, with a range of digital initiatives. Our loan portfolio has performed well in the face of the challenges posed by both waves of the pandemic, performing either online or better than expected. We aim to create holistic value propositions for our clients through our 360 degree client-centric approach and we focus on opportunities in client and segment ecosystems. Cross-functional teams were created to tap key customer and market segments, enabling 360-degree customer coverage and increased portfolio share. We will continue to regularly develop our business and our franchise within our strategic framework.

Regarding quarterly performance against this framework:

1. Growth of core operating income in a risk-calibrated manner through targeted pursuit of target market segments

Core operating profit increased 23.3% year-on-year and 10.6% sequentially to Rs 95.18 billion this quarter. Profit after tax


grew 29.6% year-on-year and 19.4% sequentially to reach 55.11 billion rupees in this quarter.

  1. Further improve our strong deposit franchise
    The growth of deposits remains strong at 17.3% over one year as of September 30, 2021. During the quarter, the average of current account deposits increased by 35.7% over one year and the average of savings account deposits by 24.9% over one year. year. The cash coverage ratio for the quarter was 133%, reflecting the continued excess cash flow. The cost of our deposits continues to be among the lowest in the system.
  2. Granularly grow our loan portfolio with a focus on risk and reward
    The retail loan portfolio grew 20.0% year-on-year and 5.0% sequentially as at September 30, 2021. With increasing economic activity, disbursements on all retail products increased sequentially over the period. during this quarter. Mortgage disbursements were close to the level seen in the fourth quarter of 2021, reflecting increased demand coupled with our seamless client onboarding experience through pre-approved offerings and digitization. Personal loan and auto loan disbursements were also close to fourth quarter 2021 levels. In-force credit cards increased 6.0% sequentially and the value of credit card spending increased 47.0 % sequentially. Expenses in most categories


other than travel exceeded March 2021 levels in September. We expect the spending momentum to continue through the holiday season.

The investment banking and SME portfolios grew by 43.1% over one year and 42.0% over one year, respectively. Sequentially, the investment banking portfolio grew by 12.3% and the SME portfolio by 11.3%. We are seeing a steady increase in the number of credit applications and with our digital offerings and platforms like InstaBIZ, Merchant Stack and Trade Online, we believe there is significant growth potential for these portfolios.

Excluding the builders portfolio, the growth of the domestic companies portfolio was around 14% year-on-year as of September 30, 2021.

Overall, the domestic loan portfolio grew 19.0% year-on-year and 4.0% sequentially.

4. Leverage digital technology across our business

Our digital platforms are constantly evolving to enable the best end-to-end digital journeys, deliver personalized solutions and value-added features to customers, and enable more effective data-driven cross-sell and upsell. These platforms also allow us to acquire new customers. We have shared some details in slides 18-30 of the investor presentation.


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Bank ICICI SA published this content on 23 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 23, 2021 02:43:00 PM UTC.

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