ICICI Bank Ltd Q2FY21 consolidated PAT jumps to Rs. 4882.33 crore

ICICI BANK LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.39321.42 crores during the period ended September 30, 2020 as compared to Rs.37939.32 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.4882.33 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.3117.68 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.7.21 for the period ended September 30, 2020 as compared to Rs.4.76 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 39321.42 crs	₹ 37939.32 crs	3.64%
Net Profit	₹ 4882.33 crs	₹ 3117.68 crs	56.6%
EPS	₹ 7.21	₹ 4.76	51.47%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.39321.42 crores during the period ended September 30, 2020 as compared to Rs.37424.78 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.4882.33 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.1131.20 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.7.21 for the period ended September 30, 2020 as compared to Rs.1.72 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 39321.42 crs	₹ 37424.78 crs	5.07%
Net Profit	₹ 4882.33 crs	₹ 1131.20 crs	331.61%
EPS	₹ 7.21	₹ 1.72	319.19%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.77260.74 crores during the 6 months period ended September 30, 2020 as compared to Rs.71293.67 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.8000.01 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.3644.89 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.12.01 for the 6 months period ended September 30, 2020 as compared to Rs.5.55 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 77260.74 crs	₹ 71293.67 crs	8.37%
Net Profit	₹ 8000.01 crs	₹ 3644.89 crs	119.49%
EPS	₹ 12.01	₹5.55	116.4%

- The core operating profit (profit before provisions and tax, excluding treasury income) increased by 18% year-on-year to ₹ 7,719 crore (US$ 1.0 billion) in Q2-2021 from ₹ 6,533 crore (US$ 886 million) in Q2-2020

- Net interest income (NII) increased by 16% year-on-year to Rs. 9,366 crore (US$ 1.3 billion) in Q2-2021 from Rs. 8,057 crore (US$ 1.1 billion) in Q2-2020

- The net interest margin was 3.57% in Q2-2021 compared to 3.69% in the quarter ended June 30, 2020 (Q1-2021) and 3.64% in Q2-2020, reflecting surplus liquidity with the Bank

- Non-interest income, excluding treasury income, was ₹ 3,486 crore (US$ 473 million) in Q2-2021 compared to ₹ 3,854 crore (US$ 522 million) in Q2-2020

- Fee income was ₹ 3,139 crore (US$ 426 million) in Q2-2021 compared to ₹ 3,478 crore (US$ 471 million) in Q2-2020. Fee income increased sequentially by 49% in Q2-2021 over Q1-2021 reflecting the increase in customer spending, borrowing and investment activity. Retail fees constituted 76% of total fees in Q2-2021

- Treasury income was Rs. 542 crore (US$ 73 million) in Q2-2021 compared to Rs. 341 crore (US$ 46 million) in Q2-2020. During Q2-2021, the Bank sold 2.0% shareholding in ICICI Securities resulting in gain of Rs. 305 crore (US$ 41 million)

- Provisions (excluding provision for tax) were Rs. 2,995 crore (US$ 406 million) in Q2-2021 compared to Rs. 2,507 crore (US$ 340 million) in Q2-2020. This includes provision of Rs. 497 crore (US$ 67 million) made on a prudent basis on loans aggregating to Rs. 1,410 crore (US$ 191 million) that were not classified as non-performing pursuant to the Supreme Court's interim order dated September 3, 2020 directing that accounts which were not classified as non-performing till August 31, 2020, should not be classified as non-performing until further orders

- At September 30, 2020, the Bank held Covid-19 related provision of Rs. 8,772 crore (US$ 1.2 billion)

- The profit before tax grew by 21% year-on-year to ₹ 5,266 crore (US$ 714 million) in Q2-2021 from ₹ 4,367 crore (US$ 592 million) in Q2-2020

Tax expense was Rs. 1,015 crore (US$ 138 million) in Q2-2021 compared to Rs. 3,712 crore (US$ 503 million) in Q2-2020. The tax expense in Q2-2020 included a one-time additional charge due to re-measurement of accumulated deferred tax assets at the revised marginal tax rate

- On a standalone basis, the profit after tax was Rs. 4,251 crore (US$ 576 million) in Q2-2021 compared to ₹ 655 crore (US$ 89 million) in Q2-2020

- The consolidated return on equity was 14.2% in Q2-2021

The retail loan portfolio grew by 13% year-on-year and 6% sequentially at September 30, 2020. Retail loans comprised 65.8% of the total loan portfolio at September 30, 2020. Including non-fund outstanding, retail was 53.6% of the total portfolio at September 30, 2020. Growth in the performing domestic corporate portfolio was about 7% year-on-year. The domestic advances grew by 10% year-on-year and 4% sequentially at September 30, 2020. Total advances increased by 6% year-on-year to Rs. 652,608 crore (US$ 88.5 billion) at September 30, 2020 from Rs. 613,359 crore (US$ 83.1 billion) at September 30, 2019.

Total deposits increased by 20% year-on-year to Rs. 832,936 crore (US$ 112.9 billion) at September 30, 2020. Average current account deposits increased by 21% year-on-year in Q2-2021. Average savings account deposits increased by 15% year-on-year in Q2-2021. Total term deposits increased by 26% year-on-year to Rs. 468,356 crore (US$ 63.5 billion) at September 30, 2020.

The Bank had a network of 5,288 branches and 15,158 ATMs at September 30, 2020.

During the quarter, the gross additions to NPAs were ₹ 3,017 crore (US$ 409 million). Recoveries and upgrades, excluding write-offs, from nonperforming loans were Rs. 1,945 crore (US$ 264 million) in Q2-2021. The net NPA ratio was 1.00% at September 30, 2020. Including loans amounting to Rs. 1,410 crore (US$ 191 million) not classified as non-performing pursuant to the Supreme Court's interim order, the net NPA ratio would have been 1.12% at September 30, 2020 compared to 1.23% at June 30, 2020. The provision coverage on non-performing loans increased from 78.6% at June 30, 2020 to 81.5% at September 30, 2020. The fund-based and non-fund based outstanding to borrowers rated BB and below (excluding nonperforming assets) decreased to Rs. 16,167 crore (US$ 2.2 billion) at September 30, 2020 from Rs. 17,110 crore (US$ 2.3 billion) at June 30, 2020.

The Bank's total capital adequacy at September 30, 2020, including profits for H1-2021, was 19.33% and Tier-1 capital adequacy was 17.89% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively. During the quarter, the Bank raised equity capital of Rs. 15,000 crore (US$ 2.0 billion).

Subsidiaries

- Profit after tax of ICICI Prudential Life Insurance (ICICI Life) was Rs. 303 crore (US$ 41 million) in Q2-2021, at a similar level compared to Q2-2020. Value of New Business (VNB) of ICICI Life was Rs. 401 crore (US$ 54 million) in Q2- 2021, at a similar level compared to Q2-2020. The new business margin increased from 21.7% in FY2020 to 27.4% in Q2-2021. Protection based annualised premium equivalent was Rs. 232 crore (US$ 31 million) in Q2-2021 compared to Rs. 283 crore (US$ 38 million) in Q2-2020. New business premium was Rs. 2,957 crore (US$ 401 million) in Q2-2021 compared to Rs. 2,926 crore (US$ 397 million) in Q2-2020. The Embedded value was Rs. 25,711 crore (US$ 3.5 billion) at September 30, 2020 compared to Rs. 22,680 crores (US$ 3.1 billion) at September 30, 2019.

- Profit after tax of ICICI Lombard General Insurance Company (ICICI General) grew by 35% year-on-year to ₹ 416 crore (US$ 56 million) in Q2-2021 from ₹ 308 crore (US$ 42 million) in Q2-2020. The Gross Direct Premium Income (GDPI) of ICICI General grew by 8% to ₹ 3,189 crore (US$ 432 million) in Q2-2021 compared to ₹ 2,953 crore (US$ 400 million) in Q2-2020. The combined ratio was 99.7% in Q2-2021 compared to 102.6% in Q2-2020.

- The profit after tax of ICICI Securities, on a consolidated basis, as per Ind AS, increased by 106% year-on-year to ₹ 278 crore (US$ 38 million) in Q2-2021 from ₹ 135 crore (US$ 18 million) in Q2-2020.

- The profit after tax of ICICI Prudential Asset Management Company (ICICI AMC), as per Ind AS, was ₹ 282 crore (US$ 38 million) in Q2-2021 compared to ₹ 305 crore (US$ 41 million) in Q2-2020.

Shares of ICICI BANK LTD. was last trading in BSE at Rs.392.55 as compared to the previous close of Rs. 399.9. The total number of shares traded during the day was 1062794 in over 16379 trades.

The stock hit an intraday high of Rs. 402.85 and intraday low of 388.1. The net turnover during the day was Rs. 419626051.

Source : Equity Bulls

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