ICI CICI CI Gr Group: oup: Per erfor ormanc mance e & St Stra rateg egy June ne 201 015
Cer ertai ain statem ements s in these se slides des are e forwar ard-look ooking g statem ements. s. These se statem ements s are e based ed on manageme agement's s current expecta pectation ons s and are e subject ect to uncer ertain ainty y and change ges s in circu cums mstan ance ces. s. Actual ual res esult ults s may differ ffer material ally from om those se includ uded ed in these se stateme ments nts due to a variety of factors ors. . More e inform ormat ation on about these se factors ors is contai ained ned in ICICI Bank's 's filings ngs with h the US Securi urities es and Exchange ange Commissi mission on. All finan anci cial al and other er inform ormat ation on in these se slides, des, other er than finan anci cial al and other er inform ormation n for specifi cific c subsi sidiari aries es wher ere e specifi cifical cally menti ntion oned, ed, is on an unconsol solidat ated basis s for ICICI Bank Limite mited only unles ess s specifi cifical cally y stated ed to be on a consolida olidated basis s for ICICI Bank Limi mited ted and its subsidi idiarie aries. s. Pl Pleas ase also o refer efer to the e stateme tement t of unconsol solidat ated, d, consoli olida dated d and segm gment ental al res esult ults s req equire uired by Indian n regul egulat ation ons s that has, , along ng with these se slides, des, been en filed ed with the e stock k exchanges in India where ICICI Bank’s equity shares are listed and with the New York k Stock k Excha hange nge and the e US Securi urities s and Exchange ange Commi mmiss ssion, n, and is ava vail ilable able on our website site www.i .icici icibank.co ank.com 2
Indi dian an econ onomy omy & ba bankin king g secto tor 3
India: : st strong long ter erm fundam ament entals als Health thy savings gs & Favo vourable ble demogr graphic phics investm tmen ent rates s Key drivers ers of growth gr High gh potent ntial ial for Rising ing per ca capita infra rastru tructur ture e income deve velo lopm pment ent 4
India: : st strong long ter erm fundam ament entals als Favo vorable le demogra raphic hic profile file A young g populat ation on with h media dian age e of 25 year ars 1,432 1,501 1,432 1,501 Risi sing ng shar are e of work rking ing age e populat ation ion 1,053 1,053 • Addition of around d 12 12 million on to the e 840 840 840 840 workf kforce orce every ery year ar for next five ve year ars • Worki king ng age e populat ation n to excee ceed 50% of total al populat ation ion in 2025 Depe penden dency rati tios s to rema emain low till ll 2040 2040 5
India: : st strong long ter erm fundam ament entals als Strong domestic tic demand Per Capita a GDP (USD) 1,432 1,501 1,053 Rising ing per er capita pita GDP acceler elerati ating ng 1,509 840 840 7 domestic omestic dema mand nd 749 749 2005 2005 2013 2013 Health lthy pr priva vate te con onsumption sumption dr driven en by by favo vourable urable demo mograph raphics ics and rising ing income ome levels els 6
India: : st strong long ter erm fundam ament entals als Health thy y savi vings gs & i inve vestm tment ent rate Investment vestment rate te ~32% ~32% ~25% ~25% Savin vings gs & investment vestment rates tes continue ntinue to be in excess ess of 30% FY2014 FY2003 7
Ba Bankin ing g se sector framew ework ork Under r penetra trated ted sect ctor or • Bank credi edit / GDP: ~59% 59% Growth h • Retai ail credi edit / GDP DP: ~10 ~10% potential tial • Mortgag gage e / GDP: ~5% 5% Fundin ing • High gh propor ortion on of deposit sit funding ng profile ile • Conse servat rvative e equit ity to asse sets ts • 21.5% % of net dema mand and time me liabi abilities s (NDTL TL) ) investe ested d in government vernment secu curities Asset profile As ile • 4.00% % of NDTL as cash res eserv erve ratio with RBI • Dome mest stic c oriented balance ce shee eets 8
Ba Bankin ing g se sector framew ework ork Conserv rvativ tive e regu gula latory ory framew ework rk acy Averag age e capital al adequacy uacy for the system em Capital al adequ quacy ~13% ~13% Impleme ementat ation n of Basel III in FY2014 14 Capital al requi uireme ement nts s 1% higher her as compared ared to BCBS Asse set From m April 1, 2015 loan res estructurings cturings will lead ad class ssificat fication to the asse set being ng class ssifi fied ed as non-per performin orming, other er than for proje ject t loans s 9
ICI CICI CI Bank: k: an ov overv rvie iew 10
ICICI Ba Bank Largest gest priva vate te sect ctor r bank in India ia in terms of total assets Tier r I capital l adequacy of 12.78% 78% at March 31, 2015 as per RBI’s guidelines on Basel III norms Diversi rsified fied loan portfolio olio Large ge customer er base Global l presen ence e in 17 countrie ries (inclu ludin ding g India) Investment grade ratings from Moody’s and S&P 11
ICI CICI CI Bank: k: foc ocus us & ob objectives tives 12
Focus s & ob objec ectives ives Robust t fundin ing g profile file Balance ance sheet t Di Dive versified rsified loan mix with incr crea easing ing str trength ngth share of retail il Profitability fitability Granular lar & s stable e inco come e streams ms imp mprove oveme ment nt Efficien iciency of operation tions Achiev ieved sustain stained ed imp mprovement vement in retu turn rn ratio tios 13
Focus s & ob objec ectives ives Robust t fundin ing g profile file Balance ance sheet t Di Dive versified rsified loan mix with incr crea easing ing str trength ngth share of retail il Levera erage ge capital l for gr growth Granular lar & s stable e income e streams ms Profitability fitability Efficien iciency of operation tions imp mprove oveme ment nt Normalis lisatio tion n of credit it costs Focus s on imp mprove oveme ment nt in retu turn rn on equity ty 14
Per erfo forma rmanc nce e over er the e yea ears Health thy y balance ce sheet t gr growth Robust funding ng profile file ~17% CAGR R in CASA deposits sits since ce Mar 2009 Retai ail deposi sits s as % of domes estic c deposi sits increa creased sed from om ~50% at Mar 2009 to ~76% % at Mar 2015 Dive versifi fied ed loan mix ~ 16% CAGR R in domes estic c loans s since ce Mar 2011 ~20% CAGR R in ret etai ail loans s since ce Mar 2012 15
Per erfo forma rmanc nce e over er the e yea ears Strong g core operatin ting g perform ormanc nce e Granul anular ar revenue venue streams eams Margi gin n impro prove veme ment nt driven ven by focus s across ss busines nesses ses Domes mestic tic marg rgins ins improv proved ed by y ~100 bps since ce FY2010 10 Overse erseas as margins gins impr proved ved from om 0.41% 1% in FY2010 10 to 1.65% % in FY2015 15 Improv ovem ement ent in oper erating ng effi ficie ciency cy Cost-inc ncome ome (%) Costs s contai ained ned while continuing inuing scale le up in distribu bution n & inves estment ents s in technology chnology 16
Per erfo forma rmanc nce e over er the e yea ears Sustaine ned impro rovem emen ent t in retur urn n ratios os About 90 90 bps improv provem ement ent in Standal alon one e RoA over FY2009 09 Consoli olidat dated ed RoE improv proved ed from om less ss than 8% in FY2009 09 to 15.0% % in FY2015 15 Driven iven by focused used execut ution ion of arti ticulated culated str trate tegy gy 17
FY2015: 15: per erforma rmanc nce e rev eview ew Operating ting perfo form rmanc nce e remain ined ed robust; t; healthy thy funding ng profile ile and strong ng retail il portfol folio gr growth h maintain ined ed NIM impro prove ved by 15 15 bps to 3.48% NII I grew ew by y 16% Retai ail fee ee growt owth rem emai ained ned healthy hy Non-inte Non interest rest income come ~20% growth owth in divi viden dend d income ome grew ew by 17% Cost-to to-inco come me ratio o improv proved ed from om Oper erat ating ng effici ficiency 38.2% % in FY2014 14 to 36.8% % in FY2015 18
FY2015: 15: per erforma rmanc nce e rev eview ew Slippa page ges s from restru ructur tured ed loans increa eased sed gi given n prolong onged ed economic ic weakness & slow recovery ery FY2014 14 FY2015 15 ` billion 45.40 80.78 Gross oss NPA additions ns 7.27 45.29 Less ss: slippage pages s from om res estruc uctured ured loans 38.13 35.49 New NPA PA forma rmation tion Rest structuring cturing additions ns 66.33 53.94 104.46 46 89.43 New NPA PA forma rmation tion and res estru tructur turing ng Aggrega gregate te new NPA A for orma matio tion n and d restructuring tructuring add dditi tions ons lower th than n FY2014 014 19
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