ICICI net profit up 1.1 per cent despite losses
27 Oct 2008
ICICI Bank Limited, the country's second largest lender, reported 1.2 per cent increase in earnings for the second quarter helped by higher net interest income and lower expenses, despite losses on account of the credit market crisis.
ICICI Bank reported profit after tax for the second quarter of Rs1,014 crore ($216 million), compared with Rs1,003 crore or ($214 million) in the year-before period.
Operating profit increased to Rs2,285 crore from Rs1,887 crore in the year-ago quarter. Core operating profit, which excludes treasury, surged 42 per cent to Rs2,437 crore, or $519 million, from Rs1,712 crore, or $365 million, in the comparable period last year.
Net interest income rose 20 per cent to Rs2,148 crore ($457 million) from Rs1,786 crore ($380 million) in the second quarter of the previous year. Non-interest income rose to Rs2,030 crore from Rs1,897 crore in the corresponding period last year.
Fee income increased 26 per cent to Rs1,876 crore ($399 million) from Rs1,486 crore ($316 million) in the comparable period last year. Lease and other income fell to Rs154 crore from Rs411 crore in the year-before quarter.
Operating expenses decreased 12 per cent to Rs1,688 crore or $359 million in the recent quarter from Rs1,926 crore or $410 million in the second quarter of 2008 due to the bank's focus on efficiency improvement and cost rationalisation.
The cost/average asset ratio for the quarter was 1.7 per cent compared with 2.1 per cent last year, and the cost/income ratio for second quarter declined to 42.5 per cent from 50.5 per cent in the corresponding period last year.
Net non-performing asset stood at 1.8 per cent. Consolidated NPA together with those of its subsidiaries was 1.6 per cent. NPAs, which excludes the impact of farm loan waiver, were Rs868 crore ($185 million) compared with Rs878 crore ($187 million) in the first quarter of 2007.
