ICICI Bank: Performance Review – Quarter ended December 31, 2020

ICICI Bank Limited

ICICI Bank Towers

Bandra Kurla Complex

Mumbai 400 051

News Release

January 30, 2021

Performance Review: Quarter ended December 31, 2020

• Profit after tax grew by 19% year-on-year to ` 4,940 crore (US$ 676 million) in the quarter ended December 31, 2020 (Q3-2021) compared to ₹ 4,146 crore (US$ 567 million) in the quarter ended December 31, 2019 (Q3-2020)
• Core operating profit (profit before provisions and tax, excluding treasury income) grew by 15% year-on-year to ₹ 8,054 crore (US$ 1.1 billion) in Q3-2021
• Total deposits grew by 22% year-on-year to ` 874,348 crore (US$ 119.7 billion) at December 31, 2020
• • 19% growth in average current and savings account (CASA) deposits in Q3-2021; average CASA ratio was 41.8% in Q3- 2021
  • Term deposits grew by 26% year-on-year at December 31, 2020
• Domestic loans grew by 13% year-on-year at December 31, 2020
• • Retail loans grew by 15% year-on-year
• Net non-performing asset (NPA) ratio was 0.63% at December 31, 2020; on a proforma basis, including loans not classified as non-performing pursuant to the Supreme Court's interim order and contingency provisions for the same, the net NPA ratio would have been 1.26% compared to 1.12% at September 30, 2020 and 1.41% at March 31, 2020
• • Provision coverage ratio on a proforma basis was 77.6% at December 31, 2020
• At December 31, 2020, the Bank held aggregate Covid-19 related provision of ` 9,984 crore (US$ 1.4 billion), including contingency provision for proforma NPAs amounting to ` 3,509 crore (US$ 480 million) for loans not classified as non- performing pursuant to the Supreme Court's interim order
• Total capital adequacy ratio of 19.51% and Tier-1 capital adequacy ratio of 18.12% on a standalone basis at December 31, 2020 (including profits for the nine months ended December 31, 2020)

ICICI Bank Limited

ICICI Bank Towers

Bandra Kurla Complex

Mumbai 400 051

The Board of Directors of ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174,

NYSE: IBN) at its meeting held at Mumbai today, approved the standalone and consolidated accounts of the Bank for the quarter ended December 31, 2020. The statutory auditors have conducted a limited review and have issued an unmodified report on the standalone and consolidated financial statements for the quarter ended December 31, 2020.

Profit & loss account

• The core operating profit (profit before provisions and tax, excluding treasury income) increased by 15% year-on-year to ₹ 8,054 crore (US$ 1.1 billion) in Q3-2021 from ₹ 7,017 crore (US$ 960 million) in Q3-2020
• Net interest income (NII) increased by 16% year-on-year to ` 9,912 crore (US$ 1.4 billion) in Q3-2021 from ` 8,545 crore (US$ 1.2 billion) in Q3- 2020
• The net interest margin was 3.67% in Q3-2021 compared to 3.57% in the quarter ended September 30, 2020 (Q2-2021) and 3.77% in Q3-2020
• Non-interestincome, excluding treasury income, was ₹ 3,921 crore (US$ 537 million) in Q3-2021 compared to ₹ 4,043 crore (US$ 553 million) in Q3-2020
• Fee income was ₹ 3,601 crore (US$ 493 million) in Q3-2021 compared to ₹ 3,596 crore (US$ 492 million) in Q3-2020. Fee income increased sequentially by 15% in Q3-2021 over Q2-2021 reflecting the increase in customer spending, borrowing and investment activity. Retail fees constituted 78% of total fees in Q3-2021
• Treasury income was ` 766 crore (US$ 105 million) in Q3-2021 compared to ` 531 crore (US$ 73 million) in Q3-2020. During Q3-2021, the Bank sold 2.2% shareholding in ICICI Securities for compliance with minimum public shareholding norms resulting in a gain of ` 329 crore (US$ 45 million)
• Provisions (excluding provision for tax) were ` 2,742 crore (US$ 375 million) in Q3-2021 compared to ` 2,083 crore (US$ 285 million) in Q3- 2020. During Q3-2021, the Bank made contingency provision amounting to ` 3,012 crore (US$ 412 million) for borrower accounts not classified as non-performing pursuant to the interim order of the Supreme Court. The Bank utilised ` 1,800 crore (US$ 246 million) of Covid-19 related provisions made in the earlier periods
• During Q3-2021, the Bank has changed its provisioning policy on non- performing assets to make it more conservative. The contingency provision made on a prudent basis for loans overdue for more than 90 days at December 31, 2020 but not classified as non-performing pursuant to the Supreme Court's interim order, also reflects the revised policy. The change in policy resulted in higher provision on advances

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ICICI Bank Limited

ICICI Bank Towers

Bandra Kurla Complex

Mumbai 400 051

amounting to ₹ 2,096 crore (US$ 287 million) during Q3-2021 for aligning provisions on the outstanding loans to the revised policy

• At December 31, 2020, the Bank held aggregate Covid-19 related provision of ` 9,984 crore (US$ 1.4 billion), including contingency provision for proforma NPAs amounting to ` 3,509 crore (US$ 480 million) for loans not classified as non-performing
• The profit before tax grew by 11% year-on-year to ₹ 6,078 crore (US$ 832 million) in Q3-2021 from ₹ 5,465 crore (US$ 748 million) in Q3-2020
• On a standalone basis, the profit after tax grew by 19% year-on-year to ` 4,940 crore (US$ 676 million) in Q3-2021 compared to ₹ 4,146 crore (US$ 567 million) in Q3-2020

Operating review

The continued pickup in economic activity and tailwinds from the festive season combined with the Bank's digital initiatives and extensive franchise reflected in an increase in disbursements across retail products during Q3- 2021. Mortgage disbursements increased further in Q3-2021 over Q2-2021 and reached an all-time monthly high in December driven by the Bank's efforts to offer a convenient and frictionless experience to customers by digitising the entire underwriting process, with instant loan approvals. Disbursements of auto loans continued to increase from the September levels and crossed pre-Covid levels in December. Credit card spends also reached pre-Covid levels in December led by increased spends in categories such as health & wellness, electronics and e-commerce.

Credit growth

The retail loan portfolio grew by 15% year-on-year and 7% sequentially at December 31, 2020. Retail loans comprised 65.6% of the total loan portfolio at December 31, 2020. Including non-fund outstanding, retail was 54.1% of the total portfolio at December 31, 2020. Growth in the performing domestic corporate portfolio was about 10% year-on-year driven by disbursements to higher rated corporates to meet their working capital and capital expenditure requirements. While various sectors and multiple corporate clients contributed to this growth, some focus segments were highly rated PSUs and large established corporate groups. The domestic advances grew by 13% year-on-year and 7% sequentially at December 31, 2020. Total advances increased by 10% year-on-year to ` 699,017 crore (US$ 95.7 billion) at December 31, 2020 from ` 635,654 crore (US$ 87.0 billion) at December 31, 2019.

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ICICI Bank Limited

ICICI Bank Towers

Bandra Kurla Complex

Mumbai 400 051

Deposit growth

Total deposits increased by 22% year-on-year to ` 874,348 crore (US$ 119.7 billion) at December 31, 2020. Average current account deposits increased by 27% year-on-year in Q3-2021. Average savings account deposits increased by 16% year-on-year in Q3-2021. Total term deposits increased by 26% year-on-year to ` 478,932 crore (US$ 65.5 billion) at December 31, 2020.

The Bank had a network of 5,267 branches and 14,655 ATMs at December 31, 2020.

Digital initiatives and transactions

During Q3-2021, the Bank expanded its state-of-the-art mobile banking app, iMobile, to iMobile Pay which offers payment and banking services to customers of any bank. iMobile Pay can be used for making payments using Unified Payments Interface (UPI) and also offers instant banking services such as opening savings account, investments, loans and credit cards among others. The Bank has seen about 500,000 million activations of iMobile Pay from non-ICICI Bank customers since it was launched two months ago. The Bank launched 'ICICI Bank Mine', India's first comprehensive banking programme for millennial customers. It offers an instant savings account, a feature driven iMobile application, investment guidance to suit the needs of millennials, curated credit and debit card, and instant personal loans & overdrafts. The Bank incroduced a facility called 'ICICI Bank Cardless EMI' which enables pre-approved customers to buy their favourite gadgets or home appliances using their mobile phone and Permanent Account Number (PAN) instead of physical wallet or cards. They can also convert the high-value transactions into easy, no-cost monthly instalments by simply using their registered mobile number and PAN on the Point of Sale (PoS) machine at the retail outlets.

The Bank launched an online platform called 'Infinite India' for foreign companies looking to establish or expand business in the country. The platform offers not only banking solutions but also value-added services such as incorporation of a business entity, corporate filings, licenses and registrations to foreign companies or MNCs coming to India.

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