Finance Essay

6869 WordsFeb 5, 201328 Pages
4QFY2012 Result Update | Banking April 28, 2012 ICICI Bank Performance Highlights Particulars (` cr) NII Pre-prov. profit PAT Source: Company, Angel Research BUY CMP Target Price 3QFY12 2,506 2,354 1,503 % chg (qoq) 8.2 14.2 15.0 4QFY11 2,312 2,343 1,437 % chg (yoy) 17.3 14.7 20.3 `869 `1,183 12 Months 4QFY12 2,712 2,687 1,728 Investment Period Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking 99,858 1.3 1119/641 653,759 10 17,187 5,209 ICBK.BO ICICIBC@IN ICICI Bank reported healthy performance for 4QFY2012. Net profit for the bank grew by 20.3% yoy to `1,728cr. Key highlights of the results were a) 33bp sequential increase in domestic NIMs mainly driven by no securitization losses during the quarter and full impact of base rate hike and b) continued improvement in asset quality front. We maintain our Buy view on the stock. NIMs and asset quality, both improved: During the quarter, advances for the bank increased by healthy 17.3% yoy (3.1% qoq), aided by a strong 29.5% yoy (16.2% qoq) growth in SME book, 26.6% yoy growth in corporate book and 26.0% yoy growth in Overseas book (excl. positive impact of INR depreciation 10.4% yoy). Deposits accretion moderated with growth of 13.2% yoy (sequential decline of 2.0%), mainly on account of subdued current deposits growth and moderate 13.7% yoy saving deposits growth. Consequentially, CASA ratio declined 160bp yoy (10bp qoq) to 43.5%. Domestic NIMs improved by 33bp sequentially to 3.3%; while, Overseas NIMs improved by 12bp qoq to 1.5%. Non-interest income (excl. treasury) increased by only 12.7% yoy, on back of moderation in corporate fee income. Misc. other income for the bank grew to `342cr from `46cr in 4QFY2011, aided mainly by higher dividend income of ~`175cr. The bank’s asset quality

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