ICICI Bank 2015 Annual Report Download - page 110

Management’s Discussion & Analysis
108 Annual Report 2014-2015
Retail banking segment
The profit before tax of the retail banking segment increased from ` 18.30 billion in fiscal 2014 to ` 27.24 billion in fiscal 2015
due to an increase in net interest income and non-interest income, offset, in part, by increase in non-interest expenses.
Net interest income increased by 23.7% from ` 57.73 billion in fiscal 2014 to ` 71.42 billion in fiscal 2015 primarily due to
growth in the loan portfolio and increase in average current account and savings account deposits.
Non-interest income increased by 18.1% from ` 36.21 billion in fiscal 2014 to ` 42.77 billion in fiscal 2015, primarily due to
a higher level of loan processing fees, third party product distribution fees, fees from credit card portfolio and transaction
banking fees.
Non-interest expenses increased by 12.5% from ` 76.58 billion in fiscal 2014 to ` 86.15 billion in fiscal 2015, primarily due
to increase in retail lending business and increase in operating expenses due to expansion in branch network.
In fiscal 2015, there was a provision charge of ` 0.68 billion compared to a write-back of ` 0.80 billion in fiscal 2014.
Wholesale banking segment
Profit before tax of the wholesale banking segment decreased from ` 65.88 billion in fiscal 2014 to ` 62.24 billion in
fiscal 2015 primarily due to increase in provisions, offset, in part, by an increase in net interest income.
Net interest income increased by 12.0% from ` 75.39 billion in fiscal 2014 to ` 84.47 billion in fiscal 2015 primarily due to
growth in loan portfolio in the wholesale banking segment. Non-interest income decreased by 3.8% from ` 40.57 billion in
fiscal 2014 to ` 39.01 billion in fiscal 2015, primarily due to decrease in fee income. Provisions were higher primarily due
to higher provisions on the corporate and SME loan portfolio reflecting higher additions to NPAs (including slippages from
the restructured loans) and restructured loans in these segments.
Treasury segment
Profit before tax of the treasury segment increased from ` 52.52 billion in fiscal 2014 to ` 64.50 billion in fiscal 2015
primarily due to increase in non-interest income. The non-interest income was higher primarily due to higher gains on
government securities & other fixed income securities, exchange gain on overseas related operations, dividend income
from subsidiaries and gains on equity and mutual fund investments portfolio.
Other banking segment
Profit before tax of other banking segment in fiscal 2015 was ` 4.22 billion compared to profit of ` 2.98 billion in fiscal 2014
primarily due to higher net interest income.
CONSOLIDATED FINANCIALS AS PER INDIAN GAAP
The consolidated profit after tax including the results of operations of ICICI Bank’s subsidiaries and other consolidating
entities increased by 10.9% from ` 110.41 billion in fiscal 2014 to ` 122.47 billion in fiscal 2015 primarily due to increase
in the profit of ICICI Bank, consolidated profit of ICICI Securities Limited, ICICI Securities Primary Dealership Limited, ICICI
Prudential Life Insurance Company Limited and ICICI Prudential Asset Management Company Limited, offset, in part, by
decrease in profit of ICICI Bank Canada and ICICI Bank UK PLC. The consolidated return on average equity increased from
14.91% in fiscal 2014 to 14.99% in fiscal 2015. At March 31, 2015, consolidated Tier-1 capital adequacy ratio was 12.88% as
against the current requirement of 7.00% and total consolidated capital adequacy ratio was 17.20% as against the current
requirement of 9.00%.
Profit after tax of ICICI Prudential Life Insurance Company Limited (ICICI Life) increased from ` 15.67 billion in fiscal 2014
to ` 16.34 billion in fiscal 2015 due to increase in net premium earned and investment income and decrease in claims
and benefits paid, offset, in part, by increase in transfer to linked funds and provision for policyholder liabilities. The retail
weighted received premium increased by 41.3% from ` 32.53 billion in fiscal 2014 to ` 45.96 billion in fiscal 2015.
Profit before tax of ICICI General increased from ` 5.20 billion in fiscal 2014 to ` 6.91 billion in fiscal 2015 primarily due
to decrease in claims and benefits paid and increase in commission income and investment income, offset, in part,
by decrease in net earned premium and increase in operating expenses. However, the increase in profit after tax was
lower from ` 5.11 billion in fiscal 2014 to ` 5.36 billion in fiscal 2015 due to increase in income tax from ` 0.09 billion