ICICI Bank Q2 net profit up 2% on lower ops expenses
October 30, 2009
India's largest private sector lender ICICI Bank Ltd reported a marginally higher second quarter net profit on sequential decrease in operating and direct marketing agency expenses.
For the quarter to end-September, the lender said its net profit increased 2% to Rs10.40 billion from Rs10.10 billion despite total revenues, including interest, falling to Rs84.80 billion from Rs97.10 billion a year ago. Compared with the first quarter's net profit of Rs8.80 billion, the second quarter net profit is up 18%, the bank said.
During the quarter, ICICI Bank said its net interest revenues fell to Rs20.40 billion from Rs21.50 billion, same quarter last year due to decrease in advances owing to the moderation in system credit growth, and decline in advances of overseas branches.
Operating expenses, including direct marketing agency expenses, decreased to Rs13.60 billion from Rs15.40 billion a year ago, the bank said.
In the second quarter, ICICI Bank's fee-based revenues declined to Rs13.90 billion from Rs18.80 billion, same period last year but the lender said this is in line with the reduced investment and mergers and acquisition activity in the corporate sector that reflects change in market conditions in the second half of FY09.
On a consolidated basis, ICICI said its second quarter net profit zoomed 76% to Rs11.50 billion from Rs6.50 billion primarily by the sharp reduction in losses of its unit ICICI Prudential Life Insurance Co (ICICI Life) and increase in profit of other subsidiaries. -Yogesh Sapkale[email protected]