The document analyzes key financial metrics and performance of ICICI Bank for the periods of March 2016 through March 2020. Some of the key highlights include:
- Total assets have increased over the periods, reaching over 1 trillion rupees by March 2020. Earning assets also increased, with advances being the largest category.
- Interest income and operating revenue have generally increased each period. However, profit after tax peaked in March 2017 and has since declined.
- Key ratios like return on assets (ROA), return on equity (ROE), and net interest margin (NIM) show overall declining profitability and returns over the periods analyzed.
- Asset quality ratios like gross NPAs have also
The document analyzes key financial metrics and performance of ICICI Bank for the periods of March 2016 through March 2020. Some of the key highlights include:
- Total assets have increased over the periods, reaching over 1 trillion rupees by March 2020. Earning assets also increased, with advances being the largest category.
- Interest income and operating revenue have generally increased each period. However, profit after tax peaked in March 2017 and has since declined.
- Key ratios like return on assets (ROA), return on equity (ROE), and net interest margin (NIM) show overall declining profitability and returns over the periods analyzed.
- Asset quality ratios like gross NPAs have also
The document analyzes key financial metrics and performance of ICICI Bank for the periods of March 2016 through March 2020. Some of the key highlights include:
- Total assets have increased over the periods, reaching over 1 trillion rupees by March 2020. Earning assets also increased, with advances being the largest category.
- Interest income and operating revenue have generally increased each period. However, profit after tax peaked in March 2017 and has since declined.
- Key ratios like return on assets (ROA), return on equity (ROE), and net interest margin (NIM) show overall declining profitability and returns over the periods analyzed.
- Asset quality ratios like gross NPAs have also
The document analyzes key financial metrics and performance of ICICI Bank for the periods of March 2016 through March 2020. Some of the key highlights include:
- Total assets have increased over the periods, reaching over 1 trillion rupees by March 2020. Earning assets also increased, with advances being the largest category.
- Interest income and operating revenue have generally increased each period. However, profit after tax peaked in March 2017 and has since declined.
- Key ratios like return on assets (ROA), return on equity (ROE), and net interest margin (NIM) show overall declining profitability and returns over the periods analyzed.
- Asset quality ratios like gross NPAs have also
Risk Ratios Liquidity Risk= Short term securities/ Deposits 0.38 Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive Liabilities 0.56 Credit Risk = Provisioning / Assets 1.62% Capital Risk = Capital / Assets 12.44% Leverage ratio= Total equity/Total assets 0.124 Total capital ratio= (Total equity + Long-term debt + Reserve for loan losses)/Total assets 0.37 Provision for loan loss ratio= PLL/ TL (provision for loan losses/total loans and leases) 0.02681 Loan Ratio = Net loans/ Total assets 0.242
Loss Ratio = Net charge-offs on loans (gross charge-offs minus recoveries)/
Total loans and leases Reserve Ratio = Reserve for loan losses (reserve for loan losses last year minus gross charge-offs plus PLL and recoveries)/Total loans and leases
Nonperforming ratio= Nonperforming assets (nonaccrual loans and restructured
loans)/Total loans and leases 0.0614
Operating efficiency (cost control)= Wages and salaries/Total expenses
Tax rate = Total taxes paid/Net income before taxes 34% Gap ratio = (Interest rate-sensitive assets – Interest rate-sensitive liabilities)/ Total assets -0.176 CICI BANK
34,245.16 30,196.40 37,851.46 47,994.99 1,165.11 1,285.81 1,289.46 1,294.76 98,779.71 103,867.56 107,073.91 115,206.16 99944.82 105153.37 108363.37 116500.92 871728.95 984336.76 1072818.17 1214863.59 54,156.28 54,965.89 63,401.19 74,798.32 9,801.09 6,777.42 3,363.30 7,930.81 63,957.37 61,743.31 66,764.49 82,729.13 32,418.96 31,940.05 36,386.40 41,531.25 8,263.70 9,009.25 10,503.91 12,394.63 15,208.14 17,306.98 19,661.14 14,053.23 2,180.12 2,661.85 3,360.60 3,746.03 1478 657 414 6117 9,801.00 6,777.00 3,363.00 7,931.00 The ROA shows the return to the 42552 54063 46292 41409 the bank. One reason could be th
EM is falling in first 2 years than i
financed by the Equity. 0.0127 0.0077 0.0035 0.0072 The equity multiplier is a ratio tha purchase of assets. For, ICICI it can be seen that the e EM is falling in first 2 years than i financed by the Equity. The equity multiplier is a ratio tha 7.7282 8.3658 8.9047 9.4280 purchase of assets. For, ICICI it can be seen that the e 12.94% 11.95% 11.23% 10.61% 9.81% 6.44% 3.10% 6.81% TE/TA represents how much of as 16% which is indicating that the d 15% 11% 5% 10% 8.28% 7.02% 6.92% 7.53% 7.7282 8.3658 8.9047 9.4280 9.81% 6.44% 3.10% 6.81% ROE is Falling YOY but shown an i beneficial for a firm. For, ICICI ban comparison to previous years. 2.81% 2.62% 2.80% 3.03% Net Profit Margin - It indicates how 0.20% -0.25% -0.74% -0.41% the firm. For icic bank it is 10% in really well and gave more return c 1.97% 1.97% 2.04% 1.28% 1.27% 0.77% 0.35% 0.72% OR/TA It indicates that how much firm. 3.10% 2.88% 3.09% 3.28% 90.81% 90.89% 90.65% 92.32% 2.81% 2.62% 2.80% 3.03% Total Asset/Total Equity (Equity M that measures a company's financ can be seen that the equity multip
7.72% 6.87% 7.25% 7.38%
5.08% 4.29% 4.45% 4.45% (II - IE)/ TA It represents interest in which simply implies that the firm 90.90% 93.03% 93.55% 92.10% For ICICI bank it is showing the po 2.64% 2.58% 2.80% 2.93% well.
12.92% 14.59% 15.73% 14.98% (OI-OE)/ TA It indicates that how
year 2020 its -0.41% and over the banks because most the income i
0.33 0.36 0.32 0.32
0.51 0.56 0.49 0.47 The liquidity coverage ratio is the re measure a company's ability to mee 1.97% 1.97% 2.04% 1.28% hardships. The higher ratio, the high 12.94% 11.95% 11.23% 10.61% short term liability. 0.129 0.120 0.112 0.106 Interest rate risk refers to the curren also affect a bank’s earnings by alter 0.32 0.33 0.28 0.25 Credit risk refers to the risk of defau risk decreased in 2020 as compared 0.03276 0.03378 0.03351 0.02178 The capital-to-asset ratio calculates 0.191 0.208 0.171 0.148 is declining which is not a good sign
The capital ratio is the percentage of
capital ratio must be no lower than 8
The nonperforming loan ratio, bette has not made regular payments A ba a lower efficiency ratio means that a The capital ratio is the percentage of capital ratio must be no lower than 8
The nonperforming loan ratio, bette has not made regular payments A ba a lower efficiency ratio means that a
0.0917 0.1055 0.0789 0.0717
18% 11% 14% 337%
-0.203 -0.178 -0.225 -0.251
comments
Analysis
een a Upfall in the total asset hold by ICCI bank
A shows the return to the assets that the bank has invested in. In case of ICICC it is decresing over the years 2016-19 due to increased lo k. One reason could be the increase of operating expenses over the operating income but in 2020 it perform well
alling in first 2 years than increasing because of equity injection. Equity Multiplier depicts that how much assets of the company or firm d by the Equity. uity multiplier is a ratio that measures a company's financial leverage, which is the amount of money the company has borrowed to fina se of assets. CI it can be seen that the equity multiplier is increasing over the year . In 2020 it is 9.428 where as in 2016 it was 8.0412 alling in first 2 years than increasing because of equity injection. Equity Multiplier depicts that how much assets of the company or firm d by the Equity. uity multiplier is a ratio that measures a company's financial leverage, which is the amount of money the company has borrowed to fina se of assets. CI it can be seen that the equity multiplier is increasing over the year . In 2020 it is 9.428 where as in 2016 it was 8.0412
epresents how much of assets is owned by equity. The higher the ratio it is more beneficial for the firm. In 2020 it 10.61% where as in 20 hich is indicating that the dependency of assets on equity is decreasing over the year which is not good indicator for ICIC bank.
Falling YOY but shown an increase in 2020. ROE indicates the how much the firm is earning in response to its Equity the higher the ratio ial for a firm. For, ICICI bank it is 6.81% in 2020 in comparison to 3.10% in year 2019 which is clearly showing that the firm is performing rison to previous years. fit Margin - It indicates how much income is generated by the firm in response to its operating revenue and the higher the ratio it is ben m. For icic bank it is 10% in year 2020 which is increased in comparison to the previous years which is good indicator that the bank is per ell and gave more return compared to previous year
t indicates that how much the total operating sales of the firm in comparison to its total assets. The higher the ration the better it will b
set/Total Equity (Equity Multiplier) depicts that how much assets of the company or firm is financed by the Equity. The equity multiplier asures a company's financial leverage, which is the amount of money the company has borrowed to finance the purchase of assets. For, een that the equity multiplier is increasing over the year which is not good indicator. In 2020 it is 9.42 where as in 2016 it was 8.04
TA It represents interest income minus interest expenditure in response to the total assets. The positive and higher ratio is good for the imply implies that the firm is generating more interest income from its investments than its expenditure on debts in comparison to its I bank it is showing the positive trend over the past few years and it is 3.03% in the year 2020 which is indicating that ICICI bank is perfo
/ TA It indicates that how well the firm is doing in its non- interest income and non- interest expenditure in response to its total assets. 20 its -0.41% and over the years its is negative which is showing the expenditure Is more than the income which can be justifiable in cas because most the income is interest income only but the ICICI bank can improve this ratio by increasing the non- operating interest incom
ity coverage ratio is the requirement whereby banks must hold an amount of high-quality liquid assets that's enough to fund cash outflo a company's ability to meet its short-term financial obligations. A good liquidity ratio is anything greater than 1. It indicates that the com The higher ratio, the higher is the safety margin that the business possesses to meet its current liabilities. ICIC Bank's liquidity ratios ar m liability.
te risk refers to the current or prospective risk to the bank’s capital and earnings arising from adverse movements in interest rates that a bank’s earnings by altering interest rate-sensitive income and expenses, affecting its net interest income. ICICI has maintained it IRR b
k refers to the risk of default or non-payment or non-adherence to contractual obligations by a borrower. High credit risk means there is ased in 2020 as compared to previour year which is a good sign.
l-to-asset ratio calculates a company's assets and capital to determine whether there is enough capital to cover the assets. Higher the r g which is not a good sign
l ratio is the percentage of a bank's capital to its risk-weighted assets. Weights are defined by risk-sensitivity ratios whose calculation is tio must be no lower than 8% ICICI is maintaing its ratios near 12% from last 5 years, which means bank has less risk weighted assets.
erforming loan ratio, better known as the NPL ratio, is the ratio of the amount of nonperforming loans in a bank's loan portfolio to the to ade regular payments A bank's operating expenses are in the numerator and its revenue is in the denominator, fficiency ratio means that a bank is operating better. An efficiency ratio of 50% or under is considered optimal. l ratio is the percentage of a bank's capital to its risk-weighted assets. Weights are defined by risk-sensitivity ratios whose calculation is tio must be no lower than 8% ICICI is maintaing its ratios near 12% from last 5 years, which means bank has less risk weighted assets.
erforming loan ratio, better known as the NPL ratio, is the ratio of the amount of nonperforming loans in a bank's loan portfolio to the to ade regular payments A bank's operating expenses are in the numerator and its revenue is in the denominator, fficiency ratio means that a bank is operating better. An efficiency ratio of 50% or under is considered optimal. 6-19 due to increased losses of ell
of the company or firm is
any has borrowed to finance the
8.0412 of the company or firm is
any has borrowed to finance the
8.0412
it 10.61% where as in 2016 it was
r for ICIC bank.
uity the higher the ratio it is more
at the firm is performing well in
higher the ratio it is beneficial for
ator that the bank is performing
ation the better it will be for the
ty. The equity multiplier is a ratio
purchase of assets. For, ICICI it in 2016 it was 8.04
gher ratio is good for the firm
bts in comparison to its assets. g that ICICI bank is performing
ponse to its total assets. For the
h can be justifiable in case of operating interest income.
ough to fund cash outflows for 30 days. Liquidity ratios are similar to the LCR in that they It indicates that the company is in good financial health and is less likely to face financial Bank's liquidity ratios are below ideal, which means bank can face difficulty in paying off its
nts in interest rates that affect the bank’s banking book positions. Changes in interest rates I has maintained it IRR below 1, which is good sign.
redit risk means there is high chances of not receiving payment from borrower. ICICI credit
the assets. Higher the ratio, better is the position of the bank. During last 3 years ICICI ratios
tios whose calculation is dictated under the relevant Accord. Basel II requires that the total risk weighted assets.
's loan portfolio to the total amount of outstanding loans the bank holds.When a borrower tios whose calculation is dictated under the relevant Accord. Basel II requires that the total risk weighted assets.
's loan portfolio to the total amount of outstanding loans the bank holds.When a borrower
