ICICI Bank 2010 Annual Report Download - page 67

SEGMENTAL INFORMATION
RBI has issued revised guidelines on segment reporting applicable from fiscal 2008. As per the guidelines, the
business operations of the Bank have the following segments:
zRetail Banking includes exposures which satisfy the four criteria of orientation, product, granularity and
low value of individual exposures for retail exposures laid down in the Basel Committee on Banking
Supervision’s document “International Convergence of Capital Measurement and Capital Standards: A Revised
Framework”.
zWholesale Banking includes all advances to trusts, partnership firms, companies and statutory bodies which
are not included under retail banking.
zTreasury includes the entire investment portfolio of the Bank.
zOther Banking includes hire purchase and leasing operations and other items not attributable to any particular
business segment.
All liabilities are transfer priced to a central treasury unit, which pools all funds and lends to the business units
at appropriate rates based on the relevant maturity of assets being funded after adjusting for regulatory reserve
requirements.
During fiscal 2010, the profit before tax of the retail banking segment was impacted by continued credit losses
in the unsecured retail asset portfolio. The retail banking segment reported a loss of Rs. 13.34 billion in fiscal
2010 as compared to a profit before tax of Rs. 0.58 billion in fiscal 2009. The retail assets portfolio also witnessed
higher prepayments and lower level of incremental lending resulting in lower level of net interest income and
loan-related fees.
Profit before tax of the wholesale banking segment was higher at Rs. 36.45 billion in fiscal 2010 as compared to
Rs. 34.13 billion in fiscal 2009. The increase was primarily due to the increase in the net interest income following
the decrease in the interest rates in the banking system which resulted in lower level of in inter-segment interest
expense on the wholesale banking portfolio. However, the increase during fiscal 2010, fee income in the wholesale
banking segment was impacted by the moderation in credit demand during the year.
Profit before tax of the treasury segment was higher at Rs. 27.89 billion in fiscal 2010 as compared to Rs. 12.84
billion in fiscal 2009. The increase was primarily due to the significant recovery in equity markets resulting in
realised profit and reversal of mark-to-market provision held on equity investments. Further, a contraction in credit
spreads due to improved global market conditions resulted in the reversal of mark-to-market provisions on our
India linked credit derivatives portfolio.
Profit before tax of the other banking segment was lower at Rs. 2.45 billion in fiscal 2010 as compared to Rs. 3.61
billion in fiscal 2009.
CONSOLIDATED FINANCIALS AS PER INDIAN GAAP
The consolidated profit after tax including the results of operations of our subsidiaries and other consolidating
entities increased from Rs. 35.77 billion in fiscal 2009 to Rs. 46.70 billion in fiscal 2010 due to improved financial
performance by most of the subsidiaries. The consolidated return on average equity increased from 7.83% in
fiscal 2009 to 9.59% in fiscal 2010.
Profit after tax of ICICI Bank UK PLC increased from Rs. 0.31 billion in fiscal 2009 to Rs. 1.76 billion in fiscal 2010 due
to increase in fee income, lower operating expenses and lower impairment losses in fiscal 2010, offset, in part, by
lower net interest income following a decline in net interest margin (NIM) and lower gains on buyback of bonds.
Profit after tax of ICICI Bank Canada increased from Rs. 1.39 billion in fiscal 2009 to Rs. 1.54 billion in fiscal
2010 primarily due to increased realisation of gains on sale of insured mortgages and mark-to-market gains on
investments, as well as reduced provisions on loans, offset, in part, by a reduction in net interest income and a
decrease in fee income during fiscal 2010.
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Annual Report 2009-2010
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