How to read Banks Financial Statement

Inside Banks Statement

BANK BALANCE SHEET

Content of Banks Financial Statement Balance Sheet

Liabilities + Equity

Authorized Capital , Issued, Subscribed and Paid up Capital ,Debentures and Bonds ,Statutory Reserves, Other Reserves Current Deposits, Contingency Accounts , Savings Accounts , Investment Accounts (Deposits): 3 months 6 months 12 months Over 12 months , Amount due to other Banking companies , Bills payable , Other Liabilities , Contra Accounts , Profit and Loss Account (in case of profit)

Assets


Cash in hand , Balances with Central Bank , Balances with other banks and financial Institutions , Islamic securities (approved for statutory purposes) , Money at call and short notice , Investments in other Islamic securities , Financings , Bank Premises, Furniture and Equipment , Bills Receivable , Other Assets (Advance payments made, suspense account, etc.) , Contra Accounts , Profit and Loss (in case of Loss)

The usual headings appearing in the Profit and Loss account are:


Income

Profit on financings , Profit earned on inter-bank placements ,Profit on investments ,Commission, fees, exchange and brokerage ,Other income (rent, etc.) , Loss’(if expenditure exceeds income)
Expenditure
Profit paid on inter-bank funds , Salaries, allowances and other staff benefits ,Rent, taxes, insurance, lighting, etc. , Communications , Stationery and printing , Publicity and advertisement , Audit fees ,Depreciation and repairs of property , Other expenditure , Profit before tax (if income exceeds expenditure)

The Balance Sheet and Profit-and-Loss account are followed by explanatory notes on Accounts explaining material items and accounting policies followed.
Capital and Reserves
The role of Minimum capital requirement is also important in the financial Industry, although the calculation of the charge may differ, depending on the risk exposures. Basle II deals with the minimum capital requirement .This capital are the regulatory capital. The calculation of the minimum capital is derived with the help of Capital adequacy ratio (CAR), which is defined as ratio with numerator representing the amount of available capital and the denominator a measure of the risk faced by bank.
Most Central Banks require the banks to transfer a minimum percentage of their profit after tax to the Statutory Reserve till it becomes equal to the Capital amount. Other Reserves are created according to the judgment of the Board of Directors or recommendation of external Auditors, to provide against assets whose realization become doubtful.
Customer Funds
a) Current and Contingency Accounts
b) Savings
c) Investment Accounts
1. Deposits of different maturity
2. Bonds:
3. Debentures
Cash Balances
In almost every country the Central Bank requires the banks to keep a certain percentage of its liabilities in the form of cash-in-hand, and a certain percentage in the form of statutory deposits with the Central bank, which is usually interest-free. The Central banks also require a minimum percentage of the bank’s liabilities to be invested in approved financial instruments such as government securities, Treasury Bills, specified bonds, debentures and Unit Trusts.
Bank has balances with other banks and financial institutions, and money market. Money at call and short notice represents funds invested overnight or for a short period. Funds are also placed in trade pools, commodity pools.
Accounting valuation concept
Briefly, the valuation of the assets, liabilities and restricted investments of Islamic banks depends on their current cash equivalents. To make this valuation comparable and reliable, the banks should adhere to the following principles:
a) To the extent possible, realizable values in the current market should be ascertained. The market should be one in which a particular asset is normally sold or purchased by the bank.
b) All relevant information, whether positive or negative, should be utilized.
c) To the extent possible, experts in valuation should be utilized.

Risk Discloser

Risk Discloser

Disclosure of Credit Risk

With regard to credit risk, information on concentrations of financing assets by sectors/industries, geographical distribution, maturity and currency profile of the financing portfolio together with breakup of financing facilities by collectability is considered important.

However, the standard is ambiguous on the most critical information from collectability point of view, which helps the reader of financial statements to determine the extent of doubtful (non-performing) financing assets (sales receivables). The related disclosure that standard requires is that accounting policies adopted by the management for the recognition and determination of doubtful receivables and policies of writing off debts be disclosed.

Disclosure of Investment / Market Risk

The assessment of risk that arises from investments in equities or other investments (e.g., property) is as important as financing or credit risk due to the high proportion of such assets in the financial position.

Disclosure with regard to Liquidity Risk

However, there are serious concerns regarding their macro level liquidity - ability of these institutions to generate funds from other banks (including central banks) in the event of financial distress.

Disclosure of Operational Risk

Operational risk is defined as the risk of loss resulting from the inadequacy or failure of internal processes, as related to people and systems, or from external risks. Operational risk also includes the risk of failure of technology, systems, and analytical models. It is argued that operational risks are likely to be significant for Islamic banks due to their specific contractual features and the general legal environment.



Where is the Hole

Financial Analysis

Financial analysis of a company should include an examination of the financial statements of the company, including notes to the financial statements, and the auditor's report. The auditor's report will state whether the financial statements have been audited in accordance with generally accepted auditing standards. The report also indicates whether the statements fairly present the company's financial position, results of operations, and changes in financial position in accordance with generally accepted accounting principles. Notes to the financial statements are often more meaningful than the data found within the body of the statements. The notes explain the accounting policies of the company and usually provide detailed explanations of how those policies were applied along with supporting details. Analysts often compare the financial statements of one company with other companies in the same industry and with the industry in which the company operates as well as with prior year statements of the company being analyzed.

Comparative financial statements provide analysts with significant information about trends and relationships over two or more years. Financial statement ratios are additional tools for analyzing financial statements. Financial ratios establish relationships between various items appearing on financial statements. The key ratios can be classified as follows:

1 Capital Adequacy ratios: Measure for risk taking and the protection for long-term creditors and investors.

2 Liquidity ratios. Measure the ability of the enterprise to pay its debts as they mature.

3 Activity (or turnover) ratios. Measure how effectively the enterprise is using its assets.

4 Profitability ratios. Measure management's success in generating returns for those who provide capital to the enterprise.

Financial statement analysis has its limitations. Statements represent the past and do not necessarily predict the future. However, financial statement analysis can provide clues or suggest a need for further investigation. What is found on financial statements is the product of accounting conventions and procedures that can sometimes distort the economic reality or substance or the underlying situation. Financial statements say little directly about changes in markets, the business cycle, technological developments, laws and regulations, management personnel, price-level changes, and other critical analytical concerns.

Fundamental objective behind the norms is to strengthen the soundness and stability of the banking system. It is ratio of capital fund to risk weighted assets expressed in percentage terms i.e.

Minimum requirements of capital fund in India: is 8% and for Singapore it is 12%
Existing Banks 09 % ,New Private Sector Banks 10 % ,Banks undertaking Insurance business 10 % ,Local Area Banks 15%

Tier I Capital should at no point of time be less than 50% of the total capital. This implies that Tier II cannot be more than 50% of the total capital.

In Singapore 8% should be Tier I and 4 percent should be Tier II

Capital fund

Capital Fund has two tiers - Tier I capital include
Paid-up capital ,statutory reserves, other disclosed free reserves ,capital reserves representing surplus arising out of sale proceeds of assets. Minus equity investments in subsidiaries, intangible assets, and losses in the current period and those brought forward from previous periods
Tier II capital consists of:
Un-disclosed reserves and cumulative perpetual preference shares, Revaluation Reserves (at a discount of 55 percent while determining their value for inclusion in Tier II capital) General Provisions and Loss Reserves up to a maximum of 1.25% of weighted risk assets: Investment fluctuation reserve not subject to 1.25% restriction ,Hybrid debt capital Instruments (say bonds): Subordinated debt (long term unsecured loans:
Risk weighted assets - Fund Based :

Non-funded (Off-Balance sheet) Items : The credit risk exposure at­tached to off-balance sheet items has to be first calculated by multiplying the face amount of each of the off-balance sheet items by the credit conversion factor. This will then have to be again multiplied by the relevant weightage.

Deposit-taking institutions

Capital adequacy

Regulatory capital to risk-weighted assets

Regulatory tier I capital to risk-weighted assets

Nonperforming loans net of provisions to capital

Asset quality Nonperforming loans to total gross loans

Sectoral distribution of loans to total loans

Earnings and profitability Return on assets

Return on equity

Interest margin to gross income

Noninterest expenses to gross income

Liquidity Liquid assets to total assets (liquid asset ratio)

Liquid assets to short-term liabilities

Sensitivity to market risk Net open position in foreign exchange to capital

Where is the Hole?

When Banks Balance sheet and Income Statement are studied following are the most important points to be taken into consideration.

Nonperforming loans net of provisions to capital - How is performance of the loans, who are not paying and from when they are not paying. How much is the provision against such loans.

NPA is a loan or an advance where, and Provisions on NPA

1- Interest and/ or Installment of principal remain overdue for a period of more than 90 days in respect of term loan.

2- The account remains out of order for a period of more than 90 days in respect of an overdraft/ cash credit.

3- The bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.

4- Interest and/ or Installment of principal remain overdue for two harvest seasons but for a period not exceeding 2 years

5- Any amount to be received remains overdue for a period of more than 90 days in respect of other account.

Asset quality Nonperforming loans to total gross loans

Classification of advances: - The guidelines require bank to classify their advances into four broad categories are as follows:-

a- Standard AssetA standard asset is one which does not disclose any problems and which does not carry more than normal risk attached to the business. Such an asset is not a non-performing asset.

b- Sub Standard Asset A substandard asset is one which has been classified as NPA for a period not exceeding 12 months.

c- Doubtful Asset A doubtful asset is one which has remained NPA for a period exceeding 12 months.

d- Loss of Asset A loss of asset is one where loss has been identified by

Sectoral distribution of loans to total loans – Who are the main customers of Bank and what is the present situation of them. If Bank is heavily involved in Housing Finance then the housing market is down and 28% mortgages are below their loan value. Under this situation the Bank will have to take a loss over the period if market does not improve.

Consumer Loans and Personal Loans – When unemployment is high and many people are under employed this will be affected and so is profitability of the Bank

Earnings and profitability Return on assets- What are main streams or sources of Banks revenue generation and how they will perform in the future is the very important exercise for the investor.

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echelon 4 years ago

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    Financial Ratios of Bank

     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Kuwait Finance House
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Last Fiscal Year (LFY): Ratios
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Period End Date
     
    31-Dec-08    
     
    31-Dec-07    
     
    31-Dec-06    
     
    31-Dec-05    
     
    31-Dec-04    
     
    31-Dec-03    
     
    31-Dec-02    
     
    Price
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    P/E After Unusual Items  
     
    16.45
     
    9.38
     
    15.94
     
    21.76
     
    34.7
     
    44.4
     
    47.28
     
    P/E Before Unusual Items  
     
    16.45
     
    9.38
     
    15.94
     
    21.76
     
    34.7
     
    44.4
     
    47.28
     
    Price/Book
     
    2.08
     
    1.99
     
    3.32
     
    3.83
     
    7.22
     
    8.48
     
    9.86
     
    Price/ Revenues
     
    3.08
     
    3.13
     
    4.46
     
    6.74
     
    12.68
     
    15.81
     
    17.62
     
    Price/Cashflow
     
    2.31
     
    46.12
     
    4.9
     
    11.03
     
    8.21
     
    14.6
     
    84.43
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cashflow Analysis
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cash Dividend Coverage
     
    1.91
     
    2.47
     
    2.32
     
    1.97
     
    n/a 
     
    n/a 
     
    n/a 
     
    Cash-Operation/Revenues  
     
    1.33
     
    0.07
     
    0.91
     
    0.61
     
    1.54
     
    1.08
     
    0.21
     
    Payout Ratio (%)
     
    52.32
     
    40.51
     
    43.11
     
    50.69
     
    -  
     
    -  
     
    -  
     
    Total Financing & Investing Act./ Assets
     
    0.6
     
    0.58
     
    0.56
     
    0.61
     
    0.73
     
    0.74
     
    0.54
     
    Total Financing & Investing Act./Liabilities
     
    0.71
     
    0.7
     
    0.65
     
    0.78
     
    0.87
     
    0.89
     
    0.61
     
    Cash-Operation/Net Income
     
    7.11
     
    0.2
     
    3.25
     
    1.97
     
    4.23
     
    3.04
     
    0.56
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Per Share Data (Year End)
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cashflow/Share  
     
    0.542
     
    0.033
     
    0.43
     
    0.214
     
    0.402
     
    0.247
     
    0.043
     
    Book Value/ Share
     
    0.604
     
    0.757
     
    0.635
     
    0.616
     
    0.458
     
    0.425
     
    0.366
     
    Cash Dividend/Share
     
    0.04
     
    0.065
     
    0.057
     
    0.055
     
    -  
     
    -  
     
    -  
     
    Shares outstanding (m)  
     
    2,058
     
    1,715
     
    1,225
     
    1,094
     
    781.406
     
    716.89
     
    715.8
     
    EPS after XO items
     
    0.076
     
    0.16
     
    0.132
     
    0.108
     
    0.095
     
    0.081
     
    0.076
     
    EPS before XO items
     
    0.076
     
    0.16
     
    0.132
     
    0.108
     
    0.095
     
    0.081
     
    0.076
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Growth Potential
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Assets Growth (%)
     
    19.85
     
    39.34
     
    34.88
     
    35.37
     
    13.71
     
    19.05
     
    n/a 
     
    Revenues Growth (%)
     
    1.82
     
    42.31
     
    51.04
     
    88.27
     
    24.64
     
    11.49
     
    n/a 
     
    Total Financing & Investing Act. Growth (%)
     
    23.22
     
    45.63
     
    22.83
     
    14.19
     
    11.99
     
    61.5
     
    n/a 
     
    Book Value Growth (%)
     
    -4.21
     
    66.98
     
    15.46
     
    88.39
     
    17.5
     
    16.18
     
    n/a 
     
    Deposits Growth (%)
     
    23.32
     
    43.73
     
    16.95
     
    24.43
     
    11.44
     
    16.35
     
    n/a 
     
    Earnings Growth (%)
     
    -42.98
     
    69.91
     
    36.5
     
    59.5
     
    27.94
     
    6.49
     
    n/a 
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Profitability
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Effective Tax rate (%)
     
    3.02
     
    2.77
     
    2.59
     
    2.68
     
    1.59
     
    1.83
     
    1.77
     
    Net Margin (%)
     
    18.71
     
    33.41
     
    27.98
     
    30.96
     
    36.55
     
    35.6
     
    37.27
     
    Operating Expense/Total Income from Islamic Banking (%)
     
    49.33
     
    46.17
     
    54.02
     
    47.71
     
    29.21
     
    34.38
     
    30.56
     
    Operating Margin (%)
     
    47.31
     
    70.05
     
    64.72
     
    66.69
     
    74.14
     
    74.97
     
    78.28
     
    Pretax Margin (%)
     
    19.36
     
    34.53
     
    28.87
     
    34.67
     
    38.6
     
    37.92
     
    39.29
     
    Return on Assets (%)
     
    1.49
     
    3.13
     
    2.57
     
    2.54
     
    2.15
     
    1.91
     
    2.14
     
    Return on Equity (%)
     
    12.62
     
    21.19
     
    20.83
     
    17.62
     
    20.81
     
    19.11
     
    20.85
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Structure
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Operating Cost / Operating Income
     
    0.33
     
    0.26
     
    0.31
     
    0.24
     
    0.19
     
    0.22
     
    0.22
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Current Market Cap: 2,582,069,199
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Financial data provided by 2009 ABQ Zawya Ltd.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    Financial Statement Bank

     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Kuwait Finance House
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Balance Sheet
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Period End Date
     
    31-Dec-10
     
    31-Dec-09
     
    31-Dec-08
     
    31-Dec-07
     
    31-Dec-06
     
    31-Dec-05
     
    31-Dec-04
     
    31-Dec-03
     
    31-Dec-02
     
    Period Length
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    Currency
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    KWD per USD
     
    0.282
     
    0.287
     
    0.276
     
    0.274
     
    0.289
     
    0.292
     
    0.295
     
    0.295
     
    0.299
     
    ASSETS
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cash & Bal. with Central Bank
     
    1,587,181
     
    1,550,324
     
    1,333,558
     
    2,020,310
     
    802,754
     
    542,099
     
    495,461
     
    437,993
     
    494,589
     
    Murabaha with Financial Institutions
     
    5,664,440
     
    4,381,787
     
    4,754,178
     
    3,895,223
     
    3,635,291
     
    2,273,452
     
    1,290,325
     
    1,252,098
     
    1,534,836
     
    Murabaha
     
    20,733,915
     
    18,221,237
     
    15,563,072
     
    13,755,453
     
    9,309,471
     
    5,938,192
     
    5,066,142
     
    4,965,342
     
    4,648,746
     
    Ijara
     
    4,822,252
     
    4,706,523
     
    4,523,330
     
    3,632,686
     
     
     
     
     
     
    Istisnaa
     
    655,340
     
    798,017
     
    2,838,721
     
    1,352,161
     
    872,609
     
    1,736,818
     
    383,539
     
    348,434
     
     
    Mudaraba
     
     
     
     
     
     
     
     
     
     
    Musharaka
     
     
     
     
     
     
     
     
     
     
    Other Islamic Banking Products
     
     
     
     
     
    2,018,516
     
    2,156,188
     
    1,781,688
     
    1,043,515
     
     
    Total Financing & Investing Activities
     
    26,211,507
     
    23,725,777
     
    22,925,123
     
    18,740,299
     
    12,200,595
     
    9,831,199
     
    8,521,695
     
    7,609,390
     
    4,648,746
     
    Deferred / Unearned Income
     
    -112,046
     
    -100,035
     
    -141,087
     
    -167,558
     
    -118,374
     
    -55,318
     
    -64,939
     
    -63,841
     
     
    Provision for Impairment
     
    -1,919,965
     
    -1,401,129
     
    -1,183,989
     
    -620,960
     
    -614,329
     
    -503,007
     
    -418,902
     
    -376,556
     
    -349,880
     
    Investments in Affiliates
     
    1,203,216
     
    1,431,491
     
    1,628,609
     
    1,245,544
     
    728,505
     
    774,812
     
    745,386
     
    547,614
     
    453,047
     
    Property Investments
     
    2,775,188
     
    2,205,052
     
    1,221,609
     
    1,363,916
     
    1,030,747
     
    631,777
     
    792,393
     
    820,549
     
    1,085,097
     
    Other Investment
     
    4,195,213
     
    3,630,753
     
    3,763,051
     
    3,270,431
     
    2,405,657
     
    1,934,168
     
    1,169,997
     
    921,573
     
    385,625
     
    Fixed Assets
     
    2,661,954
     
    2,096,188
     
    2,142,533
     
    1,487,182
     
    1,332,142
     
    368,818
     
    244,773
     
    198,495
     
    83,100
     
    Other Assets
     
    2,231,535
     
    1,820,188
     
    1,759,830
     
    874,796
     
    444,038
     
    233,226
     
    236,393
     
    213,631
     
    207,906
     
    Total Assets
     
    44,498,223
     
    39,340,397
     
    38,203,413
     
    32,109,182
     
    21,847,028
     
    16,031,226
     
    11,722,258
     
    10,308,847
     
    8,543,067
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    LIABILITIES & SHAREHOLDERS EQUITY
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Due to Banks
     
    7,842,482
     
    5,090,331
     
    5,780,623
     
    4,329,894
     
    3,737,038
     
    964,442
     
    412,953
     
    215,851
     
    42,274
     
    Current & Saving Accounts
     
    27,124,404
     
    25,302,533
     
    23,954,913
     
    19,566,259
     
    12,906,332
     
     
     
     
     
    Investment Accounts
     
     
     
     
     
     
     
     
     
     
    Customers Deposits & CD's
     
    27,124,404
     
    25,302,533
     
    23,954,913
     
    19,566,259
     
    12,906,332
     
    10,922,411
     
    8,688,763
     
    7,797,156
     
    6,611,575
     
    Sukuk
     
     
     
     
     
     
     
     
     
     
    Long-Term Financing
     
     
     
     
     
     
     
     
     
     
    Subordinated Liabilities
     
     
     
     
     
     
     
     
     
     
    Other Liabilities
     
    3,964,571
     
    3,582,066
     
    2,675,576
     
    2,757,157
     
    2,036,637
     
    756,147
     
    694,261
     
    575,810
     
    950,057
     
    Total Liabilities
     
    38,931,457
     
    33,974,930
     
    32,411,112
     
    26,653,310
     
    18,680,007
     
    12,643,000
     
    9,795,976
     
    8,588,817
     
    7,603,906
     
    Minority Interest
     
    1,106,379
     
    1,129,401
     
    1,284,583
     
    715,672
     
    475,581
     
    1,081,024
     
    714,017
     
    688,295
     
    63,010
     
    Paid-up Capital
     
    882,926
     
    803,282
     
    745,804
     
    626,040
     
    423,962
     
    374,647
     
    264,885
     
    243,014
     
    228,344
     
    Preferred Stock
     
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    Proposed Appropriations
     
    245,472
     
    262,369
     
    387,047
     
    532,135
     
    305,253
     
    251,014
     
    158,929
     
    136,085
     
    118,739
     
    Chg in Fair Val. Resv. & Translation Adj.
     
    -115,252
     
    -90,822
     
    13,935
     
    324,142
     
    260,682
     
    251,688
     
    107,390
     
    67,037
     
     
    Reserves
     
    3,542,000
     
    3,388,979
     
    3,385,007
     
    3,257,883
     
    1,701,543
     
    1,429,853
     
    681,061
     
    585,600
     
    529,067
     
    Unrealized Gains/ Losses
     
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    Retained Earnings/ Accumulated losses
     
     
     
     
     
     
     
     
     
     
    Treasury Stock
     
    -94,759
     
    -127,742
     
    -24,076
     
     
     
     
     
     
     
    Total Shareholders' Equity
     
    4,460,387
     
    4,236,066
     
    4,507,717
     
    4,740,201
     
    2,691,439
     
    2,307,202
     
    1,212,264
     
    1,031,736
     
    876,151
     
    Total Liab. & Shareholders' Equity
     
    44,498,223
     
    39,340,397
     
    38,203,413
     
    32,109,182
     
    21,847,028
     
    16,031,226
     
    11,722,258
     
    10,308,847
     
    8,543,067
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Comm. & Contingent Liab.
     
     
    8,461,808
     
    9,754,518
     
    8,390,033
     
    4,254,107
     
     
    828,678
     
    335,037
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income Statement
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Period End Date
     
    31-Dec-10
     
    31-Dec-09
     
    31-Dec-08
     
    31-Dec-07
     
    31-Dec-06
     
    31-Dec-05
     
    31-Dec-04
     
    31-Dec-03
     
    31-Dec-02
     
    Period Length
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    Currency
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    KWD per USD
     
    0.282
     
    0.287
     
    0.276
     
    0.274
     
    0.289
     
    0.292
     
    0.295
     
    0.295
     
    0.299
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income from Murabaha with Financial Institutions
     
    1,835,365
     
     
     
     
     
     
     
     
     
    Income from Murabahat
     
     
    1,841,153
     
    2,033,591
     
    1,703,989
     
    1,133,298
     
    650,503
     
    452,417
     
    362,431
     
    34,826
     
    Income from Ijara
     
     
     
     
     
     
     
     
     
     
    Income from Istisnaa
     
     
     
     
     
     
     
     
     
     
    Income from Mudaraba
     
     
     
     
     
     
     
     
     
     
    Income from Musharaka
     
     
     
     
     
     
     
     
     
     
    Income from Other Islamic Banking Products
     
     
     
     
     
     
     
     
     
     
    Total Income from Islamic Banking Activities
     
    1,835,365
     
    1,841,153
     
    2,033,591
     
    1,703,989
     
    1,133,298
     
    650,503
     
    452,417
     
    362,431
     
    348,261
     
    Banking Fees & Commissions
     
    231,245
     
    220,927
     
    254,130
     
    204,836
     
    152,277
     
    114,257
     
    47,231
     
    35,285
     
    31,635
     
    FX Income
     
    11,032
     
    -7,840
     
    49,083
     
    53,635
     
    11,529
     
    21,281
     
    5,468
     
    -3,722
     
    2,786
     
    Investment Income
     
    327,259
     
    388,895
     
    594,268
     
    945,978
     
    634,080
     
    481,003
     
    163,705
     
    147,593
     
    95,749
     
    Unrealized Investment Gain/ Loss
     
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    0
     
    Other Income
     
    206,089
     
    228,303
     
    108,688
     
    98,675
     
    72,232
     
    45,723
     
    21,369
     
    12,166
     
    11,615
     
    Operating Expenses
     
    -1,058,489
     
    -1,021,686
     
    -1,003,145
     
    -786,745
     
    -612,204
     
    -310,353
     
    -132,153
     
    -124,593
     
    -106,415
     
    Net Oper. Inc. before Prov.
     
    1,552,500
     
    1,649,753
     
    2,036,616
     
    2,220,369
     
    1,391,211
     
    1,002,414
     
    558,037
     
    429,159
     
    383,632
     
    Provisions
     
    -704,940
     
    -710,958
     
    -598,627
     
    -113,796
     
    -94,567
     
    -126,873
     
    -46,319
     
    -14,007
     
     
    Operating Profit
     
    847,560
     
    938,794
     
    1,437,989
     
    2,106,573
     
    1,296,644
     
    875,541
     
    511,719
     
    415,153
     
    383,632
     
    Net Non-Operating Income (Expense)
     
     
     
     
     
     
    -514
     
    -3,003
     
    -2,339
     
     
    Distribution to Depositors
     
    -577,539
     
    -671,024
     
    -785,507
     
    -885,139
     
    -610,249
     
    -419,832
     
    -242,292
     
    -202,824
     
    -189,237
     
    Other Expenses
     
     
     
     
     
     
     
     
     
    -1,880
     
    Minority Interests
     
    121,287
     
    163,488
     
    -64,101
     
    -182,953
     
    -108,048
     
    -35,586
     
    -9,793
     
    -8,824
     
    -6,334
     
    Net Profit Before Taxes/Zakat
     
    391,309
     
    431,258
     
    588,380
     
    1,038,482
     
    578,346
     
    455,195
     
    266,424
     
    209,990
     
    192,515
     
    Zakat Provision
     
    -2,408
     
    -1,383
     
    -4,471
     
    -635
     
    -17,779
     
     
     
     
     
    Tax Provision
     
    -13,074
     
    -16,143
     
    -15,214
     
    -33,226
     
     
    -13,147
     
    -4,386
     
    -4,014
     
    -3,528
     
    Net Profit After Taxes or Zakat
     
    375,826
     
    413,732
     
    568,696
     
    1,004,620
     
    560,567
     
    406,462
     
    252,244
     
    197,153
     
    182,652
     
    Unusual Items
     
     
     
     
     
     
     
     
     
     
    Transfer to Capital Reserve
     
     
     
     
     
     
     
     
     
     
    Net Profit After Unusual Items
     
    375,826
     
    413,732
     
    568,696
     
    1,004,620
     
    560,567
     
    406,462
     
    252,244
     
    197,153
     
    182,652
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Earnings Per Share (units)
     
    0.15
     
    0.18
     
    0.28
     
    0.61
     
    0.46
     
    0.42
     
    0.33
     
    0.26
     
    0.25
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cash Flow Statement
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Period End Date
     
    31-Dec-10
     
    31-Dec-09
     
    31-Dec-08
     
    31-Dec-07
     
    31-Dec-06
     
    31-Dec-05
     
    31-Dec-04
     
    31-Dec-03
     
    31-Dec-02
     
    Period Length
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    12 months
     
    Currency
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    USD '000
     
    KWD per USD
     
    0.282
     
    0.287
     
    0.276
     
    0.274
     
    0.289
     
    0.292
     
    0.295
     
    0.295
     
    0.299
     
    OPERATING ACTIVITIES
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Net Oper. Income
     
    254,539
     
    250,244
     
    632,797
     
    1,187,573
     
    668,616
     
    442,048
     
    266,424
     
    209,990
     
    182,652
     
    Depreciation
     
    170,872
     
    849,882
     
    103,431
     
    101,967
     
    116,796
     
    53,178
     
    20,136
     
    27,003
     
    23,298
     
    Others
     
    -136,390
     
    425,244
     
    -334,217
     
    -61,069
     
    89,277
     
    24,445
     
    509,847
     
    131,600
     
     
    Net Chng in Provisions
     
     
     
    764,275
     
    139,339
     
    94,048
     
    126,873
     
    46,319
     
    14,007
     
    8,358
     
    Net inc (dec) in operating assets & liab.
     
    2,026,968
     
    -341,251
     
    2,876,000
     
    -1,163,471
     
    853,495
     
    155,075
     
    223,234
     
    216,932
     
    -112,027
     
    Cash Flows from Operating Activities
     
    2,315,989
     
    1,184,118
     
    4,042,286
     
    204,339
     
    1,822,232
     
    801,620
     
    1,065,959
     
    599,532
     
    102,281
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    ICICI BANK

    ICICI Bank
    Previous Years  
     
     
     
     
     
     
     
     
     
    Balance Sheet
    ------------------- in Rs. Cr. -------------------
     
     
     
     
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    12 mths
    12 mths
    12 mths
    12 mths
    12 mths
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Capital and Liabilities:
     
     
     
     
     
     
     
     
     
     
    Total Share Capital
    1,239.83
    1,249.34
    1,462.68
    1,463.29
    1,114.89
     
     
     
     
     
    Equity Share Capital
    889.83
    899.34
    1,112.68
    1,113.29
    1,114.89
     
     
     
     
     
    Share Application Money
    0
    0
    0
    0
    0
     
     
     
     
     
    Preference Share Capital
    350
    350
    350
    350
    0
     
     
     
     
     
    Reserves
    21,316.16
    23,413.92
    45,357.53
    48,419.73
    50,503.48
     
     
     
     
     
    Revaluation Reserves
    0
    0
    0
    0
    0
     
     
     
     
     
    Net Worth
    22,555.99
    24,663.26
    46,820.21
    49,883.02
    51,618.37
     
     
     
     
     
    Deposits
    165,083.17
    230,510.19
    244,431.05
    218,347.82
    202,016.60
     
     
     
     
     
    Borrowings
    38,521.91
    51,256.03
    65,648.43
    67,323.69
    94,263.57
     
     
     
     
     
    Total Debt
    203,605.08
    281,766.22
    310,079.48
    285,671.51
    296,280.17
     
     
     
     
     
    Other Liabilities & Provisions
    25,227.88
    38,228.64
    42,895.39
    43,746.43
    15,501.18
     
     
     
     
     
    Total Liabilities
    251,388.95
    344,658.12
    399,795.08
    379,300.96
    363,399.72
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    12 mths
    12 mths
    12 mths
    12 mths
    12 mths
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Assets
     
     
     
     
     
     
     
     
     
     
    Cash & Balances with RBI
    8,934.37
    18,706.88
    29,377.53
    17,536.33
    27,514.29
     
     
     
     
     
    Balance with Banks, Money at Call
    8,105.85
    18,414.45
    8,663.60
    12,430.23
    11,359.40
     
     
     
     
     
    Advances
    146,163.11
    195,865.60
    225,616.08
    218,310.85
    181,205.60
     
     
     
     
     
    Investments
    71,547.39
    91,257.84
    111,454.34
    103,058.31
    120,892.80
     
     
     
     
     
    Gross Block
    5,968.57
    6,298.56
    7,036.00
    7,443.71
    7,114.12
     
     
     
     
     
    Accumulated Depreciation
    1,987.85
    2,375.14
    2,927.11
    3,642.09
    3,901.43
     
     
     
     
     
    Net Block
    3,980.72
    3,923.42
    4,108.89
    3,801.62
    3,212.69
     
     
     
     
     
    Capital Work In Progress
    147.94
    189.66
    0
    0
    0
     
     
     
     
     
    Other Assets
    12,509.57
    16,300.26
    20,574.63
    24,163.62
    19,214.93
     
     
     
     
     
    Total Assets
    251,388.95
    344,658.11
    399,795.07
    379,300.96
    363,399.71
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Contingent Liabilities
    119,895.78
    177,054.18
    371,737.36
    803,991.92
    694,948.84
     
     
     
     
     
    Bills for collection
    15,025.21
    22,717.23
    29,377.55
    36,678.71
    38,597.36
     
     
     
     
     
    Book Value (Rs)
    249.55
    270.37
    417.64
    444.94
    463.01
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Profit & Loss account of ICICI Bank
    ------------------- in Rs. Cr. -------------------
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    12 mths
    12 mths
    12 mths
    12 mths
    12 mths
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Income
     
     
     
     
     
     
     
     
     
     
    Interest Earned
    13,784.50
    22,994.29
    30,788.34
    31,092.55
    25,706.93
     
     
     
     
     
    Other Income
    5,036.62
    6,962.95
    8,878.85
    8,117.76
    7,292.43
     
     
     
     
     
    Total Income
    18,821.12
    29,957.24
    39,667.19
    39,210.31
    32,999.36
     
     
     
     
     
    Expenditure
     
     
     
     
     
     
     
     
     
     
    Interest expended
    9,597.45
    16,358.50
    23,484.24
    22,725.93
    17,592.57
     
     
     
     
     
    Employee Cost
    1,082.29
    1,616.75
    2,078.90
    1,971.70
    1,925.79
     
     
     
     
     
    Selling and Admin Expenses
    2,360.72
    4,900.67
    5,834.95
    5,977.72
    6,056.48
     
     
     
     
     
    Depreciation
    623.79
    544.78
    578.35
    678.6
    619.5
     
     
     
     
     
    Miscellaneous Expenses
    2,616.78
    3,426.32
    3,533.03
    4,098.22
    2,780.03
     
     
     
     
     
    Preoperative Exp Capitalised
    0
    0
    0
    0
    0
     
     
     
     
     
    Operating Expenses
    5,274.23
    8,849.86
    10,855.18
    10,795.14
    10,221.99
     
     
     
     
     
    Provisions & Contingencies
    1,409.35
    1,638.66
    1,170.05
    1,931.10
    1,159.81
     
     
     
     
     
    Total Expenses
    16,281.03
    26,847.02
    35,509.47
    35,452.17
    28,974.37
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    12 mths
    12 mths
    12 mths
    12 mths
    12 mths
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Net Profit for the Year
    2,540.07
    3,110.22
    4,157.73
    3,758.13
    4,024.98
     
     
     
     
     
    Extraordionary Items
    0
    0
    0
    -0.58
    0
     
     
     
     
     
    Profit brought forward
    188.22
    293.44
    998.27
    2,436.32
    2,809.65
     
     
     
     
     
    Total
    2,728.29
    3,403.66
    5,156.00
    6,193.87
    6,834.63
     
     
     
     
     
    Preference Dividend
    0
    0
    0
    0
    0
     
     
     
     
     
    Equity Dividend
    759.33
    901.17
    1,227.70
    1,224.58
    1,337.95
     
     
     
     
     
    Corporate Dividend Tax
    106.5
    153.1
    149.67
    151.21
    164.04
     
     
     
     
     
    Per share data (annualised)
     
     
     
     
     
     
     
     
     
     
    Earning Per Share (Rs)
    28.55
    34.59
    37.37
    33.76
    36.1
     
     
     
     
     
    Equity Dividend (%)
    85
    100
    110
    110
    120
     
     
     
     
     
    Book Value (Rs)
    249.55
    270.37
    417.64
    444.94
    463.01
     
     
     
     
     
    Appropriations
     
     
     
     
     
     
     
     
     
     
    Transfer to Statutory Reserves
    248.69
    1,351.12
    1,342.31
    2,008.42
    1,867.22
     
     
     
     
     
    Transfer to Other Reserves
    1,320.34
    0
    0.01
    0.01
    1.04
     
     
     
     
     
    Proposed Dividend/Transfer to Govt
    865.83
    1,054.27
    1,377.37
    1,375.79
    1,501.99
     
     
     
     
     
    Balance c/f to Balance Sheet
    293.44
    998.27
    2,436.32
    2,809.65
    3,464.38
     
     
     
     
     
    Total
    2,728.30
    3,403.66
    5,156.01
    6,193.87
    6,834.63
     
     
     
     
     

    Financial Ratio ICICI Bank

    Key Financial Ratios of ICICI Bank
    ------------------- in Rs. Cr. -------------------
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Investment Valuation Ratios
     
     
     
     
     
     
     
     
     
     
    Face Value
    10
    10
    10
    10
    10
     
     
     
     
     
    Dividend Per Share
    8.5
    10
    11
    11
    12
     
     
     
     
     
    Operating Profit Per Share (Rs)
    36.75
    42.19
    51.29
    48.58
    49.8
     
     
     
     
     
    Net Operating Profit Per Share (Rs)
    196.87
    316.45
    354.71
    343.59
    293.74
     
     
     
     
     
    Free Reserves Per Share (Rs)
    193.24
    199.52
    346.21
    351.04
    356.94
     
     
     
     
     
    Bonus in Equity Capital
    --
    --
    --
    --
    --
     
     
     
     
     
    Profitability Ratios
     
     
     
     
     
     
     
     
     
     
    Interest Spread
    2.67
    3.43
    3.51
    3.66
    5.66
     
     
     
     
     
    Adjusted Cash Margin(%)
    17.55
    12.3
    11.81
    11.45
    13.64
     
     
     
     
     
    Net Profit Margin
    14.12
    10.81
    10.51
    9.74
    12.17
     
     
     
     
     
    Return on Long Term Fund(%)
    56.24
    82.46
    62.34
    56.72
    44.72
     
     
     
     
     
    Return on Net Worth(%)
    14.33
    13.17
    8.94
    7.58
    7.79
     
     
     
     
     
    Adjusted Return on Net Worth(%)
    11.4
    12.31
    8.8
    7.55
    7.53
     
     
     
     
     
    Return on Assets Excluding Revaluations
    1.01
    270.37
    417.64
    444.94
    463.01
     
     
     
     
     
    Return on Assets Including Revaluations
    1.01
    270.37
    417.64
    444.94
    463.01
     
     
     
     
     
    Management Efficiency Ratios
     
     
     
     
     
     
     
     
     
     
    Interest Income / Total Funds
    8.36
    9.55
    10.6
    9.82
    8.82
     
     
     
     
     
    Net Interest Income / Total Funds
    3.78
    4.06
    4.29
    3.99
    4.08
     
     
     
     
     
    Non Interest Income / Total Funds
    0.22
    0.1
    0.02
    0.08
    0.08
     
     
     
     
     
    Interest Expended / Total Funds
    4.58
    5.49
    6.31
    5.83
    4.74
     
     
     
     
     
    Operating Expense / Total Funds
    2.22
    2.79
    2.76
    2.6
    2.59
     
     
     
     
     
    Profit Before Provisions / Total Funds
    1.49
    1.19
    1.4
    1.3
    1.41
     
     
     
     
     
    Net Profit / Total Funds
    1.21
    1.04
    1.12
    0.96
    1.08
     
     
     
     
     
    Loans Turnover
    0.15
    0.17
    0.2
    0.18
    0.17
     
     
     
     
     
    Total Income / Capital Employed(%)
    8.58
    9.65
    10.62
    9.9
    8.9
     
     
     
     
     
    Interest Expended / Capital Employed(%)
    4.58
    5.49
    6.31
    5.83
    4.74
     
     
     
     
     
    Total Assets Turnover Ratios
    0.08
    0.1
    0.11
    0.1
    0.09
     
     
     
     
     
    Asset Turnover Ratio
    2.94
    4.52
    5.61
    5.14
    4.6
     
     
     
     
     
    Profit And Loss Account Ratios
     
     
     
     
     
     
     
     
     
     
    Interest Expended / Interest Earned
    69.62
    71.14
    76.28
    73.09
    68.44
     
     
     
     
     
    Other Income / Total Income
    2.59
    1.07
    0.17
    0.86
    0.92
     
     
     
     
     
    Operating Expense / Total Income
    25.86
    28.87
    26
    26.22
    29.05
     
     
     
     
     
    Selling Distribution Cost Composition
    4.8
    6.12
    4.43
    1.74
    0.72
     
     
     
     
     
    Balance Sheet Ratios
     
     
     
     
     
     
     
     
     
     
    Capital Adequacy Ratio
    13.35
    11.69
    13.97
    15.53
    19.41
     
     
     
     
     
    Advances / Loans Funds(%)
    84.89
    77.72
    72.67
    69.86
    58.57
     
     
     
     
     
    Debt Coverage Ratios
     
     
     
     
     
     
     
     
     
     
    Credit Deposit Ratio
    87.59
    83.83
    84.99
    91.44
    90.04
     
     
     
     
     
    Investment Deposit Ratio
    46.07
    41.15
    42.68
    46.35
    53.28
     
     
     
     
     
    Cash Deposit Ratio
    5.77
    6.99
    10.12
    10.14
    10.72
     
     
     
     
     
    Total Debt to Owners Fund
    7.45
    9.5
    5.27
    4.42
    3.91
     
     
     
     
     
    Financial Charges Coverage Ratio
    1.39
    1.25
    1.25
    0.25
    0.33
     
     
     
     
     
    Financial Charges Coverage Ratio Post Tax
    1.33
    1.22
    1.2
    1.2
    1.26
     
     
     
     
     
    Leverage Ratios
     
     
     
     
     
     
     
     
     
     
    Current Ratio
    0.08
    0.09
    0.11
    0.13
    0.14
     
     
     
     
     
    Quick Ratio
    6.64
    6.04
    6.42
    5.94
    14.7
     
     
     
     
     
    Cash Flow Indicator Ratios
     
     
     
     
     
     
     
     
     
     
    Dividend Payout Ratio Net Profit
    34.08
    33.89
    33.12
    36.6
    37.31
     
     
     
     
     
    Dividend Payout Ratio Cash Profit
    27.36
    28.84
    29.08
    31
    32.33
     
     
     
     
     
    Earning Retention Ratio
    65.82
    64.8
    66.35
    63.23
    61.4
     
     
     
     
     
    Cash Earning Retention Ratio
    72.58
    70.22
    70.51
    68.87
    66.7
     
     
     
     
     
    AdjustedCash Flow Times
    52.3
    65.12
    52.34
    49.41
    44.79
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Mar '06
    Mar '07
    Mar '08
    Mar '09
    Mar '10
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Earnings Per Share
    28.55
    34.59
    37.37
    33.76
    36.1
     
     
     
     
     
    Book Value
    249.55
    270.37
    417.64
    444.94
    463.01
     
     
     
     
     

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