2 December 2025 | 10:13AM HKT Equity Research CHINA FINANCIAL SERVICES Addressing nine top of mind questions from our 3Q NDR meetings After 3Q results, we hosted 21 China financial companies for investor group calls, including banks, brokers and fintech companies. We summarize the main takeaways below to address the nine top of mind questions: Shuo Yang, Ph.D. +852-2978-0701 | shuo.yang@gs.com Goldman Sachs (Asia) L.L.C. Claire Ouyang +852-2978-6686 | claire.x.ouyang@gs.com Goldman Sachs (Asia) L.L.C. Goldm ...

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Financial Data and Key Metrics Changes - Profit before tax, excluding treasury, grew by 11.4% year on year to INR 156.90 billion in Q1 FY '26 [4] - Core operating profit increased by 13.6% year on year to INR 175.05 billion [4] - Profit after tax grew by 15.5% year on year to INR 127.68 billion [4] - Total deposits grew by 12.8% year on year and were flat sequentially [4] - Average current and savings account deposits grew by 8.7% year on year and 3.9% sequentially [5] - Net interest income increased by 10.6% year on year to INR 216.35 billion [17][18] - Noninterest income, excluding treasury, grew by 13.7% year on year to INR 72.64 billion [21] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 12% year on year and 1.5% sequentially [5] - Retail loan portfolio grew by 6.9% year on year and 0.5% sequentially [5] - Business banking portfolio grew by 29.7% year on year and 3.7% sequentially [6] - Corporate portfolio grew by 7.5% year on year but declined by 1.4% sequentially [6] - Mortgage portfolio grew by 10.3% year on year and 1.9% sequentially [9] - Auto loans grew by 2.2% year on year but declined by 0.7% sequentially [9] Market Data and Key Metrics Changes - The net NPA ratio was 0.41% at 06/30/2025 compared to 0.43% at 06/30/2024 [7] - The provisioning coverage ratio on non-performing loans was 75.3% at 06/30/2025 [7] - The capital position remained strong with a CET1 ratio of 16.31% and total capital adequacy ratio of 16.97% [8] Company Strategy and Development Direction - The strategic focus is on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [3] - The company aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [8] - The business banking segment is expected to grow faster than the overall loan book, indicating a focus on this area for future growth [54] Management Comments on Operating Environment and Future Outlook - Management noted that global events have impacted sentiment but expects positive effects from monetary easing [35] - The company is optimistic about growth opportunities and aims to drive risk-calibrated profitable growth [8] - Management indicated that the current credit environment is benign, with negligible credit costs [67] Other Important Information - The total provisions during the quarter were INR 18.15 billion, which is 10.4% of core operating profit [23] - The profit after tax of ICICI Life was INR 3.02 billion in Q1 FY '26 compared to INR 2.25 billion in Q1 FY '25 [26] - The combined ratio for ICICI General stood at 102.9% in Q1 FY '26 compared to 102.3% in Q1 FY '25 [26] Q&A Session Summary Question: Margin assessment and growth outlook - The reported margin for Q4 would have been lower than 4.41% when adjusted for the new method, and growth is expected to stabilize after a quarter [34][35] Question: Corporate loan mix and business banking performance - The decline in high-rated corporate loans is due to demand and pricing factors, while business banking growth is attributed to distribution and technology improvements [51][54] Question: Deposit behavior and competition - The company does not foresee significant changes in competitive scenarios despite rate cuts, focusing on customer acquisition and maintaining market share [56] Question: Unsecured retail growth and asset quality management - The company is optimistic about growth in personal loans and credit cards, with a focus on maintaining asset quality through continuous monitoring [64][67]