ICICI Securities Q4 FY22 results || Revenue at ₹ 892 crore, up 21% YoY
FY22 Performance Highlights
Revenue at ₹ 3,438 crore, up 33% YoY; strong growth across all businesses
Retail Equities and allied revenue at ₹ 2,013 crore, up 26% YoY
Institutional Equities and allied revenue at ₹ 254 crore, up 24% YoY
Distribution income at ₹ 600 crore, up 43 % YoY
Private Wealth Management revenue at ₹ 924 crore up 105% YoY
Issuer Services & Advisory* revenue at ₹ 296 crore up 83% YoY
PAT at ₹ 1,383 crore, up 29% YoY
Final dividend of ₹12.75/ share announced, taking the full year dividend to ₹ 24/share in FY22 vs ₹ 21.5/share in FY21
Cost to income ratio 46%; Return on Equity (annualized) at robust 65%
Over 22.7 lakh clients added; highest ever yearly addition
Total client assets at ~₹ 5.6 Lakh crore, up 48% YoY
Wealth AUM at ₹ 2.86 Lakh crore, up 70% YoY
~34 lakhs overall active clients, up 77% YoY
Q4FY22 Performance Highlights
Revenue at ₹ 892 crore, up 21% YoY; strong growth across all businesses
Equities and allied revenue at ₹ 584 crore, up 18% YoY
Distribution income at ₹ 168 crore, up 20 % YoY
Private Wealth Management revenue at ₹ 250 crore up 59% YoY
Issuer Services & Advisory* revenue at ₹ 65 crore up 24% YoY
PAT at ₹ 340 crore, up 3% YoY
Strong performance in retail equity, mutual funds and SIP:
Retail equity market share improved from 9.8% to 10.1%
ISEC Mutual Fund average AUM up 22%, at all-time high
MF AUM market share1 at 1.7%, up from 1.6% YoY
Market share in SIP flow at 3.7%
SIP count for Q4 FY22 is ~1.0 mn, up from 0.7 mn YoY
ISEC SIP flows increased by 31% YoY to ~₹ 13 bn
Over 6.2 lakh clients added; up by over 74.6% YOY
* Our investment banking business 1 Market share including direct
Mumbai, Wednesday, April 20, 2022 – ICICI Securities, a part of the ICICI Group and India’s leading retail-led equity franchise, distributor of financial products, and investment bank, today declared all round improvement in financial and operational performance for the Financial and Quarter ending 31st March 2022 (FY22 and Q4FY22).
Business Highlights
ICICI Securities has a client base of ~76 lakhs, of which over 22.7 lakh were added during FY 2022, which is highest ever addition in a financial year. Over 6.2 lakh customer were added during Q4FY22. Digital sourcing and open architecture approach continue to demonstrate strength with ~80% of new customers in the quarter coming from channels other than ICICI Bank.
The company has over ~34 lakhs active clients (those who have transacted across any product categories in the last 12 months) and over 30 lakhs NSE active clients (those having traded on the NSE in the last 12 months), up 77% and 92% YoY respectively.
Total client assets stood at ₹ 5.6 Lakh crore on 31st March, 2022, vs ₹ 3.8 Lakh crore a year ago, up 48%.
In Q4FY22, Equities and Allied Business, which comprises retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trade Funding), Prime & NEO subscription fees and other charges, rose 19.5% year-on-year to ₹ 595.4 crore. The Retail Equities and Allied Business reported revenues at ₹ 521.5 crore, up 20% YoY, vs ₹442.6 crore in Q4FY21.
ESOP & MTF interest income rose 162% year-on-year to ₹153.8 crore in Q4FY22 and the daily average funded book for the quarter for these businesses stood at ~ ₹ 72 billion against ₹ 25.7 billion in Q4FY2022, we continued to be market leader in MTF with 22% market share. The company continued to receive encouraging response to Prime plan that provides a package of privilege pricing, exclusive research, and higher eATM limits per day. More than a million customers have taken Prime membership. Prime and Prepaid customers together contribute 67 % of retail equities revenue.
Our new digital properties (ICICIdirect Markets and ICICIdirect Money apps) are attracting customers and building traction with 1mn+ downloads and ~4 star rating on Google Playstore. Our NPS score continued to increase this quarter as well as a result of improvements made in our customer journeys
During the quarter, the company launched several new proportions like lifetime high value Prime, MTF, New Trading View charting, Option Xpress, One Click derivative platforms, Breeze API with several first to market features to enhance customer experience.
Institutional equities revenue during the quarter increased by 16% y-o-y to ₹ 168.2 crore, further consolidating its position among the top domestic institutions and also strengthened its FII franchise by entering into partnerships.
Distribution business continued to scale well as revenue stood at ₹168.2 crore in Q4FY22 up 20% y-o-y on the back of traction in insurance distribution and broad based loan growth
ICICI Securities is India’s leading MF distributor by revenue and assets. ICICI Securities’ MF revenues grew by 35% YoY to ₹93.7 crore in Q4FY22. On the back of SIP count rising to 9.9 lakhs in March 2022 from 7.4 lakhs, the company’s market share in SIP flows stands at 3.7%. ICICI Securities’ MF AUM is up 22% YoY and is at an all-time high.
ICICI Securities is also a leading distributor of other financial products like loans, fixed income products, corporate bonds and deposits, insurance, bank Fixed Deposits (FD), Alternate Investment Funds (AIF), Portfolio Management Services (PMS), Sovereign Gold Bonds (SGB), and National Pension Scheme (NPS). This business grew by 12.6% YoY in Q4FY22 to ₹78.5 crore. ICICIdirect disbursed ₹660 crore worth of loans during the quarter, against ₹530 crore in the same period last year. During the quarter, the company had a 7.5% market share in SGB distribution and 11.2% for Exchange Traded Funds .
ICICI Securities has partnered with CoverStack, a digital B2B platform for insurance services, enhancing the product suite, integrating with insurers to jointly provide an analytics driven, personalised experience to our customers and leveraging the ICICIdirect Money App.
I-Sec’s Private Wealth Management (PWM) business reported ₹ 2.52 billion of revenue in Q4FY22 up 59% y-o-y. The PWM business is a home-grown franchise serving ~68,000 High Networth and Ultra High Networth (HNI/U-HNI) clients (~3,000 clients added during the quarter), with an asset base of ₹2.9 Lakh crore, up 70% year-on-year.
Our Issuer Services and Advisory business (Investment Banking) revenue stood at ₹ 64.9 crore in Q4FY22, up 22% YoY. ICICI Securities is ranked #1 in IPO/ FPO/ InvIT/ ReIT issuance with a 70% mobilization market-share. The company has strong IPO pipeline of 67 deals amounting to over ₹ 87,900 crore. The franchise has been acknowledged as India’s Best Securities House by AsiaMoney in 2021.
Management Commentary
Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, “We are happy to report an all-round financial performance with growth in all our business segments which is a testimony to our execution capabilities. Strong momentum continued in our broad-based and digital-led customer acquisition engine. The Board has declared a final dividend of ₹12.75 per share, amounting to ₹ 24.0 per share for FY22, which is highest ever.
During the quarter, 65% of customers acquired are under 30 years of age (vs 62% YoY) and 84% are from tier II and below geographies (vs 80% YoY).
As we continue our journey towards becoming a “digitally integrated financial marketplace”, our focus will be on Diversification, operating leverage, strengthening product positioning. We will continue making investments in Next-Gen technology to build a “future ready architecture” and in our brand as well as on building a diversified talent pool. Through these strategic levers we will offer highly customized solutions to partner our customers though their financial journey
About ICICI Securities
ICICI Securities Limited (I-Sec) is a subsidiary of ICICI Bank Ltd. The company began its operation in May 1995 and continues to grow its operation through expanding its client base and providing different type of services.
I-Sec operates www.icicidirect.com, India’s leading virtual financial supermarket, meeting the three need sets of its clients- investments, protection, and borrowing. Through its four lines of businesses — broking, distribution of financial products, wealth management and investment banking– I-Sec serves customers ranging from the retail and institutional investors to corporates to high net-worth individuals to government.
I-Sec is listed on National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). For details, visit: www.icicisecurities.com
Disclaimer
Except for the historical information contained herein, statements in this release which contain words or phrases such as ‘will’, ‘expected to’, etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in broking business and other financial services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in insurance regulations and other regulatory changes in India and other jurisdictions on us. ICICI Securities Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
