ICICI Securities Q4 FY22 results
FY22 Performance Highlights
- Revenue at ₹3,438crore, up 33% YoY; strong growth across all businesses
- Retail Equities and allied revenue at ₹2,013crore, up 26% YoY
- Institutional Equities and allied revenue at ₹254 crore, up 24% YoY
- Distribution income at ₹600crore, up 43% YoY
- Private Wealth Management revenue at ₹924crore up 105% YoY
- Issuer Services & Advisory* revenue at ₹296crore up 83% YoY
- PAT at ₹1,383crore, up 29% YoY
- Final dividend of ₹75/ share announced, taking the full year dividend to ₹24/sharein FY22 vs ₹21.5/share in FY21
- Cost to income ratio 46%; Return on Equity (annualized) at robust 65%
- 7lakh clients added; highest ever yearly addition
- Total client assets at ~₹6Lakh crore, up 48% YoY
- Wealth AUM at ₹86Lakh crore, up 70% YoY
- ~34lakhsoverall active clients, up 77% YoY
Q4FY22 Performance Highlights
- Revenue at ₹892crore, up 21% YoY; strong growth across all businesses
- Equities and allied revenue at ₹584crore, up 18% YoY
- Distribution income at ₹168crore, up 20% YoY
- Private Wealth Management revenue at ₹250crore up 59% YoY
- Issuer Services & Advisory* revenue at ₹65 crore up 24% YoY
- PAT at ₹340crore, 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
- 2lakh clients added; up by over 74.6%YOY
* Our investment banking business 1Market 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 31stMarch 2022(FY22 and Q4FY22).
ICICI Securities has a client base of ~76lakhs, of whichover 22.7lakhwere 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 ~34lakhsactive clients (those who have transacted across any product categories in the last 12 months) and over 30lakhsNSE active clients (those having traded on the NSE in the last 12 months), up 77% and 92% YoY respectively.
Total client assets stood at₹5.6Lakhcrore on31stMarch, 2022, vs₹3.8Lakh 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 ₹595.4crore. The Retail Equities and Allied Business reported revenues at ₹521.5crore, up 20%YoY,vs ₹442.6crore in Q4FY21.
ESOP&MTFinterest income rose 162% year-on-year to ₹153.8crore in Q4FY22 andthe daily average funded book for the quarter for these businesses stood at ~₹72billion against₹25.7billionin Q4FY2022, we continued to be market leader in MTF with 22% market share.The company continued to receiveencouraging response to Primeplan that provides a package of privilege pricing, exclusive research, and higher eATM limits per day. More than a millioncustomers have taken Prime membership. Prime and Prepaid customers together contribute 67% of retail equities revenue.
Our new digital properties (ICICIdirectMarkets and ICICIdirectMoney 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 revenueduring the quarter increased by 16% y-o-y to ₹168.2crore,further consolidating its position among the top domestic institutions and also strengthened its FII franchise by entering into partnerships.
Distribution businesscontinued to scale well as revenue stood at ₹168.2crore in Q4FY22up 20%y-o-yon 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 ₹93.7crore in Q4FY22. On the back of SIP count rising to 9.9 lakhsin March 2022 from 7.4 lakhs, the company’s market share in SIP flows stands at3.7%. 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 ₹78.5crore. ICICIdirect disbursed ₹660crore worth of loans during the quarter, against₹530crore 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 ICICIdirectMoney App.
I-Sec’s Private Wealth Management (PWM) business reported ₹ 2.52billion of revenue in Q4FY22 up 59% y-o-y. The PWM business is a home-grown franchise serving~68,000High Networth and Ultra High Networth (HNI/U-HNI) clients(~3,000 clientsadded during the quarter),with an asset base of ₹2.9Lakh crore, up 70% year-on-year.
Our Issuer Services and Advisory business (Investment Banking) revenue stood at ₹64.9crore in Q4FY22, up 22% YoY. ICICI Securities is ranked #1 in IPO/ FPO/ InvIT/ ReIT issuancewith a70% mobilization market-share. The company has strong IPO pipeline of 67deals amounting to over ₹87,900crore. The franchise has been acknowledged as India’s Best Securities House by AsiaMoney in 2021.
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 readyarchitecture” 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