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Q1FY22 Performance Highlights

* Revenue at ` 748 crore, up 37% YoY; strong growth across all businesses

* Equities and allied revenue at ` 509 crore, up 30% YoY o

* Distribution income at ` 121 crore, up 51% YoY o

* Private Wealth Management revenue at ` 182 crore up 135% YoY o

* Issuer Services & Advisory* revenue at ` 47 crore up 113% YoY

* PAT at ` 311 crore, up 61% YoY

* Cost to income ratio at 44%, down 9 percentage points YoY; PBT margin at 56%; Return on Equity at robust 63%, up 4 percentage points YoY

* About 3.9 lac clients added; up by 367% YOY; highest ever quarterly addition

* Total client assets at ` 4.4 Lakh crore# , up 84% YoY

* Wealth AUM at ` 2 Lakh crore# , up 102% YoY

* 2.19 million overall active clients, up 45% YoY

Mumbai, Tuesday, July 20, 2021 – 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 quarter ending 30 th June 2021 quarter (Q1FY22) as compared to the corresponding quarter last year (Q1FY21).

Q1FY22 Performance

The company reported consolidated revenue of ` 748 crore in Q1FY22, against ` 546 crore in Q1FY21, up 37%, aided by strong all round performance in equities & allied business, distribution business, distribution business, private wealth management business, as well as investment banking business.

Consolidated Profit After Tax (PAT) for Q1FY22 stood at ` 311 crore, Vs ` 193 crore in Q1FY21, up 61%, on account of growth in revenue and improvement in margins. Cost to income ratio stood at 44% in Q1FY22, against 53% in Q1FY21. Return on Equity (annualized) during the period was at robust 63%, vs 59% in Q1FY21.

Business Highlights

ICICI Securities has a client base of ~5.8 million, of which ~3.9 lakh were added during the quarter, which is highest ever addition in a quarter. Digital sourcing continues to demonstrate strength with ~2.7 lakh customers added through this channel during the quarter. Our open architecture digital acquisition model, is also witnessing encouraging traction with over 75% of new accounts being opened by non-ICICI Bank channels. The company has over 2.19 million active clients (those who have given us revenue/transacted across any of our product categories in the last 12 months) and over 1.85 million NSE active clients (those having traded on the NSE in the last 12 months), up 45% and 65% YoY respectively.

Total client assets stood at ₹ 4.4 Lakh crore# on 30 th June, 2021, vs 2.4 Lakh crore a year ago, up 84%.

.In Q1FY22, 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 30% on-year to ` 509 crore. The Retail Equities and Allied Business reported revenues at ` 466 crore, up 30 % vs ` 358 crore in Q1FY21. ESOP & MTF interest income rose 258% year-on-year to ` 82 crore in Q1FY22 and the average book for these businesses stood at ~ `3,630 crore for Q1FY2022, against ~ ` 950 crore for Q1FY2021. Prime subscription income grew 57% YoY to ` 16 crore. The company continued to receive encouraging response to Prime, its annual subscription based plan that provides a package of privilege pricing, exclusive research, and higher eATM (payout within 30 mins of selling stocks) limits per day. Currently there are ~ 7.5 lakh Prime subscribers and Prime and Prepaid customers together contribute ~65% of retail equities revenue.

Our ICICIdirect NEO plan, launched in December, for the trading segment is gaining traction; we have added over 1 lac subscribers since launch.

Institutional equities revenue during the quarter increased by 24% year-on-year to ` 43 crore on the back of established traction with in DII (Domestic Institutional Investors) space and growing traction in the FII (Foreign Institutional Investors) space.

Distribution revenue stood at ` 121 crore in Q1FY22 up 51% against Q1FY21.

ICICI Securities is India’s second largest non-bank MF distributor by revenue and assets with a 4.5% revenue market share (based on FY20 AMFI data). ICICI Securities’ MF revenues grew by 49% YoY to ` 74 crore in Q1FY22. On the back of SIP count rising 35% YoY to 0.85 million in Q1FY22, the company’s market share in SIP flows has expanded to 4.08% from 3.17% YoY. ICICI Securities’ MF AUM is up 38% YoY and is at an all-time high.

ICICI Securities is also a leading distribution 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). The company’s market share in SGB distribution for Q1 FY22 was 10% and ETF distribution had a market share of 13% as of March 2021. During the quarter, the company distributed loans worth ~` 320 crore against ~` 110 crore in Q1FY21. The other distribution products revenue rose 56% YoY in Q1FY22 to ` 44 crore.

I-Sec’s Private Wealth Management (PWM) business reported ` 182 crore of revenue in Q1FY22 up 135% on-year. The PWM business is a home-grown franchise set up to service affluent customers. It serves ~ 54,900 clients, (~7,500 added during the quarter) with an asset base of ` 2 Lakh crore# , up 102% year-on-year. ICICI Securities’ proprietary Portfolio Management Scheme (PMS) AUM stood at ~ ` 290 crore as on 30th June 2021, against ~` 130 crore same period last year.

Our Issuer Services and Advisory business (Investment Banking) revenue stood at ` 47 crore in Q1FY22, up 113% on-year. ICICI Securities executed 10 investment banking deals during the quarter, against three in the corresponding quarter last year. ICICI Securities is ranked #2 in IPO/ FPO/ InvIT/ ReIT issuance with a 58% market share (Q1FY22). The company has strong IPO pipeline (as per SEBI filing) of 22 deals amounting to over ` 43,700 crore.

Management Commentary

Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, “Our company has continued progressing on the stated strategy, we are happy to report strong financial and operational performance during the quarter.

“We are seeing a continued traction in our customer additions. Our customer additions through digital partnerships, with contemporary digital players like iMobile Pay, PhonePe, Google Pay, Flipkart & Amazon have started to contribute meaningfully.”

“We also witnessed that visitors on our platform more than tripled between Dec 2020 and June 2021, due to initiatives taken around creating content for enhancing customer knowledge and experience by introducing proprietary digital knowledge properties targeted at different segments of the market. Our recently launched new age app “ICICIdirect Money” offering mutual funds, insurance and other products along with “ICICIdirect Markets”, which is currently in beta testing is expected to give further impetus to our digital initiatives.” “We are increasingly seeing commencement of a new structural trend of digital natives coming into the market and we also continue to see behavioural shifts amongst mature investors, throwing up slew of opportunities for tech focused digital company like us. We are uniquely positioned to emerge as full stack open architecture digital platform for life cycle investment & wealth, protection and borrowing needs of a retail Indian. “

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