Business
Presentation
November 2019
Agenda
• ICICI Securities at a glance
• Strategy
• Business Performance
• Financial Results
• Industry Overview
Our journey
Institutional Broking
Retail Broking
Corporate Finance
I-Sec Inc – USA
I-Sec Inc Singapore
Merger of Retail & Inst.
businesses
Distribution network
Wealth
Management
1994-1995 2005-2006 2011 onwards2000-2001 2007 to 2009
3
ICICI Bank &
JP Morgan JV
Strategic Component of the ICICI Ecosystem
Large growing franchise
Active clients (mn)
Operational accounts and active clients growth of 12% CAGR
Operational accounts (mn)
2.5
4.4
FY-14 FY-19
0.7
1.3
FY-14 FY-19
4
Includes only retail clients
Market share
Growing market share across categories
Equity & Derivative
market share (%)1
7.5
4.1
7.7
8.6
Equity Derivative
FY14 (4.5%) FY19 (8.5%)
MF AuM market share
(%)2
2.3
0.6
2.6
0.9
Equity Debt
FY 14 (1.1%) FY 19 (1.9%)
MF revenue market share
(%)
2.9
4.0
FY-14 FY-19
5
1. Number in brackets - Overall blended market share
2. Number in brackets - Overall MF market share including equity & debt, ISec AUM does not include direct plan
Source AMFI, SEBI
Equity Capital Markets
Strong position in equity capital market (ECM)
IPOs market share
(amount raised)ECM market share
(amount raised)
Advisory market share
(amount raised)
0%
38%
FY-14 FY-19
30%
41%
FY-14 FY-19
4%
7%
FY-14 FY-19
6
Source Prime database, Venture intelligence
ECM: IPO/FPO/InvIT/REIT, QIP/IPP, Rights issue, Offer for sale
ICICI Securities has built an enviable franchise…
7
4.6 mn Growing customer base
Largest Equity franchise in terms of revenue
>`800 bnAssets under advise of our wealth clients
1
Amongst leading wealth franchises
2nd
Largest non-bank mutual fund distributor by revenue2
1st
Rank in the IPO by value3
1. Clients having assessed profile and minimum assets of 75 lacs with us (equity assets are maintained in demat with ICICI Bank)
2. Source: AMFI (MF commission) period FY2019
3. IPO: IPO, FPO, InvIT (Investment trusts), REIT period H1-2020, Source: Prime database
… and a sticky customer base over the years
High Customer Stickiness
Revenue contribution by customers who have been
with us for more than 5 years
This trend is consistent and is reflected
continuously for the five prior years including the
recently ended FY19
8
> 65%1
1. Based on retail broking revenues
Agenda
• ICICI Securities at a glance
• Strategy
• Business Performance
• Financial Results
• Industry Overview
Working towards broadening the positioning
To be seen as comprehensive financial solutions provider for the affluent Indian -
Powered digitally
Imperatives:
• Broad basing business model
• Diverse and granular revenue streams
Protection
Wealth &
Investments
10
Assets &
Loans
Strategy: Strengthening the core and building the future
A. Ramping up scale and value
by augmenting and aligning
growth engines
B. Monetize client value
D. Robust technology and
digital agility
E. Operating leverage
through cost efficiency
C. Improving customer
experience
11
A. Ramping-up scale & value by augmenting & aligning growth
engines
Business
partners
Broad base
growth
• Digitally offer B2B2C
proposition to scale
business partners:
• On-boarding of partner
• On-boarding of clients
by the partner
• Client management and
platform support
Digital on-
boarding
Modernise and
scale-up
• Re-engineer
entire on-
boarding
process
Bank win-win
partnership
Better customer quality
and higher activation
• Natural alignment: New
revenue sharing
agreement
• Sourcing focus:
Targeting affluent and
equity affinity client
segments
• Enlarge focus: NRI
12
Progress: Improvement in active client share
Ramping scale & value
1. % of New client acquisition (NCA) who traded within 90 days of account getting opened.
2. Trailing 12 month; Source: NSE
Period: Q2-FY2020 vs Q2-FY2019, QoQ: Q2-FY2020 vs Q1-FY2020
• Quality of Sourcing
• New arrangement with ICICI Bank
• Activation rate1
up from 33% to 46% for client sourced by bank
• Number of active NCA up by 22%
• Launched subscription based plan
• Over 1.6 lac subscriptions as at end Q2-FY2020
• NRI
• Started sharing digital leads with UAE & Bahrain, making
onboarding process smoother for customer
• Business partners
• Network at 8,000+ in Q2-FY2020, up by 29%
• Digital Sourcing
• Improvement in daily run rate of accounts opened
completely online
• Tab based instant account opening; monthly run rate of
~ 9,500
9.72%
9.70%
9.63%
9.59%
9.55%
9.53%
9.50%
9.47%
9.48%
9.48%
9.50%
9.45%
9.38%
9.40%
9.61%
9.67%
9.77%
9.81%
9.90%
10.03%
10.07%
10.02%
Jan
-18
Feb
-18
Mar-18
Ap
r-18
May-18
Ju
n-18
Ju
l-18
Au
g-18
Sep
-1
8
Oct-18
No
v-1
8
Dec-18
Jan
-19
Feb
-19
Mar-19
Ap
r-19
May-19
Ju
n-19
Ju
l-19
Au
g-19
Sep
-1
9
Oct-19
Market share2 in active client base (NSE)
• 9.1 lac NSE active clients2
• Consistently adding active clients for last 9 months
• Equity blended market share up by 90bps from
7.8% in Q2-FY2019 to 8.7% in Q2-FY2020
13
B. Monetize client value
03
02
01
Margin trading facility
MTF extended on NSE
Strengthening wealth management franchise
Comprehensive proposition for wealth clients including
curated proprietary offering
Insta digital loans as a new asset class
Digital lending to eligible customers for personal, auto
loan, home loan top-up, credit card, LAS and deposits
Digital Insurance
Ramping up distribution of insurance digitally
• Health, Travel, Auto, Two wheeler and Term
Enhancing product choice and product options
ESOP funding
Leveraging ESOP funding to build high quality client
sourcing and enhancing revenue stream
04
05
14
Progress: Enhancing completely digital product suite
Monetising client value
• Launched digital distribution of loans
• 0.9 million unique clients for pre approved loans based on bank’s credit criteria
• Digital personal loans and credit cards and auto loan top up launched
• Tie ups with insurance companies to digitally distribute insurance products
• Tie ups with Religare health and Star health
• Launched full suite of Health Insurance products with Religare Health in the stand alone health
category
• Margin trading facility extended on NSE on September 27, 2019
• ESOP funding: Ramping up book size
• Proprietary PMS for HNI clients: Growing AUM
15
Self directed
Pay per use
Individual stock based
recommendation
Self developed limited
tools
Investment only
Digital based advisory
supplemented by voice RM
Subscription based
One click investment in
recommended bundle of stocks
Augmenting using fintech
tools
Investment, protection,
loans & deposits
Relationship mgmt.
Onboarding clients
Research connect
Trading strategies
Scope
C. Enhancing engagement for client retention & penetration
Traditional approach New approachClient engagement
16
Progress: Curated engagement solutions
Enhancing engagement for client retention & penetration
• AI based tool for identifying next best action and next best product/service
• Pilot campaign initiated across 3 equity and 2 non-equity product/service
• Low touch engagement model
• License from IRDAI for Distance Marketing obtained on August 21, 2019
• Working on a pilot to offer low touch engagement model for insurance
• Launched One Click Investments on August 3, 2019
• 19 curated baskets of research recommended Mutual Funds
• Easy, convenient and automated portfolio allocation into basket of Mutual Funds
• Liquidity proposition ‘eATM’ extended on NSE on June 7, 2019
• New pricing plan for derivative product launched on September 25, 2019
• New brokerage plan in options being piloted
• Initial response encouraging
17
D. Robust technology and digital agility
Secure, stable and fast system
• Reliable
• Avg. response time of 24 ms
• Peak concurrent users ~ 48k
Established framework for managing
customer privacy & information security
Robust technology strength
3-tier recovery system and strong
business continuity processes
Open architecture & partnership
• Use API architecture to onboard
fintech partners
• Partner with fintech to offer customer
centric solutions
Increasing use of data analytics
• Infuse new talent
• Infuse new technologies
Digital agility
Improved user experience
• New interface website
• New mobile app
18
Progress: Fintech partnership based digital capabilities
Digital agility
• API architecture launched in September 2019
• Fintech partnership based digital capabilities
• Digital Team to scan the environment for identifying new technologies and opportunities
• Projects evaluated: 63, Projects moved to UAT: 1, Projects POC/Launched: 1, Project under
integration process: 1
• Launched
• AI based tool to increase customer engagement
• Under Implementation
• Trading strategy formulation tool for derivatives
• Comparison tool for insurance
• Upgrading client engagement platform
• Launched new website, currently in beta version
• Reengineering our mobile app including new UI/UX
19
E. Operating leverage through cost efficiency
Strong focus on inculcating cost culture to enable identification and
enhance cost efficiency on an on-going basis20
Re-evaluate branch infrastructure cost based on productivity, area efficiency and rentals
Centralization of certain vertical to optimise infrastructure and manpower cost
Process re-engineering to optimize acquisition related cost
Harnessing synergies within teams and business groups to optimize manpower
Migrating to digital/low touch coverage models
Progress: Rationalising cost structures
Operating leverage through cost efficiency
Period: Q2-FY2020 vs Q2-FY2019
• Overall cost down by 7%
• Employee cost down by 7%
• Head count down by 8%
• 5% decrease from 4,298 in June 2019 to 4,077 in Sept 2019
• Branch count down from 202 to 187
21
Agenda
• ICICI Securities at a glance
• Strategy
• Business Performance
• Financial Results
• Industry Overview
Business Performance
Growing client base and engagement
Operational accounts,
4.6 mn1
Ever traded,
2.8 mn2
Overall Active
1.3 mn3
NSE Active,
0.9 mn4
1. Operational accounts is the total client base with the company
2. Ever traded are the clients who have transacted at least once on our platform
3. Overall active clients are the clients who have transacted at least once during trailing 12 months across all product categories
4. NSE active client base are the clients who have traded at least once during trailing 12 months
Period: Q2-FY2020 vs Q2-FY2019
• 4.6 million strong base of operational
accounts; up by 9% YoY
• 13.3 lac overall active clients, increased by
5% YoY
• 9.1 lac NSE active clients, increased by 7%
YoY
23
Equities business
Blended market share
4.5%
4.7% 6
.6%
7.8%
9.0%
8.5%
8.6%
7.3%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Derivative market share
4.1%
4.4%
6.5% 7.8%
9.1%
8.6%
8.6%
7.3%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
I-sec ADTO (` billion)
44
65 10
1 18
7
37
2
53
3
55
6
71
1
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Equity market share
7.5%
7.4%
7.4%
7.1%
7.4%
7.7%
7.8%
8.7%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
24
28% growth in I-Sec ADTO, Equity market share up by 90bps
Period: Q2-FY2020 vs Q2-FY2019
Retail equities business
Revenues (` million)
Leading equity franchise in India
3-in-1 Platform
• Providing seamless experience
• Mutual beneficial relationship with ICICI Bank
• Presence in 3,7501+ ICICI Bank branches
• 3-tier disaster recovery system
• Fully integrated risk system
• Real-time tracking of trigger prices
• Over 95% broking transactions performed
online
4,6
21
7,0
27
6,0
70
7,0
16
9,1
74
8,1
54
2,1
94
1,8
32
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 12%
25
1. As at FY-19
Retail equity franchise down by 16% in Q2FY20 due to
• Decline in delivery volumes, being an industry trend
• Lower yields on account of adoption of Prime
Plan to offset by
• Better quality of acquisitions and scaling up channels
• Increasing allied equity revenue streams (ESOP, MTF,
Prime fees)
Period: Q2-FY2020 vs Q2-FY2019
Institutional Equities business
Revenues (` million)
Institutional equities – Growing scale
33
9
52
7
53
7
74
0 1,0
69
1,1
74
27
9
32
6
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 28%
• Significant India coverage supplemented by
Asia Pacific and USA
• Growing Direct market access business
• Research
• coverage of 249 Indian stocks1
• 37 member research team1
• Leading procurement in IPOs, QIPs, OFSs and
Block deals
26
Institutional equities business revenue up by 17% in Q2-
FY20
• Supported by strong traction in block deals
1. As at FY19
Period: Q2-FY2020 vs Q2-FY2019
Distribution
Strong online presence aided by pan India distribution
Revenues (₹ million)
1,8
67
2,6
69
2,5
41
3,4
97
4,6
65
4,6
35
1,2
79
1,0
62
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 20%
27
• Presence in over 75+ cities with ~187
branches
• 1,300+ relationship managers and product
specialists
• Wealth management solutions for HNIs/Family
offices, 300+ member team
• Over 700+ cities/towns with 8,000+ sub-
brokers, authorized persons, IFAs and IAs
• Significant presence in the Tier-II and Tier-III
citiesOverall distribution revenue down by 17% in Q2-FY20,
sequential growth of 8%
• Non MF distribution1
revenue up by ~7%
• MF revenue down 24% in line with anticipated TER
impact, almost flat sequentially
Period: Q2-FY2020 vs Q2-FY2019
Distribution
MF AUM (` billion)
2nd
Largest non bank Mutual Fund distributor
Mutual Funds revenue (` million)
78
9
1,5
40
1,1
17
1,6
57
2,8
47
2,6
95
73
1
55
6
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 28%
76
12
0
16
0 21
2
30
2
34
7
35
1
35
8
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 36%
28
Distribution
Non MF distribution revenue (` million)
Enhanced focus on non Mutual Fund distribution1; up 7% in Q2-FY20
1,0
78
1,1
28
1,4
24
1,8
39
1,8
18
1,9
40
44
4
47
4
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 12%
Investments
• IPOs, OFS, public bond offerings
• 3rd party corporate fixed deposits
• National Pension System
Protection
• Life /General Insurance
Assets/Wealth creation
• Loan products referrals
• Portfolio management services
• Alternate investment funds
Launched Digital loans; ~ 0.9 million customers pre-approved for instant loan
29
1. Group of products which are being focused on to grow overall distribution revenue and include PMS, AIF, NPS, General insurance, Bonds, Deposits etc. and
exclude income such as marketing fees and paid educational programs
Period: Q2-FY2020 vs Q2-FY2019
Corporate Finance
Revenues (` million)• Ranked 1
stin IPO
1league table by value
• Rank 1st amongst domestic financial advisors
by number of deals in merger market table
• Strengths
• Sector expertise
• Corporate relationships
• Strong distribution franchise
• Expected to benefit from the robust deal
pipeline
Leading Investment Bank in India
59
3
63
8
83
4 1,1
98
1,4
40
99
1
28
3
32
2
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 11%
30
• Corporate finance revenue increased by 14% in
Q2-FY20, up 93% sequentially (QoQ)
• 11 Investment Banking deals including 4 advisory
deals in Q2-FY20
1. IPO:IPO/FPO/InvIT/REIT
Source: Prime Database, Merger market , SEBI
Period: Q2-FY2020 vs Q2-FY2019
Corporate Finance: Q2-FY20 snapshot
• IPOs/InvIT: Affle (India) Ltd, Spandana Sphoorty
Financial Ltd., Sterling & Wilson Solar Ltd.
• Block deal: ICICI Lombard, Wheels India, AU small
finance bank
• Ranked 1st among domestic financial advisors by
number of deals in merger market league table
• 4 M&A deals in Q2-FY2020 vs 3 deal in Q2-FY2019
• Advisory: ASG Eye Hospital Pvt. Ltd., Advent
International Corporation, Sanofi India ltd,
Dhunseri Petrochem & Tea ltd
• Ranked 1st in IPOs1
league table in H1-FY20
• SEBI IPO pipeline of over ` 57 bn as on Sept’19
• Left lead banker in 6 deals
• Rights: Patel Engineering Ltd.
• Takeover: Linde India Ltd., International Paper
Appm Ltd.
1. IPOs: IPO/FPO/InvIT/REIT Source: Prime database
IPO Consolidation product
Advisory Major deals
Period: Q2-FY2020 vs Q2-FY201931
Agenda
• ICICI Securities at a glance
• Strategy
• Business Performance
• Financial Results
• Industry Overview
Financials
Revenue diversification1 (%)
Strong financial performance
Revenue (` million)
8,12
3
12
,0
95
11
,2
46
14
,0
42
18
,6
10
17
,2
70
4,5
81
4,1
82
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 16%
61
%
62
%
59
%
55
%
55
%
54
%
54
%
52
%
39
%
38
%
41
%
45
%
45
%
46
%
46
%
48
%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Brokerage revenue Others
331. Brokerage is excluding interest & others
Asset light agency business with high returns
Dividend payout (` million)
Consistent dividend payout & high ROE due to asset light model
40
0
1,6
11
1,6
11
2,0
50
3,0
28
3,0
28
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19
FY14 to FY19
CAGR 50%
PAT (` million)
90
8
2,9
39
2,3
87
3,38
6
5,5
35
4,9
07
1,3
42
1,3
51
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 40%
Return on Equity remain robust at 48% for Q2 FY2034
Consolidated P&L
35
(` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%
Revenue 4,581 8,940 4,021 4,182 8,203 (9)%
Operating Expenses1
340 592 245 244 489 (28)%
Employee benefits expenses 1,435 2,802 1,274 1,339 2,613 (7)%
Finance Cost2
108 239 178 179 357 66%
Other expenses2
621 1,204 564 579 1,143 (7)%
Total expenses 2,504 4,837 2,261 2,341 4,602 (7)%
Profit before tax 2,077 4,103 1,760 1,841 3,601 (11)%
Tax3
735 1,423 622 490 1,112 (33)%
Profit after tax 1,342 2,680 1,138 1,351 2,489 1%
Other Comprehensive Income (OCI) - (16) (35) (16) (52) -
Total Comprehensive Income (TCI) 1,342 2,664 1,103 1,335 2,437 (1)%
Y-o-Y: Q2-FY2020 vs Q2-FY2019
1. Includes MTM of ` 108 mn & 36 mn taken in Q1-FY2020 and Q2-FY2020 respectively on DHFL
2. Impact of Ind AS116 in Q1-FY2020 & Q2-FY2020 respectively: finance cost & depreciation increase by ` 156 mn , ` 141 mn;
lease expense reduce by ` 128 mn and ` 119 mn; having a net impact of ` 28 mn and 22 mn
3. Impact of change in income tax rate including impact on account of revaluation of deferred tax asset given in Q2-FY2020
Segment performance
36
(` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%
Segment Revenue
Broking & commission 4,241 8,209 3,637 3,810 7,448 (10)%
Advisory services1
283 605 167 323 489 14%
Investment & trading 57 126 69 49 118 (14)%
Income from operations2
4,581 8,940 4,021 4,182 8,203 (9)%
Segment Profit before tax
Broking & commission 1,904 3704 1,647 1,672 3,318 (12)%
Advisory services 144 315 16 175 191 22%
Investment & trading 29 84 (51) (6) (56)
Total Result 2,077 4,103 1,760 1,841 3,601 (11)%
Y-o-Y: Q2-FY2020 vs Q2-FY2019
1. Advisory services includes Financial advisory services such as equity-debt issue management services, merger and
acquisition advice and other related activities
2. Amount of ` 207 mn and ` 148 mn pertaining to interest on income tax refund is not allocated to any segment and is
included in total revenues and results of FY2019 and Q1-FY2020 respectively
Balance sheet : Assets
(` million)
37
ASSETS At Sep 30, 2018 At Mar 31, 2019 At Sep 30, 2019
Financial assets (A) 25,538 43,697 31,030
Cash/Bank and cash equivalents 16,823 31,4861
15,322
Derivative financial instruments and Securities for trade 700 2,563 5,642
Receivables 2,013 4,770 2,457
Loans 5,022 4,033 6,797
Investments 37 28 27
Other financial assets 943 817 785
Non-financial assets (B) 2,694 2,949 4,986
Deferred tax assets (net) 647 737 5712
Right-of-use assets3
- - 1,662
Fixed assets, CWIP & Intangible assets 454 476 517
Current tax assets & other non financial assets 1,593 1,736 2,236
Assets (A+B) 28,232 46,646 36,016
1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as on March 31, 2019
2. Re-measured deferred tax assets at new income tax rate
3. Lease assets capitalised as per Ind AS 116, which came into effect on April 1, 2019, are being reported as Right of use assets
Balance sheet : Equity and Liabilities
(` million)
38
EQUITY AND LIABILITIES At Sep 30, 2018 At March 31, 2019 At Sep 30, 2019
Financial liabilities (A) 13,285 30,182 19,892
Derivative financial instruments 3 17 -
Payables 6,091 23,3621
5,650
Debt securities 5,204 4,473 10,143
Lease liabilities2
- - 1,654
Deposits & Other financial liabilities 1,987 2,330 2,445
Non-financial liabilities (B) 5,288 5,991 5,366
Equity (C) 9,659 10,473 10,758
Equity share capital 1,611 1,611 1,611
Other equity 8,048 8,862 9,147
Equity and Liabilities (A+B+C) 28,232 46,646 36,016
1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as at March 31, 2019
2. Lease liabilities are being capitalised in financial liabilities as per Ind AS116 applicable from April 1, 2019
Agenda
• ICICI Securities at a glance
• Strategy
• Business Performance
• Financial Results
• Industry Overview
Enablers: Rapidly transforming Digital India
• 1.2bn Aadhaar enrollment
• 740m+ direct benefit transfer transactions
• 10mn+ businesses on online GST network
• Increasing volume of quality data available across
various agencies
• Developments in
• Data Sciences & Analytics
• Machine learning/ Artificial Intelligence technologies
• Artificial Intelligence
• 1.2bn mobile phones in India
• Smartphone penetration at 26.2% in 2018
• Expected to be 66% by FY221
• 0.6bn internet subscribers in India
• Second only to china
• Mobile data consumption at 8.3gb per month per user
• China at 5.5gb
• Digital payment transactions at 15bn up from 5bn FY14
• Mobile trading2
at 10% in 2018 from 1% in 2014
• Data costs are down by more than 95% since 2013
• Download speed increased 4x between 2014 and 2017
High device penetration Affordable access spurring adoption
Digital Data infrastructure Policy led systematic push
40
Source: McKinsey, 1. CRISIL, 2. SEBI (Mobile as a mode of trading in cash market at NSE)
Enablers: Financialisation and equitisation of savings
41
Growing incremental share of financial investments in
shares & debentures1
High growth across financial asset classes2
In ` trillion
Rising financial savings
165 131
95 149 149
116
200 213
146
348
259
162
491
289
179
Equity + Derivative
ADTO
MF AUM Insurance Premium
(FY)
FY-15 FY-16 FY-17 FY-18 FY-19
6.4 7.38.3 8.8
11.19.7
11.3
31.1% 32.9%36.5% 36.1%
44.9%
37.0%
38.4%
FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18
Financial Savings
Financial Savings as a % of Household Savings
1.8% 1.6% 1.6% 1.6%
3.0%2.6%
8.0%
FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18
Source: RBI, IRDA, AMFI, NSE, BSE, EIU; ADTO: Average daily turnover;
1. Include investment in shares and debentures of credit / non-credit societies and investment in mutual funds
(other than Specified Undertaking of the UTI) (Source: RBI, MOSPI)
2. Indexed to 100 in FY 14
Industry trends: Slow down in primary & secondary market
Weak FII flow Contribution of better yielding delivery volume reducing
Subdued capital market (IPO) activity
3.4
1.5
(4.1)
(0.0)
FY18 FY19 H1-FY2019 H1-FY2020
30%
26%
27%
25%
FY18 FY19 H1-FY2019 H1-FY2020
888
227 155 107
FY18 FY19 H1-FY2019 H1-FY2020
Source: Bloomberg, SEBI, NSE, BSE, Prime database, AMFI; IPO: IPO/FPO/InvIT/REIT, H1: April to September
FII Equity Flow in USD billion Delivery volume contribution to Overall Equity volume
IPO mobilization In ` billion
Slow down in MF net equity flow
2,608
1,148
718 592
FY18 FY19 H1-FY2019 H1-FY2020
In ` billion
42
Nifty Midcap Index Nifty Small cap Index
14,500
15,500
16,500
17,500
18,500
19,500
20,50020,290
4,500
5,500
6,500
7,500
8,500
16,026
8,390
5,594
Industry trends: Equity market volatile with downward bias
Down by 21% and 13% from April-18 and
April-19 peak respectively
Down by 33% and 18% from April-18 and
April-19 peak respectively
43
18,3396,783
Source: NSE
Industry trends: Equity secondary market
44
Growing retail participationRise in demat accounts (In million)
Growing share of trading volume (` billion) Secondary market volume growth led by derivative volume#
In ` billion
213 202 244 338 1,368 1,525 2,409 4,143 6,251352
54% 52%58% 58% 56%
51%
30%37%
44% 46% 47% 45%
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
Equity Derivative
360 9,676
Source: NSE, BSE, SEBI, NSDL, CDSL; ADTO – Average daily turnover
#Excluding proprietary volume
Equity market ADTO Total market ADTO ex proprietary
2325
2832
3639
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
68% 68% 66% 70% 74% 76%
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
Equity Derivative
88% 89% 92% 93% 96% 97%
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
Equity Derivative
Industry trends: Savings - Increasing managed equity
45
Mutual Fund (Exit) AUM (` trillion) Growing share of beyond top 35 cities in MF AUM
More systematic retail participation through SIP Mutual Fund folio
SIP flow (` billion) Folio Count (million)
92% 92% 91% 91%82% 80%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19
Top 35 Others
Source: AMFI
10.812.3
17.5
21.4
23.8 24.5
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
439
672
927
248
FY-17 FY-18 FY-19 Q2-FY20
4248
55
71
8286
FY-15 FY-16 FY-17 FY-18 FY-19 Q2-FY20
Industry trends: Protection
46
Life Insurance premium1 (` trillion) Health Insurance premium
1 (` trillion)
Source: IRDA
3.1 3.3
3.7
4.24.6
FY-14 FY-15 FY-16 FY-17 FY-18
0.170.20
0.24
0.30
0.37
FY-14 FY-15 FY-16 FY-17 FY-18
Industry trends: Wealth and Asset creation
47
PMS AUM1
(` trillion) Gross Bank Credit2 (` trillion)
1. Source: SEBI 2. Source: RBI
0.70.8
1.1
1.6
1.7
0.50.6
0.8
0.9
1.1
FY-15 FY-16 FY-17 FY-18 FY-19
Discretionary Non-Discretionary
66.5
71.5
77.3
FY-16 FY-17 FY-18
Safe harbor
48
Except for the historical information contained herein, statements in this release which contain words or
phrases such as 'will', ‘would’, ‘indicating’, ‘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 demand for broking and other financial
products and 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
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 broking regulations and other regulatory changes in India and other
jurisdictions as well as other risk detailed in the reports filed by ICICI Bank Limited, our holding company with
United States Securities and Exchange Commission . ICICI Bank and ICICI Securities Limited undertake no
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
This release does not constitute an offer of securities.
Thank you
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