ICICI Securities To Diversify Into Retail To Tap Into Wealthy Customer Base
An Australian twenty dollar banknote and various coins are arranged for a photograph with a piggy bank in Melbourne, Australia. (Photographer: Carla Gottgens/Bloomberg)  

ICICI Securities To Diversify Into Retail To Tap Into Wealthy Customer Base

WATCH | ICICI Securities CEO Vijay Chandok on the company’s Q3 results

ICICI Securities Ltd. is looking to broaden its product suite to include retail wealth management in its portfolio, a move that will spur its stock’s price-to-earnings ratio, according to Managing Director and Chief Executive Officer Vijay Chandok.

Diversifying the business model would also make the company less reliant on markets, Chandok told BloombergQuint, adding that the company’s high net-worth clients are served by a team of over 300 relationship managers. “The strategy is largely to diversify our product suite.”

Expanding the non-equities business is a natural progression, he said. “We felt that since we are anyway serving their investment needs, it’s very natural to extend that to distributing loans.”

Chandok’s comments came a day after ICICI Securities reported its December quarter results. The company’s net profit rose 35.6 percent year-on-year to Rs 137.2 crore on the back of revenue that rose 4.1 percent year-on-year to Rs 422.2 crore.

According to a research note by Antique Stock Broking, the third quarter witnessed small improvements across retail businesses for ICICI Securities after the downward trajectory was arrested in the previous quarter. The company added more than 90,000 customers in the quarter ended December.

ICICI Bank Q3 Results 2019-20: Key Highlights (YoY)

  • Revenue rose 4.1 percent to Rs 422.2 crore
  • Net Profit rose 35.6 percent to Rs 137.2 crore
  • Added 94,000 new clients in the December quarter
  • Retail Equities & Allied Business revenue rose 5 percent to Rs 228 crore
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