JM Financial Q2 Results Review - Much Awaited Loan Growth Kicks In: ICICI Securities

ICICI Securities Report

JM Financial Ltd.’s Q2 FY23 result was characterised by:

1. Much-awaited loan growth finally materialising with 16% QoQ / 32% YoY expansion.

2. Retail mortgage disbursements up 21% QoQ / 67% YoY; assets under management doubles YoY; network rises to 75 branches.

3. Stress pool declines QoQ to 5.2% (gross non-performing asset plus special mention account-II) versus 5.7%.

4. Investment banking – broadly stable revenues supported by fixed-income activities.

5. Platform asset management, wealth management and securities business – revenue up 25% QoQ; investments in franchise continues; equity AUM up 8% QoQ.

6. Alternative and distressed credit – muted quarter as recoveries were limited.

All in all, consolidated profit after tax settled at a better than expected level of Rs 1.8 billion (up 6% QoQ / 3% YoY), translating to a consolidated return on asset of 4.4% and return on equity of 11.8%.

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