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

Gained earnings traction In non-lending businesses also key to rerating.

<div class="paragraphs"><p>Various denominations of Indian rupee arranged for photograph. (Photo: Vijay Sartape/BQ Prime)&nbsp;</p></div>
Various denominations of Indian rupee arranged for photograph. (Photo: Vijay Sartape/BQ Prime) 

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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%.

Click on the attachment to read the full report:

ICICI Securities JM Financial Q2FY23 Result.pdf

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