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) 

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

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


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.