JM Financial’s highest ever quarterly revenue

Vishal Kampani: Our investments in Platform AWS businesses are on track

Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited,

FinTech BizNews Service 

Mumbai, November 3, 2023: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2023. 

Business Update for Q2FY24 

1. Investment Bank

• Another strong quarter across the integrated investment bank, achieved goal of 18% ROE and endeavor is to keep it in the high teens 
• Executed several equity and fixed income transactions. The pipeline is extremely robust
• Financial institutions financing book (FIF) has grown to Rs. 1,927 crore (Rs. 995 crore as of September 30, 2022, increase of 94% YoY)

1. Mortgage Lending

• Wholesale mortgage lending
  1. In line with our earlier guidance, we have made additional provisions of Rs 126 crore during the quarter
  2. Pre-Covid loan book stood at Rs. 713 crore (4% of total loan book) as of September 30, 2023 (Rs. 1,571 crore as of March 31, 2023). Out of the Pre-Covid loan book, ~61% is in the NPA bucket and 2% in the SMA 2 bucket
     1. Competitive intensity in the business is increasing 
  3. Branches expanded to 105 as of September 30, 2023 from 75 as of September 30, 2022
  4. Loan book has increased by 45% to Rs. 1,504 crore as of September 30, 2023 (Rs. 1,035 crore as of September 30, 2022)

1. Platform AWS (Asset management, Wealth management and Securities business)

• Average daily turnover increased by 47% YoY to Rs. 38,962 crore as of September 30, 2023 (September 30, 2022 - Rs. 26,532 crore)
• SEBI Margin Trade Financing loan book grew ~3 times to Rs. 1,211 crore as of September 30, 2023 (September 30, 2022 – Rs. 401 crore) 
• Retail and Elite Wealth AUM increased by 19% and 27% respectively YoY to Rs. 26,414 crore and Rs. 1,466 crore respectively as of September 30, 2023 (Retail and Elite Wealth AUM stood at Rs. 22,247 crore and Rs. 1,156 crore respectively as of September 30, 2022)
• Closing AUM of mutual fund business crossed Rs. 4,000 crore mark and increased by 65% YoY to Rs. 4,057 crore as of September 30, 2023 (Rs. 2,457 crore as of September 30, 2022). Closing AUM of equity schemes grew ~3 times to Rs. 1,783 crore as of September 30, 2023 
• We will continue to invest in digital and asset management businesses

1. Alternative and Distressed Credit

• JM Financial Asset Reconstruction Company’s AUM stood at Rs. 15,114 crore as of September 2023 (Rs. 11,349 crore as of September 2022, increase of 33%)
• During the quarter, further acquisition of assets stood at Rs. 107 crore and recoveries stood at Rs. 376 crore

Summary of Consolidated results: 

                     (Rs. in Cr)

Summary of Key Statistics 

                                                                                  (Rs. in Cr, unless otherwise stated)

^ Computed after reducing goodwill of Rs.52.4 Cr from shareholders’ funds and excludes borrowings for episodic financing

* Loan book for the lending entities and does not include episodic financing book and SEBI Margin Trade Financing Book which is a part of the Platform AWS business

Summary of segment-wise Loan book

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Commenting on the results and financial performance, Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said, “Though the global economy battled elevated inflation, geopolitical uncertainties and volatile financial conditions during the Q2 FY24, Indian capital markets continued with their robust performance driven by the rush of IPOs, block deals and public issue of debt. Our investments in the integrated investment bank segment are on the right track with the segment delivering another quarter of strong performance across equity, distribution, trading and fixed income.

During the quarter, JM Financial home loans achieved the milestone of crossing 100 branches. Our investments will continue in the retail mortgages business. Retail mortgage business is the cornerstone of our diversification strategy.

On the alternative and distressed credit business, we continue to face delays in some of our large resolutions. Due to the delay, we expect lower than expected realization in these assets over the coming few quarters.

Our investments in Platform AWS businesses are on track. Closing AUM of our mutual fund business crossed Rs. 4,000 crore and AUM of equity schemes grew to Rs. 1,783 crore. We have witnessed strong growth in the broking business across daily volumes and loan book. 

We are in the midst of executing several initiatives, some of which have already started showing results. We reported our highest ever quarterly revenues. We are confident in our ability to grow in various market environments while maintaining a strong capital position and remaining committed to drive value for our stakeholders.” 

Summary of Segment-wise performance: 

                     (Rs. in Cr)