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The Board of Directors of JM Financial Limited, at its meeting held today, has approved the unaudited financial results for the second quarter and half year ended September 30, 2024.

Business Update for Q2FY25 

* Integrated Investment Bank

* PAT increased by 51% YoY to Rs. 215 crore (Rs. 142 crore for QE September 30, 2023). ROE for H1FY25 stood at 20.4%**

*Private Wealth AUM* increased by 26% YoY to Rs. 76,262 crore as of September 30, 2024 (Rs. 60,287 crore as of September 30, 2023)

* PMS AUM increased by 92% YoY to Rs. 2,425 crore as of September 30, 2024 (Rs. 1,261 crore as of September 30, 2023)

* RBI lifted the restrictions imposed on JM Financial Products Limited (“JMFPL”). JMFPL is permitted to provide financing against shares and debentures with immediate effect

*  Mortgage Lending

*  Wholesale mortgage lending o In line with the guidance provided, the loan book (excluding ICD to group companies) has reduced during the quarter by Rs. 1,173 crore on the back of strong repayments

*  Provision coverage ratio has increased to 77% during the quarter (65% as of June 30, 2024 and 55% as of March 31, 2024)

*  Received approval from Competition Commission of India for the transaction involving acquisition of 42.99% stake by JM Financial Limited in JM Financial Credit Solutions Limited and acquisition of 71.79% stake by JM Financial Credit Solutions Limited in JM Financial Asset Reconstruction Company Limited from JM Financial Limited. The approval from RBI is awaited

* Retail mortgage lending

* Further penetration into existing geographies with the branch network expanding to 118 as of September 30, 2024

* AUM increased by 38% YoY to Rs. 2,366 crore as of September 30, 2024 (Rs. 1,714 crore as of September 30, 2023) whereas loan book increased by 40% YoY to Rs. 2,112 crore as of September 30, 2024 (Rs. 1,504 crore as of September 30, 2023)

* Platform AWS (Asset management, Wealth management and Securities business)

* PAT excluding Digital and Asset Management increased by 78% YoY to Rs. 55 crore

* SEBI Margin Trade Financing book increased by 58% to Rs. 1,918 crore as of September 30, 2024 (September 30, 2023 – Rs. 1,211 crore)

* Retail and Elite Wealth AUM* increased by 17% YoY and 73% YoY respectively to Rs. 30,983 crore and Rs. 2,537 crore respectively as of September 30, 2024 (Retail and Elite Wealth AUM* stood at Rs. 26,414 crore and Rs. 1,466 crore respectively as of September 30, 2023)

* Closing AUM of mutual fund business grew more than 3 times to Rs. 12,516 crore as of September 30, 2024 (Rs. 4,057 crore as of September 30, 2023). Closing AUM of equity schemes grew more than 5 times to Rs. 9,580 crore as of September 30, 2024

* We continue to invest in digital and asset management businesses

* Alternative and Distressed Credit

* JM Financial Asset Reconstruction Company (JMFARC)’s AUM stood at Rs. 13,701 crore as of September 30, 2024 (Rs. 15,114 crore as of September 30, 2023)

* Gross recoveries of the quarter ended September 30, 2024 stood at Rs. 614 crore (H1FY25 – Rs. 1,213 crore)

Commenting on the results and financial performance, Mr. Vishal Kampani, Vice Chairman and Managing Director, JM Financial Limited, said, “The Indian financial ecosystem continues to show resilience, supported by stable macroeconomic fundamentals and well-capitalized balance sheets. We are seeing tremendous traction in the capital markets focused businesses and transaction pipeline continues to remain extremely strong. In line with the guidance, we have seen strong reduction in the wholesale loan book through repayments and the MSME loans through assignment. In our wholesale mortgage lending business, we have accelerated the provision coverage ratio to a healthy 77% from 55% in the last 6 months and from now on, the provisions are expected to normalize. We are witnessing strong traction with the festival season in the affordable home loans business. Given the Group’s strong capitalization and cash levels, faster than expected reduction in the wholesale loan book, and the lifting of restrictions by the RBI, we expect reduction in the cost of borrowing for our key borrowing entities i.e. broking and affordable home loans businesses. We have made senior level hires and as a Group, are extremely excited with renewed focus on executing our strategies on our focused businesses i.e. corporate advisory and capital markets, wealth and asset management, private credit syndication and affordable home loans business.”

Summary of Consolidated results (Quarter):

Summary of Key Statistics

Summary of Segment-wise performance (Quarter)

Summary of Focused businesses’ performance (Quarter):

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