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The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2023.

Business Update for Q3FY24

• Integrated Investment Bank

• Another strong quarter across the integrated investment bank. ROE continues to remain in high teens
• Executed severalequity and fixed income transactions.Successfully completed 46 marque equity capital market transactions during calendar year 2023 amounting to total deal value of ~Rs. 92,917 crore and ranked #1 for the highest number of IPOs executed in India.The pipeline continues to be extremely robust
• Financial institutions financing book (FIF) has grown to Rs. 1,884crore (Rs. 1,009crore as of December 31, 2022, increase of 87% YoY)

• Mortgage Lending

• Wholesale mortgage lending
  • Strong repayments of Rs. 1,428 crore during the quarter
  • Pre-Covid loan book stood at Rs. 541 crore (3.6% of total loan book) as of December 31, 2023 (Rs. 1,571 crore as of March 31, 2023). Out of the Pre-Covid loan book, ~64% is in the NPA bucket
• Retail mortgage lending
  • Branches expanded to 112as of December 31, 2023 from 78as of December 31, 2022
  • Loan book has increased by 49% YoY to Rs. 1,759 crore as of December 31, 2023 (Rs. 1,181 crore as of December 31, 2022)

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

• Average daily turnoverincreased by 50% YoY to Rs. 42,644 crore as of December 31, 2023 (December 31, 2022 - Rs. 28,518crore)
• SEBI Margin Trade Financing book grewmore than two timesto Rs. 1,519 crore as of December 31, 2023 (December 31, 2022 – Rs. 650 crore)

• Retail and Elite Wealth AUM increased by 19% YoY and 44% YoY respectively to Rs. 27,748 crore and Rs. 1,766 crore respectively as of December 31, 2023 (Retail and Elite Wealth AUM stood atRs. 23,331crore and Rs. 1,230 crore respectively as of December 31, 2022)
• Closing AUM of mutual fund business increased by 51% YoY to Rs. 4,816 crore as of December 31, 2023 (Rs. 3,185 crore as of December 31, 2022). Closing AUM of equity schemes grew ~4 times to Rs. 2,818 crore as of December 31, 2023. During the month of January 2024, closing AUM of our mutual fund business crossed Rs. 5,000 crore
• We will continue to invest in digital and asset management businesses

• Alternative andDistressed Credit

• JM Financial Asset Reconstruction Company’s AUM stood at Rs. 15,059 crore as of December 31,2023 (Rs. 11,309crore as of December 31,2022, increase of 36% YoY)
• During the quarter, recoveries stood at Rs. 405crore

Summary of Consolidated results:

Summary of Key Statistics

(Rs. in Cr, unless otherwise stated)

Summary of segment-wise Loan book

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,“The Indian economy has been showing resilience driven by strong fundamentals. Banks and NBFCs are broadening credit expansion and penetration, thanks to healthy balance sheets, capital adequacy and improved asset quality. Equity markets are demonstrating heightened activity levelswith a strong IPO rally.

We are happy to report our highest ever quarterly revenues and operating profit after tax. Our Integrated Investment Bank segment saw continued momentum. In CY2023, JM Financial ranked #1 for the highest number of IPOs executed.

The retail mortgage lending segment has demonstrated strong growth and has expanded to 112 branches. Our investments will continue in the retail mortgage business as we continue to diversify our loan book. We witnessed strong repayments in our wholesale mortgage lending segment.

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

We continue to invest in the physical and digital infrastructure in the Platform AWS businesses.Closing AUM of our mutual fund business crossed Rs. 5,000 

crore in the month of January 2024 with equity AUM of Rs. 2,928 crore.We have witnessed strong growth in trading volumes for the broking business and strong traction in the SEBI MTF book.

Looking ahead, although the global economy is expecting muted growth, the Indian economy is likely to maintain its growth momentum on the back of upward corporate profitability and consumer confidence. We maintain a bullish outlook for our integrated Investment Bank, retail mortgage and platform AWS businesses and are aligning our strategic approach and resources to capitalize on the conducive market environment.”

Summary of Segment-wise performance:

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