JM Financial reports 46% y-o-y increase in Q3FY24 consolidated net profit at ₹278 crore

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JM Financial Ltd (JMFL) reported a 46 per cent y-o-y increase in third quarter consolidated net profit at ₹278 crore on the back of strong performance by segments such as investment banks, mortgage lending, and Platform AWS (asset management, wealth management, and securities business).

However, the loan book was almost flat at ₹15,111 crore as of December 2023, against ₹15,234 crore as of December 2022.

JMFL, which is a diversified financial services group, reported a consolidated net profit of ₹190 crore in the year-ago quarter.

The company has businesses such as Integrated Investment Bank (IB), Mortgage Lending, Alternative and Distressed Credit, and Platform AWS.

Within JMFL’s consolidated net profit, IB’s net profit was up 59 per cent y-o-y to ₹159 crore; net profit from mortgage lending increased 16 per cent yoy to ₹49 crore; net profit from Alternative & Distressed Credit and Platform AWS shot up 154 per cent (at ₹15 crore) and 145 per cent (at ₹26 crore), respectively. Other businesses contribution to the bottonline was lower at ₹29 crore (₹31 crore in the year ago period).

Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said: “Our Integrated Investment Bank segment saw continued momentum… 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, Kampani said it continues to face delays in some of the large resolutions.

Due to the delay, he further expects lower-than-expected realisations in these assets over the next few quarters.

“We continue to invest in the physical and digital infrastructure in the Platform AWS businesses. The closing AUM of our mutual fund business crossed ₹5,000 crore in the month of January 2024, with an equity AUM of ₹2,928 crore.

“We have witnessed strong growth in trading volumes for the broking business and strong traction in the SEBI MTF (margin trading facility) book,” Kampani said.