JM Financial - Stress Pool Has Peaked; Q3 Earnings Buoyed By Distressed Credit Resolutions: ICICI Securities
JM Financial sign board. (Photo: Bloomberg)

JM Financial - Stress Pool Has Peaked; Q3 Earnings Buoyed By Distressed Credit Resolutions: ICICI Securities

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

JM Financial Ltd. reported its Q3 FY21 profit after tax at Rs 1.81 billion, up 15% YoY and ~30% QoQ.

Earnings across investment banking, wealth management and securities and mortgage lending businesses were stable (despite provisioning).

Overall earnings were buoyed by distressed credit resolutions. Asset reconstruction company contributed Rs 210 million to profits compared to less than Rs 100 million average quarterly trend.

Pro-forma gross non-performing loans and SMA-2 spiked to 8% (from 4.5%), but restructuring was marginal at 0.6% of loans.

Click on the attachment to read the full report:

ICICI Securities JM Financial Q3FY21 Results Update.pdf

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