Jammu and Kashmir Bank (J&KBANK) Q1 24/25 earnings summary

Executive summary

• Achieved 27% year-over-year growth in standalone net profit to ₹415.49 crore for Q1 FY25, with improved asset quality and capital adequacy.

• Maintained strong market presence in Jammu, Kashmir, Ladakh, and expanded digital and branch footprint across India.

• Focused on retail, MSME, and agriculture lending, with a healthy mix in advances and deposits.

• Continued digital transformation and operational modernization to enhance customer experience.

• Standalone and consolidated financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on July 27, 2024.

Financial highlights

• Net interest income rose 7% year-over-year to ₹1,369.23 crore; operating profit up 13% to ₹594.68 crore; standalone net profit at ₹415.49 crore, consolidated at ₹418.50 crore.

• Deposits grew 9% year-over-year to ₹1,32,573 crore; gross advances up 12% to ₹98,580 crore; credit-deposit ratio at 72%.

• Gross NPA reduced to 3.91% (from 5.77% last year), net NPA at 0.76%-0.77%, provision coverage at 91.57%.

• NIM at 3.86%, cost of deposits at 4.66%, yield on advances at 9.5%.

• Annualized ROA at 1.08%, ROE at 14.82%, EPS for Q1 FY25 at ₹4.01 (standalone), book value per share at ₹80.70.

Outlook and guidance

• Maintains FY25 guidance: credit growth ~15%, volume growth ~12%, CASA ~50%, NIM 3.75%-3.85%, ROA 1.25%-1.3%, ROE 17%-18%, gross NPA 3.5%.

• Employee cost and OpEx increases to remain in single digits.

• Bank adopted new RBI investment classification and valuation guidelines from April 1, 2024, resulting in a one-time net gain of ₹26.31 crore credited to General Reserve.

• Additional prudent provisioning made for sub-standard and doubtful accounts, and wage revision.

• Targeting bottom line of INR 4,000 crore by FY28.