Edelweiss Q2 net up 45% on jump in fees, commission

The diversified revenue mix has helped us improve our performance: Edelweiss CEO

Edelweiss Financial Services consolidated net profit for the quarter ended September (Q2FY18) rose 45 per cent on a sharp uptick in income from fee and commission.  Net profit was Rs 209 crore in Q2FY18, against Rs 144.4 crore a year ago.

While lending-based income, a mainstay of the financial services firm, rose 12 per cent to Rs 1,380 crore from Rs 1,233 crore in Q2FY17.  The fees and commission income almost doubled to Rs 473 crore from Rs 241 crore in Q2FY17, the company said.  Premium income from the life insurance business grew 43 per cent to Rs 121 crore compared to Rs 85 crore in Q2FY17.  

Rashesh Shah, chairman and chief executive officer of the company, said, “The diversified revenue mix has helped us improve our performance on a sustained basis despite volatile environment.”  Total assets stood at Rs 1,90,800 crore with those on-balance-sheet amounting to Rs 47,800 crore and assets under management was Rs 1,43,000 crore.

At the end of Q2FY18, book size of retail credit grew by 40 per cent to Rs 11,783 crore, as against Rs 8,430 crore at the end of Q2FY17). The corporate credit book expanded by 19 per cent to Rs 15,398 crore from Rs 12,919 crore at the end of Q2FY17. The total credit book, including distressed credit, stands at Rs 32,540 crore at the end of second quarter.

Retail credit remains a key focus area, with the book growing at 40 per cent over the past year and the company is allocating more capital to this business.

The consolidated capital adequacy ratio for Edelweiss Group was 16.75 per cent as of  September 30, 2017.