MUMBAI: Leading wealth management firm Nuvama Wealth Management, earlier Edelweiss Wealth, has reported a 77 per cent jump in net income at Rs 258 crore from Rs 145 crore on robust revenue growth for the quarter to September.
Consolidated revenue of the city-based company rose 50 per cent to Rs 740 crore. Of this revenue from wealth and asset management businesses grew 24 per cent to Rs 347 crore and earned Rs 119 crore in net income, which grew 22 percent. Revenue from capital markets business nearly doubled to Rs 376 crore and net income grew 158 percent to Rs 231 crore, driven by an increase in market share and supported by robust market activity, the company said in a statement Saturday.
Client assets achieved new milestones across segments, and rose to Rs 4.4 trillion. Of this, wealth management AUM crossed the Rs 3 trillion market, while asset management crossed the Rs 10,000 crore market and asset services crossed Rs 1.25 trillion.
The company declared an interim dividend of Rs 63 per share for half year ending September.
Expenses rose 30 per cent from Rs 302 crore to Rs 392 crore.
Commenting on the performance Nuvama Group chief executive Ashish Kehair said that over the past three to six months, global factors such as geopolitical tensions, uncertainty from US presidential elections and lacklustre quarterly earnings back home may have paused the bull run, however, the country’s economic growth as a long-term theme remains intact.
Given that the GDP is expected to double in the next five to six years augurs well for wealth and asset management and the sector has started seeing signs of rising interest from multiple players to address the needs of the customers across the wealth spectrum.
The past six months saw the company adding more clients than what we saw last year, he said, adding client assets have grown even faster crossing the milestone of Rs 4 trillion supported by client’s trust and market momentum.
In wealth management, the company continues to attract talent and expand with the past 12 months adding 350 relationship managers, establishing its presence offshore and deepening the domestic presence beyond the metros with the latest addition being Goa.
The asset management business has crossed the Rs 10,000 crore mark in just three years.
Wealth management client assets grew 41 per cent to Rs 3,05,824 crore.
Nuvama Wealth's revenue grew 25 per cent to Rs 203 crore and profits jumped 20 per cent to Rs 71 crore. Nuvama Private revenue rose 22 per cent to Rs 144 crore and profit rose 25 per cent to Rs 48 crore.
Asset management revenue jumped 45 per cent to Rs 17 crore and the AUM stood at Rs 10,288 crore, up 67 per cent.