Capitaline

Results 29-Jul-23

Analysis

SBI Cards & Payment Services

Loan growth healthy at 30%, high interest and credit cost remains a drag

SBI Cards and Payment Services has posted 5% decline in the net profit to Rs 593.31 crore in the quarter ended June 2023 (Q1FY2024). The income from operations increased 26% to Rs 3911.88 crore for Q1FY2024, while other income of the company declined 17% to Rs 134.23 crore. The total income increased 24% to Rs 4046.11 crore for Q1FY2024.

Interest expenses galloped 85% to Rs 571.07 crore. Operating expenses increased 18% to Rs 1912.36 crore, allowing the operating profits to improve 17% at Rs 1562.68 crore. The cost-to-income ratio was steady at 55.0% in Q1FY2024 from 55.0% in Q1FY2023. Depreciation increased 21% to Rs 47.56 crore, while provisions jumped 60% to Rs 718.56 crore.

Profit before tax declined 5% yoy basis at Rs 796.56 crore. Effective tax rate was steady at 25.5 in Q1FY2024 from 25.4% in Q1FY2023. Net Profit of the company declined 5% to Rs 593.31 crore for Q1FY2023.

Book value of the company stood at Rs 110.1 per share, while the adjusted book value net of NNPA stood at Rs 106.1 end June 2023.

Business Highlights

New accounts volume at 1,097K in Q1FY24 up by 22% against 902K new accounts in Q1FY23.

Cards-in-force grew by 21% YoY at 1.73 crore as of Q1FY24 against 1.43 crore as of Q1FY23

Spends grew by 24% YoY at Rs 73913 crore in Q1FY24 against Rs 59671 crore in Q1FY23

Receivables grew by 30% YoY at Rs 43271 crore in Q1FY24 against Rs 33215 crore in Q1FY23

Market share for Q1FY24 Card-in-force is at 19.6% (Q1FY23: 18.2%), Spends is at 17.8% (Q1FY23: 18.2%), #2 for both, Cards-in-force and spends, in industry

Total Balance Sheet size end June 2023, was Rs 47916 crore as against Rs 45546 crore end March 2023

Total Gross Advances (Credit card receivables) end June 2023, were Rs 43271 crore, as against Rs 40722 crore end March 2023

Net worth end June 2023, was Rs 10496 crore as against Rs 9902 crore end March 2023

The Gross non-performing assets were at 2.41% of gross advances end June 2023, as against 2.24% end June 2022. Net non-performing assets were at 0.89% end June 2023, as against 0.79% end June 2022.

As per the capital adequacy norms issued by the RBI, Company`s capital to risk ratio consisting of Tier I and Tier II capital should not be less than 15% of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. End June 2023,

Company`s CRAR was 22.9% compared to 24.7% end June 2022. The Tier I capital in respect of an NBFC-ND-SI, at any point of time, can`t be less than 10%. Company`s Tier I capital was 20.3% end June 2023, compared to 21 .5% end June 2022.

Financial Performance FY2023

The income from operations increased 28% to Rs 13666.64 crore for FY2023, while other income of the company fell 1% to Rs 619.03 crore. The total income increased 26% to Rs 14285.67 crore for FY2023. Interest expenses increased 60% to Rs 1647.63 crore. Operating expenses increased 28% to Rs 7284.61 crore, allowing the operating profits to improve 17% at Rs 5353.43 crore.

The cost-to-income ratio increased to 57.6% in FY2023 from 55.5% in FY2022. Depreciation rose 10% to Rs 163.81 crore, while provisions fell 4% to Rs 2159.05 crore.

Profit before tax surged 40% yoy basis at Rs 3030.57 crore. Effective tax rate eased to 25.5% in FY2023 from 25.6% in FY2022. Net Profit of the company improved 40% to Rs 2258.47 crore for FY2023.

SBI Cards and Payment Services : Results
	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
Income from operations	3911.88	3100.29	26	13666.64	10677.27	28
Other Income	134.23	162.56	-17	619.03	624.25	-1
Total Income	4046.11	3262.85	24	14285.67	11301.52	26
Interest Expenses	571.07	308.38	85	1647.63	1027.32	60
Other expenses	1912.36	1624.14	18	7284.61	5697.64	28
Gross profit	1562.68	1330.33	17	5353.43	4576.56	17
Depreciation	47.56	39.16	21	163.81	148.56	10
Profit before tax and Provisions	1515.12	1291.17	17	5189.62	4428.00	17
Provisions and write off	718.56	450.25	60	2159.05	2255.84	-4
Profit before tax	796.56	840.92	-5	3030.57	2172.16	40
Provision for tax	203.25	214.01	-5	772.10	556.02	39
PAT	593.31	626.91	-5	2258.47	1616.14	40
EPS (Rs)*	25.1	26.5		23.9	17.1
Adj BV (Rs)	106.1	86.1		100.2	79.6
* Annualised on current equity of Rs 946.36 crore, Face value of Rs 10
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

SBI Cards & Payment Services standalone net profit rises 11.05% in the March 2024 quarter
( Results - Announcements 27-Apr-24 07:26 )

SBI Cards & Payment Services to consider interim dividend
( Corporate News - 14-Mar-24 09:34 )

SBI Cards & Payment Services
( Analyst Meet / AGM - Conference Call 25-Jan-23 09:46 )

SBI Cards & Payment Services Ltd down for fifth straight session
( Hot Pursuit - 20-Jan-24 13:35 )

Board of SBI Cards appoints Nominee Director
( Corporate News - 04-Oct-23 17:21 )

SBI Cards director resigns
( Corporate News - 26-Jun-23 18:46 )

SBI Cards & Payment Services Ltd spurts 2.86%, up for third straight session
( Hot Pursuit - 01-Feb-23 13:05 )

SBI Cards allots 29,275 equity shares under ESOP
( Corporate News - 22-Jul-22 12:29 )

SBI Cards & Payment Services standalone net profit rises 7.78% in the December 2023 quarter
( Results - Announcements 27-Jan-24 07:32 )

SBI Card slips after brokerage initiates 'Sell' call
( Hot Pursuit - 10-Jan-22 10:51 )

SBI Cards CFO resigns
( Corporate News - 04-May-22 08:39 )