Capitaline

Results 27-Apr-24

Analysis

SBI Cards & Payment Services

Loan growth strong at 25%, provisions remain high

SBI Cards and Payment Services has posted 11% growth in the net profit to Rs 662.37 crore in the quarter ended March 2024 (Q4FY2024). The income from operations increased 16% to Rs 4347.72 crore for Q4FY2024, while other income of the company declined 18% to Rs 126.85 crore. The total income increased 14% to Rs 4474.57 crore for Q4FY2024.

Interest expenses increased 43% to Rs 723.82 crore. Operating expenses fell 4% to Rs 1866.56 crore, allowing the operating profits to improve 28% at Rs 1884.19 crore. The cost-to-income ratio dipped to 49.8% in Q4FY2024 from 56.8% in Q4FY2023.

Depreciation increased 15% to Rs 51.63 crore, while provisions surged 50% to Rs 944.40 crore. Profit before tax rose 11% yoy basis at Rs 888.16 crore.

Effective tax rate was steady at 25.4% in Q4FY2024 from 25.4% in Q4FY2023. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 11% to Rs 662.37 crore for Q4FY2023.

Book value of the company stood at Rs 127.1 per share, while the adjusted book value net of NNPA stood at Rs 121.8 end March 2024.

Business Highlights

New accounts volume at 1,029K accounts in Q4FY24 against 1,371 K accounts in Q4FY23

Card-in-force grew by 13% yoy at 1.89 crore as of Q4FY24 against 1.68 crore as of Q4FY23

Spends grew by 11 % yoy at 79,653 crore in Q4FY24 against Rs 71,686 crore in Q4FY23

Receivables grew by 25% yoy at Rs 50,846 crore in Q4FY24 against Rs 40,722 crore in Q4FY23

Market share - for FY24 Card-in-force is at 18.6% (FY23: 19.7%), Spends is at 17.8% (FY23: 18.2%)

ROAA was at 4.7% in Q4FY24 against 5.4% in Q4FY23. ROAE at 22.2% in Q4FY24 against 24.6% in Q4FY23

Capital Adequacy Ratio at 20.5%; Tier 1 at 16.5%

Impairment losses & bad debts expenses increased by 50% at Rs 944 crore in Q4FY24 against Rs 630

Crore in Q4FY23

Total Balance Sheet size was Rs 58,171 crore end March 2024 as against Rs 45,546 crore end March 2023.

Net worth was Rs 12,156 crore as against Rs 9902 crore end March 2023

The Gross non-performing assets were at 2.76% of gross advances end March 2024 as against 2.35% end March 2023.

Net non-performing assets were at 0.99% as of March 2024 as against 0.87% end March 2023.

Company`s CRAR was 20.5% compared to 23.1% end March 2023. Company`s Tier I capital was 16.5% end March 2024 compared to 20.4% end March 2023.

Financial Performance FY2024

The income from operations increased 24% to Rs 16968.42 crore for FY2024, while other income of the company dipped 17% to Rs 515.08 crore. The total income increased 22% to Rs 17483.50 crore for FY2024. Interest expenses surged 58% to Rs 2595.22 crore. Operating expenses increased 12% to Rs 8172.31 crore, allowing the operating profits to improve 25% at Rs 6715.97 crore. The cost-to-income ratio declined to 54.9% in FY2024 from 57.6% in FY2023. Depreciation galloped 20% to Rs 196.75 crore, while provisions zoomed 52% to Rs 3287.42 crore. Profit before tax rose 7% yoy basis at Rs 3231.80 crore. Effective tax rate was steady at 25.5% in FY2024 from 25.5% in FY2023. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 7% to Rs 2407.88 crore for FY2024.

SBI Cards and Payment Services : Results
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
Income from operations	4347.72	3762.16	16	16968.42	13666.64	24
Other Income	126.85	154.41	-18	515.08	619.03	-17
Total Income	4474.57	3916.57	14	17483.50	14285.67	22
Interest Expenses	723.82	507.26	43	2595.22	1647.63	58
Other expenses	1866.56	1934.82	-4	8172.31	7284.61	12
Gross profit	1884.19	1474.49	28	6715.97	5353.43	25
Depreciation	51.63	45.06	15	196.75	163.81	20
Profit before tax and Provisions	1832.56	1429.43	28	6519.22	5189.62	26
Provisions and write off	944.40	629.76	50	3287.42	2159.05	52
Profit before tax	888.16	799.67	11	3231.80	3030.57	7
Provision for tax	225.79	203.20	11	823.92	772.10	7
PAT	662.37	596.47	11	2407.88	2258.47	7
EPS (Rs)*	27.9	25.1		25.3	23.7
Adj BV (Rs)	121.8	100.2		121.8	100.2
* Annualised on current equity of Rs 950.96 crore, Face value of Rs 10, Excluding extraordinary items.
Figures in Rs crore
Source: Capitaline Corporate Database

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