Capitaline

Results 29-Apr-22

Analysis

SBI Cards & Payment Services

Strong show

SBI Cards and Payment Services has posted robust 231% surge in the net profit to Rs 580.86 crore in the quarter ended March 2022 (Q4FY2022). The income from operation increased 22.91% to Rs 2850.31 crore in Q4FY2022. Overall OPM has increased to 32.28% in Q4FY2022 from 15.66% in Q4FY2021, leading to 153.41% rise in operating profit to Rs 919.98 crore. Other expenditure as a percentage of total income moved down to 49.71% from 51.17% in Q4FY2022. The staff cost as a percentage of total income declined to 4.23% from 5.44% in Q4FY2022. The provisions as percentage of total income declined to 13.78% from 27.74% in Q4FY2022. Other income increased 11.17% to Rs 165.79 crore. Interest cost increased 9.73% to Rs 267.37 crore. Depreciation moved up 14.86% to Rs 39.18 crore. PBT moved up 232.43% to Rs 779.22 crore.

The effective tax rate increased to 25.46% in Q4FY2022 compared to 25.16% in Q4FY2021. Provision for tax was expense of Rs 198.36 crore, compared to Rs 58.98 crore. Profit after tax jumped 231.13% to Rs 580.86 crore.

Business highlights

ROAA improved to 7.0% for Q4FY22 from 2.6% for Q4FY21. ROAE at 30.4% for Q4FY22 from 11.2% for Q4FY21.

Capital Adequacy Ratio at 23.8% with Tier 1 at 21.0%.

New accounts volume at 1002k for Q4FY22 up by 27% as compared to 791k for Q4FY21.

Card-in-force grew by 16% to 1.38 crore as of Q4FY22 from 1.18 crore as of Q4FY21.

Total spends grew by 51% to Rs 54134 crore in Q4FY22 from Rs 35943 crore in Q4FY21.

Market share FY22 (till February 2022) - Card-in-force at 18.9% (FY21: 19.1%), Spends at 19.2% (FY21: 19.4%); Transactions at 19.8% (FY21: 19.7%).

Receivables grew by 25% to Rs 31281 crore as of Q4FY22 from Rs 25114 crore as of Q4FY21.

GNPA at 2.22% as of Q4FY22 from 4.99% as of Q4FY21. NNPA at 0.78% as of Q4FY22 from 1.15% as of Q4FY21. RBI restructured loan book stands at Rs 287 crore, less than 1 % of receivables in Q4FY22.

Total Management overlay provision at Rs 51 crore end March 2022.

Total Balance Sheet size was Rs 34648 crore end March 2022 as against Rs 27013 crore end March 2021.

Total Gross Advances (Credit card receivables) end March 2022, were Rs 31281 crore, as against Rs 25114 crore end March 2021.

Net worth end March 2022, was Rs 7824 crore as against Rs 6374 crore end March 2021.

Financial Performance FY2022

The income from operation of SBI Cards & Payment Services increased 14.85% to Rs 10677.27 crore in FY2022. Overall OPM has increased to 25.51% in FY2022 from 22.30% in FY2021, leading to 31.38% rise in operating profit to Rs 2723.79 crore. The provisions as percentage of total income declined to 21.13% from 28.38% in FY2022. Other expenditure as a percentage of total income moved up to 48.94% from 44.03% in FY2022. The staff cost as a percentage of total income declined to 4.43% from 5.29% in FY2022.

Other income increased 49.66% to Rs 624.25 crore. There is 1.54% fall in interest cost at Rs 1027.32 crore and 20.53% rise in depreciation to Rs 148.56 crore, Profit before tax increased 64.09% to Rs 2172.16 crore. There is no extraordinary item. After which, PBT increased 64.09% to Rs 2172.16 crore. The effective tax rate declined to 25.60% in FY2022 compared to 25.63% in FY2021. Provision for tax was expense of Rs 556.02 crore, compared to Rs 339.21 crore. Profit after tax galloped 64.16% to Rs 1616.14 crore.

SBI Cards & Payment Services : Standalone Results
Particulars	2203 (3)	2103 (3)	Var %	2203 (12)	2103 (12)	Var %
Income from Operations	2850.31	2319.01	23	10677.27	9296.46	15
OPM (%)	32.28	15.66		25.51	22.30
OP	919.98	363.04	153	2723.79	2073.27	31
Other Inc.	165.79	149.13	11	624.25	417.12	50
PBDIT	1085.77	512.17	112	3348.04	2490.39	34
Interest	267.37	243.66	10	1027.32	1043.40	-2
PBDT	818.40	268.51	205	2320.72	1446.99	60
Depreciation	39.18	34.11	15	148.56	123.26	21
PBT before EO	779.22	234.40	232	2172.16	1323.73	64
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	779.22	234.40	232	2172.16	1323.73	64
Tax Expenses	198.36	58.98	236	556.02	339.21	64
PAT	580.86	175.42	231	1616.14	984.52	64
EPS (Rs)*	24.6	7.4		17.1	10.4
* Annualised on current equity of Rs 943.22 crore, Face value of Rs 10, Excluding extraordinary items.
Figures in Rs crore
Source: Capitaline Corporate Database

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