Capitaline

Results 28-Oct-22

Analysis

SBI Cards & Payment Services

Loan growth accelerates, asset quality improves

SBI Cards and Payment Services has posted strong 52% surge in the net profit to Rs 525.64 crore in the quarter ended September 2022 (Q2FY2023). The income from operations increased 28% to Rs 3297.08 crore for Q2FY2023, while other income of the company jumped 31% to Rs 156.24 crore. The total income increased 28% to Rs 3453.32 crore for Q2FY2023. Interest expenses increased 45% to Rs 367.71 crore. Operating expenses increased 34% to Rs 1795.38 crore, allowing the operating profits to improve 18% at Rs 1290.23 crore. The cost-to-income ratio was higher at 58.2% in Q2FY2023 from 55.0% in Q2FY2022. Depreciation declined 3% to Rs 38.58 crore, while provisions dipped 8% to Rs 545.99 crore. Profit before tax surged 52% yoy basis at Rs 705.66 crore.

Effective tax rate eased to 25.5% in Q2FY2023 from 25.7% in Q2FY2022. Net Profit of the company improved 52% to Rs 525.64 crore for Q2FY2022.

Book value of the company stood at Rs 94.5 per share, while the adjusted book value net of NNPA stood at Rs 91.4 end September 2022.

Business Highlights Q2FY2023

ROAA improved to 5.4% for Q2FY23 from 4.9% for Q2FY22. ROAE also increased to 24.1% for Q2FY23 from 20.1% for Q2FY22

New accounts volume at 12.95 lakh accounts for Q2FY23 up by 36% from. 9.53 lakh accounts for Q2FY22

Cards-In-Force grew by 18% to 1.48 crore in Q2FY23 from 1.25 crore in Q2FY22

Spends grew by 43% at Rs 62306 crore for Q2FY23 from Rs 43560 crore for Q2FY22

Market share H1FY23 (available till September 2022) – Cards-In-Force at 19.1% (FY22: 18.7%). Spends at 18.0% for H1FY23 (FY22: 19.2%)

Receivables grew by 41% to Rs 37730 crore in Q2FY23 from Rs 26741 crore in Q2FY22

GNPA at 2.14% in Q2FY23 from 3.36% in Q2FY22; NNPA at 0.78% in Q2FY23 from 0.91% in Q2FY22

Total Balance Sheet size end September 2022 was Rs 41581 crore as against Rs 34648 crore end March 2022. Total Gross Advances (Credit card receivables) end September 2022 were Rs 37730 crore, as against Rs 31281 crore end March 2022.

Net worth end September 2022 was Rs 8991 crore as against Rs 7824 crore end March 2022.

The Gross non-performing assets were at 2.14% of gross advances end September 2022 as against 3.36% end September 2021. Net non-performing assets were at 0.78% as against 0.91% end September 2021.

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 September 2022, Company’s CRAR was 23.2% compared to 25.0% end September 2021. The tier I capital in respect of an NBFC-ND-SI, at any point of time, cannot be less than 10%. Company’s Tier I capital was 20.2% end September 2022 compared to 21.8% end September 2021.

Financial Performance H1FY2023

The income from operations increased 30% to Rs 6397.37 crore for H1FY2023, while other income of the company jumped 53% to Rs 318.79 crore. The total income increased 31% to Rs 6716.16 crore for H1FY2023.

Interest expenses increased 40% to Rs 676.09 crore. Operating expenses increased 38% to Rs 3419.51 crore, allowing the operating profits to improve 20% at Rs 2620.56 crore. The cost-to-income ratio was higher at 56.6% in H1FY2023 from 53.2% in H1FY2022.

Depreciation rose 7% to Rs 77.74 crore, while provisions fell -19% to Rs 996.24 crore. Profit before tax surged 77% yoy basis at Rs 1546.58 crore. Effective tax rate eased to 25.5% in H1FY2023 from 25.7% in H1FY2022. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 77% to Rs 1152.55 crore for H1FY2022.

SBI Cards and Payment Services : Results
	2209 (3)	2109 (3)	Var %	2209 (6)	2109 (6)	Var %	2203 (12)	2103 (12)	Var %
Income from operations	3297.08	2576.24	28	6397.37	4938.14	30	10677.27	9296.46	15
Other Income	156.24	119.32	31	318.79	208.26	53	624.25	417.12	50
Total Income	3453.32	2695.56	28	6716.16	5146.40	31	11301.52	9713.58	16
Interest Expenses	367.71	254.13	45	676.09	483.14	40	1027.32	1043.40	-2
Other expenses	1795.38	1343.59	34	3419.51	2478.93	38	5695.83	4523.19	26
Gross profit	1290.23	1097.84	18	2620.56	2184.33	20	4578.37	4146.99	10
Depreciation	38.58	39.80	-3	77.74	72.44	7	148.56	123.26	21
Profit before tax and Provisions	1251.65	1058.04	18	2542.82	2111.89	20	4429.81	4023.73	10
Provisions and write off	545.99	593.91	-8	996.24	1237.47	-19	2257.65	2700.00	-16
Profit before tax	705.66	464.13	52	1546.58	874.42	77	2172.16	1323.73	64
Provision for tax	180.02	119.23	51	394.03	224.92	75	556.02	339.21	64
PAT	525.64	344.90	52	1152.55	649.50	77	1616.14	984.52	64
EPS (Rs)*	22.3	14.6		48.9	27.5		17.1	10.4
Adj BV (Rs)	91.4	71.7		91.4	71.7		79.6	62.9
* Annualised on current equity of Rs 943.34 crore, Face value of Rs 10, Excluding extraordinary items.
Figures in Rs crore
Source: Capitaline Corporate Database

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( Hot Pursuit - 07-Jun-24 13:05 )

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( Hot Pursuit - 29-Jan-24 11:56 )

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SBI Card corrects on profit selling
( Hot Pursuit - 18-Aug-22 12:02 )

SBI Cards & Payment Services to announce Quarterly Result
( Corporate News - 18-Jan-22 11:17 )

SBI Cards & Payment Services to convene AGM
( Corporate News - 04-Aug-21 15:48 )

SBI Cards & Payment Services Ltd soars 1.84%, up for third straight session
( Hot Pursuit - 27-Jun-22 13:05 )

SBI Cards & Payment Services standalone net profit declines 51.77% in the December 2020 quarter
( Results - Announcements 22-Jan-21 08:13 )