Capitaline

Results 25-Jan-23

Analysis

SBI Cards & Payment Services

High interest expenses and low fee income impacts bottomline

SBI Cards and Payment Services has posted 32% increase in the net profit to Rs 509.46 crore in the quarter ended December 2022 (Q3FY2023). The income from operations increased 21% to Rs 3507.12 crore for Q3FY2023, while other income of the company declined 40% to Rs 149.03 crore. The total income increased 16% to Rs 3656.15 crore for Q3FY2023. Interest expenses galloped 68% to Rs 464.28 crore. Operating expenses increased 15% to Rs 1933.47 crore, allowing the operating profits to improve 7% at Rs 1258.40 crore. The cost-to-income ratio was higher at 60.6% in Q3FY2023 from 58.7% in Q3FY2022. Depreciation increased 11% to Rs 41.03 crore, while provisions fell 15% to Rs 533.04 crore.

Profit before tax surged 32% yoy basis at Rs 684.33 crore. Effective tax rate was steady at 25.6% in Q3FY2023 from 25.6% in Q3FY2022. Net Profit of the company improved 32% to Rs 509.46 crore for Q3FY2022.

Book value of the company stood at Rs 100.0 per share, while the adjusted book value net of NNPA stood at Rs 96.8 end December 2022.

Business Highlights Q2FY2023

New accounts volume at 1634 K accounts for Q3FY23 up by 62% from 1008 K accounts for Q3FY22

Card-in-force grew by 21% to 1.59 crore as of Q3FY23 from 1.32 crore as of Q3FY22

Spends grew by 24% at Rs 68835 crore for Q3FY23 from Rs 55397 crore for Q3FY22

Market share 9M FY23 (available till November 2022) – Card-in-force at 19.3% (FY22: 18.7%). Spends at

18.0% (FY22: 19.2%)

Receivables grew by 33% to Rs 38626 crore as of Q3FY23 from Rs 29129 crore as of Q3FY22

GNPA declined 2.22% as of Q3FY23 from 2.40% as of Q3FY22. NNPA at 0.80% as of Q3FY23 against 0.83% as of Q3FY22

Total Balance Sheet size was Rs 42987 crore end December 2022 as against Rs 34648 crore end March 2022.

Net worth was Rs 9530 crore end December 2022 as against Rs 7824 crore as of March 2022.

The Gross non-performing assets were at 2.22% of gross advances end December 2022 as against

2.40% end December 2021. Net non-performing assets were at 0.80% end December 2022

as against 0.83% end December 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.

As of December 2022, Company’s CRAR was 23.3% compared to 24.2% end December 2021. 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 20.6% end December 2022 compared to 21.3% end December 2021.

Financial Performance 9MFY2023

The income from operations increased 27% to Rs 9904.50 crore for 9MFY2023, while other income of the company rose 2% to Rs 467.83 crore. The total income increased 25% to Rs 10372.33 crore for 9MFY2023. Interest expenses increased 50% to Rs 1140.38 crore. Operating expenses increased 29% to Rs 5353.00 crore, allowing the operating profits to improve 15% at Rs 3878.95 crore.

The cost-to-income ratio increased to 58.0% in 9MFY2023 from 55.3% in 9MFY2022. Depreciation rose 9% to Rs 118.75 crore, while provisions fell 18% to Rs 1529.28 crore.

Profit before tax surged 60% yoy basis at Rs 2230.91 crore. Effective tax rate eased to 25.5% in 9MFY2023 from 25.7% in 9MFY2022. Net Profit of the company improved 61% to Rs 1662.03 crore for 9MFY2022.

SBI Cards and Payment Services : Results
	2212 (3)	2112 (3)	Var %	2212 (9)	2112 (9)	Var %	2203 (12)	2103 (12)	Var %
Income from operations	3507.12	2889.46	21	9904.50	7826.96	27	10677.27	9296.46	15
Other Income	149.03	250.20	-40	467.83	458.46	2	624.25	417.12	50
Total Income	3656.15	3139.66	16	10372.33	8285.42	25	11301.52	9713.58	16
Interest Expenses	464.28	276.81	68	1140.38	759.95	50	1027.32	1043.40	-2
Other expenses	1933.47	1681.92	15	5353.00	4160.20	29	5697.64	4584.64	24
Gross profit	1258.40	1180.93	7	3878.95	3365.27	15	4576.56	4085.54	12
Depreciation	41.03	36.94	11	118.75	109.38	9	148.56	123.26	21
Profit before tax and Provisions	1217.37	1143.99	6	3760.19	3255.89	15	4428.00	3962.28	12
Provisions and write off	533.04	625.48	-15	1529.28	1862.95	-18	2255.84	2638.55	-15
Profit before tax	684.33	518.51	32	2230.91	1392.94	60	2172.16	1323.73	64
Provision for tax	174.87	132.74	32	568.88	357.66	59	556.02	339.21	64
PAT	509.46	385.77	32	1662.03	1035.28	61	1616.14	984.52	64
EPS (Rs)*	21.5	16.3		23.4	14.6		17.1	10.4
Adj BV (Rs)	96.5	75.8		96.5	75.8		79.6	62.9
* Annualised on current equity of Rs 945.7 crore, Face value of Rs 10, Excluding extraordinary items.
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

SBI Cards & Payment Services Ltd up for third consecutive session
( Hot Pursuit - 07-Jun-24 13:05 )

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

SBI Cards & Payment Services
( Analyst Meet / AGM - Conference Call 29-Oct-23 19:58 )

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

Board of SBI Cards approves implementation of ESOP 2023
( Corporate News - 06-Jun-23 16:11 )

SBI Cards & Payment Services
( Results - Analysis 29-Apr-23 08:24 )

SBI Cards & Payment Services standalone net profit rises 32.06% in the December 2022 quarter
( Results - Announcements 24-Jan-23 15:25 )

SBI Cards allots 1.22 lakh equity shares under ESOP
( Corporate News - 22-May-23 09:28 )

SBI Cards & Payment Services
( Analyst Meet / AGM - Conference Call 29-Apr-23 15:48 )

SBI Cards & Payment Services Ltd down for fifth straight session
( Hot Pursuit - 25-Sep-23 13:35 )

SBI Cards & Payment Services standalone net profit rises 52.40% in the September 2022 quarter
( Results - Announcements 28-Oct-22 08:12 )