SBI Card Q3 FY22 PAT Grows 84% To Rs 386 Cr Vs Rs 210 Cr For Q3 FY21

* Financial Results for the Quarter and 9 months Ended December 31, 2021 

* Cards in force cross the 13 Mn+ milestone 

* New Accounts cross 1 Mn+ milestone in Q3 FY22  

The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter and 9 months ended December 31, 2021, at their meeting held on Monday, January 24, 2022. 

Performance Highlights Q3 FY22  

Total Revenue increases 24% YoY to Rs 3,140 Cr  

Profit after tax increases 84% YoY to Rs 386 Cr  

ROAA at 5.0% for Q3 FY22 vs. 3.3% for Q3 FY21 

ROAE at 21.2% for Q3 FY22 vs. 13.8% for Q3 FY21 

Capital Adequacy Ratio at 24.2%; Tier 1 at 21.3%  

Key Metrics 

New accounts volume at 1,008k for Q3 FY22 up by 10% as compared to 918k for Q3 FY21. 

Card-in-force grew by 15% to 1.32 Cr as of Q3 FY22 vs 1.15 Cr as of Q3 FY21. 

Total spends grew by 47% to Rs55,397 Cr in Q3 FY22 vs Rs 37,797 Cr in Q3 FY21. 

Market share 9M FY22 (available till Nov’21) – Card-in-force at 19.2% (FY21: 19.1%); Spends at 19.0% (FY21: 19.4%); Transactions at 20.0% (FY21: 19.7%).  

Receivables grew by 13% to Rs 29,129 Cr as of Q3 FY22 vs Rs 25,749 Cr as of Q3 FY21. 

GNPA at 2.40% as of Q3 FY22 vs 4.51%* as of Q3 FY21; NNPA at 0.83% as of Q3 FY22 vs 1.60%* as of Q3 FY21. 

Total RBI RE book including RBI RE 2.0 assets at 2% in Q3 FY22 vs 9% in Q3 FY21. 

Profit & Loss Account for the Quarter ended December 31, 2021  

Total revenue increased by Rs 600 Cr, or 24% to Rs 3,140 Cr for Q3 FY22 vs Rs 2,540 Cr for Q3 FY21, increase is primarily due to higher Income from fees and services in Q3 FY22. 

Finance costs increased by Rs 16 Cr, or 6% to Rs 277 Cr for Q3 FY22 from Rs 261 Cr for Q3 FY21. 

Total Operating cost increased by Rs 371 Cr, or 28% to Rs 1,719 Cr for Q3 FY22 from Rs 1,348 Cr for Q3 FY21, increase is due to higher business volumes & festive campaigns in Q3 FY22. 

Earnings before credit costs increased by Rs 213 Cr, or 23% to Rs 1,144 Cr for Q3 FY22 vs Rs 931 Cr for Q3 FY21. 

Total Management overlay provision at Rs 162 Cr as on Dec’21. Impairment losses & bad debts expenses for Q3 FY22 at Rs 625 Cr vs Rs 648 Cr for Q3 FY21. 

Profit before tax increased by Rs 236 Cr, or 83% to Rs 519 Cr for Q3 FY22 vs Rs 283 Cr for Q3 FY21 

Profit after tax increased by Rs176 Cr, or 84% to Rs 386 Cr for Q3 FY22 vs Rs 210 Cr for Q3 FY21  

Profit & Loss Account for the 9 months ended December 31, 2021  

For the 9 months ended December 31, 2021: 

Total revenue increased by Rs 1,040 Cr, or 14% to Rs 8,285 Cr for 9M FY22 vs Rs 7,245 Cr for 9M FY21. 

Finance costs decreased by Rs 40 Cr, or 5% to Rs 760 Cr for 9M FY22 from Rs 800 Cr for 9M FY21. 

Total Operating cost at Rs 4,268 Cr for 9M FY22 from Rs 3,361 Cr for 9M FY21, increase is primarily due to higher business volumes. 

Earnings before credit costs increased by Rs 173 Cr, or 6% to Rs 3,258 Cr for 9M FY22 from Rs 3,085 Cr for 9M FY21. 

Impairment losses & bad debts expenses for the period at Rs 1,865 Cr for 9M FY22 vs Rs 1,995 Cr for 9M FY21. 

Profit before tax increased by Rs 304 Cr, or 28% to Rs1,393 Cr for 9M FY22 vs Rs 1,089 Cr for 9M FY21.  

Profit after tax increased by Rs 226 Cr, or 28% to Rs 1,035 Cr for 9M FY22 vs Rs 809 Cr for 9M FY21. 

Balance Sheet as of December 31, 2021 

Total Balance Sheet size as of December 31, 2021 was Rs 32,105 Cr as against Rs 27,006 Cr as of March 31, 2021. 

Total Gross Advances (Credit card receivables) as of December 31, 2021 were Rs29,129 Cr, as against Rs 25,114 Cr as of March 31, 2021.  

Net worth as of December 31, 2021 was  7,468 Cr as against ? 6,374 Cr as of March 31, 2021. 

Asset Quality 

The Gross non-performing assets were at 2.40% of gross advances as on December 31, 2021 as against 4.51%* as on December 31, 2020. Net non-performing assets were at 0.83% as against 1.60%* as on December 31, 2020. 

Capital Adequacy 

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 31, 2021, Company’s CRAR was 24.2% compared to 23.7% as of December 31, 2020. 

The tier I capital in respect of an NBFC-ND-SI, at any point of time, is required to be not be less than 10%. Company’s Tier I capital was 21.3% as of December 31, 2021 compared to 19.8% as of December 31, 2020. 

Rating 

CRISIL Long Term            -  AAA/Stable 

CRISIL Short Term           -  A1+ 

ICRA Long Term   -           AAA/Stable 

ICRA Short Term -           A1+