Saturday, October 28, 2023

SBI Card PAT Grows 15% YoY To Rs603 Cr In Q2 FY24 Vs Rs526 Cr In Q2 FY23


The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter and half year ended September 30, 2023. 

Performance Highlights Q2 FY24 

Total Revenue increased by 22% YoY at Rs 4,221 Cr in Q2 FY24 v/s Rs 3,453 Cr in Q2 FY23 

PAT increased by 15% YoY at Rs 603 Cr in Q2 FY24 v/s Rs 526 Cr in Q2 FY23 

ROAA at 4.9% in Q2 FY24 v/s 5.4% in Q2 FY23 

ROAE at 22.3% in Q2 FY24 v/s 24.1% in Q2 FY23 

Capital Adequacy Ratio at 23.3%; Tier 1 at 20.8% 

Business Highlights 

New accounts volume down by 12% at 1,142K in Q2 FY24 v/s 1295K in Q2 FY23 

Cards-in-force grew by 21% YoY at 1.79 Cr as of Q2 FY24 v/s 1.48 Cr as of Q2 FY23 

Spends grew by 27% YoY at Rs 79,164 Cr in Q2 FY24 v/s Rs 62,306 Cr in Q2 FY23 

Receivables grew by 19% YoY at Rs 45,078 Cr in Q2 FY24 v/s Rs 37,730 Cr in Q2 FY23 

Market share for Card-in-force 19.2% (Q2 FY23: 19.1%), Spends 18.0% (Q2 FY23: 17.8%). For Q2 FY24, #2 for both, Cards-in-force and spends, in the industry. 

Profit & Loss Account for the Quarter ended September 30, 2023 

Total income increased by 22% at Rs 4,221 Cr in Q2 FY24 v/s Rs 3,453 Cr in Q2 FY23. This movement was a result of the following key factors: 

Interest income increased by 28% at Rs 1,902 Cr in Q2 FY24 v/s Rs 1,484 Cr in Q2 FY23 

Fees and commission income increased by 23% at Rs 1,974 Cr in Q2 FY24 v/s Rs 1,611 Cr in Q2 FY23 

Finance costs increased by 64% at Rs 605 Cr in Q2 FY24 v/s Rs 368 Cr in Q2 FY23 

Total Operating cost increased by 13% at Rs 2,066 Cr in Q2 FY24 from Rs 1,834 Cr in Q2 FY23  

Earnings before credit costs increased by 24% at Rs 1,551 Cr in Q2 FY24 v/s Rs 1,252 Cr in Q2 FY23 

Impairment losses & bad debts expenses increased by 36% at Rs 742 Cr in Q2 FY24 v/s Rs 546 Cr in Q2 FY23 

Profit after tax increased by 15% at Rs 603 Cr in Q2 FY24 v/s Rs 526 Cr in Q2 FY23  

Profit & Loss Account for the half year ended September 30, 2022  

Total income increased by 23% at Rs 8,268 Cr in H1 FY24 v/s Rs 6,716 Cr in H1 FY23. This movement was a result of the following key factors: 

Interest income increased by 29% at Rs 3,706 Cr in H1 FY24 v/s Rs 2,872 Cr in H1 FY23 

Fees and commission income increased by 23% at Rs 3,872 Cr in H1 FY24 v/s Rs 3,149 Cr in H1 FY23 

Finance costs increased by 74% to Rs 1,176 Cr in H1 FY24 from Rs 676 Cr in H1 FY23.  

Total Operating cost increased by 15% at Rs 4,025 Cr in H1 FY24 from Rs 3,497 Cr in H1 FY23 

Earnings before credit cost at Rs 3,066 Cr in H1 FY24 from Rs 2,543 Cr in H1 FY23.  

Impairment losses & bad debts expenses for the period at Rs 1,460 Cr in H1 FY24 vs Rs 996 Cr in H1 FY23.  

Profit after tax increased by 4% to Rs 1,196 Cr in H1 FY24 vs Rs 1,153 Cr in H1 FY23. 

Balance Sheet as of September 30, 2023 

Total Balance Sheet size as of September 30, 2023, at Rs 50,388 Cr as against Rs 45,546 Cr as of March 31, 2023 

Total Gross Advances (Credit card receivables) as of September 30, 2023, at Rs 45,078 Cr, as against Rs 40,722 Cr as of March 31, 2023 

Net worth as of September 30, 2023, at Rs 11,130 Cr as against ? 9,902 Cr as of March 31, 2023 

Asset Quality 

The Gross non-performing assets were at 2.43% of gross advances as of September 30, 2023, as against 2.14% as of September 30, 2022. Net non-performing assets were at 0.89% as of September 30, 2023, as against 0.78% as of September 30, 2022.  

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 September 30, 2023, Company’s CRAR was 23.3% compared to 23.2% as of September 30, 2022.  

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 20.8% as of September 30, 2023, compared to 20.2% as of September 30, 2022.  

Rating 

CRISIL Long Term         -             AAA/Stable 

CRISIL Short Term        -             A1+ 

ICRA Long Term           -             AAA/Stable 

ICRA Short Term          -             A1+ 

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