SBI Card Registers 30% YoY Revenue Growth In Q3 FY24; Revenue At Rs 4,742 Cr; PAT At Rs 549 Cr

The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Q3 FY24 and 9 months ended December 31, 2023, at their meeting.

Performance Highlights Q3 FY24

Total Revenue increased by 30% YoY at Rs 4,742 Cr in Q3 FY24 v/s Rs 3,656 Cr in Q3 FY23

PAT increased by 8% YoY at Rs 549 Cr in Q3 FY24 v/s Rs 509 Cr in Q3 FY23

ROAA at 4.1% in Q3 FY24 v/s 4.8% in Q3 FY23

ROAE at 19.2% in Q3 FY24 v/s 22.0% in Q3 FY23

Capital Adequacy Ratio at 18.4%; Tier 1 at 16.3%

Business Highlights

New accounts volume down by 33% at 1,096K in Q3 FY24 v/s 1,634K in Q3 FY23

Cards-in-force grew by 16% at 1.85 Cr as of Q3 FY24 v/s 1.59 Cr as of Q3 FY23

Spends grew by 41% at Rs 96,860 Cr in Q3 FY24 v/s Rs 68,835 Cr in Q3 FY23

Receivables grew by 26% at Rs 48,850 Cr in Q3 FY24 v/s Rs 38,626 Cr in Q3 FY23

Market share for FY24 Card-in-force 18.9% (FY23: 19.7%), Spends 18.3% (FY23: 18.2%) #2 for both, Cards-in-force and spends, in industry

Profit & Loss Account for the Quarter ended December 31, 2023

Total income increased by 30% at Rs 4,742 Cr in Q3 FY24 v/s Rs 3,656 Cr in Q3 FY23. This movement was a result of the following key factors:

Interest income increased by 29% at Rs 2,082 Cr in Q3 FY24 v/s Rs 1,609 Cr in Q3 FY23

Non-Interest Income (Fees, Commission & others) increased by 34% at Rs 2,539 Cr in Q3 FY24 v/s Rs 1,898 Cr in Q3 FY23

Finance costs increased by 50% at Rs 695 Cr in Q3 FY24 v/s Rs 464 Cr in Q3 FY23

Total Operating cost increased by 23% at Rs 2,426 Cr in Q3 FY24 from Rs 1,974 Cr in Q3 FY23

Earnings before credit costs increased by 33% at Rs 1,620 Cr in Q3 FY24 v/s Rs 1,217 Cr in Q3 FY23

Impairment on financial instruments increased by 66% at Rs 883 Cr in Q3 FY24 v/s Rs 533 Cr in Q3 FY23

Profit after tax increased by 8% at Rs 549 Cr in Q3 FY24 v/s Rs 509 Cr in Q3 FY23

Profit & Loss Account for the 9 months ended December 31, 2023

Total income increased by 25% at Rs 13,009 Cr in 9M FY24 v/s Rs 10,372 Cr in 9M FY23. This movement was a result of the following key factors:

Interest income increased by 29% at Rs 5,788 Cr in 9M FY24 v/s Rs 4,481 Cr in 9M FY23

Non-Interest Income (Fees, Commission & others) increased by 26% at Rs 6,832 Cr in 9M FY24 v/s Rs 5,424 Cr in 9M FY23

Finance costs increased by 64% to Rs 1,871 Cr in 9M FY24 v/s Rs 1,140 Cr in 9M FY23

Total Operating cost increased by 18% at Rs 6,451 Cr in 9M FY24 v/s Rs 5,472 Cr in 9M FY23

Earnings before credit cost increased by 25% at Rs 4,687 Cr in 9M FY24 v/s Rs 3,760 Cr in 9M FY23  

Impairment on financial instruments increased by 53% at Rs 2,343 Cr in 9M FY24 v/s Rs 1,529 Cr in 9M FY23

Profit after tax increased by 5% to Rs 1,745 Cr in 9M FY24 vs Rs 1,662 Cr in 9M FY23

Balance Sheet as of December 31, 2023

Total Balance Sheet size as of December 31, 2023, at Rs 55,576 Cr as against Rs 45,546 Cr as of March 31, 2023

Total Gross Advances (Credit card receivables) as of December 31, 2023, at Rs 48,850 Cr, as against Rs 40,722 Cr as of March 31, 2023

Net worth as of December 31, 2023, at Rs 11,724 Cr as against Rs 9,902 Cr as of March 31, 2023

Asset Quality

The Gross non-performing assets were at 2.64% of gross advances as of December 31, 2023, as against 2.35% as of March 31, 2023. Net non-performing assets were at 0.96% as of December 31, 2023, as against 0.87% as of March 31, 2023.

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, 2023, Company’s CRAR was 18.4% compared to 23.1% as of March 31, 2023.

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 16.3% as of December 31, 2023, compared to 20.4% as of March 31, 2023.

Rating

CRISIL Long Term         -             AAA/Stable

CRISIL Short Term        -             A1+

ICRA Long Term           -             AAA/Stable

ICRA Short Term          -             A1+