SBI Cards And Payment Services Limited Financial Results For The Quarter Ended June 30, 2024

* Revenue from Operations at Rs 4,483 Cr Up 11% YoY; PAT at Rs 594 Cr

* The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Quarter ended June 30, 2024, at their meeting.

Performance Highlights Q1 FY25

Total Revenue increased by 11% YoY at Rs 4,483 Cr in Q1 FY25 v/s Rs 4,046 Cr in Q1 FY24

PAT at Rs 594 Cr in Q1 FY25 v/s Rs 593 Cr in Q1 FY24

ROAA at 4.1% in Q1 FY25 v/s 5.0% in Q1 FY24

ROAE at 19.1% in Q1 FY25 v/s 23.3% in Q1 FY24

Capital Adequacy Ratio at 20.6%; Tier 1 at 16.8%

Business Highlights

Cards-in-force grew by 11% YoY at 1.92 Cr as of Q1 FY25 v/s 1.73 Cr as of Q1 FY24

New accounts volume at 904K in Q1 FY25 v/s 1,097K new accounts in Q1 FY24

Spends grew by 4% YoY at Rs 77,129 Cr in Q1 FY25 v/s Rs 73,913 Cr in Q1 FY24

Receivables grew by 22% YoY at Rs 52,705 Cr in Q1 FY25 v/s Rs 43,271 Cr in Q1 FY24

Market share for Q1 FY25 Card-in-force is at 18.5% (Q1 FY24: 19.6%), Spends is at 15.9% (Q1 FY24: 17.8%), #2 for Cards-in-force and #3 for spends, in industry

Profit & Loss Account for the Quarter ended June 30, 2024

Total income increased by 11% at Rs 4,483 Cr in Q1 FY25 v/s Rs 4,046 Cr in Q1 FY24. This movement was a result of the following key factors:

Interest income increased by 24% at Rs 2,243 Cr in Q1 FY25 v/s Rs 1,804 Cr in Q1 FY24

Fees and commission income was flat at Rs  2,115 Cr in Q1 FY25 v/s Rs 2,108 Cr in Q1 FY24

Finance costs increased by 34% at Rs 767 Cr in Q1 FY25 v/s Rs 571 Cr in Q1 FY24 due to higher receivables.

Total Operating cost decreased by 7% at Rs 1,816 Cr in Q1 FY25 from Rs 1,960 Cr in Q1 FY24

Earnings before credit costs increased by 25% at Rs 1,900 Cr in Q1 FY25 v/s Rs 1,515 Cr in Q1 FY24

Impairment losses & bad debts expenses increased by 53% at Rs 1,101 Cr in Q1 FY25 v/s Rs 719 Cr in Q1 FY24

Profit after tax was flat at Rs 594 Cr in Q1 FY25 v/s Rs 593 Cr in Q1 FY24

Balance Sheet as of June 30, 2024

Total Balance Sheet size as of June 30, 2024, was Rs  59,513 Cr as against Rs 58,171 Cr as of March 31, 2024

Total Advances (Net of provisions) as of June 30, 2024, were Rs 50,807 Cr, as against Rs 49,079 Cr as of March 31, 2024

Net worth as of June 30, 2024, was Rs 12,752 Cr as against Rs 12,156 Cr as of March 31, 2024

Asset Quality

The Gross non-performing assets were at 3.06% of gross advances as of June 30, 2024, as against 2.41% as of June 30, 2023. Net non-performing assets were at 1.11% as of June 30, 2024, as against 0.89% as of June 30, 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 June 30, 2024, Company’s CRAR was 20.6% compared to 22.9% as of June 30, 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 16.8% as of June 30, 2024, compared to 20.3% as of June 30, 2023.

Rating

CRISIL Long Term         -             AAA/Stable

CRISIL Short Term        -             A1+

ICRA Long Term           -             AAA/Stable

ICRA Short Term          -             A1+