SBI Cards And Payment Services Ltd Announce Financial Results For Quarter Ended September 30, 2024

Total Revenue Increases to Rs 4,556 Cr Up 8% YoY; PAT at Rs 404 Cr

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

Performance Highlights Q2 FY25

Total Revenue increased by 8% YoY at Rs 4,556 Cr in Q2 FY25 v/s Rs 4,221 Cr in Q2 FY24

PAT at Rs 404 Cr in Q2 FY25 v/s Rs 603 Cr in Q2 FY24

ROAA at 2.7% in Q2 FY25 v/s 4.9% in Q2 FY24

ROAE at 12.5% in Q2 FY25 v/s 22.3% in Q2 FY24

Capital Adequacy Ratio at 22.1%; Tier 1 at 16.3%

Business Highlights

Cards-in-force grew by 10% YoY at 1.96 Cr as of Q2 FY25 v/s 1.79 Cr as of Q2 FY24

New accounts volume at 904K in Q2 FY25 v/s 1,142K new accounts in Q2 FY24

Spends grew by 3% YoY at Rs 81,893 Cr in Q2 FY25 v/s Rs 79,164 Cr in Q2 FY24

Receivables grew by 23% YoY at Rs 55,601 Cr in Q2 FY25 v/s Rs 45,078 Cr in Q2 FY24

Market share for Q2 FY25 Card-in-force is at 18.5% (Q2 FY24: 19.2%), Spends is at 15.7% (Q2 FY24: 18.0%), #2 for Cards-in-force and #3 for spends, in industry

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

Total income increased by 8% at Rs 4,556 Cr in Q2 FY25 v/s Rs 4,221 Cr in Q2 FY24. This movement was a result of the following key factors:

Interest income increased by 20% at Rs 2,290 Cr in Q2 FY25 v/s Rs 1,902 Cr in Q2 FY24

Fees and commission income declined 2% at Rs 2,131 Cr in Q2 FY25 v/s Rs 2,186 Cr in Q2 FY24

Finance costs increased by 30% at Rs 788 Cr in Q2 FY25 v/s Rs 605 Cr in Q2 FY24 due to higher receivables.

Total Operating cost decreased by 3% at Rs 2,011 Cr in Q2 FY25 from Rs 2,066 Cr in Q2 FY24

Earnings before credit costs increased by 13% at Rs 1,757 Cr in Q2 FY25 v/s Rs 1,551 Cr in Q2 FY24

Impairment losses & bad debts expenses increased by 63% at Rs 1,212 Cr in Q2 FY25 v/s Rs 742 Cr in Q2 FY24

Profit after tax decreased by 33% at Rs 404 Cr in Q2 FY25 v/s Rs 603 Cr in Q2 FY24

Balance Sheet as of September 30, 2024

Total Balance Sheet size as of September 30, 2024, was Rs 61,872 Cr as against Rs 58,171 Cr as of March 31, 2024

Total Advances (Net of provisions) as of September 30, 2024, were Rs 53,596 Cr, as against Rs 49,079 Cr as of March 31, 2024

Net worth as of September 30, 2024, was Rs 13,161 Cr as against Rs 12,156 Cr as of March 31, 2024

Asset Quality

The Gross non-performing assets were at 3.27% of gross advances as of September 30, 2024, as against 2.43% as of September 30, 2023. Net non-performing assets were at 1.19% as of September 30, 2024, as against 0.89% as of September 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 September 30, 2024, Company’s CRAR was 22.1% compared to 23.3% as of September 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 16.3% as of September 30, 2024, compared to 20.8% as of September 30, 2023.

Rating

CRISIL Long Term     -           AAA/Stable

CRISIL Short Term     -           A1+

ICRA Long Term        -           AAA/Stable

ICRA Short Term        -           A1+