SBI Card

New Delhi, 31stJuly 2023 The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Quarter ended June 30, 2023, at their meeting held on Friday, July 28, 2023.

Performance Highlights Q1 FY24

  • Total Revenue increasedby 24% YoY at₹4,046 Crin Q1 FY24v/s ₹3,263 Cr in Q1FY23
  • PAT decreased by 5% YoY at ₹593 Cr in Q1 FY24 v/s ₹627 Cr in Q1FY23
  • ROAA at 5.1% in Q1 FY24 v/s 7.0% in Q1FY23
  • ROAE at 23.3% in Q1 FY24 v/s 30.8% in Q1FY23
  • Capital Adequacy Ratio at 22.9%; Tier 1 at 20.3%

Business Highlights

  • New accounts volume at 1,097K in Q1 FY24 up by 22% v/s 902K new accounts in Q1FY23
  • Card-in-force grew by 21% YoYat 1.73 Cr as of Q1FY24 v/s 1.43 Cr as of Q1FY23
  • Spends grew by 24% YoY at ₹73,913Cr inQ1FY24v/s ₹59,671 Cr inQ1FY23
  • Receivables grew by 30% YoY at₹43,271 Cr inQ1FY24 v/s ₹33,215 Cr inQ1FY23
  • Market share for Q1 FY24 Card-in-force is at 19.6% (Q1 FY23: 18.2%), Spends is at 17.8% (Q1 FY23: 18.2%); #2 for both, Cards-in-force and spends, in industry.

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

  • Total income increased by 24% at₹4,046 Cr inQ1FY24 v/s ₹3,263 Cr This movement was a result of the following key factors:
    • Interest income increased by 30% at₹1,804 Cr inQ1FY24 v/s ₹1,387 Cr inQ1FY23
    • Fees and commission income increased by 23%at ₹1,898 Cr inQ1FY24 v/s ₹ 1,538 Cr inQ1FY23
  • Finance costs increased by 85% at₹571 Cr inQ1FY24v/s₹308 Cr inQ1FY23
  • Total Operating cost increased by 18% at ₹1,960 Cr inQ1FY24from ₹1,663 Cr inQ1FY23
  • Earnings before credit costs increased by 17% at ₹1,515 Cr inQ1FY24 v/s ₹1,291 Cr inQ1FY23
  • Impairment losses & bad debts expenses increased by 60% at ₹719 Cr inQ1FY24 v/s₹450Cr inQ1FY23
  • Profit after tax decreased by5% at ₹593 Cr inQ1FY24 v/s ₹627 Cr inQ1FY23

Balance Sheet as of June 30, 2023

Total Balance Sheet size as of June 30, 2023, was ₹47,916 Cr as against ₹45,546 Cr as of March 31, 2023

  • Total Gross Advances (Credit card receivables) as of June 30, 2023, were ₹43,271 Cr, as against ₹40,722 Cr as of March 31, 2023
  • Net worth as of June 30, 2023, was ₹10,496 Cr as against ₹9,902 Cr as of March 31, 2023

Asset Quality

The Gross non-performing assets were at 2.41% of gross advances as ofJune 30, 2023, as against 2.24% as of June 30, 2022. Net non-performing assets were at 0.89% as ofJune 30, 2023,as against 0.79% as ofJune 30, 2022.

Capital Adequacy

As per the capital adequacy norms issued by the RBI, the 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, 2023, Company’s CRAR was 22.9% compared to 24.7% as of June 30, 2022.

The Tier I capital in respect of an NBFC-ND-SI, at any point of time, can’t be less than 10%. The company’s Tier I capital was 20.3% as of June 30, 2023, compared to 21.5% as of June 30, 2022.

Rating

CRISIL Long Term         –              AAA/Stable

CRISIL Short Term        –              A1+

ICRA Long Term            –              AAA/Stable

ICRA Short Term           –              A1+

Summary Profit and Loss Statement (₹Cr)

DescriptionQ1FY23 Q4FY23Q1FY24QoQYoY
Interest Income1,3871,6721,8048%30%
Non-Interest Income (Fees, commission income & others)1,7132,0902,1081%23%
Total Revenue from operations3,1003,7623,9124%26%
Total Other Income163154134-13%-17%
Total Income3,2633,9174,0463%24%
Finance costs30850757113%85%
Operating Costs1,6631,9801,960-1%18%
Earnings before credit costs1,2911,4291,5156%17%
Impairment losses & bad debts45063071914%60%
Profit before tax8418007970%-5%
Profit after tax627596593-1%-5%

Summary Balance Sheet (₹ Cr)

DescriptionMar’23Jun’23
Assets  
Advances (Net) 39,361 41,813
Cash & Bank Balances 1,354 1,228
Investments 2,140 2,053
Other Financial Assets & Trade Receivables 559 696
Total non-financial Assets 2,132 2,126
Total Assets 45,546 47,916
   
Liabilities and Equity  
Total Equity 9,830 10,424
Borrowings, Subordinated Liabilities & Debt Securities 31,110 32,957
Other financial liabilities 3,091 2,986
Total non-financial liabilities 1,514 1,549
Total liabilities and equity 45,546 47,916