SBI Cards and Payment Services Limited

Financial Results for the Quarter and Half Year ended September 30, 2023

SBI Card PAT Grows 15% YoY to ₹603 Cr in Q2 FY24 Vs ₹526 Cr in Q2 FY23

New Delhi, 27 October 2023: 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, at their meeting held on Friday, October 27, 2023.

Performance Highlights Q2 FY24

Total Revenue increased by 22% YoY at ₹ 4,221 Cr in Q2 FY24 v/s ₹ 3,453 Cr in Q2 FY23
PAT increased by 15% YoY at ₹ 603 Cr in Q2 FY24 v/s ₹ 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 ₹ 79,164 Cr in Q2 FY24 v/s ₹ 62,306 Cr in Q2 FY23
Receivables grew by 19% YoY at ₹ 45,078 Cr in Q2 FY24 v/s ₹ 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 ₹ 4,221 Cr in Q2 FY24 v/s ₹ 3,453 Cr in Q2 FY23. This movement was a result of the following key factors:
Interest income increased by 28% at ₹ 1,902 Cr in Q2 FY24 v/s ₹ 1,484 Cr in Q2 FY23
Fees and commission income increased by 23% at ₹ 1,974 Cr in Q2 FY24 v/s ₹ 1,611 Cr in Q2 FY23
Finance costs increased by 64% at ₹ 605 Cr in Q2 FY24 v/s ₹ 368 Cr in Q2 FY23
Total Operating cost increased by 13% at ₹ 2,066 Cr in Q2 FY24 from ₹ 1,834 Cr in Q2 FY23
Earnings before credit costs increased by 24% at ₹ 1,551 Cr in Q2 FY24 v/s ₹ 1,252 Cr in Q2 FY23
Impairment losses & bad debts expenses increased by 36% at ₹ 742 Cr in Q2 FY24 v/s ₹ 546 Cr in Q2 FY23
Profit after tax increased by 15% at ₹ 603 Cr in Q2 FY24 v/s ₹ 526 Cr in Q2 FY23

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

Total income increased by 23% at ₹ 8,268 Cr in H1 FY24 v/s ₹ 6,716 Cr in H1 FY23. This movement was a result of the following key factors:
Interest income increased by 29% at ₹ 3,706 Cr in H1 FY24 v/s ₹ 2,872 Cr in H1 FY23
Fees and commission income increased by 23% at ₹ 3,872 Cr in H1 FY24 v/s ₹ 3,149 Cr in H1 FY23
Finance costs increased by 74% to ₹ 1,176 Cr in H1 FY24 from ₹ 676 Cr in H1 FY23.
Total Operating cost increased by 15% at ₹ 4,025 Cr in H1 FY24 from ₹ 3,497 Cr in H1 FY23
Earnings before credit cost at ₹ 3,066 Cr in H1 FY24 from ₹ 2,543 Cr in H1 FY23.
Impairment losses & bad debts expenses for the period at ₹ 1,460 Cr in H1 FY24 vs ₹ 996 Cr in H1 FY23.
Profit after tax increased by 4% to ₹ 1,196 Cr in H1 FY24 vs ₹ 1,153 Cr in H1 FY23.

Balance Sheet as of September 30, 2023

Total Balance Sheet size as of September 30, 2023, at ₹ 50,388 Cr as against ₹ 45,546 Cr as of March 31, 2023
Total Gross Advances (Credit card receivables) as of September 30, 2023, at ₹ 45,078 Cr, as against ₹ 40,722 Cr as of March 31, 2023
Net worth as of September 30, 2023, at ₹ 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+

Summary Profit and Loss Statement (₹ Cr)

Description
Q2 FY23
Q1 FY24
Q2 FY24
QoQ
YoY
Interest Income
1,484
1,804
1,902
5%
28%
Non-Interest Income
(Fees, commission income & others)
1,813
2,108
2,186
4%
21%
Total Revenue from operations
3,297
3,912
4,087
4%
24%
Total Other Income
156
134
134
0%
-14%
Total Income
3,453
4,046
4,221
4%
22%
Finance costs
368
571
605
6%
64%
Operating Costs
1,834
1,960
2,066
5%
13%
Earnings before credit costs
1,252
1,515
1,551
2%
24%
Impairment losses & bad debts
546
719
742
3%
36%
Profit before tax
706
797
809
2%
15%
Profit after tax
526
593
603
2%
15%

Summary Balance Sheet (₹ Cr)

Description
Mar’23
Sep’23
Assets

Advances (Net)
39,361
43,556
Cash & Bank Balances
1,354
1,478
Investments
2,140
2,536
Other Financial Assets & Trade Receivables
559
674
Total non-financial Assets
2,132
2,144
Total Assets
45,546
50,388

Liabilities and Equity

Total Equity
9,830
11,058
Borrowings, Subordinated Liabilities & Debt Securities
31,110
34,083
Other financial liabilities
3,091
3,621
Total non-financial liabilities
1,514
1,626
Total liabilities and equity
45,546
50,388