New Delhi: 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:
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- 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:
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- 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 |
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