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

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 held on Tuesday, October 29, 2024.

Performance Highlights Q2 FY25

· Total Revenue increased by 8% YoY at ₹ 4,556 Cr in Q2 FY25 v/s ₹ 4,221 Cr in Q2 FY24
· PAT at ₹ 404 Cr in Q2 FY25 v/s ₹ 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 ₹ 81,893 Cr in Q2 FY25 v/s ₹ 79,164 Cr in Q2 FY24
· Receivables grew by 23% YoY at ₹ 55,601 Cr in Q2 FY25 v/s ₹ 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 ₹ 4,556 Cr in Q2 FY25 v/s ₹ 4,221 Cr in Q2 FY24. This movement was a result of the following key factors:

o Interest income increased by 20% at ₹ 2,290 Cr in Q2 FY25 v/s ₹ 1,902 Cr in Q2 FY24
o Fees and commission income declined 2% at ₹ 2,131 Cr in Q2 FY25 v/s ₹ 2,186 Cr in Q2 FY24
· Finance costs increased by 30% at ₹ 788 Cr in Q2 FY25 v/s ₹ 605 Cr in Q2 FY24 due to higher receivables.
· Total Operating cost decreased by 3% at ₹ 2,011 Cr in Q2 FY25 from ₹ 2,066 Cr in Q2 FY24
· Earnings before credit costs increased by 13% at ₹ 1,757 Cr in Q2 FY25 v/s ₹ 1,551 Cr in Q2 FY24
· Impairment losses & bad debts expenses increased by 63% at ₹ 1,212 Cr in Q2 FY25 v/s ₹ 742 Cr in Q2 FY24
· Profit after tax decreased by 33% at ₹ 404 Cr in Q2 FY25 v/s ₹ 603 Cr in Q2 FY24

Balance Sheet as of September 30, 2024

· Total Balance Sheet size as of September 30, 2024, was ₹ 61,872 Cr as against ₹ 58,171 Cr as of March 31, 2024
· Total Advances (Net of provisions) as of September 30, 2024, were ₹ 53,596 Cr, as against ₹ 49,079 Cr as of March 31, 2024
· Net worth as of September 30, 2024, was ₹ 13,161 Cr as against ₹ 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+

Summary Profit and Loss Statement (₹ Cr)

Description Q2 FY24 Q1 FY25 Q2 FY25 QoQ YoY
Interest Income 1,902 2,243 2,290 2% 20%
Non-Interest Income
(Fees, commission income & others) 2,186 2,115 2,131 1% -2%
Total Revenue from operations 4,087 4,359 4,421 1% 8%
Total Other Income 134 124 135 9% 1%
Total Income 4,221 4,483 4,556 2% 8%
Finance costs 605 767 788 3% 30%
Operating Costs 2,066 1,816 2,011 11% -3%
Earnings before credit costs 1,551 1,900 1,757 -8% 13%
Impairment losses & bad debts 742 1,101 1,212 10% 63%
Profit before tax 809 799 545 -32% -33%
Profit after tax 603 594 404 -32% -33%

Summary Balance Sheet (₹ Cr)

Description Mar’24 Sep’24
Assets
Loans (Net of provisions) 49,079 53,596
Cash & Bank Balances 2,730 1,752
Investments 3,519 3,658
Other Financial Assets & Trade Receivables 573 604
Total non-financial Assets 2,270 2,262
Total Assets 58,171 61,872

Liabilities and Equity

Total Equity 12,084 13,090
Borrowings, Subordinated Liabilities & Debt Securities 39,891 43,218
Other financial liabilities 4,474 3,958
Total non-financial liabilities 1,722 1,607
Total liabilities and equity 58,171 61,872