SBI Card And Payment Services Limited – Q4 FY’24 Revenue Rises 14% To ₹ 4,475; PAT Grows 11% To ₹ 662 Crores

The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Q4 FY24 and financial year ended March 31, 2024, at their meeting held on Friday, April 26, 2024.

Performance Highlights Q4 FY24

· Total Revenue increased by 14% YoY at ₹4,475 Cr in Q4 FY24 vs ₹3,917 Cr in Q4 FY23
· PAT increased by 11% YoY at ₹662 Cr in Q4 FY24 vs ₹596 Cr in Q4 FY23
· ROAA at 4.7% in Q4 FY24 vs 5.4% in Q4 FY23
· ROAE at 22.2% in Q4 FY24 vs 24.6% in Q4 FY23
· Capital Adequacy Ratio at 20.5%; Tier 1 at 16.5%

Business Highlights

· New accounts volume at 1,029K accounts in Q4 FY24 vs 1,371K accounts in Q4 FY23
· Card-in-force grew by 13% YoY at 1.89 Cr as of Q4 FY24 vs 1.68 Cr as of Q4 FY23
· Spends grew by 11% YoY at ₹79,653 Cr in Q4 FY24 vs ₹71,686 Cr in Q4 FY23
· Receivables grew by 25% YoY at ₹50,846 Cr in Q4 FY24 vs ₹40,722 Cr in Q4 FY23
· Market share – for FY24 Card-in-force is at 18.6% (FY23: 19.7%), Spends is at 17.8% (FY23: 18.2%)

Profit & Loss Account for the Quarter ended March 31, 2024

Ø Total income increased by 14% at ₹4,475 Cr in Q4 FY24 vs ₹3,917 Cr in Q4 FY23. This movement was a result of the following key factors:
Ø Interest income increased by 28% at ₹2,139 Cr in Q4 FY24 vs ₹1,672 Cr in Q4 FY23
Ø Fees and commission income increased by 6% at ₹2,209 Cr in Q4 FY24 vs ₹ 2,090 Cr in Q4 FY23
Ø Finance costs increased by 43% at ₹724 Cr in Q4 FY24 vs ₹507 Cr in Q4 FY23
Ø Total Operating cost decreased by 3% at ₹1,918 Cr in Q4 FY24 from ₹1,980 Cr in Q4 FY23
Ø Earnings before credit costs increased by 28% at ₹1,833 Cr in Q4 FY24 vs ₹1,429 Cr in Q4 FY23
Ø Impairment losses & bad debts expenses increased by 50% at ₹944 Cr in Q4 FY24 vs ₹630 Cr in Q4 FY23
Ø Profit after tax increased by 11% at ₹662 Cr in Q4 FY24 vs ₹596 Cr in Q4 FY23

Profit & Loss Account for the financial year ended March 31, 2024

Ø Total income increased by 22% at ₹ 17,484 Cr in FY24 vs ₹ 14,286 Cr in FY23
Ø Finance costs increased by 58% at ₹ 2,595 Cr in FY24 vs ₹ 1,648 Cr in FY23
Ø Total Operating cost increased by 12% at ₹ 8,369 Cr in FY24 vs ₹ 7,448 Cr in FY23, increase is driven by higher business growth
Ø Earnings before credit cost increased by 26% at ₹ 6,519 Cr in FY24 vs ₹ 5,190 Cr in FY23
Ø Impairment losses & bad debts expenses increased by 52% at ₹ 3,287 Cr in FY24 vs ₹ 2,159 Cr in FY23
Ø Profit after tax increased by 7% at ₹ 2,408 Cr in FY24 vs ₹ 2,258 Cr in FY23

Balance Sheet as of March 31, 2024

Ø Total Balance Sheet size as of March 31, 2024 was ₹58,171 Cr as against ₹45,546 Cr as of March 31, 2023
Ø Total Gross Advances (Credit card receivables) as of March 31, 2024 were ₹50,846 Cr, as against ₹40,722 Cr as of March 31, 2023
Ø Net worth as of March 31, 2024 was ₹12,156 Cr as against ₹9,902 Cr as of March 31, 2023

Asset Quality

The Gross non-performing assets were at 2.76% of gross advances as of March 31, 2024 as against 2.35% as of March 31, 2023. Net non-performing assets were at 0.99% as of March 31, 2024 as against 0.87% as of March 31, 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 March 31, 2024, Company’s CRAR was 20.5% compared to 23.1% as of March 31, 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 16.5% as of March 31, 2024 compared to 20.4% as of March 31, 2023.

Rating

CRISIL Long Term – AAA/Stable
CRISIL Short Term – A1+
ICRA Long Term – AAA/Stable
ICRA Short Term – A1+