SBI Card Results For Quarter Ended June 30, 2023 : Revenue From Operations Up 26% YoY, PAT At Rs 593 Crore
Gross non-performing assets were at 2.41% of gross advances as of June 30, 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.
Total Revenue increased by 24% YoY at Rs 4,046 Cr in Q1 FY24 v/s Rs 3,263 Cr in Q1 FY23. PAT decreased by 5% YoY at Rs 593 Cr in Q1 FY24 v/s Rs 627 Cr in Q1 FY23. ROAA was at 5.1% in Q1 FY24 v/s 7.0% in Q1 FY23. ROAE was at 23.3% in Q1 FY24 v/s 30.8% in Q1 FY23. Capital Adequacy Ratio was at 22.9%; Tier 1 at 20.3%. New accounts volume was at 1,097K in Q1 FY24 up by 22% v/s 902K new accounts in Q1 FY23. Card-in-force grew by 21% YoY at 1.73 Cr as of Q1 FY24 v/s 1.43 Cr as of Q1 FY23. Spends grew by 24% YoY at Rs 73,913 Cr in Q1 FY24 v/s Rs 59,671 Cr in Q1 FY23. Receivables grew by 30% YoY at Rs 43,271 Cr in Q1 FY24 v/s Rs 33,215 Cr in Q1 FY23.
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 Rs 4,046 Cr in Q1 FY24 v/s Rs 3,263 Cr in Q1 FY23. This movement was a result of the following key factors – Interest income increased by 30% at Rs 1,804 Cr in Q1 FY24 v/s Rs 1,387 Cr in Q1 FY23 and Fees and commission income increased by 23% at Rs 1,898 Cr in Q1 FY24 v/s Rs 1,538 Cr in Q1 FY23.
Finance costs increased by 85% at Rs 571 Cr in Q1 FY24 v/s Rs 308 Cr in Q1 FY23. Total Operating cost increased by 18% at Rs 1,960 Cr in Q1 FY24 from Rs 1,663 Cr in Q1 FY23. Earnings before credit costs increased by 17% at Rs 1,515 Cr in Q1 FY24 v/s Rs 1,291 Cr in Q1 FY23. Impairment losses & bad debts expenses increased by 60% at Rs 719 Cr in Q1 FY24 v/s Rs 450 Cr in Q1 FY23. Profit after tax decreased by 5% at Rs 593 Cr in Q1 FY24 v/s Rs 627 Cr in Q1 FY23.
Balance Sheet as of June 30, 2023: Total Balance Sheet size as of June 30, 2023, was Rs 47,916 Cr as against Rs 45,546 Cr as of March 31, 2023. Total Gross Advances (Credit card receivables) as of June 30, 2023, were Rs 43,271 Cr, as against Rs 40,722 Cr as of March 31, 2023. Net worth as of June 30, 2023, was Rs 10,496 Cr as against Rs 9,902 Cr as of March 31, 2023.
On Asset Quality, the Gross non-performing assets were at 2.41% of gross advances as of June 30, 2023, as against 2.24% as of June 30, 2022. Net non-performing assets were at 0.89% as of June 30, 2023, as against 0.79% as of June 30, 2022.
On 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 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%. Company’s Tier I capital was 20.3% as of June 30, 2023, compared to 21.5% as of June 30, 2022.
