• Sun. Jan 29th, 2023

SBI Card PAT Grows 32% YoY to ₹509 Cr in Q3 FY23 Vs ₹386 Cr for Q3 FY22

Jan 25, 2023

Hyderabad, January 2023: The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Q3 FY23 and 9 months ended December 31, 2022, at their meeting held on Tuesday, January 24, 2023.

Performance Highlights Q3 FY23

Total Revenue increases 16% YoY to ₹3,656 Cr
ROAA at 4.8% for Q3 FY23 vs 5.0% for Q3 FY22
ROAE at 22.0% for Q3 FY23 vs 21.2% for Q3 FY22
Capital Adequacy Ratio at 23.3%; Tier 1 at 20.6%

Key Metrics

New accounts volume at 1,634K accounts for Q3 FY23 up by 62% vs 1,008K accounts for Q3 FY22.
Card-in-force grew by 21% to 1.59 Cr as of Q3 FY23 vs 1.32 Cr as of Q3 FY22.
Spends grew by 24% at ₹68,835 Cr for Q3 FY23 vs ₹55,397 Cr for Q3 FY22.
Market share 9M FY23 (available till Nov’22) – Card-in-force at 19.3% (FY22: 18.7%). Spends at 18.0% (FY22: 19.2%).
Receivables grew by 33% to ₹38,626 Cr as of Q3 FY23 vs ₹29,129 Cr as of Q3 FY22.
GNPA at 2.22% as of Q3 FY23 vs 2.40% as of Q3 FY22; NNPA at 0.80% as of Q3 FY23 vs 0.83% as of Q3 FY22.

Profit & Loss Account for the Quarter ended December 31, 2022

Ø Total income at ₹3,656 Cr for Q3 FY23 vs ₹3,140 Cr for Q3 FY22. This movement was a result of the following key factors:

· Interest income increased by ₹336 Cr to ₹1,609 Cr for Q3 FY23 vs ₹1,273 Cr for Q3 FY22.

· Income from fees and services increased by ₹213 Cr to ₹1,670 Cr for Q3 FY23 vs ₹ 1,457 Cr for Q3 FY22.

· Other income decreased by ₹101 Cr to ₹149 Cr for Q3 FY23 vs ₹250 Cr for Q3 FY22.

Ø Finance costs increased by ₹187 Cr to ₹464 Cr for Q3 FY23 from ₹277 Cr for Q3 FY22.

Ø Total Operating cost increased by 15% at ₹1,974 Cr for Q3 FY23 from ₹1,719 Cr for Q3 FY22.

Ø Earnings before credit costs increased by 6% at ₹1,217 Cr for Q3 FY23 vs ₹1,144 Cr for Q3 FY22.

Ø Impairment losses & bad debts expenses decreased by 15% at ₹533 Cr for Q3 FY23 vs ₹625 Cr for Q3 FY22.

Ø Profit before tax increased by ₹166 Cr or 32% to ₹684 Cr for Q3 FY23 vs ₹519 Cr for Q3 FY22.

Ø Profit after tax increased by ₹124 Cr or 32% to ₹509 Cr for Q3 FY23 vs ₹386 Cr for Q3 FY22.

Profit & Loss Account for the 9 months ended December 31, 2022

Ø Total income increased by ₹ 2,087 Cr or 25% to ₹ 10,372 Cr for 9M FY23 vs ₹ 8,285 Cr for 9M FY22.

Ø Finance costs increased by ₹ 380 Cr or 50% to ₹ 1,140 Cr for 9M FY23 from ₹ 760 Cr for 9M FY22.

Ø Total Operating cost at ₹ 5,472 Cr for 9M FY23 from ₹ 4,268 Cr for 9M FY22, increase is driven by higher business growth.

Ø Earnings before credit cost at ₹ 3,760 Cr for 9M FY23 from ₹ 3,258 Cr for 9M FY22.

Ø Impairment losses & bad debts expenses for the period at ₹ 1,529 Cr for 9M FY23 vs ₹ 1,865 Cr for 9M FY22.

Ø Profit before tax increased by ₹ 838 Cr or 60% to ₹ 2,231 Cr for 9M FY23 vs ₹1,393 Cr for 9M FY22.

Ø Profit after tax increased by ₹ 627 Cr or 61% to ₹ 1,662 Cr for 9M FY23 vs ₹ 1,035 Cr for 9M FY22.

Balance Sheet as of December 31, 2022

Ø Total Balance Sheet size as of December 31, 2022 was ₹42,987 Cr as against ₹34,648 Cr as of March 31, 2022.

Ø Total Gross Advances (Credit card receivables) as of December 31, 2022 were ₹38,626 Cr, as against ₹31,281 Cr as of March 31, 2022.

Ø Net worth as of December 31, 2022 was ₹9,530 Cr as against ₹7,824 Cr as of March 31, 2022.

Asset Quality

The Gross non-performing assets were at 2.22% of gross advances as on December 31, 2022 as against 2.40% as on December 31, 2021. Net non-performing assets were at 0.80% as at December 31, 2022 as against 0.83% as on December 31, 2021.

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 December 31, 2022, Company’s CRAR was 23.3% compared to 24.2% as of December 31, 2021.

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 20.6% as of December 31, 2022 compared to 21.3% as of December 30, 2021.

Rating

CRISIL Long Term – AAA/Stable

CRISIL Short Term – A1+

ICRA Long Term – AAA/Stable

ICRA Short Term – A1+

Summary Profit and Loss Statement (Rs Cr)

 

Description Q3 FY22  Q2 FY23  Q3 FY23
Interest Income 1,273 1,484 1,609
Others 1,616 1,813 1,898
Total Revenue from operations 2,889 3,297 3,507
Total Other Income 250 156 149
Total Income 3,140 3,453 3,656
Finance costs 277 368 464
Operating Costs 1,719 1,834 1,974
Earnings before credit costs 1,144 1,252 1,217
Impairment losses & bad debts 625 546 533
Profit before tax 519 706 684
Profit after tax 386 526 509

 

Summary Balance Sheet (Rs Cr)

 

Description Mar’22 Dec’22
Assets    
Advances (Net) 30,187  37,354
Cash & Bank Balances 1,106  785
Investments 1,297  2,296
Other Financial Assets 382  632
Total non-financial Assets 1,676  1,920
Total Assets 34,648  42,987
     
Liabilities and Equity    
Total Equity 7,753  9,459
Borrowings 22,982  29,403
Other financial liabilities  2,700  2,722
Total non-financial liabilities  1,213  1,403
Total liabilities and equity 34,648  42,987