SBI Card surges 4% after Q3 PAT grows 84% yoy to Rs386cr

25 Jan 2022 , 02:05 PM

The Board of Directors of SBI Cards and Payment Services Limited on Monday approved the company’s results for the quarter and 9 months ended December 31, 2021, at their meeting held on Monday, January 24, 2022.

Total revenue increased by Rs600cr, or 24% to Rs3,140cr for Q3FY22 vs Rs2,540cr for Q3 FY21. Increase in revenue is primarily due to higher Income from fees and services in Q3FY22, company said in a filing on Monday.

Profit before tax increased by Rs236cr, or 83% to Rs519cr for Q3FY22 vs Rs283cr for Q3FY21. Profit after tax increased by Rs176cr, or 84% to Rs386cr for Q3FY22 vs Rs210cr for Q3FY21.

Finance costs increased by Rs16 Cr, or 6% to Rs277cr for Q3FY22 from Rs261cr for Q3FY21. Total Operating cost increased by Rs371cr, or 28% to Rs1,719cr for Q3FY22 from Rs1,348cr for Q3FY21, increase is due to higher business volumes & festive campaigns in Q3FY22.

Earnings before credit costs increased by Rs213cr, or 23% to Rs1,144cr for Q3FY22 vs Rs931cr for Q3FY21. Total Management overlay provision at Rs162cr as of Dec’21. Impairment losses & bad debts expenses for Q3FY22 at Rs625cr vs Rs648cr for Q3FY21.

At around 2.07 pm, SBI Cards & Payment Services Ltd was trading at Rs847.40 per share up by Rs33.3 or 4.09% from its previous closing of Rs814.10 per share on the BSE. The scrip opened at Rs805 and has touched a high and low of Rs854 and Rs781.25 respectively.

For the nine months ended December 31, 2021, total revenue increased by Rs1,040cr, or 14% to Rs8,285cr for 9MFY22 vs Rs7,245cr for 9MFY21.

Profit before tax increased by Rs304cr, or 28% to Rs1,393cr for 9MFY22 vs Rs1,089cr for 9MFY21. Profit after tax increased by Rs226cr, or 28% to Rs1,035cr for 9MFY22 vs Rs809cr for 9MFY21.

Balance Sheet as of December 31, 2021

• Total Balance Sheet size as of December 31, 2021 was Rs32,105cr as against Rs27,006cr as of March 31, 2021.
• Total Gross Advances (Credit card receivables) as of December 31, 2021 were Rs29,129cr, as against Rs25,114cr as of March 31, 2021.
• Net worth as of December 31, 2021 was Rs7,468cr as against Rs6,374cr as of March 31, 2021.

The Gross non-performing assets were at 2.40% of gross advances as on December 31, 2021 as against 4.51% as on December 31, 2020. Net non-performing assets were at 0.83% as against 1.60%* as on December 31, 2020.

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, 2021, Company’s CRAR was 24.2% compared to 23.7% as of December 31, 2020.

Key Metrics

• New accounts volume at 1,008k for Q3FY22 up by 10% as compared to 918k for Q3FY21.
• Card-in-force grew by 15% to 1.32cr as of Q3FY22 vs 1.15cr as of Q3FY21.
• Total spends grew by 47% to Rs55,397cr in Q3FY22 vs Rs37,797cr in Q3FY21.
• Market share 9MFY22 (available till Nov’21) — Card-in-force at 19.2% (FY21: 19.1%); Spends at 19.0% (FY21: 19.4%); Transactions at 20.0% (FY21: 19.7%).
• Receivables grew by 13% to Rs29,129cr as of Q3FY22 vs Rs25,749cr as of Q3FY21.
• GNPA at 2.40% as of Q3FY22 vs 4.51% as of Q3FY21; NNPA at 0.83% as of Q3FY22 vs 1.60%* as of Q3FY21.
• Total RBI RE book including RBI RE 2.0 assets at 2% in Q3FY22 vs 9% in Q3FY21.