The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the Q4 FY23 and financial year ended March 31, 2023, at their meeting held on Friday, April 28, 2023.
Performance Highlights Q4 FY23
- Total Revenue increased by 30% YoY at ₹3,917 Cr in Q4 FY23 vs ₹3,016 Cr in Q4 FY22
- PAT increased by 3% YoY at ₹596 Cr in Q4 FY23 vs ₹581 Cr in Q4 FY22
- ROAA at 5.4% in Q4 FY23 vs 7.0% in Q4 FY22
- ROAE at 24.6% in Q4 FY23 vs 30.4% in Q4 FY22
- Capital Adequacy Ratio at 23.1%; Tier 1 at 20.4%
Business Highlights
- New accounts volume at 1,371K accounts in Q4 FY23 up by 37% vs 1,002K accounts in Q4 FY22
- Card-in-force grew by 22% YoY at 1.68 Cr as of Q4 FY23 vs 1.38 Cr as of Q4 FY22
- Spends grew by 32% YoY at ₹71,686 Cr in Q4 FY23 vs ₹54,134 Cr in Q4 FY22
- Receivables grew by 30% YoY at ₹40,722 Cr in Q4 FY23 vs ₹31,281 Cr in Q4 FY22
- Market share – #2 for both, Cards-in-force and Spends, in industry; for FY23 Card-in-force is at 19.7% (FY22: 18.7%), Spends is at 18.2% (FY22: 19.2%)
Profit & Loss Account for the Quarter ended March 31, 2023
- Total income increased by 30% at ₹3,917 Cr in Q4 FY23 vs ₹3,016 Cr in Q4 FY22. This movement was a result of the following key factors:
- Interest income increased by 32% at ₹1,672 Cr in Q4 FY23 vs ₹1,266 Cr in Q4 FY22
- Fees and commission income increased by 25% at ₹1,786 Cr in Q4 FY23 vs ₹ 1,427 Cr in Q4 FY22
- Finance costs increased by 90% at ₹507 Cr in Q4 FY23 vs ₹267 Cr in Q4 FY22.
- Total Operating cost increased by 26% at ₹1,980 Cr in Q4 FY23 from ₹1,577 Cr in Q4 FY22.
- Earnings before credit costs increased by 22% at ₹1,429 Cr in Q4 FY23 vs ₹1,172 Cr in Q4 FY22
- Impairment losses & bad debts expenses increased by 60% at ₹630 Cr in Q4 FY23 vs ₹393 Cr in Q4 FY22
- Profit after tax increased by 3% at ₹596 Cr in Q4 FY23 vs ₹581 Cr in Q4 FY22.
Profit & Loss Account for the financial year ended March 31, 2023
- Total income increased by 26% at ₹ 14,286 Cr in FY23 vs ₹ 11,302 Cr in FY22.
- Finance costs increased by 60% at ₹ 1,648 Cr in FY23 vs ₹ 1,027 Cr in FY22.
- Total Operating cost increased by 27% at ₹ 7,448 Cr in FY23 vs ₹ 5,844 Cr in FY22, increase is driven by higher business growth.
- Earnings before credit cost increased by 17% at ₹ 5,190 Cr in FY23 vs ₹ 4,430 Cr in FY22.
- Impairment losses & bad debts expenses decreased by 4% at ₹ 2,159 Cr in FY23 vs ₹ 2,258 Cr in FY22.
- Profit after tax increased by 40% at ₹ 2,258 Cr in FY23 vs ₹ 1,616 Cr in FY22.
Balance Sheet as of March 31, 2023
- Total Balance Sheet size as of March 31, 2023 was ₹45,546 Cr as against ₹34,648 Cr as of March 31, 2022.
- Total Gross Advances (Credit card receivables) as of March 31, 2023 were ₹40,722 Cr, as against ₹31,281 Cr as of March 31, 2022.
- Net worth as of March 31, 2023 was ₹9,902 Cr as against ₹7,824 Cr as of March 31, 2022.
Asset Quality
The Gross non-performing assets were at 2.35% of gross advances as of March 31, 2023 as against 2.22% as of March 31, 2022. Net non-performing assets were at 0.87% as of March 31, 2023 as against 0.78% as of March 31, 2022.
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, 2023, Company’s CRAR was 23.1% compared to 23.8% as of March 31, 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 20.4% as of March 31, 2023 compared to 21.0% as of March 31, 2022.
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 | Q4 FY22 | Q3 FY23 | Q4 FY23 | FY22 | FY23 | ||||||
| Interest Income | 1,266 | 1,609 | 1,672 | 4,866 | 6,153 | ||||||
| Non-Interest Income (Fees, commission income & others) | 1,584 | 1,898 | 2,090 | 5,811 | 7,514 | ||||||
| Total Revenue from operations | 2,850 | 3,507 | 3,762 | 10,677 | 13,667 | ||||||
| Total Other Income | 166 | 149 | 154 | 624 | 619 | ||||||
| Total Income | 3,016 | 3,656 | 3,917 | 11,302 | 14,286 | ||||||
| Finance costs | 267 | 464 | 507 | 1,027 | 1,648 | ||||||
| Operating Costs | 1,577 | 1,974 | 1,980 | 5,844 | 7,448 | ||||||
| Earnings before credit costs | 1,172 | 1,217 | 1,429 | 4,430 | 5,190 | ||||||
| Impairment losses & bad debts | 393 | 533 | 630 | 2,258 | 2,159 | ||||||
| Profit before tax | 779 | 684 | 800 | 2,172 | 3,031 | ||||||
| Profit after tax | 581 | 509 | 596 | 1,616 | 2,258 |
Summary Balance Sheet (Rs Cr)
| Description | Mar’22 | Mar’23 |
| Assets | ||
| Advances (Net) | 30,187 | 39,361 |
| Cash & Bank Balances | 1,106 | 1,354 |
| Investments | 1,297 | 2,140 |
| Other Financial Assets & Trade Receivables | 382 | 559 |
| Total non-financial Assets | 1,676 | 2,132 |
| Total Assets | 34,648 | 45,546 |
| Liabilities and Equity | ||
| Total Equity | 7,753 | 9,830 |
| Borrowings, Subordinated Liabilities & Debt Securities | 22,982 | 31,110 |
| Other financial liabilities | 2,700 | 3,091 |
| Total non-financial liabilities | 1,213 | 1,514 |
| Total liabilities and equity | 34,648 | 45,546 |