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SBI Card FY23 PAT Grows By 40% YoY to 2,258 Cr `  

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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  
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