Stock Report

SBI Card Q3 FY22 PAT Grows 84% to ₹386 Cr Vs ₹210 Cr for Q3 FY21

Posted On : 2022-01-25 22:18:41( TIMEZONE : IST )

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

Performance Highlights Q3 FY22

Total Revenue increases 24% YoY to ₹3,140 Cr
Profit after tax increases 84% YoY to ₹386 Cr
ROAA at 5.0% for Q3 FY22 vs. 3.3% for Q3 FY21
ROAE at 21.2% for Q3 FY22 vs. 13.8% for Q3 FY21
Capital Adequacy Ratio at 24.2%; Tier 1 at 21.3%

Key Metrics

New accounts volume at 1,008k for Q3 FY22 up by 10% as compared to 918k for Q3 FY21.
Card-in-force grew by 15% to 1.32 Cr as of Q3 FY22 vs 1.15 Cr as of Q3 FY21.
Total spends grew by 47% to ₹ 55,397 Cr in Q3 FY22 vs ₹ 37,797 Cr in Q3 FY21.
Market share 9M FY22 (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 ₹ 29,129 Cr as of Q3 FY22 vs ₹ 25,749 Cr as of Q3 FY21.
GNPA at 2.40% as of Q3 FY22 vs 4.51%* as of Q3 FY21; NNPA at 0.83% as of Q3 FY22 vs 1.60%* as of Q3 FY21.
Total RBI RE book including RBI RE 2.0 assets at 2% in Q3 FY22 vs 9% in Q3 FY21.

Profit & Loss Account for the Quarter ended December 31, 2021

Total revenue increased by ₹ 600 Cr, or 24% to ₹ 3,140 Cr for Q3 FY22 vs ₹ 2,540 Cr for Q3 FY21, increase is primarily due to higher Income from fees and services in Q3 FY22.
Finance costs increased by ₹ 16 Cr, or 6% to ₹ 277 Cr for Q3 FY22 from ₹ 261 Cr for Q3 FY21.
Total Operating cost increased by ₹ 371 Cr, or 28% to ₹ 1,719 Cr for Q3 FY22 from ₹ 1,348 Cr for Q3 FY21, increase is due to higher business volumes & festive campaigns in Q3 FY22.
Earnings before credit costs increased by ₹ 213 Cr, or 23% to ₹ 1,144 Cr for Q3 FY22 vs ₹ 931 Cr for Q3 FY21.
Total Management overlay provision at ₹ 162 Cr as on Dec'21. Impairment losses & bad debts expenses for Q3 FY22 at ₹ 625 Cr vs ₹ 648 Cr for Q3 FY21.
Profit before tax increased by ₹ 236 Cr, or 83% to ₹ 519 Cr for Q3 FY22 vs ₹ 283 Cr for Q3 FY21
Profit after tax increased by ₹ 176 Cr, or 84% to ₹ 386 Cr for Q3 FY22 vs ₹ 210 Cr for Q3 FY21

Profit & Loss Account for the 9 months ended December 31, 2021

For the 9 months ended December 31, 2021:

Total revenue increased by ₹ 1,040 Cr, or 14% to ₹ 8,285 Cr for 9M FY22 vs ₹ 7,245 Cr for 9M FY21.
Finance costs decreased by ₹ 40 Cr, or 5% to ₹ 760 Cr for 9M FY22 from ₹ 800 Cr for 9M FY21.
Total Operating cost at ₹ 4,268 Cr for 9M FY22 from ₹ 3,361 Cr for 9M FY21, increase is primarily due to higher business volumes.
Earnings before credit costs increased by ₹ 173 Cr, or 6% to ₹ 3,258 Cr for 9M FY22 from ₹ 3,085 Cr for 9M FY21.
Impairment losses & bad debts expenses for the period at ₹ 1,865 Cr for 9M FY22 vs ₹ 1,995 Cr for 9M FY21.
Profit before tax increased by ₹ 304 Cr, or 28% to ₹ 1,393 Cr for 9M FY22 vs ₹1,089 Cr for 9M FY21.
Profit after tax increased by ₹ 226 Cr, or 28% to ₹ 1,035 Cr for 9M FY22 vs ₹ 809 Cr for 9M FY21.

Balance Sheet as of December 31, 2021

Total Balance Sheet size as of December 31, 2021 was ₹ 32,105 Cr as against ₹ 27,006 Cr as of March 31, 2021.
Total Gross Advances (Credit card receivables) as of December 31, 2021 were ₹ 29,129 Cr, as against ₹ 25,114 Cr as of March 31, 2021.
Net worth as of December 31, 2021 was ₹ 7,468 Cr as against ₹ 6,374 Cr as of March 31, 2021.

Asset Quality

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.

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

Shares of SBI Cards and Payment Services Limited was last trading in BSE at Rs. 850.25 as compared to the previous close of Rs. 814.10. The total number of shares traded during the day was 194302 in over 10803 trades.

The stock hit an intraday high of Rs. 854.00 and intraday low of 781.25. The net turnover during the day was Rs. 161841451.00.