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

    Published on January 25, 2022

    • Cards in force cross the 13 Mn+ milestone
    • New Accounts cross 1 Mn+ milestone in Q3 FY22 

    Kolkata: 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.

    The tier I capital in respect of an NBFC-ND-SI, at any point of time, is required to be not be less than 10%. Company’s Tier I capital was 21.3% as of December 31, 2021compared to 19.8% as of December 31, 2020.

    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 Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY 
    Interest Income 1,173 1,173 1,273 9% 3,864 3,600 -7% 
    Others 1,235 1,403 1,616 31% 3,113 4,227 36% 
    Total Revenue from operations 2,408 2,576 2,889 20% 6,977 7,827 12% 
    Total Other Income 131 119 250 90% 268 458 71% 
    Total Income/Revenue 2,540 2,695 3,140 24% 7,245 8,285 14% 
    Finance costs 261 254 277 6% 800 760 -5% 
    Operating Costs 1,348 1,383 1,719 28% 3,361 4,268 27% 
    Earnings before credit costs 931 1,058 1,144 23% 3,085 3,258 6% 
    Impairment losses & bad debts648594 625 -4%1,995 1,865 -7%
    Profit before tax 283 464 519 83% 1,089 1,393 28% 
    Profit after tax 210 345 386 84% 809 1,035 28% 

    Summary Balance Sheet  

    Rs Cr Mar’21 Dec’21 Variance % 
    Assets     
    Loans (Net) 23,459 27,969 19% 
    Cash & Bank Balances 720 819 14% 
    Investments 958 1,236 29% 
    Other Financial Assets 269 279 3% 
    Total non-financial Assets1,600 1,80313% 
    Total Assets 27,006 32,105 19% 
         
    Liabilities and Equity    
    Total Equity6,302 7,39617% 
    Borrowings17,895 21,04918% 
    Other financial liabilities  1,717 2,507 46% 
    Total non-financial liabilities 1,092 1,151 5% 
    Total liabilities and equity 27,006 32,105 19% 

    * GNPA/NNPA for previous year on basis of proforma GNPA/NNPA.

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