Monday, July 20, 2020

SBI Cards and Payment Services Limited (Formerly known as SBI Cards and Payment Services Private Limited) Financial Results for the Quarter Ended June 30, 2020

SBI Card PAT grows 14% to 393 Crore in Q1 FY21 vs 364 Crore in Q1 FY20

New Delhi, 20 July 2020: The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter ended June 30, 2020, at their meeting held on Monday, July 20, 2020.

Performance Highlights

  • PAT grew by 14% to 393 Crore for Q1 FY21 vs 346 Crore for Q1 FY20
  • ROAA at 6.3% for Q1 FY21 vs 6.5% for Q1 FY20
  • ROAE at 28.3% for Q1 FY21 vs 36.1% for Q1 FY20
  • Capital Adequacy Ratio at 24.4% (Q1 FY20 : 18.9%); Tier 1 at 20.1% (Q1 FY20 : 14.3%)

Key Metrics

  • Card-in-force grew by 20% to 1.06 Cr vs 0.88 Cr as of Q1 FY20
  • Spends at 19,085 Crore for Q1 FY21 vs 30,174 Cr for Q1 FY20
  • Market share – Card-in-force at 18.3%; Spends at 19.6% (as of Apr’20)
  • Receivables grew by 10% to 23,330 Crore vs 21,231 Cr as of Q1 FY20
  • Cost to Income ratio improved by 635bps to 47.2% vs 53.6% for Q1 FY20
  • GNPA improves by 133bps to 1.35% vs 2.68% for Q1 FY20
  • Accounts in moratorium went down to 1.5 lac in June 2020 vs 12.5 lac in May 2020
  • Daily average spends improved to 76.5% of Pre COVID level for June 2020 vs 54.0% for May 2020
  • New accounts acquisition improved from 80K in May 2020 to 181K in June 2020; stands at 57.6% of Pre COVID average daily acquisition

*Pre COVID refers to average of Dec19-Feb20



Profit & Loss Account for the Quarter ended June 30, 2020

Ø  Total income at 2,196 Cr for Q1 FY21 vs 2,304 Cr for Q1 FY20. This movement was a result of the following key factors:

·   Interest income increased by 363 Cr, or 34.6% to 1,412 Cr for Q1 FY21 from 1,049 Cr for Q1 FY20

·   Income from fees and services at 668 Cr for Q1 FY21 vs 916 Cr for Q1 FY20.

·   Other income at 43 Cr for Q1 FY21 vs 236 Cr for Q1 FY20.

Ø  Finance costs decreased by 27 Cr, or 9.0% to 275 Cr for Q1 FY21 from 302 Cr for Q1 FY20.

Ø  Total Operating cost decrease by 166 Cr, or 15.4% to 907 Cr for Q1 FY21 from 1,073 Cr for Q1 FY20.
Ø  Impairment losses & bad debts expenses for the quarter at 485 Cr vs 397 Cr for Q1 FY20.

Ø  Profit before tax at 528 Cr for Q1 FY21 vs 533 Cr for Q1 FY20.

Ø  Profit after tax increased by 48 Cr, or 13.8% to 393 Cr for Q1 FY21 from 346 Cr for Q1 FY20.


Balance Sheet as of June 30, 2020


Ø  Total Balance Sheet size as of June 30, 2020 was 24,260 Cr as against 25,303 Cr as of March 31, 2020.

Ø  Total Gross Advances (Credit card receivables) as of June 30, 2020 were 23,330 Cr, an increase of 9.9 % from 21,231 Cr as of June 30, 2019.

Ø  Net worth as of June 30, 2020 was 5,722 Cr as against 5,413 Cr as of March 31, 2020, a growth of 5.7%.


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 June 30, 2020, Company’s CRAR was 24.4% compared to 18.9% as of June 30, 2019.

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 20.1% as of June 30, 2020 compared to 14.3% as of June 30, 2019.

Asset Quality

The Gross non-performing assets were at 1.35% of gross advances as on June 30, 2020 as against 2.68% as on June 30, 2019. The Provision Coverage Ratio at 68.25% as of June 30, 2020 as against 72.00% as of June 30, 2019.
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
Q1 FY20
Q4 FY20
Q1 FY21
YoY
QoQ
FY20
Interest Income
1,049
1,348
1,412
35%
5%
4,841
Others
1,019
1,085
740
-27%
-32%
4,435
Total Revenue from operations
2,068
2,433
2,152
4%
-12%
9,276
Total Other Income
   236
      77
      43
-82%
-44%
   476
Total Income
2,304
2,510
2,196
-5%
-13%
9,752
Finance costs
   302
   334
   275
-9%
-18%
1,301
Impairment losses & bad debts
   397
   838
   485
22%
-42%
1,940
Operating Costs
1,073
1,226
   907
-15%
-26%
4,781
Total expenses
1,772
2,398
1,667
-6%
-30%
8,023
Profit before tax
   533
   112
   528
-1%
371%
1,730
Profit after tax
   346
      84
   393
14%
371%
1,245

Summary Balance Sheet

Rs Cr
As of
Jun 19
As of
Mar 20
As of
Jun 20
YoY
QoQ
Assets





Loans (Net)
20,457
22,812
21,921
7%
-4%
Cash & Bank Balances
      578
      676
  593
3%
-12%
Other Financial Assets
      296
      276
  313
6%
13%
Total non-financial Assets
  1,328
   1,539
1,432
8%
-7%
Total Assets
22,658
25,303
24,260
...

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