SBI Cards and Payment Services Q2FY24 PAT grows 15% YoY to Rs 603 cr

The company achieved a total revenue of Rs 4,221 crore during the quarter ended September 30, representing a substantial 22% year-on-year (YoY) growth compared to Rs 3,453 crore in Q2 FY23.

The return on average assets (ROAA) for Q2 FY24 was 4.9%, a decrease from 5.4% in Q2 FY23. Additionally, the return on average equity (ROAE) for Q2 FY24 was 22.3%, down from 24.1% in Q2 FY23. The company's capital adequacy ratio reached 23.3%, with Tier 1 capital at 20.8%.

During Q2 FY24, the company reported a 12% decline in new accounts volume, which totalled 1,142K, compared to 1,295K in Q2 FY23.

However, the number of cards in force witnessed significant growth, with a 21% YoY increase to 1.79 crore as of Q2 FY24, up from 1.48 crore in Q2 FY23.

Spends surged by 27% YoY, reaching Rs 79,164 crore in Q2 FY24, compared to Rs 62,306 crore in Q2 FY23.

Receivables also experienced notable growth, rising by 19% YoY to Rs 45,078 crore in Q2 FY24, compared to Rs 37,730 crore in Q2 FY23.

The company maintained a significant market share of 19.2% for cards-in-force and 18.0% for spending in the industry during Q2 FY24.

The total income for Q2 FY24 increased by 22% to Rs 4,221 crore, compared to Rs 3,453 crore in Q2 FY23.

This growth was driven by a rise in interest income, which increased by 28% to Rs 1,902 crore, and fees and commission income, which increased by 23% to Rs 1,974 crore.

Finance costs also increased by 64% to Rs 605 crore, while total operating costs rose by 13% to Rs 2,066 crore.

Earnings before credit costs increased by 24% to Rs 1,551 crore, and impairment losses and bad debts expenses increased by 36% to Rs 742 crore. Consequently, the profit after tax for Q2 FY24 rose by 15% to Rs 603 crore.

For the half-year ending September 30, 2023, the total income increased by 23% to Rs 8,268 crore, up from Rs 6,716 crore in H1 FY23.

This was driven by the growth in interest income and fees and commission income, which increased by 29% and 23%, respectively.

Finance costs also rose by 74% to Rs 1,176 crore, and total operating costs increased by 15% to Rs 4,025 crore.

Earnings before credit costs amounted to Rs 3,066 crore, while impairment losses and bad debts expenses for the period reached Rs 1,460 crore.

The profit after tax for H1 FY24 increased by 4% to Rs 1,196 crore.

As of September 30, 2023, the total balance sheet size stood at Rs 50,388 crore, compared to Rs 45,546 crore as of March 31, 2023.

The total gross advances (credit card receivables) reached Rs 45,078 crore, compared to Rs 40,722 crore as of March 31, 2023.

The company's net worth as of September 30, 2023, amounted to Rs 11,130 crore, compared to Rs 9,902 crore as of March 31, 2023.

The gross non-performing assets (NPA) as of September 30, 2023, accounted for 2.43% of gross advances, while net non-performing assets were at 0.89%. These figures represented a change from 2.14% and 0.78%, respectively, as of September 30, 2022.

In accordance with RBI's capital adequacy norms, the company's capital adequacy ratio (CRAR) as of September 30, 2023, was 23.3%, compared to 23.2% as of September 30, 2022. The Tier 1 capital was at 20.8% as of September 30, 2023, compared to 20.2% as of September 30, 2022.