SBI Card Q4 net profit at INR 175 crore, up by 110%

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For the financial year ended March 31, 2021 total income at INR 9,714 Cr for FY21 vs INR 9,752 Cr for FY20.

The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the quarter and financial year ended March 31, 2021, at their meeting held on Monday, April 26, 2021.

Performance Highlights Q4’FY21:

• Profit after tax at INR 175 Cr for Q4 FY21 vs INR 84 Cr for Q4 FY20, up 110%
• Total Income at INR 2,468 Cr for Q4 FY21
• ROAA at 2.6% for Q4 FY21 vs 1.3% for Q4 FY20
• ROAE at 11.2% for Q4 FY21 vs 6.5% for Q4 FY20
• Capital Adequacy Ratio at 24.8% (Q4 FY20:22.4%); Tier 1 at 20.9% (Q4 FY20:17.7%)

Key Metrics:

• Card-in-force grew by 12% to 1.18 Cr as of Q4 FY21 vs 1.05 Cr as of Q4 FY20
• Spends grew by 11% at INR 35,943 Cr for Q4 FY21 vs INR 32,429 Cr for Q4 FY20
• Market share Q4 FY21 (available till February) – Card-in-force at 19.0% (FY20:18.3%); Spends at 19.5% for FY21 (FY20:17.9%)
• Receivables grew by 4% to INR25,114 Cr as of Q4 FY21 vs INR 24,141 Cr as of Q4 FY20
• GNPA at 4.99% as of Q4 FY21 vs 2.01% as of Q4 FY20; NNPA at 1.15% as of Q4 FY21 vs 0.67% as of Q4 FY20
• New accounts volume at 791K accounts for Q4 FY21

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

• Total income at INR 2,468 Cr for Q4 FY21 vs INR 2,510 Cr for Q4 FY20. This movement was a result of the following key factors:

• Interest income at INR 1,072 Cr for Q4 FY21 vs INR 1,348 Cr for Q4 FY20
• Income from fees and services increased by INR 154 Cr to INR 1,114 Cr        for Q4 FY21 vs INR 959 Cr for Q4 FY20
• Other income increased by INR 82 Cr, or 107% to INR 159 Cr for Q4 FY21    vs INR 77 Cr for Q4 FY20, primarily due to higher bad debt recovery.

• Finance costs decreased by INR 91 Cr, or 27.1% to INR 244 Cr for Q4 FY21 from INR 334 Cr for Q4 FY20.

• Total Operating cost increased by INR 60 Cr, or 4.9% to INR 1,285 Cr for Q4 FY21 from INR 1,226 Cr for Q4 FY20.
• Earnings before credit costs at INR 939 Cr for Q4 FY21 vs INR 950 Cr for Q4 FY20.

• Total Management overlay provision at INR 297 Cr as on Mar’21. Impairment losses & bad debts expenses* for Q4 FY21 at INR 705 Cr vs INR 838 Cr for Q4 FY20.

• Profit before tax increased by INR 122 Cr, or 109% to INR 234 Cr for Q4 FY21 vs INR 112 Cr for Q4 FY20.

• Profit after tax increased by INR 92 Cr, or 110% to INR 175 Cr for Q4 FY21 from INR 84 Cr for Q4 FY20.

Profit & Loss Account for the financial year ended March 31, 2021

• For the financial year ended March 31, 2021 total income at INR 9,714 Cr for FY21 vs INR 9,752 Cr for FY20. Finance costs decreased by INR 258 Cr, or 19.8% to INR 1,043 Cr for FY21 from INR 1,301 Cr for FY20. Total Operating cost decreased by INR 135 Cr, or 2.8% to INR 4,646 Cr for FY21 from INR 4,781 Cr for FY20. Earnings before credit costs increased by INR 354 Cr, or 9.6% to INR 4,024 Cr for FY21 from INR 3,670 Cr for FY20. Impairment losses & bad debts expenses* for the period at INR 2,700 Cr vs INR 1,940 Cr for FY20. Profit before tax at INR 1,324 Cr for FY21 vs INR 1,730 Cr for FY20. Profit after tax at INR 985 Cr for FY21 vs INR 1,245 Cr for FY20.

Balance Sheet as of March 31, 2021

• Total Balance Sheet size as of March 31, 2021 was INR 27,013 Cr as against INR 25,307 Cr as of March 31, 2020.

• Total Gross Advances (Credit card receivables) as of March 31, 2021 were INR 25,114 Cr, as against INR 24,141 Cr as of March 31, 2020.

• Net worth as of March 31, 2021 was INR 6,374 Cr as against INR 5,413 Cr as of March 31, 2020.

Asset Quality

The Gross non-performing assets were at 4.99% of gross advances as on March 31, 2021 as against 2.01% as on March 31, 2020. Net non-performing assets were at 1.15% as against 0.67% as on March 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 March 31, 2021, Company’s CRAR was 24.8% compared to 22.4% as of March 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 20.9% as of March 31, 2021 compared to 17.7% as of March 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

Q4 FY20

Q3 FY21

Q4 FY21

YoY

FY20

FY21

YoY

Interest Income

1,348

1,168

1,072

-20%

4,841

4,928

2%

Others

1,085

1,235

1,237

14%

4,435

4,350

-2%

Total Revenue from operations

2,433

2,403

2,309

-5%

9,276

9,277

0%

Total Other Income

      77

   137

   159

107%

   476

   436

-8%

Total Income

2,510

2,540

2,468

-2%

9,752

9,714

0%

Finance costs

   334

   261

   244

-27%

1,301

1,043

-20%

Operating Costs

1,226

1,348

1,285

5%

4,781

4,646

-3%

Earnings before credit costs

   950

   931

   939

-1%

3,670

4,024

10%

Impairment losses & bad debts*

   838

   648

   705

-16%

1,940

2,700

39%

Profit before tax

   112

   283

   234

109%

1,730

1,324

-23%

Profit after tax

      84

   210

   175

110%

1,245

   985

-21%

Summary Balance Sheet

Rs Cr

Mar’20

Mar’21

YoY

Assets

 

 

 

Loans (Net)

22,812

           23,459

3%

Cash & Bank Balances

      677

  718

6%

Other Financial Assets

      279

             1,236

343%

Total non-financial Assets

   1,539

             1,600

4%

Total Assets

25,307

           27,013

7%

 

 

 

 

Liabilities and Equity

 

 

 

Total Equity

   5,341

             6,302

18%

Borrowings including lease liabilities

17,573

           18,068

3%

Other financial liabilities

   1,197

             1,463

22%

Total non-financial liabilities

   1,196

             1,180

-1%

Total liabilities and equity

25,307

           27,013

7%

* Impairment losses & bad debts include impairment losses on other assets and net loss on derecognition of financial instruments under amortised category