SBI Card Reports Rs 4,483 Cr Revenue, 11% YoY Growth; PAT at Rs 594 Cr
SBI Cards reports an 11% YoY revenue growth to ₹4,483 crore and a PAT of ₹594 crore for Q1 FY25, with a slight dip in key profitability ratios like Return on Assets and Return on Equity.
by Damodharan N
Updated Jul 27, 2024
Table of Content
SBI Cards and Payment Services Limited has released its financial results for the quarter ending June 30, 2024. The company’s revenue from operations for Q1 FY25 stood at ₹4,483 crore, marking an 11% increase compared to ₹4,046 crore in the same quarter last year.
The company’s Profit After Tax (PAT) for Q1 FY25 was ₹594 crore, slightly up from ₹593 crore in Q1 FY24. Despite this growth in PAT, key financial metrics showed some declines.
The Return on Assets (ROAA) decreased to 4.1% from 5.0% in Q1 FY24, and the Return on Equity (ROAE) fell to 19.1% from 23.3% year-on-year. The Capital Adequacy Ratio stood at 20.6%, with Tier 1 capital at 16.8%.
In terms of business performance, SBI Cards saw a growth of 11% in cards-in-force, reaching 1.92 crore as of Q1 FY25, up from 1.73 crore a year ago. New accounts volume decreased to 904,000 in Q1 FY25 from 1,097,000 in Q1 FY24.
The company reported a 4% increase in spending, reaching ₹77,129 crore, compared to ₹73,913 crore in the previous year. Receivables also grew significantly by 22% to ₹52,705 crore from ₹43,271 crore year-on-year.
SBI Cards maintains a strong market position with a market share of 18.5% in cards-in-force and 15.9% in spends for Q1 FY25, although it slightly dropped from 19.6% and 17.8% respectively in Q1 FY24. The company is ranked #2 in cards-in-force and #3 in spending within the industry.
The company's performance reflects solid growth in revenue and receivables despite minor declines in profitability ratios and new account acquisitions.
SBI Card Q1 FY25 Results
SBI Cards and Payment Services has announced its financial results for the first quarter of FY25, ending June 30, 2024. The company reported an 11% increase in total revenue, reaching ₹4,483 crore compared to ₹4,046 crore in the same quarter last year.
Profit After Tax (PAT) remained steady at ₹594 crore, slightly up from ₹593 crore in Q1 FY24. The company's Return on Assets (ROAA) decreased to 4.1% from 5.0%, and the Return on Equity (ROAE) fell to 19.1% from 23.3%. The Capital Adequacy Ratio stood at 20.6%, with Tier 1 capital at 16.8%.
In the Profit & Loss Account, SBI Cards saw a 24% rise in interest income to ₹2,243 crore, while fees and commission income remained flat at ₹2,115 crore. Finance costs increased by 34% to ₹767 crore due to higher receivables.
Total operating costs decreased by 7% to ₹1,816 crore. Earnings before credit costs grew by 25% to ₹1,900 crore, but impairment losses and bad debts rose by 53% to ₹1,101 crore.
The balance sheet as of June 30, 2024, showed a total size of ₹59,513 crore, up from ₹58,171 crore as of March 31, 2024. Total advances increased to ₹50,807 crore from ₹49,079 crore, and net worth grew to ₹12,752 crore from ₹12,156 crore.
Asset quality saw a rise in gross non-performing assets to 3.06% of gross advances from 2.41% a year ago, while net non-performing assets increased to 1.11% from 0.89%. The company’s Capital Adequacy Ratio (CRAR) decreased to 20.6% from 22.9%, and Tier I capital dropped to 16.8% from 20.3%.
SBI Cards holds strong ratings from CRISIL and ICRA, with CRISIL giving a Long Term rating of AAA/Stable and Short Term rating of A1+, and ICRA assigning a Long Term rating of AAA/Stable and Short Term rating of A1.
Profit and Loss Statement
|
Description |
Q1 FY24 |
Q4 FY24 |
Q1 FY25 |
QoQ Change |
YoY Change |
|
Interest Income |
1,804 |
2,139 |
2,243 |
+5% |
+24% |
|
Non-Interest Income |
2,108 |
2,209 |
2,115 |
-4% |
0% |
|
Total Revenue from Operations |
3,912 |
4,348 |
4,359 |
+0% |
+11% |
|
Total Other Income |
134 |
127 |
124 |
-2% |
-8% |
|
Total Income |
4,046 |
4,475 |
4,483 |
+0% |
+11% |
|
Finance Costs |
571 |
724 |
767 |
+6% |
+34% |
|
Operating Costs |
1,960 |
1,918 |
1,816 |
-5% |
-7% |
|
Earnings Before Credit Costs |
1,515 |
1,833 |
1,900 |
+4% |
+25% |
|
Impairment Losses & Bad Debts |
719 |
944 |
1,101 |
+17% |
+53% |
|
Profit Before Tax |
797 |
888 |
799 |
-10% |
0% |
|
Profit After Tax |
593 |
662 |
594 |
-10% |
0% |
SBI Cards and Payment Service
SBI Cards and Payment Services Limited, known as SBI Card, is a major credit card issuer in India. Established in 1998 as a joint venture between State Bank of India and GE Capital, it is now one of the largest credit card providers in the country.
SBI Card offers a broad range of credit cards for individuals and businesses, including lifestyle, rewards, travel, and fuel cards. With over 19 million cards in force, the company uses advanced technology to enhance its services and reach customers through various channels.
SBI Card is listed on both the National Stock Exchange and the Bombay Stock Exchange, trading under the symbol 'SBICARD'.
SBI Card Reports Rs 4,483 Cr Revenue, 11% YoY Growth; PAT at Rs 594 Cr - FAQs
1. What is SBI Cards' total revenue for Q1 FY25?
For Q1 FY25, SBI Cards reported a total revenue of ₹4,483 crore, reflecting a strong 11% increase compared to ₹4,046 crore in the same quarter of the previous year.
2. What was the company's Profit After Tax (PAT) for Q1 FY25?
The Profit After Tax (PAT) for SBI Cards in Q1 FY25 was ₹594 crore, which is a slight increase from ₹593 crore reported in Q1 FY24.
3. How did SBI Cards' revenue grow year-on-year in Q1 FY25?
The revenue for Q1 FY25 grew by 11% compared to the same quarter last year, when it was ₹4,046 crore.
4. What was the percentage change in PAT for Q1 FY25 compared to Q1 FY24?
PAT showed a minimal increase of 0.2% in Q1 FY25 compared to ₹593 crore in Q1 FY24.
5. What is the Return on Assets (ROAA) for SBI Cards in Q1 FY25?
The Return on Assets (ROAA) for Q1 FY25 was 4.1%, down from 5.0% in Q1 FY24.
6. How did ROAA change from Q1 FY24 to Q1 FY25?
ROAA decreased from 5.0% in Q1 FY24 to 4.1% in Q1 FY25.
7. What is the Return on Equity (ROAE) for Q1 FY25?
The Return on Equity (ROAE) for Q1 FY25 was 19.1%, which is lower than the 23.3% reported in Q1 FY24.
8. How did ROAE change year-on-year from Q1 FY24 to Q1 FY25?
ROAE fell from 23.3% in Q1 FY24 to 19.1% in Q1 FY25.
9. What is the Capital Adequacy Ratio for SBI Cards as of Q1 FY25?
The Capital Adequacy Ratio (CAR) stood at 20.6% as of Q1 FY25.
10. What is the Tier 1 capital ratio for SBI Cards in Q1 FY25?
The Tier 1 capital ratio was 16.8% for Q1 FY25.
11. How much did SBI Cards' interest income increase to in Q1 FY25?
Interest income increased to ₹2,243 crore in Q1 FY25, up by 24% compared to ₹1,804 crore in Q1 FY24.
12. What was the year-on-year increase in interest income for Q1 FY25?
Interest income rose by 24% from ₹1,804 crore in Q1 FY24 to ₹2,243 crore in Q1 FY25.
13. How did fees and commission income change in Q1 FY25?
Fees and commission income remained flat at ₹2,115 crore, showing no significant change compared to the previous quarter.
14. What were the total operating costs for SBI Cards in Q1 FY25?
The total operating costs decreased to ₹1,816 crore in Q1 FY25, down from ₹1,960 crore in Q1 FY24.
15. What percentage did operating costs decrease from Q1 FY24?
Operating costs decreased by 7% compared to ₹1,960 crore in Q1 FY24.
16. What was SBI Cards' total income for Q1 FY25?
The total income for Q1 FY25 was ₹4,483 crore, reflecting a stable performance with no significant change from the previous quarter.
17. How did the total income for Q1 FY25 compare to Q4 FY24?
Total income for Q1 FY25 was slightly higher by 0% compared to ₹4,475 crore in Q4 FY24.
18. What was the increase in impairment losses and bad debts for Q1 FY25?
Impairment losses and bad debts rose significantly by 53% to ₹1,101 crore in Q1 FY25.
19. What was the total balance sheet size of SBI Cards as of June 30, 2024?
The total balance sheet size was ₹59,513 crore as of June 30, 2024.
20. How much did total advances increase by June 30, 2024?
Total advances increased to ₹50,807 crore, up from ₹49,079 crore.
21. What was SBI Cards' net worth as of June 30, 2024?
The net worth stood at ₹12,752 crore as of June 30, 2024.
22. How did gross non-performing assets change year-on-year?
Gross non-performing assets increased to 3.06% of gross advances from 2.41% a year ago.
23. What are the net non-performing assets as of June 30, 2024?
Net non-performing assets increased to 1.11% from 0.89% a year earlier.
24. What was the Capital Adequacy Ratio (CRAR) for SBI Cards as of June 30, 2024?
The Capital Adequacy Ratio (CRAR) was 20.6%, down from 22.9% a year ago.
25. How did the CRAR change from the previous year?
The CRAR decreased from 22.9% to 20.6%.
26. What is the Tier 1 capital ratio as of June 30, 2024?
The Tier 1 capital ratio is 16.8%.
27. How did Tier 1 capital change from the previous year?
The Tier 1 capital ratio fell from 20.3% to 16.8%.
28. What rating did CRISIL give to SBI Cards' Long Term bonds?
CRISIL assigned a Long Term rating of AAA with a Stable outlook.
29. What is SBI Cards' Short Term rating from CRISIL?
The Short Term rating from CRISIL is A1+.
30. What rating did ICRA assign to SBI Cards' Long Term bonds?
ICRA assigned a Long Term rating of AAA with a Stable outlook.