The Board of Directors of SBI Cards and Payment Services Ltd. approved the company’s results for the quarter and half year ended September 30, 2021, at their meeting held recently.

Performance Highlights Q2 FY22

· Total Revenue increased by 7% YoY to Rs. 2,695 crore for Q2 FY22
· Profit after tax increased by 67% YoY to Rs. 345 crore for Q2 FY22
· ROAA at 4.9% for Q2 FY22 vs. 3.4% for Q2 FY21
· ROAE at 20.1% for Q2 FY22 vs. 14.1% for Q2 FY21
· Capital Adequacy Ratio at 25.0%; Tier 1 at 21.8%

Key Metrics

· New accounts volume at 953k for Q2 FY22 up by 39% as compared to 688k for Q2 FY21
· Card-in-force grew by 14% to 1.26 crore as of Q2 FY22 vs. 1.10 crore as of Q2 FY21
· Retail spends grew by 41% to Rs. 35,070 crore in Q2 FY22 vs. Rs. 24,863 crore in Q2 FY21
· Corporate Spends grew by 80% to Rs. 8,491 crore in Q2 FY22 vs. Rs. 4,728 crore in Q2 FY21
· Market share H1 FY22 (available till Aug’21) – Card-in-force at 19.4% (FY21: 19.1%); Spends at 19.0% (FY21: 19.4%); Transactions at 20.0% (FY21: 19.7%)
· Receivables grew by 12% to Rs. 26,741 crore as of Q2 FY22 vs. Rs. 23,978 crore as of Q2 FY21
· GNPA at 3.36% as of Q2 FY22 vs. 7.46%* as of Q2 FY21; NNPA at 0.91% as of Q2 FY22 vs. 2.70%* as of Q2 FY21.
· New RBI RE added at Rs. 105 crore in Q2 FY22 as compared to Rs. 257 crore in Q1 FY22. Total RBI RE book including RBI RE 2.0 assets at 4% in Q2 FY22 vs. 9% in Q2 FY21.

Profit & Loss Account for the Quarter ended September 30, 2021

· Total revenue increased by Rs. 185 crore, or 7% to Rs. 2,695 crore for Q2 FY22 vs. Rs. 2,510 crore for Q2 FY21, increase is primarily due to higher Income from fees and services in Q2 FY22.
· Finance costs decreased by Rs. 10 crore, or 4% to Rs. 254 crore for Q2 FY22 from Rs. 264 crore for Q2 FY21.
· Total Operating cost increased by Rs. 277 crore, or 25% to Rs. 1,383 crore for Q2 FY22 from Rs. 1,106 crore for Q2 FY21, increase is due to higher business volumes in Q2 FY22.
· Earnings before credit costs at Rs. 1,058 crore for Q2 FY22 vs. Rs. 1,140 crore for Q2 FY21.
· Total Management overlay provision at Rs. 231 crore as on Sep’21. Impairment losses & bad debts expenses for Q2 FY22 at Rs. 594 crore vs. Rs. 862 crore for Q2 FY21.
· Profit before tax increased by Rs. 186 crore, or 67% to Rs. 464 crore for Q2 FY22 vs. Rs. 278 crore for Q2 FY21
· Profit after tax increased by Rs. 139 crore, or 67% to Rs. 345 crore for Q2 FY22 vs. Rs. 206 crore for Q2 FY21

Profit & Loss Account for the half year ended September 30, 2021

· For the half year ended September 30, 2021 total revenue increased by Rs. 441 crore, or 9% to Rs. 5,146 crore for H1 FY22 vs Rs. 4,706 crore for H1 FY21. Finance costs decreased by Rs. 56 crore, or 10% to Rs. 483 crore for H1 FY22 from Rs. 539 crore for H1 FY21. Total Operating cost at Rs. 2,550 crore for H1 FY22 from Rs. 2,013 crore for H1 FY21, increase is primarily due to higher business volumes. Pre-provision earnings at Rs. 2,114 crore for H1 FY22 from Rs. 2,154 crore for H1 FY21. Impairment losses & bad debts expenses for the period at Rs. 1,239 crore for H1 FY22 vs. Rs. 1,347 crore for H1 FY21. Resultant Profit before tax at Rs. 874 crore for H1 FY22 vs. Rs. 806 crore for H1 FY21. Profit after tax increased by Rs. 50 crore, or 8% to Rs. 650 crore for H1 FY22 vs. Rs. 599 crore for H1 FY21.

Balance Sheet as of September 30, 2021

· Total Balance Sheet size as of September 30, 2021 was Rs. 29,167 crore as against Rs. 27,013 crore as of March 31, 2021.
· Total Gross Advances (Credit card receivables) as of September 30, 2021 were Rs. 26,741 crore, as against Rs. 25,114 crore as of March 31, 2021.
· Net worth as of September 30, 2021 was Rs. 7,059 crore as against Rs. 6,374 crore as of March 31, 2021.

Asset Quality

The Gross non-performing assets were at 3.36% of gross advances as on September 30, 2021 as against 7.46%* as on September 30, 2020. Net non-performing assets were at 0.91% as against 2.70%* as on September 30, 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 September 30, 2021, company’s CRAR was 25.0% compared to 25.3% as of September 30, 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 21.8% as of September 30, 2021 compared to 21.0% as of September 30, 2020.

Rating

CRISIL Long Term – AAA/Stable
CRISIL Short Term – A1+
ICRA Long Term – AAA/Stable
ICRA Short Term – A1+