Sbi Cards & Payment Services Ltd · NSE:SBICARD

Sbi Cards & Payment Services — Q1 FY22 Earnings Presentation

29 slides from Sbi Cards & Payment Services's earnings presentation, Jul 23, 2021

  1. Slide 1: Regulation 30 disclosure cover letter to exchanges

    July 23, 2021 The BSE Limited The National Stock Exchange of India Corporate Relationship Department. Limited PJ. Towers. Exchange Plaza, Dalal Street, Fort Bandra-Kurla Complex. Mumbai - 400 001 Bandra (E), Mumbai - 400 051 SCRIP CODE: 543066 SYMBOL: SBICARD SECURITY: Equity Shares/Debentures SECUR

  2. Slide 2: Investor Presentation Q1 FY22

    Investor Presentation Q1 FY22 July 23, 2021 OSBI Card

  3. Slide 3: Key highlights

    Key highlights OSBI Card Strong Q1 FY22 performance despite 2nd pandemic wave PAT ₹ 305 Cr Building resilient business, sustaining volumes during lockdown 2.0 • 600K+ new accounts issued in Q1 FY22 amidst significant movement and business restrictions, 111% YoY • Retail spends at ₹ 27,000+ Cr despit

  4. Slide 4: Executive Summary Q1 FY22

    Figures in ₹ Cr Executive Summary Q1 FY22 O SBI Card PAT ₹ 305 Cr, Cost to income 52.5% (Q4 FY21 PAT ROAA ROAE Profitable operations 57.8%) 305 4.5% 18.7% Cards in force, Q1 FY22 @19.2% (Q4 FY21  23%/  74 %  180 bp/  196 bp  960 bp/  749 bp Improving Market @19.1%), Spends Q1 FY22 @18.9% (Q4 F

  5. Slide 5: Key Portfolio Trends

    Key Portfolio Trends OSBI Card New Accounts Corporate Spends (‘000) (₹ Cr) 791 609 6,080 6,162 288 245 218 2,445 147 2,477 1,932 1,786 Q1 FY21 Q4 FY21 Q1 FY22 Apr'21 May'21 Jun'21 Q1 FY21 Q4 FY21 Q1 FY22 Apr'21 May'21 Jun'21 Retail Spends Receivables (₹ Cr) (₹ Cr) 29,863 27,098 23,330 25,114 24,438

  6. Slide 6: Regulatory restrictions on MasterCard network

    Regulatory restrictions on MasterCard network OSBI Card No significant impact on company arising out of restrictions of new issuance on MasterCard network ✓ Proprietary cards issuance on multiple networks and fungible. Network restriction has no impact. ✓ Cobranded issuance on MasterCard network on

  7. Slide 7: Market Share

    Market Share OSBI Card #2 Player in Industry Cards and spends Cards in force Spends 19.1% 19.2% 19.4% 18.9% 18.3% 17.6% 17.9% 17.1% 16.7% 16.7% FY18 FY19 FY20 FY21 Q1 FY22 * FY18 FY19 FY20 FY21 Q1 FY22* *As per RBI report available till May’21/Adjusted for disclosure by a major bank to stock exchang

  8. Slide 8: New Accounts and Cards-in-force

    New Accounts and Cards-in-force OSBI Card New Accounts (‘000) Cards-in-force (‘000) 11,822 12,044 791 10,602 609 288 - Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Channel wise Split Channel wise Split 44.7% 45.6% 61.7% 57.3% 56.4% 56.9% 55.3% 54.4% 38.3% 42.7% 43.6% 43.1% Q1 FY21 Q4 FY21 Q1 FY22

  9. Slide 9: Portfolio Growth

    Portfolio Growth OSBI Card Spends (₹ Cr) Receivables (₹ Cr) 35,943 33,260 25,114 24,438 23,330 19,085 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 22,005 21,244 20,290 123 111 72 -Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 30 day spend acti

  10. Slide 10: Portfolio Insights

    Portfolio Insights OSBI Card Occupation Salaried Category Age profile By City Tier New Sourcing For Q1 FY22 17% 19% 16% 25% 32% 36% 10% 42% 83% 45% 32% 43% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 0.86 1.53 0.84 1.09 As on 30t

  11. Slide 11: Retail Spends Insights

    Retail Spends Insights OSBI Card I' "' % Growth^ Online Spend % Spends Categories Total Spends Online Spends POS Spends Category 1 54.9% Departmental Stores, Health, Utilities, 51.9%  1% 4%  7% Education & Direct Marketing 43.0% 44.9% 44.2% 36.6% Category 2 Consumer durables, Furnishing &  28% 

  12. Slide 12: Financial Results

    Figures in ₹ Cr Financial Results OSBI Card Q1 FY21 Q4 FY21 Q1 FY22 YoY QoQ Total Income 2,196 2,468 2,451 12% -1% PAT Finance Costs 275 244 229 -17% -6% Operating Costs 907 1,285 1,166 29% -9% Earnings before Credit Costs 1,014 939 1,056 4% 12% Credit Costs# 485 705 645 33% -8% 305 393 PBT 528 234

  13. Slide 13: Explaining Returns

    Explaining Returns OSBI Card Q1 FY21 Q4 FY21 Q1 FY22 YoY QoQ Interest Income 22.8% 16.0% 17.2% -561bps 126bps Fees and other Income 12.0% 18.4% 18.0% 604bps -34bps Recoveries 0.6% 2.0% 1.3% 70bps -72bps Total Income 35.4% 36.4% 36.6% 113bps 20bps Finance Costs 4.4% 3.6% 3.4% -102bps -17bps Operating

  14. Slide 14: Revenue

    Figures in ₹ Cr Revenue OSBI Card Composition Q1 FY21 Q4 FY21 Q1 FY22 YoY QoQ Revenue from operations Q1 FY21 Q4 FY21 Q1 FY22 Revenue from Operations# 2,154 2,319 2,362 10% 2% Other Income 42 149 89 114% -40% Total Income 2,196 2,468 2,451 12% -1% 14% 23% 23% Finance Costs* 275 244 229 -17% -6% 12%

  15. Slide 15: Borrowings & Capital Adequacy

    Borrowings & Capital Adequacy OSBI Card Cost of funds Leverage 6.5% 5.5% 4.0 4.0 3.7 5.2% Q1 FY21 Q4 FY21 Q1 FY22 Jun'20 Mar'21 Jun'21 Borrowing Composition Capital Adequacy Ratio Q1 FY20 Q4 FY21 Q1 FY22 ■ Tier - I ■ Tier - II 24.4% 24.8% 26.1% 28% 28% 34% 4.3% 3.9% 3.5% 20.1% 20.9% 22.6% 57% 12% 60

  16. Slide 16: Structural Liquidity (ALM)

    Figures in ₹ Cr Structural Liquidity (ALM) OSBI Card Asset Liability Maturity profile – Jun’21 ■ Inflows ■ Outflows 7679 4,246 ▪ Well matched ALM 3,592 3,764 3,928 3,327 3,081 2,950 2,769 2,508 ▪ ₹7,723 Cr (41%) of sanctioned bank lines 2,213 2,384 1,872 2,233 1,863 unutilized and available for draw

  17. Slide 17: Operating Costs

    Figures in ₹ Cr Operating Costs OSBI Card Q1 FY21 Q4 FY21 Q1 FY22 YoY QoQ Operating Leverage 9% (13)% Employee Cost 112 126 116 4% -8% 29% Depreciation 16% 28 34 33 17% -4% Other operating expenses Operating Costs Cost to Income % 767 907 47.2% 1,125 1,285 57.8% 1,017 1,166 52.5% 33% 29% -10% -9% 52

  18. Slide 18: Asset Quality

    Figures in ₹ Cr Asset Quality OSBI Card Q1 FY21 Q4 FY21 ..Q1 FY22 YoY QoQ Stage Wise NEA Impairment and losses 485 705 645 33% -8% Gross Credit Costs 485 705 645 33% -8% 23,330 25,114 24,438 Recoveries (38) (138) (88) 131% -36% 1.4% 5.0% 3.9% 12.5% 12.8% Net Credit Costs 447 567 558 25% -2% 29.7% Gr

  19. Slide 19: Four Phased ESG Strategy & Framework Implementation

    Four Phased ESG Strategy & Framework Implementation OSBI Card Baselining Sustainability Strategy Design Materiality Assessment Framework Implementation 1 2 3 4 ✓ Current ✓ Research Development of an • ✓ A detailed • conducted to • integrated • Sustainability integrated understand sustainability matu

  20. Slide 20: Creating Value With ESG (Q1-FY'22)

    Creating Value With ESG (Q1-FY’22) O SBI Card E ✓ Rs. 39 lakhs contribution towards Plastic waste ✓ Digitized 99%+ vendor ✓ Introduced ‘SBI Card WhatsApp Environmental management under our CSR program. Includes 21,113 Trees payments and outbound Connect’ for customers to help save segregation & recy

  21. Slide 21: Shareholders Summary

    Shareholders Summary OSBI Card Shareholding pattern, 30th June 2021 Top 20 Shareholders as on 30th June 2021 S. No Name of Shareholder % 1 State Bank Of India 69.35 Resident Others 2 CA Rover Holdings 6.50 Individuals 2.09% 3 BNP Paribas Arbitrage - ODI 0.90 MF 4.09% 4 Government Pension Fund Global

  22. Slide 22: Annexures

    Annexures

  23. Slide 23: P&L Summary

    Figures in ₹ Cr P&L Summary OSBI Card ............... ····•. P&L Q1 FY21 Q4 FY21 Q1 FY22 YoY QoQ FY21 Interest Income 1,414 1,082 1,153 -18% 7% 4,947 Income from fees and services 668 1,114 1,099 65% -1% 3,908 Service Charges 17 35 24 39% -32% 134 Business development incentive income 54 85 85 58% -

  24. Slide 24: Balance Sheet Summary

    Figures in ₹ Cr Balance Sheet Summary OSBI Card .................... Balance Sheet Jun’20 Mar’21 Jun’21 YoY QoQ Assets Loans (Net) 21,921 23,459 23,041 5% -2% Cash & Bank Balances 593 720 714 20% -1% Other Financial Assets 313 1,234 1,290 312% 5% Total Financial Assets 22,828 25,413 25,045 10% -1% P

  25. Slide 25: Recent developments

    Recent developments O SBI Card SBI Card Mobile App Campaign (Jun ‘21) Launch of Fabindia SBI Card SBI Card has collaborated with Fabindia, India’s largest retail platform ‘#GenNextKaApp’ for hand crafted products by Indian artisans, for an exclusive co- campaign executed branded contactless credit c

  26. Slide 26: Product Brief

    Product Brief O SBI Card Super Premium Core Cards Co-Brand Cards Banking Retail Travel PT< v1r n SBI c <-H (j lifestyle _,:> CI SBI Car d v1stmw nso1 card a:; · •>)) • rr - o c:in •>)) lr.j •>)) , l\.'r u:J::n n , ::i:J 11 c:r ., .a.qn1 I --- ---- - -- 7 i:-1 , - - , , 7 71 v,, ~v ~1111~1-1 V/SA VlJ

  27. Slide 27: Glossary

    Glossary OSBI Card Term Description New Accounts Sum of all accounts opened in a reporting period. Sum of all credit cards issued by us, including suspended credit cards that may be reactivated in future, net of cancelled and deactivated credit Card-in-force cards. Spends Total card spends constitut

  28. Slide 28: Disclaimer

    Disclaimer OSBI Card The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or purchase any securities of SBI Cards and Payment Services Limited in India or in any other jurisdiction. This presentation is not intended to

  29. Slide 29: Thank You

    Thank You ~JV ~;- , , 28 / ½i2

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