Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q1 FY21 Earnings Presentation
31 slides from Sbi Cards & Payment Services's earnings presentation, Jul 20, 2020
Slide 1: Press Release: Financial Results for Quarter Ended June 30, 2020
PRESS RELEASE SBI Cards and Payment Services Limited (Formerly known as SBI Cards and Payment Services Private Limited) Financial Results for the Quarter Ended June 30, 2020 SBI Card PAT grows 14% to ₹393 Crore in Q1 FY21 vs ₹364 Crore in Q1 FY20 New Delhi, 20 July 2020: The Board of Directors of SB
Slide 2: Press Release: P&L, Balance Sheet, Capital Adequacy, Asset Quality
• Interest income increased by ₹363 Cr, or 34.6% to ₹1,412 Cr for Q1 FY21 from ₹1,049 Cr for Q1 FY20 • Income from fees and services at ₹668 Cr for Q1 FY21 vs ₹916 Cr for Q1 FY20. • Other income at ₹43 Cr for Q1 FY21 vs ₹236 Cr for Q1 FY20. ➢ Finance costs decreased by ₹27 Cr, or 9.0% to ₹275 Cr for
Slide 3: Rating, Summary Profit and Loss Statement and Balance Sheet
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 Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ FY20 Interest Income 1,049 1,348 1,412 35% 5% 4,841 Others 1,019 1,085 740 -27% -32% 4,435 Total Revenue from operati
Slide 4: About SBI Card
About SBI Card SBI Cards and Payment Services Limited (formerly known as SBI Cards and Payment Services Private Limited) (“SBI Card”) is a non-banking financial company that offer extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, trave
Slide 5: Investor Presentation Q1 FY21
Investor Presentation Q1 FY21 July 20th, 2020 1
Slide 6: Performance Highlights (Q1 FY21)
Performance Highlights (Q1 FY21) ▪ PAT ₹ 393 Cr, YoY 14% Profitable operations ▪ ROAA 6.3%, ROAE 28.3% ▪ Positive operating leverage; Cost to income 47.2% (Q1 FY20 53.6%) ▪ Market share*: Cards 18.3% (Q1 FY20 17.8%), Spends 19.6% (Q1 FY20 17.2%) Improving market share ▪ Growing above industry averag
Slide 7: Performance Highlights (Q1 FY21 Vs Q1 FY20)
Performance Highlights (Q1 FY21 Vs Q1 FY20) PAT ROAA ROAE CAR ₹ 393 Cr 6.3% 28.3% 24.4% Tier 1 20.1% 14% 11 bps 783 bps 551 bps [₹ 346 Cr] [6.5%] [36.1%] [18.9%] CIF SPENDS RECEIVABLES GNPA 1.06 Cr ₹ 19,085 Cr ₹ 23,330 Cr 1.35 % 20% 37% 10% 133 bps [0.88 Cr] [₹ 30,174 Cr] [₹ 21,231 C
Slide 8: Key Portfolio Trends
Key Portfolio Trends Growth Metrics Moratorium Impact & Collections New Accounts Corporate Spends Moratorium Accounts Moratorium Balances (‘000) (₹ Cr) (‘000) (₹ Cr) 10.5 6.0 74 2.6 22 41 0.9 19 6,669 7,083 181 1,244 1,207 1,251 80 556 677 27 1,471 150 Apr-20 May-20 Jun-20 Apr-20 May-20 Jun-20 Apr-2
Slide 9: Market Share
Market Share Steadily increasing our share of pie in the industry Cards in force Spends 18.3% 18.3% 19.6% 17.6% 16.7% 17.1% 17.9% 16.7% 15.3% 13.2% 14.8% 11.9% FY16 FY17 FY18 FY19 FY20 Apr'20 FY16 FY17 FY18 FY19 FY20 1M FY21 As per RBI report available till Apr’20 5
Slide 10: New Accounts and Cards-in-force
New Accounts and Cards-in-force New Accounts (‘000) Cards-in-force (‘000) 851 10,548 10,602 797 8,820 288 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Channel wise Split Channel wise Split 55.3% 61.8% 61.8% 61.4% 53.7% 58.0% 42.0% 46.3% 44.7% 38.2% 38.2% 38.6% Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 F
Slide 11: Portfolio Growth
Portfolio Growth Spends (₹ Cr) Receivables (₹ Cr) 32,429 24,141 30,174 23,330 19,085 21,231 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Spend per Card (₹ ‘000) Receivable per Avg Card (₹) 24,072 22,888 22,005 141 126 72 Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 30 day spend active rate % R
Slide 12: New Sourcing
Portfolio Insights Occupation Salaried Category Age profile By City Tier New Sourcing For Q1 FY21 21% 17% 25% 24% 32% 38% 47% 11% 79% 21% 51% 33% Salaried Self Employed Govt/PSU Cat A Cat B Under 30 31-45 >45 Tier 1 Tier 2 Tier 3 Others 0.87 1.26 0.92 1.17 As on 30th Jun 2020 15% 0.65 22% 10% 1.25 C
Slide 13: Retail Spend Insights
Retail Spend Insights Spends % Growth % Growth Online Retail Spend % Categories Online Point of Sale 56.1% 43.0% 44.9% 44.2% Category 1 36.6% Departmental Stores, Fuel, Health, 23% 32% Utilities, Education & Direct Marketing Category 2 Consumer durables, Apparel, Jewellery 21% 41% & Restaura
Slide 14: Financial Results
Figures in ₹ Cr Financial Results Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ FY20 PAT Total Income 2,304 2,510 2,196 -5% -13% 9,752 Finance Costs 302 334 275 -9% -18% 1,301 Credit Costs 397 838 485 22% -42% 1,940 YoY% 14% Operating Costs 1,073 1,226 907 -15% -26% 4,781 QoQ% 371% PBT 533 112 528 -1% 371% 1,730
Slide 15: Explaining Returns
Explaining Returns Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Interest Income 19.6% 21.0% 22.8% 318 bps 177 bps Fees and other Income 22.1% 16.9% 12.0% -1011 bps -491 bps Recoveries 1.3% 1.2% 0.6% -69 bps -57 bps Total Income 43.1% 39.1% 35.4% -763 bps -371 bps Finance Costs 5.6% 5.2% 4.4% -121 bps -78 bps Net
Slide 16: Revenue Growth
Figures in ₹ Cr Revenue Growth Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Composition Revenue from operations Revenue from Operations 2,068 2,433 2,152 4% -12% Q1 FY20 Q4 FY20 Q1 FY21 Other Income 236 77 43 -82% -44% Total Income 2,304 2,510 2,196 -5% -13% 18% 14% 20% Finance Costs 302 334 275 -9% -18% 12% Net
Slide 17: Capital Adequacy and Borrowings
Figures in ₹ Cr Capital Adequacy and Borrowings Cost of funds Borrowing Composition (Jun’20) 8.2% 7.5% 6.6% 28% Q1 FY20 Q4 FY20 Q1 FY21 57% Capital Adequacy Ratio 15% 24.4% 22.4% 17.7% 20.1% 18.9% 14.3% Bank Lines Commercial Papers Debentures Q1 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q4 FY20 Q1 FY21 Tier-1 To
Slide 18: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) Asset Liability Maturity profile – Jun’20 Inflows Outflows 6,311 4,860 ▪ Well matched ALM 3,334 3,056 2,983 2,784 2,757 2,555 2,200 2,333 2,254 2,661 2,389 ▪ ₹ 4,978 Cr (30%) of sanctioned bank 1,565 1,443 1,750 1,411 1,560 lines unutilized and available fo
Slide 19: Operating Costs
Figures in ₹ Cr Operating Costs Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Positive Operating Leverage Employee Cost 104 133 112 7% -16% YoY 11% QoQ 14% Depreciation 29 29 28 -5% -3% -4% CSR 0 17 6 -62% -12% -15% Other operating expenses 939 1,047 761 -19% -27% -26% Operating Costs 1,073 1,226 907 -15% -26% Co
Slide 20: Asset Quality
Figures in ₹ Cr Asset Quality Key highlights Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ Impairment and losses 397 838 485 22% -42% 2.68% GNPA 2.01% Gross Loss on Loans 396 838 485 22% -42% 1.35% Gross write off 240 351 405 69% 15% Q1 FY20 Q4 FY20 Q1 FY21 Provision 156 (3) 80 -49% -2760% COVID provisions 489 72
Slide 21: Shareholders Summary
Shareholders Summary Shareholding pattern, 30th Jun 2020 Top 20 Shareholders as on 30th Jun 20 S. No Name of Shareholder % 1 State Bank Of India 69.51 Resident Others 2 CA Rover Holdings 15.89 Individuals 2.03% 3 BNP Paribas Arbitrage – ODI 0.73 MF 5.74% 4 HDFC Trustee Company Ltd. A/C HDFC Balanced
Slide 22: P&L Summary
Figures in ₹ Cr P&L Summary P&L Q1 FY20 Q4 FY20 Q1 FY21 YoY QoQ FY20 Interest Income 1,049 1,348 1,412 35% 5% 4,841 Income from fees and services 916 959 668 -27% -30% 3,979 Service Charges 29 35 17 -41% -52% 118 Business development incentive income 72 87 54 -25% -38% 327 Insurance commission incom
Slide 23: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary Balance Sheet Jun19 Mar20 Jun20 YoY QoQ Assets Loans (Net) 20,457 22,812 21,921 7% -4% Cash & Bank Balances 578 676 593 3% -12% Other Financial Assets 296 276 313 6% 13% Total Financial Assets 21,330 23,764 22,828 7% -4% PP&E, Intangible & Right of use assets 38
Slide 24: Annexures
Annexures 20
Slide 25: Growth Drivers
Growth Drivers Technology • Digital Journey : Digital transformation of Growth all customer touchpoints • e - Sourcing : Focus on Digital Application through video • Remote Workforce: Expand remote Customer Engagement workforce through Secure Access • Self Service through Artificial Intelligence: KY
Slide 26: Brand Campaigns
Brand Campaigns Brand Film – ‘Ghar mein khushiyaan’ Contactless Film – ‘Tap into the new normal’ Objective: Build stronger bond with consumers, by empathizing & inspiring them during the Objective: Campaign created in collaboration with VISA to promote Contactless Payments times of COVID-19 Film Ide
Slide 27: Product Brief
Product Brief Core Cards Co-Brand Cards Banking Retail Travel Central Bank SBI Card Lifestyle Home Centre SBI Card Club Vistara SBI Card PRIME OLA Money SBI Card SBI Card Elite SBI Card PRIME Air India SBI Signature SimplyCLICK SBI Card SimplySAVE SBI Card City Union Bank SBI Card fbb Style Up SBI C
Slide 28: Awards and Recognitions
Awards and Recognitions Recent ▪ The Stevie Award for Project Shikhar under “Sales Distinction of the Year -Financial services in Silver Category“ at the 14th Annual Stevie Awards for Sales and Customer Services 2020, held at Las Vegas, Nevada USA. ▪ Iconic Brand of India 2020 at the Economic Times
Slide 29: Glossary
Glossary 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 Card-in-force credit cards. Spends Total card spends constitutes the agg
Slide 30: Disclaimer
Disclaimer 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 be a pros
Slide 31: Thank You
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