Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q1 FY23 Earnings Presentation
30 slides from Sbi Cards & Payment Services's earnings presentation, Jul 28, 2022
Slide 1: Regulation 30 disclosure letter to stock exchanges
July 28, 2022 The BSE Limited The National Stock Exchange of India Corporate Relationship Department. Limited P J. 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 SECU
Slide 2: Investor Presentation Q1 FY23
Investor Presentation Q1 FY23 July 28, 2022 OSBI Card
Slide 3: Q1 FY23 Business Highlights
Q1 FY23 Business Highlights OSBl card Strong business performance driving higher profits PAT ₹ 627 Cr, 106% YoY Sustained business growth • New accounts at 900K+, 48% YoY • Spends at ₹ 59,600 Cr+ 79% YoY • Receivables at ₹ 33,215 Cr, 36% YoY Robust financials • Total revenue at ₹ 3,263 Cr,
Slide 4: Executive Summary Q1 FY23 (vs Q1 FY22)
Figures in ₹ Cr Executive Summary Q1 FY23 (VS Q1 FY22) OSBl card Profitable PAT ROAA PAT ₹ 627 Cr, 106% YoY ROAE operations 627 7.0% 30.8% Cards in force 18.4% (FY22 18.7%), Spends 106%/ 8 % 247 bps/5 bps 1217 bps/44 bps Market Share 18.6% (FY22 19.2%), Transactions 18.7% (FY23)* (FY22 19.
Slide 5: Key Trends
Key Trends OSBl card New Accounts Corporate Spends (‘000) (₹ Cr) 12,980 14,183 12,263 8,491 953 1,008 1,002 902 6,162 609 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Receivables ■ Transactor ■ Revolver ■ EMI ■ RBI RE Retail Spends (₹ Cr) (₹ Cr) 24,438 26,741 29,12
Slide 6: Market Share
Market Share OSBl card Dominant credit card player in India Cards in force Spends Transactions 18.3% 19.1% 18.7% 18.4% 17.9% 19.4% 19.2% 18.6% 19.7% 19.8% 18.7% 17.7% FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23* *As per RBI report available till May’22 5
Slide 7: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBl card New Accounts (‘000) Cards-in-force (‘000) 902 13,767 14,316 1,002 12,044 609 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Channel wise Split Channel wise Split 61.7% 53.8% 67.8% 56.9% 56.8% 57.8% 38.3% 46.2% 32.2% 43.1% 43.2% 42.2% Q1 FY22 Q4 FY22 Q1 FY23
Slide 8: Portfolio Growth
Portfolio Growth OSBl card Spends (₹ Cr) Receivables (₹ Cr) 54,134 59,671 31,281 33,215 24,438 33,260 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 20,290 22,722 23,202 111 161 170 -Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 30 day spend act
Slide 9: Portfolio Insights
Portfolio Insights OSBl card Occupation Salaried Category Age profile By City Tier New Sourcing For Q1 FY23 18% 20% 26% 35% 35% 31% 36% 74% 30% 47% 20% 29% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 1.11 1.30 0.85 1.19 As on 30t
Slide 10: Retail Spends Insights
Retail Spends Insights OSBl card -------- ' /' ' Q1 FY23 I / I % Growth^ Vs Online Spend % Spends Categories Total Spends POS Spends Online Spends DJF’20* Category 1 54.4% 55.2% Departmental Stores, Health, Utilities, 51.9% Education & Direct Marketing A 7% A 6% A 8% 44.9% 44.2% Category 2 Consume
Slide 11: Financial Results
Figures in ₹ Cr Financial Results OSBl card Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Total Revenue 2,451 3,016 3,263 8% 33% PAT Finance Costs 229 267 308 15% 35% Operating Costs 1,166 1,577 1,663 5% 43% Earnings before Credit Costs 1,056 1,172 1,291 10% 22% Credit Costs 645 393 450 15% -30% 581 627 PBT 410 7
Slide 12: Explaining Returns
Explaining Returns OSBl card Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Interest Income 17.2% 15.2% 15.5% 35bps -169bps Fees and other Income 18.0% 19.1% 19.3% 24bps 128bps Recoveries 1.3% 1.9% 1.7% -23bps 34bps Total Revenue 36.6% 36.1% 36.5% 36bps -6bps Finance Costs 3.4% 3.2% 3.5% 25bps 3bps Net Revenue 33.
Slide 13: Revenue
Figures in ₹ Cr Revenue OSBl card Q1 FY22 Q4 FY22 .. ' Q1 FY23 QoQ YoY Composition Revenue from operations Revenue from Operations 2,362 2,850 3,100 9% 31% Q1 FY22 Q4 FY22 Q1 FY23 Other Income 89 166 163 -2% 83% Total Revenue 2,451 3,016 3,263 8% 33% Finance Costs 229 267 308 15% 35% 21% 23% 22% 44%
Slide 14: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy OSBl card Cost of funds Leverage 5.2% 4.9% 5.1% 3.7 4.1 3.9 Q1 FY21 Q4 FY22 Q1 FY23 Jun'21 Mar'22 Jun'22 Borrowing Composition Capital Adequacy Ratio Jun’21 Mar’22 Jun’22 ■ Tier - I ■ Tier - II 2% 2% 26.1% 23.8% 24.7% 3.5% 2.8% 3.2% 33% 32% 34% 22.6% 21.0% 21.5% 58% 62%
Slide 15: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) OSBl card Asset Liability Maturity profile – Jun’22 ■ Inflows • Outflows 9,548 ▪ Well matched ALM 5,239 5,496 5,421 5,621 5,618 ▪ ₹3,659 Cr (18%) of sanctioned bank lines 4,353 4,301 unutilized and available for draw down as at 3,479 4,104 3,149 3,152 3,182
Slide 16: Operating Costs
Figures in ₹ Cr Operating Costs OSBl card Operating Leverage Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY 2% (10)% Employee Cost 116 121 139 15% 19% Depreciation 33 39 39 0% 20% Fees and commission expense$ Other operating expenses Operating Costs 178 839 1,166 302 1,115 1,577 331 1,155 1,663 10% 4% 5% 86% 38% 4
Slide 17: Asset Quality
Figures in ₹ Cr Asset Quality OSBl card Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Stage Wise Receivables Impairment and losses 645 393 450 15% -30% Gross Credit Costs 24,438 31,281 33,215 645 393 448 14% -31% 2.2% 2.2% Recoveries (88) (157) (148) -6% 68% 3.9% 8.5% 8.3% Net Credit Costs 557 236 300 27% -46% 12
Slide 18: Investing for Digital Transformation
Investing for Digital Transformation OSBl card (--------------------------------------- ' ,~ ------------------------- ,,-------------,, '\ I I Instant card issuance for ETB ' I I ~ I I I Customer ✓ Faster issuance and activation I (existing to SBI Card) customers I I I I , _________________________
Slide 19: Progress On Our ESG Strategy
Progress On Our ESG Strategy OSBl card Maturity evaluated; Dow Jones Sustainability Index (DJSI); Peer assessment done Sustainalytics; FTSE Russell In Progress Baselining > Materiality Assessment > Participation in ESG Index > Strategy Design > Strategy Implementation Stakeholder consultations; Revi
Slide 20: Our ESG Efforts
Our ESG Efforts OSBl card D ENVIRONMENTAL SOCIAL lfJ _o GOVERNANCE E A CE Climate Change Employee Learning & Development Corporate Governance 3.5 Lac+ Trees Saved Empowered 400+ employees ESG added in Terms Of Reference of (From FY’18 to Q1’23) for their career advancement by upskilling them via Dat
Slide 21: Shareholders Summary
Shareholders Summary OSBl card Shareholding pattern, 30th June 2022 Top 20 Shareholders as on 30th June 2022 S. No Name of Shareholder % 1 State Bank Of India 69.19 2 Life Insurance Corporation of India 1.74 Others Insurance 3 Life Insurance Corporation Of India - P&GS Fund 1.69 Resident 1.34% 4.42%
Slide 22: Annexures
Annexures OSBI Card
Slide 23: P&L Summary
Figures in ₹ Cr P&L Summary OSBl card ................ ····. P&L Q1 FY22 Q4 FY22 Q1 FY23 QoQ YoY Interest Income 1,153 1,266 1,387 10% 20% Fees and commission income 1,099 1,427 1,538 8% 40% Service Charges 24 35 35 -1% 46% Business development incentive income 85 121 140 15% 65% Insurance commissio
Slide 24: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary OSBl card Balance Sheet Mar’22 Jun’22 Variance% Assets Loans (Net) 30,187 32,079 6% Cash & Bank Balances 1,106 1,053 -5% Investments 1,297 1,555 20% Other Financial Assets 382 509 33% Total Financial Assets 32,973 35,196 7% PP&E, Intangible & Right of use assets
Slide 25: Recent Developments
Recent Developments OSBl card Launch of Aditya Birla SBI Card Akshaya Tritiya Offers Campaign ose1 card /'!""M..,.,,1~" SBI Card has partnered with Aditya Birla Finance Print ad campaign to promote Akshaya Ltd. (ABFL), to launch ‘Aditya Birla SBI Card’. Tritiya Offers was launched in May 2022. The r
Slide 26: SBI Card SPRINT
SBI Card SPRINT OSBl card A seamless digital application process SPRIIVT for New To SBIC customers The process enables customers to complete their credit card application in a few simple steps and get their virtual card on their phones instantly. Wing-to-wing Digital journey with an Instant e-Card w
Slide 27: Product Brief
Product Brief OSBl card SUPER PREMIUM CORE CARDS CO-BRAND CARDS RETAIL ,: ,'ff:,-: · I!,,:.' ,~ , • O SOi - O SOi t•fl">l,.U.• A O SOi .......... .--.~i:t OSOi • • ~ • - 11'it::'f'I •_' .n,.,-, n..., 110.,, I • •>I) .., 11 ~ :n ni:::i "J ,,cT, non, •>I) ■ o)} w >l)) -- - - - -r ~·"-- - 7C ' ·.. VISA
Slide 28: Glossary
Glossary OSBl 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 Card-in-force deactivated credit cards. Spends Total card spends constitut
Slide 29: Disclaimer
Disclaimer OSBl 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
Slide 30: Thank You
Thank You OSBl card 29
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