Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q3 FY21 Earnings Presentation
33 slides from Sbi Cards & Payment Services's earnings presentation, Jan 21, 2021
Slide 1: Exchange filing cover letter
January 21, 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 SE
Slide 2: Press Release: Financial Results Q3 and Nine Months FY21
OSBl card PRESS RELEASE SBI Cards and Payment Services Limited (Formerly known as SBI Cards and Payment Services Private Limited) Financial Results for the Quarter and Nine Months Ended December 31, 2020 SBI Card Business Reaches Pre-Covid Levels The Board of Directors of SBI Cards and Payment Servi
Slide 3: Press Release: P&L, Balance Sheet, Asset Quality
OSBl card ➢ Total Operating cost increased by ₹89 Cr, or 7.1% to ₹1,348 Cr for Q3 FY21 from ₹1,259 Cr for Q3 FY20. ➢ Earnings before credit costs at ₹931 Cr for Q3 FY21 vs ₹959 Cr for Q3 FY20. ➢ Total Management overlay provision at ₹1,113 Cr as on Dec’20 vs ₹758 Cr as on Sep’20. Impairment losses &
Slide 4: Press Release: Capital, Rating, Summary P&L
OSBl card 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 19.8.% as of December 31, 2020 compared to 15.4% as of December 31, 2019. Rating CRISIL Long Term - AAA/Stable CRISIL Short Term - A1+ ICRA Long Term -
Slide 5: About SBI Card
OSBl 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 offers extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rew
Slide 6: Investor Presentation Q3 FY21 / 9M FY21
Investor Presentation Q3 FY21 / 9M FY21 Jan 21st, 2021 OSBI Card 1
Slide 7: Key Highlights
Key Highlights OSBI Card Strong Business Recovery: • Retail Spends crossed pre-Covid level. Q3 FY21 daily average at ~125% vs Q2 FY21; at ~117% vs Q4 FY20 • New Accounts sourcing Q3 FY21 daily average : at ~134% vs Q2 FY21; at ~107% vs Q4 FY20 Market share and Earnings: • Increase market share: Card
Slide 8: Performance Highlights Q3 FY21
Figures in ₹ Cr Performance Highlights Q3 FY21 (Vs Q3 FY20) OSBI Card PAT ₹ 210 Cr, Cost to income 59.1% (Q3 FY20 PAT ROAA ROAE Profitable operations 56.7%) 210 3.3% 13.8% 52% 364 bp 2390 bp Improving Market Cards 18.8% (Q3 FY20 18.1%), Spends 20.2% (Q3 [435] [6.9%] [37.7%] Share* FY20 17.8%)
Slide 9: Performance Highlights 9M FY21
Figures in ₹ Cr Performance Highlights 9M FY21 (Vs 9M FY20) O SBI Card Profitable Operations PAT ₹ 809 Cr, Cost to income 52.1% (9M FY20 PAT ROAA ROAE 56.7%) 809 4.3% 18.5% 30% 237 bp 1815 bp Improving Market Cards 18.8% (Q3 FY20 18.1%), Spends 20.1% (9M [1,161] [6.6%] [36.7%] Share* FY20 17.8
Slide 10: Key Portfolio Trends
Key Portfolio Trends OSBI Card New Accounts Corporate Spends (‘000) (₹ Cr) 10.5 74 9.4 ==.------------------------------. 7.5 10.0 &;--------------------------- 73 67 3.2 27 51 6,718 851 918 6,056 688 4,728 288 2,477 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Retail Spends Recei
Slide 11: Market Share
Market Share OSBI Card Steadily increasing our share of pie in the industry Cards in force Spends 18.5% 18.8% 18.8% 19.9% 20.1% 20.2% 20.1% 18.3% 17.6% 17.9% 16.7% 17.1% 16.7% I I FY18 FY19 FY20 Jun'20 Sep'20 Nov'20 I I FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 FY21 QTD Nov YTD Nov As per RBI report avail
Slide 12: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBI Card New Accounts (‘000) Cards-in-force (‘000) 848 918 11,490 688 11,009 10,032 Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 Channel wise Split Channel wise Split 58.4% 56.7% 56.6% 50.8% 41.8% 48.1% 49.2% 58.2% 51.9% 41.6% 43.3% 43.4% Q3 FY20 Q2 FY21 Q3 FY21 Q
Slide 13: Portfolio Growth
Portfolio Growth OSBI Card Spends (₹ Cr) Receivables (₹ Cr) 37,797 25,749 35,135 24,776 23,978 29,590 Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 24,696 144 110 134 22,409 21,781 Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21 30 day spend acti
Slide 14: Portfolio Insights
Portfolio Insights OSBI Card Occupation Salaried Category Age profile By City Tier New Sourcing For Q3 FY21 21% 15% 24% 33% 31% 38% 12% 42% 76% 29% 48% 31% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 0.74 1.42 1.12 1.03 As on 31s
Slide 15: Retail Spends Insights
Retail Spends Insights O SBI Card , "I Spends % Growth Online % Growth Point of Sale Online Spend % Categories Q3 FY21 Q2 FY21 Q3 FY21 Q2 FY21 Category 1 53.4% Departmental Stores, Fuel, 43% 28% 7% 23% 44.9% 44.2% Health, Utilities, Education & 43.0% Direct Marketing 36.6% Category 2 Consume
Slide 16: Financial Results
Figures in ₹ Cr Financial Results OSBI Card I Q3 FY20 Q2 FY21 Q3 FY21 YoY 9M FY20 9M FY21 YoY Total Income 2,563 2,513 2,540 -1% 7,242 7,245 0% PAT Finance Costs 345 264 261 -24% 967 800 -17% Operating Costs 1,259 1,109 1,348 7% 3,556 3,361 -5% Earnings before Credit Costs 959 1,140 931 -3% 2,720 3,
Slide 17: Explaining Returns
Explaining Returns OSBI Card Q3 FY20 Q2 FY21 Q3 FY21 YoY 9M FY20 9M FY21 YoY Interest Income 20.3% 21.0% 18.1% -220bps 20.0% 20.3% 35bps Fees and other Income 19.0% 18.8% 19.3% 32bps 20.1% 16.5% -361bps Recoveries 1.3% 1.6% 1.9% 63bps 1.3% 1.4% 5bps Total Income 40.6% 41.4% 39.4% -125bps 41.4% 38.2%
Slide 18: Revenue Growth
Figures in ₹ Cr Revenue Growth OSBI Card Composition Q3 FY20 Q2 FY21 Q3 FY21 YoY 9M FY20 9M FY21 YoY Revenue from operations 9M FY20 9M FY21 Revenue from Operations 2,479 2,413 2,403 -3% 6,843 6,969 2% Other Income 84 99 137 62% 399 277 -31% 20% 19% Total Income 2,563 2,513 2,540 -1% 7,242 7,245 0%
Slide 19: Capital Adequacy and Borrowings
Capital Adequacy and Borrowings OSBI Card Cost of funds Borrowing Composition (Dec’20) 7.6% 6.6% 6.1% 24% Q3 FY20 Q2 FY21 Q3 FY21 56% Capital Adequacy Ratio 20% 24.4% 25.3% 23.7% 19.2% 4.3% 4.3% 3.9% 3.8% 20.1% 21.0% 19.8% ■ Bank Lines ■ Commercial Papers ■ Debentures 15.4% Dec'19 Jun'20 Sep'20 Dec'
Slide 20: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) OSBI Card Asset Liability Maturity profile – Dec’20 ■ Inflows • Outflows 6,953 3,954 ▪ Well matched ALM 3,775 3,602 3,550 3,348 3,042 3,056 3,085 3,240 ▪ ₹5,348 Cr (28%) of sanctioned bank lines 2,406 2,395 2,304 2,321 unutilized and available for draw down
Slide 21: Operating Costs
Figures in ₹ Cr Operating Costs OSBI Card Q3 FY20 Q2 FY21 Q3 FY21 YoY 9M FY20 9M FY21 YoY Operating Leverage Employee Cost 119 122 131 11% 327 365 12% 8% (4)% Depreciation 27 30 31 17% 75 89 19% CSR Other operating expenses Operating Costs 2 1,111 1,259 2 955 1,109 0 1,185 1,348 -74% 7% 7% 3 3,150 3
Slide 22: Asset Quality
Figures in ₹ Cr Asset Quality OSBI Card Q3 FY20 Q2 FY21 Q3 FY21 YoY I 9M FY20 9M FY21 YoY Impairment and losses 376 862 648 72% 1,102 1,995 81% NPA Gross Loss on Loans 376 862 648 72% 1,100 1,995 81% Gross Write off 292 218 648 122% 874 1,271 45% NNPA 0.83% 0.43% 1.52% 0.56% Provisions 84 375 (356)
Slide 23: SBI Card driving market expansion
SBI Card driving market expansion OSBl card New to Credit New to Credit Cards Tier 3 + Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 18.7% 26.5% 23.8% 26.0% New Acquisition 41.7% 57.3% 42.7% 74.0% 76.2% 58.3% 81.3% 73.5% ■ New to Credit ■ Others New to Credit Card Others ■ Tier 3+ ■ Others ■ ■ :=:
Slide 24: Shareholders Summary
Shareholders Summary OSBI Card Shareholding pattern, 31st Dec 2020 Top 20 Shareholders as on 31st Dec 2020 S. No Name of Shareholder % 1 State Bank Of India 69.39 Resident Others 2 CA Rover Holdings 15.86 MF Individuals 1.89% 3 BNP Paribas Arbitrage - ODI 0.94 2.86% 4.15% 4 Government Pension Fund G
Slide 25: ESG at SBI Card
ESG at SBI Card Identify & address ESG Risk & Opportunities | Incorporate ESG in our decisions OSBI Card Environment Business Model Corporate Social Capital Human Capital Community Employee Welfare ✓ 18.66 Lac medical equipment donated Enhancing employee value proposition ranging from Oxygenator, CO
Slide 26: P&L Summary
Figures in ₹ Cr P&L Summary OSBI Card ............... ····•. ............... ····•. P&L Q3 FY20 Q2 FY21 Q3 FY21 YoY 9M FY20 9M FY21 YoY Interest Income 1,282 1,275 1,168 -9% 3,493 3,856 10% Income from fees and services 1,081 1,019 1,107 2% 3,019 2,794 -7% Service Charges 30 38 44 47% 82 99 20% Busi
Slide 27: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary OSBI Card ................ ····. Balance Sheet Dec19 Dec20 YoY Mar20 Assets Loans (Net) 23,933 23,696 -1% 22,812 Cash & Bank Balances 508 921 81% 676 Other Financial Assets 208 1,103 430% 276 Total Financial Assets 24,649 25,720 4% 23,764 PP&E, Intangible & Righ
Slide 28: Annexures
Annexures 23
Slide 29: Recent developments
Recent developments O SBI Card • SBI Card partnered with Paytm to launch Paytm SBI Card and Paytm SBI Card SELECT. Contactless Ad Campaign (Sept - Oct ‘20) Designed for the new age, digitally savvy customers, Paytm SBI Card and Paytm SBI Card SELECT will bring customers rewards and savings while usi
Slide 30: Product Brief
Product Brief O SBI Card Core Cards Co-Brand Cards Banking Retail Travel O SBI ( df cJ Pn fvff ~-= =='""-';.~-M.. O SBI 'L lifestyle .J:, 0 SOI Cara v1staRil n sa1 card &j ' >))) .; ' -•· - 1))) ( •• '.,, • >!)) ~ >I)) l1"'.J:::>1 n, ::J:J II c:r "J Aqn1 --- - --- -- - --- ... ' ·~- .. ~ ~-'¥1-»;:i.
Slide 31: 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
Slide 32: 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
Slide 33: Thank You
Thank You ~JV ~;- , , 28 / ½i2
SBI Cards and Payment Services — Q3 FY21 Earnings Presentation on 6ix