Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q4 FY22 Earnings Presentation
31 slides from Sbi Cards & Payment Services's earnings presentation, Apr 29, 2022
Slide 1: Stock exchange disclosure letter under Regulation 30
April 29, 2022 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 SECU
Slide 2: Investor Presentation Q4 FY22
Investor Presentation Q4 FY22 April 29, 2022 OSBI Card
Slide 3: Q4 FY22 Key Highlights
Q4 FY22 Key Highlights OSBl card Strong business performance driving higher profits PAT ₹ 581 Cr, 231% YoY Sustained business growth • New accounts at 1MN+, 27% YoY • Spends at ₹ 54,100 Cr+ 51% YoY o Retail spends at ₹ 41,800 Cr+, 40% YoY ;Corporate Spends at ₹ 12,200 Cr+ 102% YoY • Receiv
Slide 4: Executive Summary Q4 FY22 (vs Q4 FY21)
Figures in ₹ Cr Executive Summary Q4 FY22 (VS Q4 FY21) OSBl card Profitable PAT ROAA PAT ₹ 581 Cr, 231% YoY ROAE operations 581 7.0% 30.4% Cards in force 18.9% (FY21 19.1%), Spends 231%/ 51 % 438 bps/192 bps 1921bps/914 bps Market Share 19.2% (FY21 19.4%), Transactions 19.8% (FY22)* (FY21
Slide 5: Executive Summary FY22 (vs FY21)
Figures in ₹ Cr Executive Summary FY22 (VS FY21) OSBl card Profitable PAT ROAA PAT ₹ 1,616 Cr, 64% YoY ROAE operations 1,616 5.4% 22.8% Cards in force 18.9% (FY21 19.1%), Spends 64% 156 bps 621 bps Market Share 19.2% (FY21 19.4%), Transactions 19.8% (FY22)* (FY21 19.7%) CAR Receivables NNPA
Slide 6: Delivered Impressive 12M Results
Delivered Impressive 12M Results OSBl card New Accounts Retail Spends Receivables + 33% + 43% + 25% Business Growth 2,685K → 3,572K 102,414 Cr → 146,457 Cr 25,114 Cr → 31,281 Cr FY21 FY22 FY21 FY22 Mar 21 Mar 22 Total Income EBCC PAT Strong net income + 16% + 10% + 64% growth 9,714 Cr → 11,302 Cr 4,
Slide 7: Key Trends
Key Trends OSBl card New Accounts Corporate Spends (‘000) (₹ Cr) 12,980 12,263 4,567 1,008 1,002 3,868 3,828 791 383 6,080 286 333 Q4 FY21 Q3 FY22 Q4 FY22 Jan'22 Feb'22 Mar'22 Q4 FY21 Q3 FY22 Q4 FY22 Jan'22 Feb'22 Mar'22 Retail Spends Receivables (₹ Cr) (₹ Cr) 42,417 41,872 25,114 29,129 31,281 29,8
Slide 8: Market Share
Market Share OSBl card Dominant credit card player in India Cards in force Spends Transactions 19.4% 19.2% 19.8% 19.7% 19.1% 18.9% 18.3% 17.9% 17.6% 17.7% 17.1% 15.8% FY19 FY20 FY21 FY22 * FY19 FY20 FY21 FY22* FY19 FY20 FY21 FY22* *As per RBI report available till Feb’22 7
Slide 9: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBl card New Accounts (‘000) Cards-in-force (‘000) 1,002 13,161 13,767 1,008 11,822 791 - Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Channel wise Split Channel wise Split 45.6% 49.3% 53.8% 56.4% 56.7% 56.8% 54.4% 50.7% 46.2% 43.6% 43.3% 43.2% Q4 FY21 Q3 FY22 Q4
Slide 10: Portfolio Growth
Portfolio Growth OSBl card Spends (₹ Cr) Receivables (₹ Cr) 55,397 54,134 25,114 29,129 31,281 35,943 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 21,244 22,133 22,722 123 172 161 Q4 FY21 Q3 FY22 Q4 FY22 Q4 FY21 Q3 FY22 Q4 FY22 30 day spend acti
Slide 11: Portfolio Insights
Portfolio Insights OSBl card Occupation Salaried Category Age profile By City Tier New Sourcing For Q4 FY22 24% 20% 21% 33% 29% 34% 38% 76% 30% 20% 29% 47% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 1.11 1.33 0.83 As on 31st Mar
Slide 12: Retail Spends Insights
Retail Spends Insights OSBl card I' -------- ' ' Q4 FY22 I / I % Growth^ Vs Online Spend % Spends Categories Total Spends POS Spends Online Spends DJF’20* Category 1 43.0% 44.9% 44.2% 51.9% 54.4% Departmental Stores, Health, Utilities, Education & Direct Marketing • 24% .... 4% • 35% Category 2 Co
Slide 13: Financial Results
Figures in ₹ Cr Financial Results OSBl card Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY PAT Total Revenue* 2,468 3,140 3,016 22% 9,714 11,302 16% Finance Costs 244 277 267 10% 1,043 1,027 -2% Operating Costs 1,285 1,719 1,577 23% 4,646 5,844 26% Earnings before Credit Costs 939 1,144 1,172 25% 4,024 4
Slide 14: Explaining Returns
Explaining Returns OSBl card Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY Interest Income 15.9% 16.6% 15.2% -77bps 19.3% 16.3% -303bps Fees and other Income 18.4% 22.5% 19.1% 71bps 17.0% 19.8% 279bps Recoveries 2.0% 1.8% 1.9% -15bps 1.6% 1.7% 13bps Total Revenue 36.4% 41.0% 36.1% -22bps 37.9% 37.8% -10
Slide 15: Revenue
Figures in ₹ Cr Revenue OSBl card Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY Composition Revenue from operations Revenue from Operations 2,319 2,889 2,850 23% 9,296 10,677 15% Q4 FY21 Q3 FY22 Q4 FY22 Other Income$ 149 250 166 11% 417 624 50% Total Revenue 2,468 3,140 3,016 22% 9,714 11,302 16% Financ
Slide 16: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy OSBl card Cost of funds Leverage 5.5% 5.4% 4.9% 4.0 3.9 4.1 Q4 FY21 Q3 FY22 Q4 FY22 Mar'21 Dec'21 Mar'22 Borrowing Composition Capital Adequacy Ratio Mar’21 Dec’21 Mar’22 ■ Tier - I ■ Tier - II 2% 24.8% 24.2% 23.8% 28% 33% 3.9% 2.9% 2.8% 36% 20.9% 21.3% 21.0% 60% 60% 62
Slide 17: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) OSBl card Asset Liability Maturity profile – Mar’22 ■ Inflows ■ Outflows 8,738 ▪ Well matched ALM 5,175 5,272 4,910 ▪ ₹5,005 Cr (25%) of sanctioned bank lines 4,432 4,504 4,327 3,987 3,274 3,617 3,476 unutilized and available for draw down as at 2,768 2,945
Slide 18: Operating Costs
Figures in ₹ Cr Operating Costs OSBl card Operating Leverage Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY 4% 1% Employee Cost 126 121 121 -4% 492 473 -4% Depreciation Fees and commission expense$ Other operating expenses Operating Costs 34 179 946 1,285 37 311 1,250 1,719 39 302 1,115 1,577 15% 69% 18%
Slide 19: Asset Quality
Figures in ₹ Cr Asset Quality OSBl card Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY Stage Wise NEA Impairment and losses 705 625 393 -44% 2,700 2,258 -16% Gross Credit Costs 705 625 393 -44% 2,700 2,258 -16% 25,114 29,129 31,281 Recoveries (138) (140) (157) 14% (398) (503) 26% 2.4% 2.2% 5.0% 9.4% 8.5%
Slide 20: Investing for Digital Transformation
Investing for Digital Transformation OSBl card (--------------------------------------- ' ,~ ------------------------- ,,-------------,, '\ I I Instant card issuance for ETB ' I I ~ I I ✓ Faster issuance and activation I Customer I (existing to SBIC) customers I I ✓ Cost savings and efficiencies I I
Slide 21: Our Sustainability Direction
.j :, • ' • :. • st ' Our Sustainability Direction OSBl card ' 1 " ~ • - • / ' .(. J , l ~ ,J l ' -. •"'> • - ~ .' . ~ '\. ,, , . . :: . . ' ' I\, .°'' ' ' ,,• ' I , Our Purpose Our Approach to ESG Transform in a sustainable and inclusive ▪ Embracing our responsibility to help address ESG Index Scor
Slide 22: Creating Value with ESG
.j :, • ' • :. • st ' Creating Value with ESG OSBl card ' 1 " ~ • - • / ' .(. J , l ~ ,J l ' -. •"'> • - ~ .' . ~ '\. ,, , . . :: . . ' ' I\, .°'' ' ' ,,• ' I , 3.1 Lac+ Trees Saved Supported Material Recycling Facility (MRF) Serving Communities (From FY’18 to FY’22) setup Environmental Through pape
Slide 23: Shareholders Summary
Shareholders Summary OSBl card Shareholding pattern, 31st March 2022 Top 20 Shareholders as on 31st March 2022 S. No Name of Shareholder % 1 State Bank Of India 69.20 Others 2 CA Rover Holdings 3.09 Resident Insurance 1.17% 3 Life Insurance Corporation Of India 1.74 Individuals 3.94% 4 Life Insuranc
Slide 24: Annexures
Annexures OSBI Card
Slide 25: P&L Summary
Figures in ₹ Cr P&L Summary OSBl card ... ..... ..... .. ..... ................ ···•. P&L Q4 FY21 Q3 FY22 Q4 FY22 YoY FY21 FY22 YoY Interest Income 1,082 1,273 1,266 17% 4,947 4,866 -2% Fees and commission income 1,114 1,457 1,427 28% 3,908 5,227 34% Service Charges 35 37 35 1% 134 132 -1% Business
Slide 26: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary OSBl card Balance Sheet Mar’21 Mar’22 Variance% Assets Loans (Net) 23,459 30,187 29% Cash & Bank Balances 720 1,106 54% Investments 958 1,297 35% Other Financial Assets 276 382 38% Total Financial Assets 25,413 32,973 30% PP&E, Intangible & Right of use assets 3
Slide 27: Recent Developments
Recent Developments OSBl card Launch of Nature’s Basket SBI Card SBI Card Pulse Digital Campaign 1_.x,atdicaefflil......,,...-m ■ he"""'-bmqoleAna1<>""""'" ....,..,...,~~fflJSIMCM:IPUI..S[..,.,. S.Can:l pow.- Launch Date: 22 Mar ’22 ,-..m~beno:fi!I. SBI Card has partnered with ‘Nature’s Basket’, SBI
Slide 28: Product Brief
Product Brief OSBl card Super Premium Core Cards Co-Brand Cards Banking Retail Travel PT< v1r n SBI c ._H (j lifestyle _,:> O SBI Ca r d v1stmw n so1 card a:; · •>)) • rr - o c:in •>)) lr.j •>)) , l\.'r u:J::n n, :J:J 11 c:r ., .a.qn1 I --- ---- - -- 7 i:-1 , - - , , 7 71 v,, ~v ~1111~1-1 V/SA VlJAV
Slide 29: 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 30: 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 31: Thank You
Thank You OSBl card 30
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