Sbi Cards & Payment Services Ltd · NSE:SBICARD

Sbi Cards & Payment Services — Q2 FY24 Earnings Presentation

35 slides from Sbi Cards & Payment Services's earnings presentation, Oct 27, 2023

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

    October 27, 2023 The BSE Limited The National Stock Exchange of India Corporate Relationship Department Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra-Kurla Complex. Mumbai - 400 001 Bandra (E), Mumbai - 400 051 SCRIP CODE: 543066 SYMBOL: SBICARD SECURITY: Equi

  2. Slide 2: Investor Presentation Q2 – FY24

    MAKING LIFE SIMPLE OSBI Card INVESTOR PRESENTATION Q2 – FY24 25~1- nse1~ard nsoicard • II)) s..,,,p. U(( 1 •ll} S.~,MVE 4l1l lll23 4Sb7 8901 ,sb7 8901 ENfi:'BLING EVERYDAY MOMENTS OF JOY. 11/.u QI',; U,;. V/SA ~ ~1 RuPayi ,,.,,~v .. 1

  3. Slide 3: Index

    INDEX ~ MAKING LIFE SIMPLE OSBl card 1 Key Highlights 2 Portfolio Growth 3 Financial Update 4 Asset Quality 5 Borrowings & Capital Adequacy 6 ESG 7 Shareholders Summary 8 Annexures 2

  4. Slide 4: Key Highlights

    MAKING LIFE SIMPLE OSBl card Key Highlights 3

  5. Slide 5: Key Highlights for Q2 FY24

    Key Highlights for Q2 FY24 MAKING LIFE SIMPLE OSBl card Consistent Performance delivering Profitable Growth ₹₹37,730 Cr+ ₹ 45,078 Cr Business 1.79 Cr Volumes Business 79,164 Cr Volumes 11.42 lacs New A/cs  12% YoY CIF  21% YoY Spends Receivables  27% YoY Receivables  19% YoY  4% QoQ  3% QoQ 

  6. Slide 6: Portfolio Growth

    MAKING LIFE SIMPLE OSBI Card Portfolio Growth 5

  7. Slide 7: Key Business Metrics

    Key Business Metrics MAKING LIFE SIMPLE OSBl card New Accounts (Lacs) 12.95 16.34 13.71 12% YOY 4% QOQ ,,,- Cards-in-force (Cr) .• 3% QOQ ', 21% YOY Receivables (₹ Cr) 19% YOY 4% QOQ 45,078 10.97 11.42 43,271 I 1.79 I 1.73 I 37,730 I I I I Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 I 1.48 ' ' ---------

  8. Slide 8: Portfolio Growth

    Portfolio Growth MAKING LIFE SIMPLE OSBl card . . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •••••♦ . . ♦•••• • • • • • • • • • • • • • • • • •

  9. Slide 9: Retail Spends Insights

    Retail Spends Insights MAKING LIFE SIMPLE OSBl card Online Spend % % Growth^ Spends Categories Total Spends POS Spends Online Spends 57% 57% Category 1 Departmental Stores, Health, Utilities, 55% 29% 24% 30% 54% Education & Direct Marketing Category 2 52% Consumer durables, Furnishing & 3% 24% 44% H

  10. Slide 10: Financial Update

    - I MAKING LIFE SIMPLE OSBl card Financial Update 9

  11. Slide 11: Key Financials

    All figures are in ₹ Cr. Key Financials MAKING LIFE SIMPLE OSBl card Revenue from operations PAT Trend ,,-------------------- ---- - A -- 24% YOY ' \ 15% YOY 4% YOY I 1 A 4% QOQ 3,762 3,912 4,087 I 2% QOQ 3,297 3,507 I I I I 1,153 1,196 I \ Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 I '----------------

  12. Slide 12: P&L Summary

    All figures are in ₹ Cr. P&L Summary MAKING LIFE SIMPLE OSBl card Q2 FY24 Q1 FY24 QoQ YoY H1 FY24 YoY Revenue from operations(₹ Cr) Total Income 4,221 4,046 4% 22% 11 8,267 23% (Composition Mix %) -Revenue from Operations 4,087 3,912 4% 24% 11 7,999 25% -Interest Income 1,902 1,804 5% 28% 11 3,706 2

  13. Slide 13: Asset Quality

    .e.; MAKING LIFE SIMPLE I OSBl card Asset Quality 12

  14. Slide 14: Asset Quality

    All figures are in ₹ Cr. Asset Quality MAKING LIFE SIMPLE OSBl card Receivables (₹ Cr) (Composition Mix %) Q2 FY24 Q1 FY24 QoQ YoY H1 FY24 YoY Gross Credit Cost * 742 718 3% 36% 37,730 43,271 45,078 1,460 47% -Gross Write off 678 622 9% 50% 1,299 51% 2% 2% 2% 7% 5% 6% -Provision 64 97 -34% -32% 161

  15. Slide 15: New Sourcing – Portfolio Insights

    Portfolio Insights MAKING LIFE SIMPLE OSBl card ~ ..········· ...............................................................................................................................................................................................................................·······... ~ ~

  16. Slide 16: Borrowings & Capital Adequacy

    ,e; MAKING LIFE SIMPLE I I OSBl card Borrowings & Capital Adequacy 15

  17. Slide 17: Borrowings & Capital Adequacy

    Borrowings & Capital Adequacy MAKING LIFE SIMPLE OSBl card Borrowings Mix Capital Adequacy ; ,-----------------------------------------------------------, 4% 3% 9% 12% ' I I 13% \ I 30% 30% 26% 24% 23% CAR 23.2% 23.3% 23.1% 22.9% 23.3% 4% 2% .a~--------- ---20.6% Tier 1 20.2% -<s)l- - -----------:s,

  18. Slide 18: ESG

    4;a MAKING LIFE SIMPLE OSBI Card ESG 17

  19. Slide 19: ESG Q2 FY24 Update – Creating Value with ESG

    ESG Q2 FY24 Update – Creating Value with ESG ~ MAKING LIFE SIMPLE OSBl card Environment Social Governance New Programmes For Employees Welfare Employee Awareness Programmes • Webinar on Sound Healing for employees to • Regular communication and trainings for all 5.72 Lac+ Trees Saved enhance wellnes

  20. Slide 20: Shareholders Summary

    ~. I OSBI MAKING LIFE SIMPLE card Shareholders summary 19

  21. Slide 21: Shareholders Summary

    Shareholders Summary MAKING LIFE SIMPLE OSBl card Shareholding Pattern, 30th September 2023 Top 20 Shareholders as on 30th September 2023 S. No Name of Shareholder % 1 State Bank Of India 68.94 Others 2 Life Insurance Corporation Of India - P & Gs Fund 2.50 Insurance 1.12% 3 Life Insurance Corporati

  22. Slide 22: Annexures

    MAKING LIFE SIMPLE OSBI Card Annexures 21

  23. Slide 23: Balance Sheet Statement

    All figures are in ₹ Cr. Balance Sheet Statement ~ MAKING LIFE SIMPLE OSBl card Description Mar’23 Sep’23 Assets Loans (Net of Provisions) 39,361 43,556 Cash & Bank Balances 1,354 1,478 Investments 2,140 2,536 All other Financial Assets 559 674 Total Financial Assets 43,414 48,244 PP&E, Intangible &

  24. Slide 24: Profit & Loss Statement

    All figures are in ₹ Cr. Profit & Loss Statement MAKING LIFE SIMPLE OSBl card ,,------ P&L Q2 FY23 Q1 FY24 ' Q2 FY24 I H1 FY23 \ H1 FY24 Interest Income 1,484 1,804 1,902 2,872 3,706 Fees and commission income 1,611 1,898 1,974 3,149 3,872 Sale of Services 39 39 42 74 81 Business development incenti

  25. Slide 25: Explaining Returns

    Explaining Returns MAKING LIFE SIMPLE OSBl card Q2 FY24 Q1 FY24 QoQ YoY H1 FY24 YoY Interest Income 15.5% 15.4% 3 bps 34 bps 15.5% 22 bps Fees and other Income 17.8% 18.2% -40 bps -88 bps 18.0% -89 bps Recoveries 1.1% 1.0% 8 bps -32 bps 1.0% -48 bps Total Revenue 34.4% 34.6% -28 bps -87 bps 34.5% -1

  26. Slide 26: Structural Liquidity (ALM)

    All figures are in ₹ Cr. Structural Liquidity (ALM) MAKING LIFE SIMPLE Assets Liability Maturity Profile – Sep’23 12,480 ✓ Well Matched ALM 8,021 ✓ ₹ 9,987 Cr (31%) of 7,869 7,243 7,041 7,301 sanctioned bank lines 6,619 6,345 unutilized & available 5,128 4,760 5,416 for draw down as of 3,933 Sep’23

  27. Slide 27: Product Brief

    Product Brief MAKING LIFE SIMPLE OSBl card Super Premium Core Cards Co-Brand Cards Banking Retail Travel ,: ~-:>, , . • llfestyte _0 n SBI , . n SBI v,..,ta,w n SBI , dr ~J -- \ " < n sm ,are1 ~i}~~-: •• .'. Jtf•.. ' . •>)) ~ - •>)) • >I)) ~ >l)) . --- ,. ---- -- - -- f•'W.::\"t ' n ., ::=l"J 11 C l

  28. Slide 28: Market Share

    Market Share .r---...---... MAKING LIFE SIMPLE I OSBI Card Dominant credit card player in India CARDS IN FORCE SPENDS TRANSACTIONS 19.1% 19.7% 19.2% 19.4% 19.2% 19.7% 19.8% 18.7% 18.2% 17.9% 18.2% 17.2% FY21 FY22 FY23 FY24* FY21 FY22 FY23 FY24* FY21 FY22 FY23 FY24* *As per RBI report available till

  29. Slide 29: Recent Developments

    Recent Developments MAKING LIFE SIMPLE OSBl card Launch of Credit Card on UPI for SBI cards on RuPay Network ‘AURUM’ Product Features Enhancement SBI Card, India’s largest pure-play credit card issuer, and National Payments SBI Card unveiled new features on ‘AURUM’, ranging Corporation of India (NPC

  30. Slide 30: Digitization Initiatives

    Digitization Initiatives MAKING LIFE SIMPLE OSBl card MOBILE APP UPI RUPAY BBPS ON SBI CARD PAYMENT • • REVAMP The SBIC Mobile App is now • INTEGRATION SBI Rupay Cards can be linked • WHATSAPP Now SBI Card Customers would • THROUGH SBI UNIPAY SBI card has been successfully available with a fresh new

  31. Slide 31: ESG Engagements – Q2 FY24

    ESG Engagements – Q2 FY24 MAKING LIFE SIMPLE OSBl card Inauguration ceremony of 10 Tinkering Labs at Guwahati (Assam), by Education Advisor, Government of Assam. I ---------------------------------------------------------------------------------------------------------------------• r----------------

  32. Slide 32: SBI Card is now a Participant of the United Nations Global Compact (UNGC)

    SBI Card is now a Participant of the United Nations Global Compact (UNGC) MAKING LIFE SIMPLE OSBl card Pledge to operate responsibly, in UNGC ID: 159,450 alignment with universal sustainability principles. Network India ~ Certificate of Participation A,,•~ ~•JA TH IS IS TO CERTIFY THAT SB I CARDS AN

  33. Slide 33: Glossary

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

  34. Slide 34: Disclaimer

    Disclaimer ~ MAKING LIFE SIMPLE 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 presentati

  35. Slide 35: Thank You

    MAKING LIFE SIMPLE Thank You 34

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