Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q2 FY23 Earnings Presentation
28 slides from Sbi Cards & Payment Services's earnings presentation, Oct 27, 2022
Slide 1: Exchange filing cover letter under Regulation 30
October 27, 2022 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: E
Slide 2: Investor Presentation Q2 FY23
Investor Presentation Q2 FY23 Oct 27, 2022 OSBI Card
Slide 3: Q2 FY23 Business Highlights
Q2 FY23 Business Highlights OSBl card Focus on business growth Robust financials: PAT ₹ 526 Cr, 52% YoY Higher Business Volumes • New accounts at 1,295K, 36% YoY • Spends at ₹ 62,300 Cr+ 43% YoY • Receivables at ₹ 37,730 Cr, 41% YoY Robust Financials • Total revenue at ₹ 3,453 Cr, 28% YoY
Slide 4: Executive Summary Q2 FY23
Figures in ₹ Cr Executive Summary Q2 FY23 OSBl card Profitable operations PAT ₹ 526 Cr, 52% YoY PAT ROAA ROAE 526 5.4% 24.1% 52%/ 16 % 41 bps/ 165 bps 404 bps/ 671 bps Market Share Cards in force 19.1% (FY22 18.7%), Spends 18.0% (FY23)* (FY22 19.2%), Transactions 18.3% (FY22 19.8%) CAR R
Slide 5: Executive Summary H1 FY23
Figures in ₹ Cr Executive Summary H1 FY23 OSBl card Profitable operations PAT ₹ 1,153 Cr, 77% YoY PAT ROAA ROAE 1,153 6.1% 27.4% 77% 141 bps 801 bps Market Share Cards in force 19.1% (FY22 18.7%), Spends 18.0% (FY23)* (FY22 19.2%), Transactions 18.3% (FY22 19.8%) CAR Receivables NNPA 18% Y
Slide 6: Key Trends
Key Trends OSBl card New Accounts Corporate Spends (‘000) (₹ Cr) 12,980 14,183 12,263 11,411 1,295 8,491 953 1,008 1,002 902 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Receivables ■ Transactor ■ Revolver ■ EMI ■ RBI RE Retail Spends (₹ Cr) (₹ Cr) 33,215 26,741 29
Slide 7: Market Share
Market Share OSBl card Dominant credit card player in India Cards in force Spends Transactions 19.1% 18.7% 19.1% 19.4% 19.2% 19.7% 19.8% 18.3% 18.3% 17.9% 18.0% 17.7% FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23* *As per RBI report available till Sep’22 6
Slide 8: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBl card New Accounts (‘000) Cards-in-force (‘000) 1,295 14,316 14,828 953 902 12,580 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Channel wise Split Channel wise Split 52.2% 67.8% 62.9% 57.0% 57.8% 59.3% 47.8% 32.2% 37.1% 43.0% 42.2% 40.7% Q2 FY22 Q1 FY23 Q2 FY23
Slide 9: Portfolio Growth
Portfolio Growth OSBl card Spends (₹ Cr) Receivables (₹ Cr) 59,671 62,306 33,215 37,730 43,560 26,741 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 21,257 23,202 25,445 170 171 142 114 130 140 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 ■ Ret
Slide 10: Portfolio Insights
Portfolio Insights OSBl card Occupation Salaried Category Age Profile By City Tier New Sourcing For Q2 FY23 16% 21% 30% 30% 30% 40% 37% 70% 30% 47% 19% 30% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 1.08 1.20 0.83 1.17 As on 30t
Slide 11: Retail Spends Insights
Retail Spends Insights OSBl card , % Growth^ ' Online Spend % Spends Categories Total Spends POS Spends Online Spends Category 1 Departmental Stores, Health, Utilities, 57.8% A 11% A 5% A 13% 51.9% 54.4% Education & Direct Marketing 44.9% 44.2% Category 2 Consumer durables, Furnishing & A 10% T 5% A
Slide 12: Financial Results
Figures in ₹ Cr Financial Results OSBl card Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY PAT Total Revenue 2,696 3,263 3,453 6% 28% 5,146 6,716 31% Finance Costs 254 308 368 19% 45% 483 676 40% Operating Costs 1,383 1,663 1,834 10% 33% 2,550 3,497 37% 1,153 Earnings before Credit Costs 1,058
Slide 13: Explaining Returns
Explaining Returns OSBl card Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY Interest Income 16.8% 15.5% 15.1% -38bps -169bps 16.9% 15.2% -163bps Fees and other Income 20.1% 19.3% 18.7% -65bps -146bps 18.9% 18.9% -6bps Recoveries 1.7% 1.7% 1.4% -26bps -30bps 1.5% 1.5% 2bps Total Revenue 38.7% 36
Slide 14: Revenue
Figures in ₹ Cr Revenue OSBl card Composition Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY Revenue from operations Revenue from Operations 2,576 3,100 3,297 6% 28% 4,938 6,397 30% Q2 FY22 Q1 FY23 Q2 FY23 Other Income 119 163 156 -4% 31% 208 319 53% Total Revenue 2,696 3,263 3,453 6% 28% 5,146
Slide 15: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy OSBl card Cost of funds Leverage 5.5% 5.1% 5.4% 3.8 3.9 4.2 Q2 FY21 Q1 FY23 Q2 FY23 Sep'21 Jun'22 Sep'22 Borrowing Composition Capital Adequacy Ratio Sep’21 Jun’22 Sep’22 ■ Tier - I ■ Tier - II 2% 4% 25.0% 24.7% 23.2% 30% 3.2% 3.2% 2.9% 34% 32% 21.8% 21.5% 20.2% 60% 61%
Slide 16: Structural Liquidity (ALM)
Structural Liquidity (ALM) OSBl card Asset Liability Maturity Profile – Sep’22 ■ Inflows ■ Outflows 10,152 • Well matched ALM • 5,639 Cr (23%) of sanctioned bank lines unutilized and available for 5,998 6,046 6,332 5,790 6,013 6,439 draw down as at Sep22 5,140 4,347 3,871 3,823 3,860 3,137 3,288 I I
Slide 17: Operating Costs
Figures in ₹ Cr Operating Costs OSBl card Operating Leverage Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY Employee Cost 115 139 129 -7% 12% 231 268 16% (6)% (6)% Depreciation 40 39 39 -1% -3% 72 78 7% Fees and commission expense Other operating expenses Operating Costs 232 997 1,383 331 1,155
Slide 18: Asset Quality
Figures in ₹ Cr Asset Quality OSBl card Stage Wise Receivables Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1 FY22 H1 FY23 YoY 26,741 33,215 37,730 Impairment and losses 594 450 546 21% -8% 1,239 996 -20% 2.1% - ----~------------------------s:--------+--------------------------- 2.2% 3.4% 8.3% 7.4% Gross Credit
Slide 19: Our ESG Efforts
Our ESG Efforts OSBl card D ENVIRONMENTAL SOCIAL lfJ GOVERNANCE Climate Change Employee Engagement & Welfare Data Privacy & Security 3.9 Lac+ Trees Saved Launched Telemedicine app for employees 2 drills of Cyber Simulation exercise for senior (From FY’18 to Q1’23) & their family members offering fre
Slide 20: Shareholders Summary
Shareholders Summary OSBl card Shareholding pattern, 30th September 2022 Top 20 Shareholders as on 30th September 2022 S. No Name of Shareholder % 1 State Bank Of India 69.18 Others Resident Insurance 2 Life Insurance Corporation Of India 1.74 1.46% Individuals 4.50% 3 Life Insurance Corporation Of
Slide 21: Annexures
Annexures OSBI Card
Slide 22: P&L Summary
Figures in ₹ Cr P&L Summary OSBl card .................... P&L Q2 FY22 Q1 FY23 Q2 FY23 QoQ YoY H1FY22 H1FY23 YoY Interest Income 1,173 1,387 1,484 7% 27% 2,327 2,872 23% Fees and commission income 1,244 1,538 1,611 5% 29% 2,343 3,149 34% Sale of Services 36 35 39 13% 9% 60 74 24% Business developmen
Slide 23: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary OSBl card Balance Sheet Mar’22 Sep’22 Assets Loans (Net) 30,187 36,500 Cash & Bank Balances 1,106 1,036 Investments 1,297 1,810 Other Financial Assets 382 494 Total Financial Assets 32,973 39,840 PP&E, Intangible & Right of use assets 454 447 Deferred Tax Assets
Slide 24: Recent Developments
Recent Developments OSBl card Launch of CASHBACK SBI Card SBI Card SPRINT Advertisement Advertised SBI Card SPRINT (STP), our new fully- TI IE TIMES OF o~s01 card _. °" . . _,,,...,...,...""""' __ .. __ .,...... ..,,.,., - - _ _ ,..., _ _ ..,. ... ,y The card offers 5% Cashback on all online spends
Slide 25: Product Brief
Product Brief OSBl card Super Premium Core Cards Co-Brand Cards Banking Retail Travel PT< v1r n SBI c ._H (j lifestyle _,:> Cl SBI CJrd v1stmw n SBI card a:; · •>)) • r r - o c:in >I)) lr.j •>)) , l\.'r u:J::n n, ::i:, 11 c:r ., .a.qn1 I --- ---- - -- 7 i:-1 , , - -, 7 71 v,, ~ v ~1 111~ 1-1 V/SA Vl
Slide 26: 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 deactivated credit Card-in-force cards. Spends Total card spends constitut
Slide 27: 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 28: Thank You
Thank You OSBl card 27
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