Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q2 FY21 Earnings Presentation
33 slides from Sbi Cards & Payment Services's earnings presentation, Oct 23, 2020
Slide 1: Exchange cover letter on press release and presentation
October 22, 2020 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 for Quarter and Half Year Ended September 30, 2020
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 Half Year Ended September 30, 2020 SBI Card Pre-provision earnings increase 37% YoY during Q2 FY21 and 22% YoY at H1 FY21 The Board
Slide 3: Profit & Loss Account for the Quarter ended September 30, 2020
OSBl card Profit & Loss Account for the Quarter ended September 30, 2020 ➢ Total income increased by ₹137 Cr, or 5.7% to ₹2,513 Cr for Q2 FY21 vs ₹2,376 Cr for Q2 FY20. This movement was a result of the following key factors: • Interest income increased by ₹113 Cr, or 9.7% to ₹1,275 Cr for Q2 FY21 f
Slide 4: Advances, Net Worth, Asset Quality and Capital Adequacy
OSBl card ➢ Total Gross Advances (Credit card receivables) as of September 30, 2020 were ₹23,978 Cr, as against ₹23,038 Cr as of September 30, 2019. ➢ Net worth as of September 30, 2020 was ₹5,949 Cr as against ₹4,388 Cr as of September 30, 2019. Asset Quality The Gross non-performing assets were at
Slide 5: Summary Balance Sheet
OSBl card Summary Balance Sheet Rs Cr Sep’19 Sep’20 YoY Mar’20 Assets Loans (Net) 22,279 21,925 -2% 22,812 Cash & Bank Balances 493 680 38% 676 Other Financial Assets 313 273 -13% 276 Total non-financial Assets 1,380 1,435 4% 1,539 Total Assets 24,466 24,313 -1% 25,303 Liabilities and Equity Total E
Slide 6: Investor Presentation 2nd Quarter / 1st Half Year FY21
Investor Presentation 2nd Quarter / 1st Half Year FY21 Oct 22nd, 2020 OSBI Card 1
Slide 7: Key Highlights
Key Highlights OSBI Card Business Volumes reaching normalcy: • New Accounts sourcing Sep’20 daily average : at ~110% vs Q4 FY20; at ~98%+ vs pre-Covid • Retail Spends Sep’20 daily average : at ~98% vs Q4’FY20; at ~92%+ vs pre-Covid Growing Revenue and earnings: • Growing revenue from operations : at
Slide 8: Performance Highlights Q2 FY21 (Vs Q2 FY20)
Figures in ₹ Cr Performance Highlights Q2 FY21 (Vs Q2 FY20) OSBI Card Pre-provision earnings 37%, PAT ₹ 206 Cr. Profitable operations Positive operating leverage; Cost to income 49.3% PAT ROAA ROAE (Q2 FY20 59.6%). 206 3.4% 14.1% 46% 307 bp 2220 bp Improving Market Cards 18.7% (Q2 FY20 18.0%
Slide 9: Performance Highlights H1 FY21 (Vs H1 FY20)
Figures in ₹ Cr Performance Highlights H1 FY21 (Vs H1 FY20) O SBI Card Pre-provision earnings 22%, PAT ₹ 599 Cr Profitable Operations Positive operating leverage; Cost to income 48.3% PAT ROAA ROAE (H1 FY20 56.6%) 599 4.9% 21.1% 18% 161 bp 1513 bp Improving Market Cards 18.7% (H1 FY20 18.0%)
Slide 10: Key Portfolio Trends
Key Portfolio Trends OSBI Card New Accounts Corporate Spends (‘000) (₹ Cr) 10.5 9.4 ------------------------------10.3 74 67 7.5 27 51 47 851 3.2 6,056 688 4,728 288 309 2,477 1,405 Q4 FY20 Q1 FY21 Q2 FY21 Sep20 Q4 FY20 Q1 FY21 Q2 FY21 Sep20 Retail Spends Receivables (₹ Cr) (₹ Cr) 307 25,300 24,141
Slide 11: Market Share
Market Share OSBI Card Steadily increasing our share of pie in the industry Cards in force Spends 19.9% 20.5% 18.3% 18.5% 18.7% 17.9% 17.6% 16.7% 17.1% 16.7% 13.2% I I 15.3% I FY17 FY18 FY19 FY20 Jun'20 Aug'20 I FY17 FY18 FY19 FY20 Q1 FY21 Q2 FY21 YTD Aug As per RBI report available till Aug’20 6
Slide 12: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBI Card New Accounts (‘000) Cards-in-force (‘000) 912 10,602 11,009 688 288 9,460 Q2 FY20 - Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Channel wise Split Channel wise Split 61.5% 61.4% 62.4% 47.9% 44.7% 41.8% 58.2% 52.1% 55.3% 38.5% 38.6% 37.6% Q2 FY20 Q1 FY21 Q2 FY21
Slide 13: Portfolio Growth
Portfolio Growth OSBI Card Spends (₹ Cr) Receivables (₹ Cr) 33,176 29,590 23,978 19,085 23,330 - 23,038 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 24,355 22,005 21,781 145 72 110 Q2 FY20 -Q1 FY21 30 day spend active rate % Q2 FY21 Q2 FY20 Q1 F
Slide 14: Portfolio Insights
Portfolio Insights OSBI Card Occupation Salaried Category Age profile By City Tier New Sourcing For Q2 FY21 22% 21% 16% 33% 36% 42% 11% 40% 78% 25% 43% 32% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 0.71 1.35 0.86 1.13 As on 30t
Slide 15: Retail Spends Insights
Retail Spends Insights O SBI Card , "I Spends % Growth % Growth Online Spend % Categories Online Point of Sale 54.6% Category 1 Departmental Stores, Fuel, Health, 28% 23% 43.0% 44.9% 44.2% Utilities, Education & Direct Marketing 36.6% Category 2 Consumer durables, Furnishing & 64% 10% Hardwa
Slide 16: Financial Results
Figures in ₹ Cr Financial Results OSBI Card Q2 FY20 Q1 FY21 Q2 FY21 YoY H1 FY20 H1 FY21 YoY Total Income 2,376 2,193 2,513 6% 4,679 4,706 1% PAT Finance Costs 319 275 264 -17% 621 539 -13% Operating Costs 1,226 905 1,109 -10% 2,298 2,013 -12% Pre-Provision Earnings 831 1,014 1,140 37% 1,760 2,154 22
Slide 17: Explaining Returns
Explaining Returns OSBI Card Q2 FY20 Q1 FY21 Q2 FY21 YoY H1 FY20 H1 FY21 YoY Interest Income 19.7% 22.8% 21.0% 127bps 19.7% 21.8% 210bps Fees and other Income 19.3% 12.0% 18.8% -49bps 20.7% 15.3% -539bps Recoveries 1.3% 0.6% 1.6% 26bps 1.3% 1.1% -23bps Total Income 40.3% 35.4% 41.4% 105bps 41.7% 38.
Slide 18: Revenue Growth
Figures in ₹ Cr Revenue Growth OSBI Card Composition Q2 FY20 Q1 FY21 Q2 FY21 YoY H1 FY20 H1 FY21 YoY Revenue from operations H1 FY20 H1 FY21 Revenue from Operations 2,296 2,152 2,413 5% 4,364 4,566 5% 20% 18% Other Income 80 41 99 24% 315 140 -56% Total Income 2,376 2,193 2,513 6% 4,679 4,706 1% 51%
Slide 19: Capital Adequacy and Borrowings
Capital Adequacy and Borrowings OSBI Card Cost of funds Borrowing Composition (Sep’20) 7.6% 6.6% 6.6% Q2 FY20 - - Q1 FY21 Q2 FY21 28% 57% Capital Adequacy Ratio 15% 24.4% 25.3% 22.4% 19.0% 4.3% 4.3% 4.7% 4.2% 17.7% 20.1% 21.0% ■ Bank Lines ■ Commercial Papers ■ Debentures 14.8% Sep'19 Mar'20 Jun'20
Slide 20: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) OSBI Card Asset Liability Maturity profile – Sep’20 ■ Inflows • Outflows 6,681 ▪ Well matched ALM 3,714 3,322 3,360 3,093 2,709 2,551 2,474 2,626 ▪ ₹7,862 Cr (41%) of sanctioned bank lines 2,338 2,362 2,463 1,937 1,900 1,882 unutilized and available for dra
Slide 21: Operating Costs
Figures in ₹ Cr Operating Costs O SBI Card Q2 FY20 Q1 FY21 Q2 FY21 YoY H1 FY20 H1 FY21 YoY Positive Operating Leverage Employee Cost 104 112 122 17% 209 234 12% 19% 15% - Depreciation 19 28 30 56% 49 58 19% 3% CSR 2 6 2 8% 2 8 422% 9% Other operating expenses 1,101 758 955 -13% 2,039 1,713 -16% -10%
Slide 22: Asset Quality
Figures in ₹ Cr Asset Quality O SBI Card Q2 FY20 Q1 FY21 Q2 FY21 YoY r ·························i H1 FY20 H1 FY21 YoY Key highlights I Impairment and losses 329 485 862 162% . 726 I 1,347 86% 4.29% Gross Loss on Loans 328 485 862 163% 724 1,347 86% -- GNPA* 2.33% 2.01% 1.35% Gross Write off 343 404
Slide 23: SBI Card driving market expansion
SBI Card driving market expansion OSBl card New to Credit New to Credit Cards Tier 3 + Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 18.6% 23.4% 25.6% 27.9% New Acquisition 42.7% 57.2% 72.1% 57.3% 81.4% 76.6% 42.8% 74.4% ■ New to Credit ■ Others New to Credit Card Others ■ Tier 3+ ■ Others ■ ■ Mar
Slide 24: Shareholders Summary
Shareholders Summary OSBI Card Shareholding pattern, 30th Sep 2020 Top 20 Shareholders as on 30th Sep 20 S. No Name of Shareholder % 1 State Bank Of India 69.45 Resident Others 2 CA Rover Holdings 15.88 MF Individuals 1.68% 3 BNP Paribas Arbitrage - ODI 1.06 2.46% 4.59% 4 Government Pension Fund Glo
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 & Innovation Governance Community - .- Employee- Welfare Resource Management Solving Financial Challenges Regulatory Environment
Slide 26: Annexures
Figures in ₹ Cr P&L Summary OSBI Card P&L Q2 FY20 Q1 FY21 Q2 FY21 YoY H1 FY20 H1 FY21 YoY Interest Income 1,162 1,412 1,275 10% 2,212 2,688 22% Income from fees and services 1,022 668 1,019 0% 1,938 1,687 -13% Service Charges 24 17 38 61% 53 56 5% Business development incentive 85 54 78 -8% 157 132
Slide 27: P&L Summary
Figures in ₹ Cr Balance Sheet Summary OSBI Card Balance Sheet Sep19 Sep20 YoY Mar20 Assets Loans (Net) 22,279 21,925 -2% 22,812 Cash & Bank Balances 493 680 38% 676 Other Financial Assets 313 273 -13% 276 Total Financial Assets 23,085 22,878 -1% 23,764 PP&E, Intangible & Right of use assets 335 319
Slide 28: Balance Sheet Summary
Annexures 23
Slide 29: Recent developments
Recent developments O SBI Card Brand Film – ‘Contactless Connections’ Recent Developments 1. SBI Card ties up with American Express to augment the Premium Portfolio [~,l\l'" O SOi JI Launch Date: 29th Sep’20 -, • ~ ~ •. ~ •1)) 1Z3'1 Launch of SBI Card Elite and ., .,,...,., n-, , ..-11-, -, 1 r,n .J
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)) l 1"'.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
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