Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q1 FY24 Earnings Presentation
34 slides from Sbi Cards & Payment Services's earnings presentation, July 2023
Slide 1: Investor Presentation Q1 FY24
INVESTOR PRESENTATION Q1 FY24
Slide 2: Index
INDEX 1 Key Highlights 2 Portfolio Growth 3 Financial Update 4 Asset Quality 5 Borrowings & Capital Adequacy 6 ESG 7 Shareholders Summary 8 Annexures
Slide 3: Key Highlights
©sBI Card MAKING LIFE SIMPLE Key Highlights
Slide 4: Key Highlights for Q1 FY24
Key Highlights for Q1 FY24 Continued business growth, focus on profitable segments 1.73 Cr ₹₹37,730 Cr 73,913Cr+ ₹ 43,271 Cr Business 10.97 lacs Volumes Business Volumes New A/cs 22% YoY CIF 21% YoY Spends Receivables 24% YoY Receivables 30% YoY 20% QoQ 3% QoQ 41% YoY 3% QoQ 6% QoQ P
Slide 5: Portfolio Growth
Portfolio Growth
Slide 6: Key Business Metrics
Key Business Metrics New Accounts (Lacs) Cards-in-force (Cr) Receivables (₹ Cr) 22% YOY 21% YOY 30% YOY 20% QOQ 3% QOQ 6% QOQ 16.34 12.95 13.71 10.97 43,271 9.02 40,722 1.73 1.68 33,215 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 1.43 Retail Spends (₹ Cr) 28% YOY Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'2
Slide 7: Portfolio Growth
Portfolio Growth Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 25,445 24,318 24,293 24,949 23,202 170 171 179 176 173 130 140 142 136 137 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Ret+Corp Ret Receivables(₹ Cr)/Mix % 30 day spend active rate % 33,215 37,73
Slide 8: Retail Spends Insights
Retail Spends Insights % Growth^ Spends Categories Online Spends Online Spend % Total Spends POS Spends 57% 55% Category 1 52% 54% Departmental Stores, Health, Utilities, 44% 1% 5% 1% Education & Direct Marketing Category 2 Consumer durables, Furnishing & 17% 11% 41% Hardware, Apparel & Jewelry Cate
Slide 9: Financial Update
MAKING LIFE SIMPLE Financial Update
Slide 10: Key Financials
All figures are in ₹ Cr. Key Financials Revenue from operations PAT Trend 26% YOY 4% QOQ 5% YOY 3,762 3,912 3,100 3,297 3,507 1% QOQ 627 596 593 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 526 509 Interest Cost 85% YOY 507 571 13% QOQ 368 464 308 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q
Slide 11: P&L Summary
All figures are in ₹ Cr. P&L Summary Q1 FY24 Q4 FY23 QoQ YoY Revenue from operations(₹ Cr) Total Income 4,046 3,917 3% 24% (Composition Mix %) -Revenue from Operations 3,912 3,762 4% 26% -Interest Income 1,804 1,672 8% 30% -Fees & Other Revenue 2,108 2,090 1% 23% 3,100 3,762 3,912 -Other Income 134
Slide 12: Asset Quality
25 | OSBI MAKING LIFE SIMPLE Asset Quality
Slide 13: Asset Quality
All figures are in ₹ Cr. Asset Quality Receivables (₹ Cr) (Composition Mix %) Q1 FY24 Q4 FY23 QoQ YoY Gross Credit Cost 718 628 14% 60% 33,215 40,722 43,271 -Gross Write off 622 541 15% 53% -Provision 97 88 10% 132% 2% 2% 2% 8% 5% 5% Recoveries (116) (152) (24%) (22%) Net Credit Cost 603 477 26% 101
Slide 14: New Sourcing / Portfolio Insights
Portfolio Insights New Accounts Salaried Category Age Profile By City Tier 17% 23% 27% New Sourcing 34% For Q1 FY24 29% 46% 54% 46% 18% 25% 32% 49% SBI Open Market Govt/PSU Cat A Cat B Under 30 31-45 >45 Tier 1 Tier 2 Tier 3 Others Tier 3/Others: 55% Salaried 61%; Self employed 39% 1.08 0.99 0.82 1.
Slide 15: Asset Quality by Sourcing Vintage
Asset Quality by Sourcing Vintage Delinquency (Ever 90+%) by Sourcing Vintage (Excl. RBI RE and SCSS) Self-Employed Segment 1.64 1 1 0.75 0.9 0.86 Q3 FY20 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 0.59 Indexed 30+ Delinquency Indexed Sourcing Share Growth • Strategically increased sourcing from self-e
Slide 16: Actions underway
Actions underway Portfolio Pre-acquisition Collectionss Management ❖ Customized digital ❖ Low limit card sourcing ❖ Credit line reduction in interventions to drive restricted high-risk segments contacts and payments ❖ Locations curtailed basis ❖ Cross sell exposure ❖ Strengthening Collection viabili
Slide 17: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy
Slide 18: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy Borrowings Mix Capital Adequacy 2% 4% 3% 9% 13% 32% 30% 30% 26% 24% CAR 24.7% 23.2% 23.3% 23.1% 22.9% 5% 4% 2% Tier 1 21.5% 20.2% 20.6% 61% 63% 65% 66% 64% 20.4% 20.3% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 WCDL CP NCD TL COF Tre
Slide 19: ESG
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Slide 20: ESG Q1 FY24 Update – Creating Value with ESG
ESG Q1 FY24 Update –Creating Value with ESG 5.25 Lac+ Trees Saved (From FY’18 to FY’24 (till Jun’23) Increasing Awareness Amongst Employees Serving Communities Through paperless communication with customers Environmental World Earth Day and World Environment Day Rural Development added as a new focu
Slide 21: Shareholders summary
Shareholders summary
Slide 22: Shareholders Summary
Shareholders Summary Shareholding Pattern, 30th June 2023 Top 20 Shareholders as on 30th June 2023 S. No Name of Shareholder % 1 State Bank Of India 68.96 Insurance Others 2 Life Insurance Corporation Of India - P & Gs Fund 1.99 4.66% 1.36% Resident 3 Life Insurance Corporation Of India 1.83 Individ
Slide 23: Annexures
Annexures
Slide 24: Balance Sheet Statement
All figures are in ₹ Cr. Balance Sheet Statement Description Mar’23 Jun’23 Assets Loans (Net) 39,361 41,813 Cash & Bank Balances 1,354 1,228 Investments 2,140 2,053 All other Financial Assets 559 696 Total Financial Assets 43,414 45,790 PP&E, Intangible & Right of use assets 574 550 Tax Assets 252 2
Slide 25: Profit and Loss Statement
All figures are in ₹ Cr. Profit and Loss Statement Description Q1 FY23 Q4 FY23 Q1 FY24 Interest Income 1,387 1,672 1,804 Fees and commission income 1,538 1,786 1,898 Sale of Services 35 45 39 Business development incentive income 140 258 170 Insurance commission income 1 1 1 Net gain on fair value c
Slide 26: Explaining Returns
Explaining Returns Q1 FY24 Q4 FY23 QoQ YoY Interest Income 15.4% 15.1% 33bps -8bps Fees and other Income 18.2% 18.9% -71bps -113bps Recoveries 1.0% 1.4% -38bps -66bps Total Revenue 34.6% 35.4% -76bps -187bps Finance Costs 4.9% 4.6% 30bps 144bps Operating Costs 16.8% 17.9% -111bps -183bps Earnings be
Slide 27: Structural Liquidity (ALM)
All figures are in ₹ Cr. Structural Liquidity (ALM) Assets Liability Maturity Profile – Jun’23 11,802 ✓ Well Matched ALM ✓ ₹ 4,066 Cr (16%) of 7,281 7,067 sanctioned bank lines 6,435 6,559 6,627 6,423 6,600 unutilized & available 4,549 4,993 for draw down as of 4,336 3,899 Jun’23 3,117 3,158 2,882 2
Slide 28: Product Brief
Product Brief Super Premium Core Cards Co-Brand Cards Banking Retail Travel Central Bank of India SBI Lifestyle Home Centre SBI Card Club Vistara SBI Card PRIME AURUM SBI Card Elite SBI Card PRIME Card OLA Money SBI Card SimplyCLICK SBI Card SimplySAVE SBI Card Air India SBI Signature UCO Bank SBI C
Slide 29: Market Share
Market Share Dominant credit card player in India CARDS IN FORCE SPENDS TRANSACTIONS 19.1% 19.6% 19.4% 19.2% 19.7% 19.8% 18.3% 18.7% 17.9% 17.8% 17.7% 17.4% FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23 * FY20 FY21 FY22 FY23* *As per RBI report available till June’23 29
Slide 30: Recent Developments
Recent Developments SBI Card Silver Jubilee – Integrated Campaign Launch of Paytm SBI Card on RuPay Network. On the occasion of SBI Card completing 25 SBI Card, Paytm and NPCI joined forces to further drive glorious years in May this year, an integrated credit inclusion with the launch of Paytm SBI
Slide 31: ESG Engagements- Q1 FY24
ESG Engagements- Q1 FY24 Waste Management Awareness campaign at 25 Resident Welfare Associations (RWAs) in Ghaziabad “World Environment Day” | Employee Awareness Programme on waste segregation & promote recycle products “World Earth Day” | Plantation Drive in Sikanderpur, Gurugram 31
Slide 32: Glossary
Glossary 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 constitutes the agg
Slide 33: Disclaimer
Disclaimer 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 be a pros
Slide 34: Thank You
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