Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q3 FY22 Earnings Presentation
32 slides from Sbi Cards & Payment Services's earnings presentation, Jan 24, 2022
Slide 1: Regulation 30 disclosure cover letter to exchanges
January 24, 2022 The BSE Limited The National Stock Exchange of India Corporate Relationship Department. Limited P J. 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 S
Slide 2: Investor Presentation Q3 FY22
Investor Presentation Q3 FY22 January 24, 2022 OSBI Card
Slide 3: Q3 FY22 Key Highlights
Q3 FY22 Key Highlights OSBl card Robust fundamentals, strong business performance PAT ₹ 386 Cr, 84% YoY Continuing focus on business growth • New accounts at 1MN+, 10% YoY • Total Spends at ₹ 55,300 Cr+ 47% YoY o Retail spends at ₹ 42,400 Cr+, 36% YoY Corporate Spends at ₹ 12,900 Cr+, 93%
Slide 4: Executive Summary Q3 FY22 (vs Q3 FY21)
Figures in ₹ Cr Executive Summary Q3 FY22 (VS Q3 FY21) OSBl card Profitable PAT ROAA ROAE PAT ₹ 386 Cr, 84% YoY operations 386 5.0% 21.2% Cards in force 19.2% (FY21 19.1%), Spends 84%/ 12 % 179 bp/ 9 bp 742 bp/ 117 bp Market Share 19.0% (FY21 19.4%), Transactions 20.0% (9M FY22)* (FY21
Slide 5: Executive Summary 9M FY22 (vs 9M FY21)
Figures in ₹ Cr Executive Summary 9M FY22 (VS 9M FY21) OSBl card Profitable PAT ROAA ROAE PAT ₹ 1,035 Cr, 28% YoY operations 1,035 4.8% 20.0% Cards in force 19.2% (FY21 19.1%), Spends 28% 54 bp 147 bp Market Share 19.0% (FY21 19.4%), Transactions 20.0% (9M FY22)* (FY21 19.7%) CAR Receivables
Slide 6: Delivered Impressive 9M Results
Delivered Impressive 9M Results OSBl card New Accounts Spends Receivables + 36% + 53% + 13% Business Growth 1,895K → 2,570K 86,473 Cr → 132,218 Cr 25,749 Cr → 29,129 Cr 9M FY21 9M FY22 9M FY21 9M FY22 Dec 20 Dec 21 Revenue EBCC PAT Strong net income + 14% + 6% + 28% growth 7,245 Cr → 8,285 Cr 3,085
Slide 7: Key Trends (1/2)
Figures in ₹ Cr Key Trends (1/2) OSBl card Resilient interest income Credit costs declining, in absolute and % terms 11.1% 10.4% 10.4% YoY +9% 9.3% 9.0% ----------~-:-_: :-_-____ _ QoQ +9% 1,273 --- 7.9% 1,173 1,153 1,173 1,082 76 648 705 645 594 550 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 - - Q
Slide 8: Key Trends (2/2)
Key Trends (2/2) OSBl card New Accounts Corporate Spends (‘000) (₹ Cr) 12,980 5,106 1,008 4,456 953 8,491 3,418 918 6,718 342 341 325 Q3 FY21 Q2 FY22 Q3 FY22 Oct'21 Nov'21 Dec'21 Q3 FY21 Q2 FY22 Q3 FY22 Oct'21 Nov'21 Dec'21 Retail Spends Receivables (₹ Cr) (₹ Cr) 42,417 35,070 25,749 26,741 29,129 3
Slide 9: Market Share
Market Share OSBl card Dominant credit card player in India Cards in force Spends Transactions 19.4% 20.0% 19.0% 19.7% 19.1% 19.2% 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 Nov’21 8
Slide 10: New Accounts and Cards-in-force
New Accounts and Cards-in-force OSBl card New Accounts (‘000) Cards-in-force (‘000) 1,008 12,580 13,161 918 953 11,490 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Channel wise Split Channel wise Split 48.1% 52.2% 49.3% 56.6% 57.0% 56.7% 51.9% 47.8% 50.7% 43.4% 43.0% 43.3% Q3 FY21 Q2 FY22 Q3 FY22
Slide 11: Portfolio Growth
Portfolio Growth OSBl card Spends (₹ Cr) Receivables (₹ Cr) 55,397 26,741 29,129 43,560 25,749 37,797 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 172 22,409 21,257 22,133 134 142 Q3 FY21 Q2 FY22 Q3 FY22 Q3 FY21 Q2 FY22 Q3 FY22 30 day spend acti
Slide 12: Portfolio Insights
Portfolio Insights OSBl card Occupation Salaried Category Age profile By City Tier New Sourcing For Q3 FY22 22% 19% 18% 31% 33% 38% 36% 19% 78% 31% 48% 27% ■ Salaried ■ Self Employed ■ Govt/PSU ■ Cat A ■ Cat B ■ Under 30 ■ 31-45 ■ >45 ■ Tier 1 ■ Tier 2 ■ Tier 3 ■ Others 1.05 1.44 0.80 As on 31st Dec
Slide 13: Retail Spends Insights
Retail Spends Insights OSBl card r '\ -------- ' Q3 FY22 I / I % Growth^ Vs Online Spend % Spends Categories Total Spends Online Spends POS Spends DJF’20* Category 1 53.8% Departmental Stores, Health, Utilities, 51.9% Education & Direct Marketing 17% 20% 10% 43.0% 44.9% 44.2% Category 2 Cons
Slide 14: Financial Results
Figures in ₹ Cr Financial Results OSBl card Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY PAT Total Revenue 2,540 2,695 3,140 24% 7,245 8,285 14% Finance Costs 261 254 277 6% 800 760 -5% Operating Costs 1,348 1,383 1,719 28% 3,361 4,268 27% Earnings before Credit Costs 931 1,058 1,144 23% 3,085 3,
Slide 15: Explaining Returns
Explaining Returns OSBl card Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY Interest Income 18.2% 16.8% 16.6% -157bps 20.4% 16.7% -366bps Fees and other Income 19.3% 20.1% 22.5% 329bps 16.5% 20.1% 369bps Recoveries 1.9% 1.7% 1.8% -11bps 1.4% 1.6% 24bps Total Revenue 39.4% 38.7% 41.0% 161bps 38.2% 3
Slide 16: Revenue
Figures in ₹ Cr Revenue OSBl card Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY Composition Revenue from operations Revenue from Operations 2,408 2,576 2,889 20% 6,977 7,827 12% Q3 FY21 Q2 FY22 Q3 FY22 Other Income$ 131 119 250 90% 268 458 71% Total Revenue 2,540 2,695 3,140 24% 7,245 8,285 14% Fi
Slide 17: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy OSBl card Cost of funds Leverage 6.1% 5.5% 5.4% 4.3 3.8 3.9 Q3 FY21 Q2 FY22 Q3 FY22 Dec'20 Sep'21 Dec'21 Borrowing Composition Capital Adequacy Ratio Dec’20 Sep’21 Dec’21 ■ Tier - I ■ Tier - II 23.7% 25.0% 24.2% 24% 3.9% 3.2% 2.9% 34% 36% 19.8% 21.8% 21.3% 56% 60% 60% 2
Slide 18: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) OSBl card Asset Liability Maturity profile – Dec’21 ■ Inflows ■ Outflows 8,365 5,773 ▪ Well matched ALM 4,237 4,459 4,401 3,996 4,476 3,822 3,429 3,209 ▪ ₹6,457 Cr (32%) of sanctioned bank lines 3,056 2,415 2,451 2,827 unutilized and available for draw down
Slide 19: Operating Costs
Figures in ₹ Cr Operating Costs OSBl card Operating Leverage Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY (7)% (2)% Employee Cost 132 115 121 -8% 367 352 -4% Depreciation 31 40 37 18% 89 109 23% 24% 26% 28% Other operating expenses 1,185 1,229 1,561 32% 2,905 3,806 31% 17% Operating Costs 1,348 1
Slide 20: Asset Quality
Figures in ₹ Cr Asset Quality OSBl card Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY Impairment and losses Stage Wise NEA 648 594 625 -4% 1,995 1,865 -7% Gross Credit Costs * 648 594 625 -4% 1,995 1,865 -7% 25,749 26,741 29,129 Recoveries (125) (118) (140) 12% (260) (346) 33% Net Credit Costs 3.4
Slide 21: Investing for Digital Transformation
Investing for Digital Transformation OSBl card ,,-------------------------------------- \ 1 / ,,,--------------------------------------- ' \ I/ ------------- \ Instant card issuance for ETB \: I Customer I I I ' (existing to SBIC) customers I I I I ✓ Cost savings and efficiencies :: I I ~ _ _ _ _ _
Slide 22: 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 23: Creating Value with ESG
.j :, • ' • :. • st ' Creating Value with ESG OSBl card ' 1 " ~ • - • / ' .(. J , l ~ ,J l ' -. •"'> • - ~ .' . ~ '\. ,, , . . :: . . ' ' I\, .°'' ' ' ,,• ' I , 2.5 Lac+ Trees Saved Effective waste management: separate trash (From FY’18 to FY’22 (till Dec’21) containers installed In Head Office for
Slide 24: Shareholders Summary
Shareholders Summary OSBl card Shareholding pattern, 31st December 2021 Top 20 Shareholders as on 31st December 2021 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 1.71 Individuals 3.98% 4 Life In
Slide 25: Annexures
Annexures OSBI Card
Slide 26: P&L Summary
Figures in ₹ Cr P&L Summary OSBl card ... ..... ..... .. ..... ................ ···•. P&L Q3 FY21 Q2 FY22 Q3 FY22 YoY 9M FY21 9M FY22 YoY Interest Income 1,173 1,173 1,273 9% 3,864 3,600 -7% Income from fees and services 1,107 1,244 1,457 32% 2,794 3,800 36% Service Charges 44 36 37 -14% 99 97 -2% B
Slide 27: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary OSBl card Balance Sheet Mar’21 Dec’21 Variance% Assets Loans (Net) 23,459 27,969 19% Cash & Bank Balances 720 819 14% Investments 958 1,236 29% Other Financial Assets 269 279 3% Total Financial Assets 25,406 30,302 19% PP&E, Intangible & Right of use assets 318
Slide 28: Recent Developments
Recent Developments OSBl card Launch of SBI Card PULSE SBI Card PULSE – Ad Campaign SBI Card has launched first-of-its-kind Launched SBI Card PULSE ’s first print campaign across top metro cities, fitness & wellness focused credit card Launch Date: 14 Dec ’21 though jacket ads in leading publication
Slide 29: 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 30: 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 31: 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 32: Thank You
Thank You OSBl card 31
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