SBI Cards and Payment Services Limited (SBI Card) has released its financial results for the first quarter, showcasing steady growth in revenue and profitability. The company continues to focus on expanding its presence in tier-2 and beyond cities, digital innovation, and strategic co-branded offerings.

Key Financial Highlights

• Total Revenue: ₹5,035.00 crore, up 12% year-on-year (YoY)
• Net Profit: ₹555.96 crore, increased 4% quarter-on-quarter (QoQ)
• Earnings per Share (EPS): ₹5.84 (not annualized)
• Cards-in-force: 2.12 crore, grew 10% YoY
• Spends: ₹93,244.00 crore, up 21% YoY

Financial Performance

SBI Card's total revenue from operations stood at ₹4,876.92 crore, compared to ₹4,358.64 crore in the same quarter last year, marking a 12% YoY increase. The growth was primarily driven by a rise in interest income and fees and commission income.

Interest income grew by 11% YoY to ₹2,493.15 crore, while fees and commission income increased by 13% YoY to ₹2,191.15 crore. The company's other income also saw a significant jump, rising 28% YoY to ₹158.47 crore.

Profitability and Efficiency

The net profit for the quarter reached ₹555.96 crore, showing a modest increase of 4% QoQ, although it decreased by 6% YoY. The company's cost-to-income ratio improved to 50.3%, down by 108 basis points QoQ.

Asset Quality

SBI Card maintained a stable asset quality with:

Capital Adequacy and Market Position

The company's capital position remains strong with a Capital Adequacy Ratio of 23.22%. SBI Card continues to hold a significant market share, maintaining its position as the second-largest credit card issuer in India in terms of cards-in-force.

Strategic Initiatives

SBI Card is pursuing sustained growth through several strategic initiatives, including:

1. Expanding penetration in tier-2 and beyond cities
2. Focusing on digital innovation
3. Developing strategic co-branded offerings

The company is benefiting from accelerating retail and UPI spending patterns, which is reflected in the 21% YoY growth in overall spends.

Conclusion

SBI Card's performance in the first quarter demonstrates its resilience and ability to capitalize on the growing credit card market in India. The company's strategic focus on expanding its reach, coupled with its strong capital position, positions it well for continued growth in the coming quarters.

SBI Cards and Payment Services Limited , one of India's leading credit card issuers, has announced its financial results for the first quarter, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported a robust 12% year-on-year increase in total revenue, reaching ₹5,035.00 crore compared to ₹4,483.00 crore in the same quarter last year. This growth was primarily driven by:

• Interest income, which rose by 11% to ₹2,493.00 crore
• Fees and commission income, up by 13% to ₹2,191.00 crore

Profit Decline

Despite the revenue growth, SBI Cards experienced a 6% year-on-year decrease in net profit:

• Net profit stood at ₹556.00 crore, down from ₹594.00 crore in the same quarter last year
• However, the profit showed a 4% increase quarter-on-quarter from ₹534.00 crore in the previous quarter

Key Performance Indicators

The company demonstrated growth in several key areas:

• Cards-in-force grew by 10% year-on-year to 2.12 crore
• Spends increased by 21% year-on-year to ₹93,244.00 crore
• Receivables rose by 7% year-on-year to ₹56,607.00 crore

Asset Quality

SBI Cards maintained relatively stable asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio slightly improved to 3.07% from 3.08% quarter-on-quarter
• Net Non-Performing Assets (NNPA) ratio improved to 1.42% from 1.46% quarter-on-quarter

Operational Highlights

• New account volume stood at 8.73 lakh
• The company's market share for cards-in-force increased to 19.1% from 18.5% year-on-year
• Spends market share improved to 16.6% from 15.9% year-on-year

Financial Ratios

Conclusion

The mixed results reflect the competitive landscape of the credit card industry in India, with SBI Cards demonstrating strong top-line growth but facing pressure on profitability. The company's ability to maintain its market position while managing asset quality will be crucial for its performance in the coming quarters.