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Results - Analysis
Margins, asset quality and credit cost showing improvement
SBI Cards & Payment Services
25-Apr-2025, 07:20
SBI Cards and Payment Services has posted 19% decline in net profit at Rs 534.18 crore in the quarter ended March 2025 (Q4FY2025). The income from operations increased 8% to Rs 4673.95 crore for Q4FY2025, while other income of the company jumped 24% to Rs 157.79 crore. The total income increased 8% to Rs 4831.74 crore for Q4FY2025. Interest expenses increased 10% to Rs 795.26 crore.
Operating expenses increased 11% to Rs 2074.52 crore, allowing the operating profits to improve 4% at Rs 1961.96 crore. The cost-to-income ratio rose to 51.4% in Q4FY2025 from 49.8% in Q4FY2024. Depreciation was reversed amounting to Rs 1.69 crore, while provisions increased 32% to Rs 1245.12 crore. Profit before tax declined 19% yoy basis at Rs 718.53 crore. Effective tax rate increased to 25.7% in Q4FY2025 from 25.4% in Q4FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, fell 19% to Rs 534.18 crore for Q4FY2024.
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SBI Cards and Payment Services has posted 19% decline in net profit at Rs 534.18 crore in the quarter ended March 2025 (Q4FY2025). The income from operations increased 8% to Rs 4673.95 crore for Q4FY2025, while other income of the company jumped 24% to Rs 157.79 crore. The total income increased 8% to Rs 4831.74 crore for Q4FY2025. Interest expenses increased 10% to Rs 795.26 crore.
Operating expenses increased 11% to Rs 2074.52 crore, allowing the operating profits to improve 4% at Rs 1961.96 crore. The cost-to-income ratio rose to 51.4% in Q4FY2025 from 49.8% in Q4FY2024. Depreciation was reversed amounting to Rs 1.69 crore, while provisions increased 32% to Rs 1245.12 crore. Profit before tax declined 19% yoy basis at Rs 718.53 crore. Effective tax rate increased to 25.7% in Q4FY2025 from 25.4% in Q4FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, fell 19% to Rs 534.18 crore for Q4FY2024.
Book value of the company stood at Rs 144.9 per share, while the adjusted book value net of NNPA stood at Rs 136.3 end March 2025.
Business highlights
New accounts volume at 1,109K accounts in Q4FY25 vs 1,029K accounts in Q4FY24 Card-in-force grew by 10% YoY at 2.08 crore as of Q4FY25 vs 1.89 crore as of Q4FY24 Spends grew by 11% YoY at Rs 88365 crore in Q4FY25 vs Rs 79653 crore in Q4FY24 Receivables grew by 10% YoY at Rs 55,840 crore in Q4FY25 vs Rs 50,846 crore in Q4FY24 Market share - forFY25 Card-in-force is 18.9% (FY'24: 18.6%), Spends is 15.6% (FY'24:17.8%), as per RBI Industry report available till February 2025 ROAA at 3.4% in Q4FY25 vs 4.7% in Q4FY24. ROAE at 15.5% in Q4FY25 vs 22.1% in Q4FY24 Fees and commission income increased by 2% to Rs 2259 crore in Q4FY25 vs Rs 2209 crore in Q4FY24. Finance costs increased by 10% to Rs 795 crore in Q4FY25 vs Rs 724 crore in Q4FY24 Impairment losses & bad debts expenses increased by 32% at Rs 1245 crore in Q4FY25 vs Rs 944 crore in Q4FY24 Total Balance Sheet size increased to Rs 65546 crore end March 2025 as against Rs 58171 crore end March 2024. Total Gross Advances (Credit card receivables) moved up to Rs 55,840 crore at end March 2025, as against Rs 50,846 crore at end March 2024. Net worth was at Rs 13,853 crore as against Rs 12,156 crore as of March 2024 The Gross non-performing assets were at 3.08% of gross advances at end March 2025 as against 2.76% end March 2024. Net non-performing assets were at 1.46% end March 2025 as against 0.99% end March 2024. CRAR was 22.9% end March 2025 compared to 20.5% as of March 2024. The tier I capital in respect of an NBFC-ND-SI, at any point of time, can't be less than 10%. Company's Tier I capital was 17.5% as of March 2025 compared to 16.5% as of March 2024.'
Financial Performance FY2025
The income from operations increased 7% to Rs 18072.22 crore for FY2025, while other income of the company jumped 10% to Rs 564.93 crore. The total income increased 7% to Rs 18637.15 crore for FY2025. Interest expenses increased 22% to Rs 3178.40 crore. Operating expenses declined 4% to Rs 7859.74 crore, allowing the operating profits to improve 13% at Rs 7599.01 crore. The cost-to-income ratio improved to 50.8% in FY2025 from 54.9% in FY2024. Depreciation declined -25% to Rs 146.82 crore, while provisions jumped 48% to Rs 4871.51 crore. Profit before tax declined 20% yoy basis at Rs 2580.68 crore. Effective tax rate increased to 25.7% in FY2025 from 25.5% in FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, declined 20% to Rs 1916.41 crore for FY2025.| SBI Cards and Payment Services : Results | ||||||
| ' | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Income from operations | 4673.95 | 4347.72 | 8 | 18072.22 | 16968.42 | 7 |
| Other Income | 157.79 | 126.85 | 24 | 564.93 | 515.08 | 10 |
| Total Income | 4831.74 | 4474.57 | 8 | 18637.15 | 17483.50 | 7 |
| Interest Expenses | 795.26 | 723.82 | 10 | 3178.40 | 2595.22 | 22 |
| Other expenses | 2074.52 | 1866.56 | 11 | 7859.74 | 8172.31 | -4 |
| Gross profit | 1961.96 | 1884.19 | 4 | 7599.01 | 6715.97 | 13 |
| Depreciation | -1.69 | 51.63 | -103 | 146.82 | 196.75 | -25 |
| Profit before tax and Provisions | 1963.65 | 1832.56 | 7 | 7452.19 | 6519.22 | 14 |
| Provisions and write off | 1245.12 | 944.40 | 32 | 4871.51 | 3287.42 | 48 |
| Profit before tax' | 718.53 | 888.16 | -19 | 2580.68 | 3231.80 | -20 |
| Provision for tax | 184.35 | 225.79 | -18 | 664.27 | 823.92 | -19 |
| PAT | 534.18 | 662.37 | -19 | 1916.41 | 2407.88 | -20 |
| EPS (Rs)* | 22.5 | 27.8 | ' | 20.1 | 25.3 | ' |
| Adj BV (Rs) | 136.3 | 121.8 | ' | 136.3 | 121.8 | ' |
| * Annualised on current equity of Rs 951.36 crore, Face value of Rs 10, Excluding extraordinary items. | ||||||
| Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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