Sbi Cards & Payment Services Ltd · NSE:SBICARD
Sbi Cards & Payment Services — Q2 FY22 Earnings Presentation
28 slides from Sbi Cards & Payment Services's earnings presentation, Oct 28, 2021
Slide 1: Investor Presentation Q2/H1 FY22
Investor Presentation Q2/H1 FY22 October 28, 2021
Slide 2: Q2 FY22 Key Highlights
Q2 FY22 Key Highlights Robust fundamentals, strong business performance PAT ₹ 345 Cr, 67% YoY Continuing focus on business growth • New accounts at 953k, 39% YoY • Retail spends at ₹ 35,000 Cr+, 41% YoY • Corporate Spends at ₹ 8,400 Cr+, 80% YoY • Receivables at ₹ 26,700 Cr+, 12% YoY Deliv
Slide 3: Executive Summary Q2 FY22
Figures in ₹ Cr Executive Summary Q2 FY22 Profitable operations PAT ₹ 345 Cr, 67% YoY PAT ROAA ROAE 345 4.9% 20.1% 67%/ 13 % 155 bp/ 40 bp 594 bp/ 142 bp Market Share Cards in force 19.4% (FY21 19.1%), Spends 19.0% (H1 FY22)* (FY21 19.4%), Transactions 20.0% ( FY21 19.7%) CAR Receivabl
Slide 4: Performance Highlights H1 FY22
Figures in ₹ Cr Performance Highlights H1 FY22 Profitable operations PAT ₹ 650 Cr, 8% YoY PAT ROAA ROAE 650 4.7% 19.4% Market Share Cards in force 19.4% (FY21 19.1%), Spends 19.0% 8% 16 bp 168 bp (H1 FY22)* (FY21 19.4%), Transactions 20.0% ( FY21 19.7%) 14% YoY in cards, 47% YoY in spend
Slide 5: Key Portfolio Trends
Key Portfolio Trends New Accounts Corporate Spends (‘000) (₹ Cr) 953 8,491 688 609 326 6,162 2,795 3,172 311 316 4,728 2,523 Q2 FY21 Q1 FY22 Q2 FY22 Jul'21 Aug'21 Sep'21 Q2 FY21 Q1 FY22 Q2 FY22 Jul'21 Aug'21 Sep'21 Retail Spends Receivables (₹ Cr) (₹ Cr) 23,978 24,438 26,741 35,070 24,863 27,098 11,
Slide 6: Market Share
Market Share #2 Credit Card Player in India Cards in force Spends Transactions 19.4% 20.0% 19.0% 19.7% 19.1% 19.4% 18.3% 17.9% 17.7% 17.6% 17.1% 15.8% FY19 FY20 FY21 FY22 * FY19 FY20 FY21 FY22* FY19 FY20 FY21 FY22* *As per RBI report available till Aug’21 6
Slide 7: New Accounts and Cards-in-force
New Accounts and Cards-in-force New Accounts (‘000) Cards-in-force (‘000) 12,044 12,580 11,009 688 609 953 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Channel wise Split Channel wise Split 41.8% 52.2% 56.7% 56.9% 57.0% 61.7% 58.2% 47.8% 43.3% 43.1% 43.0% 38.3% Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1
Slide 8: Portfolio Growth
Portfolio Growth Spends (₹ Cr) Receivables (₹ Cr) 33,260 43,560 23,978 24,438 26,741 29,590 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 Spend per Avg Card (₹ ‘000) Receivable per Card (₹) 21,781 20,290 21,257 110 111 142 Q2 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q1 FY22 Q2 FY22 30 day spend active rate %
Slide 9: New Sourcing Portfolio Insights
Portfolio Insights Occupation Salaried Category Age profile By City Tier New Sourcing For Q2 FY22 20% 16% 16% 28% 36% 41% 40% 12% 80% 43% 36% 33% Salaried Self Employed Govt/PSU Cat A Cat B Under 30 31-45 >45 Tier 1 Tier 2 Tier 3 Others 0.87 1.51 0.84 1.10 As on 30th Sep 2021 15% 0.54 12% 1.36 25% 2
Slide 10: Retail Spends Insights
Retail Spends Insights Q2 FY22 % Growth^ Vs Online Spend % Spends Categories Total Spends Online Spends POS Spends DJF’20* Category 1 Departmental Stores, Health, Utilities, 51.9% 53.7% Education & Direct Marketing 19% 22 % 12% 43.0% 44.9% 44.2% Category 2 Consumer durables, Furnishing & 3
Slide 11: Financial Results
Figures in ₹ Cr Financial Results Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY PAT Total Revenue 2,510 2,451 2,695 7% 4,706 5,146 9% Finance Costs 264 229 254 -4% 539 483 -10% Operating Costs 1,106 1,166 1,383 25% 2,013 2,550 27% Earnings before Credit Costs 1,140 1,056 1,058 -7% 2,154 2,114 -2%
Slide 12: Explaining Returns
Explaining Returns Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY Interest Income 21.0% 17.2% 16.8% -421bps 21.9% 16.9% -499bps Fees and other Income 18.7% 18.0% 20.1% 143bps 14.7% 18.9% 425bps Recoveries 1.6% 1.3% 1.7% 9bps 1.7% 1.5% -18bps Total Revenue 41.3% 36.6% 38.7% -268bps 38.2% 37.3% -92bp
Slide 13: Revenue
Figures in ₹ Cr Revenue Composition Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY Revenue from operations Revenue from Operations 2,415 2,362 2,576 7% 4,569 4,938 8% Q2 FY21 Q1 FY22 Q2 FY22 Other Income 95 89 119 26% 137 208 52% Total Revenue 2,510 2,451 2,695 7% 4,706 5,146 9% Finance Costs 264 2
Slide 14: Borrowings & Capital Adequacy
Borrowings & Capital Adequacy Cost of funds Leverage 6.6% 5.2% 5.5% 3.8 3.7 3.8 Q2 FY21 Q1 FY22 Q2 FY22 Sep'20 Jun'21 Sep'21 Borrowing Composition Capital Adequacy Ratio Sep’20 Jun’21 Sep’21 Tier - I Tier - II 15% 25.3% 26.1% 25.0% 34% 34% 4.3% 3.4% 3.2% 28% 21.0% 22.6% 21.8% 57% 58% 60% 8% 6% Sep'2
Slide 15: Structural Liquidity (ALM)
Figures in ₹ Cr Structural Liquidity (ALM) Asset Liability Maturity profile – Sep’21 Inflows Outflows 7881 4,561 ▪ Well matched ALM 3,974 3,860 3,834 4,124 3,717 3,369 2,779 3,118 ▪ ₹6,441 Cr (34%) of sanctioned bank lines 2,577 2,325 unutilized and available for draw down as at 2,133 1,884 1,657 1,
Slide 16: Operating Costs
Figures in ₹ Cr Operating Costs Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY Operating Leverage (9)% (16)% Employee Cost 123 116 115 -7% 235 231 -2% Depreciation 30 33 40 32% 58 72 25% Other operating expenses 953 1,017 1,229 29% 1,720 2,246 31% 10% 19% 25% 9% Operating Costs 1,106 1,166 1,383 25
Slide 17: Asset Quality
Figures in ₹ Cr Asset Quality Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY Stage Wise NEA Impairment and losses 862 645 594 -31% 1,347 1,239 -8% Gross Credit Costs 862 645 594 -31% 1,347 1,239 -8% 23,978 24,438 26,741 Recoveries (97) (88) (118) 22% (135) (206) 52% 7.5% 3.9% 3.4% 12.8% 11.2% Net C
Slide 18: Our long term ESG focus & strategy
Our long term ESG focus & strategy Our Purpose Our Approach to ESG Participation in ESG Index Transform in a sustainable and inclusive ▪ Embracing our responsibility to help address Submissions done | business in the best interest of all environmental, social and economic challenges Scores Awaited s
Slide 19: Highlights from Q2 FY22 – Creating value with ESG
Highlights from Q2 FY22 – Creating value with ESG 2nd Waste Management Facility Environmental Project Inaugurated under CSR initiative (Rs. 39 Lakhs) to recycle plastic waste for commercial use in automobile and construction sectors Co-Working Spaces Hired in Bhubaneshwar, Jaipur, Chandigarh & Luckn
Slide 20: Shareholders Summary
Shareholders Summary Shareholding pattern, 30th September 2021 Top 20 Shareholders as on 30th September 2021 S. No Name of Shareholder % 1 State Bank Of India 69.34 Resident Others 2 CA Rover Holdings 3.10 Individuals 4.00% 3 Life Insurance Corporation Of India 1.23 MF 3.80% 4 Life Insurance Corpora
Slide 21: Annexures
Annexures
Slide 22: P&L Summary
Figures in ₹ Cr P&L Summary P&L Q2 FY21 Q1 FY22 Q2 FY22 YoY H1 FY21 H1 FY22 YoY Interest Income 1,277 1,153 1,173 -8% 2,691 2,327 -14% Income from fees and services 1,019 1,099 1,244 22% 1,687 2,343 39% Service Charges 38 24 36 -7% 56 60 7% Business development incentive income 78 85 121 55% 132 206
Slide 23: Balance Sheet Summary
Figures in ₹ Cr Balance Sheet Summary Balance Sheet Mar’21 Sep’21 Variance% Sep’20 Assets Loans (Net) 23,459 25,394 8% 21,925 Cash & Bank Balances 720 727 1% 690 Investments 958 958 0% 1 Other Financial Assets 276 490 77% 267 Total Financial Assets 25,413 27,569 8% 22,883 PP&E, Intangible & Right of
Slide 24: Recent developments
Recent developments Launch of BPCL SBI Card on Brand Film Campaign RuPay network (Sep’21) ‘Khushiyon ka Credit Card’ (Aug – Sep ‘21) SBI Card has launched BPCL SBI Card on RuPay network. This strategic partnership will enhance Digital film campaign launched to build stronger bond with consumers, by
Slide 25: Product Brief
Product Brief Super Premium Core Cards Co-Brand Cards Banking Retail Travel Central Bank SBI Card Lifestyle Home Centre SBI Card Club Vistara SBI Card PRIME AURUM SBI Card Elite SBI Card PRIME OLA Money SBI Card Air India SBI Signature UCO Bank SBI Card fbb Style Up SBI Card SimplyCLICK SBI Card Sim
Slide 26: 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 deactivated credit Card-in-force cards. Spends Total card spends constitutes the agg
Slide 27: 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 28: Thank You
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