SBI Card Financial Statements for the Year / Quarter ended March 31, 2020
Posted on: 09/May/2020 12:02:07 PM
FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2020
The Board of Directors of SBI Cards and Payment Services Limited approved the Company’s results for the full year ended March 31, 2020, at their meeting held on Friday, May 8, 2020. The accounts have been subjected to audit by the statutory auditors of the Company.
Performance Highlights (FY20)
PAT grew by 44% to ₹1,245 Crore (Ex COVID ₹1,662 Crore; up 92%).
ROAA up by 64bps at 5.5% (Ex COVID at 7.2%)
ROAE at 27.4% (FY19 : 28.4%; FY20 Ex COVID at 35.0%)
Capital Adequacy Ratio (CAR) at 22.4% (FY19 : 20.1%); Tier 1 at 17.7% (FY19 : 14.9%)
Key Metrics
Cards grew by 28% to 1.05 Cr, Spends grew by 27% to ₹130,915 Crore, Receivables grew by 30% to ₹24,141 Crore
Market share - Cards at 18.2%, up 68bps; Spends at 17.9%, up 77bps (Till Jan’20)
Cost to Income ratio improved by 388bps to 56.6%
GNPA improves by 43bps to 2.01%
Profit & Loss Account for the Year ended March 31, 2020
. Total income increased by ₹2,465.44 Cr, or 33.8%, from ₹7,286.85 Cr for FY19 to ₹9,752.29 Cr for FY20. This increase was a result of the following key factors:
· Interest income increased by ₹1,265.59 Cr, or 35.4%, from ₹3,575.71 Cr for FY19 to ₹4,841.30 Cr for FY20, primarily due to a 28.9% increase in the average amounts of credit card receivables in FY20 as compared to FY19.
· Income from fees and services increased by ₹906.63 Cr, or 29.5%, from ₹3,072.04 Cr for FY19 to ₹3,978.66 Cr for FY20. Late fee has a reversal of ₹90 Cr during FY20 due to impact of COVID.
. Finance costs increased by ₹291.57 Cr, or 28.9%, from ₹1,009.36 Cr for FY19 to ₹1,300.93 Cr for FY20.
. Total Operating cost increased by ₹986.27 Cr, or 26.0%, from ₹3,794.67 Cr for FY19 to ₹4,780.95 Cr for FY20.
. Impairment losses & bad debts expenses for the year increased by ₹792.51 Cr, or 69.0%, from ₹1,147.74 Cr for FY19 to ₹1,940.25 Cr for FY20.
The COVID-19 global pandemic has given rise to unprecedented challenges in the economic situation. The Government of India mandated a nation-wide “Lockdown” from March 25, 2020. To ease the financial burden, the RBI allowed institutions to extend a payment moratorium from March 01, 2020 to May 31, 2020 for its customers. SBI Card has also complied with RBI guidelines on the same.
Considering the possible effects from the pandemic relating to COVID-19, Company have performed sensitivity analysis and based on current estimates have created specific COVID-19 related provision of ₹489 Cr.
. Profit before tax increased by ₹394.55 Cr, or 29.6%, from ₹1,335.08 Cr for FY19 to ₹1,729.63 Cr for FY20. Excluding COVID-19 impact of ₹579 Cr, PBT for FY20 would have been ₹2,309 Cr, growth of 73%.
. Profit after tax for FY20 increased by ₹379.85 Cr, or 43.9%, from ₹864.97 Cr for FY19 to ₹1,244.82 Cr for FY20. Excluding COVID-19 impact, PAT for FY20 would have been ₹1,662 Cr, growth of 92%.
Balance Sheet as of March 31, 2020
. During the FY20, Company got successfully listed on BSE and NSE. The shareholders diluted 14% of their holding and Company raised fresh equity capital of ₹499 Cr to utilize for augmenting Company’s capital base to meet future capital requirements.
. Total Balance Sheet size as of March 31, 2020 was ₹25,302.80 Cr as against ₹ 20,146.17 Cr as of March 31, 2019, a growth of 25.6%.
. Net worth as of March 31, 2020 was ₹5,412.73 Cr as against ₹3,659.29 Cr as of March 31, 2019, a growth of 47.9%.
. Total Credit card receivables as of March 31, 2020 were ₹24,140.61 Cr, an increase of 30.3 % from ₹18,526.29 Cr as of March 31, 2019.
Asset Quality
The Gross non-performing assets were at 2.01% of gross advances as on March 31, 2020 as against 2.44% as on March 31, 2019. The Provision Coverage Ratio increased to 67.20% as against 66.48% as of March 31, 2019.
Capital Adequacy
As per the capital adequacy norms issued by the RBI, Company’s capital to risk ratio consisting of tier I and tier II capital should not be less than 15% of its aggregate risk weighted assets on - balance sheet and of risk adjusted value of off-balance sheet items. As of March 31, 2020, Company’s CRAR was 22.4% compared to 20.1% as of March 31, 2019.
The tier I capital in respect of an NBFC-ND-SI, at any point of time, is required to be not be less than 10%. Company’s Tier I capital was 17.7% as of March 31, 2020 compared to 14.9% as of March 31, 2019.
Rating
CRISIL Long Term - AAA/Stable
CRISIL Short Term - A1+
ICRA Long Term - AAA/Stable
ICRA Short Term ; - A1+
