SBI Cards and Payment Services Limited has announced its financial results for the quarter ended December 31, 2024. The company reported a slight 1% year-on-year (YoY) increase in total revenue, which reached ₹4,767 crore, compared to ₹4,742 crore in the same period last year. However, the company saw a significant 30% drop in profit after tax (PAT), which stood at ₹383 crore, down from ₹549 crore in Q3 FY24.
The decline in PAT was primarily driven by a 49% increase in impairment on financial instruments, which amounted to ₹1,313 crore in Q3 FY25, up from ₹883 crore in the same period last year. Despite the decrease in profit, SBI Cards experienced growth in key business metrics.
Key Financial and Business Highlights:
- Revenue Growth: Total revenue increased by 1% YoY, with interest income rising by 15% to ₹2,399 crore, compared to ₹2,082 crore in Q3 FY24. However, fees and commission income decreased by 13% to ₹2,220 crore, compared to ₹2,539 crore in Q3 FY24.
- Strong Customer Growth: The company saw a 7% increase in new accounts volume, reaching 1.175 million in Q3 FY25, up from 1.096 million in Q3 FY24. The total number of cards-in-force grew by 10% YoY, totaling 2.02 crore cards by the end of Q3 FY25.
- Retail Spending: Retail spends showed a strong 10% growth, totaling ₹80,792 crore in Q3 FY25, compared to ₹73,519 crore in Q3 FY24.
- Receivables Growth: The company’s receivables grew by 12% to ₹54,773 crore, up from ₹48,850 crore in Q3 FY24.
Profitability and Capital Adequacy:
SBI Cards’ return on assets (ROAA) decreased to 2.4% in Q3 FY25 from 4.0% in Q3 FY24. Similarly, return on equity (ROAE) stood at 11.5%, down from 19.3% in the previous year. Despite the decline in profitability, the company maintained a strong capital position, with a capital adequacy ratio (CAR) of 22.9% as of December 31, 2024, and a Tier 1 ratio of 17.0%, up from 16.3% in the same period last year.
Asset Quality:
The company’s gross non-performing assets (NPAs) stood at 3.24% of gross advances as of December 31, 2024, compared to 2.64% as of the same date in 2023. Net NPAs were at 1.18%, up from 0.96% a year ago.
As of December 31, 2024, SBI Cards’ total assets increased to ₹62,563 crore, compared to ₹58,171 crore as of March 31, 2024. The company’s total advances (net of provisions) rose to ₹52,808 crore, from ₹49,079 crore in March 2024. The company’s net worth stood at ₹13,547 crore as of December 31, 2024, compared to ₹12,156 crore in the previous fiscal year.
SBI Cards remains a dominant player in the Indian credit card industry, with a market share of 18.7% in cards-in-force and 15.6% in retail spends as of December 2024. The company is focused on growing its customer base while maintaining a strong financial position, despite facing pressures on its profitability.
SBI Cards continues to be a technology-driven company with a diversified portfolio of credit cards targeting various customer segments. The company is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under the ticker symbol ‘SBICARD’.
