SBI Card Q4 PAT tumbles 66% on Covid-19 provisions

SBI Card and Payment Services reported 66.4% decline in net profit to Rs 83.54 crore in Q4 March 2020 (Q4 FY20) compared with net profit of Rs 248.73 crore in Q4 March 2019 (Q4 FY19).

Profit before tax (PBT) fell 70.9% to Rs 112.08 crore in Q4 FY20 over Q4 FY19. Total income rose 20.9% to Rs 2,510.39 crore in Q4 FY20 as against Rs 2,076.25 crore in Q4 FY19.

Total expenditure in Q4 FY20 rose 41.79% on a year-on-year (YoY) basis to Rs 2,398.31 crore, mainly on account of surge in impairment losses & bad debts which stood at Rs 838.18 crore (up 138.3% YoY).

SBI Card's net profit jumped 43.9% to Rs 1244.82 crore on a 33.8% rise in total income to Rs 9752.29 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 1,729.63 crore in FY20, up by 29.6% from Rs 1,335.08 crore in FY19.

Interest income increased 35.4% to Rs 4,841.30 crore in FY20 over FY19, 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 29.5% from Rs 3,072.04 crore for FY19 to Rs 3,978.66 crore for FY20. Late fee has a reversal of Rs 90 crore during FY20 due to impact of COVID.

Impairment losses & bad debts expenses for the year increased by 69% to Rs 1,940.25 crore in FY20 from Rs 1,147.74 crore in FY19.

"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 Rs 489 crore", SBI Card said in a statement.

CIF (cards-in-force) grew by 28% to 1.05 crore and spends grew by 27% to Rs 130,915 crore in FY20 over FY19. The company's market share stood at 18.2% in FY20, higher than 17.6% in FY19.

Total credit card receivables as of 31 March 2020 were Rs 24,140.61 crore, an increase of 30.3% from Rs 18,526.29 crore as of 31 March 2019.

The gross non-performing assets were at 2.01% of gross advances as on 31 March 2020 as against 2.44% as on 31 March 2019. The provision coverage ratio increased to 67.20% in 31 March 2020 from 66.48% in 31 March 2019.

SBI Card and Payment Services is a non-banking financial company (NBFC) that offer extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel & fuel and banking partnerships cards along with corporate cards covering all major cardholders' segments in terms of income profile and lifestyle.

Shares of SBI Card fell 2.15% to end at Rs 561.45 on Friday.

Powered by Capital Market - Live News