Conference Call with SBI Cards Management and Analysts on Q4FY20 and Full Year Earnings and Outlook. Listen in to the full earnings transcript.
Highlights from CEO Hardayal Prasad
We have been focusing on strengthening our digital platform and infrastructure in the past few years. This should be a critical factor in helping us weather Covid19.
- PAT grew by 44% to Rs 1,245 crore (Ex COVID this would have been Rs 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%), and Tier 1 at 17.7% (FY19 : 14.9%)
Key Metrics
- Cards grew by 28% to 1.05 crore, Spends grew by 27% to Rs 130,915 crore, Receivables grew by 30% to Rs 24,141 crore
- Market share - we are the second largest player with our market share in cards at 18.2%, up 68bps.
- Share of 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% and we are monitoring this strongly and taking measures to manage risk here.
- Our total income increased by Rs 2,465.44 crore, or 33.8%, from Rs 7,286.85 crore for FY19 to Rs 9,752.29 crore for FY20.
- Impairment losses & bad debts expenses for the year increased by Rs 792.51 crore, or 69%, from Rs 1,147.74 crore for FY19 to Rs.1,940.25 crore 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, the company has performed sensitivity analysis and based on current estimates have created specific COVID19 related provisions of Rs 489 crore.