SBI Card (SBICARD) Q1 24/25 earnings summary

Executive summary

• Cards in force reached 1.992 crore, up 11% year-over-year, maintaining 18.5% market share; new account acquisition was 9.04 lakh, with net new card additions at 3.5 lakh, representing 17.4% of industry additions.

• Retail spends grew 23% year-over-year to INR 71,880 crore, while total card spends for Q1 FY25 were INR 77,129 crore, up 4% year-over-year; corporate spends reached INR 5,249 crore.

• Installment-based transactions grew 37% year-over-year; online spends contributed 57% of total retail spends.

• Profit after tax for Q1 FY25 was INR 594 crore, nearly flat year-over-year but up 10% sequentially.

• Unaudited financial results for the quarter ended June 30, 2024, were approved by the Board on July 26, 2024, and subjected to limited review by statutory auditors.

Financial highlights

• Revenue from operations for Q1 FY25 was INR 4,483 crore, up 11% year-over-year; interest income rose 24% year-over-year.

• PAT for Q1 FY25 was INR 594 crore, nearly flat versus INR 593 crore in Q1 FY24.

• Receivables grew 22% year-over-year to INR 52,705 crore; receivables per card increased 8% to INR 27,395.

• Cost to income ratio at 48.9% for Q1 FY25, down 753 bps year-over-year.

• Earnings per share (basic and diluted) stood at INR 6.25 for the quarter.

Outlook and guidance

• Credit costs expected to remain elevated, with a reducing trend likely only towards the later part of the financial year.

• Receivable growth guidance remains at 15%-18%, with spend growth expected at 20%-23%.

• Credit cost guidance maintained at 7%-8% for the year.

• Focus remains on growing retail spends and receivables while maintaining asset quality.

• Management confirmed due diligence and consistency in accounting policies.