BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
SBI Cards and Payment Services Ltd. reported a mixed quarter, with a miss in net interest income/pre-provision operating profit, while net earnings delivered a significant beat, aided by a sharp decline in provisions.
Profit after tax grew 231% YoY to Rs 5.8 billion (our estimate: Rs 4.5 billion).
Net interest margin contracted by 80 basis points to 13.2% in Q4 (versus 14% in Q3 FY22) due to a significant (down 110 bps) moderation in yields as the revolver mix fell to 25% versus 27% in Q3 FY22.
Trends in spends both retail/corporate was healthy at 40%/102% YoY. Overall spends grew 51% YoY.
SBI Cards' gross non-performing asset ratio moderated marginally by 18 bps QoQ to 2.22%, while net non-performing asset fell 5 bps QoQ to 0.78%.
Reserve Bank of India-restructured book declined to sub-1%. Return on asset/return on equity stood robust at 7%/30.4% in Q4 FY22.
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