SBI Cards Q4 Review - Robust Growth In Spends; Lower Provisioning Drives Big Earnings Beat: Motilal Oswal

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..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Cards Q4 Review - Robust Growth In Spends; Lower Provisioning Drives Big Earnings Beat: Motilal Oswal

SBI Cards Q4 Review - Robust Growth In Spends; Lower Provisioning Drives Big Earnings Beat: Motilal Oswal

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