SBI Card on Wednesday reported a net profit of Rs 557 crore for the quarter ended December 31, marking a year-on-year increase of 45.4 per cent that failed to meet analysts’ expectations.
The credit card issuer’s net interest income (NII) — a key measure of a financial institution’s top line — grew 11.5 per cent to Rs 1,751 crore, according to a regulatory filing.
According to Zee Business research, SBI Card was estimated to register a third-quarter net profit of Rs 600 crore and a net interest income of Rs 1,571 crore.
SBI Card’s quarterly revenue grew 12 per cent to Rs 5,353 crore, according to the filing.
Total spends surged 33 per cent to Rs 1,14,702 crore, while receivables went up 4 per cent to Rs 57,213 crore.
SBI Card said its total operating cost increased 23 per cent to Rs 2,597 crore, and earnings before credit costs increased 8 per cent to Rs 1,971 crore.
SBI Card asset quality
The card issuer’s asset quality — measured in sequential changes in the proportion of bad loans in total loans — remained largely stable.
Its gross non-performing assets (GNPAs) — or gross bad loans — stood at 2.86 per cent of total loans as of December 31, as against 2.85 per cent as of September 30.
Net non-performing assets (NNPAs) were at 1.28 per cent as against 1.29 per cent.
SBI Card shares vs Nifty50 vs Nifty Bank
Earlier on Wednesday, SBI Card shares rose 1.5 per cent to close at Rs 782.3 apiece on BSE.
At this level, the SBI Card stock has declined 8.7 per cent so far this year, underperforming declines of 3.1 per cent and 0.2 per cent in the Nifty50 and Nifty Bank, respectively.
SBI Card shares have gained 3.4 per cent in a year, while the Nifty and Nifty Bank indices have risen 10.4 per cent and 22 per cent, respectively.
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