SBI Cards and Payment Services (SBICARD) Q1 24/25 earnings summary

Executive summary

• Cards in force reached 1.992 crore, up 11% year-over-year, maintaining 18.5%-19.8% market share.

• Retail spends grew 23% year-over-year to INR 71,880 crore; total card spends at INR 77,129 crore, up 4%.

• New account acquisition at 9.04 lakh, with net new card addition of 3.5 lakh, representing 17.4% of industry additions; new accounts opened declined 12% sequentially but up 18% year-over-year.

• Digital initiatives like instant card issuance on YONO and internet banking are driving customer acquisition.

• New travel-centric credit card (SBI Card MILES) launched, receiving strong consumer response and supported by a major PR campaign.

Financial highlights

• Total revenue grew 11% year-over-year to INR 4,483 crore in Q1 FY25; revenue from operations at ₹4,358.64 crore.

• PAT stood at INR 594 crore, nearly flat versus INR 593 crore in Q1 FY24; EPS at ₹6.25.

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

• Cost-to-income ratio improved to 48.9%-49.1% for Q1 FY25.

• Interest income rose 24% year-over-year to ₹2,243 crore; operating costs declined 7% year-over-year.

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 maintained at 15%-18%, with spend growth at 20%-23%.

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

• Management notes consistent revenues and improved cost-to-income ratio, with stable profitability despite elevated credit costs.