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 at 9.04 lakh, with net new card addition of 3.5 lakh, representing 17.4% of industry additions.

• Retail spends grew 23% year-over-year to INR 71,880 crore; total card spends at INR 77,129 crore, up 4%; receivables increased 22% 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 extensive marketing.

• ESG and CSR initiatives included INR 11.51 crore investment in elderly care, cancer assistance, and climate-smart agriculture, with additional employee welfare and paper reduction programs.

Financial highlights

• Total revenue grew 11% year-over-year to INR 4,483 crore in Q1 FY25; profit after tax stood at INR 594 crore, nearly flat year-over-year.

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

• Cost of funds rose 13 bps to 7.5%; net interest margin stable at 10.9%.

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

• Earnings per share (basic and diluted) stood at ₹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 maintained at 15%-18%, with spend growth at 20%-23%.

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

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