SBI Cards and Payment Services (SBICARD) Q3 24/25 earnings summary

Executive summary

• Cards-in-force surpassed 2 crore in December 2024, growing 10% year-on-year, with 11.75 lakh new accounts added, up 7% YoY.

• Retail spends rose 10% YoY to ₹80,792 Cr, while total spends reached ₹86,093 Cr, down 11% YoY but up 5% QoQ.

• Profit after tax for Q3 FY25 declined 30% YoY to ₹383 Cr, despite total revenue rising 1% YoY to ₹4,767 Cr.

• Receivables increased 12% YoY to ₹54,773 Cr; receivables per card at ₹27,052.

• ESG performance remains strong, with an A rating from MSCI and initiatives in paperless communication and solar power.

Financial highlights

• Revenue from operations for Q3 FY25 at ₹4,619 Cr, up 4% QoQ; 9M FY25 revenue at ₹13,398 Cr, up 6% YoY.

• Interest income grew 15% YoY to ₹2,399 Cr; fee and other revenue at ₹2,220 Cr, down 13% YoY.

• Operating cost at ₹2,107 Cr, down 13% YoY; credit cost at ₹1,313 Cr, up 49% YoY.

• Cost-to-income ratio at 53.5%, up 644 bps YoY; ROAA at 2.4% for the quarter.

• Net worth as of Dec 31, 2024, stood at ₹13,547 Cr, up from ₹12,156 Cr as of Mar 31, 2024.

Outlook and guidance

• Receivables growth for FY26 projected at 12%-15%.

• Growth rate for new cards expected to moderate to 18%-20% in the near term.

• Cost-to-income ratio for the year expected around 52%.

• Management focuses on digital innovation, customer acquisition, and ESG initiatives.

• Emphasis on maintaining strong capital adequacy and asset quality amid evolving market conditions.