SBI Cards and Payment Services Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

SBI CARDS AND PAYMENT SERVICES LIMITED

Geojit BNP Paribas

Broker Report

Asset quality woes continue; credit cost rises further

Motilal Oswal

SBI Cards (SBICARD)’s PAT was 8% below estimate at INR5.9b due to lower revenue from operations and higher provisions. NII inched up 4.4% QoQ.

Broker Report

SBI Card (HOLD): Trend of lower NIM, higher credit cost persists

BOB Capital Markets Ltd.

Credit cost soared 50% YoY to Rs 9.4bn (7.9% of loans) in Q4; stress expected to continue in FY25 as well

Broker Report

Low opex aids earnings; credit cost stays high

Motilal Oswal

SBI Cards (SBICARD) reported a healthy beat on PAT in 4QFY24 amid lower
opex (20% lower than our estimate). PAT jumped 21% QoQ to INR6.6b,
while NII inched up 2% QoQ (in line).

Broker Report

First Light | Bajaj Auto, TVS Motor, SBI Card, Laurus Labs, Cipla, Mahanagar Gas, DCB Bank, …

BOB Capital Markets Ltd.

BJAUT: Healthy revival but priced in; downgrade to SELL. TVSL: On a fast track raise to BUY. SBICARD: Asset quality concerns persist; downgrade to HOLD. LAURUS: Challenges galore cut to SELL. CIPLA: Healthy revenue growth, strong margins. MAHGL: Volume growth accelerating, reiterate BUY. DCBB: NII sequentially flat on high interest cost. SBILIFE: ULIP-led growth; maintains market leadership

Broker Report

SBI Card (HOLD): Asset quality concerns persist; downgrade to HOLD

BOB Capital Markets Ltd.

Credit cost soared 66% YoY to Rs 8.8bn in Q3 amid industry-wide stress in unsecured loans; uncertainty persists

Broker Report

Asset quality continues to disappoint; NIMs stable

Motilal Oswal

Broker Report

SBI CARDS AND PAYMENT SERVICES LIMITED

Geojit BNP Paribas

Broker Report

Spends momentum robust; remain watchful on near-term margins

Motilal Oswal

Broker Report

SBI Card (BUY): Challenges persist despite spending frenzy

BOB Capital Markets Ltd.

Credit card spends climbed 27% YoY to a record high of Rs 792bn in Q2; debut on UPI platform promising

Broker Report

NII, PPoP in line; elevated provisioning drags earnings

Motilal Oswal

Broker Report

Improving outlook for NIM, credit cost, opex set up strong earnings prospect

ICICI Securities Limited

SBI Cards (SBIC) reported QoQ PPOP growth of 6% but 14% higher credit cost led to flattish PAT of INR 5.9bn in Q1FY24. While earnings growth has faced challenges of adverse change in mix (delay in revolver build up post covid), higher cost of funds (rate hikes), higher opex (BNPL competition), regulatory challenges (RBI master circular) and higher credit costs including a long-tailed impact of covid (as seen from ~14bps impact from a FY19 cohort in Q1FY24), it has still reported 27% earnings CAGR over the last 5 years ending FY23.

Broker Report

Earnings in line; asset quality stress remains

Motilal Oswal

Broker Report

BOBCAPS Research | SBI Card (BUY): Higher provisions dent net profit

BOB Capital Markets Ltd.

Q1 credit cost climbed 130bps YoY to 7.1% of loans (calc.) owing to stress from customers acquired in CY19, inducing a 5% fall in net profit

Broker Report

SBI CARDS AND PAYMENT SERVICES LIMITED

Geojit BNP Paribas

Broker Report

Prabhudas Lilladhar

Broker Report

NIM bottoming a profitability lever; supportive outlook on cost-to-income, credit cost offer comfort

ICICI Securities Limited

SBI Cards (SBIC) delivered strong PAT of Rs 6 bn in Q4FY23 and Rs22.6bn in FY23 representing 27% CAGR over the last 5 years. This is post the impact of external
overhangs of declining NIMs, loss in fees due to implementation of RBI master
circular issued in Oct’22 and the impact of covid.

Broker Report

SBI Card (BUY): Positive surprise; maintain BUY

BOB Capital Markets Ltd.

Q4 PAT beat our estimate by 10% due to robust revenue (+32% YoY), partially offset by higher credit cost (+60% YoY)

Broker Report

Growth in spends healthy; margins moderate slightly

Motilal Oswal

Broker Report

Valuations appear attractive in light of promising business potential beyond external overhangs

ICICI Securities Limited

There is no change in the business prowess of SBI Cards (SBIC) considering the spends growth and its relative market share in CIF/spends. However, there were external overhangs of declining NIMs and loss in fees due to implementation of RBI master circular.