SBI Cards Q4 Results Review - Low Opex Aids Earnings; Credit Cost Stays High: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.SBI Cards and Payment Services Ltd. reported a healthy beat on profit after tax in Q4 FY24 amid lower opex (20% lower than our estimate). Profit after tax jumped 21% QoQ to Rs 6.6 billion, while net interest income inched up 2% QoQ (in line).Margin declined 39 bp QoQ to 10.9% on the back of a sharp decline in yields on a quarterly average basis. The share of revolver mix improved to 24% versus 23% in Q3, while EMI mix declined to 37% versus 38% in Q3.Spending growth decelerated by 18% QoQ, as corporate spending declined 35% YoY after recent RBI guidelines. Retail spending, however, grew 25% YoY. Asset quality remained under pressure, with gross/net non-performing asset ratios increasing 12 bp/2 bp QoQ to 2.76%/0.99%. The drop in corporate spending led to a decline in overall opex, and as a result return on asset/return on equity improved to 4.7%/22.2%. We further cut our FY25E/FY26E earnings per share by 7%/8%, factoring in sharp margin pressure and elevated credit costs. We maintain Neutral with a target price of Rs 850 (premised on 20 times FY26E EPS)..Click on the attachment to read the full report:.SBI Card Q4 Results: Profit Rises 11% On Higher Income.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

SBI Cards Q4 Results Review - Low Opex Aids Earnings; Credit Cost Stays High: Motilal Oswal

NIM contracts sharply by 39 basis points QoQ

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SBI Cards Q4 Results Review - Low Opex Aids Earnings; Credit Cost Stays High: Motilal Oswal

NIM contracts sharply by 39 basis points QoQ

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