1Q27: Credit cost moderation continues; Asset growth recovery awaited

Research evidence excerpt

1Q27: Credit cost moderation continues; Asset growth recovery awaited

iQprofile SM SBI Cards

Key Income Statement Data (Mar) 2025A 2026A 2027E 2028E 2029E Company Sector

(Rs Millions) Financial Services-Consumer/Commercial

Net Interest Income 61,689 68,296 67,333 73,063 84,008

Net Fee Income 80,029 91,662 103,198 116,344 133,099

Securities Gains / (Losses) NA NA NA NA NA Company Description Other Income 7,320 9,543 11,442 14,098 16,595

Total Non-Interest Income 87,348 101,205 114,640 130,442 149,694 SBI Cards and Payment Services Limited (SBIC) started its

Total Operating Income 149,038 169,500 181,973 203,504 233,703 operations in 1998 as a JV between SBI and GE Capital. GE

Operating Expenses (80,066) (97,605) (107,371) (118,975) (134,993) Capital's ownership stake in SBIC was acquired by SBI and

Pre-Provision Profit 68,972 71,896 74,602 84,529 98,710 the Carlyle Group in 2017. Effective from April 1, 2018, SBI

Provisions Expense (43,165) (42,764) (33,203) (38,533) (41,931)

Business Process and Management Services Pvt Ltd

Operating Profit 25,807 29,132 41,399 45,996 56,779

Non-Operating Income NA NA NA NA NA (SBIBPMSL), an entity that provided back-end payment and

Pre-Tax Income 25,807 29,132 41,399 45,996 56,779 processing services to SBIC, was merged into SBIC. SBIC

Net Income to Comm S/Hold. 19,164 21,667 30,791 34,210 42,230 also acts as corporate insurance agent for selling insurance

Adjusted Net Income (Operating) 19,188 21,746 30,869 34,288 42,308 policies to credit card customers

Key Balance Sheet Data

Total Assets 655,458 663,278 751,113 792,813 875,157

Average Interest Earning Assets 515,068 544,595 573,830 627,897 690,956 Investment Rationale

Weighted Risk Assets 704,197 163,784 231,023 178,704 246,421 Our Underperform rating on SBIC is premised on (i)