SBI Cards and Payment Services shares rise ahead of Q2 earnings, here's what to expect
SBI Cards share price today: SBI Cards stock has gained after three days of consecutive fall. The stock gained 1.13 per cent intraday to Rs 857.45 against the previous close of Rs 844.90 on BSE
- Oct 27, 2022,
- Updated Oct 27, 2022 10:13 AM IST
Shares of SBI Cards and Payment Services were trading higher in early trade ahead of the firm's September quarter earnings set to be announced today. SBI Cards stock has gained after three days of consecutive fall. The stock gained 1.13 per cent intraday to Rs 857.45 against the previous close of Rs 844.90 on BSE.
SBI Cards shares are trading higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages. The share has lost 25 per cent in one year and fallen 8 per cent since the beginning of this year. Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 96.43 on BSE. Market cap of the firm rose to Rs 80,617 crore on BSE.
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Kotak Institutional Equities expects SBI Cards to report a 72.74 per cent rise in profit to Rs 595.8 crore in Q2 against Rs 344.9 crore profit in the corresponding quarter of the previous fiscal. However, profit is seen falling 5 per cent compared to the profit of Rs 6269 crore in the June quarter. Net interest income (NII) is seen rising 22.8 per cent to Rs 1,128.4 crore in Q2 against Rs 919 crore in the second quarter of the previous fiscal. On a quarter-on-quarter basis, NII is seen rising 4.5 per cent from Rs 1,078.9 crore in the June quarter.
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The brokerage expects revenues to rise at a robust pace of 27% yoy, while NII growth is expected to grow 23% yoy on the back of 40% yoy growth in receivables. Non-interest income growth of 30% yoy is primarily driven by solid recovery in spends (40% yoy).
Provisions are expected to fall 25% yoy as the stress on the asset book is largely behind the bank, said Kotak adding that it expects normalisation in the Stage 1-3 buckets. Incremental provisions is mainly on account of higher spends and normalisation of business.
Motilal Oswal Financial Services expects profit to rise 71.8 per cent to Rs 590 crore in Q2 against Rs 340 crore profit in the corresponding quarter of the previous fiscal. Net interest income (NII) is seen rising 16.6 per cent to Rs 1,070 crore in Q2 against Rs 920 crore in the second quarter of the previous fiscal.
SBI Cards logged a growth of 105.80% in net profit to Rs 626.91 crore in Q1 compared to Rs 304.61 crore of the same quarter last year. Q1 profit after tax climbed 7.93% from Rs 580.86 crore in the preceding quarter. Revenue from operations rose 31% to Rs 3,100 crore in Q1FY23 and 9% qoq. Interest income came in at Rs 1,387 crore in Q1, climbing 20% yoy and 10% qoq.
Shares of SBI Cards and Payment Services were trading higher in early trade ahead of the firm's September quarter earnings set to be announced today. SBI Cards stock has gained after three days of consecutive fall. The stock gained 1.13 per cent intraday to Rs 857.45 against the previous close of Rs 844.90 on BSE.
SBI Cards shares are trading higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages. The share has lost 25 per cent in one year and fallen 8 per cent since the beginning of this year. Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 96.43 on BSE. Market cap of the firm rose to Rs 80,617 crore on BSE.
ALSO READ: RBI allows linking RuPay credit cards to UPI: List of banks that will provide this facility
Kotak Institutional Equities expects SBI Cards to report a 72.74 per cent rise in profit to Rs 595.8 crore in Q2 against Rs 344.9 crore profit in the corresponding quarter of the previous fiscal. However, profit is seen falling 5 per cent compared to the profit of Rs 6269 crore in the June quarter. Net interest income (NII) is seen rising 22.8 per cent to Rs 1,128.4 crore in Q2 against Rs 919 crore in the second quarter of the previous fiscal. On a quarter-on-quarter basis, NII is seen rising 4.5 per cent from Rs 1,078.9 crore in the June quarter.
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The brokerage expects revenues to rise at a robust pace of 27% yoy, while NII growth is expected to grow 23% yoy on the back of 40% yoy growth in receivables. Non-interest income growth of 30% yoy is primarily driven by solid recovery in spends (40% yoy).
Provisions are expected to fall 25% yoy as the stress on the asset book is largely behind the bank, said Kotak adding that it expects normalisation in the Stage 1-3 buckets. Incremental provisions is mainly on account of higher spends and normalisation of business.
Motilal Oswal Financial Services expects profit to rise 71.8 per cent to Rs 590 crore in Q2 against Rs 340 crore profit in the corresponding quarter of the previous fiscal. Net interest income (NII) is seen rising 16.6 per cent to Rs 1,070 crore in Q2 against Rs 920 crore in the second quarter of the previous fiscal.
SBI Cards logged a growth of 105.80% in net profit to Rs 626.91 crore in Q1 compared to Rs 304.61 crore of the same quarter last year. Q1 profit after tax climbed 7.93% from Rs 580.86 crore in the preceding quarter. Revenue from operations rose 31% to Rs 3,100 crore in Q1FY23 and 9% qoq. Interest income came in at Rs 1,387 crore in Q1, climbing 20% yoy and 10% qoq.