State Bank of India Q4 Results 2023: SBI continues streak of stellar earnings with PAT of Rs 167 billion beating all estimates, quarterly RoA reaching 1.23 percent for Q4FY23
SBI continues its streak of stellar earnings with PAT of Rs 167 billion beating all estimates, quarterly RoA reaching 1.23% for Q4FY23
Q4FY23 Earnings Summary
Net profit for FY23 crosses Rs 50,000 crores and stands at Rs 50,232 crores witnessing a growth of 58.58% YoY.
Strong NII growth of 29.5 % YoY and 6% QoQ to Rs 43,092 crore, led by higher 16% YoY advances growth and further improvement in NIMs (up 10 bps QoQ) to 3.60%. Domestic NIMs.
Overall gross credit reached Rs 32.7 lakh crore growing 16% YoY. Domestic Advances growth driven by Retail Personal Advances (17.64% YoY) followed by SME Advances which grew by 17.59% YoY. Foreign loans were up 19.5% YoY at Rs 4.92 lakh crore. Agri and Corporate loans registered YoY growth of 13.31% and 12.52% respectively.
Deposits growth moderated and came in at 9.2% YoY to Rs 44.23 lakh crore where CASA deposits grew just 4.99% YoY. CASA ratio continues to decline to 43.80% from 44.48% QoQ.
Asset quality improvement continues as GNPA ratio fell 37 bps QoQ to 2.77% while net NPA was down 10 bps QoQ to 0.67%. Fresh slippages came at Rs 3,185 crore for Q4FY23. Overall provisions declined 54% YoY to Rs 3,316 crore. Loan loss provisions declined from Rs 1,586 crore to Rs 1,278 crore.
Other income was up 17% YoY and 22% QoQ to Rs 13,961 crore led by higher profit on sale of investments and recovery as fee income remained flat.
Operating expenses surprised negatively rising 27% YoY and 22% QoQ mainly led by wage arrear provisions. Hence operating profit Led by lower credit costs and strong top-line, PAT grew 82% YoY and up 17% QoQ at Rs 16,695 crore.
ICICIdirect Research view on State Bank of India Stock
View: Strong Net Interest Income Performance and rising return ratios of 1.23% RoA (annualised) and 0.96% for FY23 are strengthening the base for continued robust performance. We believe consistency on higher growth and return ratios augur well for stock performance. We remain positive on SBI.
Impact: Positive
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