SBI Q3 Results Review - Margin Expansion Aids Core Profitability: Systematix

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.In Q3 FY23, State Bank of India posted stable core performance with core pre-provision operating profit (adjusted for other interest income, treasury gains, and two loans recoveries), as a percentage to average assets at 135 basis points, as against 133 bps in Sep-22 quarter. Should we exclude the adverse impact of the provision for employees’ wage revision (of Rs 9.96 billion), the ratio improves by 10 bps to 143 bps. The improvement in core operating performance was mainly due to expansion in the domestic margin (reported net interest margin) by 14 bps QoQ to 369 bps. Core fee income performance was relatively lackluster. Asset quality performance was stable with a gross delinquency rate at 44 bps (as against 35 bps in Sep-22) and the net delinquency ratio was at 21 bps (as compared to (-)40 bps in Sep-22). SBI’s credit cost provision was at 22 bps, provision cover (excluding two) remained stable at 76% (from 78% in Sep-22); provision coverage ratio (including two) was at ~92%. The drop in accumulated provision to Rs 749 bn (from Rs 832 billion in Sep-22) was mainly due to the high loan write-off of Rs 100 billion. .Click on the attachment to read the full report:.More Research Reports On SBI's Q3 FY23 Results Review.Steady Asset Quality Metrics; Growth Outlook Remains Upbeat: Dolat CapitalAnother Strong Performance With Highest Quarterly Profit: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Q3 Results Review - Margin Expansion Aids Core Profitability: Systematix

The improvement in core operating performance was mainly due to expansion in the domestic margin by 14 bps QoQ to 369 bps.

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SBI Q3 Results Review - Margin Expansion Aids Core Profitability: Systematix

The improvement in core operating performance was mainly due to expansion in the domestic margin by 14 bps QoQ to 369 bps.

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