SBI Q4 Results Review: Profitability Supported By Treasury Gains, One-Offs— Systematix Maintains 'Buy'

The brokerage reduces its FY26 growth estimates on the back of soft loan growth guidance and impact on profitability to be offset by higher treasury gains on falling yields. It retains estimates Mar’26 target price of Rs 940 valuing the standalone bank at 1.3x Mar’27 adjusted book value per share and assigning a value of Rs 190 per share to the subsidiaries. .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..Systematix Report.State Bank of India reported Q4 FY25 PAT of Rs 186 billion (+10% QoQ, -10% YoY) supported by higher treasury gains on gains from revaluation of government guaranteed SRs. Net interest income growth of 3% QoQ, 3% YoY remained weak due to weak loan growth. FY26 growth outlook of 12-13% was also soft. However, asset quality continues to remain stable. .The key result highlights were:Gross advances growth of 3.8% QoQ 12% YoY was lower than guidance of 14-16% due to unanticipated corporate prepayments from central PSUs as a result of deleveraging via equity funding.Deposit growth was 3% QoQ, 9.5% YoY, in-line with FY25 guidance of 10% led by seasonally strong CASA growth of 5% QoQ, 6% YoY.FY25 global net interest margin of 3.09% was higher than guidance of >3%.Other income increased 2x QoQ aided by higher treasury gains on falling yields and seasonally strong fee income, Rs 33 billion benefit from revaluation of government guaranteed SRs and higher miscellaneous income on higher dividend from subsidiaries. Opex/assets increased to 1.379% (+3 bps QoQ) due to front loaded provisioning under PLI (performance-linked incentives) scheme.Q4 had provision reversal of Rs 5 billion on government guaranteed SRs excluding which credit costs would have been 44 bps.FY25 RoA of 1.1% versus 1.04% in FY24..Click on the attachment to read the full report:.SBI Q4 Results: Profit Falls 10%, NII Rises 2.7% To Rs 42,775 crore.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 Q4 Results Review: Profitability Supported By Treasury Gains, One-Offs— Systematix Maintains 'Buy'

SBI's asset quality continues to remain stable, hence Systematix maintains 'Buy' rating on the stock.

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SBI Q4 Results Review: Profitability Supported By Treasury Gains, One-Offs— Systematix Maintains 'Buy'

SBI's asset quality continues to remain stable, hence Systematix maintains 'Buy' rating on the stock.

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