SBI Q4 Results Review - Strong Performance; Earnings Continue To Scale New Highs: Motilal Oswal

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..Motilal Oswal Report.State Bank of India’s Q4 FY24 profit after tax grew 24% YoY to Rs 207 billion (28% beat), driven by higher other income, lower opex and lower-than-expected provisions. Net interest income grew 3.1% YoY/4.6% QoQ (in line). Net interest margins expanded 8 bp QoQ to 3.3% (domestic NIMs at 3.47%, up 13 bp QoQ).  Opex grew 1.8% YoY to Rs 302.8 billion (9% lower than our estimate) due to a lower-than-expected impact of the 12th bipartite wage settlement. Pre provision operating profit thus grew 17% YoY to Rs 287.5 billion (25% beat). Slippages declined to Rs 39.8 billion, which, along with healthy recoveries and write-offs, led to a 18 bp/7 bp decline in the gross non-performing asset/net non-performing asset ratios. RSA pool declined to Rs 173 billion or 0.5% of advances. SBI has made a swift recovery in earnings, from a loss of ~Rs 65 billion in FY18 to profits of Rs 611 billion in FY24. We also note that the cumulative profit of the bank over the past three years (FY22-24) is equivalent to what the bank earned in the prior 20 years combined. We believe that SBI is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1%/18.5%. Reiterate Buy with a target price of Rs 925 (1.4 times FY26E ABV + Rs 240 from subs)..Click on the attachment to read the full report:.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 - Strong Performance; Earnings Continue To Scale New Highs: Motilal Oswal

Net interest margins expand 8 basis points QoQ

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