SBFC Finance Ltd (NSE:SBFC)

Q3 2025 SBFC Finance Ltd Earnings Call Transcript

Jan 24, 2025 / 04:00 AM GMT

Transcript

Key Points

Positve

SBFC Finance Ltd (BOM:543959) reported a 30% year-on-year growth in assets under management (AUM) and a 38% increase in core operating profit, indicating strong financial performance.
The company successfully reduced its cost-to-income ratio from 45% to 40%, showcasing improved operational efficiency.
Return on Assets (ROA) expanded from 4.31% to 4.49%, and Return on Equity (ROE) increased by 200 basis points to 12.77%, reflecting enhanced profitability.
The company maintained a stable net interest margin (NIM) at 10.26% despite a rising interest rate environment, demonstrating effective cost management.
SBFC Finance Ltd (BOM:543959) added five new branches, bringing the total to 197, which supports its growth strategy and market presence expansion.

Negative

Credit costs increased from 83 basis points to 97 basis points year-on-year, indicating a rise in the cost of managing credit risk.
The company noted a slowdown in gold loan growth, which could impact future revenue streams.
There is a cautious outlook on consumer leverage and credit quality, with the company tightening its underwriting standards, potentially affecting loan approvals.
The company faces challenges in maintaining profitability and credit quality amidst tightening liquidity and rising consumer leverage.
SBFC Finance Ltd (BOM:543959) acknowledged a slowdown in other income due to reduced servicing income from institutional clients, which could affect overall revenue.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SBFC.NS - SBFC Finance Ltd
Q3 2025 SBFC Finance Ltd Earnings Call
Jan 25, 2025 / 04:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day. And welcome to SBFC Finance Limited Q3 FY25 earnings conference call hosted by IC IC Securities Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing the star then zero on your touchtone phone.

I now hand the conference over to Mr Anish Bua from IC C Securities Limited. Thank you and over to you, sir.

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Unidentified_2 [2]
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