SBI Q4 Results: Net profit soared 83%, Rs 11.3 per share dividend declared

India’s biggest lender State Bank of India, popularly known as SBI recently revealed its results for the Jan - Mar ‘23 period. Amid demand for rising credit growth and helped by its large customer base and branch network, the bank reported a significant jump in total income and net profits.

The SBI share price has witnessed fortunes in recent times. In 2023 so far, the SBI share price is down by close to 5%, yet it is up by almost 27% in the past one year.

So, will SBI’s latest results aid its share price growth further? How did SBI perform in terms of key metrics like deposits, advances, net interest margins, net profits etc? What was the dividend declared by SBI? Let’s try and decode!

Decoding SBI Q4 Earnings

SBI total income:

• SBI reported a total income of Rs 1,36,852.39 crores in the Jan - Mar ‘23 period. This denotes a yearly rise of about 27%.
   
• The lender’s interest income for the March quarter came in at Rs 98,083.19 crores, up 31.5% from the previous year.
   
• Other Income for the same period came in at Rs 38,769.20 crores. This denotes a growth of 16% from the prior year.

SBI net interest income: Net interest income for SBI for the Jan - Mar ‘23 period stood at Rs 40,393 crores, up 29.5% from the previous year.

Moreover, net interest margin improved to 3.84% from 3.40% in the previous year.

SBI advances:

• Gross advances at the end of the March quarter stood at Rs 32,69,242 crores, up 16% from the previous year.
   
• Retail advances at the end of the March quarter stood at Rs 11,79,152 crores. This marked a yearly growth of 17.6%. Within this, home loans formed the majority of the mix at Rs 6,40,680 crores, up 14.1% from the previous year.
   
• Corporate advances also grew from the previous year by 12.5% to Rs 9,79,768 crores.

SBI deposits:

• Deposits rose by 9.2% from the previous year to Rs 44,23,778 crores at the end of the March quarter.
   
• CASA deposits also witnessed a rise of about 5% from the prior year to Rs 18,62,904 crores.
   
• Term deposits at the end of the Jan - Mar ‘23 period came in at Rs 23,90,667 crores, up 11.4% from the previous year.

SBI asset quality: SBI’s asset quality at the end of the March quarter stands improved. While the Gross Non-Performing Assets (GNPA) ratio improved to 2.78% from 3.97% in the previous year, Net Non-Performing Assets (NNPA) ratio came in at 0.67% compared to 1.02% in the prior year.

SBI dividend: SBI declared a dividend of Rs 11.30 per share.

SBI net profits: SBI reported net profits of Rs 18,343.25 crores for the Jan - Mar ‘23 period. This denotes a massive yearly jump of 83% from the previous year’s figure of Rs 9,993.76 crores.

SBI Earnings: Analyst target price

JP Morgan: The top global brokerage has a “Buy” rating on the stock with a price target of Rs 720. Strong advances growth and improvement in asset quality has been cited by the firm as key drivers for SBI share price growth in the near term.

Goldman Sachs: The renowned brokerage has a “Buy” rating on the stock with a price target of Rs 746. Earnings growth visibility along with falling provisions has been cited by the firm as tailwinds for the SBI share price in the coming times.

Bank of America: The top brokerage has a “Hold” rating on the stock with a price target of Rs 645. The firm believes that the PSU lender's shares can be aided by a healthy loan growth.

Jefferies: The renowned global brokerage has a “Buy” rating on the stock with a price target of Rs 760. 

Nuvama: The leading brokerage has a “Buy” rating on the stock with a price target of Rs 705.

HDFC Securities: The domestic brokerage has a “Buy” rating on the stock with a price target of 700.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.