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Satin Creditcare Network

Profit Statement 2016 2017 2018
Net Interest Income INR mil 3,713 4,254 5,436
Net Fee Income INR mil -225 541 909
Other Income INR mil 424 171 1,656
Total Revenues INR mil 3,912 4,966 8,001
Operating Profit INR mil 1,161 1,598 3,628
Provisions INR mil 512 0 0
Net Profit INR mil 249 748 2,012
Balance Sheet 2016 2017 2018
Interbank Loans INR mil 205 718 2,643
Customer Loans INR mil 32,246 48,473 45,486
Total Assets INR mil 47,772 62,990 67,527
Shareholders' Equity INR mil 6,649 8,868 11,495
Interbank Borrowing INR mil 18,408 38,724 37,555
Customer Deposits INR mil 0 0 0
Issued Debt Securities INR mil 20,233 9,193 9,511
Ratios 2016 2017 2018
ROE % 5.03 9.64 19.8
ROA % 0.616 1.35 3.08
Costs (As % Of Assets) % 6.81 6.08 6.70
Costs (As % Of Income) % 70.3 67.8 54.7
Net Interest Margin % 9.19 7.68 8.33
Valuation 2016 2017 2018
Price/Earnings (P/E) 53.1 25.0 8.80
Price/Book Value (P/BV) 1.99 2.11 1.54
Earnings Per Share (EPS) INR 7.15 17.4 41.2
Book Value Per Share INR 191 206 236

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summary Unit 2015 2016 2017 2018
income statement        
Net Interest Income INR mil 2,898 3,713    
Total Revenues INR mil 2,960 3,912    
Operating Profit INR mil 1,154 1,161    
Net Profit INR mil 579 249    
balance sheet        
Interbank Loans INR mil 0 205    
Customer Loans INR mil 22,995 32,246    
Debt Securities INR mil 409 648    
Total Assets INR mil 33,034 47,772    
Shareholders' Equity INR mil 3,240 6,649    
Interbank Borrowing INR mil 14,148 18,408    
Customer Deposits INR mil 0 0    
Issued Debt Securities INR mil 13,335 20,233    
ratios        
ROE % 17.9 5.03    
ROA % 1.75 0.616    
Costs (As % Of Assets) % 5.47 6.81    
Costs (As % Of Income) % 61.0 70.3    
Net Interest Margin % 8.77 9.19    
Interest Income (As % Of Revenues) % 97.9 94.9    
Fee Income (As % Of Revenues) % -7.35 -5.76    
Equity (As % Of Assets) % 9.81 13.9    
Loans (As % Assets) % 69.6 67.5    
valuation        
Market Capitalisation (End Of Period) USD mil 155 195    
Number Of Shares (Average) mil 28.7 34.8    
Share Price (End Of Period) INR 358 380    
Earnings Per Share (EPS) INR 20.2 7.15    
Book Value Per Share INR 113 191    
Price/Earnings (P/E) 17.8 53.1    
Price/Book Value (P/BV) 3.18 1.99    
Earnings Per Share Growth % ... -64.5    
Book Value Per Share Growth % ... 69.5    
income statement Unit 2015 2016 2017 2018
income statement        
Interest Income INR mil 5,523 7,816    
Interest Cost INR mil 2,625 4,103    
Net Interest Income INR mil 2,898 3,713    
Net Fee Income INR mil -217 -225    
Other Income INR mil 280 424    
Total Revenues INR mil 2,960 3,912    
Operating Cost INR mil 1,806 2,752    
Operating Profit INR mil 1,154 1,161    
Provisions INR mil 0 512    
Extra and Other Cost INR mil 279 270    
Pre-Tax Profit INR mil 875 378    
Tax INR mil 296 129    
Minorities INR mil 0 0    
Net Profit INR mil 579 249    
growth rates        
Net Interest Income Growth % ... 28.1    
Net Fee Income Growth % ... 3.54    
Total Revenue Growth % ... 32.1    
Operating Cost Growth % ... 52.3    
Operating Profit Growth % ... 0.563    
Pre-Tax Profit Growth % ... -56.8    
Net Profit Growth % ... -57.1    
market share        
Market Share in Revenues % < 0.001 < 0.001   ...
Market Share in Net Profit % < 0.001 ... ... ...
balance sheet Unit 2015 2016 2017 2018
balance sheet        
Cash INR mil 7,098 11,298    
Interbank Loans INR mil 0 205    
Customer Loans INR mil 22,995 32,246    
Debt Securities INR mil 409 648    
Fixed Assets INR mil 213 849    
Total Assets INR mil 33,034 47,772    
Shareholders' Equity INR mil 3,240 6,649    
Of Which Minority Interest INR mil 0 22.8    
Liabilities INR mil 29,794 41,124    
Interbank Borrowing INR mil 14,148 18,408    
Customer Deposits INR mil 0 0    
Issued Debt Securities INR mil 13,335 20,233    
Other Liabilities INR mil 2,311 2,483    
growth rates        
Customer Loan Growth % ... 40.2    
Total Asset Growth % ... 44.6    
Shareholders' Equity Growth % ... 105    
market share        
Market Share in Customer Loans % 0.029 0.039   ...
Market Share in Total Assets % 0.026 0.034   ...
Market Share in Customer Deposits % 0 0   ...
ratios Unit 2015 2016 2017 2018
ratios        
ROE % 17.9 5.03    
ROA % 1.75 0.616    
Costs (As % Of Assets) % 5.47 6.81    
Costs (As % Of Income) % 61.0 70.3    
Net Interest Margin % 8.77 9.19    
Interest Spread % ... 7.78    
Asset Yield % 16.7 19.3    
Cost Of Liabilities % ... 11.6    
Interest Income (As % Of Revenues) % 97.9 94.9    
Fee Income (As % Of Revenues) % -7.35 -5.76    
Other Income (As % Of Revenues) % 9.46 10.8    
Equity (As % Of Assets) % 9.81 13.9    
Loans (As % Assets) % 69.6 67.5    
Cost of Provisions (As % Of Loans) % 0 1.85    
other data Unit 2015 2016 2017 2018
other data        
Employees 3,864 ... ...  

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Finance

Satin Creditcare Network has been growing its revenues and asset by 39.3% and 26.9% a year on average in the last 3 years. Its loans and deposits have grown by 25.5% and % a year during that time and loans to deposits ratio reached at the end of 2018. The company achieved an average return on equity of 11.5% in the last three years with net profit growing 51.4% a year on average. In terms of operating efficiency, its cost to income ratio reached 54.7% in 2018, compared to 64.3% average in the last three years.

Equity represented 17.0% of total assets or 25.3% of loans at the end of 2018. Satin Creditcare Network's non-performing loans were of total loans while provisions covered some of NPLs at the end of 2018.

Valuation

Satin Creditcare Network stock traded at INR 363 per share at the end of 2018 resulting in a market capitalization of USD 254 mil. Over the previous three years, stock price rose by 1.29% or 0.429% a year on average. That’s compared to an average ROE of 11.5% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of 8.80x and price to book value (PBV) of 1.54x in 2018.