![]() ![]() Rocket announced that it would be buying up to $1 billion in common stock over the next two years, which should raise the price. And though gain-on-sale margins fell from 5.19% to 4.52%, they were still well above expectations. It also inked several partnerships that could boost its purchase business, something analysts and investors have said they want to see in order to justify long-term forecasts. The highlights from the third quarter alone were impressive by any standard: Rocket claimed big gains in Millennial adoption of its tech platform. In fact, through the first three quarters of the year, Rocket has made a stunning $6.55 billion in profits. It thumped competitors with a record $89 billion in originations in the third quarter, and made $3 billion in profits. Milestone Alert!Livemint tops charts as the fastest growing news website in the world □ Click here to know more.You can understand Jay Farner’s frustration: Rocket Companies just had the most productive quarter in the history of residential mortgage lending. We advise investors to check with certified experts before taking any investment decisions. With credit cost elevated-not in sync with other large players-and a sticky CoF, it maintained a ‘Reduce’ rating on the stock and cut the target price to ₹760 per share from ₹775 earlier.Īt 9:40 am, SBI Cards and Payments Services shares were trading 7.03% lower at ₹735.40 apiece on the BSE.ĭisclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. NIM decreased 12bp QoQ due to lower yield," said the brokerage. ![]() Management pointed out that the rise in credit cost is in sync with reports about the rise in stress in small-ticket personal loans. However, in Q2FY24, newer cohorts contributed to stress while the share of the 2019 cohort decreased. ![]() “In Q1FY24, management had attributed the high credit cost to borrowers of the 2019 vintage. Credit cost, a persistent weakness, remained elevated at 6.7% in Q2FY24 versus 6.8% QoQ.Īlso Read: Maruti Suzuki shares flat after robust Q2 results. Nuvama Institutional Equities notes SBI Card continues to report elevated credit cost and weaker net interest margin (NIM). It reiterated a ‘Buy’ rating on the stock and cut the target price to ₹900 per share. The brokerage cut its FY24 and FY25 earnings estimates by 8% and 10% and estimated RoA and RoE of 5.2% and 25.0% for FY25. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! ) These would support 35% earnings CAGR over FY24-26E while earnings growth for the current fiscal to remain modest," it said. “Reversal in rate cycle, and lagged improvement in revolver mix remain the key triggers. However, as per Motilal Oswal, on the positive side, spending growth remains healthy while the company maintains a healthy traction in new card additions. The company’s management indicated a slight rise in stress levels, which will likely keep credit costs elevated over the near term. This could drive further margin compression over 2HFY24 as the outlook on any increase in the mix of EMI and Revolver loans remains uncertain," said the brokerage firm.Īlso Read: RIL share price rises 2% after Q2 results top brokerages remain upbeat on the stock “The mix of revolvers and EMI loans remains stable, while management indicated that the recent hardening of interest rates will exert pressure on funding costs in the coming quarters. Read here: SBI Card Q2 Results: Net profit rises 15% YoY to ₹603 crore, cards in force grow 21%Īccording to brokerage firm Motilal Oswal Financial Services, SBI Cards and Payments Services reported a muted quarter characterized by elevated provisions and further compression in margins. ![]()
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