credit card market in russia, 2013
TRANSCRIPT
Credit card market in Russia,
2013
4 February 2014
Market size
990bn roubles
Annual growth
47%
1
New entry in the Top 10
Top 10 banks Portfolio, RUB bn Market share, %
1 (-) Sberbank 252.4 25.5
2 (-) Russian Standard Bank 161.0 16.3
3 (+1) TCS Bank 74.0 7.5
4 (-1) VTB 24 63.3 6.4
5 (+2) Alfa-Bank 56.4 5.7
6 (+2) OTP Bank 39.3 4.0
7 (+2) HCF Bank 35.3 3.6
8 (-2) Svyaznoy Bank 33.5 3.4
9 (-4) Orient Express Bank 32.1 3.2
10 (+3) Moscomprivatbank 20.5 2.1
More than
90% Top 20 combined market share
Over
5 mln credit cards
issued
Credit card debt
12% of total
personal borrowing
4 February 2014 Credit card market in Russia
2
Market size and growth
rate
In 2013, the credit card market in Russia
grew by 47% to RUB 990 bn (2012: 86%).
The market increased by RUB 315 bn in
absolute terms – a slight growth compared
to RUB 312 bn in 2012. According to the
Bank of Russia, as of 1 October 2013,
Russian banks issued over 28 million credit
cards, a growth of more than five million
credit cards from the beginning of the year.
675 675
315
56 99
86 75
990
2013IV кв. III кв. II кв. I кв. 2012 Q1 Q2 Q3 Q4
Market size in 2013 , RUB bn
In the first half of 2013, the credit card market
again showed an upward trend (+ RUB 161
bn). In Q3 2013, the market increased by RUB
99 bn and amounted to 12% of the total
personal borrowing; this was the highest
growth compared to other quarters of 2013. In
Q4 2013, the market grew by RUB 56 bn – the
slowest gain in two years.
As of 1 July 2013, the Bank of Russia (CBR)
tightened capital adequacy ratio requirements,
including increased risk ratios applicable to
loans with an EIR (Effective Interest Rate)
exceeding 25%. This led to a rapid slowdown
in market growth at the end of the year.
As of 1 January 2014, risk ratios were
increased for loans with an EIR exceeding
45%. As a result, a further slowdown in
market growth or a decline in credit card
interest rates is expected in 2014.
Market concentration
In 2013, market concentration continued to
increase. Sberbank remained a market
leader, expanding its market share by more
than 3% to 25.5%. Since Q4 2011, when
Sberbank took the lead in the market, its
share has grown by 9%. Top 5 Russian
banks with Orient Express replaced by Alfa-
Bank now make up more than 60% of the
market. Market shares of Top 10 and Top
20 banks saw identical growth of 0.5%. In
2013, the number of banks with a portfolio
of more than RUB 1 bn also went up from
37 to 40, with their total market share raised
from 97.5% to 97.9%.
Market concentration, %
22.1
58.1
77.1
89.9
25.5
61.3
77.6
90.4
Топ-1
Топ-5
Топ-10
Топ-20
2012 2013
Top 1
Top 5
Top 10
Top 20
4 February 2014 Credit card market in Russia
3
Key players
In 2013, Sberbank, Russia’s largest bank,
continued to aggressively grow its credit
card portfolio, maintaining its market leader
position since the end of 2011. Sberbank’s
credit card portfolio was up by RUB 103 bn
and amounted to RUB 252.4 bn in 2013.
Russian Standard Bank ranked second with
a credit card portfolio of RUB 161 bn, which
was increased by RUB 60 bn. TCS Bank
expanded its credit card portfolio by 54.2%
to RUB 74 bn, coming in third since the
beginning of 2013. In Q2 2013, both
Russian Standard Bank and TCS Bank
significantly increased their credit card
portfolios compared to the market. VTB 24
and OTP Bank grew their credit card
portfolio by RUB 63 bn and RUB 39bn
respectively, which was below the market
average.
Banks Portfolio, RUB bn Annual growth Market share, %
2013 2012 RUB bn % 2013 2012
Sberbank 252.4 149.3 +103.1 +69.1 25.5 22.1
Russian Standard 161.0 100.9 +60.0 +59.5 16.3 15.0
TCS Bank 74.0 48.0 +26.0 +54.2 7.5 7.1
VTB 24 63.3 48.6 +14.7 +30.2 6.4 7.2
Alfa-Bank 56.4 30.9 +25.5 +82.6 5.7 4.6
OTP Bank 39.3 29.9 +9.4 +31.6 4.0 4.4
HCF Bank 35.3 19.6 +15.6 +79.5 3.6 2.9
Svyaznoy Bank 33.5 32.5 +1.0 +3.1 3.4 4.8
Orient Express Bank 32.1 45.1 -12.9 -28.7 3.2 6.7
Moscomprivatbank 20.5 10.5 +10.0 +95.0 2.1 1.6
Russian credit card market, Top 10
In percentage terms (annualised), Alfa-Bank
and HCF Bank performed similarly to each
other; each outperformed the market. Their
portfolios exceeded RUB 56 bn and RUB 35
bn respectively. Svyaznoy Bank expanded
its portfolio by a mere 3% to RUB 33.5 bn.
Orient Express Bank’s credit card portfolio
was the only portfolio in the Top 10 to
decline. The portfolio decreased by 28.7%
to RUB 32.1 bn. In 2013,
Moscomprivatbank, a new entrant to the
Top 10, almost doubled its portfolio to RUB
20.5 bn. Rosbank’s portfolio grew by 12.3%
but this was not enough to keep the bank in
the top 10 in 2013.
4 February 2014 Credit card market in Russia
4
Change in positions among the top 10
Bank 1 Jan 2013 1 Apr 2013 1 Jul 2013 1 Oct 2013 1 Jan 2014
Sberbank 149.3 169.3 193.4 229.6 252.4
Russian Standard Bank 100.9 116.8 134.1 149.3 161.0
TCS Bank 48.0 55.3 64.3 70.2 74.0
VTB 24 48.6 52.7 56.7 60.9 63.3
Alfa-Bank 30.9 36.8 42.2 49.5 56.4
ОTP Bank 29.9 31.4 33.5 37.1 39.3
HСF Bank 19.6 23.4 27.8 33.3 35.3
Svyaznoy Bank 32.5 32.3 33.4 34.1 33.5
Orient Express Bank 45.1 40.9 37.5 35.3 32.1
Moscomprivatbank 10.5 12.1 15.9 18.4 20.5
Top 10 by credit card loan portfolio, RUB bn
Sberbank
Russian Standard
TCS Bank
VTB 24
Alfa-Bank
ОTP Bank
HCF Bank
Svyaznoy Bank
Orient Express Bank
Moscomprivatbank
1
2
3
4
5
6
7
8
9
10
01 янв 2013 01 апр 2013 01 июл 2013 01 окт 2013 01 янв 2014 01 Apr 2013 01 Jul 2013 01 Oct 2013 01 Jan 2014 01 Jan 2013
4 February 2014 Credit card market in Russia
Disclosure
This report was prepared by Tinkoff Credit Systems Bank analysts.
The analyses in this report includes data on debt of non-resident individuals to Russian banks.
OJSC Leto Bank was excluded from the analysis as it does not issue credit cards (according to the
bank’s official website). Due to changes in the methodology, historical data on market size, player
shares, growth rates and other were revised.
For the purpose of this report, TCS Bank relied on data from the Bank of Russia. TCS Bank’s
analysts use amounts in accounts 45508 (demand loans and other funds provided to resident
individuals), 45509 (overdrafts provided to resident individuals if funds withdrawn exceed funds
deposited), 45707 (demand loans and other funds provided to non-resident individuals), 45708
(overdrafts provided to non-resident individuals if funds withdrawn exceed funds deposited).
For questions, please contact Darya Ermolina at [email protected]
© Tinkoff Credit Systems, 2014. All rights reserved. For quotes please refer to Tinkoff Credit
Systems Bank.