Credit card market in Russia, 2013
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The Russian credit card market grew 47% in 2013 to 990 billion roubles. Sberbank maintained its position as market leader, expanding its market share to 25.5% as its credit card portfolio grew 69.1% to 252.4 billion roubles. Market concentration continued to increase, with the top 5 banks now holding over 60% of the market. Growth slowed in the second half of 2013 due to tightened capital requirements and risk ratios by the Bank of Russia.
Credit card market in Russia, 2013
- 1. 4 February 2014 Credit card market in Russia, 2013 Annual growth Market size 990 bn roubles Over 47% 5 mln credit cards issued More than 90% Credit card debt 1 New entry in the Top 10 Top 20 combined market share Top 10 banks 12% of total personal borrowing 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 Moscomprivatbank 20.5 2.1 10 (+3)
- 2. Credit card market in Russia 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. Market size in 2013 , RUB bn 990 99 56 315 86 75 675 2012 4 February 2014 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 AlfaBank 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%. 675 IQ1 кв. IIQ2 кв. III кв. Q3 IV кв. Q4 2013 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. Market concentration, % Топ-1 Top 1 22.1 25.5 58.1 61.3 Топ-5 Top 5 77.1 77.6 Топ-10 Top 10 89.9 90.4 Топ-20 Top 20 2012 2013 2
- 3. Credit card market in Russia 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. 4 February 2014 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. Russian credit card market, Top 10 Portfolio, RUB bn Annual growth Market share, % Banks 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 3
- 4. Credit card market in Russia 4 February 2014 Change in positions among the top 10 1 Sberbank 2 Russian Standard 3 TCS Bank 4 VTB 24 5 Alfa-Bank 6 ОTP Bank 7 HCF Bank 8 Svyaznoy Bank 9 Orient Express Bank 10 Moscomprivatbank 01 Jan 2013 янв 01 Apr 2013 01 апр 2013 01 Jul 2013 01 июл2013 01 Oct 2013 01 окт 2013 01 янв 2014 01 Jan 2014 Top 10 by credit card loan portfolio, RUB bn 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 4
- 5. Credit card market in Russia 4 February 2014 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 d.ermolina@tcsbank.ru © Tinkoff Credit Systems, 2014. All rights reserved. For quotes please refer to Tinkoff Credit Systems Bank.