8 February 2012

Russia s credit card market in 2011

Market volume as of 1 January 2012
RUR 367.8 billion(+ 61.6% in 2011)
Bank
Sberbank Russian Standard VTB 24 Eastern* TCS Bank OTP Bank HCF Bank Alfa-Bank Svyaznoy Bank Rosbank

Portfolio, billion RUR

63.0 59.3 34.5 23.1 21.2 19.1 14.1 13.6 12.4 11.2

Market share
17.1% 16.1% 9.4% 6.3% 5.8% 5.2% 3.8% 3.7% 3.4% 3.0%

Dancing with elephants

The Russian credit card market grew by 61.6% in 2011. Total credit card debt across the entire banking system increased by RUR 140.2 billion to RUR 367.8 billion ($1 = RUR 30.08; 8 February 2012). Sberbank became the leader of the sector. Just as we had anticipated, in Q4 2011 Sberbank with the largest chain of branches in the country overtook Russian Standard, the pioneer of the local credit card market that had been the market leader for many years. Sberbank s credit card portfolio increased by 148%, reaching RUR 63 billion, demonstrating that the bank is finally showing real interest in such a civilised financial instrument as credit cards. However, Sberbank was far from being the only driving force behind the drastic rise in market volume, accounting only for 26,3% of the total market growth. The other 73.7% of the growth was down to other players. Russian Standard, which had in recent years not been focused on the credit card market (its total portfolio went down from RUR 88.3 billion to RUR 49.5 billion between Jan 1st 2008 and Jan 1st 2011) once again began to grow in the sector last year. Last year it provided an extra RUR 9.8 billion in credit card loans.

8 February 2012

Russia s credit card market in 2011

Based on the current trend, Sberbank looks set to continue to leave the competition behind, however, Russian standard will most likely remain in second place in the foreseeable future. The second state owned bank, after Sberbank, VTB24, failed to close the gap between itself and Russian Standard last year and remains in third place with RUR 34.5 billion (an increase of RUR 9.7 billion) Orient Express made a dash to fourth place increasing its credit card portfolio by RUR 20 billion to RUR 23.1 billion. Such drastic growth resulted from the bank s concerted efforts last year to offer new products, mainly cash loans, but which were in fact issued in the form of credit cards. TCS Bank increased its portfolio by 120% to RUR 21.2 billion in 2011. A new player, Svyaznoy Bank, also joined the top ten providers of credit card services with a RUR 12.1 billion portfolio. Of the top twenty banks Citibank and MDM Bank saw their credit card portfolios fall (by 13.4% and 15.5% respectively). One of the leaders of past years, HCF Bank, increased its portfolio by RUR 3 billion and is now in sixth place, having focused its efforts on other credit products.
01.01.2009
Portfolio Market share

Trends in the credit card market, billion RUR

Place 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Bank Sberbank Russian Standard VTB24 Orient Express* TCS Bank OTP Bank HCF Bank Alfa-Bank Svyaznoy Bank Rosbank Citibank Credit Europe Moskomprivatbank Renaissance Capital GE Money Bank MDM Bank Avangard Raiffeisen bank Trust Uniastrum Bank Others Total 01.01.2008

01.01.2010
Portfolio Market share

01.01.2011
Portfolio Market share

Portfolio Market share

0,7 88,3 3,6 0,0 0,7 5,0 20,9 5,3 0,0 2,9 6,8 1,3 1,9 2,6 5,1 4,1 6,7 1,0 1,0 0,2 19,2 177,4

0,4% 49,8% 2,0% 0,0% 0,4% 2,8% 11,8% 3,0% 0,0% 1,6% 3,8% 0,7% 1,1% 1,5% 2,9% 2,3% 3,8% 0,6% 0,6% 0,1% 10,8% 100,0%

2,5 70,9 12,0 0,2 4,5 6,8 21,7 8,2 0,0 3,7 10,7 2,9 3,4 5,2 7,1 6,3 9,1 1,9 1,0 0,7 27,0 205,8

1,2% 34,5% 5,8% 0,1% 2,2% 3,3% 10,5% 4,0% 0,0% 1,8% 5,2% 1,4% 1,7% 2,5% 3,4% 3,0% 4,4% 0,9% 0,5% 0,3% 13,1% 100,0%

8,3 56,3 19,2 1,5 4,9 6,9 16,6 8,6 0,0 3,5 12,0 3,2 2,7 3,8 5,2 6,6 6,1 2,4 0,4 1,6 23,0 192,9

4,3% 29,2% 10,0% 0,8% 2,5% 3,6% 8,6% 4,5% 0,0% 1,8% 6,2% 1,7% 1,4% 2,0% 2,7% 3,4% 3,2% 1,2% 0,2% 0,8% 11,9% 100,0%

25,4 49,5 24,8 3,1 9,6 12,5 11,1 10,7 0,2 5,9 12,9 5,2 4,2 4,1 5,0 5,5 4,3 2,8 1,4 3,1 26,4 227,6

11,2% 21,7% 10,9% 1,4% 4,2% 5,5% 4,9% 4,7% 0,1% 2,6% 5,7% 2,3% 1,8% 1,8% 2,2% 2,4% 1,9% 1,2% 0,6% 1,3% 11,6% 100,0%

8 February 2012

Russia s credit card market in 2011

Market shares of the leading banks

Market shares of the leading banks, %

Sberbank Russian Standard VTB24 Orient Express* TCS Bank OTP Bank HCF Bank Alfa Bank Svyaznoy Bank Rosbank Others

17,1% 16,1% 9,4% 6,3% 5,8% 5,2% 3,8% 3,7% 3,4% 3,0% 26,2%

8 February 2012

Russia s credit card market in 2011

Number of active credit cards at the end of the year, thousand pcs.

Credit card market volume, billion RUR

400 375 350 325 300 275 250

227,6

367,8

225 200 175

171,3 200,0 192,2

150 2007 2008 2009 2010 2011

8 February 2012

Russia s credit card market in 2011

Sberbank s credit card portfolio, billion RUR

70 60 50 40 30 20 10 0 2008

2009

2010

2011

Russian Standard s credit card portfolio, billion RUR

90 80 70 60 50 40 2008

2009

2010

2011

VTB24 s credit card portfolio, billion RUR

40

30

20

10

0 2008

2009

2010

2011

Orient Express*, credit card portfolio, billion RUR

30

20

10

5
0 2008 2009 2010 2011

8 February 2012

Russia s credit card market in 2011

TCS Bank s credit card portfolio, billion RUR

30

20

10

0 2008
20

2009

2010

2011

OTP Bank s credit card portfolio, billion RUR

10

0 2008

2009

2010

2011

30

HCF Bank s credit card portfolio, billion RUR

20

10
2008 2009 2010 2011

Alfa-Bank s credit card portfolio, billion RUR

20

10

6
0 2008 2009 2010 2011

8 February 2012

Russia s credit card market in 2011

Svyaznoy Bank s credit card portfolio, billion RUR

20

10

0
2008 2009 2010 2011

Rosbank s credit card portfolio, billion RUR

20

10

0 2008

2009

2010

2011

This report has been compiled by the analysts of Tinkoff Credit Systems using information obtained from official sources. Credit card portfolios were calculated as the total not-overdue principal credit card loans plus estimated securitised assets.

If you re interested in cooperation, please contact ir@tcsbank.ru.

TCS credit cards: http://www.tcsbank.ru/credit. TCS deposits: http://www.tcsbank.ru/deposit.

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