credit card market in russia, ii quarter 2013

Credit card market in Russia, II quarter 2013

The leaders are increasing the gap

According to the results of the first six months of 2013, the Russian credit card market grew by 24.7% to 837.4 billion roubles (in the first hphf of 2012 – by 36%). The absolute increase amounted to 166.1 billion roubles. The leaders in terms of growth of porJolios in January-‐June were Sberbank (+44.1 billion roubles), the Russian Standard bank (+33.2 billion roubles) and Tinkoff Credit Systems (TCS Bank +16.3 billion roubles). The posiRon of the leading players improved and managed to surpass the rest of the market as well as acRve newcomers.

Trends:

•  The Russian credit card market grew in the first 6 months of 2013 by 24.7% to 837.4 billion roubles (in the first half of 2012 – by 36%), the growth in annual terms amounted to 67%;

•  Russian Standard, Tinkoff Credit Systems and Sberbank are leading in terms of the volume of the porLolio and absolute quarterly growth;

•  Sberbank and other players conNnued to slow the pace of growth in annual terms together with the market; HCF Bank increased its growth rate year-‐on-‐year in the top ten;

•  The most acNve parNcipants conNnued to increase their market share, maintaining their growth rate above the average level, Alfa-‐Bank and OTP Bank improved their posiNons in the top 10.

1

July 30, 2013

The market size as of 01.07.13 837.4 billion roubles (+24,7% as compared to 01.01.13)


July 30, 2013

2

The growth rate of the market in the II quarter increased by 12% compared with 11.4% in the I quarter of 2013. According to the results of the I and II quarter of 2012, the increase was 15% and 18.3%, respecRvely, and the results at the end of 2012 showed market growth of 82.5%. The annual growth rate of the credit card market (year-‐on-‐year, yoy) declined from 77% in the I quarter to 67% in the II quarter of 2013.

The three leaders of the Russian market have not changed – in terms of porJolio; ahead of the pack are Sberbank, Russian Standard and Tinkoff Credit Systems. The top ten of the largest banks in the credit card market for the II quarter look like this: Sberbank (porJolio: 193.4 billion roubles), Russian Standard (134.1 billion roubles), TCS Bank (64.3 billion roubles), VTB 24 (56.7 billion roubles), Alfa-‐Bank (42.2 billion roubles ), Orient Express(37.5 billion roubles), OTP Bank (33.5 billion roubles), Svyaznoy (33.4 billion roubles), HCF Bank (27.8 billion roubles) and Rosbank (17.4 billion roubles).

Dynamics of credit card por?olios, billion roubles

Банки 01.01.09 01.01.10 01.01.11 01.01.12 01.01.13 01.07.13Portfolio Market8share Portfolio Market8share Portfolio Market8share Portfolio Market8share Portfolio Market8share Portfolio Market8share

Sberbank 2,5++++++ 1,2% 8,3++++++ 4,3% 25,4++++ 11,2% 63,0++++ 17,1% 149,3++ 22,2% 193,4++ 23,1%Russian+Standard+Bank 70,9++++ 34,5% 56,3++++ 29,2% 49,5++++ 21,7% 59,3++++ 16,1% 100,9++ 15,0% 134,1++ 16,0%TCS+Bank 4,5++++++ 2,2% 4,9++++++ 2,5% 9,6++++++ 4,2% 21,2++++ 5,8% 48,0++++ 7,2% 64,3++++ 7,7%VTB+24 12,0++++ 5,8% 19,2++++ 10,0% 24,8++++ 10,9% 34,5++++ 9,4% 48,6++++ 7,2% 56,7++++ 6,8%AlfaBBank 8,2++++++ 4,0% 8,6++++++ 4,5% 10,7++++ 4,7% 13,6++++ 3,7% 30,8++++ 4,6% 42,2++++ 5,0%Orient+Express+Bank 0,2++++++ 0,1% 1,5++++++ 0,8% 3,1++++++ 1,4% 23,1++++ 6,3% 45,1++++ 6,7% 37,5++++ 4,5%OTP+Bank 6,8++++++ 3,3% 6,9++++++ 3,6% 12,5++++ 5,5% 19,1++++ 5,2% 29,9++++ 4,5% 33,5++++ 4,0%Svyaznoy+Bank 0,0++++++ 0,0% 0,0++++++ 0,0% 0,2++++++ 0,1% 12,4++++ 3,4% 32,5++++ 4,8% 33,4++++ 4,0%HCF+Bank 21,7++++ 10,5% 16,6++++ 8,6% 11,1++++ 4,9% 14,1++++ 3,8% 19,6++++ 2,9% 27,8++++ 3,3%Rosbank 3,7++++++ 1,8% 3,5++++++ 1,8% 5,9++++++ 2,6% 11,2++++ 3,0% 15,4++++ 2,3% 17,4++++ 2,1%Privatbank 3,4++++++ 1,7% 2,7++++++ 1,4% 4,2++++++ 1,8% 7,8++++++ 2,1% 10,5++++ 1,6% 15,9++++ 1,9%Trust 1,0++++++ 0,5% 0,4++++++ 0,2% 1,4++++++ 0,6% 3,7++++++ 1,0% 9,7++++++ 1,4% 15,5++++ 1,9%Citibank 10,7++++ 5,2% 12,0++++ 6,2% 12,9++++ 5,7% 11,2++++ 3,0% 12,6++++ 1,9% 14,1++++ 1,7%Credit+Europe+Bank 2,9++++++ 1,4% 3,2++++++ 1,7% 5,2++++++ 2,3% 9,5++++++ 2,6% 11,7++++ 1,7% 13,0++++ 1,6%Renaissance+Capital 5,2++++++ 2,5% 3,8++++++ 2,0% 4,1++++++ 1,8% 5,7++++++ 1,6% 9,8++++++ 1,5% 11,6++++ 1,4%Raiffaisenbank 1,9++++++ 0,9% 2,4++++++ 1,2% 2,8++++++ 1,2% 4,0++++++ 1,1% 7,1++++++ 1,1% 9,3++++++ 1,1%MTS+Bank 2,5++++++ 1,2% 2,1++++++ 1,1% 2,1++++++ 0,9% 2,5++++++ 0,7% 6,4++++++ 1,0% 9,1++++++ 1,1%Leto+Bank B++++++ 0,0% B++++++ 0,0% B++++++ 0,0% B++++++ 0,0% 0,7++++++ 0,1% 7,7++++++ 0,9%Uralsib 1,4++++++ 0,7% 1,5++++++ 0,8% 1,9++++++ 0,8% 3,1++++++ 0,8% 6,0++++++ 0,9% 7,6++++++ 0,9%Avangard 9,1++++++ 4,4% 6,1++++++ 3,2% 4,3++++++ 1,9% 4,2++++++ 1,1% 6,2++++++ 0,9% 7,4++++++ 0,9%Others 37,2++++ 18,1% 32,9++++ 17,0% 36,0++++ 15,8% 44,7++++ 12,1% 70,4++++ 10,5% 85,8++++ 10,3%Total 205,88 100,0% 192,98 100,0% 227,68 100,0% 367,88 100,0% 671,38 100,0% 837,48 100,0%


July 30, 2013

3

Banks’ shares in the credit card market

Against the background of slow growth, a number of players conRnue to grow faster than the market. In the II quarter, the leader – in terms of the relaRve increase in the porJolio of the 20 largest banks – was the relaRve newbie to the raRngs: Leto Bank. Its porJolio increased by 160.5% to 7.7 billion roubles. Moscomprivatbank added 31% to its porJolio, MTS Bank – 22%, Trust – 20.2%, HCF Bank – 18.8%, TCS Bank –16.2%, Russian Standard – 14.9%; Alfa-‐Bank – 14.7%, Sberbank –14.3%, Uralsib – 13%.

23,1%

16,0%

7,7% 6,8% 5,0%

4,5% 4,0%

4,0%

3,3% 2,1%

23,5%

Sberbank

Russian Standard Bank

TCS Bank

VTB 24

Alfa-‐Bank

Orient Express Bank

OTP Bank

Svyaznoy Bank

HCF Bank

Rosbank

Others


July 30, 2013

4

Number of issued credit cards

(as of the end of the year and the quarter)

There were two reshuffles in the top ten according to the results of April-‐June. As we expected, Alfa-‐Bank displaced Orient Express, up from 6th to 5th place and increased its market share from 4.9% to 5%. The share of Orient Express decreased from 5.5% to 4.5%. It's the only bank in the top 20 on the market that has experienced a reducRon of its credit card porJolio in the past quarter (by 3.4 billion roubles, -‐8.3%). In terms of the six months period, Orient Express's porJolio fell by 16.7%.

OTP Bank rose from 8th to 7th place, beaRng Svyaznoy. Thus for the April-‐June period the market share of both banks decreased: OTP – from 4.2% to 4%, Svyaznoy – from 4.3% to 4%. The share of VTB 24 decreased by 0.3 percentage points to 6.8% in the II quarter. Rosbank lost 0.2 percentage points; its share at the end of June amounted to 2.1%, CiRbank – minus 0.1 points to 1.7%.

Size of the credit card market, billion roubles

2007 8%944%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2008 9%296%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2009 8%601%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2010 10%047%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2011 15%026%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2012 22%483%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

Iq#2013 24#694#########################################

177,4 205,8 192,9 227,6

367,8

671,3

837,4

0 100 200 300 400 500 600 700 800 900

2007 2008 2009 2010 2011 2012 IIq 2013


July 30, 2013

5

The remaining banks among the top 20 in the II quarter maintained or increased their share. Sberbank and Leto Bank increased their share more than any other bank (+0.5 pp to 23.1% and 0.9%, respecRvely), as well as Russian Standard (+0.4 pp to 16%), TCS Bank (+0.3 pp to 7.7%) and Moscomprivatbank (+0.3 pp to 1.9).

According to the results of the six months period, the most noRceable increase in market share was afributed to Russian Standard – plus 1 pp. Sberbank gained 0.9 points, Leto Bank – 0.8 pp, TCS Bank – 0.5 pp. Alfa-‐Bank, HCF Bank and Trust increased their market shares by 0.4 points for the period from January to June.

Dynamics of the largest players within the year, billion roubles

-‐

50

100

150

200

250

Sberbank


TCS Bank

VTB 24

Alfa-‐Bank


July 30, 2013

6

The growth rate of Sberbank conRnued to fall, even as the leader in absolute growth of the porJolio. On an annual basis (yoy) the growth rate of its porJolio in the II quarter amounted to 95% against 121% in the I quarter of 2013, 137% in the IV quarter, and 151% in the III quarter, 2012.

A slowdown in the annual growth rate was seen by all banks out of the top 10, with the excepRon of HCF Bank (87% against 63% in the I quarter). The growth rate of Alfa-‐Bank although reduced in comparison with the I quarter (137% against 147%), remained higher than last year. Svyaznoy experienced a significant slowdown in growth – 40% versus 81% in the I quarter.

Change of posiOons among the top 10

1

2

3

4

5

6

7

8

9

10

Sberbank


TCS Bank

VTB 24

Alfa-‐Bank

Orient Express Bank

OTP Bank

Svyaznoy Bank

HCF Bank

Rosbank

Privatbank


July 30, 2013

7

Por?olio growth leaders

BankPortfolio,-billion-roubles

yoyPortfolio,-billion-roubles





yoy

Sberbank 76,64 141% 98,98 138% 128,43 151% 149,29 137% 169,26 121% 193,44 95%Russian7Standard 64,76 30% 75,79 43% 87,57 53% 100,90 70% 116,74 80% 134,09 77%TCS7Bank 25,51 118% 33,60 116% 40,08 117% 48,00 127% 55,31 117% 64,29 91%VTB724 37,91 41% 41,99 42% 46,63 42% 48,64 41% 52,72 39% 56,74 35%AlfaBBank 14,90 30% 17,80 47% 24,17 83% 30,85 126% 36,80 147% 42,19 137%Orient7Express 30,54 590% 35,69 305% 39,88 199% 45,05 95% 40,94 34% 37,54 5%OTP7Bank 21,35 59% 24,35 56% 27,23 58% 29,90 56% 31,41 47% 33,51 38%Svyaznoy7Bank 17,82 1756% 23,88 526% 27,18 241% 32,46 162% 32,32 81% 33,39 40%HCF7Bank 14,35 38% 14,88 34% 16,56 27% 19,64 39% 23,39 63% 27,80 87%Rosbank 12,98 71% 14,26 59% 15,69 49% 15,45 38% 16,84 30% 17,39 22%Total 422,94 71% 500,29 74% 589,40 78% 671,25 83% 747,53 77% 837,35 67%

2012 2013I-q II-q III-q IV-q I-q II-q

Year growth rates, top-‐10

Top$20$in$terms$of$absolute$growth,$June$2013

Gain,$billion$roubles

Top$20$in$terms$of$absolute$growth$for$the$year,$from$July$2012


Top$20$in$terms$of$absolute$growth,$from$the$beginning$of$2013


Sberbank 6,68 Sberbank 94,46 Sberbank 44,15Russian3Standard 5,65 Russian3Standard 58,30 Russian3Standard 33,19TCS3Bank 3,20 TCS3Bank 30,69 TCS3Bank 16,29Leto3Bank 1,98 AlfaABank 24,39 AlfaABank 11,34HCF3Bank 1,28 VTB324 14,75 HCF3Bank 8,15VTB324 1,09 HCF3Bank 12,92 VTB324 8,10AlfaABank 0,98 Trust 10,18 Leto3Bank 7,03Privatbank 0,96 Svyaznoy3Bank 9,52 Trust 5,78Trust 0,68 OTP3Bank 9,16 Privatbank 5,36OTP3Bank 0,68 Leto3Bank 7,68 OTP3Bank 3,61Svyaznoy3Bank 0,51 Privatbank 7,58 MTS3Bank 2,69MTS3Bank 0,39 MTS3Bank 5,31 Raiffaisenbank 2,15Gazprombank 0,37 Raiffaisenbank 3,84 Rosbank 1,94Uralsib 0,30 Renaissance3Capital 3,78 Renaissance3Capital 1,81Rosgosstrakh3bank 0,29 SKBABank 3,61 Uralsib 1,62AsianAPacific3Bank 0,28 Uralsib 3,25 Citibank 1,50Renaissance3Capital 0,27 Rosbank 3,12 Credit3Europe3Bank 1,32Svyaznoy3Bank 0,24 Credit3Europe3Bank 2,64 UniCredit3Bank 1,19MDM3Bank 0,17 Gazprombank 2,49 Avangard 1,18Avangard 0,14 Avangard 1,96 Rosgosstrakh3bank 0,94Total 26,23 Total 337,07 Total 166,10


July 30, 2013

8

This report is made by the analysts of the Bank Tinkoff Credit Systems. For the purposes of drawing up the report the bank relied on the informaRon of the RF Central Bank. Our analysts for the purposes of the raRng recognize the sum of the accounts 45508 (Loans and other money provided to individuals on a call basis) and 45509 (Loan provided in case of lack of money in the deposit account (“overdrah”)).

On cooperaRon mafers please contact Oleg Anisimov [email protected]

TCS credit cards: hfp://www.tcsbank.ru/credit. TCS deposits: hfp://www.tcsbank.ru/deposit. TCS debit cards: hfp://www.tcsbank.ru/debit/

© Tinkoff Credit Systems, 2013. All rights reserved. For quotes please refer to the bank Tinkoff Credit Systems.

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