Moscow, Russia — 6 June 2018.
Today, Tinkoff Bank publishes the findings of its research on the Russian credit card market in 1Q 2018.
The research is based on the data of the Central Bank of Russia (CBR) and takes into account undue debt (demand loans and overdrafts to individuals) only.
Market size and performance
According to the research, the growth in the Russian credit card market continued well into 1Q 2018. The market grew by RUB 35.1 bn, or 3.1% in relative terms YTD to reach RUB 1.157 tn by 1 April 2018. In 1Q 2018, the credit card market gained 13.3%
Apart from a minor seasonal contraction in February (by RUB 4.2 bn), the market growth was evenly spread throughout the quarter. In January, the market grew by RUB 25.8 bn and added another RUB 13.5 bn in March, falling short of the
The key growth leaders in 1Q 2018 were the top three players, adding some RUB 31.3 bn to the market. Sberbank’s portfolio outperformed peers having expanded by RUB 13.3 bn in absolute terms.
By end of 1Q 2018, the Top 5 banks accounted for 78.4% of the market. The number of credit institutions holding portfolios of over RUB 1 bn reached 35, with their market share hitting 99.1%.
1Q 2018 saw no major changes in market leadership. The aggregate share of the Top 3 in the market stood at 66.2%.
Sberbank’s portfolio ranking No. 1 rose to RUB 523.9 bn (a market share of 45.3%). Tinkoff Bank grew to RUB 135.7 bn, with a market share of 11.7%.
Orient Express Bank also showed strong growth: by the end of 1Q 2018, its portfolio reached RUB 48.4 bn (up 4.7 p.p. YTD). For the first time since 4Q 2013, Russian Standard Bank’s portfolio reached the green territory gaining RUB 0.2 bn within three months to hit RUB 44 bn (a market share of 3.8%).
Oliver Hughes, CEO of Tinkoff Bank, commented: «The Russian credit card market keeps growing, and we expect this uptrend to continue until the
This report was drafted by Tinkoff Bank’s team based on the data of the Central Bank of Russia and takes into account undue debt (demand loans and overdrafts to individuals) only. For the purposes of this report, the Bank relied on CBR data. Tinkoff Bank’s analysts use amounts in accounts 45502 (loans and other funds provided to resident individuals for a period of up to 30 days), 45508 (demand loans and other funds provided to resident individuals), 45509 (deposit account overdrafts provided to resident individuals), 45707 (demand loans and other funds provided to
TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a
The Group was founded in 2006 by the Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.
With no retail branches, the Group serves its customers remotely via online channels and its call centre, and operates a network of over 2,500 representatives to ensure smooth delivery of its products. The network covers all of Russia and allows next day delivery to most customers.
The Group’s key business is Tinkoff Bank, Russia’s first and only direct bank offering both own brand and partner retail financial services via its Tinkoff.ru platform. The product range includes daily banking (credit and debit cards, payments, money transfers), savings, investments, loyalty programmes, travel services, SME services, mortgage platform, and insurance. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).
As at 1 May 2018, the bank was the second largest player in the Russian credit card market, with a market share of 11.7%. The 1Q18 IFRS net income of TCS Group Holding PLC amounted to RUB 5.7 bn, ROE grew to 68.5%.
Banki.ru, Russia’s largest financial news portal, named Tinkoff Bank the Bank of the Year 2016. In October 2016 Tinkoff Bank was named the largest independent global direct bank by Frost & Sullivan. In 2015 and 2016, the Global Finance magazine named Tinkoff Bank as the Best Consumer Digital Bank in Russia. In 2016, the bank also won Global Finance’s Best Integrated Consumer Bank Site award and was named the Best Digital Bank in the CEE by Euromoney. The bank’s mobile application was recognised as the best in Russia by Markswebb Rank & Report for three consecutive years in 2014, 2015 and 2016, and by Deloitte for four consecutive years from 2013 to 2016.