Moscow, Russia — 16 November 2018
Tinkoff Bank has published its Russian credit card market research for 3Q 2018.
The findings are based on Bank of Russia data and take into account undue debt (demand loans and overdrafts to individuals) only.
Market size and performance
In 3Q 2018, the credit card market has reached a new record, with the banks’ aggregate portfolio reaching RUB 1.273 tn as of 1 October 2018, an increase of RUB 76.1 bn in 3Q 2018.
The peak for the year and for the quarter was seen in August, when the increase totalled RUB 33.1 bn (up 2.7% over the month). The market also showed strong growth in September (RUB 27.1 bn), with more modest gains in June (RUB 15.9 bn).
Despite the overall growth in market volume, the expansion of major banks resulted in higher concentration of Russia’s credit card market. In 3Q 2018, the aggregate share of the five biggest market players (Sberbank, Tinkoff Bank,
77% of credit card market growth in the 3Q 2018 was attributable to Sberbank,
In 3Q 2018, Sberbank’s portfolio increased by RUB 33.8 bn to RUB 575.4 bn, allowing the largest Russian bank to retain its share at 45.2%. Over the same period, Tinkoff Bank grew by RUB 5.9 bn to RUB 145.7 bn, with its market share decreasing from 11.7% to 11.4%.
VTB was the only one of the top 5 banks to show a downward trend in 3Q 2018, as its share dropped to 7.3% due to a RUB 0.5 bn decrease in portfolio. VTB has been losing positions in the credit card market for seven consecutive quarters: as at 1 January 2017, its market share stood at 9.7%.
The top three banks that have been growing since the start of 2018 remain the same, with Sberbank increasing its portfolio by RUB 64.8 bn,
The total number of credit institutions with portfolios of over RUB 1 bn remained unchanged in 3Q 2018 at 35, with their market share hitting 99.3%.
This report was drafted by Tinkoff Bank based on data provided by the Bank of Russia, taking into account undue debt (demand loans and overdrafts to individuals) only. Tinkoff Bank 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.