According to results for the first half of 2012, the size of the Russian credit card market has risen above the half-­‐trillion mark -­‐ it grew by 36% to 500.3 billion Roubles as of 1 July compared with the beginning of the year.

1. 26
July,
2012
Russian
credit
card
market,
2012
Market
size
as
of
Bank Portfolio,-billion-roubles Market-share
Sberbank 99,0 19,8%
01.07.12
Russian-Standard* 75,8 15,1%
500.3
billion
roubles
(+36%
VTB24 42,0 8,4%
Orient-Express 35,7 7,1%
versus
01.01.12)
TCS-Bank 33,6 6,7%
OTP-Bank 24,4 4,9%
Svyaznoy-Bank 23,9 4,8%
AlfaNBank 17,8 3,6%
HCF-Bank 14,9 3,0%
Rosbank 14,3 2,9%
Card
boom
According
to
results
for
the
first
half
of
2012,
the
size
of
the
Russian
credit
card
market
has
risen
above
the
half-­‐trillion
mark
-­‐
it
grew
by
36%
to
500.3
billion
Roubles
as
of
1
July
compared
with
the
beginning
of
the
year.
In
Q2
the
market
growth
rates
accelerated
to
18.3
%
compared
to
15%
within
the
first
three
months
of
the
current
year.
These
growth
rates
give
grounds
to
believe
that
we
will
surpass
2011
rates
of
growth,
when
the
total
card
porKolio
of
Russian
banks
increased
by
61.6%.
Trends:
-­‐The
market
growth
rates
increased
from
15%
in
Q1
to
18.3%
in
Q2,
with
the
volume
reaching
an
amount
in
excess
of
500
billion
roubles;
the
growth
for
the
half-­‐year
reached
36%;
-­‐
Sberbank
seized
one
fiIh
of
the
market
having
increased
the
porKolio
to
almost
100
billion
roubles;
concentraLon
has
grown
–
the
5
top
players
control
57.2%
of
the
market
(according
to
results
for
Q1
–
55.7%);
-­‐Based
on
the
results
for
the
second
quarter,
only
five
banks
in
the
top
20
have
increased
their
market
shares:
Sberbank,
Tinkoff
Credit
Systems,
Svyaznoy
Bank,
Alfa-­‐Bank
and
Trust;
for
this
purpose
they
had
to
maintain
growth
rates
above
the
market
average;
one
of
the
leaders,
bank
Orient
Express
slowed
its
growth.
-­‐According
to
the
results
of
the
half-­‐year,
dramaLc
growth
of
market
share
was
demonstrated
by
Sberbank,
which
zoomed
into
the
lead
Q4
of
last
year
1
reaching
19.8%;
bank
Orient
Express,
Tinkoff
Credit
Systems,
Svyaznoy
Bank
and
Trust
also
increased
their
share

2. 26
July,
2012
Russian
credit
card
market,
2012
Finding
gear
As
of
1
July
2012,
in
terms
of
credit
cards
porKolio,
the
top
10
included
Sberbank
(99
billion
roubles),
Russian
Standard*
(75.8
billion
roubles),
VTB24
(42
billion
roubles),
Orient
Express
(35.7
billion
roubles),
Tinkoff
Credit
Systems
(33.6
billion
roubles),
OTP
Bank
(24.4
billion
roubles),
Svyaznoy
Bank
(23.9
billion
roubles),
Alfa-­‐Bank
(17.8
billion
roubles),
Home
Credit
(14,9
billion
roubles),
Rosbank
(14.3
billion
roubles).
The
redivision
of
the
market
to
the
benefit
of
the
more
ac^ve
players
con^nued,
although
this
has
not
yet
affected
the
order
of
the
posi^ons
among
the
top
10
in
terms
of
porKolio
size
–
all
the
banks
have
retained
their
posi^ons
in
the
ra^ng.
The
second
half
of
the
top
20
saw
two
swaps:
Raiffeisenbank
rose
to
16th
place,
having
powered
past
bank
Avangard;
and
Trust
climbed
to
18th
place,
having
ouKlanked
MDM
Bank.
Four
banks
from
the
top
10,
succeeded
in
increasing
their
market
shares
in
Q2,
three
of
them
significantly:
Sberbank
–
from
18.1%
to
19.8%,
Tinkoff
Dynamics
of
credit
Credit
Systems
-­‐
from
6%
to
6.7%,
Svyaznoy
Bank
-­‐
from
4.2%
to
4.8%.
Alfa-­‐
cards
porBolios,
billion
Bank
increased
its
market
share
from
3.5%
to
3.6%,
having
returned
to
posi^ve
growth
ader
shrinkage
in
Q1,
when
it
declined
from
3.7%
to
3.5%.
roubles
According
to
second
quarter
results
in
the
second
half
of
the
top
20
only
bank
Trust
was
able
to
boast
an
increment
to
its
share
–
from
1%
to
1.1%.
Banks 01.01.08 01.01.09 01.01.10 01.01.11 01.01.12 01.07.12
Portfolio Market6share Portfolio Market6share Portfolio Market6share Portfolio Market6share Portfolio Market6share Portfolio Market6share
Sberbank(of(Russia 0,7 0,4% 2,5 1,2% 8,3 4,3% 25,4 11,2% 63,0 17,1% 99,0 19,8%
Russian(Standard* 88,3 49,8% 70,9 34,5% 56,3 29,2% 49,5 21,7% 59,3 16,1% 75,8 15,1%
VTB(24 3,6 2,0% 12,0 5,8% 19,2 10,0% 24,8 10,9% 34,5 9,4% 42,0 8,4%
Orient(Express 0,0 0,0% 0,2 0,1% 1,5 0,8% 3,1 1,4% 23,1 6,3% 35,7 7,1%
TCS(Bank 0,7 0,4% 4,5 2,2% 4,9 2,5% 9,6 4,2% 21,2 5,8% 33,6 6,7%
OTP(Bank 5,0 2,8% 6,8 3,3% 6,9 3,6% 12,5 5,5% 19,1 5,2% 24,4 4,9%
Svyaznoy(Bank 0,0 0,0% 0,0 0,0% 0,0 0,0% 0,2 0,1% 12,4 3,4% 23,9 4,8%
AlfaLBank 5,3 3,0% 8,2 4,0% 8,6 4,5% 10,7 4,7% 13,6 3,7% 17,8 3,6%
HCF(Bank 20,9 11,8% 21,7 10,5% 16,6 8,6% 11,1 4,9% 14,1 3,8% 14,9 3,0%
Rosbank 2,9 1,6% 3,7 1,8% 3,5 1,8% 5,9 2,6% 11,2 3,0% 14,3 2,9%
Citibank 6,8 3,8% 10,7 5,2% 12,0 6,2% 12,9 5,7% 11,2 3,0% 12,2 2,4%
Credit(Europe 1,3 0,7% 2,9 1,4% 3,2 1,7% 5,2 2,3% 9,5 2,6% 10,4 2,1%
Moskomprivatbank 1,9 1,1% 3,4 1,7% 2,7 1,4% 4,2 1,8% 7,8 2,1% 8,3 1,7%
Renaissance(Credit 2,6 1,5% 5,2 2,5% 3,8 2,0% 4,1 1,8% 5,7 1,6% 7,8 1,6%
GE(Money(Bank 5,1 2,9% 7,1 3,4% 5,2 2,7% 5,0 2,2% 5,6 1,5% 5,5 1,1%
Raiffeisen(Bank 1,0 0,6% 1,9 0,9% 2,4 1,2% 2,8 1,2% 4,0 1,1% 5,5 1,1%
Avangard 6,7 3,8% 9,1 4,4% 6,1 3,2% 4,3 1,9% 4,2 1,1% 5,4 1,1%
Trust 1,0 0,6% 1,0 0,5% 0,4 0,2% 1,4 0,6% 3,7 1,0% 5,3 1,1%
MDM(Bank 4,1 2,3% 6,3 3,0% 6,6 3,4% 5,5 2,4% 4,6 1,3% 4,5 0,9%
Uralsibbank 1,0 0,6% 1,4 0,7% 1,5 0,8% 1,9 0,8% 3,1 0,8% 4,3 0,9%
Others 18,5 10,4% 26,3 12,8% 23,1 12,0% 27,6 12,1% 37,0 10,1% 49,9 10,0%
Total6 177,4 100,0% 205,8 100,0% 192,9 100,0% 227,6 100,0% 367,8 100,0% 500,3 100,0%
2

3. 26
July,
2012
Russian
credit
card
market,
2012
Shares
of
the
banks
in
the
credit
card
market
Sberbank&of&Russia&
Russian&Standard*&
19,8%&
23,8%&
VTB&24&
Orient&Express&
2,9%&
15,1%&
TCS&Bank&
3,0%&
3,6%& OTP&Bank&
4,8%&
4,9%&
8,4%& Svyaznoy&Bank&
6,7%& 7,1%&
AlfaLBank&
HCF&Bank&
Rosbank&
Others&
Due
to
the
aggressive
growth
of
these
banks,
other
players
have
to
put
up
with
losses
or
with
the
status-­‐quo.
In
Q2
Russian
Standard
reduced
its
market
share
from
15.3%
to
15.1%,
VTB24
–
from
9%
to
8.4%,
Orient
Express
–
from
7.2%
to
7.1%,
OTP
Bank
–
from
5%
to
4.9%,
Home
Credit
–
from
3.4%
to
3%,
Rosbank
from
3.1%
to
2.9%.
The
movement
vector
was
changed
by
Alfa-­‐Bank
and
Orient
Express
as
compared
to
Q1
–
if
the
former
is
again
increasing
the
market
share
ader
reduc^on
thereof
at
the
beginning
of
the
year,
the
lafer
went
in
the
red
in
terms
of
the
dynamics
of
the
market
share
ader
the
breakthrough
in
the
first
three
months.
3

4. 26
July,
2012
Russian
credit
card
market,
2012
2007 8944
Number
of
issued
cards
2008 9296
as
of
the
end
of
the
2009 8601
year,
thousand
units
2010 10047
2011 14500
In
Q2
among
20
banks
with
the
largest
card
porKolios
only
five
were
increasing
the
lending
faster
than
the
market
(18.3%).
These
were
the
banks
that
were
able
to
increase
their
market
shares
as
a
result.
Sberbank
increased
the
porKolio
by
29.1%
in
the
quarter,
Tinkoff
Credit
Systems
–
by
31,7%,
Svyaznoy
Bank
–
by
34%,
Alfa-­‐Bank
–
by
19.4%,
Trust
–
by
29.1%.
In
absolute
terms
Sberbank
(plus
22.3
billion
roubles
per
quarter),
Russian
Standard
(11
billion
roubles),
Tinkoff
Credit
Systems
(8.1
billion
roubles),
Svyaznoy
Bank
(6.1
billion
roubles),
Orient
Express
–
5.2
billion
roubles
are
leading
in
terms
of
the
increment
of
their
card
porKolios.
MDM
Bank
is
the
only
one
among
the
twenty
to
reduce
the
porKolio
size
–
by
0.4%
to
4.47
billion
roubles.
The
size
of
the
credit
550%
card
market,
billion
500%
500,3%
roubles
450%
400%
367,8%
350%
300%
250% 227,6%
200,0% 192,2%
200%
171,3%
150%
2007% 2008% 2009% 2010% 2011% Q2,%2012%
4

5. 26
July,
2012
Russian
credit
card
market,
2012
Leaders’
equator
Subject
to
the
results
of
the
half-­‐year,
Sberbank
stands
out
of
the
group
with
the
drama^c
growth
of
its
market
share
–
by
2.7
points
up
to
19.8%.
Having
increased
the
porKolio
to
almost
100
billion
roubles,
the
state
giant
has
occupied
the
fidh
part
of
the
market
and
secured
a
foo^ng
in
the
first
line
of
the
ra^ng.
Sberbank
succeeded
in
overtaking
the
market
leader
of
many
years,
bank
Russian
Standard,
in
Q4
of
the
year
2011.
Another
large
state
bank,
VTB24,
reduced
its
market
share
from
9.4%
to
8.4%,
while
maintaining
sufficiently
high
porKolio
growth
rates
–
21.8%
from
the
beginning
of
the
year.
But
considering
tough
compe^^ve
environment,
when
several
players
are
increasing
their
porKolio
simultaneously
at
priority
rates,
other
players
cannot
afford
just
to
keep
pace.
Despite
a
slow-­‐down
in
Q2,
subject
to
the
results
of
the
en^re
half-­‐year,
Dynamics
of
the
major
Orient
Express
succeeded
in
increasing
the
market
share
–
by
0.9
subpoints
players
during
the
year,
up
to
7.1%.
Tinkoff
Credit
Systems
increased
the
market
share
from
5.8%
to
6.7%,
Svyaznoy
Bank
-­‐
from
3.4%
to
4.8%,
Bank
Trust
–
from
1%
to
1.1%.
The
billion
roubles
other
banks
from
the
top
20
have
remained
flat,
or
reduced
their
market
shares.
120,00
100,00
80,00
Sberbank
of
Russia
60,00
Russian
Standard*
VTB
24
40,00
Orient
Express
TCS
Bank
20,00
-­‐
5

6. 26
July,
2012
Russian
credit
card
market,
2012
Impressive
are
the
growth
rates
of
the
ac^ve
large
players
of
the
credit
card
market
that
target
100%
increase
within
a
year.
Sberbank,
Orient
Express
and
Tinkoff
Credit
Systems
have
increased
their
porKolios
by
57.2%,
54.6%
and
58.6%
respec^vely
since
the
beginning
of
the
year.
In
absolute
terms
the
increment
of
the
porKolios
of
these
banks
made
up
36
billion
roubles,
12.6
billion
roubles
and
12.4
billion
roubles
respec^vely.
As
a
result,
the
concentra^on
in
the
credit
card
market
has
grown
–
as
of
1
July
five
largest
players
account
for
57.2%
of
the
market
(286.1
billion
roubles
from
500.3
billion
roubles).
Twenty
major
players
control
90%
of
the
market.
Svyaznoy
Bank
stands
apart
among
the
top
ten,
having
increased
its
porKolio
by
93.1%
up
to
23.9
billion
roubles
in
half
a
year
(7th
place
in
terms
of
porKolio
size).
Among
the
second
half
of
the
top
20
high
growth
rates
Change
of
posiNons
were
shown
by
Renaissance
Credit
and
Trust
–
by
36.1%
and
43.2%
in
half
a
among
the
top
10
year,
but
in
absolute
terms
this
is
rela^vely
moderate
–
growth
by
2.1
billion
roubles
and
1.6
billion
roubles
respec^vely.
1
2
Sberbank
of
Russia
3
Russian
Standard*
4
VTB
24
5
Orient
Express
TCS
Bank
6
OTP
Bank
7
Svyaznoy
Bank
8
Alfa-­‐Bank
9
HCF
Bank
Rosbank
10
Ci^bank
6

7. 26
July,
2012
Russian
credit
card
market,
2012
Ader
the
period
of
stagna^on,
the
credit
card
market
picked
up
and
began
growing
fast
again
in
the
second
half
of
year
2010.
From
1
October
2010
to
1
April
2012,
within
a
year
and
a
half,
the
market
size
doubled.
In
2011
its
growth
made
up
61.6%.
The
results
of
the
first
half-­‐year
of
the
year
2012
allow
for
hoping
that
the
last
year’s
growth
rates
will
be
exceeded.
The
Russians’
preferences
con^nue
shiding
increasingly
towards
credit
cards
as
a
more
technological
and
convenient
method
of
credi^ng.
Therefore,
the
credit
card
market
may
count
on
addi^onal
dividends
from
the
general
buoyancy
in
the
retail
banking
sector.
Note
(*):
The
management
of
the
bank
Russian
Standard
believes
that
the
bank
should
sLll
be
occupying
the
first
line
in
the
raLng
in
terms
of
the
size
of
the
credit
cards
porKolio,
since
some
of
the
“card
loans”
are
recognized
by
the
bank
in
accounts
45505
(Loans
and
other
means
extended
to
natural
persons
for
a
period
from
181
day
to
1
year),
45506
(Loans
and
other
means
extended
to
natural
persons
for
a
period
from
1
year
to
3
years),
45507
(Loans
and
other
means
extended
to
natural
persons
for
a
period
in
excess
of
3
years).
According
to
our
experts’
opinion,
a
classical
credit
card
is
a
call
loan.
For
the
purposes
of
the
raLng
we
take
into
account
the
sum
of
the
accounts
45508
Leaders
in
terms
of
(Loans
and
other
means
extended
to
natural
persons
on
the
on
call
basis)
and
45509
(Loan
extended
subject
to
lack
of
means
in
the
deposit
account
porBolio
growth
(“overdraI”)).
Top 20 in terms of Increment, Increment, Top 20 in terms of Increment,
absolute growth for billion Top 20 in terms of absolute growth billion absolute growth from billion
June, 2012 roubles in a year since July, 2011 roubles the beginning of 2012 roubles
Sberbank of Russia 7,48 Sberbank of Russia 57,47 Sberbank of Russia 36,02
Russian Standard* 3,91 Orient Express 26,89 Russian Standard* 16,49
TCS Bank 3,32 Russian Standard* 22,79 Orient Express 12,61
Orient Express 1,49 Svyaznoy Bank 20,07 TCS Bank 12,41
VTB24 1,13 TCS Bank 18,06 Svyaznoy Bank 11,51
Alfa-Bank 0,85 VTB24 12,47 VTB24 7,53
OTP Bank 0,82 OTP Bank 8,78 OTP Bank 5,21
SKB-Bank 0,79 Alfa-Bank 5,72 Alfa-Bank 4,17
Svyaznoy Bank 0,73 Rosbank 5,31 Rosbank 3,09
MTS Bank 0,63 HCF Bank 3,78 SKB-Bank 2,43
Trust 0,41 Renaissance Credit 3,37 Renaissance Credit 2,08
Renaissance Credit 0,38 Credit Europe 3,00 Sovcombank 1,67
Gazprombank 0,33 SKB-Bank 2,55 Trust 1,60
Rosbank 0,25 Sovcombank 2,46 Raiffeisen Bank 1,45
Open Bank 0,17 Trust 2,31 Uralsibbank 1,28
Raiffeisen Bank 0,16 Raiffeisen Bank 2,23 MTS Bank 1,25
Sovcombank 0,16 Uralsibbank 1,95 Avangard 1,24
Citibank 0,12 Moskomprivatbank 1,86 Citibank 1,09
Avangard 0,12 MTS Bank 1,55 Gazprombank 0,85
Pervomaisky Bank 0,11 Open Bank 1,51 Credit Europe 0,84
Total 23,07 Total 213,25 Total 116,50
7

8. 26
July,
2012
Russian
credit
card
market,
2012
This
report
is
made
by
the
specialists
of
the
bank
Tinkoff
Credit
Systems.
For
the
purposes
of
drawing
up
the
report,
the
Bank
relied
on
the
informa^on
obtained
from
official
sources.
The
volume
of
the
porKolios
is
calculated
as
the
amount
of
the
undue
principal
debt
according
to
Central
Bank,
with
an
addi^onal
expert
evalua^on
of
the
secured
assets.
Please
contact
Oleg
Anisimov
on
any
mafers
related
to
coopera^on,
o.anisimov@tcsbank.ru.
TCS
credit
cards:
hfp://www.tcsbank.ru/credit.
TCS
deposits:
hfp://www.tcsbank.ru/deposit.
©
Tinkoff
Credit
Systems,
2012.
All
rights
reserved.
When
quo^ng
please
refer
to
the
bank
Tinkoff
Credit
Systems.
8