Tinkoff research: Russia's credit card market expands to reach RUB 1.637 tn in 3Q 2020
Moscow, Russia - 11 November 2020.
Tinkoff has published the findings of its Russian credit card market research for 3Q 2020.
The research is based on data by the Bank of Russia and takes into account non-overdue debt (demand loans and overdrafts to individuals) only.
Market size and performance
After a contraction in 2Q 2020 caused by the coronavirus outbreak, Russia's credit card market recovered slightly in 3Q. In July, continued restrictions caused the market to grind to a halt, while in August the market grew by this year's second highest monthly amount after January. In August, the market rose by RUB 28.5 bn (vs RUB 31.1 bn in January 2020). In September, the market's modest growth amounted to RUB 8.5 bn. As a result, credit card debt increased by RUB 37 bn in 3Q 2020 and the market grew by RUB 42.2 bn year-to-date. As of 1 October 2020, the credit card market volume reached RUB 1.627 tn.
The q-o-q and y-o-y growth amounted to 2.3% and 2.6% respectively.
In 3Q 2020, Sberbank's market share shrank from a record high of 44.6% to 44.5%. Alfa-Bank increased its credit card portfolio by 0.5 pp with its market share amounting to 11.2% as of 1 October. Sovcombank also demonstrated solid portfolio growth, increasing its market share by 0.8 pp to 4.1%. Tinkoff retained its 13.5% share of the market, while Russian Standard Bank and Orient Express Bank lost 0.2 pp and 0.3 pp respectively.
The number of credit institutions with a portfolio of over RUB 1 bn stood at 30 (vs 31 in 2Q 2020). However, their aggregate market share remains at 99.6%.
In Q3 2020, Sberbank once again showed the strongest performance in the credit card market, increasing its portfolio by RUB 14.3 bn to RUB 728 bn. Sovkombank ranked second in terms of growth (with its portfolio increasing by RUB 13.9 bn to RUB 66.5 bn) and thus became the sixth largest player in the credit card market. Alfa-Bank came in third (with a gain of RUB 12.4 bn in three months) with its portfolio and market share amounting to RUB 183.5 bn and 11.2% respectively.
Considerable growth was also reported by Tinkoff (its portfolio increased by RUB 6 bn to RUB 221.5 bn) and VTB (up RUB 1.7 bn to RUB 105 bn) despite the fact that VTB decreased its market share from 6.5% to 6.4%.
Orient Express Bank had the biggest drop as its portfolio shrank by RUB 4 bn q-o-q to RUB 59.7 bn. As a result, its market share contracted by 0.3 pp to 3.6% and the bank ranked seventh as at the end of Q3.
This report was drafted by Tinkoff's team based on data by the Bank of Russia and took into account non-overdue debt (demand loans and overdrafts to individuals) only. 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 non-resident individuals), and 45708 (deposit account overdrafts provided to non-resident individuals).
Russia's credit card market in 3Q 2020