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TCS HoldingAnnouncement

20/02/2017 09:00

RNS Number : 2892X
TCS Group Holding PLC
20 February 2017
Tinkoff Bank Research: Slower Contraction in the Credit Card Market in2016
Moscow, Russia- 20February 2017Today Tinkoff Bank publishes the findings of its research on the Russian credit card market inQ4 and FY2016.
The research is based on the data of the Central Bank of Russia(CBR) and only takes into account loans that are not overdue (on demand loans and overdrafts to individuals).
FY results
According to the research, in2016 the credit card market volume hit a three-year low ofRUB999bn. The last time it fell short of RUB1tn was 1January 2014, when the market totalled RUB990bn. In2016, the rate of contraction of the credit card market slowed down for the first time in two years. As a result, the total credit cards market declined byRUB33.8bn in absolute terms stabilising atRUB999bn as at the end of2016. This tendency mirrors the reduction in other non-secured loan portfolios.
Credit card market concentration continued to grow throughout2016. At the end of2015 the five largest banks controlled 69.9%of the market, while at the end of2016 their aggregate share reached73.8%. The number of credit institutions holding portfolios worth over RUB1bn decreased to34, with their market share totalling 98.8% at year-end.
In2016, Sberbank the traditional market leader, boosted its share to42.8% by expanding the portfolio against the backdrop of a declining market. In absolute terms, the bank's portfolio increased by RUB20.8bn reaching some RUB427.7bn.
Tinkoff Bank has the second largest share in the credit card market. In2016, the Bank increased its portfolio by19.6% boosting its market share by2p.p. to10.3%. In absolute terms, Tinkoff Bank's portfolio grew byRUB16.8bn to RUB102.5bn.
OrientExpress Bank delivered the highest relative growth among the Top20 banks, with its portfolio increasing by37.2% in 12months. In absolute terms, the portfolio of OrientExpress Bank grew byRUB10bn to RUB36.8bn.
In2016, the portfolios of Russian Standard Bank, OTPBank and B&NBank Credit Cards saw the sharpest drops of RUB23.4bn, RUB10.9bn and RUB9.9bn, respectively. 
With a portfolio reduction of45.2% (from RUB18.8bn to RUB10.3bn), Trust Bank suffered the greatest relative contraction among the Top20 banks.
Oliver Hughes, CEO of Tinkoff Bank, commented on the bank's portfolio growth as follows: "In2016 Tinkoff Bank enjoyed consistent growth while retaining stringent risk controls. As a result, by the end of2016, we reached a record issuance rate of 150,000cards per month. We expect a 24% credit portfolio increase for the full year. In2017, we will continue to grow and plan to expand our credit portfolio by a further 15-20%." 
Q42016
In Q42016, the credit card market contracted by RUB17.2bn. The record drop of some RUB22.9bn happened in December2016, as the market saw the usual seasonal effect of customers paying down their debts before the New Year. 
In Q42016, only three players managed to increase their market share by more than0.1p.p. Those included Sberbank (0.9p.p.), Tinkoff Bank (0.4p.p.) and Orient Express Bank (0.2p.p.). The banks that suffered a significant reduction in their market shares were Russian Standard Bank (0.4p.p.), B&NBank (0.4p.p.), OTPBank (0.2p.p.), and Trust Bank (0.2p.p.).
Methodology:
The report was drafted by Tinkoff Bank's team.
For the purposes of this report, theBank relied on CBR data. Tinkoff Bank's analysts use amounts in accounts45502 (loans and other funds provided to resident individuals for a period of up to 30days), 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).
Credit Card Market Report - 4Q 2016
For enquiries:
Tinkoff Bank
Darya Ermolina
Head of PR
+ 7 495 648-10-00 (ext. 2009)
d.ermolina@tinkoff.ru
Tinkoff Bank
Larisa Chernysheva
IR Department
+ 7 495 648-10-00 (ext. 2312)
ir@tinkoff.ru
FTI Consulting London
Elena Kalinskaya/Leonid Fink
+44 (0) 020 3727 1000

About Tinkoff Bank
Tinkoff Bank is an innovative provider of online financial services operating in Russia through a high-tech branchless platform. The bank was founded in 2006 by a Russian entrepreneur Oleg Tinkov. 
The bank's product range includes credit, debit and prepaid cards, deposits, co-branded cards, agent-based mortgage products and investment services. 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, Card2Card instant money transfers).
The bank's five-year strategy has the ambition of becoming a financial supermarket where customers can shop not only for our products, but also for those of our partners.
As at 1November 2016, the bank was the second largest player in the Russian credit card market, with a market share of 9.9%. The 9M2016 IFRS net income of the parent company, TCS Group Holding PLC, which includes TinkoffBank and the insurance company Tinkoff Insurance, amounted to RUB7.3bn.
In October 2016 Tinkoff Bank was named the largest independent global direct bank by Frost & Sullivan. In 2016 and 2015, the Global Finance magazine named TinkoffBank as the Best Consumer Digital Bank inRussia. In 2016, the bank also won Global Finance's Best Integrated Consumer Bank Site award. In2016, TinkoffBank was named the Best Digital Bank in the CEE by Euromoney. Its mobile application was recognised as the best in Russia by Markswebb Rank&Report in 2014, 2015 and 2016, and by Deloitte for four years in a row in 2013-2016.
TinkoffBank is a member of the deposit insurance system (the system guarantees each depositor of member banks a payout of RUB1.4mln on deposits and current accounts, including interest income).

This information is provided by RNS
The company news service from the London Stock Exchange
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