MOSCOW, April 8, 2013 /PRNewswire/ --
National Bank TRUST ("TRUST Bank" or "TRUST"), one of Russia's largest commercial banks, announces the results of its consumer product credit portfolio for 2012 which shows that it is continuing to deliver above market growth figures in the extremely dynamic and fast growing Russian consumer credit market.
TRUST Bank's primary focus is on delivering a range of high quality products in the retail credit market in Russia. Its performance in two of the most exciting segments of this market is particularly noteworthy. These are credit cards and POS-credits (in-store loans for a specific product or products issued at the point of sale). It also continues to conduct "Point of express" crediting (a fast cash credit that can be issued from a pop-up station in place of high consumer traffic). In 2012 TRUST opened over 300 new points of this kind around the country.
The Russian credit-card sector in 2012 grew more than 90%, accelerating from a 60% increase in 2011, according to research by the Frank Research Group. In 2012 TRUST delivered around 150% growth in its credit card portfolio. Within this sector TRUST Bank has demonstrated exceptional growth, significantly outperforming the market:
TRUST Bank credit card performance
Year Amount Growth 2010 RUB 1.7bn 2011 RUB 4.3bn +RUB 2.6bn +153% 2012 RUB 10.7bn +RUB 6.4bn +148% 2013 RUB 21bn* +RUB 10.3bn +96%
* TRUST Bank internal forecast
With only about 15% of the economically active population of Russia currently holding a credit card, the likelihood of the continued strong growth of this sector is forecast to continue.
In the POS-credits sector in Russia TRUST Bank has also delivered significant growth figures. From a standing start in September 2010 TRUST's growth figures have been exceptional and now has more than 4,000 partners across the country:
TRUST Bank POS-credit performance
Year Amount Growth 2010 RUB 659m 2011 RUB 3.9bn +RUB 3.24bn +492% 2012 RUB 6.3bn +RUB 2.4bn +62% 2013 RUB 9.3bn* +RUB 3bn +48%
* TRUST Bank internal forecast
The market in Russia for POS-credits was initially mainly used for items such as household appliances and similar items such as televisions, phones and computers. However these loans are now being used for an increasingly wide variety of items and now include clothes, building materials, insurance products and even tourism related expenditure. It is therefore considered likely that that is market has a long way to go before it approaches any kind of maturity.
Commenting on these results, Fedor Pospelov, Chairman of the Managment board of TRUST Bank, said: "TRUST is interested in the whole range of retail crediting. For the past few years we had been actively growing the portfolios of cash loans, however last year we switched our primary focus to concentrate more on delivering growth in our credit card and POS-credit portfolios, and the results speak for themselves. We will continue with this strategy going forward, although we will also continue to enhance the efficiency of other consumer cash loan products and accessibility to banking services for private customers and entrepreneurs."
National Bank TRUST
TRUST Bank offers a full range of retail banking services to corporate, SME and retail customers across Russia. It has 253 branches in 166 cities, from Kaliningrad to Vladivostok and is among the top 20 Russian banks in terms of deposit and retail credit portfolios. In August 2012 the RusRating rating agency confirmed TRUST's A- rating, with a stable forecast. It is the 3rd most recognised retail banking brand in Russia according to research carried out by Market UP in April 2012.
SOURCE National Bank TRUST