OREANDA-NEWS. February 17, 2014. Alfa-Bank’s Retail Business in 2013 demonstrated high growth rates in all areas. The Bank’s Retail Business credit portfolio according to Management Accounting grew to 222.7 bn rubles, which is 42.8% more compared to similar period in the last year.

Sizeable increase was marked in all consumer loan segments. For example, Alfa-Bank’s portfolio of credit cards grew by 82.7% to 56.3 bn rubles, while total growth gate of credit cards in the Russian market was 50.3%. The Bank is ranked fifth by its credit cards portfolio with a market share of 5.55%.

In 2013, through the use of its consumer lending points of sale Alfa-Bank extended loans in the amount of 62.9 bn rubles, which is 11.7% more compared to similar period of the year 2012. In 2013, the Bank’s cash loans portfolio grew by 44.2% to 98.2 bn rubles.

In 2013, average market share of funds deposited in on-demand accounts was 6.99%, which is 0.49% more compared to the end of 2012. Alfa-Bank still remains the only private bank in the Russian market ranked among top three in this segment. Term deposits grew by 36.3% to over 156.3 bn rubles in 2013, with market average growth rate over the same period being 19.2%. Stable growth in the number of individual deposits attests to high customer confidence in the Bank and makes it possible to keep a leadership position in the market.

Compared to 2012, total number of Alfa-Bank’s individual customers grew by 19.3% to 10.6 mln people.

In 2013, under payroll card programs the Bank issued over 700 thousand bank cards. Last year became record high by the number of payroll card customers.

In 2013, Alfa-Bank significantly expanded its footprint. The Bank opened 46 new full-fledged offices having grown their number by over 20%. In doing so, by year-end the Bank’s network totaled to 270 fully functional offices, of which 67 in Moscow and 203 in the regions, with 18 offices in a "light" format in the regions (4 with cash servicing and 12 less cash servicing). Alfa-Bank’s offices were opened first time ever in the cities of Zelenograd, Lyubertsy (Moscow Region), Yakutsk, Abakan, Novocherkassk and Taganrog (Rostov region), Berdsk, Linevo (Novosibirsk Region), Ulyanovsk, Izluchinsk (Tymen Region), Petrozavodsk, Miass, Yasny, Penza and Pskov. On top of that, A-Club was opened in Krasnoyarsk.

In the consumer lending segment the Bank continues developing its partnership relations both with large-scale country-wide retailers — M.Video, Eldorado, DNS, Svyaznoy and Euroset, and with small-scale regional companies and local trade networks specializing in selling travel services, electronic devices, household appliances, furniture and other goods and services. In 2013, Alfa-Bank launched lending in the web-store Sotmarket — one of the largest players in the market of e-commerce in Russia.

Last year, Alfa-Bank modified its loans sale technology in the POS located in its partner stores. Now the customers may obtain not only loans to buy goods, but also credit cards and receive loans in cash. By year-end the number of these points of sale grew to 2,770.

In 2013, the Bank’s consumer lending business launched an innovative product — Card "My Purchases". Today, nearly 25-30% of the consumer business POS throughout Russia are using this product. Partner of the project at the federal level is M.Video, the largest Russian retailer of electronic devices and household appliances, in the regions — DNS, a digital equipment store, and other leaders in making out consumer loans. Specific feature of Card "My Purchases" is that instead of term consumer loans the customers get credit cards to buy goods. The required amount is debited from the card and as soon as the loan is being repaid funds are credited back to the card and become available again. In doing so, the amount of payment may vary, while the date of payment remains unchanged, with a free limit on the card eventually increased by the Bank. The card makes it possible to draw customers for a longer term: average consumer loan period is 10 months, while the card remains valid for 3 years. This card has a variety of opportunities — in the nearest future customers may withdraw cash, pay for goods and services or spend money at their discretion.

Alfa-Bank has considerably expanded the network of its ATMs — up to 3,156 self-service machines, of which 1,914 are cash-in ATMs. The Bank has entered into two cooperation agreements for ATM network integration with Moscow Credit Bank to facilitate cash-in and with Rosselkhozbank cash-out services. Alfa-Bank’s customers can now withdraw cash less extra commission charges through the use of one of the most developed self-service machine networks in the Russian banking market. Today, the total integrated ATM network, in amalgamation with such banks as Promsvyazbank, MDM Bank, Rosbank and Universal Bank for Development and Partnership, includes nearly 18,800 machines in 2,360 localities in Russia. The Bank’s customers can place money in their bank cards and repay loans with no fee charged in over 6,700 machines.

Traditional strong point of the Bank is the development of innovation technologies. Alfa-Bank as the leading private bank in Russia has always been offering its up-to-date solutions and new technological approaches to organizing customer interaction channels, primarily through the Internet and mobile communication. So, in 2013 Alfa-Bank announced the launch of a new version of its Internet Bank "Alfa-Click" with a new platform and design. Through the use of "Alfa-Click" the Bank’s customers, inter alia, can pay traffic penalties, and with Mobile Bank "Alfa-Mobile" make transfers specifying just the amount, mobile phone number and e-mail of the beneficiary. The Internet Bank has a new functionality — "My Expenses" wherewith the customers can see graphically all their expenditures. Using this service, Alfa-Bank’s customers can get information on all their expenses in an itemized way within a certain period.

The Bank has launched a free mobile application "О!рр" for iOS to make card-to-card transfers. It is a convenient and prompt way to make card-to-card transfers available to card holders of any bank.

Total number of the customers using the Internet Bank "Alfa-Click" cut the crucial milestone of 3 mln people, and the number of the payee companies grew to over 11,000 (number two in Russia).

Today, the number of the Mobile Bank "Alfa-Mobile" users exceeds 400,000 people, which is a tangible figure, making it possible for the Bank to remain a trend benchmarking player defining dynamic growth in this sector of the market.

"The year 2013 was quite successful for us. We have met a variety of ambitious challenges: today we have over 10 mln customers; the bank has grown in all priority sectors of the market, primarily it refers to on-demand accounts. In spite of the falling market in Russia we have demonstrated dynamic growth. We view it as our customers’ confidence in Alfa-Bank. We had a considerable growth in lending less mortgage, and in our portfolio of credit cards, which makes us fifth in the country, — says Alexei Korovin, Head of Retain Business, Member of the Executive Board, — "We want to be involved in the day-to-day life of our customers. Nobody is giving a great deal of thought to banking relations, occasionally people just have certain needs: to pay phone or housing and public charges, make renovation, save or make much of investments, while banks offer instruments for implementation of these needs, helping to keep high-level of financial liberty. Therefore, we see our mission in becoming a prime bank for every day needs".