Position in the industry
Concentration of bank assets remained unchanged in 2019: the top 20 banks still account for 83% of the total assets, and the top 10 banks account for 74%. There are still only two privately-owned banks among the ten largest banks by assets.
MKB is a top bank owned by non-state domestic shareholders. It operates as a universal bank, with the corporate segment accounting for the greater part of its loan portfolio and the retail segment for a significant portion of its deposit portfolio. Unlike state-controlled banks, whose access to long-term international financing has been severely curtailed by international sectoral sanctions, MKB, as a large privately-owned bank, maintains access to global debt and equity capital markets, and has been increasingly competitive in the Russian banking sector.
Despite the high competition in the banking market and the changing macroeconomic environment, MKB continuously demonstrates high adaptability and vindicates its status as the largest privately-owned public bank. The bank increased its market share in corporate lending by 2.68 pp since 2015 to 4.69% as at end-2019. Its market share in retail lending was 0.71% as at end-2019. Over that period, the bank’s market share in corporate and retail deposit-taking expanded by 0.67 and 0.69 pp, reaching 3.65% and 1.59%, respectively.
The bank’s key competitors in corporate lending are: Sberbank, VTB, Gazprombank, Russian Agricultural Bank and Alfa Bank. Retail lending competitors include: Sberbank, VTB, Alfa Bank, UniCredit Bank, Raiffeisenbank, Sovcombank and Tinkoff Bank.
|Total loans to individuals||1.15%||0.95%||0.92%||0.73%||0.71%|
Among Russian privately-owned banks, MKB consistently maintains the second position in terms of market share of the total loan portfolio and the volume of attracted deposits of corporate and retail customers, which amounted to 3.4% and 2.6%, respectively.
MKB continues to demonstrate a strong financial position. As at 31.12.2019, it has high capital adequacy ratios compared to its main competitors, and features among the leaders by asset growth rates for the last 5 years and by loan portfolio quality.