Russian Borrowers' Credit Performance Hits Two-Year Low, According
to FICO and NBKI Index
MOSCOW, Nov. 19, 2012 /PRNewswire/ -- FICO (NYSE:FICO),
the leading provider of analytics and decision management
technology, and the National Bureau of Credit Histories (NBKI),
Russia's leading credit bureau,
today released data showing that Russian borrowers' credit
repayments fell in the third quarter, putting the FICO® Credit
Health Index at the lowest point since October 2010. The FICO Credit Health Index fell 2
points from last quarter, to 111 points. This was the second drop
this year.
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The FICO Credit Health Index measures the overall credit health
of the country, based on the percentage of consumer loans and
credit cards reported to NBKI that are delinquent by more than 60
days. Since October 2009, when this
"bad rate" was 11.28 percent, the index steadily improved until
January 2012, when just 7.05 percent
of Russian credit accounts were delinquent. At the October 2012 reading, the index represents a bad
rate of 7.76 percent.
"Despite the drop in the third quarter, the FICO Credit Health
Index still reflects relatively high quality of credit behavior,"
said NBKI CEO Alexander Vikulin.
"More borrowers are showing short-term delinquencies in their
credit obligations, but the overall quality of credit portfolios is
strong."
All regions for October 2012 have
shown a drop in their index since January
2012. The biggest drop occurred in Dalnevostochny, which
fell from 122 to 111 last quarter. The Centralnyi and Privoljskii
regions contain the largest credit-active populations, and both
regions outperformed the total population for October 2012 and the average total population
index since October 2008.
"The FICO Credit Health Index fell only slightly, and Russian
borrowers continue to show positive behavior," said Evgeni
Shtemanetyan, who directs FICO's operations in Russia. "However, this year has seen a change
in the index's direction, and we advise credit organizations to
monitor their customers closely, and review their credit approval
strategies."
FICO and NBKI share this data with Russian lenders to improve
their understanding of the market, and help them safely extend
credit to consumers. Russia is one
of the fastest-growing credit markets. According to NBKI, banks'
and financial organizations' credit portfolios grew by 25% during
the first half of 2012.
About FICO
FICO (NYSE:FICO), formerly known as Fair Isaac, delivers
superior predictive analytics solutions that drive smarter
decisions. The company's groundbreaking use of mathematics to
predict consumer behavior has transformed entire industries and
revolutionized the way risk is managed and products are marketed.
FICO's innovative solutions include the industry-leading solutions
for measuring credit risk, managing credit accounts, identifying
and minimizing the impact of fraud, and customizing consumer offers
with pinpoint accuracy. Most of the world's top banks, as well as
leading insurers, retailers, pharmaceutical companies and
government agencies, rely on FICO solutions to accelerate growth,
control risk, boost profits and meet regulatory and competitive
demands. Learn more at www.fico.com. FICO: Make every decision
count™.
For FICO news and media resources, visit www.fico.com/news.
About NBKI
National Bureau of Credit Histories (NBKI) is the largest credit
bureau in the Russian Federation.
It was created in 2005, and counts among its shareholders major
commercial banks and international companies CRIF
and TransUnion. Its main specialty is an integrated center
that stores and processes comprehensive data for creditors'
decision making. As of August 2012,
NBKI consolidates data from more than 1,350 Russian creditors. The
bureau provides the Russian market with modern high-tech solutions
for risk assessment and control.
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Reform Act of 1995. These forward-looking statements are subject to
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SOURCE FICO