Citibank Rt., a member of Citigroup, today announced that it increased its after-tax profits by 27% from HUF 7 billion in 2001 to HUF 8.8 billion in 2002. Total assets increased from HUF 300 billion to HUF 319 billion. Total loan portfolio increased by 14% to HUF 166 billion and deposits increased by 8% to HUF 247 billion. Return on equity (ROE) increased to 32.7%, from 29.4% a year earlier, and return on assets (ROA) increased from 2.3% to 2.9%.

Zdenek Turek, Citigroup Country Officer for Citibank Rt., said, "2002 was a year of solid business growth for Citibank Hungary. We are even more proud of our achievements in view of the considerable challenges we had to face in what was a difficult economic and market environment. We continued to build a well-balanced franchise and focused on further improving the level of our customer service and on developing our various distribution channels to make it more convenient for our customers to do business with us."

In February Citibank Hungary signed a framework agreement with Hitelgarancia Rt. based on which the issuance of Hitelgarancia unconditional payment guarantees became faster and simpler, thus enabling the bank to provide more market-oriented, efficient services to the small and mid-sized enterprise (SME) sector. In May, Citibank Rt. partnered with Sanoma Budapest Kiadó Rt. to launch a new initiative aimed at the SME sector. The program includes a monthly business magazine, an internet portal and a Certificate of Excellence award scheme for qualifying companies, among others. The bank's custody department won the fund administration mandate for four out of five Aegon funds in Hungary and for the two Generali local pension funds. The treasury department maintained its leading position in terms of foreign exchange trading volumes and derivatives. In March, Citibank organized the popular Treasury Workshop and Bourse Game for the third time with 30 college and university students participating.

The consumer business also enjoyed a successful year with the number of consumer customers rising to more than 280,000. In August, the product range was extended through the distribution of four Credit Suisse offshore equity funds, becoming the first financial institution in the local market to offer offshore mutual funds to retail customers. The number of credit card holding customers rose to more than 130,000 and the number of our Westel-Citibank VISA credit card customers reached 50,000. In order to increase brand awareness and help favorably position the franchise, Citibank was the Diamond Sponsor of the Success 2002 conference organized by Figyelo, the weekly business magazine, at which some of Hungary's highest achievers in business, the arts and the sciences spoke about their personal success stories to a large audience consisting of important members of the business community.

Citibank Hungary's custody team won Global Custodian's 'Top Rated' ranking for the sixth consecutive year in 2002. Based on feedback from clients, Citibank Hungary was also named best custodian of the year in 2002 in Hungary. This survey is the leading indicator of the service quality of local custodians and it is an outstanding achievement for the Hungarian Citibank's custody team, especially in the context of current market conditions. Also, Citibank Hungary was named Most Popular Securities Settlement Bank in Equities and Fixed Income and Best Quality Securities Settlement Bank in Equities and Fixed Income by Global Investor Magazine in 2002.

The bank is also committed to being an active and supportive member of the communities in which it does business. Citibank Rt. continued the Citibank School Charity Program launched in 2001 in partnership with Junior Achievement Hungary. The Citigroup Foundation donated $100,000 which went towards providing teaching materials to more than 15,000 students in 29 elementary schools across Hungary. Thirty secondary school students and 30 economics teachers took part in the 11th annual 'Economics for Leaders' summer program in Hungary, which was sponsored by the Citigroup Foundation. Citibank Hungary, together with the Foundation for Developing Financial Culture, co-founded the Felkai Andras Academic Award to support the studies of talented students and young professionals selected by a committee. The bank also continued the Hospital Charity Program by supporting the Semmelweis Medical University's Paediatric Clinic II. As a result of the changeover to the Euro, the bank supported UNICEF with in-currency coins from our vault totaling HUF 3 million. Through Friends of Franz Liszt Music Academy, Citibank supported further education of young talented Hungarian musicians for the second year.

Major financial data for Citibank Rt. (as of December 31st, 2002, according to Hungarian Accounting Standards)

* preliminary calculation

About Citigroup
Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.

About Junior Achievement Hungary
Junior Achievement Hungary (JAM) is a licensed franchise of Junior Achievement International. The foundation has been running its programs in Hungary since 1992. Eleven separate programs targeted from kindergartens to high schools are currently being offered to 26,000 students in 86 cities and villages across Hungary. The mission of JAM is to provide students with the opportunity to learn about the business environment and free market economy through a dynamic partnership between businesses and schools. By attending these programs, students acquire knowledge and essential skills that will help them become educated consumers, more productive employees and more responsible members of the business community.