2007 marked a record business year for Citibank Zrt. in Hungary with solid results across all business lines. After-tax profit increased 13 percent over 2006, while total assets grew from HUF 597.8 billion to HUF 675.8, a 13 percent expansion. The total loan portfolio at the end of 2007 was HUF 180.4 billion, resulting a 1 percent decline over 2006 mainly due to decrease in leasing related loans. Deposits were at HUF 360.7 billion, recording a 13 percent increment over 2006. Return on equity (ROE) continued to be high at 30.55 percent, and return on assets (ROA) was at 2.36 percent for 2007.

"Citibank Hungary's 2007 performance was remarkable especially in light of the challenging global and local economic environment. Our franchise continued to be well balanced with both our corporate and consumer businesses posting solid results. Our ongoing innovations show our strong commitment to our customers and the Hungarian market." - said Batara Sianturi, Citi Country Officer for Hungary.

The commitment to increase service levels and enhance technology was recognized by clients through record high client satisfaction results in client and industry surveys. These include wins for:

• Best Cash Management House in Central and Eastern Europe by Euromoney,
• Best Consumer Internet Bank and Best Corporate and Institutional Internet Bank in Hungary by Global Finance for the second consecutive year,
• Best Consumer Website Design, Best Integrated Consumer Bank Site and Best Information Security Initiatives in Central and Eastern Europe by Global Finance
• Best at Online Cash Management and Best at Trade Finance Services in Central and Eastern Europe by Global Finance
• Number one in the "Best Bank for Settlement - Fixed Income" category by Global Investor magazine's European Clearing Survey
• "Top Rated" status by the Global Custodian magazine's Emerging Markets Survey in the 'leading clients' category.

Citi Markets & Banking

• The Citi Markets & Banking business continued to grow during 2007 with acquiring a significant number of new clients across the different client segments: multinationals, financial institutions, top tier local companies and medium size enterprises.
  A spectacular performance was achieved across every product line within

• Treasury: FX, Fixed Income, Derivatives, and
• Global Transaction Services: Cash Management, Trade Services & Finance, and Securities & Fund Services. 
  
  
• Treasury
• The Treasury department offers a wide range of Treasury products to corporate clients with special attention to identification of their operational risks and offering tailored hedging solutions to reduce their risks. A new version of CitiTreasury Online Trading platform was introduced last year providing unique access to foreign exchange markets for the clients. The Treasury department managed to maintain its leading position in derivatives trading on the local market.
  
  
• Securities & Fund Services
• In the Securities & Fund Services business the assets under custody grew by 15 percent and average transaction volumes increased by 16 percent last year. The business maintained its market-leading position in the international client base and as a reward of its strategic direction, continued to expand its client base in the local institutional investor segment by several new pension fund and mutual fund mandates.
  
  
• Top tier local corporates
• The franchise realigned the target market and the coverage team dealing with top tier local corporates to focus on high value added products and services. The aim of the reorientation was to provide more tailor-made and sophisticated solutions to clients. The professionals serving this client segment succeeded to demonstrate the bank's strengths to benefit customers especially in the areas of Treasury and Corporate Finance. Innovation has been a cornerstone of the success and growth in this business segment with several 'firsts' and new transactions of their kind.

• Commercial Relationship Banking

• The Commercial Relationship Banking unit, a growing part of Citi Markets & Banking provides services to clients with annual net revenue ranging from HUF 450 million to HUF 10,000 million. The dynamic growth of client base and asset portfolio in this segment was the result of the franchise strategy to enhance its Treasury offering to this segment to include sophisticated investment and risk management solutions that it had previously offered only to large corporations. Another success contributor has been the strategy to build long-term relationships with clients and provide them with a multi-channel unique service consisting of personal relations managed by highly skilled relationship managers, the professional CitiService telephone customer service and the Electronic Banking Helpdesk, a hotline support for the CitiDirect Internet banking system.

2007 was another spectacular year for the Consumer business as well with more than 41,000 new customers joining the bank. It was also a special year as the new rebranding initiatives sparked the Marketing scenes for the Consumer business. The launch of Citi rebranding "Váltsuk valóra!" (Let's Get It Done) via an integrated campaign in the summer of 2007 marked the beginning of a new era in the Marketing Communication of the bank, which covered TV, Mass Marketing and Public Relations, supporting the four major Consumer businesses: Cards, Wealth Management, CitiBusiness and Consumer Loans.

• Credit Cards
• The Credit Cards business continued to have a successful year. The bank launched the Citibank Student Card for university and college students with tailored benefits that help a new generation learn to use credit wisely.
• The Malév-Citibank Credit Card Program welcomed its 10,000th card member in September. As a result of the strong commitment of both Malév and Citibank and the high branding visibility at the Budapest Ferihegy Airport, the Malév-Citibank Credit Card member base continued to grow rapidly. Customers also favored the Shell MasterCard from Citibank card. With sustained focus from Shell and Citibank, special acquisition promotions in 2007 and presence at Shell locations, this new product also performed strongly.
• Continuing the tradition of providing value added benefits to its card holders, Citibank launched the innovative 'One Bill' facility. The 'One Bill' facility provides card holders the convenience of having all their utility bills debited directly to their Citibank credit card avoiding the inconvenience of tracking these bills separately.
  
  
• Wealth Management
• In the Wealth Management business, while keeping the strong position in the priority banking, the number of Citigold customers reached 5,200 at the end of last year, representing a 24 percent growth over 2006. In terms of the total client assets portfolio the business reached a 16 percent expansion, surpassing HUF 164 billion by the end of the year.
• Since many of the top-tier Citigold customers are business owners, and both personal and business banking requirements of the most affluent individuals demand distinguished and preferential treatment, the bank pioneered a concept that offers both top-tier personal wealth management and top-tier small business banking in its exclusive Citigold Select Center in the heart of Budapest at Vörösmarty Square. The preferential services include dedicated teams of financial specialists, toll-free phone access to Citibank, embossed business Gold Banking Card and an exclusive personal Platinum Credit Card with the Platinum Club privileges. This solution sets apart Citibank Hungary as the leader and pioneer in a comprehensive proposition as it partners with the customers to support their growth.
• Citibank also launched the Citigold Global Access, a suite of convenient and complimentary services and privileges that Hungary's Citigold customers can enjoy when they visit any of the more than 500 Citigold Centers in 35 countries around the world. The offering includes free Citigold Center access, a toll-free One-number Hotline, preferential FX rates and an emergency cash withdrawal.
  
  
• In the Investment Product suite the world-class funds offering was increased to 92 open-ended domestic and foreign mutual funds provided by various prestigious fund management companies, including ING, Credit Suisse, Blackrock, Templeton, Allianz and Aegon, and more than 20 structured notes were launched.
  
• In the Deposit business the financial institution introduced the MasterCard Photo Embossed Debit Card, featuring the photo of the cardholder. Inclusion of the photo on the embossed debit card makes this product unique on the Hungarian market as well as within the European Union countries. The cards are linked to all current account fee packages offered by Citibank Hungary and not only new customers but also existing customers can apply for this unique bank card.
• The bank has also added three new insurance products to its offering: a Single Premium Unit Linked Insurance for its account holding customers in cooperation with Aegon Hungary, a Single Premium Personal Loan Insurance in partnership with AHICO and a Hospital Cash Insurance linked to its credit cards where Citibank's partner is AIG Insurance Company.
  
  
• CitiBusiness
• CitiBusiness, embedded in the Global Consumer Group business, offers banking services to small and medium-sized enterprises (SME) with annual net sales up to HUF 450 million. CitiBusiness provides comprehensive liability, asset and FX products. Adding more colors to its palette in 2007, the business enriched its liability package with a corporate embossed debit card and added new features to the Citibank Online Internet banking platform. CitiBusiness also introduced new financing schemes such as Aranytartalék Hitelkeret - offering small ticket clean financing at the time of CitiBusiness relationship opening -, and a private investment collateralized asset structure. CitiBusiness FX proposition has been strengthened with structured FX risk management products to serve sophisticated needs of export-import companies. The business launched the Customer Care Phone Team for on-boarding new customers and helping existing customers to utilize their banking opportunities with CitiBusiness.
  
  
• Consumer Loans
• In the Consumer Loans business, the bank opened a new Sales Center in Örs vezér Square - Sugár Shopping Center in September 2007. It has also made available the Single Premium insurance product as part of its Personal Loans offering. 
  
  
• Internet and Phone Banking
  • The Consumer business continued the innovations in the Internet banking space and phone banking. Last year the bank launched the One-minute credit pre-approval process on the Internet website at www.citibank.hu as well as the WebShop to allow customers to select the credit cards and loan products that best fit their needs in the fastest and most convenient way. The phone banking now offers automated sales over the phone and conducts automated customer satisfaction surveys.

• Sponsorship of Arts and Culture
  • As a continuation of supporting arts and cultural programs in Hungary, the bank was proud to be sole sponsor for the Concert of the New York Philharmonic in Budapest on May 4 and key sponsor for the Picasso, Klee, and Kandinsky exhibition in the Museum of Fine Arts in 2007.
    
    
• Financial Education
  • With a grant of $130,000 from the Citi Foundation, the franchise continued the Citibank Financial Education School Program bringing economics, finance, mathematics and English-language teaching materials and books for 15,000 students in 36 elementary schools across Hungary. 
  • Citibank also continued its Citi Corvinus University Financial Program, supporting the university in its endeavor to increase the level of financial education and to offer its students access to the most up-to-date information and trends in the financial markets. The support is a result of a $70,000 grant from the Citi Foundation and local Citi volunteers giving presentations and lectures to the students of the Department of Enterprise Finances. Last year the bank initiated a Case Study Competition to award three students developing the best case studies.
  • Thirty secondary school students and thirty Economics teachers took part in the annual Economics for Leaders Summer Program in Hungary, which was also sponsored by the Citi Foundation.
    
    
• Employee Volunteering
  • Around 50 employees of Citibank Zrt., along with some of their family members and friends, joined more than 58,000 Citi volunteers in 100 countries for the second Citi Global Community Day on Saturday, November 17 to support two institutions of Education and Childcare in Budapest.
  • Within the framework of the Habitat for Humanity House Building Employee Volunteering Program, four groups of 20 employees helped build affordable houses for families in Hajdúböszörmény. The Citi Foundation supported the program with a grant of $40,000.
    
    
• Capacity building and microfinance for non-profit organizations
  • In 2007 Citibank Zrt. launched a new regional community program in partnership with NESsT foundation to support nonprofit organizations to start their own enterprises that allow them to create their long-term financial sustainability and fund their community goals. Besides financial support from the Citi Foundation, the assistance provided by NESsT and Citi professionals extends to consultation, guidance and mentoring.

Additional community programs include support of integrated studies of blind students, Szeged Children's Hospital, and the Friends of Franz Liszt Music Academy.