In the second quarter of 2008 the net profit of Citi Handlowy amounted to PLN 170 million as compared to PLN 242 million in the corresponding period of 2007. The Bank's operating income, excluding one-off transactions, after the first six months of the year is 3 percent higher than in the corresponding period of the previous year. In the second quarter of 2008 the operating income, excluding one-off transactions, was 15 percent lower than in the same period of the previous year due to treasury operations.

The positive trends in the Bank's result in the second quarter of 2008 as compared to the second quarter of 2007 include, among others, an increase in net interest income by 11 percent and an increase in interest margin to 3.3 percent. A significant improvement was noted in such elements of the balance sheet as an increase in loans to non-financial sector by 19 percent, an increase in the loans to deposits ratio to 69 percent and an increase in the ratio of loans to total assets to 37 percent as at the end of the second quarter of 2008. The Bank's capital adequacy ratio (CAR) remains at a high and stable level of 11.6 percent.

A significant achievement of the corporate banking is the OnLine Trading platform, whose volume of transactions grew by 116 percent y-o-y, and the value of FX transactions made by the public sector via the platform rose by 191 percent. In the second quarter of 2008 Citi Handlowy retained its position of leadership in the prepaid cards market with a market share of more than 70 percent and 395 thousand prepaid cards issued as at the end of June. The innovative product for courts and prosecutors' offices - Micropayments, enjoys great popularity, which is confirmed by the fact that the number of agreements signed grew by 47 percent (Q2, 2008 vs. Q1, 2008). One of the most noteworthy transactions in the corporate banking was the issue of 5-year bonds for TVN S.A. with total nominal value of PLN 500 million. Particularly worth noting is also the fact that the overall satisfaction of corporate customers of the Bank maintains at a high level, exceeding 80 percent.

As regards the Bank's offering for individual clients, there was an increase in the number of current accounts denominated in PLN by 42 percent as at the end of Q2, 2008 vs. Q2, 2007. The Bank strengthened its leading position in the credit cards market - in the second quarter of 2008 the Bank acquired a record number of 74 thousand credit cards, up by 42 percent compared to the second quarter of 2007. The month of June also saw a record value and a record number of transactions - over 3 million transactions worth PLN 584 million!!! The Consumer Bank is continuously developing its portfolio of co-branded cards - led by Citibank BP credit card, which is used by the largest number of users, - as at the end of June the Bank had more than 215 thousand such cards. The Bank's structured products, which were offered as an alternative to investing on the stock exchange, also enjoy great popularity. The value of sales of structured products Q2, 2008 vs. Q2, 2007 increased by 230 percent, and the total sales of such products in the period from January to June 2008 amounted to about PLN 415 million.