MM PLN 4Q 3Q 2Q 1Q Q06. Source: Bank s Financial Disclosures

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1 Bank Handlowy w Warszawie S.A. Consolidated results after 3Q th h of November,, 2006

2 Almost 80% of the previous year profit achieved after 3Q MM PLN Q06 4Q 3Q 2Q 1Q Source: Bank s Financial Disclosures 2

3 Cumulative 3Q 2006 results PLN MM Net interest income % Net fee and commission income % Dividend income % Treasury (194.8) (40.5%) Other operating revenue % Recurring income 1, ,745.0 (174.9) (10.0%) Expenses and depreciation (1,114.1) (1,144.5) (30.4) (2.7%) Income on fixed assets sale n.m. Movements in provisions % Share in subs' profits (152.9%) EBIT (7.1) (1.1%) Corporate tax (140.1) (135.3) % Net profit (12.0) (2.4%) % Source: Bank s Financial Disclosures, data in MM PLN 3

4 Ratios 3Q Q 2005 VARIANCE Operating Income, MM PLN 1,570 1,745 (10.0%) Gross income, MM PLN (1.1%) Net income, MM PLN (2.4%) Return on Equity 11.2% 10.1% Return on Assets 1.8% 1.8% Cost / Income 66.5% 66.5% Capital Adequacy Ratio * as at Dec 31, % 14.6%* Source: Bank s Financial Disclosures 4

5 Achievements in 3Q 2006 Corporate Banking Transaction services Co-arranger of the biggest syndicated loan in Power Sector; Main arranger of PLN syndicated loan for Polkomtel SA; Arrangement of 5-year Programme of Notes Issuance amounting to PLN for an entity from IT Sector; Over 190 new clients acquired by Commercial Bank 24% increase in the income on foreign payments in 3Q06 / 3Q05 21% increase in number of direct debit transactions in 3Q06 / 3Q05 Trade financing Granting a two-year advance repayment guarantee for the total amount of PLN 111 million for one of the key companies involved in constructing the rail and tram infrastructure in Poland; Granting a repayment guarantee of about PLN 84 million for one of the biggest power plants in Poland; Granting a payment guarantee of about USD 82 million for one of the largest domestic plants processing liquid fuel Awards 1st prize and title of "Best Settlement Bank in "Clearing Survey" prepared by "Global Investor journal in categories of debt settlements; Micro-payments (Mikrowpłaty), investment loans for small and medium enterprises, as well as Comprehensive Cash Services and etrade Citibank Handlowy electronic platform were awarded in the 10 th edition of the Europrodukt 5

6 Achievements in 3Q 2006 Consumer Bank Promotional deposit offer connected with investment products; Enhanced offer of insurance capital funds; 20 subscriptions for structured bonds related to various market variables; Successful sale of cash loan within card limit outstandings amounting to PLN 100 MM; Number of on-line transactions exceeded 80% of all transactions made. Increase trend of Citibank loan portfolio 40% 3Q05 4Q05 1Q06 2Q06 3Q06 CitiFinancial Introduction of special credit offer for freelancers - Cash Loan without salary confirmation; Summer campaign with the motto Pożyczka Gotówkowa na udane lato (Cash Loan for a Happy Summer), supported sales of the cash loan for all purposes; 30% increase in number of branches servicing retail customers Source: Bank s Financial Disclosures 6

7 Payment cards - prestigious and innovative Retail cards Pre-paid cards MM PLN 13% increase up to 637 thousand retail credit cards issued; 32% increase in credit cards outstandings. Credit cards average net receivables 32% Over 200 thousand pre-paid cards issued as at the end of September 2006 Innovative usage pre-paid cards for social aid funds and scholarships. Number of pre-paid cards Business cards 47% 3Q 05 3Q06 14% increase in number of business credit cards issued as at vs Q05 4Q05 1Q06 2Q06 3Q06 Source: Bank s Financial Disclosures 7

8 Balance Sheet structure Assets Liabilities Loans nonfinancial Loans - financial 32,9 9,6 6,5 10% 7% (11%) 36,4 10,3 5,8 32, % (18%) 4% 36, Liabilities in trading portfolio Deposits nonfinancial Deposits - financial Available for sale Trading portfolio Other assets 7,2 69% 12,2 5,9 (22%) 4,6 3,7 3, % Other Liabilities Shareholders capital Increase of non-financial loans due to retail loans increase Significant increase of Available For Sale portfolio as a results of of execution of long-term strategy of balance sheet interest rate risk management Increase in both non-financial and financial deposits Source: Bank s Financial Disclosures, data in MMM PLN 8

9 Loans Non-financial sector loans 26% 74% 31% 69% Corporates Individuals Corporate clients loans Retails loans ,5% 24% Market 9% 2000 Market (excl. mortgage) 17% Source: Estimates, pro-forma data 9

10 Deposits Non-financial sectors deposits 27% 73% 25% 75% Corporates Individuals Non-Financial Corporate deposits Individuals deposits % Market 12% % Market 5% Source: Estimates, pro-forma data 10

11 Investment and Insurance products Mutual Fund assets acquired through the Bank Single Premium Unit Linked Structured Products 24% 81% 57% 3Q 05 3Q06 3Q 05 3Q06 3Q 05 3Q06 19% On-shore funds 81% Off-shore funds Client choice in the best Polish and foreign mutual funds: Best return investment funds Coherent investment management Highly qualified and transparent governance Compliance with Citigroup standards 11

12 Expenses under control ,040-2% 1, % % -7% CitiFinancial GCB CIB -60 3Q05 3Q06 Corporate segment costs under control, decrease of technology and telecommunication costs Positive effects of restructuring actions in retail, even better visible with 12% decrease 3Q06/3Q05 Further branch network expansion in CitiFinancial Source: Bank s Financial Disclosures, data in MM PLN 12

13 Cost of Credit Loans portfolio quality Impairment split as at 30 Sept % Q06 12% Decrease of loans at risk of impairment Not at risk loans At risk of impairment Provisions 74% Provision coverage ratio Portfolio approach 26% Individual Impairment loss % 80% Source: Bank s Financial Disclosures, data pro-forma 13

14 Cumulative 3Q 2006 results Corporate and Investment Bank MM PLN I/(D) I/(D) 3Q06 3Q05 % 1140 Result on activity, MM PLN Results on activity 887 1,110 (223) (20%) 940 One-off events Expenses and depreciation (570) (608) (38) (6%) % 258 Provisions % Gross profit (75) (13%) Assets 32,768 28,750 4,019 14% Liabilities 29,900 25,216 4,684 19% Fee income increase on cash products and custody business along with lack of sold HanZa / TFI commissions (PLN 35 MM in cumulative 3Q 2005) and worse result on brokerage operations; Result on Treasury caused by lower revenues from AFS selloff due to unfavourable market conditions. Additionally, lower revenues on trading portfolio % % 337 3Q05 3Q06 Other operating income Result on financial oper. Fee Result Interest Result Source: Bank s Financial Disclosures, data in MM PLN 14

15 Cumulative 3Q 2006 results Consumer Bank MM PLN I/(D) I (D) 3Q06 3Q05 % Results on activity One-off events Expenses and depreciation (445) (467) (22) (5%) Provisions - (16) 16 n.m. Gross profit % Assets 2,765 2, % Liabilities 6,194 6,230 (36) (1%) Increase of interst result in 3Q 06 vs 2Q 06 due to assets volume growth Increase in fee revenue on investment and insurance products Positive results of restructuring actions, even better visible with 12% decrease 3Q06/3Q % % Q05 Result on activity, MM PLN -8% 315 3Q06 Result on financial oper. Fee Result Interest Result Source: Bank s Financial Disclosures, data in MM PLN 15

16 Cumulative 3Q 2006 results CitiFinancial MM PLN I/(D) I (D) 3Q06 3Q05 % 125 Result on activity, MM PLN 13 Results on activity % % Expenses and depreciation (99) (69) 30 43% Provisions (25) (13) (12) 95% Gross profit 8 (1) 9 n.m. Assets % Liabilities % % 119 Significant increase of cash loans receivables 0 3Q05 3Q06 59% 3Q05 4Q05 1Q06 2Q06 3Q06 Interest Result Fee Result 57% interest result increase and 158% fee results increase due to significantly larger portfolio Further expansion of outlets network 9 branches and 2 points of sale in 3Q 06 Source: Bank s Financial Disclosures, data in MM PLN 16

17 Shareholders structure / Share price Shareholders structure 9.2% 15.8% COIC IFA Other 1.46 pp higher free-float as compared to the end of 2Q pp out of 14.33% BHW shares available for exchange has been converted 75.0% Current total free float 1.6 bln PLN BHW daily stock price and volumes Volume 80 BHW stock price 32% return on BHW shares 1,200 Stock Price (PLN) , Stocks (thousands) 55 0 September/05 October/05 November/05 December/05 January/06 February/06 March/06 April/06 May/06 June/06 July/06 August/06 September/06 October/06 17

18 Investor Relations Sławomir Sikora President of the Management Board Lidia Jabłonowska-Luba Management Board Member, CFO Katarzyna Otko-Dąbrowska Investor Relations citibank handlowy Bank Handlowy w Warszawie S.A. Ul. Senatorska Warszawa Polska Tel. +48 (22) RelacjeInwestorskie@citigroup.com 18

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