Citibank Mortgage Loan

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Citibank Mortgage Loan
Press Conference
Praha, September 14, 2005
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Todays Program

• Cooperation of Citibank with Bert Pijls,
  Business Head,Hypotecni banka
  Retail Banking Division, Citibank a.s.
• Mortgages market Jan Sadil, Chairman of the
  Boardand Hypotecni bankas multi-brand
  policy and CEO, Hypotecni banka
• Citibank Mortgage Loan Bert Pijls, Business
  Head,
• 
  Retail Banking
  Division, Citibank a.s.

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• Citibank hit the retail banking market in 2000
• Under its strategy, the bank focuses on the
  following four key areas
• Higher income clients group (CitiGold Wealth
  Management)
• Clients from small and mid-sized companies
  (CitiBusiness)
• Credit Cards
• Consumer loans

In line with its strategy, on Sept 12, Citibank
has enhanced the portfolio of consumer loans by
the inclusion of mortgage loans
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Why mortgage loan?

• Citibank aims to offer to clients a comprehensive
  portfolio of products mortgage loans have been
  missing so far in Citibanks products offering.
• Mortgage loans recorded high demand from the
  clients.
• Mortgage loans market grows rapidly (by 45
  over last two years).
• The markets further growth is expected, even
  though at a lower rate (approx. by 25 a year).

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Why cooperation with Hypotecní banka?

• Cooperation with a well-established institution
  makes it possible to offer new product over a
  very short time span from the moment when
  decision was made to introduce it to the market.
• Citibank has always built on experience.
  Hypotecní banka is one of the biggest and most
  experienced banks in the mortgages market, it has
  well-known brand and received many awards.
• Hypotecní banka is an independent financial
  institution, this fact prevents the occurrence of
  problems with competition-related conflicts.
• Hypotecní banka is a specialized bank that offers
  specialized, customized products which will
  enable to create tailor-made products.

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Form of cooperation between Citibank and
Hypotecní banka

Citibank Mortgage Loan

• co-branded product mortgage sold under
  Citibanks and Hypotecní bankas brands.
• Citibank offers the mortgages, accepts
  applications from clients, participates in
  specification of selected parameters of the
  product and provides marketing and communication
  support.
• Mortgages are completely processed by Hypotecní
  banka, HB provides as follows it finances,
  administers, develops and ensures methodology
  procedures, training and, partially, provides
  sales support.
• The loans are posted in HB balance sheet.

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Todays Program

• Cooperation of Citibank with Bert Pijls,
  Business Head,Hypotecni banka
  Retail Banking Division, Citibank a.s.
• Mortgages market Jan Sadil, Chairman of the
  Boardand Hypotecni bankas multi-brand
  policy and CEO, Hypotecni banka
• Citibank Mortgage Loan Bert Pijls, Business
  Head,
• 
  Retail Banking
  Division, Citibank a.s.

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Mortgages are offered or sold by 15 banks
Provider is HB
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Mortgage market continually grows by tens of
percent a year
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Interest rates are falling
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Multi-brand policy of Hypotecní banka or, selling
under several brands
How mortgages offering in conjunction with
partners in their distribution networks and under
their (or, joint) brands
What mortgages with parameters adjusted to the
character and requirements of the partner (brand)
and its clients
Why there is demand for it and Hypotecní banka
is the most suitable subject a specialist with
flexibility, efficiency and experience
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Mortgages from Hypotecní banka sold already under
3 brands

• specialist
• wide offering scale
• tailor-made mortgages
• individual approach

• universal mortgages
• namely for CSOB clients
• comprehensive package of services

Mortgages supplier
co-brand
v príprave
budoucnost

XY banka

• simple mortgage
• adapted for sale within given banks
  distribution network

XY bank, thrift XY developerXY real estate
agency XY supermarket XY ...

• universal mortgages
• namely for Citibank clients
• reaching out to very affluent clientele

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Reasons for cooperation with Citibank

• World-class brand
• Fulfilment of HBs multi-brand policy
• Another impulse for further growth
• Enlargement of the number of points of sales
• Increased availability of mortgages to clients
• Perspective affluent clientele and its potential
• High quality sales force

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Dnení program

• Cooperation of Citibank with Bert Pijls,
  Business Head,Hypotecni banka
  Retail Banking Division, Citibank a.s.
• Mortgages market Jan Sadil, Chairman of the
  Boardand Hypotecni bankas multi-brand
  policy and CEO, Hypotecni banka
• Citibank Mortgage Loan Bert Pijls, Business
  Head,
• 
  Retail Banking
  Division, Citibank a.s.

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Citibank Mortgage Loan

• Hypotecni banka is the provider of the loan and
  the clients creditor
• Loans parameters stem from the clients most
  frequent needs
• Basic mortgage types
• Real estate
• Purpose-unspecified, so called American (for
  CitiGold clients up to Kc5 million)
• Loan for up to 100 of the real estates price
• Guaranteed interest rates (not individual, but
  the same for everyone per the applicable tariff
  of charges)
• Discount on the interest rate of two tenths of
  one percent (20 basis points) for each Citibank
  client
• Low interest rates (fixed rate from 2,7p.a.
  for Citibanks clients)
• No need to have ones current account opened with
  Citibank
• Loan processing fee is charged only after the
  loan has been approved.

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Citibank Mortgage Loans- Sample

• Loan in the amount of Kc 1.2 million (average
  mortgage amount in the CR), maturity 20 years,
  loan for 70 of the real estates price
  nemovitosti

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Thank you for your attention!