Citi Handlowy's positive results reflect a success of implementation of our new strategy. Citi Handlowy reported net income for the second quarter of 2010 of PLN 198.4 million, up by PLN 127 million (178%) versus the second quarter of 2009. In the same time the revenues of Citi Handlowy were up by PLN 62.4 million reaching the level of PLN 689 million. The Bank's effectiveness is growing too. The return on equity rate (ROE) reached 12.8% compared to 6.9% in the second quarter of 2009. The Bank reported significant improvement of cost-income efficiency with the cost/income ratio lowered to 51% from 56% reported a year ago.

One of the many factors driving strong results for Citi Handlowy in the second quarter of 2010 was in particular the fees and commission result higher by 26% (PLN 166.1 million in 2Q 2010 compared to PLN 131.5 million reported in the same quarter of 2009). The other factors include the result from trade finance instruments and valuation increased by nearly PLN 25 million (PLN 99.8 million in 2Q 2010 versus PLN 75 million in 2Q 2009) and the investments in debt securities result which went up by over PLN 20 million (PLN 35.7 million in 2Q 2010 versus PLN 15.4 million reported in 2Q 2009.

In 2Q 2010 Citi Handlowy continued to execute its new strategy where a main focus is placed on delivering high quality products and services as well as on innovations, client-based trust and effectiveness.

As previously announced in May this year, Citi Handlowy is building an investment banking team in Poland which will closely cooperate with Citi Handlowy, the Brokerage House of Bank Handlowy (Dom Maklerski Banku Handlowego S.A.) as well as Citigroup bankers from London. Such decision will strengthen the position of Citi Handlowy in Poland as we only need a good A&M team along with stronger Equity Capital Markets to offer a full range of financial services.

In the first half of this year, the Bank reported a huge interest in its offer of factoring transactions in particular regarding the financing of global consortium suppliers.

With reference to trade services products (letter of credit, collection, guarantee), Citi Handlowy reported the 16% increase in the number of guarantees issued versus the same period in 2009.

In 2Q 2010, the value of the Electronic Postal Money Order transactions jumped by 23%, driven by the 18% increase in the number of the effected orders.

Citi Internet platform, CitFX Puls, attracted a particular attention of non-banking clients. The number of the advanced exchange platform users continues to grow, bolstering the Bank's result from online transactions. In the period from March to June, the record 90% increase in revenues with respect to these transactions was reported, as compared to the same period last year.

In 2Q 2010, as a member of Bank Consortium, Citi Handlowy finalized a leading power plant financing for the total amount of PLN 3 billion. We also conducted the bond issue program for the Capital City of Warsaw for the total amount of PLN 300 million and the issue of another income bonds worth PLN 140 million for a leading public sector company.

In 2Q 2010, Citi Handlowy systematically enhanced its offer for individual clients with a focus on activation of new personal accounts and PayPass cards. The Bank conducted several promotions of the Internet account offering a new "contactless" way to pay - MasterCard® PayPass™ debit card for PLN 0. Additionally, the CitiKonto Direct card users were given a free of charge access to withdrawals from all ATMs in Poland and have access to free of charge domestic transfers effected via the Internet, and those with inflows of at least PLN 1500 are offered a free maintenance of their account. Consequently, as at the end of March, the number of "contactless" cards issued by the Bank reached 50 000.

In 2Q 2010, the Bank expanded its channels of online access to Citi Handlowy. The number of active users of Citibank Online increased by 22% versus the same quarter of 2009, reaching 597 thousand. Also the number of corporate clients using CitiDirect went up by 6.5% to 10.5 thousand.

At the beginning of the quarter, the Bank launched its Citi Mobile services which enable clients to manage their operations on the current and card account through the mobile phone with access to the Internet. As at the end of the first half of 2010, Citi Mobile attracted 7060 users.

As the new strategy assumes, Citi Handlowy stays focused on expanding the network of its touch points and developing unconventional sales channels. The banking stands present in franchise points of Polkomtel, a mobile network operator, can serve as an example, together with banking stands at 5 airports and in the shopping centers where clients can apply for a new credit card. Additionally, beginning in the second quarter of this year, Citi Handlowy clients may discharge their credit card debts through 450 Unikasa points.

In 1Q 2010, the Brokerage House of Bank Handlowy (Dom Maklerski Banku Handlowego S.A.) continued to retain the position of a market leader, acting in 15.2% of secondary market stock trading. In the reported period, it acted as Market Maker in the market of shares with total value of PLN 18.5 billion (the 78.1% increase versus the same period of 2009). The value of stock trading on the WSE grew by 46.7%, as compared to the same period last year.