Citigroup Pakistan Winner in Global Finance Magazine's 2006 Awards for "World's Best Internet Banks"

Sep 18 - 24, 2006

Citigroup announced that it has won Global Finance magazine's 2006 Awards for "World's Best Consumer Internet Bank" and "World's Best Corporate/Institutional Internet Bank" in Pakistan. Citigroup was also the winner of Best Online Consumer Credit Site Award, Best Online Cash Management Site Award and Best Investment Management Services Award across Asia.

Global Finance is a reputable finance magazine with a circulation in over 158 countries. The magazine covers a wide spectrum of subjects including corporate financing, capital markets, monetary policies, banking operations and risk management.

The criteria for the Best Internet Bank award categories included strength of strategy for attracting and servicing online customers, success in getting clients to use web offerings, growth of online customers, breadth of product offerings, evidence of tangible benefits gained from internet initiatives and web site design and functionality.

Mr. Robert Law, Pakistan, Middle East and Africa Division Executive for Citibank said: "For the second year in a row, Citibank wins Global Finance's World's Best Consumer Bank Award, a clear recognition of our Internet banking platform here in Pakistan. Receiving awards from respected industry observers gives us great pleasure and motivates us to keep working to deliver to consumers the best proposition in the market, including most convenient and secure online services that help them better manage their financial lives."

Mr. Zubyr Soomro, Citigroup's Country Corporate Officer, added: "These awards are a clear recognition of our service and a vote of confidence by clients and industry experts. We believe that Citibank Online and CitiDirect are unrivalled in providing banking functionality while ensuring that the system is as user-friendly as possible. We are also committed to providing the highest quality of service and a wide array of corporate and consumer products to our customers."

Citigroup has been at the forefront of developing Internet-based delivery capabilities for both retail customers (Citibank Online) and corporate clients (CitiDirect) in Pakistan, in addition to other B2B e-commerce initiatives that provide clients with full procurement solutions. By using Citibank Online, customers can perform a variety of regular banking transactions, such as checking balances or downloading account activity statements. Moreover, customers can transfer funds worldwide, pay utility bills, redeem reward points, order cheque books or subscribe to a number of value added services, round-the-clock and, anywhere in the world.

BANK ALFALAH EXCELS IN LUCRATIVE CONSUMER BANKING

Bank Alfalah continues to enhance its penetration in the lucrative consumer-banking arena. The bank's key balance sheet items have portrayed a steady growth. During the period ended June 2006, advances have depicted 8% growth to Rs128billion compared to Rs119billion at the end of December 2005. Investments also portrayed steady 42% upsurge to Rs81bn. Deposits, on the other hand, amounted to Rs207bn, 7% lower compared to approx. Rs222bn at the end of 2005.

After tax profit of the bank during 1H/FY06 depicted 4% decline to Rs813m compared to Rs847m during the same period last year. This translated into an EPS at Rs2.03 as against Rs2.12 previously. However, on QoQ basis, the bank's profitability increased significantly by 10% to Rs426m (EPS: Rs1.07) compared to Rs387m (EPS: Rs0.97) during the first quarter of the prevailing fiscal.

During Jan Jun 2006 period, net-interest income after provision posted relatively lower growth at 9% to Rs2, 346million mainly due to 79% hike in provisions against non-performing loans and advances to Rs299m. Non-mark up expenses also increased by 54% to Rs2, 769million compared to the same period last year. On the other hand, non mark-up income of the bank surged by 66% to Rs1,545million primarily on the back of 70% hike in fee, commission and brokerage income to Rs796m followed by another 70% increase in income from dealing in foreign currencies. Furthermore, effective tax rate of the bank declined by 6pps to 28%, thereby contributing favorably to the bottom-line.

16% HIKE IN CORE EARNINGS

Bank Alfalah's interest income during Jan Jun 2006 increased by 117% to Rs10, 061million as against Rs4, and 631million during the corresponding period last year. However, 223% exceptional hike in interest expense restricted the growth in core earnings. Net interest income of the bank increased by 16% to Rs2, 743million compared to Rs2, 363million during the same period last year.

PRIME BANK

TENOR

RATE

PROFIT PER YEAR (RS.)

PROFIT PER MONTH (RS.)

W.H.T. @ 10% ON PROFIT (RS.)

NET PROFIT PER MONTH (RS.)

PROFIT TILL MATURITY

6 Months

8.00%

20,000

1,666.67

166.67

1,500.00

9,000

1 Year

9.00%

22,500

1,875.00

187.5

1,687.50

20,250

2 Years

9.75%

24,375

2,031.25

203.13

1,828.13

43,875

3 Years

10.25%

25,625

2,135.42

213.54

1,921.88

69,188

5 Years

11.50%

28,750

2,395.83

239.58

2,156.25

129,375

Proposed minimum balance Rs.250,000/-
In addition to the high rate of returns there are sone unique and unparalled products being offered with scheme such as:
Free Life Insurance
Rent Free Lockers
Free ATM Card
Free 1st Cheque Book
Free Online Banking
Pre approved Loan facility up to 90% of the deposited amount.