For immediate release
Citigroup Inc (NYSE symbol: C)
December 10th, 2007
Citibank Changes Czech Legal Vehicle to Enhance Local Operation
New Company to Become Side by Side with the Three Largest Financial Groups Operating in
the Czech Market
Prague - After 16 years of successful presence in the Czech market, Citibank a.s. will convert
from a wholly owned subsidiary of Citibank Overseas Investment Corporation based in the USA
into a branch of Citibank Europe plc based in Ireland. This strategic legal step will be effective
from January 1, 2008. From this date the new name of our branch will be Citibank Europe plc,
organizační složka. As a branch of Citibank Europe plc we will have at our disposal consolidated
total equity of EUR 1.6 billion, which ill position us with respect to total capitalization side by side
with the three largest financial groups operating in the Czech market.
The branch conversion is part of a global initiative within Citi to rationalize the legal structure in
many countries where it operates and will result in establishing an enhanced legal vehicle with
European presence.
“We are enhancing the legal vehicle with which clients are dealing, creating a rated entity with a
European presence. As a branch of Citibank Europe plc we will have higher capital and liquidity
at our disposal, which will enable us to better serve our local clients and grow faster and more
effectively in the Czech market,“ said Kenneth Quinn, Citi Country Officer for the Czech
Republic. “Significant advantage consists also in the fact that Citibank Europe plc is in the long
term rated by external rating agency Moody‘s with “Aa1” creditrating, which refers also to all its
branches including us,” added Mr. Quinn.
The change in legal status has already been approved by Irish and Czech regulatory bodies and
will not have any impact with respect to our products and services. All client contracts and
relationships will automatically pass onto the new legal entity pursuant to a legal succession
between Citibank a.s. as the current service provider and the newly established branch. The
account numbers will remain unchanged.
The Czech Branch of Citibank Europe plc will continue to be supervised by the Czech
National Bank according to Czech legislation and in addition primarily by Irish Financial
Regulator, which supervises Citibank Europe plc and its branches. The relationship between
the new legal entity and clients will continue to be governed by the laws of the Czech
Republic.
As required by the European Union rules, deposit protection for physical persons and legal
entities will be primarily governed by the Irish laws. According to the Irish Deposit Protection
Scheme, which follows EU protection requirements and laws, the maximum amount payable to
any depositor is 90 per cent of aggregate deposits held by that depositor subject to a maximum
compensation payment of EUR 20,000. We have decided to participate, on a voluntary basis,
in the Czech Deposit Guarantee scheme on top of our participation in the Irish scheme.
Therefore the deposits made by physical persons will be guaranteed up to EUR 20,000 by Irish
Protection Scheme, with an additional EUR 5,000 guaranteed by the insurance provided by the
Czech Deposit Insurance Fund. Thus the deposit protection for physical persons shall remain
intact to the amount of EUR 25,000. Deposit protection for legal entities is guaranteed by the
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Irish Protection Scheme up to EUR 20,000. Deposits made by large companies as defined by
Irish laws1 are not eligible for cover.
The Czech Branch of Citibank Europe plc will remain a member of Citi, the world’s leading
financial services group and will continue to offer its global products and services to meet the
needs of the clients in the Czech Republic.
Further details and information about the branch conversion and the new legal entity are posted
on the local website at www.citibank.cz
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A company will be treated as large company if meets at least two of the following qualifying conditions: (i) its balance
sheet total for the year exceeds GBP 1.5 million (approx. CZK 57, 5 million; CNB exchange rate as of November 1,
2007), (ii) the amount of its turnover for the year exceeds GBP 3 million (approx. CZK 115 million; CNB exchange rate
as of November 1, 2007) or (iii) the average number of employees by the company in that year exceeds 50.
For more information please contact:
Markéta Dvořáčková
Public Affairs Officer
Tel: 233 031 041
Mobil: +724356358
e-mail: [email protected]
About Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does
business in more than 100 countries, providing consumers, corporations, governments and institutions
with a broad range of financial products and services, including consumer banking and credit, corporate
and investment banking, securities brokerage, and wealth management. Major brand names under the
trademark red arc include: Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional
information may be found at www.citigroup.com or www.citi.com.
Certain statements in this document are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act. These statements are based on management's current expectations and
are subject to uncertainty and changes in circumstances. Actual results may differ materially from those
included in these statements due to a variety of factors. More information about these factors is contained
in Citigroup's filings with the Securities and Exchange Commission.
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