Confidential0 The Citigroup Consumer Group and Residential Real Estate Finance Jeff Jaffee March 16, 2006

Confidential1 Corporate and Investment Banking (CIB) Serves Fortune 500 companies In over 100 Countries Global Wealth Management Smith Barney and the Citigroup Private Bank Global Consumer Group (GCG) In 65 Countries Serves individual consumers and small businesses Major brands include: Citigroup Consists of Three Major Businesses

Confidential2  Citibank has a long history of providing financing in the developing world.  In 1902, a predecessor company, IBC, opened offices in Manila, Singapore, Yokahoma, Hong Kong and Calcutta with the strategy of helping American importers and exporters.  In 1904, IBC opened offices in Panama and became the lead bank in the construction of the Panama Canal.  In 1914, IBC opened an office in Buenos Aires, Argentina.  In 1915, First National City Bank (Citibank) purchased IBC and dramatically expanded overseas operations. Historically the CIB Was the Pioneer Providing banking services to our overseas multinational clients is a core business for Citibank

Confidential3  Having a consumer offering expands the services that we can provide to our corporate customers’ employees and clients.  The corporate bankers have a good understanding of the economic, legal and regulatory environment in the country and serve as eyes and ears.  The first consumer products are generally lending products.  Traditionally we have led with credit cards and personal loans.  As homeownership rates increase, and the middle class continues to emerge, we have developed a need to provide real estate secured lending products to our customers. As Markets Develop, Citigroup Expands The corporate bankers often encourage the consumer group to enter their countries

Confidential4  Our largest business is in Germany where we have had a presence since We have 3 million customers, but we have been out of the mortgage business for several years.  Our fastest growing is Russia where we opened our first branch in 2002 and now have 37.  We have three businesses that offer mortgages in EMEA:  Future Mortgage –Wholesale mortgage lender serving brokers in the United Kingdom.  Citifinancial Espana – Wholesale mortgage lender serving brokers in Spain has recently introduced a consumer direct program.  Citibank Greece – Lends primarily to existing Citibank customers.  The opportunity is huge. Home ownership rates above 90% in many of the Eastern European countries with mortgage/GDP ratios in the single digits. GCG in EMEA We have Citibank or Citifinancial branches in 24 countries

Confidential5 Citibank’s best customers are lured away by attractive mortgage rates and take their current accounts with them as a condition of the loan CitiFinancial and Citibank’s best customers have their personal instalment loans refinanced as part of debt consolidation programs, so the remaining portfolio performs below peers Citibank’s balance sheet is significantly skewed from competitors because we have so few real estate loans; this imbalance affects our cost of funds in the market Mortgage A retail bank or consumer finance business without a real estate secured product is seriously disadvantaged versus its competition We need a real estate secured loan product both for defense and for offense.

Confidential6 One credit policy for multiple countries. Currently policy by country causes redundancy in product design and increases system costs. Offer products in local currency. Although Swiss Franc or U.S. Dollar loans are popular, we are concerned about borrowers taking un currency risk. Loans for home purchase, refinance and for access to home equity. Develop products that improve stickiness of bank and consumer finance customers. Our Plan To build a centralized mortgage origination capability serving multiple countries across EMEA and beyond

Confidential7 IFC provides liquidity in local currency in many markets. IFC has experience in markets from a lending, investing and policy perspective. We hope to work with IFC to develop secondary markets in additional countries as we grow our volume. IFC may provide technical assistance as we move to additional countries within and beyond EMEA. Our Partnership with IFC In order to grow in multiple markets at a fast pace, we have partnered with IFC to help ramp up our lending businesses

Confidential8 Questions? Jeff Jaffee +44(0)