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September 11 Web Archive Collection

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http://www.irasia.com/listco/hk/citickawah/press/p011113.htm

Archived: 11/14/2001 at 22:05:04

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(Hong Kong: 13 November, 2001) CITIC Ka Wah Bank (the 'Bank') today announced the launch of a tax loan product that enables borrowers to enjoy a tax return rebate of up to 15%, a first of its kind in the market.

Ms. Freda Li, Vice President & Head of Retail Marketing of CITIC Ka Wah Bank said, "Building on a customer focused strategy, we have designed an innovative and competitive tax loan product to ease the financial burden of customers in the present economic situation. For customers whose approved loan amount is 150% of their total tax payable or above, we will rebate 15% of the second installment of their tax bill, while customers who are approved to borrow 100% to 149% of their total tax payable will receive a rebate equal to 10% of their second tax bill installment."

The tax return rebate amount can be up to 3.75% of the total tax payable provided that customers make regular repayments on time. The Bank will credit the tax return rebate to customers' accounts directly within the same month of the customer's second tax installment payment due date.

"Our tax loan product is designed to help our customers better prepare for the coming tax and festive spending season. In addition to the rebate, our customers are entitled to a preferential rate as low as 0.17% per month flat," Ms. Li added.

To provide additional financial flexibility to the borrowers, the maximum loan size for selected customers can be up to 200% of the tax payable, or 4 times of monthly salary, or HK$500,000, whichever is lower. Furthermore, the loan proceeds, which will be directly credited to the borrower's account, are entirely at the borrower's own disposal according to his/her personal needs.

"The launch of this tax loan product is in line with our wealth management concept, enabling us to broaden our base of quality customers for the cross-selling of other wealth management services. We anticipate achieving 2% of the market share in the tax loan market," Ms. Li concluded.

CITIC Ka Wah Bank Limited
CITIC Ka Wah Bank Limited has been operating in Hong Kong for over 70 years. Publicly listed on the Stock Exchange of Hong Kong, it is backed by the vast resources of China International Trust and Investment Corporation ('CITIC'). The Bank's vision is to be a reputable provider of financial services in the hearts of the customers. At 30 June 2001, the unadjusted capital adequacy ratio, the loans to deposits ratio and the average liquidity ratio of the Bank were at 15.12%, 65.97% and 52.21% respectively. These figures are solid proof for the Bank's strong financial position.

Tax Return Rebate:

Approved Loan Amount	*Rebate % of 2^nd Installment^ of Tax Bill**
150% of total tax bill or above	15%
100% - 149% of total tax bill	10%
<100% of total tax bill	5%

* 2^nd installment is normally up to 25% of total tax bill

Loan Amount (HK$)	Interest Rate Flat Per Month	Monthly Repayment Amount (HK$) - Per HK$1,000 Loan Amount (Annualized Percentage Rate^**)		Tax Return Rebate Amount^** (HK$)
Loan Amount (HK$)	Interest Rate Flat Per Month	12 Months	18 Months	Tax Return Rebate Amount^** (HK$)
8,000 - 19,999	0.52%	90.30 (12.30%)	62.58 (13.84%)	150 - 374
20,000 - 49,999	0.29%	87.96 (6.86%)	60.21 (8.26%)	375 - 937
50,000 - 149,999	0.27%	87.75 (6.39%)	60.00 (7.78%)	938 - 2,812
150,000 - 399,999	0.25%	87.55 (5.93%)	59.80 (7.30%)	2,813 - 7,499
400,000 or above	0.17%	86.73 (4.08%)	58.97 (5.40%)	7,500 or above

** The Annualized Percentage Rate (APR) is inclusive of the tax return rebate benefit and non-refundable handling fee of 2% p.a. The calculation of the APR and tax return rebate amount are based on an approved loan amount of 200% of tax bill and a second installment which is 25% of the total tax bill.


Loan Amount:	Selected customers^#: 200% of tax payable or 4 times of monthly gross salary or HK$500,000, whichever is lower General customers: 200% of tax payable or 3 times of monthly gross salary or HK$300,000, whichever is lower Minimum: HK$8,000 #Selected customers: civil servants, professionals (medical doctors; solicitors/barristers; certified public accountants/ chartered accountants; architects; registered pharmacists and chartered engineers), property owners and the Bank's payroll account customers.

Loan Repayment Period:	At borrower's choice of 12 and 18 months.

Fast Approval:	Instant approval indication simply by calling the 24-hour, 7 days a week Application Hotline: 228 767 88. Formal approval within 24 hours after submission of full set of supporting documents. Loan proceeds will be credited directly to the borrower's account within the fourth business day after formal approval.

Easy Application:	Application can be made by calling the Bank's 24-hour, 7 days a week Application Hotline 228 767 88, by fax, by mail, or by visiting one of CITIC Ka Wah Bank's branches.

a) Age:
66% of personal tax loan users are in the 25-44 age bracket, of which 47% are aged between 25-34 years.

c) Occupation:
Personal tax loan users are engaged in various occupations. The three largest categories are office skilled workers (39%), professionals/managers/executives (20%) and factory/shop skilled workers (15%).

d) Personal Income:
73% of personal tax loan users have a monthly income of HK$10,000 - HK$30,000.

More information about CITIC Ka Wah Bank can be found at www.citickawahbank.com.


For press inquiries, please contact:
Betty Chan Vice President & Head of Corporate Communications Tel: 2909 6371 Fax: 2136 0612 Email: bettyphchan@citickawahbank.com	Kwok Pui King Senior Manager Corporate Communications Tel: 2909 6370 Fax: 2136 0612 Email: puiking@citickawahbank.com