Banca dell'Artigianato e dell'Industria Spa: results as at June 30 2002

The Board of Directors of the BAI (Banca dell'Artigianato e dell'Industria, a Credito Valtellinese banking Group member bank) has approved the half-yearly report on operations for the first half of the current year.

As at June 30 2002, the main balance-sheet aggregates have confirmed the positive trend recorded since January. In particular, direct deposits stood around € 60.8 million, with an increase by over 75% compared with the same period of last year (€ 34.7 million). The increase in direct deposits is also linked to a further development of the BAI branch network.

Indirect deposits totalled about € 33.5 million, compared with € 35.56 million as at December 31 2001. The drop in indirect deposits is partly due to a downward phase for the security market.

Following the conversion of the second tranche of a subordinated bond issue cum warrant 2000-2005, the capital stock has increased from € 20.35 million to € 25.18 million (+ 23%), while the company's liabilities stood at € 9 million, compared with € 12 million for the same period of 2001 (-25%).

As far as investments are concerned, end of June 2002, sums due from customers amounted to € 74.18 million, increasing by over 50% compared with June 30 2001 (€ 49.31 million) and by nearly 15% compared with December 31 2001.

The increase in assets under management has led to positive results also as regards the company's profit and loss account. In fact, as at June 30 2002, the interest margin stood at € 1.4 million, compared with € 1.19 million recorded for the same period of last year (+17%).

Also the intermediation margin has considerably improved its performance: + 34.41%, currently standing at € 1.95 million compared with € 1.45 million as at June 30 2001.

Despite an increase in the company's administrative expenses, which totalled € 1.69 million increasing by nearly 30% compared with € 1.3 million end of June 2001, the gross operating income stood at +28,000 euros, while it had recorded - 53,000 euros for the same period of the previous year.

After entering provisions (+87%) for risks associated with the disbursement of credit, as well as with other banking activities, and taxes, profits for the period recorded -599,000 euros.