Credito Artigiano approves quarterly report as of September 30, 2003

Milan, Nov 4, 2003 - In a meeting held today in Milan, the Board of Directors of Credito Artigiano - Credito Valtellinese Group - has approved the quarterly report for the period ended September 30, 2003, which recorded further increases in all balance-sheet aggregates, as well as in the main economic indicators, perfectly in line with the expected results.

As of September 30, 2003, direct deposits stood at € 3,184 million, compared with € 2,797 million end of December, 2002 (+ 13.8%). Indirect deposits stood at € 3,861 million, compared with € 3,556 million recorded at the end of the previous year (+8.6%). Assets held for administration, including insurance deposits, stood at € 1,790 million, compared with € 1,578 million end of 2002 (+13.5%). Sums receivable from customers were up 1.7%: € 2,546 million compared with € 2,503 million end of 2002.

Despite a further contraction of the spread between the borrowing and lending rates, the interest margin saw an increase by 3.6% recording an amount of € 63.2 million, compared with € 61 million at December, 2002. Proceeds from services - consisting of net commissions and other proceeds - were up 30.3%, from € 38.6 million to € 50.3 million. The heading net proceeds, which stood at € 23.1 million compared with € 12.2 million at December 2002, also included proceeds pertinent to leasing activities started in the second half of last year for € 10.4 million.

Commissions pertinent to lending facilities and payment systems, as well as profits from financial operations have seen strong increases over the period ended September 30, 2003

In particular, profits from financial operations stood at € 3.1 million, thereby increasing the intermediation margin from € 102.7 million (September, 2002) to € 119.5 million at September, 2003.

Administrative expenses were up 8.2%: € 74.2 million compared with € 68.6 million at December 2002. Value adjustments in respect of tangible and intangible fixed assets recorded an increase from € 6.8 million to € 16.6 million, mainly due to amortizations linked to leasing activities for € 9.4 million.

The gross operating income stood at € 28.7 million compared with € 27.3 million at December, 2002 (+%.1%). After entering value adjustments and provisions for covering risks and charges over the period (€ 7.5 million), ordinary profits amounted to € 21.2 million, compared with € 20.7 million for the same period of 2002 (+2.5%).

Net profits for the period ended September 30, 2003 amounted to € 11.5 million, basically in line with the results recorded for the same period of 2002.