Credito Artigiano approves half-yearly results as of June 30, 2004

Growth of all balance-sheet aggregates

• direct deposits: up 9.2% over last year, up 6% over December 2003
• indirect deposits: up 5.8% over last year, up 3.9% over December 2003
• investments: up 17% over last year, up 9.6% over December 2003

Significant increases in the main economic indicators

• Operating margin: up 10% over first half 2003
• Ordinary profit: up 16.1% over first half 2003
• Profit for the period: up 13.3% over first half 2003

Milan, September 3, 2004 - At today's meeting, chaired by Mr Angelo Palma, the Board of Directors of Credito Artigiano has approved the half-yearly report on operations as at June 30, 2004. During the first half of the current year, in line with growth targets , the bank has continued to show positive performances in any branch of business recording strong increases in all balance-sheet aggregates as well as in the main economic indicators.

As of June 30, 2004, Direct deposits stood at € 3,513 million, up 9.2 percent over June 2003 and 6 percent over December 2003. Indirect deposits rose to € 3,966 million, (+ 5.8% over June 2003; + 3.9% over December 2003). Deposits held for management, including insurance deposits, amounted to € 1,854 million, posting a growth of 6.3 percent over the same period last year, of 5 percent over December 2003. Total deposits stood at € 7,479 million, recording a 7.4% increase compared with June 2003 (€ 6,966 million) and a 4.9% increase over December 2003.

Credits to the customers stood at € 3,095 million, up over 17 percent on the same period last year and 9.7 percent on December 2003. Particularly, medium- and long-term credits (€ 878 million) posted a 21.4 percent increase over last year. The ratio between unpaid bills and investments stood at 0.55%, compared with 0.34% as at December 31, 2003.

Also figures in the profit and loss account showed the very positive results achieved throughout the period January-June 2004. The interest margin rose to € 46.1 million, posting a growth of 8.3 percent over June 2003 thanks to a steady and balanced development of assets under management as opposed to a progressive contraction of the spreads. Net Banking commissions rose significantly as well, by 22.3 percent, to € 24.2 million.

The operating margin stood at € 75.6 million (+ 10%).

Operating costs (€ 50.3 million) were up 2 percent over last year, while the gross operating income (€ 25.3 million) was up 30.3 percent over June 2003 (€ 19.4 million). After taking account of a significant provision for covering risks associated with banking, the Ordinary profit amounted to € 15.7 million (+ 16.1%). Taking account of cash flow related to extraordinary activities for € 0.6 million and of a provision for covering liabilities associated with taxation for € 7.3 million, the Net profit for the period January-June 2004 stood at € 9 million, posting a 13.3% increase over June 2003.

Summarised, reclassified balance sheet and profit and loss account of Credito Artigiano (both are currently being audited).