Credito Artigiano confirms quarterly report on operations as at March 31 2002

Milan, May 2 2002 - In a meeting that was held today, the Board of Directors of Credito Artigiano S.p.A. has confirmed the quarterly report on operations as at March 31 2002. This year, in addition to the Banca dell'Artigianato e dell'Industria, the quarterly report also includes the results of two other companies, which were acquired in 2001: the Banca Regionale Sant'Angelo and Leasingroup Sicilia. Both are based in Sicily and controlled by Credito Artigiano.

As far as the performance of the Credito Artigiano is concerned, as at March 31 2002, the results basically confirmed the positive trend of the past few years. Details of the main balance-sheet aggregates are as follows. Direct deposits: € 2,498 million (+6.7% with respect to last year). Indirect deposits: € 3.594 million (+4.4%). In particular, assets held for administration and insurance deposits represent 42.7 percent of the overall aggregate (+14.1%). Credits to customers: € 2.071 million (+ 15.7 percent with respect to March 31 2001, though with a slight decrease if compared with December 31 2001.

Following the conversion of the second tranche of a bond issue that Credito Artigiano launched on the occasion of its official listing on the Milan Stock Exchange, net assets have increased by € 24.2 million. As at March 31 2002, net assets - including also net profits for 2001 (€ 14.6 million) - amounted to € 293 million.

As regards the profit and loss account, the performance of the main indicators is basically in accordance with forecasts aimed at attaining the same results as for the previous year. Although a downward phase has affected the spreads between lending rates and borrowing rates, which has led to a less performing trend of the overall aggregate, the interest margin has increased by 2.6 percent with respect to the first quarter of 2001: € 20.5 million compared with € 20 million as at March 31 2001. Also net proceeds from services have increased from € 12.2 million as at March 31 2001 to € 12.4 million for the first quarter of 2002.

The intermediation margin stood at € 32.3 million, with no relevant change with respect to the previous year.

The gross operating income stood at € 8 million, compared with 8.4 million as at March 31 2001 (- 4.8%). Net profits for the period stood at € 3.8 million, compared with € 3.6 million for the previous year (+4.2%).

As far as the consolidated results are concerned, details of the balance-sheet aggregates are as follows. Direct deposits: € 3,355 million (+1.6%). Indirect deposits: € 3.966 million (+2.6%). Credits to the clientele: € 2.759 million (- 2.5 percent with respect to December 31 2001).

As regards the consolidated profit and loss account, details for the first quarter of last year are not available for all the controlled companies, as the Regionale Sant'Angelo and Leasingroup Sicilia were acquired after March 2001. The main indicators are as follows. Interest margin: € 30.5 million, compared with € 20.6 million for the first quarter of 2001. Intermediation margin: € 47.1 million, compared with € 33.7 million as at March 31 2001 (+40%). Operating expenses: € 34,3 million (+52.3%). Value adjustments in respect of tangible and intangible fixed assets, including the amortization paid for the customs of the acquired companies: € 5.8 million (+135.6%, with respect to March 2001). Operating income: € 7 million (-19.7%). After entering adjustments in respect of credits and provisions for tax burden, net profits for the period stood at € 1.3 million, compared with € 3.8 million for the previous year.

During the first quarter of 2002, the bank has been involved in activities aimed at the reorganization of the Group's network in Sicily. The Boards of Directors of the Banca Regionale Sant'Angelo, Leasingroup Sicilia and Banca Popolare Santa Venera, in fact, have confirmed the merger of the Banca Popolare Santa Venera and Leasingroup Sicilia into the Banca Regionale Sant'Angelo to form a single member bank based in the island. The plan for the merger will be submitted to Extraordinary Meetings of the shareholders to be held in May 2002. The new bank, which will be called the Credito Siciliano, will dispose of branch network including also the Cassa San Giacomo outlets. Greater in size, more competitive, benefiting from synergies and scale economies, the Credito Siciliano is nevertheless operating in accordance with the principles that have always inspired the business tradition of the merging companies.