Credito Artigiano: gross profit for the period increases by 53%
Considerable growth of the Internet activity

Milan, July 25 2000 - Credito Artigiano Board of Directors examined and confirmed the quarterly report on operations during the second quarter of 2000.

The gross operating income, thanks to a better performance of profits in comparison with costs, attains L. 32 billion, showing a 76% annual increase. Profit from ordinary activity - after value adjustments and provisions, which approximately amounted to L. 13 billion - totals L. 19 billion with an increase by more than 53% in comparison with June 1999.

Net profit for the period, net of gains taxes, totals about L. 11 billion, increasing by 20% in comparison with June 30 1999.

The main aggregates continue to show positive performances: direct deposits total L. 3,807 billion increasing by 7.2% in comparison with June 99. Indirect deposits total L. 6,514 billion increasing by 12% in comparison with last year.

Asset management portfolios total 38.4% in the overall indirect deposits, amounting in all to L. 2,503 billion with an increase by 13.3% in comparison with 1999. Credits to customers total more than L. 3,000 billion with an increase by 30% in comparison with June 1999.

Credito Artigiano also confirmed the positive performance of its volume of business. The interest margin total L. 68 billion in the second quarter of 2000 with a 9% annual increase.

The intermediation margin - thanks in particular to net commissions, which total L. 37 billion with an increase by 26% in comparison with June 1999 - increases by 17%, totalling L. 122 billion.

During the second quarter of 2000 Credito Artigiano further extended its branch network with the opening of two more branch offices. The bank also increased its Internet activity offering a wider range of services on-line to the clientele. Today, more than 17,000 customers - of which 10,000 since January 2000 - are benefiting from the innovative Internet technologies.