Credito Artigiano: Approval of half-yearly statement as at 30/06/2005

(in thousands of euros)	30.6.2005	30.6.2004	var.
Net profit for the period	12,097	9,004	+34.4%
Interest margin	51,852	46,128	+12.4%
Brokerage margin	86,319	75,343	+14.6%
Gross operating profit	32,113	25,269	+27.1%
Gross profit on ordinary operations	22,184	15,678	+41.5%

(in millions of euros)	30.6.2005	31.12.2004	var.	30.6.2004	var.
Direct deposits	3,811	3,610	+5.6%	3,513	+8.5%
Indirect deposits	4,392	4,128	+6.4%	3,966	+10.7%
Total deposits	8,203	7,738	+6%	7,479	+9.7%
Loans	3,410	3,069	+11.1%	3,095	+10.2%

Milan, 6 September 2005 - The Board of Directors of Credito Artigiano met today, chaired by Angelo Palma, to examine and approve the management report for the first half of 2005, which was marked by continued balanced growth in combined assets, accompanied by sizeable growth in the primary economic indicators, in keeping with objectives.

The interest margin stood at 51.9 million euros, showing a 12.4% increase compared to 30 June 2004, primarily due to the growth in brokerage volume in a market context characterised by continued narrowing of spreads. Among income from services, there was positive development in net commissions, which rose from 24.2 million euros to 27.6 million euros, a 14% improvement. The brokerage margin came in at 86.3 million euros, a 14.6% increase compared to the first half of 2004..

Administrative expenses totalled 49,5 million euros, a 9.2% increase compared to the figure of 45.3 million euros in the first half of the previous year. Specifically, personnel costs showed a 7.8% increase, rising from 22.2 to 23.9 million euros, and other administrative costs grew by 10.6%, from 23.1 to 25.6 million euros. Adjustments to tangible and intangible assets amounted to 4.7 million euros, a figure almost unchanged from the previous period. Operating costs, which amounted to 54.2 million euros overall, as compared to 50.3 million in the first half of 2004 (+ 8.3%) resulted in a gross operating profit of 32.1 million euros, showing a 27% increase for the year.

Adjustments to receivables and provisions for risks and charges - essentially for passive suits and bankruptcy revocation - totalled 10.1 million euros (+ 5.8%, compared to 9.6 million in the first half of 2004) and resulted in a profit on ordinary operations of 22.1 million euros, up 41.5% for the year.

Taking into account taxes for the period - estimated at 10 million euros - the net profit for the period comes to 12.1 million euros, a 34.4% increase compared to the figure of 9 million for the first half of 2004.

As at 30 June 2005, overall deposits came in at 8,203 million euros, showing growth of 6% compared to the figure of 7,479 million as at 31/12/2004, a percentage that reaches 9.7% when compared to the 7479 million of the first half of 2004. Direct deposits stood at 3,811 million euros, a 5.6% increase from December 2004, and 8.5% compared to the figure of 3,513 million for the first half of 2004. Indirect deposits reached 4,392 euros, showing growth of 6.4% from December and 10.7% for the year. The component representing managed assets accounted for 2,027 million euros, showing a 7.2% increase, compared to 1891 million at the end of 2004, or 9.3% when compared to 1,854 million in the first half of 2004.

Loans to customers stood at 3,410 million euros, up 11% from December 2004 and 10.2% from a year ago. There is a stronger trend in the medium to long-term component, which reached 1114 million euros, as compared with 1000 million as at 31/12/2005, rising 11.4%, a percentage which reaches 26.9% when compared to 878 million in June last year.

Net assets - including the profit for the period - came in at 365.7 million euros. The variations from December 2004 are the result of the conversion of the final tranche of the subordinated convertible bond issued at the time of stock market listing, the allocation of profits for the year, and the reduction of revaluation reserves by an amount equal to the alternate tax related to the release of these reserves, pursuant to the 2005 Finance Law, 311/2004.

Transition to the new international accounting standards, IAS/IFRS

In compliance with the provisions of the Legislative Decree implementing EU Regulation no. 1606/2002, regarding the application of the primary international accounting standards, Credito Artigiano - as it is not required to prepare a consolidated financial statement - will file its individual financial statement drafted in accordance with IAS/IFRS starting in the 2006 financial year. Adjustment to the new regulations has involved a demanding process of implementing new operating procedures and reviewing existing ones, starting in 2004. For this financial year, priority measures are focused on preparation of consolidated accounts by the parent company Credito Valtellinese, and have been concluded as regards the period of initial application, regarding figures as at 1 January 2004 and 1 January 2005 (limited to IAS 32 and 39) as well as results for the first half of 2005.

Foreseeable evolution of operations

Despite a general context which appears increasingly uncertain as regards prospects for economic growth, the trend in operations, as the bank begins the second half of the year, allows one to project that equity objectives will be achieved and economic results will continue to grow, with regard to the dynamics seen in recent years.

Reclassified Balance Sheet and Income Statement attached.