Confirmed Quarterly Operating Report

Sondrio, November 12, 2002 - The Board of Directors of the Credito Valtellinese, parent bank of the banking Group with the same name, has examined and confirmed the consolidated results for the quarterly period ended September 30, 2002.

Below are details of the consolidated balance sheet, which recorded considerable increases in the main aggregates with respect to December 2001.
As at September 30 2002, in fact, direct deposits stood at € 7,541 million (+ 6.9%), indirect deposits at € 8,212 million (+ 6%). As a result, deposits amounted in all to € 15,753 million (+ 6.4%). Sums receivable from customers stood at € 6,283 million (+7.8% compared with 5,830 million euros recorded end of December 2001) . The reliability of our clientele is substantially the same as at June 30 2002.

As regards the consolidated profit and loss account the quarterly period ended September 30, 2002, despite a progressive reduction of the lending rate-borrowing rate spreads, the interest margin recorded an increase by 1.3 percent compared with the same period of 2001. The interest margin for the period January 1 - September 30, 2002 recorded € 186.4 million (+ 12.2 percent compared with the same period of 2001).
Proceeds from services, consisting of net commissions and other proceeds, stood at € 47.4 million for the quarterly period ended September 30, 2002 (+29.9%). Proceeds from services for the period January 1 - September 30, 2002 stood at € 125.1 million, with an increase by 24.7 percent compared with the same period of 2001. Such increases were mainly the result of strong increases in banking commissions. The heading profit on financial transactions recorded € 5.1 million for the period June 30 - September 30, 2002.
The intermediation margin recorded € 115.6 million for the period June 30 - September 30, 2002 (+16.9%) and € 324.2 million for the period January 1 - September 30, 2002 (+19.9%)
Operating costs were as follows: € 78.7 million for the quarterly period ended September 30, 2002, compared with € 69 million for the same period of 2001.
Value adjustments in respect of tangible an intangible fixed assets recorded € 11.6 million for the period June 30 - September 30, 2002 (+ 18.6%) and € 33.5 million for the period January 1 - September 30, 2002. After entering costs and value adjustments, the operating income totalled € 25.3 million (+25.9%) for the quarterly period ending September 30, 2002 and € 68.9 million for the period January 1 - September 30, 2002 (compared with € 56.6 million for the same period of 2001, with an increase by 21.9 percent).
After entering value adjustments in respect of credits, provisions for covering risks and charges and adjustments in respect of financial fixed assets for € 5 million, ordinary profits for the quarterly period stood at € 20.3 million, compared with € 13.4 million for the same period of 2001 (+52.2%). Ordinary profits for the period January 1 - September 30, 2002 recorded € 49.2 million (+ 29.1% compared with September 30 2001).
Profits for the quarterly period ended September 30, 2002 recorded € 3.5 million, compared with € 7.4 million for the same period of 2001. Profits for the period January 1 - September 30, 2002 recorded € 9.5 million (- 25.9 %, as a consequence of diminished extraordinary profits: - 17 million euros)

During the quarterly period ended September 30, 2002, the Group has been completing the second stage of the Sicily plan entrusting Cassa San Giacomo, which has acquired non-performing loans for about € 140 million from the Credito Siciliano, with a new corporate mission.
As regards Internet banking, at present the number of banc@perta users is over 14,000 (+7.7%)

Balance Sheet Of The Parent Bank Credito Valtellinese

As at September 30, 2002, details of the main balance-sheet aggregates were as follows: direct deposits at € 2,899 million (+5.7% compared with € 2,742 million end of December 2001); indirect deposits at € 3,182 million (-3.4%). As a result, the customers' deposits with the parent bank amounted in all to € 6,081 million.
End of September 2002, sums receivable from customers recorded an increase by 12.5 percent: € 2,298 million compared with € 2,044 million end of December 2001.
Details of the profit and loss account for the period January 1 - September 30, 2002, were as follows: interest margin at € 54.1 million (+5.5%); intermediation margin at € 180.6 million, compared with € 145.3 million for the same period of 2001 (+24.3%), operating costs at € 72.8 million. The operating income recorded € 51.7 million, compared with € 38.1 million for the same period of 2001 (+35.6%).
After entering value adjustments in respect of credits, extraordinary incomes and taxes, profits for the period stood at € 22.6 million (+ 24.8%).