Approval of consolidated quarterly report as at 31.3.2005

(Figures shown in €/000)	1st quarter 2005	1st quarter 2004	var.
Net profit for the quarter	8.391	5.893	+42,39%
Interest margin	71.051	65.039	+9,24%
Brokerage margin	126.588	115.401	+9,69%
Gross operating profit	34.975	29.255	+19,55%
Profit or loss on ordinary operations	25.725	21.238	+21,13%

(Figures shown in €/000)	31.3.2005	31.12.2004	var.
Direct deposits	9,923,126	9,656,006	+2.77%
Indirect deposits	10,776,127	10,455,668	+3.06%
Overall deposits	20,699,253	20,111,674	+2.92%
Loans	8,702,060	8,240,218	+5.60%

Sondrio, 10 March 2005 - The Board of Directors of Credito Valtellinese, the parent company in the banking group of the same name, today examined and approved the consolidated quarterly report as at 31 March, which shows a positive trend in the primarily combined equity and income, in keeping with the budget targets that have been set.

ECONOMIC TREND OF OPERATIONS

Analysis of the data on the income statement shows that the interest margin for the first quarter of 2005 amounts to 71.1 million euros, up 9.2% compared to the figure of 65 million euros achieved in the corresponding period of the previous year. The margin for services, made up of net commissions and other net revenue, stands at 47.9 million euros for the first three months of the year, an 8.3% increase over the 44.2 million euros for the same period in 2004. Specifically, net commissions came in at 45.1 million euros (9.8%), whereas other net revenues amount to 2.8 million euros. The brokerage margin, which is the total of the interest margin and margin from services, company assets assessed as net equity, dividends (amounting to 2.4 million euros for the first three months of this financial year), and net proceeds from financial transactions, stands at 126.6 million euros, showing a 9.7% increase compared to the first quarter of 2004. Operating costs, made up of net administrative expenses and adjustments to tangible and intangible assets, rose from 86.1 million euros to 91.6 million euros (+6% compared to the first three months of the previous year). The gross operating profit reached 35 million euros, up 19.6% compared to the same period in 2004. Ordinary income, obtained by subtracting net adjustments to accounts payable and to financial assets, as well as provisions for risks and charges (9.3 million euros), from the gross profit, amounted to 25.7 million euros, a 21.1% increase over the figure for the first quarter of 2004. Profit for the quarter, subtracting taxes for the period, the variation in the general banking risk provision, and minority interest, came in at 8.4 million euros, as opposed to 5.9 million euros for the first quarter of 2004 (+ 42.4%).

COMBINED ASSETS

Examining the balance sheet data, direct deposits totalled 9923.1 million euros, up 2.8% over the figure of 9656 million euros as at December 31 2004. Indirect deposits from customers at the end of March 2005 show an increase of 3.1% compared to 31 December 2004, coming in at 10,776.1 million euros. In the combined assets in question, securities under administration-comprising securities deposited with the banks in the Group--amounted to 5356.6 million euros (+2,1% compared to the end of December 2004), and asset management, made up of mutual funds and managed assets of customers, stood at 4389.4 million euros (+4.3% compared to 31 December 2004), while insurance savings reached 1030.1 million euros, a 3.1% increase over the figure for the end of 2004. Customer funds under management, the sum of direct and indirect deposits, reached 20,699.3 million euros, up 587.6 million euros (2.9%), as opposed to 20,111.7 million euros as at 31 December 2004. 267.1 million euros of this increase is due to growth in direct deposits, and 320.5 million to that of indirect deposits. As regards loans, cash credits to customers reached 8702.1 million euros at the end of March 2005, a 5.6% increase over the figure of 8240.2 million euros as at 31 December 2004. Net bad debt as at 31 March 2005 is essentially in keeping (-0.1%) with the figure for the end of December 2004, coming in at 248.8 million euros. The ratio of net bad debt to total loans to customers stood at 2.9%, compared to 3% as at 31 December 2004. The Group's consolidated net equity as at March 31 2005 amounted to 527.2 million euros, as opposed to 532.2 million euros as at 31 December 2004.

TRANSITION TO INTERNATIONAL ACCOUNTING STANDARDS

In compliance with the provisions of current legislation, the Credito Valtellinese group will prepare its consolidated financial statement as at 31/12/05 in accordance with IAS/IFRS. The application of the new standards in interim reporting will begin starting with the third quarterly report. The half-yearly report will present special schedules for the reconciliation of figures calculated on the basis of criteria used in drafting the previous year's financial statement with the same figures calculated applying international accounting standards. External auditing firms have been engaged for reviewing the data resulting from the transition process. The general structure of the accounting systems currently in use has proven to be essentially suitable for the new principles; however, for the purposes of full adoption of the new standards, provisions have been made for the review and implementation of certain operating processes, and the adoption of new procedures for the areas of credit, finance, and administration, as is described in detail in the quarterly report.

SIGNIFICANT EVENTS AFTER 31 MARCH AND FORESEEABLE TREND IN OPERATIONS

Despite an economic context which is still marked by problematic aspects, the Board of Directors believes that for the remainder of the year the group will be able to continued its balanced, harmonious growth, with a further increase in operating volume and improvement in all the primary economic indicators. Among significant events in the life of the Group in the period following the close of the quarter, one should note:

• Conclusion of the phase of payment for the first instalment of the "Credito Valtellinese 2.8% 2004-2007 convertible bond", amounting to 300 euros of nominal value for each bond with an original nominal value of 1000 euros. The operation led to the almost complete (98.75%) conversion of the expiring quota; as a result, the authorised capital of Credito Valtellinese rose from €198,031,953 to €235,405,446, divided into 78,468,482 shares with a unit par value of 3 euros.

• Determination by the Board of Directors of the subsidiary Banca dell'Artigianato e dell'Industria, by virtue of the powers conferred on it, of procedures for issuing the first tranche of an increase in share capital amounting to 80.9 million euros, approved by the EGM on 30 March 2005. The maximum amount for this tranche is set at 40.4 million euros, with a subscription ratio of 3 new shares for every 4 old ones; The offering period has been slated for July 2005, after the close of the "BAI TV 2000-2005" subordinated convertible bond warrant option.

• Further expansion of the Group's territorial network, with the opening of 5 new branches, headed by Credito Artigiano (Abbiategrasso, Vigevano, Melzo e Pistoia) and Credito Valtellinese (agency no. in Como).

Reclassified Balance Sheet and Income Statement attached.

For further information, contact:

Enzo Rocca
Administrative Offices
Telephone 0342 522647 02 80637813
Email rocca.enzo@creval.it