The Group's consolidated results: Direct deposits: € 7,417.4 million (+ 5.1% compared with end of December 2001) Indirect deposits: € 8,008.6 million (+ 3.4% compared with end of December 2001) Accounts receivable from customers: € 6,059.2 million (+ 3.9% compared with end of December 2001) Intermediation margin: € 208.7 million (+ 21.6% compared with first half 2001) Profits for the period: € 5.9 million (+ 11.2% compared with first half 2001) Credito Valtellinese S.c. a r.l.' results: Direct deposits: € 2,856.6 million (+ 4.2% compared with end of December 2001) Indirect deposits: € 3,247.1 million (- 1.3% compared with end of December 2001) Accounts receivable from customers: € 2,147.1 million (+ 5.1% compared with end of December 2001) Profits for the period: € 18.3 million (+ 26.1% compared with first half 2001)

In the meeting of today, the Board of Directors of the Credito Valtellinese has examined the Group's consolidated results as at June 30 2002, which confirm a considerable development of business over the past few years.

During the first half of 2002, the Group has been developing its branch network in Sicily, where the Credito Siciliano has been established following the merger of the local banks. The new bank disposes of a network including more than 130 branches and boasts total assets under management of € 2,484 million and investments for € 1,111 million.

During the first half of the current year the Group has also been strengthening the branch network in its home territory by purchasing all the shares of the Rileno S.p.A. from Deutsche Bank. The Rileno is a company entrusted with the national tax collection service in the provinces of Como and Lecco.

As far as the consolidated balance sheet is concerned, the results for the first half of 2002, if compared with December 2001, confirm a harmonious development of the main aggregates.

Direct deposits, in fact, have increased by 5.1 percent attaining € 7,417.4 million. Indirect deposits - consisting of assets administrations, funds and insurance deposits - have increased by 3.4 per cent attaining € 8,008.6 million. As a consequence, as at June 30 2002, total assets under management - consisting of both direct and indirect deposits - stood at € 15,426 million (+4.2%).

Investments have increased by 3.9 percent since December 31 2001. Accounts receivable stood at € 6,059.2 million. The careful policy adopted in the disbursement of credit has allowed keeping the impact of the unpaid bills at 3.76%.

Below are details of the consolidated profit and loss account for the first half of 2002. It must be noticed that the consolidated profit and loss account for the same period of last year did not include the results pertaining to Banca Regionale Sant'Angelo, which is now part of the Credito Siciliano. The interest margin has increased by 18.6 percent compared with the first half of 2001: € 124.6 million, thanks to the positive trend of assets under management. Interests earned have increased by 3.5 percent (€ 220.5 million), interests paid stood at € 95.9 million (-11.1%).
The intermediation margin has increased by 21.6 percent, at € 208.7 million compared with € 171.6 million as at June 30 2001.
Net commissions have seen an increase by 19.6 percent, from € 48.1 million to € 57.6 million. Despite the uncertainty which has been affecting the course of the financial markets, the heading 'Profits from financial operations' has increased from € 404,000 to € 1.4 million.
Administrative expenses have increased from € 118.3 million to € 143.1 million (+21%), mainly as a result of the birth of the new member bank Credito Siciliano. Details of this heading are as follows: personnel expenses at € 81.9 million compared with € 67 million for the first half of 2001 (+22.1%). Other administrative expenses have increased by 19.5 percent, from € 51.3 million to € 61.2 million.
As at June 30 2002, adjustments in respect of tangible and intangible fixed assets stood at € 21.9 million compared with € 16.8 million last year (+30.3%), partly because the consolidated results now include also the Credito Siciliano and also as a result of the increased profit-sharing in the Credito Artigiano capital stock.
The net operating income stood at € 43.7 million compared with € 36.5 million for the same period of last year (+19.7%).
Provisions for covering risks associated with the disbursement of credit, provisions for covering other risks and charges and net value adjustments in respect of financial fixed assts totalled € 14.8 million for the first half of 2002.
As at June 30 2002, the Group's consolidated profits stood at € 28.9 million (+ 16.6% compared with € 24.8 million for the first half of 2001).
After entering also extraordinary profits for € 164,000, taxes for € 19.2 million, a variation of € 1.9 million in the reserve for covering general risks associated with banking, profits due to third parties for € 2.1 million, the consolidated results for the first half of 2002 are as follows: profits for the period at € 5.9 million (+11.2% compared with first half 2001).
During the first half of the current year, the Group has been offering its services via the Internet to a much greater number of customers (106,000 users). New branch offices have been opened. The Group's network now includes more than 300 branches.
As regards the personnel of the banking Group, as at June 30 2002, the number of employees was 2,843.

The Credito Valtellinese S.c. a r.l.'s balance sheet

As regards the parent company, the Credito Valtellinese has recorded positive results for the first half of the current year. Below are the details of the balance sheet.
As for assets under management, as at June 30 2002, the customers' direct deposits with the Credito Valtellinese stood at € 2,856.6 million compared with € 2,660.7 million end of June 2001 (+7.4%) and with € 2,742.5 million end of December 2001 (+ 4.2%). The heading 'indirect deposits' has registered a slight decrease (-1.3%), from € 3,291 million end of December 2001 to € 3,247.1 million end of June 2002. In particular, assets administrations registered € 1,182 million (-3.4%), while funds 146.1 million (-6.8%). Insurance deposits have seen a strong increase (+20%) thanks to the launch of innovative products. As at June 30 2002, total deposits with the parent bank stood at € 6,103.7 million (+1.1 percent compared with end of December 2001).
Accounts receivable from customers stood at € 2,147.1 million (+10.8% compared with June 2001, + 5.1% compared with end of December 2001).
Unpaid bills recorded € 44.3 million, compared with € 43.4 million end of December 2001.
The unpaid bills-investments ratio was 1.85% compared with 1.93% as at December 31 2001.
Details of the reclassified revenue account are as follows. The interest margin has increased by 9.3 percent since June 30 2001: € 37.4 million. Proceeds from services - consisting of dividends, net commissions and other proceeds - have increased by 35.1 percent: € 89 million.
Despite an unfavourable course of the financial markets, thanks to the careful policy adopted in the management of risks linked to marketable securities profits from financial operations have remained unchanged since last year.
The intermediation margin, which indicates the trend of ordinary activities, has increased by 26 percent since the first half of 2001: € 126.4 million compared with € 100.3 million as at June 30 2001.
The administrative expenses for the first half of this year amount to € 49.2 million (+2.6%). In particular, personnel expenses stood at € 25.1 million (+4.3%) while the other administrative costs have remained substantially unchanged since June 30 2001: € 24.1 million.
As at June 30 2002, value adjustments in respect of tangible and intangible fixed assets stood at € 36.5 million (+53.8%).
The operating income recorded € 40.7 million compared with € 28.7 million recorded as at June 30 2001 (+41.9%).
Profits from ordinary activities recorded € 34.5 million compared with € 23.1 million for the first half of 2001 (+ 49.3%).
After entering extraordinary incomes (- 1.5 million euros) and taxes (€ 14.7 million), profits for the period recorded €18.3 million (+26.1%).

The Credito Valtellinese branch network included 83 banking outlets end of June 2002.

The 'Specialsocio' newsletter - which is about the activity of the Group during the first half of 2002 - is being sent these days to the shareholders.