CREDITO VALTELLINESE GROUP APPROVES QUARTERLY REPORT AS OF SEPTEMBER 30, 2003
Group consolidated results:
Direct deposits at € 8,476.4 million (+7.8% compared with end of December 2002)
Indirect deposits at € 9,402.6 million (+10.7% compared with end of December 2002)
Sums receivable from customers at € 6,803.5 million (+2.1% compared with end of December 2002)
Intermediation margin at € 335.4 million (+3.4% compared with the period January 1-September 30, 2002)
Profit for the period at € 9.8 million (+ 3.5% compared with the period January 1-September 30, 2002)

CREDITO VALTELLINESE: PROFIT FOR THE PERIOD ENDED SEPTEMBER 30, 2003 AT € 29.9 MILLION (+32%)

EXTRAORDINARY MEETING TO BE HELD NOVEMBER 15, 2003 TO APPROVE CAPITAL INCREASE
Credito Valtellinese S.c. a r.l.:
Direct deposits at € 3,284.5 million (+7.6% compared with end of December 2002)
Indirect deposits at € 3,575.8 million (+8.4% compared with end of December 2002)
Sums receivable from customers at € 2,439.2 million (+2.3% compared with end of December 2002)
Intermediation margin at € 202 million (+11.9% compared with the period January 1-September 30, 2002)
Profit for the period at € 29.9 million (+ 32% compared with the period January 1-September 30, 2002)

Credito Valtellinese banking Group consolidated balance sheet
Sondrio, Nov 11, 2003. In a meeting held today in Sondrio, the Board of Directors of Credito Valtellinese has approved the Group consolidated balance sheet at September 30, 2003, which recorded increases in assets under management, particularly direct deposits (€ 8,476.4 million, with an increase by 1.5 percent compared with € 8,349.6 million at June 30, 2003 and by 7.8 percent if compared with end of December 2002). As of September 30, 2003, the Group indirect deposits stood at € 9,402.6 million, with an increase by 3.8 percent compared with end of June 2003 and by 10.7 percent if compared with end of December 2002. Looking further into indirect deposits helps highlight that, with € 4,639.5 million, assets held for administration have seen an increase by 5.3 percent over the period, while funds an increase by 15.1 percent totalling € 3,956.4 million at September 30, 2003. Insurance deposits stood at € 806.6 million (+ 23.9% compared with end of December 2002).
With € 17,879 million, total assets under management - consisting of both direct and indirect deposits from the clientele - were up 2.7 percent compared with € 17,406.8 million at June 30, 2003 and 9.3 percent compared with end of December, 2002.
Sums receivable from customers stood at € 6,803.5 million, with an increase by 2.1 percent compared with end of December 2002.
Unpaid bills remained substantially unchanged over the period June 30 - September 30, 2003: € 260.7 million compared with 253.3 million at June 30, 2003. The unpaid bills-investments ratio has remained unchanged as well: 3.8%.

As of September 30, 2003, figures in the Group consolidated profit and loss account were as follows: interest margin at € 62.8 million over the period June 30-September 30, 2003 (+ 1.5% compared with the same period of 2002). The interest margin for the period January 1-September 30, 2003 stood at € 184.7 million, substantially unchanged with respect to the same period of 2002.
The intermediation margin for the period June 30-September 30, 2003 stood at € 114.5 million, unchanged with respect to the same period of 2002; during the period January 1-September 30, 2003 this margin recorded € 335.4 million, with an increase by 3.4 percent with respect to the same period of 2002. The net amount of bank commissions stood at € 36.4 million (-1.3% over the period June 30-September 30, 2003). Bank commissions for the period January 1-September 30, 2003 recorded € 101.1 million (+ 7% compared with the same period of 2002). The net amount of other proceeds stood at € 11.7 million (+ 11.6% over the period June 30-September 30, 2003). Other proceeds for the period January 1-September 30, 2003 recorded € 31.8 million (+ 3.9% compared with the same period of 2002). The financial intermediation margin also consisted of profit on financial operations, which amounted to € 1.4 million for the period June 30-September 30 and to € 10.7 million for the period January 1-September 30, 2003 (+ 65.1% if compared with € 6.5 million recorded for the same period of 2002).
With an amount of € 76.8 million, administrative expenses were down 2.5 percent with respect to the period June 30-September 30, 2002. The amount of this aggregate for the period January 1-September 30, 2003 stood at € 231.1 million (+ 4.2% with respect to the same period of the previous year). Personnel expenses stood at € 43.7 million (-0.7%), other administrative expense at € 33.1 million (-4.7%). Figures for the period January 1-September 30, 2003 were as follows: personnel expenses at € 131.8 million (+4.7%), other administrative expenses at € 99.3 million (+3.5%).
Value adjustments in respect of tangible and intangible fixed assets stood at € 12.2 million (+5.2% compared with € 11.6 million for the period June 30-September 30, 2002). As for the current year figures for the period January 1-September 30 were as follows: value adjustments in respect of tangible and intangible fixed assets stood at € 34.9 million (+ 4.2% over the same period of 2002).
The gross operating income stood at € 25.6 million, substantially unchanged compared with the result for the period June 30-September 30, 2002. The result for the period January 1-September 30, 2003 remained substantially unchanged as well: € 69.4 million.
In accordance with the careful risk management policy adopted by the Coeval Group, provisions for covering credit risks and charges along with the net amount of value adjustments in respect of credits have risen to € 8.1 million.
Ordinary profits stood at € 17.5 million (- 13.9% compared with the previous year). The result for the period January 1-September 30, 2003 was € 44.6 million (- 9.5% compared with the same period of 2002).
After taking account of extraordinary profits for € 0.1 million, taxes on income for € 11.4 million, a variation of € 0.9 million in the reserve for covering general risks associated with banking, profits due to third parties for € 1.8 million, the consolidated profit for the period June 30-September 30 2003 recorded € 3.5 million (unchanged over the previous year). Figures for the period January 1-September 30, 2003 were as follows: net profit at € 9.8 million (+ 3.5% compared with € 9.5 million recorded for the same period of 2002).
The Group is now offering its range of products and services via the Internet to a much greater number of customers (143,000 users). The Coeval banking network includes more 307 branches.
As regards the personnel of the banking Group, as at September 30 2003, the number of employees was 2,974.

Creditor Valtellinese S.c. a r.l. balance sheet
In the meeting of today, the Board of Directors of Credito Valtellinese has also approved figures recorded in the balance sheet of the parent bank for the period June 30-September 30, 2003, which saw further increases in all balance-sheet aggregates as well as in the main economic indicators, in line with budget forecasts. Details of assets under management were as follows: as of September 30, 2003, direct deposits stood at € 3,284.5 million compared with € 3,051.2 million end of 2002 (+ 7.6%). Indirect deposits were up 8.4% at € 3,575.8 million, compared with € 3,299.1 million at December 31, 2002. In particular, assets held for administration stood at € 1,810.7 million (+8.3% over December 31, 2002), assets administrations and funds at € 1,421 million (+7.1% over December 31, 2002) and insurance deposits at € 344 million (+ 14.6% over December 31, 2002). The period ended September 30, 2003, recorded a total amount of assets under management at the parent bank Credito Valtellinese of € 6,860.3 million (+ 8% over December 31, 2002).

Sums receivable from customers were up 2.3% at € 2,439.2 million. The net amount of unpaid bills was € 52.4 million. The unpaid bills-investments ratio was 1.9%, substantially unchanged over June 30, 2003.
As of September 30, 2003, profit & loss account details were as follows: with an amount of € 19.3 million, the interest margin was up 15.2% over June 30, 2003. The margin has increased by 1.2 percent over the period January 1-September 30, 2003. With € 111.6 million, proceeds from services - consisting of net commissions and other proceeds - have increased by 11.7 percent over the period January 1-September 30, 2003. In particular, net commissions were up 7.4% at € 25.7 million while other net proceeds stood at € 85.9 million (+13% compared with € 76 million for the same period of 2002).
Profit and loss on financial operations stood at € 0.6 million, at € 4.6 million for the period January 1-September 30, 2003 (+79% over the previous year).
As a result, the intermediation margin recorded € 58.6 million (+ 8.3% compared with € 54.2 million recorded for the same period of 2002).
Operating costs - consisting of administrative expenses and value adjustments in respect of tangible and intangible fixed assets - recorded € 47.3 million (+9.3%). The amount of operating costs for the period January 1-September 30, 2003 was € 143.1 million (+ 11% compared with 2002). In particular, personnel expenses were up 6.6 percent compared with the period June 30-September 30 2002 and 7.4 percent compared with the period January 1-September 30 2002. Other administrative expenses were up 5.2 percent compared with the period June 30-September 30 2002 and 10.9 percent compared with the period January 1-September 30 2002. The value adjustments in respect of tangible and intangible fixed assets amounted to € 22.2 million (+ 13.4 percent compared with the period June 30-September 30 2002 and substantially in line with growth forecasts for the period January-September 2002.
As at September 30, 2003, the gross operating income stood at € 11.4 million (+ 4.3 percent compared with the previous year).
Provisions for covering risks and charges and value adjustments in respect of credits recorded € 2.9 million. As a result, ordinary profits stood at 8.4 million for the period June-September 2003 (+ 3.8% compared with € 8.1 million for the same period of 2002). The amount of this aggregate for the period January-September of the current year recorded € 50.2 million (+17.8%).
Considering extraordinary profits for € 0.9 million and taxes on income for € 21.2 million entered over the period January-September 2003, the parent bank's net profit currently amounts to € 29.9 million (+32% compared with the previous year).
Following the opening of a new branch in Menaggio, as of September 30, 2003, the banking network of Credito Valtellinese included 86 branches.

EXTRAORDINARY MEETING
An extraordinary meeting of the shareholders of Credito Valtellinese will be held on Saturday, November 15, 2003 to approve a capital increase plan. Capital increase is expected through sale of new ordinary shares and a convertible bond issue.
A new ordinary share is being offered to holders of Credito Valtellinese shares for every 8 shares held. Issue price is € 6.900, of which € 3.000 nominal value and € 3.900 as paid-in surplus.