Credito Valtellinese: suggested capital increase; first quarter 2003 consolidated results
Sondrio, Tues. April 29, 2003 - The Credito Valtellinese has made the following statement in response to the press release circulated on April 26, 2003 and to what was written in a daily newspaper published on April 29, 2003.
SUGGESTED CAPITAL INCREASE
FIRST QUARTER 2003 CONSOLIDATED RESULTS
One of the shareholders who attended the Credito Valtellinese annual general meeting that was held on April 26, 2003 asked for more information about the Group's business growth strategy, in particular how to match up the type of finance to be raised to the implementation of this strategy.
The Credito Valtellinese is currently analysing dossiers of information concerning banks based in central and northern Italy to consider the need to announce a capital increase aimed at financing business growth.
Credito Valtellinese is issuing this statement to clarify that the Board of Directors has not resolved on the total amount of the capital increase yet
The Board of Directors of Credito Valtellinese is examining the Group's consolidated results in a meeting that is scheduled for May 13, 2003.
The consolidated results concerning the main balance-sheet aggregates are perfectly in line with the budget forecasts, whereas the consolidated profit and loss account recorded a slight increase in the interest margin in comparison with the first quarter of 2002 and diminished consolidated net profits. The drop in profits is mainly due to increased starting-up costs and to increased operating expenses associated with integrating new businesses within the banking Group.
As for the current year, the Group is expecting further increases in both direct and indirect deposits, as well as in investments, which are being secured by the careful policy traditionally adopted in the disbursement of credit facilities.
The Group also expects the consolidated balance sheet at December 31, 2003 to record positive results thanks to a further development of the banking network both in its home territory and in new areas.
