Credito Valtellinese banking Group approves quarterly report as of March 31, 2004

CONSOLIDATED RESULTS

Balance sheet figures (compared with December 31, 2003)

DIRECT DEPOSITS: 8,994 MILLION EUROS (+ 3.4%)
INDIRECT DEPOSITS: 9,518 MILLION EUROS (+ 1%)
CREDITS TO THE CUSTOMERS: 7,559 MILLION EUROS (+ 1.7%)

Profit & loss account figures (compared with first quarter of 2003)

OPERATING MARGIN: 115.4 MILLION EUROS (+ 11.4%)
GROSS OPERATING INCOME: 29.3 MILLION EUROS (+ 30.9%)
NET PROFIT FOR THE PERIOD : 5.9 MILLION EUROS (+ 8.8%)

Sondrio, May 11 2004 - At today's meeting, the Board of Directors of Credito Valtellinese, parent company of the banking Group with the same name, has approved the quarterly report on operations for the period January 1-March 31, 2004, which recorded appreciable increases in all balance-sheet aggregates as well as in the main economic indicators, in line with budget forecasts.

Below are details of the consolidated balance sheet of the Credito Valtellinese banking Group as at March 31, 2004. Figures are compared with those of the Group's balance sheet for the year ended December 31, 2003.
Direct deposits stood at € 8,994 million, compared with € 8,699.8 million (+3.4%).
The customers' indirect deposits stood at € 9,517.6 million, compared with € 9,426.3 million (+1%). Details of this aggregate were as follows: assets administrations and funds amounted in all to € 4,017.4 million (+2.7%), insurance deposits stood at € 880.7 million (+1.7%), assets held for administration stood at € 4,619.5 million, substantially unchanged with respect to December 31, 2003.
Total deposits stood at € 18,511.3 million posting a growth of 2.1% over December 31, 2003 (€ 18,126.1 million).

Credits to the customers stood at € 7,559.1 million, compared with € 7,432.6 million (+1.7%)
Unpaid bills amounted to € 257.3 million, compared with € 259.1 million.

Consolidated net assets amounted in all to € 472.8 million, posting a growth of 4.4% over December 31, 2003 (€452.8 million).

Below are details of the Group's Profit and Loss Account as at March 31, 2004. These figures are compared with those referring to the first quarter of last year (January 1-March 31, 2003).
Despite a further contraction of the spread between the borrowing and lending rates, the interest margin stood at € 65 million, compared with € 60.8 million (+6.9%).
Proceeds from services, consisting of banking commissions and other net proceeds, amounted to € 44.2 million (+ 16.8%). Profits on financial transactions accounted for € 4.4 million, compared with an amount of 3.3 million euros the same period last year (+31.6%).
The operating margin, resulting from the interest margin, proceeds from services, the member companies' net assets, dividends and profits on financial transactions, stood at € 115.4 million, compared with € 103.6 million (+11.4%).

Further development of the Group's branch network took place in the first quarter of the current year and this has led to an increase in administrative expenses, which amounted to € 74.5 million (+6.2%).
After taking account of value adjustments in respect of tangible and intangible fixed assets for an amount of € 11.6 million (+5.3%), the Credito Valtellinese Group's operating income before taxes for the period January-March, 2004 stood at € 29.3 million, compared with € 22.4 million (+ 30.9%).
Ordinary profits stood at € 21.2 million (+49.7%), and taking account of extraordinary profits for € -0.7 million (€ -0.6 million the same period last year), profit before income tax resulted in € 20.6 million (+51%).

After entering tax charges, a variation in the reserve for covering general risks associated with banking, profits due to third parties, the consolidated profit for the period recorded € 5.9 million, posting a growth of 8.8% over the same period last year.

As regards e-banking, the number of banc@perta users has been increasing considerably being at present over 160,000 customers. Also during the first quarter of 2004, the Creval Group has been adopting its well-established multi-channel strategy, which combines the traditional channel used to reach customers with highly innovative channels and products.