CREDITO ARTIGIANO approves quarterly report as of March 31, 2003

Milan, April 29, 2003 - Following today's meeting the Board of Directors of Credito Artigiano - Credito Valtellinese banking Group - has confirmed the quarterly report on operations for the period January 1-March 31, 2003, which recorded increases in the main balance-sheet aggregates as well as in all economic indicators, perfectly in line with the expected results.

As at March 31, 2003 direct deposits stood at € 3,017 million, with a 20.8 percent annual increase. Such an increase in direct deposits highlight much more interest from the clientele in liquid assets than in other types of investments, also because of the considerable uncertainty that has been affecting the course of the financial markets over the period. Indirect deposits stood at € 3,586 million, substantially unchanged compared with March 2002 and also with December 2002. The fund performances, including insurance fund performances, were up 7.6%, representing 46% of total indirect deposits. The amount of this aggregate stood at € 1,652 million. Sums receivable from customers stood at € 2,447 million with an increase by 18.2 percent compared with the same period of last year.

Following the conversion of the third tranche of a bond issue that Credito Artigiano launched on the occasion of its official listing, the net assets figure saw an increase by 24.6 million euros. As at March 31, 2003, Credito Artigiano's net assets - including net profits for the year 2002 (15.2 million euros) and profits for the period January 1-March 31, 2003 - stood at € 318.6 million.

Despite a further contraction in the gap between lending rates and borrowing rates, the interest margin saw a 3.1 percent annual increase. As at March 31, 2003 it stood at € 21.1 million. Strong increases were recorded under the heading 'proceeds from services' since the first quarter of last year. It stood at € 15.3 million, also thanks to proceeds pertinent to leasing activities started in the second half of 2002 for € 2.7 million. Profits from financial operations stood at € 1.2 million, thereby increasing the intermediation margin from € 32.3 million (March, 2002) to € 37.6 million (March 31, 2003).

After taking account of operating costs for € 28.5 million, the gross operating income amounted to € 9.1 million (+ 14.3% compared with March 2002). Value adjustments and provisions for covering risks and charges over the period amounted to € 2.5 million. Ordinary profits have recorded +17% since the first quarter of 2002. As at March 31, 2003 ordinary profits amounted to € 6.6 million.

After taking account of taxes for € 3.2 million, net profits for the period stood at € 3.4 million, compared with € 3.8 million for the same period of last year when extraordinary profits for € 1 million contributed towards first quarter 2002 results.