Strong increases were recorded in both deposits and investments. In fact, direct deposits stood at € 7,860.1 million, with an increase by 11.4 percent.

End of December 2002, indirect deposits stood at € 8,496.5 million (+9.7%), of which 51.9% - pertaining to assets administrations - stood at € 4,407.4 million (+4.2%), 40.5% - pertaining to funds - stood at € 3,438.2 million (+12.1%) and the remaining 7.6% - pertaining to bank insurance products - stood at € 650.9 million (+44.9%).

As a consequence, total assets under management - consisting of both direct and indirect deposits - stood at € 16,356.6 million, compared with € 14,800.6 million for the previous year (+10.5%).

Credits to customers were up 14.3% with € 6,664.5 million, whereas the interest margin recorded +5.3%, from € 234.7 million to € 247.2 million.

Net commissions stood at € 127.9 million with an increase by 24.1 percent.

The intermediation margin stood at € 442.4 million, compared with € 384.9 million for 2001 (+14.9%).

Administrative expenses were up 16.9% with € 299.5 million end of December, 2002. The increase in administrative expenses was mainly due to costs associated with the opening of new branches and with those sustained for the acquisition of Rileno S.p.A., the company entrusted with the tax collection service in the provinces of Como and Lecco.

In particular, staff expenses were up 16.4%, from € 144.3 million to € 168 million, as a result of an increase in the number of employees working with the Group: 2,951 end of December, 2002. Other administrative expenses amounted to € 131.6 million (+17.5%).

Value adjustments in respect of tangible and intangible fixed assets were up 17%, from € 40.3 million to € 47.1 million.

The gross operating income recorded an increase by 8.4 percent, from € 88.3 million to € 95.7 million.

After entering provisions for covering risks associated with the disbursement of credit and net value adjustments in respect of financial fixed assets for € 32.6 million, ordinary profits amounted in all to € 63.1 million (+4.5%).

Cash flow related to extraordinary activities recorded a loss for € 0.5 million, compared with profits for € 18.6 million end of December, 2001. Gross profits for the year totalled € 62.7 million.

After entering taxes on income for € 39 million, profits due to third parties for € 4.5 million and an increase of € 4.4 million in the reserve for covering general risks associated with banking, net profits for the period amounted to € 14.8 million (-30.1%). New branch offices have been opened throughout the year. The Group's banking network now includes more than 300 branches. Thanks to further implementations of the Group's Internet banking service (i.e.banc@perta), end of December, 2002, the number of banc@perta users stood around 120,000 (+36.7%)

The 'Specialsocio' newsletter - which provides information on the activity of the Group, as well as on new products launched during the second half of 2002 - is being sent these days to the shareholders of the member banks.

CREDITO VALTELLINESE: STRONG INCREASES IN THE MAIN BALANCE-SHEET AGGREGATES.
- INTERMEDIATION MARGIN: + 21.7%
- NET PROFIT: +6.5%
- DIVIDEND OF 0.40 EUROS PER SHARE, + 10.7% PERCENT COMPARED WITH THE PREVIOUS YEAR, AVERAGE EQUITY YIELD OF 4.75%

Also for the parent bank Credito Valtellinese, 2002 saw excellent performances of the main balance-sheet aggregates, as can be noticed by looking at figures related to the bank's operating results for the year:

• Ordinary profits were up 18.4 percent compared with the previous year
• Net profit stood at € 26.3 million (+6.5%)
• Increases in direct deposits (+11.3%) and investments (+16.7%)
• Internet banking services offered to a much greater number of customers. There were 37,000 banc@perta users end of December, 2002 (+28.2%)

As at December 31, 2002, direct deposits stood at € 3,051.2 million, compared with € 2,742.5 million end of December, 2001. Despite quite an unfavourable course of the financial markets, indirect deposits were substantially unchanged over the previous year: € 3,299.1 million, of which 50.7% pertaining to assets administrations, 40.2% to funds and the remaining 9.1% to bank insurance products.

Total assets under management - consisting of both direct and indirect deposits - amounted in all to € 6,350.3 million, with an increase by 5.3 percent compared with end of December 2001.

The year ended December 31, 2002 also recorded strong increases in sums receivable from customers (+16.7%), which amounted to € 2,384 million, (+ 340.4 million euros compared with the previous year).

The unpaid bills-investments ratio was 1.7% compared with 1.9% as at December 31 2001.

As regards the profit and loss account, the interest margin stood at € 71.9 million, recording a slight decrease if compared with € 72.4 million end of December 2001. Proceeds from services - consisting of net commissions and other net proceeds - amounted to € 142.2 million, with an increase by 31.2 percent if compared with € 108.3 million for the previous year. Due to a considerable increase in commissions on insurance products, net commissions amounted to € 34.7 million (+8.9%).

As at December 31, 2002, administrative expenses stood at € 99.1 million (+6.2%). Such an increase was mainly due to the opening of new branches ad the increase in the number of employees working with Credito Valtellinese. Details under this heading are as follows: personnel expenses up 5.5% with € 48.6 million, other expenses up 7% compared with the previous year.

The gross operating income stood at € 63.8 million (+22.6%).

After entering cash flow related to extraordinary activities and taxes on income, net profits for the period recorded € 26.3 million (+6.5%).

Excellent results were attained thanks to further implementations of Credito Valtellinese's Internet banking services. In fact, the bank has been offering a wider range of products and services to a much greater number of customers throughout the year. End of December 2002, there were over 37,000 users benefiting from facilities made available via the Internet (+28.2%).

The Board of Directors of Credito Valtellinese also resolved on the distribution of the year's profits by confirming a dividend of 0.40 euros per share (with effect May 8, 2003), + 10.7% percent compared with the previous year, average equity yield of 4.75%. The share will be quoted ex-coupon as from May 5, 2003. The shareholders' meeting will be held on April 26, 2003.