Credito Valtellinese Group: presentation of the results for 2005 and the "4C" Strategic Plan

Milan, 29 March 2006. The General Director of Credito Valtellinese, Mr. Miro Fiordi, assisted by Mr. Enzo Rocca, Deltas General Director, and Mr. Norberto Gualteroni, General Director of Bancaperta, will present Group results and activities for 2005 during the meeting with the financial community which will held today in Milan at the Palazzo delle Stelline. The General Director, Mr. Luciano Filippo Camagni, will also present the results of the 2005 financial statements for Credito Artigiano.

Furthermore, relevant parts of the "4C" Strategic Plan - which outlines the Group's development process for the 2006-2008 three year period - will also be presented, identifying four priorities:

• external and internal growth;
• the development of innovative methods to approach the market and respond more effectively to customer needs;
• improving distinctive skills;
• further developing control systems.

In summary, the following asset targets are foreseen for the 2006-2008 period:

• strong growth in loans to families and small and medium sized businesses (CAGR equal to 12.1%) coupled with a constant attention focused on loan quality (the ratio between net non-performing loans and net loans to customers is foreseen at 1.3% in 2008, a decrease compared to 1.7% as at the end of 2005);
• the balanced development of direct deposits to support the planned expansion in loans (CAGR at 8.5%);
• marked increase in indirect deposits (CARG equal to 9.1%), specifically focusing managed assets managed by Aperta SGR S.p.A. - Asset Management Company belonging to the Credito Valtellinese Group - and the bancassurance sector - where the group is active in collaboration with the allied company Global Assicurazioni S.p.A. The ratio between managed assets (the sum total of asset management, mutual funds and life insurance products) and indirect deposits is expected to be above 55% at the end of this period.

The evolution in brokerage volumes will have a positive impact on revenue dynamics. The brokerage margin is, in fact, expected to register an average annual growth of 8.4%.

Investments aimed at internal growth will be reflected in an increase in average operating costs at around 6.3%. The plan foresees 80 new branch offices being opened during the three year period according to a development model based on a capillary presence in the territories in question. The Group (Credito Valtellinese S.c, Credito Artigiano S.p.A., Credito Siciliano S.p.A., Banca dell'Artigianato e dell'Industria S.p.A.) will therefore have more that 400 branch offices by the end of 2008. The economic effects of the abovementioned internal growth plan will be seen in a contraction of the cost/income ratio, which is expected to fall from 68.1% in 2005 to 64.3% in 2008.

With reference to the loan policies discussed and the last 2 expiring tranches of the "Credito Valtellinese 2.8% 2004-2007 convertible" bond loan (respectively equal to € 88 million in April 2006 and € 117.4 million in April 2007), total capital ratio - equal to 9.50% as at December 2005 - is estimated to stand at around 10% levels for the 2006-2008 three year period.

The average profit growth rate - calculated by sterilising the net consolidated result as at 31.12.2005 from a positive non-recurrent component connected to the real estate revaluation for € 37.4 million - is equal to 18.2%; profits for the year planned for 2008 total € 91.8 million, with a corresponding ROE of 8.5%.

For further information, contact:

Enzo Rocca
General Director Deltas S.p.A.
Telephone 0342 522647 02 80637813
Email: rocca.enzo@creval.it

Tiziana Camozzi
Institutional Communication Service Deltas S.p.A.
Telephone 02 80637471
Email: camozzi.tiziana@creval.it