First half-yearly report of Credito Siciliano: net profit at 629,000 euros

Palermo, August 28, 2003 - In a meeting held today in Palermo, the Board of Directors of Credito Siciliano - a Credito Valtellinese Group member bank - has examined and unanimously approved the half-yearly report for the period ended June 30, 2003. As the Credito Siciliano was established July 1, 2002, this is the first half-yearly report for the bank.

The results disclosed in the Profit & Loss Account of Credito Siciliano as of June 30, 2003, are therefore comparable with figures in a pro-forma balance sheet made up of the balance sheets of the merging companies from which the new bank originated in July 2002.

Total deposits stood at € 3,042.6 million (+ 5.8 percent compared with December, 2002), of which € 1,856.2 million direct deposits (+ 0.8%) and € 1,186.4 million indirect deposits (+ 14.9%). Sums receivable from customers stood at € 1,152.7 million (+ 4.9%), thereby confirming that Credito Siciliano has a strong commitment to supporting Sicily's economic development.

As far as the profit and loss account is concerned, as of June 30, 2003, the interest margin recorded € 31.6 million (+6.4% compared with June, 2002) and the intermediation margin € 68.3 million (+ 8.6%) also as a result of the positive trend of financial activities and proceeds from services. Operating costs stood at € 49.5 million, with an increase by 11.6 percent compared with the same period of last year.
After entering provisions for covering risks associated with the disbursement of credit facilities and value adjustments, ordinary profits amounted in all to € 1.3 million (+ 53.3%).
Considering cash flow related to extraordinary activities for € 1.8 million and taxes (€ 2.5 million), net profit for the period recorded € 629,000.

Following the CISQCERT supervisory committee audits, during the first half of 2003, Credito Siciliano has achieved certification of the quality for its Quality Management System. The bank has also being reorganizing its branch network in accordance with the Group's strategic guidelines by opening branch offices in Catania and Taormina.