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CREDITO ARTIGIANO Società per Azioni Registered Offices in Piazza San Fedele 4, Milan, Italy

Authorized share capital € 143,750,000 – of which € 112,918,320 paid in Tax Code and Milan Companies’ Register No. 00774500151

Registered Bank No. 4440 A “Credito Valtellinese Banking Group” Company

(Registered Banking Group No. 5216.7)

REPORT ON OPERATIONS IN THE

FIRST HALF OF 2002

DIRECTORS AND OFFICERS OF CREDITO ARTIGIANO

Board of Directors Chairman * Bassano Baroni Deputy Chairman * Giovanni De Censi Directors * Giovanni Colombo Miro Fiordi Antonio Magnocavallo Francesco Moro * Felice Martinelli Flavio Pizzini Vincenzo Vedani

* Members of the Executive Committee Board of Statutory Auditors Chairman Roberto Campidori Acting Auditors Angelo Palma Giuseppe Degrassi Alternate Auditors Matteo Diasio Giovanni Licciardi General Management General Manager Luciano Camagni Deputy General

Manager Lorenzo Tagni

Independent Auditing Firm: Reconta Ernst & Young S.p.A.

Assets

10 Cash and deposits with central banks and post offices 19.512.475 21.117.529 12.580.180

20 Treasury bills and similar securities eligible for refinancing with central banks 96.497.984 131.363.112 244.871.825

30 Due from banks: 893.020.970 871.674.034 590.690.616 a) repayable on demand 378.379.776 241.110.125 69.576.350 b) other 514.641.194 630.563.909 521.114.266

40 Loans to customers 2.187.803.822 2.168.223.087 1.898.355.249 including: - loan using public funds administered - - -

50 Bonds and other debt securities: 508.892.020 533.837.096 472.868.581 a) issued by public bodies 344.672.794 326.849.556 275.366.846 b) issued by banks: 139.715.179 193.126.395 183.658.665 including: - own securities 5.631.489 3.568.149 4.862.144 c) issued by financial institutions 20.572.406 6.315.115 6.941.533 including: - own securities - - - d) other issuers 3.931.641 7.546.030 6.901.537

60 Shares, quotas and other equities 66.383.354 42.077.148 55.365.919

70 Equity investments 7.489.870 7.502.201 4.546.987

80 Investments in Group companies 182.222.713 180.887.104 144.996.846

90 Intangible fixed assets 18.480.892 20.277.656 21.649.610including: - start-up costs - - - - goodwill 15.015.003 16.681.041 18.347.080

100 Tangible fixed assets 41.757.333 41.551.702 41.965.200including:- leased assets 23.704 - -

110 Subscribed share capital not paid in - - -

120 Own shares - - -

130 Other assets 83.187.838 100.144.164 87.899.099

140 Accrued income and prepayments: 28.579.969 25.260.415 23.799.625

BALANCE SHEET (in Euro)

31/12/2001 30/06/200130/06/2002

a) accrued income 26.881.195 24.629.824 21.873.835 b) prepayments 1.698.774 630.591 1.925.790including: - issue discounts on securities 188.313 235.507 283.484

Total assets 4.133.829.240 4.143.915.248 3.599.589.737

Liabilities and shareholders' equity

10 Due to banks: 956.586.108 1.071.614.006 792.822.147 a) repayable on demand 335.437.357 369.355.726 186.435.460 b) time deposits or with notice period 621.148.751 702.258.280 606.386.687

20 Due to customers: 2.005.667.243 1.866.565.207 1.677.482.603 a) repayable on demand 1.649.089.562 1.520.515.539 1.330.448.793 b) time deposits or with notice period 356.577.681 346.049.668 347.033.810

30 Securities issued 588.380.336 557.005.262 545.261.794 a) bonds 550.843.781 522.477.805 517.510.554 b) certificates of deposit 7.425.000 7.758.000 6.529.582 c) other securities 30.111.555 26.769.457 21.221.658

40 Public funds administered - - -

50 Other liabilities 117.512.672 159.784.794 105.972.798

60 Accrued expenses and deferred income: 20.588.059 18.773.803 18.864.777 a) accrued expenses 19.809.077 17.998.154 17.956.482 b) deferred income 778.982 775.649 908.295

70 Provisions for termination indemnities 10.313.214 10.176.420 11.008.070

80 Provisions for risks and charges: 22.357.773 41.596.210 36.895.954 a) pensions and similar commitments 9.836.909 28.275.458 27.496.883 b) taxation 7.422.946 8.813.604 5.182.099 c) other 5.097.918 4.507.148 4.216.972

90 Reserve for possible loan losses 2.222.039 2.193.315 2.382.519

100 Reserve for general banking risks 17.043.078 17.043.078 17.043.078

110 Subordinated liabilities 126.645.690 151.645.690 151.645.690

120 Share capital 112.918.320 103.211.920 103.211.920

130 Share premium reserve 70.939.980 56.380.380 56.380.380

140 Reserves: 48.923.635 47.458.132 47.412.953 a) legal reserve 8.395.918 6.930.415 6.930.415 b) reserve for own shares - - - c) statutory reserves 39.140.979 39.140.979 39.140.979 d) other reserves 1.386.738 1.386.738 1.341.559

150 Revaluation reserves 25.791.341 25.791.341 25.791.341

160 Retained profit (accumulated losses) 25.441 20.655 20.655

30/06/2002 31/12/2001 30/06/2001

170 Net profit (loss) for the period 7.914.311 14.655.035 7.393.058

Total liabilities and shareholders' equity 4.133.829.240 4.143.915.248 3.599.589.737

ITEMS10 Guarantees given 214.293.398 201.205.599 201.428.869

including: - acceptances 4.169.168 4.264.465 6.974.687 - other guarantees 210.124.230 196.941.134 194.454.182

20 Commitments 108.554.352 116.304.999 175.371.396including: - for sales with the obligation to repurchase - - -

30/06/2002 31/12/2001 30/06/2001

GUARANTEES AND COMMITMENTS

Items

10 Interest income and similar revenues 89.048.339 98.254.670 193.850.943including from: - loans to customers 60.277.603 60.843.860 124.055.663 - debt securities 13.131.461 18.760.341 34.596.606

20 Interest expense and similar charges - 48.212.406 - 58.168.077 - 113.629.518including on: - deposits from customers - 19.693.761 - 24.913.625 - 45.429.327 - securities issued - 11.641.015 - 15.314.610 - 29.770.097

30 Dividends and other revenues: 1.402.679 1.185.150 1.333.663 a) from shares, quotas and other equities 10.388 51.806 97.767 b) from equity investments 33.010 31.406 133.958 c) from investments in Group companies 1.359.281 1.101.938 1.101.938

40 Commission income 23.457.076 21.987.091 44.725.651

50 Commission expense - 5.770.030 - 5.457.229 - 11.295.936

60 Profits (losses) on financial transactions 356.717 1.468.273 3.873.334

70 Other operating income 7.720.462 7.453.029 14.669.324

80 Administrative expenses: - 44.953.722 - 44.341.894 - 88.556.456 a) payroll and related costs - 21.965.453 - 21.028.119 - 41.442.997 including: - wages and salaries - 13.873.483 - 13.655.561 - 26.019.553 - social security charges - 3.951.180 - 4.058.979 - 8.639.948 - termination indemnities - 1.265.723 - 1.109.669 - 2.613.299 - pensions and similar commitments - 668.767 - 146.442 - 946.253 b) other administrative expenses - 22.988.269 - 23.313.775 - 47.113.459

90 Value adjustments to tangible and intangible fixed assets - 4.355.065 - 4.464.443 - 9.484.354

100 Provisions for risks and charges - 926.153 - 402.576 - 1.363.062

110 Other operating expenses - 23.442 - 59.510 - 89.183

120 Value adjustments to loans and provisions for guarantees and commitments - 5.221.258 - 6.180.465 - 13.284.585

130 Writeback of adjustments to loans and provisions for guarantees and commitments 1.100.102 1.319.093 2.172.816

140 Provisions for possible loan losses - 258.057 - 229.845 - 463.299

1st half 2001 20011st half 2002

INCOME STATEMENT (in Euro)

150 Value adjustments to financial fixed assets - - 14.233 - 39.320

160 Writeback of adjustments to financial fixed assets 39.315

170 Profit (loss) on operating activities 13.404.557 12.349.034 22.420.018

180 Extraordinary income 1.439.554 308.746 1.322.471

190 Extraordinary charges - 599.801 - 244.761 - 462.624

200 Extraordinary income, net 839.753 63.985 859.847

210 Change in reserve for general banking risks - - -

220 Income taxes for the period - 6.329.999 - 5.019.961 - 8.624.830

230 Net profit (loss) for the period 7.914.311 7.393.058 14.655.035

OPERATING CONTEXT General economic scenario The world economic scenario was characterized by a significant misalignment between the macro-economic performances of the main areas - in constant, albeit slight, improvement - and the performances of the financial and share markets, on which uncertainty and instability prevail. In the United States, the Gross Domestic Product should grow during 2002 by 2.2%, instead of by the 2.1% estimated previously, and in 2003 by 2.6%, instead of by 3.4%. During May, the growth in industrial production continued, with an increase equating to 0.2%; a not dissimilar performance was registered by the index concerning the utilization of the production capacity which for some months has indicated a recovery. The data concerning the inclination of the climate of confidence of the economic operators does not offer a clear and univocal picture and confirms “stop and go” performances; this performance is influenced by the permanent terrorist threat and the news concerning the financial situation and the governance of important American companies. If, with regard to the companies, an overall satisfactory performance appears to be confirmed, particularly for the manufacturing sector, the situation regarding the confidence of families is by contrast different. According to recent Eurostat information, GDP for 2002 in the Euro area is up by 1.1% and the data on consumer price performance indicates that during the month of June the tendential rate of inflation fell even further from 2% to 1.7%. During June, the exchange market distinguished itself by the heavy appreciation of the Euro against the Dollar. The exchange rate during the first few days of July reached and exceeded the parity to then turn downwards towards a quota of 0.97/0.98. Lending activities(1) During the first six months of 2002, a slight acceleration was witnessed in the dynamics of deposits denominated in Euro pertaining to Italian banks, comprising savings deposits, current accounts, certificates of deposit and bonds, amounting to Euro 852 billion, up 9.69% compared with the figures for June 2001. The sum total of loans disbursed by the Italian banking system came to Euro 937.5 billion, signalling a net flow of new loans of approximately Euro 48 billion compared with June 2001. The dynamics of loans appear to be sustained mainly by the component with a protracted maturity rather than that over the short term. In June 2002, in fact, the tendential growth rates of these components of bank loans came to 9.7% for the medium/long-term segment and just 1.1% for the short-term segment. The net non-performing loans/total loans ratio in April 2002 stood at a level of 2.08%, down with respect to the 2.67% reported in April 2001. This trend was also confirmed by the performance of the net non-performing loans/capital for

1 Source — Italian Bankers’ Association (ABI): monthly analysis on the total of the banks with short and medium/long-term deposits.

supervisory purposes ratio, which in April 2002 came to 11.4% down from 14.9% in the same period in the previous year. On the basis of ABI data, in June 2002 the average rate on loans remained at values similar to those of the previous month, standing at 5.78% as against 6.61% in June 2001, down 83 basis points. The average rate on deposits came to 1.47%, down 57 basis points compared with the figure at the end of June 2001. In June 2002, the differential between the average rate of interest-bearing funds denominated in Euro and the average rate on ordinary customer deposits in Euro for Italy came to 3.15 percentage points, down 13 basis points compared with the 3.28% in June 2001.

SIGNIFICANT EVENTS DURING THE SIX-MONTH PERIOD Shareholders, The first half of the 2002 accounting period, characterized by the persistence of the uncertainties concerning a significant recovery in the economic cycle both at national and international level, disclosed an evolution of the Bank’s operations which was essentially in line with expectations and with the trend seen in the previous year. In short, we can say that in the first six months of 2002 the balance sheet and income statement aggregates confirmed the positive growth trend; the net economic result for the period came to around Euro 7.9 million, up 7% compared with the figure of Euro 7.4 million during the first half of 2001. The main significant events which took place during the period under review concerned, in particular, the rationalization of the banking equity investments within the Credito Valtellinese Group, which Credito Artigiano belongs to, involving important repercussions on the equity investments held directly by the Bank. The most significant operation was without doubt that which concerned the restructuring of the Group equity investments in the Sicilian banks with the aim of creating a sole regional Bank with a widespread presence throughout the reference territory. During the month of June, the merger by incorporation of Banca Popolare Santa Venera S.p.A. and Leasingroup Sicilia S.p.A. within Banca Regionale Sant’Angelo S.p.A. was achieved (the latter two companies were subsidiaries of Credito Artigiano); the new entity created by means of this merger, in which the Bank holds 35.79% of the share capital, has adopted the name of Credito Siciliano S.p.A. and during July acquired all the branches of the other Sicilian bank belonging to the Group, Cassa San Giacomo. The new bank avails of a territorial network of over 130 branches (which together cover a significant share of the Sicilian market), deposits of over Euro 2,500 million, 900 employees, 200 thousand customers and equity of nearly Euro 180 million, figures which permit Credito Siciliano to be one of the leading banking entities in the region, capable of responding to the expectations expressed by the local communities and seeking the continuity of the values which have characterized the entrepreneurial traditions of the various banks from which it originates. Important synergies and significant economies of scale are expected from this operation; the new organization structure, in fact, makes it possible for Credito Siciliano to concentrate on the management of its reference market availing of the skills, professionalism and specialization of the various production companies operating within the Group (Bankadati, Stelline, Deltas and Bancaperta). During the course of the six-month period, transactions were also carried out concerning the equity investment in Banca dell’Artigianato e dell’Industria di Brescia; firstly, steps were taken to transfer 6,027 subordinated convertible bonds for a total nominal value of Euro 4,821,600 to Credito Valtellinese, as part of a wider corporate restructuring project at Group level which is leading to the progressive reduction of the direct interest holding of Credito Artigiano in B.A.I.; secondly, steps were taken to convert the second five-year tranche of the bonds remaining in the portfolio of the Bank and subsequently exercise the related

warrants. By means of these transactions, 234,112 new shares were subscribed, which brings the overall total in our possession to 2,384,138 shares equating to 48.85% of the entire share capital. By way of confirmation of the continual growth which has, for some years now, characterized the Bank, shareholders are informed that during this period as well, the number of employees in service has increased- from 788 as of 31 December 2001 to 798 as of 30 June 2002 – together with the number of branches - from 76 to 79 -, with new openings in Milan, Rome and Florence Campi Bisenzio. Before passing on to a more detailed examination of the balance sheet and income statement balances, it is necessary to state that, in contrast to the approach taken up until the Quarterly Report as of 31 March 2002, this Interim Report as of 30 June 2002 has been drawn up in “individual” form only and no longer in “consolidated” form as well, as a result of the changes already illustrated which took place in the ownership set-up of the equity investments Banca Regionale Sant’Angelo and Leasingroup Sicilia (now Credito Siciliano) and Banca dell’Artigianato e dell’Industria. The balance sheet and income statement formats as of 30 June 2002 of the two banks have been presented in an attachment to this document; the performance in the first half of the year can be taken from said formats. The “consolidated” position, which obviously also includes the data of the banks indicated above, is drawn up by the Parent Bank Credito Valtellinese. INFORMATION ON THE MAIN BALANCE SHEET AND INCOME STATEMENT BALANCES Balance sheet aggregates At the end of the first half of 2002, direct deposits from customers amounted to Euro 2,594 million, compared with Euro 2,223 million as of 30 June 2001 (+ 16.7%). The growth percentage presents a different trend according to the technical form which is taken into consideration: deposits on account, influenced by the high propensity towards liquidity of the customers associated with the performance of the financial markets, has increased by 24%, while repurchase agreements and bonds disclose more contained changes (respectively + 2.7% and + 6.4%).

INFORMATION ON THE MAIN BALANCE SHEET AND INCOME STATEMENT BALANCES Balance sheet aggregates At the end of the first half of 2002, direct deposits from customers amounted to Euro 2,594 million, compared with Euro 2,223 million as of 30 June 2001 (+ 16.7%). The growth percentage presents a different trend according to the technical form which is taken into consideration: deposits on account, influenced by the high propensity towards liquidity of the customers associated with the performance of the financial markets, has increased by 24%, while repurchase agreements and bonds disclose more contained changes (respectively + 2.7% and + 6.4%). Indirect deposits in total came to Euro 3,509 million as against Euro 3,543 million in June last year (- 1%). Managed savings, also inclusive of the insurance component, increased on an annual basis by 4.7% reaching Euro 1,516 million and represent 43.2% of the total of indirect deposits. The growth percentages of the entire area were negatively influenced by the performance of the markets which significantly penalized the valorization of customer portfolio whether they be held under custody or management. Total funding, obtained by adding together direct and indirect deposits without taking into consideration subordinated liabilities, came to Euro 6,104 million as against Euro 5,766 million as of 30 June 2001 involving growth which touched 6%. At the end of the first half of the year, loans to customers presented growth dynamics on an annual basis equating to 15.2%; as of 30 June 2002, the value achieved came to Euro 2,188 million, up by nearly Euro 300 million compared with the figure a year earlier. The portion deployed over the medium-long term amounted to around Euro 573 million as against Euro 506 million in June 2001 (+ 13%). The ratio “net non-performing loans/total loans” remained under the two percentage points and came to 1.83%. The change relating to the item equity investments (around Euro 40 million, equating to an increase of 27% compared with the figure in the same period in 2001) refers almost entirely to the acquisition of the second tranche of shares of Banca Regionale Sant’Angelo (now Credito Siciliano) which took place last December (the first tranche – for an approximate amount of Euro 112 million– was acquired in June of last year). During the first half of the year, a significant change took place in the accounts which make up the shareholders’ equity. At the beginning of the month of January, the conversion of the second tranche of the bond issued at the time of the Bank’s stockmarket listing, took place, leading to an increase in the number of shares in circulation from 103,211,920 to 112,918,320 with a consequent increase in the shareholders’ equity amounting Euro 24.3 million. The value of the shareholders’ equity as of 30 June 2002, inclusive of the entire result for the period, came to Euro 283.5 million.

Income statement During the first six months of 2002, the interest margin experienced an essentially stable evolution when compared with that registered in the same period in the previous year. The final balance as of 30 June 2002 reached Euro 40.8 million compared with Euro 40 million as of 30 June 2001; the percentage growth with respect to 12 months ago is equal to 1.9%. The slight drop in the spread applied to customers (around 7 hundredths of a point less when compared with the average values of the 1st six months of 2001), associated with the performance of market rates, was offset by the increase in assets dealt with. As far as the margin from services was concerned, obtained by adding together net commission and other revenues, during the first half of the year a positive change of 6.1% was reported; the total achieved rose from Euro 23.9 million as of 30 June 2001 to Euro 25.4 million in June 2002. The persistence of unsettling conditions on financial markets determined a further slowdown in commission deriving from the area of financial brokerage, with the exception of revenues from the insurance area; this decrease was offset by growth in commission from collection and payment services and that relating to the area of loans. The contribution towards the formation of the result for the period by the item profits (losses) on financial transactions was positive. The value achieved as of 30 June 2002 came to Euro 357 thousand compared with Euro 1.4 million as of 30 June 2001; this result equates to the algebraic sum of profit from securities trading (a little less than Euro 1.1 million), profit from exchange rate trading (nearly Euro 400 thousand) and the result from the valuation of the securities portfolio, negative for Euro 1.1 million. The sum total of all the components commented on at this point, in addition to dividends – whose value rose by 18% compared with 2001 (from Euro 1.2 million to Euro 1.4 million) -, make up the net interest and other banking income which came to Euro 68 million as against Euro 66.7 last year (+ 2%). Operating expenses, comprising administrative expenses and value adjustments on tangible and intangible fixed assets, totalled Euro 49.3 million as against Euro 48.8 million as of 30 June 2001 (+ 1%). In particular, payroll and related costs presented an increase of 4.5% with respect to the first half of the previous year, while other administrative expenses and value adjustments to tangible and intangible fixed assets fell respectively by 1.4% and 2.4% compared with 12 months ago. The gross operating result passed from Euro 17.9 million as of 30 June 2001 to Euro 18.7 million as of 30 June 2002, registering a percentage-based increase of 4.6%. Deducting from this result, the net adjustments on loans and provisions for risks and charges equating to Euro 5.3 million (compared with Euro 5.5 million in the first half of 2001), we obtain a result from operating activities of Euro 13.4 million as against Euro 12.3 million as of 30 June 2001, disclosing growth of 8.5%.

In conclusion, taking into consideration that the result from extraordinary activities was positive for an amount greater than Euro 800 thousand and that provisions covering the tax liability (Euro 6.3 million) should be deducted from the gross result, a net result amounting to Euro 7.9 million is obtained, compared with Euro 7.4 million 12 months ago (+ 7.1%). With regard to the foreseeable evolution of operations in the second half of the year, we believe the achievement of the balance sheet and income statement objectives in line with those achieved in the first part of the year, to be compatible.

OTHER INFORMATION During the first half of 2002, Credito Artigiano continued to keep up the usual transactions with the other banks and with the companies carrying out complementary activities which form part of the Credito Valtellinese Banking Group; these transactions, which tend to exclusively maximize the synergies and economies of scale in the Group are regulated at prices which reflect the performance of the market and always on the basis of specific contractual agreements. Shareholders are informed that during the period in question, no atypical or unusual transactions was carried out, with Group companies, related parties or otherwise. The balance sheet and income statement transactions with companies belonging to the Group are illustrated and analyzed in a specific attachment.

*****

During the period running from the date of closure of the six-month period and the date of the preparation of this report, no events of particular significance took place; operations continued according to the evolutive guidelines established by the Board of Directors and General Management. We believe it opportune to emphasise that, again within the sphere of the project for the rationalization of the Sicilian equity investments, the re-organization of Cassa San Giacomo is starting to take shape, both in terms of mission and organization. The project anticipates that said bank, despite maintaining the original banking nature and therefore remaining subject to the related discipline, will abandon the traditional activities of loan brokerage in order to take on the role of bank specialized in the management of loan risk and in the acquisition and management of the non-performing loans of the Group banks. The new mission also includes the performance – in favour of all the Group companies- of services of a lending and legal nature in the area of the problems of lending risk, legal assistance and consultancy and the administrative services associated with leasing activities. The operation also presupposes, among other things, measures for the adaptation of the equity structure of Cassa San Giacomo so as to render it suitable for the pursuit of its new corporate objectives. With a view to the above, the Board of Directors of the Bank during the meeting held last July, voted to increase its equity investment, by means of the acquisition of 1,820,690 purchase options from the Parent Bank Credito Valtellinese (for a total of Euro 5,735,174) and the subsequent subscription of the related share capital increase for 3,037,815 shares (for an amount of Euro 12,485,420). By means of an overall outlay, therefore, of Euro 18,220,594 Credito Artigiano will avail of an equity investment of 31.04%. The operation will be concluded by 30 September 2002.

*****

In conclusion, the Board of Directors have established that – for the sole purposes of the drawing up of the Capital for supervisory purposes – the net

profit as determined above and approved should be allocated, for a portion equating to 10%, to the Ordinary Reserve, reserving the residual portion for other purposes which the Board itself may establish.

EXPLANATORY NOTES

ACCOUNTING POLICIES This interim report has been drawn up in accordance with the provisions of Consob Resolution No. 11971 and subsequent amendments making reference to the accounting principles established by the Italian Accounting Profession in force in Italy and, in the absence thereof, those issued by the International Accounting Standards Committee (I.A.S.C.). The accounting policies adopted, consistent with those used by the Parent Bank Credito Valtellinese, are the same as those adopted for the preparation of the financial statements as of 31 December 2001 and the interim report as of 30 June 2001. Section 1 – Description of the accounting policies 1. Loans, guarantees and commitments Amounts due from banks Amounts due from banks are stated at their estimated realizable value, taking any forecast losses into account. Loans to customers The book value of loans, including total contractual and overdue interest accrued, coincides with their estimated realisable value. The latter value is calculated as total loans outstanding less expected losses of principal and interest, defined on the basis of a specific analysis of all the doubtful loans, as well as the inherent risk of loss, which could emerge in the future on other loans. The original value of the loans is reinstated in subsequent accounting periods should the reasons for any adjustments (writedowns) cease to apply. So-called “implicit loans” concerning leasing contracts are valued on a similar basis and against the related losses, estimated case-by-case or on a general basis according to the status of the loan, specific provisions are made to reserves for risks and charges (Item 80 c). Other amounts due Since no losses are anticipated for other amounts due, they are stated at nominal value which coincides with their estimated realisable value. Guarantees and commitments

Guarantees given are recorded at the total value of the commitments undertaken. Risks associated with guarantees given are covered by a specific provision to the reserve for risks and charges. Securities to be received are recorded on the basis of the settlement price; deposit and loan contracts on the basis of the amount to be disbursed. Other commitments and risks are recorded with reference to the overall value of the commitment undertaken. 2. Securities and off-balance sheet transactions (excluding foreign currency transactions) 2.1 Investment securities Investment securities are valued at their original purchase cost, and are written down to reflect any permanent losses in value. The difference between the book value and the redemption value of the unlisted securities which represent financial fixed assets, is recorded on a "pro rata temporis" basis in relation to the investment. Investment securities represented by bonds convertible into shares of strategic equity investments are stated at cost; on maturity their conversion into shares will be requested, thereby increasing the item equity investments by an identical amount. 2.2 Dealing securities Securities not held as financial fixed assets are valued as follows:

- securities listed on organised markets are valued at market value understood as the average of prices struck during the last month;

- unlisted securities are valued at the lower of average cost determined on a LIFO basis and their market value; the latter is considered to be equal to their estimated realisable value, calculated on the basis of the market prices of securities with similar characteristics listed on organised markets and the value obtained by discounting future financial flows generated by interest and principal using the appropriate market rate of interest. The solvency status of the issuer is also taken into account.

Writedowns made in prior accounting periods are eliminated, should the reasons for their application cease to apply. 2.3 Off-balance sheet transactions (excluding foreign currency transactions) Off and on balance sheet assets and liabilities are valued separately. Off-balance sheet transactions are valued as follows: “dealing” transactions, at market value if listed or at the lower of cost and market value if unlisted;

transactions “hedging” assets and liabilities on and off the balance sheet, on a consistent basis with the criteria adopted for the valuation of the assets and liabilities hedged. Related transactions are valued on a consistent basis. Contracts for the sale or purchase of securities and off-balance sheet transactions on securities are stated at the contract settlement price. The results of the valuation, carried out using the same criteria adopted for the dealing securities portfolio, are charged to the income statement under item 60 “Profits (losses) on financial transactions”. Deposit and lending contracts are stated on the basis of the amounts to be disbursed or received. 3. Equity investments Investments in Group companies are carried at cost, net of any prior writedowns. Other investments are carried at cost determined on a LIFO basis using annual layers. In certain cases they are stated at a lower value in order to take into account the related quotations in the last six months if listed, and if unlisted, any permanent losses in value. 4. Foreign currency assets and liabilities (including off-balance sheet transactions) Assets, liabilities and spot off-balance sheet transactions not yet settled in foreign currency are translated into Euro using the period end spot exchange rates; the effect of this valuation is reflected in the income statement. Costs and revenues in foreign currency are recorded at the exchange rate prevailing at the time they are recorded or, if they are accruing, at the period end exchange rate. Foreign currency derivatives “Trading” derivatives outstanding at the end of the year are valued at the market rates in force as of that date. The effect of these valuations is reflected in the income statement under item 60 “Profits (losses) on financial transactions. Hedging derivatives are valued on a consistent basis with the assets or liabilities hedged. Forward transactions Contracts for the purchase or sale of currency and off-balance sheet transactions on currency are translated into Euro using the period end spot exchange rates, given that they are linked to the spot transactions.

5. Tangible fixed assets Tangible fixed assets are stated at purchase cost, including related charges incurred, as adjusted upwards for some assets as a result of applying specific monetary revaluation laws. The book value of tangible fixed assets is stated net of accumulated depreciation. Maintenance expenditure which increases the value of assets is attributed to the assets to which it refers. Tangible fixed assets for corporate use are systematically depreciated each year on a straight-line basis based on economic-technical valuations regarding both the degree of use and the residual periods such assets are expected to benefit. Leased assets are stated in the financial statements at purchase cost plus any directly chargeable related costs. The related depreciation is calculated by determining the charges in each accounting period as shown in the financial repayment schedule. Assets pending financial lease, including property under construction or that being restructured, are stated at purchase cost plus related charges. No depreciation has been charged on these assets since they have not yet been leased. 6. Intangible fixed assets These are stated at purchase cost, including related charges. They are amortised systematically in relation to the period they are expected to benefit and precisely: • on the basis of an estimated 10-year amortisation plan as far as goodwill

paid in 1997 as part of the rationalisation of the Group sales network is concerned, a transaction implemented by means of the acquisition of branches;

• no longer than 5 years for other intangible fixed assets. 7. Other policies Repurchase agreements Repurchase agreements on securities linked to a commitment to repurchase are treated as genuine sales and repurchase transactions; The spot amounts received and paid out are treated as amounts payable and receivable. The cost of funding and income from lending, represented by coupons matured on securities, considering the amount of the issue spread, if applicable, and the difference between their spot and forward prices, are recorded on an accruals basis as interest in the income statement. Payables Payables are stated at face value.

Securities issued Certificates of deposit and bond issues are stated at their nominal value, with the exception of “zero coupon” bonds which are stated at their issue value uplifted by the capitalised interest. Accruals and deferrals These represent portions of costs and revenues, relating to two or more accounting periods, accrued in accordance with the matching principle. Provision for employee termination indemnities The reserve for employee termination indemnities covers the liability to all employees accrued in accordance with current legislation, collective labour contracts and supplementary in-house agreements. This liability is subject to revaluation. Reserves for risks and charges These comprise the following reserves: pensions and similar commitments, taxation, other reserves. The pension reserve represents the liability to all employees for supplementary pensions. It represents the actuarial liability estimated, at the balance sheet date, towards: . employees in service who, at the time of the establishment of the

endowment fund, opted for a life annuity of a fixed sum, as anticipated by previous legislation;

. retired employees and surviving relatives of ex-employees who receive deferred life annuities to be granted according to the provisions of the afore-mentioned regulations.

As from 1 January 2002, with the start-up of the activities of the Pension Fund for the employees of the Credito Valtellinese Group which has an independent legal status, the sum total of the individual positions of those enrolled in the Fund of Credito Artigiano employed after 28 April 1993 and of those employed before that date who opted to adhere to the new regulations stipulated in December 1994, characterized by a “endowment” system, has merged with the afore-mentioned Fund of the Group and therefore is no longer recorded in the balance sheet of the Bank. The taxation reserve comprises the provision for income taxes determined on the basis of a prudent estimate of the current and deferred tax liability. The effects of deferred taxation are determined in accordance with the income statement method. Assets for advance taxes paid are classified under item “130 – Other assets”, within the limits of that which is deemed recoverable with reasonable certainty. Liabilities for deferred taxes are recorded under item “80.b Taxation”. The

amount was calculated by taking into consideration the different types of taxation (IRAP and IRPEG – regional tax on business activities and corporate income tax) separately and applying the rates which will be in force in the

periods in which the timing differences are reversed, according to tax legislation current at the time of reckoning. Other reserves comprise: - the reserve for guarantees given which covers anticipated losses on

endorsement credits; - the reserve covering outstanding legal disputes covering any liabilities

which may emerge for legal action and action for revocation underway; - the reserve for miscellaneous charges which also includes provisions

against risks deriving from leasing transactions. Reserves for possible loan losses These comprise the provision made to cover the risk of loan loss which is merely potential, including therein that concerning default interest. Reserve for general banking risks This forms part of the equity reserves and covers the general business risk of the Group. Accounting methods Transactions with banks are recorded at the time they are carried out, with the exception of those relating to the remittance of bills, which are by contrast recorded at the time of their settlement. Transactions with customers where settlement is through current accounts are recognised when carried out, with the exception of those relating to certain particular categories (such as “portfolio”, “foreign” and “securities”), which are booked at the time of settlement. Interest income and expense, as well as other costs and revenues, are recorded on an accruals basis in accordance with the matching principle, with the appropriate identification of the related accruals and deferrals. Interest also comprises: - income and charges relating to off-balance sheet transactions intended to

hedge assets and liabilities that generate interest; - income and charges relating to sale and repurchase transactions

involving the obligation to repurchase by the transferee. Section 2 – Tax adjustments and provisions 2.1 Adjustments made solely for tax purposes No value adjustments were made solely for tax purposes. 2.2 Provisions made solely for tax purposes The effects on the income statement and balance sheet of provisions made solely for tax purposes are shown below, net of the tax saving.

*****

With reference to Consob recommendation No. 1011405 dated 16 February 2001, detailed information is provided in relation to certain events which have affected the banking system and which take on particular importance in terms of information. The first concerns the possible effects of the provision contained in Decree Law 394 dated 29 December 2000 on the subject of non-assisted fixed-rate mortgage loans, issued in relation to the contents of sentence No. 14899/2000 of the Supreme Court. As already illustrated in the notes commenting on the financial statements as of 31 December 2000, it is confirmed that said phenomenon for the Bank can be considered to be negligible. As far as the matter of “anatocism” - the capitalisation of interest - is concerned, or rather the illegitimacy of the clause concerning the production of interest on accrued interest and the consequent temporary alignment between the capitalisation of interest income and that of interest expense, applied as a result of the matters established by Legislative Decree 344 dated

Provisions made solely for tax purposes

Change in reserve (Law 335/95) (1)

Effect on net profit for

i d

Effect on shareholde’ equit

Opening 112 - Utilization in the income statement for h i d

- - + Provisions to the income statement for the period - -

Closing - 112

(1) The table shows the tax liability associated with this

Reserve for possible loan losses – Portion concerning

Effect on net profit for the

i d

Effect oshareholde’ equit

Opening b l

2.193 - Utilization in the income statement d i h i d

- 18 - 18 - Other decreases - 211 - 211 + Provisions to the income statement for the period 258 258 + Other i

-Closing 29 2.222

(2) The changes in the reserve are indicated in the table

30/06/2002

The effects on the income statement and balance sheet of provisions made solely for tax purposes are shown below.

30/06/2002

4 August 1999, we can state as follows. As from June 2000, the bank has taken steps to capitalise interest income and expense with the same timing recurrence, and precisely on a quarterly basis. Also taking into consideration the subsequent decrees of the Supreme Court, on the subject of the production of interest on interest, as far as any requests relating to previous periods are concerned, to date we have received solely letters of “complaint” which, with the exception of just a few cases, have not given rise to legal action. Given the indeterminacy of the matter and above all else the impossibility under current conditions of quantifying any risks to the charge of the Bank – not even in the cases of the “procedures” indicated above - it was considered advisable not to make any specific provision. In conclusion, shareholders are informed that the Bank has not been affected by the other two situations indicated in the Consob recommendation regarding tax concessions anticipated by Articles 22 and 23 of Legislative Decree 153 dated 17 May 1999 and the possible re-negotiation of assisted building loans.

ATTACHMENTS TO THE INTERIM REPORT

INFORMATION ON THE BALANCE SHEET

1 - Distribution of loans, by category

Loans to customers (asset item 40)

a) Governments 304 0,01% 105 0,00%b) other public entities 83 0,00% 818 0,04%c) non-financial businesses 1.490.687 68,14% 1.430.014 65,95%d) financial institutions 265.555 12,14% 321.225 14,82%e) personal businesses 69.395 3,17% 68.953 3,18%f) other operators 361.804 16,54% 347.107 16,01%Total 2.187.828 100,00% 2.168.222 100,00%

2 - Loans to resident non-financial and personal businesses

a) Commerce, salvage and repairs 392.552 25,25% 424.508 28,34%b) Other services for sale 382.174 24,58% 338.872 22,62%c) Building and public works 152.318 9,80% 146.786 9,80%d) Textiles, leather and footwear, apparel 70.886 4,56% 64.695 4,32%e) Chemical products 70.227 4,52% 75.863 5,06%f) Other 486.593 31,30% 447.090 29,85%Total 1.554.750 100,00% 1.497.814 100,00%

3 - Guarantees given (item 10 of the guarantees and commitments)

a) Governments - 0,00% - 0,00%b) other public entities 1.799 0,84% 1.563 0,78%c) banks 1.767 0,82% 1.390 0,69%d) non-financial businesses 146.950 68,57% 144.693 71,91%e) financial institutions 40.742 19,01% 33.125 16,46%f) personal businesses 2.370 1,11% 2.403 1,19%g) other operators 20.666 9,64% 18.032 8,96%Total 214.294 100,00% 201.206 100,00%

4 - Significant exposure

a) Amount 50.823 127.976b) Number 1 3

5 - Maturities of assets and liabilities

Items/Residual duration

Fixed rate Indexed rate Fixed rate Indexed

1.326.000 781.294 649.826 140.544 774.638 34.959 202.890 45.470 - 9.747 13.159 25.253 37.345 447 10.549 -

386.901 67.142 434.918 - - - - 4.060 917.537 630.453 103.602 39.808 298.433 27.804 128.780 41.410

44 15.993 83.095 8.799 336.251 1.572 63.137 - 21.518 57.959 15.052 66.684 102.609 5.136 424 -

2.039.174 734.751 617.383 120.135 398.779 34.494 1.757 191 338.915 173.589 431.686 11.103 136 1.157 - -

1.649.535 323.712 32.420 - - - - -

- 64.706 101.360 88.074 271.350 23.990 1.364 - 29 5.285 1.371 619 121 - - -

30.112 - - - - - - - - - - - 126.646 - - -

20.583 167.459 50.546 20.339 526 9.347 393 191

This table, together with those in points 5, 6 and 9, indicate a total of loans to customers which differs from item 40 of the balance sheet format for an amount totalling Euro 24 thousand, because financial lease operations are also included in said total.

31/12/200130/06/2002

30/06/2002

31/12/2001

30/06/2002 31/12/2001

30/06/2002 31/12/2001

30/06/2002

2. Liabilities

Specified maturityUnspecified maturity

On demand Up to 3 monthsBetween 3 and 12

monthsBetween 1 and 5 years Beyond 5 years

1.2 Due from banks1.3 Loans to customers1.4 Bonds and other debt securities1.5 Off-balance sheet transactions

The schedule shows an imbalance between short-term assets and liabilities; this should be viewed, however, in light of the stability of customer deposits and the degree of liquidity on non-currentassets.

2.2 Due to customers2.1 Due to banks

1. Assets1.1 Treasury bills eligible for refinancing

2.4 Subordinated liabilities2.5 Off-balance sheet transactions

2.3 Securities issued: - bonds - certificates of deposit - other securities

35

Items/Residual duration

Fixed rate Indexed rate Fixed rate Indexed

1.244.164 1.305.530 222.764 209.686 737.142 36.934 165.659 42.902 1.041 16.195 8.653 48.472 45.830 796 10.376 -

299.526 529.494 38.269 - - - - 4.386 929.823 632.939 92.304 37.414 282.619 28.483 126.125 38.516

2.548 45.034 40.063 7.813 407.766 1.660 28.954 - 11.226 81.868 43.475 115.987 927 5.995 204 -

1.923.602 1.117.508 285.452 123.991 413.811 34.556 1.102 6.490 369.356 611.352 78.428 11.109 206 1.163 - -

1.520.546 338.500 7.519 - - - - -

- 22.104 128.523 86.173 260.692 24.030 956 - 176 5.884 968 697 33 - - -

26.769 - - - - - - - - - - - 151.646 - - -

6.755 139.668 70.014 26.012 1.234 9.363 146 6.490

6 - Geographic distribution of assets and liabilities

Items/CountriesItaly Other EU countries Other countries

1. Assets 3.657.324 78.213 17.0851.1 Due from banks 883.615 1.821 7.5861.2 Loans to customers 2.177.624 5.594 4.6091.3 Securities 596.085 70.798 4.8902. Liabilities 3.639.653 2.819 34.8062.1 Due to banks 926.702 666 29.2172.2 Due to customers 1.997.925 2.153 5.5892.3 Securities issued 588.380 - -2.4 Other accounts 126.646 - -3. Guarantees and commitments 309.200 13.096 551

Items/CountriesItaly Other EU countries Other countries

1. Assets 3.648.974 50.251 47.9491.1 Due from banks 856.403 2.914 12.3571.2 Loans to customers 2.162.405 1.205 4.6131.3 Securities 630.166 46.132 30.9792. Liabilities 3.596.062 5.166 45.6022.1 Due to banks 1.031.193 452 39.9692.2 Due to customers 1.856.218 4.714 5.6332.3 Securities issued 557.005 - -2.4 Other accounts 151.646 - -3. Guarantees and commitments 303.998 13.223 290

7 - Assets and liabilities denominated in foreign currencies

7.1 Assets

76.592 93.124a) due from banks 23.617 13.891b) loans to customers 49.407 49.909c) securities 2.526 28.480d) equity investments - -e) other accounts 1.042 844

7.2 Liabilities

71.017 97.711a) due to banks 53.197 78.468b) due to customers 17.820 19.243c) securities issued - -d) other accounts - -

1.1 Treasury bills eligible for refinancing

2.5 Off-balance sheet transactions

2.1 Due to banks2. Liabilities

Specified maturity

On demandBeyond 5 yearsBetween 1 and 5 years

2.4 Subordinated liabilities

2.2 Due to customers

Between 3 and 12 monthsUp to 3 months

1. Assets

31/12/2001

Unspecified maturity

30/06/2002 31/12/2001

1.2 Due from banks1.3 Loans to customers1.4 Bonds and other debt securities1.5 Off-balance sheet transactions

2.3 Securities issued: - bonds - certificates of deposit - other securities

31/12/2001

30/06/2002

30/06/2002 31/12/2001

45

8 - Amounts due from banks

8.1 Detail of amounts due from banks

Gross valueTotal value

adjustments Net value Gross value Total value adjustments Net value

A. Doubtful loans 100 - 30 70 143 - 43 100A.1. Non-performing loans - - - - - -A.2. Problem loans - - - - - -A.3. Loans being restructured - - - - - -A.4. Restructured loans - - - - - -A.5. Unsecured loans subject to country risk 100 - 30 70 143 - 43 100

B. Performing loans 892.951 - 892.951 871.574 - 871.574Total 893.051 - 30 893.021 871.717 - 43 871.674

8.2 Analysis of doubtful accounts due from banks

Non-performing loans Problem loans

Loans being restructured

Restructured loans

Unsecured loans subject to country risk Total

A. - - - - 143 143A.1 - - - - - -B. - - - - - -B.1 - - - - - -B.2 - - - - - -B.3 - - - - - -B.4 - - - - - -C. - - - - - 43 - 43C.1 - - - - - -C.2 - - - - - -C.3 - - - - - 43 - 43C.4 - - - - - -C.5 - - - - - -C.6 - - - - - -D. - - - - 100 100D.1 - - - - - -

8.3 Analysis of total value adjustments on amounts due from banks

Non-performing

loans Problem loansLoans being restructured

Restructured loans

Unsecured loans subject to

country risk Performing loans TotalA.

- - - - 43 - 43A.1 - - - - - - -B. - - - - - - -B.1 - - - - - - -B.1.1 - - - - - - -B.2 - - - - - - -B.3

- - - - - - -B.4 - - - - - - -C. - - - - - 13 - - 13C.1 - - - - - 13 - - 13C.1.1 - - - - - - -C.2 - - - - - - -C.2.1 - - - - - - -C.3 - - - - - - -C.4

- - - - - - -C.5 - - - - - - -D.

- - - - 30 - 30D.1 - - - - - - -

9 - Loans to customers

Class/Categories

Opening gross value as of 1/1/2001including: default interestIncreasestransfers from performing loans

use of reserve for possible loan losses

other increases

1st half 2002

1st half 2002

Opening balance of total adjustments as of1/1/2001

transfers from other categories of loans

including: default interestIncreasesvalue adjustmentsincluding: default interest

Categories/Values

30/06/2002 31/12/2001

Class/Categories

default interesttransfers from other doubtful loan categoriesother increasesDecreasestransfers to performing loanswrite-offscollectionsloans realized through disposalstransfers to other doubtful loan categoriesother decreasesClosing gross value as of 30/6/2002including: default interest

Decreaseswritebacks from valuationsincluding: default interestwritebacks from collectionsincluding: default interestwrite-offs

transfers to other categories of loansother decreasesClosing balance of total adjustments as of30/6/2002including: default interest

55

9.1 Detail of cash loans to customers

Gross valueTotal value

adjustments Net value Gross value Total value adjustments Net value

A. Doubtful loans 141.147 - 80.118 61.029 135.557 - 76.902 58.655A.1. Non-performing loans 115.679 - 75.637 40.042 108.866 - 72.312 36.554A.2. Problem loans 23.641 - 4.366 19.275 24.849 - 4.474 20.375A.3. Loans being restructured - - - - - -A.4. Restructured loans 1.733 - 87 1.646 1.745 - 87 1.658A.5. Unsecured loans subject to country risk 94 - 28 66 97 - 29 68

B. Performing loans 2.136.230 - 9.431 2.126.799 2.118.872 - 9.303 2.109.569Total 2.277.377 - 89.549 2.187.828 2.254.429 - 86.205 2.168.224

9.2 Analysis of doubtful loans to customers

Non-performing loans Problem loans

Loans being restructured

Restructured loans

Unsecured loans subject to country risk Total

A. 108.866 24.849 - 1.745 97 135.557A.1 6.843 - - - - 6.843B. 11.371 5.025 - - 3 16.399B.1 7.130 4.565 - - - 11.695B.2 495 - - - - 495B.3 2.492 - - - - 2.492B.4 1.254 460 - - 3 1.717C. - 4.559 - 6.233 - - 12 - 6 - 10.810C.1 - - 16 - - - - 16C.2 - 202 - 834 - - - - 1.036C.3 - 4.056 - 2.891 - - 12 - 6 - 6.965C.4 - - - - - -C.5 - - 2.492 - - - - 2.492C.6 - 301 - - - - - 301D. 115.679 23.641 - 1.733 94 141.147D.1 6.987 - - - - 6.987

9.3 Analysis of total value adjustments on loans to customers

Non-performing

loans Problem loansLoans being restructured

Restructured loans

Unsecured loans subject to

country risk Performing loans TotalA.

72.312 4.474 - 87 29 9.303 86.205A.1 4.649 - - - - - 4.649B. 4.338 1.437 - - 1 151 5.927B.1 3.754 1.437 - - 1 151 5.343B.1.1 208 - - - - - 208B.2 18 - - - - - 18B.3

566 - - - - - 566B.4 - - - - - - -C. - 1.013 - 1.545 - - 1 - 2 - 23 - 2.584C.1 - 359 - 96 - - 1 - 2 - - 458C.1.1 - - - - - - -C.2 - 452 - 53 - - - - - 505C.2.1 - 93 - - - - - - 93C.3 - 202 - 830 - - - - 23 - 1.055C.4

- - 566 - - - - - 566C.5 - - - - - - -D. Closing balance of total

adjustments as of 30/6/2002 75.637 4.366 - 87 28 9.431 89.549D.1 4.765 - - - - - 4.765

1.

2.3.

4.

10 - Secured loans to customers

- other loans were subject to general writedowns based on historical-statistical analysis in order to reflect possible future losses which could emerge during the normal course of lending;

- loans relating to leasing contracts were valued taking into account the repayments made and the redemption value of the assets being leased.

30/06/2002 31/12/2001

Estimates of losses on loans to customers took account of the solvency of the borrowers, the economic trend for similar loan categories, as well as the difficulties in servicing the debt.

In particular:- non-performing loans and problem loans were valued case-by-case defining the estimated extent of the loss both in terms of interest and principal for each position;

- loans granted to individuals resident in countries at risk were written down on a general basis;

write-offs

transfers to other categories of loansother decreases

including: default interest

writebacks from valuationsincluding: default interestwritebacks from collectionsincluding: default interest

use of reserve for possible loan losses

transfers from other categories of loansother increasesDecreases

including: default interestIncreasesvalue adjustmentsincluding: default interest

including: default interest

1st half 2002

Class/CategoriesOpening balance of total adjustments as of1/1/2001

loans realized through disposalstransfers to other doubtful loan categoriesother decreasesClosing gross value as of 30/6/2002

Decreasestransfers to performing loanswrite-offscollections

transfers from performing loansdefault interesttransfers from other doubtful loan categoriesother increases

Opening gross value as of 1/1/2001including: default interestIncreases

Class/Categories

1st half 2002

Categories/Values

30/06/2002 31/12/2001

65

a) Loans secured by mortgages 432.838 408.274b) Loans secured by pledges on: 126.170 124.891

1. cash deposits 1.946 3.3642. securities 124.163 121.4153. other assets 61 112

c) Loans secured by guarantees from: 502.731 479.4821. Governments - -2. other public entities - -3. Banks 5.353 4.1734. Other operators 497.378 475.309

Total secured loans 1.061.739 1.012.647

11 - Amounts due from central banks (included in asset item 30)

4.060 62.801

12 - Composition of securities

Own securities are classified in the financial statements as follows

a) Investment securities 2.195 7.748b) Dealing securities 669.579 699.529

13 - Guarantees and commitments

13.1 Guarantees (item 10 of guarantees and commitments)

a) Commercial guarantees 177.269 165.040b) Financial guarantees 37.025 36.166c) Assets lodged in guarantee - -Total 214.294 201.206

13.2 Commitments (item 20 of guarantees and commitments)

a) commitments to grant finance (certain to be called on) 20.675 24.033b) commitments to grant finance (not certain to be called on) 87.879 92.272Total 108.554 116.305

14 - Undrawn lines of credit

15 - Forward transactions

'The balance indicated represents the amount deposited with the Bank of Italy as part of the account in which the Compulsory Reserve is regulated, which as of 30 June 2002 was partly "freed-up" asanticipated by current legislation.

As of the date of this Interim Report there were no undrawn margins on irrevocable lines of credit.

30/06/2002

30/06/2002

31/12/200130/06/2002

31/12/2001

31/12/2001

31/12/200130/06/2002

Customer loans in the above table include those covered in full by guarantees and the relevant portion of those that are partly covered.

30/06/2002 31/12/2001

75

Type of transactions Hedging Dealing Other Hedging Dealing Other

1. Purchase/sale of1.1 Securities

- purchases - 6.704 - - 12.821 -- sales - 7.854 - - 18.229 -

1.2 Currency- currency against currency - 31 - - -- purchases against Euro - 99.036 - - 35.856 -- sales against Euro - 99.201 - - 32.233 -

2. Deposits and loans- to be made - - 13.971 - - 11.225- to be received - - 5.876 - - 6.755

3. Derivative contracts3.1 With exchange of capital

a) securities - purchases 2.980 - - 2.980 - - - sales 2.980 - - 2.980 - -b) currency - currency against currency - - - - - - - purchases against Euro - - - - - - sales against Euro - - - - -c) other instruments - purchases - - - - - - - sales - - - - - -

3.2 Without exchange of capitala) currency - currency against currency - - - - - - - purchases against Euro - - - - - - - sales against Euro - - - - - -b) other instruments - purchases 79.860 100.000 - 129.860 - - - sales 41.283 125.000 - 135.762 - -

16 - Amounts due to and from Group companies

16.1 Assets

a) due from banks 866.599 776.457 of which: - subordinated -

b) due from financial institutions - of which: - subordinated -

c) due from other customers 4.682 7.481 of which: - subordinated -

d) bonds and other debt securities 115.215 120.626 of which: - subordinated 10.443 17.027

16.2 Liabilities

1.098.180 1.215.024a) due to banks 921.224 1.026.641b) due to financial institutions - -c) due to other customers 178 3d) securities issued 125.024 125.081e) subordinated liabilities 51.754 63.300

16.3 Guarantees and commitments

20.634 28.421a) guarantees given 871 1.202b) commitments 19.763 27.219

17 - Portfolio management

Assets managed on behalf of customers, entirely invested in securities 1.125.349 1.101.654

31/12/200130/06/2002

30/06/2002 31/12/2001

30/06/2002 31/12/2001

30/06/2002 31/12/2001

85

18 - Capital and other prudent requirements for supervisory purposes

Category/ValueA. Capital for supervisory purposesA.1 Tier 1 capital 232.161 205.257A.2 Tier 2 capital 122.437 129.336A.3 Elements to be deducted - -A.4 Capital for supervisory purposes 354.598 334.593B. Other prudent requirements for supervisory purposesB.1 Lending risk 179.432 177.373B.2 Market risk 5.159 7.933

including:- risks on dealing portfolio 5.159 7.933- exchange risks - -

B.3 Other prudent requirements for supervisory purposes - -B.4 Total prudent requirements 184.591 185.306C. Risk assets and capital ratiosC.1 Risk-weighted assets (*) 2.637.014 2.647.229C.2 Tier 1 capital/Risk weighted assets 8,80% 7,75%C.3 Capital for supervisory purposes/Risk-weighted assets 13,45% 12,64%

Note (*): Total prudent requirements multiplied by the reciprocal of the compulsory minimum capital ratio for lending risk.The compulsory minimum capital ratio for lending risks prescribed for banks belonging to a banking group is 7%.

31/12/200130/06/2002

95

INFORMATION ON THE INCOME STATEMENT

1 - Analysis of interest

1.1 Interest income and similar revenues (item 10 of the income statement)

1st half 2002 1st half 2001 2001

a) on amounts due from banks 15.639 18.560 35.108including:- deposits with central banks 668 694 1.480

b) on loans to customers 60.278 60.844 124.056including:- loans using public funds administered - - -

c) on debt securities 13.131 18.760 34.597d) other interest income - 91 90e) net differential on hedging transactions - - -Total 89.048 98.255 193.851

1.2 Interest expense and similar charges (item 20 of the income statement)

1st half 2002 1st half 2001 2001

a) on amounts due to banks 16.240 17.399 36.988b) on amounts due to customers 19.694 24.914 45.429c) on securities issued 11.641 15.314 29.770

including -- on certificates of deposit 102 112 219

d) on public funds administered - - -e) on subordinated liabilities - - -f) net differential on hedging transactions 637 540 1.442Total 48.212 58.168 113.629

2 - Analysis of interest

2.1 Interest income and similar revenues on foreign currency assets

1st half 2002 1st half 2001 2001

3.061 3.373 7.122

2.2 Interest expense and similar charges on foreign currency liabilities

1st half 2002 1st half 2001 2001

1.469 2.003 3.634

3 - Commission

3.1 Analysis of item 40 "Commission income"

1st half 2002 1st half 2001 2001

a) Guarantees given 923 611 1.287b) Derivatives on loans - - -c) Management, dealing and consultancy services 10.496 11.000 21.644

1. Securities dealing - 1 12. Currency dealing 1.203 1.173 2.3653. Portfolio management 4.933 5.499 10.695

3.1 individual 4.933 5.499 10.6953.2 collective - - -

4. Custody and administration of securities 196 249 4315. Depositary bank - - -6. Placement of securities 2.349 2.603 5.0097. Acceptance of instructions 726 1.129 2.0488. Consultancy services - - -9. Distribution of services to third parties 1.089 345 1.095

9.1 portfolio management - - -a) individual - - -b) collective - - -

9.2 Insurance products 1.089 345 1.0959.3 Other products - - -

d) Payment and collection services 5.670 3.780 11.136e) Servicing services for securitization transactions - - -f) Tax collection services - - -g) Other services 6.369 6.596 10.658Total 23.458 21.987 44.725

105

Detail of item 40 "Commission income": Distribution channels of products and services

1st half 2002 1st half 2001 2001

a) at Bank branches 8.371 8.447 16.7991. Portfolio management 4.933 5.499 10.6952. Placement of securities 2.349 2.603 5.0093. Third party products and services 1.089 345 1.095

b) outside Bank branches - - -1. Portfolio management - - -2. Placement of securities - - -3. Third party products and services - - -

Total 8.371 8.447 16.799

3.2 Analysis of item 50 "Commission expense"

1st half 2002 1st half 2001 2001

a) Guarantees received - - -b) Derivatives on loans - - -c) Management and dealing services: 180 225 462

1. Securities dealing 25 30 592. Currency dealing 59 92 2053. Portfolio management - - -

3.1 own portfolio - - -3.2 third party portfolio - - -

4. Custody and administration of securities 96 102 1985. Placement of securities - - -6. Offer outside banking premises of securities, products and services - - -

d) Payment and collection services 1.559 1.335 3.049e) Other services 4.032 3.899 7.785Total 5.771 5.458 11.296

4 - Analysis of profits (losses) on financial transactions of the income statement

4.1 Securities transactions

1st half 2002 1st half 2001 2001

Revaluations 725 1.495 2.861Writedowns - 1.825 - 2.772 - 2.660Other gains/losses 1.061 1.926 2.809Total - 39 649 3.010

4.2 Currency transactions

1st half 2002 1st half 2001 2001

Other gains/losses 396 818 861

4.3 Other transactions

1st half 2002 1st half 2001 2001

Revaluations - - -Writedowns - - -Other profits/losses - 1 1Total - 1 1

115

5 - Extraordinary income and charges

5.1 Extraordinary income

1st half 2002 1st half 2001 2001

Gains on the disposal of business activities - - -Out-of-period income 292 290 1.290Gains on the disposal of: - tangible and intangible fixed assets 11 19 32 - equity investments 39 - - - securities 1.098 - -Taxation - - -Total 1.440 309 1.322

5.2 Extraordinary charges

1st half 2002 1st half 2001 2001

Out-of-period expense 600 242 434Losses relating to measures taken for the Interbank Guarantee Fund - - -Losses on the disposal of: - tangible and intangible fixed assets - 3 29 - equity investments - - - - securities - - -Taxation - - -Total 600 245 463

OTHER INFORMATION

1 - Average number of employees

a) Executives 4 7b) Officials 230 223

b) 3rd and 4th level management 106 97b) 1st and 2nd level management 124 126

c) Other staff 559 531Total 793 761

2 - Number of operative branches

79 76

30/06/2002 31/12/2001

1st half 2002 1st half 2001

125

Statement of changes in shareholders' equity

Share capital Share premium reserve

Legal reserve Reserve for ownshares

Statutory reserves Retained profit (accumulated

losses)

103.212 56.380 6.930 - 39.141 21Allocation of net profit

- provision pursuant to Legislative Decree 153 dated 17.5.1999 - - - - - -- allocation to other reserves - - 1.466 - - 4- charity - - - - - -- dividends paid - - - - - -- coverage of losses - - - - - -Share capital increase

- bonus - - - - - -- for conversion of bonds - - - - - -- for conversion of subordinated loan 9.706 14.560 - - - -- against payment - - - - - -Decreases in capital:

- settlement of losses - - - - - -- reimbursements to shareholders - - - - - -Other changes:

- payment of dividends on profit being formed - - - - - -- change in liability reserves - - - - - -- change in negative differences - - - - - -- movements between reserves - - - - - -- other changes - - - - - -- provision to reserve for general banking risks - - - - - -- provision to reserve Law 335 dated 8.8.1995 - - - - - -Result for the period - - - - - -

112.918 70.940 8.396 - 39.141 25

Reserve for general banking

risks

Other reserves Revaluation reserves

Results for the period Total shareholders'

equity 17.043 1.387 25.791 14.655 264.560

Allocation of net profit

- provision pursuant to Legislative Decree 153 dated 17.5.1999 - - - - -- allocation to other reserves - - - - 1.470 -- charity - - - - 500 - 500- dividends paid - - - - 12.685 - 12.685- coverage of losses - - - - -Share capital increase

- bonus - - - - -- for conversion of bonds - - - - -- for conversion of subordinated loan - - - - 24.266- against payment - - - - -Decreases in capital:

- settlement of losses - - - - -- reimbursements to shareholders - - - - -Other changes:

- payment of dividends on profit being formed - - - - -- change in liability reserves - - - - -- change in negative differences - - - - -- movements between reserves - - - - -- other changes - - - - -- provision to reserve for general banking risks - - - - -- provision to reserve Law 335 dated 8.8.1995 - - - - -Result for the period - - - 7.914 7.914

17.043 1.387 25.791 7.914 283.555

31 December 2001

30 June 2002

30 June 2002

31 December 2001

PARENT COMPANY

COMPANIES SUBJECT TO THE CONTROL OF THE PARENT COMPANY TOTAL

a) ASSETS1. Due from banks 613.037 253.562 866.599Credito Valtellinese 613.037Banca dell'Arigiananto e dell'Industria 15.638Banca Popolare di Rho 5.047Credito Siciliano 216.264Bancaperta 16.6132. Loans to other customers 0 4.682 4.682Stelline S.I. Spa 4.6823. Bonds and other debt securities 166 115.049 115.215Credito Valtellinese 166Banca dell'Arigiananto e dell'Industria 6.801Bancaperta 108.248

b) LIABILITIES1. Due to banks 906.591 14.633 921.224Credito Valtellinese 906.591Banca dell'Arigiananto e dell'Industria 321Credito SicilianoBanca Popolare di Rho 4Bancaperta 11.177Cassa San Giacomo 3.1312. Due to customers 0 178 178Stelline S.I. Spa 1783. Securities issued 124.926 98 125.024Bancaperta 98Credito Valtellinese 124.9264. Subordinated liabilities 51.754 0 51.754Credito Valtellinese 51.754

c) GUARANTEES AND COMMITMENTS1. Guarantees given 812 59 871Credito Valtellinese 812Banca dell'Arigiananto e dell'IndustriaBanca Popolare di RhoCredito SicilianoStelline S.I. Spa 592. Commitments 0 19.763 19.763Credito ValtellineseBancaperta 19.763

AMOUNTS DUE TO AND FROM GROUP COMPANIES(amounts in thousands of Euro)

PARENT COMPANY

COMPANIES SUBJECT TO THE CONTROL OF THE PARENT COMPANY TOTAL

10. Interest income and similar revenues 10.828 6.177 17.005Credito Valtellinese 10.828Banca dell'Arigiananto e dell'Industria 375Banca Popolare di Rho 76Bancaperta 3.226Credito Siciliano 2.387Stelline S.I. Spa 11320. Interest expense and similar charges -18.118 -970 -19.088Credito Valtellinese -18.118Bancaperta -908Cassa San Giacomo -60Stelline S.I. Spa -230. Dividends and other revenues 0 1.360 1.360Bancaperta 1.359Cassa San Giacomo 140. Commission income 2 1.524 1.526Credito Valtellinese 2Banca dell'Arigiananto e dell'Industria 31Bancaperta 1.467Banca Popolare di Rho 26Stelline S.I. Spa50. Commission expense 0 -3.921 -3.921Credito ValtellineseBanca dell'Arigiananto e dell'Industria -3Bancaperta -3.92160. Profits (losses) on financial transactio -46 0 -46Credito Valtellinese -4670. Other operating income 86 1.767 1.853Credito Valtellinese 86Banca dell'Arigiananto e dell'Industria 25Banca Popolare di Rho 109Bancaperta 609Bankadati S.I. 721Stelline S.I. Spa 114Deltas S.p.A 18980. Administrative expenses -660 -9.582 -10.242Credito Valtellinese -660Bancaperta -797Bankadati S.I. -6.358Stelline S.I. Spa -435Deltas S.p.A -1.983Credito Siciliano -9

ECONOMIC TRANSACTIONS WITH GROUP COMPANIES(amounts in thousands of Euro)

SIGNIFICANT INVESTMENTSARTICLE 120.4 - LEGISLATIVE DECREE 58/98

ARTICLES 125/126 - CONSOB RESOLUTION No. 11971 /1999

COMPANY HOLDING INVESTMENT CLAIM TYPE OFRELATIONSHIP Company in which investment is held Registered office Total number of Unit value of No. of shares % % total with

(*) shares/quotas shares/quotas held voting rights

Credito Artigiano S.p.a. Investment E Credito Siciliano S.p.A. Palermo 9.582.557 10,00 3.429.820 35,79% 35,79%

Credito Artigiano S.p.a. Investment E Banca dell'Artigianato e dell'Industria S.p.A. Brescia 4.880.448 5,16 2.384.138 48,85% 48,85%

Credito Artigiano S.p.a. Investment E Bancaperta S.p.a. Sondrio 2.340.000 20,00 572.000 24,44% 24,44%

Credito Artigiano S.p.a. Investment E Bankadati Servizi Informatici S.p.a. Sondrio 500.000 5,00 100.000 20,00% 20,00%

Credito Artigiano S.p.a. Investment E Deltas S.p.a. Sondrio 20.000 5,00 10.000 50,00% 50,00%

Credito Artigiano S.p.a. Investment E Stelline Servizi Immobiliari S.p.a. Sondrio 500.000 5,00 100.000 20,00% 20,00%

Credito Artigiano S.p.a. Investment E Esa Elettronica S.p.a. Milan 3.202.000 1,00 480.300 15,00% 15,00%

Credito Artigiano S.p.a. Pledge A La Mola S.r.l. Milan 2.522.432 0,52 2.522.432 100,00% 100,00%

Credito Artigiano S.p.a. Pledge A Nike S.r.l. Binasco (MI) 95.000 0,52 95.000 100,00% 100,00%

* A = Legal control E = non-controlling

INFORMATION ON INVESTMENTINFORMATION ON COMPANY IN WHICH INVESTMENT IS HELD

CREDITO SICILIANO

Balance Sheet and

Income Statement as of

30 June 2002

Assets

10 Cash and deposits with central banks and post offices 25.099.938 19.373.607 12.697.332


30 Due from banks: 596.144.956 589.996.502 360.428.969 a) repayable on demand 394.284.484 242.301.780 192.072.144

b) other 201.860.472 347.694.722 168.356.825

40 Loans to customers 1.111.372.226 1.057.231.672 1.018.357.582

50 Bonds and other debt securities: 167.747.507 196.422.720 199.432.355 a) issued by public bodies 89.441.768 85.000.820 111.686.457

b) issued by banks: 76.082.056 109.428.737 86.751.205 including: - own securities 2.504.197 3.926.225 6.573.139 c) issued by financial institutions 456.856 588.467 75.878 including: - own securities - - - d) other issuers 1.766.827 1.404.696 918.815

60 Shares, quotas and other equities 42.970.001 20.965.470 31.116.659

70 Equity investments 1.112.601 1.112.601 1.191.697

80 Investments in Group companies 1.394.523 1.394.523 1.394.523

90 Intangible fixed assets 11.027.445 11.278.101 5.776.955including: - start-up costs 579.770 1.612.684 - - goodwill 1.995.034 1.714.697 1.922.795

100 Tangible fixed assets 118.985.203 116.342.025 111.656.144including:- leased assets 62.004.344 59.048.261 52.918.141

120 Own shares - 3.663

130 Other assets 78.881.414 73.372.067 96.222.215

140 Accrued income and prepayments: 16.344.847 14.051.683 13.345.140 a) accrued income 14.191.077 11.939.938 11.212.252

b) prepayments 2.153.770 2.111.745 2.132.888including: - issue discounts on securities 231.125 286.823 343.223

Total assets 2.264.275.772 2.212.376.736 1.959.817.356


30/06/2002 31/12/2001 30/06/2001


10 Due to banks: 358.374.111 270.652.034 130.789.074 a) repayable on demand 236.244.990 128.679.667 48.810.462

b) time deposits or with notice period 122.129.121 141.972.367 81.978.612

20 Due to customers: 1.203.023.036 1.231.978.113 1.129.016.059 a) repayable on demand 1.069.542.045 1.051.116.656 947.993.318

b) time deposits or with notice period 133.480.991 180.861.457 181.022.741

30 Securities issued 406.277.568 410.741.196 399.330.212 a) bonds 309.003.438 312.747.054 317.469.565

b) certificates of deposit 86.076.657 96.205.562 81.669.654

c) other securities 11.197.473 1.788.580 190.993


60 Accrued expenses and deferred income: 20.900.643 16.790.762 20.120.513 a) accrued expenses 11.635.084 8.104.481 10.334.138

b) deferred income 9.265.559 8.686.281 9.786.375

70 Provisions for termination indemnities 22.388.535 22.182.703 22.790.108

80 Provisions for risks and charges: 16.855.092 15.862.067 6.971.194 a) pensions and similar commitments - - -

b) taxation 6.699.978 7.155.140 4.167.637

c) other 10.155.114 8.706.927 2.803.557

90 Reserve for possible loan losses 779.242 779.242 985.147

100 Reserve for general banking risks 2.085.576 2.685.576 2.065.828

120 Share capital 95.825.570 95.825.570 97.292.834

130 Share premium reserve 62.510.995 62.466.525 62.467.546

140 Reserves: 9.329.678 8.914.123 7.379.540 a) legal reserve 4.251.521 3.980.200 2.512.936

b) reserve for own shares - - -

c) statutory reserves 4.307.711 4.113.262 4.099.741

d) other reserves 770.446 820.661 766.863

150 Revaluation reserves 9.584.196 9.584.196 9.584.196

160 Retained profit (accumulated losses) - 725.094 2.345 2.345

170 Net profit (loss) for the period 9.498 1.654.544 1.170.461

Total liabilities and shareholders' equity 2.264.275.772 2.212.376.736 1.959.817.354

Items10 Guarantees given 41.179.421 46.189.905 46.683.395

including: - acceptances 201.987 462.680 300.827 - other guarantees 40.977.434 45.727.225 46.382.568

20 Commitments 6.745.463 26.632.193 15.715.334including: - for sales with the obligation to repurchase - - -

30/06/2002 31/12/2001 30/06/2001

30/06/2002 31/12/2001 30/06/2001


Items

10 Interest income and similar revenues 53.767.312 55.762.883 114.388.590including from: - loans to customers 37.817.580 41.722.911 83.949.980 - debt securities 5.828.178 8.267.406 15.462.508

20 Interest expense and similar charges - 24.073.198 - 23.051.489 - 46.769.048including on: - deposits from customers - 10.274.753 - 12.021.069 - 23.668.945 - securities issued - 7.435.024 - 8.643.039 - 16.876.285

30 Dividends and other revenues: 319.732 97.261 113.809 a) from shares, quotas and other equities 128.743 12.489 17.350

b) from equity investments 102.337 15.088 25.718

c) from investments in Group companies 88.652 69.684 70.741

40 Commission income 14.252.570 14.411.759 26.637.895

50 Commission expense - 2.185.938 - 1.526.771 - 3.242.829

60 Profits (losses) on financial transactions 222.906 - 629.963 1.115.349

70 Other operating income 20.609.049 17.000.690 35.128.800

80 Administrative expenses: - 44.336.718 - 43.244.754 - 85.809.151 a) payroll and related costs - 22.638.231 - 23.594.683 - 47.083.171 including: - wages and salaries - 15.555.679 - 16.269.720 - 32.488.175 - social security charges - 4.545.066 - 4.273.630 - 8.594.479 - termination indemnities - 1.336.829 - 1.528.302 - 3.030.631 - pensions and similar commitments - 279.632 - 114.226 - 746.738 b) other administrative expenses - 21.698.487 - 19.650.071 - 38.725.980

90 Value adjustments to tangible and intangible fixed assets - 14.607.381 - 11.358.082 - 26.220.735

100 Provisions for risks and charges - 1.000.000 - 119.818 - 134.246

110 Other operating expenses - 82.952 - 325.715 - 414.788

120 Value adjustments to loans and provisions for guarantees and commitments - 3.167.000 - 17.835.106 - 21.450.328

130 Writeback of adjustments to loans and provisions for guarantees and commitments 1.641.148 1.726.730 2.577.738

140 Provisions for possible loan losses - - 41.098 - 93.422

150 Value adjustments to financial fixed assets - 505.394 - - 842.471

160 Writeback of adjustments to financial fixed assets - 74.200 -

170 Profit (loss) on operating activities 854.136 - 9.059.273 - 5.014.837

180 Extraordinary income 1.640.784 11.874.899 13.419.837

190 Extraordinary charges - 1.285.558 - 505.315 - 803.645

200 Extraordinary income, net 355.226 11.369.584 12.616.192

210 Change in reserve for general banking risks 600.000 619.748 -

220 Income taxes for the period - 1.799.864 - 1.759.598 - 5.946.811

230 Net profit (loss) for the period 9.498 1.170.461 1.654.544

1st half 2002 1st half 2001 2001


BANCA DELL’ARTIGIANATO E DELL’INDUSTRIA

Balance Sheet

and Income Statement

as of 30 June 2002

Assets

10 Cash and deposits with central banks and post offices 528.929 343.166 350.925


30 Due from banks: 43.327.580 21.752.518 17.458.161 a) repayable on demand 29.463.470 14.013.239 14.813.093 b) other 13.864.110 7.739.279 2.645.068

40 Loans to customers 74.181.182 64.595.764 49.317.855 including: - loans using public funds administered - - -

50 Bonds and other debt securities: 2.741.416 1.858.311 2.336.945 a) issued by public bodies 1.441.903 956.264 1.746.029 b) issued by banks: 1.299.513 881.560 570.265 including: - own securities 1.291.636 881.449 570.162 c) issued by financial institutions - 20.487 20.651 including: - own securities - - - d) other issuers - - -

60 Shares, quotas and other equities 54.901 52.359 61.676

70 Equity investments 25.823 25.823 -

80 Investments in Group companies - - -

90 Intangible fixed assets 840.658 1.010.694 842.661including: - start-up costs 10.817 21.633 44.133 - goodwill - - -

100 Tangible fixed assets 464.444 504.911 354.774including:- leased assets - - -

110 Subscribed share capital not paid in - - -including:- called capital - - -

120 Own shares - - -(nominal value )

130 Other assets 1.285.911 1.101.145 977.014

140 Accrued income and prepayments: 844.607 404.025 596.304 a) accrued income 746.263 348.380 503.885 b) prepayments 98.344 55.645 92.419including: - issue discounts on securities - - -

Total assets 125.566.784 93.330.897 73.654.244


31/12/2001 30/06/200130/06/2002


10 Due to banks: 28.705.407 20.305.798 6.282.310 a) repayable on demand 15.618.767 12.680.960 2.498.396 b) time deposits or with notice period 13.086.640 7.624.838 3.783.914

20 Due to customers: 41.582.831 24.544.930 20.577.646 a) repayable on demand 34.110.616 18.668.164 16.926.444 b) time deposits or with notice period 7.472.215 5.876.766 3.651.202

30 Securities issued 19.216.632 15.155.186 14.153.802 a) bonds 19.216.632 15.155.186 14.153.802 b) certificates of deposit - - - c) other securities - - -

40 Public funds administered - - -


60 Accrued expenses and deferred income: 976.476 580.299 655.178 a) accrued expenses 945.886 551.520 646.929 b) deferred income 30.590 28.779 8.249

70 Provisions for termination indemnities 186.816 151.309 115.231

80 Provisions for risks and charges: 83.537 23.510 47.238 a) pensions and similar commitments - - - b) taxation 8.537 23.510 47.238 c) other 75.000 - -

90 Reserve for possible loan losses 59.114 51.452 35.768

100 Reserve for general banking risks - - -

110 Subordinated liabilities 9.000.000 12.000.000 12.000.000

120 Share capital 25.183.111 20.350.049 20.350.049

130 Share premium reserve 1.024.844 514.375 514.375

140 Reserves: 47.321 47.321 47.321 a) legal reserve 20.430 20.430 20.430 b) reserve for own shares - - - c) statutory reserves 26.891 26.891 26.891 d) other reserves - - -

150 Revaluation reserves - - -

160 Retained profit (accumulated losses) - 3.001.600 - 2.163.599 - 2.163.599

170 Net profit (loss) for the period - 599.022 - 838.001 - 360.225

Total liabilities and shareholders' equity 125.566.784 93.330.897 73.654.244

Items10 Guarantees given 1.882.570 2.021.001 1.819.097

including: - acceptances 56.477 7.511 31.166 - other guarantees 1.826.093 2.013.490 1.787.931

20 Commitments 942.128 197.446 287.232including: - for sales with the obligation to repurchase - - -

30/06/2002 31/12/2001 30/06/2001


30/06/2002 31/12/2001 30/06/2001

Items

10 Interest income and similar revenues 2.668.084 2.289.839 4.645.803including from: - loans to customers 2.153.970 1.842.779 3.745.134 - debt securities 72.232 76.378 154.309

20 Interest expense and similar charges - 1.265.194 - 1.091.900 - 2.251.571including on: - deposits from customers - 328.260 - 232.442 - 473.355 - securities issued - 583.757 - 666.712 - 1.286.576

30 Dividends and other revenues: 5.840 1.545 1.545 a) from shares, quotas and other equities 5.840 1.545 1.545 b) from equity investments - - - c) from investments in Group companies - - -

40 Commission income 545.465 243.755 489.994

50 Commission expense - 86.841 - 64.377 - 179.659

60 Profits (losses) on financial transactions 5.962 18.028 32.724

70 Other operating income 79.035 55.957 123.198

80 Administrative expenses: - 1.692.328 - 1.302.566 - 2.829.699 a) payroll and related costs - 748.842 - 585.891 - 1.260.988 including: - wages and salaries - 529.721 - 424.456 - 885.976 - social security charges - 140.333 - 110.030 - 248.897 - termination indemnities - 39.556 - 28.447 - 64.537 - pensions and similar commitments - 7.648 - - b) other administrative expenses - 943.486 - 716.675 - 1.568.711

90 Value adjustments to tangible and intangible fixed assets - 232.601 - 203.484 - 522.684

100 Provisions for risks and charges - 75.000 - -

110 Other operating expenses - - -

120 Value adjustments to loans and provisions for guarantees and commitments - 650.948 - 337.769 - 554.901

130 Writeback of adjustments to loans and provisions for guarantees and commitments 161.944 39.187 240.392

140 Provisions for possible loan losses - 10.638 - 7.831 - 23.515

150 Value adjustments to financial fixed assets - - -

160 Writeback of adjustments to financial fixed assets - - -

170 Profit (loss) on operating activities - 547.220 - 359.616 - 828.373

180 Extraordinary income 23.036 17.742 42.467

190 Extraordinary charges - 66.891 - 5.060 - 29.832

200 Extraordinary income, net - 43.855 12.682 12.635

210 Change in reserve for general banking risks - - -

220 Income taxes for the period - 7.946 - 13.292 - 22.263

230 Net profit (loss) for the period - 599.022 - 360.226 - 838.001

1st half 2001 20011st half 2002


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