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Presentation of Group Results at 30 th June 2003

Presentation of Group Results at 30 th June 2003. September 2003. Disclaimer.

michelle-briggs
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Presentation of Group Results at 30 th June 2003

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  1. Presentation of Group Resultsat 30th June 2003 September 2003

  2. Disclaimer This document has been prepared by BNL for information purposes only and for use in presentations of the Group’s results and strategies. The data and information contained herein have not been independently verified. For further details on BNL and its Group, reference should be made to publicly available information, including the Annual Report and the Semi-Annual and Quarterly Reports. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company, its advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

  3. Agenda Overview Consolidated 1H2003 Results Balance Sheet: main trends Income Statement: analysis Analysis by Business Segment Appendix BNL Group Income Statement BNL Group Balance Sheet Highlights BNL SA (Argentina) Balance Sheet Highlights

  4. Improvement in gross operating income Overview Containment of operating costs and lower cost income ratio Improvement in the financial structure Ongoing reduction in Group’s overall risk profile Change in Corporate Governance with a streamlined organisational model 1H2003 results do not consolidate Argentina

  5. Cross-Functional Committees Group Finance Communications Institutional Affairs Human Resources Auditing Risk Management Wholesale Banking Operations Credits Commercial Banking Overview: New Organisational Model Supervision and Co-ordination Chairman Corporate Secretariat General Manager Deputy General Manager Subsidiaries & Investments Governance Line

  6. Overview: Key Objectives of New Structure Simplifying Group governance Accelerating the structural improvement in the cost to income ratio Improving capital allocation and strengthening control of financial performance Continuing business re-positioning towards domestic activities

  7. Overview: Reduction of Risk Profile Further reduction in total RWA Risk Weighted Assets 67.4 -3.5% 65.0 Euro bln 30/06/03 2002 Rated domestic credit portfolio: despite challenging macroeconomic scenario the relative weight of higher risk classes (7-9) remains stable at 11.4% Improvement in problem loans coverage to 43.1% from 41.2% at year-end 2002

  8. Rationalised presence abroad: Closed Singapore branch Closed Frankfurt and Los Angeles rep. offices Additional initiatives under way: Exit from Uruguay and Brazil Closure of Paris branch and of Tokyo rep. office Overview: Reduction of Risk Profile Ongoing reduction in international exposure Reduced international loan portfolio*: from Euro 7.1 bn at year-end 2002 to Euro 6.0 bn at 30th June 2003 *Loan portfolio of foreign branches and international subsidiaries excluding Argentina Contracted net LDC exposure**: -19.4% to Euro 499 mln **Bank of Italy definition

  9. Overview: Capital Ratios Commitment to improve capital ratios confirmed by results in first half of the year Solvency Ratio Tier 1 10.11% 9.32% 5.31% 5.02% 30/06/03E 30/06/03E 2002 2002 E: provisional data

  10. Overview: Financial Re-balancing Significant reduction in net inter-bank borrowing which has been contained to less than 3% of total funding 8.2 -2.8 Reduction in loans to customers Growth in deposits from customers -1.6 (Amounts in Euro billion) Other items Reduction in securities portfolio -0.2 -1.6 2.0 31/12/02 30/06/03

  11. Agenda Overview Consolidated 1H2003 Results Balance Sheet: main trends Income Statement: analysis Analysis by Business Segment Appendix

  12. BNL Group: Balance Sheet Main trends in 1H2003 Significant reduction in loans to customers Marginal growth in deposits from customers Reduction of securities portfolio (-26% on year-end 2002) Improvement in loan to deposit ratio (101.8% from 107.1%) coherently with objective of improving financial equilibrium

  13. BNL Group: Balance Sheet Ongoing reduction in the loan to deposit ratio Growth in domestic deposits from customers Reduction in loans to customers: -4.6% on 31/12/02 through: • securitizations of performing loans • reduction in loans to Large Corporates • lower foreign loans exposure (Euro revaluation effect) 62,240 60,249 57,457 56,427 56,232 55,935 (Euro million) Stable deposits from customers: +0.3% on 31/12/02 of which: • growth in domestic market (+2.5%) • decline in foreign markets (-12.5%) • increase in medium-term component (+5.1% equivalent to +1,065 mln Euro) 30/06/02 31/12/02 30/06/03 Loans to customers Deposits from customers Loans/Deposits = 101.8%

  14. Amount: Euro 1.24 bln Loan portfolio: leasing loans Rating: 92% AAA Portfolio average life: 3.8 years 5% A2/A Arranger: BNP Paribas 2% Baa/A Total cost: 53 b.p. 1% unrated Risk retained: 1% BNL Group: Securitizations of Performing Loans Retaining significant future profitability whilst improving Tier 1 ratio VELA LEASE: Excellent rating attributed to sold portfolios reflects recognition of value of collateral guarantees in BNL’s loan portfolio VELA HOME: • Amount: Euro 2.2 bln • Loan portfolio: residential mortgages Rating: 96.5% AAA • Portfolio average life: 5 years 1% A • Arranger: ABN Amro & BNL 2% BBB • Total cost: 38 b.p. 0.5% unrated • Risk retained: up to 1% (including junior unrated)

  15. Agenda Overview Consolidated 1H2003 Results Balance Sheet: main trends Income Statement: analysis Analysis by Business Segment Appendix

  16. BNL Group: Income Statement Highlights Revenue growth coupled with cost control leads to an improvement in operating income and net profit YoY % change 1H2003 Banking Income 1,591 +3.9% Operating Costs (960) -0.8% Operating Profit 631 +11.9% (Euro million) Net Write-downs and net Provisions (316) +18.8% Profit on ordinary activities +5.7% 315 Net Extraordinary items (63) -152.0% Net Profit 100 +270.4%

  17. BNL Group: Banking Income Improvement in revenues driven by income from services Banking Income +3.9% Interest Income -5.9% YoYcomparison Non-Interest Income +18.3%

  18. BNL Group: Interest Income Reduction in average volumes and interest rate cuts weigh on interest income performance YoY comparison • Lower average volumes • Adverse forex impact (Euro appreciation) • Lower contribution from foreign operations as budgeted • Stability of domestic commercial spread as a result of mark-up resilience 915 -5.9% 861 1H02 1H03 (Euro million) QoQ evolution 451 452 434 427 • Quarterly trend shows a recovery • Development of commercial initiatives should help confirm an upward trend 2Q02 Average 2002 2Q03 1Q03

  19. BNL Group: Non-Interest Income Increase in all non-interest income components YoY comparison 730 +18.3% 617 Net commissions and other net income Net commission and other net income +8.6% 584 538 Income on financial transactions Income on financial transactions +37.5% 99 72 Profit from investments valued at net equity and dividends 47 7 1H02 1H03 (Euro million) QoQ evolution 382 • Special dividend from Lavoro Bank A.G. Zurich of Euro 30 mln (utilisation of excess reserves) fully set aside in Group accounts to reserves for general banking risks • Profits from financial transactions particularly buoyant in 1Q03 348 312 299 Average 2002 2Q02 1Q03 2Q03

  20. Other fees income BNL Group: Net Commission and Other Net Income Significant increase in fee income confirming growth trend Main drivers: • Asset Management: placement of capital protected GPF and bancassurance products, real estate investment funds • Traditional Fees: payment services, brokerage and ContoPerTe YoY comparison QoQ evolution 296 288 584 +8.4% 539 281 258 (Euro million) 149 168 1H02 1H03 2Q02 Average 2002 1Q03 2Q03 Asset Management & Bancassurance

  21. BNL Group: Net Commission and other Net Income Breakdown of Fee Income components YoY change 584 539 60 0% 60 Other 41 -11% 46 Credit fees 51 -2% 52 48 Cross Border Payments +13% 42 67 Leasing & factoring +13% 59 Payment services (Euro million) 129 +9% Banking fees 119 20 +70% Secur., brokerage & cap.markets 12 +12% Asset Management & Bancassurance* 149 168 1H03 1H02 * Net of Banca BNL Investimenti distribution costs

  22. BNL Group: Asset Management & Bancassurance YoY increase in asset management fees mainly resulting from: • Bancassurance • increased new production volumes (+55%) lead to more than doubled commissions of Euro 27 mln • index linked up-front fees: Euro 6 mln versus Euro 1.5 mln • Capital protected products • Capital protected GPF contribution: net inflow of Euro 754 mln generating up-front fees of Euro 23.7 mln versus none(new product marketed from 2H2002) • BNL Fondi Immobiliari • nearly doubled to Euro 8 mln, of which Euro 1.5 mln of up-front fees from placement of new fund ‘Estense-Grande Distribuzione’

  23. BNL Group: Asset Management & Bancassurance Inflows from bancassurance and real estate more than compensate contraction in mutual funds Assets Under Management: Total Inflows 1,328 +5.1% 1,264 207 Real Estate Inv. Trusts * (net inflow) 783 Bancassurance (total premium) 1,212 481 Asset Management (mutual funds net inflow) -91 1H2002 1H2003 * In 1H2002 no new funds were placed

  24. BNL Group: Asset Management Positive performance effect generates an increase in AUM stocks Portfolio re-composition still favouring liquid investments Mutual Funds* Mutual Funds* 17,691 17,495 +1.2% Equity 22% 16% -0.1% 1% 1% Flexible 8% 10% Balanced AuM AuM 40% 35% Bonds Euro million 29% 38% Money Market Net Inflows Performance Effect 31/12/02 30/06/03 30/06/02 30/06/03 *BNL Gestioni SGR: excludes real estate investment trusts and includes SICAV

  25. BNL Group: Real Estate Investment Trusts BNL set to consolidate market leadership having won mandate to manage new investment trusts Fondo Patrimonio and Fondo Lazio BNL Fondi Immobiliari SGR (Market share) In 1H03 BNL Fondi Immobiliari Sgr placed its third real estate fund ‘Estense-Grande Distribuzione’, the first Italian specialised real estate fund, confirming its leading position in a fast growing sector BNL Fondi Imm. 19.3% Market leader in real estate investment trust sector Source: internal estimates ‘BNL Portfolio Immobiliare’: 520 ‘Portfolio Immobiliare Crescita’: 192 ‘Estense-Grande Distribuzione’: 214 Assets Under Management (Euro million) Data as at 30th June 2003 ‘Fondo Lazio’: 220 (estimated for 2H2003) ‘Fondo Patrimonio’: 700(estimated for 2H2003)

  26. BNL SpA: Retail Commercial Initiatives Maintaining new production volumes in line with previous year whilst defending average spread (>110 b.p.) RESIDENTIAL MORTGAGES New production and incidence of selective agreements with estate agents networks -0.5% Contribution to new production from estate agents networks still growing on the previous year 1,206 1,200 (Euro million) +8.8% 456 419 1H2003 1H2002 New production from estate agents networks BNL SpA new production

  27. BNL SpA: Retail Commercial Initiatives Commercial initiatives help counteract macroeconomic slowdown PERSONAL/CONSUMER FINANCE (new production) 548 +17.0% 468 (Euro million) 1H2003 1H2002

  28. BNL SpA: Retail Commercial Initiatives Continuing growth in package accounts offering banking and non-banking services to mass market clients ContoPerTe (stocks) • Representing more than 21% of • BNL’s current accounts • Unitary income from services • more than double that of an • ordinary current account • Cross-selling index exceeding 5 341,000 300,000 +33% 256,000 (No. of contracts) 30/06/02 31/12/02 30/06/03

  29. BNL Group: Income on Financial Transactions Significant growth in profits from financial transactions • driven by increased activity in structured products with clients (+73%) • boosted by profit taking in first quarter 2003 YoY comparison QoQ evolution 99 63 +37.5% 72 37 36 28 (Euro million) 1H02 1H03 2Q02 Average 2002 1Q03 2Q03

  30. BNL Group: Operating Costs Overall cost reduction leads to an improvement in the cost income ratio YoY comparison Personnel expenses +0.2% 968 960 -0.8% • Continuing headcount reduction counters impact from domestic labour contract Personnel expenses 552 551 Administrative expenses -3.4% • Cost control action leads to contraction of expenses especially in logistics, IT and procurement Administrative expenses 315 326 Depreciation and amortisation 93 91 +2.2% Depreciation • Quarterly evolution points to a declining trend 1H02 1H03 QoQ evolution (Euro million) 504 493 480 479 Cost/Income ratio: 60.3% (63.2% in 1H02) 2Q02 Average 2002 1Q03 2Q03

  31. BNL Group: Personnel Reduction Acceleration in personnel reduction trend confirmed BNL Group personnel* 1H03 net headcount reduction: -393 of which: -556 exits and +163 recruitments 18,804 -4.7% 17,912 30/06/02 30/06/03 * Excluding Argentina

  32. BNL Group: Provisions & Write-Downs and Extraordinary Items Confirmation of cautious provisioning policy Extraordinary items affected by personnel reduction charges YoY % change 1H2003 • improving coverage • responding to weak • macroeconomic scenario • credit risk provisioning ratio at 88 bp of loan book Net Write-downs and net Provisions (316) +18.8% (254) (62) +38% -24% of which: Credit risks Other risks Net extraordinary items (63) +152.0% Euro 61 mln refer to extraordinary personnel costs, accounted as incurred

  33. BNL Group: Asset Quality Contained increase in gross problem loans Improvement in coverage ratio Gross problem loans Net problem loans 5,166 5,043 +2.4% 3,126 3,094 -1.0% 3,677 3,911 2,109 2,057 (Euro million) (Euro million) 1,069 1,366 1,255 985 31/12/02 30/06/03 31/12/02 30/06/03 Net Doubtful Loans (“Sofferenze”) Net Substandard Loans (“Incagliati”) • Problem loans coverage ratio improves to 43.2%(from 41.2% at year-end 2002)

  34. BNL Group: Country Risk Continuing reduction in net exposure to countries at risk with an improved level of overall coverage Country risk exposure * Net amounts Coverage 619 42.3% -19.4% +0.4 p.p. 41.9% 499 (Euro million) 31/12/02 30/06/03 31/12/02 30/06/03 * Excludes fully provisioned intra-group exposure to Argentina and is calculated in accordance with Bank of Italy regulations

  35. BNL Group: Argentina As a result of the provisions set aside in the past, the investment and all forms of cross-border intra-group exposure arefully provisioned. BNL Group resultsdo not consolidatethe Argentinean activities because of the continuing uncertainty of the local regulatory environment. On the basis of prudent evaluations, management estimates that the consolidated results of Argentina Group (BNL Inversiones Argentinas SA including BNL SA) would show a consolidated profit at 30th June 2003 of Pesos 1.7 mln (~Euro 0.5 mln) after partial utilisation of reserves previously set aside for Pesos 35.9 mln (~Euro 11.2 mln). Therefore the consolidation of these estimated results would have had nil impact on BNL Group results. BNL is pursuing opportunities of recovering value through a reduction of the cross-border exposure

  36. Agenda Overview Consolidated 1H2003 Results Balance Sheet: main trends Income Statement: analysis Analysis by Business Segment Appendix

  37. Analysis by Business Segment Guidelines Capital absorbed: has been calculated on Risk Weighted Assets at a standard 6% rate, plus 0.8% of Assets Under Management. The percentage of capital absorbed applied to individual segments has been referred to the actual Group’s capital Retail: Includes also asset management activities, small businesses (turnover < Euro 1.5 mln), Private banking and related subsidiaries (Artigiancassa, Coopercredito, BNL Gestioni Sgr, Banca BNL Investimenti, Fondi Immobiliari, etc) Corporate: Includes SMEs and investment banking activities, leasing and factoring (pro rata where relevant) Large Corporate: Includes activities with approximately 240 Italian and International groups managed on a relationship basis and investment banking and factoring (pro rata where relevant) International: Includes activities of foreign branches (excluding Large Corporate), foreign subsidiaries (excluding Argentina) and investment banking (pro rata) Corporate Centre: Includes problem loans, treasury activities, trading book, fixed assets, investments and subsidiaries not included in other segments N.B. Business segment data basis differ from previus presentations as a result of advancement in allocation methodology. Comparisons with 2002 are on a homogeneous basis.

  38. BNL Group: Retail activities RETAIL RWA breakdown Sector RWA = Euro 12,597 mln 12.6% 15.5% 19.4% Retail mortgages 0.8% Other retail Small businesses 30.5% Private 40.7% Subsidiaries Percentage of Group RWA % on % on 30/06/03 total 2002 Interest income 389 45.2% -5.7% Non-interest income 360 49.3% 6.0% TOTAL INCOME 749 47.1% -0.4% OPERATING RESULT 240 37.9% 19.2% -527 bp Cost/Income 68.0% (Euro million) PROVISIONS (88) 28.0% 15.1% NET PROFIT 83 82.9% 27.8% CAPITAL ABSORBED 965 23.5% -5.0% NET RETURN ON ALLOCATED CAPITAL 17.4% +446 bp

  39. BNL Group: Public Administration activities Sector RWA = Euro 1,418 mln 2.2% Percentage of Group RWA % on % on 30/06/03 total 2002 37 4.3% -9.7% Interest income 25 3.5% 50.7% Non-interest income 63 3.9% 7.8% TOTAL INCOME 38 6.1% 11.3% OPERATING RESULT Cost/Income 38.7% -190 bp (Euro million) (0) 0.2% -42.0% PROVISIONS 23 23.2% 20.3% NET PROFIT CAPITAL ABSORBED 85 2.1% -1.1% NET RETURN ON ALLOCATED CAPITAL 55.0% +981 bp

  40. BNL Group: Corporate activities Sector RWA = Euro 22,544 mln CORPORATE RWA breakdown 25.2% Middle market 34.7% Financial institutions 3.0% (commercial activities) 0.3% Investment banking 71.5% Subsidiaries (Locafit + Ifitalia) Percentage of Group RWA % on % on 30/06/03 total 2002 281 32.7% 12.3% Interest income 150 20.5% 10.1% Non-interest income 431 27.1% 11.6% TOTAL INCOME 269 42.6% 25.2% OPERATING RESULT Cost/Income 37.6% -678 bp (Euro million) (108) 34.1% 6.0% PROVISIONS 97 97.3% 51.9% NET PROFIT CAPITAL ABSORBED 1,353 32.9% 7.2% NET RETURN ON ALLOCATED CAPITAL 14.5% +428 bp

  41. BNL Group: Large Corporate activities* Sector RWA = Euro 9,664 mln LARGE CORPORATE RWA breakdown 4.1% 14.9% 11.4% Italy Foreign Subsidiaries (Ifitalia) 84.5% Percentage of Group RWA % on % on 30/06/03 total 2002 54 6.2% 10.2% Interest income 32 4.4% 12.8% Non-interest income 86 5.4% 11.2% TOTAL INCOME 62 9.9% 14.3% OPERATING RESULT Cost/Income 27.1% -201 bp (Euro million) (12) 3.7% -75.2% PROVISIONS 31 30.9% n.s. NET PROFIT CAPITAL ABSORBED 580 14.1% -11.1% NET RETURN ON ALLOCATED CAPITAL 10.8% n.s. *Sector includes approximately 200 large groups (Italian and International), managed on a relationship basis

  42. BNL Group: International activities1 Sector RWA = Euro 5,244 mln INTERNATIONAL RWA breakdown 8.1% 24.5% BNL SpA foreign branches Foreign subsidiaries* 75.5% Percentage of Group RWA Residual RWA after allocation to Corporate and Large Corporate segments of relative portfolios including investment banking % on % on 30/06/03 total 2002 Interest income 51 5.9% -23.3% Non-interest income 47 6.4% 33.1% TOTAL INCOME 97 6.1% -3.7% OPERATING RESULT 70 11.1% 6.0% Cost/Income 27.8% -660 bp (Euro million) PROVISIONS (92) 29.2% 40.5% NET PROFIT (18) -18.2% -482.5% CAPITAL ABSORBED 315 7.7% -34.1% * ExcludingArgentina NET RETURN ON ALLOCATED CAPITAL -11.7% n.s. (1) Sector consists of foreign branches and subsidiaries, including loan book of Italian-related businesses, but excluding large corporates

  43. BNL Group: Corporate Centre RWA = Euro 13,544 mln CORPORATE CENTRE RWA breakdown Problem loans 7.3% 1.8% 20.8% Treasury & Trading book 16.6% Investments & Subsidiaries 52.9% 21.3% Fixed assets Percentage of Group RWA Other % on % on 30/06/03 total 2002 49 5.7% -36.3% Interest income 116 15.9% 62.7% Commission income 166 10.4% 11.2% TOTAL INCOME (48) -7.6% -25.9% OPERATING RESULT (15) 4.8% -94.3% (Euro million) PROVISIONS (116) -116.1% -2.9% NET PROFIT CAPITAL ABSORBED 813 19.8% 7.8% NET RETURN ON ALLOCATED CAPITAL -28.9% +320 bp

  44. BNL Group: Breakdown by Business Area Large Corp. Corporate centre Retail P.A. Corporate Intl. TOTAL RWA 12,597 1,418 22,544 9,664 5,244 13,544 65,010 19% 2% 35% 15% 8% 21% 100% % on total 749 63 431 86 97 166 Total Income 1,591 % on total 47% 4% 27% 5% 6% 10% 100% (509) (24) (162) (23) (27) (214) (960) Operating Costs % on total 53% 3% 17% 2% 3% 22% 100% Cost / Income 68.0% 38.7% 37.6% 27.1% 27.8% n.s. 60.3% 240 38 269 62 70 (48) 632 Operating Income % on total 38% 6% 43% 10% 11% -8% 100% Net Profit 83 23 97 31 (18) (116) 100 83% 23% 97% 31% -18% -116% 100% % on total 3,450 * 965 85 1,353 580 315 813 Capital absorbed 28% 2% 39% 17% 9% 24% % on total Net Return on Allocated Capital % 17.4% 55.0% 14.5% 10.8% -11.7% -28.9% 5.9% BNL Group management accounts (30/06/03) * Total capital absorbed has been re-adjusted to the actual Group’s Tier 1 capital

  45. Agenda Overview Consolidated 1H2003 Results Balance Sheet: main trends Income Statement: analysis Analysis by Business Segment Appendix

  46. BNL Group: Income Statement (Euro million) 1H2003 1H2002 % change Net Interest Income 861 915 -5.9% Net commissions 470 434 8.3% Income (losses) on financial transactions 99 72 37.5% Profit from investments valued at net equity and dividends 47 7 --- Other net operating income 114 104 9.6% Non-Interest Income 730 617 18.3% Gross Operating Income 1,591 1,532 3.9% Administrative expenses: -867 -877 -1.1% - Personnel expenses -552 -551 0.2% - Other administrative expenses -315 -326 -3.4% Depreciation and amortisation -93 -91 2.2% Operating costs -960 -968 -0.8% Operating profit 631 564 11.9%

  47. Income taxes for the period -110 118 --- Change in the reserve for general banking risks -40 178 --- BNL Group: Income Statement (Euro million) 1H2003 1H2002 % change Operating profit 631 564 11.9% Net write-downs on credits and provisions for possible loan losses -254 -184 38.0% Provisions for risks and contingencies -59 -49 20.4% Net write-downs on financial fixed assets -3 -33 -90.9% Total net write-downs and net provisions -316 -266 18.8% of which - write-downs and provisions -378 -329 15.0% - write-backs 62 63 -1.9% Profit on ordinary activities 315 298 5.7% Net extraordinary items -63 -25 152.0% Additional allowances for credit risks 0 -540 -100.0% Net profit (loss) attributable to minority interests -2 -2 0.0% Net profit (loss) for the year 100 27 270.4%

  48. BNL Group: Balance Sheet Highlights (Euro million) 30/06/03 31/12/02 % change ASSETS Loans to customers 57,458 60,249 -4.6% Loans to banks 11,255 6,819 65.1% Investment securities 4,323 5,887 -26.6% Investments 525 495 6.1% Other assets 9,070 10,261 -11.6% 82,631 83,711 -1.3% Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Deposits from customers 0.3% 53,461 53,354 Deposits from banks 13,208 14,968 -11.8% Other liabilities 6,738 6,331 6.4% Allowances for risks and contingencies 1,494 1,525 -2.0% Allowances for possible loan losses 687 692 -0.7% Subordinated liabilities 2,967 2,878 3.1% Share capital and reserves 3,976 3,872 2.7% Net income for the period 100 91 9.9% Total liabilities and shareholders' equity 82,631 83,711 -1.3%

  49. 4,723 4,334 687 787 1,692 1,577 99 85 87% 87% 1,638 1,346 1,518 1,276 706 624 4,723 4,334 2,317 2,240 1,584 1,314 141 144 421 423 260 213 -575 -49 Argentina: BNL S.A. - Balance Sheet Highlights (Pesos mln) (Euro mln) (1) 31.12.2002 30.06.2003(1) 30.06.2003 TOTAL ASSETS 1,351 Cash and deposits with Central Bank 245 492 Loans of which - Net NPLs 24 (Coverage %) Securities and Participations 420 of which - Public sector (incl. Bono Cobertura) 398 Other assets 194 TOTAL LIABILITIES 1,351 Deposits from customers 698 Intra-group lines 410 Fully provisioned at Parent Company level Subordinated loan 45 Other liabilities 132 Net equity 66 including current year result of: -15 (1) Includes inflation accounting (2) EUR/ARS = 3.2081

  50. Investor’s Contacts Banca Nazionale del Lavoro Investor Relations Via Veneto, 11900187 ROMA Tel.: +39 06 4702 7887 Fax: +39 06 4702 7884 e-mail: investor-relations@bnlmail.com http://www.bnlinvestor.it

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