05/13/2003

The Mediolanum Group discloses Q1 2003 Final Results

Consolidated Profit before Tax & Extrordinary Items 31 million Euro (+16%)
Net profit: Italy 28 million Euro (+2%),
Consolidated 18 million Euro (-10%)
Consolidated assets under administration: 20,759 million Euro
Total consolidated net inflows: positive at 647 million Euro
Significant inflows in Spain: 64 million Euro Net
and in Banca Esperia: 220 million Euro Net (Mediolanum's share)

The Board of Director's of Mediolanum S.p.A. meet today in Basiglio and approved the financial statements of the first three months of the year 2003.

The negative market environment in the 1st quarter of 2003 and the prolonged uncertainty in the international situation did not impede the Mediolanum Group from closing the first quarter with respectable results.

With respect to the overall results of the group, which include the effects of the New Ventures:

Consolidated total Net Inflows, including life, mutual funds and managed accounts, and direct and indirect inflows of the bank were positive at 647 milion Euro. An important contribution was added by Banca Esperia with 220 million Euro and by Fibanc with 64 million Euro.
The inflows into managed savings were particularly important with 600 million Euro. Total Consolidated Assets, thanks to the excellent performance of net inflows. Amounted to 21 billion Euro, a decrease of 6% for the twelve months (Euro 22 billion as at March 31, 2002) notwithstanding the depreciation caused by the negative performance of the stock markets: the Morgan Stanley World Index (in Euro) -39%.
Consolidated Profit before Tax and Extraordinary Items grew by 16% (from 26 to 31 million Euro) with respect to the same period last year. Consolidated Net Inflows were at Euro 18 million, a decrease of 10% compared to the result for the first three months of 2002 (20 million Euro).

The contraction was caused exclusively by the associated start-up costs and the related depreciation for the New Ventures in Spain, in Germany and for Private Banking.
In fact, with reference to Italy, the quality of the business model and strategy permitted an improvement in the profitability of the business, despite the difficulty of the economic and financial situation in the markets for the past two years.

Net Inflows were positive at 358 million Euro.
Gross Premiums Written totalled 396 million, Euro a decline of 30% compared to 565 million Euro for the same period last year which, differing from this year, benefited from the strong transformation effort of the traditional life policies into new insurance products.
Profit before Tax and Extraordinary Items increased by 18%, passing from 35 million Euro as at March 31, 2002 to 41 million as at March 31 of this year. Net Profit for the Core business was at 28 million Euro, an increase of 2% with respect to the results of last year.

Other indicators to note:

There were a total of 335,134 bank accounts as at March 31, 2003, compared to 309,585 as at March 31 last year, with an increase of 8%.
There were a total of 763,500 Primary Account Holders as at March 31, 2003, compared to about 729,700 as at the same date last year (5%).
As at March 31, 2003, the Sales Network of Banca Mediolanum recorded a total of 4,983 financial advisors (a contraction of 6% out of a total of 5311 as at the same date last year). It is worth noting the continual progress in the quality of the network, with 4,110 licensed financial advisors, a growth of 5% with respect to 3,924 as at March 31, 2002.
Adding to this the 1,379 Partner Time insurance agents, the Sales Network of the Mediolanum Group reached a total of 6,362 individuals.

With reference to Spain, the furthest along of the New Ventures, the solid progress in terms of profit and volumes is noteworthy:

Total Gross Inflows, at 173 million Euro, registered a growth of 49% with respect to 116 million Euro in the first quarter of last year, with a result that was very positive, especially with respect to managed savings (Mutual Funds and Life), which came to 146 million Euro (+ 52% with respect to 96 million Euro for last year).
Total Net Inflows, which includes life insurance, mutual funds and managed accounts, and direct and indirect inflows of the bank, almost doubled coming to 64 million Euro versus 32 million Euro of the same quarter last year. This result was contributed to by both managed savings (42 million Euro), and administered savings at 22 million Euro.
As at March 31, 2003, the Sales Network of the Fibanc Group registered a total of 398 agents. A strong increase (+70%) in financial advisors (Mediolanum model) should be noted, passing from 155 as at March 31, 2002 to 264 as at March 31, 2003.

Attachment: Reclassified Income Statement Q103

Milan, May 13, 2003

Last update: May 13, 2003 - 15:00

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