Presentation of Group Results

at 30th June 2003

September 2003

2

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.

Disclaimer

3

Agenda

Overview

Consolidated 1H2003 Results

Balance Sheet: main trends

Income Statement: analysis

Analysis by Business Segment

AppendixBNL Group Income StatementBNL Group Balance Sheet HighlightsBNL SA (Argentina) Balance Sheet Highlights

4

Overview

Improvement in gross operating income

Containment of operating costs and lowercost income ratio

Improvement in the financial structure

Change in Corporate Governance with a streamlinedorganisational model

Ongoing reduction in Group’s overall risk profile

1H2003 results do not consolidate Argentina

5

General Manager

Corporate Secretariat

Credits

Cross-FunctionalCommittees

Governance

Line

Supervision and

Co-ordination

Commercial Banking

Operations

Wholesale Banking

Group Finance

Risk Management

Auditing Human Resources

Institutional Affairs

Communications

Subsidiaries &

Investments

Deputy General Manager

Chairman

Overview: New Organisational Model

6

Overview: Key Objectives of New Structure

Simplifying Group governance

Accelerating the structural improvement in the cost to income ratio

Improving capital allocation and strengtheningcontrol of financial performance

Continuing business re-positioning towardsdomestic activities

7

Overview: Reduction of Risk Profile

2002 30/06/03

65.0

67.4-3.5%

Euro

bln

Risk Weighted Assets

Further reduction in total RWA

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

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

Contracted net LDC exposure**:-19.4% to Euro 499 mln

* Loan portfolio of foreign branches and international subsidiaries excluding Argentina

** Bank of Italy definition

Overview: Reduction of Risk Profile

9

Commitment to improve capital ratios confirmed by results in first half of the year

2002 30/06/03E

5.02%5.31%

Tier 1

2002 30/06/03E

9.32%10.11%

Solvency Ratio

E: provisional data

Overview: Capital Ratios

10

31/12/02

Reduction inloans to customers

30/06/03

8.2

Significant reduction in net inter-bank borrowing which has been contained to less than 3% of total funding

Overview: Financial Re-balancing

2.0

Growth in depositsfrom customers Other

items

-1.6

(Am

ou

nts

in E

uro

bill

ion)

-0.2

-2.8

Reduction insecurities portfolio

-1.6

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 ratioGrowth in domestic deposits from customers

62,240

55,935

30/06/02

60,249

56,232

31/12/02

57,45756,427

30/06/03

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)

Loans to customers Deposits from customers

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)

(Euro

mill

ion)

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

VELA LEASE:VELA LEASE:

VELA HOME: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)

Retaining significant future profitabilitywhilst improving Tier 1 ratio

Excellent

rating

attributed to

sold

portfolios

reflects

recognition of

value

of collateral

guarantees

in BNL’s loan

portfolio

15

Agenda

Overview

Consolidated 1H2003 Results

Balance Sheet: main trends

Income Statement: analysis

Analysis by Business Segment

Appendix

16

Banking IncomeBanking Income

(Euro

mill

ion)

Operating CostsOperating Costs

Operating Profit

BNL Group: Income Statement Highlights

1,591

1H2003

(960)

631

Net Write-downs and net ProvisionsNet Write-downs and net Provisions (316)

+3.9%

-0.8%

+11.9%

+18.8%

Revenue growth coupled with cost control leads to an improvement in operating income and net profit

YoY% change

Profit on ordinary activitiesProfit on ordinary activities 315 +5.7%

Net Profit 100 +270.4%

Net Extraordinary itemsNet Extraordinary items (63) -152.0%

17

BNL Group: Banking Income

Interest Income -5.9%

Non-Interest Income +18.3%

Banking Income +3.9%

Improvement in revenues driven by income from servicesYoY c

om

pari

son

18

(Euro

mill

ion)

QoQ evolution

Average2002

452

2Q02

451

BNL Group: Interest Income

1H02

915

YoY comparison

1H03

861 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

-5.9%

2Q03

434

Quarterly trend shows a recovery Development of commercial initiatives

should help confirm an upward trend

Reduction in average volumes and interest rate cuts weigh on interest income performance

1Q03

427

19

BNL Group: Non-Interest Income(E

uro

mill

ion)

QoQ evolution

1H02 1H03

617

538

727

+18.3%

Net commissionsand other net income

Income on financial transactions

Profit from investmentsvalued at net equityand dividends

730

584

99

47

YoY comparison

Net commission andother net income

+8.6%

+37.5%Income on financialtransactions

Increase in all non-interest income components

Average2002

312

1Q03

382

2Q02

299

2Q03

348 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

20

(Euro

mill

ion)

QoQ evolution

Average2002

281

2Q02

258

1H02

539

YoY comparison

1H03

584+8.4%

1Q03

288

BNL Group: Net Commission and Other Net Income

Significant increase in fee income confirming growth trend

2Q03

296

149 168

Other fees income Asset Management &Bancassurance

Main drivers:

Asset Management: placement of capital protected GPF and bancassurance

products, real estate investment funds

Traditional Fees: payment services, brokerage and ContoPerTe

21

BNL Group: Net Commission and other Net Income

* Net of Banca BNL Investimenti distribution costs

Other

Leasing & factoring

Payment services

Banking fees

Secur., brokerage &cap.markets

Asset Management& Bancassurance*

1H02 1H03

Breakdown of Fee Income components(E

uro

mill

ion)

YoY change

Cross Border Payments

Credit fees

168149

129

119

67

59

48

42

60

1220

584

539

46

52

60

41

51

+9%

+13%

+13%

+70%

+12%

-11%

-2%

0%

22

BNL Group: Asset Management & Bancassurance

YoY increase in asset management fees mainly resulting from:

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’

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

23

BNL Group: Asset Management & Bancassurance

Bancassurance(total premium)

Asset Management(mutual funds net inflow)

Real Estate Inv. Trusts *(net inflow)

1H20031H2002

Assets Under Management: Total Inflows

-91

481

1,212

783

207

* In 1H2002 no new funds were placed

1,264

1,328+5.1%

Inflows from bancassurance and real estate more than compensate contraction in mutual funds

24

BNL Group: Asset Management

Mutual Funds*

Eu

ro m

illio

n

AuM

17,495

17,691

-0.1%

+1.2%

Performance Effect

NetInflows

AuM

31/12/02 30/06/03

Positive performance effect generates an increase in AUM stocksPortfolio re-composition still favouring liquid investments

Balanced

Money Market

Equity

Bonds

Flexible

30/06/03

16%

38%

35%

10%

1%

30/06/02

29%

40%

22%

8%

1%

Mutual Funds*

* BNL Gestioni SGR: excludes real estate investment trusts and includes SICAV* 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

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 Portfolio Immobiliare’: 520‘Portfolio Immobiliare Crescita’: 192‘Estense-Grande Distribuzione’: 214

(Eu

ro m

illion

)

Assets UnderManagement

BNL Fondi Immobiliari SGR(Market share)

‘Fondo Lazio’: 220 (estimated for 2H2003)

‘Fondo Patrimonio’: 700 (estimated for 2H2003)

BNL Fondi Imm.19.3%

Source: internal estimates

Data as at 30th June 2003

Market leader in real estate investment trust sector

26

1H2002 1H2003

1,206 1,200-0.5%

419 456

+8.8%

RESIDENTIAL MORTGAGESNew production and incidence of

selective agreements with estate agents networks

BNL SpA new productionNew production fromestate agents networks

Contribution to new

production from

estate agents

networks

still growing on the

previous year

BNL SpA: Retail Commercial Initiatives

(Eu

ro m

i llio

n)

Maintaining new production volumes in line with previous year whilst defending average spread (>110 b.p.)

27

1H2002 1H2003

468

548+17.0%

Commercial initiatives help counteract

macroeconomic slowdown

(Eu

ro m

i llio

n)

BNL SpA: Retail Commercial Initiatives

PERSONAL/CONSUMER FINANCE(new production)

28

BNL SpA: Retail Commercial Initiatives

Continuing growth in package accounts offering banking and non-banking services to mass market clients

30/06/02 31/12/02

256,000

(No. of

con

tract

s)

30/06/03

300,000

341,000

+33%

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

ContoPerTe(stocks)

29

BNL Group: Income on Financial Transactions

Significant growth in profits from financial transactions

(Euro

mill

ion)

1H02

72

1H03

99+37.5%

QoQ evolution YoY comparison

Average2002

28

2Q02

37

1Q03

63

2Q03

36

driven by increased activity in structured products with clients (+73%)

boosted by profit taking in first quarter 2003

30

BNL Group: Operating Costs

Personnel expenses

Administrative expenses

Depreciation

+0.2%

-3.4%

Continuing headcount reduction counters impact from domestic labour contract

Cost control action leads to contraction of

expenses especially in logistics, IT and

procurement

Overall cost reduction leads to an improvement in the cost income ratio

1H02 1H03

968

551

326

91

-0.8%

1Q03

479

Average2002

504

2Q02

493

Personnelexpenses

Administrativeexpenses

Depreciation andamortisation

QoQ evolution

YoY comparison

(Euro

mill

ion)

960

Cost/Income ratio:60.3%

(63.2% in 1H02)

Quarterly evolution points to a declining

trend

552

315

93

2Q03

480

+2.2%

31

BNL Group: Personnel Reduction

BNL Group personnel*

18,804

17,912

30/06/03

-4.7%

30/06/02

1H03 net headcount reduction: -393

of which:

-556 exits

and

+163 recruitments

Acceleration in personnel reduction trend confirmed

* Excluding Argentina

32

BNL Group: Provisions & Write-Downs andExtraordinary ItemsBNL Group: Provisions & Write-Downs andExtraordinary Items

Net Write-downs and net ProvisionsNet Write-downs and net Provisions (316) +18.8%

Net extraordinary itemsNet extraordinary items (63) +152.0%

1H2003YoY

% change

improving coverage

responding to weakmacroeconomic scenario

credit risk provisioningratio at 88 bp of loan book

Euro 61 mln refer to

extraordinary personnel

costs, accounted

as incurred

Confirmation of cautious provisioning policy

Extraordinary items affected by personnel reduction charges

of which: Credit risks

Other risks

(254)

(62)

+38%

-24%

33

BNL Group: Asset Quality

Contained increase in gross problem loans

Improvement in coverage ratio

Problem loans coverage ratio improves to 43.2%(from 41.2% at year-end 2002)

Net Substandard Loans (“Incagliati”)

Net Doubtful Loans (“Sofferenze”)

Gross problem loans

31/12/02

5,043

1,366

3,677

(Euro

mill

ion)

+2.4%

Net problem loans

31/12/02

3,126

1,069

2,057

(Euro

mill

ion)

-1.0%

30/06/03

5,166

1,255

30/06/03

3,094

3,9112,109

985

34

Net amounts Coverage

31/12/02 30/06/03 31/12/02 30/06/03

619

Country risk exposure *

49941.9% 42.3%+0.4 p.p.-19.4%

Continuing reduction in net exposure to countries at risk with

an improved level of overall coverage

* Excludes fully provisioned intra-group exposure to Argentina and is calculated in accordance

with Bank of Italy regulations

(Euro

mill

ion)

BNL Group: Country Risk

35

As a result of the provisions set aside in

the past, the investment and all forms

of cross-border intra-group exposure

are fully provisioned.

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 Group results do not consolidate

the Argentinean activities because of

the continuing uncertainty of the

local regulatory environment.

BNL Group: Argentina

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

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)

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)Corporate: Includes SMEs and investment banking activities, leasing and factoring (pro rata where relevant)

Corporate Centre: Includes problem loans, treasury activities, trading book, fixed assets, investments and subsidiaries not included in other segmentsCorporate Centre: Includes problem loans, treasury activities, trading book, fixed assets, investments and subsidiaries not included in other segments

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

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

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)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)International: Includes activities of foreign branches (excluding Large Corporate), foreign subsidiaries (excluding Argentina) and investment banking (pro rata)

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

(Euro

mill

ion)

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%Cost/Income 68.0% -527 bp

PROVISIONS (88) 28.0% 15.1%

NET PROFIT 83 82.9% 27.8%

CAPITAL ABSORBED

NET RETURN ON ALLOCATED CAPITAL

30/06/03 % on

total % on 2002

BNL Group: Retail activities

RETAIL RWA breakdownSector RWA = Euro 12,597 mln

Percentage of Group RWA

Retail mortgages

Other retail

Small businesses

Private

0.8%

12.6% 15.5%

40.7%

30.5%

19.4%

Subsidiaries

965 23.5% -5.0%

17.4% +446 bp

39

2.2%

37 4.3% -9.7%25 3.5% 50.7%63 3.9% 7.8%

38 6.1% 11.3%Cost/Income 38.7% -190 bp

(0) 0.2% -42.0%

23 23.2% 20.3%

BNL Group: Public Administration activities

Percentage of Group RWA

Sector RWA = Euro 1,418 mln

30/06/03 % on total

% on 2002

(Euro

mill

ion)

Interest income Non-interest income TOTAL INCOME

OPERATING RESULT

PROVISIONS

NET PROFIT

CAPITAL ABSORBED 85 2.1% -1.1%

55.0% +981 bpNET RETURN ON ALLOCATED CAPITAL

40

34.7%

281 32.7% 12.3%150 20.5% 10.1%431 27.1% 11.6%

269 42.6% 25.2%Cost/Income 37.6% -678 bp

(108) 34.1% 6.0%

97 97.3% 51.9%

CORPORATE RWA breakdown

BNL Group: Corporate activities

Percentage of Group RWA

Sector RWA = Euro 22,544 mln

30/06/03 % on total

% on 2002

(Euro

mill

ion)

Interest income Non-interest income TOTAL INCOME

OPERATING RESULT

PROVISIONS

NET PROFIT

CAPITAL ABSORBED

3.0%0.3%

71.5%

25.2%

1,353 32.9% 7.2%

14.5% +428 bp

Middle market

Financial institutions

Investment banking

Subsidiaries(Locafit + Ifitalia)

(commercial activities)

NET RETURN ON ALLOCATED CAPITAL

41

14.9%

54 6.2% 10.2%32 4.4% 12.8%86 5.4% 11.2%

62 9.9% 14.3%Cost/Income 27.1% -201 bp

(12) 3.7% -75.2%

31 30.9% n.s.

LARGE CORPORATE RWA breakdown

BNL Group: Large Corporate activities*

Percentage of Group RWA

Sector RWA = Euro 9,664 mln

*Sector includes approximately 200 large groups (Italian and International), managed on a relationship basis

Foreign

Italy

30/06/03 % on total

% on 2002

(Euro

mill

ion)

Interest income Non-interest income TOTAL INCOME

OPERATING RESULT

PROVISIONS

NET PROFIT

CAPITAL ABSORBED

Subsidiaries(Ifitalia)

4.1%

11.4%

84.5%

580 14.1% -11.1%

10.8% n.s.NET RETURN ON ALLOCATED CAPITAL

42

8.1%

51 5.9% -23.3%47 6.4% 33.1%97 6.1% -3.7%

70 11.1% 6.0%Cost/Income 27.8% -660 bp

(92) 29.2% 40.5%

(18) -18.2% -482.5%

BNL Group: International activities1

INTERNATIONAL RWA breakdownSector RWA = Euro 5,244 mln

(1) Sector consists of foreign branches and subsidiaries, including loan book of Italian-related businesses, but excluding large corporates

Percentage of Group RWA

30/06/03 % on total

% on 2002

(Euro

mill

ion)

Interest income Non-interest income TOTAL INCOME

OPERATING RESULT

PROVISIONS

NET PROFIT

CAPITAL ABSORBED

24.5%

75.5%

BNL SpA foreign branches

Foreign subsidiaries*

* Excluding Argentina

Residual RWA after allocation to Corporate and Large Corporatesegments of relative portfolios including investment banking

315 7.7% -34.1%

-11.7% n.s.NET RETURN ON ALLOCATED CAPITAL

43

20.8%

49 5.7% -36.3%116 15.9% 62.7%166 10.4% 11.2%

(48) -7.6% -25.9%

(15) 4.8% -94.3%

(116) -116.1% -2.9%

BNL Group: Corporate Centre

CORPORATE CENTRE RWA breakdownRWA = Euro 13,544 mln

Percentage of Group RWA

30/06/03 % on total

% on 2002

(Euro

mill

ion)

Interest income Commission income TOTAL INCOME

OPERATING RESULT

PROVISIONS

NET PROFIT

CAPITAL ABSORBED

Problem loans

Treasury &Trading book

Investments &Subsidiaries

Fixed assets

Other

813 19.8% 7.8%

-28.9% +320 bp

7.3%

16.6%

21.3%52.9%

1.8%

NET RETURN ON ALLOCATED CAPITAL

44

RWA% on total

Net Profit

% on total

Capital absorbed

% on total

Net Return onAllocated Capital %

Corporatecentre TOTAL Intl. Retail P.A. Corporate

BNL Group: Breakdown by Business Area

Cost / Income

BNL Group management accounts (30/06/03)

LargeCorp.

* Total capital absorbed has been re-adjusted to the actual Group’s Tier 1 capital

100%

100%

19% 2% 35% 15% 8% 21%

83% 23% 97% 31% -18% -116%

28% 2% 39% 17% 9% 24%

17.4% 55.0% 14.5% 10.8% -11.7% -28.9% 5.9%

12,597 1,418 22,544 9,664 5,244 13,544 65,010

100

60.3%

3,450 *

Operating Income

% on total

100%

38% 6% 43% 10% 11% -8%

632 240 38 269 62 70 (48)

83 23 97 31 (18) (116)

68.0% 38.7% 37.6% 27.1% 27.8% n.s.

965 85 1,353 580 315 813

Total Income

% on total

100%

47% 4% 27% 5% 6% 10%

1,591 749 63 431 86 97 166

Operating Costs

% on total

100%

53% 3% 17% 2% 3% 22%

(960) (509) (24) (162) (23) (27) (214)

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

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%

Income taxes for the period -110 118 ---Change in the reserve for general banking risks -40 178 ---

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%

Total assets 82,631 83,711 -1.3%

Deposits from customers 53,461 53,354 0.3%

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%

LIABILITIES AND SHAREHOLDERS' EQUITY

49

31.12.2002 30.06.2003(1)

TOTAL ASSETS 1,351

Cash and deposits with Central Bank 245

Loans 492 of which - Net NPLs 24

(Coverage %)

Securities and Participations

of which

- Public sector (incl. Bono Cobertura)

Other assets

TOTAL LIABILITIES

Deposits from customers

Intra-group lines

Subordinated loan

Other liabilities

(Euro mln) (1)

30.06.2003

420

398

194

1,351

698

410

45

132

Net equity 66

including current year result of:

4,334

787

1,577

85

87%

1,346

1,276

624

4,334

2,240

1,314

144

423

213

-49 -15

(1) Includes inflation accounting

(2) EUR/ARS = 3.2081

(Pesos mln)

Argentina: BNL S.A. - Balance Sheet Highlights

4,723

687

1,692

99

87%

1,638

1,518

706

4,723

2,317

1,584

141

421

260

-575

Fully provisioned at Parent

Company level

50

Investor’s Contacts

Banca Nazionale del LavoroInvestor Relations

Via Veneto, 11900187 ROMA

Tel.: +39 06 4702 7887Fax: +39 06 4702 7884

e-mail: investor-relations@bnlmail.comhttp://www.bnlinvestor.it