Sanpaolo IMI Group is one of the major Italian banking and finance realities. We publish a Social Report since 2002. In 2003 the reporting perimeter has been widened from the Parent Bank to the entire Group: we report on the Group''s activities, their social and environmental impacts and on the achievement of the objectives set last year. We have identified new objectives for this year for each group of stakeholders.

Some of the main actions undertaken to address the GC issues in 2003 were:
- Adoption of an Ethical Code, defining the general principles and rules of conduct which all the internal and external interlocutors must adhere to (direct link: http://www.grupposanpaoloimi.com/scriptIr/investor/en/ambiente_sociale/en_codice_etico.jsp).
- Adoption of charters of values which confirm the importance of operating in the interest of customers and the respect toward the ethical principles recognized by the Group. These were accompanied by intensive training of employees (direct link: http://www.grupposanpaoloimi.com/scriptIr/investor/en/ambiente_sociale/en_policies.jsp?lang=en).
- Accomplishment of further significant steps in compliance with the provisions of the American law, in particular the Sarbanes-Oxley Act (Sanpaolo IMI is quoted on the New York Exchange).
- Further reduction in energy consumption and increased use of renewable energy (direct link: http://www.grupposanpaoloimi.com/scriptIr/investor/en/ambiente_sociale/en_impatti_ambientali_diretti.jsp).
- Initiatives in favour of social and financial inclusion (direct link http://www.grupposanpaoloimi.com/scriptIr/investor/en/ambiente_sociale/en_sponsorizzazioni.jsp).

With respect to social and financial inclusion, Sanpaolo IMI seeks to enhance the opportunity for personal and socio-economic growth both to Italians and foreigners. The following initiatives were undertaken:

- Participation in a social micro-credit project in partnership with a Foundation (Compagnia di Sanpaolo) and with three NGOs. Overcoming a merely charitable criteria, this initiative provides an opportunity for people with difficult access to loans and who, either singularly or in association with others in the form of partnerships or cooperative societies, intend to start up or develop projects aimed at creating an employment and/or developing a business activity.

- Setting up of a Multiethnic Point to support the needs for consultancy and transactions of extra-UE customers and the creation of specific products and services such as a basic current account for a moderate charge and an economic and secure service for transferring money abroad.

- Introduction of a "Basic banking service" facilitating the first access to the bank and to its main services for those with limited financial needs (the initiative is part of the "Clear deal" project promoted by the Italian Banking Association).

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(We are reporting below on the outcome of the micro-credit project. Outcomes of other initiatives and the objectives set for 2004 can be found in the 2003 Social Report).

In the first months of operation, non profit Bodies received more than 169 requests, of which 30 were accepted. In March 2004, loans totalling 315,200 euro were authorized for 26 of those accepted. The projects financed were extremely mixed: the majority of them were for commercial businesses (sale of furniture, African artifacts, scooters, clothing, etc.), or for businesses in the service sector (opening of a nursery school, start up of a dry laundry, Internet services, etc.). In some cases the loan was for the purchase of automobiles or for driving licenses to start up an activity (such as activities to accompany the aged and disabled, etc.). The Fondazione Risorsa Donna, which financed female immigrants, also provided a business training for women.

Sanpaolo IMI is now promoting this project so that it could be repeated in other areas of Italy, by making available the operations of other Group''s Banking Networks.