3rd Quarter Results

Banco Bilbao Vizcaya Argentaria SA
27 October 2003

                                                                   PRESS RELEASE



27th October 2003


                     Year-to-date results at September 2003


       Attributable net income at BBVA rises 5.1% to 1,739 million euros


  • Attributable Net Income in the third quarter climbed 17% to 572 million
    euros
  • Return on equity (ROE) increased to 19.2%, which was 1.8 percentage points
    more than a year ago
  • Operating profit on domestic business (the Group without the Americas)
    grew by 6.6% and attributable net income grew by 9.3%
  • Retail banking business is growing faster and attributable net income was
    914 million euros (up 0.5%)
  • Wholesale and Investment Banking increased attributable net income by 37%
    to 338 million euros
  • In Mexico attributable net income grew by 25% and in the rest of the
    Americas by 96.1% in local currency terms
  • Cost efficiency improved in all three business areas to 46.1%, compared to
    47.5% a year ago
  • The non-performing loans ratio fell once more, to 1.46% (excluding
    Argentina and Brazil) and coverage is now 195.6%. The ratio in the Spanish
    resident sector is 0.75%.
  • BBVA reinforced its capital base: core capital rose to 6.1%, Tier 1
    capital to 8.2% and the BIS ratio increased to 12.5%


In the first nine months of the year attributable net income at BBVA rose to
1,739 million euros - an increase of 5.1% over the same period last year. The
Group's domestic businesses increased their attributable net income by 9.3%
while, in local currency terms, the Americas area increased by 24.1%. The
quarterly figures reflect considerable improvement in volume and earnings.

BBVA ended the first nine months of 2003 with important improvements in the
return on equity (ROE) -which grew by 19.2% compared to 17.4% last year. The
capital base strengthened (the BIS ratio is now 12.5% and core capital 6.1%),
the cost/income ratio for all businesses continued to improve and non-performing
loan ratios fell in Spain and for the Group as a whole.

The positive results at BBVA in the third quarter were achieved despite slow
growth in the world economy and especially in the euro zone where some countries
are now in recession. The Spanish economy, however, continued to grow at more
than 2%. Improvement is also under way in the United States and in Latin
America. At the same time interest rates remained at all-time lows, bringing
margins in the banking sector under pressure. Stock markets still lack clear
direction and the euro strengthened further against the dollar during the
quarter.

Against this background, BBVA recorded improvements in all the Group's business
lines. In fact volume and results exceeded the bank's own internal forecasts and
budgets. In summary, the figures confirm the expectations of a 25% increase in
attributable net income by the end of year - as announced by the COO, Jose
Ignacio Goirigolzarri, at the end of the half-year.

The attributable net income of BBVA during the third quarter was 572 million
euros, 17.0% more than the same quarter last year.

Recurrent earnings

In summary BBVA's attributable net income is growing faster. In the first nine
months it rose to 1,739 million euros (an increase of 5.1%, compared to 0.1% in
the first half-year). At constant exchange rates the increase in the quarter
would be 22.1% and the increase in the first nine months would be 13.4%.

The increase in net income was mainly due to the improvement in operating
profit. In the third quarter and for the first time this year, it was higher
than the same period in 2002 in current euro terms. If Argentina and Brazil are
consolidated by the equity method, the operating profit would be 1,229 million
euros, increasing by 4.1% in current euros and by 11.2% if the effect of
exchange rates is excluded.

This significant improvement can also be seen in the nine-month figure for
operating profit, which has grown 10.6% in constant euros and declined by only
4.1% in current euro terms.

Therefore, at the end of third quarter BBVA has confirmed the expected
improvements in activity and results. It also demonstrated its ability to
generate recurrent earnings with the re-launch of high-street banking business
in Spain, with the confirmed success of the Wholesale and Investment Banking
business model and with the clear improvement in the Americas.


Other significant features of the balance sheet and income statement are as
follows:


  • The return on equity (ROE) rose to 19.2%, compared to 17.4% for the same
    period a year ago. Return on assets also increased to 1.08%.

  • Expenses were kept under control with zero increase in the domestic
    businesses (Retail Banking, Wholesale Banking and Corporate Activities) and
    in the Americas increases were lower than inflation rates. The combination
    of cost control and higher revenues led to a further improvement in the cost
    /income ratio, which fell to 46.1% in the first nine months (compared to
    47.5% last year).

  • Items below the line on the income statement did not contribute to profit
    growth. This was the combined effect of a number of factors: an increase in
    earnings via the equity method, lower provisions for deterioration in
    exchange rates, the large provisions made for country-risk in Argentina in
    2002, lower capital gains and higher taxes (which returned to more normal
    levels after last year).

  • In the third quarter the level of business activity in Retail Banking in
    Spain and Portugal continued to improve. This applied to lending activity as
    well as to customer funds and it therefore had a positive effect on net
    interest income and net fee income. This business area generated
    attributable net income of 914 million euros (up by 0.5%) and a 2.2%
    increase in operating profit. It has been applying an innovative marketing
    policy in recent months with the launch of fixed-rate mortgages, with
    products tailored for SMEs and especially with the Extra 5 Fund.

  • Wholesale and Investment Banking continued to improve, confirming the
    success of the new business model. Operating profit rose by 16.4% and
    attributable net income by 37.0%.

  • In the Americas attributable profit in the third quarter was the highest
    since the second quarter of 2002, growing by 11.7% year-on-year in current
    euros (26.9% in local currency). In cumulative terms for the nine-month
    period and in local currency, operating profit grew by 15.6% and
    attributable net income by 24.1%.

  • In Banking in America excluding Mexico, attributable net income grew by
    42.4% at current exchange rates and 96.1% in local currency terms, to 135
    million euros.

  • In the Americas, Mexico continues to exhibit strength despite the fall in
    interest rates. In local currency operating profit grew by 27.2% and
    attributable net income grew by 25% to 298 million euros. BBVA recently
    announced its intention to raise its holding in BBVA Bancomer by 3.77%,
    bringing the total to 59.42%.

  • BBVA again reduced the non-performing loan ratio to 1.46% at 30th
    September excluding Argentina and Brazil. This compares favourably with June
    (1.57%) and September 2002 (1.75%). Coverage has now reached 195.6%.
    Non-performing loans in the Spanish resident sector now stand at 0.75%,
    which is 0.13 percentage points less than a year ago. This figure compares
    favourably with the overall Spanish banking system.

  • The capital base of the Group continues to strengthen. The BIS ratio
    recovered the 12.5% level (compared to 12% in June), core capital rose to
    6.1% and Tier 1 capital to 8.2%.

BBVA Group Highlights (Consolidated figures)


BALANCE SHEET (millions of euros)
Attributable net income at BBVA rises  

                                                                                                                      
  BBVA Group Highlights (Consolidated figures)                                                                        
                                                                              30-09-03     30-09-02    % change (YoY) 
  BALANCE SHEET (millions of euros)                                                                                   

  Total assets                                                                 284.816      280.253               1,6 
  Total lending (gross)                                                        150.217      146.412               2,6 
  Customer funds recorded on balance sheet                                     179.369      177.502               1,1 
  Other customer funds managed                                                 112.032      108.962               2,8 
  Total customer funds managed                                                 291.401      286.464               1,7 
  Shareholders' funds (including profit for the year)                           13.141       13.073               0,5 

  INCOME STATEMENT (millions of euros)                                                                                

  Net interest income                                                            5.023        5.995            (16,2) 
  Core revenues                                                                  7.471        8.743            (14,5) 
  Ordinary revenues                                                              7.974        9.277            (14,0) 
  Operating profit                                                               3.686        4.251            (13,3) 
  Operating profit (Argentina and Brazil consolidated under equity               3.678        3.837             (4,1) 
  method)                                                                                                             
  Pre-tax profit                                                                 2.977        2.656              12,1 
  Attributable net income                                                        1.739        1.655               5,1 

  DATA PER SHARE AND MARKET CAPITALISATION (30-09)                                                                    

  Share price                                                                     8,86         7,56              17,2 
  Market capitalisation (millions of euros)                                     28.315       24.161              17,2 
  Attributable net income                                                         0,54         0,52               5,1 
  Book value                                                                      4,11         4,09               0,5 
  PER (Price Earning Ratio; times) (1)                                            13,2         14,1                   
  P / BV (Price/Book value; times)                                                 2,2          1,8                   
  RELEVANT RATIOS (%)                                                                                                 
  Operating income / ATA                                                          1,78         1,95                   
  ROE (Attributable net income / Average equity)                                  19,2         17,4                   
  ROA (Net income / Average total assets)                                         1,08         1,03                   
  RORWA (Net income / Risk weighted assets)                                       1,83         1,80                   
  Cost / income ratio                                                             46,7         46,8                   
  NPL ratio                                                                       1,96         2,09                   
  Coverage ratio                                                                 160,2        164,2                   
  CAPITAL ADEQUACY RATIOS (BIS rules) (%)                                                                             
  Total                                                                           12,5         12,6                   
  Core capital                                                                     6,1          6,0                   

  OTHER INFORMATION                                                                                                   

  Number of shares (millions)                                                    3.196        3.196                   
  Number of shareholders                                                     1.179.013    1.189.047                   
  Number of employees                                                           85.687       93.949                   

  . Spain                                                                       30.975       31.520                   
  . America (2)                                                                 52.666       60.374                   
  . Rest of the world                                                            2.046        2.055                   

  Number of branches                                                             6.916        7.578                   

  . Spain                                                                        3.347        3.396                   
  . America (2)                                                                  3.371        3.972                   
  . Rest of the world                                                              198          210                   

  N.B.: Non-audited data. Consolidated statements follow generally accepted accounting principles of Bank of Spain    
  Circular 4/91 and later Circulars.                                                                                  

  (1) The 9M03 PER is calculated taking into consideration the median of the analysts' estimates (October 2003).      

  (2) This heading includes BBVA Group' s banking and pension management activities in all Latin American countries   
  in which it is present.                                                                                             
 
              Consolidated income statement                                                              
              (Millions of euros)                                                                        
                                                                       9M03     % change(YoY)       9M02 

              Financial revenues                                      9.543            (28,9)     13.421 
              Financial expenses                                    (4.852)            (37,0)    (7.707) 
              Dividends                                                 332              17,9        281 

              NET INTEREST INCOME                                     5.023            (16,2)      5.995 

              Net fee income                                          2.448            (10,9)      2.748 

              CORE REVENUES                                           7.471            (14,5)      8.743 

              Net trading income                                        503             (5,7)        534 

              ORDINARY REVENUES                                       7.974            (14,0)      9.277 

              Personnel costs                                       (2.428)            (13,4)    (2.803) 
              General expenses                                      (1.297)            (15,5)    (1.535) 

              GENERAL ADMINISTRATIVE EXPENSES                       (3.725)            (14,1)    (4.338) 

              Depreciation and amortization                           (387)            (20,0)      (485) 
              Other operating revenues and expenses (net)             (176)            (13,0)      (203) 

              OPERATING PROFIT                                        3.686            (13,3)      4.251 

              Net income from companies under the equity method         285              n.m.       (44) 
              Memorandum item: dividends received                     (214)              13,1      (189) 
              Amortization of goodwill                                (431)              10,1      (391) 
              Net income from Group transactions                        394            (13,7)        456 
              Net loan loss provisions                              (1.054)            (19,2)    (1.304) 
              Net securities writedowns                            -                     n.m.          3 
              Extraordinary items (net)                                  97              n.m.      (315) 

              PRE-TAX PROFIT                                          2.977              12,1      2.656 

              Corporate income tax                                    (730)              78,3      (409) 

              NET INCOME                                              2.247               --       2.247 

              Minority interests                                      (508)            (14,2)      (592) 
              . Preference shares                                     (168)            (21,4)      (213) 
              . Other                                                 (340)            (10,2)      (379) 

              ATTRIBUTABLE NET INCOME                                 1.739               5,1      1.655 
 
                                                                                                                      
  Consolidated income statement                                                                                       
  (Argentina and Brazil consolidated under the equity method)                                                         

  (Millions of euros)                                                                                                 
                                                           9M03     % change(YoY)    % change at constant         9M02 
                                                                                            exchange rate               
 

  Financial revenues                                     9.325             (17,6)                    (5,8)    11.322  
  Financial expenses                                    (4.655)            (24,1)                   (13,9)    (6.136) 
  Dividends                                                332               18,8                     22,2       280  

  NET INTEREST INCOME                                    5.002              (8,5)                      5,0     5.466  

  Net fee income                                         2.383              (8,9)                      4,6     2.617  

  CORE REVENUES                                          7.385              (8,6)                      4,9     8.083  

  Net trading income                                       448                3,0                     24,4       435  

  ORDINARY REVENUES                                      7.833              (8,0)                      5,8     8.518  

  Personnel costs                                       (2.366)            (10,1)                      1,0    (2.632) 
  General expenses                                      (1.248)            (11,7)                      4,8    (1.413) 

  GENERAL ADMINISTRATIVE EXPENSES                       (3.614)            (10,7)                      2,3    (4.045) 

  Depreciation and amortization                           (370)            (16,1)                    (3,9)      (441) 
  Other operating revenues and expenses (net)             (171)            (12,3)                      8,3      (195) 

  OPERATING PROFIT                                       3.678              (4,1)                     10,6     3.837  

  Net income from companies under the equity method        288               n.m.                     n.m.       (29) 
  Memorandum item: dividends received                     (214)              13,1                     17,5      (189) 
  Amortization of goodwill                                (431)              10,1                     10,1      (391) 
  Net income from Group transactions                       394             (13,7)                   (13,9)       456  
  Net loan loss provisions                                (883)            (25,0)                   (14,2)    (1.178) 
  Net securities writedowns                            -                     n.m.                     n.m.         3  
  Extraordinary items (net)                               (129)              85,6                     n.m.       (69) 

  PRE-TAX PROFIT                                         2.917               11,0                     25,1     2.629  

  Corporate income tax                                    (672)              76,7                    122,3      (380) 

  NET INCOME                                             2.245              (0,2)                     10,6     2.249  
  Minority interests                                      (506)            (14,7)                      2,1      (594) 
  . Preference shares                                     (167)            (21,4)                   (21,4)      (213) 
  . Other                                                 (339)            (11,0)                     19,8      (381) 

  ATTRIBUTABLE NET INCOME                                1.739                5,1                     13,4     1.655  
 
END  



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