3rd Quarter Results

Banco Bilbao Vizcaya Argentaria SA
25 October 2004





                          Results for January - September 2004


           Attributable net income at BBVA rises 18.4% to 2.06 billion euros




  • The Group improved recurrent margins, reinforced its competitive position
    and advanced its strategy of profitable growth


  • Operating profit grew faster in the first nine months of the year to 4
    billion euros, a 9% increase


  • The cost/income ratio improved 1.9 percentage points to 44.8% with
    advances in all areas, especially in Mexico where it is now below 40%


  • Return on equity (ROE) rose to 19.7%, compared to 19.2% a year earlier.


  • In Retail Banking lending grew faster (19.2%) as did customer funds (9.2%)
    and operating profit (11.5%)


  • Wholesale and Investment Banking increased attributable net income by
    11.5% based on higher business activity and net fee income


  • Both Mexico and the Americas as a whole now cover local currency
    depreciation and have increased their operating profit in current euros by
    4.5% and 6.4%, respectively.


  • The Americas had a record quarter in operating profit and attributable net
    income. The latter climbed 60% to 866 million euros.


  • The growth in lending activity in Mexico accelerated to 28% and it
    practically doubled attributable net income to 580 million euros.


  • The interim dividend is 11.1% higher and earnings per share (EPS) are up
    12.4%


  • The Group maintains its BIS ratio at 12% and core capital at 6% - as per
    this year's targets


  • BBVA again improved asset quality with a decline in the NPL ratio to a
    record low of 1.05% and with coverage of 235.8%


    BBVA generated attributable net income of 2.06 billion euros in the first
    nine months of 2004. This was an increase of 18.4% over the same period in
    2003. The improvement was based on higher growth in the more recurrent forms
    of income. Operating profit grew 9% to 4 billion euros. Attributable net
    income in the third quarter was 704 million euros, an increase of 23.2%
    compared to 2003.


    The results in the year to September added strength to BBVA's strategy of
    profitable growth and the improvement was reflected in all the key
    indicators. Return on equity (ROE) increased from 19.2% to 19.7%, defaults
    hit an all-time low with the NPL ratio at 1.05% while coverage increased to
    235.8%, the cost/income ratio improved 1.9 points to 44.8% and the BIS ratio
    stands at 12% with core capital at 6%.


    The positive trend in activity and results led to an 11.1% increase in the
    second interim dividend this year and this was paid on October 11th.
    Earnings per share (EPS) rose 12.4% in the year to September compared to
    10.6% in June.


    In recent months economic activity in the European Union continued to
    recover while in the United States it was relatively unchanged. Latin
    America consolidated growth at a level that was noticeably higher than the
    average in recent years with all the main countries performing well.
    However, oil prices - which have constantly hit new highs - continue to be
    the main source of concern. Currency markets were quiet during the quarter
    although the main Latin-American currencies are still recording an overall
    depreciation for the last 12 months.


    BBVA's business activity and results continued to accelerate and there was a
    constant improvement in quality. Another significant factor was the
    improvement in the Americas and especially in Mexico. For the first time in
    recent quarters these countries are now absorbing currency effects and have
    increased their operating profit in current euros (6.4% for the Americas as
    a whole with 4.5% in Mexico).


    In the third quarter BBVA announced important growth operations in Mexico
    and the US. They include the acquisition of Hipotecaria Nacional (the leader
    in the Mexican mortgage market) and Laredo National Bancshares (a leading
    banking group in South Texas).


    It is anticipated that these operations will conclude in the first quarter
    of 2005. They follow on the heels of the Valley Bank acquisition in
    California and they will aid BBVA's expansion in the US Hispanic market-
    which is part of its profitable growth strategy. These operations will start
    to add value from day one and they are clearly in line with the Group's
    strategy.



    The most relevant aspects of the BBVA Group in the first nine months of 2004
    are:



  • Attributable net income in the third quarter (704 million euros) was 23.2%
    higher than the same period in 2003 and is the highest figure since the
    second quarter of 2001. Thus cumulative attributable net income from January
    to September 2004 came to 2.06 billion euros-a year-on-year increase of
    18.4% (an increase of 22.6% at constant exchange rates).





  • Earnings per share increased 12.4% while ROE now stands at 19.7% (19.2%
    for the same period of 2003) and ROA is 1.04%.





  • The Group continues to enjoy high quality results. The growth in
    attributable net income is based on the positive trend in operating profit
    while the effect of the intermediate items on the income statement is
    largely neutral.





  • Year-on-year growth in operating profit continues to accelerate: the 1.35
    billion euros generated in the third quarter exceeded those of the same
    period in 2003 by 11.6% at current exchange rates and by 17.9% at constant
    rates. Thus the cumulative figure for the first nine months of 2004 (4
    billion euros) grew 9.0% at current exchange rates and 15.6% at constant
    rates (7.7% and 14.5%, respectively, in the first half).





  • Cumulative net interest income in the first three quarters came to 5.26
    billion euros, 4.7% more than the same period in 2003 (or 10.8% more at
    constant rates). This was due to faster business growth-especially in
    lending activities in Spain and in the Americas.





  • Net fee income came to 2.52 billion euros. Year-on-year this was 3.0%
    higher at current exchange rates and 9.4% higher at constant rates, ie,
    similar to the first half year.





  • Operating expenses were contained and fell 1.9% at current exchange rates
    while they increased 3.4% at constant rates. Together with higher revenues
    this meant that the cost/income ratio improved to 44.8%, compared to 46.7%
    in the first nine months of 2003. Although the cost/income ratio improved in
    all business areas, the improvement was especially significant in Mexico,
    where it fell below 40%.





  • Retail banking in Spain and Portugal continued the upward trend of recent
    quarters with year-on-year increases of 19.2% in lending activities and 9.2%
    in customer funds (deposits, mutual funds and pension funds). The equivalent
    figures at 30-Jun-04 were 18.0% and 8.9%, respectively. With operating
    expenses flat, operating profit grew by 11.5% (11.0% in the first half).



  • Lending and deposits in terms of average balances improved in the
    Wholesale and Investment Banking Area, and fee income grew 18.7%.
    Attributable net income climbed 11.5% year-on-year.





  • The Americas had another record quarter in terms of operating profit and
    attributable income. At current exchange rates operating profit grew at 6.4%
    year-on-year (it declined 2.4% in the first half). At constant exchange
    rates the increase of 21.3% was nearly double the figure at 30th June
    (11.2%). A decisive contribution to this positive performance was provided
    by the 20.9% increase in net interest income, boosted by the increase in
    business activity (22.7% in lending and 11.4% in traditional deposit-taking)
    and by changes in interest rates. Profit after tax rose by 33.2% and
    attributable net income climbed 79.9% (60.0% at current rates) due to lower
    minority interests in Bancomer.





  • Mexico also increased its operating profit year-on-year at current rates
    in the year to September and all earnings figures on the income statement
    grew faster. Lending grew faster (up 28.0% in peso terms) and customer funds
    grew at the same rate (12.6%). Both activities focus on the most profitable
    areas. Therefore operating profit grew 21.9% (double the figure of 10.9% for
    the first half year) and net income climbed 42.5%. Attributable net income
    came to 580 million euros-nearly double the amount for Jan-Sep 2003.





  • The Group's asset quality continues to be high. At the end of the quarter
    non-performing loans stand at 1.05%. This is lower than Jun-04 (1.11%) or
    the level twelve months earlier (1.52%). Coverage now stands at 235.8%
    (223.4% at 30-Jun-04 and 180.2% at 30-Sep-03).





  • The capital base also continues to be solid. Core capital at 30-Sep-04 was
    6.0% - achieving the target for year end. Tier I was 8.0% and the BIS ratio
    12.0%.





  • The second interim dividend of 0.10 euros per share was paid on 11th
    October. Like the first interim dividend it represents an increase of 11.1%
    over payments in 2003.


  BBVA Group Highlights (Consolidated figures)                                                                        
                                                      30-09-04               30-09-03                         % (YoY) 
  BALANCE SHEET (millions                                                                                             
  of euros)                                                                                                           

  Total assets                                         310,333                 284,816                             9.0
  Total lending (gross)                                170,067                 150,217                            13.2
  On-balance-sheet                                     195,899                 179,369                             9.2
  customer funds                                                                                                      
  Other customer funds                                 123,009                 112,032                             9.8
  managed                                                                                                             
  Total customer funds                                 318,908                 291,401                             9.4
  managed                                                                                                             
  Shareholders' funds                                   15,659                  13,141                            19.2
  (including profit for                                                                                               
  the year) (1)                                                                                                       

  INCOME STATEMENT                                                                                                    
  (millions of euros)                                                                                                 
  Net interest income                                    5,261                   5,023                             4.7
  Core revenues                                          7,784                   7,471                             4.2
  Ordinary revenues                                      8,153                   7,974                             2.2
  Operating profit                                       4,016                   3,686                             9.0
  Pre-tax profit                                         3,233                   2,977                             8.6
  Attributable net income                                2,059                   1,739                            18.4

  DATA PER SHARE AND                                                                                                  
  MARKET CAPITALISATION                                                                                               
  Share price                                            11.08                    8.86                            25.1
  Market capitalisation                                 37,571                  28,315                            32.7
  (million euros)                                                                                                     
  Net attributable profit                                 0.61                    0.54                            12.4
  Book value                                              4.62                    4.11                            12.3
  PER (Price/earnings                                     14.1                    12.7                                
  ratio; times) (1)                                                                                                   
  P / BV (Price / Book                                     2.4                     2.2                                
  value ratio; times)                                                                                                 

  RELEVANT RATIOS (%)                                                                                                 
  Operating income / ATA                                  1.78                    1.78                                
  ROE (Attributable net                                   19.7                    19.2                                
  income / Average equity)                                                                                            
  ROA (Net income /                                       1.04                    1.08                                
  Average total assets)                                                                                               
  RORWA (Net income / Risk                                1.79                    1.83                                
  weighted assets)                                                                                                    
  Cost / income ratio                                     44.8                    46.7                                
  NPL ratio (Nonperforming                                1.05                    1.52                                
  assets/Total risks)                                                                                                 
  NPL coverage ratio                                     235.8                   180.2                                

  CAPITAL ADEQUACY RATIOS                                                                                             
  (BIS rugulations) (%)                                                                                               
  Total                                                   12.0                    12.5                                
  Core capital                                             6.0                     6.1                                
  TIER I                                                   8.0                     8.2                                

  OTHER INFORMATION                                                                                                   
  Number of shares                                       3,391                   3,196                                
  (million)                                                                                                           
  Number of shareholders                             1,117,771               1,179,013                                
  Number of employees                                   84,617                  85,687                                
  . Spain                                               30,820                  30,975                                
  . America (2)                                         51,831                  52,666                                
  . Rest of the world                                    1,966                   2,046                                
  Number of branches                                     6,936                   6,916                                
  . Spain                                                3,372                   3,347                                
  . America (2)                                          3,378                   3,371                                
  . Rest of the world                                      186                     198                                



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

(1) The 9M04 PER is calculated taking into consideration the median of the
analysts' estimates (October 2004).

(2) Including those relating to the BBVA Group' s banking and pension fund
management activities in all Latin-American countries in which it is present.

  Consolidated income statement                                                                                       
  (Million euros)                                                                                                     
                                             9MH04                 % (YoY)                    9M03  Memorandum item:  
                                                                                                    % at constant    
                                                                                                    exchange rates    
  Financial revenues                         9,172                   (3.9)                   9,543               1.9  
  Financial expenses                       (4,434)                   (8.6)                 (4,852)              (3.3) 
  Dividends                                    523                    57.4                     332              58.7  

  NET INTEREST INCOME                        5,261                     4.7                  5,023                10.8 
  Net fee income                             2,523                     3.0                   2,448                9.4 
  CORE REVENUES                              7,784                     4.2                  7,471                10.4 
  Net trading income                           369                  (26.6)                     503             (23.7) 

  ORDINARY REVENUES                          8,153                     2.2                  7,974                 8.2 
  Personnel costs                          (2,359)                   (2.8)                 (2,428)                1.6 
  General expenses                         (1,294)                   (0.2)                 (1,297)                6.8 

  GENERAL ADMINISTRATIVE EXPENSES          (3,653)                   (1.9)                (3,725)                 3.4 
  Depreciation and amortization              (340)                  (12.1)                   (387)              (7.8) 
  Other operating income and expenses        (144)                  (18.3)                   (176)             (10.7) 
  (net)                                                                                                               

  OPERATING PROFIT                           4,016                     9.0                  3,686                15.6 
  Net income from companies accounted          309                     8.3                     285               10.1 
  for by the equity method                                                                                            
  Memorandum item: correction for            (298)                    39.5                   (214)               41.2 
  payment of dividends                                                                                                
  Amortization of goodwill                   (496)                    15.2                   (431)               15.2 
  Net income from Group transactions           358                   (9.0)                     394              (9.1) 
  Net loan loss provisions                   (714)                  (32.2)                 (1,054)             (28.8) 
  Net securities writedowns                      -                       -                      -                   - 
  Net extraordinary income (loss)            (240)                    n.m.                      97               n.m. 

  PRE-TAX PROFIT                             3,233                     8.6                  2,977                14.1 
  Corporate income tax                       (882)                    20.8                   (730)               27.9 

  NET PROFIT                                 2,351                     4.6                  2,247                 9.6 
  Minority interests                         (292)                  (42.6)                   (508)             (37.4) 
  . Preferred shares                         (147)                  (12.6)                   (168)             (12.6) 
  . Minority interests                       (145)                  (57.3)                   (340)             (51.3) 

  NET ATTRIBUTABLE PROFIT                    2,059                    18.4                  1,739                22.6 



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