Final Results

Banco Bilbao Vizcaya Argentaria SA
02 February 2004

PRESS RELEASE

02 FEB 04

                                  2003 Results

       Attributable net income at BBVA rises 29.5% to 2,227 million euros

 At the General Shareholders Meeting the Bank will propose an increase of 10.3%
                in the total dividend paid against 2003 results

    BBVA meets its goal of being one of the three top banks in the euro zone


  • Return on equity (ROE) rises to 18.4% compared to 13.7% in 2002

  • Efficiency improves by one point to 46.6% with improvements in all
    business areas and zero cost growth in domestic business

  • Earnings per share (EPS) grew by 29.5% and this puts the Bank at the head
    of the banking sector in Spain and in the Eurostoxx

  All three business areas recorded improved volume of activity and recurrent
                                    results


  • Retail banking in Spain and Portugal achieved attributable net income of
    1,239 million euros and recorded progressive growth in activity: lending
    increased by 13.9% and customer funds by 9%

  • Wholesale and Investment Banking reinforced the positive trend with an
    increase of 22.5% in attributable net income, which came to 468 million
    euros

  • The Americas Area increased attributable net income by 24% in local
    currency, to 715 million euros, gaining selective market share

  • BBVA Bancomer increased attributable net income by 24% in local currency,
    to 406 million euros

                        BBVA reinforced its capital base


  • Non-performing loans declined from 1.70% to 1.31% and coverage increased
    by 10 points to 201.1%, excluding Argentina and Brazil

  • The Group strengthened its solvency level: the BIS ratio rose to 12.7%
    with Tier 1 of 8.5% and core capital of 6.2%



In 2003 BBVA achieved attributable net income of 2,227 million euros with an
increase of 29.5% over 2002. This result, which amply exceeds the Bank's
objectives, means it will propose an increase of 10.3% in the total 2003
dividend, rising to 0.384 euros per share, at the General Shareholders Meeting
on 28th February. These results are supported by the performance of recurrent
business. There were improvements in the level of activity in all three business
areas, which rose steadily throughout the year.

This allowed the Bank to meet another of its announced goals: to be one of the
top three financial entities in the Eurostoxx in terms of earnings per share or
EPS (which grew by 29.5%), efficiency (which improved from 47.6% to 46.6% in
uniform terms) and in terms ROE (which improved from 13.7% to 18.4%). BBVA also
strengthened its balance sheet with lower non-performing loans and greater
coverage. The BIS ratio increased together with core capital to 12.7% and 6.2%,
respectively.

The year 2003 was characterised by a drop in interest rates, the depreciation of
the US and Latin-American currencies against the euro and the slowdown of
economic activity. This was accompanied by volatility in the financial markets
and especially by a climate of uncertainty in the first part of the year.

In this context, BBVA exceeded the initial goal of increasing attributable net
income by 25% and achieved income of 2,227 million euros, which was 29.5% higher
than the 1,719 million euros recorded in 2002. Calculated at constant exchange
rates, the increase would have been 42.7%.

Growth of attributable net income at BBVA increased progressively each quarter;
the figure was -12.4% in the first quarter, 0.1% at the half year, 5.1% in the
year to September and 29.5% at the close.

The performance of revenues on the more recurrent businesses had a notable
effect on the aforementioned evolution. With Argentina and Brazil carried by the
equity method and at constant exchange rates, all the income lines of the profit
and loss account grew. Net interest income grew by 5.9%, ordinary revenues grew
by 4.9% and the operating profit grew by 8.7%. This shows the trend in the
results, without the impact of the depreciation of Latin-American currencies.

The growth in the more recurrent sources of income was driven by the increase in
activity throughout the year. Thus, in Retail Banking the year-on-year increase
in lending activities accelerated to 13.9% at 31st December 2003, compared to
11.5% in June and total funds (the sum of deposits, mutual funds and pensions)
increased by 9% in December compared to 5.3% in June.

This progressive trend was also observed in the Americas where lending increased
by 10.7% in local currency (7.6% in the year to June) and traditional customer
funds plus mutual funds increased by 12.7% (11.7% at 30th June 2003).

The total activity of the Group grew 2.7% in the year to 287,150 million euros.
Total lending increased 4.7% to 153,271 million euros and total customer funds
under management grew 2.3% to 295,905 million euros. Excluding Argentina and
Brazil and at constant exchange rates, total assets grew 10.7%, lending grew
10.1% and customer funds under management grew 9.3%.

Increased activity in Retail Banking

As part of the positive developments in the level of the Group's activity and
its results, Retail Banking in Spain and Portugal achieved attributable net
income of 1,239 million euros (a decline of 2.1%) with a return on equity (ROE)
of 30.9%.

The recovery of activity and the marketing offensive based on innovation and
advanced launching of products and services starting in May 2003, compensated
the fall in interest rates. Operating profit grew by 0.7%, to 2,465 million
euros.

Lending activities in Retail Banking grew 13.9% by the end of the year and
achieved a stable market share. This growth was recorded in all segments:
individuals (14.3%) which included an increase of 18.5% in mortgage loans for
private home owners, business loans (17.1%) and SME Banking loans (14%). Growth
in all these segments accelerated during the course of the year.

In terms of customer funds (deposits, mutual funds and pension funds) a clear
recovery was also noted with growth of 9% (without the effect of the Law Courts
account) and this also helped the Group to maintain its market share.

In the area of Retail Banking there was a notable acceleration in net fee
income. This came to 409 million euros in the fourth quarter (the best quarter
in 2003). Fee income related to funds recovered and there was sustained growth
in the usual banking fees.

Despite the improvement in the non-performing loan ratio, which declined from 1%
to 0.88%, 492 million euros were earmarked for loan provisions. This was 13.6%
higher due to the increase in lending.

Efficiency of Retail Banking in Spain and Portugal continued to improve and at
the end of the year it stood at 44.7% compared to 44.8% in 2002.

Wholesale and Investment Banking confirmed recurrent results

The Wholesale and Investment Banking area in 2003 achieved attributable net
profits of 468 million euros with an increase of 22.5% over 2002. These figures
consolidate BBVA as the market leader in Spain. ROE improved from 19.5% in 2002
to 23% at the end of last year.

The key to this area is its capacity to generate recurrent results. These led to
growth of 12.6% in the operating profit for the year, which came to 654 million
euros.

The three main lines pursued by management were: appropriate price management
despite the fall in rates, new improvements in productivity where efficiency
improved from 35.6% to 31.7% by the end of the year and excellent risk control.
The non-performing loan ratio once again fell to 0.66% despite the air of crisis
in some international corporations.

The Americas: steady improvement - especially in Mexico

The Americas, excluding Argentina and Brazil, reached 715 million euros in
attributable net income. This figure represents an increase of 24% compared to
2002 in local currency terms (a decline of 2.8% in current euros). ROE in the
area grew from 22.7% to 24%.

In this area the most relevant aspect is the higher level of activity in lending
and especially in the gathering of deposits. There were general but selected
gains in market share in most regions.

In this context and in terms of constant euros, 2003 produced an increase of
10.5% in core revenues despite the fall in interest rates in the region. There
was a clear improvement in efficiency - from 46.0% to 44.1%.

In the Americas, Mexico provides the most important contribution to earnings.
Its attributable net profit grew by 24% in local currency to 406 million euros
thanks to improved activity in the more profitable lines of business. Good
management helped to counteract the sharp decline in interest rates and the
operating profit rose to 1,487 million euros - an increase of 25.4% in local
currency. Efficiency at BBVA Bancomer improved 3.8 points to 42.2%.

BBVA in the top three

In 2003 BBVA continued to apply its policy of building strength. This had an
effect on the health of its balance sheet and on its level of solvency. The
Group finished 2003 with improved levels of return, efficiency and EPS (which
rose 29.5%). Although the figures for other competitors are not yet known, it is
expected that the Bank has achieved its objective of being one of the top three
financial institutions in the Eurostoxx. In addition, by the end of the year it
will also be the European leader in terms of non-performing loans, coverage and
solvency.

Return on equity in 2003 was 18.4%, compared to 13.7% in 2002 and the return on
assets (ROA) rose to 1.04% from 0.85% a year earlier.

BBVA also improved its capital ratios. The BIS ratio is 12.7% compared to 12.5%
at the end of 2002 and the capital base surplus is 7,057 million euros. Tier 1
improved from 8.4% in 2002 to 8.5% in 2003 and core capital increased from 5.9%
to 6.2%.

In uniform terms (with Argentina and Brazil carried by the equity method)
efficiency improved once again from 49.9% in 2001 and 47.6% in 2002, to 46.6% in
2003. Improvement was recorded in all areas and there was zero cost growth in
domestic businesses.

The Group's non-performing loan ratio witnessed an important improvement,
declining from 2.37% to 1.74% and the rate of coverage increased from 146.8% to
166.3%. If Argentina and Brazil are excluded, the non-performing loan ratio
improved from 1.70% in 2002 to 1.31%, and coverage improved from 191.1% to
201.1%. Non-performing loans in Spain now stand at 0.72%. This level compares
favourably with the banking system as a whole and is 0.13 points lower than the
equivalent figure a year earlier.

  BBVA Group Highlights (Consolidated figures)                                                                        
                                                                   31-12-03     31-12-02                     ^% (YoY) 
  BALANCE SHEET (millions of euros)                                                                                   

  Total assets                                                      287,150      279,542                          2.7 

  Total lending (gross)                                             153,271      146,413                          4.7 

  Customer funds recorded on balance sheet                          182,830      180,570                          1.3 

  Other customer funds managed                                      113,075      108,815                          3.9 

  Total customer funds managed                                      295,905      289,385                          2.3 

  Shareholders' funds (including profit for                          12,410       12,354                          0.5 
  the year) (1)                                                                                                       

  INCOME STATEMENT (millions of euros)                                                                                

  Net interest income                                                 6,741        7,808                       (13.7) 

  Core revenues                                                      10,004       11,476                       (12.8) 

  Ordinary revenues                                                  10,656       12,241                       (12.9) 

  Operating profit                                                    4,895        5,577                       (12.2) 

  Operating profit (Argentina and Brazil                              4,883        5,103                        (4.3) 
  consolidated under equity method)                                                                                   

  Pre-tax profit                                                      3,812        3,119                         22.2 

  Attributable net income                                             2,227        1,719                         29.5 

  DATA PER SHARE AND MARKET CAPITALISATION                                                                            

  Share price                                                         10.95         9.12                         20.1 

  Market capitalisation (millions of euros)                          34,995       29,146                         20.1 

  Attributable net income                                              0.70         0.54                         29.5 

  Book value                                                           3.88         3.87                          0.3 

  PER (Price Earning Ratio; times)                                     15.7         17.0                              

  P / BV (Price/Book value; times)                                      2.8          2.4                              

  RELEVANT RATIOS (%)                                                                                                 

  Operating income / ATA                                               1.75         1.93                              

  ROE (Attributable net income / Average                               18.4         13.7                              
  equity)                                                                                                             

  ROA (Net income / Average total assets)                              1.04         0.85                              

  RORWA (Net income / Risk weighted assets)                            1.74         1.48                              

  Cost / income ratio                                                  47.2         47.2                              

  NPL ratio                                                            1.74         2.37                              

  Coverage ratio                                                      166.3        146.8                              

  CAPITAL ADEQUACY RATIOS (BIS rules) (%)                                                                             

  Total                                                                12.7         12.5                              

  Core capital                                                          6.2          5.9                              

  TIER I                                                                8.5          8.4                              

  OTHER INFORMATION                                                                                                   

  Number of shares (millions)                                         3,196        3,196                              

  Number of shareholders                                          1,158,887    1,179,074                              

  Number of employees                                                86,197       93,093                              

  . Spain                                                            31,095       31,737                              

  . America (2)                                                      53,100       59,293                              

  . Rest of the world                                                 2,002        2,063                              

  Number of branches                                                  6,924        7,504                              

  . Spain                                                             3,371        3,414                              

  . America (2)                                                       3,353        3,886                              

  . Rest of the world                                                   200          204                              

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

  (1) After distribution of fiscal year earnings.                                                                       
                       
  (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)                                                                                                 
                                                     2003                                         ^% (YoY)       2002 

  Financial revenues                               12,537                                           (27.2)     17,234 

  Financial expenses                              (6,260)                                           (36.0)    (9,784) 

  Dividends                                           464                                             29.6        358 

  NET INTEREST INCOME                               6,741                                           (13.7)      7,808 

  Net fee income                                    3,263                                           (11.1)      3,668 

  CORE REVENUES                                    10,004                                           (12.8)     11,476 

  Net trading income                                  652                                           (14.8)        765 

  ORDINARY REVENUES                                10,656                                           (12.9)     12,241 

  Personnel costs                                 (3,263)                                           (11.8)    (3,698) 

  General expenses                                (1,768)                                           (14.7)    (2,074) 

  GENERAL ADMINISTRATIVE EXPENSES                 (5,031)                                           (12.8)    (5,772) 

  Depreciation and amortization                     (511)                                           (19.1)      (631) 

  Other operating revenues and                      (219)                                           (16.1)      (261) 
  expenses (net)                                                                                                      

  OPERATING PROFIT                                  4,895                                           (12.2)      5,577 

  Net income from companies under                     383                                             n.m.         33 
  the equity method                                                                                                   

  Memorandum item: dividends                        (319)                                             31.7      (242) 
  received                                                                                                            

  Amortization of goodwill                          (639)                                            (5.9)      (679) 

  Net income from Group                               553                                             53.3        361 
  transactions                                                                                                        

  Net loan loss provisions                        (1,277)                                           (26.8)    (1,743) 

  Net securities writedowns                             -                                                -          3 

  Extraordinary items (net)                         (103)                                           (76.2)      (433) 

  PRE-TAX PROFIT                                    3,812                                             22.2      3,119 

  Corporate income tax                              (915)                                             40.1      (653) 

  NET INCOME                                        2,897                                             17.5      2,466 

  Minority interests                                (670)                                           (10.2)      (747) 

  . Preference shares                               (214)                                           (22.2)      (276) 

  . Other                                           (456)                                            (3.2)      (471) 

  ATTRIBUTABLE NET INCOME                           2,227                                             29.5      1,719 


                      This information is provided by RNS
            The company news service from the London Stock Exchange