Financial statements 1H 05

Banco Bilbao Vizcaya Argentaria SA
28 July 2005


BBVA: Consolidated income statement

(Million euros)

                                                     1H 05  % increase          1H 04

Core net interest income                             3,224        11.7          2,887
Dividends                                              142       (1.5)            145

NET INTEREST INCOME                                  3,367        11.1          3,031
Net income by the equity method                         51        15.0             44
Net fee income                                       1,853        10.2          1,681
Income from insurance activities                       219        13.0            194

CORE REVENUES                                        5,490        10.9          4,950
Net trading income                                     611        20.9            505

ORDINARY REVENUES                                    6,100        11.8          5,455

Net revenues from non-financial                         68        23.0             55
activities
Personnel costs                                    (1,710)         6.5        (1,605)
General expenses                                   (1,011)        12.0          (903)
Depreciation and amortization                        (206)       (7.8)          (224)
Other operating income and expenses                   (39)      (34.2)           (60)
(net)

OPERATING PROFIT                                     3,201        17.7          2,719

Impairment losses on financial assets                (325)      (21.4)          (413)
(net)
   . Loan-loss provisions                            (304)      (26.0)          (411)
   . Other                                            (20)        n.m.            (2)
Provisions (net)                                     (254)      (50.7)          (515)
Other income/losses (net)                              102      (71.4)            357
   . From disposal of equity holdings                   16      (93.9)            262
   . Other                                              86       (9.0)             94

PRE-TAX PROFIT                                       2,724        26.9          2,147
Corporate income tax                                 (788)        44.0          (547)

NET PROFIT                                           1,936        21.0          1,600
Minority interests                                   (123)        37.2           (89)

NET ATTRIBUTABLE PROFIT                              1,813        20.1          1,510

EARNINGS PER SHARE CALCULATION
Average ordinary shares in circulation           3,390,852         1.1      3,353,352
(thousand)
Basic earnings per share (euros)                      0.53        18.7           0,45
Diluted earnings per share (euros)                    0.53        18.7           0,45




BBVA: Consolidated balance sheet

(Million euros)

                                     30-06-05 %increase    30-06-04       31-03-05    31-12-04
                                               
Cash and balances at Central           13,799      50.2       9,186         12,434      10,123
Banks
Trading portfolio assets               53,437      24.7      42,835         47,960      43,432
Other financial instruments at            925       3.9         890          1,000       1,118
fair value
Financial instruments available        52,315     (8.8)      57,357         51,774      58,053
for sale
Loans                                 231,303      21.2     190,905        207,651     197,483
. Due from banks                       25,076       5.2      23,832         17,305      17,571
. Loans to customers                  195,286      23.2     158,556        180,831     171,339
. Other                                10,942      28.5       8,517          9,515       8,573
Fixed income portfolio held to          3,519      81.1       1,943          3,404       2,195
maturity
Investments in associates               1,392      17.7       1,183          1,405       1,369
Property and equipment                  4,249      15.1       3,692          3,982       3,939
Intangible assets                       1,675      27.2       1,317          1,032         809
Other assets                           15,078    (15.4)      17,821         14,961      14,223
TOTAL ASSETS                          377,694      15.5     327,129        345,603     332,743

Trading portfolio liabilities          18,212      57.7      11,546         15,417      12,379
Other financial liabilities at            775    (13.7)         899            794         834
fair value
Financial liabilities at              310,616      14.0     272,484        282,960     271,179
amortised cost
. Deposits by Central Banks and        69,093     (6.2)      73,686         67,116      64,628
banks
. Due to customers                    168,204      13.3     148,428        153,323     149,030
. Marketable debt securities           59,666      50.1      39,750         49,519      45,503
. Subordinated debt                     9,322      23.3       7,562          8,547       8,490
. Other                                 4,330      50.2       2,883          4,454       3,529
Insurance contract liabilities          9,680      22.2       7,919          9,723       8,840
Other liabilities                      19,265       9.0      17,678         18,819      21,861
Loan capital                            3,589     (3.0)       3,700          3,829       3,809
TOTAL LIABILITIES                     362,137      15.2     314,226        331,542     318,903

Minority interests                        837      20.2         697            750         746
Valuation adjustments                   2,952      80.7       1,633          2,112       2,062
Shareholders' funds                    11,767      11.3      10,573         11,198      11,032
EQUITY                                 15,556      20.6      12,903         14,061      13,840

TOTAL LIABILITIES AND EQUITY          377,694      15.5     327,129        345,603     332,743

MEMORANDUM ITEM:
Contingent liabilities                 24,640      28.7      19,143         22,984      21,653




                         January-June 2005 Results

          BBVA's net attributable profit rises 20.1% to €1.8 billion
     
-    Net attributable profit for the quarter was a record €998m, an increase of 
     21.8%

-    Earnings per share (EPS) rose 18.7% in the first half, return on equity 
     (ROE) increased to 35.6% and the first interim dividend is 15% higher

-    Driven by higher revenues, operating profit grew faster, rising 17.7%
     to €3.2 billion

-    All margins grew strongly, supported by a sharp increase in activity and 
     more favourable spreads. Net interest income grew 11.1%, core revenues grew
     10.9% and ordinary revenues grew 11.8%

-    The cost/income ratio improved from 44.7% to 43.4%. Including amortisation, 
     it improves  2.1 percentage points to 46.7%.

-    In Retail Banking in Spain and Portugal, lending and customer funds grew 
     faster at 20.5% and 10.7%, respectively. Operating profit increased 13.1%
     and net attributable profit was up 12.5%.

-    The Wholesale and Investment Banking Area increased operating profit 17% 
     and net attributable profit by 29.1%

-    The Americas Area maintained its high rate of business growth. Operating 
     profit increased 27.7% and net attributable profit was 62.7% higher.
     
-    Mexico lifted operating profit 38.9% and its net profit rose 55.7% with 
     strong growth in the more profitable businesses

-    The non-performing loans ratio continued to fall. It now stands at 1.01% 
     (1.32% a year earlier) and coverage rose from 206.5% to 240.5%

-    BBVA's capital base remains sound with a BIS ratio of 12.2% and core
     capital at 5.8%


BBVA increased the rate of business and revenue growth and achieved net
attributable profit of €1.81 billion in the first half of 2005. This is 20.1%
higher than last year. At the end of the first half year BBVA's return on equity
(ROE) stands at 35.6%. Earnings per share (EPS) increased 18.7% and the first
interim dividend is up 15%. Net attributable profit in the second quarter was
€998m (up 21.8%). This is a new group record.

The income statement reflects the solid performance of recurrent margins on
positive development of revenues and operating profit. The latter grew faster,
at 17.7%, and is the key factor behind the first half results. BBVA once more
strengthened fundamentals. Non-performing loans fell to 1.01% (from 1.32% a year
earlier) and coverage rose to 240.5% (previously 206.5%). The cost/income ratio
improved from 44.7% to 43.4% (from 48.8% to 46.7% including amortisation) and
capital adequacy strengthened. The BIS ratio stands at 12.2% and core capital is
5.8%.

The level of activity and the group's results in the second quarter of 2005
confirm the positive trend noted in the first quarter. There was strong growth
in business activity in Spain and the Americas and revenue growth was higher. As
a result, there was a substantial improvement in all margins and in net
attributable profit. All indicators of group profitability, risk quality,
capital adequacy and efficiency were higher.

At the end of June, BBVA's total assets had grown 15.5%, lending to customers
was up 22.7% and total customer funds 18.6%. There were double-digit increases
in all recurrent margins.

Taken as a whole, the first-half figures show that BBVA is advancing in its
strategy of profitable growth based on dynamic commercial activity in its main
retail markets (Spain and the Americas). They also reveal the favourable
activity and results of its Wholesale Banking and Investment Area.

During the first half, the group concluded the acquisition of Laredo National
Bancshares, reinforcing BBVA's franchise in the USA.

In the Spanish market the group added 77 branches under its network expansion
plan, which has thus grown from 3,371 to 3,448 outlets.

Quarterly financial information complies with 'Circular 4/2004' of the Bank of
Spain and with the International Financial Reporting Standards (IFRS) and data
is reported on a uniform basis. The most relevant aspects of the group's
financial status in the first half are summarised below:
     
-    In the second quarter of 2005 the BBVA group obtained net attributable
     profit of €998m. This is the highest amount ever achieved by the group in a
     single quarter and is 21.8% more than the same period last year. As a 
     result, profit in the first half came to €1.81 billion (a year-on-year 
     increase of 20.1%), earnings per share increased 18.7% and ROE rose to 
     35.6%.

-    Driven by higher revenues, operating profit in the half-year grew faster at 
     17.7% (15.0% in the first quarter) and came to €3.2 billion. This positive 
     performance was the determining factor behind the higher profit.

-    Net interest income rose 11.1% (6.8% in the first quarter) and 11.7% if 
     dividends are excluded. The upward trend is the result of notable increases
     in business activity in Spain and the Americas, and interest spreads that 
     were more favourable than in previous periods.

-    Net fee income and insurance income rose 10.5% with increases that were 
     higher than the previous quarter in all business areas. Net trading income
     grew 20.9%. As a result, ordinary revenues grew 11.8% in the first half,
     compared to 8.4% in the first quarter. Net sales of non-financial 
     activities also performed well.

-    Operating costs including amortisation increased 7.2%. On a comparable 
     basis (ie, excluding Laredo National Bancshares, Hipotecaria Nacional and 
     Valley Bank) the increase was 5%.

-    The cost/income ratio improved to 43.4% in the first half compared to 44.7% 
     in the same period last year. Including amortisation, the ratio is 46.7%
     and the year-on-year improvement is 2.1 percentage points.

-    The sharp increase in customer lending and lower non-performing loans 
     (NPLs) resulted in a further improvement in the NPL ratio to 1.01% at the 
     end of June (1.32% at 30-Jun-04). At the same time coverage rose to 240.5% 
     (206.5% a year earlier).

-    At 30-Jun-05 the group's capital base remained sound with the BIS ratio at 
     12.2% and core capital at 5.8%. Without the Laredo acquisition core capital 
     would be 6.1%.

-    On July 11th a first interim dividend of €0.115 per share was paid against 
     2005 results. This is an increase of 15% over the first interim dividend
     paid in 2004.

-    In the Retail Banking Area in Spain and Portugal, lending and customer 
     funds grew faster compared to March. Lending grew 20.5% (with a growing
     percentage of SME finance) and customer funds increased 10.7%. This led to 
     a 7.5% increase in ordinary revenues (6.1% in the first quarter). In 
     year-on-year terms, operating profit grew 13.1% and net attributable profit 
     grew 12.5% to €793m.

-    In the Wholesale and Investment Banking Area overall operating profit grew 
     17% and 20.5% in wholesale banking alone (corporate and institutional
     customers). As loan provisioning requirements were lower than last year, 
     net attributable profit increased 29.1% to €280m.

-    The Americas Area maintained the high rate of growth of recent quarters and 
     the main margins on the income statement grew faster year-on-year. Net 
     interest income rose 25%, operating profit increased 27.7% and net 
     attributable profit grew 62.7% to €823m. In a like-for-like comparison 
     based on the same units, operating profit grew 22.9% and attributable 
     profit 56.3%.

-    Mexico recorded strong growth in the more profitable business lines
     (consumer finance and credit cards in terms of lending, and transaction 
     accounts in terms of customer funds). Thus net interest income grew 34.4% 
     in the first half. Following the increase in net fee income and especially 
     in net trading income in the second quarter, cumulative operating profit to 
     June grew 38.9%. Net profit increased 55.7% (47.1% excluding Hipotecaria 
     Nacional).


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