First Half Year Results 2003

Banco Bilbao Vizcaya Argentaria SA
28 July 2003

PRESS RELEASE



28-07-03


                       Results for the First Half of 2003


         BBVA records attributed profit of 1,167 million euros (+0.1%)


  • The Bank has made a quarterly profit of 653 million euros, 12.9% higher
    than the same period in 2002

  • Return on equity (ROE) has risen to 18.9%, as compared to 18.1% a year ago

  • Further improvements in efficiency, with a cost/income ratio of 46.2%,
    getting better in all three business areas

  • The non-performing loans ratio (NPL) went down yet again, reaching 1.57%
    (excluding Argentina and Brazil) for the Group as a whole, and a record low
    of 0.75% in Spain. The coverage ratio is 195%

  • The operating income on domestic businesses went up 4.8% over the
    semester, and grew 15% in the second quarter compared to 2002

  • Retail Banking in Spain and Portugal showed profits of 604 million euros,
    with a strong impulse of the lending and customer funds activities and
    recurrent revenues growing

  • Wholesale and Investment Banking's attributable profit rose 25.7% to 218
    million euros

  • Attributable Profit in Mexico went up 30.6% and 64.7% in the rest of
    Banking in America, in local currency

  • BBVA has maintained high levels of solvency, with a core capital of 6%, a
    Tier I of 8.1% and a BIS ratio of 12%



BBVA recorded a Net Attributable Profit of 1,167 million euros in the first half
of 2003. This is a repeat of the 2002 first-half results, but actually a 9.6%
increase at constant exchange rates. The 653 million-euros Net Attributable
Profit for the second quarter is the best quarterly result since the second
quarter of 2001. It is 27.2% better than the previous quarter and 12.9% better
than the same period for 2002.


The first half of the year has confirmed BBVA's assessment of expected 2003
performance, and brought important improvements in its return on equity,
efficiency and NPL ratio. The Bank showed a strong impulse in its Retail Banking
business in Spain and Portugal, and Wholesale and Investment Banking business
increased its attributable profit by 25.7%. The Group's American operating
income and earnings reflected sound performance there.


Greater stability in the International scenario has eased uncertainty and helped
stock markets to recover. However, weakness continued in the main economic areas
of the world although growth in Spain was relatively better and predictions of a
recovery are now focused on the end of the year. The European Central Bank and
the Federal Reserve have cut interest rates even further, which places yet more
pressure on spreads. Over the quarter, the euro has continued to appreciate
against the dollar.


In this context, BBVA has closed the first semester confirming its expectations
for the full year. A favourable performance of the Group's most recurrent
revenues together with a gradual dilution of the exchange-rate impact over the
next few months will allow for an improvement in the year-on-year comparison.


Already positive trends in the Group's most recurrent results have been
accentuated over the second quarter. The operating income for Domestic
Businesses as a whole (Group excluding America), which is not influenced by the
Latin-American currencies' depreciations, grew 4.8% over the six month period.
And the 2Q03 operating income actually increased 11.1% over the first quarter of
2003 and 15% over the second quarter of 2002. The operating income for the
business in America, in constant euros, grew 17% in the first half.


BBVA's risk profile to June is looking ever better, thanks to earlier decisions
to enhance control over credit risk and structural risks (exchange rate and
interest rate) as well as the business portfolio. Despite being already a
European leader in cost efficiency, BBVA has once again boosted its cost/income
ratio Group-wide and in all the different business areas.


Together with adequate risk management and consistent improvement in the cost/
income ratios, the Group also had another strategic goal: profitable growth. In
the second quarter, BBVA once again showed signs of greater commercial drive in
all its markets, launching innovative marketing campaigns for Retail Banking in
Spain and Portugal (private and SME customers) and in its Banking in America
subsidiaries too. Wholesale and Investment Banking has further consolidated its
leadership and obtained excellent half-yearly results.


The highlights in the BBVA Group's performance over the first half of 2003 were:


  • In the second quarter of the year, Attributable Profit rose to 653 million
    euros, 27.2% higher than the previous quarter and 12.9% higher than the same
    quarter of 2002. This is the highest quarterly attributable profit since
    2001. Net attributable profit for the first half was 1,167 million euros,
    0.1% higher than in the same period of the previous year. At constant
    exchange rates, the increase is 9.6%.




  • Return on equity (ROE) was 18.9%, and this exceeded ROE in the first half
    of 2002 (18.1%). Return on assets (ROA) was 1.10%.




  • The increase in attributable profit in the semester (at a constant
    exchange rate and with Argentina and Brazil consolidated under the equity
    method) is the consequence of Operating Income growing by 10.4% (6.7% in the
    first quarter); there was a neutral effect of the items that make the profit
    and loss between operating income and earnings before tax as lower capital
    gains were offset by lower extraordinary losses.




  • The increase in operating income in the semester came from all business
    areas: 1.1% in Retail Banking Spain and Portugal, 16.7% in Wholesale and
    Investment Banking, and 17.2% in America (at constant exchange rates and
    excluding Argentina and Brazil). All revenues on the income statement show
    the second quarter to be producing better year-on-year comparatives than the
    first.




  • Costs are being kept under strict control and even fell back in domestic
    businesses. The cost/income ratio, with Argentina and Brazil consolidated
    under the equity method, improved further to 46.2% at the end of the first
    half, compared to 47.4% for the same period of the previous year and 47.1%
    in the first quarter. Improvements were noted in all three business areas.




  • In the second quarter, the Group has intensified its marketing activities
    in Spain, especially in Retail Banking. This was aided by the roll-out of a
    series of innovative products in different business segments. Further growth
    in lending and new customer funds more than offset the erosion of the
    customer spread and had a positive effect in the net interest income.
    Customer spreads within the Group recorded moderate drops due to the fall in
    market rates.




  • In Wholesale Banking businesses, where the Group is the leading franchise
    in Spain, attributable profit for the first half of 2003 reached 218 million
    euros, i.e. 25.7% more than in the same period of the previous year.




  • Good results in Mexico, especially in terms of liquid funds, loans with
    higher yields and fee income, are contributing to healthier core revenues.
    The increase in revenues together with effective cost control resulted in an
    increase of 28.2% in operating income at constant exchange rate.
    Attributable profit grows 30.6% (-7.1% in current euros).




  • In the rest of the Group's banks in Latin America, attributable profit in
    the first half of the year was 83 million euros. This is 64.7% higher than
    in the first semester of 2002 at constant exchange rates and 5.2% at current
    rates.




  • The non-performing loan ratio (NPL) continued to improve during the
    quarter, closing at 1.57% excluding Argentina and Brazil (1.64% to 31-3-03
    and 1.70% to 31-12-02). Coverage has grown to 194.9%. The quarterly NPL
    ratio on loans to Spanish residents went down to 0.75%. This is below the
    average for the banking system and represents a new record low for BBVA.




  • The BBVA Group's capital base is very sound, with core capital of 6.0%, a
    Tier I ratio of 8.1% and a BIS ratio of 12.0%.





BBVA Group Highlights
(Consolidated figures)
                                                                        30-06-03         30-06-02         D% (YoY)
BALANCE SHEET (millions of euros)
Total assets                                                             277.874          283.100            (1,8)
Total lending (gross)                                                    147.620          146.236              0,9
Customer funds recorded on balance sheet                                 182.771          183.375            (0,3)
Other customer funds managed                                             112.024          115.109            (2,7)
Total customer funds managed                                             294.795          298.484            (1,2)
Shareholders' funds (including profit for the year)                       13.126           13.230            (0,8)

INCOME STATEMENT (millions of euros)
Net interest income                                                        3.348            4.258           (21,4)
Core revenues                                                              4.946            6.140           (19,4)
Ordinary revenues                                                          5.349            6.492           (17,6)
Operating profit                                                           2.479            2.995           (17,2)
Operating profit (Argentina and Brazil consolidated under                  2.449            2.657            (7,8)
equity method)
Pre-tax profit                                                             1.873            1.875            (0,1)
Attributable net income                                                    1.167            1.166              0,1

DATA PER SHARE AND MARKET CAPITALISATION (30-06)
Share price                                                                 9,15            11,45           (20,1)
Market capitalisation (millions of euros)                                 29.242           36.593           (20,1)
Attributable net income                                                     0,37             0,36              0,1
Book value                                                                  4,11             4,14            (0,8)
PER (Price Earning Ratio; times) (1)                                        13,9             21,3
P / BV (Price/Book value; times)                                             2,2              2,8

RELEVANT RATIOS (%)
Operating income / ATA                                                      1,82             2,04
ROE (Attributable net income / Average equity)                              18,9             18,1
ROA (Net income / Average total assets)                                     1,10             1,09
RORWA (Net income / Risk weighted assets)                                   1,87             1,90
Cost / income ratio                                                         46,6             46,3
NPL ratio                                                                   2,12             1,86
Coverage ratio                                                             159,4            178,5

CAPITAL ADEQUACY RATIOS (BIS rules) (%)
Total                                                                       12,0             12,5
Core capital                                                                 6,0              5,9

OTHER INFORMATION
Number of shares (millions)                                                3.196            3.196
Number of shareholders                                                 1.183.969        1.180.843
Number of employees                                                       86.791           95.171
. Spain                                                                   31.275           31.392
. America (2)                                                             53.464           61.726
. Rest of the world                                                        2.052            2.053
Number of branches                                                         6.968            7.685
. Spain                                                                    3.384            3.436
. America (2)                                                              3.384            4.038
. Rest of the world                                                          200              211

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

(1) The 1H03 PER is calculated taking into consideration the median of the 
analysts' estimates (July 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)
                                                                      1H03          D% (YoY)              1H02
Financial revenues                                                   6.565            (28,5)             9.181
Financial expenses                                                 (3.480)            (32,3)           (5.138)
Dividends                                                              263              22,2               215

NET INTEREST INCOME                                                  3.348            (21,4)             4.258
Net fee income                                                       1.598            (15,1)             1.882

CORE REVENUES                                                        4.946            (19,4)             6.140
Net trading income                                                     403              14,3               352

ORDINARY REVENUES                                                    5.349            (17,6)             6.492
Personnel costs                                                    (1.629)            (16,2)           (1.943)
General expenses                                                     (862)            (19,1)           (1.065)

GENERAL ADMINISTRATIVE EXPENSES                                    (2.491)            (17,2)           (3.008)
Depreciation and amortization                                        (258)            (24,5)             (343)
Other operating revenues and expenses (net)                          (121)            (17,5)             (146)

OPERATING PROFIT                                                     2.479            (17,2)             2.995
Net income from companies under the equity method                      115              44,5                80
Memorandum item: dividends received                                  (182)              14,3             (159)
Amortization of goodwill                                             (301)              15,1             (262)
Net income from Group transactions                                     278            (42,7)               485
Net loan loss provisions                                             (847)            (14,7)             (993)
Net securities writedowns                                                -              n.m.                 3
Extraordinary items (net)                                              149              n.m.             (433)

PRE-TAX PROFIT                                                       1.873             (0,1)             1.875
Corporate income tax                                                 (373)              32,8             (281)

NET INCOME                                                           1.500             (5,9)             1.594
Minority interests                                                   (333)            (22,4)             (428)
. Preference shares                                                  (120)            (20,8)             (150)
. Other                                                              (213)            (23,4)             (278)

ATTRIBUTABLE NET INCOME                                              1.167               0,1             1.166



Consolidated income statement
(Argentina and Brazil consolidated under the equity method)
(Millions of euros)
                                                                                    D% at constant
                                                             1H03        D% (YoY)    exchange rate                 1H02
Financial revenues                                          6.403          (18,8)               (4,7)             7.884
Financial expenses                                        (3.323)          (23,1)              (10,7)           (4.320)
Dividends                                                     263            23,1                27,4               214

NET INTEREST INCOME                                         3.343          (11,5)                 4,9             3.778
Net fee income                                              1.555          (12,7)                 2,9             1.781
CORE REVENUES                                               4.898          (11,9)                 4,2             5.559
Net trading income                                            336           (0,4)                32,4               337

ORDINARY REVENUES                                           5.234          (11,2)                 5,7             5.896
Personnel costs                                           (1.589)          (12,5)                 1,1           (1.816)
General expenses                                            (829)          (15,3)                 4,4             (979)

GENERAL ADMINISTRATIVE EXPENSES                           (2.418)          (13,5)                 2,2           (2.795)
Depreciation and amortization                               (249)          (18,6)               (3,1)             (305)
Other operating revenues and expenses (net)                 (118)          (15,8)                 8,1             (139)

OPERATING PROFIT                                            2.449           (7,8)                10,4             2.657
Net income from companies under the equity method             118            16,1                15,5               101
Memorandum item: dividends received                         (182)            13,2                20,4             (161)
Amortization of goodwill                                    (301)            15,1                15,1             (262)
Net income from Group transactions                            278          (42,7)              (42,8)               485
Net loan loss provisions                                    (647)          (26,7)              (14,0)             (883)
Net securities writedowns                                       -            n.m.                n.m.                 3
Extraordinary items (net)                                    (67)          (73,2)              (62,8)             (248)

PRE-TAX PROFIT                                              1.830           (1,2)                13,5             1.853
Corporate income tax                                        (331)            27,5                68,4             (260)

NET INCOME                                                  1.499           (5,9)                 5,9             1.593
Minority interests                                          (332)          (22,4)               (5,3)             (427)
. Preference shares                                         (120)          (20,8)              (20,8)             (150)
. Other                                                     (212)          (23,4)                 6,3             (277)

ATTRIBUTABLE NET INCOME                                     1.167             0,1                 9,6             1.166







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