Results of first half 2002

Banco Bilbao Vizcaya Argentaria SA
01 August 2002





                      BBVA Group in the First Half of 2002



The second quarter of the year has been characterized by the uncertainty
surrounding the recovery of the economic pulse and corporate earnings and by a
great deal of market instability. Adding to the depreciation of the dollar
against the euro in the quarter was the depreciation of the majority of Latin
American currencies vis-a-vis the U.S. dollar.

In this context, the highlight of BBVA Group earnings was the fine performance
of recurrent income, like in the previous quarter; however, the high provisions
allocated during the period, after applying criteria of great prudence and
foresight, conditioned the first-half attributable profit, which amounted to
1,166 million euros, 8.9% less than in the same period of 2001.

As a consequence of the continuation of the special circumstances facing
Argentina's financial system, just as in the previous quarter, a pro forma
account is being presented with Argentina carried by the equity method, thus
allowing a more precise analysis of the Group's performance compared against the
preceding year. The figures relating to the balance sheet and business activity
include Argentina, although the figures and performance excluding this country,
as regards the most relevant magnitudes, appear as a memorandum item.

Operating income grew 16.3% year-on-year, with Argentina carried by the equity
method, and 15.9% excluding dividends and financial operations (the evolution of
which is irregular throughout the year). The contributions of the areas of
Spanish and Portuguese Retail Banking and Banking in America are noteworthy.

Ordinary revenue increased 4.2%, with growth in the core revenue lines.
Excluding Argentina, and as per a constant exchange rate, lending grew 7.3%
year-on-year, and total customer funds managed 3.5%. The domestic business was
more dynamic, increasing around 10% in lending as well as in transactional
deposits.

Operating expenses fell 4.3%, with reductions in all business areas. An adequate
management of income and expenses yielded an improvement of 4.2 points in the
efficiency ratio, to 47.6%.

As opposed to the positive performance of the most recurrent revenues, of the
remaining headings of the income statement leading down to profit, the
year-on-year reduction of income from Group operations, in spite of the capital
gain obtained in the second quarter on the sale of 23.9% of Metrovacesa, as well
as of income from companies carried by the equity method and, above all, the
56.2% increase in total provisions to 1,464 million euros, should be
highlighted. The extraordinary provisions allocated in the first half included
209 million euros to adjust the earnings derived from its interest in Telefonica
to the losses announced by this company and 159 million euros allocated to
writing off the commitments acquired in the purchase of Corpbanca. Net loan loss
provisions also increased as a consequence of the country-risk allocation of 117
million euros due to the reclassification of Argentina to Group 5 and the higher
provisions allocated in Banking in America.

Due to these factors, pre-tax profit dropped 21.9% in y-o-y terms to 1,872
million euros. Due to the lower capital gains tax and the deductibility of
certain allocations, together with the lower minorities due to the higher
interest in Bancomer, attributable profit at the end of the first six months of
the year amounted to 1,166 million euros. On account of the lower capital gains
tax and the deductibility of certain allocations, together with the lower
minorities due to the higher interest in Bancomer, attributable profit at the
end of the first six months of the year amounted to 1,166 million euros.

At the end of the six-month period, the NPL ratio, 1.63% (excluding Argentina)
held at the level of twelve months ago, with coverage of 195.2%. Furthermore,
the Group continues to show a solid financial strength, with a BIS ratio of
12.5%, and a ratio of 10.7%, as per Bank of Spain regulations.

During the second quarter of the year, the Group deployed an intense commercial
activity in the domestic market. The deposit BBVA Dinamico, the guaranteed
mutual fund Mundibolsa Garantizado and the Nova Oro credit card were launched,
and the campaign for direct deposit of payrolls and pensions and the advantages
of the mortgage product Hipoteca Facil were expanded, thus strengthening the
leadership position in the mortgage segment. In addition, in order to take
advantage of the complementary nature of their businesses, online bank Uno-e and
the consumer financing business of Finanzia were integrated, giving way to a
bank with more than 2 million customers and ample possibilities for
cross-selling.

Noteworthy events of the quarter include the acquisition of an additional 3% in
the capital of BBVA Bancomer, as a consequence of which the stake in the Group's
most important Latin American franchise now exceeds 51%.

In the month of June, the Board of Directors approved new principles of
Corporate Governance, which stand at the forefront of international
requirements, with the fundamental goal of increasing transparency. The Board
will have a maximum of 18 members, and independent directors (defined pursuant
to New York Stock Exchange requisites) will represent a clear majority on the
Board and on the Standing and Risk Committees. Furthermore, the Audit and
Compliance and Remuneration Committees will be formed entirely by independent
directors. Age limits are also established for the Chairman, Chief Executive
Officer and the Directors.

On July 10, the first interim dividend against fiscal year 2002 earnings was
distributed in the amount of 0.09 euros gross per share, up 5.9% on the dividend
paid last year.










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