3rd Quarter Results

Banco Santander S.A.
25 October 2007



Press release



                 Banco Santander's attributable profit rose 33%
             to EUR 6.572 billion in the first nine months of 2007

Attributable profit, excluding capital gains, amounted to EUR 6,006 million, up
21% from the same period last year.

.  Revenue rose by 21%, which continues to be more than double the
   increase in costs, which grew by 10%, allowing operating income to rise 
    by 31%.


.  Revenue growth was supported by strong activity in all businesses in
   Europe as well as Latin America. Loans grew by 13% and customer funds by 15%,
   without including the exchange rate effect.


.  In Continental Europe, attributable profit grew by 35% to EUR 3,533 million
   with growth in loans of 16% and in customer funds of 12%.


.  In Latin America, attributable profit rose by 23% in dollar terms to
   $2,747 million, with growth of 19% in loans and 18% in customer funds. In 
   euros, attributable profit reached EUR 2,044 million, up 14%.


.  Abbey's attributable profit rose 21% to £613 million, with growth of 8% in 
   loans and 5% in deposits. In euros, attributable profit reached EUR 906
   million, up 22%.


.  The 11-point difference between revenue and cost growth enabled group
   activity to improve by 4.3 percentage points to 44.0% (and without 
   amortization to 39.3%).


.  The non-performing loan rate was 0.89% and the coverage rate was 158%, 
   compared to 0.87% and 177%, respectively, from the previous year.


.  In the first nine months of the year, Santander sold its 1.79% stake
   in Intesa Sanpaolo with a capital gain of EUR 566 million.


.  The second dividend charged against 2007 results, amounting to EUR 0.12294,
   up 15%, will be paid from November 1.



Madrid, October 25th, 2007 - Grupo Santander registered attributable profit of
EUR 6,572 million in the first nine months of 2007, an increase of 33% from the
previous year. This result includes EUR 566 million in capital gains from the
sale of the 1.79% stake in Intesa Sanpaolo. Excluding this transaction,
attributable profit amounted to EUR 6,006 million, an increase of 21%. Third
quarter attributable profit rose to EUR 2,113 million, a record and the second
consecutive quarter to exceed EUR 2,000 million.


The first nine months results exceed those obtained in 2005, when attributable
profit was EUR 6,220 million (EUR 5,212 million without capital gains). These
results are in line with the goal of ending the year with an attributable profit
of EUR 8,000 million, excluding extraordinary items, announced at the
Shareholders Meeting of June 23rd.


Results


The key factor in the first nine months of 2007 continues to be strong growth in
business activity, which rose by 14%, and the growing gap between the loan yield
and the cost of funds. This has enabled revenues to grow by more than double the
increase in costs, 21% versus 10%, allowing net operating income to rise 31%.


Provisions for insolvency grew 34%, in line with growth in net operating income.
The increase in provisions is due to mainly Latin America (fundamentally Brazil
and Mexico), where the change in business mix towards more profitable products
involves assuming higher risk premiums, and the inclusion in 2007 of Drive, the
consumer finance business acquired in the US. Profit from ordinary activity was
EUR 6,417 million, up 27%.


Distribution of attributable profit (w/o capital gains)

EUR Mill.


                                   EUR Mill.          % of operating areas
Continental Europe                   3,533                     54%
Latin America                        2,044                     32%
UK                                    906                      14%



Group results 9M'07

EUR Mill.


         TOTAL GROUP -                                          Change o/ 9M'07
          EUR Million                  9M'07               Amount                %

        Gross operating                20,253              +3,545              +21.2
            income
      Operating expenses               -9,092               -857               +10.4
     Net operating income              11,103              +2,649              +31.3
     Loan-loss provisions              -2,401               -609               +34.0
   PBT (excl. capital gains)           8,248               +1,652              +25.0
   Net profit from ordinary            6,417               +1,360              +26.9
           activity
      Attributable profit              6,006               +1,058              +21.4
     (excl. capital gains)
      Attributable profit              6,572               +1,624              +32.8




Businesses in Continental Europe registered growth in operating margin of 29%,
with an increase of 23% in revenue and 14% in costs. Attributable profit from
January to September reached EUR 3,533 million, up 35%. The greatest
contribution came from the Santander branch network in Spain, with EUR 1,357
million, up 29%, followed by Santander Consumer Finance, with EUR 551 million,
up 30%, Banesto, with EUR 507 million, 25% higher (excluding the capital gains
from the sale of Urbis in 2006) and Portugal, with EUR 406 million, up 24%.



The Santander network in Spain focused on profitable growth, which enabled it to
continue to improve its growth rate in net interest income, which increased by
21%, nearly three times the rise in costs (+8%). Moreover, the Santander network
was able to bear the costs of eliminating income from fees on services to all
linked customers, as well as the new groups included this year (self-employed
customers, storekeepers, students, immigrants). The Santander branch network's
efficiency ratio was 39.0%, an improvement of 2.5 points, despite the addition
of 120 branches to the network in the last 12 months.





Europe: Main units 9M'07
EUR Mill. and % o/ 9M'06



Solid and diversified growth: attributable profit around 25% or above in all
units


                    Gross operating income: 9,753 mill.; +23%
          SAN Branch Network                     3,540                 +15%
                Banesto                          1,691                 +15%
     Santander Consumer Finance **               1,966                 +47%
               Portugal                           994                  +21%
               Rest ***                    1,561 (GWB: 1,081)          +26%


                     Net operating income: 6,032 mill.; +29%
          SAN Branch Network                     2,132                 +21%
                Banesto                           959                  +24%
     Santander Consumer Finance **               1,404                 +60%
               Portugal                           593                  +35%
               Rest ***                      944 (GWB: 724)            +16%


                     Attributable profit: 3,533 mill.; +35%
SAN Branch Network                               1,357           +29%
Banesto                                           507            +13% (+25%)*
Santander Consumer Finance **                     551            +30%
Portugal                                          406            +24%
Rest ***                                     712 (GWB: 601)      +98%



(*) Net profit from ordinary activity

(**) Including Drive. Excluding Drive: gross operating income +10%; net
operating income +10% and attributable profit +12%

(***) Banif, Asset Management and Insurance and Global Wholesale Banking




Latin America: Main countries 9M'07
US$ Mill. and % o/ 9M '06



Strong growth of revenues in all countries with costs under control.
Increased LLPs due to greater lending and change of mix.


                   Gross operating income: 10,511 mill.; +33%
                Brazil                           4,248                 +39%
                Mexico                           2,561                 +38%
                 Chile                           1,569                 +18%
            Other countries                      1,814                 +29%
       Santander Private Banking                  318                  +27%


                     Net operating income: 5,904 mill.; +45%
                Brazil                           2,480                 +58%
                Mexico                           1,540                 +63%
                 Chile                            938                  +18%
            Other countries                       757                  +27%
       Santander Private Banking                  188                  +25%


                     Attributable income: 2,747 mill.; +23%
                Brazil                            940                  +26%
                Mexico                            682                  +40%
                 Chile                            576                 +29% *
            Other countries                       384                  -9%
       Santander Private Banking                  165                  +23%
                (*) Net profit (before minority interests): +38%



In Latin America, costs grew by 18%, mainly due to investments being carried out
in new projects and the branch networks in the main countries, whilst revenues
grew at 33%, so that net operating income rose by 45% (all changes are in
dollars, the operating currency). Attributable profit from the region grew by
23% to US $2,747 million (EUR 2,044 million, up 14%). Brazil made the largest
contribution, with a profit of $940 million, up 26%, followed by Mexico with
$682 million, up 40% and Chile with $576 million, up 29%.


Abbey's results are in line with the framework laid out in its strategic plan,
with growth of 7% in revenue and a reduction of 4% in costs, resulting in a
growth of 19% in net operating income and of 21% in attributable profit,
measured in pounds. In euros, attributable profit for the first nine months grew
22% to EUR 906 million, in line with the target for the year of EUR 1,200
million.


By business, retail banking pretax profit increased by 27% to EUR 7,003 million,
Global Wholesale Banking by 43% to EUR 1,632 and Asset Management and Insurance
by 18% to EUR 546 million. These figures show that retail banking accounts for
76% of the Group's profit, Global Wholesale Banking 18% and Asset Management and
Insurance 6%.



Business



Santander ended the third quarter with EUR 1,066,055 million in funds under
management, an increase of 11%. Of these, EUR 886,668 million are on the balance
sheet, also up by 11%, and the rest off-balance mutual funds, pensions and other
customer funds.



Group gross lending was EUR 559,776 million at the end of the third quarter, up
11% (13% excluding the exchange rate effect). Continental Europe accounted for
54% of this lending, the United Kingdom (Abbey) 34% and Latin America the
remaining 12%.



Loans to customers (gross)
EUR billion

Sep 06         505
Dec 06         532
Mar 07         539
Jun 07         561
Sep 07         560 (*)
(*) +10.8% as compared to Sep 06. The increase is of 12.6%
without exchange rate impact.



Loans to customers. September 2007
% o / operating areas

Continental Europe               54%
UK - Abbey                       34%
Latin America                    12%



In Continental Europe, lending grew by 16%, to EUR 296,587 million, with
increases in all countries and units. The Santander branch network in Spain
increased lending by 12%, Banesto by 25%, Portugal by 7% and Santander Consumer
Finance by 24%. The Santander branch network increased business volumes and
improved its margins. The success of the 'We Want to be Your Bank' programme,
launched in 2006, has resulted in an 8% increase in linked customers in the last
12 months. Lending volume to individuals grew by 11% and to companies by 13%
with growth in mortgage lending slowing to 12%.



Banesto lending to individuals grew by 17%, to companies by 28% and mortgage
business by 15%. Santander Consumer Finance this year incorporated Drive.
Without Drive's figures, new lending at Santander Consumer Finance grew 7%, with
increases of 18% in the Nordic countries and Eastern Europe and 14% in Spain,
with a decline of 1% in Germany. The performance in Germany is related to an
increase in the VAT rate this year, which drove a wave of purchases in the
fourth quarter of 2006, which has since resulted in a 1% drop in the core auto
financing business. In Portugal, Santander Totta grew by 20% in SME financing
and 11% in loans to individuals.



Loan volume in Latin America came to EUR 64,346 million, an increase of 19% in
local currencies. Brazil, which opened 187 branches in the last 12 months and
installed 165 automatic tellers, increased lending by 27%, with growth of 29% in
both lending to individuals and SMEs. Mexico grew by 30%, with increases of 37%
in lending to individuals, and 75% to SMEs and companies. In Chile, lending
increased by 13%, with growth of 15% to individuals and 18% to SMEs.



Abbey continues to mark progress, closing the third quarter with loan volume of
EUR 188,752 million, which represents growth of 3% in euros and 8% in pounds by
local accounting standards. The balance of mortgage loans came to £108,700
million (EUR 156,000 million) at the end of the third quarter, up 9% from a year
earlier. Market share in new mortgage production grew 15% in twelve months, with
a positive third quarter due to an improvement in business environment and in
customer retention.




Managed customer funds
EUR billion

Sep 06                      715
Dec 06                      739
Mar 07                      771
Jun 07                      800
Sep 07                      806 (*)
(*) +12.8% as compared to Sep 06. The increase is of
14.9% without exchange rate impact.



Managed customer funds. September 2007
% o/ operating areas

Continental Europe               46%
UK - Abbey                       32%
Latin America                    22%





Total customer funds under management came to EUR 806,487 million at the end of
September 2007, an increase of 13% (15% excluding the exchange rate effect) from
a year earlier. Balance sheet resources rose 13% to EUR 618,190 million. Mutual
funds increased by 9% to EUR 128,190 million.



In Continental Europe, total customer funds under management were EUR 323,328
million, up 12%. In Spain, which represents about 80% of the total, customer
funds grew by 3% in the Santander branch network, by 13% at Banesto and 36% at
Santander Consumer. In Portugal customer funds grew by 7%.



The Santander branch network completed on Oct. 4 the placement of EUR 7,000
million in Santander Securities, which are converted to mandatory convertible
bonds which will be exchanged for newly issued Santander ordinary shares.



In Latin America, customer funds came to EUR 151,252 million, with growth of 18%
in local currency. Deposits grew by 12% and investment funds by 38% in local
currency. By country, savings increased by 33% in Brazil, 6% in Mexico and 15%
in Chile.



Abbey ended September with EUR 221,423 million in customer funds. Deposits were
EUR 124,028 million, an increase of 5% in pounds by local accounting standards.
Abbey is attracting new business, reflected in the doubling of the flow of net
savings and 300,000 new accounts opened during the nine months.





Management and capital ratios



Efficiency: Revenue grew by 11 percentage points more than costs, driving
improvement in the efficiency ratio. Costs and amortizations as a percentage of
revenues were 44% at the end of the third quarter of 2007, compared to 48.3% a
year earlier. Abbey registered the greatest improvement within the group, with
the efficiency ratio improving to 50.1% at the end of September from 55.4% a
year earlier. In Continental Europe, the efficiency ratio was 37.6%, a 2.9 point
improvement. In Latin American, efficiency was 41.4%, an improvement of 5.0
points.




9M '07Results. Efficiency


                       Maintaining 'open jaws'
Revenues and Costs - Base 100: Q1'06

                      Revenues               Costs
1Q'6 *                100                    100
2Q                    105                    99
3Q **                 111                    101
4Q                    112                    107
1Q '07                118                    107
2Q                    132                    110
3Q ***                134                    113
(*) Difference between revenues and costs: 0%
(**)Difference between revenues and costs: +10%
(***)Difference between revenues and costs: +21%


                     Group's efficiency ratio (%)
%
9M'06                              48.3
9M'07                              44.0
Reduction of 4.3%



Efficiency ratio * principal segments (%)
(*) Including amortisations


                          Continental Europe
%
9M'06                              40.5
9M'07                              37.6


                                Abbey
%
9M'06                              55.4
9M'07                              50.1


                            Latin America
%
9M'06                              46.4
9M'07                              41.4



9M'07 Results. NPL ratio and solvency


                             NPLs and coverage ratios
                                  Sep '06 *                Sep '07
Coverage                          177%                     158%
NPL                               0.87%                    0.89%
(*) On a like-for-like basis with 2007 (criteria change in Portugal in 1Q'07).
Published NPL ratio in Sep '07: 0.83% and coverage: 186%.


                 High Allowances (66% generic)
NPLs                                 5,738
Specific allowances                  3,128
Generic allowances                   5,945
Total allowances                     9,073


                                    Capital ratios
                             Sep '06           Dec '06             Sep '07
BIS Ratio                    12.54%            12.49%              12.79%
Tier I                       7.49%             7.42%               7.78%
Core Capital                 5.88%             5.91%               6.24%






NPLs: The Group's non-performing loan rate came to 0.89% compared to 0.87% a
year earlier. The Group's coverage ratio fell to 158% at the end of September
2007 from 177% a year earlier. The NPL rate is below levels of a year earlier in
key Group markets such as the U.K., Brazil or Portugal, with slight increases in
Spain, Mexico and Chile. The Group's generic funds come to EUR 5,945 million.



Capital: The Group's eligible capital came to EUR 63,655 million at the end of
the third quarter, with a surplus of EUR 23,843 million above the required
minimum. With this capital base, the BIS ratio came to 12.79%, Tier I capital to
7.78% and core capital to 6.24%.





The Share and dividend



The Santander share ended the third quarter at EUR 13.63 euros, up 9.3% from a
year earlier. At the end of September, Santander's market capitalization
amounted to EUR 85,246 million. Santander is the leading bank in the euro zone
by market value and the eighth in the world. On November 1, the second dividend
against 2007 earnings will be paid. As with the first dividend, it will amount
to EUR 0.12294, with both dividends amounting to an increase of 15% compared to
the first two dividends paid a year earlier.



Santander has 2,332,429 shareholders. 137,664 persons work in the Group, serving
69 million customers in 11,217 branches.




The acquisition of ABN AMRO




On May 29th, Banco Santander, together with Royal Bank of Scotland and Fortis,
announced their intention to put forward an offer to acquire ABN Amro, which
offer was made on July 20th. The amount offered by the three banks for each ABN
Amro share was EUR 35.60 per share in cash and 0.296 new RBS shares.



On Oct. 5, the initial offer period ended with 86% of shares tendered in the
offer. Payment for such shares was made on Oct. 17, with Banco Santander
contributing EUR 17.2 billion. Shareholders holding the remaining 14% of shares
not tendered in the offer now have until Oct. 31st to tender their shares.



Santander, the Royal Bank of Scotland and Fortis have until mid December to
present their plan for distributing the assets of ABN Amro to the respective
banks, which plan must be approved by the Dutch central bank. Once the
distribution is completed, Antonveneta in Italy and Banco Real in Brazil will
become part of the Santander group. The investment by Banco Santander in the
acquisition of these businesses will not exceed EUR 19.8 billion.





More information at: www.santander.com





Income Statement
Million euros
                                                        Variation
                                  9M'07      9M'06    Amount         %

Net interest income (w/o         11,020      8,884     2,137      24.1
dividends)
Dividends                           357        335        22       6.7
Net interest income              11,378      9,219     2,159      23.4
Income from companies               248        386     (137)      35.6
accounted for by the equity
method
Net fees                          6,173      5,342       830      15.5
Insurance activity                  308        219        88      40.3
Commercial revenue               18,106     15,166     2,940      19.4
Gains (losses) on financial       2,147      1,542       605      39.2
services
Gross operating income           20,253     16,708     3,545      21.2
Income from non-financial           110         90        20      21.9
services
Non-financial expenses             (56)       (46)      (10)      20.6
Other operating income            (112)       (64)      (49)      76.2
Operating expenses              (9,092)    (8,235)     (857)      10.4
  General administrative        (8,132)    (7,393)     (739)      10.0
        expenses
  Personnel                     (4,822)    (4,437)     (385)       8.7
  Other administrative          (3,310)    (2,956)     (353)      11.9
expenses
  Depreciation and                (960)      (841)     (119)      14.1
amortisation
Net operating income             11,103      8,454     2,649      31.3
Impairment loss on assets       (2,443)    (1,842)     (601)      32.6
  Loans                         (2,401)    (1,792)     (609)      34.0
  Goodwill                            -        (5)         5   (100.0)
  Other assets                     (42)       (46)         3     (7.6)
Other income                      (412)       (15)     (397)         -
Profit before taxes (w/o          8,248      6,596     1,652      25.0
capital gains)
Tax on profit                   (1,830)    (1,539)     (292)      18.9
Profit before ordinary            6,417      5,057     1,360      26.9
activity
Net profit from discontinued          -        329     (329)   (100.0)
operations
Net consolidated profit (w/o      6,417      5,386     1,031      19.1
capital gains)
Minority interests                  412        439      (27)     (6.2)
Attributable profit to the        6,006      4,947     1,058      21.4
Group (w/o capital gains)
Extraordinary capital gains         556          -       566         -
Attributable profit to the        6,572      4,947     1,624      32.8
Group






Customer loans
Million euros
                                                       Variation
                              30.09.07   30.09.06    Amount         %     31.12.06

Public Sector                    5,213      5,419     (206)     (3.8)        5,329
Other residents                218,672    188,710    29,961      15.9      199,994
  Commercial bills              17,114     16,055     1,059       6.6       17,276
  Secured loans                120,750    100,228    20,522      20.5      110,863
  Other loans                   80,807     72,427     8,380      11.6       71,854
Non-resident sector            335,892    311,026    24,866       8.0      326,187
  Secured loans                201,795    186,849    14,946       8.0      191,724
  Other loans                  134,097    124,177     9,920       8.0      134,463
Gross loans and credits        559,776    505,156    54,621      10.8      531,509
Loan-loss allowances             8,561      8,163       399       4.9        8,163
Net loans and credits          551,215    496,993    54,222      10.9      523,346
Pro memoria: Doutbful loans      5,669      4,638     1,032      22.2        4,613
  Public sector                      2         18      (17)    (91.3)           18
  Other residents                1,512      1,175       337      28.7        1,212
  Non-resident sector            4,156      3,445       711      20.6        3,383





Customer funds under
management
Million euros
                                                       Variation
                              30.09.07   30.09.06    Amount         %     31.12.06

Public Sector                   14,257     13,956       302       2.2       15,266
Other residents                101,914     93,532     8,382       9.0       94,750
  Demand deposits               55,900     53,706     2,193       4.1       55,050
  Time deposits                 28,497     23,216     5,281      22.7       24,670
  REPOs                         17,517     16,609       908       5.5       15,030
Non-resident sector            232,138    218,036    14,102       6.5      221,206
  Demand deposits              121,131    117,766     3,365       2.9      119,861
  Time deposits                 76,410     76,312        98       0.1       72,258
  REPOs                         32,160     21,680    10,480      48.3       26,343
  Public Sector                  2,437      2,278       159       7.0        2,744
Customer deposits              348,309    325,524    22,785       7.0      331,223
Debt securities                237,963    190,655    47,308      24.8      204,069
Subordinated debt               31,918     31,154       763       2.5       30,423
On-balance sheet customer      618,190    547,333    70,857      12.9      565,715
funds
  Mutual funds                 128,190    117,102    11,088       9.5      119,838
  Pension funds                 30,707     27,442     3,265      11.9       29,450
  Managed portfolios            20,489     18,009     2,480      13.8       17,835
  Savings-insurance              8,910      5,378     3,532      65.7        6,385
policies
Other customer funds under     188,297    167,932    20,365      12.1      173,509
management
Customer funds under           806,487    715,265    91,222      12.8      739,223
management








Shareholders' equity and
minority interests
Million euros
                                                       Variation
                              30.09.07   30.09.06    Amount         %     31.12.06

Capital Stock                    3,127      3,127         -         -        3,127
Additional paid-in surplus      20,370     20,370         -         -       20,370
Reserves                        16,689     12,355     4,333      35.1       12,352
Treasury stock                   (207)       (22)     (185)     847.7        (127)
On-balance sheet                39,979     35,831     4,148      11.6       35,722
shareholders' equity
Attributable profit              6,572      4,947     1,624      32.8        7,596
Interim dividend                 (769)      (669)     (100)      15.0      (1,337)
distributed
Shareholders' equity at         45,782     40,109     5,672      14.1       41,981
period-end
Interim dividend not             (769)          -     (769)         -      (1,919)
distributed
Shareholders' equity            45,013     40,109     4,903      12.2       40,062
Valuation adjustments              980      3,668   (2,688)    (73.3)        2,871
Minority interests               2,332      2,457     (126)     (5.1)        2,221
Preferred securities               558      1,183     (625)    (52.8)          668
Preferred securities in          7,320      6,427       893      13.9        6,837
subordinated debt
Shareholders' equity and        56,203     53,845     2,358       4.4       52,658
minority interests





Computable capital and BIS
ratio
Million euros
                                                       Variation
                              30.09.07   30.09.06    Amount         %     31.12.06

Computable basic capital        38,713     34,232     4,481      13.1       35,539
Computable supplementary        24,942     23,057     1,885       8.2       24,237
capital
Computable capital              63,655     57,289     6,366      11.1       59,776
Risk-weighted assets           497,645    456,745    40,900       9.0      478,733
BIS ratio                        12.79      12.54      0.25                  12.49
  Tier 1                          7.78       7.49      0.29                   7.42
  Core capital                    6.24       5.88      0.36                   5.91
Shareholders' equity            23,843     20,749     3,094      14.9       21,478
surplus






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