3rd Quarter Results

Banco Santander Central Hispano SA
28 October 2004

Banco Santander Central Hispano, S.A.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN

FOR IMMEDIATE RELEASE

           Banco Santander Central Hispano, S.A. ('Banco Santander')

                                                                 28 October 2004

The following is a translation of the announcement (hecho relevante) of third
quarter results released by Banco Santander in Spain yesterday:

 'Grupo Santander records net attributable income of  EUR 3,169 million in the
                           first nine months of 2004

 Net ordinary attributable income was EUR 2,337 million, up 21% (64% including
                extraordinary capital gains of EUR 831 million)

  • Net ordinary attributable income for the period January-September 2004 was
    increased by capital gains on the sale of 2.5% of The Royal Bank of Scotland
    (EUR 472 million), 0.46% of Vodafone (EUR 241 million) and 4% of Shinsei
    Bank (EUR 118 million). These capital gains will be assigned to
    extraordinary end-of-year write-offs.

  • The income statement shows year-on-year increases for all business
    margins, with 12.3% growth in net operating income.

  • Strong growth in the main business areas, with year-on-year increases of
    17% in lending and 13% in customers funds (without REPOs), leading to
    enlarged market share in Spain, Brazil, Mexico and Chile.

  • Retail Banking in Europe registered a profit of EUR 1,570 million, an
    increase of 18.7% from the same period in 2003, owing to higher revenues and
    flat costs.

  • The business drive in Latin America resulted in an increase of 17% in
    lending and 19% in customer funds in local currency against the same period
    in 2003. Profit from the region was EUR 1,025 million.

  • The main management ratios continue to improve: the efficiency ratio
    improved by 1.7 percentage points, to 47.3%, and profitability (ROE) by 2.4
    percentage points, to 16.6%.

  • The non-performing loan rate continues to decline and is now 1.26%, with
    NPL coverage rising to 205%.

  • Shareholders will receive on November 1st the second dividend for 2004
    earnings, again of EUR 0.083, an increase of 7.1% from 2003.

  • The Shareholders' Meeting of Abbey approved the recommended takeover bid
    launched by Grupo Santander, and Santander shareholders have approved the
    capital increase of 1.511 billion shares required to complete the
    transaction.

Madrid, October 27th 2004. Grupo Santander's net attributable income rose to EUR
3,169 million, in the first nine months of 2004, an increase of 64% from the
same period last year. This result includes net ordinary attributable income of
EUR 2,337 million, an increase of 21%, as well as EUR 831 million in
extraordinary capital gains on the sale of 2.5% of The Royal Bank of Scotland
(EUR 472 million), 0.46% of Vodafone (EUR 241 million) and 4% of Shinsei Bank
(EUR 118 million). It is planned that these gains be assigned to extraordinary
write-offs at the end of the financial year.

Net ordinary attributable income for the third quarter was EUR 786 million,
23.4% more than in the same quarter in 2003. The income statement continues the
trend seen in previous quarters, with growth in all business margins and of more
than 12% in net operating income.

This trend is attributable to a growth in business and profit from the most
stable business areas in both Europe and the Americas, while maintaining control
over costs and enhancing risk quality. This strategy has led to increased market
share and an improvement in the main management ratios such as efficiency,
credit quality and profitability.

Improvement in all management ratios

Efficiency

January - September 2003            January - September 2004            Change:
49.0%                               47.3%                               -1.7 percentage points

'Ordinary' ROE (*)

January - September 2003            January - September 2004            Change:
14.14 %                             16.58 %                             +2.44 percentage points

(*) Without extraordinary capital gains

NPL ratio:

January - September 2003            January - September 2004            Change:
1.69 %                              1.26 %                              -0.43 percentage points

Coverage ratio:

January - September 2003            January - September 2004            Change:
149 %                               205 %                               +56 percentage points

Results

Growth in business enabled net interest revenue to reach EUR 6,440 million in
the first nine months of the year, an increase of 8.8% versus the same period in
2003, offsetting consequences of falling interest rates in some countries. This
improvement had a favourable effect on fee income, which rose 10.2% in the first
nine months of 2004. Particularly noteworthy were the increases of 23.7% in
commissions from mutual funds and pensions, 62.5% from insurance and 13.1% from
credit cards.

Weak equity market conditions caused a decline in market related fees, such as
advisory and placement fees. This market situation has caused trading gains to
drop 16.7% over the first nine months of the year, to EUR 700 million, although
most of the impact was felt in the second quarter.

Growth in basic revenues based on retail banking

Group net interest revenue (€ million)

January - September 2003             January - September 2004             Percentage change:
5,919                                6,440                                +8.8%

Business areas net interest revenue - without dividends (€ million)

                      Q1'03       Q2'03       Q3'03       Q4'03       Q1'04       Q2'04      Q3'04
Total                 1,968       1,927       2,006       2,050       2,046       2,131      2,178

Retail Banking         772         698         727         745         777         817        864
America
European Retail       1,081       1,123       1,175       1,196       1,164       1,197      1,232
Banking

The improvement in revenues is combined with control over costs, which as a
whole grew 2.9% in the first nine months, linked to general expenses on the
re-launch of retail business in some countries and the implementation of
corporate projects. Personnel expenses increased only 1.1%.

The combined improvement in revenues and costs made it possible to close
September 2004 with net operating income of EUR 4,882 million, up 12.3%. This
progress has led to a continued improvement in the efficiency ratio so that
overall personnel and general costs account for 47.3 euros of every 100 euros in
net operating revenue, compared to 49 euros in the first nine months of 2003.

Provisions for non-performing loans rose to EUR 1,284 million, up 16.4% from the
same period in 2003. This was the result of increased generic and statistical
provisions, marked by the growth in lending.

Amortisation of goodwill declined considerably to EUR 352 million in the first
nine months of 2004, from EUR 1,178 million in the same period in 2003.  This
decline is due to the fact that last year EUR 699 million was assigned to the
accelerated amortisation of goodwill, representing nearly the entire capital
gain realised on the sale of 24.9% of Santander Serfin to Bank of America.

Contributions from equity-accounted Group holdings, not including dividends,
were EUR 446 million, an increase of 71.2%, due to larger contributions from
institutions such as The Royal Bank of Scotland, Cepsa, Banque Comerciale du
Maroc, Urbis and the Group insurance companies. Other results totalled a
negative EUR 200 million, including various provisions and write-offs designed
to strengthen the balance sheet.

Net ordinary attributable income for the first nine months of the year rose to
EUR 2,337 million, up 21% from the same period a year earlier. If ordinary
amortisation of goodwill is added to this result to facilitate international
comparison, the net attributable cash-basis profit would be EUR 2,687 million.

Retail banking accounted for 82% of ordinary profit from the business areas.
Retail banking in Europe, which registered an 18.7% increase in earnings to EUR
1,570 million, contributed 53%. Latin American retail banking contributed 29%,
with earnings of EUR 839 million, a decline of 1.4% due to the sale of the 24.9%
minority stake in Santander Serfin in February 2003 and to the depreciation of
the dollar. Without these factors, net profit would have increased 11.4%. The
two global business areas (Asset Management/Private Banking and Global Wholesale
Banking) contributed 18% of profit, or EUR 525 million, an increase of 31.6%, in
the first nine months of 2004.

Business

Strength in retail banking was crucial to the Group's performance in the period.
Year-on-year growth rates in lending improved for the seventh consecutive
quarter, offsetting the continued negative impact of exchange rates. Total
managed funds amounted to EUR 482,387 million, up 7% from September 2003.

Grupo Santander lending rose by 16.9% from one year ago, to EUR 200,842 million,
excluding the effect of securitisations. In Spain, lending activity grew by more
than 22% in both the Santander Central Hispano and Banesto branch networks.

Lending to businesses by Santander Central Hispano retail banking grew by 23.6%
while loans to individuals rose by 23.9%. Although mortgages continued to grow
strongly, at a rate of 30.6%, their weight in lending growth was reduced because
of increases in other lending activities.

Quarterly growth distribution

Santander Retail. Significant quarterly volume growth

Loans (€ billion)

Including securitisations, monthly data

                     Mar'03      Jun'03      Sep'03      Dec'03      Mar'04      Jun'04      Sept'04
Amount                57.9        60.9        63.6        68.1        71.0        74.6         77.9
Y-o-Y (%)             9.6%        12.5%       16.7%       20.9%       22.6%       22.6%       22.5%

Quarterly growth distribution

                            Q1'03      Q2'03       Q3'03       Q4'03       Q1'04       Q2'04       Q3'04
Quarterly growth (€bn)      +1.6       +3.0        +2.7        +4.5        +2.9        +3.7        +3.2
Mortgages                    60%        50%         79%         77%         66%         63%         59%
Others                       40%        50%         21%         23%         34%         37%         41%

Business initiatives in Spain, such as the Superoportunidad mortgage products,
continued to gain pace. New initiatives were launched as well, including the
Tarjeta Unica, developed in cooperation with Repsol, which generated 80,000
sales in the first month.

The consumer finance unit, Santander Consumer, grew sharply, with an increase in
new financing of 27%, underpinned by a 28% increase in automobile financing. In
Portugal, the focus continued on mortgages, which grew by 15% (excluding
securitisations). By business segments, lending to individuals grew by 14% and
to small and medium enterprises by 12%.

In Latin America - where the Group attained net attributable income of EUR 1,025
million in the first nine months of the year, a decline of 1.3% (or growth of
8.4% excluding the exchange rate effect) - business performance has been
favourable. Customer lending in the region grew by 17% in local currency terms,
with growth of 32% in Brazil, 17% in Mexico and 16% in Chile.

Latin America (Constant US$)

Loans (*) + Customer funds (**)

(*) Loans without IPAB

(**) Customer loans without REPOs + mutual and pension funds

Data in billions

  Mar'03      Jun'03      Sep'03      Dec'03      Mar'04      Jun'04      Sept'04
   93.7        96.5        96.8        101.5       107.4       110.6       114.6


Growth between September'03 and September'04 =18%

Growth: Sep'04 / Sep'03

Loans                                       Customer funds
+6.1 billion (+18%)                         +11.7 billion (+19%)

The focus of these banks on their retail business and the development of
businesses deemed to be strategic (credit cards, cash management, trade,
investment funds and insurance) has yielded higher growth in business with
individuals and contributed to an increase in income from commissions and fees
of 26.7%, excluding the exchange rate effect.

Lending growth has come hand-in-hand with a decline in the non-performing loan
ratio, so that the volume of doubtful and high-risk loans has fallen to just
1.26% of lending at the end of September from 1.69% a year earlier. The Group's
NPL ratio in Spain is 0.7%, in consumer finance (Santander Consumer) 2.1% and in
Latin America 2.7%. At the same time, NPL coverage continued to increase, and is
now at 205%. The coverage rate in Spain is 315% and in Latin America, it is
161%.

Business strategies applied by Grupo Santander have allowed it to increase its
share of lending in the main markets in which it operates. In Spain, its share
of lending by banks rose by 1.2 percentage points, and was up by 0.4 percentage
points when measured against banks and savings institutions. In Latin America,
the Group's market share in lending rose by 0.9 percentage points in Brazil, by
1.4 percentage points in Mexico and by one percentage point in Chile.

In savings, total managed customer funds rose to EUR 353,029 million at the end
of September 2004, up 11.3% from a year earlier. Balance sheet funds grew by
9.1% and off-balance sheet funds, such as investment funds and pensions, by
15.6%.

Total deposits in Spain, less repurchase agreements, plus investment funds and
pensions plans, grew by 10% through the end of September from the same period a
year earlier. Stability in time deposits was notable after several quarters of
declines, as was the increase in sight deposits, with current accounts growing
by 8.4%. Investment funds grew by 14.9% and pensions by 11.2% from September
2003. The Supergestion and Supercuenta Empresas funds - the later targeted at
micro businesses and SMEs - were strong in the most recent quarter.

In Latin America, total managed customer funds increased by 19.2% in local
currencies, with increases in 17.7% in balanced sheet funds and 27.6% in
investment funds and 14.4% in pension plans. Total customer funds rose by 22% in
Brasil and in Mexico and by 19% in Chile.

Capital

Eligible capital of the Group at the end of September 2004 came to EUR 29,636
million, with a surplus over minimum required BIS levels of EUR 11,551 million.
The BIS ratio thus stood at 13.1%, with Tier I at 8.4% and core capital at 6.6%.

At the end of September, goodwill pending amortization stood at EUR 7,135
million, a decline of EUR 1,275 million, or 15.2%, from a year ago. A major
factor in this decline was the accelerated amortization of the goodwill related
to Banespa.

In the third quarter of 2004, the Group carried out three preferred share issues
for a total of EUR 1,730 million and two subordinated debt issues of EUR 500
million each.

The Acquisition of Abbey National

On October 14th 2004, the shareholders of Abbey National plc approved, with the
support of 94.2% of the present and represented share capital, in an
Extraordinary Shareholders Meeting, its proposed acquisition by Grupo Santander,
launched on July 26th 2004.

On October 21st 2004, Santander shareholders, also in an Extraordinary
Shareholders Meeting, with the support of 99.4% of the present and represented
share capital, approved a capital increase to effect the acquisition of Abbey
through the issuance of 1,511,377,903 new shares to exchange for shares of
Abbey. The Santander Extraordinary Shareholders Meeting also approved the
granting of 100 Santander shares to each Abbey employee as a one-time bonus to
mark the acquisition.

The transaction has also been approved by the European Commission and is pending
the sanction of the UK court and the necessary approvals from the UK and Spanish
regulators.

In addition, the Extraordinary Shareholders Meeting confirmed the appointment of
Javier Botin-Sanz de Sautuola y O'Shea as a director, as agreed by the Board of
Directors on July 25th, 2004, filling the vacancy left  by Jaime Botin-Sanz de
Sautuola.

The share and the dividend

The Santander share closed at the end of September at EUR 7.86, a decline of
7.9% from the end of June. The share's performance was affected by the offer to
acquire Abbey National, launched at the end of July.  At September 30th, the
Group's market capitalization came to EUR 37,480 million, making it the third
largest bank in the euro zone and the 15th largest in the world.

The Board of Directors of Santander agreed on October 20th 2004 to extend until
December 31st 2004 the treasury stock repurchase programme announced on July
26th 2004 which allows for the purchase of up to 190 million shares, net of
sales, representing approximately 4% of the equity capital of Banco Santander
for a maximum purchase price of EUR 9.77 a share. As of September 30th 2004, the
number of Santander shares in the portfolio of Pereda Gestion linked to this
programme represented 0.46% of Banco Santander's equity capital.

The second dividend payment in respect of this year's results will be made on
November 1st 2004. The amount will be unchanged at EUR 0.083. Together, the two
dividend payments so far this year are 7.1% higher than the corresponding
dividends paid in 2003.


Income statement
                                        Jan.-Sep. 04           Jan.-Sep. 03             Variation
                                   Mill. euros       %ATA Mill. euros       %ATA      Amount         (%)

Interest revenues                     13,287.1       4.98    13,006.3       5.17       280.7        2.16
Dividends                                518.4       0.19       353.8       0.14       164.6       46.51
Interest expenses                    (7,365.7)     (2.76)   (7,441.6)     (2.96)        75.9      (1.02)
Net interest revenue                   6,439.8       2.41     5,918.6       2.35       521.2        8.81
Net fees and commissions               3,416.6       1.28     3,101.1       1.23       315.4       10.17
Basic revenue                          9,856.3       3.70     9,019.7       3.58       836.6        9.28
Trading gains                            700.1       0.26       840.2       0.33     (140.1)     (16.68)
Net operating revenue                 10,556.4       3.96     9,859.9       3.92       696.5        7.06
Personnel and general expenses       (4,994.7)     (1.87)   (4,827.4)     (1.92)     (167.4)        3.47
   a) Personnel expenses             (3,056.3)     (1.15)   (3,021.8)     (1.20)      (34.6)        1.14
   b) General expenses               (1,938.4)     (0.73)   (1,805.6)     (0.72)     (132.8)        7.36
Depreciation                           (543.8)     (0.20)     (567.6)     (0.23)        23.8      (4.20)
Other operating costs                  (136.2)     (0.05)     (119.0)     (0.05)      (17.2)       14.45
Operating costs                      (5,674.7)     (2.13)   (5,514.0)     (2.19)     (160.7)        2.91
Net operating income                   4,881.7       1.83     4,345.9       1.73       535.8       12.33
Income from equity - accounted           446.3       0.17       260.7       0.10       185.6       71.21
holdings
Less: Dividends from equity -            283.5       0.11       240.0       0.10        43.5       18.13
accounted holdings
Earnings from Group transactions        (45.2)     (0.02)       704.4       0.28     (749.6)           -
Net provisions for loan - losses     (1,284.5)     (0.48)   (1,103.4)     (0.44)     (181.1)       16.41
Writedown of investment securities       (0.4)     (0.00)         0.7       0.00       (1.1)           -
Accelerated goodwill amortization        (2.4)     (0.00)     (699.1)     (0.28)       696.7     (99.65)
Other income                           (200.3)     (0.08)        73.5       0.03     (273.8)           -
Ordinary income before taxes           3,795.2       1.42     3,582.7       1.42       212.5        5.93
(cash-basis*)
Corporate tax                          (701.9)     (0.26)     (698.5)     (0.28)       (3.4)        0.49
Net ordinary consolidated income       3,093.3       1.16     2,884.2       1.15       209.1        7.25
(cash-basis*)
Minority interests                       252.3       0.09       229.2       0.09        23.1       10.09
Dividend - preferred shareholders        154.3       0.06       246.6       0.10      (92.3)     (37.43)
Net ordinary attributable income       2,686.7       1.01     2,408.5       0.96       278.2       11.55
(cash-basis*)
Ordinary goodwill amortization         (349.3)     (0.13)     (478.5)     (0.19)       129.2     (27.01)
Net ordinary attributable income       2,337.4       0.88     1,930.0       0.77       407.4       21.11
Extraord. income from capital            831.3       0.31         0.0       0.00       831.3           -
gains and extraord. allowances
Net attributable income (including     3,168.7       1.19     1,930.0       0.77     1,238.7       64.18
extraordinaries)

(*) Before ordinary goodwill
amortization.





Loans
Million euros                                                            Variation
                                          30.09.04      30.09.03        Amount          (%)      31.12.03

Public sector                              6,150.3       5,367.6         782.7        14.58       5,487.4
Private sector                           116,585.4      96,409.2      20,176.2        20.93     103,515.6
    Secured loans                         57,475.2      43,837.9      13,637.3        31.11      47,999.6
    Other loans                           59,110.2      52,571.3       6,538.9        12.44      55,516.0
Non-resident sector                       78,106.4      72,278.2       5,828.2         8.06      68,617.7
    Secured loans                         20,422.5      21,322.5       (900.0)       (4.22)      18,796.1
    Other loans                           57,683.9      50,955.7       6,728.2        13.20      49,821.6
Gross loans                              200,842.1     174,055.0      26,787.1        15.39     177,620.7
Less: allowance for loan-losses            5,648.3       5,119.9         528.5        10.32       5,116.7
Net loans                                195,193.8     168,935.1      26,258.7        15.54     172,504.0
Note: Doubtful loans                       3,051.6       3,467.7       (416.1)      (12.00)       3,276.7
    Public sector                              0.8           1.9         (1.1)      (56.17)           0.9
    Private sector                           844.0         957.3       (113.4)      (11.84)         930.7
    Non-resident sector                    2,206.9       2,508.5       (301.6)      (12.02)       2,345.1





Customer funds
Million euros                                                            Variation
                                      30.09.04        30.09.03         Amount            (%)        31.12.03

Public sector                         12,374.5        13,353.0        (978.6)         (7.33)         9,225.9
Private sector                        80,582.2        75,599.2        4,983.0           6.59        77,918.9
   Demand deposits                    25,457.5        23,494.4        1,963.1           8.36        25,089.2
   Saving accounts                    18,492.9        17,216.7        1,276.2           7.41        17,823.4
   Time deposits                      18,842.8        18,693.2          149.5           0.80        18,640.1
   REPOs                              16,984.8        16,164.0          820.8           5.08        16,348.5
   Other accounts                        804.2            30.9          773.3              -            17.7
Non-resident sector                   75,317.8        71,413.7        3,904.1           5.47        72,190.7
   Deposits                           69,747.2        64,780.6        4,966.6           7.67        65,885.5
   REPOs                               5,570.7         6,633.2      (1,062.5)        (16.02)         6,305.2
Total customer deposits              168,274.5       160,366.0        7,908.5           4.93       159,335.6
Debt securities                       49,921.0        39,269.3       10,651.7          27.12        44,441.2
Subordinated debt                     12,444.2        11,740.1          704.1           6.00        11,221.1
Total customer funds on balance      230,639.7       211,375.4       19,264.3           9.11       214,997.9
sheet
Total managed funds (off-balance     122,388.8       105,856.0       16,532.8          15.62       108,903.0
sheet)
Mutual funds                          90,664.6        78,029.5       12,635.1          16.19        80,502.0
   Spain                              67,154.3        58,439.5        8,714.8          14.91        60,725.4
   Abroad                             23,510.4        19,590.0        3,920.3          20.01        19,776.6
Pension funds                         20,999.2        18,993.2        2,006.0          10.56        19,494.8
   Spain                               6,781.5         6,100.9          680.6          11.16         6,652.7
       Individuals                     5,796.5         5,268.8          527.7          10.01         5,767.7
   Abroad                             14,217.7        12,892.3        1,325.4          10.28        12,842.1
Managed portfolios                    10,724.9         8,833.3        1,891.7          21.42         8,906.1
   Spain                               2,765.9         2,813.7         (47.8)         (1.70)         2,450.5
   Abroad                              7,959.0         6,019.6        1,939.4          32.22         6,455.6
Total customer funds                 353,028.5       317,231.4       35,797.1          11.28       323,900.8




Shareholders' equity and capital ratios
Million euros                                                          Variation
                                      30.09.04       30.09.03        Amount           (%)       31.12.03

Subscribed capital stock               2,384.2        2,384.2           0.0          0.00        2,384.2
Paid-in surplus                        8,720.7        8,979.7       (259.0)        (2.88)        8,720.7
Reserves (includes net reserves
   at consolidated companies)          7,252.8        6,363.2         889.6         13.98        6,102.5
Total primary capital                 18,357.7       17,727.2         630.5          3.56       17,207.4
Net attributable income                3,168.7        1,930.0       1,238.7         64.18        2,610.8
Treasury stock                         (222.3)         (31.1)       (191.3)        615.97         (10.2)
Distributed interim dividend           (395.8)        (369.6)        (26.2)          7.10        (739.1)
Shareholders' equity at               20,908.3       19,256.5       1,651.8          8.58       19,069.0
period-end
Interim dividend pending                   0.0            0.0           0.0             -        (369.6)
distribution
Final dividend                             0.0            0.0           0.0             -        (335.7)
Shareholders' equity after
   Allocation of period-end           20,908.3       19,256.5       1,651.8          8.58       18,363.7
results
Preferred shares                       4,336.0        4,655.8       (319.8)        (6.87)        4,484.9
Minority interests                     1,695.8        1,640.1          55.6          3.39        1,575.8
Shareholders' equity and              26,940.0       25,552.5       1,387.5          5.43       24,424.4
minority interests

Basic capital (Tier I)                19,032.5       16,280.0       2,752.5         16.91       16,951.2
Supplementary capital                 10,603.1        8,523.8       2,079.3         24.39        8,570.2
Eligible capital                      29,635.5       24,803.7       4,831.8         19.48       25,521.4
Risk weighted assets (BIS            226,059.4      200,989.5      25,069.9         12.47      205,253.4
criteria)
BIS ratio                                13.11          12.34          0.77                        12.43
    Tier I                                8.42           8.10          0.32                         8.26
Excess (amount)                       11,550.8        8,724.6       2,826.2         32.39        9,101.1



Enquiries:

Banco Santander
Keith Grant (Head of International Media)                    + 34 91 289 5206
Peter Greiff                                                 + 34 91 289 5207

Maitland
Angus Maitland                                               + 44 207 379 5151

Brunswick
Rurik Ingram                                                 + 44 207 404 5959




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