9 Months Results

Banco Santander Central Hispano SA
2 November 1999


BSCH GROUP NET ATTRIBUTABLE INCOME ROSE 20.2% IN FIRST 9 MONTHS OF 1999 TO
PTAS. 201.5 BLN


*Profit in line with objective of Ptas. 260 billion net attributable
income for 1999
*Strong growth in commercial banking business: lending +14%, customer
funds rose 9.5%
*4 point improvement in efficiency ratio to 57.2%
*Return on equity of 18.56%, above 18% target for 1999
*NPL ratio of 1.89%, with provision coverage ratio of 126.3%

The Group has continued to progress in key aspects of its 'Programme ONE'
strategic  plan,  especially key items such as reorganizing  distribution
networks, streamlining costs, restructuring the workforce, and integrating
technology,  both operative and functional. At the end  of  the  quarter,
just  two  data processing centres were in operation, with good  progress
made  towards  building a joint systems platform for two  retail  banking
networks. A new risk management model was introduced, and securities  and
asset  management activities were integrated in the context of  the  BSCH
merger.


Madrid,  November 2, 1999 - Banco Santander Central Hispano recorded  net
attributable income of Ptas. 201.51 billion (1.21 billion euros)  in  the
first  nine  months of 1999, a rise of 20.18% over the same  period  last
year.  Return  on  equity increased to 18.56% from a proforma  figure  of
17.69%  for the same period last year, while earnings per share  came  to
Ptas. 73.3 (0.44 euros) on an annualized basis, compared with Ptas. 61.0
in the previous period.

The profit rise was driven by strong growth in all business areas, and in
particular  from  core  banking  activity  where  net  interest  revenue
including  dividends,  rose  9%  to Ptas, 837.39  billion  (5.03  billion
euros).  Interest revenues increased 6.04% to Ptas, 2.39 trillion  (14.35
billion  euros),  while  interest expenses  rose  5.24%  to  Ptas.  1.596
trillion (9.59 billion euros).

Strong performance from Group subsidiaries and associated companies led
to dividend income rising, 38.1% to Ptas. 45.73 billion. Fee income rose 11.7%
to Ptas. 386.82 billion (2.32 billion euros),  with the bulk coming from asset
management and credit and  debit cards,  which increased 39.9% and 24.6%,
respectively, and made up nearly 52% of the total

Basic  revenue (net interest revenue plus commissions) rose 9.8% to Ptas.
1.22  trillion  (7.36  billion  euros), with  net  fees  and  commissions
accounting for 31.6% of the total. A 7.6% decline in income from  trading
gains reflects the prior decision to reduce market exposure in line  with
prudent group policies on portfolio risk. Net operating revenue rose 9.1%
to Ptas. 1.27 trillion (7.65 billion euros).

Personnel  and  general  expenses were contained  to  a  rise  of  1.92%,
reflecting  cost  savings plans in place from the  first  half  of  1999,
although  their full impact has yet to be felt. Significant  progress  in
this respect was nonetheless made by retail banking in Spain, Banesto and
Global  Wholesale  Banking, and the overall impact of increased  revenues
and cost savings led to an improvement in the cost to income ratio to 57.15%
from 61.15% in the same period last year.

Net  operating  income rose 17.3% to Ptas. 445.68 billion (2.68  billion
euros)  and,  after incorporating income from equity accounted  holdings,
Group  business margin rose 21.1% to Ptas. 480.95 billion  (2.89  billion
euros).

The strong profit generation during the period, both from recurring items
and  from capital gains, made room for net loan loss provisions  of  Ptas
125.67  billion  (755  million euros) - a rise of 80.7%  -  and  goodwill
amortization  of Ptas. 101.08 billion (607.5 million euros)  -up  125.4%.
Both contributed substantially to balance sheet strengthening.

Pre-tax income rose 20% to Ptas. 351.60 billion (2.11 billion euros), and
net  consolidated  income by 22.3% to Ptas. 278.97 million  (1.68  billion
euros).  After  Ptas. 31.35  billion (188 million  euros)  for  minority
shareholders, and Ptas. 46.11 billion (277.2 million euros) for preferred
stock  dividends, net attributable income was Ptas. 201.51 billion  (1.21
billion euros).

Commercial  banking activity accounted for 80% of total net  attributable
income, Global Wholesale Banking for 13% and Asset Management and Private
Banking  for 7%. Among commercial banking activities, Retail  Banking  in
Spain accounted for 38%, Latin America for 23%, Europe for 4% and Banesto
for 15%.

Three business principles have been established for Latin America: strict
risk  management and high asset quality, an emphasis on increased  market
share  in  customer deposits, and increased efficiency and profitability.
In  this respect, net attributable income came to $US464 million  in  the
nine months, on track for the revised objective of $US550 million for the
full year.

Banesto  nine  months net attributable income rose 22.2% to Ptas. 41.77
billion  (251.0  million  euros), as a result of  business  growth,  cost
control and increased profits among subsidiaries.

Total  Group  assets rose 3.16% at the end of the period to  Ptas.  40.73
trillion  (244.78  billion euros), with a notable  improvement  in  their
composition as a result of an increase in customer business and a decline
in balances of government debt paper and with financial intermediaries.

Balance  sheet customer funds came to Ptas. 23.66 trillion (142.2 billion
euros),  but  excluding the impact of a decline of Ptas,  642.09  billion
(3.86  billion euros) in repurchase instruments (repos), the figure rises
10.2%, as resident demand deposits rose strongly by 17.5%.

Time  deposits  and repos declined principally because  of  the  fall  in
interest rates between the two periods and a flow of funds to other forms
of  savings. The loan portfolio rose a significant 14.1% to Ptas. 20.39
trillion  (122.6  billion euros), with lending to  both  the  public  and
private  public sectors registering strong growth. In particular, private
sector  loans  were  up 15%, in line with strategy of  promoting  retail
banking  growth  among  small  and medium size  enterprises  as  well  as
individual Customers.

Among  off  balance sheet items, there was a solid  16%  rise  in
investment   fund  volume  in  Spain,  consolidating   the   Group's
leadership  with  a  market share that rose to 24%,  Pension  funds
rose 33.9% in the period

Non-performing loan ratio fell to 1.89% from 1.96% in the  previous
period and, if NPLs carrying mortgage guarantees are excluded,  the
ratio  falls to 1.59%. Provision cover ratio rose 7.3  points  to
126.27% and excluding NPLs with mortgage guarantees to 150.1%

At  the  end  of September, total equity according to BIS  criteria
came  to Ptas. 2.96 trillion (17.77 billion euros), with BIS  ratio
standing  at 12.07% and Tier 1 at 8.64%. As a result, there  was  a
surplus  equity  over minimum requirements of Ptas. 996.85  billion
(5.99  billion euros). The Group issued 1.33 billion  euros  (Ptas.
221.6  billion)  in  preferred stock during  the  period,  and  500
million euros (Ptas. 83.2 billion) in subordinated debt.

The  complexities of a merger process have not prevented BSCH  from
continuing   to   promote  new  initiatives,  including   two   new
Internet-based   brokerage  and  advisory  services   -   Santander
Broker.com and BCH Broker.com - with a target of 120,000  customers
within   three   years,   The  Group  also   launched   unit-linked
instruments  with a goal of placing Ptas. 200 billion (1.2  billion
euros) in the last four months of the year.

BSCH share price rose 14.57% in the first nine months, comparing favourably with
the 6.15% increase of the banking sector as a whole and the -3.16% result for
the IBEX-35 share index.
     

Market  capitalization came to Ptas. 5.93 trillion  (35.61  billion
euros)  at the end of September, consolidating the Group as one  of
the  largest  in Europe. At the end of September, BSCH  joined  the
Euro  Stoxx  50  index,  along with the  other  leading  Euro  zone
stocks.

By  the end of the period, the Group had 796,815 shareholders, with
55.71%  of  them  resident in Spain. A first  interim  dividend  of
Ptas.  9.15 per share was paid on July 31, an increase  of  9.8%
over  the equivalent payment last year. In line with the policy  of
quarterly  dividends, a second interim payment of Ptas. 9.15  was
made on October 30, a rise of 7.7%.

Performance  in the first nine months, and progress in  integrating
the  new  group,  both  endorse the vision of  BSCH,  which  is  to
achieve:

* The best customer service banking in Europe 
* The highest levels of  business  activity in all areas 
* A prime role in  the  Spanish economy   
* Leadership  in Latin America 
* The  best  prepared  and motivated  teams, and 
* Maximum capacity to generate shareholder value.

These  are  the guiding principles established at the time  of  the
merger,  and  govern strategy for meeting programmes and  objectives
laid down for the Group,

      Attachments: Consolidated income statement, balance sheet,
      Shareholders' equity and capital ratios, loans,
      customer funds.
 



       Consolidated income statement


in millions of pesetas            Jan-Sep 99           Jan-Sep 98  99/98%

Interest revenue + dividends      2,433,438            2,284,734     6.5
Interest expenses                 1,596,045            1,516,581     5.2
NET INTEREST REVENUE                837,391              768,153       9
Net fees and commissions            386,820              346,410    11.7
BASIC REVENUE                     1,224,211            1,114,563     9.8
Trading gains                        47,996               51,952    (7.6)
Net operating revenues            1,272,207            1,166,515     9.1
Personnel and general expenses      727,042              713,376     1.9
 a) Personnel                       471,771              466,491     1.1
 b) General expenses                255,271              246,885     3.4
Depreciation                         90,335               73,978    22.1
Other operating costs                 9,148                 (875)
NET OPERATING INCOME                445,882              380,036    17.3
Income from equity accounted hldgs   35,264               17,017   107.2
BUSINESS MARGIN                     480,946              397,053    21.1
Earnings from Group transactions    120,221               44,937   167.5
Net provisions for loan losses      125,668               69,529    80.7
Writedown of investment securities      343                1,089   (68.5)
Goodwill amortization               101,080               44,836   125.4
Other income                       (22,475)              (33,559)      -
Income before taxes                 351,601              292,977    20.0
Corporate Tax                        72,630               64,885    11.9
Net consolidated income             278,971              228,092    22.3
Minority interests                   31,345               24,612    27.4
Dividend - preferred shareholders    46,114               35,811    28.8
NET ATTRIBUTABLE INCOME             201,512              167,669    20.2



Group balance sheet

ASSETS (in millions of pesetas)30.09.99        30.09.98   99/98(%)    31.12.98

Cash and Central Banks         622,801          557,812      11.7      586,720
Government debt securities   4,661,285        5,214,319     (10.6)   5,238,413
Due from banks               5,227,332        7,712,039     (32.2)   6,453,327
Loans                       20,399,066       17,875,149      14.1   18,698,985
Investment securities        5,578,902        4,370,796      27.6    4,379,860
 Fixed income                4,049,921        3,217,600      25.9    3,151,218
 Equities                    1,528,981        1,153,196      32.6    1,228,642
 Shares and other securities   663,548          528,043      25.7      554,391
 Equity stakes                 720,691          484,386      48.8      531,918
 Equity stakes in Group 
 companies                     144,742          140,767       2.8      142,333
Tangible and intangible 
assets                       1,056,023        1,074,904      (1.8)   1,073,268
Treasury stock                  14,734           17,828     (17.4)      19,997
Goodwill                       438,599          288,743      51.9      365,703
Other assets                 2,596,964        2,275,274      14.1    2,305,875
Prior years' results           131,790           93,210      41.4      132,068
from consolidated companies
Total Assets                40,727,476       39,479,874       3.2   39,254,216

LIABILITIES
Bank of Spain and banks     11,041,123       11,647,222      (5.2)  11,576,291
Customer deposits           19,128,785       19,234,616      (0.6)  18,975,034
Deposits                    16,451,707       15,915,440       3.4   15,721,453
Repos                        2,677,078        3,319,176     (19.4)   3,253,581
Debt securities              3,300,536        2,097,521      57.4    1,986,098
Subordinated debt            1,230,430        1,034,391      19.0    1,050,242
Pension and other allowances   492,769          484,603       1.7      562,765
Minority interests           1,061,880          719,027      47.7      831,465
Net consolidated income        278,971          228,092      22.3      285,320
Capital                        305,135          210,898      44.7      210,898
Reserves                     1,199,271        1,299,352      (7.7)   1,299,507
Other liabilities            2,688,576        2,524,152       6.5    2,476,598
Total Liabilities           40,727,476       39,479,874       3.2   39,254,216 
Other managed funds 
(off-balance sheet)         12,361,808       10,542,459      17.3   11,564,802 
Total managed funds         53,089,284       50,022,333       6.1   50,818,818
Contingent liabilities       3,504,068        3,040,075      15.3    3,155,337
Guarantees                   3,127,114        2,625,944      19.1    2,728,165
Documentary credits            376,954          414,131      (9.0)     427,172





      Shareholders' equity and capital ratios


In millions of pesetas            30.09.99      30.09.98   99/98(%)  31.12.98

Subscribed capital stock           305,135       210,898      44.7    210,898
Paid-in surplus                    643,196       731,091     (12.0)   742,612
Reserves                           347,164       301,011      15.3    340,146
Reserves at consolidated 
companies (net)                     77,121       174,040     (55.7)    84,681
Total primary capital            1,372,616     1,417,040      (3.1) 1,378,337
Net attributable income            201,512       167,669      20.2    207,945
Treasury stock                     (14,734)      (17,828)    (17.4)   (19,997)
Distributed interim dividend       (33,565)      (19,522)     71.9    (54,219)
Shareholders' equity at 
period end                       1,525,829     1,547,359      (1.4) 1,512,066
Interim dividend pending 
distribution                          -             -           -     (19,897)
Final dividend                        -             -           -     (31,665)
Shareholders' equity after     
Allocation of period end 
results                          1,525,829     1,547,359      (1.4) 1,460,504

Preferred shares                   864,120       600,808      43.8    701,577
Minority interests                 275,219       167,952      63.9    207,263
Shareholders' equity & minority 
interests                        2,665,168     2,316,119      15.1  2,369,344
Basic Capital (Tier 1)           2,115,759     1,892,788      11.8  1,893.241
Supplementary Capital              840,697       912,751      (7.9)   912,109
Eligible capital                 2,956,456     2,805,539       5.4  2,805,350
Risk-weighted assets 
(BIS criteria)                  24,495,076    22,116.917      10.8 22,482,163
BIS ratio                            12.07         12.69                12.48
 Tier 1                               8.64          8.56                 8.42
Excess (amount)                    996,850     1,036,186      (3.8) 1,006,777


Loans

In millions of pesetas            30.09.99      30.09.98   99/98(%)  31.12.98

Public sector                      645,748       598,611       7.9    676.285
Private sector                  11,699,180    10,168,983      15.1 10,589,160
 Secured loans                   3,855,602     3,079,005      25.2  3,303,677
 Other Loans                     7,843,578     7,089,978      10.6  7,285,483
Non-resident sector              8,659,909     7,622,045      13.6  7,937,597
 Secured loans                   2,288,756     1,728,658      32.4  1,785,943
 Other loans                     6,371,153     5,893,387       8.1  6,151,654
Gross loans                     21,004,837    18,389,639      14.2 19,203,042
Less: allowance for loan 
losses                             605,771       514,490      17.7    504,057
Net loans                       20,399,066    17,875,149      14.1 18,698,985
Note: doubtful loans               462,313       422,901       9.3    414,820
 Public sector                       1,947         2,415     (19.4)     2,423
 Private sector                    146,212       190,275     (23.2)   174,640
 Non-resident sector               314,154       230,211      36.5    237,757


Customer funds

In millions of pesetas            30.09.99      30.09.98   99/98(%)  31.12.98

Public sector                      263,935        261,292      1.0    354,803
Private sector                   9,908,692     11,372,852    (12.9)11,003,090
Demand deposits                  2,987,895      2,494,030     19.8  2,745,177
Savings accounts                 2,082,575      1,819,794     14.4  1,934,079
Time deposits                    3,155,151      4,534,142    (30.4) 3,957,989
REPOS                            1,672,132      2,505,644    (33.3) 2,349,770
Other accounts                      10,939         19,242    (43.2)    16,075
Non-resident sector              8,956,158      7,600,472     17.8  7,617,824
Deposits                         7,968,535      6,800,082     17.2  6,716,824
REPOS                              987,623        800,390     23.4    900,317
Total customer deposits         19,128,785     19,234,616     (0.6) 18,975,034
Debt securities                  3,300,536      2,097,521     57.4   1,986,096
Subordinated debt                1,230,430      1,034,391     19.0   1,050,242
Total customer funds on-
balance sheet                   23,659,751     22,366,528      5.8  22,011,372
Total managed funds (off-
balance sheet)                  12,361,808     10,542,459     17.3  11,564,602
Mutual funds                     9,618,070      8,333,268     15.4   9,113,471
Spain                            8,369,678      7,211,221     16.1   7,944,997
Abroad                           1,248,392      1,122,047     11.3   1,168,474
Pension funds                    1,872,368      1,398,811     33.9   1,568,813
Spain                              706,629        623,006     13.4     711.157
Individuals                        624,527        551,765     13.2     597,501
Abroad                           1,165,739        775,805     50.3     857,656
Managed portfolios                 871,370        810,380      7.5     882,318
Spain                              472,204        404,706     16.7     433,505
Abroad                             399,166        405,674     (1.6)    448,813
Total customer funds on-balance
sheet                           36,021,559     32,908,897      9.5  33,575,974