9 Mths Results - Part 2

Banco Santander Central Hispano SA
30 October 2000


PART 2


Santander Central Hispano consolidated income statement

Income statement

                     January - September 2000   Jan,Sep. 1999   Variation 00/99
                     Pta. MM.  Euro MM.  %ATA   Euro MM. %ATA   Amount      (%)

Interest revenues   3,551,022  21,342.1  9.53  14,350.4  7.80   6,991.7   48.72
Dividends              54,311     326.4  0.15     274.8  0.15      51.6   18.76
Interest expenses  (2,617,249)(15,730.0)(7.02) (9,592.4)(5.21) (6,137.6)  63.98
Net Interest 
 revenue              988,084   5,938.5  2.65   5,032.8  2.73     905.7   18.00
Net fees and 
 commissions          483,346   2,905.0  1.30   2,324.8  1.26     580.1   24.95
Basic revenue       1,471,430   8,843.5  3.95   7,357.7  4.00   1,485.8   20.19
Trading gains          82,035     493.0  0.22     288.5  0.16     204.6   70.92
Net operating 
 revenue            1,553,465   9,336.5  4.17   7,646.1  4.15   1,690.4   22.11
Personnel and 
 general expenses    (849,187) (5,103.7)(2.28) (4,369.6)(2.37)   (734.1)  16.80
 a) Personnel 
    expenses         (524,598) (3,152.9)(1.41) (2,835.4)(1.54)   (317.5)  11.20
 b) General expenses (324,589) (1,950.8)(0.87) (1,534.2)(0.83)   (416.6)  27.15
Depreciation         (107,007)   (643.1)(0.29)   (542.9)(0.29)   (100.2)  18.46
Other operating costs (11,101)    (66.7)(0.03)    (55.0)(0.03)    (11.7)  21.35
Operating costs      (967,295  (5,813.6)(2.60) (4,967.5)(2.70)   (846.0)  17.03
Net operating 
 income               586,170   3,523.0  1.57   2,678.6  1.46     844.3   31.52
Income from equity - 
 accounted holdings   103,302     620.9  0.28     211.9  0.12     408.9  192.94

Less:
Dividends from equity 
-accounted holdings   35,255      211.9  0.09     193.4  0.11      18.5   9.57
Earnings from Group 
 transactions         60,181      361.7  0.16     722.5  0.39    (360.8)(49.94)
Net provisions for 
loan - losses       (108,287)    (650.8)(0.29)   (755.3)(0.41)    104.5 (13.83)
Writedown of invest-
ment securities           96        0.6  0.00      (2.1)(0.00)      2.6      -
Goodwill 
 amortization        (36,850)    (221.5)(0.10)   (607.5)(0.33)    386.0 (63.54)
Other income        (135,757)    (815.9)(0.36)   (135.1)(0.07)   (680.8)503.92
Income before taxes  468,855    2,817.9  1.26   2.113.2  1.15     704.7  33.35
Corporate tax        (93,798)    (563.7)(0.25)   (436.5)(0.24)   (127.2) 29.14
Net consolidated 
 income              375,057    2,254.1  1.01   1,676.6  0.91     577.5  34.44
Minority interests    46,720      280.8  0.13     188.4  0.10      92.4  49.05
Dividend - preferred 
 shareholders         55,159      331.5  0.15     277.2  0.15      54.4  19.61
Net attributable 
 income              273,178    1,641.8  0.73   1,211.1  0.66     430.7  35.56

Note:
Average Total 
 Assets           49,680,178  298,583.9       245,451.2        53,132.7  21.65
Average Share-
 holders' Equity   1,678,568   10,088.4         8,702.3         1,386.1  15.93



Quarterly, Euro million

Income statement                    1999                                  2000
                2nd quarter  4th quarter  1st quarter  2nd quarter  3rd quarter

Interest revenues   4,573.3      5,261.6      4,853.7      6,878.3     9,610.1
Dividends              79.4         56.8         87.6       189.9         48.9
Interest expenses  (2,960.0)    (3,681.4)    (3,229.9)   (5,056.5)    (7,443.5)
Net interest 
 revenue            1,692.6      1,637.1      1,711.4     2,011.7      2,215.5
Net fees and 
 commissions          762.0        752.3        914.0       961.5      1,029.5
Basic revenue       2,454.6      2,389.4      2,625.3     2,973.1      3,245.0
Trading gains         145.7         91.2        133.7       141.8        217.5
Net operating 
 revenue            2,600.3      2,480.6      2,759.1     3,114.9      3,462.5
Personnel and 
 general expenses  (1,489.5)    (1,473.6)    (1,482,8)   (1,704,1)    (1,916.7)
a) Personnel 
    expenses         (952.6)      (940.4)      (952.5)   (1,065.6)    (1,134.8)
b) General expenses  (536.9)      (533.2)      (530.4)     (638.5)      (781.9)
Depreciation         (189.7)      (192.9)      (190.4)     (217.1)      (235.6)
Other operating 
 costs                (20.2)       (13.8)       (22.5)      (13.3)       (30.9)
Operating costs    (1,699.4)    (1,680.2)    (1,695.8)   (1,934.5)    (2,183.3)
Net operating income  900.9        800.4      1,063.3     1,180.5      1,279.2
Income from equity 
 - accounted holdings  72.6        110.9        193.9       150.4        276.6
Less:
Dividends from equity 
- accounted holdings   50.5         46.8         42.7       143.3         25.9
Earnings from Group 
 transactions          31.2        (18.0)        49.5       295.2         16.9
Net provisions for 
 loan - losses       (290.3)      (232.8)      (159.1)     (131.2)      (360.5)
Writedown of investment 
 securities            (1.5)        (1.9)        (0.2)        0.5          0.2
Goodwill amortization(531.9)       (40.5)       (39.9)      (75.2)      (106.4)
Other income          543.8        (15.6)      (264.8)     (464.6)       (86.4)
Income before taxes   724.7        602.4        842.6       955.6      1,019.7
Corporate tax        (148.5)      (107.0)      (171.5)     (191.2)      (201.0)
Net consolidated 
 Income               576.2        495.4        671.1       764.3        818.7
Minority interests     70.0         42.8         91.3       101.7         87.7
Dividend - preferred 
 shareholders          97.9         88.6         96.5       111.7        123.1
Net attributable 
 income               408.3        364.0        483.2       550.9        607.7
Note
 Average Total 
  Assets          248,243.0    251,038.0    262.315.0   308.708.6    321,669.8
 Average Share-
  holders' Equity   8,315.0      7,946.5      8,497.1     9,120.4     12,062.9



CONSOLIDATED GROUP RESULTS

A high capacity to generate revenue more efficiently: 
net operating income grew 31.5%

The business drive of the different areas, the increased level of activity and
the improvement in efficiency are reflected in the growth in Group earnings,
larger customer business volumes and productivity gains

Summary of the first nine months

The Group's main indicators performed well in the first nine months, well on 
the way to meeting the initial goals of Program ONE for the year, and in some
cases surpassing them.

The strong business drive in all areas, greater activity and improved
efficiency are reflected in the growth in Group earnings, larger customer
business volumes and the rise in productivity.  This performance was intensified
by the incorporation to the Group of recently acquired entities,  as well as
increases in existing stakes, within the growth strategy drawn up by the Group.

The main entities incorporated to the Group, which were partially included in
the first half, were Totta, Credito Predial Portugues and Serfin. as well as 
the increased stake in Royal Bank of Scotland.  In the third quarter the results
of the Meridional Group were also included (as of June only the balance sheet
was consolidated) and Patagon.com was integrated for the first time. Their
incorporation is reflected in full in the balance sheet, but in the income
statement their results are recorded as from the date of acquisition.

The income statement reflects growth in all revenue and income lines and
significant improvements in efficiency and profitability ratios.  Net
attributable income rose 35.6% to EUR 1,641.8 million (Pta. 273,178 million). 
Earnings per share grew 21.2% in line with the Group's forecasts to achieve, at
year-end, its 25% growth target.

The main highlights of the income statement:

- The results reflect the Group's goal of achieving more business at a lower
  cost, which resulted in an increase of 22.1% in net operating revenue, well 
  above the rise of 16.8% in personnel and general expenses (which actually 
  declined on a like-for-like basis).

- The strength of net operating income, which grew 31.5% (+43.4% including
  Income from equity-accounted holdings, an item of increasing importance
  because of the higher stakes in European banks and the good performance of 
  companies in which stakes are held).

- The favorable, though limited, impact of exchange differences on Group 
  results (+6% in operating income and +2.6% - EUR 32 million - in net
  attributable income)

- The positive performance of the different business areas, with significant  
  rises in net operating income and net attributable income and an improved 
  efficiency ratio.

- The increase in profitability, both ROA and ROE, with ROA at 1.01% (0.91% at  
 September 30, 1999), and ROE at 21.7%, three points higher than in 1999.

The growth in the balance sheet was due to the incorporation of new entities as
well as to the increase in existing business.  Total assets rose 35.0%
(EUR 85,576 million), to EUR 330,353 million (Pta. 55.0 trillion), with around
half of this growth coming from new incorporations.  Exchange rates, with the
euro failing against the US dollar, also contributed to the rise in total
managed assets (around a 6% increase during the period).

Business volume (loans and managed funds) increased 35.2% over the past 12
months, with growth of 32% in loans and 37% in customer funds.  Within customer
funds, both on - and off-balance sheet funds performed well, with deposits with
the resident private sector (which are not affected by the incorporation of new
entities) growing 14.3%.

Off-balance sheet funds also increased significantly, largely because of the
strong growth in funds managed abroad. most of them in Latin America, with
increases In pension and mutual funds of 71% and 67% respectively (natural
business growth and acquisitions).

Santander Central Hispano Consolidated Results

Net interest revenue: growth in all quarters this year

Group net interest revenue rose 18.0% to EUR 5,938.5 million. Growth came from
the rise in business volumes, including the higher contribution from new 
incorporations, and from active balance sheet management which limited the
negative impact of the fall in margins over 1999 and is favoring the change in
trend in customer spreads during the course of this year.

This performance resulted in net interest revenue in the third quarter, even
excluding the new incorporations, recording a higher figure than in the 
previous quarter.  On a like-for-like basis net interest revenue increased in
each of the last three quarters.

Excluding new incorporations, which contributed EUR 745.5 million, and the 
favorable exchange rate impact, net interest revenue remained flat compared to 
1999.  This is mainly due to the increase in the cost of financing new
acquisitions, whose income is partially reflected in other lines of the income
statement, and the fixed income portfolio, as a result of the rise in short term
interest rates.


Average yield of assets

                            January - September 2000   January - September 1999
(%)                          Weight         Av. rate    Weight         Av. rate

Central banks and Government 
 debt securities              11.03             5.43     14.14             5.39
Due from banks                13.00             7.25     15.14             5.62
Loans                         49.88             9.37     47.89             9.44
 EMU currency                 30.75             5.80     30.19             5.79
 Other currencies             19.14            15.10     17.70            15.67
Investment securities         15.18             6.35     12.36             6.95
Other assets                  10.91             0.00     10.47             0.00
Other revenue                  0.00             2.50      0.00             0.95
Total                        100.00             9.68    100.00             7.95


Average cost of funds

                            January - September 2000   January - September 1999
(%)                          Weight         Av. rate    Weight         Av. rate

Due to banks                  23.17             5.83     29.18             4.23
Customer deposits             48.95             4.71     46.75             4.43
 EMU currency                 27.60             2.16     28.09             1.95
 Other currencies             21.35             8.00     18.66             8.15
Debt securities and 
 subordinated debt            17.04             7.70      9.38             8.08
 EMU currency                  4.84             5.05      2.02             6.12
 Other currencies              7.20             9.49      7.36             8.62
Net shareholders' equity       4.50             0.00      3.95             0.00
Other liabilities             11.34             1.60     10.74             0.57
Other costs                    0.00             2.26      0.00             1.09
Total                        100.00             7.02    100.00             5.21


Net fees and commissions: growth in all areas

Net fees and commissions rose 25.0% to EUR 2,905.0 million.  Progress was made 
in all business areas and in their main components: funds managed, securities 
and custody fees, credit and debit cards, checks and transfers, trade bills and
contingent liabilities.


Net fees and commissions

                   January - September 2000   Jan.-Sep.99   Variation 2000/1999
                   Pta.MM.         Euro MM.      Euro MM.   Amount          (%)

Mutual & pension 
 funds             171,749         1,032,2         922.1     110.1       11.94
Credit and debit 
 cards              59,375           356.9         277.4      79.5       28.66
Securities services 88,513           532.0         394.0     137.0       34.70
Contingent 
 liabilities        25,419           152.8         127.5      25.3       19.84
Other operations   138,290           831.1         603.0     228.2       37.84
Total              483,346         2,905.0       2,324.8     580.1       24.95


This performance reflects, as in other income statement items, the measures
adopted to strengthen the contribution to the income statement as well as the
contribution from new incorporations and the favorable impact of exchange rates.


Basic revenue: 20.2% growth due to net interest revenue and net fees and
commissions                  
                             
Due to the growth in net interest revenue and net fees and commissions, basic
revenue rose 20.2% in the first nine months to EUR 8,843.5 million
(Pta. 1.5 trillion)

The weight of net fees and commissions in basic revenue increased to 32.8% from
31.6% in 1999.

Trading gains: greater revenues while maintaining a reduced risk level

Trading gains amounted to EUR 493.0 million in the first nine months of 2000,
with a favorable performance of the trading portfolios in Spain and subsidiaries
abroad, while the negative impact of exchange rates on positions derived from
the financing of investments abroad declined.

Higher revenues are being obtained while implementing the Group's policy of
maintaining a medium/low market risk profile which, in Value at Risk (VaR)
terms, stood at an average of US$31.9 million for the trading portfolio in the
third quarter (maximum of US$49.9 million and minimum of US$23.3 million).
Although the highest VaR of the year was produced in the third quarter, the
average values show a slight fall of the risk levels assumed.

Higher oil prices, inflationary pressures and the euro's weakness, combined 
with lower economic growth prospects. generated instability in the financial
markets during the third quarter with no clear trends, in evidence and 
volatility striking the dominant note.  Due to these circumstances and the
greater marketing of low risk financial products for distribution by the
corporate banking area and the branch network, the Group's risk profile was
reduced.  The reduction was maintained, despite the incorporation of the 
portfolios derived from new acquisitions.

Net operating revenue: up 22.1%. with a solid structure

Net operating revenue rose 22.1% to EUR 9,336.5 million (Pta.1.6 trillion). Of
note was the high contribution of the retail banking areas, both in Spain and
abroad which, together, accounted for 84% of the Group's total (excluding
Corporate Activities) and the high relative share of the most recurrent revenue
(net interest revenue and net fees and commissions), which accounted for 95% of
net operating revenue.  The figure, which rose for the third quarter running,
was the highest of the year even excluding the new operations.

Personnel and general expenses: continued Improvement in efficiency

The increased stakes in some entities and the performance of some currencies
(basically Latin American) against the Euro produced a 16.8% rise in personnel
and general expenses.  Excluding the effects of the incorporation of new
entities and exchange rate differences, costs on a like-for-like  basis 
declined 3.5%, as certain measures, such as the Branch Optimization Plan, the
early retirement program, still being developed, and specific cost saving
programs in Latin America and in branches abroad, are beginning to take effect.


Personnel and general expenses

                   January - September 2000   Jan.-Sep.99   Variation 2000/1999
                   Pta.MM.         Euro MM.      Euro MM.   Amount          (%)

Personnel expenses 524,598          3,152.9       2,835.4    317.5       11.20
General expenses   324,589          1,950.8       1,534.2    416.6       27.15
Information 
 technology         56,373            338.8         241.7     97.1       40.19
 Communications     34,159            205.3         164.6     40.7       24.71
 Advertising        32,669            196.3         152.2     44.2       29.04
 Buildings and 
  premises          60,305            362.4         295.8     66.6       22.52
Printed & office 
 material           10,579             63.6          58.6      5.0        8.50
Taxes (other than 
 income tax)        22,880            137.5         114.2     73.3       20.45
Other expenses     107,624            646.8         507.2    139.7       27.53 
Total              849,187          5,103.7       4,369.6    734.1       16.80


Despite this favorable performance, there is still a long way to go in terms  of
cost reduction, such as, for example, the downsizing of central structures.  The
only item of general expenses which is growing significantly on a like-for-like
basis is IT and systems, as a result of the integration process, the development
of new distribution channels and the launch of the Altair Project (technological
platform in Latin America).

All business areas improved their efficiency ratios compared to 1999; in some 
cases because of the nominal reduction in spending and in others because the
growth in costs was below that of revenue.  Asset Management and Private 
Banking and Retail Banking Abroad registered significant nominal growth in 
their expenses because of the incorporation of new entities and greater business
activity, but the rise was well below that of revenue so their performance in
terms of efficiency was also very positive.

The Group's efficiency ratio improved to 54.7% in the first nine months from
57.2% in the same period of 1999 and 57.7% in 1999 as a whole.  This ratio is 
2.3 points better than initially set in Program ONE for year-end, even though it
increased slightly with the incorporation of new entities (excluding these the
ratio would be 53.6%).



Depreciation growth in activity and acceleration in amortization rates

Depreciation increased 18.5% to EUR 643.1 million.  The rise was largely due  to
the incorporation of new entities, because on a like-for-like basis, growth was
just 2.2% chiefly due to the greater volume of renting operations (the 
depreciation of which, in accordance with accounting rules, is included in  this
line, while the corresponding revenue is reflected under 'other income').

Net operating income: year-on-year growth of 31.5%

The Group's high capacity to generate revenues, combined with cost control. 
produced a rise of 31.5% in net operating income to EUR 3,523.0 million 
(Pta. 586,170 million).  This was more than double the target set in Program
ONE.  The following points deserve special mention:

* Greater business activity and the rise in commissions, together with better  
  trading gains, were the main contributing factors. as well as cost control 
  since growth in expenses was less than half that of net operating revenue.

* The rise on a like-for-like basis was 14.6% due to the favorable performance 
  of all business areas, which achieved significant rates of growth.

* Including income from equity-accounted holdings, an increasingly stable item 
  and one of growing importance in the income statement, growth on a like-for-
  like basis was 24.4%.

Income from equity-accounted holdings: total contribution doubles

The investments made in European banks with whom the Santander Central Hispano 
Group maintains alliances, the recording of their final 1999 results, in many
cases higher than those reflected during the year, and the good general 
performance of these entities, resulted in a net contribution, including
dividends paid, to the Group's results of EUR 832.7 million (105.4% higher than
in the first nine months of last year).  The main entities on the basis of their
contribution were: Royal Bank of Scotland, Societe Generale, San Paolo-IMI,
Cepsa, and Commerzbank, together with a broad range of financial, industrial and
service companies, including Agapsa, in which Banesto has a  stake and which
generated significant income through property sales in the first quarter of
2000.

Earnings from Group transactions: income assigned to reserves

There was no significant operation in the third quarter.  Earnings from Group 
transactions amounted to EUR 361.7 million which related basically to capital
gains from the sale of Royal Bank of Scotland shares in the second quarter. This
sate took place in order not to exceed regulatory limits, applied by the Federal
Reserve, on the size of the Bank's stake following the acquisition of shares of
Royal Bank of Scotland to support the latter's takeover of NatWest. These
capital gains, however, had no significant final impact on the income statement
as they were assigned in full to general reserves pending specific allocation.

Net provisions for loan-losses: lower generic and country-risk allocation

Net loan-loss and country-risk provisions totaled EUR 650.8 million, 13.8% 
lower than in the first nine months of 1999.  This figure includes EUR 50.6 
million from the entry into force of the Bank of Spain's new regulation
regarding provisions for statistical coverage of loan-losses.


Net loan-loss and country risk provisions

                   January - September 2000   Jan.-Sep.99   Variation 2000/1999
                   Pta.MM.         Euro MM.      Euro MM.   Amount          (%)

Non - performing 
 loans             165,126           992.4       1,031.8     (39.4)      (3.82)
Country - risk     (12,204)          (73.3)          4.0     (77.4)          -
Recovery of 
 written - off 
 assets            (44,635)         (268.3)       (280.6)     12.3       (4.40)
Net provisions     108,287           650.8         755.3    (104.5)     (13.83)


The reduction was due to the Group's lower needs for provisions in Global 
Wholesale Banking and the continued reduction in country-risk (reflected in a
released funds figure of EUR 73.3 million in the first nine months of this year
compared to a provision of EUR 4.0 million during the same period in 1999).

Goodwill: amortization according to schedule

The Group charged EUR 221.5 million to amortization of goodwill, 63.5% less than
in the first nine months of 1999.  The reduction is due to the fact that  no
early amortization took place against results this year, while a general charge
of EUR 486.2 million was made in the first nine months of 1999 from the capital
gain arising from the sale of the sale in Banco Comercial Portugues.

Other income: includes several charges to enhance balance sheet soundness

This item includes a series of heterogeneous results, as well as different 
allocations in order to continue strengthening the balance sheet.

The net negative figure for the first nine months was EUR 815.9 million
(negative EUR 135.1 million in the same period of 1999) including a general 
charge for the same amount as the capital gains from the sale of shares in
Royal Bank of Scotland (EUR 257.4 million).

Net attributable income: 35.6% rise, meeting targets

Income before taxes was 33.4% higher at EUR 2,817.9 million.  Net consolidated
income (after tax) rose 34.4% to EUR 2,254.1 million and the ROA increased
significantly from 0.91% in 1999 to 1.01%.

Net attributable income (after deducting minority interests) rose 35.6% to
EUR 1,641.8 million (Pta. 273,178 million), which implies a rise of 21.2% in
earnings per share, in line with the Group's plans to achieve 25% EPS growth at
year-end.


Consolidated Group Balance Sheet


                              30.09.00  30.09.99  Variation 2000/1999  31.12.99
Assets               Pta.MM.  Euro MM.  Euro MM.  Amount          (%)  Euro MM.

Cash and central   1,457,943   8,762.4   3,743.1   5,019.3    134.09    6,226.9
 banks
Government debt
 securities        4,083,328  24,541.3  28,014.8  (3,473.5)   (12.40)  29,717.6
Due from banks     6,740,381  40,510.5  31,416.9   9,093.6     28.94   30,226.3
Loans             27,000,676 162,277.3 122,600.9  39,676.5     32.36  127,472.1
Investment 
 securities        9,068,418  54,502.3  33,529.9  20,972.4     62.55   36,037.7
Fixed income       6,673,285  40,107.3  24,340.5  15,766.7     64.78   25,613.8
Equity             2,395,133  14,395.0   9,189.4   5.205.7     56.65   10,423.9
Shares and other
 securities          896,175   5,386.1   3,988.0   1,398.1     35.06    5,526.2
Equity stakes      1,277,082   7,675.4   4,331.4   3,344.0     77.20    4,036.7
Equity stakes in
Group companies      221,876   1,333.5     869.9     463.6     53.29      861.0
Tangible and 
 intangible 
 assets            1,208,470   7,263.1   6,346.8     916.2     14.44    6,302.8
Treasury stock         6,593      39.6      88.6     (48.9)   (55.25)      35.7
Goodwill           1,329,524   7,990.6   2,636.0   5,354.6    203.13    2,542.6
Other assets       3,090,498  23,496.6  15,608.1   7,888.5     50.54   17,040.2
Prior years' results
 from consolidated 
 companies           161,240     969.1     792.1     177.0     22.35      836.7
Total assets      54,966,071 330,352.7 244,777.1  85,575.7     34.96  256,438.5

Liabilities
Due to banks      10,817,217  65,012.8  66,358.5  (1,345.7)    (2.03)  63,252.2
Customer deposits 27,153,934 163,198.4 114,966.3  48,232.1     41.95  121,573.1
Deposits          23,142,673 139,090.3  98,876.8  40,213.5     40.67  104,756.2
REPOS              4,011,261  24,108.2  16,089.6   8,018.6     49.84   16,817.0
Debt securities    5,731,412  34,446.5  19,836.6  14,609,9     73.65   24,084,8
Subordinated debt  1,808,007  10,866.3   7,395.0   3,471.3     46.94    8,098.7
Pension and other 
 allowances        1,121,945   6,743.0   2,961.6   3,781.4    127.68    4,370.2
Minority interests 1,232,263   7,406.0   6,382,0   1,024.0     16.05    6,340.1
Net consolidated 
 income              375,057   2,254.1   1,676.6     577.5     34.44    2,172.0
Capital              375,657   2,257.7   1,833.9     423.8     23.11    1,833.9
Reserves           2,646,136  15,903.6   7,207.8   8,695.8    120.65    6,358.4
Other liabilities  3,704,443  22,264.2  16,158.7   6.105.5     37.78   18,355.0
Total liabilities 54,966,071 330,352.7 244,777.1  85,575.7     34.96  256.438.5
Other managed 
 funds
(off - balance 
 sheet)           14,583,728  87,650.0  74,296.0  13,354,0     17.97   78,475.7
Total managed 
 funds            69,549,799 418,002.7 319,073.0  98,929.7     31.01  334,914.1
Contingent 
 liabilities       4,088,282  24,571.1  21,059.9   3,511.2     16.67   20,895.4
Guarantees         3,578,569  21,507.6  18,794.3   2,713.3     14.44   17,618.2
Documentary credits  509,713   3,063.4   2,265.5     797.9     35.22    3,277.2


Consolidated Group balance sheet

Total funds managed by the Group increased 31.0% to EUR 418,003 million 
(Pia. 69.5 trillion).

A notable factor behind these growth rates is the integration by global 
consolidation of Totta. Credito Predial Portugues, Serfin and Meridional which,
together, contributed EUR 40,500 million (Pia. 6.7 trillion).  These entities
contributed EUR 25,047 million (Pta. 4.2 trillion) to loans and EUR 29,111 
million (Pta.4.8 trillion) to managed funds.  Exchange rate differences also 
had an impact, contributing around 6 percentage points to the increase.

As well the expansion of business, another notable factor is the improved 
balance sheet structure due to the higher growth in the items related to
customer activity.

Lending: strong natural business growth and acquisitions

Net Group loans amounted to EUR 162,277 million (Pta. 27.0 trillion), 32.4% 
higher than in September 1999.  Loans to the non-resident sector registered the
strongest growth, increasing 66.3% to EUR 86,567 million (Pta. 14.4 trillion),
due basically to the new acquisitions.  Excluding these incorporations, growth
in lending to the non-resident sector was 18%, partly due to the appreciation of
the US$ and, as a  result, of Latin American currencies against the euro.

Loans to residents rose 9.4% over the first nine months of 1999.  However, if 
the impact of domestic loan securitization is excluded, loan growth would have 
reached 14%.  Secured loans increased 14.2% (23% without securitization  
operations), reflecting the continued buoyancy of the domestic mortgage market,
loans to Spanish public administrations remained at practically the same level
as in 1999.

The consolidated Group's NPL ratio in Spain was 0.88% at September 30, 2000, 
down from 0.93% at the end of 1999 and 0.98% at September 30, 1999.  The unified
risk management model recently implemented in Retail Banking in Spain will
enable the improvement in credit risk quality to consolidate further.


Loans

                              30.09.00  30.09.99  Variation 2000/1999  31.12.99
                     Pta.MM.  Euro MM.  Euro MM.  Amount          (%)  Euro MM.

Public sector        652,247   3,920.1   3,881.0      39.1      1.01    4,099.6
Private sector    12,797,035  76,911.7  70,313.5   6,598.2      9.38   71,443.4
Secured loans      4,403,800  26,467.4  23,172.6   3,294.7     14.22   23,899.7
Other loans        8,393,235  50,444.4  47,140.9   3,303.5      7.01   47,543.7
Non - resident 
 sector           14,403,474  86,566.6  52,047.1  34,519.5     66.32   55,394.2
Secured loans      3,627,320  21,800.6  13,755.7   8,044.9     58.48   14,508.5
Other loans       10,776,154  64,766.0  38,291.4  26,474.6     69.14   40,885.7
Gross loans       27,852,756 167,398.4 126,241.6  41,156.8     32.60  130,937.2
Less: allowance 
 for loan losses     852,080   5,121.1   3,640.8   1,480.3     40.66    3,465.1
Net loans         27,000,676 162,277.3 122,600.9  39,676.5     32.36  127,472.1
Note: Doubtful
 loans               779,189   4,683.0   2,778.6   1,904.5     68.54    2,999.6
 Public                1,152       6.9      11.7      (4.8)   (40.83)       8.7
 Private sector      144,393     867.8     878.8     (10.9)    (1.24)     850.0
 Non - resident 
  sector             633,644   3,808.3   1,888.1   1,920.2    101.70    2,140.9


The slight increase in NPLs observed during the third quarter in the Spanish
financial system can be considered logical following a prolonged period of
continuous Euro billion decline.  Nevertheless. the Bank remains particularly
wary of any developments in this regard, adjusting its policies and measures in
accordance with prudent criteria.      

The NPL ratio for the consolidated Group was 2.46% at the end of September, 0.49
points higher than December 1999 and 0.57 points more than a year earlier. The
rise was due to the incorporation of the new banks, for, had they been excluded,
the ratio would have declined to 1.86%, below the 1.97% at the end of 1999 and
already meeting the target contemplated in Program ONE (1.90%).

In Latin America, and after the incorporation of the banks acquired in Mexico
and Brazil, the NPL ratio stood at 4.87%.  Excluding these acquisitions, and on
a like-for-like basis, the NPL ratio dropped to 3.73% from 4.05% at the end of
1999.


Risk management*

                              30.09.00  30.09.99  Variation 2000/1999  31.12.99
                     Pta.MM.  Euro MM.  Euro MM.  Amount          (%)  Euro MM.

Non - performing 
 loans               784,846   4,717.0   2,783.2   1,933.8     69.48   2,997.8
NPL ratio (%)                     2.46      1.89      0.57                1.97
Allowances for loan 
 losses              892,175   5,362.0   3,514.3   1,847.7     52.58   3,622.6
NPL coverage                    113.68    126.27    (12.59)             120.84

Non - performing 
 loans**             701,264   4,214.7   2,341.9   1,872.8     79.97   2,593.3
NPL ratio (%)**                   2.20      1.59      0.61                1.71
NPL coverage (%)**              127.22    150.06    (22.84)             139.69

(*)  Excluding country - risk
(**) Excluding NPLs backed by residential mortgages
Note: NPL ratio: Non - performing loans / computable risk

Quarterly non-performing loans evolution

                                    1999                                   2000
Euro MM.        3rd quarter  4th quarter  1st quarter  2nd quarter  3rd quarter

Balance at beginning 
of period           2,686.9      2,783.2      2,997.8      3,031.7      4,493.2
 + Net additions      379.8        586.9        381.3      1,845.8        597.2
 - write - offs       283.5        372.3        347.4        384.3        373.3
Balance at period 
 end                2,783.2      2,997.8      3,031.7      4,493.2      4,717.0


The Group continues to maintain a highly selective loan concession policy in 
Latin America with almost zero lending growth in the region, excluding the new 
acquisitions.  Bank of Spain's criteria regarding doubtful debt classification 
has been extended to all the banks and the level of provisions made, which 
exceeds expected future loss, responds to a conservative coverage policy

NPL coverage was 113.7% for the Group Excluding the acquisitions, it was 124.8%,
above the 120.8% at the end of 1999.

The Group's exposure to country-risk, in accordance with Bank of Spain criteria,
continued to decline and at the end of September, net of provisions,
was US$ 948.5 million, 38.2% lower than a year earlier.  This exposure was
concentrated in emerging countries with the lowest relative risk.

Country-risk

                              30.09.00  30.09.99  Variation 2000/1999  31.12.99
                    Euro MM.   US$ MM.   US$ MM.  Amount          (%)   US$ MM.

Risk (gross)         1,485.2   1,301.8   2,051.6   (749.8)    (36.55)   1,819.6
Allowances             403.1     353.3     517.3   (164.0)    (31.70)     492.3
Risk (net)           1,082.1     948.5   1,534.3   (585.8)    (38.18)   1,327.3
Note:
 Country-risk relating to fixed income
 Investment securities 322.4     282.6     646.2   (363.6)    (56.27)     468.8


Foreclosed assets

                                      January - September 2000   Jan - Sep. 99
                                      Pta. MM.        Euro MM.        Euro MM.

Balance at beginning of period        162,811           978.5         1,260.5
 + Foreclosures                        76,348           458.9           217.9
 - Sales (book value)                  63,249           380.1           475.3
Gross foreclosed assets               175,910         1,057.2         1,003.1
Allowance established                  84,354           507.0           370.2
Coverage (%)*                                           47.95           36.90
Net foreclosed assets                  91,556           550.3           632.9

(*) Allowance established / Gross foreclosed assets


Foreclosed assets: a further reduction in the third quarter

The continued active policy of selling foreclosed assets, while increasing
provisions, reduced the net balance by EUR 82.6 million (-13.1%) during the 12
months to September 30, 2000.  The coverage level was 48.0%, a level regarded as
adequate given the market value of the assets, and well above the 36.9% of
September 30, 1999.

The Group foreclosed on EUR 97.3 million of assets in the third quarter and 
sold EUR 107.3 million, recovering the declining trend of the last seven 
quarters, only broken in the second quarter because of the incorporation of new
entities.



Customer funds: growth in all items

The volume of funds obtained by the Group, both on- and off-balance sheet,
continued to grow very favorably in Spain and Latin America.  As pointed out in
other parts of this report, the incorporation of new entitles and the evolution
of exchange rates has had a notable impact on the Group's rates of growth. 
Total customer funds amounted to EUR 296,161 million (Pta. 49.3 trillion) as of
September 30, 2000, EUR 79,667 million (+36.8%) more than a year earlier. 
Growth was 6.2% in the third quarter.  Excluding the new incorporations, which
mainly affected the balances with the non-resident sector, year-on-year growth
was 23.4% (+ EUR 50,556 million).

Total on-balance sheet funds were 46.6% higher year-on-year  (EUR  66,313
million or Pta. 11.0 trillion). This growth came both from sight deposits
with  the resident sector (up 14.3%), which are not affected by the  new
acquisitions, as well as the rise in the non-resident sector (+72.5%)  and
the  placement  of  various issues and commercial paper (+66.4%).  Senior
long-term  debt  issues in the first nine months amounted  to  EUR  4,025
million  and  short-term  issues,  net of  amortizations,  to  EUR  2,392
million, including Euro commercial paper and US$ commercial paper.

In  the  resident sector, all items registered year-on-year growth,  with
sight deposits up 11.6% and time deposits 12.1%, continuing the positive
trend.  Growth was spurred by higher interest rates and the low yield  of
mutual funds.


Customer funds

                          30.09.00   30.09.99   Variation 2000/1999    31.12.99
                  Pta. MM.  Euro MM.   Euro MM.    Amount      (%)     Euro MM.

Public sector      376,492    2,262.8     1,586.3      676.5    42.65   2,151.5
Private sector  11,329,811   68,093.5    59,552.4    8,541.1    14.34  62,458.6
 Demand deposits 3,370,326   20,256.1    17,957.6    2,298.5    12.80  19,127.0
 Saving accounts 2,286,325   13,741,1    12,516.5    1,224.6     9.78  13,008.3
 Time deposits   3,535,495   21,248.8    18,962.8    2,285.9    12.05  19,206.2
 REPOS           2,122,787   12,758.2    10,049.7    2,708.5    26.95  10,971.4
 Other accounts     14,878       89.4        65.7       23.7    36.01     145.8
Non-resident
 sector         15,447,631   92,842.1    53,827.6   39,014.5    72.48  56,963.1
 Deposits       13,584,791   81,646.2    47,891.9   33,754.4    70.48  51,267.1
 REPOS.          1,862,840   11,195.9     5,935.7    5,260.2    88.62   5,695.9

Total customer
 deposits       27,153,934  163,198.4   114,966.3   48,232.1    41.95 121,573.1

Debt securities  5,731,412   34,446.5    19,836.6   14,609.9    73.65  24,084.8
Subordinated
 debt            1,808,007   10,866.3     7,395.0    3,471.3    46.94   8,098.7

Total customer
 funds on
 balance sheet  34,693,353  208,511.3   142,198.0   66,313.3    46.63 153,756.6

Total managed
 funds
 (off-balance
  sheet)        14,583,728   87,650.0    74,296.0   13,354.0    17.97  78,475.7

Mutual funds    10,525,740   63,261.0    57,805.8    5,455.2     9.44  59,840.3
 Spain           8,446,065   50,761.9    50,302.8      459.1     0.91  51,365.7
 Abroad          2,079,675   12,499.1     7,503.0    4,996.1    66.59   8,474.7

Pension funds    2,775,139   16,678.9    11,253.2    5,425.8    48.22  13,071.6
 Spain             779,672    4,685.9     4,246.9      439.0    10.34   4,537.2
    Individuals    662,077    3,979.2     3,753.5      225.7     6.01   3,971.6
 Abroad          1,995,467   11,993.0     7,006.2    4,986.8    71.18   8,534.4
Managed
 portfolios      1,282,849    7,710.1     5,237.0    2,473.0    47.22   5,563.7
 Spain             397,042    2,386.3     2,838.0     (451.7)  (15.92)  2,922.8
 Abroad            885,807    5,323.8     2,399.0    2,924.8   121.91   2,641.0

Total customer
 funds          49,277,081  296,161.2   216,493.9   79,667.3    36.80 232,232.3

 
Of  note  in  mutual funds was the good performance in Latin America,  as
growth  in Spain was very limited because of the behaviour of the market.
The  Group, however, continued to be the leader in Spain, with  a  market
share of more than 24% at the end of September.

Pension  funds increased 48.2% to EUR 16,679 million (Pta. 2.8 trillion),
of  which  over two thirds corresponded to fund management  companies  in
Latin  America,  a  market  where the Group is  developing  an  expansion
strategy  both  through natural business growth as well as  acquisitions.
The  Group  already  has  a  significant presence  in  Argentina,  Chile,
Colombia, Mexico, Peru and Uruguay.

The  Group's  activity  in  Spain continues  to  be  focused  largely  on
individual pension funds, with a market share of more than 20%.

Equities portfolio: growth through investments in Group and associated
companies

The  balance of the equities portfolio rose by EUR 5,206 million (+56.7%)
in  the  year to September 30, 2000. Most of this increase took place  in
the  second quarter as a result of the higher stakes in allied  banks  in
Europe, principally Societe Generale and Royal Bank of Scotland,  and  in
Metropolitan Life.

Goodwill: increase due to new acquisitions

Goodwill  at  September 30, 2000 stood at EUR 7,991  million  (Pta. 1.3  
trillion),   including   the  goodwill   arising  from   the acquisitions   made
during  the  period.  The  balance  pending amortization was EUR 5,448 million
higher than at the end of  1999. The  stakes where the main increases took place
relate to  :  Totta Group  (EUR  1,830  million).  Serfin Group (1,237 
million),  Banco Meridional  (EUR 846 million), Patagon.com (EUR 607  million) 
and Royal Bank of Scotland (EUR 538 million).

The  goodwill  figures  were established  after  carrying  out  the procedures 
necessary to verify the asset quality of  the  entities acquired,  applying the
Group's strict criteria.  In addition,  part of  the  increase  was  due to the
application  of  Bank  of  Spain criteria,  whereby  the shares received in the
Portugal  and  Royal Bank  of  Scotland  operations and the  purchase  of  the 
minority shares  of  Banco  Rio  de  la Plata were  recorded  at  the  share
exchange's market value.  The difference between this value and  the issue 
price  of SCH shares, amounting to EUR 3,738  million  (Pta. 622,018  million)
was credited to a voluntary anticipated  reserves account which forms part of
shareholders' equity.


Consolidated goodwill
                                    30.09.00      Net additions     31.12.99
                        Pta. MM.    Euro MM.           Euro MM.     Euro MM.

Banesto                  86,639        520.7              (6.7)         527.4
Industrial equities      42,933        258.0              55.7          202.3
Banks in Europe         535,303      3,217.2           2,455.5          761.8
Latin America           546,602      3,285.1           2,269.5        1,015.6
Other                   118,047        709.5             673.9           35.5

Total                 1,329,524      7,990.6           5,448.0        2,542.6



Capital accounts and Shareholders' equity

The  Group's  main capital management objective is to  maintain  an adequate
level of solvency and a sufficiently high capital  surplus to  be  able  to
accommodate the growth of the balance  sheet,  and allow  the  realization of
new projects.  In addition,  it  aims  to optimize  the  cost of these funds and
contribute  to  an  adequate return  to shareholders.  With this in mind, Banco
Santander Central Hispano  is gradually adapting the structure of its capital
through the use of the most appropriate financial instruments.

The  Group  has  been  particularly active  this  year  in  capital increases, 
used  to  finance  investments  made.  The  operations carried out were:

First quarter:

- The issue, on March 4, of 151,846,636 new ordinary shares of EUR 0.5 nominal
value each and an issue premium of EUR 2.07 for each one, which were fully
subscribed and disbursed through shares representing all the capital of Foggia
SGPS, holder of the direct and indirect stakes of Mr. Antonio de Sommer
Champalimaud in the Mundial Confianca Group.

- The  issue, on March 7, of 179,615,243 new ordinary shares of  EUR 0.5 
nominal value each and an issue premium of EUR 2.07 for each one, which were
fully subscribed and disbursed through shares  of Royal  Bank  of  Scotland,
within the framework of  the  latter's takeover of NatWest.

Shareholder's equity and capital ratios

                       30.09.00    30.09.99   Variation 2000/1999   31.12.99
            Pta MM.    Euro MW     Euro MM.   Amount      (%)       Euro MM.

Subscribed
 capital     
 stock         375,657     2,257.7     1,833.9     423.8    23.11   1,833.9
Paid -
 in 
 surplus     1,320,732     7,937.8     3,865.7   4,072.1   105.34   3,220.0

Reserves       902,009     5,421.2     2,086.5   3,334.7   159.82   1,592.6

Reserves
 at 
 con-
 solidated 
 companies
 (net)         262,155     1,575.6       463.5   1,112.1   239.93     709.0

Total
 primary
 capital     2,860,553    17,192.3     8,249.6   8,942.7   108.40    7,355.5
   
Net
 attributable
 income        273,178     1,641.8     1,211.1     430.7    35.56    1,575.1

Treasury
 stock          (6,593)      (39.6)      (88.6)     48.9   (55.25)     (35.7)

Distributed
 interim
 dividend      (49,670)     (298.5)     (201.7)    (96.8)   47.98     (403.5)
Share-
 holders'
 equity
 at
 period
 end         3,077,468      18,496.0   9,170.4   9,325.5   101.69    8,491.5
Interim
 dividend
 pending
 distrib-
 ution               -             -         -         -         -    (201.7)
Final dividend       -             -         -         -         -    (263.5)
Shareholders'
 equity after
 allocation
 of period
 end
 results    3,077,468      18,496.0    9,170.4   9,325.5    101.69   8,026.2
Preferred
 shares     1,090,812       6,555.9    5,193.5   1,362.4     26.23   5,334.7
Minority
 interests    243,330       1,462.4    1,654.1    (191.7)   (11.59)  1,602.3
Shareholders'
 equity
 & minority
 in-
 terests    4,411,610      26,514.3   16,018.0  10,496.3     65.53  14.963.3
Basic
 capital
 (Tier 1)   2,909,331      17,485,41  12,716.0   4,769.5     37.51  12,456.1
Supple-
 mentary
 Capital    1,069,964        6,430.6   5,052.7   1,377.9     27.27   5,852.8
Eligible
 capital    3,979,295       23,916.0  17,768.7   6,147,4     34.60  18,308.9
Risk
 weighted
 assets
 (BIS
  crit-
 eria)     31,607,289      189,963.6 147,218.4  42,745.3     29.04  152,172.4
   BIS ratio                   12.59    12.07       0.52                12.03
     Tier 1                     9.20     8.64       0.57                 8.19
Excess
 (amount)   1,450,712        8,719.0   5,991.2   2,727.8      45.53   6,135.1


Second quarter:

- The issue, on April 7, of 101,045,614 new ordinary shares of EUR 0.5 nominal
value each and an issue premium of EUR 3.41 for each one, fully subscribed and
disbursed by 38,921,776 shares of Banco Totta.
     
- The issue, on June 8, of 6,736,590 new ordinary shares of EUR 0.5 nominal
value each and an issue premium of EUR 1.79 for each one, in order to meet the
special remuneration agreed within the Protocol Employment Agreement with trade
unions on March 3, 1999.

Third quarter:

- The issue, on July 11, of 300,000,000 new ordinary shares of  EUR 0.5  nominal
value each, of which 240 million had an issue premium of  EUR  10.5 each and the
rest (60 million) an issue  premium  of EUR 10.75 each.

- The issue, on July 20, of 63,450,006 new ordinary shares of EUR 0.5 nominal
value each and an issue premium of EUR 1.75 for each one, fully subscribed and
disbursed by 88,830,009 shares of Banco Rio de la Plata.

- The issue, on August 10, of 45,000,000 new shares of EUR 0.5 nominal value
each and an issue premium of EUR 10.75 for each one, in order to meet the option
exercised by the banks that participated in the placement of the aforementioned
300 million shares (green shoe).

These operations increased share capital by 23% in the first nine months to EUR
423.8 million (Pta. 70,522 million).  The issue premium reserves rose by EUR
4,718 million (Pta. 784,971 million), to which must be added EUR 3,796 million
of 'voluntary anticipated reserves'.

In addition, and as part of the policy of active capital accounts management,
the Group launched three subordinated debt issues in the first nine months
amounting to EUR 1,723 million (the last in the third quarter of US$ 1,000
million maturing in 2010).  Also during the period, outstanding issues amounting
to EUR 209 million were redeemed and a further EUR 2,321 million (Pta. 386,099
million) was eliminated from the balance sheet through the securitization of
mortgage and non-mortgage assets.

At the end of September, eligible capital, in accordance with Bank of
International Settlements (BIS) criteria, amounted to EUR 23,916 million (Pta.
4.0 trillion).  The surplus over the minimum requirement amounted to EUR 8,719
million (Pta. 1.5 trillion).  The BIS ratio was 12.6%, in line with the Group's
target, and the Tier 1 ratio was 9.2%.

Lastly, in October, US$ 300 million of perpetual preference shares were issued
in the US market.

Rating agencies

During the first quarter 2000, Moody's improved from stable to positive the
outlook on the long-term deposit and financial strength ratings of Banco
Santander Central Hispano and the subsidiaries Banesto and Banco Financiero
(HBF).  During the second quarter, Standard & Poor's confirmed its ratings of
Banco Santander Central Hispano and its subsidiaries, improving the outlook for
negative to stable.

Ratings


Rating agency                            Long term    Short term      Financial
                                                                      strength

Moody's                                      Aa3           P1               B
Standard & Poor's                             A+           A1      
Fitch-I8CA                                   AA-          F1+               B
Bankwatch                                     AA        TBW-1


The complete Financial Results report for the First Nine Months 2000 is also
available at our web site: http://www.bsch.es/ir.html

BSCH Investor Relations Department

Isabel Garcia e-mail: [e-mail] Tlf: ([phone]
Alex de Laiglesia e-mail: [e-mail] Tlf: ([phone]
Ana Wang e-mail: [e-mail] Tlf: ([phone]
Ubaldo Sanchez Santiago e-mail: [e-mail] Tlf: ([phone]