AGM Statement

Banco Santander Central Hispano SA
20 June 2005



Annual Shareholders Meeting of Santander


Emilio Botin: 'Attributable profit in 2005 will be at least 5 billion euros'

All the proposed resolutions included in the Agenda of the meeting were passed


Extraordinary income will have no impact on profit and will be allocated to a
special fund for future provisions


The Santander chairman announced that dividends will continue to increase. The
first interim payment for 2005, approved by the Board will be 12% above last
year's


'We will fully meet the goals we have set for Abbey. Our plan over three years
is to become the best bank in Britain in customer attention and in efficiency.'


Madrid, 18 June 2005 - Emilio Botin, presiding over today's Annual General
Shareholders Meeting of Santander which approved the 2004 accounts, said that in
2005 'our attributable income will be at least 5 billion euros...a new record
for the Group and a record for a Spanish company.'  He added that extraordinary
income will have no impact on profit, as it will be allocated to a special fund
for future provisions.


Botin said: 'we will continue to increase our dividend,' noting that the first
2005 interim payment, already approved by the Board, will represent a rise
of12%.


DISCLAIMER

The projection of results has been prepared in accordance with accounting
practices applied by the Group for the present fiscal year and assumes no
relevant change in the economic environment.


'Santander is enjoying the best moment in its history,' said Botin. 'We have an
unbeatable business model and one that can be exported, a model that enables us
to generate recurring revenues with practically flat costs and in very diverse
markets.' He recalled that in the past 10 years, the average total return to
shareholders has reached 370%, well above the 280% achieved by the Ibex-35
index, and listed the factors that have helped Santander become a 'winning bank
in efficiency, in commercial activity and above all in profitability.'


'We are the leading bank in the Eurozone by market value, and also in Latin
America'.

'With the purchase of Abbey we have diversified further and incorporated a rich
new vein of value creation for our shareholders'.

'We have a valuable brand that symbolizes 150 years of growth and 
profitability'.

'We have a first-rate Corporate Governance, founded on transparency and rigorous
accounting standards, and an exceptional Board'.

'We have developed a unique worldwide alliance with Universities and institutes
of higher education in the countries where we operate'.

'We have the finest management teams and an excellent customer base'.


Reviewing 2004, when Santander recorded a net attributable profit of 3,136
million euros (+21%), Botin said that 'first quarter figures continue to show
high growth activity in all our markets,' with an increase in attributable
income of 38.5% to 1,185 million euros, a quarterly record (+20.1% excluding
Abbey). 'These are quality results, based on increased commercial activity in
all our business areas. Extraordinary results from the sale of our remaining
stake in The Royal Bank of Scotland last January, totalling 717 million euros,
will have no impact on profit as they are being allocated to a special fund for
future contingencies.' Botin recalled that Retail Banking accounts for 80% of
Group business.


The Chairman highlighted the revenue generating capacity of Retail Banking
Spain, the division that contributes most to Group results. 'This is an area
that quarter after quarter presents exemplary results, with strong growth in
revenue (at a rate of 7.4% in 2004) and with flat costs.' He added that both the
Santander and Banesto branch networks have focussed on higher growth segments -
mortgages, SME lending, cards and insurance, with innovative products,
anticipating the competition and deploying the most advanced technology.


Referring to Spain's banking sector, he said it is, 'among the most efficient,
profitable and financially sound in the world. Spain is a leader in efficiency,
ahead even of the United States and the United Kingdom, and is also among the
best in profitability and solvency. This is due to three factors: a strong
competitive environment, excellent regulation, and economic stability.'


On the UK market, Botin said the Abbey acquisition had provided a giant leap
forward for the Group. 'Abbey is a purchase that transforms the bank,
positioning us in the largest market in Europe, diversifying our risk profile
and opening up new growth options...We have been managing Abbey for six months
and taken some very important steps.' In this regard, he said progress in cost
cutting has been ahead of schedule and that steps have also been taken to
stabilize revenues. 'I can categorically state that we will fully meet the goals
we set for Abbey. Our plan over three years is to become the best bank in
Britain in customer attention and in efficiency,' he said.


Turning to Latin America, which last year achieved 6% growth, the highest in the
past 30 years, he placed special emphasis on Brazil's role as an economic
engine, especially in the south of the region. 'Brazil is a key driver of growth
for the Bank,' he said. 'I share the vision of those that project that the
Brazilian economy will be larger than that of of France and Italy in 2030, and
it is therefore one of our central priorities for the future.' He also pointed
to the strong commercial growth for the Bank in Chile, Mexico and other
countries of the region. 'In Mexico we are closing in on our market share goal
of 20%, while in Chile we are spearheading the process of banking penetration.'


He highlighted the strong growth potential of Santander Consumer, which '
increased its contribution to the Group by 45% in 2004, and which in 2005 has
been increasing profit at even higher rates. Right now it is a European leader
in consumer banking and vehicle finance thanks to its presence in 11 countries
of this continent.'


Botin referred to Santander's corporate governance, affirming 'We are in the
vanguard in this aspect. No other company in our country has introduced a series
of corporate governance measures as complete as Santander: total elimination of
anti-takeover statutes, maximum transparency in executive compensation,
elimination of the requirement to hold 100 shares in order to take part in
shareholder meetings, self-evaluation of the Board, directed by specialist
consultants, a training programme for directors, or the live Webcasts of the
shareholders meetings and electronic voting, among others.'


He resumed the Bank's corporate governance model in four key concepts:


Self regulation. 'Every company is different and has different requirements. An
excess of regulation should be avoided'.

Transparency. 'Transparency is fundamental to self-regulation.'

Rigorous accounting standards. 'Confidence cannot exist, either internally or
externally, if the accounts are not clear'.

An exceptional board. 'A Board which has no voting blocs, taking collective
decisions, with independence of criteria, great awareness and business vision,
and which accounts for a significant portion of the Group's share capital'.


The Santander Chairman defended the concept of Corporate Social Responsibility,
to which the Bank allocated 84.4 million euros last year, 2.7% of attributable
income. 'At Santander we do not forget that the best CSR policy is that which
achieves a good return for our shareholders over the long term. But this is
perfectly compatible with our emphasis on investments with a significant social
component. Based on this premise, our CSR policy incorporates the same
requirements of efficiency demanded for any investment,' he added.


Turning to the Spanish economy he said it 'continues to be an exception in the
European context. Our economy is growing vigorously, founded on domestic demand.
The government's economic policy has been focused prudently, respecting
budgetary balance, which in my opinion will help ensure positive economic
progress in the future.'


His vision of Europe, he said, was that it should 'face without delay the
reforms needed to make its economy more efficient...The euro, which has been
introduced with great success, should play a fundamental role in the future. I
do not believe that the negative vote among some countries on the European
Constitution has any significance for the euro, and rather reflects a lack of
confidence in the economy. Globalization, relocation of industries and jobs,
rapid technological change and changes we have witnessed in the world political
and economic structure are causes of economic uncertainty for European
countries. I think, however, that these issues should be a stimulus for European
integration and not ones discouraging unity among our countries.'



Finally, the Santander Chairman reviewed the share's stock market performance. 
'Our share has proved its strength this year. We have increased our shareholder
base to 2.6 million, and investors all over the world hold Santander shares.'


Botin said that 'since the bid for Abbey was announced last July the Santander
share has risen 20%. At yesterday's closing price it has achieved a dividend
yield of 3.5% and our market value is 59,666 million euros, positioning us as
the 9th largest bank in the world.' But he added that 'the share price still
does not reflect the full potential for value creation....Our performance is
founded on a solid base and our future potential is enormous. We are and will
continue to be a winning bank,' he said.


All the proposed resolutions included in the Agenda of the meeting were passed.


                      This information is provided by RNS
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