Final Results

Banco Santander Central Hispano SA
22 January 2002


                      SANTANDER CENTRAL HISPANO NET
                  ATTRIBUTABLE INCOME ROSE 10.1% IN 2002
                         TO 2,486.3 MILLION EUROS

MADRID, January 22, 2002 - Santander Central Hispano group net attributable
income rose 10.1% in 2002 to 2,486.3 million euros. Earnings per share rose to
0.5369 euros from 0.5447.

In the context of the marked slowdown in world economic growth, as well as
increased uncertainty, the Group has focused on strengthening its capital base,
prudent credit risk management and permanent increases in profitability.

The results are notable for strict cost control, an intensification of the
policy on provisioning - with a special reserve of 1,287 million euros for
Argentina that covers the entire book value and outstanding goodwill of Banco
Rio - as well as loan loss provisions and anticipated goodwill amortization.

A 23.7% increase in net interest income and 15.2% in fees and commissions
underline the Group's growing capacity for generating recurring income. Trading
gains declined 2.4%, mainly reflecting the writing down of the value of the
Argentine portfolio. This impact was offset by favourable performance from
portfolios in Spain and in the other foreign subsidiaries. Net operating
revenues rose 19.7% to 15,563.6 million euros, with strong performance in
recurring items - which give great stability to the results - and new
businesses.

An increase of 15.1% in general administrative and personnel expenses
essentially reflected recent acquisitions and new projects. Compared to 2000,
and on a comparable basis, costs fell 6.8% in real terms, with declines across
all business areas with a consequent improvement in efficiency ratios.
Especially encouraging was retail banking in Spain, which for the first time
went below 50% and global wholesale banking which was below 40%.
 
Group efficiency ratio stood at 53.98%, an improvement of 213 basis points over
the figure for 2000, with substantial margin remaining for cost reduction
through branch network integration, redimensioning corporate centres and
improving efficiency in recently incorporated banks.
  
Net operating income rose 26.8% to 5,944.5 million euros, a reflection of the
Group's efficient management of revenues and expenditure. A total of 5,750
million euros was allocated to provisions, writeoffs, goodwill amortization and
the creation of a special reserve announced in October, which has been increased
to 1,287 million euros to cover the investment in Banco Rio. This comes to 1,187
million euros or 98.5% of its capital, including the 18.5% recently acquired in
line with prior commitments and paid for with Santander Central Hispano shares
already in circulation.

Pre-tax income rose 12.3% to 4,237.3 million euros, and net attributable income
rose 10.1% to 2,486.3 million. Retail banking accounted for 64% of the total,
global wholesale banking for 9%, asset management and private banking for 8%,
and strategic alliances plus the industrial group for 18%.

Asset management and private banking closed the year with a net attributable
income of 386.2 million, an increase of 33.3% over the previous year. The result
is especially positive when taking into account the generally unstable world
economic environment. Improved efficiency, sales drive through the branch
network and geographical diversification have enabled the Group to well
outperform its competitors.

Global wholesale banking recorded a net attributable income of 392.5 million
euros, a rise of 15.6%.

Net attributable income in Latin America came to US$1,510 million (1,688.2
million euros), thus attaining the goal of US$1.5 billion for the year. In
Brazil, the Group has consolidated its 3rd place ranking among private banks,
and recorded net attributable income of 664 million euros, of which 474 million
correspond to Banespa which has amply surpassed expectations at the time of its
acquisition.
 
In Mexico, a key strategic market, Santander Central Hispano is also the third
ranking financial group. Net attributable income came to 583 million euros, of
which 361 million correspond to Banca Serfin and 222 million to Santander
Mexicano.

Banesto performed in line with objectives set for the year, with pre-tax income
rising 23.1% to 520.8 million euros, based on increased business volume and
successful management of net interest margins.
 
In all, the Group has 39 million customers, with 23 million in Latin America,
12.2 million in Spain, 2 million in Germany, 1.8 million in Portugal and 500,000
in the rest of Europe. 
 

BALANCE SHEET STRENGTH AND QUALITY 

In addition to its long-established strict policy on provisioning and credit
risk management, the Group last year strengthened its capital base and increased
BIS ratio from 10.86% in December 2000 to 12.04% at the end of 2001.

At the same time, it improved its composition, increasing Tier I capital from
7.64% to 8.01%. Eligible capital of Santander Central Hispano came to 24,597
million euros with a surplus over minimum required levels of 8,252 million
euros.
 
Customer business grew during the year with a 9.7% increase in customer funds
that tripled the rise in loans (2.6%). Off balance sheet, mutual funds increased
5.4% over December 2000 and pension funds rose 14.9%, thereby consolidating the
Group's market leadership in mutual funds of 26% in Spain and around 20% in
personal pension plans.

Group non-performing loan ratio was 1.86% (0.88% in Spain and 3.32% in Latin
America) with a provision cover rate of 143%.
 
Dividends

On July 31 and October 30 two interim dividends for 2001 were paid out for
0.0751 euros a share each. Following approval at the annual shareholders
meeting, a final dividend of 0.0631 euros will be paid, as a result of which
total 2001 dividend will be 5.5% higher than in 2000 for a payout of 53.5%.
   


Consolidated income statement        Jan-Dic 2001    Jan-Dic 2000    01/00 
                                     mln euros       mln euros         %
        
NET INTEREST REVENUE                   10,256.8        8,289.6        23.73
    
Net fees and commissions                4,621.7        4,013.0        15.17    

BASIC REVENUE                          14,878.5       12,302.6        20.94
    
Trading gains                             685.1          702.1        (2.42)
   
Net operating revenues                 15,563.6       13,004.7        19.68
    
Personnel and general expenses         (8,401.0)      (7,296.4)       15.14
    
a) Personnel                           (5,258.3)      (4,451.0)       18.14
    
b) General expenses                    (3,142.7)      (2,845.4)       10.45
    
Depreciation                           (1,218.2)      (1,019.7)       19.45
    
NET OPERATING INCOME                    5,944.5        4,688.6        26.79
    
Income from equity accounted holdings     521.9          754.3       (30.81)
  
Earnings from Group transactions        1,169.4          384.8       203.87
   
Net provisions for loan losses         (1,586.0)      (1,048.3)       51.29
    
Goodwill amortization                  (1,873.0)        (598.5)      212.92
   
Other income                               60.5         (406.8)         -
        
Income before taxes                     4,237.3        3,774.0        12.28
    
Corporate Tax                            (910.4)        (714.9)       27.35
    
Net consolidated income                 3,326.9        3,059.1         8.75
     
Minority interests                        340.3          358.5        (5.06)
   
Dividend - preferred shareholders         500.3          442.5        13.05
    
NET ATTRIBUTABLE INCOME                 2,486.3        2,258.1        10.10
    

Customer funds 
                                      31.12.01        31.12.00       Variation  
                                      mln euros       mln euros          %
          
Public sector                         14,469.9         2,358.6          513.36
     
Private sector                        71,106.1        68,458.5            3.87
       
  Demand deposits                     21,252.2        20,236.2            5.02
       
  Savings accounts                    15,472.4        13,734.3           12.65
      
  Time deposits                       18,370.7        20,933.3          (12.24)
    
  REPOS                               15,928.3        13,407.8           18.80
      
  Other accounts                          82.6           146.9          (43.77)
    
Non-resident sector                   95,169.1        98,737.3           (3.61)
     
  Deposits                            84,901.4        88,305.3           (3.85)
     
  REPOS                               10,267.7        10,432.0           (1.58)
     
Total customer deposits              180,742.1       169,554.5            6.60
       
Debt securities                       41,609.1        34,165.9           21.79
      
Subordinated debt                     12,996.0        10,729.9           21.12
      
Total customer funds on-balance
sheet                                235,347.2       214,450.3            9.74
       
Total managed funds (off-balance
sheet)                                95,065.2        88,648.2            7.24
       
 Mutual funds                         68,535.0        65,011.9            5.42
       
  Spain                               49,487.6        49,241.6            0.50
       
  Abroad                              19,047.5        15,770.4           20.78
      
 Pension funds                        18,841.9        16,397.3           14.91
      
  Spain                                5,443.8         4,940.3           10.19
      
   Individuals                         4,698.0         4,222.7           11.26
      
  Abroad                              13,398.1        11,457.0           16.94
      
 Managed portfolios                    7,688.3         7,238.9            6.21
       
  Spain                                2,250.7         2,242.7            0.36
       
  Abroad                               5,437.6         4,996.2            8.83
       
Total customer funds on-balance
sheet                                330,412.4       303,098.5            9.01
       


Loans 
                                      31.12.01        31.12.00       Variation  
                                      mln euros       mln euros          %
          
Public sector                           4,249.7         4,148.9           2.43
       
Private sector                         84,721.7        81,677.6           3.73
       
  Secured loans                        33,028.3        27,652.7          19.44
      
  Other loans                          51,693.4        54,024.9          (4.32)
     
Non-resident sector                    90,138.0        88,730.0           1.59
       
  Secured loans                        24,301.2        22,898.5           6.13
       
  Other loans                          65,836.8        65,831.5           0.01
       
Gross loans                           179,109.4       174,556.4           2.61
       
Less: allowance for loan losses         5,287.3         5,172.2           2.23
       
Net loans                             173,822.0       169,384.2           2.62
       
Note: doubtful loans                    3,894.5         4,517.9         (13.80)
    
  Public sector                             4.5             3.7          19.89
      
  Private sector                          931.0           855.5           8.82
       
  Non-resident sector                   2,959.0         3,658.7         (19.12)
    


Shareholders' equity
and capital ratios 
                                      31.12.01        31.12.00       Variation  
                                      mln euros       mln euros          %

Subscribed capital stock                2,329.7         2,280.1           2.17
       
Paid-in surplus                         8,651.0         8,078.2           7.09
       
Reserves                                5,466.4         5,437.1           0.54
       
Reserves at consolidated companies
(net)                                   1,545.9         1,041.6          48.41
      
Total primary capital                  17,993.0        16,837.0           6.87
       
Net attributable income                 2,486.3         2,258.1          10.10
      
Treasury stock                            (21.4)          (56.1)        (61.87)
    
Distributed interim dividend             (685.4)         (597.0)         14.80
      
Shareholders' equity at period end     19,772.5        18,442.1           7.21
       
Interim dividend pending distribution    (350.0)         (301.5)         16.11
      
Final dividend                           (294.0)         (342.7)        (14.20)
    
Shareholders' equity after
Allocation of period end               19,128.4        17,797.9           7.48
results
                                                                                                             
Preferred shares                        6,879.0         6,644.2           3.53
       
Minority interests                      1,394.9         2,488.6         (43.95)
    
Shareholders' equity & minority
interests                              27,402.4        26,930.6           1.75
       
Basic Capital (Tier 1)                 17,257.9        15,207.1          13.49
      
Supplementary Capital                   8,824.1         6,413.8          37.58
      
Eligible capital                       26,082.0        21,620.9          20.63
      
Risk-weighted assets (BIS
criteria)                             204,445.5       199,062.7           2.70
       
BIS ratio*                                12.76           10.86
                            
  Tier 1                                   8.44            7.64
                             
Excess (amount)                         9,726.4         5,695.9          70.76
      
                                                                                                                      
* BIS ratios take account of amortization of 900 million euros in preferred
  stock. 
 

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