Interim Results

BANCO SANTANDER CENTRAL HISPANO SA

                  All results in line with Program ONE objectives

                     BSCH FIRST HALF NET ATTRIBUTABLE INCOME
                        ROSE 16.1% TO PTAS 133.58 BILLION

Madrid, July 27, 1999 - Banco Santander Central Hispano first half 1999 results
fully met objectives set in Program ONE, reflecting both strong business
activity and also progress in implementing the merger. Profitability, efficiency
and business momentum were in line with anticipated trends.

All business areas accelerated growth and profitability, and increased their
contribution to results, as reflected by the following highlights:

* Group net attributable income was Ptas. 133,580 million  (+16.14%). The
  second quarter figure -Ptas. 72,293 million - was higher than in any quarter
  last year and 18% above the first quarter of 1998.

* All margins grew strongly. Operating margin rose 17% and business margin by
  21%. This was achieved on the basis of increased weighting of core and
  recurring income business, applying rigorous risk control.

* Cost control continued to bear fruit. Overall personnel and administrative
  costs rose just 2% in the 6 months and were flat in real terms.

* Efficiency ratio again showed strong improvement, standing at 57.1% (4 points
  below the first half of 1998, and already at the target level set for 2000).

* Asset quality also showed positive trends. NPL ratio was 1.8% (2.02% in June
  1998) and provision cover stood at 122%.

* ROE was 18.07%, more than two points above the figure for the full 1998 year,
  and on track for the 19-20% set as a target for 2000 in Program ONE.

* The surplus of Group equity was Ptas. 1 trillion, and BIS ratio 12.4%.

* The quality of BSCH results clearly improved as a result of strong margins.
  the relevance of recurring income and conservative provisioning. In  this
  respect, the capital gain from the sale of a shareholding in Banco Comercial
  Portugues was assigned entirely to a general provision.

* Total Group managed funds now exceed Ptas. 55 trillion. Loans rose 15.8%,
deposits by 6.5%, mutual funds 14% and pension funds 27%.


PROGRAM ONE: MEETING OBJECTIVES

Net attributable income of BSCH came to Ptas. 133,580 million (803 million
euros) in the first half of 1999, a rise of 16.1 % over the same period last
year. More than half the profit set as a target for 1999 under Program ONE
(Ptas. 260 bililion) has thus been achieved in the first half of the year.

The period featured strong business activity across the board. The profit
increase itself reflects both higher income and also success in cost control,
where substantial margin remains for improvement as a result of plans being
implemented post-merger.

QUALITY RESULTS

The high quality is reflected in the fact that retail banking accounted for
90.6% of total operating income and that BSCH devoted the entire Ptas. 81
billion capital gain from the sale of its shareholding in Banco Comercial
Portugues to provisions.

The increase in recurring item income from banking operations, with an 11.3%
rise in net interest income and 15.4% in net fees and commissions, made possible
a 12.6% rise in basic margin and demonstrated the Group's capacity to generate
income from core banking activities.

Retail banking in Spain was especially positive, with a 15% rise in loans and
10.2% in managed customer funds. There were significant increases in commissions
from banking services, with credit cards accounting for 50% of this income.

BSCH recorded the highest growth of any Spanish bank in mutual and pension
funds, doubling the average, and had the fastest growth in market share. The
ratio of net Interest Income to Average Total Assets was 2.7% compared with 2.5%
a year earlier.

Income from financial operations came to Ptas. 23,756 million (142.8 million
euros). This was a decline compared with the same period last year, reflecting
the rigorous risk management necessary in this type of operation.

COST CONTROL AND EFFICIENCY GAINS

The level of general and administrative expenses rose 2.1% in nominal terms, the
same as inflation, the clear result of cost control and containment policies in
place. This is especially significant when taking into account group expansion
through new acquisitions made since the end of June 1998.

Integration of Group operations, optimizing the retail networks in Spain and
rationalizing costs, will produce savings of about Ptas. 50 billion a year after
year three of the merger.

In the case of retail banking, operating costs were reduced by 1.7% in real
terms, and 2% for Banesto. This trend should be accentuated in coming quarters,
as merger-related savings take effect. As a result of the positive performance
in ordinary margin, and the reduction of administrative costs, the efficiency
ratio, one of the Group's priority objectives under Program ONE, improved four
percentage points to 57.1%.

Operating income, which came to Ptas. 295,784 million (1,777.7 million euros),
is higher than in either half of 1998. Adding net income from equity accounted
holdings, business margin rose 21% over the first half.

In line with its priority focus on prudent risk management and balance sheet
strengthening, BSCH increased loan loss provisions by 59.29% and increased its
cover rate by 5.8 points.

DECLINE IN NPLS AND BALANCE SHEET STRENGTHENING

Non-performing loan ratio improved to 1.8% at June 30 from 2% a year earlier,
with the cover rate rising to 122% (150% excluding mortgage guarantees).

Total Group assets came to Ptas. 42.6 trillion at the end of June, a rise of
6.2% over the same date last year. Customer-related business rose significantly,
both in loans which rose Ptas. 2.8 trillion (+15.8%) to Ptas. 20.8 trillion, and
also in managed customer funds, both on and off balance sheet, where the rise
was Ptas. 2.2 trillion (+6.5%) to Ptas. 36.3 trillion. Excluding repurchase
agreements (repos) the rise is 10.1%. Mutual and pension funds rose 14% and 27%,
respectively, during the period, and sight deposits by 17%.

The overall growth trend was seen especially in retail business in Spain, where
the growth in traditional liabilities and mutual funds was above 10%.


SURPLUS OF PTAS. 1.1 TRILLION IN EQUITY

At June 30, total equity under BIS criteria came to Ptas. 3.1 trillion, a rise
of 9.6% over June 1998. The Group's capital ratio stood at 12.4%, with a Tier 1
of 8.9%. BSCH is among the strongest and most solvent financial groups in the
European sector, with a surplus of equity over the minimum required level of
about Ptas. 1 trillion.

The Group can count additionally on unrealized capital gains in its equity
portfolio of close to Ptas. 1 trillion, which places it in excellent stead for
achieving its goals of profitable business growth and balance sheet strength.

In the first half of 1999 the Bank issued preferred stock and bonds, allowing it
to optimize its financing profile and increase its equity funds by Ptas. 275
billion.

CONSOLIDATED RESULTS
First half 1999
(Data in millions of pesetas)           30/06/99    30/06/98          %
                                      -----------------------------------
Interest income                        1,659,304   1,513,435         9.6
Interest costs                         1,103,540   1,014,022         8.8
NET INTEREST INCOME                      555,764     499,413        11.3
Net commissions                          260,033     225,265        15.4

* BASIC MARGIN                           815,797     724,678        12.6

Earnings from financial operations        23,756      42,352       (43.9)
ORDINARY MARGIN                          839,553     767,030         9.5
General administrative expenses          479,210     469,204         2.1
a) Personnel                             313,272     308,355         1.6
b) Other administrative costs            165,938     160,849         3.2
Depreciation and amortization             58,767      47,658        23.3
Other operating costs                      5,792      (2,421)          -

* OPERATING INCOME                       295,784     252,589        17.1

Income from equity-accounted holdings     23,190      11,047       109.9

* BUSINESS MARGIN                        318,974     263,636        20.9

Earnings from Group operations           115,034      37,988       202.8
Net loan loss provisions                  77,369      48,571        59.3
Writedown of investment securities            89         300       (70.3)
Goodwill amortization                     12,574      36,077       (65.2)
Other results                           (112,953)    (12,433)          -
Pre-tax income                           231,023     204,243        13.1
Corporation tax                           47,917      45,964         4.3
Minorities                                19,696      19,368         1.7
Preferred dividends                       29,830      23,890        24.9

* INCOME ATTRIBUTABLE TO GROUP           133,580     115,021        16.1

                         BSCH GROUP - KEY DATA

                                      1st half 1999        1st half 1998

                               EUROS        PESETAS       PESETAS   VAR%
BALANCE SHEET                                
Assets                     256,081.6     42,608,397    40,132,839   6.17
Loans                      125,108.5     20,816,307    17,973,849  15.81
NPL ratio                                       1.8          2.02
NPL cover rate                               122.09     116.25.00
Total customer funds       218,365.7     36,332,994    34,128,606   6.46
Off balance sheet funds     75,977.8     12,641,638    10,972,920  15.21

                                           30-VI-99      30-VI-98
Market capitalization       37,044.7      6,163,721     6,280,471
Share price                     10.1          1,680         1,963
EPS                             0.44             73            64



RESOURCES
Employees                                   101,884               112,319
In Spain                                     47,990                51,182
Offices                                       8,913                 8,852
In Spain                                      6,344                 6,496


                                           30-VI-99             31-XII-98
ROE                                           18.1%                 16.0%
ROA                                            0.9%                  0.7%
Efficiency ratio                              57.1%                 62.1%



                    BANCO SANTANDER CENTRAL HISPANO, S.A.

                              First Dividend

As from 31st July 1999, Banco Santander Central Hispano will pay a dividend on
all currently outstanding ordinary shares as follows:

Shares Number       Gross Dividend      25% Withholding Tax    Net Dividend

1-3,667,793,148     Euro 0.055          Euro 0.01375           Euro 0.04125
                    (Pesetas 9.15123)   Pesetas (2.28781)      (Pesetas 6.86342)

The dividend is the first, payable on a quarterly basis, charged to 1999
earnings.

Santander, 27th July 1999
The Chairman of the Board of Directors