Result of Meeting

Banco Santander Central Hispano SA
26 June 2001

                       ANNOUNCEMENT BY THE BOARD
                    OF DIRECTORS OF BANCO SANTANDER 
                        CENTRAL HISPANO - BSCH

I.   At its meeting in Madrid on June 26th 2001, the Board of Directors of Banco
     Santander Central Hispano, at the proposal of its two Chairmen, unanimously
     resolved to make the following announcement, by which it:

     1.    Expresses its satisfaction, not only on the success of the merger of 
           the banks Santander and Central Hispanoamericano (which in just two  
           and a half years and thanks to the effort of everyone working in our 
           Group, has made it possible to achieve highly important levels of    
           expansion, diversification, profitability and efficiency, with       
           increases of 50% in business volume, 80% in earnings and 100% in the 
           value of the Bank, as well as increasing cost to income 600 basis    
           points) but also on the way in which this process has been managed,  
           in an atmosphere of full understanding and with meticulous respect   
           for the principles and rules of the Merger Process;

     2.    Congratulates the 1st Vice Chairman and Chief Executive Officer Mr.  
           Angel Corcostegui Guraya on his dedication and skilful management,   
           with the support and co-operation of the Board, the Management       
           Committee and all professionals within the Group.

     3.    Highlights the perfect affinity with which the executive bodies of   
           the Bank (the Board, the Executive Committee, the Corporate Committee
           (G4) and the Management Committee) have worked at all times          
           throughout this process.

II.   Furthermore, following the success of the UNO Programme established for   
      the years 1999 and 2000, the Board has decided to approve a new
      Programme, which will commence immediately and establishes objectives for 
      the years 2002 and 2003.

      In addition, the Board had valued very positively the decision taken at   
      the time to maintain the separation of the Santander and Central Hispano  
      networks. This had made it possible to reconcile the operational          
      integration process, with the considerable growth of the Group in Spain,  
      achieving a greater level of competitiveness and efficiency with the      
      closure of 1,400 branches, the integration of computer platforms and the  
      unification of risk management.

      However, it is now considered appropriate, in line with the objectives of 
      rationalisation and cost-saving, to combine the two aforementioned        
      networks under a single denomination, that of Banco Santander Central     
      Hispano 'BSCH', which will be segmented into two Divisions, a network     
      specialising in consumer banking and the other, in corporate banking.

      The Retail Network in Spain is completed with Banesto, which will continue
      its trajectory of strong commercial drive, strict risk policy,            
      rationalisation and cost-savings. On the other hand, owing to the small   
      percentage of its capital in the hands of the public, for operational and 
      efficiency reasons, it is considered appropriate to call for Banesto's    
      shares to be excluded from trading on the Stock Exchange.

      Finally, certain appointments have been made, completing the senior       
      management team of the Group.

      In line with all of the foregoing, the Board of Directors has likewise    
      unanimously adopted the following resolutions:

      1.    To approve the DOS Programme for the years 2002 and 2003, with the  
            following management objectives:

            a)    Attributable net income for 2002 of 585,000 million pesetas,  
                  representing an increase of more than 20% versus the objective
                  for 2001.

            b)    Attributable net income for 2003 of 700,000 million pesetas,  
                  20% more than the objective established for 2002.

                  And a 20% increase in net earnings per share in each of the   
                  years 2002 and 2003.

            c)    To reach a cost to income index of 49% in 2002 and of 45% in  
                  2003, with cost savings during 2002 and 2003 (in real terms   
                  and excluding perimeter changes and inflation and exchange    
                  effects) of 150,000 million pesetas.

            d)    To improve ROE by 4 percentage points to 24% by the end of    
                  2003 (without considering advance reserves) and to 20%        
                  considering advance reserves.

            e)    To maintain the objective of a BIS ratio of more than 12%.

      2.    To combine the brand names of Banco Santander and BCH under a single
            denomination: Banco Santander Central Hispano 'BSCH'.

            The DOS Programme includes the additional rationalisation of 1,000  
            more branches in Spain, added to the 1,400 included previously,     
            making a total of 2,400 branch closures in the domestic market. The 
            resulting number of branches of the Banco Santander Central Hispano 
            Group in Spain will therefore be approximately 4,000 branches upon  
            completion of the optimisation programme, with BSCH maintaining its 
            leadership position in terms of number of branches in the domestic  
            market.

            Additionally, an ambitious real estate rationalisation plan will be 
            undertaken in Spain and Latin America, which in the domestic market 
            alone will involve real estate sales in excess of 100,000 million   
            pesetas.
 
            Likewise, the DOS Programme anticipates new pre-retirements within  
            the Group's senior management, reducing the number of people        
            included in such group by 50% since the date of the merger.

      3.    To propose to the Board of Directors of Banco Espanol de Credito,   
            S.A. (Banesto) that the formalities be commenced for excluding its  
            shares from trading on the Stock Exchange.

      4.    Upon expiry of the Co-Chairmanship period in accordance with the    
            Temporary Provision of the Corporate By-Laws, Mr. Angel Corcostegui 
            Guraya will continue as 1st Vice Chairman and Chief Executive       
            Officer, with all Divisions of the Group reporting to him. The Risks
            Area will remain under the responsibility of the Vice Chairman Mr.  
            Matias Rodriguez Inciarte, who will also continue as Chairman of the
            delegated Risks Committee. Both will in turn report to the Chairman 
            of the Bank and of its administrative bodies, Mr. Emilio Botin.

      5.    To designate the following persons to the positions indicated below:

            -  Mr. Antonio Escamez Torres, Board Member and General Manager     
               (EVP), who is also appointed a member of the Delegated Risks     
               Committee and Co-ordinator of the International Committee of the 
               Board of Directors.

            -  Mr. Enrique Garcia Candelas, General Manager (EVP), to whom the  
               BSCH Consumer Banking Network Division will report.

            -  Mr. Joan David Grima Terre, General Manager (EVP), to whom the   
               Industrial Group Division will report, and who is appointed a    
               member of the Management Committee.

            -  Mr. Fernando Gumuzio Iniguez de Onzono, General Manager (EVP), to
               whom the Asset Management, Private Banking and Insurance Division
               will report, and who is appointed a member of the Management     
               Committee.

            -  Mr. Antonio Horta Osorio, General Manager (EVP), to whom the     
               Banks and other Units in Portugal will report, and who is        
               appointed as a new member of the Management Committee.

            -  Mr. Juan Maria Nin Geneva, General Manager (EVP), to whom the    
               BSCH Corporate Banking Network Division will report.

            -  Mr. Juan Rodriguez Inciarte, General Manager (EVP), to whom the  
               Europe, Finance Companies and Quality Division will report.

      6.    As a result of resolution (5) above, the composition of the         
            Management Committee will be as follows:

            -  Mr. Angel Corcostegui Guraya, 1st Vice Chairman and Chief        
               Executive Officer, who will preside such committee and to whom   
               all Divisions of the Group will report, and who in turn will     
               report to the Chairmen.

            -  Mr. Matias Rodriguez Inciarte, 3rd Vice Chairman and Vice        
               Chairman of the Management Committee, to whom the Risks Area will
               report and who in turn will likewise report to the Chairmen.

            -  Mr. Alfred Saenz Abad, Chairman of Banesto, Banesto Division.

            -  Mr. Francisco Luzon Lopez, Board Member and General Manager      
               (EVP), Latin America Division.

            -  Mr.  Luis   Abril  Perez,  General  Manager  (EVP), Communication
               and Research Division.

            -  Mr. David Arce Torres, General Manager (EVP), Internal Audit     
               Division.

            -  Mr. Jose Manuel Arrojo Botija, General Manager (EVP), Global     
               Wholesale Banking Division,

            -  Mr. Ignacio Benjumea Cabeza de Vaca, General Manager (EVP),      
               General Secretary and Secretary of the Board Division.

            -  Mr. Baldomero Falcones Jaquetot, General Manager (EVP), Resources
               and Costs Division.

            -  Mr. Enrique Garcia Candelas, General Manager (EVP), 'BSCH'       
               Consumer Banking Network Division.

            -  Mr. Joan David Grima Terre, General Manager (EVP), Industrial    
               Group Division.

            -  Mr. Fernando Gumuzio Iniguez de Onzono, General Manager (EVP),   
               Asset Management, Private Banking and Insurance Division.

            -  Mr. Antonio Horta Osorio, General Manager (EVP), Portugal        
               Division.

            -  Mr. Julian Martinez-Simancas, General Manager (EVP), Business    
               Legal Division.

            -  Mr. Juan Maria Nin Genova, General Manager (EVP), Banco Santander
               Central Hispano 'BSCH' Corporate Banking Network Division.

            -  Mr. Juan Rodriguez Inciarte, General Manager (EVP), Europe,      
               Finance Companies and Quality Division.

            -  Mr. Jose Luis del Valle Doblado, General Manager, Finance        
               Division.


Madrid, June 26th 2001