SantanderCentral Hispano&RBOS

Banco Santander Central Hispano SA
14 May 2003




SANTANDER CENTRAL HISPANO AND ROYAL BANK OF SCOTLAND CLOSE TRANSACTIONS IN MIAMI
                                 AND FRANKFURT


  • Santander buys Miami-based Latin American private banking business of RBSG
    subsidiary Coutts & Co

  • Royal Bank of Scotland buys cards and personal loans businesses of
    Santander Direkt Bank in Germany


Madrid, May 14, 2003 - The Royal Bank of Scotland Group and Santander Central
Hispano have reached agreement on two separate transactions which will allow the
two institutions to focus their growth efforts on specific core businesses.

Santander Central Hispano is to acquire the Miami based Latin American private
banking operations of the Coutts Group. The Royal Bank of Scotland Group is to
purchase the credit card and personal loans portfolios of Frankfurt based
Santander Direkt Bank. Both transactions are subject to regulatory approval and
are expected to be completed within three months.


The transaction with the Coutts Group will enhance Santander Central Hispano's
position as one of the leading providers of private banking services in Latin
America. The acquisition of the Santander Direkt Bank businesses will grow The
Royal Bank of Scotland Group's already significant personal loans and cards
business in Europe that trades under its Comfort Card brand.

Santander Central Hispano CEO Alfredo Saenz, commented: 'We are delighted to
reach these agreements with our partners at The Royal Bank of Scotland Group,
underlining again our ability to work together for the benefit of our
shareholders.'

Fred Goodwin, Group Chief Executive of The Royal Bank of Scotland Group, said:
'These transactions are very sensible for both The Royal Bank of Scotland Group
and Santander Central Hispano.

'The Royal Bank of Scotland Group operates one of the largest credit card
platforms in Europe and is ideally placed to grow Santander Direkt. Santander
Central Hispano is highly regarded in Latin America for its private client
business and this acquisition will sit very comfortably within that business.'

As at 31 December 2002, the Latin American private banking operations of the
Coutts Group had $2.6 billion in assets under management for over 1,400 clients
in Latin America. The premium to be paid by Santander will be approximately 65
million euros.


The sale of the Latin American private banking operations will enable Coutts to
focus its expansion plans on its priority markets of the UK, Europe and Asia.
The disposal will not have a material impact on The Royal Bank of Scotland
Group. Through its International Private Banking Unit, Santander Central Hispano
had $25 billion under management globally as at 31 December 2002.

Santander Direkt Bank is the third largest credit card provider in Germany to
both personal and commercial customers and also has a consumer loans business
with a total of over 540,000 customers. The total consideration for the card and
loans portfolios will be approximately 486 million euros, subject to
adjustments.


Santander Central Hispano continues to offer consumer finance in Germany through
its CC-Bank subsidiary, focusing particularly on the vehicle financing segment
where it is the leading independent franchise in the country with 2.2 million
customers and a 16% market share. It also continues to provide ancillary credit
card services in this market through CC-Bank.



Notes to Editors

Santander Central Hispano (SAN.MC, STD.N) is the largest financial group in
Spain and in Latin America, and the second largest bank in the Euro Zone by
market capitalisation. It is present in 40 countries worldwide and has 36
million customers, including 23 million in 10 Latin American countries
concentrated mainly in Brazil, Mexico and Chile.


Founded in 1857, the Group has forged important business initiatives in Europe,
including a 14-year old alliance with The Royal Bank of Scotland, ownership of
the third largest banking group in Portugal and a major consumer finance
franchise in eight European countries including Spain, Portugal, Italy and
Germany where it is the leading independent vehicle finance provider, as well as
Austria, Poland, the Czech Republic and Hungary.

The Royal Bank of Scotland Group is Europe's 2nd and the world's 5th largest
bank by market capitalisation. The Retail Direct divisions, which includes its
credit card business, issues a comprehensive range of credit, charge and debit
cards to personal and corporate customers and engages in merchant acquisition
and processing facilities for retail customers.


It also includes Tesco Personal Finance, The One Account (formerly Virgin One),
Direct Line Financial Services, Lombard Direct and the Group's internet banking
platform. It has 15.3 million customer accounts in Europe and employs 6,800
people.

Retail Direct has 9.5 million credit card accounts. Its Comfort Card business
offers storecards and personal loans to over 1.7 million account holders and
operates in Austria, Belgium Germany and the Netherlands employing 480 people.






  • In addition, in Europe, The Royal Bank of Scotland Group has:
    Corporate Banking operations in Paris, Frankfurt, Milan, Madrid, Stockholm
    and Helsinki, employing nearly 600 people and offering a full range of
    corporate banking services to its European corporate customers;

  • Motor Insurance business in Spain, Germany and Italy through Direct Line.
    Launched in 1995 through Linea Directa in Spain, Direct Line acquired the
    motor insurance business of All State in June 2001 and the direct motor
    activities of Royal & Sun Alliance in Italy in January 2002. It is now one
    of Europe's largest providers of direct telephone motor insurance.


The Coutts Group is the international private banking arm of The Royal Bank of
Scotland Group. The Coutts Group manages £34 billion of assets on behalf of
75,000 clients worldwide and has 36 offices in the UK, Switzerland, Monaco, the
Middle East, Asia and offshore jurisdictions. Founded in 1692, Coutts is the
UK's leading private bank.



Enquiries to:

Media:

Santander Central Hispano

Keith Grant

Tel: [phone]; mobile [phone]

The Royal Bank of Scotland Group

Carolyn McAdam

Tel (today only): [phone]; mobile [phone]

Investor Relations

Santander Central Hispano

Name: Eduardo Suarez

Tel: [phone]

The Royal Bank of Scotland Group

Richard O'Connor

Tel: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange