Final Results

Banco Santander Central Hispano SA
1 February 2000



BANCO SANTANDER CENTRAL HISPANO 1999 NET ATTRIBUTABLE INCOME:  PTAS. 262,076
MLN, UP 26%

Programme ONE objectives surpassed in 1999

Madrid,  January 31, 2000 - Banco Santander Central Hispano recorded  net
attributable income of Ptas. 262,076 million (1,575.1 million euros) in 1999, an
increase of 26% over the previous year. Earnings per share  came to Ptas. 71.5
(0.43 euros) compared to Ptas. 56.5 in 1998, and return on equity rose to 18.51%
from 16.04%. The figures for 1998 are proforma.

The  Group amply met the four basic objectives it set for 1999 under  its
Programme  ONE  strategic  plan:  integrating  the  newly  merged  bank,
promoting the branch networks in Spain, positioning the Group strategically and
consolidating in Latin America.

Quantitative objectives:

-  Not attributable income: Ptas. 262.1 billion. +26%. Above objective of
   Ptas. 260 billion

-  Operating Income: Ptas. 578.9 billion, +18%. Ptas. 40 billion above target

-  Four percentage point improvement in efficiency ratio to 57.70%

-  Return on equity (ROE) of 18.51%, above the 18% objective

-  NPL  ratio of 1.97 (0.93% in Spain), cover rate 121% (140% without mortgage  
  guarantees)

-  Strong  growth  in  commercial activity: loans +13.4%, customer funds +14.4%

Qualitative objectives:
-  An  integrated and efficient organization. Technological, operational and    
  functional integration met programmed objectives in 1999 and is expected to   
 be completed in 2000. The aim is to achieve an integrated and efficient        
organization that provides support to the Group in Spain, where it maintains   
a multi-brand strategy, as well as to the other markets where it operates.

-  A  solid  strategic positioning in Europe. During 1999 leadership  was
   consolidated in all sectors and business areas through the Santander and
   BCH  branch  networks,  the  consolidation of  Banesto  and  the  growing
   importance  of  the other subsidiaries. In Portugal, the 4th largest bank
   group  with  a  market  share above 10%. In France,  Germany  and  Italy,
   increased shareholders  in  strategic  partners:   Societe   Generale,
   Commerzbank  and San Paolo-IMI. In the UK. support to The  Royal  Bank  of
   Scotland in its bid for NatWest.

-  The  leading franchise In Latin America. The merger of the  two  Peru
   subsidiaries. Acquisition of pension fund managers in Peru and  Colombia.
   Purchase of the retail broking business of Merrill Lynch in Puerto Rico.
   In  Brazil, agreement to buy 97% of the Meridional financial group, which
   will make Santander Central Hispano the fifth largest private sector bank
   in this country.

-  Impulse given to management principles. Introduction of cost  reduction
   programmes,  career  development, leadership, internal  communication  and
   teamwork.

-  Concentration of industrial stakes in strategic sectors, with high           
  development  potential for development and business  scope  (electricity,
   oil, construction and telecommunications).

Highlights of 1999 results: increased recurring income, improved efficiency and
high level of provisions

Contributing to these positive results were strong business growth and a healthy
composition: 79% of the profit came from commercial banking.

Net interest revenue rose 7.8%. Net interest revenue came to 1,109,784 million
(6,669.9 million euros), on the strength of sustained growth in business volume,
optimization of internal organization and an improved weighting
of retail banking throughout the Group's business.

Increased lending in more profitable business segments and a change in the
composition of liabilities, where lower cost sight deposits have grown, have
helped ease pressure on margins derived from the fall in interest rates.

Net interest revenue as a proportion of average total assets improved to 2.70%
from 2.62%, in a year when margins continued to narrow in Spain, both among
banks and also savings banks. This improvement was made possible by
diversification in sources of income, both geographic and also by business
category.

Net fees and commissions rose 11.9% to Ptas. 511,992 million (3,077.1 million
euros), showing consistent growth throughout the year. Commissions from funds
rose 35.8%, and from credit cards by 31.4%, to account for 53% of the total as
against 43.8% the previous year.

Basic revenue (net interest income plus commissions) increased 9% to Ptas. 1.622
trillion (9,747.1 million euros), with fees and commissions contributing almost
a percentage point to this growth and making up 31.6% of the total.

Trading gains remained around 1998 levels, with the Ptas. 63,164 million (379.6
million euros) earned accounting for less than four percent of ordinary margin.

Ordinary margin rose 8.7% to Ptas. 1.684.9 trillion (10,126.7 million euros),
its favourable composition reflected by the 85% coming from commercial banking
in Spain and abroad, and the high weighting of recurring income (net interest
income and fees), which together made up 96% of the total.

Cost control and improved efficiency. Cost control programmes ensured a        
modest increase in this item (0.9%), despite new incorporations to the Group and
increased shareholdings acquired in a number of entities, with the result that
the efficiency ratio improved four percentage points to 57.7%.
   
This  performance  was  repeated both in the  domestic  market  and  also
abroad, underlining the commitment among all Group areas.

By  business areas, retail banking in Spain, Banesto and global wholesale
banking  significantly  improved  their efficiency  ratios  with  nominal
reductions  in  costs. Asset management, private banking  and  commercial
banking  abroad recorded nominal increases in expenditure as a result  of
greater   activity  and  acquisitions.  However,  this  rise   was   well
compensated by income with the result that efficiency ratios improved.

Operating  income  recorded the strongest growth,  rising  18%  to  Ptas.
578,853  million  (3,479  million euros)  and  practically  doubling  the
objective  set  in Programme ONE. Increased activity, higher  commissions and 
cost  savings  were  key  the  elements  in  this  result.  The  net
contribution  from equity accounted holdings, net of dividends  received,
rose 36.3% to Ptas. 53,717 million (322.8 million euros), as a result  of
which  Group  business  margin increased 19.3% to Ptas.  632,570  million
(3,801.8 million euros).

This  sustained income generation enabled the Group to make net loan loss
provisions of Ptas. 164,401 million (988.1 million), an increase  of  49%
over  the  previous  year,  and goodwill amortization  of  Ptas.  107,819
million  (648.0  million), a rise of 94.4%, most  of  which  representing
early payments.

Profit  increase  surpasses  objectives. Pre-tax  income  came  to  Ptas.
451,835  million (2,715.6 million euros), a rise of 26.1%, and  after-tax
income was 26.7% higher at Ptas. 361,395 million (2,172.0 million euros).
Retail  banking accounted for 79% of the profit, global wholesale banking
for  14%  and asset management and private banking for 7%. Of  the  total
retail banking income, 38% related to Spain, 22% to Latin America, 4%  to
Europe and 15% to Banesto.

In  Latin  America, the Group achieved high degrees of profitability  and
efficiency,  maintaining high asset quality and making good  progress  in
attracting  deposits. AS a result, net attributable income in the  region
came  to  Ptas,  91,437  million  (US$585  million),  above  the  initial
objective of US$500 million.

Banesto  performance reflects objectives achieved. Basic margin and  cost
reduction  are  behind  the improved results in  which  net  attributable
income rose 44.2% to Ptas. 49,499 million (297.5 million euros).

A strong balance sheet reflecting increased business activity

Group  assets came to Ptas. 42.668 trillion (256.4 billion euros) at  the
end of the year, a rise of 8.8%. Total managed funds were 9.7% higher  at
Ptas.  55.725  trillion (334.9 billion euros). The main factors  were  an
improvement  in  balance  sheet  composition,  due  to  increased  client
business, a rise in the securities portfolio, and a reduction in the portfolio
of government bonds and balances outstanding with financial intermediaries.

Total  balance  sheet customer funds rose 16.2% to  Ptas.  25.582 trillion 
(153.8 billion euros). Deducting repurchase  instruments (repos), the total rose
a net Ptas. 4 trillion or 21.5%.

Off-balance  sheet funds evolved favourably with a 7.6%  rise  in mutual  funds
that contrasted well with the flat growth  of  the market  as  a  whole,
bringing Group market share to  24.3%  from 23.1%  at  the  end of 1998. Pension
funds under management  rose 38.6%  to  Ptas.  2.2 trillion, of which 65% 
related  to  assets managed  in  Latin  America  where the  Group  is 
undertaking  a strategy of expansion.

Total  loans  rose 13.4% to Ptas. 21.209 trillion (127.5  billion euros), with 
especially significant growth in Spain  where  the increase  was  Ptas. 1.3 
trillion or 12.3%.  This  trend  fully reflects the goal of promoting retail
banking growth in small and medium  sized companies and individual customers.
Among products, mortgage and consumer lending were particularly strong.

NPILs  and coverage. The Group's non-performing loan ratio  stood at 1.97%
compared with 1.86% at the end of 1998, as a result  of stricter criteria
applied in all Latin American banks. In  Spain the  ratio  fall  to 0.93% from
1.30%. The cover  ratio  came  to 120.8%, and excluding mortgage guarantees to
139.7%.

Surplus  equity above Ptas.1 trillion. At the end of 1999,  total capital, 
according to BIS criteria, came to Ptas. 3.043  trillion (18,288.4  million
euros) of which Ptas. 2.489 trillion  (15,983.7 million  euros) was basic
capital. The BIS ratio was  12.03%  and Tier 1 at 8.13%. The surplus over
requirements was more than Ptas 1 trillion.

With  the  objective of optimizing capital, during the  year  the Group  issued
Ptas. 221,600 million in preferred stock, and Ptas. 83,193  million in
subordinated debt. Some of these  issues  were used to retire outstanding
securities and thereby  improve  the interest rate profile.

The customer: focal point for Banco Santander Central Hispano

The Group has shown itself to be one of the most active promoters of  new 
distribution channels and financial products, responding to  the  greater 
requirements of its customers and  new  demands placed by the markets.
Specifically:

-  The  launch  of  mobile  phone banking with  the  WAP  protocol (Internet    
  banking  via  mobile  phone)  by  Santander  Central Hispano  and Banesto,    
 and the BSCH Channel (digital interactive banking via television set)

-  The introduction of new Internet banking services, and the launch of         
  Broker.com securities transactions via the internet, have increased the       
 number of Internet customers in Spain to above 200,000. Including              
subsidiaries in Europe and Latin America the total stands at more than         
300,000.

-  The mass launch in September of unit linked products, achieving marketing    
  goals with more than Ptas. 200,000 in premiums and 42,500 new policies.

Shareholders, shares and dividends

The  share  price appreciated 32.6% in value in the year, well above  the
market  average  and  that of the banking sector. Since  the  merger  was
announced, they have risen 53.7%. Market capitalization at the end of the
year  came  to Ptas. 6.859 trillion (41.226 billion euros), consolidating
Banco Santander Central Hispano as one of the highest valued banks in the
Euro Stoxx 50 index.

At  the  end of the year, there were 761,086 shareholders, with 53.8%  of
the share capital corresponding to shareholders resident in Spain.

In  line with the quarterly policy for dividend payments, a third interim
payment of Ptas. 9.15 per share was made on January 31. The Board of  Banco
Santander  Central  Hispano will propose a final  1999  dividend  to  the
annual  shareholders meeting on March 4 in Santander of Ptas. 10.40  per
share, payable April 29.

Taking  account  of the stock split carried on on June 6, 1999, adjusted
dividend  per share for 1999 came to Ptas. 37.85, an increase of  22.1%
over the previous year.

Advancing in the 'Vision'

These  results,  as  well as activity during the  year  and  progress  in
integrating  the  Group are fully in line with the  vision  of  Santander
Central Hispano, which aspires to offer the following:

-  The best customer service in Europe
-  The broadest business activity in every area
-  Optimal presence in the real economy
-  Leadership in Latin America
-  The best trained and motivated professionals and
-  The strongest capacity for generating value for shareholders.

These elements constitute the way ahead for the Bank that were defined at
the  inception of the merger and serve, a year later, as basic guidelines
for meeting the objectives set out.

Annexes:
1. Key Group data
2. Consolidated income statement
3. Group customer funds
4. Consolidated balance sheet
5. Loans
6. Shareholders equity and capital ratios
7. Integration and strategic positioning process


Annexel
Key Group data
                                        31.12.99    31.12.98     99/98%
Balance sheet (millions of pesetas)
Total Assets                            42,667,768  39,234,602       8.7
Loans (net)                             21,209.569  18,698,985      13.4
Customer funds                          38,640,197  33,575,974      15.1
  Customer funds on balance sheet       25,582,941  22,011,372      16.2
  Mutual funds                           9,956,596   9,113,471       9.3
  Pension funds                          2,174,933   1,568,813      38.6
  Managed portfolios                       925,727     882,318       4.9
Equity                                   1,335,455   1,460,504      (8.6)
Total managed funds                     55,725,024  50,799,204      19.7

Results (millions of pesetas)
Net interest revenue                     1,109,784   1,029,950       7.8
Basic revenue                            1,621,776   1,487,68l       9.0
Operating income                           578,853     490,736      18.0
Pre-tax profit                             451,835     358,398      26.1
Net profit                                 361,395     285,320      26.7
Not attributable income                    262,076     207,945      26.0


Annexe 1 (continued)
Key Group data

Ratios (%)                                31.12.99    31.12.98
ROA                                           0.88        0.73
RORWA                                         1.50        1.28
ROE                                          18.51       16.04
Efficiency                                   57.70       62.11
BIS ratio                                    12.03       12.48
Tier 1                                        8.13        8.42
NPL ratio                                     1.97        1.86
NPI cover ratio                             120.84      120.13
Shareholders and shares*         Euros
Number of shareholders                     761,086     942,426
Number of shares (millions)                  3,668       3,668
Share price (Euro, Peseta)       11.24       1,870       1,410
Market capitalization
(millions)                    41,226.0   6,859,428   5,163,848
Net attributable income per
share (annualized)                0.43        71.5        56.5
PER (market cap/net earnings
per share)                                   26.17       24.83
Other data
Number of offices                            8,473       9,093
  *Spain                                     6,011       6,463
  *Abroad                                    2,462       2,630
Number of employees                         95,442     106,485
  *Spain                                    45,175      49,598
  *Abroad                                   50,267      56,887

(*)  Per share data has been adjusted for the share split on 11/06/99

(**) All figures include the total number of offices and employees
     of Banco Santiago, BancoSur, Banco Tomquist and Banco Asuncion

Annexe 2
Consolidated income
statement

In millions of pesetas                 Jan-Dec 99     Jan-Dec 98      99/98%
Interest revenue + dividends            3,318,356      3,075,160         7.9
Interest expenses                       2,208,572      2,045,210         8.0
NET INTEREST REVENUE                    1,109,784      1,029,950         7.8
Not fees and commissions                  511,992        457,731        11.9
BASIC REVENUE                           1,621,776      1,487,681         9.0
Trading gains                              63,164         63,030         0.2
Net operating revenues                  1,684,940      1,550,711         8.7
Personnel and general expenses            972,224        963,111         0.9
  a) Personnel                            628,240        619,839         1.4
  b) General expenses                     343,984        343,272         0.2

Depreciation                              122,424        100,397        21.9
Other operating costs                      11,439         (3,533)          -
NET OPERATING INCOME                      578,853        490,736        18.0
Income from equity-accounted
holdings                                   53,717         39,405        36.3
BUSINESS MARGIN                           632,570        530,141        19.3
Earnings from equity accounted
holdings                                  117,220         64,937        80.5
Net provisions for loan losses            164,401        110,359        49.0
Writedown of investment securities            658          1,095       (39.9)
Goodwill amortization                     107,819         55,471        94.4
Other income                              (25,077)       (69,755)          -
Income before taxes                       451,835        358,398        26.1
Corporate tax                              90,440         73,078        23.8
Minority interests                         38,463         29,953        28.4
Dividend - preferred shareholders          60,856         47,422        28.3
NET ATTRIBUTABLE INCOME                   262,076        207,945        26.0


Annexe 3 - Balance sheet

ASSETS
In millions of pesetas                   3.12.99        31.12.98    99/98(%)    
   
Cash and Central Banks                 1,036,067         586,720       76.6
Government debt securities             4,944,590       5,238,413       (5.6)
Due from banks                         5,029,230       6,171,079      (18.5)
Loans                                 21,209,569      18,698,985       13.4
Investment securities                  5,996,162       4,379,860       36.9
  Fixed income                         4,261,772       3,151,218       35.2
  Equities                             1,734,390       1,228,642       41.2
  Shares and other securities            919,474         554,391       65.9
  Equity stakes                          671,656         531,918       26.3
  Equity stakes in Group companies       143,260         142,333        0.7
Tangible and intangible assets         1,068,693       1,073,268       (2.3)
Treasury stock                             5,939          19,997      (70.3)
Goodwill                                 423,053         365,703       15.7
Other assets                           2,835,244       2,568,509       10.4
Prior years' results from
consolidated companies                   139,221         132,068        5.4
Total Assets                          42,667,768      39,234,602        8.7

LIABILITIES
Bank of Spain and banks               10,524,283      11,556,677       (8.4)
Customer deposits                     20,228,069      18,975,034        6.6
  Deposits                            17,429,961      15,721,453       10.9
  Repos                                2,798,108       3,253,581      (14.0)
Debt securities                        4,007,367       1,986,096      101.8
Subordinated debt                      1,347,505       1,050,242       28.3
Pension and other allowances             727,148         562,765       29.2
Minority interests                     1,054,902         831,465       26.9
Net consolidated income                  361,395         285,320       26.7
Capital                                  305,135         210,898       44.7
Reserves                               1,057,941       1,299.507      (18.6)
Other liabilities                      3,054,023       2,476,598       23.3
  Other managed funds
  (off-balance sheet)                 13,057,256      11,564,602       12.9
Total managed funds                   55,725,024      50,799,204        9.7
Contingent liabilities                 3,476,705       3,155,337       10.2
Guarantees                             2,931,418       2,728,165        7.5
Documentary credits                      545,287         427,172       27.7


Annexe 4 -
Customer funds

In millions of pesetas                  31.12.99        31.12.98     99/98%

Public sector                            357,976         354,803        0.9
Private sector                        10,392,237      11,003,090       (5.6)
  Demand deposits                      3,182,457       2,745,177       15.9
  Savings accounts                     2,164,395       1,934,079       11.9
  Time deposits                        3,195,638       3,957,989      (19.3)
  REPOS                                1,825,495       2,349,770      (22.3)
  Other accounts                          24,252          16,075       50.9
Non-resident sector                    9,477,856       7,617,141       24.4
  Deposits                             8,530,131       6,716,824       27.0
  REPOS                                  947,725         900,317        5.3
Total customer deposits               20,228,069      18,975.034        6.6
Debt securities                        4,007,367       1,986,096      101.8
Subordinated debt                      1,347,505       1,050,242       28.3
Total customer funds
on-balance sheet                      25,582,941      22,011,372       16.2
Total managed funds
(off-balance sheet)                   13,057,256      11,564,602       12.9
Mutual funds                           9,956,596       9,113,471        9.3
  Spain                                8,546,531       7,944,997        7.6
  Abroad                               1,410,065       1,168,474       20.7
Pension funds                          2,174,933       1,568,813       38.6
  Spain                                  754,930         711,157        6.2
  Individuals                            660,815         629,054        5.1
  Abroad                               1,420,003         857,656       65.6
Managed portfolios                       925,727         882,318        4.9
  Spain                                  486,305         433,505       12.2
  Abroad                                 439,419         448,813       (2.1)
Total customer funds
on-balance sheet                      38,640,197      33,575,974       15.1


Annexe 5
Loans

In millions of pesetas                  31.12.99        31.12.98    99/98(%)
Public sector                            682,112         676,285        0.9   
Private sector                        11,887,179      10,589,160       12.3
  Secured loans                        3,976,575       3,303,677       20.4
  Other loans                          7,910,604       7,285,483        8.6
Non-resident sector                    9,216,819       7,937,597       16.1
  Secured loans                        2,414,003       1,785,943       35.2
  Other loans                          6,802,816       6,151,654       10.6
Gross loans                           21,786,110      19,203,042       13.5
Less: allowance for loan losses          576,541         504,057       14.4
Net loans                             21,209,569      18,698,985       13.4
Note: doubtful loans                     499,097         414,820        2.0
  Public sector                            1,447           2,423      (40.3)
  Private sector                         141,432         174,640       (190)
  Non-resident sector                    356,218         237,757       49.8


Annexe 6
Shareholders' equity
and capital ratios

In millions of pesetas                  31.12.99        31.12.98    99/98(%)
Subscribed capital stock                 305,135         210,898       44.7
Paid-in surplus                          535,761         742,612      (27.9)
Reserves                                 322,532         340,146       (5.2)
Reserves at consolidated
companies (net)                           60,427          84,681      (28.6)
Total primary capital                  1,223,855       1,378,337      (11.2)
Net attributable income                  262,076         207,945       26.0
Treasury stock                            (5,939)        (19,997)     (70.3)
Distributed interim dividend             (67,130)        (54,219)     (23.8)
Shareholders' equity at
period end                             1,412,862       1,512,066      (6.56)
Interim dividend pending
distribution                             (33,565)        (19,987)      68.7
Final dividend                           (43,842)        (31,665)      38.5
Shareholders' equity after             1,335,455       1,460,504       (8.6)
allocation of period end results
Preferred shares                         887,626         701,577      (26.5)
Minority interests                       266,595         207,263       28.6
Shareholders' equity &
minority interests                     2,489,676       2,369,344        5.1
Basic Capital (Tier 1)                 2,072,517       1,893,241        9.5
Supplementary capital                    973,825         912,109        6.8
Eligible capital                       3,046,342       2,805,350        8.6
Risk-weighted assets
(BIS criteria)                        25,319,359      22,482,163       12.6
BIS ratio                                  12.03           12.48
  Tier 1                                    8.19            8.42
Excess (amount)                        1,020,793       1,006,777       (1.4)

Annexe 7

       Integration and strategic positioning process. Summary of 1999

JANUARY

-  The  merger is announced on January 15:  by then a series of measures        
  essential for the merger's subsequent development had  already been           
 adopted, including the establishment of the legal head office and the          
operational headquarters, the composition of  the administration  and          
senior management bodies and the share exchange of the two banks. In           
addition, and already focusing on business,  the income goals for 1999-2000    
were set, cost savings were estimated and a multi-brand strategy developed:    
Banco Santander, BCH and Banesto.

-  Presentation of the merger project to the National Securities Commission     
  ('CNMV') and to Spanish and foreign analysts and institutional investors

-  Work started to integrate IT systems and optimize branch networks

FEBRUARY

-  The merger project is inscribed in the Madrid and Santander Mercantile       
  Registers.

-  The Group's new corporate image is launched.

MARCH

-   Employment Protocol Agreement with the main trade unions.

-   Senior management convention attended by 1,700 Group executives from all    
   over the world at which:

-   The new Bank's corporate culture and main management guidelines are         
   announced.

-   Goals by divisions are set for 1999 and 2000 under Program ONE.

-   Shareholder meetings of Banco Santander and Banco Central Hispano approve   
   the merger of both banks.

APRIL

-   Presentation of the merger prospectus and registration of the merger deed.  
   Legal birth of the new bank.

-   On April 17 the Board of Banco Santander Central Hispano meets for the      
   first time.

-   On April 19 the SCH share begin to trade in Spain and in international      
   markets.

MAY

-   Operational  integration of treasury, the fist of those  envisaged during   
   1999 in the Wholesale Banking and Asset Management areas.

-   Integration of the internal audit departments.

-   Creation  of the Internal Communication Committee, a key aspect of          
   management  at  BSCH  as  regards the  Group's  configuration  and
    cohesion.

-   Sale of the stake in Banco Comercial Portugues, which produced a capital    
   gain of Pta. 81,000 million.

-   Purchase from the Luksic Group of its stake in  the  OHCH  holding, whereby 
   Banco Santander Central Hispano attained 43.5%  of Banco Santiago  (Chile),  
  90% of Bancosur (Peru), 78% of  Banco Asuncion (Paraguay) and the whole of    
 Banco Tornquist (Argentina)

JUNE

-   Launch of a plan to trim general expenses.

-   Acquisition of an additional 16.3% of Airtel Movil and subsequent transfer  
   of 5.4% to two Spanish savings banks, bringing the holding to 25%.

-   Merger of the banks in Brazil.

-   First agreement with the Portuguese financier Mr Antonio Champalimaud

-   Integration of the Management Control departments.

-   Integration of the departments of General Auditing.

-   Integration of branches abroad

-   Unification of internal suggestion schemes

JULY

-   In  accordance  with the report drawn up by the Fair Trade Authority, which 
   sets out the limits of stakes held by banks in public service companies,     
  Banco Santander Central Hispano sold its stake in Retevision, reduced its     
 holding in Endesa, committed itself to the sale of Uni2 and focused its        
presence in the electricity sector through Union Fenosa.

-   Recognition  of  the  ISO  certifications in the  merged  areas:  Asset
    Management, Telephone Banking and Multimedia, Training, Electronic Banking, 
   Corporate  Banking, Internal Auditing and Consultation Line (for  the        
  design, management and resolution of all types of legal advice in the         
 retail networks).

-   New quality certifications obtained in Bansafina, Gestarsa,  Hispamer
    (management of financial services and consumer area) and Banesto (Telephone 
   Banking).

-   Catalan Quality Award granted by the regional government of  Catalonia
    to BCH's network of corporate branches in Catalonia.

-   The International Private Banking area completes its integration.

AUGUST

-   The SCH share begins to trade on the Milan stock exchange.

-   The stake in San Paolo-IMI reaches 6.9%

SEPTEMBER

-   Integration of Corporate Banking completed.

-   Closure of the IT center at Pinar del Rey and upgrading of the two          
   remaining centers (optimizing costs and increasing total processing          
  capacity).

-   Commencement of the first phase of the Intranet Project, the new single     
   communication platform.

-   The SCH share joins the selective Euro Stoxx 50 index.

-   After several stages, the stake in Societe Generale reaches 5.06%

-   Redemption of the shares of minority interests of Hispamer Banco
    Financiero. BSCH acquires full ownership.

-   Massive launch of  unit-linked products, generating Pta, 200,000 million in 
   premium income.

-   Launch of Banco Santander Central Hispano Broker.com

-   Legal merger of Banco Santander's and BCH's broker-dealers.

OCTOBER

-   Implementation of the new Internal Risk model.

-   Quality certification obtained for adapting IT systems to the Y2K effect.

-   Launch of the Technological Integration Project.

-   Launch of mobile telephone banking with WAP protocol.

-   Agreement to purchase the pension fund management companies Union (Peru)    
   and Davivir and Colmena (Colombia).

NOVEMBER

-   Legal merger of the banks in Peru.

-   Legal merger of the mutual fund management entities (Gesbansander, BCH      
   Gestion and Banesto Fondos).

-   Development of a single and universal quality model at Santander Central    
   Hispano.

-   Integration of specialized financing units (Hispamer, Bansafina, Gestarsa)  
   under HBF Banco Financiero (new name of Hispamer Banco Financiero)

-   Definitive agreement with the Champalimaud Group to acquire Banco Totta e
    Acores and Credito Predial Portugues

-   Agreement with The Royal Bank of Scotland in relation to the latter's
    bid for Natwest, providing £1,200 million of financial support.

DECEMBER

-   The plan to optimize branch networks in 1999 is completed, with the
    closure of 425 branches.

-   Launch of the private banking in Spain project through BSN-Banif. The
    integration plans for various management and marketing teams of BSN Banca   
    Privada and Banif, in the process of being merged, are put into effect.

-   Restructuring of investment banking activities (custody, securities
    and corporate) into Santander Central Hispano Investment

-   Launch of a new interactive banking service by TV.

-   Quality certifications for HBF Banco Financiero (at a global level,
    which broadens the scope of the previous one) and for Development and       
   Selection of Human Resources.

-   Unification of almost all the contractual documents used by the retail
    networks.

-   Y2K effect: successfully overcome, after having completed all the
    necessary adaptation processes.