Interim Results

BANCO SANTANDER CENTRAL HISPANO SA
27 July 1999


BSCH RESULTS ANNOUNCEMENT
1ST HALF 1999

A summary of BSCH's 1st half 1999 results follows:

The complete report (66 pages) is available at our web site:
- Access to English version: http://www.bsch.es/ir.html (or step by step:
English Version/Investor Relations/Financial Statements/1H99) 
- Access to Spanish version: http://www.bsch.es/inversores (or step by step:
Accionistas SCH/Inversores Institucionales/Informe Financiero/1S99)


Key consolidated data


Balance sheet                  30.06.99    30.06.98     Variation      31.12.98
                   Euro MM.    Pta MM.     Pta. MM.     (%)            Pta. MM.
                                                        1999/1998
Total assets       256,081.6   42,608,397  40,132,839        6.17     39,254,216
Lending (net)      125,108.5   20,816,307  17,973,849       15.81     18,698,985
Customer funds     218,365.7   36,332,994  34,128,606        6.46     33,575,974
Customer funds on  142,387.9   23,691,356  23,155,686        2.31     22,011,372
balance sheet        
Mutual funds        58,955.9    9,809,429   8,604,004       14.01      9,113,471
Pension funds       11,284.7    1,877,610   1,478,209       27.02      1,568,813
Managed portfolios   5,737.3      954,599     890,707        7.17        882,318
Capital accounts     9,242.7    1,537,861   1,514,725        1.53      1,492,169
Total managed      332,059.4   55,250,035  51,105,759        8.11     50,818,818
funds


Income statement                 
                                1st half      1st half    Variation        
                                    1999          1998    (%)              1998
                      Euro MM.   Pta. MM.      Pta. MM.   1999/1998     Pta. MM.
Net interest income   3,340.2     555,764      499,413        11.28   1,029,950
Basic income          4,903.0     815,797      724,678        12.57   1,487,681
Operating profit      1,777.7     295,784      252,589        17.10     490,736
Pre-tax profit        1,388.5     231,023      204,243        13.11     358,398
Net consolidated      1,100.5     183,106      158,279        15.69     285,320
profit
Net attributable        802.8     133,580      115,021        16.14     207,945
profit

Ratios                                   Proforma         Proforma
                       30.06.99          30.06.99         30.06.98   31.12.98

ROA                                      0.90             0.81       0.73
RORWA                                    1.57             1.43       1.28
ROE                                     18.07            19.07      16.04

Personnel and general expenses 
/operating profit                       57.08            61.17      62.11
BIS ratio                               12.37            12.54      12.48
Tier 1                                   8.92             8.43       8.42
NPL ratio                                1.80             2.02       1.86
NPL coverage                           122.09           116.25     120.13

Shares and Shaireholders (*)
Number of shareholders                791,543          822,201    942,426
Shares outstanding (millions)           3,668            3,611      3,668
Share price (Euro, Pta.)  10.1          1,680            1,963      1,410
Market capitalization
(millions)              37,044.7    6,163,721        6,280,471  5.163,848
Net attributable profit 
per share (annualized)     0.44          72.8             63.7       56.5
P/E ratio                               23.07            27.30       24.83


Other data (**)
Number of branches                      8,913             8,852      9,093
 Spain                                  6,344             6,496      6,463
 Abroad                                 2,569             2,356      2,630
Number of employees                   101,884           112,319    106,485
 Spain                                 47,990            51,182     49,598
 Abroad                                53,894            61,137     56,887

*  All data per share has been adjusted for the share increase (split)
   carried out on 11.6.99 
** Includes all banks comprising the OHCH holding

Note: The information contained in this report has not been audited.
However, it has been produced utilizing generally accepted accounting
principles and criteria. All figures for 1998 are proforma and basically
correspond to the aggregate of the Santander and BCH Groups at the
relevant dates.


Performance during the quarter
Integration and Group strategy: clear advances made

The  integration  process  has  made  good  progress  in  technology  and
optimisation  of  operating  resources, while maintaining  high  business
activity

The  results  of  the  second quarter of 1999, the  first  since  Banco
Santander  Central  Hispano was legally constituted,  have  achieved  the
performance  predicted  since  the merger  announcement.  This  has  been
reflected not only in the high levels of business generated but  also  in
the dynamic way in which decisions have been taken and the merger process
has  evolved.  All  of  this  has been achieved  while  focusing  on  the
principle objectives established under Program ONE, where strong progress
is being made in their accomplishment.


Integration process during the quarter

As established from the outset, the integration process at Banco  Santander
Central  Hispano is evolving simultaneously in various areas: integration
of  technology:  optimisation  of  the distribution  networks  in  Spain;
rationalisation of headcount and general expenses.

During  the  second  quarter of 1999, various steps have  been  taken  to
achieve  the total integration of technology in the new bank by the  year
2000. Those of most noteworthy mention have been:
*  Operational  integration  of  the Treasury  units,  the  first  to  be
   integrated within the areas of Wholesale Banking and Asset Management;
*  Improvement in the Bank's internal information, which has  allowed  an
   efficient level of consolidation to be achieved.
*  Completion  in June, ahead of schedule, of all changes  necessary  for
   Year  2000  compliance,  which  will  guarantee  the  continuity  of  the
   business.  Testing  of contingency plans for the Group  and  with  third
   parties will take place during the third quarter.

The optimisation of the distribution networks in Spain has been addressed
during the quarter. Detailed analyses of the positioning and viability of
each office have continued, and the first closures - 110 offices by  the
end of July - have been carried out. This represents approximately 25% of
the total planned closures for the year, with a further 315 offices to be
closed  between September and November, with total closures by  year  end
totalling 425.

Apart from closures, the optimisation process also involves the streamlining of
offices, together with the simplification and standardisation of Regional Head
Offices.

According  to  the  latest  estimates,  the  process  of  optimisng  the
distribution  networks will produce savings in excess of Pta  50  billion
per annum.

Other  measures undertaken during the quarter have been in  the  area  of
headcount  rationalisation. These measures, in conjunction  with  others,
will  assure an increase in the potential of the Group's human resources.
Training  programs are being designed and adapted to the strategic  needs
of  the  business, together with personalised career programs and systems
to retain the best professionals, who are the greatest value creators.

In  order  to achieve this, various policies have been adopted,  such  as
competitive  and results-oriented remuneration packages, the  integration
and  development  of corporate policies and the constant  improvement  of
internal  communications,  which  is the  task  of  the  recently  formed
Committee for Internal Communications.

Within  Banco  Santander  Central  Hispano,  internal  communication   is
considered a basic element to manage Group structure and cohesion, and to
communicate those  elements  which contribute to the achievement of Program
ONE.  It also  instils a strong and single corporate culture in all of the
Group's employees. 

At  the same time a specific plan for reducing general expenses has  been put in
place at Banco Santander Central  Hispano  parent company in Spain.  This  plan
is  directed  at specific  costs  and, compared with 1998, will lead  to  an
estimated reduction of 7% and 15% in expenses for 1999 and 2000, respectively.

Some  of  the areas where major expenses reductions are estimated include
technical  reports  and  the  subcontracting  of  information  technology
through better use of the Bank's resources.

Also,  the budget for Latin America for 1999 has been adjusted, resulting
in an estimated additional cost saving of US$ 100 million.

Group presence 
Following the merger of Banco Santander and Banco Central Hispano, it was
necessary to clarify the new Group's position in respect of certain aspects and
areas of its banking business. This was the case in respect of the alliances
previously established by each bank in various geographical areas (Latin
America, Europe), the integration of each group's subsidiaries in various
countries and the investments maintained in specific companies.

These  aspects have been studied in depth from the beginning  and,  where
necessary the most appropriate decision for the Group has been taken. The
following are of most noteworthy mention:

*Latin America
*The  Bank  purchased a 50% stake in OHCH Holding, previously controlled
by Grupo Luksic. This has resulted in the Banco Santander Central Hispano
Group increasing its stakes in Banco Santiago (Chile) to 43.5%
in Bancosur  (Peru) to 90%, while now controlling 78%  of  Banco  Asuncion
(Paraguay) and 100% of Banco Tornquist (Argentina).

Following  this  purchase, Grupo Luksic, through its  subsidiary  company
Quinenco, launched a take-aver bid for 45% of Banco Santiago, at a  price
of  9.6  Chilean  Pesos per share. This take-over did not succeed,  given
that  both Banco Santander Central Hispano and the Central Bank of  Chile
did  not  accept the offer. Instead the Central Bank signed an  agreement
with Banco Santander Central Hispano, which has gained management control
of Banco Santiago, providing shareholder stability.

In  order to avoid the impression of excessive dominance in Chile,  given
that  Banco Santander Central Hispano controls the two largest  banks  in
the  country, the Group has agreed to manage these two banks  separately.
Specifically, it  has  agreed not to merge the  two  banks,  to  provide
quarterly  information on each bank to the authorities  and  to  maintain
totally independent management teams.

*  In order to improve the Group's management in those countries where it
has  various  subsidiaries, Banco Santander Central  Hispano  merged  its
banks  in Brazil at the end of June and plans to merge its banks in  Peru
(Bancosur and Santander Peru). These will generate additional  costs  savings,
while permitting the early amortisation  of goodwill.

* Europe
*  In  the  Portuguese banking sector, the Group had both  a  significant
direct  presence  in  the country and an alliance  with  Banco  Comercial
Portugues  (BCP).  It  was  decided to  end  the  alliance,  due  to  the
incompatibility with the Group's direct presence, which resulted  in  the
sale  of  all  cross shareholdings. As a result, Banco Santander  Central
Hispano  obtained  a realised gain of Pta 81 billion, while  it  regained
full  control  of Banif, which will be integrated with BSN Banca  Privada
(Private Banking). Mr Antonio Basagoiti has replaced the Chairman of  BCP
on the Board of Directors of Banco Santander Central Hispano.

* Following this transaction, Banco Santander Central Hispano established
an   alliance  with  the  Champalimaud  Group,  strengthening  the  Banco
Santander  Central  Hispano  Group's natural market,  within  the  Iberian
Peninsula,  and consolidating its position in Southern Europe.  This  led
Banco  Santander  Central Hispano to obtain a 40% stake  in  the  holding
company  Munfinac, in exchange for approximately 1.5% of Banco  Santander
Central Hispano's share capital.

This  alliance,  which  is  subject  to  the  approval  by  the  relevant
administrative  authorities,  has not  yet  become  operational,  as  the
Portuguese authorities have not approved it.

*  Also  in  Europe,  the Group increased its stake in Societe  Generale
(France) and in San Paolo-IMI (Italy) to 2.9% and 6.5%, respectively.

Investments in industrial holdings
*  The  most  relevant event in this area has been the  strengthening  of
Banco  Santander  Central  Hispano's position  in  the  mobile  telephone
operator  Airtel. The Group, which had an existing call option,  acquired
an  additional stake of 16.28%, thus raising its participation to  30.46%.
This deal valued Airtel at Pta. 1.8 trillion,  which was significantly below
the average market valuation. Following the operation,  the  Bank transferred a
5.4% stake to two  Cajas  de  Ahorros (Savings  Banks),  which leaves Banco
Santander Central  Hispano  with  a participation of 25%. These operations have
strengthened Banco  Santander Central  Hispano's  position  within Airtel  and
protect  the  important unrealised hidden gains generated.

Recently the  Government approved the merger between Banco Santander  and
BCH, after analysing the report issued by the 'Tribunal de Defensa de la
Competencia'  (Anti-Trust  Court). This establishes  limitations  on  the
presence  which  financial  organisations  May  have  in  public  service
companies.  Taking  this  into  consideration,  Banco  Santander  Central
Hispano  will submit a proposal in respect of the electric sector,  where
it  will  reduce its investment in Endesa and will maintain its stake  in
Union  Fenosa.  In  the  telecommunications sector, it  will  reduce  its
investment  in  Retevision  and Lince, and will  maintain  its  stake  in
Airtel.

First half 1999
The  Group's performance in the first half of the year reflects how Banco
Santander Central Hispano has overcome one of the most important risks of
any  merger:  stagnation during the first steps of the  merger  process.
This has been clearly demonstrated by the growth in profits (in line with
forecasts)  and by the increase in business volumes in Spain,  which  has
been  aided  by  the  Group's decision to maintain its  three  commercial
brands.

During  the  second  quarter of the year, the  Group  has  generated  net
attributable profit of Pta 72,293 million, an increase of 18%  over  the
previous quarter and is larger than any quarter in 1998. Furthermore,  it
is almost 10% more than in the second quarter of 1998, which itself was a
very favourable result.

During  the  first  six months of the year, the Banco  Santander  Central
Hispano Group generated a net attributable profit of Pta 133,580 million,
an increase of 16% over  the same  period  last year. Net attributable profit
per share, allowing  for adjustments in share capital, increased 14.3% compared
to the first  half of 1998.

With  a ROE of 18.07%, almost 200 b.p. above the 16.04% achieved in 1998,
steady progress has been made in achieving an ROE of 19%/20% by the  year 2000,
as established in Program ONE. 

Another  of the Group's priority goals is the efficiency ratio (personnel and
general  expenses divided by operating income) which  registered  an exceptional
performance  in the first half  of  the year.  This  ratio improved to 57.1%,
almost 410 bp better than in the first half  of  1998 and already accomplishes
the objective established in Program ONE. 

This favourable performance is mainly the result of strict cost controls,
reflected  in  an  increase  of just 2% in total personnel and  general
expenses,  with respect to the first half of 1998. At the same time,  the main
components of recurrent income have increased (net interest income: +11.3% and
fee income: +15.4%).

Operating  profit  during  the period rose to  Pta  295,784 million,  an
increase  of  17%  and  24% over the first and  second  halves  of 1998,
respectively.  This  has  enabled  Banco Santander  Central  Hispano  to
maintain a very conservative provisioning policy while, at the same time,
achieving the profit target established for the first half of the year.

With this in mind, the profits generated from the sale of the stake  in Banco
Comercial Portugues have been transferred in their entirety to an unasigned
reserve. 

Balance sheet strength and soundness have also improved, with a BIS
ratio at  the  end  of  June of 12.37% (Tier 1 of 8.92%),  in  line with  the
objectives established in Program ONE. During the first half of the year the
necessary  adjustments to Shareholders' Equity were carried  out,  to account
for the  capital increase undertaken in April relating  to  the merger, as well
as the change in nominal value to Euro and the  2-for-1 share split.

In  May preferred shares were issued totalling EUR 1,331.8 million  (Pta.
221,600 million), while in June, EUR 500 million (Pta. 83,193 million) of
subordinated  debt was issued. This latter amount was received  in  July,
and therefore does not appear in the balance sheet as at 30 June 1999.

These  issues  have been launched in order to substitute previous  issues
with  higher  rates  of  interest. It is foreseen that  a  further  early
cancellation of US $ 695 million (Pta. 111,966 million) will be  carried
out.

Asset quality also showed a positive trend, reflected in a NPL  ratio  of
1.80%, compared to 2.02% a year earlier. The NPL coverage ratio stood  at
122%, compared to 116% in June 1998.

The  most significant changes in the Group's composition during the  past
twelve months have been:
*  In  Europe  the Group increased its stakes in San Paolo-IMI and  Societe 
Generale to  6.5% and 2.9%, respectively, while the stake  held  in  Banco
Comercial Portugues was sold (these are all equity accounted).
*   ln   Latin  America,  the  most  significant  change  has  been   the
consolidation  of 100% of OHCH Holding (50% in June 1998).  Also,  during
the  second  quarter  of 1998, Banco Noroeste was incorporated  into  the
Group,  together with the new pension fund management company  in  Chile.
During  the  second half of 1998, fund management companies in  Argentina
and  Mexico were incorporated and a 90% stake was acquired in Banco Santa
Cruz, in Bolivia, together with a 9.97% participation in Banco de Galicia
y Buenos Aires, in Argentina.
*  There  have  also been changes in the some of the industrial  holdings
which  form  part of those sectors defined as strategic by the Group,  and
which have had an effect upon the Group's result.

The  Group's  total assets as at 30 June 1999 stood at Pta 42.6  trillion
(EUR  256,082  million), an increase of 6.2% over the  same  period  last
year.  This has been influenced by the strong reduction in balances  with
other financial institutions and in Repo's. Meanwhile, loans rose 15.8%
during the past year, mainly due to the contribution from Retail Banking,
both in Spain and Abroad. Total customer funds grew 6.5% with respect to
last year, and if Repo's, which have reduced significantly during the
past 12 months, are excluded, this rises to 10.1%. The largest
increases in customer funds have been in Mutual and Pension funds, which
have risen at rates of 14% and 27%, respectively.


Grupo
Santander Central Hispano                      Consolidated income statement

Results                     1st half 1999     1st half 1998   Variation 99/98
                  Euro MM.   Pta. MM. %ATA   Pta. MM.   %ATA    Amount      %
Interest income   9,777.2  1,626,781  7.97  1,489,484   7.64   137,297    9.22
Dividends           195.5     32,523  0.16     23,951   0.12     8,572   35.79
Interest expenses 6,632.4  1,103,540  5.41  1,014,022   5.20    89,518    8.83
Net interest 
 income           3,340.2    555,764  2.72    499,413   2.56    56.351   11.28
Net fee income    1,562.8    260,033  1.27    225,265   1.16    34,768   15.43
Basic income      4,903.0    815,797  4.00    724,678   3.72    91,119   12.57
Trading gains       142.8     23,756  0.12     42,352   0.22   (18,596) (43.91)
Operating Income  5,045.8    839,553  4.11    767,030   3.94    72,523    9.46 
Personnel and 
general expenses  2,880.1    479,210  2.35    469,204   2.41    10,006    2.13
 a) Personnel 
     expenses     1,882.8    313,272  1.53    308,355   1.58     4,917    1.59
 b) General 
     expenses       997.3    165,938  0.81    160,849   0.83     5,089    3.16
Depreciaton         353.2     58,767  0.29     47,658   0.24    11,109   23.31
Other operating 
costs                34.8      5,792  0.03     (2,421) (0.01)    8,213       -
Operating costs   3,268.1    543,769  2.66    514,441   2.64    29,328    5.70
Operating profit  1,777.7    295,784  1.45    252,589   1.30    43,195   17.10
Income from 
equity-accounted 
holdings            139.4     23,190   0.11    11,047   0.06    12,143  109.92 

Less:
Dividends from 
equity-accounted 
holdings            142.9     23,782   0.12    14,356   0.07     9,426   65.66 
Earnings from Group 
transactions        691.4    115,034   0.56    37,988   0.19    77,046  202.82 
Net provisions for
loan-losses         465.0     77,369   0.38    48,571   0.25    28,798   59.29 
Writedowns of
investment securites  0.5         89      -       300      -      (211) (70.33)
Goodwill amort-
ization              75.6     12,574    0.06   36,077   0.19   (23,503) (65.15)
Other income       (678.9)  (112,953)  (0.55) (12,433) (0.06) (100.520)      - 
Pre-tax profit    1,388.5    231,023    1.13  204,243   1.05    26,780   13.11 
Corporate tax       288.0     47,917    0.23   45,964   0.24     1,953    4.25 
Consolidated net 
profit            1,100.5    183,106    0.90  158,279   0.81    24,827   15.69 
Minority interests  118.4     19,696    0.10   19,368   0.10       328    1.69 
Dividend preferred 
shareholders        179.3     29,830    0.15   23,890   0.12     5,940   24.86
Net attributable 
profit              802.8    133,580    0.65  115,021   0.59    18,559   16.14
Note: 
Average Total
Assets          245,374.6  40,826,891      38,981,438        1,845,453    4.73
Average Share-
holders' Equity   8,886.2   1,478,531       1,206,301           272,230  22.57


Average yield on assets

                                   1st half 1999              1st half 1998
(%)                    % of total   Average rate  % of total   Average rate

Central banks and Gov-
ernment debt securities    14.46            5.45      14.80            6.54
Due from banks             16.15            5.97      19.75            5.65
Lending:                   46.91            9.75      44.08           10.40
 EMU currency              29.51            6.01      26.89            7.55
 Other currency            17.40           16.09      17.19           14.87
Investment securities      11.84            7.36      12.44            5.96
Other assets               10.64               -       8.93               -
Other revenues                 -            0.93          -            0.35
Total                     100.00            8.13      100.00           7.76


Average cost of funds

                                   1st half 1999              1st half 1998
(%)                    % of total   Average rate  % of total   Average rate
Due to banks                29.57           4.57       28.69           5.62
Customer deposits:          47.04           4.59       51.23           4.94
 EMU currency               28.38           2.31       33.30           3.02
 Other currencies           18.66           8.05       17.93           8.51
Debt sectirites and 
subordinated debt            8.71           8.40        7.83           8.12
Net shareholders'equity      4.00              -        3.53              -
Other liabilites            10.68           0.56        8.72           0.56
Other costs                     -           1.11           -           0.37
Total                      100.00           5.41      100.00           5.20


         Santander Central Hispano Group consolidated balance sheet
                                                                       Variation
                                       30.06.99    30.06.98              99/98
                           Euro MM.     Pta.MM.     Pta.MM.     Amount    (%)
ASSETS
Cash and central banks      3,698.2     615,335     538,411      76,924   14.29
Government and debt 
 securities                30,526.8   5,079,234   5,384,418    (305,184)  (5.67)
Due from banks             36,074.6   6,002,310   7,637,607  (1,635,297) (21.41)
Lending (net)             125,108.5  20,816,307  17,973,849   2,842,458   15.81
Investment securities      33,716.0   5,609,872   4,943,580     666,292   13.48
 Fixed income              24,313.8   4,045,477   3,625,048     420,429   11.60
 Equity:                    9,402.2   1,564,395   1,318,532     245,863   18.65
 *Shares and other 
  securites                 4,522.4     752,467     739,051      13,416    1.82
 *Equity stakes             4,054.2     674,559     457,116     217,443   47.57
 *Equity stakes in 
  Group companies             825.6     137,369     122,365      15,004   12.26
Tangible and intangible 
 assets                     6,543.5   1,088,754   1,101,129     (12,375)  (1.12)
Treasury stock                 92.1      15,328       9,095       6,233   68.53
Goodwill                    2,706.5     450,320     235,582     214,738   91.15
Other assets               16,830.7   2,800,391   2,210,480     589,911   26.69
Prior years' results from
 consolidated companies       784.6     130,546      98,688      31,858   32.28
Total assets              256,081.6  42,608,397  40,132,839   2,475,558    6.17

LIABILITIES
Due to banks               74,731.0  12,434,186  11,547,845     886,341    7.68
Customer deposits         117,574.1  19,562,677  19,751,772    (189,095)  (0.96)
 *Deposits                 99,979.1  16,635,125  15,979,384     655,741    4.10
 *REPOS                    17,594.9   2,927,552   3,772,388    (844,836) (22.40)
Debt securites             17,765.6   2,955,952   2,352,304     603,648   25.66
Subordinated debt           7,048.2   1,172,727   1,051,610     121,117   11.52
Pension and other 
 provisions                 3,270.2     544,120     462,288      81,832   17.70
Minority interests          7,339.1   1,221,121     730,348     490,773   67.20
Net consolidated profit     1,100.5     183,106     158,279      24,827   15.69
Capital                     1,833.9     305,135     207,654      97,481   46.94
Reserves                    7,482.7   1,245,020   1,299,833     (54,813)  (4.22)
Other liabilities          17,936.3   2,984,353   2,570,906     413,447   16.08
Total liabilities         256,081.6  42,608,397  40,132,839   2,475,558    6.17
Other managed funds 
 (off-balance sheet)       75,977.8  12,641,638  10,972,920   1,668,718   15.21
Total managed funds       332,059.4  55,250,035  51,105,759   4,144,276    8.11
Contingent liabilities     20,892.0   3,476,134   3,153,320     322,814   10.24
Guarantees                 18,171.5   3,023,476   2,681,059     342,417   12.77
Documentary credits         2,7ZO.5     452,658     472,261     (19,603)  (4.15)


Lending

                              30.06.99      30.06.98         Variation 99/98
                   Euro MM.     Pta.MM.       Pta.MM.        Amount        (%)
Public sector      4,554.4     757,792       687,832         69,960     10.17 
Private sector    70,236.7  11,686,411     9,913,508      1,772,903     17.88
*Loans with tang-
ible collateral   22,017.9   3,663,473     3,055,450        608,023     19.90
*Other loans      48,218.8   8,022,938     6,858,058      1,164,880     16.99
Non-resident 
sector            53,827.2   8,956,098     7,919,418      1,036,680     13.09
*Loans with tang-
ible collateral   14,679.2   2,442,407     1,751,749        690,658     39.43
*Other loans      39,148.1   6,513,691     6,167,669        346,022      5.61
Gross lending    128,618.4  21,400,301    18,520,758      2,879,543     15.55
Less: allowance
for possible loan
losses             3,509.9     583,994       546,909         37,085      6.78
Net lending      125,108.5  20,816,307    17,973,849      2,842,458     15.81
Note: Doubtful 
debts              2,705.3     450,121       438,816         11,305      2.58
*Public sector        12.5       2,080         2,489           (409)   (16.43)
*Private sector      915.2     152,282       207,658        (55,376)   (26.67)
*Non-resident 
sector             1,777.5     295,759       228,669         67,090     29.34


Evolution of non-performing loans*

                              30.06.99      30.06.98         Variation 99/98
                   Euro MM.     Pta.MM.       Pta.MM.        Amount        (%)
Non-performing 
loans              2,686.9     447,064       438,812          8,252      1.88
NPL ratio (%)                     1.80          2.02          (0.22)
Allowance for loan
losses             3,280.3     545,799       510,102         35,697      7.00
NPL coverage (%)                122.09        116.25           5.84
Non-performing 
loans (**)         2,193.4     364,944       369,253         (4,309)    (1.17)
NPL ratio (%)(**)                 1.47          1.70          (0.23)
NPL coverage (%)(**)            149.56        138.14          11.41

(*)   Excluding country risk
(**)  Excluding NPLs backed by residental mortgages
Note: NPL ratio: Non-performing and doubtful loans/computable risk