Banco Bilbao Vizcaya - Interim Results

ARNS No 0169d
BANCO BILBAO VIZCAYA S.A.


                     THE BBV GROUP - FIRST HALF 1999

During the first half of 1999, the BBV Group has met all of its ambitious
targets, as has been the case for the past 5 years. Net attributable profit
during 1H99 totalled 560 million euros (93,189 million pesetas), up 25.4% vs.
the first half of 1998, with ROE of more than 23%. First interim dividend has
increased above 20%, and total dividend payments have increased 24%, due to an
increase in the number of shares, outstanding.

One of the most notable events during this semester was the BBV Group's
attainment of the coveted leadership position in the private pension fund
management business of Latin America. The BBV Group's 26% market share in Latin
America is well ahead of its competitors in the same region. This has been
possible due to the acquisition of the controlling interest in Provida (41.17%
capital stake), a company with a prime position in Chile, the most sophisticated
market for this type of business in Latin America. Provida manages approximately
1.7 trillion pesetas worth of assets (aprox. Euro 10.2 bn) and boasts a
subscribers base of 2.4 million people. The BBV Group has also increased its
equity stake from 64% to 100% in Consolidar, Argentina's largest pension fund
management company, with assets under management of 423 billion pesetas (aprox.
Euro 2.5 bn) and 1.3 million subscribers. At the June 30th Extraordinary BBV
Shareholders Meeting, authorization was requested - and approved - for financing
these operations with newly issued shares (1.6% of capital), at an issuing price
of 13.92 euros per share. Once they are incorporated as of July lst, total
funds managed will rise to 2.8 trillion pesetas (aprox. Euro 16.9 bn) and 8.4
million subscribers. In terms of relevant investment operations, it should be
noted the purchase of a 3.75% equity stake in Credit Lyonnais' initial public
offering and 5% of Acesa (Spanish private motorway) during the second quarter of
1999.

The BBV Group's adaptation plan to prepare for the Year 2000 issue concluded in
June 1999, where all internal and external tests (domestic and crossborder
payment systems) were finalized. This process culminated with a global test of
all systems, realized between June 19th and June 27th, yielding satisfactory
results.

During the second quarter of 1999 there hasn't been any significant changes
within the perimeter of consolidation. Comparisons with 1998 numbers should take
into consideration the divestiture of the Group's controlling stake in Gesbanque
(a small subsidiary bank in Belgium), in February 1998, and the integration of,
Poncebank and Chase's business in BBV Puerto Rico, as well as Banco Excel of
Brazil (BBV Brazil), and BHIF of Chile in the second half of 1998.

Net interest income rose 8.6% over 1H98, despite the significant decrease in
dividends received derived from the strategic decision of an important company
in which we have an equity interest to not distribute dividends in 1999;
excluding this effect net interest income grows approximately 11%. The important
increase in business activity, jointly with effective price management (which 
has helped to ameliorate the declining of the customer spread) has enhanced the
domestic net interest income to the highest ever historical amount in an
environment of low and declining interest rates.

In Spain, the growth of the resident loan portfolio continues to outpace the
average of its competitors due to the significant gain in mortgage business as
well as consumer lending and loans to businesses, segments which have shown a
remarkable increase in activity in 1999. At the same time, loan quality has
improved with non-performing loans ratio of BBV ex-America at 1.11%. Obviously,
provisioning needs are lower although coverage ratio continues to increase,
ending at 157.8%.

Within the context of a less favourable macroeconomic environment, the BBV
Group's Latin American banks have continued to apply their strict risk control
criteria. Considering the depreciation of local currencies vs. the Euro and the
changes of the perimeter of consolidation, lending in BBV America has decreased
almost 4% compared to June 1998. The over-provisioning effort has permitted the
coverage ratio for BBV America to end at 124.8%, over 100% reserved in each of
the countries in which the Group operates.

Domestically, the resident sector of the BBV Group has gained market share in
transactional funds, due to a 20% rise in current and savings accounts.
Conversely, time deposits and assets sold with repurchase agreement ("repo")
additionally lose relative importance, with a decrease of 34% and 22%,
respectively. In this way, the reduction of the average cost of the deposits in
the balance sheet has intensified in 1999. Additionally, the BBV Group has
increased its activity in mutual and pension funds with an increase in market
share of 0.5% and 0.1%, respectively. Total funds under management rose to
33,323 million of euros (5.5 trillion pesetas) which represent an increase of
13.7%.

The cost control measures implemented through PRACTYCO (Plan to Streamline Tasks
and Costs), continue to be key elements during the quarter. The improvement is
clearly noticeable in BBV ex-America, where operating costs decrease 0.2%,
resulting from reductions in personnel costs and general expenses, in spite of
the increases normally linked to the continous upgrading of the BBV Group's
technological and communications platforms. In BBV America, where execution of
the PRACTYCO plan is more recent, the numbers show an increase in nominal terms
due to the significant effort in technology and the branch expansion plan. The
global efficiency ratio stands at 54.7%, an improvement of 0.5 percentage points
over 1998 figure. At the domestic level the efficiency ratio is 46.2%.

The BBV Group has continued to implement its traditional provisioning policy;
for 1H99 provisions are close to 950 million euros (approx. 160 billion pesetas)
a 20% increase vs. 1H98 out of which 2/3 are extraordinary in nature. In this
manner, the early and voluntary amortization of goodwill from Latin American
investments, specifically in Argentina and Colombia.

The amount of unrealized gains within the industrial portfolio has increased by
600 million euros, since the beginning of the year, totalling 3,429 million
euros, (aprox. 570 billion pesetas).

BBV share price closed on June 30, 1999 at 14.01 euros, up 4.77% for the first
half of the year, outperforming the IBEX 35 for the same period. The market
capitalization for the Group, not accounting for the two right issues effective
July 1st, totalled 29,135 million euros (4.8 trillion pesetas). BBV share price
(as of June 30, Euro 14.01) has increased 42% since January 1, 1998, date when
the strategy plan ProgramaHDOS 1000 came into effect, thus outperforming the
average of its national and European competitors. Again, the BBV Group met the
last of its ambitious objectives outlined in its strategic plan.

On July 12, 1999, the BBV Group paid the first quarterly interim dividend on
1999 profits. Such dividend is 5.56 eurocents (9.25 pesetas) per share, an
increase of 20.14% vs. the same interim a year earlier. On July 14th, a return
of nominal of 0.02 euros per share was paid, as approved at the February 27,
1999 Annual General Shareholders Meeting.

As of June 30, 1999 the BIS capital base of the BBV Group stood at 1,714,201
million pesetas (approx. Euro 10.3 bn). The capital ratio of the Group was at
12.6%, rendering the Group a capital surplus equivalent to 463,348 million
pesetas (approx. Euro 2.8 bn). The main component continues to be basic equity,
situated at 1,281,933 million pesetas, which gives the Group a Tier 1 ratio of
9.4%. 

                          BBV Group Highlights
                         (Consolidated figures)

                                    JUNE 99         JUNE 98   % Change
                             Pesetas       Euros    Euros       YOY

Balance sheet (Millions)
Total assets                 24,370,416    146,469  131,444   11.4
Total lending                11,028,719     66,284   55,793   18.8
Customer funds(balance sheet)14,176,308     85,201   79,814    6.8
Other Customer funds managed 10,336,813     62,126   50,347   23.4
Total funds managed          24,513,121    147,327  130,161   13.2
Shareholders' funds             889,597      5,347    4,946    8.1

Income statement (Millions)
Basic Margin                    529,914      3,185    2,917    9.2
Activity business income        244,452      1,469    1,279   14.9
Income before taxes             182,414      1,096      925   18.5
Net attributable profit          93,189        560      447   25.4

Data per share
Net attributable profit              45       0.27     0.22   23.4
Book value                          428       2.57     2.44    5.6
Share price                       2,331      14.01    15.77  -11.1

Key ratios(%)
ROE (Net attributable/Average equity)         23.1    19.2
ROA (Net Income/Average total assets)          1.05    0.99
RORWA (Net income/Risk weighted assets)        1.92    1.88

Capital adequacy ratios. BIS regulations
Total                                         12.6    12.6
Tier 1                                         9.4     9.0

Other relevant figures
Number of employees                         73,501   66,575
 Spain                                      24,968   25,279
 Abroad                                     48,533   41,296
Number of branches                           5,537    4,943
 Spain                                       2,817    2,802
 Abroad                                      2,720    2,141

                  BBV GROUP INCOME STATEMENT (*)
                           (millions)

                                    JUNE 99         JUNE 98   % Change
                             Pesetas       Euros    Euros      
                   
Financial revenues              921,645      5,539    4,947   12.0
Financial costs                -558,123     -3,354   -2,935   14.3
NET INTEREST INCOME             363,522      2,185    2,012    8.6
     
Fees & Commissions              166,392      1,000      905   10.5
 Collection and payment 
 services                        54,623        328      316    4.0
 Investment securities 
 services                        33,434        201      190    5.9
 Mutual and pension funds 
 management                      59,268        356      307   16.0
 Other Commissions               19,067        115       92   24.5
BASIC MARGIN                    529,914      3,185    2,917    9.2
     
Market operations                54,113        325      203   59.9
ORDINARY REVENUE                584,027      3,510    3,120   12.5
     
Administrative Costs           -319,667     -1,921   -1,685   14.0
 Personnel                     -204,118     -1,227   -1,095   12.1
 General Expenses              -115,549       -694     -590   17.6
Other income-costs              -10,385        -62      -59    4.8
 DGF annual fee                 -10,749        -64      -60    7.4
 Other items                        384          2       -1     NS
Depreciation                    -30,550       -184     -156   18.2
OPERATING INCOME                223,445      1,343    1,220   10.1
     
Income by the equity method      21,007        126       59   114.2
ACTIVITY BUSINESS INCOME        244,452      1,469    1,279    14.9
     
Group Net transactions          105,295        633      441    43.3
Loan loss provisions            -66,199       -398     -393     1.2
Gross                          -107,516       -546     -559    15.6
 Reversals                       29,261        176      105    67.6
 Bad debts recoveries            12,056         72       61    18.4
Securities writedowns            -4,776        -29       -1    N.S.
Goodwill amortization           -68,376       -411     -191   115.2
Extraordinary items             -27,982       -168     -210   -20.1
 Disposals                        3,488         21       25   -16.2
 Other                          -31,470       -189     -235   -19.7
PROFIT BEFORE TAX               182,414      1,096      925    18.5
     
Corporate tax                   -59,940       -360     -305    18.2
NET INCOME                      122,474        736      620    18.7
     
Minority interest               -29,285       -176     -173     1.4
 Preference shares              -13,226        -79      -46     7.1
 Other                          -16,059        -97     -127   -23.9
NET ATTRIBUTABLE                 93,189        560      447    25.4

(*) Audited non date. 1 Euro = 166.386 ptes.  Consolidated accounts are
presented in accordance with Bank of Spain Circular 4/91 (and ensuing circulars)
and follow generally accepted accounting principles.

             BBV GROUP BALANCE SHEET (*)(millions)
                                     JUNE 99         JUNE 98      % Change
                                   Pesetas      Euros     Euros
Cash and Central Banks             703,668      4,229     2,298         84
Government Debt                    789,580      4,745     7,349      -35.4
Due from Banks                   5,133,450     30,853    39,944      -22.8
Total lending (Gross)           11,028,719     66,284    55,793       18.2
Reserves                          -375,454     -2,257    -1,775       27.1
Fixed income                     4,127,467     24,807    13,940       77.9
Securities                         898,557      5,400     4,422       22.1
Property and equipment             645,593      3,880     3,459       12.2
Goodwill on consolidation          139,045        836       653       28.1
Other assets                     1,279,791      7,692     5,361       43.5
TOTAL ASSETS                    24,370,416    146,469   131,444       11.4
Capital                            186,847      1,123     1,058        6.2
Reserves                           873,241      5,248     4,317       21.5
Minority Interests                 741,893      4,459     2,768       61.1
Due to Banks                     6,992,404     42,025    36,985       13.6
Customer Funds                  14,176,308     85,201    79,814        6.8
Other Liabilities Accounts       1,277,249      7,677     5,882       30.5
Net Income                         122.474        736       620       18.7
TOTAL LIABILITIES               24,370,416    146,469   131,444       11.4
Average Total Assets            22,259,283    133,781   122,553        9.2
Average Shareholders' funds        791,303      4,756     4,600        3.4
Risk weighted assets            12,175,836     73,178    62,982       16.2

NPL as % Lending (Bank of Spain)              JUNE 99    JUN 98 JUNE99 BBV(l)
NPL
Initial                            263,063      1,581     1,550        563
   June 30th, 1999                 277,738      1,669     1,506        528
Net change                          14,675         88       -44        -35
% Net change                          5.58       5.58     -2.86      -6.28
NPL's Reserves
Last                               375,454      2,257     1,775        832
% Coverage                          135.18     135.18    117.89     157.76

Lending quality (International regulation)

NPI as % Lending                      1.63       1.63      1.66       0.54
% Coverage NPL                      195.40     195.40    169.81     270.56

(*) Audited non data. 1 Euro = 166,386 ptas. Consolidated accounts are presented
in accordance with Bank of Spain Circular 4/91 (and ensuing circulars) and
follow generally accepted accounting principles.

(1) Excluding BBV Mexico (Mexico), Continental (Peru) Gunudero (Columbia) BBV B.
Francais (Argentina),Provincial (Venezuela), BBV Puerto Rico, BBV Brasil 
(Brasil) and BHIF (Chile)


                  TOTAL LENDING AND CUSTOMER FUNDS BREAKDOWN
 
                                           JUNE 99          JUNE 98   % Change
                                     Pesetas      Euros      (Euros)      YOY

  Due from Public Sedor              493,916      2,968       2,637     12,6
  Due from residents               6,131,903     36,854      32,510     13.4
    Commercial bills                 726,823      4,368       3,852     13.4
    Borrowers with collateral      2,012,474     12,095       9,796     23.5
    Personal loans                 2,135,549     12,835      11,388     12.7
    Other term loans                 684,782      4,116       1,042     N.S.
    Other                            257,862      1,550       1,155     -0.4
    Leasing                          314,413      1,890       1,555     21.5
  Due from non residents           4,125,162     24,793      19,140     29.5
  Non performIng loans               277,738      1,669       1,506     10.8

    TOTAL LENDING (GROSS)         11,028,719     66,284      55,793     18.8
--------------------------------------------------------------------------------
  - Reserves                        -375,454     -2,257      -1,775     27.1
    TOTAL LENDING (NET)           10,653,265     64,027      54,018     18.5
    Pesetas                        6,838,928     41,103      34,458     19.3
    Foreign currencies             3,814,337     22,924      19,560     17.2
--------------------------------------------------------------------------------

  Public Sector                      499,271      3,001       2,801      7.1
  Resident Sector                  6,378,874     38,337      42,077     -8.9
    Current accounts               1,978,351     11,890       9,893     20.2
    Saving accounts                1,385,572      8,327       6,680     24.7
    Time deposit&                  1,545,619      9,289      14,138    -34.3
    Assets sold with repurchase 
      commitment                   1,469,332      8,831      11,366    -22.3
  Non-resident sector              5,455,569     32,789      26,711     22.8
  Marketable debt securities       1,537,692      9,242       6,495     42.3
  Subordinated debt                  304,902      1,832       1,730      5.9
  CUSTOMER F. RECORDED ON  
    BAL. SHEET                    14,176,308     85,201      79,814      6.8
--------------------------------------------------------------------------------
  Customers portfolios and   
    assets                         2,987,044     17,953      13,834     29.8
  Mutual funds                     5,683,400     34,158      28,789     18.6
  Pension funds                    1,666,369     10,015       7,724     29.7
  OFF-BALANCE FUNDS               10,336,813     62,126      50,347     23.4
--------------------------------------------------------------------------------
  TOTAL FUNDS UNDER MANAGEMENT    24,513,121    147,327     130,161     13.2
--------------------------------------------------------------------------------


                        Breakdown of yields and costs (1)

                             2Q99                1Q99               4Q99
                       Avge.     Avge.     Avge.      Avge.    Avge.     Avge.
                       Balance   yields    Balance    yields   Balance   yields

 Landing                10,790     9.17     10,359      9.65    10,040    10.78
 In EMU currencies       6,871     5.46      6,628      5.85     6,174     6.41
 In foreign currencies   3,919    15.67      3,731     16.40     3,866    17.75
Fixed-income securities  4,381    14.01      3,538     11 08     3,424    13.33
 In EMU currencies       2,317     3.56      1,529      5.58       701     5.45
 In foreign currencies   2,064    25.75      2,009     15.27     2,723    15.36
Companies carried by 
e. method                  660     7.40        667      5.59       621     4.87
Other holdings             195     2.83        152      2.03       145     1.97
Credit entities          5,432     4.09      5,655      5.72     6,019     5.07
 In EMU currencies       2,705     0.38      2,992      3.88     2,338     3.17
 In foreign currencies   2,727     7.77      2,663      7.79     3,681     6.27
Bank of Spain              196     4.49        195      5.60       104     6.01
Non-income producing 
assets                   1,767               1,825               1,685

TOTAL ASSETS            23,421     8.17     22,391      8.05    22,038     8.71


                             2Q99                1Q99               4Q98
                       Avge.     Avge.     Avge.      Avge.    Avge.     Avge.
                       Balance   yields    Balance    yields   Balance   yields

Customer funds          13,892     6.24     13,553      5.13    13,653    6.04
 in EMU currencies       7,768     1.56      7,899      1.92     7,633    2.35
 Deposits                5,843     1.07      6,092      1.48     5,905    1.98
 Repurchase              1,617     2.67      1,544      3.00     1,618    3.46
 Debt and other table      308     5.09        263      5.74       110    5.89
securities
 In foreign currencies   6,124    12.19      5,654      9.61     6,020   10.71
Credit entitles          6,376     5.00      5,841      6.00     5,949    5.78
 In EMU currencies       3,197     1.14      2,686      3.93     1,410    3.67
 in foreign currencies   3,179     8.88      3,155      7.76     4,539    6.44
Shareholders' funds        817                 828                 751
Other funds without 
costs                    2,336               2,169               1,685

TOTAL LIABILITIES       23,421     5.09     22,391      4.72    22,038    5.34

NET INTEREST INCOME/ATA            3.08                 3.33              3.37

(1) Balances in billions of pesetas

END


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