86KM Sg Issuer 26

RNS No 5651d
BANCO BILBAO VIZCAYA S.A.


                    THE BBV GROUP, THIRD QUARTER 1997

The BBV Group's business development in all areas was positive in the third
quarter of 1997. Total assets were more than 19.5 trillion pesetas, a growth of
23.3% year-on-year. Net attributable profit increased by more than 26%,
reaching 88,853 million pesetas. This growth stems from business development in
our domestic market as well as from our expansion abroad. Return on equity (ROE)
for the Group is 17.7% and is clearly following an upward path.

Particularly noteworthy during the quarter was the 72% acquisition of Banco de
Credito Argentino by Banco Frances Rio de la Plata, the Argentine bank in
which BBV has a 33% stake. The operation will be carried out via a merger by
absorption in which Banco Frances will take on the assets and liabilities of
Banco de Credito Argentino. The end result of this operation is that the BBV
Group will widen its client base and expand its business in Argentina while
simultaneously reinforcing its participation in the resulting bank, raising its
stake to over 40%.

Noteworthy in the domestic market was BBV's sale of 2.8% of Iberdrola, leaving
the Group's stake at 7.5%. The sale has been valued at approximately 46 billion
pesetas, which would give the Group capital gains of 22 billion pesetas.

Two main factors have enabled the BBV Group to mitigate the negative impact that
declining interest rates has had on the financial margins of banks and savings
banks. The first is that the BBV Group's business growth is higher than the
sector average, and the second is the contribution of BBV's Latin American
banks, whose margins are much higher than current margins in Spain. These two
factors combined have produced a net interest income of 408,190 million pesetas,
an increase of 34.3% over third quarter 1996.

Net fee income was up more than 50%, reaching 148,907 million pesetas. Notable
growth was registered in fees from mutual funds, stock services and
privatizations, where our Group has always been a major player.

Operating costs, as expressed in an efficiency ratio of 54.1%, were maintained
at a satisfactory level despite the negative effect of the incorporation of the
Latin American banks.

The non-performing loan ratio decreased to 3.18% from 3.62% in September 1996,
despite the incorporation of the Latin American banks which have much higher
ratios. Excluding the Latin American banks, the non-performing loan ratios
would be 2.29%, nearly one full point lower than the average of the financial
system (banks and savings).

The growth in resident sector loans in the thirth quarter, 11.7%, was far
superior to increases registered in previous quarters. Notable under this
heading was the increase in secured loans, personal loans and credit card
balances, found under "other term loans". Growth in demand and other loans as
well as commercial bills was more restrained as increased liquidity of small and
medium companies led to lesser demand.

END

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