Filed by Bowne Pure Compliance

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of April, 2007

Commission File Number: 001-12518

Banco Santander Central Hispano, S.A.

(Translation of registrant’s name into English)

Plaza de Canalejas, 1
28014 Madrid, Spain
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:


Form 20-F þ		Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):


Yes o		No þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):


Yes o		No þ

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:


Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Item 1

Press release

Santander’s attributable profit rose 21% to EUR
1.802 billion in the first quarter of 2007

§		Revenue rose by 18%, more than double the increase in costs, which grew by 7%, allowing operating income to rise by almost 30%.

§		Revenue growth was supported by strong activity in all businesses in Europe as well as in Latin America. Loans grew by 17% and customer funds 15%.

§		In Continental Europe, profit grew by 47% to EUR 1.317 billion, owing to growth in loans of 24% and in customer funds of 15%.

§		In Latin America, attributable profit increased by 20% in dollar terms to US $892 million, with growth of 21% in loans and in customer funds. In euros, attributable profit was EUR 681 million, up 10%.

§		Abbey’s attributable profit rose 20% to £201 million, with growth of 8% in loans and 1% in deposits in pounds sterling. In euros, attributable profit amounted to EUR 300 million, up 23%.

§		The 11 points difference between revenue and cost growth enabled efficiency to improve by 4.6 percentage points to 46.3%

§		The non–performing loan rate was 0.82%, a decline of 0.04 point. Coverage was 177%, eight points less than a year earlier.

§		All capital ratios improved in the first quarter. BIS Ratio was 13.22% and Tier I 7.64%.

§		In the last twelve months, the Group invested to grow its commercial capacities, with 652 new branches (up 6%) and 1,314 new ATMs (up 6%).

Madrid, April 27^th, 2007 – Grupo Santander registered attributable profit of EUR 1,802 million in the first quarter of 2007, an increase of 21% from EUR 1,493 million a year earlier. This result is a record for Santander, which this year celebrates the 150th anniversary of its founding.

Earnings in the first quarter of 2007 were underpinned by strong growth in all business units, which enabled an increase of the customer base and an improvement in business margins. At the same time, the Group continued to invest in its commercial capacities, growing the branch



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 – Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

network by 652 offices and 1,314 ATMs. The customer base grew by 8.2% and linked customers by 10.4%.

Earnings

The key factor in first quarter of 2007 results is the strong growth in business activity and the growing gap between the loan yield and the cost of funds, which enabled revenues to rise 11 points ahead of operating costs, 18% versus 7%. As a result, net operating income increased almost 30%. The limited growth in costs is especially noteworthy when considering the Group’s investments in new projects and in its retail networks. Santander’s global network now includes 10,978 branches, making it the largest retail bank distribution franchise in the world.

Insolvency provisions, which are in line with the two previous quarters, grew by 34% compared to the same period of last year, whilst tax provisions rose 33%. As a result, profit from ordinary activity was EUR 1,927 million, 22% higher.

Businesses in Continental Europe registered an operating margin growth of 41%, with an increase of 29% in revenue and of 12% in costs. Attributable profit for the quarter reached EUR 1,317 million, a record, up 47%. The greatest contribution came from the Santander branch network in Spain, with EUR 460 million, up 38%, followed by Santander Consumer Finance, with EUR 166 million, 32% higher, Banesto with EUR 163 million (up 25%, excluding the capital gains from the sale of Urbis) and Portugal with EUR 132 million, up 16%.

The Santander branch network in Spain focused on profitable growth, which enabled it to continue to improve its rates of growth in net interest income, which increased by 21%, three times the rise in costs (+6%). Moreover, the Santander branch network was able to bear the costs of eliminating income from fees on services to all linked customers, as well as the new groups included this year (self-employed customers, stores, students and immigrants). This performance enabled Santander branch network’s efficiency ratio to improve by 4.4 points, to 39.1%.



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

In Latin America, costs grew by 16%, due principally to investment being carried out in new projects and the branch networks in the main countries, but were still half the rate of growth in revenues of 27%, so that net operating income grew by 38% (all changes are in dollars, the operating currency). Attributable profit from the region grew by 20% to US $892 million, or by 10% in euros to EUR 681 million. Brazil made the largest contribution, with profit of $294 million, an increase of 24%, followed by Mexico, $204 million, up 20% and Chile, $171 million, up 25%.

Abbey’s results are in line with the framework laid out in its strategic plan, with growth of 7% in revenue and a reduction of 4% in costs, resulting in growth of 21% in net operating income and of 20% in attributable profit, measured in pounds. In euros, attributable profit for the quarter increased 23% to EUR 300 million, in line with the annual target of EUR 1,200 million.

By businesses, retail banking pretax profit increased 27% to EUR 2,334 million; Global Wholesale Banking rose 68% to EUR 795 million and Asset Management and Insurance increased 6% to EUR 167 million.

Global Wholesale Banking registered a sharp increase in activity, with revenues rising by 38% and costs by 11%. 75% of revenues stemmed from customer activity. Generic provisions in the business fell sharply in the first quarter, as a result of distributing part of the risk. Thus, gross profit grew by 68% with net operating income increasing 49%.

Business

Santander closed the first quarter with EUR 1,024,629 million in funds under management, an increase of 5%. Of this total, EUR 844,240 million is on the balance sheet, which grew by 4%. The rest were off-balance sheet customer funds, such as mutual funds and pensions.



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Group gross lending was EUR 539,108 million at the close of the first quarter, up 17%. Continental Europe accounted for 52% of this lending, the United Kingdom (Abbey) 36% and Latin America the remaining 12%.

In Continental Europe, lending grew by 24% to EUR 278,028 million, with increases in all countries and units. The Santander branch network in Spain increased lending by 16%, Banesto 28%, Portugal 6% and Santander Consumer Finance 26%. The Santander branch network in Spain registered growth in volumes as well as improved business margins. The success of the “We want to be your bank” programme, launched in 2006, has resulted in a 7% increase in linked customers in 12 months. Lending volume to individuals grew by 14% and to companies by 23%, with mortgage lending increasing at a rate of 15%.

Banesto lending to individuals grew by 18%, to companies by 31% and mortgage business by 18%. Santander Consumer incorporated Drive, the finance company acquired in the U.S., during the quarter. Without Drive’s figures, new lending at Santander Consumer Finance grew by 12%, with growth of 23% in the Nordic countries, 17% in Spain and 2% in Germany. The low growth in Germany is due to the one-time effect of the increase in VAT this year, which led to high consumer lending in the fourth quarter. In Portugal, Santander Totta registered growth of 24% in lending to SMEs and 10% to individuals.

Loan volume in Latin America came to EUR 59,399 million, an increase of 11% in euros and 21% in local currencies. Brasil, which opened 167 branches in the last 12 months and installed 350 automatic tellers, increased lending by 34%, with growth of 27% in lending to individuals, 34% to SMEs and companies. Mexico grew by 36%, with increases of 64% in lending to individuals, and 46% to SMEs and companies. In Chile, lending increased by 14%, with increases of 19% to individuals and 24% to SMEs.

Abbey continues to mark progress, closing the first quarter with loan volume of EUR 192,666 million, which represents growth of 11% in euros and 8% in pounds. Net mortgage production came to 1,400 million pounds, unchanged form the year-earlier period. Market share in new mortgage production is 9.4%.



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Total customer funds under management came to EUR 770,679 million at the end of March 2007, an increase of 15% from a year earlier. Balance sheet resources rose 18% to EUR 582,907 million. Mutual funds increased by 15%. Pension funds grew by just 3%, owing to the sale in 2006 of the pension fund manager in Peru, without which they would have grown by 17%.

In Continental Europe, total customer funds under management were EUR 306,442 million, up 15%. In Spain, which represents about 80% of the total, customer funds grew by 8% in the Santander branch network, by 18% at Banesto and 30% at Santander Consumer. In Portugal customer funds grew by 35%.

In Latin America, customer funds came to EUR 144,534 million, with growth of 13% en euros and 21% in local currency. Deposits grew by 11% and investment funds by 39% in local currency. By country, savings increased by 25% in Brazil, 8% in Mexico and 19% in Chile.

Abbey closed the first quarter with EUR 217,675 million in customer funds, an increase of 10% in euros and 8% in pounds. Total deposits grew by 4% and stock at the end of the quarter was 3% higher, accompanied by a significant improvement in margins. The mutual fund business grew by 27%.

Management and capital ratios

Efficiency: Revenue grew by 11 percentage points more than costs, driving improvement in the efficiency ratio. Costs and amortizations as a percentage of revenues were 46.3% at the end of the first quarter of 2007, compared to 50.9% a year earlier. Abbey registered the greatest improvement within the group, with the efficiency ratio improving to 50.8% at the end of the quarter from 56.8% a year earlier. In Continental Europe, the efficiency ratio was 35.9%, a 5.3-point improvement. In Latin American, efficiency was 42.1%, an improvement of 4.3 points.

NPLs: Non-performing loan criteria in Portugal were aligned with those of the rest of the Group during this quarter, which has had an impact on the final total ratios. The coverage ratio fell to 177% from 185% for the Group; without the effect of the Portugal alignment, it would have been 184%. The Group NPL rate fell to 0.82% from 0.86%, and would have been 0.79% on a like-for-like basis. The Group’s generic funds, which can be considered reserves for the future, came to EUR 5,778 million.



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Capital: The Group’s eligible capital came to EUR 62,510 million at the end of the quarter, with a surplus of EUR 24,675 million above the required minimum. With this capital base, the BIS ratio came to 13.22%, Tier I capital to 7.64% and core capital to 5.97%.

The Share and dividend

The Santander share ended the first quarter at EUR 13.36, up 10.9% from a year earlier. Santander’s market capitalisation came to EUR 83,557 million at the end of the quarter. Santander is the largest company in Spain and the leading bank in the euro zone in terms of market value.

On May 1st the fourth and final dividend (of EUR 0.199913 a share) charged against 2006 earnings will be paid, with which the total dividend for the year comes to EUR 0.520625, an increase of 25% for the second consecutive year. Return per share by dividend was 4.27%. In the last ten years, the dividend per share has grown by an accumulated annual 13%. In 2006, profit distributed to shareholders came to EUR 3,256 million, or 49.47% of ordinary attributable profit, a record for Santander and for Spain.

Santander has 2,312,076 shareholders. 134,638 persons work in the Group, serving 69 million customers in 10,978 branches.

More information: www.santander.com



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Income statement

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Net interest income (w/o dividends)		3,460			2,883			577			20.0
Dividends		48			50			(2	)		(3.1	)
Net interest income		3,509			2,933			576			19.6
Income from companies accounted for by the equity method		60			131			(70	)		(53.9	)
Net fees		2,087			1,738			350			20.1
Insurance activity		95			66			29			43.4
Commercial revenue		5,751			4,867			884			18.2
Gains (losses) on financial transactions		492			408			84			20.5
Gross operating income		6,243			5,276			968			18.3
Income from non-financial services		34			38			(3	)		(8.8	)
Non-financial expenses		(18	)		(15	)		(3	)		19.0
Other operating income		(34	)		(21	)		(13	)		63.6
Operating expenses		(2,950	)		(2,744	)		(206	)		7.5
General administrative expenses		(2,642	)		(2,464	)		(179	)		7.2
Personnel		(1,551	)		(1,483	)		(68	)		4.6
Other administrative expenses		(1,092	)		(981	)		(111	)		11.3
Depreciation and amortisation		(308	)		(280	)		(28	)		9.8
Net operating income		3,275			2,533			742			29.3
Impairment loss on assets		(683	)		(512	)		(171	)		33.4
Loans		(670	)		(501	)		(169	)		33.8
Goodwill		—			—			—			—
Other assets		(13	)		(11	)		(2	)		16.3
Other income		(90	)		(12	)		(78	)		653.3
Profit before taxes		2,503			2,009			494			24.6
Tax on profit		(576	)		(433	)		(142	)		32.9
Net profit from ordinary activity		1,927			1,576			351			22.3
Net profit from discontinued operations		—			79			(79	)		(100.0	)
Net consolidated profit		1,927			1,655			272			16.4
Minority interests		125			162			(37	)		(22.6	)
Attributable profit to the Group		1,802			1,493			309			20.7

Customer loans

Million euros


					Variation
	31.03.07		31.03.06		Amount			%			31.12.06
Public sector		5,604		5,465		139			2.5			5,329
Other residents		204,943		162,722		42,222			25.9			199,994
Commercial bills		16,173		14,372		1,801			12.5			17,276
Secured loans		114,888		89,385		25,503			28.5			110,863
Other loans		73,882		58,964		14,918			25.3			71,854
Non-resident sector		328,561		290,952		37,609			12.9			326,187
Secured loans		192,452		175,682		16,770			9.5			191,724
Other loans		136,109		115,270		20,838			18.1			134,463
Gross loans and credits		539,108		459,139		79,969			17.4			531,509
Loan-loss allowances		8,297		7,742		556			7.2			8,163
Net loans and credits		530,811		451,397		79,414			17.6			523,346
Pro memoria: Doubtful loans		4,910		4,362		549			12.6			4,613
Public sector		1		7		(7	)		(90.7	)		18
Other residents		1,264		1,033		231			22.3			1,212
Non-resident sector		3,646		3,321		324			9.8			3,383



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Customer funds under management

Million euros


					Variation
	31.03.07		31.03.06		Amount			%			31.12.06
Public sector		16,012		15,121		891			5.9			15,266
Other residents		92,958		83,179		9,779			11.8			94,750
Demand deposits		52,000		49,120		2,880			5.9			55,050
Time deposits		26,013		18,460		7,553			40.9			24,670
REPOs		14,945		15,600		(655	)		(4.2	)		15,030
Non-resident sector		218,140		205,954		12,186			5.9			221,206
Demand deposits		118,573		115,499		3,074			2.7			119,861
Time deposits		71,171		71,255		(84	)		(0.1	)		72,258
REPOs		26,377		16,365		10,012			61.2			26,343
Public Sector		2,021		2,835		(815	)		(28.7	)		2,744
Customer deposits		327,111		304,255		22,856			7.5			331,223
Debt securities		222,441		160,700		61,741			38.4			204,069
Subordinated debt		33,355		28,984		4,371			15.1			30,423
On-balance-sheet customer funds		582,907		493,938		88,968			18.0			565,715
Mutual funds		131,147		114,174		16,974			14.9			119,838
Pension funds		29,996		29,190		806			2.8			29,450
Managed portfolios		19,245		16,781		2,464			14.7			17,835
Savings-insurance policies		7,383		14,632		(7,249	)		(49.5	)		6,385
Other customer funds under management		187,772		174,776		12,996			7.4			173,509
Customer funds under management		770,679		668,715		101,964			15.2			739,223

Shareholders’ equity and minority interests

Million euros


							Variation
	31.03.07			31.03.06			Amount			%			31.12.06
Capital stock		3,127			3,127			—			—			3,127
Additional paid-in surplus		20,370			20,370			—			—			20,370
Reserves		20,124			14,976			5,148			34.4			12,352
Treasury stock		(102	)		(67	)		(35	)		52.8			(127	)
On-balance-sheet shareholders’ equity		43,520			38,407			5,113			13.3			35,722
Attributable profit		1,802			1,493			309			20.7			7,596
Interim dividend distributed		(2,006	)		(1,744	)		(262	)		15.0			(1,337	)
Shareholders’ equity at period-end		43,316			38,156			5,160			13.5			41,981
Interim dividend not distributed		(1,250	)		(861	)		(390	)		45.3			(1,919	)
Shareholders’ equity		42,066			37,295			4,771			12.8			40,062
Valuation adjustments		2,384			3,191			(807	)		(25.3	)		2,871
Minority interests		2,055			2,944			(889	)		(30.2	)		2,221
Preferred securities		670			1,293			(623	)		(48.2	)		668
Preferred securities in subordinated debt		7,483			6,469			1,013			15.7			6,837
Shareholders’ equity and minority interests		54,658			51,193			3,465			6.8			52,658

Computable capital and BIS ratio

Million euros


					Variation
	31.03.07		31.03.06		Amount			%		31.12.06
Computable basic capital		36,141		32,909		3,232			9.8		35,539
Computable supplementary capital		26,369		21,978		4,391			20.0		24,237
Computable capital		62,510		54,886		7,623			13.9		59,776
Risk-weighted assets		472,937		427,607		45,330			10.6		478,733
BIS ratio		13.22		12.84		0.38					12.49
Tier 1		7.64		7.70		(0.06	)				7.42
Core capital		5.97		5.96		0.01					5.91
Shareholders’ equity surplus		24,675		20,678		3,997			19.3		21,478



Comunicación Externa. Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11 — Fax: 34 91 257 10 39 Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail

Key consolidated data (LOGO)

Key consolidated data


					Variation
	Q1’ 07		Q1’ 06		Amount		(%)		2006
Balance sheet (Million euros)
Total assets		844,240		814,738		29,502		3.6		833,873
Customer loans		530,811		451,397		79,414		17.6		523,346
Customer funds under management		770,679		668,715		101,964		15.2		739,223
Shareholders’ equity		42,066		37,295		4,771		12.8		40,062
Total managed funds		1,024,629		974,882		49,747		5.1		1,000,996
Income statement (Million euros)
Net interest income (w/o dividends)		3,460		2,883		577		20.0		12,084
Commercial revenue		5,751		4,867		884		18.2		20,436
Gross operating income		6,243		5,276		968		18.3		22,615
Net operating income		3,275		2,533		742		29.3		11,369
Net profit from ordinary activity		1,927		1,576		351		22.3		6,790
Attributable profit to the Group		1,802		1,493		309		20.7		6,582	*
Profitability and efficiency (%)
EPS (euro)		0.2887		0.2390						1.0534	*
Diluted EPS (euro)		0.2874		0.2380						1.0477	*
ROE		18.48		17.12						18.54	*
ROA		0.92		0.81						0.88	*
RORWA		1.61		1.57						1.60	*
Efficiency ratio		46.32		50.88						48.53
Capital and NPL ratios (%)
BIS ratio		13.22		12.84						12.49
Tier I		7.64		7.70						7.42
NPL ratio		0.82		0.86						0.78
NPL coverage		176.70		184.80						187.23
Market capitalisation and shares
Shares outstanding (millions at period-end)		6,254		6,254						6,254
Share price (euros)		13.36		12.05						14.14
Market capitalisation (million euros)		83,557		75,364						88,436
Book value (euro)		6.73		5.96						6.41
Price / Book value (X)		1.99		2.02						2.21
P/E ratio (X)		11.57		12.60						13.42	*
Other data
Shareholders (number)		2,312,076		2,398,089						2,310,846
Number of employees		134,638		126,530						129,749
Continental Europe		46,308		44,155						44,216
United Kingdom (Abbey)		16,616		18,622						17,146
Latin America		69,958		62,259						66,889
Financial management and equity stakes		1,756		1,494						1,498
Number of branches		10,978		10,326						10,852
Continental Europe		5,829		5,444						5,772
United Kingdom (Abbey)		711		712						712
Latin America		4,438		4,170						4,368

(*) w/o net extraordinary gains and allowances.

Note: The financial information in this report has not been audited, but it was approved by the Board at its meeting on April 23, 2007, following a favourable report from the Audit and Compliance Committee on April 19, 2007. The Committee verified that the information for the quarter was based on the same principles and practices as those used to draw up the annual financial statements.

January — March 2007 3

Highlights of the quarter

Highlights of the Group

•		Earnings per share were EUR 0.2887 in the first quarter, 20.8% more than in the same period of 2006, and 10.3% above that in the fourth quarter (excluding capital gains).

•		Yet another record quarterly profit: attributable profit was 20.7% higher at EUR 1,802 million, 10.2% more than in the fourth quarter of 2006 (excluding capital gains).

•		All geographic areas registered notable rises in profits. Continental Europe, Abbey and Latin America increased their attributable profit by more than 20% in their respective currencies of management.

•		The ROE increased again (to 18.5%; + 1.4 p.p,) and the RoRWA by 4 b.p. to 1.61%.

•		The rise in the Group’s profit was due to a strong increase in gross operating income (+18.3%), spurred by the most recurrent revenues: net interest income (+19.6%), and fees coupled with revenues from insurance (+21.0%)

•		The selective rise in costs, below that of revenues, widened the “jaws” (the difference between the growth in gross operating income and in costs) to 11 p.p. and improved the efficiency ratio by 4.6 p.p. to 46.3%.

•		Revenue growth together with the improvement in the efficiency ratio pushed up net operating income by 29.3% over the first quarter of 2006 and 12.4% over the fourth quarter.

•		Loan-loss provisions were in line with the last two quarters. They were higher than in the first quarter of 2006 because of greater lending and the change in mix toward more profitable segments.

•		Credit risk quality continued to be excellent: the ratio of non-performing loans was 0.82% and coverage was 177%. The Group’s generic fund reached EUR 5,778 million at the end of March.

•		Solid capital ratios: the BIS ratio stood at 13.22% and core capital at 5.97%, above the figures at the end of 2006.

•		A third interim dividend of EUR 0.106904 per share charged to the profits generated in 2006 was paid on February 1, 2007. A fourth dividend of EUR 0.199913 will be paid as of May 1. The total dividend charged to 2006’s profit, which will be proposed to the AGM, is EUR 0.520625 per share, 25% more than in 2005.

•		Standard & Poor’s again upgraded its rating of the Group to AA and in April Moody’s upgraded the Group’s rating to Aa1, maintaining the financial strength rating.

Rating agencies

Standard & Poor’s and Fitch Ratings upgraded the Group’s ratings in 2006 and also those of its main affiliates, while Moody’s confirmed them and DBRS began to cover the Group. Standard & Poor’s and Moody’s again in 2007 upgraded the Group’s rating to AA and Aa1 respectively. This made us one of the best rated European banks on the basis of its long-term rating.


	Long	Short	Financial
April 2007	term	term	strength		Outlook
Standard & Poor’s	AA	A1 +			Stable
Fitch Ratings	AA	F1 +		A/B	Stable
Moody’s	Aa1	P1		B	Stable
DBRS	AA	R1 (high)			Stable

The strong diversification by revenues and risks, the capacity to generate recurrent revenues, Abbey’s performance, the high quality of assets and the improvement in the capital ratios were some of the strengths pointed out by the rating agencies in their positive assessments.

4 January — March 2007

Highlights of the quarter (LOGO)

Highlights of the segments

Principal segments (geographic)

•		Continental Europe generated attributable profit of EUR 1,317 million, 46.7% more than in the first quarter of 2006 and accounting for 57% of the Group’s total from its operating areas (+44.4% excluding Drive).

		This growth was due to the strong rise in revenues (+29.0%), well above the increase in costs (+11.8%). As a result, the efficiency ratio was 5 p.p. better at 35.9% and net operating income was 41.0% higher. All units did well, particularly the retail banks in Spain and wholesale business.

•		In the UK, Abbey contributed attributable profit of EUR 300 million, 22.8% higher and 13% of the total of the operating areas. Net profit from ordinary activity (i.e. excluding the net contribution in 2006 of the life assurance business that was sold) increased 40.8%.

		The main factors behind the growth in profits and the notable improvement in efficiency and the return were the faster rise in gross operating income (+7.0% y-o-y in sterling), the 4.4% reduction in costs.

•		Latin America’s attributable profit was EUR 681 million (30% of the Group’s total), 10.1% more than in the first quarter of 2006 (+20.2% excluding the exchange rate impact).

		This growth was the result of stronger business, particularly with individual customers, SMEs and companies. Gross operating income grew at a much faster pace than costs and as a result net operating income increased 26.1% (+37.5% excluding the exchange rate) and absorbed the larger volume of provisions allocated a a result of greater lending and the change in business mix. In dollars, the currency used to manage the area, attributable profit was $892 million.

In short, all three areas performed well in the first quarter and achieved record gross operating income, net operating income and attributable profit.

There is more information on these segments in pages 21 to 37 of this report.

Secondary level (businesses)

•		Retail Banking, which generated 82% of the total gross operating income and 71% of profit before tax, continued to be the driving force of the Group’s growth. Gross operating income rose 19.6%, net operating income 31.9% and profit before tax 27.2% (to EUR 2,334 million).

		Continental Europe’s profit before tax rose 27.2%, Abbey Retail 35.5% in euros (+32.5% in sterling) and Latin America 22.6% (+34.1% excluding the exchange rate impact).

•		Global Wholesale Banking contributed 14% of the total gross operating income and 24% of profit before tax (+68.5% to EUR 795 million).

		This performance was driven by a rise of 37.6% in gross operating income, particularly from customer business related to advisory activities, structured financing and trading of securities. Profit growth was strengthened by a smaller rise in costs (the efficiency ratio reached 22.2%) and lower provisions because of the release of generic provisions as a result of the proximity to the final structure of the large operations conducted in 2006.

•		Asset Management and Insurance profit before tax was 5.7% higher (EUR 167 million in the first quarter of 2007). Total revenue generated by all the products managed by this area (mutual and pension funds and insurance) was EUR 967 million, 17% more than in the first quarter of 2006.

		Of note among the global businesses integrated into this segment was Insurance, whose gross and net operating income and profit increased by around 40%. Asset Management was negatively affected by regulatory pressure and the consequent smaller contribution from pension business in Latin America, particularly Mexico.

There is more detail on these segments in page 40 to 45 of this report.

enero — marzo 2007 5

Consolidated financial report

General Background

The global economy, which grew strongly in the last part of 2006 (by around 5%), continued to expand in 2007. Growth was not as strong but was more balanced, particularly in the most developed economies. US growth slowed down while Japan’s and Europe’s was more solid. The emerging economies grew briskly, particularly Asia.

US growth has been decelerating since last spring (2.5% annualised in the fourth quarter of 2006) because of the weaker housing market. It has not fed through, however, to private consumption. Inflation has come down to around 2% from 3.5% last summer thanks to lower oil prices. The Fed has held its rate at 5.25% since June, although it has expressed some concern about inflation.

Latin America expanded 5.2% in the last part of 2006 and with solid fundamentals: inflation was relatively moderate at 5.6%, general government budgets are almost balanced and the current account is in surplus (1.8% of GDP). Exchange rates have held firm, enabling central banks, such as Brazil’s, to continue to lower interest rates.

The Euro zone grew 3.3% in the fourth quarter of 2006, above the average for the year (2.8%). The first indicators suggest the expansion will continue. Inflation consolidated at below the 2% reference of the European Central Bank (ECB). The ECB’s repo rate stood at 3.75% in the first quarter and the euro appreciated a little against the dollar ($1.33 per euro).

The Spanish economy accelerated a little and grew 4% in the fourth quarter year-on-year (3.9% for the whole of 2006), a trend that continued in early 2007. Inflation has fallen to around 2.5%. The UK economy grew 2.7% and inflation was 2.7% at the start of 2007 (3% in 2006). The Bank of England raised its base rate from 5% to 5.25% in January.

Grupo Santander results

Attributable profit was EUR 1,802 million in the first quarter, 20.7% more than in the same period of 2006. Earnings per share were EUR 0.2887, up 20.8%, and the diluted earnings per share were EUR 0.2874.

As a result, profitability improved significantly. The ROE was 1.4 p.p. higher than in the first quarter of 2006 and the RoRWA was 1.61% (+4 b.p.).

The four main notes were:

•		Solid growth in revenues: commercial revenue grew at a faster pace (+18.2%), driven by net interest income excluding dividends and net fees.

•		Strong improvement in efficiency: selective growth in costs in Continental Europe and Latin America, well below the rise in revenues, and the decline in costs at Abbey produced notably better efficiency ratios in all segments. The Group’s ratio was 46.3% (50.9% in the first quarter of 2006).

•		The 33.8% increase in loan-loss provisions, in line with forecasts, was due to the larger volume of lending and the change in business mix (reflected in a higher risk premium). Profit before tax was 24.6% higher.

•		The quality and sustainability of results: the Group’s performance was due to all its operating areas. Their combined net operating income rose 33.4% and profit before tax increased 33.7%.

In order to appropriately interpret these results, the following three aspects should be taken into account:

•

In line with accounting regulations, the results of the businesses sold in 2006 are in “net profit from discontinued operations”. This

Exchange rates: 1 euro / currency parity


	Average (income statement)				Period-end (balance sheet)
	Q1’ 07		Q1’ 06		31.03.07		31.12.06		31.03.06
US$		1.3106		1.2019		1.3318		1.3170		1.2104
Pound sterling		0.6706		0.6860		0.6798		0.6715		0.6964
Brazilian real		2.7613		2.6350		2.6976		2.8118		2.6459
New Mexican peso		14.4384		12.7386		14.6378		14.2881		13.2327
Chilean peso		708.3056		632.7446		716.2420		700.3148		637.2756
Venezuelan bolivar		2,814.3645		2,580.7784		2,859.7741		2,827.9941		2,599.0919
Argentine peso		4.0797		3.7000		4.1635		4.0679		3.7447

6 January — March 2007

Consolidated financial report (LOGO)

Income statement


							Variation
Million euros	Q1’ 07			Q1’ 06			Amount			(%)
Net interest income (w/o dividends)		3,460			2,883			577			20.0
Dividends		48			50			(2	)		(3.1	)
Net interest income		3,509			2,933			576			19.6
Income from companies accounted for by the equity method		60			131			(70	)		(53.9	)
Net fees		2,087			1,738			350			20.1
Insurance activity		95			66			29			43.4
Commercial revenue		5,751			4,867			884			18.2
Gains (losses) on financial transactions		492			408			84			20.5
Gross operating income		6,243			5,276			968			18.3
Income from non-financial services		34			38			(3	)		(8.8	)
Non-financial expenses		(18	)		(15	)		(3	)		19.0
Other operating income		(34	)		(21	)		(13	)		63.6
Operating expenses		(2,950	)		(2,744	)		(206	)		7.5
General administrative expenses		(2,642	)		(2,464	)		(179	)		7.2
Personnel		(1,551	)		(1,483	)		(68	)		4.6
Other administrative expenses		(1,092	)		(981	)		(111	)		11.3
Depreciation and amortisation		(308	)		(280	)		(28	)		9.8
Net operating income		3,275			2,533			742			29.3
Impairment loss on assets		(683	)		(512	)		(171	)		33.4
Loans		(670	)		(501	)		(169	)		33.8
Goodwill		—			—			—			—
Other assets		(13	)		(11	)		(2	)		16.3
Other income		(90	)		(12	)		(78	)		653.3
Profit before taxes		2,503			2,009			494			24.6
Tax on profit		(576	)		(433	)		(142	)		32.9
Net profit from ordinary activity		1,927			1,576			351			22.3
Net profit from discontinued operations		—			79			(79	)		(100.0	)
Net consolidated profit		1,927			1,655			272			16.4
Minority interests		125			162			(37	)		(22.6	)
Attributable profit to the Group		1,802			1,493			309			20.7
Pro memoria:
Average total assets		840,804			817,676			23,128			2.8
Average shareholders’ equity		39,008			34,899			4,109			11.8

January — March 2007 7

Consolidated financial report

Quarterly


	2006												2007
Million euros	Q1			Q2			Q3			Q4			Q1
Net interest income (w/o dividends)		2,883			2,921			3,079			3,200			3,460
Dividends		50			187			98			69			48
Net interest income		2,933			3,109			3,177			3,269			3,509
Income from companies accounted for by the equity method		131			110			145			41			60
Net fees		1,738			1,756			1,848			1,881			2,087
Insurance activity		66			81			72			79			95
Commercial revenue		4,867			5,056			5,242			5,270			5,751
Gains (losses) on financial transactions		408			508			626			637			492
Gross operating income		5,276			5,565			5,868			5,907			6,243
Income from non-financial services		38			10			43			28			34
Non-financial expenses		(15	)		(17	)		(14	)		(24	)		(18	)
Other operating income		(21	)		(19	)		(24	)		(56	)		(34	)
Operating expenses		(2,744	)		(2,706	)		(2,785	)		(2,941	)		(2,950	)
General administrative expenses		(2,464	)		(2,429	)		(2,500	)		(2,632	)		(2,642	)
Personnel		(1,483	)		(1,466	)		(1,488	)		(1,567	)		(1,551	)
Other administrative expenses		(981	)		(963	)		(1,012	)		(1,065	)		(1,092	)
Depreciation and amortisation		(280	)		(276	)		(285	)		(310	)		(308	)
Net operating income		2,533			2,833			3,088			2,915			3,275
Impairment loss on assets		(512	)		(621	)		(710	)		(708	)		(683	)
Loans		(501	)		(599	)		(692	)		(675	)		(670	)
Goodwill		—			(5	)		—			(8	)		—
Other assets		(11	)		(17	)		(18	)		(25	)		(13	)
Other income		(12	)		23			(26	)		(26	)		(90	)
Profit before taxes (w/o capital gains)		2,009			2,235			2,352			2,180			2,503
Tax on profit		(433	)		(458	)		(647	)		(448	)		(576	)
Net profit from ordinary activity		1,576			1,776			1,705			1,733			1,927
Net profit from discontinued operations		79			115			135			25			—
Net consolidated profit (w/o capital gains)		1,655			1,891			1,840			1,758			1,927
Minority interests		162			169			109			123			125
Attributable profit to the Group (w/o capital gains)		1,493			1,723			1,731			1,635			1,802
Net extraordinary gains and allowances		—			—			—			1,014			—
Attributable profit to the Group		1,493			1,723			1,731			2,649			1,802

8 January — March 2007

Consolidated financial report (LOGO)

Net fees and insurance business


					Variation
Million euros	Q1’ 07		Q1’ 06		Amount			(%)
Commissions for services		1,230		1,040		190			18.3
Credit and debit cards		181		164		17			10.6
Insurance		347		250		97			38.9
Account management		140		132		8			6.2
Commercial bills		55		55		(1	)		(0.9	)
Guarantees and other contingent liabilities		87		72		15			20.9
Other transactions		420		367		52			14.3
Mutual & pension funds		525		510		15			2.9
Securities services		333		188		145			77.2
Net fees		2,087		1,738		350			20.1
Insurance activity		95		66		29			43.4
Net fees and insurance business		2,182		1,804		379			21.0

enables management of recurrent businesses to be better tracked throughout the income statement.

•		Drive’s results began to be consolidated in the first quarter of 2007. Its impact on the growth in gross operating income was 2.7%, 0.7% on costs and 1.4% on the Group’s attributable profit.

•		Comparisons between growth in gross operating income and costs are negatively affected by the average exchange-rate performance of Latin American currencies and of the dollar against the euro, and positively by sterling’s evolution. The impact as regards the euro is -4 p.p. for the Group’s total, +2-3 p.p. at Abbey and -10 p.p. in Latin America.

Net interest income amounted to EUR 3,509 million, the ninth consecutive quarterly rise and 19.6% more than the first quarter of 2006.

Excluding dividends and the cost of preferred shares and preferred securities, net interest income growth was similar (+19%) and was largely due to greater business volumes and to some extent the improved spreads with customers in some units (Santander Branch Network, Banesto, Mexico, Abbey ...).

Net fees and insurance activity increased 21.0%. Of particular note were Continental Europe because of the good performance of the Santander Branch Network (greater activity and non-service fees), Banesto’s improved growth and the excellent quarter for Global Wholesale Banking. Latin America’s rose by close to 25% excluding the exchange-rate impact, with big rises in all lines except from pension funds. By products, fees from securities and from greater placement of insurance products, as well as from cards, were noteworthy.

Income by the equity accounted method declined 53.9% because of a lower contribution from Cepsa, partly because of an accounting change which meant restructuring the equity stake (part of this decline was offset by reduced minority interests). This item included the income from the stake in Sovereign Bancorp.

Commercial revenue rose 18.2% to EUR 5,751 million. This pace was maintained in gross operating income (+18.3%), after including EUR 492 million from gains on financial transactions (EUR +20.5%) The growth in the latter was due to both the good performance of treasury revenues from customers as well as the sale of some portfolios, taking advantage of the good conditions in the markets.

Total operating expenses continued to increase (7.5%) at a much slower pace than gross operating income. Personnel costs rose 4.6%, general ones 11.3% and depreciation and amortisation 9.8%.

All business units in Europe and Latin America, as well as global ones, registered growth consistent with controlled costs and their expansion projects, meeting the efficiency targets of their different development plans. Abbey’s costs were lower than in the first and fourth quarters of 2006.

January — March 2007 9

Consolidated financial report

Operating expenses


					Variation
Million euros	Q1’ 07		Q1’ 06		Amount			(%)
Personnel expenses		1,551		1,483		68			4.6
General expenses		1,092		981		111			11.3
Information technology		99		104		(5	)		(4.3	)
Communications		85		94		(9	)		(9.8	)
Advertising		136		116		20			16.8
Buildings and premises		212		218		(7	)		(3.1	)
Printed and office material		33		27		6			21.8
Taxes (other than profit tax)		73		56		17			29.6
Other expenses		454		365		89			24.4
Personnel and general expenses		2,642		2,464		179			7.2
Depreciation and amortisation		308		280		28			9.8
Total operating expenses		2,950		2,744		206			7.5

This performance enabled the “jaws” (the difference between the growth in gross operating income and in costs) to be 11 p.p. and was reflected in a strong improvement of 4.6 p.p. in the Group’s efficiency ratio. All business areas improved.

Net operating income grew 29.3% to EUR 3,275 million, with growth in all operating areas. The three main segments registered growth of more than 20% in euros: Continental Europe (+41.0%), Latin America (+26.1%) and Abbey (+24.0%).

The net impairment loss on assets was EUR 683 million, of which EUR 670 million were net loan-loss provisions. This figure was in line with that of the previous two quarters, but was 33.8% higher than in the first quarter of 2006. This was partly due to the larger provisions in Latin America and the perimeter effect from Drive’s consolidation.

“Other income” was EUR 90 million negative in the first quarter (-EUR 12 million in the same period of 2006).

Profit before tax was 24.6% higher at EUR 2,503 million. This rise did not fully feed through to attributable profit because of the higher tax charge (from Mexico) and the lower result in discontinued operations (basically Urbis and Abbey’s life assurance business). The latter registered a net profit of EUR 79 million in the first quarter of 2006. Minority interests had a slightly more favourable impact (reduced figure from Cepsa and Urbis and higher from the placement in the US market of 7.23% of Santander Chile).

Attributable profit was EUR 1,802 million. 20.7% higher.

Net loan loss provisions


							Variation
Million euros	Q1’ 07			Q1’ 06			Amount			(%)
Non performing loans		812			654			158			24.2
Country-risk		36			(9	)		45			—
Recovery of written-off assets		(178	)		(144	)		(33	)		23.2
Total		670			501			169			33.8

10 January — March 2007

Consolidated financial report (LOGO)

Balance sheet


							Variation
Million euros	31.03.07			31.03.06			Amount			(%)			31.12.06
Assets
Cash on hand and deposits at central banks		15,001			12,089			2,912			24.1			13,835
Trading portfolio		164,849			153,965			10,884			7.1			170,423
Debt securities		73,040			75,559			(2,518	)		(3.3	)		76,737
Loans and credits		32,668			28,746			3,922			13.6			30,583
Equities		11,253			10,676			577			5.4			13,491
Other		47,887			38,984			8,903			22.8			49,612
Other financial assets at fair value		15,625			47,269			(31,644	)		(66.9	)		15,371
Loans and credits		8,002			6,446			1,556			24.1			7,973
Other		7,623			40,823			(33,200	)		(81.3	)		7,398
Available-for-sale financial assets		34,071			73,025			(38,955	)		(53.3	)		38,698
Debt securities		25,842			66,432			(40,589	)		(61.1	)		32,727
Equities		8,228			6,594			1,635			24.8			5,971
Loans		561,544			472,658			88,887			18.8			544,049
Deposits at credit institutions		58,057			46,440			11,617			25.0			45,361
Loans and credits		490,141			416,205			73,936			17.8			484,790
Other		13,346			10,012			3,334			33.3			13,897
Investments		4,912			3,076			1,836			59.7			5,006
Intangible assets and property and equipment		12,687			12,162			526			4.3			12,555
Goodwill		14,373			14,025			349			2.5			14,513
Other		21,178			26,470			(5,291	)		(20.0	)		19,423
Total assets		844,240			814,738			29,502			3.6			833,873
Liabilities and shareholders’ equity
Trading portfolio		126,017			112,684			13,333			11.8			123,996
Customer deposits		14,306			13,430			876			6.5			16,572
Marketable debt securities		22,478			17,247			5,232			30.3			17,522
Other		89,233			82,007			7,226			8.8			89,902
Other financial liabilities at fair value		12,513			13,314			(800	)		(6.0	)		12,411
Customer deposits		250			261			(12	)		(4.5	)		273
Marketable debt securities		12,263			13,052			(789	)		(6.0	)		12,138
Other		—			—			—			—			—
Financial liabilities at amortized cost		614,256			569,114			45,142			7.9			605,303
Due to central banks and credit institutions		61,073			105,255			(44,182	)		(42.0	)		73,345
Customer deposits		312,555			290,563			21,992			7.6			314,377
Marketable debt securities		187,699			130,401			57,298			43.9			174,409
Subordinated debt		33,355			28,984			4,371			15.1			30,423
Other financial liabilities		19,574			13,911			5,662			40.7			12,749
Insurance liabilities		12,030			44,569			(32,538	)		(73.0	)		10,704
Provisions		17,597			19,535			(1,937	)		(9.9	)		19,227
Other liability accounts		14,651			10,800			3,851			35.7			14,491
Preferred securities		670			1,293			(623	)		(48.2	)		668
Minority interests		2,055			2,944			(889	)		(30.2	)		2,221
Equity adjustments by valuation		2,384			3,191			(807	)		(25.3	)		2,871
Capital stock		3,127			3,127			—			—			3,127
Reserves		40,393			35,279			5,113			14.5			32,595
Attributable profit to the Group		1,802			1,493			309			20.7			7,596
Less: dividends		(3,256	)		(2,605	)		(651	)		25.0			(1,337	)
Total liabilities and shareholders’ equity		844,240			814,738			29,502			3.6			833,873

January — March 2007 11

Consolidated financial report

Customer loans


					Variation
Million euros	31.03.07		31.03.06		Amount			(%)			31.12.06
Public sector		5,604		5,465		139			2.5			5,329
Other residents		204,943		162,722		42,222			25.9			199,994
Commercial bills		16,173		14,372		1,801			12.5			17,276
Secured loans		114,888		89,385		25,503			28.5			110,863
Other loans		73,882		58,964		14,918			25.3			71,854
Non-resident sector		328,561		290,952		37,609			12.9			326,187
Secured loans		192,452		175,682		16,770			9.5			191,724
Other loans		136,109		115,270		20,838			18.1			134,463
Gross loans and credits		539,108		459,139		79,969			17.4			531,509
Loan-loss allowances		8,297		7,742		556			7.2			8,163
Net loans and credits		530,811		451,397		79,414			17.6			523,346
Pro memoria: Doubtful loans		4,910		4,362		549			12.6			4,613
Public sector		1		7		(7	)		(90.7	)		18
Other residents		1,264		1,033		231			22.3			1,212
Non-resident sector		3,646		3,321		324			9.8			3,383

Consolidated Balance Sheet

Assets under management at the end of March amounted to EUR 1,024,629 million, 5.1% more than in the first quarter of 2006. On-balance sheet funds were EUR 844,240 million (82% of the total) and off-balance sheet funds (mutual and pension funds and managed portfolios) accounted for the rest.

In order to correctly interpret this figure, two effects have to be taken into account. On the one hand, a slightly positive perimeter effect on lending from the incorporation, at the end of 2006, of the US company Drive and, on the other, the negative impact on funds of the businesses sold in the last 12 months (Abbey’s life assurance business, pension funds in Peru and the business in Bolivia). There is also a negative exchange-rate impact (calculated on the basis of the exchange rates at the end of Q106 and Q107) from the depreciation of the dollar and of the main Latin American currencies against the euro. The overall impact on the changes of balances with customers (loans and funds) was 1-2 p.p. negative.

Total gross lending stood at EUR 539,108 million, 17.4% more year-on-year (+17.1% deducting the perimeter effects and the exchange rate). The rise in the first quarter over the end of 2006, excluding the exchange-rate impact, was 2%.

Loans to other resident sectors increased 25.9%, with secured loans up 28.5%, commercial bills 12.5% and other loans 25.3%. These increases reflect the good performance of lending balances with individual customers and SMEs and, to a lesser extent, certain corporate operations moving towards their definitive structure. Lending to the non-resident sector rose 12.9%.

12 January — March 2007

Consolidated financial report (LOGO)

As regards the geographic distribution (principal segments), Continental Europe’s loans grew 23%, excluding securitisations. In Spain, the Santander Branch Network’s lending rose 16% and Banesto’s 28%, while Santander Consumer Finance’s increased 26% (+19% excluding Drive) and Portugal’s 6%.

Abbey’s balances were 11% higher in euros (+8% in sterling) and Latin America’s 11% in euros. In local currency growth was 21%, with significant rises in Brazil (+34%), Mexico (+36%), excluding the IPAB, the former mortgage portfolio and restructured loans, and Chile (+14%).

At the end of March, Continental Europe accounted for 52% of the Group’s lending, Abbey 36% and Latin America 12%.

Total customer funds amounted to EUR 770,679 million, 15.2% more than in March 2006. Managed funds rose 5% in the first quarter of 2007 excluding the exchange-rate impact.

Deposits excluding repos increased 4.9% in the last 12 months, marketable securities 38.4% and subordinated debt 15.1%. On the other hand, mutual funds increased 14.9% year-on-year, pension funds 2.8% and savings-investment insurance dropped 49.5%.

All these figures were affected by the exchange rate and by the sale of Abbey’s life assurance business, the pension fund company in Peru and the business in Bolivia. On a like-for-like basis (excluding the businesses sold) and eliminating the exchange-rate effect, year-on-year growth was 6% for deposits excluding repos, 17% for pension funds and 67% for savings-investment insurance. Total managed funds rose 18%.

Continental Europe increased its balances by 15%. In Spain, where 80% of Continental Europe’s balances are concentrated, on-balance sheet funds rose 18% and off-balance sheet ones 5%, significantly influenced by customers’ preference in recent quarters for time deposits.

The Group continued to be the leader in mutual funds (market share of 24%). In Portugal, capitalisation insurance and other off-balance sheet funds, led the capturing of funds.

Abbey’s funds were affected by the sale of its life assurance business and by the lower growth in deposits (+1% in sterling), as it is more focused on spreads improvement.

Total managed funds in Latin America (on- and off-balance sheet) rose 21% without the exchange-rate effect.

Deposits, excluding repos, increased 52% in Venezuela, 39% in Argentina and 13% in Chile. Brazil’s rose 4% due to the greater appeal of mutual funds and wholesale financing (subordinated debt) and Mexico’s decreased 3% because of the policy followed in the last few months to shift towards intermediation products that are incorporated in repos (+5% with repos).

Mutual funds in Latin America increased 39%. Of note was the growth in Brazil, Mexico, Chile and Argentina. Pension funds, excluding the sale in Peru, rose 20%. Particularly strong is the rise in Argentina, Chile and Uruguay. All percentages exclude the exchange-rate impact.

Continental Europe accounted for 46% of managed funds, Abbey 33% and Latin America 21%.

January — March 2007 13

Consolidated financial report

Customer funds under management


					Variation
Million euros	31.03.07		31.03.06		Amount			(%)			31.12.06
Public sector		16,012		15,121		891			5.9			15,266
Other residents		92,958		83,179		9,779			11.8			94,750
Demand deposits		52,000		49,120		2,880			5.9			55,050
Time deposits		26,013		18,460		7,553			40.9			24,670
REPOs		14,945		15,600		(655	)		(4.2	)		15,030
Non-resident sector		218,140		205,954		12,186			5.9			221,206
Demand deposits		118,573		115,499		3,074			2.7			119,861
Time deposits		71,171		71,255		(84	)		(0.1	)		72,258
REPOs		26,377		16,365		10,012			61.2			26,343
Public Sector		2,021		2,835		(815	)		(28.7	)		2,744
Customer deposits		327,111		304,255		22,856			7.5			331,223
Debt securities		222,441		160,700		61,741			38.4			204,069
Subordinated debt		33,355		28,984		4,371			15.1			30,423
On-balance-sheet customer funds		582,907		493,938		88,968			18.0			565,715
Mutual funds		131,147		114,174		16,974			14.9			119,838
Pension funds		29,996		29,190		806			2.8			29,450
Managed portfolios		19,245		16,781		2,464			14.7			17,835
Savings-insurance policies		7,383		14,632		(7,249	)		(49.5	)		6,385
Other customer funds under management		187,772		174,776		12,996			7.4			173,509
Customer funds under management		770,679		668,715		101,964			15.2			739,223

As part of its global financing strategy, the Group issued mortgage bonds amounting to EUR 1,750 million, as well as issues of senior debt (counter value of EUR 7,768 million), subordinated debt (EUR 2,391 million) and two placements of preferred shares ($950 million).

Maturities on schedule during the first quarter amounted to EUR 1,870 million of senior debt and EUR 100 million of mortgage bonds and of subordinated debt with a countervalue of EUR 230 million.

Goodwill at the end of March stood at EUR 14,373 million, EUR 349 million higher than a year earlier basically as a result of Drive’s incorporation.

In accordance with the criteria of the Bank for International Settlements (BIS), Grupo Santander’s shareholders’ equity amounted to EUR 62,510 million, 13.9% higher (+EUR 7,623 million). The surplus over the minimum requirement was EUR 24,675 million.

The BIS ratio was 13.22%, Tier I 7.64% and core capital 5.97%, all of them higher than at the end of 2006. The Group continued to actively manage risk weighted assets, which grew by around 10% compared with 17% growth in total credit.

Mutual funds


Million euros	31.03.07		31.03.06		Var. (%)
Spain		78,854		77,463		1.8
Portugal		6,160		5,922		4.0
United Kingdom (Abbey)		13,640		5,904		131.0
Latin America		32,494		24,885		30.6
Total		131,147		114,174		14.9

Pensions funds


Million euros	31.03.07		31.03.06		Var. (%)
Spain		9,980		9,047		10.3
Portugal		1,453		1,032		40.7
Latin America		18,564		19,110		(2.9	)
Total		29,996		29,190		2.8

14 January — March 2007

Consolidated financial report (LOGO)

Shareholders’ equity and minority interests


							Variation
Million euros	31.03.07			31.03.06			Amount			(%)			31.12.06
Capital stock		3,127			3,127			—			—			3,127
Additional paid-in surplus		20,370			20,370			—			—			20,370
Reserves		20,124			14,976			5,148			34.4			12,352
Treasury stock		(102	)		(67	)		(35	)		52.8			(127	)
On-balance-sheet shareholders’ equity		43,520			38,407			5,113			13.3			35,722
Attributable profit		1,802			1,493			309			20.7			7,596
Interim dividend distributed		(2,006	)		(1,744	)		(262	)		15.0			(1,337	)
Shareholders’ equity at period-end		43,316			38,156			5,160			13.5			41,981
Interim dividend not distributed		(1,250	)		(861	)		(390	)		45.3			(1,919	)
Shareholders’ equity		42,066			37,295			4,771			12.8			40,062
Valuation adjustments		2,384			3,191			(807	)		(25.3	)		2,871
Minority interests		2,055			2,944			(889	)		(30.2	)		2,221
Preferred securities		670			1,293			(623	)		(48.2	)		668
Preferred securities in subordinated debt		7,483			6,469			1,013			15.7			6,837
Shareholders’ equity and minority interests		54,658			51,193			3,465			6.8			52,658

Computable capital and BIS ratio


					Variation
Million euros	31.03.07		31.03.06		Amount			(%)		31.12.06
Computable basic capital		36,141		32,909		3,232			9.8		35,539
Computable supplementary capital		26,369		21,978		4,391			20.0		24,237
Computable capital		62,510		54,886		7,623			13.9		59,776
Risk-weighted assets		472,937		427,607		45,330			10.6		478,733
BIS ratio		13.22		12.84		0.38					12.49
Tier 1		7.64		7.70		(0.06	)				7.42
Core capital		5.97		5.96		0.01					5.91
Shareholders’ equity surplus		24,675		20,678		3,997			19.3		21,478

January — March 2007 15

Consolidated financial report

Statement of changes in consolidated shareholders’ equity


Million euros	Q1’ 07			Q1’ 06
Available-for-sale financial assets		(295	)		481
Other financial liabilities at fair value		—			—
Cash flow hedges		(34	)		(50	)
Hedges of net investments in businesses abroad		35			33
Exchange differences		(192	)		(349	)
Long-term assets for sale		—			—
Net revenues recorded in shareholders’ equity		(487	)		114
Net consolidated profit (published)		1,927			1,655
Adjustments for changes in accounting criteria		—			—
Adjustments for misstatements		—			—
Net consolidated profit		1,927			1,655
Parent Bank		1,315			1,607
Minority interests		125			162
Total revenues and expenses		1,441			1,769

Consolidated cash flow statements


Million euros	Q1’ 07			Q1’ 06
1. Cash flows from operating activities
Consolidated profit		1,927			1,655
Adjustments to profit		2,472			1,837
Adjusted profit		4,399			3,492
Net increase/decrease in operating assets		(10,030	)		(10,504	)
Net increase/decrease in operating liabilities		(18,088	)		(9,166	)
Total net cash flows from operating activities (1)		(23,719	)		(16,178	)
2. Cash flows from investing activities
Investments (-)		(632	)		(567	)
Divestments (+)		338			218
Total net cash flows from investing activities (2)		(294	)		(349	)
3. Cash flows from financing activities
Disposal of own equity instruments		1,827			1,873
Acquisition of own equity instruments		(1,803	)		(1,887	)
Issuance debt securities		47,362			23,554
Redemption debt securities		(21,393	)		(10,230	)
Dividends paid		(669	)		(581	)
Others		(307	)		(440	)
Total net cash flows from financing activities (3)		25,018			12,289
4. Effect of exchange rate changes on cash and cash equivalents (4)		160			240
5. Net increase/decrease in cash and cash equivalents (1+2+3+4)		1,165			(3,998	)
Cash and cash equivalents at beginning of period		13,835			16,086
Cash and cash equivalents at end of period		15,001			12,088

16 January — March 2007

Risk management (LOGO)

Credit risk management (*)


					Variation
Million euros	31.03.07		31.03.06		Amount			(%)			31.12.06
Non-performing loans		4,936		4,370		566			13.0			4,608
NPL ratio (%)		0.82		0.86		(0.04 p.	)					0.78
Loan-loss allowances		8,722		8,075		647			8.0			8,627
Specific		2,944		3,148		(204	)		(6.5	)		2,960
General-purpose		5,778		4,927		850			17.3			5,667
NPL coverage (%)		176.70		184.80		(8.10 p.	)					187.23
Credit cost (%) **		0.34		0.23		0.11 p.						0.32
Ordinary non-performing and doubtful loans ***		3,469		3,120		349			11.2			3,243
NPL ratio (%) ***		0.58		0.62		(0.04 p.	)					0.55
NPL coverage (%) ***		251.40		258.82		(7.42 p.	)					266.00


(*)		Excluding country-risk

(**)		Net specific allowance / computable assets

(***)		Excluding mortgage guarantees

Note: NPL ratio: Non-performing loans / computable assets

Risk Management

The Group’s ratio of non-performing loans (NPLs) was 0.82% at the end of March, slightly higher than at the end of 2006 but 4 p.p. lower than a year earlier. NPL coverage remained high at 177%, 10 p.p. and 8 p.p. less than in December and March 2006, respectively.

Both ratios were impacted by changes in criterion for registering non-performing loans in Portugal, unifying stricter criteria in the Group. On a like-for-like comparison, NPL ratio remained stable in the quarter and was 9 b.p. better than in March 2006. Coverage remained at around 180% over the last 12 months.

Total funds for coverage amounted to EUR 8,722 million, of which EUR 5,778 million were generic funds.

Specific loan-loss provisions, net of recoveries, amounted to EUR 557 million (with a cost of credit of 0.34%) compared to EUR 337 million and 0.23% in the first quarter of 2006. Part of this increase is due to the perimeter effect from Drive’s incorporation and the rest is basically due to the rise in the Group’s units in Latin America, especially in Brazil and Mexico as a result of the growth strategy in retail segments, with a more predictable risk (but with expected larger NPLs) and more appealing in terms of risk / return.

The NPL ratio in Spain was 0.51%, 2 b.p. lower than at the end of 2006 and 4 b.p. lower than a year earlier. NPL coverage (292%) was still very high, although it fell as much in the quarter as in the last 12 months.

Santander Consumer Finance’s NPL ratio was 2.66% (+ 9 b.p. in the quarter). Coverage was 114%, in line with that at the end of 2006.

January — March 2007 17

Risk management

Non-performing loans by quarter


	2006												2007
Million euros	Q1			Q2			Q3			Q4			Q1
Balance at beginning of period		4,342			4,370			4,489			4,647			4,608
+ Net additions		509			569			718			841			1,058
- Write-offs		(480	)		(450	)		(560	)		(880	)		(729	)
Balance at period-end		4,370			4,489			4,647			4,608			4,936

Portugal’s NPL ratio was 1.16% and coverage stood at 128%. On a like-for-like basis, the NPL ratio improved 0.41 p.p. in the year to March and coverage 11 p.p.

In the UK, Abbey’s NPL ratio was 0.55%, 5 b.p. lower than at the end of 2006 and 9 b.p. below that of March 2006. Coverage remained at 81%, 5 p.p. lower than in December but 3 p.p. more than a year earlier.

In Latin America the NPL ratio was 1.50%, 12 b.p. higher than the end of 2006 but lower than the 1.71% registered a year earlier. Coverage was 160%, 7 p.p. lower than in December and 23 p.p. below the level of March 2006.

In the first quarter, the trading risk, measured in terms of daily value at risk (DVaR), was around EUR 32.5 million. It fluctuated between EUR 28.8 million and EUR 36.3 million.

On February 27, a change in the methodology for measuring DVaR by the exchange rate in Venezuela came into force. This meant a reduction in the Group’s total VaR of around EUR 3 million. Apart from this, the changes in VaR are mainly due to movements of positions in the portfolios of Brazil and Mexico.

Trading portfolios. DVaR by region

First quarter


	2007				2006
Million euros	Avg		Latest		Avg
Total		32.5		32.4		36.4
Europe		8.1		8.3		12.0
USA		2.3		2.1		2.7
Latin America		28.6		28.8		28.3

Trading portfolios. DVaR by product

First quarter 2007


Million euros	Min			Avg			Max			Latest
Total trading
Total VaR		28.8			32.5			36.3			32.4
Diversification effect		(3.1	)		(10.4	)		(15.1	)		(9.5	)
Fixed income VaR		20.0			26.3			30.7			25.7
Equity VaR		3.7			5.2			7.6			7.6
Currency VaR		7.9			11.6			14.8			8.6

18 January — March 2007

The Santander share (LOGO)

The Santander share

Stock markets were very volatile in the first quarter, after a positive start to the year when many indices reached new highs. Doubts about the US economy, concern over bad debts in the US subprime market and geopolitical tensions influenced investors and encouraged about of profit-taking.

The Santander share ended the first quarter at EUR 13.36, 5.5% lower than at the end of 2006. Our share rose 10.9% in the year to March compared to an increase of 5.8% in the DJ Stoxx 50, 7.9% in the DJ Stoxx Banks and 23.5% in the Ibex-35.

Capitalisation

Santander is the largest bank in the Euro zone and the 12th in the world by market value. Its capitalisation at the end of March September was EUR 83,557 million (+EUR 8,193 million over March 2006).

The share’s weighting in the DJ Stoxx 50 is 2.54%, 5.30% in the DJ Stoxx Banks and 15.66% in the Ibex-35.

Trading

The number of Santander shares traded during the first quarter was 5,118 million for an effective value of EUR 71,849 million, making it the second most traded share in the Euro Stoxx 50 with a liquidity ratio of 82%. The average daily number of shares traded was 80 million.

Shareholder remuneration

The Board approved payment of a third interim dividend of EUR 0.106904 per share as of February 1, 2007 and payment of a fourth one of EUR 0.199913 as of May 1, 2007.

With payment of the fourth and last interim dividend, which has to be approved by the AGM, the total dividend charged to 2006’s profits will be EUR 0.520625 per share, 25% more than for 2005.

Shareholder base

The total number of shareholders at March 30 was 2,312,076, of which 2,291,892 were European and control 88.96% of the capital and 7,660 from the Americas (10.71%).

Excluding the Board, which held 5.08% of the capital at the end of the first quarter, individuals held 34.69% and institutional investors 60.23%.

The Santander share


	March 2007
Shareholders and trading data
Shareholders (number)		2,312,076
Shares outstanding (number)		6,254,296,579
Average daily turnover (no. of shares)		79,963,729
Share liquidity* (%)		82
Dividend per share	euros
Fourth interim dividend 2005 (01.05.06)		0.137620
First interim dividend 2006 (01.08.06)		0.106904
Second interim dividend 2006 (01.11.06)		0.106904
Third interim dividend 2006 (01.02.07)		0.106904
Fourth interim dividend 2006 (01.05.07)		0.199913
Price movements during the year
Beginning (29.12.06)		14.14
High		14.75
Low		12.81
Last (30.03.07)		13.36
Market capitalisation (millions) (30.03.07)		83,557
Stock market indicators
Price / Book value (X)		1.99
P/E ratio (X)		11.57
Yield** (%)		4.27


(*).-		Number of shares traded during the year / number of shares

(**).-		Dividend charged to 2006 / average share price

January — March 2007 19

Information by segments

Description of the segments

Grupo Santander maintained in 2007 the general criteria used in 2006, with two exceptions:

•

The Global Customer Relation Model, which includes 121 new clients, mainly from Latin America, was expanded. This does not mean any changes in the geographic segments, but it does affect the figures for Retail Banking (from where they come) and Global Wholesale Banking (where they are incorporated).

•

Some adjustments were made between the results of Retail Banking and Asset Management and Insurance, for two reasons:

	—		In Abbey, the distribution of revenues between Retail Banking and Asset Management and Insurance was changed in order to adapt it to the Group’s corporate criteria. This means an increase in Retail Banking and a decline in Asset Management and Insurance, but does not change Abbey’s overall total.

	—		The business generated by the Group’s insurance brokers is no longer reflected in Retail Banking but in Insurance. This modification is due to recent changes in regulations and the search for greater efficiency in distribution.

None of these changes is significant for the Group and do not alter its figures nor those of the main segments (geographic). The figures for 2006 have been reformulated and include the changes.

In addition, and in line with the criteria in the International Financial Reporting Standards (IFRS), the results of businesses discontinued in 2006 and which consolidated by global integration (Abbey’s insurance, Urbis, Peru and Bolivia) are in “net profit from discontinued operations.” This enables management of the Group’s recurrent businesses to be better tracked.

The financial statements of each business area have been drawn up by adding up the Group’s basic operating units. The information relates to both the accounting data of the companies in each area as well as that provided by the management information systems. In all cases, the same general principles as those used in the Group are used.

In accordance with the IFRS, the business areas are structured into two levels:

Principal level (or geographic). The activity of the Group’s operating units is segmented by geographical areas. This coincides with the Group’s first level of management and reflects our positioning in the world’s three main currency areas. The segments reported on are:

•

Continental Europe. This covers all retail banking business (including Banif, the specialised private bank), wholesale banking and asset management and insurance conducted in Europe with the exception of Abbey. Given the importance of some of these units, the financial information of the Santander Branch Network, Banesto, Santander Consumer Finance (Drive included) and Portugal is also set out.

•

United Kingdom (Abbey). This only covers all of Abbey’s business, mainly retail banking in the UK.

•

Latin America. This embraces all the Group’s financial activities conducted via its subsidiary banks and subsidiaries. It also includes the specialised units in Santander Private Banking, as an independent and globally managed unit, and New York’s business. Because of their specific importance, the financial statements of Brazil, Mexico and Chile are also provided.

Secondary level (or business). This segments the activity of the operating units by the type of business. The reported segments are:

•

Retail Banking. This covers all customer banking businesses (except those of Corporate Banking, managed through the Global Customer Relationship Model). Because of the relative importance of this business in total activity, details are provided by both geographic areas (Continental Europe, United Kingdom-Abbey and Latin America) as well as by the main countries. The results of the hedging positions in each country are also included, conducted within the sphere of each one’s Assets and Liabilities Committee.

•

Global Wholesale Banking. This business reflects the revenues from Global Corporate Banking, Investment Banking and Markets worldwide including all treasuries managed globally, both for trading as well as distribution to customers (always after the appropriate distribution with Retail Banking customers), as well as equities business.

•

Asset Management and Insurance. This includes the contribution of the different units to the Group for the design and management of mutual and pension funds and insurance. Except for pension fund management entities in Latin America, which have their own distribution networks, the Group uses, and remunerates through agreements, the retail networks which place these products. This means that the result recorded in this business is net (i.e. deducting the distribution cost from gross income).

As well as these operating units, which cover everything by geographic area and by businesses (their totals are the same), the Group continues to maintain the area of Financial Management and Equity Stakes. This area incorporates the centralised activities relating to equity stakes in industrial and financial companies, financial management of the structural exchange rate position and of the parent bank’s structural interest rate risk, as well as management of liquidity and of shareholders’ equity through issues and securitisations.

As the Group’s holding entity, it manages all capital and reserves and allocations of capital and liquidity. It also incorporates amortisation of goodwill but not the costs related to the Group’s central services except for corporate and institutional expenses related to the Group’s functioning.

20 January — March 2007

Information by principal segments (LOGO)

Key data by principal segments


	Net operating income											Attributable profit to the Group
							Variation											Variation
Income statement (Million euros)	Q1’ 07			Q1’ 06			Amount			(%)		Q1’ 07			Q1’ 06			Amount			(%)
Continental Europe		2,098			1,487			610			41.0		1,317			898			419			46.7
o/w: Santander Branch Network		691			533			157			29.5		460			334			126			37.6
Banesto		311			257			55			21.3		163			148			16			10.5
Santander Consumer Finance		440			283			157			55.5		166			126			40			31.8
Portugal		174			150			24			16.0		132			114			18			15.5
United Kingdom (Abbey)		476			384			92			24.0		300			244			56			22.8
Latin America		1,354			1,074			280			26.1		681			618			63			10.1
o/w: Brazil		547			409			137			33.5		225			198			27			13.4
Mexico		364			267			97			36.3		156			142			14			9.8
Chile		210			194			16			8.4		131			114			17			14.9
Operating areas		3,928			2,945			983			33.4		2,298			1,760			538			30.5
Financial management and equity stakes		(653	)		(412	)		(241	)		58.4		(496	)		(267	)		(229	)		85.8
Total Group		3,275			2,533			742			29.3		1,802			1,493			309			20.7


	Efficiency ratio				ROE				NPL ratio				NPL coverage
Ratios (%)	Q1’ 07		Q1’ 06		Q1’ 07		Q1’ 06		31.03.07		31.03.06		31.03.07		31.03.06
Continental Europe		35.90		41.20		25.99		22.23		0.80		0.76		202.49		247.61
o/w: Santander Branch Network		39.09		43.54		24.22		20.80		0.56		0.56		298.79		299.75
Banesto		42.00		45.76		18.45		20.42		0.42		0.46		393.19		392.62
Santander Consumer Finance		29.65		35.01		28.87		30.11		2.66		2.41		114.43		124.43
Portugal		42.96		44.63		25.56		23.44		1.16		0.71		127.55		258.04
United Kingdom (Abbey)		50.81		56.83		31.34		33.43		0.55		0.64		81.38		79.32
Latin America		42.11		46.35		30.29		26.63		1.50		1.71		160.00		183.37
o/w: Brazil		40.62		46.83		32.01		28.62		2.62		2.76		98.77		126.24
Mexico		37.29		44.23		25.41		24.11		0.83		0.69		241.35		335.91
Chile		39.15		41.01		37.07		26.20		1.70		2.15		147.57		165.07
Operating areas		40.31		45.64		27.78		24.82		0.80		0.83		164.23		184.72
Total Group		46.32		50.88		18.48		17.12		0.82		0.86		176.70		184.80


	Employees				Branches
Operating means	31.03.07		31.03.06		31.03.07		31.03.06
Continental Europe		46,308		44,155		5,829		5,444
o/w: Santander Branch Network		19,337		19,027		2,839		2,681
Banesto		10,831		10,563		1,892		1,705
Santander Consumer Finance		6,374		5,288		279		276
Portugal		6,172		6,265		731		694
United Kingdom (Abbey)		16,616		18,622		711		712
Latin America		69,958		62,259		4,438		4,170
o/w: Brazil		21,680		21,171		2,044		1,877
Mexico		17,283		14,116		1,038		1,012
Chile		13,331		11,249		442		410
Operating areas		132,882		125,036		10,978		10,326
Financial management and equity stakes		1,756		1,494
Total Group		134,638		126,530		10,978		10,326

January — March 2007 21

Information by principal segments

Income statement and balance sheet of principal segments


	Operating business areas									Continental Europe
Million euros	Q1’ 07			Q1’ 06			Var. (%)			Q1’ 07			Q1’ 06			Var. (%)
Income statement
Net interest income		3,899			3,174			22.8			1,856			1,440			29.0
Inc. from companies accounted by equity method		4			5			(16.9	)		2			2			42.9
Net fees		2,075			1,741			19.2			1,115			855			30.4
Insurance activity		96			66			45.3			39			33			16.8
Commercial revenue		6,074			4,986			21.8			3,012			2,329			29.3
Gains (losses) on financial transactions		624			535			16.7			288			229			25.7
Gross operating income		6,698			5,521			21.3			3,300			2,558			29.0
Income from non-financial services (net) and other operating income		(13	)		4			—			9			13			(25.2	)
Operating expenses		(2,757	)		(2,579	)		6.9			(1,212	)		(1,083	)		11.8
General administrative expenses		(2,516	)		(2,353	)		6.9			(1,076	)		(959	)		12.2
Personnel		(1,503	)		(1,425	)		5.5			(718	)		(654	)		9.9
Other administrative expenses		(1,013	)		(928	)		9.2			(358	)		(305	)		17.2
Depreciation and amortisation		(241	)		(227	)		6.5			(136	)		(124	)		9.3
Net operating income		3,928			2,945			33.4			2,098			1,487			41.0
Net loan loss provisions		(679	)		(500	)		35.7			(271	)		(228	)		18.9
Other income		47			20			136.2			46			27			71.9
Profit before taxes		3,297			2,465			33.7			1,873			1,286			45.6
Tax on profit		(880	)		(660	)		33.3			(529	)		(381	)		38.8
Net profit from ordinary activity		2,417			1,805			33.9			1,344			905			48.5
Net profit from discontinued operations		—			79			(100.0	)		—			40			(100.0	)
Net consolidated profit		2,417			1,884			28.3			1,344			946			42.1
Minority interests		119			124			(3.9	)		27			48			(43.4	)
Attributable profit to the Group		2,298			1,760			30.5			1,317			898			46.7
Balance sheet
Loans and credits*		530,093			450,694			17.6			278,028			223,323			24.5
Trading portfolio (w/o loans)		115,943			111,186			4.3			32,487			24,243			34.0
Available-for-sale financial assets		24,110			30,491			(20.9	)		10,449			14,384			(27.4	)
Due from credit institutions*		119,633			107,546			11.2			73,969			63,549			16.4
Intangible assets and property and equipment		11,331			11,063			2.4			4,697			4,655			0.9
Other assets		45,216			77,001			(41.3	)		16,801			15,628			7.5
Total assets/liabilities & shareholders’ equity		846,327			787,981			7.4			416,430			345,782			20.4
Customer deposits*		326,924			303,637			7.7			139,144			127,670			9.0
Marketable debt securities*		139,710			98,498			41.8			52,815			31,112			69.8
Subordinated debt		14,052			14,372			(2.2	)		2,386			2,251			6.0
Insurance liabilities		12,030			44,569			(73.0	)		9,761			6,820			43.1
Due to credit institutions*		153,839			163,925			(6.2	)		77,852			78,508			(0.8	)
Other liabilities		165,149			133,665			23.6			112,590			82,675			36.2
Shareholders’ equity		34,623			29,315			18.1			21,882			16,748			30.7
Other customer funds under management		187,966			173,318			8.5			112,097			104,191			7.6
Mutual funds		131,147			114,174			14.9			85,014			83,385			2.0
Pension funds		29,996			29,190			2.8			11,432			10,080			13.4
Managed portfolios		19,439			15,322			26.9			8,267			6,304			31.2
Savings-insurance policies		7,383			14,632			(49.5	)		7,383			4,423			66.9
Customer funds under management		668,652			589,824			13.4			306,442			265,224			15.5


(*)		Includes all stock of concept classified in the balance sheet

22 January — March 2007

Information by principal segments (LOGO)

Income statement and balance sheet of principal segments


	United Kingdom (Abbey)									Latin America
Million euros	Q1’ 07			Q1’ 06			Var. (%)			Q1’ 07			Q1’ 06			Var. (%)
Income statement
Net interest income		572			509			12.2			1,471			1,225			20.1
Inc. from companies accounted by equity method		0			1			(87.8	)		1			2			(33.4	)
Net fees		251			252			(0.5	)		709			634			11.8
Insurance activity		0			(0	)		—			57			33			72.9
Commercial revenue		823			763			7.9			2,239			1,894			18.2
Gains (losses) on financial transactions		131			109			20.4			205			196			4.2
Gross operating income		955			872			9.5			2,444			2,091			16.9
Income from non-financial services (net) and other operating income		14			16			(10.1	)		(36	)		(24	)		49.0
Operating expenses		(492	)		(503	)		(2.2	)		(1,053	)		(993	)		6.1
General administrative expenses		(467	)		(476	)		(2.0	)		(973	)		(917	)		6.1
Personnel		(261	)		(272	)		(3.9	)		(523	)		(499	)		4.9
Other administrative expenses		(206	)		(204	)		0.6			(450	)		(418	)		7.5
Depreciation and amortisation		(25	)		(27	)		(6.2	)		(80	)		(75	)		6.5
Net operating income		476			384			24.0			1,354			1,074			26.1
Net loan loss provisions		(81	)		(88	)		(7.9	)		(327	)		(184	)		77.2
Other income		5			(1	)		—			(4	)		(6	)		(32.5	)
Profit before taxes		400			295			35.6			1,023			883			15.9
Tax on profit		(100	)		(82	)		22.0			(250	)		(196	)		27.5
Net profit from ordinary activity		300			213			40.8			773			687			12.5
Net profit from discontinued operations		—			31			(100.0	)		—			7			(100.0	)
Net consolidated profit		300			244			22.8			773			694			11.3
Minority interests		—			—			—			92			76			20.9
Attributable profit to the Group		300			244			22.8			681			618			10.1
Balance sheet
Loans and credits*		192,666			173,841			10.8			59,399			53,530			11.0
Trading portfolio (w/o loans)		59,273			61,735			(4.0	)		24,183			25,209			(4.1	)
Available-for-sale financial assets		23			20			17.3			13,638			16,087			(15.2	)
Due from credit institutions*		22,244			16,575			34.2			23,420			27,421			(14.6	)
Intangible assets and property and equipment		4,945			5,044			(2.0	)		1,689			1,364			23.8
Other assets		7,551			42,529			(82.2	)		20,865			18,844			10.7
Total assets/liabilities & shareholders’ equity		286,702			299,744			(4.4	)		143,194			142,455			0.5
Customer deposits*		112,292			109,039			3.0			75,488			66,929			12.8
Marketable debt securities*		82,528			61,049			35.2			4,367			6,337			(31.1	)
Subordinated debt		9,216			11,045			(16.6	)		2,450			1,077			127.5
Insurance liabilities		11			35,912			(100.0	)		2,259			1,837			23.0
Due to credit institutions*		44,871			43,371			3.5			31,116			42,047			(26.0	)
Other liabilities		33,839			36,240			(6.6	)		18,720			14,751			26.9
Shareholders’ equity		3,946			3,088			27.8			8,795			9,479			(7.2	)
Other customer funds under management		13,640			16,112			(15.3	)		62,230			53,014			17.4
Mutual funds		13,640			5,904			131.0			32,494			24,885			30.6
Pension funds		—			—			—			18,564			19,110			(2.9	)
Managed portfolios		—			—			—			11,172			9,018			23.9
Savings-insurance policies		—			10,209			(100.0	)		—			—			—
Customer funds under management		217,675			197,245			10.4			144,534			127,356			13.5


		(*) Includes all stock of concept classified in the balance sheet

January — March 2007 23

Information by principal segments

Continental Europe

Continental Europe includes all activities carried out in this area: retail banking, global wholesale banking, asset management and insurance.

Attributable profit was EUR 1,317 million (57% of the Group’s total from its operating areas), 46.7% higher than in the first quarter of 2006. The figures for 2007 incorporate Drive to Santander Consumer Finance. Excluding it, the increase would have been 44.4%.

The main points are:

•

Growth came from the strong rise in commercial revenues (net interest income, fees and gains on financial transactions with customers) and from selective control of costs. The “jaws” (the difference between the growth in gross operating income and costs) was 17 p.p. and the efficiency ratio was a magnificent 35.9%, 5.3 p.p. better than in the first quarter of 2006. All big units made significant improvements.

•

Diversified growth in profits: the four large commercial units included here all registered double digit growth and the global areas also increased significantly, particularly Global Wholesale Banking.

•

Very favourable trend: records (excluding and including Drive) were set in the first quarter in all revenue lines, net operating income and profits. Commercial revenue was 10.0% higher than in the fourth quarter of 2006, net operating income was up 22.8% and attributable profit by 51.9% (all percentages exclude Drive in 1Q07).

Net interest income was 29.0% higher at EUR 1,856 million. This was due to increased business volumes in all units and the improvement in the customer spreads of the Santander Branch Network and Banesto. Net interest income grew for the eighth consecutive quarter (+5.4% over Q4’06 excluding Drive). Of note was the Santander Branch Network, which began 2006 with year-on-year growth in net interest income of 9.0% and accelerated to 21.1% in the first quarter of 2007, while Banesto’s rose by close to 20%.

Net fees and insurance activity increased 29.9% to EUR 1,153 million. Of note were the rises at the Santander Branch Network, Santander Consumer Finance, Banif and Global Wholesale Banking, which almost doubled their fees. The products that grew the most were insurance, securities and custody, contingent liabilities and mutual funds.

The higher gains on financial transactions mainly reflect the stronger demand by customers for treasury products.

Gross operating income rose 29.0% and operating expenses 11.8%, which included a small perimeter effect, spending on ongoing projects in the global areas and on expanding the branch network (+385 branches since March 2006, 7% of the network at that time).

Net operating income rose 41.0% to EUR 2,098 million (+32.6% excluding Drive). The four large units which generate 77% of total net operating income registered double digit growth. Banif and European Wholesale Banking also increased by more than 20%.

Loan-loss provisions increased 18.9% in net terms (the difference between the rise resulting from the incorporation of Drive and lower needs for generic provisions in the wholesale area). As indicated in previous financial reports, the results of Global Wholesale Banking in the second half of 2006 reflect the impact of large generic provisions for operations that had not reached their definitive structure at the end of the year. There was a partial release of these provisions in the first quarter of 2007. Credit risk quality continued to be excellent (NPL ratio of 0.80%).

Profit before tax was 45.6% higher. After deducting corporate tax, discontinued operations and minority interests, attributable profit rose 46.7%.

Lending excluding securitisations grew 23%, with a good performance in retail banks. Deposits, mutual and pension funds and insurance savings increased 7%.

24 January — March 2007

Information by principal segments (LOGO)

Continental Europe. Main units


	Santander												Santander
	Branch Network						Banesto						Consumer Finance						Portugal
Million euros	Q1’ 07			(%)			Q1’ 07			(%)			Q1’ 07			(%)			Q1’ 07			(%)
Income statement
Net interest income		650			21.1			349			18.1			499			55.2			174			6.8
Inc. from companies accounted by equity method		—			—			0			39.9			2			43.3			—			—
Net fees		423			17.9			154			7.2			115			21.6			96			1.9
Insurance activity		—			—			12			47.6			—			—			7			35.6
Commercial revenue		1,073			19.8			516			15.1			616			47.6			277			5.6
Gains (losses) on financial transactions		74			4.2			38			9.4			4			(62.5	)		31			135.1
Gross operating income		1,147			18.7			554			14.7			620			44.6			308			11.9
Income from non-financial services (net) and other operating income		5			141.8			(1	)		—			9			(11.2	)		(2	)		(26.5	)
Operating expenses		(461	)		6.0			(241	)		4.7			(189	)		21.2			(132	)		7.7
General administrative expenses		(403	)		7.0			(213	)		4.3			(174	)		22.2			(116	)		7.5
Personnel		(303	)		4.9			(161	)		6.2			(82	)		24.7			(74	)		5.1
Other administrative expenses		(100	)		14.1			(52	)		(1.2	)		(92	)		20.1			(42	)		11.9
Depreciation and amortisation		(58	)		(0.6	)		(28	)		8.1			(16	)		11.4			(17	)		9.2
Net operating income		691			29.5			311			21.3			440			55.5			174			16.0
Net loan loss provisions		(52	)		(20.3	)		(54	)		21.1			(200	)		113.5			6			74.2
Other income		(0	)		(98.8	)		4			(31.9	)		3			—			(11	)		122.1
Profit before taxes		639			37.6			262			19.8			242			31.5			169			14.0
Tax on profit		(179	)		37.4			(77	)		9.7			(72	)		24.7			(37	)		8.8
Net profit from ordinary activity		460			37.7			185			24.6			171			34.5			132			15.5
Net profit from discontinued operations		—			—			—			(100.0	)		—			—			—			—
Net consolidated profit		460			37.7			185			(4.7	)		171			34.5			132			15.5
Minority interests		0			267.7			22			(53.3	)		5			332.3			0			11.6
Attributable profit to the Group		460			37.6			163			10.5			166			31.8			132			15.5
Balance sheet
Loans and credits*		108,104			16.5			64,337			30.0			40,979			26.3			27,942			9.6
Trading portfolio (w/o loans)		—			—			6,445			42.8			13			(75.3	)		934			5.8
Available-for-sale financial assets		3			11.5			6,221			(42.3	)		58			38.0			1,003			(56.3	)
Due from credit institutions*		93			(0.6	)		21,514			21.7			6,896			27.3			8,809			(19.6	)
Intangible assets and property and equipment		2,189			13.4			1,106			(29.4	)		686			43.1			431			(1.8	)
Other assets		507			(33.4	)		3,034			(46.0	)		1,406			13.0			5,391			43.7
Total assets/liabilities & shareholders’ equity		110,896			16.0			102,656			14.5			50,037			26.1			44,509			1.6
Customer deposits*		50,410			14.9			43,752			18.0			13,456			(2.1	)		11,380			(2.5	)
Marketable debt securities*		—			(100.0	)		25,615			32.1			12,727			88.5			11,371			237.2
Subordinated debt		—			—			1,442			(8.8	)		576			461.9			368			(30.9	)
Insurance liabilities		—			—			—			(100.0	)		—			—			4,074			26.8
Due to credit institutions*		26			(30.5	)		19,400			11.2			19,696			20.8			13,358			(35.4	)
Other liabilities		52,810			17.3			8,735			(6.9	)		1,087			0.8			1,696			(24.8	)
Shareholders’ equity		7,650			14.8			3,713			23.0			2,494			47.1			2,261			7.5
Other customer funds under management		57,134			2.9			16,227			1.5			392			14.4			11,773			14.7
Mutual funds		48,377			(2.1	)		12,512			(1.1	)		333			11.7			6,160			4.0
Pension funds		6,448			9.5			1,614			5.7			60			32.1			1,453			40.7
Managed portfolios		—			—			832			50.6			—			—			355			(0.2	)
Savings-insurance policies		2,308			—			1,269			0.4			—			—			3,806			28.9
Customer funds under management		107,544			8.2			87,036			17.6			27,151			29.6			34,892			35.1

(*) Includes all stock of concept classified in the balance sheet

(**).- Impacted by reclassification from available -for-salefinancial assets. in like-for-like terms: +6%

January — March 2007 25

Information by principal segments

Santander Branch Network

The Santander Branch Network began 2007 on the same positive note that it ended 2006. Year-on-year growth rates in the first quarter accelerated again and gross operating income, net operating income and attributable profit notched up new records. Attributable profit was EUR 460 million, 37.6% more than in the first quarter of 2006.

Profits were of a high quality as they came from a strong rise in gross operating income, a contained increase in costs and high credit quality.

Net interest income increased 21.1% to EUR 650 million, thanks to an appropriate balance between profitable growth in business and rigorous management of spreads, areas we have been working on in recent years.

Fees and gains on financial transactions with customers rose 15.6% to EUR 497 million. These revenues, together with net interest income, are the fruit of the strategic plans. The “We want to be your Bank” plan is contributing more customers, better linked, more satisfied and more loyal. Extending the plan’s benefits to new collectives such as the self-employed, professionals, shops, students, immigrants and shareholders is proving to be a positive move.

The structure of fees and trading gains is also coherent with these strategies. Those from business (risks:+12%; savings-investment: +29%) are rising and those from services falling (-6%), thus absorbing the investment in the “We Want to be your Bank” plan.

Gross operating income was EUR 1,147 million, 18.7% more than in the first quarter of 2006 and higher than the EUR 1,116 million in the fourth quarter.

This capacity to generate revenues is accompanied by moderate growth of operating expenses (+6.0%) resulting from the investments in the I-09 projects, destined to: boost our business capacity with the opening of new branches (+158 new openings since March 2006); take advantage of the new opportunities offered by the market in businesses such as immigrants, young people, shops and the self-employed, and strengthen others in order to take on new challenges in the mortgage markets, cards, consumer lending and companies.

Net operating income rose by more than 29.5% to EUR 691 million and consolidated the positive evolution in the efficiency ratio (4.4 p.p. better) which, including depreciation and amortisation, was 39.1%, one of the lowest in the Spanish market and also among the retail banks at the global level.

Credit risk quality was not eroded. The NPL ratio remained at 0.56% and coverage was 299%. This meant a moderate decline in net loan-loss provisions (-20.3%), enabling profit before tax to be 37.6% higher at EUR 639 million.

As regards business volume, loans grew 16% and customer deposits 16% year-on-year. In lending, mortgages grew 15%, leasing 18% and loans 19%. By segments, loans to individuals rose 14% and to companies 23%.

Demand deposits grew 10% and time deposits 29%. This reflected customers’ greater preference in recent quarters for these products rather than mutual funds. The Santander Branch Network remained the leader in mutual funds and their volume grew at a faster pace than the sector. As a result of this, the 9% growth year-on-year in pension funds and savings-investment insurance (which now amount to EUR 2,300 million), total customer funds increased by 8%.

26 January — March 2007

Information by principal segments (LOGO)

Banesto

The first quarter was a new period of balanced, efficient and profitable growth for Grupo Banesto. In line with the year’s goals, this saw greater generation of revenues which, combined with control of costs and of risk quality, produced significant improvements in gross and operating income and ratios. Attributable profit amounted to EUR 163 million, 10.5% more than in the first quarter of 2006 (affected by the sale of Urbis). On a like-for-like basis, growth in attributable profit was 24.6%.

Like other segments, Banesto’s figures were drawn up again in accordance with the criteria set out on page 20 of this report. The figures presented here, therefore, do not coincide with those published by Banesto itself.

Net interest income increased 18.1% to EUR 349 million, thanks to growth in business and appropriate management of prices and spreads.

Net fees and revenue from insurance rose 9.4% to EUR 167 million. Those from services increased 7.2% year-on-year, and those from mutual and pension funds maintained their growth pace and amounted to EUR 51 million, 4.6% higher than in the first quarter of 2006. Insurance generated revenues of EUR 12 million, 47.6% more.

Gains on financial transactions amounted to EUR 38 million and continued to be supported by the recurrent activity of distribution of treasury products to customers.

Gross operating income increased 14.7% to EUR 554 million.

Operating expenses was 4.7% higher than in March 2006, consistent with the Group’s discipline in cost control and within the objectives of efficiency and profitability set in the expansion plan for the branch network begun in 2006. The efficiency ratio improved from 45.8% in March 2006 to 42.0%.

Net operating income amounted to EUR 311 million, 21.3% more than in 2006.

The net loan-loss provision of EUR 54 million was 21.1% more than in the first quarter of 2006. The main component (EUR 44 million) were generic provisions, resulting from increased lending.

Profit before tax was up 19.8% at EUR 262 million.

Lending, excluding securitisations, amounted to EUR 65,791 million at the end of March (+28% y-o-y). That to the private sector increased 29%, with significant advances in all products: commercial loans rose 24%, secured loans 26% and other loans 34%.

The ratio of non-performing loans was 0.42%, down from 0.46% in March 2006. Coverage remained virtually unchanged at 393%.

On-balance sheet managed funds amounted to EUR 70,808 million, 22% more than in March 2006. Off-balance sheet mutual funds, pensions funds and savings-investment insurance are very similar, bringing the total managed funds to EUR 87,036 million, 18% higher than in March 2006.

January — March 2007 27

Information by principal segments

Santander Consumer Finance

Consumer finance business continued to grow strongly in the first quarter. Attributable profit increased 31.8% year-on-year to EUR 166 million.

This performance was driven by the organic growth in traditional units and the incorporation of Drive, the auto finance unit in the US subprime segment which has enabled us to enter the US consumer market. It offers considerable growth potential, a high return and greater business diversification. .

Drive’s incorporation (in line with the features of its business) represents an important change in the profile of the area’s income statement. In relation to average managed assets, Drive has high spreads (more than 20%, four times higher than the rest of Santander Consumer Finance), lower costs (half of the rest) and high provisions (more than 10% compared to 1.2%-1.3% of the other units).

All of this produced a leap in the area’s gross operating income (+44.6%), a wider opening of the “jaws” (positive difference of 23.4 p.p. in the growth in gross operating income and costs) and an improvement of 5 p.p. in the efficiency ratio which for the first time was below 30% (29.7%). Net operating income was 55.5% higher at EUR 440 million.

In its first quarter as part of the Group, Drive registered solid monthly growth in business, better spreads and a lower ratio of non-performing loans. It was on line to meet its targets for the year.

The rest of the area’s units generated attributable profit of EUR 145 million, 15.5% more than in the first quarter of 2006. Their gross operating income increased 10.6%, with net fees up 23.8% and net interest income 9.3%. This performance was do to the managed portfolio rise 18.6% year-on-year and the lower spread in the face of the rise in interest rates in Europe, which was only partially offset by the gradual change in business mix toward products with a higher return.

The new lending of European units rose 12% overall (+31% in direct credit and +38% in revolving cards). The overall figure was affected by the slowdown in lending in Germany (+2%), particularly in cars, because of the rise in VAT in the first quarter which made consumers bring forward purchasing decisions in 2006.

Of note among the other geographic areas was the strong growth in Spain (+17%), Nordic countries and Eastern Europe (+23%) and the UK (+57%). These increases were positively affected by the investments made in 2006 in new projects such as “crédiagil” in Spain and mortgages in Poland, among others, which began to bear fruit.

Of note in funding was the good performance of Openbank which increased its deposits by 15% year-on-year and improved its customer spread after the rise in interest rates.

The operating expenses of the European units rose 8.7% year-on-year, reflecting the new developments and the expansion of infrastructure including mini branches in Germany. The performance of costs and revenues produced net operating income of EUR 314 million, 11.0% more than in the first quarter of 2006.

The net loan-loss provisions of the European units remained virtually unchanged from the fourth quarter of 2006 and were 21.2% higher than the first quarter, in line with the growth in lending and the greater proportion of segments with a higher return.

Credit quality ratios, including Drive, remained excellent and within the standards of consumer finance. The NPL ratio was 2.66% and coverage 114%.

Lastly, Russia’s Central Bank approved in the first quarter the acquisition of ExtroBank for around EUR 40 million. This auto finance company has two branches in Moscow, one in St. Petersburg, 300 employees and EUR 197 million of assets on the balance sheet.

28 January — March 2007

Information by principal segments (LOGO)

Portugal

Santander Totta generated attributable profit of EUR 132 million, 15.5% more than in the first quarter of 2006. Net operating income was 16.0% higher.

The main trends of 2006 continued in the first quarter of 2007, with growth in retail banking revenues and careful control of costs. Net interest income and gross and net operating income and attributable profit registered new quarterly records.

Gross operating income increased 11.9% to EUR 308 million. This was due to good management of prices and volumes, which pushed up net interest income by 6.8% (rises of below 5% in 2006), as well as a doubling of gains on financial transactions from customers.

The controlled rise in costs (+7.7%), well below the rise in gross operating income, produced a further improvement in the efficiency ratio from 44.6% in March 2006 to 43.0% a year later. This ratio compares very well with that of our competitors in Portugal.

Net operating income was 16.0% higher at EUR 174 million.

As regards non-performing loans, there was a provision release of EUR 6 million (similar to the first quarter of 2006). During the quarter, the criteria for registering non-performing loans were changed, applying more demanding ones unified with the Group’s regulations. Adjusting previous quarters to the new criteria, the NPL ratio on a like-for-like basis continued to improve quarter after quarter and coverage was 10 p.p. higher than in March 2006.

Lending to retail segments performed well (+10% to individual customers, +24% to SMES and businesses and +7% to companies). These increases are not reflected in the overall growth, which was only 6%, because of the reduction in the balances with large companies. Mortgages and consumer grew 10% and 26%, respectively.

Customer funds decreased 2%, affected, like lending, by the sharp fall in balances with large companies, as those of individual customers, companies, SMEs and businesses rose 7%. Mutual and pensions funds (+9%) and capitalisation insurance (+29%) continued to be the main vehicles for capturing funds.

Others

The rest of businesses (Wholesale Banking, Asset Management, Insurance and Banif) increased their gross operating income by 65.9%. Of note was the growth in wholesale business, which almost doubled its fees because of those from investment banking and securities.

Net operating income increased 82.1% to EUR 483 million and profit before tax rose 107.0%, due to the release of generic provisions in wholesale banking.

Attributable profit was EUR 396 million, almost double that in the first quarter of 2006.

Banif, thanks to its strategy in private banking, increased its gross operating income by 43.4% as a result of the good performance of net interest income and fees, which pushed net operating income up 71%.

January — March 2007 29

Information by principal segments

United Kingdom (Abbey)

Abbey contributed EUR 300 million of attributable profit, 22.8% more than in the first quarter of 2006 (201 million, +20.1%). For the remainder of this chapter, figures are in sterling.

Excluding its life assurance business sold in 2006, whose results are recorded in “discontinued operations”, ordinary attributable profit was 37.7% higher. The main drivers were stronger revenues, lower costs and stable provision with improvement in efficiency and return.

Like the other segments, Abbey’s figures have been restated in accordance with the criteria on page 20 of this report. This means that the figures given below do not coincide with those published by Abbey in the UK.

Gross operating income increased 7.0% year-on-year in sterling, a higher growth rate than 2006 full year (+5.1%). This was largely due to an increase in net interest income (+9.7%), driven by improved spreads and business growth. Net fees decreased 2.7% due to lower revenues from current account charges, partially offset by higher fees from investment products. Trading gains increased 17.7% as a result of the good performance of Abbey Financial Markets.

Operating expenses were 4.4% lower. This reduction, together with the rise in gross operating income, improved the efficiency ratio to 50.8% (6.0 p.p. better than in March 2006) and pushed up net operating income by 21.2% year-on-year.

Net loan-loss provisions were 10.0% lower than those of the same period of 2006 due to the continued good quality of mortgages and a tighter policy in personal loans. The NPL ratio was 0.55% at the end of March and coverage was 81%, both significantly better.

Customer loans stood at EUR 192,666 million, 8% more than a year earlier, and total deposits amounted to EUR 112,292 million (+1% in local currency).

New lending in the first quarter gave priority to holding and/or improving the spreads on the various products.

Gross mortgage lending rose 7% (9.4% market share), with a good performance in all channels driven by new offers with very competitive conditions in addition to the launch of a Buy to Let proposition in the fourth quarter of 2006. The 11% rise in the level of mortgage prepayments (11.3% market share) coincided with UK base rate rises and put the market share of net mortgage lending at 5.4% in the first quarter.

Gross UPLs declined 58% year-on-year reflecting our increased focus on improved branch sales and lending to existing customers. This was offset by a significant improvement in the spreads on new business (40% higher than in the first quarter of 2006) driven by revised scorecards and an increase in the share of non-internet lending.

As regards retail deposits, there was a change of business mix towards products with greater spreads and as a result overall flows were impacted by outflows from lower spreads products, particularly cahoot. Excluding outflows from low/negative spread accounts, the performance was well ahead of prior years and spreads were over 19 b.p. higher than the first quarter of 2006. In investments, API rose 27% and the return was higher.

This performance was also supported by the launch of new products in the first quarter such as 8.1% Super ISA. Direct ISA and 50+ Saver and further productivity gains in the sale of investment products (+35% y-o-y).

Abbey continued to attract new customers, underscored by the opening of 108,000 accounts in the first quarter, driving current account balances up 10%.

30 January — March 2007

Information by principal segments (LOGO)

Latin America

Grupo Santander generated attributable profit of EUR 681 million in the first quarter, 10.1% more than in the same period of 2006 (+20.2% excluding the exchange rate impact). This figure was affected by changes to the perimeter (sale in 2006 of the pension fund management institution in Peru and placement in the market of 7.23% of Banco Santander Chile). Excluding this, ordinary attributable profit increased 12.5% (+23.2% without the exchange rate).

Retail Banking continued to be the driving force of the Group’s growth in the region. Its profit before tax rose 22.6% (+34.1% excluding the exchange rate). This performance reflected the strategic focus placed on boosting business and developing customer relationships particularly with individuals, SMEs and companies, combined with Latin America’s solid economic fundamentals.

Latin America maintains GDP growth above its historical average (between 4.5% and 5.0% forecasted for the this year, down from 5.2% at the close of 2006), on line to achieve the fourth straight year of the strongest expansion since the 1970s and with the best fundamentals.

Inflation is under control (5.6% in 2006 and a forecast of a similar rate this year), sound general government accounts (primary surplus and global budget deficit of less than 1% of GDP) and strong external accounts (current account surplus, growing international reserves and external debt at less than 20% of GDP). These factors support further cuts in official interest rates in 2007, in both nominal and real terms, which would spur economic growth and job creation, and increase access to loans by larger sectors of the population.

After three years (2003-2006) focused on growth in commercial businesses and development of recurring revenues, the emphasis in 2007 is on developing the business franchise by expanding the customer base and the degree of linkage, growth in anchor products (payroll, credit cards, consumer loans, insurance) and deepening business with individuals and SMEs. All of this while paying attention to risk quality and premiums adjusted to the growth profile.

The number of customers (individuals, SMEs, companies and institutions) increased by 0.5 million to 23.7 million at the end of March (plus 7.3 million participants in pension funds).

Anchor products played an important role in capturing and linking customers. The number of salary cheques paid into the accounts of the Group’s banks reached 4.5 million, the number of credit cards rose by 532,000 to 11.6 million, and consumer loans grew by 158,000 to 6.0 million.

This focus on developing the business franchise produced business growth higher than the market’s, especially in retail businesses. The Group’s market share in consumer lending and loans via credit cards increased by 134 b.p. in the year to March. The greater share of retail segment (individuals and SMEs) meant an increase in the risk premium, offset by the greater volume of revenues generated. The risk premium levels in March 2007 (1.73%) were well above those of a year ago (0.86%), but more in line with the fourth quarter (1.58%).

In order to keep on benefiting from the region’s increasing degree of “bankarisation”, the Group continued to invest in distribution channels. In 2006 268 branches were opened in net terms and in March another 70, bringing the total number of branches to 4,438 and ATMs to 14,222.

The main developments of the Group’s activity in Latin America in the first quarter of 2007 (all percentage changes exclude the exchange rate impact) were:

•

Strong growth in lending (+21%), particularly to individuals (+37%) and SMEs (+32%). The fastest rises were registered in

January — March 2007 31

Information by principal segments

consumer loans (+37%) and cards (+64%). Mortgages increased 25% and other loans 16%. The market share in lending, in those countries where the Group is present, is 10.7% (excluding IPAB paper in Mexico).

•

Bank savings (deposits, excluding repos, and mutual funds) rose 19%. Deposits grew 11% and mutual funds 39%. Our market share of bank savings is 8.7%. Pension funds increased 7% (+20% excluding the impact of the sale of the business in Peru).

•

The market share of total banking business (loans, deposits and mutual funds) was 9.3% and 11.4% in pension funds.

•

Net interest income, spurred by the strong growth in business, increased 30.9%. Depending on the interest rate performance of countries, spreads remained virtually flat as a whole. In general, the fall in short-term interest rates tended to reduce spreads in Brazil and Mexico, particularly the latter. This impact was offset by growth in the most profitable segments (individuals and SMEs). In addition, the portfolios of securities improved their spreads because of the lower cost of financing.

•

The focus on strengthening the most recurrent revenues and, specifically, developing products and services that generate fees (credit cards, cash management, foreign trade, mutual funds and insurance) was reflected in the 21.6% rise in fees. Particularly striking was the growth in fees from credit cards (+38.3%) and insurance (+26.0%).

•

Net gains on financial transactions increased 12.8% because of customer activity and the realisation of capital gains by taking advantage of market opportunities, particularly in Brazil.

•

Gross operating income grew 27.2% and operating expenses 15.3% (average inflation of 5%). Costs grew because of the investments in technology and promotions incurred by our subsidiaries in their specific business expansion plans, including the development of installed capacity.

•

The efficiency ratio improved by 4.2 percentage points to 42.1% and net operating income was 37.4% higher.

•

The strong growth in lending and the change of business mix towards products and segments with a higher return, but also with a greater risk premium, produced a 91.0% rise in net loan-loss provisions, a rate that will decelerate as the year progresses. The ratio of non-performing loans was 1.50% at the end of March, 0.21 b.p. lower than a year earlier and NPL coverage was 160% (183% a year earlier).

•

By businesses, Retail Banking’s net operating income increased 50.0% and its profit before tax 34.1%. Global Wholesale Banking and Asset Management and Insurance registered growth of 14.5% in profit before tax and 15.1%, respectively.

The following factors regarding the impact of interest rates and exchange rates on business and converting figures into euros should be taken into account when analysing the financial information:

•

Average short-term interest rates, for the region as a whole, declined a little between the first quarter of 2006 and the same period of 2007, although the movements varied from country to country. They dropped in Brazil (-4.5 p.p.), Mexico (-0.8 p.p.) and increased in Chile (+0.5 p.p.), Puerto Rico (+0.8 p.p.), Argentina (+0.9 p.p.), Colombia (+1.8 p.p.) and Venezuela (+0.4 p.p.).

•

The earnings performance in euros was negatively affected by exchange rates. The dollar, the currency used to manage the area, depreciated 9.0% against the euro, on average, between the first quarter of 2006 and the same period of 2007. Latin American currencies performed differently against the dollar, but overall the movement was basically neutral. The Brazilian real strengthened and the Mexican and Chilean pesos depreciated a little. The average exchange rate of the Brazilian real depreciated against the euro from 2.64 to 2.76; the Chilean peso from 633 to 708 and the Mexican peso from 12.7 to 14.4.

Latin America. Results


	Gross operating					Net operating						Attributable profit
	income					income						to the Group
Million euros	Q1’ 07		Var. (%)			Q1’ 07			Var. (%)			Q1’ 07		Var. (%)
Brazil		961		19.5			547			33.5			225		13.4
Mexico		615		20.0			364			36.3			156		9.8
Chile		353		6.2			210			8.4			131		14.9
Puerto Rico		82		18.8			32			55.4			10		35.5
Venezuela		151		41.2			67			36.4			46		8.2
Colombia		32		(2.1	)		10			(18.5	)		8		(54.2	)
Argentina		149		19.0			80			25.9			53		37.2
Rest		27		(37.2	)		(2	)		—			12		(46.7	)
Subtotal		2,369		17.0			1,307			26.6			639		9.9
Santander Private Banking		75		13.6			47			14.4			42		13.7
Total		2,444		16.9			1,354			26.1			681		10.1

32 January — March 2007

Information by principal segments (LOGO)

Latin America. Main units


	Brazil						Mexico						Chile
Million euros	Q1’ 07			Var. (%)			Q1’ 07			Var. (%)			Q1’ 07			Var. (%)
Income statement
Net interest income		525			12.5			457			33.6			215			9.2
Inc. from companies accounted by equity method		0			(59.8	)		0			—			(0	)		—
Net fees		281			17.7			140			1.0			91			5.9
Insurance activity		21			154.8			10			63.7			10			25.0
Commercial revenue		828			15.8			607			24.7			316			8.5
Gains (losses) on financial transactions		133			49.7			8			(69.7	)		38			(9.8	)
Gross operating income		961			19.5			615			20.0			353			6.2
Income from non-financial services (net) and other operating income		(2	)		—			(20	)		13.3			(5	)		104.2
Operating expenses		(413	)		3.7			(231	)		1.3			(138	)		1.4
General administrative expenses		(381	)		3.2			(212	)		0.5			(126	)		2.0
Personnel		(192	)		(2.4	)		(111	)		3.3			(75	)		1.7
Other administrative expenses		(190	)		9.6			(101	)		(2.4	)		(50	)		2.6
Depreciation and amortisation		(31	)		9.2			(19	)		11.2			(13	)		(4.9	)
Net operating income		547			33.5			364			36.3			210			8.4
Net loan loss provisions		(174	)		70.5			(90	)		201.4			(31	)		(12.6	)
Other income		(20	)		—			(3	)		(78.7	)		12			—
Profit before taxes		352			14.6			271			20.5			190			21.1
Tax on profit		(124	)		16.8			(66	)		76.8			(31	)		23.0
Net profit from ordinary activity		228			13.4			206			9.4			160			20.8
Net profit from discontinued operations		—			—			—			—			—			—
Net consolidated profit		228			13.4			206			9.4			160			20.8
Minority interests		4			11.9			50			8.2			29			56.2
Attributable profit to the Group		225			13.4			156			9.8			131			14.9
Balance sheet
Loans and credits*		14,614			30.3			13,750			4.5			15,494			1.6
Trading portfolio (w/o loans)		7,055			(15.8	)		13,249			(6.3	)		1,426			44.1
Available-for-sale financial assets		2,708			(57.1	)		6,406			45.6			711			(41.2	)
Due from credit institutions*		2,425			(69.7	)		5,524			(30.0	)		2,678			(39.9	)
Intangible assets and property and equipment		664			75.4			365			15.8			301			(5.2	)
Other assets		10,567			13.4			5,610			2.7			1,500			8.8
Total assets/liabilities & shareholders’ equity		38,034			(12.8	)		44,904			(1.0	)		22,110			(6.3	)
Customer deposits*		18,288			58.3			22,631			(5.0	)		13,372			0.8
Marketable debt securities*		947			0.9			996			(63.7	)		1,467			(8.5	)
Subordinated debt		1,510			273.3			58			(6.8	)		690			13.1
Insurance liabilities		1,550			28.2			92			30.8			59			26.2
Due to credit institutions*		5,592			(71.5	)		12,273			2.4			3,586			(32.2	)
Other liabilities		7,172			3.8			6,800			57.1			1,520			49.6
Shareholders’ equity		2,975			1.5			2,054			(13.2	)		1,416			(20.5	)
Other customer funds under management		18,326			40.2			12,403			13.3			12,213			16.2
Mutual funds		17,558			41.0			9,017			17.7			3,811			29.6
Pension funds		—			—			3,386			3.2			8,402			11.0
Managed portfolios		768			25.0			—			—			—			—
Savings-insurance policies		—			—			—			—			—			—
Customer funds under management		39,071			50.5			36,088			(3.9	)		27,742			6.8


(*)		Includes all stock of concept classified in the balance sheet

January — March 2007 33

Information by principal segments

Brazil

Santander Banespa is one of the main franchises in Brazil. It has a market share of 4%-6% for the country as a whole and double that in the south-southeast of Brazil, the strategically key area for the Group, particularly in the state of Sao Paulo. The Group has 2,044 branches (net rise of 167 since March 2006) and 7.6 million customers.

After growth of 3.7% in 2006, the economy is expected to expand by around 4% in 2007, spurred by strong investment, the better business climate and a fall in nominal interest rates. The balance of payments remains solid. The country’s convergence towards investment grade and the gradual decline in interest rates create a favourable environment for growth in banking business, which requires further liberalisation measures

In this scenario, Grupo Santander is very well positioned: in 2006, the brand was unified, IT integrated and the banks in Brazil were merged into one (Santander Banespa). This year the Group will continue to focus on expanding its businesses: acquisition, linkage and retention of individual customers, growth in distribution businesses (auto finance, loans linked to deposit of payroll, credit cards), business with SMEs and companies and leveraging the Group’s global scope to consolidate a dominant position in global wholesale banking.

The number of customers rose by 804,000 in the year to March. Of them, 165,000 came from the agreement with the municipal government of Río de Janeiro (September 2006) to manage the salaries of its employees. This gives Santander Banespa a solid platform for profitable growth in one of Brazil’s most attractive markets. Also strategically important was the marketing of the Santander Light credit card (690,000 issued since August 2006). Other innovative products are the “Super Casa 20” and the “Multi Retorno Mais” and “Multi Retorno” mutual funds.

Lending rose 34% excluding the exchange rate impact. Particularly noteworthy was the rise in lending to individual customers (+27% year-on-year, +66% via credit cards +74% via loans linked to payroll deposit, +31% in auto finance and +34% to SMEs and companies). These growth rates produced a gain in market share to 6.0% (that for loans to individuals gained 42 b.p over the last 12 months).

Deposits and mutual funds increased 25%. Of note is the growth of mutual funds (44%) and especially in the retail segments (8.5% compared to a total market share in mutual funds of 5.0%).

Commercial revenue increased 21.3%, aided by the strong rise in business volumes and the growth in fees (+23.3%). Spreads, however, declined because of lower interest rates. Gains on financial transactions surged 56.9%, thanks to the revaluation of treasury positions and capital gains from the rotation of portfolios, taking advantage of the market opportunities provided by an environment of low interest rates.

Growth in costs was controlled (+8.6% compared to average inflation of 3.0%), in spite of the expenses incurred in ongoing business development plans. Net operating income was 39.9% higher.

Lastly, net loan-loss provisions increased 78.7%, as a result of greater lending and focusing the business model on products and segments with a higher risk, but with a greater return. The risk premiums of individual customers and SMEs tended to stabilise in relation to the fourth quarter of 2006.

Attributable profit was 18.8% higher at EUR 225 million (+13.4% in euros).

Retail Banking’s profit before tax increased 6.4%, Global Wholesale Banking’s was up 31.3% and Asset Management and Insurance’s 67.5%.

The efficiency ratio was 40.6% (6.2 p.p. better than in March 2006), the recurrence ratio was 73.8% (improvement of 9.0 p.p.) and ROE was 32.0%. The NPL ratio stood at 2.62% and NPL coverage was 99%.

34 January — March 2007

Information by principal segments (LOGO)

Mexico

Santander Serfin is the third largest banking group in Mexico by business volume, with a market share in loans of 15.0%, 16.2% in deposits and mutual funds and 6.5% in pensions. The Group has 1,038 branches (net rise of 26 since March 2006), 8.3 million customers (+2 million) and 3.0 million pension fund participants.

The economic outlook is very positive this year, with GDP growth of around 4% and investment rising by close to 10%. The Congress’s recent approval of pension reforms represents a significant step in structural reforms and sends a positive signal to public finances and the economy.

The strategic focus in 2007 continues to be on developing and linking customers, and profitable growth in business. The two main engines for increasing the number of customers are payment of payrolls into accounts and credit cards, while linkage is achieved through Santander Serfin’s own credit card, consumer lending and insurance.

In year to March 1.4 million new credit were cards issued for a total of 4.8 million and 43,000 new consumer credits were granted since December 2006. Of note were the “Crédito Nómina” and the “Crédito Efectivo.” As regards the deposit of payrolls, 1.9 million were paid into accounts (1.6 million in the first quarter of 2006).

Loans (excluding the IPAB paper, the former mortgage portfolio and restructured credits) increased 36% in local currency. Products for individual customers continued to grow the most. Consumer credit and loans via credit cards increased 79% year-on-year, producing a gain of 374 b.p. in the market share of these products in the last 12 months. The market share in new mortgages was 9.8%. Loans to SMEs increased 81%. Of note w as the growth in the “Crédito Agil” and “e-Pyme” products.

Deposits and mutual funds grew 8%. Of note was the 16% rise in demand deposits, again faster than the market average. Mutual funds increased 30%. As a whole, the market share in bank savings reached 16.2%.

Commercial revenue increased 41.3%. Net interest income was up 51.5%, positively benefiting from the strong growth in business volumes, especially loans to individuals, and from the increase in the spread on the lending portfolio, the result of appropriate management of prices and the greater share of more profitable loans.

Net fees and insurance grew 17.4%, while gains on financial transactions were 65.7% lower than in the first quarter of 2006, because of the capital gains generated in that period and the impact in that quarter on the value of portfolios of rises in long-term interest rates.

Operating expenses rose 14.8%, due to those linked to expanding the installed capacity and ongoing business development programmes. The combination of the growth in costs and the surge in gross operating income pushed up net operating income by 54.5%.

Net loan-loss provisions tripled as a result of the shift in lending towards products with a higher spread but also a greater risk. This, coupled with the increase in the tax burden (from 16% to 24%), led to a rise of 24.4% in net attributable profit (9.8% in euros), to EUR 156 million in the first quarter of 2007.

By segments, Retail Banking’s profit before taxes was 65.2%. The lower profits from Global Wholesale Banking and Asset Management and Insurance were due to the impact of trading gains in the first case and to pensions in the second.

The efficiency ratio improved by 6.9 p.p. to 37.3%, the recurrence ratio was 66.2% and ROE 25.4%. The non-performing loans ratio (0.83%) and coverage (241%) continued to underline the high credit risk quality.

January — March 2007 35

Information by principal segments

Chile

Santander Santiago is the largest financial group in Chile (in terms of customers, distribution network and net profit). Its market shares are: 22.4% in loans 22.5% in deposits and mutual funds and 12.3% in pensions. It has 442 branches, 2.5 million customers and 729,000 participants in pension plans.

The economy continued to grow briskly (between 5.0% and 5.5% this year), thanks to a stronger industrial sector and investment. Employment continues to rise and inflation is close to the lower target range of the central bank, which shaved 25 b.p. off its key rate in January 2007. There could be further cuts this year.

Santander Santiago continued to focus on increasing the number of customers and their degree of linkage and on growing at a faster pace than the market, particularly in business with individuals and SMEs.

The denser distribution network (net rise of 32 branches since March 2006) and improvements in the quality of service helped to increase the number of customers by 9% and the number of linked ones by 22%.

The number of credit cards rose 13% and 30,000 consumer loans were granted since December 2006, 55% of which were by Banefe, the Group’s consumer banking and micro credit unit. The number of customers whose salaries are paid into their accounts increased 34% and we captured around half of the new accounts opened in the country.

The portfolio of loans to individual customers increased 19%. Of note was the 26% rise in consumer credits and loans via credit cards.

The market share of lending to individuals reached 26.3% (+1.1 p.p. since March 2006). Loans to SMEs rose 24%. Deposits and mutual funds increased 19% and the market share was 22.5%.

In results (and always in local currency), gross operating income increased 18.9%. Net interest income was up 22.3%, thanks to the sharp rise in the most profitable segments and products of retail banking. Spreads were generally held. Revenues from fees and insurance grew 20.4%.

Operating expenses, despite the development of business infrastructure, rose 13.5% (inflation of 2.6%). Net operating income was 21.3% higher. Net loan-loss provisions were down 2.1%.

Attributable profit was 28.7% higher at EUR 131 million, (+14.9% in euros). Net profit (before the increase in minority interests from the placement of 7.23% of Banco Santander Chile in the fourth quarter of 2006) increased 35.2%.

Retail Banking’s profit before tax rose 48.3%, Global Wholesale Banking’s was 6.8% lower and that of Asset Management and Insurance was 20.3% higher.

The efficiency ratio was 1.8 p.p. better at 39.2%. The recurrence ratio was 72.1% and ROE 37.1%. The NPL ratio was 1.70% and coverage 148%.

El Efficiency ratio mejora 1,8 puntos, hasta el 39,2%. La recurrencia y el ROE se sitúan en el 72,1% y 37,1%, respectivamente. El ratio de morosidad es del 1,70% y la tasa de cobertura del 148%.

Others countries

Argentina

Banco Río is one of the country’s leading banks, with market shares of 10.1% in deposits plus mutual funds, 9.8% in loans and 19.1% in pensions. The Group has 368 branches (49 more than in March 2006), 1.9 million customers (+250,000 in 12 months and +29% in linked customers) and 2.3 million pension fund participants.

The economy’s fundamentals are solid. The current account is expected to be in surplus this year and also the general government budget. GDP is expected to continue to grow on a sustained basis.

36 January — March 2007

Information by principal segments (LOGO)

The strategy this year focuses on developing customer business, following the cleaning up of the portfolio of government securities in 2005 and 2006 (done in Spain in 2002). Government securities ($300 million) were sold in the first quarter, reducing the exposure to the public sector to 13% of assets.

Lending rose 46% year-on-year, mainly to individuals (+66%) and SMEs (+65%). The bank has been particularly active in marketing consumer loans and credit cards (more than 37,000 loans in the year to March and 61,000 cards). Of note was the “Super Préstamo 1000/30 loan. In both products combined the bank gained 129 b.p. in market share over the last 12 months. Deposits plus mutual funds rose 44% (+0.4 p.p. in market share).

Attributable profit amounted to EUR 53 million, (+51.3% excluding the exchange rate impact and +32.7% in euros). Gross operating income rose 31.2% compared to an increase of 23.0% in costs, improving the efficiency ratio by 2.7 p.p. to 46.0% The recurrence ratio was 98.9%, the NPL ratio stood at 1.13% and coverage was 252%.

Puerto Rico

Santander Puerto Rico is one of the island’s largest financial institutions. It has 140 branches, 333,000 customers and market shares of 10.4% in loans, 11.5% in deposits and 22.8% in mutual funds.

The economy was in recession in the first quarter of 2007, affecting both the pace of banking business growth, which is slowing down, and profitability, under pressure from lower growth in activity and the rise in risk premiums.

In this environment, the Group is focusing on developing business with individual customers (consumer loans and mortgages) and companies, and is paying particular attention to asset quality. Lending increased 15%, without the exchange-rate impact, while deposits (excluding repos) and mutual funds rose 7%.

Attributable profit was EUR 10 million, +47.8% excluding the exchange rate impact (+35.5% in euros). Commercial revenue was 22.7% higher and costs 12.8%. The efficiency ratio was 61.4%, the recurrence ratio 39.2% and ROE 9.1%. The ratio of non-performing loans was 1.98% and coverage 154%.

Venezuela

Banco de Venezuela is one of the country’s largest banks, with market shares of 13.1% in loans and 10.8% in deposits. It has 282 branches and 2.5 million customers (+388,000 since March 2006).

Oil prices remained at historically high levels, fuelling strong growth in the Venezuelan economy and generating a continued surplus in both the general government sector and the current account. Excess liquidity continued to exert downward pressure on interest rates.

The focus this year is on boosting recurrent revenues, through growth in lending to individuals, transactional deposits and fee-generating services. As a result of this strategy, total lending grew 77% and 144% in credit via cards and 134% in consumer credits (“Crediauto”, “Credinómina”). Growth in loans to SMEs was also impressive at 143%. While deposits plus mutual funds grew 52%, demand deposits increased 72%.

Attributable profit was EUR 46 million, +18.0% excluding the exchange rate impact (+8.2% in euros). Commercial revenue was up 52.2% and costs 60.5%, both in local currency (18.5% inflation).

The efficiency ratio was 48.2% and the recurrence ratio 55.1%. ROE was 44.4%, the NPL ratio stood at 0.85% and coverage was 493%.

Colombia

The Group’s market shares in Colombia are 3.0% in loans and 2.6% in deposits plus mutual funds.

Against a favourable environment of economic and financial stability, the Group is focusing on developing its franchise and on selective business growth, particularly in the retail segments. Lending to individual customers and SMEs rose 16% (gain of 84 b.p. in the market share of mortgages and 36 b.p. in consumer loans), and deposits and mutual funds decreased 2%.

Attributable profit was EUR 8 million, 51.0% less than in the first quarter of 2006 excluding the exchange rate impact, largely because of higher gains from financial business, and the extraordinaries generated in the first quarter of 2006. The NPL ratio was 0.40% and coverage 554%.

Uruguay

Attributable profit was EUR 7 million.

Santander Private Banking

This unit’s attributable profit was 24.0% higher at $54 million, thanks to the 24.7% rise in net operating income.

The main objectives in 2007 are to increase the volume of managed assets, which already exceed $30,000 million, provide customers with a consistently high quality service and successfully integrate the portfolio of customers acquired from Bank of America.

In order to achieve the latter objective, Santander Private Banking developed a plan to hire the sales force responsible for relations with customers in Bank of America and it opened new offices in the US. This team includes 24 experts in Asian customers.

January — March 2007 37

Information by principal segments

Financial Management And Equity Stakes


							Variation
Million euros	Q1’ 07			Q1’ 06			Amount			(%)
Income statement
Net interest income (w/o dividends)		(394	)		(256	)		(139	)		54.2
Dividends		3			14			(11	)		(75.7	)
Net interest income		(391	)		(241	)		(149	)		61.8
Inc. from companies accounted by equity method		56			126			(70	)		(55.2	)
Net fees		12			(4	)		16			—
Insurance activity		(1	)		0			(1	)		—
Commercial revenue		(323	)		(119	)		(204	)		171.6
Gains (losses) on financial transactions		(132	)		(126	)		(6	)		4.5
Gross operating income		(455	)		(245	)		(210	)		85.6
Income from non-financial services (net) and other operating income		(5	)		(2	)		(3	)		124.3
Operating expenses		(193	)		(165	)		(28	)		17.1
General administrative expenses		(126	)		(111	)		(15	)		13.8
Personnel		(48	)		(58	)		10			(18.0	)
Other administrative expenses		(79	)		(53	)		(26	)		49.1
Depreciation and amortisation		(67	)		(54	)		(13	)		23.9
Net operating income		(653	)		(412	)		(241	)		58.4
Net loan loss provisions		9			(0	)		9			—
Other income		(149	)		(43	)		(107	)		249.0
Profit before taxes		(794	)		(456	)		(338	)		74.2
Tax on profit		304			227			78			34.2
Net profit from ordinary activity		(489	)		(229	)		(261	)		114.0
Net profit from discontinued operations		—			0			(0	)		(100.0	)
Net consolidated profit		(489	)		(229	)		(261	)		114.0
Minority interests		6			38			(32	)		(83.5	)
Attributable profit to the Group		(496	)		(267	)		(229	)		85.8
Balance sheet
Trading portfolio (w/o loans)		1,181			1,256			(74	)		(5.9	)
Available-for-sale financial assets		9,960			42,534			(32,574	)		(76.6	)
Investments		4,839			2,933			1,906			65.0
Goodwill		14,368			14,012			356			2.5
Liquidity lent to the Group		79,294			53,001			26,293			49.6
Capital assigned to Group areas		34,505			29,315			5,190			17.7
Other assets		37,116			29,010			8,106			27.9
Total assets/liabilities & shareholders’ equity		181,263			172,061			9,202			5.3
Customer deposits*		187			617			(431	)		(69.7	)
Marketable debt securities*		82,731			62,202			20,528			33.0
Subordinated debt		19,303			14,612			4,692			32.1
Preferred securities		—			—			—			—
Other liabilities		35,640			56,223			(20,582	)		(36.6	)
Group capital and reserves		43,402			38,407			4,995			13.0
Other customer funds under management		—			—			—			—
Mutual funds		—			—			—			—
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Savings-insurance policies		—			—			—			—
Customer funds under management		102,221			77,432			24,789			32.0


(*)		Includes all stock of concept classified in the balance sheet

38 January — March 2007

Information by principal segments (LOGO)

Financial Management and Equity Stakes

This area is responsible for a series of centralised activities and acts as the Group’s holding entity, managing all capital and reserves and assigning capital and liquidity to the other businesses on the basis of the criteria set out on page 20 of this report.

The cost of liquidity, via the transfer of funds to various businesses, is done at the short-term market rate, which was 3.70% in the first quarter of 2007 (2.47% in the same period of 2006).

The area registered a loss, as is usual, of EUR 496 million (EUR 267 million loss in 1Q06).

Gross operating income was EUR 455 million negative, EUR 210 million lower than in the first quarter of 2006. This fall was due mainly to two negative impacts: the effect on net interest income that the rise in interest rates had on the cost of financing, reduced profits by the equity accounted method because of the lower results recorded in this line by Cepsa.

Costs rose by EUR 28 million (+171%), because of the greater expenses incurred from the development of the single brand and those associated with sponsorship and Santander’s 150th anniversary, as well as an increase in the amortisation of intangibles (+EUR 13 million).

Net loan-loss provisions were EUR 9 million, reflecting the net amount between the country-risk provisions from intragroup operations and the release of NPLs from one-off reductions of negative balances in mutual and correspondent accounts.

“Other income” was negative in both years because of various provisions and allowances recorded here, such as pension charges.

A more detailed analysis of the area’s subsegments:

•

Equity Stakes: this sub segment centralises the management of equity stakes in financial and industrial companies.

The main developments between the two periods (Q1’06 and Q1’07) were: the acquisition of 24.8% of Sovereign Bancorp and the sale of 4.8% of Sanpaolo IMI. At the end of March 2007, Grupo Santander’s stake in the new bank Intesa Sanpaolo was 1.7%.

At the end of March 2007, the unrealised capital gains in listed financial and industrial stakes remained at more than EUR 4,000 million.

•

Financial Management: this area carries out the global functions of managing the structural exchange rate position, the structural interest rate risk of the parent bank and the liquidity risk. The latter is conducted through issues and securitisations. It also manages shareholders’ equity.

The cost of hedging the capital of the Group’s non-euro denominated investments is another activity. The current hedging policy is aimed at protecting the capital invested and the year’s results through various instruments that are deemed to be the most appropriate for their management. The main units with exchange rate risk, except for Brazil, continued to be hedged in 2006 and the first quarter of 2007.

The losses on financial transactions were due to losses registered by exchange rate differences, mainly on dividends from subsidiaries and from the reduced value of equity operations. In the first quarter of 2006 the allowances for hedging interest rates was recorded in this line.

This sub segment also manages shareholders’ equity, the allocation of capital to each business unit, and the cost of financing investments. This means that the contribution to earnings is usually negative.

January — March 2007 39

Information by secondary segments

Income statement and business volumes secondary segments


	Operating						Retail						Global						Asset Management
	business areas						Banking						Wholesale Banking						and Insurance
Million euros	Q1’ 07			(%)			Q1’ 07			(%)			Q1’ 07			(%)			Q1’ 07			(%)
Income statement
Net interest income		3,899			22.8			3,562			23.6			325			14.6			12			35.1
Inc. from companies accounted by equity method		4			(16.9	)		4			(16.9	)		—			—			—			—
Net fees		2,075			19.2			1,597			11.7			325			108.3			154			(1.7	)
Insurance activity		96			45.3			0			—			—			—			96			45.0
Commercial revenue		6,074			21.8			5,163			19.6			650			47.8			262			13.0
Gains (losses) on financial transactions		624			16.7			337			18.1			281			18.6			6			(51.3	)
Gross operating income		6,698			21.3			5,499			19.6			931			37.6			268			9.8
Income from non-financial services (net) and other operating income		(13	)		—			(6	)		—			(7	)		(20.6	)		(0	)		(91.7	)
Operating expenses		(2,757	)		6.9			(2,455	)		6.3			(207	)		10.9			(95	)		13.6
General administrative expenses		(2,516	)		6.9			(2,241	)		6.5			(186	)		10.0			(88	)		11.0
Personnel		(1,503	)		5.5			(1,339	)		5.1			(116	)		9.8			(48	)		5.3
Other administrative expenses		(1,013	)		9.2			(903	)		8.7			(70	)		10.3			(41	)		18.6
Depreciation and amortisation		(241	)		6.5			(214	)		4.2			(21	)		20.1			(7	)		59.2
Net operating income		3,928			33.4			3,038			31.9			717			48.9			172			8.0
Net loan loss provisions		(679	)		35.7			(723	)		59.4			44			—			(0	)		—
Other income		47			136.2			19			—			34			(10.0	)		(5	)		204.4
Profit before taxes		3,297			33.7			2,334			27.2			795			68.5			167			5.7
Business volumes
Total assets		846,327			7.4			674,358			6.1			154,173			8.3			17,796			80.9
Loans and credits		530,093			17.6			484,443			16.3			45,508			33.2			142			(12.0	)
Customer deposits		326,924			7.7			284,807			10.8			42,117			(9.5	)		0			(99.3	)

Retail banking

The Group’s Retail Banking generated 82% of the operating areas’ total gross operating income in the first quarter of 2007 and 71% of profit before tax (EUR 2,334 million, 27.2% more than in the same period of 2006). Continental Europe, Abbey and Latin America all performed well.

Gross operating income was 19.6% higher at EUR 5,499 million. Net interest income increased 23.6%, spurred by greater business and better customer spreads, and net fees rose 11.7%.

Operating expenses grew 6.3%, well below the rise in gross operating income. As a result, the efficiency ratio for the whole of Retail Banking was 5.3 p.p. better and for the first time was below 45% (43.6%).

Net operating income increased 31.9% to EUR 3,038 million.

Net loan-loss provisions were 59.4% higher than in the first quarter of 2006 because of the greater volume of lending and the entry into more profitable segments and products, but with a greater risk premium, as well as the incorporation of Drive which, given its business structure, has a larger relative impact in this line of business than in others.

Customer lending rose 16% and deposits 11% in the year to March.

•

Retail Banking in Continental Europe continued the growth trends in volume and earnings of the last two years. Net interest income rose 27.5%, net operating income 31.2% and profit before tax 27.2%. All units (Santander Branch Network,

40 January — March 2007

Information by secondary segments (LOGO)

Banesto Retail, Santander Consumer Finance, Portugal Retail and Banif) grew at a brisk pace.

The first quarter of 2007 includes, for the first time, the results of the US company Drive. Excluding it, profit before tax was 23.3% higher.

As in 2006 there were three main drivers: business growth (+21% in lending and +12% in deposits), good management of prices in an environment of rising interest rates and selective growth in costs. The efficiency ratio was 38.8% (43.1% in the first quarter of 2006).

•		Net operating income generated by Abbey’s Retail Banking was 23.8% higher, thanks to the 10.7% rise in gross operating income and containment of costs, which were slightly lower. The combined effect was an improvement in the efficiency ratio of almost 5.5 p.p. (from 56.3% in Q106 to 50.8% a year later). As a result of slightly lower loan loss provisions, profit before tax was 35.5% higher (32.5% in sterling).

•		The good earnings performance of Retail Banking in Latin America was due to strong growth in customer business, the good performance of net interest income and net fees, and control of costs which was compatible with business development. Commercial revenue increased 20.3%, net operating income 37.5% and profit before tax 22.6%. The respective increases, excluding the exchange rate impact, were 30.9%, 50.0% and 34.1%, respectively.

		The strategy based on increasing the number of individual customers and SMEs, developing anchor products, such as payroll and credit cards, and the focus on more profitable products in all countries was generally reflected in these increases.

The performance of the three main countries (Brazil, Mexico and Chile) was very good. Their commercial revenue (in euros) grew 18.8%, a pace which reached 38.6% in net operating income and 24.9% in profit before tax. Excluding the exchange rate impact, the growth rates were 29.3%, 51.2% and 36.8% respectively.

Private banking generated profit before tax of EUR 69 million, 16.1% higher than in the first quarter of 2006 and largely thanks to the good performance of revenues which were over 25% for the most recurrent revenues.

Retail Banking. Results

Gross operating

Net operating

Profit before

income

taxes

Million euros

Q1’ 07

Var. (%)

Q1’ 07

Var. (%)

Q1’ 07

Var. (%)

Continental Europe

2,637

21.7

1,596

31.2

1,279

27.2

o/w: Spain

1,886

17.2

1,113

26.0

971

30.7

Portugal

262

6.8

136

5.8

131

3.2

United Kingdom (Abbey)

954

10.7

476

23.8

400

35.5

Latin America

1,907

21.5

966

37.5

655

22.6

o/w: Brazil

713

17.0

338

31.0

163

1.5

Mexico

514

31.6

299

65.1

205

45.8

Chile

288

12.4

165

18.4

145

32.5

Total Retail Banking

5,499

19.6

3,038

31.9

2,334

27.2

January — March 2007 41

Information by secondary segments

Global Wholesale Banking

This segment, managed by Santander Global Banking & Markets, contributed 14% of total gross operating income and 24% of profit before tax (EUR 795 million, 68.5% more than in the first quarter of 2006).

These good results were due to the increasing contribution of businesses with greater value-added (global transactional banking, investment banking and markets) which accelerated the growth in customer revenues to 51% year-on-year and to the release of generic provisions.

The strong growth in customer revenues reflects the return on the investment made over the last few years in product and business capacity applied at a decisive moment in corporate operations in the regions where we operate, together with the Group’s notable involvement in large operations in Spain in the last few quarters.

Gross operating income was 37.6% higher, spurred by net fees which doubled because of the sharp rise in advisory activities, structured finance and trading of securities. Net interest income increased 14.6% and gains on financial transactions increased 18.6%, with a larger share from those generated by customers.

Costs rose 10.9% because of the investment in development projects in the areas of markets and global transactional banking. They grew, however, at a much slower pace than gross operating income and produced a strong gain in the efficiency ratio of almost 5 p.p. to close to 20%.

Net operating income was 48.9% higher at EUR 717 million and profit before tax increased 68.5% due to the release of generic provisions as a result of the decline in the area’s risk, mainly due to some one-off operations reaching close to their definitive structure.

Santander Global Banking & Markets continued to consolidate the global focus of business by increasing the number of globally managed customers and strengthening the area’s product management capacities. The business model is structured in a double (customer-product) vector.

In the customer vector, the Global Customer Relationship Model, which manages the main corporate and institutional customers, increased its perimeter with the addition of 121 new customers, mostly from Latin America and previously managed by Retail Banking. Gross operating income generated by this model, on a like-for-like basis after adjusting 2006’s figures to the new perimeter, was 87% higher at EUR 379 million, reflecting the strong activity increase arisen from the participation on important corporate operations.

The product vector has three large areas:

1) Global Transactional Banking

This area, which covers global cash management, basic financing, trade finance and custody, grew 5% year-on-year impacted by the lower revenues from basic financing.

By products, the largest increase in business and revenues came from cash management, with strong growth in all geographic areas (+22% in Latin America and +20% in Europe).

2) Global Investment Banking.

This area continued to do well in the markets where we operate and in all business areas (corporate finance, structured finance and asset and capital structuring). Gross operating income was four times more than in the first quarter of 2006.

In Corporate Finance, business growth was maintained by the development of our knowledge of sectors at the global level which enabled us to participate in 87 operations. Of note in mergers and acquisitions were the following: advice provided to Grupo Ferrovial in the sale of its real estate division to Habitat for EUR 2,200 million and the privatisation of Empresa Colombiana de Gas for $1,400 million, the largest in Colombia’s history and where Santander advised the government on how to sell and structure the company. In fixed-income origination, several placements totalling close to EUR 2,500 million were made in which Santander was the book runner.

The structured finance area was also very active in closing 48 operations in the first quarter. Of note in trade finance were agreements with several toll road companies and in financing acquisitions, the acquisition of Avanza and the already mentioned deal between Habitat and Ferrovial Inmobiliario. In syndicated loans, of note was Santander’s participation as mandated lead arranger in financing FCC’s purchase of Waste Recycling Group, Iberdrola’s acquisition of Scottish Power and financing Vodafone’s acquisition of Hutchinson Essar in Europe.

The magazine Euromoney recognised the Group’s good performance in this area by awarding Santander Global Banking & Markets five Deal of the Year 2006 awards in the category of Project Finance Americas to the following operations: Conipsa (Mexico), Ate II (Brazil), Ibermex (Mexico), Indiana Toll Road (US) and Canaport (US).

Lastly, in Asset and Capital structuring, Santander continued its focus in innovation on designing structures for asset financing and optimisation of capital. More than 40 loan optimisation operations were closed in the first quarter, as well as an off-take contract for

42 January — March 2007

Information by secondary segments (LOGO)

emission rights with FC2E and the incorporation of new solar power investment projects for BP Solar.

3) Markets.

This area covers global treasury activities and distribution of equities. Gross operating income was 19% higher, backed by solid activity with customers (+27%).

Global treasury’s gross operating income was 13% higher than the first quarter of 2006 mainly because of revenues from customers which increased 17% year-on-year, thanks to the high contribution of Santander Global Markets (SGM) with wholesale customers and Santander Global Connect (SGC) with retail customers.

Of note by geographic areas were Spain and Portugal whose revenues from customers were 58% higher than in the first quarter of 2006, driven by the increasing contribution of Santander Global Markets which is in a phase of acceleration. This contribution is the result of the participation in significant operations with wholesale customers, value-added solutions and strong activity, as well as productive management of the associated flows and books.

Santander Global Connect continued to make a notable contribution, underscored by the success of its collaboration model with retail networks, which is being extended to the rest of the Group’s treasuries.

A good example of this strategy is the growth in Portugal in customer revenues which tripled those obtained in the first quarter of 2006, after large sales of structured derivative products to the country’s main companies.

In Latin America, Santander continued to be the region’s benchmark in treasury. All treasuries had a good quarter, although lower than a year earlier which was the highest of the year. The drivers were strong activity and efficient management of proprietary business in a volatile environment.

Of note in Brazil was activity with corporate and institutional customers in a seasonally low quarter when we continued to achieve greater diversification by products and segments.

In Mexico, Santander remained the leader in the currency, fixed income and organised derivatives markets, focusing on clients as well as professional markets. The SGC project in cooperation with retail banking was also being speeded up.

Chile remained the leader in currency, fixed income and local derivatives markets. The SGC project launched at the beginning of 2006 continues to help achieve recurrent revenues, backed by innovation in products.

Lastly, revenues from equity business were 67% higher than in the first quarter of 2006, due to participation in significant operations and our solid position of leadership in brokerage business Spain (market share of 11.14% including Banesto Bolsa).

January — March 2007 43

Information by secondary segments

Asset Management and Insurance

This segment accounted for 4% of gross operating income and 5% of profit before tax. The latter was EUR 167 million.

Revenues from insurance (+45%) offset the decline in net fees, largely due to the smaller contribution of Mexico’s pensions and the impact of exchange rates on Latin America’s revenues. Gross operating income increased 9.8% year-on-year, lower than the 13.6% rise in costs, and so net operating income only grew 8.0%.

Taking a broader look, based on revenues generated for the Group by mutual and pension funds and insurance, including those recorded by the distribution networks, revenues amounted to EUR 967 million, 17% more than in the first quarter of 2006 .

These increases and others in the rest of this section are calculated on a like-for-like basis after eliminating the impact on results of the businesses sold in 2006 (Abbey’s life assurance and Peru’s pensions) which are recorded as “net profit from discontinued operations.”

Asset Management

Santander Asset Management’s global business of mutual and pension funds generated EUR 525 million of fees for the Group, 2.9% more than in the first quarter of 2006. Profit before tax, after deducting operating expenses and fees paid to the networks, was 14.8% lower at EUR 83 million because of the regulatory pressure in Latin American pension business.

Total managed assets were EUR 161,000 million (+12% y-o-y). The strategy continued to focus on developing platforms for transnational investment, improving the product mix, launching innovative products and optimising efficiency in order to improve operating margins.

In Spain, within traditional asset management, the Group manages more than EUR 68,000 million in funds and investment companies and is the leader (market share of 24% in real estate funds according to Inverco). The dividend and mixed funds are the most popular ones for investors. Santander Asset Management captured the largest volume of these products and Santander Dividend Europe was the most sold equity fund in the first quarter.

Pension plans under management in Spain amounted to EUR 10,000 million, 10% more year-on-year and driven by individual plans (more than 80% of the total).

In Portugal, mutual and pension fund management focused on launching value added products, enabling it to improve its average commission. Managed assets were 9% higher than in March 2006 at EUR 7,600 million.

The UK, where we had EUR 14,400 million of assets under management at the end of the first quarter, is moving forward according to plan.

The mutual funds in the main Latin American countries performed well. In Brazil, with almost EUR 17,600 million under management (+44% y-o-y in local currency), we reached the 5th spot in the market by volume as a result of the success of the multi-market funds. In Mexico (EUR 9,000 million under management) and Chile (EUR 3,800 million) the increases were more than 30% in local currency. Of note among the other countries with their own networks were Argentina (+69%) and Puerto Rico (+14%).

Meanwhile, Santander Asset Management maintained a strong presence in alternative management products (more than EUR 10,000 million). Of note here were:

•

The solid growth of Optimal in managed assets (+32% y-o-y excluding the exchange rate) and in the performance, despite the market’s turbulence. In the Spanish market, Optimal Alternative Management participated with Santander Asset Management in the hedge funds launched in 2006: Santander Dinámico Alternativo and Banesto Dinámico Alternativo.

Asset management and Insurance. Results


	Gross operating					Net operating					Profit before
	income					income					taxes
Million euros	Q1’ 07		Var. (%)			Q1’ 07		Var. (%)			Q1’ 07		Var. (%)
Mutual funds		92		2.1			54		1.3			53		(0.5	)
Pension funds		66		(11.7	)		30		(31.8	)		29		(32.4	)
Insurance		110		39.1			89		41.1			84		38.3
Total Asset Management and Insurance		268		9.8			172		8.0			167		5.7

44 January — March 2007

Information by secondary segments (LOGO)

•

In real estate funds, where we are the clear leader in Spain (market share of 46% according to Inverco), the management capacities of the investment companies for private banking customers were widened.

•

In venture capital funds, Santander Private Equity managed EUR 310 million at the end of March 2007.

Lastly, pensions business in Latin America continued to be affected by the regulatory pressures on commissions in most markets. The volume under management, however, increased 20% in local currency on a like-for-like basis in the year to March. Of note was the growth in Chile (+25% to EUR 8,400 million), Argentina (+20% to EUR 4,300 million) and Mexico (+14%; EUR 3,400 million). Only Colombia registered growth in local currency below two digits (8%; EUR 2,200 million).

Insurance

Global insurance business, managed by Santander Insurance, generated total gross operating income (fees and revenues) of EUR 442 million (+40% y-o-y), 6.6% of the operating areas’ total. Its total contribution to the Group, the sum of profit before tax (EUR 84 million) and fees paid to the network, was EUR 420 million (+40.3% more than in Q106).

The division continued its strategic developments in order to lay the foundations for the global business model in all the Group’s units. All the insurance units in the various geographic areas performed well.

Continental Europe, which accounts for 56% of the Group’s total contribution, registered strong growth in all its units. Spain increased its contribution to EUR 122 million (+85% y-o-y), due to its expanded and improved range of products combined with intensive marketing. New products performed well, especially insurance-savings in the Santander Branch Network because of their financial-fiscal return, and extending coverage of death, incapacity and unemployment to products that do not include it such as the direct deposit of payroll cheques and direct debits. Premium income rose strongly (to around EUR 1,000 million).

In Portugal insurance linked to loans grew strongly and, above all, capitalisation-savings products. The total contribution to the Group was 66% higher at EUR 27 million.

Santander Consumer Finance kept up a strong pace of growth in credit-linked insurance. Its contribution via fees increased EUR 89 million, 22% more than in the first quarter of 2006.

UK’s total contribution was EUR 68 million, 3% more than in the first quarter of 2006 in sterling on a like-for-like basis. The product mix was better and there was a larger contribution from the distribution of general insurance and life-protection. The distribution agreements reached after selling the life assurance business, allow Abbey to relaunch its selling capacity in this type of products now being developed by Resolution.

Latin America generated 28% of the total contribution (EUR 116 million; +56% y-o-y in local currency). The drive in marketing products via the branch networks and the development of streamlined and transparent life-risk products increased the contribution from all countries (high double digit growth).

January — March 2007 45

Corporate Governance

On March 26, the Board appointed Isabel Tocino an independent director by co-option. She covered the vacancy produced by the resignation of Mr. Jay S. Sidhu on December 31, 2006. Her appointment will be submitted for ratification by the AGM.

The Bank published its 2006 Annual Report on April 20, 2007 and the reports of the Audit and Compliance Committee and the Appointments and Remuneration Committee. The latter document includes, for the first time, the Report on the Remuneration Policy for Directors, which the Board prepared under the terms of Article 27.1 of its Regulations and will be presented at the AGM.

Under the process of adapting to the Report of the Special Working Group on Good Governance of Listed Companies in Spain, of May 19, 2006 (the “Unified Code”), undertaken by the Bank, the Board agreed at its meeting on March 26, 2007 to make some changes to its internal regulations, affecting both the Regulations of the Board, as well as the Regulations of Shareholders’ Meetings and the corporate By-laws. The changes to the Board’s Regulations were directly approved by the Board, while those for the Regulations of Shareholders’ Meetings and the Corporate by-laws will be submitted for approval to the AGM. The Board has already reported favourably on them.

Between April 20 and the date of the AGM, the Group’s website is showing a comparison in two columns marking the changes in the text of the Board’s Regulations. The proposed changes to the Corporate By-laws and the Regulations of Shareholders’ Meetings, in comparative texts, will be available on the Group’s website as of the date of the calling of the AGM.

Lastly, the corporate services division of ICS Europe (previously, Deminor Rating) accorded the Bank a rating of 8.5 out of 10 in 2006 (8.0 in 2004 and 2005). The rating measures on a scale of 1 (“doubtful practices”) to 10 (“best practices”) the structure and functioning of the Bank’s corporate governance. In the opinion of ICS Europe, Santander is one of the leading companies in Continental Europe in good governance matters, having attained a high rating in each of the areas analysed. Of note is the quality of Santander’s institutional information, where it obtained a particularly high score.

The full ICS Europe report is on the Group’s website (www.santander.com).

46 January — March 2007

Corporate Social Responsibility (LOGO)

Santander Universities

Santander Universities incorporated to its cooperation network two UK universities — Cass Business School and University College London. International mobility programmes with other academic institutions with which Santander has agreements will be developed.

In Spain, we were involved in the “Digital Atlas of Spain’s Universities”, a project conducted by the University of Cantabria to analyse the situation of the country’s higher education and help in future strategic planning.

In line with the objective of strengthening the Latin American dimension of Santander Universities, the Portugal-Brazil programme of scholarships was presented in Lisbon. This will benefit 324 students from 31 universities in these two countries.

Another international exchange programme (Santander-University of Salamanca Scholarships) granted funds to 156 students from 20 Latin American universities for doctorates, degrees and post doctorate research.

Santander cooperates with the Campus Comillas Foundation, which began to organise conferences and seminars with experts in order to become an international reference in training, research and dissemination of the Spanish language and Hispanic culture.

For the third year running, Santander Universities sponsored the Uniemprendia programme in Spain, which selects and trains student entrepreneurs and supports them so they can exploit the results of their research projects.

Universia

Under the auspices of Universia the second Virtual Fair of Employment and Training (www.feriauniversia.es) was held in Spain. This enables students who are completing their studies to know job offers, present their CVs or download information about companies. Some 100 companies and training institutions participated in the fair which attracted 46,000 visitors. More than 900 students conducted on-line interviews for jobs.

Social actions

In Spain the first Meeting of Social Projects opened by the Córner Solidario was held at which the cooperation measures to be developed in several countries were chosen. The Córner Solidario enables employees to present projects fostered by NGOs, who receive money from employees and from the Bank.

A new course of paddle tennis and swimming for the children of employees with physical, mental or visual disabilities was started at the sports centre in the City. Two new adapted skiing courses in the Sierra Nevada were also begun in which more than 30 children of employees participated. They were assisted by specialised teachers from the Deporte y Desafío Foundation.

In Venezuela, the Bank was awarded the “UNICEF cuenta contigo” prize for the success of its programme “Del cajero a la escuela” which captured EUR 600,000 in donations through the network of ATMs and is being used to send poor children to school.

In Colombia, the children of the Aulas de Aceleración, sponsored by the Bank’s employees, received their diplomas at the end of the school year, enabling them to join the official education system. These classrooms provide children, who run the risk of being excluded from society, with a basic education.

The environment

As part of our commitment to protect and conserve the environment, an agreement was signed with the town hall of Boadilla del Monte under which the Bank will reforest with 3,700 trees 20 hectares of municipal land. Children from the area’s schools will help in this project.

In Uruguay, the Bank is supporting environmental education projects for the recycling of paper.

January — March 2007 47

Item 4

Key consolidated data


					Variation
	Q1’07		Q1’ 06		Amount		%		2006
Balance sheet (million euros)
Total assets		844,240		814,738		29,502		3.6		833,873
Customer loans		530,811		451,397		79,414		17.6		523,346
Customer funds under management		770,679		668,715		101,964		15.2		739,223
Shareholders’ equity		42,066		37,295		4,771		12.8		40,062
Total managed funds		1,024,629		974,882		49,747		5.1		1,000,996
Income statement (million euros)
Net interest income (w/o dividends)		3,460		2,883		577		20.0		12,084
Commercial revenue		5,751		4,867		884		18.2		20,436
Gross operating income		6,243		5,276		968		18.3		22,615
Net operating income		3,275		2,533		742		29.3		11,369
Net profit from ordinary activity		1,927		1,576		351		22.3		6,790
Attributable profit to the Group		1,802		1,493		309		20.7		6,582	*
Profitability and efficiency (%)
EPS (euro)		0.2887		0.2390						1.0534	*
Diluted EPS (euro)		0.2874		0.2380						1.0477	*
ROE		18.48		17.12						18.54	*
ROA		0.92		0.81						0.88	*
RORWA		1.61		1.57						1.60	*
Efficiency ratio		46.32		50.88						48.53
Capital and NPL ratios (%)
BIS ratio		13.22		12.84						12.49
Tier I		7.64		7.70						7.42
NPL ratio		0.82		0.86						0.78
NPL coverage		176.70		184.80						187.23
Market capitalisation and shares
Shares outstanding (millions at period-end)		6,254		6,254						6,254
Share price (euros)		13.36		12.05						14.14
Market capitalisation (million euros)		83,557		75,364						88,436
Book value (euro)		6.73		5.96						6.41
Price / Book value (X)		1.99		2.02						2.21
P/E ratio (X)		11.57		12.60						13.42	*
Other data
Shareholders (number)		2,312,076		2,398,089						2,310,846
Number of employees		134,638		126,530						129,749
Continental Europe		46,308		44,155						44,216
United Kingdom (Abbey)		16,616		18,622						17,146
Latin America		69,958		62,259						66,889
Financial management and equity stakes		1,756		1,494						1,498
Number of branches		10,978		10,326						10,852
Continental Europe		5,829		5,444						5,772
United Kingdom (Abbey)		711		712						712
Latin America		4,438		4,170						4,368

(*) w/o net extraordinary gains and allowances.

Income statement

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Net interest income (w/o dividends)		3,460			2,883			577			20.0
Dividends		48			50			(2	)		(3.1	)
Net interest income		3,509			2,933			576			19.6
Income from companies accounted for by the equity method		60			131			(70	)		(53.9	)
Net fees		2,087			1,738			350			20.1
Insurance activity		95			66			29			43.4
Commercial revenue		5,751			4,867			884			18.2
Gains (losses) on financial transactions		492			408			84			20.5
Gross operating income		6,243			5,276			968			18.3
Income from non-financial services		34			38			(3	)		(8.8	)
Non-financial expenses		(18	)		(15	)		(3	)		19.0
Other operating income		(34	)		(21	)		(13	)		63.6
Operating expenses		(2,950	)		(2,744	)		(206	)		7.5
General administrative expenses		(2,642	)		(2,464	)		(179	)		7.2
Personnel		(1,551	)		(1,483	)		(68	)		4.6
Other administrative expenses		(1,092	)		(981	)		(111	)		11.3
Depreciation and amortisation		(308	)		(280	)		(28	)		9.8
Net operating income		3,275			2,533			742			29.3
Impairment loss on assets		(683	)		(512	)		(171	)		33.4
Loans		(670	)		(501	)		(169	)		33.8
Goodwill		—			—			—			—
Other assets		(13	)		(11	)		(2	)		16.3
Other income		(90	)		(12	)		(78	)		653.3
Profit before taxes		2,503			2,009			494			24.6
Tax on profit		(576	)		(433	)		(142	)		32.9
Net profit from ordinary activity		1,927			1,576			351			22.3
Net profit from discontinued operations		—			79			(79	)		(100.0	)
Net consolidated profit		1,927			1,655			272			16.4
Minority interests		125			162			(37	)		(22.6	)
Attributable profit to the Group		1,802			1,493			309			20.7
Pro memoria:
Average total assets		840,804			817,676			23,128			2.8
Average shareholders’ equity		39,008			34,899			4,109			11.8

Quarterly

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Net interest income (w/o dividends)		2,883			2,921			3,079			3,200			3,460
Dividends		50			187			98			69			48
Net interest income		2,933			3,109			3,177			3,269			3,509
Income from companies accounted for by the equity method		131			110			145			41			60
Net fees		1,738			1,756			1,848			1,881			2,087
Insurance activity		66			81			72			79			95
Commercial revenue		4,867			5,056			5,242			5,270			5,751
Gains (losses) on financial transactions		408			508			626			637			492
Gross operating income		5,276			5,565			5,868			5,907			6,243
Income from non-financial services		38			10			43			28			34
Non-financial expenses		(15	)		(17	)		(14	)		(24	)		(18	)
Other operating income		(21	)		(19	)		(24	)		(56	)		(34	)
Operating expenses		(2,744	)		(2,706	)		(2,785	)		(2,941	)		(2,950	)
General administrative expenses		(2,464	)		(2,429	)		(2,500	)		(2,632	)		(2,642	)
Personnel		(1,483	)		(1,466	)		(1,488	)		(1,567	)		(1,551	)
Other administrative expenses		(981	)		(963	)		(1,012	)		(1,065	)		(1,092	)
Depreciation and amortisation		(280	)		(276	)		(285	)		(310	)		(308	)
Net operating income		2,533			2,833			3,088			2,915			3,275
Impairment loss on assets		(512	)		(621	)		(710	)		(708	)		(683	)
Loans		(501	)		(599	)		(692	)		(675	)		(670	)
Goodwill		—			(5	)		—			(8	)		—
Other assets		(11	)		(17	)		(18	)		(25	)		(13	)
Other income		(12	)		23			(26	)		(26	)		(90	)
Profit before taxes (w/o capital gains)		2,009			2,235			2,352			2,180			2,503
Tax on profit		(433	)		(458	)		(647	)		(448	)		(576	)
Net profit from ordinary activity		1,576			1,776			1,705			1,733			1,927
Net profit from discontinued operations		79			115			135			25			—
Net consolidated profit (w/o capital gains)		1,655			1,891			1,840			1,758			1,927
Minority interests		162			169			109			123			125
Attributable profit to the Group (w/o capital gains)		1,493			1,723			1,731			1,635			1,802
Net extraordinary gains and allowances		—			—			—			1,014			—
Attributable profit to the Group		1,493			1,723			1,731			2,649			1,802

Balance sheet

Million euros


							Variation
Assets	31.03.07			31.03.06			Amount			%			31.12.06
Cash on hand and deposits at central banks		15,001			12,089			2,912			24.1			13,835
Trading portfolio		164,849			153,965			10,884			7.1			170,423
Debt securities		73,040			75,559			(2,518	)		(3.3	)		76,737
Loans and credits		32,668			28,746			3,922			13.6			30,583
Equities		11,253			10,676			577			5.4			13,491
Other		47,887			38,984			8,903			22.8			49,612
Other financial assets at fair value		15,625			47,269			(31,644	)		(66.9	)		15,371
Loans and credits		8,002			6,446			1,556			24.1			7,973
Other		7,623			40,823			(33,200	)		(81.3	)		7,398
Available-for-sale financial assets		34,071			73,025			(38,955	)		(53.3	)		38,698
Debt securities		25,842			66,432			(40,589	)		(61.1	)		32,727
Equities		8,228			6,594			1,635			24.8			5,971
Loans		561,544			472,658			88,887			18.8			544,049
Deposits at credit institutions		58,057			46,440			11,617			25.0			45,361
Loans and credits		490,141			416,205			73,936			17.8			484,790
Other		13,346			10,012			3,334			33.3			13,897
Investments		4,912			3,076			1,836			59.7			5,006
Intangible assets and property and equipment		12,687			12,162			526			4.3			12,555
Goodwill		14,373			14,025			349			2.5			14,513
Other		21,178			26,470			(5,291	)		(20.0	)		19,423
Total assets		844,240			814,738			29,502			3.6			833,873
Liabilities and shareholders’ equity
Trading portfolio		126,017			112,684			13,333			11.8			123,996
Customer deposits		14,306			13,430			876			6.5			16,572
Marketable debt securities		22,478			17,247			5,232			30.3			17,522
Other		89,233			82,007			7,226			8.8			89,902
Other financial liabilities at fair value		12,513			13,314			(800	)		(6.0	)		12,411
Customer deposits		250			261			(12	)		(4.5	)		273
Marketable debt securities		12,263			13,052			(789	)		(6.0	)		12,138
Other		—			—			—			—			—
Financial liabilities at amortized cost		614,256			569,114			45,142			7.9			605,303
Due to central banks and credit institutions		61,073			105,255			(44,182	)		(42.0	)		73,345
Customer deposits		312,555			290,563			21,992			7.6			314,377
Marketable debt securities		187,699			130,401			57,298			43.9			174,409
Subordinated debt		33,355			28,984			4,371			15.1			30,423
Other financial liabilities		19,574			13,911			5,662			40.7			12,749
Insurance liabilities		12,030			44,569			(32,538	)		(73.0	)		10,704
Provisions		17,597			19,535			(1,937	)		(9.9	)		19,227
Other liability accounts		14,651			10,800			3,851			35.7			14,491
Preferred securities		670			1,293			(623	)		(48.2	)		668
Minority interests		2,055			2,944			(889	)		(30.2	)		2,221
Equity adjustments by valuation		2,384			3,191			(807	)		(25.3	)		2,871
Capital stock		3,127			3,127			—			—			3,127
Reserves		40,393			35,279			5,113			14.5			32,595
Attributable profit to the Group		1,802			1,493			309			20.7			7,596
Less: dividends		(3,256	)		(2,605	)		(651	)		25.0			(1,337	)
Total liabilities and shareholders’ equity		844,240			814,738			29,502			3.6			833,873

Balance sheet

Million euros


	31.03.06			30.06.06			30.09.06			31.12.06			31.03.07
Assets
Cash on hand and deposits at central banks		12,089			15,614			12,263			13,835			15,001
Trading portfolio		153,965			162,883			155,051			170,423			164,849
Debt securities		75,559			79,018			73,420			76,737			73,040
Loans and credits		28,746			32,409			27,532			30,583			32,668
Equities		10,676			10,104			11,298			13,491			11,253
Other		38,984			41,352			42,801			49,612			47,887
Other financial assets at fair value		47,269			46,459			14,528			15,371			15,625
Loans and credits		6,446			6,706			7,340			7,973			8,002
Other		40,823			39,753			7,188			7,398			7,623
Available-for-sale financial assets		73,025			37,872			40,777			38,698			34,071
Debt securities		66,432			31,227			33,394			32,727			25,842
Equities		6,594			6,645			7,383			5,971			8,228
Loans		472,658			496,787			519,124			544,049			561,544
Deposits at credit institutions		46,440			48,789			44,659			45,361			58,057
Loans and credits		416,205			437,477			462,121			484,790			490,141
Other		10,012			10,521			12,344			13,897			13,346
Investments		3,076			5,378			5,371			5,006			4,912
Intangible assets and property and equipment		12,162			12,272			12,816			12,555			12,687
Goodwill		14,025			13,959			14,184			14,513			14,373
Other		26,470			26,874			24,426			19,423			21,178
Total assets		814,738			818,096			798,540			833,873			844,240
Liabilities and shareholders’ equity
Trading portfolio		112,684			118,934			118,970			123,996			126,017
Customer deposits		13,430			14,135			16,956			16,572			14,306
Marketable debt securities		17,247			20,672			22,115			17,522			22,478
Other		82,007			84,127			79,900			89,902			89,233
Other financial liabilities at fair value		13,314			12,713			12,893			12,411			12,513
Customer deposits		261			246			266			273			250
Marketable debt securities		13,052			12,467			12,628			12,138			12,263
Other		—			—			—			—			—
Financial liabilities at amortized cost		569,114			568,296			578,224			605,303			614,256
Due to central banks and credit institutions		105,255			91,614			68,056			73,345			61,073
Customer deposits		290,563			291,400			308,302			314,377			312,555
Marketable debt securities		130,401			139,183			155,913			174,409			187,699
Subordinated debt		28,984			30,240			31,154			30,423			33,355
Other financial liabilities		13,911			15,859			14,798			12,749			19,574
Insurance liabilities		44,569			42,487			9,743			10,704			12,030
Provisions		19,535			18,861			18,693			19,227			17,597
Other liability accounts		10,800			11,833			12,599			14,491			14,651
Preferred securities		1,293			1,257			1,183			668			670
Minority interests		2,944			2,898			2,457			2,221			2,055
Equity adjustments by valuation		3,191			2,406			3,668			2,871			2,384
Capital stock		3,127			3,127			3,127			3,127			3,127
Reserves		35,279			32,737			32,704			32,595			40,393
Attributable profit to the Group		1,493			3,216			4,947			7,596			1,802
Less: dividends		(2,605	)		(669	)		(669	)		(1,337	)		(3,256	)
Total liabilities and shareholders’ equity		814,738			818,096			798,540			833,873			844,240

Customer funds under management

Million euros


					Variation
	31.03.07		31.03.06		Amount			%			31.12.06
Public sector		16,012		15,121		891			5.9			15,266
Other residents		92,958		83,179		9,779			11.8			94,750
Demand deposits		52,000		49,120		2,880			5.9			55,050
Time deposits		26,013		18,460		7,553			40.9			24,670
REPOs		14,945		15,600		(655	)		(4.2	)		15,030
Non-resident sector		218,140		205,954		12,186			5.9			221,206
Demand deposits		118,573		115,499		3,074			2.7			119,861
Time deposits		71,171		71,255		(84	)		(0.1	)		72,258
REPOs		26,377		16,365		10,012			61.2			26,343
Public Sector		2,021		2,835		(815	)		(28.7	)		2,744
Customer deposits		327,111		304,255		22,856			7.5			331,223
Debt securities		222,441		160,700		61,741			38.4			204,069
Subordinated debt		33,355		28,984		4,371			15.1			30,423
On-balance-sheet customer funds		582,907		493,938		88,968			18.0			565,715
Mutual funds		131,147		114,174		16,974			14.9			119,838
Pension funds		29,996		29,190		806			2.8			29,450
Managed portfolios		19,245		16,781		2,464			14.7			17,835
Savings-insurance policies		7,383		14,632		(7,249	)		(49.5	)		6,385
Other customer funds under management		187,772		174,776		12,996			7.4			173,509
Customer funds under management		770,679		668,715		101,964			15.2			739,223

Mutual funds

Million euros


					Variation
	31.03.07		31.03.06		Amount		%		31.12.06
Spain		78,854		77,463		1,391		1.8		77,526
Portugal		6,160		5,922		238		4.0		6,040
United Kingdom (Abbey)		13,640		5,904		7,736		131.0		8,307
Latin America		32,494		24,885		7,609		30.6		27,965
Total		131,147		114,174		16,974		14.9		119,838

Pension funds

Million euros


					Variation
	31.03.07		31.03.06		Amount			%			31.12.06
Spain		9,980		9,047		932			10.3			9,950
Portugal		1,453		1,032		420			40.7			1,448
Latin America		18,564		19,110		(546	)		(2.9	)		18,052
Total		29,996		29,190		806			2.8			29,450

Customer funds under management

Million euros


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Public sector		15,121		11,156		13,956		15,266		16,012
Other residents		83,179		87,421		93,532		94,750		92,958
Demand deposits		49,120		52,008		53,706		55,050		52,000
Time deposits		18,460		20,194		23,216		24,670		26,013
REPOs		15,600		15,219		16,609		15,030		14,945
Non-resident sector		205,954		207,205		218,036		221,206		218,140
Demand deposits		115,499		116,192		117,766		119,861		118,573
Time deposits		71,255		70,939		76,312		72,258		71,171
REPOs		16,365		17,405		21,680		26,343		26,377
Public Sector		2,835		2,669		2,278		2,744		2,021
Customer deposits		304,255		305,782		325,524		331,223		327,111
Debt securities		160,700		172,323		190,655		204,069		222,441
Subordinated debt		28,984		30,240		31,154		30,423		33,355
On-balance-sheet customer funds		493,938		508,344		547,333		565,715		582,907
Mutual funds		114,174		113,618		117,102		119,838		131,147
Pension funds		29,190		27,709		27,442		29,450		29,996
Managed portfolios		16,781		17,088		18,009		17,835		19,245
Savings-insurance policies		14,632		15,377		5,378		6,385		7,383
Other customer funds under management		174,776		173,791		167,932		173,509		187,772
Customer funds under management		668,715		682,135		715,265		739,223		770,679

Mutual funds

Million euros


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Spain		77,463		76,677		78,253		77,526		78,854
Portugal		5,922		5,940		6,006		6,040		6,160
United Kingdom (Abbey)		5,904		6,638		6,276		8,307		13,640
Latin America		24,885		24,363		26,567		27,965		32,494
Total		114,174		113,618		117,102		119,838		131,147

Pension funds

Million euros


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Spain		9,047		8,887		9,201		9,950		9,980
Portugal		1,032		1,373		1,380		1,448		1,453
Latin America		19,110		17,449		16,861		18,052		18,564
Total		29,190		27,709		27,442		29,450		29,996

Shareholders’ equity and minority interests

Million euros


							Variation
	31.03.07			31.03.06			Amount			%			31.12.06
Capital stock		3,127			3,127			—			—			3,127
Additional paid-in surplus		20,370			20,370			—			—			20,370
Reserves		20,124			14,976			5,148			34.4			12,352
Treasury stock		(102	)		(67	)		(35	)		52.8			(127	)
On-balance-sheet shareholders’ equity		43,520			38,407			5,113			13.3			35,722
Attributable profit		1,802			1,493			309			20.7			7,596
Interim dividend distributed		(2,006	)		(1,744	)		(262	)		15.0			(1,337	)
Shareholders’ equity at period-end		43,316			38,156			5,160			13.5			41,981
Interim dividend not distributed		(1,250	)		(861	)		(390	)		45.3			(1,919	)
Shareholders’ equity		42,066			37,295			4,771			12.8			40,062
Valuation adjustments		2,384			3,191			(807	)		(25.3	)		2,871
Minority interests		2,055			2,944			(889	)		(30.2	)		2,221
Preferred securities		670			1,293			(623	)		(48.2	)		668
Preferred securities in subordinated debt		7,483			6,469			1,013			15.7			6,837
Shareholders’ equity and minority interests		54,658			51,193			3,465			6.8			52,658

Consolidated cash flow statements

Million euros


	Q1 ’07			Q1 ’06
1. Cash flows from operating activities
Consolidated profit		1,927			1,655
Adjustments to profit		2,472			1,837
Adjusted profit		4,399			3,492
Net increase/decrease in operating assets		(10,030	)		(10,504	)
Net increase/decrease in operating liabilities		(18,088	)		(9,166	)
Total net cash flows from operating activities (1)		(23,719	)		(16,178	)
2. Cash flows from investing activities
Investments (-)		(632	)		(567	)
Divestments (+)		338			218
Total net cash flows from investing activities (2)		(294	)		(349	)
3. Cash flows from financing activities
Disposal of own equity instruments		1,827			1,873
Acquisition of own equity instruments		(1,803	)		(1,887	)
Issuance debt securities		47,362			23,554
Redemption debt securities		(21,393	)		(10,230	)
Dividends paid		(669	)		(581	)
Others		(307	)		(440	)
Total net cash flows from financing activities (3)		25,018			12,289
4. Effect of exchange rate changes on cash and cash equivalents (4)		160			240
5. Net increase/decrease in cash and cash equivalents (1+2+3+4)		1,165			(3,998	)
Cash and cash equivalents at beginning of period		13,835			16,086
Cash and cash equivalents at end of period		15,001			12,088

Key data by principal segments


	Net operating income											Attributable profit to the Group
							Variation											Variation
	Q1 ’07			Q1 ’06			Amount			%		Q1 ’07			Q1 ’06			Amount			%
Income statement (million euros)
Continental Europe		2,098			1,487			610			41.0		1,317			898			419			46.7
o/w: Santander Branch Network		691			533			157			29.5		460			334			126			37.6
Banesto		311			257			55			21.3		163			148			16			10.5
Santander Consumer Finance		440			283			157			55.5		166			126			40			31.8
Portugal		174			150			24			16.0		132			114			18			15.5
United Kingdom (Abbey)		476			384			92			24.0		300			244			56			22.8
Latin America		1,354			1,074			280			26.1		681			618			63			10.1
o/w: Brazil		547			409			137			33.5		225			198			27			13.4
Mexico		364			267			97			36.3		156			142			14			9.8
Chile		210			194			16			8.4		131			114			17			14.9
Operating areas		3,928			2,945			983			33.4		2,298			1,760			538			30.5
Financial management and equity stakes		(653	)		(412	)		(241	)		58.4		(496	)		(267	)		(229	)		85.8
Total Group		3,275			2,533			742			29.3		1,802			1,493			309			20.7


	Efficiency ratio				ROE				NPL ratio				NPL coverage
	Q1 ’07		Q1 ’06		Q1 ’07		Q1 ’06		31.03.07		31.03.06		31.03.07		31.03.06
Ratios (%)
Continental Europe		35.90		41.20		25.99		22.23		0.80		0.76		202.49		247.61
o/w: Santander Branch Network		39.09		43.54		24.22		20.80		0.56		0.56		298.79		299.75
Banesto		42.00		45.76		18.45		20.42		0.42		0.46		393.19		392.62
Santander Consumer Finance		29.65		35.01		28.87		30.11		2.66		2.41		114.43		124.43
Portugal		42.96		44.63		25.56		23.44		1.16		0.71		127.55		258.04
United Kingdom (Abbey)		50.81		56.83		31.34		33.43		0.55		0.64		81.38		79.32
Latin America		42.11		46.35		30.29		26.63		1.50		1.71		160.00		183.37
o/w: Brazil		40.62		46.83		32.01		28.62		2.62		2.76		98.77		126.24
Mexico		37.29		44.23		25.41		24.11		0.83		0.69		241.35		335.91
Chile		39.15		41.01		37.07		26.20		1.70		2.15		147.57		165.07
Operating areas		40.31		45.64		27.78		24.82		0.80		0.83		164.23		184.72
Total Group		46.32		50.88		18.48		17.12		0.82		0.86		176.70		184.80


	Employees				Branches
	31.03.07		31.03.06		31.03.07		31.03.06
Operating means
Continental Europe		46,308		44,155		5,829		5,444
o/w: Santander Branch Network		19,337		19,027		2,839		2,681
Banesto		10,831		10,563		1,892		1,705
Santander Consumer Finance		6,374		5,288		279		276
Portugal		6,172		6,265		731		694
United Kingdom (Abbey)		16,616		18,622		711		712
Latin America		69,958		62,259		4,438		4,170
o/w: Brazil		21,680		21,171		2,044		1,877
Mexico		17,283		14,116		1,038		1,012
Chile		13,331		11,249		442		410
Operating areas		132,882		125,036		10,978		10,326
Financial management and equity stakes		1,756		1,494
Total Group		134,638		126,530		10,978		10,326

Operating areas

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		3,899			3,174			725			22.8
Income from companies accounted for by the equity method		4			5			(1	)		(16.9	)
Net fees		2,075			1,741			334			19.2
Insurance activity		96			66			30			45.3
Commercial revenue		6,074			4,986			1,088			21.8
Gains (losses) on financial transactions		624			535			89			16.7
Gross operating income		6,698			5,521			1,178			21.3
Income from non-financial services (net) and other operating income		(13	)		4			(17	)		—
Operating expenses		(2,757	)		(2,579	)		(178	)		6.9
General administrative expenses		(2,516	)		(2,353	)		(163	)		6.9
Personnel		(1,503	)		(1,425	)		(78	)		5.5
Other administrative expenses		(1,013	)		(928	)		(85	)		9.2
Depreciation and amortisation		(241	)		(227	)		(15	)		6.5
Net operating income		3,928			2,945			983			33.4
Net loan loss provisions		(679	)		(500	)		(178	)		35.7
Other income		47			20			27			136.2
Profit before taxes		3,297			2,465			832			33.7
Tax on profit		(880	)		(660	)		(220	)		33.3
Net profit from ordinary activity		2,417			1,805			612			33.9
Net profit from discontinued operations		—			79			(79	)		(100.0	)
Net consolidated profit		2,417			1,884			533			28.3
Minority interests		119			124			(5	)		(3.9	)
Attributable profit to the Group		2,298			1,760			538			30.5


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		530,093		450,694		79,399			17.6
Trading portfolio (w/o loans)		115,943		111,186		4,757			4.3
Available-for-sale financial assets		24,110		30,491		(6,381	)		(20.9	)
Due from credit institutions*		119,633		107,546		12,088			11.2
Intangible assets and property and equipment		11,331		11,063		268			2.4
Other assets		45,216		77,001		(31,785	)		(41.3	)
Total assets/liabilities & shareholders’ equity		846,327		787,981		58,346			7.4
Customer deposits*		326,924		303,637		23,286			7.7
Marketable debt securities*		139,710		98,498		41,212			41.8
Subordinated debt		14,052		14,372		(320	)		(2.2	)
Insurance liabilities		12,030		44,569		(32,538	)		(73.0	)
Due to credit institutions*		153,839		163,925		(10,086	)		(6.2	)
Other liabilities		165,149		133,665		31,484			23.6
Shareholders’ equity		34,623		29,315		5,308			18.1
Other customer funds under management		187,966		173,318		14,648			8.5
Mutual funds		131,147		114,174		16,974			14.9
Pension funds		29,996		29,190		806			2.8
Managed portfolios		19,439		15,322		4,117			26.9
Savings-insurance policies		7,383		14,632		(7,249	)		(49.5	)
Customer funds under management		668,652		589,824		78,827			13.4

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	27.78	24.82	2.96 p.
Efficiency ratio	40.31	45.64	(5.33 p.	)
NPL ratio	0.80	0.83	(0.03 p.	)
NPL coverage	164.23	184.72	(20.49 p.	)
Number of employees (direct & indirect)	132,882	125,036	7,846		6.27
Number of branches	10,978	10,326	652		6.31

Operating areas

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		3,174			3,345			3,513			3,562			3,899
Income from companies accounted for by the equity method		5			4			3			4			4
Net fees		1,741			1,759			1,847			1,887			2,075
Insurance activity		66			79			72			85			96
Commercial revenue		4,986			5,187			5,435			5,538			6,074
Gains (losses) on financial transactions		535			274			509			448			624
Gross operating income		5,521			5,461			5,944			5,986			6,698
Income from non-financial services (net) and other operating income		4			(19	)		6			(29	)		(13	)
Operating expenses		(2,579	)		(2,569	)		(2,640	)		(2,808	)		(2,757	)
General administrative expenses		(2,353	)		(2,334	)		(2,420	)		(2,554	)		(2,516	)
Personnel		(1,425	)		(1,426	)		(1,438	)		(1,512	)		(1,503	)
Other administrative expenses		(928	)		(908	)		(983	)		(1,042	)		(1,013	)
Depreciation and amortisation		(227	)		(236	)		(220	)		(254	)		(241	)
Net operating income		2,945			2,873			3,310			3,149			3,928
Net loan loss provisions		(500	)		(699	)		(687	)		(672	)		(679	)
Other income		20			(50	)		(114	)		(140	)		47
Profit before taxes (w/o capital gains)		2,465			2,124			2,509			2,337			3,297
Tax on profit		(660	)		(516	)		(656	)		(635	)		(880	)
Net profit from ordinary activity		1,805			1,608			1,853			1,702			2,417
Net profit from discontinued operations		79			104			55			27			—
Net consolidated profit (w/o capital gains)		1,884			1,712			1,908			1,729			2,417
Minority interests		124			133			96			120			119
Attributable profit to the Group (w/o capital gains)		1,760			1,579			1,812			1,609			2,298
Net extraordinary gains and allowances		—			—			—			674			—
Attributable profit to the Group		1,760			1,579			1,812			2,283			2,298


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		450,694		475,897		496,404		522,372		530,093
Trading portfolio (w/o loans)		111,186		119,154		114,841		123,183		115,943
Available-for-sale financial assets		30,491		29,793		30,990		31,093		24,110
Due from credit institutions*		107,546		101,866		106,322		105,557		119,633
Intangible assets and property and equipment		11,063		11,262		11,797		11,312		11,331
Other assets		77,001		78,232		44,993		44,116		45,216
Total assets/liabilities & shareholders’ equity		787,981		816,205		805,348		837,632		846,327
Customer deposits*		303,637		304,698		324,555		330,727		326,924
Marketable debt securities*		98,498		106,027		117,162		125,748		139,710
Subordinated debt		14,372		14,390		14,985		14,176		14,052
Insurance liabilities		44,569		42,487		9,743		10,704		12,030
Due to credit institutions*		163,925		178,137		157,929		172,439		153,839
Other liabilities		133,665		142,871		151,927		154,696		165,149
Shareholders’ equity		29,315		27,595		29,047		29,143		34,623
Other customer funds under management		173,318		172,554		166,717		173,509		187,966
Mutual funds		114,174		113,618		117,102		119,838		131,147
Pension funds		29,190		27,709		27,442		29,450		29,996
Managed portfolios		15,322		15,850		16,795		17,835		19,439
Savings-insurance policies		14,632		15,377		5,378		6,385		7,383
Customer funds under management		589,824		597,669		623,420		644,159		668,652

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio**	0.88	0.85	0.84	0.80	0.80
NPL coverage**	175.07	175.01	175.03	176.49	164.23
Risk-weighted assets	391,856	402,812	411,015	422,833	418,932

(**).- 2006 data were drawn up on the basis of 2007 information

Continental Europe

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,856			1,440			417			29.0
Income from companies accounted for by the equity method		2			2			1			42.9
Net fees		1,115			855			260			30.4
Insurance activity		39			33			6			16.8
Commercial revenue		3,012			2,329			683			29.3
Gains (losses) on financial transactions		288			229			59			25.7
Gross operating income		3,300			2,558			742			29.0
Income from non-financial services (net) and other operating income		9			13			(3	)		(25.2	)
Operating expenses		(1,212	)		(1,083	)		(128	)		11.8
General administrative expenses		(1,076	)		(959	)		(117	)		12.2
Personnel		(718	)		(654	)		(64	)		9.9
Other administrative expenses		(358	)		(305	)		(52	)		17.2
Depreciation and amortisation		(136	)		(124	)		(12	)		9.3
Net operating income		2,098			1,487			610			41.0
Net loan loss provisions		(271	)		(228	)		(43	)		18.9
Other income		46			27			19			71.9
Profit before taxes		1,873			1,286			587			45.6
Tax on profit		(529	)		(381	)		(148	)		38.8
Net profit from ordinary activity		1,344			905			439			48.5
Net profit from discontinued operations		—			40			(40	)		(100.0	)
Net consolidated profit		1,344			946			399			42.1
Minority interests		27			48			(21	)		(43.4	)
Attributable profit to the Group		1,317			898			419			46.7


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		278,028		223,323		54,705			24.5
Trading portfolio (w/o loans)		32,487		24,243		8,244			34.0
Available-for-sale financial assets		10,449		14,384		(3,935	)		(27.4	)
Due from credit institutions*		73,969		63,549		10,420			16.4
Intangible assets and property and equipment		4,697		4,655		42			0.9
Other assets		16,801		15,628		1,173			7.5
Total assets/liabilities & shareholders’ equity		416,430		345,782		70,649			20.4
Customer deposits*		139,144		127,670		11,475			9.0
Marketable debt securities*		52,815		31,112		21,703			69.8
Subordinated debt		2,386		2,251		136			6.0
Insurance liabilities		9,761		6,820		2,941			43.1
Due to credit institutions*		77,852		78,508		(655	)		(0.8	)
Other liabilities		112,590		82,675		29,916			36.2
Shareholders’ equity		21,882		16,748		5,134			30.7
Other customer funds under management		112,097		104,191		7,905			7.6
Mutual funds		85,014		83,385		1,629			2.0
Pension funds		11,432		10,080		1,353			13.4
Managed portfolios		8,267		6,304		1,964			31.2
Savings-insurance policies		7,383		4,423		2,960			66.9
Customer funds under management		306,442		265,224		41,219			15.5

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	25.99	22.23	3.76 p.
Efficiency ratio	35.90	41.20	(5.30 p.	)
NPL ratio	0.80	0.76	0.04 p.
NPL coverage	202.49	247.61	(45.12 p.	)
Number of employees (direct & indirect)	46,308	44,155	2,153		4.9
Number of branches	5,829	5,444	385		7.1

Continental Europe

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,440			1,532			1,613			1,622			1,856
Income from companies accounted for by the equity method		2			0			2			2			2
Net fees		855			887			965			946			1,115
Insurance activity		33			35			34			35			39
Commercial revenue		2,329			2,454			2,614			2,605			3,012
Gains (losses) on financial transactions		229			95			211			173			288
Gross operating income		2,558			2,549			2,825			2,778			3,300
Income from non-financial services (net) and other operating income		13			(7	)		17			18			9
Operating expenses		(1,083	)		(1,101	)		(1,104	)		(1,190	)		(1,212	)
General administrative expenses		(959	)		(969	)		(978	)		(1,050	)		(1,076	)
Personnel		(654	)		(663	)		(663	)		(707	)		(718	)
Other administrative expenses		(305	)		(307	)		(316	)		(344	)		(358	)
Depreciation and amortisation		(124	)		(132	)		(126	)		(140	)		(136	)
Net operating income		1,487			1,440			1,738			1,605			2,098
Net loan loss provisions		(228	)		(379	)		(412	)		(293	)		(271	)
Other income		27			74			(46	)		(85	)		46
Profit before taxes (w/o capital gains)		1,286			1,135			1,279			1,227			1,873
Tax on profit		(381	)		(317	)		(370	)		(347	)		(529	)
Net profit from ordinary activity		905			818			909			879			1,344
Net profit from discontinued operations		40			45			31			26			—
Net consolidated profit (w/o capital gains)		946			863			940			906			1,344
Minority interests		48			60			32			44			27
Attributable profit to the Group (w/o capital gains)		898			803			908			862			1,317
Net extraordinary gains and allowances		—			—			—			674			—
Attributable profit to the Group		898			803			908			1,535			1,317


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		223,323		240,044		256,188		271,687		278,028
Trading portfolio (w/o loans)		24,243		31,599		30,300		33,831		32,487
Available-for-sale financial assets		14,384		13,250		13,904		13,126		10,449
Due from credit institutions*		63,549		64,493		66,128		67,061		73,969
Intangible assets and property and equipment		4,655		4,983		5,241		4,558		4,697
Other assets		15,628		16,733		18,613		18,583		16,801
Total assets/liabilities & shareholders’ equity		345,782		371,102		390,375		408,846		416,430
Customer deposits*		127,670		128,791		137,056		140,231		139,144
Marketable debt securities*		31,112		35,066		42,092		47,632		52,815
Subordinated debt		2,251		2,185		2,621		2,362		2,386
Insurance liabilities		6,820		7,133		7,739		8,547		9,761
Due to credit institutions*		78,508		85,141		82,310		89,016		77,852
Other liabilities		82,675		96,037		101,102		103,090		112,590
Shareholders’ equity		16,748		16,748		17,453		17,967		21,882
Other customer funds under management		104,191		104,571		107,453		108,850		112,097
Mutual funds		83,385		82,617		84,259		83,566		85,014
Pension funds		10,080		10,260		10,581		11,398		11,432
Managed portfolios		6,304		6,825		7,235		7,501		8,267
Savings-insurance policies		4,423		4,869		5,378		6,385		7,383
Customer funds under management		265,224		270,614		289,222		299,076		306,442

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio**	0.84	0.80	0.81	0.80	0.80
NPL coverage**	221.71	227.60	224.57	223.80	202.49
Risk-weighted assets	224,261	243,986	253,120	258,781	258,788

(**).- 2006 data were drawn up on the basis of 2007 information

Santander Branch Network

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		650			537			113			21.1
Income from companies accounted for by the equity method		—			—			—			—
Net fees		423			359			64			17.9
Insurance activity		—			—			—			—
Commercial revenue		1,073			896			177			19.8
Gains (losses) on financial transactions		74			71			3			4.2
Gross operating income		1,147			967			180			18.7
Income from non-financial services (net) and other operating income		5			2			3			141.8
Operating expenses		(461	)		(435	)		(26	)		6.0
General administrative expenses		(403	)		(377	)		(26	)		7.0
Personnel		(303	)		(289	)		(14	)		4.9
Other administrative expenses		(100	)		(88	)		(12	)		14.1
Depreciation and amortisation		(58	)		(58	)		0			(0.6	)
Net operating income		691			533			157			29.5
Net loan loss provisions		(52	)		(65	)		13			(20.3	)
Other income		(0	)		(4	)		4			(98.8	)
Profit before taxes		639			464			174			37.6
Tax on profit		(179	)		(130	)		(49	)		37.4
Net profit from ordinary activity		460			334			126			37.7
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		460			334			126			37.7
Minority interests		0			0			0			267.7
Attributable profit to the Group		460			334			126			37.6


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		108,104		92,777		15,327			16.5
Trading portfolio (w/o loans)		—		—		—			—
Available-for-sale financial assets		3		2		0			11.5
Due from credit institutions*		93		94		(1	)		(0.6	)
Intangible assets and property and equipment		2,189		1,931		258			13.4
Other assets		507		761		(254	)		(33.4	)
Total assets/liabilities & shareholders’ equity		110,896		95,565		15,330			16.0
Customer deposits*		50,410		43,860		6,551			14.9
Marketable debt securities*		—		1		(1	)		(100.0	)
Subordinated debt		—		—		—			—
Insurance liabilities		—		—		—			—
Due to credit institutions*		26		37		(11	)		(30.5	)
Other liabilities		52,810		45,004		7,806			17.3
Shareholders’ equity		7,650		6,664		986			14.8
Other customer funds under management		57,134		55,526		1,608			2.9
Mutual funds		48,377		49,431		(1,054	)		(2.1	)
Pension funds		6,448		5,889		559			9.5
Managed portfolios		—		—		—			—
Savings-insurance policies		2,308		206		2,102			—
Customer funds under management		107,544		99,386		8,158			8.2

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	24.22	20.80	3.42 p.
Efficiency ratio	39.09	43.54	(4.45 p.	)
NPL ratio	0.56	0.56	—
NPL coverage	298.79	299.75	(0.96 p.	)
Number of employees (direct & indirect)	19,337	19,027	310		1.6
Number of branches	2,839	2,681	158		5.9

Santander Branch Network

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		537			583			609			635			650
Income from companies accounted for by the equity method		—			—			—			—			—
Net fees		359			397			408			427			423
Insurance activity		—			—			—			—			—
Commercial revenue		896			980			1,017			1,061			1,073
Gains (losses) on financial transactions		71			69			33			55			74
Gross operating income		967			1,048			1,051			1,116			1,147
Income from non-financial services (net) and other operating income		2			4			(1	)		5			5
Operating expenses		(435	)		(438	)		(438	)		(453	)		(461	)
General administrative expenses		(377	)		(380	)		(380	)		(394	)		(403	)
Personnel		(289	)		(289	)		(285	)		(293	)		(303	)
Other administrative expenses		(88	)		(91	)		(95	)		(102	)		(100	)
Depreciation and amortisation		(58	)		(58	)		(58	)		(58	)		(58	)
Net operating income		533			615			612			669			691
Net loan loss provisions		(65	)		(139	)		(84	)		(50	)		(52	)
Other income		(4	)		(7	)		(2	)		5			(0	)
Profit before taxes (w/o capital gains)		464			469			526			624			639
Tax on profit		(130	)		(130	)		(148	)		(169	)		(179	)
Net profit from ordinary activity		334			339			378			455			460
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		334			339			378			455			460
Minority interests		0			0			0			0			0
Attributable profit to the Group (w/o capital gains)		334			339			378			455			460
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		334			339			378			455			460


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		92,777		98,696		101,838		105,476		108,104
Trading portfolio (w/o loans)		—		—		—		—		—
Available-for-sale financial assets		2		3		3		3		3
Due from credit institutions*		94		91		102		116		93
Intangible assets and property and equipment		1,931		2,073		2,192		2,191		2,189
Other assets		761		839		816		661		507
Total assets/liabilities & shareholders’ equity		95,565		101,702		104,951		108,447		110,896
Customer deposits*		43,860		45,923		49,651		51,595		50,410
Marketable debt securities*		1		—		—		—		—
Subordinated debt		—		—		—		—		—
Insurance liabilities		—		—		—		—		—
Due to credit institutions*		37		32		96		86		26
Other liabilities		45,004		48,552		47,786		49,274		52,810
Shareholders’ equity		6,664		7,195		7,418		7,492		7,650
Other customer funds under management		55,526		54,227		54,862		55,650		57,134
Mutual funds		49,431		48,025		48,150		47,623		48,377
Pension funds		5,889		5,784		5,948		6,416		6,448
Managed portfolios		—		—		—		—		—
Savings-insurance policies		206		418		765		1,611		2,308
Customer funds under management		99,386		100,150		104,513		107,245		107,544


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	0.56	0.55	0.57	0.57	0.56
NPL coverage	299.75	313.42	298.84	295.80	298.79
Risk-weighted assets	83,524	90,175	93,673	94,348	95,478
Spread	3.10	3.16	3.26	3.44	3.47
Spread loans	1.39	1.29	1.31	1.28	1.25
Spread deposits	1.71	1.87	1.95	2.16	2.22

Banesto

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		349			296			53			18.1
Income from companies accounted for by the equity method		0			0			0			39.9
Net fees		154			144			10			7.2
Insurance activity		12			8			4			47.6
Commercial revenue		516			448			68			15.1
Gains (losses) on financial transactions		38			34			3			9.4
Gross operating income		554			483			71			14.7
Income from non-financial services (net) and other operating income		(1	)		4			(6	)		—
Operating expenses		(241	)		(230	)		(11	)		4.7
General administrative expenses		(213	)		(204	)		(9	)		4.3
Personnel		(161	)		(151	)		(9	)		6.2
Other administrative expenses		(52	)		(53	)		1			(1.2	)
Depreciation and amortisation		(28	)		(26	)		(2	)		8.1
Net operating income		311			257			55			21.3
Net loan loss provisions		(54	)		(44	)		(9	)		21.1
Other income		4			6			(2	)		(31.9	)
Profit before taxes		262			218			43			19.8
Tax on profit		(77	)		(70	)		(7	)		9.7
Net profit from ordinary activity		185			148			37			24.6
Net profit from discontinued operations		—			46			(46	)		(100.0	)
Net consolidated profit		185			194			(9	)		(4.7	)
Minority interests		22			46			(25	)		(53.3	)
Attributable profit to the Group		163			148			16			10.5


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		64,337		49,502		14,834			30.0
Trading portfolio (w/o loans)		6,445		4,513		1,932			42.8
Available-for-sale financial assets		6,221		10,788		(4,567	)		(42.3	)
Due from credit institutions*		21,514		17,670		3,843			21.7
Intangible assets and property and equipment		1,106		1,565		(459	)		(29.4	)
Other assets		3,034		5,622		(2,588	)		(46.0	)
Total assets/liabilities & shareholders’ equity		102,656		89,661		12,995			14.5
Customer deposits*		43,752		37,076		6,676			18.0
Marketable debt securities*		25,615		19,385		6,229			32.1
Subordinated debt		1,442		1,580		(138	)		(8.8	)
Insurance liabilities		—		1,769		(1,769	)		(100.0	)
Due to credit institutions*		19,400		17,449		1,951			11.2
Other liabilities		8,735		9,382		(647	)		(6.9	)
Shareholders’ equity		3,713		3,019		694			23.0
Other customer funds under management		16,227		15,991		236			1.5
Mutual funds		12,512		12,647		(135	)		(1.1	)
Pension funds		1,614		1,527		88			5.7
Managed portfolios		832		552		279			50.6
Savings-insurance policies		1,269		1,265		5			0.4
Customer funds under management		87,036		74,032		13,003			17.6


(*)		Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	18.45	20.42	(1.97 p.	)
Efficiency ratio	42.00	45.76	(3.76 p.	)
NPL ratio	0.42	0.46	(0.04 p.	)
NPL coverage	393.19	392.62	0.57 p.
Number of employees (direct & indirect)	10,831	10,563	268		2.5
Number of branches	1,892	1,705	187		11.0

Banesto

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		296			299			313			327			349
Income from companies accounted for by the equity method		0			(0	)		0			0			0
Net fees		144			147			144			152			154
Insurance activity		8			11			10			12			12
Commercial revenue		448			457			467			491			516
Gains (losses) on financial transactions		34			33			31			25			38
Gross operating income		483			490			497			517			554
Income from non-financial services (net) and other operating income		4			(13	)		13			6			(1	)
Operating expenses		(230	)		(233	)		(236	)		(238	)		(241	)
General administrative expenses		(204	)		(200	)		(206	)		(210	)		(213	)
Personnel		(151	)		(156	)		(157	)		(157	)		(161	)
Other administrative expenses		(53	)		(45	)		(48	)		(54	)		(52	)
Depreciation and amortisation		(26	)		(33	)		(30	)		(28	)		(28	)
Net operating income		257			245			275			285			311
Net loan loss provisions		(44	)		(47	)		(44	)		(54	)		(54	)
Other income		6			35			(15	)		(4	)		4
Profit before taxes (w/o capital gains)		218			232			216			227			262
Tax on profit		(70	)		(67	)		(72	)		(76	)		(77	)
Net profit from ordinary activity		148			165			144			151			185
Net profit from discontinued operations		46			46			31			27			—
Net consolidated profit (w/o capital gains)		194			211			174			178			185
Minority interests		46			57			28			41			22
Attributable profit to the Group (w/o capital gains)		148			154			146			137			163
Net extraordinary gains and allowances		—			—			—			674			—
Attributable profit to the Group		148			154			146			811			163


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		49,502		53,838		56,540		61,069		64,337
Trading portfolio (w/o loans)		4,513		4,690		4,247		5,191		6,445
Available-for-sale financial assets		10,788		11,061		11,598		9,339		6,221
Due from credit institutions*		17,670		20,313		19,933		21,113		21,514
Intangible assets and property and equipment		1,565		1,599		1,725		999		1,106
Other assets		5,622		6,263		6,125		5,619		3,034
Total assets/liabilities & shareholders’ equity		89,661		97,764		100,168		103,330		102,656
Customer deposits*		37,076		38,357		41,461		44,264		43,752
Marketable debt securities*		19,385		21,283		23,781		23,882		25,615
Subordinated debt		1,580		1,566		1,590		1,414		1,442
Insurance liabilities		1,769		1,606		1,596		1,230		—
Due to credit institutions*		17,449		21,778		18,956		19,947		19,400
Other liabilities		9,382		10,379		9,989		9,859		8,735
Shareholders’ equity		3,019		2,794		2,796		2,734		3,713
Other customer funds under management		15,991		16,434		16,638		16,886		16,227
Mutual funds		12,647		13,039		13,042		12,988		12,512
Pension funds		1,527		1,482		1,522		1,611		1,614
Managed portfolios		552		675		861		1,004		832
Savings-insurance policies		1,265		1,238		1,214		1,284		1,269
Customer funds under management		74,032		77,640		83,471		86,446		87,036


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	0.46	0.45	0.43	0.42	0.42
NPL coverage	392.62	393.44	399.94	396.13	393.19
Risk-weighted assets	55,413	56,929	58,776	62,845	64,887
Spread (Retail Banking)	2.92	3.00	3.13	3.23	3.35
Spread loans	1.38	1.36	1.30	1.31	1.32
Spread deposits	1.54	1.64	1.83	1.92	2.03

Santander Consumer Finance

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%			% ex-Drive
Income statement
Net interest income		499			322			178			55.2			9.3
Income from companies accounted for by the equity method		2			1			1			43.3			43.3
Net fees		115			94			20			21.6			23.8
Insurance activity		—			—			—			—			—
Commercial revenue		616			417			199			47.6			12.7
Gains (losses) on financial transactions		4			12			(7	)		(62.5	)		(62.5	)
Gross operating income		620			429			191			44.6			10.6
Income from non-financial services (net) and other operating income		9			10			(1	)		(11.2	)		(11.2	)
Operating expenses		(189	)		(156	)		(33	)		21.2			8.7
General administrative expenses		(174	)		(142	)		(32	)		22.2			9.0
Personnel		(82	)		(65	)		(16	)		24.7			8.2
Other administrative expenses		(92	)		(77	)		(15	)		20.1			9.8
Depreciation and amortisation		(16	)		(14	)		(2	)		11.4			5.3
Net operating income		440			283			157			55.5			11.0
Net loan loss provisions		(200	)		(94	)		(106	)		113.5			21.2
Other income		3			(4	)		7			—			—
Profit before taxes		242			184			58			31.5			10.1
Tax on profit		(72	)		(57	)		(14	)		24.7			(4.3	)
Net profit from ordinary activity		171			127			44			34.5			16.6
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit		171			127			44			34.5			16.6
Minority interests		5			1			4			332.3			140.1
Attributable profit to the Group		166			126			40			31.8			15.5


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		40,979		32,457		8,522			26.3
Trading portfolio (w/o loans)		13		51		(39	)		(75.3	)
Available-for-sale financial assets		58		42		16			38.0
Due from credit institutions*		6,896		5,415		1,481			27.3
Intangible assets and property and equipment		686		479		207			43.1
Other assets		1,406		1,244		161			13.0
Total assets/liabilities & shareholders’ equity		50,037		39,689		10,348			26.1
Customer deposits*		13,456		13,752		(296	)		(2.1	)
Marketable debt securities*		12,727		6,752		5,975			88.5
Subordinated debt		576		103		474			461.9
Insurance liabilities		—		—		—			—
Due to credit institutions*		19,696		16,308		3,388			20.8
Other liabilities		1,087		1,079		9			0.8
Shareholders’ equity		2,494		1,696		798			47.1
Other customer funds under management		392		343		49			14.4
Mutual funds		333		298		35			11.7
Pension funds		60		45		14			32.1
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		27,151		20,949		6,202			29.6


(*)		Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	28.87	30.11	(1.24 p.	)
Efficiency ratio	29.65	35.01	(5.36 p.	)
NPL ratio	2.66	2.41	0.25 p.
NPL coverage	114.43	124.43	(10.00 p.	)
Number of employees (direct & indirect)	6,374	5,288	1,086		20.5
Number of branches	279	276	3		1.1

Santander Consumer Finance

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		322			336			353			368			499
Income from companies accounted for by the equity method		1			1			2			2			2
Net fees		94			96			102			100			115
Insurance activity		—			—			—			—			—
Commercial revenue		417			433			456			470			616
Gains (losses) on financial transactions		12			14			8			15			4
Gross operating income		429			447			464			486			620
Income from non-financial services (net) and other operating income		10			5			7			8			9
Operating expenses		(156	)		(164	)		(164	)		(170	)		(189	)
General administrative expenses		(142	)		(150	)		(149	)		(151	)		(174	)
Personnel		(65	)		(67	)		(70	)		(69	)		(82	)
Other administrative expenses		(77	)		(83	)		(80	)		(82	)		(92	)
Depreciation and amortisation		(14	)		(14	)		(15	)		(19	)		(16	)
Net operating income		283			287			307			324			440
Net loan loss provisions		(94	)		(92	)		(100	)		(111	)		(200	)
Other income		(4	)		25			(2	)		(13	)		3
Profit before taxes (w/o capital gains)		184			220			205			199			242
Tax on profit		(57	)		(64	)		(60	)		(54	)		(72	)
Net profit from ordinary activity		127			157			146			145			171
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		127			157			146			145			171
Minority interests		1			2			3			3			5
Attributable profit to the Group (w/o capital gains)		126			155			143			142			166
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		126			155			143			142			166


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		32,457		34,477		35,735		39,461		40,979
Trading portfolio (w/o loans)		51		3		15		10		13
Available-for-sale financial assets		42		91		42		48		58
Due from credit institutions*		5,415		5,011		6,135		5,466		6,896
Intangible assets and property and equipment		479		619		621		643		686
Other assets		1,244		1,221		1,303		1,288		1,406
Total assets/liabilities & shareholders’ equity		39,689		41,423		43,851		46,917		50,037
Customer deposits*		13,752		14,197		14,036		13,439		13,456
Marketable debt securities*		6,752		5,961		7,126		10,427		12,727
Subordinated debt		103		160		577		578		576
Insurance liabilities		—		—		—		—		—
Due to credit institutions*		16,308		18,286		19,117		19,526		19,696
Other liabilities		1,079		1,501		1,463		1,342		1,087
Shareholders’ equity		1,696		1,318		1,531		1,604		2,494
Other customer funds under management		343		332		358		383		392
Mutual funds		298		287		306		323		333
Pension funds		45		45		52		60		60
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		20,949		20,650		22,098		24,827		27,151


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	2.41	2.46	2.57	2.57	2.66
NPL coverage	124.43	119.46	113.83	114.10	114.43
Risk-weighted assets	28,405	31,810	31,465	33,713	32,936
Spread loans	4.79	4.58	4.15	3.83	3.69

Portugal

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		174			163			11			6.8
Income from companies accounted for by the equity method		—			—			—			—
Net fees		96			94			2			1.9
Insurance activity		7			5			2			35.6
Commercial revenue		277			262			15			5.6
Gains (losses) on financial transactions		31			13			18			135.1
Gross operating income		308			276			33			11.9
Income from non-financial services (net) and other operating income		(2	)		(3	)		1			(26.5	)
Operating expenses		(132	)		(123	)		(9	)		7.7
General administrative expenses		(116	)		(108	)		(8	)		7.5
Personnel		(74	)		(70	)		(4	)		5.1
Other administrative expenses		(42	)		(37	)		(4	)		11.9
Depreciation and amortisation		(17	)		(15	)		(1	)		9.2
Net operating income		174			150			24			16.0
Net loan loss provisions		6			3			3			74.2
Other income		(11	)		(5	)		(6	)		122.1
Profit before taxes		169			148			21			14.0
Tax on profit		(37	)		(34	)		(3	)		8.8
Net profit from ordinary activity		132			115			18			15.5
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		132			115			18			15.5
Minority interests		0			0			0			11.6
Attributable profit to the Group		132			114			18			15.5


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		27,942		25,505		2,437			9.6	**
Trading portfolio (w/o loans)		934		883		51			5.8
Available-for-sale financial assets		1,003		2,292		(1,290	)		(56.3	)
Due from credit institutions*		8,809		10,952		(2,142	)		(19.6	)
Intangible assets and property and equipment		431		439		(8	)		(1.8	)
Other assets		5,391		3,750		1,640			43.7
Total assets/liabilities & shareholders’ equity		44,509		43,820		689			1.6
Customer deposits*		11,380		11,669		(289	)		(2.5	)
Marketable debt securities*		11,371		3,372		7,999			237.2
Subordinated debt		368		532		(164	)		(30.9	)
Insurance liabilities		4,074		3,213		861			26.8
Due to credit institutions*		13,358		20,675		(7,317	)		(35.4	)
Other liabilities		1,696		2,256		(560	)		(24.8	)
Shareholders’ equity		2,261		2,104		158			7.5
Other customer funds under management		11,773		10,263		1,511			14.7
Mutual funds		6,160		5,922		238			4.0
Pension funds		1,453		1,032		420			40.7
Managed portfolios		355		355		(1	)		(0.2	)
Savings-insurance policies		3,806		2,953		853			28.9
Customer funds under management		34,892		25,836		9,057			35.1


(*)		Includes all stock of concept classified in the balance sheet

(**).-		Impacted by reclassification from available-for-sale financial assets. In like-for-like terms: +6%


Ratios (%) and other data
ROE	25.56	23.44	2.12 p.
Efficiency ratio	42.96	44.63	(1.67 p.	)
NPL ratio	1.16	0.71	0.45 p.
NPL coverage	127.55	258.04	(130.49 p.	)
Number of employees (direct & indirect)	6,172	6,265	(93	)	(1.5	)
Number of branches	731	694	37		5.3

Portugal

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		163			172			167			158			174
Income from companies accounted for by the equity method		—			—			—			—			—
Net fees		94			96			91			85			96
Insurance activity		5			4			5			4			7
Commercial revenue		262			273			263			247			277
Gains (losses) on financial transactions		13			3			7			34			31
Gross operating income		276			276			270			281			308
Income from non-financial services (net) and other operating income		(3	)		(3	)		(3	)		(2	)		(2	)
Operating expenses		(123	)		(126	)		(127	)		(146	)		(132	)
General administrative expenses		(108	)		(110	)		(111	)		(129	)		(116	)
Personnel		(70	)		(72	)		(72	)		(79	)		(74	)
Other administrative expenses		(37	)		(38	)		(39	)		(50	)		(42	)
Depreciation and amortisation		(15	)		(16	)		(16	)		(17	)		(17	)
Net operating income		150			148			140			133			174
Net loan loss provisions		3			(22	)		(19	)		(3	)		6
Other income		(5	)		(2	)		10			(10	)		(11	)
Profit before taxes (w/o capital gains)		148			124			131			119			169
Tax on profit		(34	)		(22	)		(20	)		(23	)		(37	)
Net profit from ordinary activity		115			102			111			96			132
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		115			102			111			96			132
Minority interests		0			0			0			0			0
Attributable profit to the Group (w/o capital gains)		114			102			111			96			132
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		114			102			111			96			132


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		25,505		27,768		27,471		28,366		27,942
Trading portfolio (w/o loans)		883		1,157		1,083		820		934
Available-for-sale financial assets		2,292		837		814		719		1,003
Due from credit institutions*		10,952		11,425		11,065		9,330		8,809
Intangible assets and property and equipment		439		445		442		437		431
Other assets		3,750		4,586		4,493		4,632		5,391
Total assets/liabilities & shareholders’ equity		43,820		46,218		45,368		44,304		44,509
Customer deposits*		11,669		11,839		11,568		12,122		11,380
Marketable debt securities*		3,372		5,825		9,316		8,720		11,371
Subordinated debt		532		424		420		370		368
Insurance liabilities		3,213		3,475		3,670		3,759		4,074
Due to credit institutions*		20,675		20,931		16,335		16,028		13,358
Other liabilities		2,256		2,137		2,404		1,749		1,696
Shareholders’ equity		2,104		1,587		1,656		1,558		2,261
Other customer funds under management		10,263		10,891		11,155		11,354		11,773
Mutual funds		5,922		5,940		6,006		6,040		6,160
Pension funds		1,032		1,373		1,380		1,448		1,453
Managed portfolios		355		364		370		376		355
Savings-insurance policies		2,953		3,214		3,399		3,490		3,806
Customer funds under management		25,836		28,978		32,458		32,565		34,892


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio**	1.57	1.34	1.38	1.25	1.16
NPL coverage**	117.28	126.90	127.76	129.67	127.55
Risk-weighted assets	22,891	23,022	22,959	22,057	21,689
Spread (Retail Banking)	2.85	2.84	2.80	2.79	2.73
Spread loans	1.66	1.63	1.56	1.53	1.46
Spread deposits	1.19	1.21	1.24	1.26	1.27


(**).-		2006 data were drawn up on the basis of 2007 information

United Kingdom (Abbey)

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		572			509			62			12.2
Income from companies accounted for by the equity method		0			1			(1	)		(87.8	)
Net fees		251			252			(1	)		(0.5	)
Insurance activity		0			(0	)		0			—
Commercial revenue		823			763			61			7.9
Gains (losses) on financial transactions		131			109			22			20.4
Gross operating income		955			872			83			9.5
Income from non-financial services (net) and other operating income		14			16			(2	)		(10.1	)
Operating expenses		(492	)		(503	)		11			(2.2	)
General administrative expenses		(467	)		(476	)		9			(2.0	)
Personnel		(261	)		(272	)		10			(3.9	)
Other administrative expenses		(206	)		(204	)		(1	)		0.6
Depreciation and amortisation		(25	)		(27	)		2			(6.2	)
Net operating income		476			384			92			24.0
Net loan loss provisions		(81	)		(88	)		7			(7.9	)
Other income		5			(1	)		6			—
Profit before taxes		400			295			105			35.6
Tax on profit		(100	)		(82	)		(18	)		22.0
Net profit from ordinary activity		300			213			87			40.8
Net profit from discontinued operations		—			31			(31	)		(100.0	)
Net consolidated profit		300			244			56			22.8
Minority interests		—			—			—			—
Attributable profit to the Group		300			244			56			22.8

							Variation
	31.03.07			31.03.06			Amount			%
Balance sheet
Loans and credits*		192,666			173,841			18,826			10.8
Trading portfolio (w/o loans)		59,273			61,735			(2,461	)		(4.0	)
Available-for-sale financial assets		23			20			3			17.3
Due from credit institutions*		22,244			16,575			5,668			34.2
Intangible assets and property and equipment		4,945			5,044			(99	)		(2.0	)
Other assets		7,551			42,529			(34,979	)		(82.2	)
Total assets/liabilities & shareholders’ equity		286,702			299,744			(13,042	)		(4.4	)
Customer deposits*		112,292			109,039			3,252			3.0
Marketable debt securities*		82,528			61,049			21,480			35.2
Subordinated debt		9,216			11,045			(1,829	)		(16.6	)
Insurance liabilities		11			35,912			(35,901	)		(100.0	)
Due to credit institutions*		44,871			43,371			1,500			3.5
Other liabilities		33,839			36,240			(2,401	)		(6.6	)
Shareholders’ equity		3,946			3,088			857			27.8
Other customer funds under management		13,640			16,112			(2,473	)		(15.3	)
Mutual funds		13,640			5,904			7,736			131.0
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Savings-insurance policies		—			10,209			(10,209	)		(100.0	)
Customer funds under management		217,675			197,245			20,430			10.4


(*)		Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	31.34	33.43	(2.09 p.	)
Efficiency ratio	50.81	56.83	(6.02 p.	)
NPL ratio	0.55	0.64	(0.09 p.	)
NPL coverage	81.38	79.32	2.06 p.
Number of employees (direct & indirect)	16,616	18,622	(2,006	)	(10.8	)
Number of branches	711	712	(1	)	(0.1	)

United Kingdom (Abbey)

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		509			524			534			541			572
Income from companies accounted for by the equity method		1			1			1			0			0
Net fees		252			255			260			258			251
Insurance activity		(0	)		(0	)		0			0			0
Commercial revenue		763			780			794			799			823
Gains (losses) on financial transactions		109			74			117			123			131
Gross operating income		872			854			912			922			955
Income from non-financial services (net) and other operating income		16			14			11			1			14
Operating expenses		(503	)		(483	)		(496	)		(501	)		(492	)
General administrative expenses		(476	)		(455	)		(473	)		(473	)		(467	)
Personnel		(272	)		(263	)		(264	)		(263	)		(261	)
Other administrative expenses		(204	)		(192	)		(209	)		(210	)		(206	)
Depreciation and amortisation		(27	)		(27	)		(23	)		(28	)		(25	)
Net operating income		384			386			427			423			476
Net loan loss provisions		(88	)		(115	)		(103	)		(80	)		(81	)
Other income		(1	)		(1	)		1			(0	)		5
Profit before taxes (w/o capital gains)		295			270			325			343			400
Tax on profit		(82	)		(80	)		(97	)		(83	)		(100	)
Net profit from ordinary activity		213			189			227			260			300
Net profit from discontinued operations		31			58			24			0			—
Net consolidated profit (w/o capital gains)		244			247			251			260			300
Minority interests		—			—			—			—			—
Attributable profit to the Group (w/o capital gains)		244			247			251			260			300
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		244			247			251			260			300


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		173,841		182,597		183,818		190,512		192,666
Trading portfolio (w/o loans)		61,735		62,873		59,899		61,507		59,273
Available-for-sale financial assets		20		20		22		23		23
Due from credit institutions*		16,575		12,586		17,987		18,185		22,244
Intangible assets and property and equipment		5,044		4,999		5,039		5,059		4,945
Other assets		42,529		46,303		9,839		8,691		7,551
Total assets/liabilities & shareholders’ equity		299,744		309,378		276,604		283,977		286,702
Customer deposits*		109,039		110,225		114,948		115,194		112,292
Marketable debt securities*		61,049		64,696		69,176		72,857		82,528
Subordinated debt		11,045		10,640		10,458		9,430		9,216
Insurance liabilities		35,912		33,528		71		71		11
Due to credit institutions*		43,371		55,599		45,513		51,020		44,871
Other liabilities		36,240		32,057		33,198		32,076		33,839
Shareholders’ equity		3,088		2,633		3,241		3,328		3,946
Other customer funds under management		16,112		17,146		6,276		8,307		13,640
Mutual funds		5,904		6,638		6,276		8,307		13,640
Pension funds		—		—		—		—		—
Managed portfolios		—		—		—		—		—
Savings-insurance policies		10,209		10,508		—		—		—
Customer funds under management		197,245		202,707		200,857		205,788		217,675


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	0.64	0.63	0.64	0.60	0.55
NPL coverage	79.32	81.98	84.18	85.88	81.38
Risk-weighted assets	105,323	100,523	96,344	97,277	90,473
Spread (Retail Banking)	1.81	1.84	1.84	1.89	1.97
Spread loans	0.72	0.73	0.70	0.69	0.69
Spread deposits	1.09	1.11	1.14	1.20	1.28

United Kingdom (Abbey)

Million pound sterling


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		383			349			34			9.7
Income from companies accounted for by the equity method		0			1			(0	)		(88.1	)
Net fees		169			173			(5	)		(2.7	)
Insurance activity		0			(0	)		0			—
Commercial revenue		552			523			29			5.5
Gains (losses) on financial transactions		88			75			13			17.7
Gross operating income		640			598			42			7.0
Income from non-financial services (net) and other operating income		9			11			(1	)		(12.1	)
Operating expenses		(330	)		(345	)		15			(4.4	)
General administrative expenses		(313	)		(327	)		14			(4.2	)
Personnel		(175	)		(187	)		11			(6.0	)
Other administrative expenses		(138	)		(140	)		2			(1.7	)
Depreciation and amortisation		(17	)		(18	)		2			(8.3	)
Net operating income		319			264			56			21.2
Net loan loss provisions		(55	)		(61	)		6			(10.0	)
Other income		3			(0	)		4			—
Profit before taxes		268			203			66			32.5
Tax on profit		(67	)		(56	)		(11	)		19.3
Net profit from ordinary activity		201			146			55			37.7
Net profit from discontinued operations		—			21			(21	)		(100.0	)
Net consolidated profit		201			167			34			20.1
Minority interests		—			—			—			—
Attributable profit to the Group		201			167			34			20.1

							Variation
	31.03.07			31.03.06			Amount			%
Balance sheet
Loans and credits*		130,975			121,063			9,912			8.2
Trading portfolio (w/o loans)		40,294			42,992			(2,698	)		(6.3	)
Available-for-sale financial assets		16			14			2			14.5
Due from credit institutions*		15,121			11,543			3,578			31.0
Intangible assets and property and equipment		3,362			3,513			(151	)		(4.3	)
Other assets		5,133			29,617			(24,484	)		(82.7	)
Total assets/liabilities & shareholders’ equity		194,900			208,742			(13,841	)		(6.6	)
Customer deposits*		76,336			75,935			401			0.5
Marketable debt securities*		56,103			42,514			13,588			32.0
Subordinated debt		6,265			7,691			(1,427	)		(18.5	)
Insurance liabilities		7			25,009			(25,002	)		(100.0	)
Due to credit institutions*		30,503			30,203			299			1.0
Other liabilities		23,004			25,238			(2,234	)		(8.9	)
Shareholders’ equity		2,682			2,151			532			24.7
Other customer funds under management		9,272			11,221			(1,949	)		(17.4	)
Mutual funds		9,272			4,111			5,161			125.5
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Savings-insurance policies		—			7,109			(7,109	)		(100.0	)
Customer funds under management		147,976			137,361			10,614			7.7


(*)		Includes all stock of concept classified in the balance sheet

United Kingdom (Abbey)

Million pound sterling


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		349			360			363			364			383
Income from companies accounted for by the equity method		1			1			0			0			0
Net fees		173			176			177			174			169
Insurance activity		(0	)		(0	)		0			0			0
Commercial revenue		523			537			540			538			552
Gains (losses) on financial transactions		75			51			80			83			88
Gross operating income		598			588			620			621			640
Income from non-financial services (net) and other operating income		11			10			7			1			9
Operating expenses		(345	)		(332	)		(337	)		(337	)		(330	)
General administrative expenses		(327	)		(313	)		(322	)		(318	)		(313	)
Personnel		(187	)		(181	)		(179	)		(177	)		(175	)
Other administrative expenses		(140	)		(132	)		(142	)		(141	)		(138	)
Depreciation and amortisation		(18	)		(19	)		(16	)		(19	)		(17	)
Net operating income		264			265			290			285			319
Net loan loss provisions		(61	)		(79	)		(70	)		(54	)		(55	)
Other income		(0	)		(1	)		1			(0	)		3
Profit before taxes (w/o capital gains)		203			186			221			231			268
Tax on profit		(56	)		(55	)		(66	)		(56	)		(67	)
Net profit from ordinary activity		146			130			155			175			201
Net profit from discontinued operations		21			40			16			0			—
Net consolidated profit (w/o capital gains)		167			170			171			175			201
Minority interests		—			—			—			—			—
Attributable profit to the Group (w/o capital gains)		167			170			171			175			201
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		167			170			171			175			201


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		121,063		126,375		124,573		127,929		130,975
Trading portfolio (w/o loans)		42,992		43,515		40,594		41,302		40,294
Available-for-sale financial assets		14		14		15		16		16
Due from credit institutions*		11,543		8,711		12,190		12,211		15,121
Intangible assets and property and equipment		3,513		3,460		3,415		3,397		3,362
Other assets		29,617		32,046		6,668		5,836		5,133
Total assets/liabilities & shareholders’ equity		208,742		214,121		187,455		190,690		194,900
Customer deposits*		75,935		76,287		77,900		77,353		76,336
Marketable debt securities*		42,514		44,776		46,880		48,924		56,103
Subordinated debt		7,691		7,364		7,087		6,332		6,265
Insurance liabilities		25,009		23,205		48		48		7
Due to credit institutions*		30,203		38,480		30,844		34,260		30,503
Other liabilities		25,238		22,186		22,499		21,539		23,004
Shareholders’ equity		2,151		1,823		2,196		2,235		2,682
Other customer funds under management		11,221		11,866		4,253		5,578		9,272
Mutual funds		4,111		4,594		4,253		5,578		9,272
Pension funds		—		—		—		—		—
Managed portfolios		—		—		—		—		—
Savings-insurance policies		7,109		7,273		—		—		—
Customer funds under management		137,361		140,294		136,121		138,187		147,976


(*)		Includes all stock of concept classified in the balance sheet

Latin America

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,471			1,225			246			20.1
Income from companies accounted for by the equity method		1			2			(1	)		(33.4	)
Net fees		709			634			75			11.8
Insurance activity		57			33			24			72.9
Commercial revenue		2,239			1,894			345			18.2
Gains (losses) on financial transactions		205			196			8			4.2
Gross operating income		2,444			2,091			353			16.9
Income from non-financial services (net) and other operating income		(36	)		(24	)		(12	)		49.0
Operating expenses		(1,053	)		(993	)		(61	)		6.1
General administrative expenses		(973	)		(917	)		(56	)		6.1
Personnel		(523	)		(499	)		(24	)		4.9
Other administrative expenses		(450	)		(418	)		(31	)		7.5
Depreciation and amortisation		(80	)		(75	)		(5	)		6.5
Net operating income		1,354			1,074			280			26.1
Net loan loss provisions		(327	)		(184	)		(142	)		77.2
Other income		(4	)		(6	)		2			(32.5	)
Profit before taxes		1,023			883			140			15.9
Tax on profit		(250	)		(196	)		(54	)		27.5
Net profit from ordinary activity		773			687			86			12.5
Net profit from discontinued operations		—			7			(7	)		(100.0	)
Net consolidated profit		773			694			79			11.3
Minority interests		92			76			16			20.9
Attributable profit to the Group		681			618			63			10.1


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		59,399		53,530		5,869			11.0
Trading portfolio (w/o loans)		24,183		25,209		(1,026	)		(4.1	)
Available-for-sale financial assets		13,638		16,087		(2,449	)		(15.2	)
Due from credit institutions*		23,420		27,421		(4,001	)		(14.6	)
Intangible assets and property and equipment		1,689		1,364		325			23.8
Other assets		20,865		18,844		2,021			10.7
Total assets/liabilities & shareholders’ equity		143,194		142,455		739			0.5
Customer deposits*		75,488		66,929		8,559			12.8
Marketable debt securities*		4,367		6,337		(1,970	)		(31.1	)
Subordinated debt		2,450		1,077		1,373			127.5
Insurance liabilities		2,259		1,837		422			23.0
Due to credit institutions*		31,116		42,047		(10,931	)		(26.0	)
Other liabilities		18,720		14,751		3,969			26.9
Shareholders’ equity		8,795		9,479		(684	)		(7.2	)
Other customer funds under management		62,230		53,014		9,216			17.4
Mutual funds		32,494		24,885		7,609			30.6
Pension funds		18,564		19,110		(546	)		(2.9	)
Managed portfolios		11,172		9,018		2,153			23.9
Savings-insurance policies		—		—		—			—
Customer funds under management		144,534		127,356		17,178			13.5


(*)		Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	30.29	26.63	3.66 p.
Efficiency ratio	42.11	46.35	(4.24 p.	)
NPL ratio	1.50	1.71	(0.21 p.	)
NPL coverage	160.00	183.37	(23.37 p.	)
Number of employees (direct & indirect)	69,958	62,259	7,699		12.4
Number of branches	4,438	4,170	268		6.4

Latin America

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,225			1,290			1,366			1,399			1,471
Income from companies accounted for by the equity method		2			2			1			2			1
Net fees		634			617			622			682			709
Insurance activity		33			44			38			50			57
Commercial revenue		1,894			1,953			2,027			2,134			2,239
Gains (losses) on financial transactions		196			105			180			153			205
Gross operating income		2,091			2,058			2,207			2,286			2,444
Income from non-financial services (net) and other operating income		(24	)		(26	)		(21	)		(48	)		(36	)
Operating expenses		(993	)		(986	)		(1,040	)		(1,117	)		(1,053	)
General administrative expenses		(917	)		(909	)		(969	)		(1,031	)		(973	)
Personnel		(499	)		(500	)		(511	)		(543	)		(523	)
Other administrative expenses		(418	)		(409	)		(458	)		(489	)		(450	)
Depreciation and amortisation		(75	)		(77	)		(72	)		(86	)		(80	)
Net operating income		1,074			1,047			1,145			1,121			1,354
Net loan loss provisions		(184	)		(205	)		(171	)		(299	)		(327	)
Other income		(6	)		(123	)		(69	)		(55	)		(4	)
Profit before taxes (w/o capital gains)		883			719			905			768			1,023
Tax on profit		(196	)		(118	)		(189	)		(205	)		(250	)
Net profit from ordinary activity		687			601			716			563			773
Net profit from discontinued operations		7			1			0			0			—
Net consolidated profit (w/o capital gains)		694			602			717			563			773
Minority interests		76			73			64			75			92
Attributable profit to the Group (w/o capital gains)		618			529			652			487			681
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		618			529			652			487			681


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		53,530		53,256		56,398		60,172		59,399
Trading portfolio (w/o loans)		25,209		24,682		24,641		27,846		24,183
Available-for-sale financial assets		16,087		16,523		17,064		17,943		13,638
Due from credit institutions*		27,421		24,787		22,207		20,310		23,420
Intangible assets and property and equipment		1,364		1,280		1,517		1,695		1,689
Other assets		18,844		15,196		16,541		16,842		20,865
Total assets/liabilities & shareholders’ equity		142,455		135,725		138,368		144,809		143,194
Customer deposits*		66,929		65,681		72,550		75,301		75,488
Marketable debt securities*		6,337		6,264		5,895		5,258		4,367
Subordinated debt		1,077		1,565		1,906		2,383		2,450
Insurance liabilities		1,837		1,825		1,932		2,086		2,259
Due to credit institutions*		42,047		37,397		30,106		32,403		31,116
Other liabilities		14,751		14,778		17,626		19,529		18,720
Shareholders’ equity		9,479		8,215		8,353		7,847		8,795
Other customer funds under management		53,014		50,837		52,989		56,352		62,230
Mutual funds		24,885		24,363		26,567		27,965		32,494
Pension funds		19,110		17,449		16,861		18,052		18,564
Managed portfolios		9,018		9,025		9,560		10,334		11,172
Savings-insurance policies		—		—		—		—		—
Customer funds under management		127,356		124,348		133,340		139,295		144,534


(*)		Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	1.71	1.77	1.65	1.38	1.50
NPL coverage	183.37	167.53	166.55	167.29	160.00
Risk-weighted assets	62,272	58,303	61,551	66,774	69,672

Latin America

Million dollars


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,928			1,472			456			31.0
Income from companies accounted for by the equity method		2			3			(1	)		(27.4	)
Net fees		929			762			167			22.0
Insurance activity		75			40			35			88.5
Commercial revenue		2,935			2,277			658			28.9
Gains (losses) on financial transactions		268			236			32			13.6
Gross operating income		3,203			2,513			690			27.5
Income from non-financial services (net) and other operating income		(48	)		(29	)		(18	)		62.5
Operating expenses		(1,381	)		(1,193	)		(187	)		15.7
General administrative expenses		(1,275	)		(1,103	)		(173	)		15.7
Personnel		(686	)		(600	)		(86	)		14.3
Other administrative expenses		(590	)		(503	)		(87	)		17.3
Depreciation and amortisation		(105	)		(91	)		(15	)		16.1
Net operating income		1,775			1,290			484			37.5
Net loan loss provisions		(428	)		(222	)		(207	)		93.3
Other income		(5	)		(7	)		2			(26.4	)
Profit before taxes		1,341			1,061			280			26.3
Tax on profit		(328	)		(236	)		(92	)		39.0
Net profit from ordinary activity		1,013			825			187			22.7
Net profit from discontinued operations		—			9			(9	)		(100.0	)
Net consolidated profit		1,013			834			178			21.4
Minority interests		120			91			29			31.8
Attributable profit to the Group		892			743			149			20.1


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		79,107		64,792		14,315			22.1
Trading portfolio (w/o loans)		32,207		30,513		1,694			5.6
Available-for-sale financial assets		18,163		19,472		(1,309	)		(6.7	)
Due from credit institutions*		31,191		33,190		(2,000	)		(6.0	)
Intangible assets and property and equipment		2,250		1,651		599			36.3
Other assets		27,788		22,809		4,979			21.8
Total assets/liabilities & shareholders’ equity		190,706		172,428		18,279			10.6
Customer deposits*		100,535		81,010		19,524			24.1
Marketable debt securities*		5,816		7,671		(1,854	)		(24.2	)
Subordinated debt		3,263		1,303		1,959			150.4
Insurance liabilities		3,008		2,223		785			35.3
Due to credit institutions*		41,440		50,893		(9,453	)		(18.6	)
Other liabilities		24,931		17,854		7,077			39.6
Shareholders’ equity		11,714		11,473		240			2.1
Other customer funds under management		82,877		64,168		18,709			29.2
Mutual funds		43,275		30,121		13,155			43.7
Pension funds		24,724		23,131		1,592			6.9
Managed portfolios		14,878		10,916		3,963			36.3
Savings-insurance policies		—		—		—			—
Customer funds under management		192,491		154,152		38,339			24.9


(*)		Includes all stock of concept classified in the balance sheet

Latin America

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,472			1,617			1,735			1,794			1,928
Income from companies accounted for by the equity method		3			3			1			2			2
Net fees		762			775			792			875			929
Insurance activity		40			55			48			64			75
Commercial revenue		2,277			2,450			2,577			2,735			2,935
Gains (losses) on financial transactions		236			134			228			196			268
Gross operating income		2,513			2,583			2,805			2,932			3,203
Income from non-financial services (net) and other operating income		(29	)		(33	)		(27	)		(61	)		(48	)
Operating expenses		(1,193	)		(1,237	)		(1,323	)		(1,431	)		(1,381	)
General administrative expenses		(1,103	)		(1,141	)		(1,232	)		(1,322	)		(1,275	)
Personnel		(600	)		(627	)		(650	)		(696	)		(686	)
Other administrative expenses		(503	)		(514	)		(581	)		(626	)		(590	)
Depreciation and amortisation		(91	)		(96	)		(91	)		(110	)		(105	)
Net operating income		1,290			1,314			1,455			1,439			1,775
Net loan loss provisions		(222	)		(256	)		(219	)		(381	)		(428	)
Other income		(7	)		(151	)		(88	)		(70	)		(5	)
Profit before taxes (w/o capital gains)		1,061			907			1,149			988			1,341
Tax on profit		(236	)		(151	)		(239	)		(262	)		(328	)
Net profit from ordinary activity		825			756			910			726			1,013
Net profit from discontinued operations		9			2			0			0			—
Net consolidated profit (w/o capital gains)		834			758			910			726			1,013
Minority interests		91			92			82			97			120
Attributable profit to the Group (w/o capital gains)		743			666			828			629			892
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		743			666			828			629			892


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		64,792		67,705		71,399		79,247		79,107
Trading portfolio (w/o loans)		30,513		31,378		31,196		36,673		32,207
Available-for-sale financial assets		19,472		21,006		21,603		23,631		18,163
Due from credit institutions*		33,190		31,512		28,115		26,749		31,191
Intangible assets and property and equipment		1,651		1,627		1,921		2,233		2,250
Other assets		22,809		19,319		20,941		22,181		27,788
Total assets/liabilities & shareholders’ equity		172,428		172,548		175,175		190,713		190,706
Customer deposits*		81,010		83,501		91,849		99,172		100,535
Marketable debt securities*		7,671		7,964		7,462		6,925		5,816
Subordinated debt		1,303		1,989		2,414		3,139		3,263
Insurance liabilities		2,223		2,321		2,446		2,747		3,008
Due to credit institutions*		50,893		47,543		38,114		42,675		41,440
Other liabilities		17,854		18,787		22,315		25,720		24,931
Shareholders’ equity		11,473		10,443		10,575		10,334		11,714
Other customer funds under management		64,168		64,630		67,084		74,215		82,877
Mutual funds		30,121		30,973		33,634		36,830		43,275
Pension funds		23,131		22,183		21,346		23,774		24,724
Managed portfolios		10,916		11,474		12,103		13,610		14,878
Savings-insurance policies		—		—		—		—		—
Customer funds under management		154,152		158,083		168,808		183,451		192,491


(*)		Includes all stock of concept classified in the balance sheet

Brazil

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		525			467			58			12.5
Income from companies accounted for by the equity method		0			1			(0	)		(59.8	)
Net fees		281			239			42			17.7
Insurance activity		21			8			13			154.8
Commercial revenue		828			715			113			15.8
Gains (losses) on financial transactions		133			89			44			49.7
Gross operating income		961			804			157			19.5
Income from non-financial services (net) and other operating income		(2	)		3			(5	)		—
Operating expenses		(413	)		(398	)		(15	)		3.7
General administrative expenses		(381	)		(369	)		(12	)		3.2
Personnel		(192	)		(197	)		5			(2.4	)
Other administrative expenses		(190	)		(173	)		(17	)		9.6
Depreciation and amortisation		(31	)		(29	)		(3	)		9.2
Net operating income		547			409			137			33.5
Net loan loss provisions		(174	)		(102	)		(72	)		70.5
Other income		(20	)		(0	)		(20	)		—
Profit before taxes		352			307			45			14.6
Tax on profit		(124	)		(106	)		(18	)		16.8
Net profit from ordinary activity		228			201			27			13.4
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		228			201			27			13.4
Minority interests		4			3			0			11.9
Attributable profit to the Group		225			198			27			13.4


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		14,614		11,211		3,403			30.3
Trading portfolio (w/o loans)		7,055		8,375		(1,320	)		(15.8	)
Available-for-sale financial assets		2,708		6,307		(3,600	)		(57.1	)
Due from credit institutions*		2,425		8,005		(5,580	)		(69.7	)
Intangible assets and property and equipment		664		379		285			75.4
Other assets		10,567		9,318		1,250			13.4
Total assets/liabilities & shareholders’ equity		38,034		43,595		(5,562	)		(12.8	)
Customer deposits*		18,288		11,554		6,733			58.3
Marketable debt securities*		947		939		8			0.9
Subordinated debt		1,510		404		1,105			273.3
Insurance liabilities		1,550		1,209		341			28.2
Due to credit institutions*		5,592		19,648		(14,056	)		(71.5	)
Other liabilities		7,172		6,911		261			3.8
Shareholders’ equity		2,975		2,930		45			1.5
Other customer funds under management		18,326		13,070		5,256			40.2
Mutual funds		17,558		12,456		5,103			41.0
Pension funds		—		—		—			—
Managed portfolios		768		614		154			25.0
Savings-insurance policies		—		—		—			—
Customer funds under management		39,071		25,968		13,103			50.5

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	32.01	28.62	3.39	p.
Efficiency ratio	40.62	46.83	(6.21	p.)
NPL ratio	2.62	2.76	(0.14	p.)
NPL coverage	98.77	126.24	(27.47	p.)
Number of employees (direct & indirect)	21,680	21,171	509		2.4
Number of branches	2,044	1,877	167		8.9

Brazil

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		467			450			453			491			525
Income from companies accounted for by the equity method		1			0			(0	)		0			0
Net fees		239			232			238			292			281
Insurance activity		8			16			14			19			21
Commercial revenue		715			699			705			802			828
Gains (losses) on financial transactions		89			88			161			100			133
Gross operating income		804			788			865			902			961
Income from non-financial services (net) and other operating income		3			5			7			(22	)		(2	)
Operating expenses		(398	)		(396	)		(413	)		(419	)		(413	)
General administrative expenses		(369	)		(369	)		(386	)		(387	)		(381	)
Personnel		(197	)		(195	)		(195	)		(199	)		(192	)
Other administrative expenses		(173	)		(174	)		(192	)		(188	)		(190	)
Depreciation and amortisation		(29	)		(27	)		(27	)		(33	)		(31	)
Net operating income		409			397			460			461			547
Net loan loss provisions		(102	)		(117	)		(78	)		(142	)		(174	)
Other income		(0	)		(69	)		(54	)		(90	)		(20	)
Profit before taxes (w/o capital gains)		307			211			327			229			352
Tax on profit		(106	)		(52	)		(80	)		(75	)		(124	)
Net profit from ordinary activity		201			160			247			154			228
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		201			160			247			154			228
Minority interests		3			2			3			2			4
Attributable profit to the Group (w/o capital gains)		198			157			244			152			225
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		198			157			244			152			225


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		11,211		11,222		11,943		13,990		14,614
Trading portfolio (w/o loans)		8,375		5,756		5,999		8,933		7,055
Available-for-sale financial assets		6,307		5,851		5,131		6,356		2,708
Due from credit institutions*		8,005		7,663		4,223		2,619		2,425
Intangible assets and property and equipment		379		376		565		650		664
Other assets		9,318		6,876		7,276		7,273		10,567
Total assets/liabilities & shareholders’ equity		43,595		37,744		35,137		39,821		38,034
Customer deposits*		11,554		11,244		15,862		17,282		18,288
Marketable debt securities*		939		1,058		861		817		947
Subordinated debt		404		936		1,118		1,430		1,510
Insurance liabilities		1,209		1,207		1,275		1,407		1,550
Due to credit institutions*		19,648		13,769		6,314		8,542		5,592
Other liabilities		6,911		6,943		7,165		7,915		7,172
Shareholders’ equity		2,930		2,588		2,543		2,428		2,975
Other customer funds under management		13,070		13,376		14,087		14,674		18,326
Mutual funds		12,456		12,759		13,453		13,988		17,558
Pension funds		—		—		—		—		—
Managed portfolios		614		617		635		686		768
Savings-insurance policies		—		—		—		—		—
Customer funds under management		25,968		26,613		31,928		34,203		39,071

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	2.76	3.06	2.82	2.38	2.62
NPL coverage	126.24	109.28	106.61	102.78	98.77
Risk-weighted assets	16,811	15,303	16,082	18,200	19,484
Spread (Retail Banking)	21.72	21.25	20.08	18.87	19.25
Spread loans	19.19	19.20	18.18	17.20	17.63
Spread deposits	2.53	2.05	1.90	1.67	1.62

Brazil

Million dollars


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		689			562			127			22.6
Income from companies accounted for by the equity method		0			1			(1	)		(56.2	)
Net fees		369			287			81			28.3
Insurance activity		28			10			18			177.9
Commercial revenue		1,085			860			226			26.2
Gains (losses) on financial transactions		175			107			68			63.2
Gross operating income		1,260			967			293			30.3
Income from non-financial services (net) and other operating income		(3	)		4			(6	)		—
Operating expenses		(541	)		(478	)		(62	)		13.0
General administrative expenses		(500	)		(444	)		(56	)		12.6
Personnel		(251	)		(236	)		(15	)		6.4
Other administrative expenses		(248	)		(208	)		(41	)		19.6
Depreciation and amortisation		(41	)		(34	)		(7	)		19.1
Net operating income		717			492			224			45.6
Net loan loss provisions		(228	)		(123	)		(106	)		85.9
Other income		(27	)		(0	)		(27	)		—
Profit before taxes		461			369			92			24.9
Tax on profit		(162	)		(127	)		(35	)		27.4
Net profit from ordinary activity		299			242			57			23.6
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		299			242			57			23.6
Minority interests		5			4			1			22.0
Attributable profit to the Group		294			238			56			23.7


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		19,463		13,570		5,893			43.4
Trading portfolio (w/o loans)		9,396		10,137		(741	)		(7.3	)
Available-for-sale financial assets		3,606		7,634		(4,028	)		(52.8	)
Due from credit institutions*		3,230		9,690		(6,460	)		(66.7	)
Intangible assets and property and equipment		884		458		426			93.0
Other assets		14,074		11,278		2,796			24.8
Total assets/liabilities & shareholders’ equity		50,653		52,768		(2,115	)		(4.0	)
Customer deposits*		24,355		13,985		10,370			74.2
Marketable debt securities*		1,262		1,137		125			11.0
Subordinated debt		2,010		489		1,521			310.8
Insurance liabilities		2,064		1,463		601			41.1
Due to credit institutions*		7,448		23,782		(16,334	)		(68.7	)
Other liabilities		9,552		8,365		1,187			14.2
Shareholders’ equity		3,962		3,547		415			11.7
Other customer funds under management		24,407		15,820		8,587			54.3
Mutual funds		23,384		15,077		8,308			55.1
Pension funds		—		—		—			—
Managed portfolios		1,023		743		279			37.6
Savings-insurance policies		—		—		—			—
Customer funds under management		52,034		31,431		20,603			65.5

(*) Includes all stock of concept classified in the balance sheet

Brazil

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		562			566			576			629			689
Income from companies accounted for by the equity method		1			1			(0	)		0			0
Net fees		287			292			303			374			369
Insurance activity		10			20			17			24			28
Commercial revenue		860			878			897			1,028			1,085
Gains (losses) on financial transactions		107			111			202			128			175
Gross operating income		967			989			1,099			1,156			1,260
Income from non-financial services (net) and other operating income		4			6			9			(27	)		(3	)
Operating expenses		(478	)		(497	)		(525	)		(538	)		(541	)
General administrative expenses		(444	)		(462	)		(491	)		(496	)		(500	)
Personnel		(236	)		(244	)		(248	)		(256	)		(251	)
Other administrative expenses		(208	)		(218	)		(244	)		(241	)		(248	)
Depreciation and amortisation		(34	)		(34	)		(34	)		(42	)		(41	)
Net operating income		492			498			583			591			717
Net loan loss provisions		(123	)		(147	)		(100	)		(182	)		(228	)
Other income		(0	)		(84	)		(69	)		(114	)		(27	)
Profit before taxes (w/o capital gains)		369			267			414			296			461
Tax on profit		(127	)		(66	)		(102	)		(97	)		(162	)
Net profit from ordinary activity		242			201			313			199			299
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		242			201			313			199			299
Minority interests		4			3			4			3			5
Attributable profit to the Group (w/o capital gains)		238			198			309			196			294
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		238			198			309			196			294


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		13,570		14,266		15,119		18,425		19,463
Trading portfolio (w/o loans)		10,137		7,318		7,594		11,765		9,396
Available-for-sale financial assets		7,634		7,438		6,496		8,370		3,606
Due from credit institutions*		9,690		9,742		5,346		3,450		3,230
Intangible assets and property and equipment		458		478		716		856		884
Other assets		11,278		8,742		9,212		9,579		14,074
Total assets/liabilities & shareholders’ equity		52,768		47,984		44,484		52,445		50,653
Customer deposits*		13,985		14,294		20,081		22,760		24,355
Marketable debt securities*		1,137		1,345		1,091		1,076		1,262
Subordinated debt		489		1,190		1,415		1,883		2,010
Insurance liabilities		1,463		1,534		1,614		1,853		2,064
Due to credit institutions*		23,782		17,504		7,993		11,250		7,448
Other liabilities		8,365		8,826		9,071		10,424		9,552
Shareholders’ equity		3,547		3,291		3,219		3,198		3,962
Other customer funds under management		15,820		17,005		17,835		19,326		24,407
Mutual funds		15,077		16,220		17,031		18,423		23,384
Pension funds		—		—		—		—		—
Managed portfolios		743		784		803		903		1,023
Savings-insurance policies		—		—		—		—		—
Customer funds under management		31,431		33,833		40,421		45,045		52,034

(*) Includes all stock of concept classified in the balance sheet

Brazil

Million brazilian real


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,451			1,231			220			17.8
Income from companies accounted for by the equity method		1			2			(1	)		(57.9	)
Net fees		777			630			147			23.3
Insurance activity		58			22			37			167.0
Commercial revenue		2,287			1,885			402			21.3
Gains (losses) on financial transactions		368			234			133			56.9
Gross operating income		2,654			2,119			535			25.2
Income from non-financial services (net) and other operating income		(6	)		8			(14	)		—
Operating expenses		(1,139	)		(1,049	)		(90	)		8.6
General administrative expenses		(1,053	)		(974	)		(80	)		8.2
Personnel		(530	)		(518	)		(12	)		2.3
Other administrative expenses		(523	)		(456	)		(68	)		14.9
Depreciation and amortisation		(86	)		(75	)		(11	)		14.4
Net operating income		1,510			1,079			431			39.9
Net loan loss provisions		(481	)		(269	)		(212	)		78.7
Other income		(56	)		(0	)		(56	)		—
Profit before taxes		972			810			162			20.1
Tax on profit		(342	)		(279	)		(63	)		22.4
Net profit from ordinary activity		630			531			100			18.8
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		630			531			100			18.8
Minority interests		10			9			1			17.3
Attributable profit to the Group		620			522			98			18.8


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		39,422		29,664		9,758			32.9
Trading portfolio (w/o loans)		19,032		22,161		(3,128	)		(14.1	)
Available-for-sale financial assets		7,304		16,688		(9,384	)		(56.2	)
Due from credit institutions*		6,542		21,182		(14,639	)		(69.1	)
Intangible assets and property and equipment		1,792		1,002		790			78.8
Other assets		28,506		24,654		3,852			15.6
Total assets/liabilities & shareholders’ equity		102,598		115,350		(12,753	)		(11.1	)
Customer deposits*		49,332		30,571		18,760			61.4
Marketable debt securities*		2,556		2,486		70			2.8
Subordinated debt		4,072		1,070		3,002			280.6
Insurance liabilities		4,181		3,198		982			30.7
Due to credit institutions*		15,085		51,987		(36,901	)		(71.0	)
Other liabilities		19,347		18,285		1,062			5.8
Shareholders’ equity		8,025		7,754		272			3.5
Other customer funds under management		49,436		34,582		14,854			43.0
Mutual funds		47,365		32,957		14,407			43.7
Pension funds		—		—		—			—
Managed portfolios		2,071		1,625		446			27.5
Savings-insurance policies		—		—		—			—
Customer funds under management		105,396		68,709		36,687			53.4

(*) Includes all stock of concept classified in the balance sheet

Brazil

Million brazilian real


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,231			1,237			1,251			1,357			1,451
Income from companies accounted for by the equity method		2			1			(0	)		1			1
Net fees		630			638			658			807			777
Insurance activity		22			44			38			53			58
Commercial revenue		1,885			1,920			1,946			2,217			2,287
Gains (losses) on financial transactions		234			243			440			276			368
Gross operating income		2,119			2,163			2,387			2,493			2,654
Income from non-financial services (net) and other operating income		8			13			21			(60	)		(6	)
Operating expenses		(1,049	)		(1,086	)		(1,140	)		(1,160	)		(1,139	)
General administrative expenses		(974	)		(1,011	)		(1,066	)		(1,070	)		(1,053	)
Personnel		(518	)		(534	)		(537	)		(551	)		(530	)
Other administrative expenses		(456	)		(477	)		(529	)		(519	)		(523	)
Depreciation and amortisation		(75	)		(75	)		(74	)		(90	)		(86	)
Net operating income		1,079			1,090			1,267			1,274			1,510
Net loan loss provisions		(269	)		(321	)		(217	)		(392	)		(481	)
Other income		(0	)		(185	)		(149	)		(246	)		(56	)
Profit before taxes (w/o capital gains)		810			585			900			636			972
Tax on profit		(279	)		(144	)		(221	)		(208	)		(342	)
Net profit from ordinary activity		531			440			679			427			630
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		531			440			679			427			630
Minority interests		9			6			8			6			10
Attributable profit to the Group (w/o capital gains)		522			434			671			421			620
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		522			434			671			421			620


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		29,664		30,858		32,862		39,337		39,422
Trading portfolio (w/o loans)		22,161		15,828		16,506		25,118		19,032
Available-for-sale financial assets		16,688		16,089		14,120		17,871		7,304
Due from credit institutions*		21,182		21,071		11,620		7,365		6,542
Intangible assets and property and equipment		1,002		1,034		1,556		1,827		1,792
Other assets		24,654		18,908		20,022		20,452		28,506
Total assets/liabilities & shareholders’ equity		115,350		103,789		96,686		111,969		102,598
Customer deposits*		30,571		30,919		43,646		48,593		49,332
Marketable debt securities*		2,486		2,909		2,370		2,297		2,556
Subordinated debt		1,070		2,573		3,075		4,021		4,072
Insurance liabilities		3,198		3,318		3,509		3,957		4,181
Due to credit institutions*		51,987		37,862		17,373		24,019		15,085
Other liabilities		18,285		19,091		19,715		22,255		19,347
Shareholders’ equity		7,754		7,118		6,998		6,827		8,025
Other customer funds under management		34,582		36,781		38,764		41,261		49,436
Mutual funds		32,957		35,084		37,018		39,332		47,365
Pension funds		—		—		—		—		—
Managed portfolios		1,625		1,697		1,746		1,928		2,071
Savings-insurance policies		—		—		—		—		—
Customer funds under management		68,709		73,182		87,856		96,172		105,396

(*) Includes all stock of concept classified in the balance sheet

Mexico

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		457			342			115			33.6
Income from companies accounted for by the equity method		0			—			0			—
Net fees		140			139			1			1.0
Insurance activity		10			6			4			63.7
Commercial revenue		607			487			120			24.7
Gains (losses) on financial transactions		8			26			(18	)		(69.7	)
Gross operating income		615			512			102			20.0
Income from non-financial services (net) and other operating income		(20	)		(17	)		(2	)		13.3
Operating expenses		(231	)		(228	)		(3	)		1.3
General administrative expenses		(212	)		(211	)		(1	)		0.5
Personnel		(111	)		(108	)		(4	)		3.3
Other administrative expenses		(101	)		(103	)		2			(2.4	)
Depreciation and amortisation		(19	)		(17	)		(2	)		11.2
Net operating income		364			267			97			36.3
Net loan loss provisions		(90	)		(30	)		(60	)		201.4
Other income		(3	)		(12	)		9			(78.7	)
Profit before taxes		271			225			46			20.5
Tax on profit		(66	)		(37	)		(29	)		76.8
Net profit from ordinary activity		206			188			18			9.4
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		206			188			18			9.4
Minority interests		50			46			4			8.2
Attributable profit to the Group		156			142			14			9.8


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		13,750		13,153		597			4.5
Trading portfolio (w/o loans)		13,249		14,138		(890	)		(6.3	)
Available-for-sale financial assets		6,406		4,399		2,007			45.6
Due from credit institutions*		5,524		7,897		(2,373	)		(30.0	)
Intangible assets and property and equipment		365		315		50			15.8
Other assets		5,610		5,464		146			2.7
Total assets/liabilities & shareholders’ equity		44,904		45,368		(464	)		(1.0	)
Customer deposits*		22,631		23,818		(1,188	)		(5.0	)
Marketable debt securities*		996		2,742		(1,746	)		(63.7	)
Subordinated debt		58		62		(4	)		(6.8	)
Insurance liabilities		92		70		22			30.8
Due to credit institutions*		12,273		11,982		291			2.4
Other liabilities		6,800		4,327		2,473			57.1
Shareholders’ equity		2,054		2,366		(311	)		(13.2	)
Other customer funds under management		12,403		10,942		1,461			13.3
Mutual funds		9,017		7,662		1,355			17.7
Pension funds		3,386		3,280		106			3.2
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		36,088		37,565		(1,477	)		(3.9	)

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	25.41	24.11	1.30	p.
Efficiency ratio	37.29	44.23	(6.94	p.)
NPL ratio	0.83	0.69	0.14	p.
NPL coverage	241.35	335.91	(94.56	p.)
Number of employees (direct & indirect)	17,283	14,116	3,167		22.4
Number of branches	1,038	1,012	26		2.6

Mexico

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		342			345			417			454			457
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		139			129			124			145			140
Insurance activity		6			7			6			5			10
Commercial revenue		487			480			547			604			607
Gains (losses) on financial transactions		26			(7	)		(41	)		19			8
Gross operating income		512			473			506			623			615
Income from non-financial services (net) and other operating income		(17	)		(20	)		(18	)		(18	)		(20	)
Operating expenses		(228	)		(211	)		(238	)		(267	)		(231	)
General administrative expenses		(211	)		(195	)		(220	)		(247	)		(212	)
Personnel		(108	)		(100	)		(106	)		(111	)		(111	)
Other administrative expenses		(103	)		(96	)		(114	)		(136	)		(101	)
Depreciation and amortisation		(17	)		(16	)		(18	)		(20	)		(19	)
Net operating income		267			242			250			338			364
Net loan loss provisions		(30	)		(39	)		(41	)		(97	)		(90	)
Other income		(12	)		(1	)		(5	)		21			(3	)
Profit before taxes (w/o capital gains)		225			202			205			261			271
Tax on profit		(37	)		(25	)		(52	)		(85	)		(66	)
Net profit from ordinary activity		188			177			153			176			206
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		188			177			153			176			206
Minority interests		46			42			38			40			50
Attributable profit to the Group (w/o capital gains)		142			135			115			136			156
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		142			135			115			136			156


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		13,153		12,939		14,073		15,647		13,750
Trading portfolio (w/o loans)		14,138		15,844		15,084		15,084		13,249
Available-for-sale financial assets		4,399		5,616		6,944		6,686		6,406
Due from credit institutions*		7,897		7,241		9,427		7,844		5,524
Intangible assets and property and equipment		315		291		320		368		365
Other assets		5,464		4,054		4,981		4,401		5,610
Total assets/liabilities & shareholders’ equity		45,368		45,985		50,829		50,032		44,904
Customer deposits*		23,818		23,172		23,944		23,416		22,631
Marketable debt securities*		2,742		2,580		2,496		2,215		996
Subordinated debt		62		60		61		57		58
Insurance liabilities		70		70		81		88		92
Due to credit institutions*		11,982		13,623		16,343		15,505		12,273
Other liabilities		4,327		4,280		5,598		6,507		6,800
Shareholders’ equity		2,366		2,200		2,307		2,244		2,054
Other customer funds under management		10,942		10,120		11,583		11,689		12,403
Mutual funds		7,662		7,138		8,375		8,395		9,017
Pension funds		3,280		2,982		3,208		3,295		3,386
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		37,565		35,931		38,084		37,377		36,088

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	0.69	0.89	0.90	0.64	0.83
NPL coverage	335.91	251.48	240.83	279.19	241.35
Risk-weighted assets	13,017	12,778	15,196	15,850	15,965
Spread (Retail Banking)	11.62	12.21	13.64	14.20	14.39
Spread loans	8.13	9.05	10.34	10.72	10.84
Spread deposits	3.49	3.16	3.30	3.48	3.55

Mexico

Million dollars


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		599			411			188			45.7
Income from companies accounted for by the equity method		0			—			0			—
Net fees		184			167			17			10.1
Insurance activity		13			7			6			78.5
Commercial revenue		795			585			210			36.0
Gains (losses) on financial transactions		10			31			(21	)		(67.0	)
Gross operating income		805			616			190			30.8
Income from non-financial services (net) and other operating income		(26	)		(21	)		(5	)		23.6
Operating expenses		(302	)		(273	)		(29	)		10.5
General administrative expenses		(278	)		(253	)		(24	)		9.6
Personnel		(146	)		(129	)		(16	)		12.6
Other administrative expenses		(132	)		(124	)		(8	)		6.5
Depreciation and amortisation		(24	)		(20	)		(4	)		21.2
Net operating income		477			321			156			48.6
Net loan loss provisions		(118	)		(36	)		(82	)		228.6
Other income		(3	)		(14	)		11			(76.7	)
Profit before taxes		356			271			85			31.4
Tax on profit		(86	)		(45	)		(41	)		92.8
Net profit from ordinary activity		270			226			44			19.3
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		270			226			44			19.3
Minority interests		66			56			10			18.0
Attributable profit to the Group		204			170			34			19.7


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		18,312		15,921		2,392			15.0
Trading portfolio (w/o loans)		17,644		17,113		531			3.1
Available-for-sale financial assets		8,532		5,325		3,206			60.2
Due from credit institutions*		7,357		9,559		(2,202	)		(23.0	)
Intangible assets and property and equipment		487		382		105			27.5
Other assets		7,471		6,614		857			13.0
Total assets/liabilities & shareholders’ equity		59,803		54,913		4,890			8.9
Customer deposits*		30,140		28,830		1,310			4.5
Marketable debt securities*		1,327		3,319		(1,992	)		(60.0	)
Subordinated debt		77		75		2			2.5
Insurance liabilities		122		85		37			43.9
Due to credit institutions*		16,345		14,503		1,842			12.7
Other liabilities		9,056		5,237		3,819			72.9
Shareholders’ equity		2,736		2,863		(128	)		(4.5	)
Other customer funds under management		16,518		13,244		3,274			24.7
Mutual funds		12,009		9,275		2,734			29.5
Pension funds		4,509		3,970		539			13.6
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		48,062		45,469		2,594			5.7

(*) Includes all stock of concept classified in the balance sheet

Mexico

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		411			432			529			580			599
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		167			162			158			186			184
Insurance activity		7			8			8			6			13
Commercial revenue		585			603			694			772			795
Gains (losses) on financial transactions		31			(8	)		(51	)		24			10
Gross operating income		616			595			644			796			805
Income from non-financial services (net) and other operating income		(21	)		(25	)		(22	)		(23	)		(26	)
Operating expenses		(273	)		(265	)		(302	)		(341	)		(302	)
General administrative expenses		(253	)		(246	)		(279	)		(316	)		(278	)
Personnel		(129	)		(125	)		(135	)		(142	)		(146	)
Other administrative expenses		(124	)		(120	)		(145	)		(174	)		(132	)
Depreciation and amortisation		(20	)		(20	)		(23	)		(25	)		(24	)
Net operating income		321			304			319			431			477
Net loan loss provisions		(36	)		(48	)		(51	)		(123	)		(118	)
Other income		(14	)		(1	)		(6	)		26			(3	)
Profit before taxes (w/o capital gains)		271			254			261			334			356
Tax on profit		(45	)		(32	)		(66	)		(108	)		(86	)
Net profit from ordinary activity		226			222			195			226			270
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		226			222			195			226			270
Minority interests		56			53			48			52			66
Attributable profit to the Group (w/o capital gains)		170			169			147			175			204
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		170			169			147			175			204


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		15,921		16,450		17,816		20,607		18,312
Trading portfolio (w/o loans)		17,113		20,142		19,097		19,866		17,644
Available-for-sale financial assets		5,325		7,139		8,791		8,806		8,532
Due from credit institutions*		9,559		9,205		11,934		10,331		7,357
Intangible assets and property and equipment		382		370		406		485		487
Other assets		6,614		5,154		6,305		5,797		7,471
Total assets/liabilities & shareholders’ equity		54,913		58,461		64,349		65,892		59,803
Customer deposits*		28,830		29,459		30,313		30,839		30,140
Marketable debt securities*		3,319		3,280		3,160		2,917		1,327
Subordinated debt		75		76		77		75		77
Insurance liabilities		85		89		102		116		122
Due to credit institutions*		14,503		17,319		20,690		20,420		16,345
Other liabilities		5,237		5,442		7,087		8,570		9,056
Shareholders’ equity		2,863		2,797		2,921		2,955		2,736
Other customer funds under management		13,244		12,865		14,664		15,395		16,518
Mutual funds		9,275		9,074		10,602		11,056		12,009
Pension funds		3,970		3,791		4,062		4,339		4,509
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		45,469		45,679		48,214		49,226		48,062

(*) Includes all stock of concept classified in the balance sheet

Mexico

Million new mexican peso


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		6,596			4,355			2,241			51.5
Income from companies accounted for by the equity method		0			—			0			—
Net fees		2,025			1,769			256			14.5
Insurance activity		139			75			64			85.6
Commercial revenue		8,761			6,199			2,562			41.3
Gains (losses) on financial transactions		112			327			(214	)		(65.7	)
Gross operating income		8,873			6,525			2,347			36.0
Income from non-financial services (net) and other operating income		(285	)		(222	)		(63	)		28.5
Operating expenses		(3,328	)		(2,899	)		(430	)		14.8
General administrative expenses		(3,059	)		(2,684	)		(374	)		13.9
Personnel		(1,607	)		(1,372	)		(234	)		17.1
Other administrative expenses		(1,452	)		(1,312	)		(140	)		10.7
Depreciation and amortisation		(270	)		(214	)		(56	)		26.0
Net operating income		5,259			3,405			1,854			54.5
Net loan loss provisions		(1,302	)		(381	)		(921	)		241.6
Other income		(37	)		(153	)		116			(75.8	)
Profit before taxes		3,920			2,870			1,050			36.6
Tax on profit		(949	)		(473	)		(475	)		100.4
Net profit from ordinary activity		2,971			2,397			575			24.0
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		2,971			2,397			575			24.0
Minority interests		725			591			134			22.6
Attributable profit to the Group		2,246			1,805			441			24.4


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		201,272		174,052		27,220			15.6
Trading portfolio (w/o loans)		193,929		187,089		6,841			3.7
Available-for-sale financial assets		93,771		58,217		35,554			61.1
Due from credit institutions*		80,860		104,498		(23,639	)		(22.6	)
Intangible assets and property and equipment		5,347		4,173		1,174			28.1
Other assets		82,116		72,307		9,809			13.6
Total assets/liabilities & shareholders’ equity		657,295		600,335		56,959			9.5
Customer deposits*		331,266		315,181		16,085			5.1
Marketable debt securities*		14,584		36,284		(21,700	)		(59.8	)
Subordinated debt		849		824		25			3.0
Insurance liabilities		1,344		929		415			44.7
Due to credit institutions*		179,648		158,555		21,093			13.3
Other liabilities		99,535		57,257		42,277			73.8
Shareholders’ equity		30,070		31,305		(1,235	)		(3.9	)
Other customer funds under management		181,552		144,795		36,757			25.4
Mutual funds		131,990		101,394		30,596			30.2
Pension funds		49,562		43,401		6,161			14.2
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		528,251		497,084		31,167			6.3

(*) Includes all stock of concept classified in the balance sheet

Mexico

Million new mexican peso


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		4,355			4,813			5,780			6,319			6,596
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		1,769			1,807			1,725			2,023			2,025
Insurance activity		75			91			87			68			139
Commercial revenue		6,199			6,711			7,591			8,411			8,761
Gains (losses) on financial transactions		327			(80	)		(550	)		258			112
Gross operating income		6,525			6,631			7,041			8,669			8,873
Income from non-financial services (net) and other operating income		(222	)		(277	)		(246	)		(256	)		(285	)
Operating expenses		(2,899	)		(2,959	)		(3,307	)		(3,716	)		(3,328	)
General administrative expenses		(2,684	)		(2,740	)		(3,056	)		(3,439	)		(3,059	)
Personnel		(1,372	)		(1,398	)		(1,476	)		(1,545	)		(1,607	)
Other administrative expenses		(1,312	)		(1,342	)		(1,580	)		(1,894	)		(1,452	)
Depreciation and amortisation		(214	)		(219	)		(251	)		(277	)		(270	)
Net operating income		3,405			3,395			3,488			4,697			5,259
Net loan loss provisions		(381	)		(536	)		(562	)		(1,344	)		(1,302	)
Other income		(153	)		(19	)		(65	)		284			(37	)
Profit before taxes (w/o capital gains)		2,870			2,839			2,861			3,638			3,920
Tax on profit		(473	)		(363	)		(721	)		(1,175	)		(949	)
Net profit from ordinary activity		2,397			2,477			2,140			2,463			2,971
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		2,397			2,477			2,140			2,463			2,971
Minority interests		591			590			526			561			725
Attributable profit to the Group (w/o capital gains)		1,805			1,887			1,614			1,901			2,246
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		1,805			1,887			1,614			1,901			2,246


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		174,052		185,463		195,797		223,569		201,272
Trading portfolio (w/o loans)		187,089		227,090		209,872		215,522		193,929
Available-for-sale financial assets		58,217		80,493		96,614		95,535		93,771
Due from credit institutions*		104,498		103,785		131,156		112,081		80,860
Intangible assets and property and equipment		4,173		4,175		4,459		5,265		5,347
Other assets		72,307		58,113		69,296		62,889		82,116
Total assets/liabilities & shareholders’ equity		600,335		659,119		707,193		714,861		657,295
Customer deposits*		315,181		332,135		333,140		334,568		331,266
Marketable debt securities*		36,284		36,976		34,727		31,648		14,584
Subordinated debt		824		853		845		818		849
Insurance liabilities		929		1,008		1,121		1,254		1,344
Due to credit institutions*		158,555		195,265		227,380		221,539		179,648
Other liabilities		57,257		61,352		77,883		92,973		99,535
Shareholders’ equity		31,305		31,531		32,097		32,061		30,070
Other customer funds under management		144,795		145,048		161,157		167,019		181,552
Mutual funds		101,394		102,309		116,520		119,946		131,990
Pension funds		43,401		42,738		44,637		47,072		49,562
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		497,084		515,012		529,869		534,053		528,251

(*) Includes all stock of concept classified in the balance sheet

Chile

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		215			197			18			9.2
Income from companies accounted for by the equity method		(0	)		0			(1	)		—
Net fees		91			86			5			5.9
Insurance activity		10			8			2			25.0
Commercial revenue		316			291			25			8.5
Gains (losses) on financial transactions		38			42			(4	)		(9.8	)
Gross operating income		353			332			21			6.2
Income from non-financial services (net) and other operating income		(5	)		(2	)		(3	)		104.2
Operating expenses		(138	)		(136	)		(2	)		1.4
General administrative expenses		(126	)		(123	)		(3	)		2.0
Personnel		(75	)		(74	)		(1	)		1.7
Other administrative expenses		(50	)		(49	)		(1	)		2.6
Depreciation and amortisation		(13	)		(13	)		1			(4.9	)
Net operating income		210			194			16			8.4
Net loan loss provisions		(31	)		(36	)		4			(12.6	)
Other income		12			(1	)		13			—
Profit before taxes		190			157			33			21.1
Tax on profit		(31	)		(25	)		(6	)		23.0
Net profit from ordinary activity		160			132			27			20.8
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		160			132			27			20.8
Minority interests		29			19			10			56.2
Attributable profit to the Group		131			114			17			14.9


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		15,494		15,253		240			1.6
Trading portfolio (w/o loans)		1,426		990		436			44.1
Available-for-sale financial assets		711		1,210		(499	)		(41.2	)
Due from credit institutions*		2,678		4,458		(1,780	)		(39.9	)
Intangible assets and property and equipment		301		318		(16	)		(5.2	)
Other assets		1,500		1,378		122			8.8
Total assets/liabilities & shareholders’ equity		22,110		23,606		(1,496	)		(6.3	)
Customer deposits*		13,372		13,261		111			0.8
Marketable debt securities*		1,467		1,603		(136	)		(8.5	)
Subordinated debt		690		610		80			13.1
Insurance liabilities		59		47		12			26.2
Due to credit institutions*		3,586		5,288		(1,702	)		(32.2	)
Other liabilities		1,520		1,016		504			49.6
Shareholders’ equity		1,416		1,781		(365	)		(20.5	)
Other customer funds under management		12,213		10,509		1,704			16.2
Mutual funds		3,811		2,941		870			29.6
Pension funds		8,402		7,568		834			11.0
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		27,742		25,983		1,759			6.8

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	37.07	26.20	10.87	p.
Efficiency ratio	39.15	41.01	(1.86	p.)
NPL ratio	1.70	2.15	(0.45	p.)
NPL coverage	147.57	165.07	(17.50	p.)
Number of employees (direct & indirect)	13,331	11,249	2,082		18.5
Number of branches	442	410	32		7.8

Chile

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		197			264			256			194			215
Income from companies accounted for by the equity method		0			0			0			0			(0	)
Net fees		86			84			83			86			91
Insurance activity		8			11			9			8			10
Commercial revenue		291			359			348			289			316
Gains (losses) on financial transactions		42			6			26			38			38
Gross operating income		332			365			374			326			353
Income from non-financial services (net) and other operating income		(2	)		(4	)		(2	)		(3	)		(5	)
Operating expenses		(136	)		(144	)		(143	)		(157	)		(138	)
General administrative expenses		(123	)		(125	)		(134	)		(146	)		(126	)
Personnel		(74	)		(80	)		(81	)		(97	)		(75	)
Other administrative expenses		(49	)		(45	)		(54	)		(49	)		(50	)
Depreciation and amortisation		(13	)		(19	)		(9	)		(11	)		(13	)
Net operating income		194			217			229			166			210
Net loan loss provisions		(36	)		(30	)		(23	)		(20	)		(31	)
Other income		(1	)		(18	)		(29	)		41			12
Profit before taxes (w/o capital gains)		157			169			177			186			190
Tax on profit		(25	)		(24	)		(34	)		(31	)		(31	)
Net profit from ordinary activity		132			145			142			155			160
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		132			145			142			155			160
Minority interests		19			22			19			26			29
Attributable profit to the Group (w/o capital gains)		114			123			123			129			131
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		114			123			123			129			131


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		15,253		14,902		15,223		15,107		15,494
Trading portfolio (w/o loans)		990		1,076		1,426		1,507		1,426
Available-for-sale financial assets		1,210		1,197		1,195		772		711
Due from credit institutions*		4,458		3,656		3,253		3,151		2,678
Intangible assets and property and equipment		318		286		303		319		301
Other assets		1,378		1,828		1,749		2,139		1,500
Total assets/liabilities & shareholders’ equity		23,606		22,945		23,150		22,995		22,110
Customer deposits*		13,261		13,224		13,151		13,216		13,372
Marketable debt securities*		1,603		1,618		1,611		1,536		1,467
Subordinated debt		610		570		728		705		690
Insurance liabilities		47		44		53		58		59
Due to credit institutions*		5,288		5,177		4,376		4,158		3,586
Other liabilities		1,016		916		1,770		2,019		1,520
Shareholders’ equity		1,781		1,397		1,461		1,304		1,416
Other customer funds under management		10,509		9,760		10,602		11,732		12,213
Mutual funds		2,941		2,795		2,991		3,584		3,811
Pension funds		7,568		6,965		7,611		8,148		8,402
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		25,983		25,171		26,092		27,189		27,742

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	2.15	1.90	1.78	1.59	1.70
NPL coverage	165.07	174.22	168.01	152.62	147.57
Risk-weighted assets	14,403	13,232	14,112	13,873	14,876
Spread (Retail Banking)	6.86	7.11	6.97	6.94	7.28
Spread loans	5.07	5.07	4.95	4.91	5.08
Spread deposits	1.79	2.04	2.02	2.03	2.20

Chile

Million dollars


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		281			236			45			19.1
Income from companies accounted for by the equity method		(0	)		0			(1	)		—
Net fees		119			103			16			15.5
Insurance activity		14			10			4			36.4
Commercial revenue		414			350			64			18.3
Gains (losses) on financial transactions		49			50			(1	)		(1.6	)
Gross operating income		463			400			63			15.8
Income from non-financial services (net) and other operating income		(7	)		(3	)		(4	)		122.7
Operating expenses		(181	)		(164	)		(17	)		10.5
General administrative expenses		(165	)		(148	)		(17	)		11.3
Personnel		(99	)		(89	)		(10	)		10.9
Other administrative expenses		(66	)		(59	)		(7	)		11.9
Depreciation and amortisation		(16	)		(16	)		(1	)		3.7
Net operating income		275			233			42			18.2
Net loan loss provisions		(41	)		(43	)		2			(4.6	)
Other income		16			(1	)		16			—
Profit before taxes		250			189			61			32.1
Tax on profit		(40	)		(30	)		(10	)		34.1
Net profit from ordinary activity		210			159			50			31.7
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		210			159			50			31.7
Minority interests		38			22			16			70.4
Attributable profit to the Group		171			137			35			25.3


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		20,634		18,462		2,172			11.8
Trading portfolio (w/o loans)		1,899		1,198		701			58.5
Available-for-sale financial assets		947		1,464		(517	)		(35.3	)
Due from credit institutions*		3,567		5,396		(1,829	)		(33.9	)
Intangible assets and property and equipment		401		385		17			4.3
Other assets		1,998		1,668		329			19.7
Total assets/liabilities & shareholders’ equity		29,446		28,573		873			3.1
Customer deposits*		17,808		16,051		1,757			10.9
Marketable debt securities*		1,954		1,940		14			0.7
Subordinated debt		919		738		180			24.4
Insurance liabilities		79		57		22			38.9
Due to credit institutions*		4,776		6,401		(1,624	)		(25.4	)
Other liabilities		2,024		1,230		794			64.6
Shareholders’ equity		1,886		2,156		(270	)		(12.5	)
Other customer funds under management		16,266		12,720		3,545			27.9
Mutual funds		5,076		3,560		1,516			42.6
Pension funds		11,190		9,160		2,030			22.2
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		36,947		31,450		5,497			17.5

(*) Includes all stock of concept classified in the balance sheet

Chile

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		236			329			325			251			281
Income from companies accounted for by the equity method		0			1			0			0			(0	)
Net fees		103			105			106			110			119
Insurance activity		10			14			11			11			14
Commercial revenue		350			449			442			372			414
Gains (losses) on financial transactions		50			8			33			48			49
Gross operating income		400			457			475			420			463
Income from non-financial services (net) and other operating income		(3	)		(5	)		(3	)		(4	)		(7	)
Operating expenses		(164	)		(181	)		(182	)		(201	)		(181	)
General administrative expenses		(148	)		(157	)		(171	)		(187	)		(165	)
Personnel		(89	)		(100	)		(102	)		(124	)		(99	)
Other administrative expenses		(59	)		(57	)		(68	)		(63	)		(66	)
Depreciation and amortisation		(16	)		(23	)		(11	)		(14	)		(16	)
Net operating income		233			272			290			215			275
Net loan loss provisions		(43	)		(38	)		(30	)		(26	)		(41	)
Other income		(1	)		(22	)		(36	)		51			16
Profit before taxes (w/o capital gains)		189			212			224			239			250
Tax on profit		(30	)		(31	)		(43	)		(40	)		(40	)
Net profit from ordinary activity		159			181			181			199			210
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		159			181			181			199			210
Minority interests		22			27			24			34			38
Attributable profit to the Group (w/o capital gains)		137			154			157			166			171
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		137			154			157			166			171


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		18,462		18,945		19,272		19,896		20,634
Trading portfolio (w/o loans)		1,198		1,368		1,805		1,985		1,899
Available-for-sale financial assets		1,464		1,521		1,513		1,017		947
Due from credit institutions*		5,396		4,648		4,119		4,150		3,567
Intangible assets and property and equipment		385		363		383		420		401
Other assets		1,668		2,324		2,215		2,816		1,998
Total assets/liabilities & shareholders’ equity		28,573		29,170		29,307		30,284		29,446
Customer deposits*		16,051		16,812		16,650		17,406		17,808
Marketable debt securities*		1,940		2,056		2,039		2,023		1,954
Subordinated debt		738		724		922		928		919
Insurance liabilities		57		56		68		76		79
Due to credit institutions*		6,401		6,581		5,539		5,476		4,776
Other liabilities		1,230		1,164		2,241		2,659		2,024
Shareholders’ equity		2,156		1,776		1,849		1,717		1,886
Other customer funds under management		12,720		12,407		13,422		15,451		16,266
Mutual funds		3,560		3,553		3,787		4,720		5,076
Pension funds		9,160		8,854		9,635		10,731		11,190
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		31,450		32,000		33,032		35,808		36,947

(*) Includes all stock of concept classified in the balance sheet

Chile

Million chilean peso


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		152,123			124,389			27,734			22.3
Income from companies accounted for by the equity method		(168	)		236			(404	)		—
Net fees		64,167			54,134			10,033			18.5
Insurance activity		7,371			5,266			2,105			40.0
Commercial revenue		223,493			184,025			39,468			21.4
Gains (losses) on financial transactions		26,587			26,326			261			1.0
Gross operating income		250,080			210,351			39,729			18.9
Income from non-financial services (net) and other operating income		(3,567	)		(1,560	)		(2,007	)		128.6
Operating expenses		(97,905	)		(86,275	)		(11,630	)		13.5
General administrative expenses		(89,031	)		(77,937	)		(11,094	)		14.2
Personnel		(53,366	)		(46,884	)		(6,482	)		13.8
Other administrative expenses		(35,665	)		(31,053	)		(4,612	)		14.9
Depreciation and amortisation		(8,874	)		(8,338	)		(536	)		6.4
Net operating income		148,608			122,515			26,092			21.3
Net loan loss provisions		(22,184	)		(22,664	)		480			(2.1	)
Other income		8,476			(341	)		8,817			—
Profit before taxes		134,899			99,510			35,389			35.6
Tax on profit		(21,660	)		(15,737	)		(5,923	)		37.6
Net profit from ordinary activity		113,238			83,773			29,465			35.2
Net profit from discontinued operations		—			—			—			—
Net consolidated profit		113,238			83,773			29,465			35.2
Minority interests		20,648			11,806			8,842			74.9
Attributable profit to the Group		92,591			71,967			20,623			28.7


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		11,097,171		9,720,491		1,376,680			14.2
Trading portfolio (w/o loans)		1,021,312		630,682		390,631			61.9
Available-for-sale financial assets		509,351		770,924		(261,574	)		(33.9	)
Due from credit institutions*		1,918,147		2,840,775		(922,628	)		(32.5	)
Intangible assets and property and equipment		215,860		202,540		13,320			6.6
Other assets		1,074,337		878,377		195,960			22.3
Total assets/liabilities & shareholders’ equity		15,836,178		15,043,789		792,389			5.3
Customer deposits*		9,577,402		8,450,860		1,126,542			13.3
Marketable debt securities*		1,050,837		1,021,467		29,369			2.9
Subordinated debt		494,009		388,742		105,267			27.1
Insurance liabilities		42,437		29,914		12,523			41.9
Due to credit institutions*		2,568,721		3,369,997		(801,276	)		(23.8	)
Other liabilities		1,088,713		647,682		441,031			68.1
Shareholders’ equity		1,014,060		1,135,127		(121,068	)		(10.7	)
Other customer funds under management		8,747,604		6,697,175		2,050,429			30.6
Mutual funds		2,729,828		1,874,516		855,312			45.6
Pension funds		6,017,776		4,822,659		1,195,117			24.8
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		19,869,852		16,558,245		3,311,607			20.0

(*) Includes all stock of concept classified in the balance sheet

Chile

Million chilean peso


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		124,389			173,433			174,761			132,752			152,123
Income from companies accounted for by the equity method		236			303			160			56			(168	)
Net fees		54,134			55,560			56,851			58,306			64,167
Insurance activity		5,266			7,271			6,047			5,752			7,371
Commercial revenue		184,025			236,566			237,820			196,867			223,493
Gains (losses) on financial transactions		26,326			4,354			17,628			25,380			26,587
Gross operating income		210,351			240,920			255,448			222,247			250,080
Income from non-financial services (net) and other operating income		(1,560	)		(2,387	)		(1,406	)		(2,300	)		(3,567	)
Operating expenses		(86,275	)		(95,318	)		(97,894	)		(106,457	)		(97,905	)
General administrative expenses		(77,937	)		(82,940	)		(91,868	)		(98,919	)		(89,031	)
Personnel		(46,884	)		(52,807	)		(55,114	)		(65,670	)		(53,366	)
Other administrative expenses		(31,053	)		(30,133	)		(36,754	)		(33,249	)		(35,665	)
Depreciation and amortisation		(8,338	)		(12,378	)		(6,026	)		(7,538	)		(8,874	)
Net operating income		122,515			143,214			156,148			113,489			148,608
Net loan loss provisions		(22,664	)		(19,887	)		(16,207	)		(13,922	)		(22,184	)
Other income		(341	)		(11,543	)		(19,240	)		26,853			8,476
Profit before taxes (w/o capital gains)		99,510			111,784			120,701			126,420			134,899
Tax on profit		(15,737	)		(16,105	)		(23,174	)		(21,063	)		(21,660	)
Net profit from ordinary activity		83,773			95,679			97,527			105,357			113,238
Net profit from discontinued operations		—			—			—			—			—
Net consolidated profit (w/o capital gains)		83,773			95,679			97,527			105,357			113,238
Minority interests		11,806			14,274			13,157			17,805			20,648
Attributable profit to the Group (w/o capital gains)		71,967			81,405			84,370			87,552			92,591
Net extraordinary gains and allowances		—			—			—			—			—
Attributable profit to the Group		71,967			81,405			84,370			87,552			92,591


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		9,720,491		10,343,232		10,355,960		10,579,663		11,097,171
Trading portfolio (w/o loans)		630,682		746,980		970,120		1,055,383		1,021,312
Available-for-sale financial assets		770,924		830,622		813,210		540,690		509,351
Due from credit institutions*		2,840,775		2,537,369		2,213,081		2,206,583		1,918,147
Intangible assets and property and equipment		202,540		198,363		206,015		223,516		215,860
Other assets		878,377		1,268,976		1,189,998		1,497,650		1,074,337
Total assets/liabilities & shareholders’ equity		15,043,789		15,925,543		15,748,383		16,103,486		15,836,178
Customer deposits*		8,450,860		9,178,564		8,946,694		9,255,517		9,577,402
Marketable debt securities*		1,021,467		1,122,708		1,095,719		1,075,655		1,050,837
Subordinated debt		388,742		395,314		495,304		493,382		494,009
Insurance liabilities		29,914		30,583		36,334		40,290		42,437
Due to credit institutions*		3,369,997		3,593,070		2,976,601		2,911,909		2,568,721
Other liabilities		647,682		635,728		1,204,101		1,413,852		1,088,713
Shareholders’ equity		1,135,127		969,575		993,630		912,882		1,014,060
Other customer funds under management		6,697,175		6,773,750		7,212,239		8,216,152		8,747,604
Mutual funds		1,874,516		1,939,889		2,034,727		2,509,850		2,729,828
Pension funds		4,822,659		4,833,861		5,177,512		5,706,302		6,017,776
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		16,558,245		17,470,337		17,749,956		19,040,705		19,869,852

(*) Includes all stock of concept classified in the balance sheet

Financial Management and Equity Stakes

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income (w/o dividends)		(394	)		(256	)		(139	)		54.2
Dividends		3			14			(11	)		(75.7	)
Net interest income		(391	)		(241	)		(149	)		61.8
Income from companies accounted for by the equity method		56			126			(70	)		(55.2	)
Net fees		12			(4	)		16			—
Insurance activity		(1	)		0			(1	)		—
Commercial revenue		(323	)		(119	)		(204	)		171.6
Gains (losses) on financial transactions		(132	)		(126	)		(6	)		4.5
Gross operating income		(455	)		(245	)		(210	)		85.6
Income from non-financial services (net) and other operating income		(5	)		(2	)		(3	)		124.3
Operating expenses		(193	)		(165	)		(28	)		17.1
General administrative expenses		(126	)		(111	)		(15	)		13.8
Personnel		(48	)		(58	)		10			(18.0	)
Other administrative expenses		(79	)		(53	)		(26	)		49.1
Depreciation and amortisation		(67	)		(54	)		(13	)		23.9
Net operating income		(653	)		(412	)		(241	)		58.4
Net loan loss provisions		9			(0	)		9			—
Other income		(149	)		(43	)		(107	)		249.0
Profit before taxes		(794	)		(456	)		(338	)		74.2
Tax on profit		304			227			78			34.2
Net profit from ordinary activity		(489	)		(229	)		(261	)		114.0
Net profit from discontinued operations		—			0			(0	)		(100.0	)
Net consolidated profit		(489	)		(229	)		(261	)		114.0
Minority interests		6			38			(32	)		(83.5	)
Attributable profit to the Group		(496	)		(267	)		(229	)		85.8


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Trading portfolio (w/o loans)		1,181		1,256		(74	)		(5.9	)
Available-for-sale financial assets		9,960		42,534		(32,574	)		(76.6	)
Investments		4,839		2,933		1,906			65.0
Goodwill		14,368		14,012		356			2.5
Liquidity lent to the Group		79,294		53,001		26,293			49.6
Capital assigned to Group areas		34,505		29,315		5,190			17.7
Other assets		37,116		29,010		8,106			27.9
Total assets/liabilities & shareholders’ equity		181,263		172,061		9,202			5.3
Customer deposits*		187		617		(431	)		(69.7	)
Marketable debt securities*		82,731		62,202		20,528			33.0
Subordinated debt		19,303		14,612		4,692			32.1
Preferred securities		—		—		—			—
Other liabilities		35,640		56,223		(20,582	)		(36.6	)
Group capital and reserves		43,402		38,407		4,995			13.0
Other customer funds under management		—		—		—			—
Mutual funds		—		—		—			—
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Savings-insurance policies		—		—		—			—
Customer funds under management		102,221		77,432		24,789			32.0

(*) Includes all stock of concept classified in the balance sheet


Resources
Number of employees (direct & indirect)	1,756	1,494	262	17.5

Financial Management and Equity Stakes

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income (w/o dividends)		(256	)		(349	)		(351	)		(314	)		(394	)
Dividends		14			112			16			21			3
Net interest income		(241	)		(237	)		(335	)		(293	)		(391	)
Income from companies accounted for by the equity method		126			107			141			37			56
Net fees		(4	)		(3	)		1			(6	)		12
Insurance activity		0			3			(0	)		(6	)		(1	)
Commercial revenue		(119	)		(131	)		(193	)		(268	)		(323	)
Gains (losses) on financial transactions		(126	)		234			117			189			(132	)
Gross operating income		(245	)		103			(76	)		(79	)		(455	)
Income from non-financial services (net) and other operating income		(2	)		(7	)		(1	)		(22	)		(5	)
Operating expenses		(165	)		(136	)		(145	)		(133	)		(193	)
General administrative expenses		(111	)		(96	)		(80	)		(78	)		(126	)
Personnel		(58	)		(41	)		(50	)		(55	)		(48	)
Other administrative expenses		(53	)		(55	)		(30	)		(23	)		(79	)
Depreciation and amortisation		(54	)		(41	)		(64	)		(55	)		(67	)
Net operating income		(412	)		(40	)		(221	)		(234	)		(653	)
Net loan loss provisions		(0	)		99			(5	)		(3	)		9
Other income		(43	)		51			69			81			(149	)
Profit before taxes (w/o capital gains)		(456	)		111			(157	)		(156	)		(794	)
Tax on profit		227			58			9			187			304
Net profit from ordinary activity		(229	)		168			(148	)		31			(489	)
Net profit from discontinued operations		0			11			80			(2	)		—
Net consolidated profit (w/o capital gains)		(229	)		179			(68	)		29			(489	)
Minority interests		38			36			13			3			6
Attributable profit to the Group (w/o capital gains)		(267	)		144			(81	)		26			(496	)
Net extraordinary gains and allowances		—			—			—			340			—
Attributable profit to the Group		(267	)		144			(81	)		366			(496	)


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Trading portfolio (w/o loans)		1,256		1,071		991		2,029		1,181
Available-for-sale financial assets		42,534		8,079		9,787		7,605		9,960
Investments		2,933		5,234		5,231		4,897		4,839
Goodwill		14,012		13,951		14,176		14,508		14,368
Liquidity lent to the Group		53,001		62,212		68,680		67,138		79,294
Capital assigned to Group areas		29,315		27,595		29,047		29,120		34,505
Other assets		29,010		37,520		34,499		35,539		37,116
Total assets/liabilities & shareholders’ equity		172,061		155,662		162,412		160,836		181,263
Customer deposits*		617		1,084		969		496		187
Marketable debt securities*		62,202		66,296		73,493		78,321		82,731
Subordinated debt		14,612		15,850		16,169		16,247		19,303
Preferred securities		—		—		—		—		—
Other liabilities		56,223		36,569		35,951		30,073		35,640
Group capital and reserves		38,407		35,864		35,831		35,699		43,402
Other customer funds under management		—		—		—		—		—
Mutual funds		—		—		—		—		—
Pension funds		—		—		—		—		—
Managed portfolios		—		—		—		—		—
Savings-insurance policies		—		—		—		—		—
Customer funds under management		77,432		83,229		90,631		95,064		102,221

(*) Includes all stock of concept classified in the balance sheet


Other information
Risk-weighted assets	35,752	41,609	45,730	55,900	54,005

Spain

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,256			1,027			229			22.3
Income from companies accounted for by the equity method		2			2			1			42.9
Net fees		923			688			235			34.1
Insurance activity		32			28			4			13.5
Commercial revenue		2,213			1,744			468			26.8
Gains (losses) on financial transactions		258			211			47			22.5
Gross operating income		2,471			1,955			516			26.4
Income from non-financial services (net) and other operating income		4			10			(6	)		(59.5	)
Operating expenses		(904	)		(837	)		(67	)		8.0
General administrative expenses		(801	)		(740	)		(61	)		8.3
Personnel		(568	)		(528	)		(41	)		7.7
Other administrative expenses		(233	)		(212	)		(21	)		9.8
Depreciation and amortisation		(103	)		(97	)		(5	)		5.6
Net operating income		1,571			1,128			443			39.3
Net loan loss provisions		(108	)		(149	)		42			(27.8	)
Other income		45			34			11			33.2
Profit before taxes		1,508			1,012			496			48.9
Tax on profit		(426	)		(298	)		(128	)		43.0
Net profit from ordinary activity		1,082			715			368			51.4
Net profit from discontinued operations		—			40			(40	)		(100.0	)
Net consolidated profit		1,082			755			327			43.3
Minority interests		22			46			(24	)		(51.8	)
Attributable profit to the Group		1,060			709			351			49.6


					Variation
	31.03.07		31.03.06		Amount			%
Balance sheet
Loans and credits*		212,804		170,661		42,143			24.7
Trading portfolio (w/o loans)		31,489		23,432		8,057			34.4
Available-for-sale financial assets		9,009		11,727		(2,718	)		(23.2	)
Due from credit institutions*		59,358		44,416		14,941			33.6
Intangible assets and property and equipment		3,991		4,003		(12	)		(0.3	)
Other assets		10,390		10,848		(458	)		(4.2	)
Total assets/liabilities & shareholders’ equity		327,040		265,087		61,952			23.4
Customer deposits*		115,017		101,260		13,757			13.6
Marketable debt securities*		32,883		24,184		8,700			36.0
Subordinated debt		1,941		1,616		326			20.2
Insurance liabilities		5,686		3,607		2,080			57.7
Due to credit institutions*		46,158		41,723		4,435			10.6
Other liabilities		109,500		79,412		30,088			37.9
Shareholders’ equity		15,855		13,288		2,567			19.3
Other customer funds under management		100,323		93,929		6,395			6.8
Mutual funds		78,854		77,463		1,391			1.8
Pension funds		9,980		9,047		932			10.3
Managed portfolios		7,913		5,948		1,964			33.0
Savings-insurance policies		3,577		1,470		2,107			143.3
Customer funds under management		250,165		220,988		29,177			13.2

(*) Includes all stock of concept classified in the balance sheet


Ratios (%) and other data
ROE	28.40	21.95	6.45	p.
Efficiency ratio	35.68	41.54	(5.86	p.)
NPL ratio	0.51	0.56	(0.05	p.)
NPL coverage	292.15	322.28	(30.13	p.)
Number of employees (direct & indirect)	34,483	33,599	884		2.6
Number of branches	4,901	4,556	345		7.6

Spain

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,027			1,098			1,151			1,177			1,256
Income from companies accounted for by the equity method		2			0			2			2			2
Net fees		688			716			763			784			923
Insurance activity		28			30			29			31			32
Commercial revenue		1,744			1,844			1,944			1,994			2,213
Gains (losses) on financial transactions		211			82			203			121			258
Gross operating income		1,955			1,926			2,147			2,115			2,471
Income from non-financial services (net) and other operating income		10			(11	)		15			12			4
Operating expenses		(837	)		(849	)		(848	)		(899	)		(904	)
General administrative expenses		(740	)		(747	)		(751	)		(795	)		(801	)
Personnel		(528	)		(536	)		(532	)		(567	)		(568	)
Other administrative expenses		(212	)		(211	)		(220	)		(228	)		(233	)
Depreciation and amortisation		(97	)		(103	)		(97	)		(105	)		(103	)
Net operating income		1,128			1,066			1,315			1,227			1,571
Net loan loss provisions		(149	)		(290	)		(301	)		(172	)		(108	)
Other income		34			80			(53	)		(38	)		45
Profit before taxes (w/o capital gains)		1,012			856			961			1,016			1,508
Tax on profit		(298	)		(244	)		(287	)		(284	)		(426	)
Net profit from ordinary activity		715			612			673			733			1,082
Net profit from discontinued operations		40			45			31			26			—
Net consolidated profit (w/o capital gains)		755			657			704			759			1,082
Minority interests		46			58			29			42			22
Attributable profit to the Group (w/o capital gains)		709			599			675			718			1,060
Net extraordinary gains and allowances		—			—			—			674			—
Attributable profit to the Group		709			599			675			1,391			1,060


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Balance sheet
Loans and credits*		170,661		183,799		196,727		207,781		212,804
Trading portfolio (w/o loans)		23,432		30,448		29,123		32,919		31,489
Available-for-sale financial assets		11,727		12,047		12,718		12,033		9,009
Due from credit institutions*		44,416		45,473		49,601		52,555		59,358
Intangible assets and property and equipment		4,003		4,328		4,589		3,880		3,991
Other assets		10,848		11,209		13,187		13,021		10,390
Total assets/liabilities & shareholders’ equity		265,087		287,304		305,947		322,188		327,040
Customer deposits*		101,260		103,024		111,747		115,537		115,017
Marketable debt securities*		24,184		26,243		28,630		31,161		32,883
Subordinated debt		1,616		1,602		2,124		1,913		1,941
Insurance liabilities		3,607		3,658		4,069		4,788		5,686
Due to credit institutions*		41,723		46,423		48,149		54,682		46,158
Other liabilities		79,412		92,871		97,406		100,061		109,500
Shareholders’ equity		13,288		13,484		13,822		14,046		15,855
Other customer funds under management		93,929		93,680		96,297		97,496		100,323
Mutual funds		77,463		76,677		78,253		77,526		78,854
Pension funds		9,047		8,887		9,201		9,950		9,980
Managed portfolios		5,948		6,460		6,864		7,125		7,913
Savings-insurance policies		1,470		1,655		1,979		2,895		3,577
Customer funds under management		220,988		224,548		238,798		246,107		250,165

(*) Includes all stock of concept classified in the balance sheet


Other information
NPL ratio	0.56	0.54	0.55	0.53	0.51
NPL coverage	322.28	330.79	325.24	328.37	292.15

Retail Banking

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		3,562			2,881			681			23.6
Income from companies accounted for by the equity method		4			5			(1	)		(16.9	)
Net fees		1,597			1,429			168			11.7
Insurance activity		0			(0	)		0			—
Commercial revenue		5,163			4,315			848			19.6
Gains (losses) on financial transactions		337			285			52			18.1
Gross operating income		5,499			4,600			899			19.6
Income from non-financial services (net) and other operating income		(6	)		13			(19	)		—
Operating expenses		(2,455	)		(2,309	)		(146	)		6.3
General administrative expenses		(2,241	)		(2,104	)		(137	)		6.5
Personnel		(1,339	)		(1,273	)		(65	)		5.1
Other administrative expenses		(903	)		(830	)		(72	)		8.7
Depreciation and amortisation		(214	)		(205	)		(9	)		4.2
Net operating income		3,038			2,304			734			31.9
Net loan loss provisions		(723	)		(453	)		(270	)		59.4
Other income		19			(16	)		34			—
Profit before taxes		2,334			1,835			499			27.2


					Variation
	31.03.07		31.03.06		Amount		%
Business volumes
Total assets		674,358		635,750		38,608		6.1
Loans and credits		484,443		416,371		68,072		16.3
Customer deposits		284,807		257,117		27,690		10.8

Retail Banking

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		2,881			3,014			3,144			3,271			3,562
Income from companies accounted for by the equity method		5			4			3			4			4
Net fees		1,429			1,468			1,499			1,571			1,597
Insurance activity		(0	)		0			0			0			0
Commercial revenue		4,315			4,485			4,647			4,846			5,163
Gains (losses) on financial transactions		285			272			242			242			337
Gross operating income		4,600			4,757			4,889			5,088			5,499
Income from non-financial services (net) and other operating income		13			(12	)		14			(20	)		(6	)
Operating expenses		(2,309	)		(2,309	)		(2,368	)		(2,483	)		(2,455	)
General administrative expenses		(2,104	)		(2,094	)		(2,165	)		(2,258	)		(2,241	)
Personnel		(1,273	)		(1,279	)		(1,286	)		(1,329	)		(1,339	)
Other administrative expenses		(830	)		(815	)		(880	)		(929	)		(903	)
Depreciation and amortisation		(205	)		(215	)		(202	)		(225	)		(214	)
Net operating income		2,304			2,437			2,535			2,585			3,038
Net loan loss provisions		(453	)		(634	)		(550	)		(614	)		(723	)
Other income		(16	)		(62	)		(67	)		(82	)		19
Profit before taxes (ordinary)		1,835			1,741			1,918			1,889			2,334


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Business volumes
Total assets		635,750		665,031		647,196		668,960		674,358
Loans and credits		416,371		439,652		451,730		474,253		484,443
Customer deposits		257,117		261,454		277,366		288,532		284,807

Retail Banking Continental Europe

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,703			1,335			368			27.5
Income from companies accounted for by the equity method		2			2			1			42.9
Net fees		804			702			102			14.6
Insurance activity		—			—			—			—
Commercial revenue		2,509			2,039			471			23.1
Gains (losses) on financial transactions		128			129			(1	)		(0.9	)
Gross operating income		2,637			2,168			470			21.7
Income from non-financial services (net) and other operating income		10			13			(3	)		(23.3	)
Operating expenses		(1,051	)		(964	)		(87	)		9.0
General administrative expenses		(932	)		(849	)		(83	)		9.8
Personnel		(636	)		(590	)		(46	)		7.8
Other administrative expenses		(297	)		(260	)		(37	)		14.2
Depreciation and amortisation		(119	)		(115	)		(4	)		3.7
Net operating income		1,596			1,217			379			31.2
Net loan loss provisions		(314	)		(203	)		(112	)		55.0
Other income		(3	)		(9	)		6			(70.1	)
Profit before taxes		1,279			1,005			274			27.2

Retail Banking Continental Europe

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,335			1,407			1,446			1,510			1,703
Income from companies accounted for by the equity method		2			0			2			2			2
Net fees		702			742			768			789			804
Insurance activity		—			—			—			—			—
Commercial revenue		2,039			2,149			2,216			2,301			2,509
Gains (losses) on financial transactions		129			113			72			119			128
Gross operating income		2,168			2,262			2,288			2,420			2,637
Income from non-financial services (net) and other operating income		13			(7	)		17			18			10
Operating expenses		(964	)		(984	)		(984	)		(1,035	)		(1,051	)
General administrative expenses		(849	)		(862	)		(864	)		(910	)		(932	)
Personnel		(590	)		(597	)		(597	)		(616	)		(636	)
Other administrative expenses		(260	)		(265	)		(267	)		(294	)		(297	)
Depreciation and amortisation		(115	)		(122	)		(120	)		(125	)		(119	)
Net operating income		1,217			1,271			1,322			1,403			1,596
Net loan loss provisions		(203	)		(318	)		(248	)		(231	)		(314	)
Other income		(9	)		52			(8	)		(23	)		(3	)
Profit before taxes (w/o capital gains)		1,005			1,005			1,066			1,148			1,279

Retail Banking Spain

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		939			992			1,018			1,078			1,120
Income from companies accounted for by the equity method		2			0			2			2			2
Net fees		553			593			616			641			643
Insurance activity		—			—			—			—			—
Commercial revenue		1,494			1,586			1,636			1,720			1,765
Gains (losses) on financial transactions		115			106			71			82			120
Gross operating income		1,609			1,692			1,707			1,802			1,886
Income from non-financial services (net) and other operating income		11			(10	)		16			12			5
Operating expenses		(737	)		(748	)		(745	)		(762	)		(778	)
General administrative expenses		(648	)		(655	)		(654	)		(672	)		(689	)
Personnel		(473	)		(480	)		(475	)		(485	)		(499	)
Other administrative expenses		(175	)		(175	)		(179	)		(187	)		(190	)
Depreciation and amortisation		(89	)		(94	)		(92	)		(90	)		(89	)
Net operating income		883			934			977			1,052			1,113
Net loan loss provisions		(138	)		(231	)		(158	)		(149	)		(148	)
Other income		(2	)		59			(16	)		0			7
Profit before taxes (w/o capital gains)		743			762			802			904			971

Retail Banking Portugal

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		155			163			161			158			174
Income from companies accounted for by the equity method		—			—			—			—			—
Net fees		81			77			76			76			78
Insurance activity		—			—			—			—			—
Commercial revenue		236			240			237			234			253
Gains (losses) on financial transactions		9			(3	)		1			21			9
Gross operating income		245			237			237			255			262
Income from non-financial services (net) and other operating income		(3	)		(3	)		(3	)		(2	)		(2	)
Operating expenses		(113	)		(118	)		(118	)		(138	)		(123	)
General administrative expenses		(99	)		(103	)		(102	)		(121	)		(107	)
Personnel		(66	)		(67	)		(67	)		(75	)		(70	)
Other administrative expenses		(32	)		(36	)		(35	)		(46	)		(37	)
Depreciation and amortisation		(15	)		(15	)		(15	)		(17	)		(16	)
Net operating income		129			116			117			116			136
Net loan loss provisions		3			(22	)		(19	)		(3	)		6
Other income		(5	)		(4	)		10			(10	)		(11	)
Profit before taxes (w/o capital gains)		127			90			108			102			131
Other information
Spread		2.85			2.84			2.80			2.79			2.73
Spread loans		1.66			1.63			1.56			1.53			1.46
Spread deposits		1.19			1.21			1.24			1.26			1.27

Retail Banking United Kingdom (Abbey)

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		507			521			531			538			572
Income from companies accounted for by the equity method		1			1			1			0			0
Net fees		246			248			252			249			251
Insurance activity		(0	)		0			0			0			0
Commercial revenue		754			769			784			787			823
Gains (losses) on financial transactions		108			75			117			124			131
Gross operating income		862			844			901			911			954
Income from non-financial services (net) and other operating income		16			14			11			1			14
Operating expenses		(493	)		(472	)		(485	)		(490	)		(492	)
General administrative expenses		(466	)		(445	)		(462	)		(462	)		(467	)
Personnel		(268	)		(260	)		(260	)		(259	)		(261	)
Other administrative expenses		(198	)		(185	)		(203	)		(202	)		(206	)
Depreciation and amortisation		(27	)		(27	)		(23	)		(28	)		(25	)
Net operating income		385			386			427			423			476
Net loan loss provisions		(88	)		(115	)		(103	)		(80	)		(81	)
Other income		(1	)		(1	)		1			(0	)		5
Profit before taxes (w/o capital gains)		295			270			325			343			400
Other information
Spread		1.81			1.84			1.84			1.89			1.97
Spread loans		0.72			0.73			0.70			0.69			0.69
Spread deposits		1.09			1.11			1.14			1.20			1.28

Retail Banking United Kingdom (Abbey)

Million pound sterling


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		348			358			361			362			383
Income from companies accounted for by the equity method		1			1			0			0			0
Net fees		169			170			172			168			169
Insurance activity		(0	)		0			0			0			0
Commercial revenue		517			529			533			530			552
Gains (losses) on financial transactions		74			51			80			84			88
Gross operating income		591			581			613			614			640
Income from non-financial services (net) and other operating income		11			10			7			1			9
Operating expenses		(338	)		(325	)		(330	)		(330	)		(330	)
General administrative expenses		(320	)		(306	)		(314	)		(311	)		(313	)
Personnel		(184	)		(179	)		(177	)		(175	)		(175	)
Other administrative expenses		(136	)		(127	)		(138	)		(136	)		(138	)
Depreciation and amortisation		(18	)		(19	)		(16	)		(19	)		(17	)
Net operating income		264			266			290			285			319
Net loan loss provisions		(61	)		(79	)		(70	)		(54	)		(55	)
Other income		(1	)		(1	)		1			(0	)		3
Profit before taxes (w/o capital gains)		203			185			221			231			268

Retail Banking Latin America

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,288			1,039			248			23.9
Income from companies accounted for by the equity method		1			2			(1	)		(33.4	)
Net fees		541			481			61			12.6
Insurance activity		—			—			—			—
Commercial revenue		1,830			1,522			308			20.3
Gains (losses) on financial transactions		77			48			29			60.3
Gross operating income		1,907			1,570			337			21.5
Income from non-financial services (net) and other operating income		(30	)		(16	)		(14	)		90.2
Operating expenses		(911	)		(852	)		(59	)		7.0
General administrative expenses		(842	)		(789	)		(53	)		6.8
Personnel		(442	)		(415	)		(26	)		6.3
Other administrative expenses		(400	)		(373	)		(27	)		7.3
Depreciation and amortisation		(69	)		(63	)		(6	)		9.5
Net operating income		966			703			264			37.5
Net loan loss provisions		(327	)		(162	)		(165	)		101.7
Other income		16			(6	)		22			—
Profit before taxes		655			534			121			22.6

Retail Banking Latin America

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,039			1,086			1,167			1,223			1,288
Income from companies accounted for by the equity method		2			2			1			2			1
Net fees		481			479			478			533			541
Insurance activity		—			—			—			—			—
Commercial revenue		1,522			1,568			1,646			1,758			1,830
Gains (losses) on financial transactions		48			84			53			(1	)		77
Gross operating income		1,570			1,652			1,699			1,757			1,907
Income from non-financial services (net) and other operating income		(16	)		(19	)		(13	)		(39	)		(30	)
Operating expenses		(852	)		(852	)		(899	)		(959	)		(911	)
General administrative expenses		(789	)		(786	)		(839	)		(887	)		(842	)
Personnel		(415	)		(422	)		(429	)		(454	)		(442	)
Other administrative expenses		(373	)		(365	)		(410	)		(433	)		(400	)
Depreciation and amortisation		(63	)		(66	)		(60	)		(72	)		(69	)
Net operating income		703			781			787			759			966
Net loan loss provisions		(162	)		(200	)		(198	)		(303	)		(327	)
Other income		(6	)		(114	)		(61	)		(58	)		16
Profit before taxes (w/o capital gains)		534			466			528			398			655

Retail Banking Latin America

Million dollars


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,687			1,249			439			35.1
Income from companies accounted for by the equity method		2			3			(1	)		(27.4	)
Net fees		709			578			132			22.8
Insurance activity		—			—			—			—
Commercial revenue		2,399			1,829			569			31.1
Gains (losses) on financial transactions		101			58			43			74.8
Gross operating income		2,500			1,887			613			32.5
Income from non-financial services (net) and other operating income		(40	)		(19	)		(20	)		107.4
Operating expenses		(1,194	)		(1,024	)		(170	)		16.6
General administrative expenses		(1,103	)		(948	)		(156	)		16.4
Personnel		(579	)		(499	)		(80	)		15.9
Other administrative expenses		(525	)		(448	)		(76	)		17.0
Depreciation and amortisation		(91	)		(76	)		(15	)		19.4
Net operating income		1,266			844			422			50.0
Net loan loss provisions		(429	)		(195	)		(234	)		119.9
Other income		21			(7	)		28			—
Profit before taxes		858			642			216			33.7

Retail Banking Latin America

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,249			1,362			1,482			1,567			1,687
Income from companies accounted for by the equity method		3			3			1			2			2
Net fees		578			601			609			683			709
Insurance activity		—			—			—			—			—
Commercial revenue		1,829			1,966			2,092			2,253			2,399
Gains (losses) on financial transactions		58			105			68			1			101
Gross operating income		1,887			2,070			2,160			2,254			2,500
Income from non-financial services (net) and other operating income		(19	)		(24	)		(17	)		(50	)		(40	)
Operating expenses		(1,024	)		(1,069	)		(1,143	)		(1,229	)		(1,194	)
General administrative expenses		(948	)		(987	)		(1,066	)		(1,137	)		(1,103	)
Personnel		(499	)		(529	)		(546	)		(582	)		(579	)
Other administrative expenses		(448	)		(458	)		(521	)		(554	)		(525	)
Depreciation and amortisation		(76	)		(83	)		(76	)		(92	)		(91	)
Net operating income		844			977			1,000			975			1,266
Net loan loss provisions		(195	)		(250	)		(251	)		(386	)		(429	)
Other income		(7	)		(140	)		(78	)		(75	)		21
Profit before taxes (w/o capital gains)		642			587			671			514			858

Retail Banking Brazil

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		383			368			372			417			463
Income from companies accounted for by the equity method		1			0			(0	)		0			0
Net fees		199			201			204			235			231
Insurance activity		—			—			—			—			—
Commercial revenue		583			570			575			652			694
Gains (losses) on financial transactions		26			78			71			(13	)		19
Gross operating income		609			648			646			639			713
Income from non-financial services (net) and other operating income		5			6			9			(20	)		(2	)
Operating expenses		(356	)		(352	)		(367	)		(376	)		(374	)
General administrative expenses		(333	)		(330	)		(345	)		(348	)		(347	)
Personnel		(170	)		(168	)		(165	)		(174	)		(169	)
Other administrative expenses		(163	)		(162	)		(179	)		(174	)		(178	)
Depreciation and amortisation		(23	)		(22	)		(22	)		(28	)		(27	)
Net operating income		258			302			288			243			338
Net loan loss provisions		(99	)		(122	)		(97	)		(149	)		(173	)
Other income		1			(65	)		(47	)		(93	)		(2	)
Profit before taxes (w/o capital gains)		160			115			145			1			163
Other information
Spread		21.72			21.25			20.08			18.87			19.25
Spread loans		19.19			19.20			18.18			17.20			17.63
Spread deposits		2.53			2.05			1.90			1.67			1.62

Retail Banking Brazil

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		461			463			473			535			607
Income from companies accounted for by the equity method		1			1			(0	)		0			0
Net fees		239			252			259			301			303
Insurance activity		—			—			—			—			—
Commercial revenue		701			715			732			836			910
Gains (losses) on financial transactions		32			97			90			(15	)		24
Gross operating income		732			812			822			821			935
Income from non-financial services (net) and other operating income		5			7			11			(25	)		(2	)
Operating expenses		(428	)		(442	)		(466	)		(482	)		(490	)
General administrative expenses		(400	)		(414	)		(438	)		(446	)		(454	)
Personnel		(204	)		(211	)		(211	)		(223	)		(221	)
Other administrative expenses		(195	)		(203	)		(228	)		(224	)		(233	)
Depreciation and amortisation		(28	)		(28	)		(28	)		(35	)		(35	)
Net operating income		310			377			367			314			443
Net loan loss provisions		(119	)		(153	)		(123	)		(190	)		(227	)
Other income		1			(79	)		(59	)		(118	)		(3	)
Profit before taxes (w/o capital gains)		193			145			184			6			213

Retail Banking Brazil

Million brazilian real


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		1,279			1,010			270			26.7
Income from companies accounted for by the equity method		1			2			(1	)		(57.9	)
Net fees		638			525			113			21.5
Insurance activity		—			—			—			—
Commercial revenue		1,918			1,536			381			24.8
Gains (losses) on financial transactions		52			69			(18	)		(25.6	)
Gross operating income		1,969			1,606			364			22.6
Income from non-financial services (net) and other operating income		(4	)		12			(16	)		—
Operating expenses		(1,032	)		(938	)		(94	)		10.0
General administrative expenses		(957	)		(876	)		(81	)		9.2
Personnel		(466	)		(448	)		(18	)		3.9
Other administrative expenses		(492	)		(428	)		(63	)		14.8
Depreciation and amortisation		(74	)		(61	)		(13	)		21.2
Net operating income		933			680			253			37.3
Net loan loss provisions		(477	)		(260	)		(217	)		83.6
Other income		(6	)		3			(9	)		—
Profit before taxes		450			423			27			6.4

Retail Banking Brazil

Million brazilian real


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		1,010			1,012			1,027			1,153			1,279
Income from companies accounted for by the equity method		2			1			(0	)		1			1
Net fees		525			551			562			648			638
Insurance activity		—			—			—			—			—
Commercial revenue		1,536			1,564			1,589			1,802			1,918
Gains (losses) on financial transactions		69			212			195			(34	)		52
Gross operating income		1,606			1,776			1,784			1,768			1,969
Income from non-financial services (net) and other operating income		12			16			24			(55	)		(4	)
Operating expenses		(938	)		(967	)		(1,012	)		(1,039	)		(1,032	)
General administrative expenses		(876	)		(905	)		(952	)		(962	)		(957	)
Personnel		(448	)		(461	)		(457	)		(480	)		(466	)
Other administrative expenses		(428	)		(444	)		(495	)		(482	)		(492	)
Depreciation and amortisation		(61	)		(61	)		(60	)		(76	)		(74	)
Net operating income		680			826			796			675			933
Net loan loss provisions		(260	)		(335	)		(267	)		(411	)		(477	)
Other income		3			(174	)		(129	)		(255	)		(6	)
Profit before taxes (w/o capital gains)		423			317			400			9			450

Retail Banking Mexico

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		280			275			341			377			374
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		103			95			91			105			107
Insurance activity		—			—			—			—			—
Commercial revenue		382			370			432			482			481
Gains (losses) on financial transactions		8			13			(7	)		1			33
Gross operating income		390			383			425			483			514
Income from non-financial services (net) and other operating income		(11	)		(15	)		(12	)		(13	)		(15	)
Operating expenses		(198	)		(184	)		(210	)		(234	)		(200	)
General administrative expenses		(183	)		(171	)		(194	)		(216	)		(183	)
Personnel		(91	)		(84	)		(89	)		(92	)		(93	)
Other administrative expenses		(92	)		(87	)		(105	)		(124	)		(90	)
Depreciation and amortisation		(15	)		(14	)		(16	)		(18	)		(17	)
Net operating income		181			183			203			237			299
Net loan loss provisions		(26	)		(36	)		(44	)		(91	)		(92	)
Other income		(14	)		(1	)		(5	)		21			(2	)
Profit before taxes (w/o capital gains)		141			146			154			167			205
Other information
Spread		11.62			12.21			13.64			14.20			14.39
Spread loans		8.13			9.05			10.34			10.72			10.84
Spread deposits		3.49			3.16			3.30			3.48			3.55

Retail Banking Mexico

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		336			345			432			481			490
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		123			119			116			135			140
Insurance activity		—			—			—			—			—
Commercial revenue		459			464			548			616			630
Gains (losses) on financial transactions		10			16			(8	)		2			44
Gross operating income		469			480			539			618			673
Income from non-financial services (net) and other operating income		(13	)		(18	)		(15	)		(16	)		(19	)
Operating expenses		(238	)		(232	)		(266	)		(299	)		(262	)
General administrative expenses		(220	)		(214	)		(246	)		(277	)		(240	)
Personnel		(109	)		(106	)		(113	)		(118	)		(121	)
Other administrative expenses		(111	)		(109	)		(133	)		(158	)		(118	)
Depreciation and amortisation		(18	)		(17	)		(20	)		(23	)		(22	)
Net operating income		218			230			258			303			393
Net loan loss provisions		(32	)		(45	)		(56	)		(115	)		(121	)
Other income		(17	)		(2	)		(6	)		26			(3	)
Profit before taxes (w/o capital gains)		169			183			196			214			269

Retail Banking Mexico

Million new mexican peso


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		5,395			3,562			1,833			51.5
Income from companies accounted for by the equity method		0			—			0			—
Net fees		1,545			1,306			238			18.3
Insurance activity		—			—			—			—
Commercial revenue		6,940			4,868			2,072			42.6
Gains (losses) on financial transactions		479			104			375			359.0
Gross operating income		7,419			4,972			2,447			49.2
Income from non-financial services (net) and other operating income		(214	)		(142	)		(72	)		51.0
Operating expenses		(2,881	)		(2,519	)		(362	)		14.4
General administrative expenses		(2,639	)		(2,332	)		(306	)		13.1
Personnel		(1,336	)		(1,155	)		(181	)		15.7
Other administrative expenses		(1,303	)		(1,177	)		(125	)		10.7
Depreciation and amortisation		(242	)		(187	)		(55	)		29.6
Net operating income		4,324			2,311			2,013			87.1
Net loan loss provisions		(1,328	)		(338	)		(990	)		293.4
Other income		(35	)		(181	)		146			(80.6	)
Profit before taxes		2,961			1,792			1,169			65.2

Retail Banking Mexico

Million new mexican peso


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		3,562			3,841			4,717			5,244			5,395
Income from companies accounted for by the equity method		—			—			—			(0	)		0
Net fees		1,306			1,328			1,274			1,470			1,545
Insurance activity		—			—			—			—			—
Commercial revenue		4,868			5,169			5,991			6,715			6,940
Gains (losses) on financial transactions		104			178			(92	)		21			479
Gross operating income		4,972			5,348			5,899			6,735			7,419
Income from non-financial services (net) and other operating income		(142	)		(204	)		(166	)		(176	)		(214	)
Operating expenses		(2,519	)		(2,584	)		(2,913	)		(3,262	)		(2,881	)
General administrative expenses		(2,332	)		(2,391	)		(2,689	)		(3,013	)		(2,639	)
Personnel		(1,155	)		(1,179	)		(1,239	)		(1,287	)		(1,336	)
Other administrative expenses		(1,177	)		(1,212	)		(1,450	)		(1,726	)		(1,303	)
Depreciation and amortisation		(187	)		(192	)		(224	)		(249	)		(242	)
Net operating income		2,311			2,560			2,820			3,298			4,324
Net loan loss provisions		(338	)		(501	)		(607	)		(1,248	)		(1,328	)
Other income		(181	)		(24	)		(68	)		280			(35	)
Profit before taxes (w/o capital gains)		1,792			2,035			2,145			2,330			2,961

Retail Banking Chile

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		186			231			236			188			202
Income from companies accounted for by the equity method		0			0			0			0			(0	)
Net fees		60			60			60			60			62
Insurance activity		—			—			—			—			—
Commercial revenue		246			292			296			248			265
Gains (losses) on financial transactions		10			(12	)		(12	)		11			23
Gross operating income		256			279			284			259			288
Income from non-financial services (net) and other operating income		(3	)		(4	)		(2	)		(3	)		(5	)
Operating expenses		(114	)		(123	)		(123	)		(134	)		(118	)
General administrative expenses		(102	)		(105	)		(115	)		(125	)		(107	)
Personnel		(61	)		(69	)		(70	)		(85	)		(65	)
Other administrative expenses		(41	)		(37	)		(46	)		(40	)		(41	)
Depreciation and amortisation		(12	)		(18	)		(7	)		(9	)		(11	)
Net operating income		140			153			160			122			165
Net loan loss provisions		(28	)		(34	)		(26	)		(24	)		(32	)
Other income		(2	)		(18	)		(29	)		40			12
Profit before taxes (w/o capital gains)		110			101			105			138			145
Other information
Spread		6.86			7.11			6.97			6.94			7.28
Spread loans		5.07			5.07			4.95			4.91			5.08
Spread deposits		1.79			2.04			2.02			2.03			2.20

Retail Banking Chile

Million dollars


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		223			289			300			242			265
Income from companies accounted for by the equity method		0			1			0			0			(0	)
Net fees		73			75			76			77			82
Insurance activity		—			—			—			—			—
Commercial revenue		296			365			376			320			347
Gains (losses) on financial transactions		12			(15	)		(15	)		14			31
Gross operating income		308			350			362			334			377
Income from non-financial services (net) and other operating income		(3	)		(4	)		(3	)		(4	)		(6	)
Operating expenses		(137	)		(154	)		(156	)		(171	)		(154	)
General administrative expenses		(123	)		(132	)		(147	)		(160	)		(140	)
Personnel		(73	)		(86	)		(89	)		(109	)		(86	)
Other administrative expenses		(49	)		(46	)		(58	)		(51	)		(54	)
Depreciation and amortisation		(14	)		(22	)		(10	)		(11	)		(15	)
Net operating income		168			191			203			158			217
Net loan loss provisions		(34	)		(43	)		(33	)		(31	)		(41	)
Other income		(2	)		(22	)		(36	)		50			15
Profit before taxes (w/o capital gains)		132			127			133			177			190

Retail Banking Chile

Million chilean peso


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		143,353			117,431			25,923			22.1
Income from companies accounted for by the equity method		(168	)		236			(404	)		—
Net fees		44,236			38,227			6,009			15.7
Insurance activity		—			—			—			—
Commercial revenue		187,422			155,894			31,528			20.2
Gains (losses) on financial transactions		16,536			6,277			10,258			163.4
Gross operating income		203,958			162,171			41,787			25.8
Income from non-financial services (net) and other operating income		(3,456	)		(1,590	)		(1,866	)		117.4
Operating expenses		(83,450	)		(72,230	)		(11,220	)		15.5
General administrative expenses		(75,475	)		(64,619	)		(10,856	)		16.8
Personnel		(46,211	)		(38,647	)		(7,564	)		19.6
Other administrative expenses		(29,264	)		(25,972	)		(3,292	)		12.7
Depreciation and amortisation		(7,975	)		(7,611	)		(364	)		4.8
Net operating income		117,051			88,351			28,700			32.5
Net loan loss provisions		(22,413	)		(17,906	)		(4,507	)		25.2
Other income		8,182			(1,104	)		9,286			—
Profit before taxes		102,820			69,340			33,479			48.3

Retail Banking Chile

Million chilean peso


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		117,431			152,198			161,148			127,973			143,353
Income from companies accounted for by the equity method		236			303			160			56			(168	)
Net fees		38,227			39,794			41,136			40,955			44,236
Insurance activity		—			—			—			—			—
Commercial revenue		155,894			192,295			202,445			168,984			187,422
Gains (losses) on financial transactions		6,277			(7,810	)		(7,874	)		7,499			16,536
Gross operating income		162,171			184,485			194,571			176,482			203,958
Income from non-financial services (net) and other operating income		(1,590	)		(2,366	)		(1,382	)		(2,245	)		(3,456	)
Operating expenses		(72,230	)		(81,170	)		(84,074	)		(90,722	)		(83,450	)
General administrative expenses		(64,619	)		(69,538	)		(78,807	)		(84,661	)		(75,475	)
Personnel		(38,647	)		(45,293	)		(47,782	)		(57,519	)		(46,211	)
Other administrative expenses		(25,972	)		(24,245	)		(31,025	)		(27,142	)		(29,264	)
Depreciation and amortisation		(7,611	)		(11,632	)		(5,267	)		(6,062	)		(7,975	)
Net operating income		88,351			100,949			109,115			83,515			117,051
Net loan loss provisions		(17,906	)		(22,545	)		(17,971	)		(16,512	)		(22,413	)
Other income		(1,104	)		(11,559	)		(19,377	)		26,507			8,182
Profit before taxes (w/o capital gains)		69,340			66,845			71,767			93,509			102,820

Global Wholesale Banking

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		325			284			41			14.6
Income from companies accounted for by the equity method		—			—			—			—
Net fees		325			156			169			108.3
Insurance activity		—			—			—			—
Commercial revenue		650			440			210			47.8
Gains (losses) on financial transactions		281			237			44			18.6
Gross operating income		931			677			254			37.6
Income from non-financial services (net) and other operating income		(7	)		(9	)		2			(20.6	)
Operating expenses		(207	)		(187	)		(20	)		10.9
General administrative expenses		(186	)		(169	)		(17	)		10.0
Personnel		(116	)		(106	)		(10	)		9.8
Other administrative expenses		(70	)		(63	)		(7	)		10.3
Depreciation and amortisation		(21	)		(17	)		(3	)		20.1
Net operating income		717			482			236			48.9
Net loan loss provisions		44			(47	)		91			—
Other income		34			37			(4	)		(10.0	)
Profit before taxes		795			472			323			68.5

							Variation
	31.03.07			31.03.06			Amount			%
Business volumes
Total assets		154,173			142,395			11,778			8.3
Loans and credits		45,508			34,161			11,346			33.2
Customer deposits		42,117			46,520			(4,403	)		(9.5	)

Global Wholesale Banking

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		284			320			358			279			325
Income from companies accounted for by the equity method		—			—			—			—			—
Net fees		156			143			196			151			325
Insurance activity		—			—			—			—			—
Commercial revenue		440			463			554			430			650
Gains (losses) on financial transactions		237			5			256			191			281
Gross operating income		677			468			810			622			931
Income from non-financial services (net) and other operating income		(9	)		(8	)		(8	)		(9	)		(7	)
Operating expenses		(187	)		(178	)		(187	)		(215	)		(207	)
General administrative expenses		(169	)		(161	)		(172	)		(196	)		(186	)
Personnel		(106	)		(102	)		(107	)		(132	)		(116	)
Other administrative expenses		(63	)		(60	)		(64	)		(65	)		(70	)
Depreciation and amortisation		(17	)		(16	)		(16	)		(19	)		(21	)
Net operating income		482			282			615			398			717
Net loan loss provisions		(47	)		(65	)		(137	)		(58	)		44
Other income		37			16			(44	)		(53	)		34
Profit before taxes (w/o capital gains)		472			233			433			286			795

	31.03.06			30.06.06			30.09.06			31.12.06			31.03.07
Business volumes
Total assets		142,395			140,837			146,675			153,005			154,173
Loans and credits		34,161			36,087			44,510			47,948			45,508
Customer deposits		46,520			43,242			47,188			42,194			42,117

Asset Management and Insurance

Million euros


							Variation
	Q1 ’07			Q1 ’06			Amount			%
Income statement
Net interest income		12			9			3			35.1
Income from companies accounted for by the equity method		—			—			—			—
Net fees		154			156			(3	)		(1.7	)
Insurance activity		96			66			30			45.0
Commercial revenue		262			231			30			13.0
Gains (losses) on financial transactions		6			12			(6	)		(51.3	)
Gross operating income		268			244			24			9.8
Income from non-financial services (net) and other operating income		(0	)		(0	)		0			(91.7	)
Operating expenses		(95	)		(84	)		(11	)		13.6
General administrative expenses		(88	)		(80	)		(9	)		11.0
Personnel		(48	)		(45	)		(2	)		5.3
Other administrative expenses		(41	)		(34	)		(6	)		18.6
Depreciation and amortisation		(7	)		(4	)		(3	)		59.2
Net operating income		172			159			13			8.0
Net loan loss provisions		(0	)		0			(0	)		—
Other income		(5	)		(2	)		(4	)		204.4
Profit before taxes		167			158			9			5.7

							Variation
	31.03.07			31.03.06			Amount			%
Business volumes
Total assets		17,796			9,835			7,961			80.9
Loans and credits		142			162			(19	)		(12.0	)
Customer deposits		0			1			(1	)		(99.3	)

Asset Management and Insurance

Million euros


	Q1 ’06			Q2 ’06			Q3 ’06			Q4 ’06			Q1 ’07
Income statement
Net interest income		9			11			11			12			12
Income from companies accounted for by the equity method		—			—			—			—			—
Net fees		156			149			152			165			154
Insurance activity		66			79			72			85			96
Commercial revenue		231			239			234			262			262
Gains (losses) on financial transactions		12			(3	)		10			15			6
Gross operating income		244			236			245			277			268
Income from non-financial services (net) and other operating income		(0	)		0			0			(1	)		(0	)
Operating expenses		(84	)		(83	)		(85	)		(109	)		(95	)
General administrative expenses		(80	)		(79	)		(83	)		(99	)		(88	)
Personnel		(45	)		(45	)		(45	)		(51	)		(48	)
Other administrative expenses		(34	)		(34	)		(39	)		(48	)		(41	)
Depreciation and amortisation		(4	)		(4	)		(2	)		(10	)		(7	)
Net operating income		159			153			159			166			172
Net loan loss provisions		0			(0	)		0			0			(0	)
Other income		(2	)		(3	)		(2	)		(5	)		(5	)
Profit before taxes (w/o capital gains)		158			150			157			162			167

	31.03.06			30.06.06			30.09.06			31.12.06			31.03.07
Business volumes
Total assets		9,835			10,337			11,476			15,667			17,796
Loans and credits		162			158			164			171			142
Customer deposits		1			2			1			0			0

Spreads loans and deposits


	Q1 ’06		Q2 ’06		Q3 ’06		Q4 ’06		Q1 ’07
Santander Branch Network
Spread loans		1.39		1.29		1.31		1.28		1.25
Spread deposits		1.71		1.87		1.95		2.16		2.22
SUM		3.10		3.16		3.26		3.44		3.47
Retail Banking Banesto
Spread loans		1.38		1.36		1.30		1.31		1.32
Spread deposits		1.54		1.64		1.83		1.92		2.03
SUM		2.92		3.00		3.13		3.23		3.35
Santander Consumer Finance
Spread loans		4.79		4.58		4.15		3.83		3.69
Retail Banking Portugal
Spread loans		1.66		1.63		1.56		1.53		1.46
Spread deposits		1.19		1.21		1.24		1.26		1.27
SUM		2.85		2.84		2.80		2.79		2.73
Retail Banking Abbey
Spread loans		0.72		0.73		0.70		0.69		0.69
Spread deposits		1.09		1.11		1.14		1.20		1.28
SUM		1.81		1.84		1.84		1.89		1.97
Retail Banking Brazil
Spread loans		19.19		19.20		18.18		17.20		17.63
Spread deposits		2.53		2.05		1.90		1.67		1.62
SUM		21.72		21.25		20.08		18.87		19.25
Retail Banking Mexico
Spread loans		8.13		9.05		10.34		10.72		10.84
Spread deposits		3.49		3.16		3.30		3.48		3.55
SUM		11.62		12.21		13.64		14.20		14.39
Retail Banking Chile
Spread loans		5.07		5.07		4.95		4.91		5.08
Spread deposits		1.79		2.04		2.02		2.03		2.20
SUM		6.86		7.11		6.97		6.94		7.28

Risk-weighted assets*

Million euros


	31.03.06		30.06.06		30.09.06		31.12.06		31.03.07
Continental Europe		224,261		243,986		253,120		258,781		258,788
Santander Branch Network		83,524		90,175		93,673		94,348		95,478
Banesto		55,413		56,929		58,776		62,845		64,887
Santander Consumer		28,405		31,810		31,465		33,713		32,936
Portugal		22,891		23,022		22,959		22,057		21,689
United Kingdom (Abbey)		105,323		100,523		96,344		97,277		90,473
Latin America		64,257		61,044		64,565		70,241		72,831
Brazil		16,811		15,303		16,082		18,200		19,484
Mexico		13,017		12,778		15,196		15,850		15,965
Chile		14,403		13,232		14,112		13,873		14,876
Operating Areas		393,841		405,552		414,029		426,299		422,092
Financial management and equity stakes		33,767		38,868		42,716		52,434		50,846
Total		427,607		444,420		456,745		478,733		472,937


(*) -		The risk assets by business area have been changed, with retroactive effects, in order to register in them the savings derived from the differences of criteria between Basel and the Bank of Spain, which were previously reflected on a centralised basis.


Item

1		Press release, dated April 27, 2007, entitled “Santander’s attributable profit rose 21% to EUR 1.802 billion in the first quarter of 2007”

2		Presentation, dated April 27, 2007, entitled “Activity and Results – First Quarter 2007”

3		Santander Group First Quarter 2007 Financial Report

4		Santander Group First Quarter 2007 Results


Key consolidated data			3

Highlights of the quarter			4

Consolidated financial report			6

Risk management			17

The Santander share			19

Information by segments			20

Corporate Governance			46

Corporate Social Responsibility			47


	Average (income statement)				Period-end (balance sheet)
	Q1 ’07		Q1 ’06		31.03.07		31.12.06		31.03.06
US$		1.3106		1.2019		1.3318		1.3170		1.2104
Pound sterling		0.6706		0.6860		0.6798		0.6715		0.6964
Brazilian real		2.7613		2.6350		2.6976		2.8118		2.6459
New Mexican peso		14.4384		12.7386		14.6378		14.2881		13.2327
Chilean peso		708.3056		632.7446		716.2420		700.3148		637.2756
Venezuelan bolivar		2,814.3645		2,580.7784		2,859.7741		2,827.9941		2,599.0919
Argentine peso		4.0797		3.7000		4.1635		4.0679		3.7447


	Banco Santander Central Hispano, S.A.
Date: April 30, 2007	By:	/s/ José Antonio Alvarez
		Name:	José Antonio Alvarez
		Title:	Executive Vice President