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Date	30/01/2001
Companies	BANCO SANTANDER CENTRAL HISPANO -
Subject	Revised BSCH forecast for this year

	Following the annual result highlights for 2000, previously reported, the bank has announced a revised strategy and new, slightly lower profit targets for this year. Net profits for this year are now forecast at Pts475bn (€2.9bn £1.8bn $2.7bn), down 5% on the plan for 2001 announced last year. In itself that would not be unusual, however this is only to be achieved after a series of additional economies. Acquisitions are likely to be few and further strengthening of cross-holdings unlikely this year. Internet development expenditure is to be reduced and it is possible the significant Vodaphone will be sold in order to reduce the significant Goodwill level. Goodwill increased by over 4.5 times in the year 2000 due to the bank's heavy Latin American buying. Though the company managed a 43% increase in net profit for 2000 the very high price paid for Banco do Estado de Sao Paulo, twice the next highest offer, dented the management's credibility. Whilst Latin America has been good for the Spanish banks in 2000, many of the economies in that region are forecast to do less well this year. The BSCH share price fell over 3.5% on the day.
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