Banco La Previsora reports nine month revenues of 214.39 million sucres; declares dividend.

GUAYAQUIL, Ecuador--(BUSINESS WIRE)--October 21, 1996--Banco La Previsora (OTC: BDLPF), one of Ecuador's leading commercial banks, today reported nine month revenues of 258.0 billion sucres ($83.0 million), a 70 percent increase over nine month revenues of 172.9 billion sucres ($69.6 million) in 1995.

Alvaro Guerrero-Ferber, Executive President of Banco La Previsora, said the bank has made a strategic decision to assign all third quarter earnings to its allowance for loan losses in a move to sustain strong growth. He said the bank believes the new government s four-year economic plan, combined with lower interest rates, should generate new lending activity by financial institutions, which in turn should help reactivate the Ecuadorian economy.

Due to the low interest rate environment and to brighter economic prospects for 1997, we believe the fourth quarter of 1996 is the correct moment to initiate a loan growth strategy, Mr. Guerrero-Ferber added. The additional provisions will provide us with the solvency required to sustain a strong growth rate beginning next quarter. The improved earnings generated by this strategy should be evident by the first quarter of 1997.

The bank's total allocation for loan losses reached $17.7 billion sucres ($5.4 million) at the end of the third quarter, 57 percent above the level at the end of September 1995. The allowance covers 52 percent of past due loans and 5 percent of the total loan portfolio, a significant improvement over 37 percent and 3 percent, respectively, at September 30, 1995.

Banco La Previsora's Board of Directors declared a quarterly dividend payment equivalent to 10 percent of the par value of Common Stock outstanding at September 30. The dividend will be paid from the prior year s retained earnings.

Total deposits reached 539.7 billion sucres ($163.1 million) at the end of the third quarter, up 36 percent from September 30, 1995. The bank s loan portfolio grew 13 percent during the past twelve months to 374.6 billion sucres ($141.0 million).

In August the Central Bank of Ecuador raised the exchange rate band by 8 percent and increased the rate of depreciation while simultaneously injecting liquidity into the economy. The exchange rate, however, remained stable, and interest rates fell sharply.

The bank's large nine month gain in revenues came in spite of the installation of the new government and diminished loan demand, which led financial institutions to maintain high levels of liquidity as they lowered deposit and lending rates. Interest income at the more liquid banks suffered because of the steep drop in short term rates, lowering the performance of liquid investment portfolios.

Within an ambiguous economic context, Banco La Previsora continued to emphasize the liquidity and solvency of its assets. Cash, due from banks, and investments reached 210.45 billion sucres at the end of September, representing 24 percent of total assets. -0-

Banco La Previsora (BLP) is one of Ecuador's leading, profitable commercial banks with a six year compound earnings growth in excess of 30% and a large and growing portfolio of individual and business clients. Its subsidiaries include Previsora International Bank, an offshore dollar denominated bank; Previbursatil, a brokerage house; and Previfondos, a funds administrator. -0-

BANCO LA PREVISORA

Third Quarter 1996

Statement of Income

(Expressed in thousands of Sucres)

Average Year-to-date Exchange rate: S/3,107.40 = US$1.00 1995 Exchange rate: S/2,485.28

1996 1995 Financial Income 214,358,886 142,940,733 Interest income 144,949,154 106,168,418 Commission income 12,463,736 9,058,424 Price level and currency gains on assets 56,945,996 27,713,891 Financial Expenses 162,946,731 90,246,930 Interest expense 121,403,282 72,784,048 Commission expense 917,437 720,297 Price level and currency losses on liabilities 40,626,012 16,742,585 Gross financial margin 51,412,155 52,693,803 Other operating income and expense Operating Income 28,194,577 17,913,882 Income from services 9,061,049 6,893,229 Other ordinary income 19,133,528 11,020,653 Operating Income 58,102,401 42,996,533 Personnel expenses 31,336,594 22,425,003 Operating expenses and taxes 26,765,807 20,571,530 Operating income before provisions 21,504,331 27,611,152 Provisions, depreciation and amortization 19,190,715 17,670,573 Provisions for loans and other assets 7,320,307 7,483,119 Depreciation 10,137,352 6,342,831 Amortization 1,733,056 3,844,623 Net Operating Margin 2,313,616 9,940,579 Nonoperational income and expense 13,173,856 10,517,264 Other extraordinary income 15,415,606 12,075,541 Other extraordinary expense 2,241,750 1,558,277 Net Income after Tax 15,487,472 20,457,843

BANCO LA PREVISORA

Third Quarter 1996

Balance Sheet

(Expressed in thousands of Sucres)

Exchange rate: S/3,306 = US$1.00 1995 Exchange rate: S/2,657=US$1.00

ASSETS 1996 1995 Cash And Due From Banks 98,861,656 81,553,577 Cash 19,145,397 7,528,668 Deposits with the Central Bank 24,499,877 38,441,116 Banks and other financial institutions 13,004,365 10,544,835 Immediate transit items 36,672,483 17,300,492 Transit items 5,539,534 7,738,466 Interbank Funds Sold 31,611,780 5,400,000 Investments 111,584,717 28,121,143 Bonds 14,353,285 6,589,217 Mortgage bonds 251,743 163 Repurchase agreements  2,034,664 11,846,230 Various 94,945,025 8,185,533 Reverse repurchase agreements  1,500,000 Loan Portfolio 356,890,689 319,823,569 Current loans Commercial loans 121,882,426 128,194,036 Collateralized loans 27,976,793 17,886,017 Mortgage loans 101,362,516 63,708,640 Small business loans 7,566,232 22,219,131 Credit card debt-current charges 18,616,068 12,335,842 Credit card-debt existing balance 35,216,728 36,715,957 Credit card-debt installment loan  19,783,885 19,093,086 Contigencies paid by Bank 3,066,339 - Nonaccrual Loans 4,696,332 - Past due loans: Commercial loans 15,657,876 17,506,082 Collateralized loans 542,534 530,249 Mortgage loans 777,342 865,579 Small business loans 444,316 1,101,831 Other loans Contingencies paid by bank 5,526,717 3,527,788 Credit card debt-late payments 11,513,849 7,457,205 (Allowance for Loan losses) (17,739,264) (11,317,874) Accounts Receivable, Net 21,238,804 8,963,837 Accounts receivable 21,964,373 9,754,579 (Allowance for bad debts) (725,569) (790,742) Repossessed Assets 3,981,033 3,898,058 Acquired through foreclosure 5,376,949 5,374,722 Provision for assets (1,395,916) (1,476,664) Premises and equipment 136,543,363 94,680,415 Other Assets 104,158,295 60,474,173 Prepaid expenses 15,516,665 7,990,845 Stock of subsidiaries 39,875,110 23,181,498 Accrued receivables 34,869,877 24,489,422 Other asset accounts 15,419,402 6,335,167 (Allowance for other assets) (1,522,759) (1,522,759) Total Assets 864,870,337 602,914,772 Contingencies Guarantees and letters of credit 385,053,071 204,052,222 Undisbursed loan proceeds 24,266,113 494,190 Interest and commissions from clients - 2,160 Foreign Currency Operations - - Total Contingencies 409,321,184 204,548,572 Memo Accounts 1,569,412,089 938,213,381

BANCO LA PREVISORA

Third Quarter 1996

Balance Sheet

(Expressed in thousands of Sucres)

Exchange rate: S/3,306 = US$1.00 1995 exchange rate: S/2,657 =US$1.00

LIABILITIES 1996 1995 Demand Deposits 271,589,489 208,475,376 Current accounts 104,596,746 79,511,270 Savings accounts  127,225,534 109,734,785 Other deposits 8,313,480 1,511,471 Other deposits 34,257 32,625 Transit deposits 31,419,472 17,685,225 Interbank Funds Purchased 1,500,000 2,800,000 Short-Term Liabilities 29,143,421 17,129,785 Time Deposits 268,068,316 188,754,229 360 days or less 246,842,600 171,033,729 Greater than 360 days 21,116,031 17,323,218 Transit deposits 109,685 397,282 Accounts Payable 10,872,103 8,101,657 Borrowing from Financial Institutions 58,376,487 31,168,654 Central Bank of Ecuador 110,358 586,711 National Finance Corporation - 19,314,764 Subsidiary 50,213,749 -

National Banks and financial institution 4,645,753 7,495,740 Foreign banks and financial institutions 3,083,168 3,313,601 International financial organizations 323,459 457,838 Long-Term Debt and Other 42,937,696 17,415,143 Mortgage bonds in constant value units (UVC) 42,923,696 17,370,393 Development bonds 14,000 19,000 Mortgage bonds - 24,610 Other - 1,140 Other Liabilities  37,967,336 20,902,422 Deferred income 86,714 58,566 Accrued expenses  17,057,631 14,721,840 Employees' reserve fund 1,504,697 1,101,674 Other liability accounts 19,318,294 5,020,342 Total Liabilities 720,454,848 494,747,266 Shareholders' Equity Common Stock 40,466,250 26,977,500 Common stock paid 24,383,125 22,877,500 Capitalized reserves 16,083,125 4,100,000 Reserves 73,453,525 56,207,311 Legal 9,505,387 7,168,462 Reevaluation of Shareholders' Equity 63,948,138 49,038,849 Retained Earnings 12,797,137 3,966,412 Capital Increase in Process - - Price Level Adjustment 2,211,105 556,440 Current Year Earnings 15,487,472 20,457,843 Total Shareholders' Equity 144,415,489 108,167,506 Total Liabilities and Shareholders' equity 864,870,337 602,914,772

(Expressed in US dollars) Year-to-date Earnings per ADR 0.62 Year-to-date Dividends per ADR 0.47

CONTACT: Banco La Previsora, Guayaquil, Ecuador

Ing. John Viault A.

Gerente Planificacisn

Tel. [phone], ext. 1422

or

Roy Marmelo

ADR Depositary Bank

Bankers Trust

Tel. [phone]

Fax [phone]

or

Jane Valdez

Investor Relations

The Anne McBride Co.

Tel. [phone]

Fax [phone]