0

First Quarter 2015

Grupo Financiero Santander

México, S.A.B. de C.V.

Investor Presentation

1

Safe Harbor Statement

Grupo Financiero Santander México cautions that this presentation may contain forward-looking statements within the

meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements could be found in

various places throughout this presentation and include, without limitation, statements regarding our intent, belief, targets or

current expectations in connection with: asset growth and sources of funding; growth of our fee-based business; expansion

of our distribution network; our focus on strategic businesses; our compound annual growth rate; our risk, efficiency and

profitability targets; financing plans; competition; impact of regulation; exposure to market risks including interest rate risk,

foreign exchange risk and equity price risk; exposure to credit risks including credit default risk and settlement risk;

projected capital expenditures; capitalization requirements and level of reserves; liquidity; trends affecting the economy

generally; and trends affecting our financial condition and our results of operations. While these forward-looking statements

represent our judgment and future expectations concerning the development of our business, a number of risks,

uncertainties and other important factors could cause actual developments and results to differ materially from our

expectations. These factors include, but are not limited to: changes in capital markets in general that may affect policies or

attitudes towards lending to Mexico or Mexican companies; changes in economic conditions, in Mexico in particular, in the

United States or globally; the monetary, foreign exchange and interest rate policies of the Mexican Central Bank (Banco de

México); inflation; deflation; unemployment; unanticipated turbulence in interest rates; movements in foreign exchange

rates; movements in equity prices or other rates or prices; changes in Mexican and foreign policies, legislation and

regulations; changes in requirements to make contributions to, for the receipt of support from programs organized by or

requiring deposits to be made or assessments observed or imposed by, the Mexican government; changes in taxes;

competition, changes in competition and pricing environments; our inability to hedge certain risks economically; economic

conditions that affect consumer spending and the ability of customers to comply with obligations; the adequacy of

allowances for loans and other losses; increased default by borrowers; technological changes; changes in consumer

spending and saving habits; increased costs; unanticipated increases in financing and other costs or the inability to obtain

additional debt or equity financing on attractive terms; changes in, or failure to comply with, banking regulations; and certain

other risk factors included in our annual report on Form 20-F. The risk factors and other key factors that we have indicated

in our past and future filings and reports, including those with the U.S. Securities and Exchange Commission, could

adversely affect our business and financial performance. Note: The information contained in this presentation is not audited. Nevertheless, the consolidated accounts are prepared on the basis

of the accounting principles and regulations prescribed by the Mexican National Banking and Securities Commission (Comisión

Nacional Bancaria y de Valores) for credit institutions, as amended (Mexican Banking GAAP). All figures presented are in millions

of nominal Mexican pesos, unless otherwise indicated. Historical figures are not adjusted by inflation.

2

GDP (% Growth)

Interest Rate (CETEs) Inflation (% Annual)

Source: GDP – INEGI

CETE, Inflation, Exchange Rate – BANXICO

Estimates – SANTANDER

3.83.43.33.22.92.6

2.21.6

2.01.4

4.0

2012 2016E 2Q14 1Q14 2013 4Q15E 3Q15E 2Q15E 1Q15E 4Q14 3Q14

4.5

3.53.0

3.94.54.5

2014 2013 2012 2011 2015E 2016E

3.53.2

4.14.03.6

3.8

2015E 2012 2011 2013 2014 2016E

Consistent Signs of Economic Recovery Supported by Solid Macro

Fundamentals

2.1 3.2

3

…Driven by Both Internal and External Factors in the Near and Long Term

Labour - Increase flexibility and formalization

Increase of public and private investment Infrastructure

Plan

US

Economy

Structural

Reforms

Drive stronger industrial growth

Fiscal – Increase tax revenues

Energy - Reduce industrial operating costs, strengthen public

finance, encourage private investment

Financial – Enhance transparency and foster competition

Support economic recovery Public

Expenditure

Near

Term

M

id-L

on

g T

erm

Telecom – Increase competition

4

24%

29%

35% 38%

32%

26%

21% 21% 18%

16% 14% 14% 13% 12% 12% 13% 15% 15% 16% 16% 17% 17%

18% 19%

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Low Banking Penetration1

An Expanding Middle-Class

Solid Macro Fundamentals are Complemented by an Under Banked

System with Favorable Demographics…

Source: CNBV, INEGI and IMF and HBS ”Mexico’s financial crisis of 1994-1995” from May 2012

Avg. pre-tequila crisis levels2: 31.5%

Notes: 1) Considers loans within the banking sector (CNBV)

2) Pre-tequila average takes into account 1991-1994 period

Loan-to-GDP Ratio

Source: CONAPO 2010

5

A Large, Young…

…and Join the Formal Sector …and Active Population, Expected to Expand…

…that Support Increasing Demand for Financial Products

Source: US Census Bureau

Population <60 years old

Source: CONAPO

Active Population per Sector

687376778190

UK US Germany Canada Japan Mexico

%

Ag

es

2010 2020 (E)

% % % %

25-60

43%

25-60

46%

Source: INEGI As of January 2015

73%

Formal

36.3 mm

27%

Informal

13.5 mm

+9.1mm

113.5mm 126.4mm

Total

Population

120.5mm

6

Santander México: One of the Most Important Retail Banking Franchises in

Mexico, Consistently Generating Profits and Strong Loan Growth

Source: Company filings and CNBV (Mexican banking GAAP) figures for Groups as 4T14

Notes: 1 Comprised by: 1,081 branches + 18 SME offices + 6 SME branches + 119 cash desks + 3 select offices + 44 select units + 51 select boxes + 24 brokerage house branches

2 Net income in 2011, 2012 and 2013 include the following non-recurring gains: 2011 = 4,348 Insurance business sale to Zurich

2012 = 1,731 Sale and leaseback of branches and 2013 = 4,929 Asset managemnet divestiture and change in EPS methodology

CAGR takes into account recurring gains

Santander México Ranking

MX$930.4 billion in assets

MX$441.5 billion in loans

MX$511.5 billion in deposits

MX$105.1 billion in equity

1,346 branches1

11.7 million customers

#4

#4

#3

#4

#4

Retail

Banking

Corporate

Activities

Wholesale

Banking

Retail Banking Franchise

Distribution by profit before taxes

Net Income2

14,01413,85111,827

2013

20,876

2012

17,822

2011

18,683

2010 2009 2014

394,932350,683

313,672227,556207,737

465,541

2013 2012 2011 2010 2009 2014

Total Loans

77%

14%

9%

7

Our Successful Track Record is Driven by a Focused Strategy that

Targets the Growing Middle Class and Profitable Affluent Segments…

Number of customers

Classic

7.0 million

Private Banking

14,290

Premier

333,623

Select

242,760

Preferred

4.1 million

Hig

h-I

nco

me

Mid

-In

co

me

12% 11%

36%

29%

49%

16%

13%

15%

34%

36%

21%

17%

4%

5%

GOI* Deposits Loans

2% A

B

C

D

E

Individuals Segmentation Contribution

Source: Company data

As of March, 2015

Notes: *Gross Operating Income

8

…with a Comprehensive and Innovative Product Offering …

A full range of product

offerings through a

strategic alliance with

Zurich

Auto insurance

platform offering 12 top

auto insurance

companies services

Top 3 player in Credit

Cards

Products that meet clients’

needs and provide access

to promotions

Introducing innovative

products

Fast assessment processes

New products to increasingly

penetrate the open market

2nd largest market player

Focus on mid and high

income residential market

Source: Company data

As of March, 2015

9

CRM

Customer

Management Tool

Contact

Centers

ATMs Branches

Brokers

1.6 million customers with

pre-authorized credit offers

41% mortgages

41% consumer loans

42% credit cards

28% insurance policies

Main sales and service channel

44% consumer loans

58% credit cards

59% mortgages

52% insurance policies

15% consumer loans

20% insurance policies

Source: Company data

As of 1Q15

… and a Superior Multi-Channel Distribution Platform Supported by a

Unique CRM System

10

High Potential, Profitable SMEs and Middle-Market Customers are

Targeted and Serviced…

Number of customers

Source: Company data

As of March, 2015

Notes: *Gross Operating Income

Commercial Segmentation Contribution

Number of customers

SMEs

318,829

D

Middle-market

34,560

Corporates

Institutions

20,141

23%

13%

39%

44%

35%

7%

32%

10%

26%20%

14%

37%

GOI1 Deposits Loans

A

B

C

D

11

…through a Specialized Network Supported by Our CRM System

Providing a Wide Range of Products

Specialized

Network 24 Offices

Nationwide

Dedicated

Executives

Wide variety of lending

Highly active participation in

NAFIN programs

Driven by pre-authorized

models

Comprehensive

investment products

Cash management oriented

Payroll services

CRM

Source: Company data

As of March, 2015

Launched comprehensive

program for SMEs

12

Our Retail Business is Complemented by Well-Regarded, Client-Oriented

and Profitable Wholesale Banking Operation

“Best Trade Bank in Mexico” – Trade

Finance Magazine in 2013

“Best Trade Bank in Mexico” – Trade

Finance Magazine in 2014

"Best Infrastucture Bank in Mexico

2014" by Latin Finance

“Best Trade Finance Bank Award” –

Global Finance Magazine in 2014

“Best Trade Finance Provider in

Mexico” – Global Finance Magazine in

2015

…Highly Regarded and Award-Winning Revenue Mainly Driven by Recurring

Business…

Total: MX$14,018 mm

Market-Driven

Business

Net Interest

Margin

Fee-Driven

Business

Source: Company data

As of 1T15

71%

23%

6%

13

Our Proven Strategy is Reflected in Strong Market Shares across Core

Products…

#3

Individual Loans

Commercial Loans

Leader in SMEs financing by Ministry of

Finance

Leadership position in the high potential SME

market

Offer differentiated products to increase

transactionality

#2

28.4

19.1 15.8 13.9

12.0

4.6 0.4

Banorte BBVA

Bancomer Scotiabank Banamex Inbursa HSBC

Mo

rtg

ag

es

Co

ns

um

er1

Co

mm

erc

ial2

3.65.05.4

9.610.8

24.128.3

Azteca HSBC

Banorte Banamex BBVA

Bancomer

4.17.9

10.611.411.915.5

21.0

Banamex BBVA

Bancomer HSBC Scotiabank Inbursa Banorte

Source: CNBV data as of March 2015

Notes: 1) Includes credit cards, payroll and other personal loans

2) Includes middle-market, smes and corporates

#2

Scotiabank

14

Source: Company filings CNBV GAAP

Notes: 1) Includes credit cards, payroll, personal and auto loans

2) Annualized opex (1Q15x4) divided by Annualized income before opex and allowances (1Q15x4)

3) Annualized net income (1Q15x4) divided by average equity (4Q14;1Q15)

Focus on efficiency and profitability

Expenses annual growth +8.3%

Efficiency ratio3 44.8%

ROAE4 12.0%

Total loans up 16%, above market levels Mortgages +15%

SMEs +24%

Middle-market +15%

Consumer1 +11%

Ongoing prudent risk management

NPL ratio 3.68%

Cost of risk 3.13%

Closed agreement to acquire a Ps.3,179 million consumer loan

portfolio from Scotiabank México; effective as of April 2015

Deposit growth of 14% Individual demand deposits +23%

Santander México Continues to Report Strong Loan Growth Above Market

Rates

Opened 194 branches since 4Q12, expansion plan expected to

finalize on 2Q15.

15

Source: Company filings CNBV GAAP

Total Loans

+16%

+16%

474,738 +2%

+16%

1Q15 4Q14

465,541

3Q14

441,475

2Q14

440,675

1Q14

409,349 Retail

Corporates

3Q12 1Q15

Santander México Total Loans up 16% YoY With Solid Growth Across All

Segments

Middle-Market 23%

Corporates 14%

Gov&FinEnt 12%

SMEs 12%

Mortgages 23%

Credit Cards 9%

Consumer 7%

Middle-Market

23%

Corporates 20%

Gov&FinEnt 10%

SMEs 9%

Mortgages 20%

Credit Cards 10%

Consumer 8%

16

Source: Company filings CNBV GAAP

Notes: 1) Includes personal, payroll and auto loans

… and Continued Growth in Commercial Loans,

Driven by a Strong Performance in Middle-Market

and SMEs

+15%

1Q15

110,149

1Q14

95,865

+4%

1Q15

42,038

1Q14

40,506

+20%

1Q15

35,475

1Q14

29,458

Personal

Payroll

Individual Loans

Commercial Loans

Mo

rtg

ag

es

Cre

dit

Ca

rds

Co

ns

um

er1

Mid

dle

-ma

rket

Co

rpo

rate

s

SM

Es

Go

v &

Fin

En

t

187,662 165,829 1Q14 1Q15 +13%

287,076 243,520 1Q14 1Q15 +18%

Individual Loans Up 13% YoY, Reflecting Growth in Consumer Loans and

Mortagages and Commercial Loans Achieving Growth Across All Segments

+24%

1Q15

56,400

1Q14

45,322

+15%

1Q15

109,502

1Q14

95,576

+16%

1Q15

65,134

1Q14

56,006

+20%

1Q15

56,040

1Q14

46,616

17

Total Deposits

Source: Company filings CNBV GAAP

Notes: 1) Loans net of allowance divided by total deposits (Demand + Term)

3Q14

438,143

65%

35%

2Q14

425,108

61%

39%

1Q14

401,081

64%

36%

0% 459,130

+14%

Demand

Term

1Q15

64%

36%

4Q14

459,624

64%

36%

Individuals, SMEs and mid-market remain the main contributors to demand deposit growth – up

23%, 21% and 23%, respectively.

Optimizing cost of funding

Continue to drive growth of Select client base

New branches contribute to deposit growth

Deposit Base up 14% YoY; Healthy Mix Contributes to Funding Costs

1Q15

99.6%

4Q14

97.6%

3Q14

97.0%

2Q14

99.8%

1Q14

98.1%

Net Loans to Deposits1

18

Net Interest Income Up for the Fourth Consecutive Quarter: +1.3% QoQ and

+10.4% YoY

Gross Operating Income2

Net Commissions and Fees Net Interest Income and NIM1

Source: Company filings CNBV GAAP

Notes: 1) Annualized financial margin (1Q15x4) divided by daily average interest earnings assets (1Q15)

2) Gross Operating Income does not include Other Income

71%

23%

6% Net Interest Income

Net Commissions andFees

Trading Gains

9,9259,7999,524

9,2628,993

5.05 4.87

1.3%

1Q15 4Q14

10.4%

3Q14 1Q14 2Q14

3,2983,3643,3393,2913,423

1Q14 3Q14 4Q14 2Q14 1Q15

-2.0%

-3.7%

14,01813,55813,51413,91112,969

1Q15 3Q14 4Q14

3.4%

8.1%

2Q14 1Q14

19

Cost of Risk1 Loan Loss Reserves (LLR)

Source: Company filings CNBV GAAP

Notes: 1) Annualized loan loss reserves (1Q15x4) divided by average loans (4Q14,1Q15)

* Commercial loans include: mid-market, smes, corporates, financial institutios and government

* Commercial NPLs reflect the exposure to homebuilders

NPLs 1Q14 4Q14 1Q15 Var YoY (bps) Var QoQ (bps)

Consumer 4.14% 4.19% 3.61% -53 -57

Credit Card 3.20% 4.12% 3.79% 59 -33

Mortgages 4.30% 5.07% 5.00% 69 -7

Commercial* 2.84% 3.14% 3.19% 35 5

SMEs 2.50% 2.99% 2.75% 25 -24

Total Loans 3.40% 3.75% 3.68% 27 -7

Cost of Risk Down 19 bps QoQ with Improving NPLs and Coverage Ratios

3,6833,334

3,8143,6723,469

1Q15 4Q14 3Q14 2Q14

10.5%

6.2%

1Q14

-19bps

-32bps

1Q15

3.13%

4Q14

3.32%

3Q14

3.49%

2Q14

3.42%

1Q14

3.45%

20

Source: Company filings CNBV GAAP

Notes: 1) Annualized opex (1Q15x4) divided by annualized income before opex (net of allowances) (1Q15x4)

Expenses Breakdown Administrative & Promotional Expenses

6,3896,0595,9385,9215,902

8.3%

5.4%

1Q15 4Q14 3Q14 2Q14 1Q14

Efficiency1

+0.5pp

1Q15

44.8%

4Q14

43.0%

3Q14

43.0%

2Q14

42.9%

1Q14

44.3%

Effective Expense Management Offset by Impact from Deposit Insurance

Fee and Branch Expansion Plan

46%

38%

8%

8%

Personnel

Admin expenses

IPAB

Dep and amort.

Var YoY

1Q14 4Q14 1Q15 Var $$ Var %

Personnel 2,587 2,886 2,916 329 12.7%

Admin expenses 2,454 2,256 2,439 -15 -0.6%

IPAB 436 508 535 99 22.7%

Dep and amort. 425 409 499 74 17.4%

Admin & prom expenses 5,902 6,059 6,389 487 8.3%

Admin & prom expenses (ex IPAB) 5,466 5,551 5,854 388 7.1%

21

Source: Company filings CNBV GAAP

Notes: 1) Annualized net income (1Q15x4) divided by average equity (4Q14,1Q15)

ROAE1

Higher Effective Tax Rate Offsets Strong Loan Volume Growth and Impacts

Net Income

12.0% -2.0 pp

-1.5 pp

1Q15 4Q14

14.0%

3Q14

13.6%

2Q14

14.1%

1Q14

13.5%

Effective Tax Rate

Net Income

3,215

3,824

3,2443,687

3,259

-1.4%

-15.9%

1Q15 4Q14 3Q14 2Q14 1Q14

23.5%

+4.5pp

+5.5pp

1Q15 4Q14

19.0%

3Q14

19.4%

2Q14

20.4%

1Q14

18.0%

Profit before Taxes

4,2044,719

4,0264,636

3,975

+5.8%

-10.9%

1Q15 4Q14 3Q14 2Q14 1Q14

22

Metrics

Total Loans

• Consumer

• Mortgages

• SMEs

Total Deposits

2015

Target

Δ 13%-15%

Δ 12%-15%

Δ 10%-12%

Δ 22%-25%

Δ 10%-12%

Based on Our Performance To-Date and Expectations of Continued

Economic Recovery We Maintain Guidance for 2015

Pre-tax Earnings Growth

Cost of Risk

Expenses

Tax Rate

Δ 15%-20%

3.4%-3.6%

Δ 6%-8%*

23%-25%

* Does not include the deposit insurance fee (or IPAB) and the reversal from the employee profit sharing (EPS) future payments

23

Questions and Answers