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  • 1. Marcos Martnez G. Mexico

2. DisclaimerBanco Santander (Mxico), S.A., Institucin de Banca Mltiple, Grupo Financiero Santander (Santander Mexico) and BancoSantander, S.A. ("Santander") both caution that this presentation contains forward-looking statements. These forward-lookingstatements are found in various places throughout this presentation and include, without limitation, statements concerning our futurebusiness development and economic performance. While these forward-looking statements represent our judgment and futureexpectations concerning the development of our business, a number of risks, uncertainties and other important factors could causeactual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) generalmarket, macro-economic, governmental and regulatory trends; (2) movements in local and international securities markets, currencyexchange rates and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financialposition or credit worthiness of our customers, obligors and counterparties. The risk factors that Santander Mexico and Santanderhave indicated in its past and future filings and reports, including in Santanders case those with the Securities and ExchangeCommission of the United States of America (the SEC) could adversely affect our business and financial performance. Otherunknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.Forward-looking statements speak only as of the date on which they are made and are based on the knowledge, informationavailable and views taken on the date on which they are made; such knowledge, information and views may change at any time.Neither Santander Mexico nor Santander undertake any obligation to update or revise any forward-looking statement, whether as aresult of new information, future events or otherwise.The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly availableinformation, including, where relevant any fuller disclosure document published by Santander Mexico and Santander. Any person atany time acquiring securities must do so only on the basis of such persons own judgment as to the merits or the suitability of thesecurities for its purpose and only on such information as is contained in such public information having taken all such professionalor other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in thepresentation. In making this presentation available, Santander Mexico and Santander give no advice and make no recommendationto buy, sell or otherwise deal in shares in Santander Mexico, Santander or in any other securities or investments whatsoever.Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buyany securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. SecuritiesAct of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation orinducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Servicesand Markets Act 2000.Note: Statements as to historical performance or financial accretion are not intended to mean that future performance, share price orfuture earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in thispresentation should be construed as a profit forecast. 2 3. Index1 Business evolution2 Business environment3 Strategy4 Outlook 2011 / 2013 3 4. Index1 Business evolution2 Business environment3 Strategy4 Outlook 2011 / 2013 4 5. Santander Mexico Overview Santander is one of the most important financial groups in Mexico and has a strong franchise with a diversified client baseFootprintCustomer BaseExpressed in Thousands ofcustomers, except GB&MMarket Share USD$54 Bn in Assets233 Groups GB&M USD$39 Bn in Savings USD$25 Bn in Credit Institutional* ~1517.4% 9.1 million customers Middle Market ~33 (Large SMEs) 1,098 points of sale~221 SMEs 11,873 employees Individuals14.2% ~8,856 * Includes Government and Universities5 6. Efficient infrastructureMarket share (%) Total AssetsNet Income BranchesPersonnelATMs Peer 1 19.7 Peer 2 33.3 Peer 2 16.3 Peer 216.5 Peer 2 20.3Peer 219.5 SAN18.3 Peer 3 16.1Peer 315.6Peer 3 18.7 SAN 13.8Peer 114.4Peer 1 13.8 Peer 1 13.4Peer 4 17.5 Peer 3 11.8 Peer 39.4 Peer 4 9.7Peer 411.5 Peer 1 14.9Peer 4 8.6Peer 54.1SAN9.7SAN 10.5 SAN 13.1Peer 5 3.7 Peer 41.5 Peer 5 1.5Peer 5 1.1Peer 5 0.6 Source: CNBV June 20116 7. Santander has outperformed the market, therefore increasing itsmarket share.Market Quota, Percentages Deposits20091H11+156bps Demand 12.3 12.7 Term 19.5 20.215.6 Loans14.020091H1116.0Loans Mortgage 9.4 15.913.3 Consumer12.9 14.2 Credit Card 14.4 10.9Deposits14.715.2 SMEs17.0 20.320091H11 Middle Market 15.5 17.720091H11 (LargeSMEs) Corporate 16.7 20.9Source: MBA June 20117 8. Santanders has gained profit market share against its peers Pre-tax Profit + 980bps 200812.3%4,789 200919.5% 5,342201018.6% 6,632 1H11 22.1% 3,094SANThe Big 6 Group Million USD Source: CNBV June 2011 At mean exchange rate of 2011 of $11.8966 8 9. Santander compares favorably in all ratios ROA (%)ROE (%)1.78 15.69 12.79 1.33SantanderAverage System SantanderAverage SystemFees / Expenses (%)Efficiency (%)73.457.8 42.638.1Santander Average Peers Santander Average PeersPeers: Citi-Banamex; BBVA Bancomer; HSBC, Banorte-Ixe & Scotiabank,Source ROA & ROE: CNBV Jun11 BanksSource Fees/Exp & Efficiency: Santander 9 10. Overview.- Summary Strong Franchise with diversified client baseEfficient use of infrastructureProvenExecution Solid performance and profitability 10 11. Index1 Business evolution2 Business environment3 Strategy4 Outlook 2011 / 2013 11 12. Macroeconomic EnvironmentPopulation pyramid with a large youth base and long life12expectancy DemographicsUrban modern society; 78% live in cities and demandservicesPublic deficit of 0.5% GDP (e), at a stable trend Public Public debt equivalent 31.3% GDP; debt levels belowFinance similar and developed countriesFlexible exchange rate regimeExternalCurrent account deficit of 1% GPD in 2011 Sector Direct Foreign Investment of USD20 Bn for 2011.Source: INEGI, SHCP, Santander.12 13. Demographics Population PyramidThe population structure alone provides opportunities to increasebanking business in the medium-long term Population StructureTotal Population 2.2% 112.3 millionA 6.0%ge12.2%Gr 21.0%ou27.1%48.1%p31.5%Percentage Source: INEGI13 14. Macroeconomic EnvironmentGDP GrowthGDP Growth Favorable perspectives in Real Annual Variation (%)the mid-term; However it will be affected 3-4% 5.4in the short term by global3.8 3.63.7economic slowdown-6.2 Internal DemandSupporting economic growth: 20092010 2011e 2012e2013e Auto production Source: IMF Retail Direct Investment Job creation 14 15. Banking Penetration Given the state of development of the Mexican economy and the currentpenetration rate of financial services, the growth potentialof the banking system is substantialBank Deposits / GDPPrivate credit* / GDP120% 250%100% 200%80% 150%60% 100%40%20% 50% 0% 0%MexicoLatam USA EuropeMexico Latam EuropeUSASource: The World Bank / New. Data as of 2009(*) Private Credit by Deposit Money Banks and other Financial Institutions 15 16. Financial EnvironmentMexico has a solid and healthy banking system ready to growRegulatory Capital / RWA (%)Bank Deposits / Bank Credit (%) 17.95 16.50133 15.00 14.80 14.23 115 8271LatamMexicoUSA EuropeAsia USA MexicoLATAMEUROPE NPL ratio (%) Coverage ratio (%)200169174 3.1 2.72.6 20072009 20102007 2009 2010 Source: IMF & The World Bank 2009 for the upper two and BMA 16 for the lower two 17. Macroeconomic & Financial EnvironmentMexico has a solid economic outlook, a sound financial system with greatpotential, and a population structure that provides strong opportunities Developing society that demands servicesA uniqueA solid and growing economy opportunity togrow ourbankingbusinessSound financial system withhigh potential 17 18. Index1 Business evolution2 Business environment3 Strategy4 Outlook 2011 / 2013 18 19. Going Forward The roll-out of our strategic plan2008-20102010-2013 Unfavorable economic cycle Environment Universal Banking: Credit business decreasing Retail and Investment Consolidate our Protect bottom lineObjectivesegmented business Improve asset qualitymodel Credit primarily to our clientsRevenue growth on coreStrategy business Client base segmentation Consolidation of our Consolidate value of business tools the Franchise 19 20. Santander Mexico Strategy Summary Competitive AdvantagesBusiness OpportunitiesCustomer Development Client segmentation together High & Mid income Segmentwith value-added offers AchievingSMEsgrowth withour clientsMiddle Market (Large SMEs) CRM together with marketingintelligence +Core productsMortgageAlternative channels fully developed ConsumerFully developing Cards new business opportunities Highly productive branch networkInsurance Quality and People 20 21. Service models differentiated by customer type(1/2) Advanced business models with value-added offers for individualsUSD21.5Bn... Objectives Customized financial Highservices with exclusive56%Premierincomebranches and value-added382products Mid incomeMultichannel strategyPreferente coordinated with branches,1,580focused on preauthorized24%creditsClsico 20% Profit oriented and linked at 6,894 the origin through payrollIndividuals Business 8,856Distribution (volumes)Thousands of customers 21 22. CRM together with marketing