Grupo Financiero Santander México Reports Second Quarter 2017 Net Income of Ps.4,609 Million

MEXICO CITY, July 28, 2017 /PRNewswire/ -- Grupo Financiero Santander México, S.A.B. de C.V., (NYSE: BSMX; BMV:  SANMEX), ("Santander México"), one of the leading financial groups in Mexico, today announced financial results for the three-month and six-month periods ending June 30^th, 2017.

Santander México reported net income for 2Q17 of Ps.4,609 million, representing YoY and QoQ increases of 24.3% and 2.0%.

Héctor Grisi, Grupo Financiero Santander México's Executive President and CEO, commented: "We reported robust second quarter results, illustrating our ability to drive profitability across the bank, with net income up 24% year-on-year to Ps.4.6 billion pesos in the quarter, while ROAE rose 360 basis points to 16.4%.

Economic activity was healthier than expected during the period, underpinned by resilient consumption, stronger external demand, sound labor dynamics and higher consumer confidence. We continued to execute on our strategic initiatives, successfully growing high-margin loans, attracting deposits and maintaining healthy asset quality.

We are pleased with progress we have made to date toward the vision of becoming a more client-centric bank. As such, we are proud to have grown net new customers by around 1 million clients over the last twelve months as we continue to transform our business model with a strong focus on digitalization and mobile banking.

Our innovative products such as Santander Plus and offering for individuals and SMEs are also showing consistently good results. Deposit growth was up 14% year-on-year, while individual deposits were an impressive 28% higher and SME deposits rose 12%.

Strong NII growth of 15% reflected the higher interest rate environment, loan growth in high-margin segments and our disciplined strategy execution. This resulted in NIM of 5.31% and helped boost profit before tax by 21% over the prior period, even excluding the benefit of a lower effective tax rate.

Global Corporate Banking maintains its contribution to overall results, demonstrating our ability to prioritize profitability, sharp execution and an ongoing focus on fee business.

Overall, these strong results demonstrate the adaptiveness and effectiveness of our strategy, with solid progress on key initiatives enabling us to maintain an optimistic outlook. As such, given our performance and positive trends that we expect to continue, our full year results should therefore be stronger than anticipated at the beginning of 2017.

As we look to the second half, we remain dedicated to generating long-term sustainable returns, an outstanding value proposition and exceptional customer service."

2Q17 EARNINGS CALL DIAL-IN INFORMATION

ABOUT GRUPO FINANCIERO SANTANDER MÉXICO, S.A.B. DE C.V. (NYSE: BSMX; BMV: SANMEX)
Grupo Financiero Santander México, S.A.B. de C.V. (Santander México), one of Mexico's leading financial services holding companies, provides a wide range of financial and related services, including retail and commercial banking, securities brokerage, financial advisory and other related investment activities. Santander México offers a multichannel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multinational companies in Mexico. As of June 30^th, 2017, Santander México had total assets of Ps.1,209 billion under Mexican Banking GAAP and more than 14.3 million customers. Headquartered in Mexico City, the Company operates 1,075 branches and 324 offices nationwide and has a total of 17,209 employees.

LEGAL DISCLAIMER
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; financing plans; competition; impact of regulation and the interpretation thereof; action to modify or revoke Grupo Financiero Santander México's authorization to act as a sociedad controladora de un grupo financiero or Banco Santander México's banking license; 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; investment in our information technology platform; 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, many important factors could cause actual results to differ substantially from those anticipated in forward-looking statements. These factors include, among other things: 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 and tax laws; 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 allowance for impairment losses and other losses; increased default by borrowers; our inability to successfully and effectively integrate acquisitions or to evaluate risks arising from asset acquisitions; 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 or their interpretation; 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.

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SOURCE Grupo Financiero Santander Mexico, S.A.B. de C.V.