Institutional PresentationBanco Santander Mexico

3M’20

Investor Relations Mexico City

Safe Harbor Statement

Banco Santander México cautions that this presentation may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of1995. 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 our banking license; exposure to market risks including interestrate risk, foreign exchange risk and equity price risk; exposure to credit risks including credit default risk and settlement risk; projected capital expenditures; capitalizationrequirements and level of reserves; investment in our formation technology platform; liquidity; trends affecting the economy generally; and trends affecting our financialcondition and our results of operations. While these forward-looking statements represent our judgment and future expectations concerning the development of ourbusiness, many important factors could cause actual results to differ substantially from those anticipated in forward-looking statements. These factors include, amongother 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 inMexican and foreign policies, legislation and regulations; changes in requirements to make contributions to, for the receipt of support from programs organized by orrequiring deposits to be made or assessments observed or imposed by, the Mexican government; changes in taxes and tax laws; competition, changes in competition andpricing environments; our inability to hedge certain risks economically; economic conditions that affect consumer spending and the ability of customers to comply withobligations; the adequacy of allowance for impairment losses and other losses; increased default by borrowers; our inability to successfully and effectively integrateacquisitions or to evaluate risks arising from asset acquisitions; technological changes; changes in consumer spending and saving habits; increased costs; unanticipatedincreases 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, bankingregulations 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 inour past and future filings and reports, including those with the U.S. Securities and Exchange Commission, could adversely affect our business and financial performance.The words “believe,” “may,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “forecast” and similar words are intended to identify forward-lookingstatements. You should not place undue reliance on such statements, which speak only as of the date they were made. We undertake no obligation to update publicly or torevise any forward-looking statements after we distribute this presentation because of new information, future events or other factors. In light of the risks anduncertainties described above, the future events and circumstances discussed herein might not occur and are not guarantees of future performance.

Note: The information contained in this presentation is not audited. Nevertheless, the consolidated accounts are prepared on the basis of the accounting principles andregulations prescribed by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) for credit institutions, as amended (MexicanBanking 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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3

1. Banco Santander Mexico at a glance

2. The Mexican banking sector

3. Closer look at Banco Santander Mexico

4. COVID-19 & key takeaways

5. Links to Santander Mexico public

materials

Content

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Banco Santander Mexico at a glance1.

Banco Santander Mexico at a glance

Source: CNBV and Santander filings. Data as of March 30th, 2020, unless otherwise stated.1. Market share calculated as percentage of system loans and deposits; deposits include demand and term deposits. 2. Million customers. Figures may vary from those previously reported due to restatements. 3. As of May 11th 2020. 4. As of April 2020. As of mid-June, volume rose to 5.6 million USD.

One of the leading Banks in the country, aiming to become the best bank in Mexico for businesses and individuals, helping them prosper.

Infrastructure

1,211 branches 46% under the new SmartRed format

9,096 ATMs of which 1,138 are full-function

19,638 employees

Growing the customer base

Our stock BSMX

• Market cap of ~4 billion USD³ and

trading at BMV and NYSE

• Free float of 8%

• ADTV of 3 million USD⁴

3rd largest bank by loans and deposits

23.2

13.4 13.4 12.5

22.6

13.2 14.1 14.3

Loans Deposits

Market share¹

1.6

3.3

2016 3M20

2.1x

Loyal² Digital²

1.4

4.4

2016 3M20

3.1x

0.9

3.4

3M202016

3.7x

Mobile²

5

Q1’20 Highlights

Santander, a leading financial group

Our Simple | Personal | Fair strategy is built around a virtuous circle based on loyalty

More motivated and engaged employees

Making our customers more satisfied and loyal

Resulting in higher investment in the

community

Driving profitability & sustainable growth

1,802,210Total assets (MXP, Million)

775,809Customer loans (MXP, Million)

810,340Customer deposits (MXP, Million)

Net income (MXP, Million)

ROAE (%)

5,414

15.48

Active customers (Million) 9.6

The best way to support our shareholders is to prioritize the health and safety of our employees, help our customers and communities, and ensure a profitable business continuity

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The Mexican banking sector2.

Regulatory structure

Sources: SHCP and Banxico. Data as of October, 2019.

1. Includes credit unions, brokerage houses, multiple purpose financial institutions (Sofomes), savings and loans cooperative societies (Socaps), popular financial societies (Sofipos), and others. 2. Includes total loans, securities and assets under management

Overview of the Mexican financial sectorThe Mexican financial sector enjoys a stable regulatory environment. Key players include +50 banks, of which 7 hold ~85% of loans and deposits, 10 pension fund managers, 31 mutual fund managers, 10 development banks and 113 insurance groups.

Market share of total assets2

Finance ministryBanco de MéxicoFederal Economic

Competition Commission

National Banking and Securities Commission

(CNBV)

National Commission for the Protection of Users of

Financial Services (CONDUSEF)

Institute for the Protection of Bank Deposits (IPAB)

National Insurance and Bonds Commission

(CNSF)

National Commission for the Pension System

(CONSAR)

47%

16%

12%

11%

7%

7%

Banking sector

DevelopmentBanks

Pension Fund Managers

Mutual FundManagers

Insurance Groups

Others¹

8

187161

16 27 33 35 43 62 63 6687

117

Source: World Bank, 2018.

Total assets by bank

A strong and well capitalized banking sector with substantial upside potentialThe country’s top 7 banks hold 85% of total loans and deposits. System loans and deposits have been growing above nominal GDP taking loans to the private sector to 35% of GDP from a minimum of 13% in 2001. Yet, credit penetration remains below LatAm average of 53%.

System loan and deposit growth

Credit penetration evolution1 Credit penetration vs. peers

2,5321,782

1,4151,293

847648

399

(MXP in billions)

(Credit to private sector as % of GDP) (Credit to private sector as % of GDP)

LatAm avg: 53%

10.5

13.3 13.211.5

8.4

4.5

12.310.3

14.612.9

9.4 9.3

4.3

9.9

7.46.2

8.3 9.07.3

3.1 1.6

2826

31

23

15

2119 16

1513

1515 151619 21 21 23 2325

2629 29

3234 3535

20

00

19

95

19

92

19

99

20

03

20

02

20

01

20

04

20

05

20

06

20

07

20

08

20

14

20

09

20

10

20

11

20

12

20

17

20

13

20

15

20

16

Source: World Bank, 2018.

Source: CNBV and INEGI, 1Q20.Source: CNBV, 1Q20.

2014 2015 2016 2017 2018 2019 1Q20

Deposits Loans(%)

19

93

19

94

19

96

19

97

19

98

20

18

Nominal GDP

1. Includes loans from Infonavit, Fovissste and other financial institutions.

9

Source: Press Release. Note: Balance sheet and income statement data as of March 31st, 2020 and for 1Q20, respectively. Proforma with additional provisions.

A dynamic banking sector with 7 key players

-20

-15

-10

-5

0

5

10

15

20

25

30

5 10 15 20 25 30

3M’20 ROAE (%)

Circle size represents loan portfolio sizeThe number inside the circle represents loan market share

Loan

gro

wth

YoY

(%

)

9.1%

Average G7 ROAE of 14.6%%

%

Average G7 loan growth of

• Business volumes grew significantly in March,as corporates tapped their committed lines ofcredit to have liquidity to face COVID-19’simpact on the economy

• Given current macro environment, consumerand SMEs loans have started to contract

• Note that the recent depreciation of theMexican peso contributed to a relevantincrease in the loan portfolio

• BBVA, Citi and Inbursa made additionalprovisions during 1Q20 in preparation forhigher delinquencies due to the COVID-19pandemic

23.2

13.4

13.4

12.5

7.4

7.7

4.6

10

Source: Financial Groups Press Release as of March 2020.

Loan and deposit growth vs peers

-0.1

0.3 1.2

-1.9

2.84.9

3.7

-1.7

3.0 2.33.8

-2.7

2.1

-3.0

10.07.8 8.7

2.3

7.3 7.86.1

1Q19 4Q19 1Q20

Total loan growth QoQ (%)

Deposit growth QoQ (%)

-2.5 -1.6

1.3

-2.9

4.51.4

3.1

-0.1

4.61.3 0.4

10.5

-2.5

1.9

9.1 9.4

17.0

5.7

-5.0

14.7

7.3

1Q19 4Q19 1Q20

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Banco Santander Mexico’s positioning within the banking sector

• BSMX is ranked in the top 4 across

deposits and loans

• Medium and long-term strategy is

focused on attracting more individual

customers, looking to increase

demand deposits to improve funding

costs

− Individual demand deposits

have grown 64% over the last

three-years, reflecting the

successful results from loyalty

campaigns

• Mortgages and payroll loans have also

been an important part of our strategy,

complementing our value-offer

proposition

Market share of deposits (%)

Total Demand Time

Market share of loans (%)

Total Businesses¹ Individuals² Mortgages

Others

14.1

22.6

14.3

13.2

7.8

6.5

3.1

18.4

13.7

26.3

17.5

11.7

7.4

4.5

3.9

14.9

15.0

15.0

7.9

16.2

8.7

10.5

1.3

25.5

13.4

23.2

12.5

13.4

7.4

7.7

4.6

17.8

13.4

21.0

11.7

12.7

7.9

6.9

5.6

20.8

10.8

28.6

18.0

11.2

6.2

4.2

4.2

16.9

16.7

25.9

9.3

18.9

7.2

15.2

0.6

6.2

3rd 3rd 2rd 3rd 2nd 4th 3rd

Source: CNBV. Notes: Data as of March 31st, 2020; 1.Includes SMEs, middle-market companies, corporates and government. 2. Includes credit cards, consumer loans, payroll loans, auto loans and other consumer loans.

12

Source: Press Release. Notes: Balance sheet and income statement data as of March 31st 2020 and 1Q20, respectively; net interest margin was calculated using productive assets; employees include outsourced;

Banco Santander Mexico’s positioning within the banking sector (cont’d)

G7 Avg

• BSMX’ higher cost of funding given less deposits from individuals

• 3rd in terms of ROAE

• Solid capitalization ratio well above regulatory requirements

• In terms of infrastructure, BSMX is ranked 4th in terms of branches and 3rd in terms of ATMs

Net interest margin (%)

Cost of funding (%)

Efficiency ratio (%)

Return on avg. equity (%)

Capitalization index (%)

Branches (units)

ATMs (units) Employees

4.6

6.1

10.1

5.9

4.6

4.4

10.1

3.8

1.7

1.9

3.0

3.8

4.6

6.2

44.0

36.6

56.7

38.9

54.3

53.4

29.1

16.2

15.1

13.5

19.0

13.0

12.9

18.7

1,211

1,864

1,465

1,178

948

754

822

9,096

13,066

9,519

9,090

5,561

1,617

5,151

19,638

37,167

24,068

29,801

15,832

12,538

11,346

6.5% 3.6% 44.7% 15.5% 1,177 7,586 21,484

15.5

22.1

10.3

18.5

12.0

11.6

12.1

14.6%

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Closer look at Banco Santander Mexico3.

A full service bankBSMX is positioned as an award-winning, full service bank with a nationwide presence and a leading position offering a broad range of products and services.

~40% of loans & depositsIndividuals

Retail Private banking Financial

Inclusion

• Deposits• Micro-credit• Micro-insurance• Debit cards• Financial

education

• Deposits• Consumer loans• Payroll loans• Mortgages• Credit and debit

cards• Auto loans• Insurance

products

• Custody• Trading accounts• Managed accounts• Investment funds• Portfolio-backed

loans• Insurance products

Businesses

SMEs Middle-market CIB

• Deposits• Loans• Payroll accounts• Insurance

products

• Deposits• Loans• Payroll accounts• Insurance

products

• Corporate & government loans

• Capital markets• M&A• Trade Finance

~60% of loans & deposits

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Highlights

SMEs and Middle-marketWe want to be the bank of choice for SMEs and Middle-market companies on every country we have presence in. As leaders in the SME and Middle-market segment in Mexico, we’re accelerating our digitalization by developing global payments and financial solutions for our customers.

Strategic priorities and recent events

We continue making relevant progress on developing our platforms

We acquired Elavon Mexico jointly with our parent’s Global Acquiring Platform

New software solutions for trade finance

Electronic transactional banking

Offering more insurance products

New digital solutions for SMEs

Alliance with Contpacqi

BET

Market leadership Biggest SME and Middle-market lender in Mexico

Our SME and Middle-market strategy is

building with global platforms, leveraging our

scale for efficiency and customer experience

Digital payment services as a driver of customer

engagement and loyalty

Internationalization

Digitalization

Training

Employment

Our programs support SME growth based on 4 pillars

Our aim is to transform our customer’s banking experience

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Support our customers along their transformation journey and contribute to the Group’s green finance public commitment

Highlights

Data as of 2019.

Santander corporate and investment bankingSCIB is a global business division for corporate and institutional customers who require a tailored service and value-added wholesale products suited to their complexity and sophistication.

Strategic priorities

9,951Total income (MXP, Million)

32%

11%25%

2%

12%

17%

1%

Total revenue breakdown

Leverage on our customer-centric model to drive greater penetration of our franchise and faster growth in retail

Strengthen our value proposition while delivering the exact same service quality across geographies

Continue the digital transformation to build the Digital Investment Bank

Market leadership Top-3 in M&A, Project Finance, ETDs, ECM, and Local DCM.

RRCC + ACPM

Markets

Global Transactional Banking

Loan book

Global Debt Financing

Investment Banking

Cash Equity + CED

17

Highlights

Note: Digital and mobile customers as of 1Q20. 1. Monetary transactions of individuals.

RetailThe trust and loyalty of our customers are the most important assets for Santander. In Mexico we have doubled the number of loyal customers, reaching a loyal-customer penetration of 34%, rising from 21% three years ago.

Strategic priorities

Creation of collectives

Medics, notaries, expats, airplane pilots, etc.

Multichannel and branch transformation

Broadening the business scope

Creation of the micro financing Tuiio and an auto loan business

Digital & mobile customers are engaging and transacting more

4.4 mnDigital customers

(+38% YoY)

4.2 mnMobile customers

(+51% YoY)

19%

Mar’19

16.5%

81%

92%

8%

Mar’20

25.4%

Mar’18

11.6%

62%

38%

Internet

Mobile

Digital Transactions / Total Transactions¹

3.3 mnLoyal customers

(+24% YoY)

34%Loyal/Active customers ratio

Santander Plus Hipoteca Plus

Launch of products that aim to increase customer loyalty…

… retain our customers and to serve them better

18

Highlights

Wealth managementOur aim is to become the best and most responsible wealth manager in Europe and the Americas.

Strategic priorities

Santander was recognized by Euromoney as the “Best private bank in Mexico” in 2019

• Single truly global Private Banking platform

• One global value proposition

• Global customers

• Executing the digital transformation

through the best products and services

~13,100Customers in Mexico

Market leadership

International presence in 10 key markets with 174 thousand customers around the world

Our customers are global, they receive Private Banking attention on any of our worldwide offices

~10,900~5,900

~5,600

~13,100

~16,900¹ ~4,300

~98,800

~11,700 Top 3 auto finance

~6,300

North America

South America

Europe

1) Includes US and Switzerland. Map data as of 2018.

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CNBV data as of March 31st 2020. Ranked by size.

Branches

• 1,211 branches, 46% under the new SmartRed format

• Ranked #4

Supported by a solid infrastructure and nationwide footprintBSMX is present nationwide, with Mexico City’s metropolitan area housing 26%, 23% and 24% of branches, ATMs and POS terminals, respectively. The South East region is the second in importance. Otherwise, infrastructure is fairly spread out among the remaining six regions.

ATMs

• 9,096 ATMs, 13% are last generation ATMs

• +70% of traditional ATMs have been renewed over the past 3 years

• Ranked #3

POS terminals

• BSMX completed the acquisition of themerchant payment solutions company,Elavon Mexico, jointly with its parentcompany’s Global Acquiring Platform

• Ranked #2

20

Source: Company filings under CNBV GAAP as of 1Q20. Notes: 1. Includes money market.

A well-diversified loan portfolio

7%

28%

16%12%

10%

20%

7%

ConsumerCredit Cards

Mortgages

Middle-Market

CorporatesGov&FinEnt

SMEs

Deposit breakdown Loan portfolio breakdown

Ps. 775,809 MM in total portfolio

Diversified loan portfolio (44% retail & 56% corporates) and healthy funding mix resources.

In 3M20, the Strong deposit growth was driven by corporates, favoringliquidity and deposit attraction strategies

1Q201Q19

463,941531,094

+14.5%

+11.7%Individuals

Corporate +15.6%

238,703

1Q19 1Q20

279,246

+17.0%

Individuals

Corporate

+4.3%

+23.7%

Demand Deposits

Term Deposits1

21

Focused strategyTo become the best commercial and retail bank in Mexico, BSMX aims to be client centric and its customers’ primary bank as well as a market leader in profitability. To that end, BSMX is pursuing a focused strategy:

demand deposit from individuals in order to

cost of funding in order to

profitability

• Provide a one-stop-shop solution

• Empower branch heads to manage their branches’ P&L and risk according to the needs and opportunities of each micro-market

• Transform customer journeys and experiences through innovation, digitalization, newly redesigned infrastructure, mobile and digital channels, data analytics, and an improved CRM to attract and retain individual customers

• Happy employees serve clients better

• Transform BSMX’s cultural architecture to become the bank where things get done

• This transformation will support the attraction and retention of top talent

• Increase loyal customers, which are 4x more profitable, as well as digital and mobile customers, which hold the highest future potential

• Maintain leadership in SMEs, mid-market, CIB and private banking

• Focus on strategic segments suchas mortgages and payroll loans

• Enter new high-potential markets

Increase

exposure to

individuals

Keep focus on high-potential

businesses

Enhance customer

experience

Transform the Bank’s culture

Improve branch management

Increase loyal and digital customers

22

Operational transformationOur three-year Investment plan has strengthened our franchise and positioned Santander to boost profitability and become more client-centric.

53%

33%

14%

Distribution Network Transformation +IT

Broaden Business Scope

• Structural transformation

• Digitalization of processes and services

• Technological catch-up

• Enhanced customer journey

• Loyalty programs and cross-selling

• Payroll attraction initiatives

• Data analytics

• Service quality enhancements

• Financial inclusion (TUIIO)

• Auto loans

• Leasing

• P+C Insurance

Client Attraction & Loyalty

15

bn

pe

sos

inve

stm

en

ts (2

01

7-2

01

9)

23

Highlights

Note: Digital and loyal customers as of 1Q20.

Technology, digitalization and loyaltyThe investments made in IT and digitalization over the past three years have enhanced the Bank’s ability to serve its customers through digital channels at a time when social distancing is required.

Customer focus

Digital customers are engaging and transacting more

Digital technology boosting financial access

4.4 mnDigital customers

(+38% YoY)25%

Digital transactions as % of total transactions (vs. 16.5% in March 19)

Availabilityanytime, anywhere, anyhow

Collaboration

Collaborative spaces & increased digital capabilities

Working in collaboration with fintechs and other tech companies

Santander smart and agile branches

Mis Metas and Santander Tap

Interactive VoiceResponse technology

BET, Getnet & Digital banking

Traditional banking

Digital banking

Branches, ATMs, retail agents,…

Internet, mobiles, tablets, smartphones and smart watches…

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Good progress on cultural transformation

52% 45%55%

% of employees

% of board members

December 2014 December 2019

Women Men

82%18%5%

The SPF culture is based on our 8 corporate behaviours…

40%How we do it

10%Risks

50%What we do

Our corporate management evaluation model

Improvement in diversity by genderOur culture

…and 4 leadership commitments

Our aim is to be an employer of choice, leveraging our SPF culture to retain and attract the best talent. BSMX remains as one of the top banks to work for in Mexico¹ and in 2019, employee engagement in Mexico rose to 90%².

1. Great Place to Work 2018. 2. Encuesta Compromiso 2019; 2015-2018 average of 82%. 3. Santander’s internal information.

Net promoter score (NPS)

• Happy employees serve clients better

• NPS: how likely are the employees to recommend Banco Santander to their family and friends?

• Ranked #4³

Our priority has been to protect the health and

safety of our employees as we quickly moved to

remote working

25

COVID-19

Board of directors

• Mrs. Laura Diez Barroso Azcárragareplaced Mr. Marcos Martínez as Chairman of BSMX’ Board of Directors

• 7 of 11 board members are independent

• Strong board committees in place

Strong corporate governance

Business ethics

• BSMX has developed a value-based, behavior-led culture with a focus on risk and strong tools to support it

Parent / Investors / Authorities

• The Bank follows best practices in its relationships with its parent company, investors and authorities

BSMX has strong local governance, which is reinforced with oversight from its parent company.

• Audit Committee

• Corporate Practices, Nominating,and Compensations Committee

• Comprehensive Risk ManagementCommittee (CAIR)

• Compensation Committee

• Code of Conduct

• Risk Management

• Cybersecurity and Money Laundering Prevention

• Personal Information Protection

• Corporate Governance Best Practices

• Access to information

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The risk model relies on Advanced risk management tools Risk culture

A clear Risk Strategy with well defined priorities

Common Risk Principles which are mandatory and must be applied at all times

3 lines of defense model with a robust structure of risk recommittees

Clearly defined management and control processes

The identification and assessment of the

various risks that it is exposed to

The amounts and type of risks considered prudent to assume

Analysis of impacts triggered by different

scenarios

Complete, precise and recurring information

Risk profile assessment

Risk appetite & structure of limits

Scenario Analysis

Risk Reporting Structure

Anticipating changes in the riskprofile & defining strategies tomitigate negative impacts is key topreserve our solid position, mainlyin terms of capital and liquidity

Our risk management andcontrol model is a key driver ofSantander’s contribution tosustainable economic growth

COVID-19

Risk management and controlSantander’s risk management and control model, specially under the current circumstances, is key to ensure that we remain a robust, safe and sustainable bank that helps people and businesses

27

Solid responsible banking performance

Part of the IPC Sustainability Index since 2013

Responsible bankingrecognition held since 2004

In line with the overarching goal of being the best bank, BSMX aims to earn the lasting loyalty of its stakeholders by contributing to their long-term social and economic progress while being mindful of its environmental impact.

Awards and recognitions

ISO 14001:2015 certification since 2004

HealthApp to make a self-diagnose of Covid-19 and localize hospitals’ availability

Santander Group has been recognized as the most sustainable bank in the world

Social responsibility

Students6,300 grants awarded in 2019

Most Socially Responsible Bank in Mexico for 2 years in a row

Environment12-year alliance with Reforestamos

Financial literacy55,300 people received financial education through Tuiio

28

Market share data as of December 2019 and the US and SCF latest available. The UK includes London Branch. Poland: including SCF business in Poland. The US: in all states where Santander Bank operates. Brazil: deposits including debenture, LCA (agro business notes), LCI (real estate credit notes), financial bills (letras financeiras) and COE (certificates of structured operations).

Our parent companyWe enable greater collaboration across the Group to generate higher revenue and efficiencies.

10% loans12% deposits

18% loans17% deposits

10% loans10% deposits

13% loans13% deposits

3% loans3% deposits

18% loans16% deposits

17% loans19% deposits

10% loans8% deposits

Top 3 auto finance

12% loans12% deposits

North America

South America

EuropeFocused on relevant global markets and building on relevant assets to accelerate growth

Accelerating digitalization by developing global solutionsWe maintain our leadership position in our 10 core markets

Santander Global Platform

IndividualsSMEs

Global Merchant Services

Global Trade

Services

Banking without a

bank

Global digital

banking

Super Digital

Our global scale allows us to learn best practices from differentgeographies, get the latest technology and leverage on our globalproducts to serve our clients better

29

Corporate structure

1. Contribution to Q1’20 underlying attributable profit as % of operating areas, excluding Corporate Centre and Santander Global Platform. Note: Other South America includes Uruguay, Peru and Colombia.

Our parent company (cont’d)Grupo Santander adds value to its subsidiaries, providing scale, governance and advise, but each subsidiary is independent in terms of capital and liquidity needs.

Subsidiary contribution to net profit¹

Grupo Santander

Grupo Financiero

Santander Mexico

Banco Santander

MexicoCasa de Bolsa

Santander Asset

Management

Mexico

Zurich Santander

Mexico S.A.

100% 8%92%

50% 100%100%

Free float

• On April 2019, the Group launched a public offer to acquire

the 25% minority stake of BSMX in exchange of shares from

the Santander Group

• As the result of the operation a free float of 8% remains

listed on the BMV and on NYSE.

12%

8%

5%

11%

5%

14%

Brazil

PortugalSpain

SCF

UK

2%

Argentina

Poland

US

Mexico

2%

Other South America

2%

Chile

29%10%

SouthAmerica

38%

Europe41%

NorthAmerica

21%

30

Summary of ratings

1. Long-term senior unsecured global notes due 2022. 2. Long term senior global notes due 2025. 3. Tier 2 subordinated capital notes due 2028. 4. Perpetual subordinated non-preferred contingent convertible additional tier 1 capital notes (AT1). 5. As of 1Q20. 6. Including short-term positions. 7. Including additional Tier 1 Capital Notes issued in December 2016.

Ratings and public issuancesDiversified funding sources and manageable maturity profile.

Debt maturity profile⁵

14,197

31,649

10,150

31,571

12,143⁷

>20282020 2021 2022 2026 2028

31,093⁶

• On April 14th, the bank issued U.S.$1.75 billion of senior notes due 2025

Bank’s LT global foreign curr.

Bank’s LT local

Outlook

Sr. notes due 2022¹

Sub. notes due 2025²

Sub. notes due 2028³

Perpetual notes⁴

BBB+

AAA(mex)

Negative

BBB+

BBB+

BBB-

BB

Baa1

Aaa.mx

Negative

Baa1

Baa1

Baa3

Ba1

Fitch Moody’s

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CET1

Data as of 1Q20.

Strong capital and liquidity positionCore capital well in excess of regulatory minimums and liquidity has been strengthened by the most recent issuance.

Liquidity coverage ratio

1.2%

8.2%

2.5%

11.1%

+540bps

Regulatory Minimum 1Q20

Capital conservation buffer (waived)

4.5%

CET1

+290bps

Systemic buffer

Minimum CET1 Ratio

100%

125%

Regulatory Minimum 1Q20

25% above regulatory minimum

• Core Capital well in excess of regulatory minimums • 1Q20 LCR of 125% in average and 136% by quarter end, well above 100% Banxico regulatory requirement

• Recent issuance of senior notes due 2025 will strengthen liquidity further; as of 1Q20 these resources were not included in the LCR

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Source: Santander’s 1Q20 Earnings Release.

Q1’20 Highlights

COVID-19

• The outbreak has caused an unprecedented worldwide health crisis; today’s financial system is more resilient and Banks are part of the solution to the current economic situation

• We have implemented operational resiliency and actions to ensure the health of our employees as well as support programs for individuals and SMEs

Growth

• New lending in the 1Q20 exceeded typical monthly levels, as corporates tapped their committed lines of credit in march and we made efforts to compensate deposits for loan growth

• Loan book up 12.2% YoY and deposits up 15.3% boosted by corporates, middle-market and government customers• Our digital products and services are being more important tan ever

Profitability• 1Q20 net profit was 5,414 million MXP, up 2.3% YoY and 10.1% sequentially, impacted by strategic investments,

lower interest rates and higher taxes• Improvement in efficiency while maintaining strong profit levels

Strength• Asset quality remained stable in Q1’20: NPL ratio of 2.16% and Cost of Risk of 2.65% • Strong capital and liquidity position, supported with recent issuance of U.S.$1.75 billion of senior notes due 2025

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Amounts in million Pesos except net income per share.

Volume growth 3M20

Loans 3M20 %YoY 12M19 12M18

Middle mkt. & corporates 336,400 20.5 281,121 273,198

SMEs 74,587 -4.7 76,344 77,389

Gov. & Fin. Ent. 93,697 19.1 87,165 79,775

Mortgage 155,214 8.4 151,929 141,649

Consumer 115,911 3.4 117,122 110,837

Total loans 775,809 12.2 713,680 682,848

Deposits Mar-20 %YoY Dic-19 Dic-18

Individuals 236,628 8.9 238,674 217,723

Corporates 573,712 18.2 453,863 476,089

Total deposits 810,340 15.3 692,537 693,812

• Business volumes grew significantly in March,as corporates tapped their committed lines ofcredit

• Deposits also grew significantly in March,mainly driven by our efforts to compensate forloan growth

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Amounts in million Pesos except net income per share.

Financial performance 3M20

Income Statement 3M20 %YoY 12M19 12M18

Net interest income 16,896 2.7 66,353 61,408

Fee and commission, net 4,697 6.1 18,028 16,832

Core revenues 21,593 3.4 84,381 78,240

Provisions for loan losses 5,165 19.6 18,112 17,751

Administrative and promotional expenses

9,785 5.7 38,865 35,294

Net income 5,414 2.3 21,332 19,584

Net income per share 0.80 2.1 3.14 2.89

Balance Sheet Mar-20 %YoY Dic-19 Dic-18

Total assets 1,802,210 38.2 1,411,994 1,381,570

Total loans 775,809 12.2 713,680 682,848

Deposits 810,340 15.3 692,537 693,812

Shareholders’ equity 141,041 6.6 138,695 125,693

Solid 1Q20 results with non-material impact from COVID-19 pandemic

• NII impacted by lower interest rates and lowmargin segments growth

• Asset quality remains healthy while provisionswere affected by internal model adoption

• Expenses and efficiency reflect amortization ofstrategic investments

• Net Income impacted by lower interest rates,higher non-recurrent provisions, and higher taxrate

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1. Includes cash desks (espacios select, box select and corner select) and SMEs business centers. Excluding brokerage house offices.

Financial performance 3M20 (cont’d)

Key Ratios 3M20 bps YoY 12M19 12M18

Net interest margin 5.45 (13) 5.61 5.47

Net loans to deposits ratio 92.94 (247) 99.95 95.38

ROAE 15.48 (92) 16.14 16.19

ROAA 1.35 (23) 1.53 1.45

Efficiency ratio 43.95 (86) 45.37 45.14

Capital ratio 16.23 (67) 16.37 15.91

NPLs ratio 2.16 1 2.28 2.36

Cost of Risk 2.65 (4) 2.60 2.72

Coverage ratio 135.17 401 132.02 131.16

Operating Data Mar-20 %YoY Dic-19 Dic-18

Branches 1,211 (0.2) 1,209 1,219

Branches and offices1 1,406 1.2 1,402 1,393

ATMs 9,096 6.9 9,015 8,384

Customers 18,374,959 7.9 18,134,468 16,690,063

Employees 19,638 1.8 19,975 18,979

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COVID-19 & key takeaways4.

COVID-19: How BSMX is contributing to tackle the outbreak

Since the beginning of the pandemic the Bank has been monitoring the situation and activated all of the protocols, including specific measures to support key stakeholders

(customers, shareholders, employees and communities)

We are taking a number of steps to protect and support our customers and society as a whole while our robust T&O has allowed us to continue running the Bank and servicing

our customer remotely with the highest standards

Strong Corporate Governance has been demonstrated with close coordination within corporate areas and across countries

Business activity indicators point towards expected deterioration but now it is too early to asses the full impact

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Employees Customers

Operational readiness for servicing customers through all digital channels and contact centers

Debtor Relief Program

Participation in Federal Program to Support Small Businesses

Zero Interest Payments in Credit Cards for 3 months for purchases at on-line supermarkets and 5 to 10 months on purchases at pharmacies, laboratories and hospitals

Bank’s health insurance products offer coverage for the COVID-19 pandemic

Established work-from-home protocols for business continuity

Critical personnel works remotely or split into teams working on alternative schedules or at alternate work sites

Branch employees are split into teams

• Sanitization measures and protection kits• Recoveries functionalities

Additional IT resources channeled into remote operating tools and cybersecurity

Medical assistance: AsisMed App and special support line for confidential counseling

COVID-19 Newsletter with relevant information

Webinars on health and wellbeing, online sport classes, meditation and nutrition

Working from home, 90% Critical, 10%

Employees

Branch, 55% Working from home, 45%

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Initiatives implemented to mitigate the COVID-19 pandemic

Branch employees working from…

1. Data as of 1Q20. Note: Consumer includes auto, personal and payroll loans.

Debt relief program received strong response from customers

Portfolio under support program

The portfolio under support program represents 16% of the total loan book accounting for Ps.122 Bn¹

• Aimed at customers with current loans as of Feb 28,2020. Registration ended on April 30th.

• Benefits:

− Grace period for up to 4 + 2 months

− Customers will not enter the credit bureau

− NPLs nor provisions will be affected during graceperiod

• Nearly 406,000 customers have registered into theprogram

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31%

8%Credit cards

46%

Mortgages

SMEs

Consumer15%

17%

31%

52%

36%

of loans under support program

of product’sloan book

Debtors support program for individuals and SMEs will not havean impact during the grace period neither on loan lossprovisions nor NPLs

Flexibility for using the capital conservation buffer of 2.5%without triggering any regulatory corrective measures

Banks allowed to fall below 100% of their Liquidity CoverageRatio (LCR) without consequences; volatility impact excludedfrom LCR

Recommendation to abstain from paying dividends andrepurchasing shares to enhance financial position

Santander will participate in Federal Program to Support smallbusinesses

10 actions to provide liquidity announced by Banxico

Government & Regulators Community

Launch of campaigns to encourage people to stay at homeand an appreciation campaign aimed at health professionals

#YoMeQuedoEnCasa#HéroesConBata

Santander launched a support website as a resource guide tohelp people and companies overcome the COVID-19 crisisand an App together with BBVA in Mexico to run COVID-19self-diagnosis

+ Ps.55 million from Santander Universidades programchanneled to support digital learning platforms atuniversities and scholarships for students

Launch of a fund to collect resources from employees to aidthose in need and the Bank will double the amount collected

Donation of vital signs monitors to the National Institute ofRespiratory Diseases

Esto lo superamos juntos

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Initiatives implemented to mitigate the COVID-19 pandemic

Key takeaways

Banco Santander Mexico is one of the leading banks in Mexico and it is positioned as an award-winning full service bank with a nationwide presence and a leading position in SMEs, middle-market and corporate and investment banking with significant potential to increase its exposure to individuals

The successful execution of our medium-term strategy and the MXP 15 billion investments made in IT and digitalization over the past three years have enhanced the Bank’s ability to serve its customers through digital channels at a time when social distancing is required nationwide, while advancing on its cultural transformation and maintaining strong corporate governance and social responsibility

Key priorities on the medium and long-term are centered on allowing us to expand our presence in the market:• attracting more individual customers • strengthening their loyalty to become their primary bank• broadening our business capabilities with more products such as auto lending, micro-finance, leasing and P&C insurance

Santander Mexico is well positioned against the current and growing impact of the pandemic, and the Bank is taking a number of steps to protect its key stakeholders, supporting its customers and society as the Bank’s agile and experienced management and operational teams, its conservative origination standards and prudent financial management have allowed the Bank to build a very strong balance sheet in recent years

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Links to Santander Mexico public materials5.

Links to Santander Mexico public materialsFor additional information on the Bank, please click on the images or icons below

Earnings release Earnings presentation Responsible banking

Fixed income

Follow us on:

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www.santander.com.mx/ir/home/

Investor Relations Webpage

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Thank you

Investor Relations Contact Héctor Chávez López Managing Director - IRO +52 55 5269 1925 hchavez@santander.com.mx

Investor Relations Team investor@santander.com.mx