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Grupo Financiero Santander Mexico Announces Approval of Capital Optimization Program

MEXICO CITY, Dec. 13, 2013 /PRNewswire/ -- Grupo Financiero Santander Mexico, S.A.B. de C.V. (BMV: SANMEX; NYSE: BSMX) ("Santander Mexico" or the "Company") one of the leading financial groups in Mexico, today announced that, in accordance with its previously announced capital optimization strategy, an Ordinary and Extraordinary General Shareholders Meeting was held, at which, among other items, Santander Mexico approved: i) advancing payment to its shareholders of the cash dividend from retained earnings in the amount of Ps.4,900 million, or Ps.0.72 per share, previously approved at its Shareholders' Meeting held on August 20, 2013, to December 27, 2013 from the original date of February 25, 2014; and ii) payment of a cash dividend from retained earnings to its shareholders in the total amount of Ps.12,000 million, or approximately Ps.1.77 per share, to be paid on December 27, 2013. Separately, an Ordinary and Extraordinary General Shareholders Meeting of its subsidiary Banco Santander (Mexico), S.A. Institucion de Banca Multiple, Grupo Financiero Santander Mexico was held, at which the Bank authorized the issuance of subordinated notes that comply with capital requirements under Basel III for Tier 2 capital in an aggregate amount of approximately U.S.$1,000 million, subject to market conditions and regulatory approvals.

As a result, on December 27, 2013 Santander Mexico will pay its shareholders a total dividend of Ps.16,900 million (approximately U.S.$1,300 million based on an exchange rate of 13.0). In 2014 and subsequently thereafter, the Company expects to continue its practice of paying annual dividends equivalent to 50% of its retained earnings, although dividend payments will ultimately be subject to annual earnings and shareholders' resolutions.

Banco Santander S.A. (Spain) has expressed its intention to purchase 75% of the debt issuance referenced above under market conditions and to ensure its complete subscription.

Upon consummation of these capital optimization initiatives, it is estimated that the Bank will maintain a Tier 1 capital ratio of at least 12% and a Tier 2 capital ratio of approximately 2.5%.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in the United States of America or any other jurisdiction in which such offer, solicitation or sale would be prohibited prior to registration or qualification under the securities laws of the United State or any such jurisdiction. The offering of debt securities described in this press release have not been registered under the United States Securities Act of 1933 or any applicable securities laws of any other jurisdiction. Without such registration, the securities described above may not be offered or sold in the United States or any other jurisdiction except pursuant to an exemption from the registration requirements of the Securities Act of 1933 or any applicable securities laws of such other jurisdiction.

About Grupo Financiero Santander Mexico
Grupo Financiero Santander Mexico, S.A.B. de C.V. (Santander Mexico), 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 Mexico 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 September 30, 2013, Santander Mexico had total assets of Ps.806.3 billion under Mexican GAAP and more than 10.6 million customers. Headquartered in Mexico City, the Company operates 991 branches and 238 offices nationwide and has a total of 13,883 employees.

 

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

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