Grupo Financiero Santander Mexicano Reports Net Income of P$1,154 Million (US$122 Million)

* Grupo Financiero Santander Mexicano ("GFSM") recorded net income of

P$1,154 million (US$122 million) for the three months ended March 31,

2001, increasing by 46.2% when compared with the previous quarter and

by 156.7% against the proforma combined figure for the same period in

2000.



* ROE was 29.1%, ratio which places GFSM among the most profitable banks

in the sector.



* The efficiency (cost-to-income) ratio reached 51.7%, 860 basis points

lower than the previous quarter and 1350 basis points lower as

compared with the same period a year ago.



* Total expenses decreased by 6.8% with respect to the prior quarter and

by 19.6% as compared with the combined expenses of the first quarter

2000, representing joint savings of P$489 million (US$51 million).



* Combined past due loans ratio reached 1.0% (2.6% excluding IPAB Note)

and the ratio of allowances for loan losses to past due loans was

489%; both ratios compare positively with the Mexican banking system

average.



* The "Plan de Saneamiento, Fortalecimiento y Capitalizacion" (The

cleaning, strengthening and capitalization Plan) was successfully

concluded, giving rise to a joint capitalization ratio of 14.4%. Both

Banca Serfin and Banco Santander Mexicano largely comply with the

banking rules that will become effective by year 2003.



Main Financial Indicators - First Quarter 2001



Banco Banca

Concept Santander Serfin Afore SM GFSM



Net Income (Millions) 292 714 112 1,154

ROE 33.4% 34.0% 50.8% 29.1%

Efficiency 55.7% 50.1% 33.8% 51.7%

NPL Ratio 0.9% 1.2% NA 1.0%

Coverage Ratio(1) 185% 660% NA 489%

Capitalization Ratio 15.2% 13.8% NA 14.4%

Market Share(2) 6.1% 7.8% 8.9% 13.8%



(1) Including IPAB note

(2) Retail deposits, in Banco Santander, Banca Serfin and GFSM; funds

under management in Afore SM



Note: All figures included in this report are based in the consolidated

financial statements of the respective entities at March 31, 2001, in

accordance with the accounting principles assigned by the Mexican governmental

authorities. All figures included in this report are presented in real terms

at purchasing prices of March 31, 2001. The growth rates are also presented in

real terms, after excluding inflation. The exchange rate for conversion of

pesos to US dollars was P$9.4933.



Grupo Financiero Santander Mexicano Reports Net Income of P$1,154 Million

(US$122 Million) For The First Quarter, 2001



Apr 17, 2001, 01:00 ET from Grupo Financiero Santander Mexicano

    MEXICO CITY, April 17 /PRNewswire/ -- Grupo Financiero Santander Mexicano
 (the "Grupo Financiero"), affiliate of Banco Santander Central Hispano
 ("BSCH"), announced today its results for the first quarter, 2001.
     Grupo Financiero began operations as a single entity in year 2001, after
 concluding the merger of the former Grupo Financiero Santander Mexicano with
 Grupo Financiero Serfin. Authorizations required for changing its name to
 Grupo Financiero Santander Serfin are currently under process, giving effect
 to a resolution of the Administration Meeting celebrated on January 17, 2001.
     During this period, Grupo Financiero achieved an extraordinary result,
 supported by the excellent performance of its subsidiaries, among which
 highlight Banco Santander Mexicano ("BSM"), Banca Serfin ("BS"), Afore
 Santander Mexicano ("Afore SM"), Casa de Bolsa Santander Mexicano ("CBSM"),
 Gestion Santander Mexico, Seguros Santander and Seguros Serfin ("SS").
 
     Financial Performance
     Grupo Financiero reported net income of P$1,154 million (US$122 million)
 for the three months ended March 31, 2001, increasing by 46.2% against the
 prior quarter and by 156.7% when compared to the proforma combined figures of
 the same period in 2000.
     During the first quarter of 2001, Grupo Financiero reached a 51.7%
 efficiency (cost-to-income) ratio, decreasing by 860 basis points when
 compared with the 64.7% ratio of the prior quarter, and by 1,350 basis points
 with respect to the same period a year ago. Grupo Financiero recorded an ROE
 of 29.1% for the first quarter of the year, placing itself among the most
 profitable institutions of the sector.
     These ratios place Grupo Financiero in a leadership position in the
 Mexican banking system and lead towards the objectives set by Banco Santander
 Central Hispano for its Mexican affiliate.
 
     The following table shows the main subsidiaries contribution:
 
                            Net Income by Subsidiary
                              (Pesos in millions)
 
     Subsidiary                                          1Q01
     Banco Santander Mexicano                             292
     Banca Serfin                                         714
     Afore Santander                                       84
     Casa de Bolsa Santander                               56
     Seguros Serfin                                        22
     Seguros Santander                                      4
     Factoraje Santander                                    6
     Gestion Santander                                      9
     Others                                              (33)
     Net Income                                         1,154
 
     The first quarter results confirm the positive evolution of Grupo
 Financiero in terms of income generation, as well as the continued process of
 expense optimization.
     Remarkable has been the 186% growth in income achieved by Grupo
 Financiero's banking subsidiaries, driven by both the strengthening of net
 interest income and the development of commissions.
     The Afore also contributes positively in this trend, increasing its
 commissions by 14.6% on an annual basis.
     Expense optimization has been one of the most relevant points of the
 management process, with the consequent improvement in efficiency. In addition
 to the P$2,171 million (US$228 million) in savings reached in the prior year,
 Grupo Financiero has improved its expenses level this quarter, with a 6.8%
 reduction as compared to the fourth quarter, 2000, and by 19.6% against the
 first quarter 2000, to P$489 million (US$51 million). At the end of first
 quarter of 2001 the Grupo Financiero close with 12,858 employees, figure 21%
 below the one registered in the first quarter,2000  .
     Also important in this process have been the efforts to get a more
 efficient building utilization, as well as the synergies achieved through the
 two banks.
     Grupo Financiero reached a past due loans ratio of 1.0% (2.6% excluding
 the IPAB note) and a ratio of allowances for loan losses to past due loans of
 489%. These ratios place the group as one of the entities with the best asset
 quality among the Mexican banking system.
     The estimated capitalization ratio of Banco Santander Mexicano and Banca
 Serfin was 15.2% and 13.8%, respectively, giving rise to a joint ratio of
 14.4%. Both banks are highly in line with the banking regulations that will
 become effective on 2003. These ratios reflect the effects of the Cleaning,
 Strengthening and Capitalization Plan (Plan de Saneamiento, Fortalecimiento y
 Capitalizacion), which is explained in a later section.
 
 
                    Main Business Items - First Quarter 2001
 
     Concept                         BSM (3)              BS          GFSM
     Total Assets                     89,054         112,750       200,229
     Total Deposits                   69,236          79,328       148,086
     Total Equity                      6,073           6,406        15,672
     Loan Portfolio exc IPAB          31,700          22,438        54,810
     Retail Deposits                  44,876          57,698       102,574
     Mutual Funds                     17,414           6,104        23,518
     Pension Funds                    15,810              NA        15,810
     Employees                         5,730           7,128        12,858
     Branches                            358             566           924
     Clients                         870,000       1,370,000     2,240,000
     ATM                                 481           1,186         1,667
     Credit Cards and Debits         746,000       1,476,000     2,222,000
 
     (3)  Includes the Afore
 
     Business Evolution
     Grupo Financiero maintains Banco Santander Mexicano and Banca Serfin
 commercial banking units under independent management. Both institutions have
 achieved important advances in business development during the quarter, which
 are widely explained in their corresponding sections, highlighting the
 following:
 
     *  Launching of the Internet web page. Both banks launched their internet
        web page, providing clients with access to their main banking
        transactions, granting a better service and transferring transactions
        to more efficient channels. Serfin's web page includes an aggregation
        service, becoming the first bank in Latin America to make available for
        clients to check their account balances and, in a short time, to make
        transfers among their accounts in other banks through Internet.
 
     *  Strengthening and adaptation of products. Santander Mexicano has
        tailored its line of products, launching new deposit such as Cuenta
        Multiple and Cuenta Inversion Santander. Serfin continues with the
        successful promotion of Maxicuenta Millonaria, reaching high averages
        in the opening of new accounts as well as with "Guardadito", through
        which it has been able to increase the number of active clients.
 
     *  Promotion of consumer and mortgage loans. Both banks continued with a
        strong promotion of their consumer loans. Santander Mexicano has
        focused on Credito Efectivo, Credito Hipotecario Santander and Tarjeta
        de Credito, achieving important advances in all cases. Serfin has
        focused in the credit card business, gathering an important volume of
        new accounts.
 
     *  Bank-assurance. Serfin has also achieved important advances in the sale
        of insurance policies through its branch network, multiplying by four
        the number of policies placed in the quarter as compared with year
        2000. Santander Mexicano also recorded significant advances in this
        line of business, consolidating the integrated bank-assurance operation
        as one of the most profitable of the sector.
 
     These important advances show how Grupo Financiero is positioning its
 banks as the most innovative of the Mexican system while setting the ground
 for a greater business generation capability, which will permit to gain market
 share in all the different sectors present.
 
 
     Units and Subsidiaries Integration
 
     The following events took place within the integration of units and
 subsidiaries:
 
     *  Merger of Brokerage Houses (Casas de Bolsa). The legal merger of Casa
        de Bolsa Santander Mexicano with Operadora de Bolsa Serfin was executed
        on January 31st, 2001, prevailing the first. The integration of this
        business has resulted in the first brokerage house by client's accounts
        in the Mexican market.
 
     *  Merger of Factoring and Insurance companies. Factoraje Serfin merged
        with Factoring Santander Mexicano on February 28th, 2001,and the merger
        of the insurance companies is expected to conclude soon.
 
     *  Technological integration (Altair). The migration of the Architecture,
        Accounting and Clients modules has concluded in Banco Santander
        Mexicano and, as planned for the second stage which will take the
        second half of the year, Banca Serfin will then migrate to this
        platform. This will allow both banks to operate under an unique systems
        platform before year end, both in central services as well as in the
        branch network.
 
     *  Back Office integration.  The units in charge of operations of both
        banks are in the integration process that will be concluded by year
        end.
 
     *  Physical Integration of the Central Services and Staff. The Central
        Services and Staff are already located in one corporate building that
        is the one for both banks.
 
     Cleaning, Strengthening and Capitalization Plan ("Plan de Saneamiento,
 Fortalecimiento y Capitalizacion")
 
     Grupo Financiero Santander Mexicano has concluded Cleaning, Strengthening
 and Capitalization Plan derived from the acquisition of Grupo Financiero
 Serfin, announced in its fourth quarter report. This plan's objective was to
 strengthen the balance sheet of Grupo Financiero and all its subsidiaries
 adequeting them to Banco Santander Central Hispano standards.
     The plan includes a cash capital contribution of P$3,330 million and a
 cleaning process amounting to P$7,797 million. This cleaning process takes
 account of the commercial and mortgage loan portfolios, repossessed assets,
 securities portfolios, contingencies related to pension funds, real estate
 restatements and the restructuring and technological adaptation costs.
     As result of this plan, Grupo Financiero will position itself as one of
 the financial entities with the best asset quality of the system, with enough
 capital to continue with the aggressive growth goals established by Banco
 Santander Central Hispano in Mexico.
     The purchase process for the acquisition of Grupo Financiero Serfin with
 the IPAB was concluded, maintaining the same original conditions as announced
 in May 2000.
 
     Grupo Financiero Santander Mexicano and Banco Santander Central Hispano
 S.A.
 
     Grupo Financiero Santander Mexicano is the third largest financial group
 in Mexico, after the acquisition of Grupo Financiero Serfin. As of December
 31, 2000, the Group has a combined network of 929 branches and 1,676 ATMs,
 predominantly in Mexico D.F., Guadalajara and Monterrey, and 13,200 employees.
 The Group engages in the businesses of commercial banking, corporate banking,
 asset management, and investment banking and securities brokerage, through its
 different subsidiaries. It also takes part in the retirement funds
 administration sector, through Afore Santander Mexicano.
 
     Banco Santander Central Hispano - Leading Financial Group in Latin America
     Banco Santander Central Hispano ("BSCH") is the leading financial group in
 Latin America, with a policy of combining global balance sheet strength with
 local management and regional training. Founded in 1857, the Group has a long
 connection with Latin America and a firm commitment that is reflected in the
 US$15 billion invested in the region to date.
     The Group is present in 12 countries representing 98% of the region's GDP:
 Argentina, Bolivia, Brazil, Colombia, Chile, Mexico, Panama, Paraguay, Peru,
 Puerto Rico, Uruguay and Venezuela. The franchise comprises 17 banks, 9
 pension fund managers, 12 mutual funds, 10 insurance companies, 12 brokerages
 and 9 leasing and factoring companies. In all, it has 23 million customers in
 the region and more than 4,600 offices.
     According to latest available data, at the end of December 31, 2000, total
 assets in the region came to US$115 billion. Santander Central Hispano was
 managing a total of US$85.3 billion in savings of Latin American citizens,
 between deposits, mutual funds and pension funds, giving a market share of
 10%. The Group's rigorous risk policy has enabled its non-performing loan
 ratio in the region to stay well below the average for the sector.
 
     Banco Santander Central Hispano Worldwide
     Banco Santander Central Hispano is the leading financial group in Spain
 and Latin America, the third largest by market capitalization in the Euro Zone
 and among the fifteenth largest in the world. BSCH offers a wide range of
 commercial and consumer banking services in Europe and Latin America,
 providing services to 36 million customers through more than 10,800 offices
 and 125,000 employees in 42 countries. As of December 31, 2000, it had more
 than US$324 billion in assets and US$407 billion in total managed funds.
     Management philosophy is focused on creating value for shareholders
 through a model of personalized banking services combined with rigorous
 standards of productivity and efficiency
     In addition to its leading role in Latin America, the Group has
 established important alliances in Europe with leading banks: The Royal Bank
 of Scotland in the UK, Societe Generale in France, San Paolo-IMI in Italy and
 Commerzbank in Germany. It also has subsidiaries in Germany and Portugal as
 well as offices in Africa, Asia and Australia.
 
     Santander Central Hispano is a world leader in mutual and investment
 funds, and is among the most active banks in Internet banking and in
 developing New Economy projects. By December 31, 2000 it had more than
 1,200,000 web customers.
 
 
                      Grupo Financiero Santander Mexicano
                           Consolidated Balance Sheet
                    Constant pesos in millions of March 2001
 
                         Grupo Financiero Santander Mexicano    Consolidated
                                  excluding GFSerfin           with GFSerfin
                                                      2000     2000     2001
                           Mar.     Jun.     Sep.     Dec.     Dec.     Mar.
      Assets
 
      Funds available       9,352   12,801   15,568   20,665   34,199   27,097
 
      Financial
       instruments          8,296   10,704   18,357   18,970   32,489   29,200
      Securities,
       tradeable            5,020    7,895   11,047    9,868   11,367    7,438
      Securities,
       available for sale       1        1    2,956    3,990    5,508    7,523
      Securities, held
       until maturity       3,275    2,808    4,354    5,113   15,614   14,239
 
      Securities and
       derivative
       operations             280      150      283      442      522      641
      Forward contracts
       receivable               0        0        0        0        0        0
      Securities
       receivable on loan
       transactions             1        0        0        0        0        0
      Derivative
       instruments            279      150      283      442      522      641
 
      Current loan
       portfolio
      Commercial loans     10,696   13,277   14,281   14,607   23,439   22,306
      Loans to financial
       intermediaries         148      116      114       13      310       10
      Consumer loans          427      444      492      680    2,351    2,351
      Housing loans         2,590    2,524    2,472    2,509   10,337   10,016
      Government loans      9,821   11,044   11,603   11,777   17,931   18,695
      Loans without IPAB   23,683   27,405   28,963   29,587   54,368   53,378
      IPAB                 29,436   29,194   28,106   27,575   86,404   83,326
      Total current loan
       portfolio           53,119   56,600   57,069   57,162  140,772  136,704
 
      Past due loan
       portfolio
      Commercial loans        290      257      327      362      802    1,136
      Loans to financial
       intermediaries           0        0        0        0       11       11
      Consumer loans           41       42       48       33       91      101
      Housing loans           296      169      182      138      367      184
      Government loans          0        0        0        0        1        1
      Total past due loan
       portfolio              626      468      557      533    1,272    1,433
 
      Total loan
       portfolio           53,745   57,067   57,626   57,695  142,044  138,137
 
      Allowance for loan
       losses (-)          (1,222)  (1,053)  (1,044)    (990)  (5,643)  (7,010)
      Loan portfolio, net  52,523   56,015   56,582   56,705  136,401  131,126
 
      Other receivables,
       net                    641      621      652    1,313    2,368    2,418
      Property, furniture
       and fixtures, net    2,977    2,871    2,735    2,624    6,248    5,794
      Foreclosed assets       190      166      150      132      505      500
      Long-term
       investment in
       equity securities      642      640      501      511    1,478    1,538
      Deferred taxes          137      127      119      118    1,717    1,042
      Other assets,
       deferred charges
       and intangibles        554      522      538      767    8,684      875
 
      Total Assets         75,593   84,617   95,486  102,247  224,611  200,230
 
      Liabilities stockholders' equity
      Funding              58,230   65,416   68,085   66,061  143,150  148,086
      Demand deposits      15,180   16,251   15,455   16,215   44,747   42,926
      Time deposits        40,375   44,396   47,807   46,789   90,540   97,295
      Bank bonds
       outstanding          2,676    4,769    4,823    3,057    7,863    7,866
 
      Bank and other
       loans                5,654    7,548   13,971   20,386   44,095   24,297
      Call loans            1,334      257   10,102      184   16,495    5,414
      Short-term loans      3,026    5,945    2,949   19,392   19,143   10,243
      Long-term loans       1,294    1,346      920      809    8,457    8,640
 
      Securities and
       derivative
       operations             703      376      648      954    1,087      848
      Repurchase
       agreements             663      344      378      344      375      458
      Operations which
       represent a
       collateral loan          0        0        0        0       75        0
      Securities
       deliverable under
       loan transactions        1        0        0      341      342      153
      Derivative
       instruments             40       32      270      270      294      238
 
      Other payables        2,968    3,122    4,267    5,895   11,044   10,968
      Income taxes and
       employee profit
       sharing                 39      128       81       54      846      872
      Sundry creditors
       and other payables   2,929    2,993    4,185    5,841   10,198   10,096
 
      Deferred taxes            0        0        0        0        0        0
      Deferred credits        221      196      285      358      358      359
 
      Total Liabilities    67,776   76,658   87,256   93,654  199,734  184,558
 
      Paid-in capital      15,248   15,248   10,400   10,637   25,484   28,834
      Capital stock        12,521   12,521    7,550    7,550    7,550   17,791
      Additional paid-in
       capital                  0        0        0        0        0    8,450
      Mandatory
       convertible
       subordinated
       debentures           2,727    2,727    2,680    2,574    2,574    2,593
      Increase in capital
       stock pending to
       formalize                0        0      170      513   15,360        0
 
      Capital gains        (7,432)  (7,288)  (2,170)  (2,044)    (607) (13,162)
      Capital reserves         75       75       75       75       75       78
      Accumulated losses   (4,319)  (4,319)     652      652      652  (10,479)
      Surplus (deficit)
       from valuation of
       securities
       available for sale       0        0        0        0        0        0
      Results from
       translation of
       foreign operations       0        0        0        0        0        0
      Cumulative effect
       of restatement      (3,525)  (3,439)  (3,302)  (4,277)  (3,836)  (4,109)
      Results from the
       holding of non
       monetary assets       (280)    (451)    (757)       0        0        0
      Due to fixed assets
       valuation                0        0        0        0        0        0
      Mark - to- market
       of long term
       investments in
       equity securities     (280)    (451)    (757)       0        0        0
      Adjustments due to
       retirement
       benefits
       obligations              0        0        0        0        0        0
      Net income              353      570      846    1,179    2,172    1,154
      Minority interest       264      275      315      327      330      194
 
      Total stockholders'
       equity               7,816    7,960    8,230    8,594   24,876   15,672
 
      Liabilities &
       stockholders'
       equity              75,593   84,617   95,486  102,247  224,611  200,230
 
      Memorandum accounts
      Customer current
       accounts               126       33      104       22   13,435       74
      Customer cash
       balances                 3        2        2        1   13,347       24
      Investment banking
       operations on
       behalf of third
       parties, net             0        0        0        0        0        0
      Margin accounts of
       futures
       transactions             0        0        0        0       41        0
      Other current
       accounts                 0        0        0        0       26        0
      Customer
       transaction
       settlements            123       31      101       21       21       50
 
      Customer securities  66,787   56,655   58,380   51,473   97,951  124,705
      Customer securities
       held  in custody    64,927   55,133   56,687   49,834   95,645  122,563
      Securities and
       documents held  in
       guaranty             1,860    1,522    1,694    1,639    2,305    2,142
 
      Transactions on
       behalf of
       customers              489      350      389      297   18,296      778
      Customer repurchase
       and resale
       agreements               0        0        0        0   16,940        0
      Purchase
       transactions
       (option prices)          0        0        0        0      198      778
      Customer derivative
       instruments            489      350      389      297      297        0
      Block purchases of
       derivative
       instruments              0        0        0        0      517        0
      Block sales of
       derivative
       instruments              0        0        0        0      344        0
 
      Operation on behalf
       third parties       67,401   57,039   58,873   51,792  129,682  125,557
 
      Own operations      286,961  322,166  328,162  325,246  455,476  456,226
      Guarantees granted        5        5        4        4       66       64
      Other contingent
       obligations          1,950    1,342    1,359    1,395   15,188    3,848
      Irrevocable lines
       of credit granted    1,287    1,491    1,537    2,273    2,487    1,978
      Goods in trust or
       mandate             51,528   52,324   51,909   52,291   92,823   91,972
      Goods in custody or
       administration     149,722  174,389  181,864  180,215  206,309  246,530
      FOBAPROA operations
       - committed
       amounts              2,403    2,495    2,727    2,808    9,607    8,196
      Loan portfolio
       classification           0        0        0        0        0        0
      Letters of credit
       delivered in
       guaranty                 0        0        0        0        0        0
      Certificates of
       deposits in
       circulation              0        0        0        0        0       21
      Securities
       delivered in
       custody             77,065   87,889   86,346   84,362   85,444  101,705
      Securities
       delivered in
       guaranty             3,001    2,231    2,415    1,899    2,014    1,912
      Own government sec.
       deposited in
       custody                  0        0        0        0        3        0
      Liquidation with
       own foreign
       currency abroad          0        0        0        0        0        0
      Derivative
       instruments              0        0        0        0   41,536        0
 
      Repurchase
       agreements
      Reselling party
      Securities
       receivable under
       resale agreements   53,181   55,205   51,190   53,696   73,454   78,594
      (Less) Resale
       agreements          53,780   55,495   51,491   53,947   73,836   79,186
      Net                    (598)    (290)    (301)    (250)    (381)    (592)
 
      Repurchasing party
      Repurchase
       agreements           5,062    9,338    9,230    9,227    9,276   13,234
      (Less) Securities
       deliverable under
       repurchase
       agreements           5,126    9,393    9,307    9,320    9,270   13,100
      Net                     (64)     (54)     (77)     (93)       6      134
 
      Total own
       operations         286,298  321,823  327,784  324,902  455,101  455,769
 
                            Banco Santander Mexicano
                           Consolidated Balance Sheet
                    Constant pesos in millions of March 2001
 
                                                                 2000     2001
                                       Mar.     Jun.     Sep.    Dec.      Mar.
      Assets
 
      Funds available                9,352   12,801   15,568   20,665   13,313
 
      Financial instruments          7,693   10,023   17,709   18,375   13,074
      Securities, tradeable          4,417    7,214   10,399    9,273    3,070
      Securities, available for
       sale                              1        1    2,956    3,990    5,399
      Securities, held until
       maturity                      3,275    2,808    4,354    5,113    4,605
 
      Securities and derivative
       operations                      221       89      220      376      396
      Resale agreements                  0        0        0        0        0
      Derivative instruments           221       89      220      376      396
 
      Current loan portfolio
      Commercial loans              10,523   13,063   13,951   14,040   15,722
      Loans to financial
       intermediaries                  234      213      243      190      188
      Consumer loans                   427      444      492      680      795
      Housing loans                  2,590    2,524    2,472    2,509    2,424
      Government loans               9,821   11,044   11,603   11,777   12,571
      Loans without IPAB            23,595   27,288   28,762   29,197   31,700
      IPAB                          29,436   29,194   28,106   27,575   27,059
      Total current portfolio       53,032   56,483   56,868   56,772   58,759
 
      Past due loan portfolio
      Commercial loans                 284      256      327      362      359
      Loans to financial
       intermediaries                    0        0        0        0        0
      Consumer loans                    41       42       48       33       30
      Housing loans                    296      169      182      138      125
      Government loans                   0        0        0        0        0
      Total past due loan
       portfolio                       621      467      557      533      514
 
      Total loan portfolio          53,652   56,950   57,424   57,305   59,273
 
      Allowance for loan losses     (1,216)  (1,052)  (1,043)    (990)    (954)
      Loan portfolio, net           52,436   55,898   56,381   56,315   58,319
 
      Other receivables, net           566      604      611    1,250      898
      Foreclosed assets              2,762    2,658    2,524    2,415    2,311
      Property, furniture and
       fixtures, net                   190      166      149      132      136
      Long-term investment in
       equity securities               422      430      333      355      359
      Deferred taxes                   171      153      145      163        0
      Other assets                     274      238      246      250      249
 
      Total Assets                  74,087   83,059   93,885  100,295   89,055
 
      Liabilities & stockholders' equity
      Funding                       58,234   65,421   68,095   66,074   69,237
      Demand deposits               15,183   16,256   15,465   16,229   15,311
      Time deposits                 40,375   44,396   47,807   46,789   50,776
      Bank bonds outstanding         2,676    4,769    4,823    3,057    3,150
 
      Bank and other loans           5,622    7,507   13,849   20,032    7,381
      Call loans                     1,334      257   10,102      184    1,234
      Short-term                     2,994    5,904    2,827   19,038    5,572
      Long-term                      1,294    1,346      920      809      574
 
      Securities and derivative
       operations                      703      364      648      957      711
      Repurchase agreements            662      332      377      346      349
      Securities deliberable under
       loan transactions                 0        0        0      341      153
      Derivative instruments            40       32      270      270      209
 
      Other payables                 2,797    2,894    4,078    5,712    4,745
      Income taxes and employee
       profit sharing                   13       49       32       30       86
      Sundry creditors and other
       payables                      2,783    2,845    4,046    5,681    4,658
 
      Deferred taxes                     0        0        0        0      549
      Deferred credits                 221      196      285      358      359
 
      Total liabilities             67,576   76,382   86,955   93,133   82,981
 
      Paid-in capital               12,405   12,441   12,374   12,307   12,306
      Capital stock                 10,037   10,037   10,037   10,037   10,037
      Additional paid-in capital       174      174      174      174      174
      Mandatory convertible
       subordinated debentures       2,194    2,230    2,163    2,096    2,095
 
      Capital gains                 (5,894)  (5,764)  (5,444)  (5,145)  (6,233)
      Capital reserves                 708      708      711      711      786
      Accumulated losses            (7,621)  (8,031)  (7,941)  (7,949)  (8,316)
      Surplus (deficit) from
       valuation of securities
       available for sale             (246)      (0)       1        1       16
      Results from translation of
       foreign operations                0        0        0        0        0
      Cumulative effect of
       restatement                     714      852      772      714      714
      Results from the holding of
       non monetary assets             (32)     (46)     (63)       0        0
      Due to fixed assets
       valuation                         0        0        0        0        0
      Mark - to- market of long
       term investments in equity
       securities                      (32)     (46)     (63)       0        0
      Adjustments due to
       retirement benefits
       obligation                        0        0        0        0        0
      Net income                       320      479      762    1,052      376
      Minority interest                264      275      315      327      191
 
      Total stockholders' equity     6,511    6,677    6,930    7,162    6,073
 
      Liabilities & stockholders'
       equity                       74,087   83,059   93,885  100,295   89,055
 
      Memorandum accounts
      Guarantees granted                 5        5        4        4        3
      Other contingent obligations   1,349    1,330    1,308    1,345    1,960
      Irrevocable lines of credit
       granted                       1,287    1,491    1,537    2,273    1,831
      Goods in trust or mandate     51,528   52,324   51,909   52,291   50,706
      Goods in custody or
       administration              149,270  173,885  181,243  179,315  233,463
      FOBAPROA operations -
       committed amounts             2,403    2,495    2,727    2,808    3,192
 
      Securities receivable under
       resale agreements            48,574   39,970   41,990   42,414   45,715
      (Less) Resale agreements      49,167   40,226   42,273   42,614   45,951
      Net                             (594)    (256)    (283)    (200)    (236)
 
      (Less) Securities
       deliverable under
       repurchase agreements         4,549    9,421    9,216    8,627   15,368
      Repurchase agreements          4,481    9,345    9,121    8,481   15,255
      Net                               69      (76)     (94)    (146)    (113)
      Total memorandum accounts    205,318  231,199  238,350  237,689  290,806
 
 

SOURCE Grupo Financiero Santander Mexicano
    MEXICO CITY, April 17 /PRNewswire/ -- Grupo Financiero Santander Mexicano
 (the "Grupo Financiero"), affiliate of Banco Santander Central Hispano
 ("BSCH"), announced today its results for the first quarter, 2001.
     Grupo Financiero began operations as a single entity in year 2001, after
 concluding the merger of the former Grupo Financiero Santander Mexicano with
 Grupo Financiero Serfin. Authorizations required for changing its name to
 Grupo Financiero Santander Serfin are currently under process, giving effect
 to a resolution of the Administration Meeting celebrated on January 17, 2001.
     During this period, Grupo Financiero achieved an extraordinary result,
 supported by the excellent performance of its subsidiaries, among which
 highlight Banco Santander Mexicano ("BSM"), Banca Serfin ("BS"), Afore
 Santander Mexicano ("Afore SM"), Casa de Bolsa Santander Mexicano ("CBSM"),
 Gestion Santander Mexico, Seguros Santander and Seguros Serfin ("SS").
 
     Financial Performance
     Grupo Financiero reported net income of P$1,154 million (US$122 million)
 for the three months ended March 31, 2001, increasing by 46.2% against the
 prior quarter and by 156.7% when compared to the proforma combined figures of
 the same period in 2000.
     During the first quarter of 2001, Grupo Financiero reached a 51.7%
 efficiency (cost-to-income) ratio, decreasing by 860 basis points when
 compared with the 64.7% ratio of the prior quarter, and by 1,350 basis points
 with respect to the same period a year ago. Grupo Financiero recorded an ROE
 of 29.1% for the first quarter of the year, placing itself among the most
 profitable institutions of the sector.
     These ratios place Grupo Financiero in a leadership position in the
 Mexican banking system and lead towards the objectives set by Banco Santander
 Central Hispano for its Mexican affiliate.
 
     The following table shows the main subsidiaries contribution:
 
                            Net Income by Subsidiary
                              (Pesos in millions)
 
     Subsidiary                                          1Q01
     Banco Santander Mexicano                             292
     Banca Serfin                                         714
     Afore Santander                                       84
     Casa de Bolsa Santander                               56
     Seguros Serfin                                        22
     Seguros Santander                                      4
     Factoraje Santander                                    6
     Gestion Santander                                      9
     Others                                              (33)
     Net Income                                         1,154
 
     The first quarter results confirm the positive evolution of Grupo
 Financiero in terms of income generation, as well as the continued process of
 expense optimization.
     Remarkable has been the 186% growth in income achieved by Grupo
 Financiero's banking subsidiaries, driven by both the strengthening of net
 interest income and the development of commissions.
     The Afore also contributes positively in this trend, increasing its
 commissions by 14.6% on an annual basis.
     Expense optimization has been one of the most relevant points of the
 management process, with the consequent improvement in efficiency. In addition
 to the P$2,171 million (US$228 million) in savings reached in the prior year,
 Grupo Financiero has improved its expenses level this quarter, with a 6.8%
 reduction as compared to the fourth quarter, 2000, and by 19.6% against the
 first quarter 2000, to P$489 million (US$51 million). At the end of first
 quarter of 2001 the Grupo Financiero close with 12,858 employees, figure 21%
 below the one registered in the first quarter,2000  .
     Also important in this process have been the efforts to get a more
 efficient building utilization, as well as the synergies achieved through the
 two banks.
     Grupo Financiero reached a past due loans ratio of 1.0% (2.6% excluding
 the IPAB note) and a ratio of allowances for loan losses to past due loans of
 489%. These ratios place the group as one of the entities with the best asset
 quality among the Mexican banking system.
     The estimated capitalization ratio of Banco Santander Mexicano and Banca
 Serfin was 15.2% and 13.8%, respectively, giving rise to a joint ratio of
 14.4%. Both banks are highly in line with the banking regulations that will
 become effective on 2003. These ratios reflect the effects of the Cleaning,
 Strengthening and Capitalization Plan (Plan de Saneamiento, Fortalecimiento y
 Capitalizacion), which is explained in a later section.
 
 
                    Main Business Items - First Quarter 2001
 
     Concept                         BSM (3)              BS          GFSM
     Total Assets                     89,054         112,750       200,229
     Total Deposits                   69,236          79,328       148,086
     Total Equity                      6,073           6,406        15,672
     Loan Portfolio exc IPAB          31,700          22,438        54,810
     Retail Deposits                  44,876          57,698       102,574
     Mutual Funds                     17,414           6,104        23,518
     Pension Funds                    15,810              NA        15,810
     Employees                         5,730           7,128        12,858
     Branches                            358             566           924
     Clients                         870,000       1,370,000     2,240,000
     ATM                                 481           1,186         1,667
     Credit Cards and Debits         746,000       1,476,000     2,222,000
 
     (3)  Includes the Afore
 
     Business Evolution
     Grupo Financiero maintains Banco Santander Mexicano and Banca Serfin
 commercial banking units under independent management. Both institutions have
 achieved important advances in business development during the quarter, which
 are widely explained in their corresponding sections, highlighting the
 following:
 
     *  Launching of the Internet web page. Both banks launched their internet
        web page, providing clients with access to their main banking
        transactions, granting a better service and transferring transactions
        to more efficient channels. Serfin's web page includes an aggregation
        service, becoming the first bank in Latin America to make available for
        clients to check their account balances and, in a short time, to make
        transfers among their accounts in other banks through Internet.
 
     *  Strengthening and adaptation of products. Santander Mexicano has
        tailored its line of products, launching new deposit such as Cuenta
        Multiple and Cuenta Inversion Santander. Serfin continues with the
        successful promotion of Maxicuenta Millonaria, reaching high averages
        in the opening of new accounts as well as with "Guardadito", through
        which it has been able to increase the number of active clients.
 
     *  Promotion of consumer and mortgage loans. Both banks continued with a
        strong promotion of their consumer loans. Santander Mexicano has
        focused on Credito Efectivo, Credito Hipotecario Santander and Tarjeta
        de Credito, achieving important advances in all cases. Serfin has
        focused in the credit card business, gathering an important volume of
        new accounts.
 
     *  Bank-assurance. Serfin has also achieved important advances in the sale
        of insurance policies through its branch network, multiplying by four
        the number of policies placed in the quarter as compared with year
        2000. Santander Mexicano also recorded significant advances in this
        line of business, consolidating the integrated bank-assurance operation
        as one of the most profitable of the sector.
 
     These important advances show how Grupo Financiero is positioning its
 banks as the most innovative of the Mexican system while setting the ground
 for a greater business generation capability, which will permit to gain market
 share in all the different sectors present.
 
 
     Units and Subsidiaries Integration
 
     The following events took place within the integration of units and
 subsidiaries:
 
     *  Merger of Brokerage Houses (Casas de Bolsa). The legal merger of Casa
        de Bolsa Santander Mexicano with Operadora de Bolsa Serfin was executed
        on January 31st, 2001, prevailing the first. The integration of this
        business has resulted in the first brokerage house by client's accounts
        in the Mexican market.
 
     *  Merger of Factoring and Insurance companies. Factoraje Serfin merged
        with Factoring Santander Mexicano on February 28th, 2001,and the merger
        of the insurance companies is expected to conclude soon.
 
     *  Technological integration (Altair). The migration of the Architecture,
        Accounting and Clients modules has concluded in Banco Santander
        Mexicano and, as planned for the second stage which will take the
        second half of the year, Banca Serfin will then migrate to this
        platform. This will allow both banks to operate under an unique systems
        platform before year end, both in central services as well as in the
        branch network.
 
     *  Back Office integration.  The units in charge of operations of both
        banks are in the integration process that will be concluded by year
        end.
 
     *  Physical Integration of the Central Services and Staff. The Central
        Services and Staff are already located in one corporate building that
        is the one for both banks.
 
     Cleaning, Strengthening and Capitalization Plan ("Plan de Saneamiento,
 Fortalecimiento y Capitalizacion")
 
     Grupo Financiero Santander Mexicano has concluded Cleaning, Strengthening
 and Capitalization Plan derived from the acquisition of Grupo Financiero
 Serfin, announced in its fourth quarter report. This plan's objective was to
 strengthen the balance sheet of Grupo Financiero and all its subsidiaries
 adequeting them to Banco Santander Central Hispano standards.
     The plan includes a cash capital contribution of P$3,330 million and a
 cleaning process amounting to P$7,797 million. This cleaning process takes
 account of the commercial and mortgage loan portfolios, repossessed assets,
 securities portfolios, contingencies related to pension funds, real estate
 restatements and the restructuring and technological adaptation costs.
     As result of this plan, Grupo Financiero will position itself as one of
 the financial entities with the best asset quality of the system, with enough
 capital to continue with the aggressive growth goals established by Banco
 Santander Central Hispano in Mexico.
     The purchase process for the acquisition of Grupo Financiero Serfin with
 the IPAB was concluded, maintaining the same original conditions as announced
 in May 2000.
 
     Grupo Financiero Santander Mexicano and Banco Santander Central Hispano
 S.A.
 
     Grupo Financiero Santander Mexicano is the third largest financial group
 in Mexico, after the acquisition of Grupo Financiero Serfin. As of December
 31, 2000, the Group has a combined network of 929 branches and 1,676 ATMs,
 predominantly in Mexico D.F., Guadalajara and Monterrey, and 13,200 employees.
 The Group engages in the businesses of commercial banking, corporate banking,
 asset management, and investment banking and securities brokerage, through its
 different subsidiaries. It also takes part in the retirement funds
 administration sector, through Afore Santander Mexicano.
 
     Banco Santander Central Hispano - Leading Financial Group in Latin America
     Banco Santander Central Hispano ("BSCH") is the leading financial group in
 Latin America, with a policy of combining global balance sheet strength with
 local management and regional training. Founded in 1857, the Group has a long
 connection with Latin America and a firm commitment that is reflected in the
 US$15 billion invested in the region to date.
     The Group is present in 12 countries representing 98% of the region's GDP:
 Argentina, Bolivia, Brazil, Colombia, Chile, Mexico, Panama, Paraguay, Peru,
 Puerto Rico, Uruguay and Venezuela. The franchise comprises 17 banks, 9
 pension fund managers, 12 mutual funds, 10 insurance companies, 12 brokerages
 and 9 leasing and factoring companies. In all, it has 23 million customers in
 the region and more than 4,600 offices.
     According to latest available data, at the end of December 31, 2000, total
 assets in the region came to US$115 billion. Santander Central Hispano was
 managing a total of US$85.3 billion in savings of Latin American citizens,
 between deposits, mutual funds and pension funds, giving a market share of
 10%. The Group's rigorous risk policy has enabled its non-performing loan
 ratio in the region to stay well below the average for the sector.
 
     Banco Santander Central Hispano Worldwide
     Banco Santander Central Hispano is the leading financial group in Spain
 and Latin America, the third largest by market capitalization in the Euro Zone
 and among the fifteenth largest in the world. BSCH offers a wide range of
 commercial and consumer banking services in Europe and Latin America,
 providing services to 36 million customers through more than 10,800 offices
 and 125,000 employees in 42 countries. As of December 31, 2000, it had more
 than US$324 billion in assets and US$407 billion in total managed funds.
     Management philosophy is focused on creating value for shareholders
 through a model of personalized banking services combined with rigorous
 standards of productivity and efficiency
     In addition to its leading role in Latin America, the Group has
 established important alliances in Europe with leading banks: The Royal Bank
 of Scotland in the UK, Societe Generale in France, San Paolo-IMI in Italy and
 Commerzbank in Germany. It also has subsidiaries in Germany and Portugal as
 well as offices in Africa, Asia and Australia.
 
     Santander Central Hispano is a world leader in mutual and investment
 funds, and is among the most active banks in Internet banking and in
 developing New Economy projects. By December 31, 2000 it had more than
 1,200,000 web customers.
 
 
                      Grupo Financiero Santander Mexicano
                           Consolidated Balance Sheet
                    Constant pesos in millions of March 2001
 
                         Grupo Financiero Santander Mexicano    Consolidated
                                  excluding GFSerfin           with GFSerfin
                                                      2000     2000     2001
                           Mar.     Jun.     Sep.     Dec.     Dec.     Mar.
      Assets
 
      Funds available       9,352   12,801   15,568   20,665   34,199   27,097
 
      Financial
       instruments          8,296   10,704   18,357   18,970   32,489   29,200
      Securities,
       tradeable            5,020    7,895   11,047    9,868   11,367    7,438
      Securities,
       available for sale       1        1    2,956    3,990    5,508    7,523
      Securities, held
       until maturity       3,275    2,808    4,354    5,113   15,614   14,239
 
      Securities and
       derivative
       operations             280      150      283      442      522      641
      Forward contracts
       receivable               0        0        0        0        0        0
      Securities
       receivable on loan
       transactions             1        0        0        0        0        0
      Derivative
       instruments            279      150      283      442      522      641
 
      Current loan
       portfolio
      Commercial loans     10,696   13,277   14,281   14,607   23,439   22,306
      Loans to financial
       intermediaries         148      116      114       13      310       10
      Consumer loans          427      444      492      680    2,351    2,351
      Housing loans         2,590    2,524    2,472    2,509   10,337   10,016
      Government loans      9,821   11,044   11,603   11,777   17,931   18,695
      Loans without IPAB   23,683   27,405   28,963   29,587   54,368   53,378
      IPAB                 29,436   29,194   28,106   27,575   86,404   83,326
      Total current loan
       portfolio           53,119   56,600   57,069   57,162  140,772  136,704
 
      Past due loan
       portfolio
      Commercial loans        290      257      327      362      802    1,136
      Loans to financial
       intermediaries           0        0        0        0       11       11
      Consumer loans           41       42       48       33       91      101
      Housing loans           296      169      182      138      367      184
      Government loans          0        0        0        0        1        1
      Total past due loan
       portfolio              626      468      557      533    1,272    1,433
 
      Total loan
       portfolio           53,745   57,067   57,626   57,695  142,044  138,137
 
      Allowance for loan
       losses (-)          (1,222)  (1,053)  (1,044)    (990)  (5,643)  (7,010)
      Loan portfolio, net  52,523   56,015   56,582   56,705  136,401  131,126
 
      Other receivables,
       net                    641      621      652    1,313    2,368    2,418
      Property, furniture
       and fixtures, net    2,977    2,871    2,735    2,624    6,248    5,794
      Foreclosed assets       190      166      150      132      505      500
      Long-term
       investment in
       equity securities      642      640      501      511    1,478    1,538
      Deferred taxes          137      127      119      118    1,717    1,042
      Other assets,
       deferred charges
       and intangibles        554      522      538      767    8,684      875
 
      Total Assets         75,593   84,617   95,486  102,247  224,611  200,230
 
      Liabilities stockholders' equity
      Funding              58,230   65,416   68,085   66,061  143,150  148,086
      Demand deposits      15,180   16,251   15,455   16,215   44,747   42,926
      Time deposits        40,375   44,396   47,807   46,789   90,540   97,295
      Bank bonds
       outstanding          2,676    4,769    4,823    3,057    7,863    7,866
 
      Bank and other
       loans                5,654    7,548   13,971   20,386   44,095   24,297
      Call loans            1,334      257   10,102      184   16,495    5,414
      Short-term loans      3,026    5,945    2,949   19,392   19,143   10,243
      Long-term loans       1,294    1,346      920      809    8,457    8,640
 
      Securities and
       derivative
       operations             703      376      648      954    1,087      848
      Repurchase
       agreements             663      344      378      344      375      458
      Operations which
       represent a
       collateral loan          0        0        0        0       75        0
      Securities
       deliverable under
       loan transactions        1        0        0      341      342      153
      Derivative
       instruments             40       32      270      270      294      238
 
      Other payables        2,968    3,122    4,267    5,895   11,044   10,968
      Income taxes and
       employee profit
       sharing                 39      128       81       54      846      872
      Sundry creditors
       and other payables   2,929    2,993    4,185    5,841   10,198   10,096
 
      Deferred taxes            0        0        0        0        0        0
      Deferred credits        221      196      285      358      358      359
 
      Total Liabilities    67,776   76,658   87,256   93,654  199,734  184,558
 
      Paid-in capital      15,248   15,248   10,400   10,637   25,484   28,834
      Capital stock        12,521   12,521    7,550    7,550    7,550   17,791
      Additional paid-in
       capital                  0        0        0        0        0    8,450
      Mandatory
       convertible
       subordinated
       debentures           2,727    2,727    2,680    2,574    2,574    2,593
      Increase in capital
       stock pending to
       formalize                0        0      170      513   15,360        0
 
      Capital gains        (7,432)  (7,288)  (2,170)  (2,044)    (607) (13,162)
      Capital reserves         75       75       75       75       75       78
      Accumulated losses   (4,319)  (4,319)     652      652      652  (10,479)
      Surplus (deficit)
       from valuation of
       securities
       available for sale       0        0        0        0        0        0
      Results from
       translation of
       foreign operations       0        0        0        0        0        0
      Cumulative effect
       of restatement      (3,525)  (3,439)  (3,302)  (4,277)  (3,836)  (4,109)
      Results from the
       holding of non
       monetary assets       (280)    (451)    (757)       0        0        0
      Due to fixed assets
       valuation                0        0        0        0        0        0
      Mark - to- market
       of long term
       investments in
       equity securities     (280)    (451)    (757)       0        0        0
      Adjustments due to
       retirement
       benefits
       obligations              0        0        0        0        0        0
      Net income              353      570      846    1,179    2,172    1,154
      Minority interest       264      275      315      327      330      194
 
      Total stockholders'
       equity               7,816    7,960    8,230    8,594   24,876   15,672
 
      Liabilities &
       stockholders'
       equity              75,593   84,617   95,486  102,247  224,611  200,230
 
      Memorandum accounts
      Customer current
       accounts               126       33      104       22   13,435       74
      Customer cash
       balances                 3        2        2        1   13,347       24
      Investment banking
       operations on
       behalf of third
       parties, net             0        0        0        0        0        0
      Margin accounts of
       futures
       transactions             0        0        0        0       41        0
      Other current
       accounts                 0        0        0        0       26        0
      Customer
       transaction
       settlements            123       31      101       21       21       50
 
      Customer securities  66,787   56,655   58,380   51,473   97,951  124,705
      Customer securities
       held  in custody    64,927   55,133   56,687   49,834   95,645  122,563
      Securities and
       documents held  in
       guaranty             1,860    1,522    1,694    1,639    2,305    2,142
 
      Transactions on
       behalf of
       customers              489      350      389      297   18,296      778
      Customer repurchase
       and resale
       agreements               0        0        0        0   16,940        0
      Purchase
       transactions
       (option prices)          0        0        0        0      198      778
      Customer derivative
       instruments            489      350      389      297      297        0
      Block purchases of
       derivative
       instruments              0        0        0        0      517        0
      Block sales of
       derivative
       instruments              0        0        0        0      344        0
 
      Operation on behalf
       third parties       67,401   57,039   58,873   51,792  129,682  125,557
 
      Own operations      286,961  322,166  328,162  325,246  455,476  456,226
      Guarantees granted        5        5        4        4       66       64
      Other contingent
       obligations          1,950    1,342    1,359    1,395   15,188    3,848
      Irrevocable lines
       of credit granted    1,287    1,491    1,537    2,273    2,487    1,978
      Goods in trust or
       mandate             51,528   52,324   51,909   52,291   92,823   91,972
      Goods in custody or
       administration     149,722  174,389  181,864  180,215  206,309  246,530
      FOBAPROA operations
       - committed
       amounts              2,403    2,495    2,727    2,808    9,607    8,196
      Loan portfolio
       classification           0        0        0        0        0        0
      Letters of credit
       delivered in
       guaranty                 0        0        0        0        0        0
      Certificates of
       deposits in
       circulation              0        0        0        0        0       21
      Securities
       delivered in
       custody             77,065   87,889   86,346   84,362   85,444  101,705
      Securities
       delivered in
       guaranty             3,001    2,231    2,415    1,899    2,014    1,912
      Own government sec.
       deposited in
       custody                  0        0        0        0        3        0
      Liquidation with
       own foreign
       currency abroad          0        0        0        0        0        0
      Derivative
       instruments              0        0        0        0   41,536        0
 
      Repurchase
       agreements
      Reselling party
      Securities
       receivable under
       resale agreements   53,181   55,205   51,190   53,696   73,454   78,594
      (Less) Resale
       agreements          53,780   55,495   51,491   53,947   73,836   79,186
      Net                    (598)    (290)    (301)    (250)    (381)    (592)
 
      Repurchasing party
      Repurchase
       agreements           5,062    9,338    9,230    9,227    9,276   13,234
      (Less) Securities
       deliverable under
       repurchase
       agreements           5,126    9,393    9,307    9,320    9,270   13,100
      Net                     (64)     (54)     (77)     (93)       6      134
 
      Total own
       operations         286,298  321,823  327,784  324,902  455,101  455,769
 
                            Banco Santander Mexicano
                           Consolidated Balance Sheet
                    Constant pesos in millions of March 2001
 
                                                                 2000     2001
                                       Mar.     Jun.     Sep.    Dec.      Mar.
      Assets
 
      Funds available                9,352   12,801   15,568   20,665   13,313
 
      Financial instruments          7,693   10,023   17,709   18,375   13,074
      Securities, tradeable          4,417    7,214   10,399    9,273    3,070
      Securities, available for
       sale                              1        1    2,956    3,990    5,399
      Securities, held until
       maturity                      3,275    2,808    4,354    5,113    4,605
 
      Securities and derivative
       operations                      221       89      220      376      396
      Resale agreements                  0        0        0        0        0
      Derivative instruments           221       89      220      376      396
 
      Current loan portfolio
      Commercial loans              10,523   13,063   13,951   14,040   15,722
      Loans to financial
       intermediaries                  234      213      243      190      188
      Consumer loans                   427      444      492      680      795
      Housing loans                  2,590    2,524    2,472    2,509    2,424
      Government loans               9,821   11,044   11,603   11,777   12,571
      Loans without IPAB            23,595   27,288   28,762   29,197   31,700
      IPAB                          29,436   29,194   28,106   27,575   27,059
      Total current portfolio       53,032   56,483   56,868   56,772   58,759
 
      Past due loan portfolio
      Commercial loans                 284      256      327      362      359
      Loans to financial
       intermediaries                    0        0        0        0        0
      Consumer loans                    41       42       48       33       30
      Housing loans                    296      169      182      138      125
      Government loans                   0        0        0        0        0
      Total past due loan
       portfolio                       621      467      557      533      514
 
      Total loan portfolio          53,652   56,950   57,424   57,305   59,273
 
      Allowance for loan losses     (1,216)  (1,052)  (1,043)    (990)    (954)
      Loan portfolio, net           52,436   55,898   56,381   56,315   58,319
 
      Other receivables, net           566      604      611    1,250      898
      Foreclosed assets              2,762    2,658    2,524    2,415    2,311
      Property, furniture and
       fixtures, net                   190      166      149      132      136
      Long-term investment in
       equity securities               422      430      333      355      359
      Deferred taxes                   171      153      145      163        0
      Other assets                     274      238      246      250      249
 
      Total Assets                  74,087   83,059   93,885  100,295   89,055
 
      Liabilities & stockholders' equity
      Funding                       58,234   65,421   68,095   66,074   69,237
      Demand deposits               15,183   16,256   15,465   16,229   15,311
      Time deposits                 40,375   44,396   47,807   46,789   50,776
      Bank bonds outstanding         2,676    4,769    4,823    3,057    3,150
 
      Bank and other loans           5,622    7,507   13,849   20,032    7,381
      Call loans                     1,334      257   10,102      184    1,234
      Short-term                     2,994    5,904    2,827   19,038    5,572
      Long-term                      1,294    1,346      920      809      574
 
      Securities and derivative
       operations                      703      364      648      957      711
      Repurchase agreements            662      332      377      346      349
      Securities deliberable under
       loan transactions                 0        0        0      341      153
      Derivative instruments            40       32      270      270      209
 
      Other payables                 2,797    2,894    4,078    5,712    4,745
      Income taxes and employee
       profit sharing                   13       49       32       30       86
      Sundry creditors and other
       payables                      2,783    2,845    4,046    5,681    4,658
 
      Deferred taxes                     0        0        0        0      549
      Deferred credits                 221      196      285      358      359
 
      Total liabilities             67,576   76,382   86,955   93,133   82,981
 
      Paid-in capital               12,405   12,441   12,374   12,307   12,306
      Capital stock                 10,037   10,037   10,037   10,037   10,037
      Additional paid-in capital       174      174      174      174      174
      Mandatory convertible
       subordinated debentures       2,194    2,230    2,163    2,096    2,095
 
      Capital gains                 (5,894)  (5,764)  (5,444)  (5,145)  (6,233)
      Capital reserves                 708      708      711      711      786
      Accumulated losses            (7,621)  (8,031)  (7,941)  (7,949)  (8,316)
      Surplus (deficit) from
       valuation of securities
       available for sale             (246)      (0)       1        1       16
      Results from translation of
       foreign operations                0        0        0        0        0
      Cumulative effect of
       restatement                     714      852      772      714      714
      Results from the holding of
       non monetary assets             (32)     (46)     (63)       0        0
      Due to fixed assets
       valuation                         0        0        0        0        0
      Mark - to- market of long
       term investments in equity
       securities                      (32)     (46)     (63)       0        0
      Adjustments due to
       retirement benefits
       obligation                        0        0        0        0        0
      Net income                       320      479      762    1,052      376
      Minority interest                264      275      315      327      191
 
      Total stockholders' equity     6,511    6,677    6,930    7,162    6,073
 
      Liabilities & stockholders'
       equity                       74,087   83,059   93,885  100,295   89,055
 
      Memorandum accounts
      Guarantees granted                 5        5        4        4        3
      Other contingent obligations   1,349    1,330    1,308    1,345    1,960
      Irrevocable lines of credit
       granted                       1,287    1,491    1,537    2,273    1,831
      Goods in trust or mandate     51,528   52,324   51,909   52,291   50,706
      Goods in custody or
       administration              149,270  173,885  181,243  179,315  233,463
      FOBAPROA operations -
       committed amounts             2,403    2,495    2,727    2,808    3,192
 
      Securities receivable under
       resale agreements            48,574   39,970   41,990   42,414   45,715
      (Less) Resale agreements      49,167   40,226   42,273   42,614   45,951
      Net                             (594)    (256)    (283)    (200)    (236)
 
      (Less) Securities
       deliverable under
       repurchase agreements         4,549    9,421    9,216    8,627   15,368
      Repurchase agreements          4,481    9,345    9,121    8,481   15,255
      Net                               69      (76)     (94)    (146)    (113)
      Total memorandum accounts    205,318  231,199  238,350  237,689  290,806
 
 SOURCE  Grupo Financiero Santander Mexicano