Banco Santander sets strict guardrails for potential Mexico deal

Ana Botin, the chair of Banco Santander, called Mexico a “growth engine” for the bank but cautioned that the lender would only seek to buy Citigroup’s retail business in the country if certain requirements are met.

“I want to be very clear, we will only buy Banamex if we can pay cash,” Botin said Monday in an interview on Bloomberg Television’s “Balance of Power With David Westin.”

“We would not issue shares at the group nor at the Mexican subsidiary level,” she said. “We can keep our CET1 at 12% or above, and, very important, we keep the dividend policy we have announced."

Banco Santander SA Group Executive Chairman Ana Botin Interview
Ana Botin, group executive chairman of Banco Santander SA, during a Bloomberg Television interview in London, U.K., on Wednesday, Oct. 13, 2021. Botin waded into the debate about strength and persistence of inflation, saying she sees it as a passing trend spurred by the pandemic.

Citigroup has put a variety of international businesses up for sale as Chief Executive Jane Fraser reshapes the U.S.-based bank. Botin has previously said that Santander would look at the Citigroup business. She cautioned Monday that the lender would do fine in Mexico even without a potential acquisition, noting that Santander has gained market share in that business on the retail side for every month in the last 22 months.

“Mexico is a growth engine for Santander,” Botin said. “There’s a lot of organic growth for us in Mexico without buying Banamex.”

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