Santander signs a cooperation agreement with Bank of Shanghai and buys an 8% stake

1. Press Release
Santander signs a cooperation agreement
with Bank of Shanghai and buys an 8% stake
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The Group and Bank of Shanghai will develop joint activities in wholesale
banking in China.
The transaction will have an impact of approximately 1 basis point on the
Group’s capital.
Madrid, December 10, 2013 - Banco Santander has reached a cooperation agreement with
Bank of Shanghai to buy an 8% equity stake in Bank of Shanghai (BoS). The transaction,
which is subject to approval from the China Banking Regulatory Commission, will make
Santander the second-largest shareholder in BoS and its strategic international partner. The
transaction is expected to be completed in the first half of 2014. The cost of the investment,
including the purchase of HSBC Ltd.’s stake and the cooperation agreement with Bank of
Shanghai, is estimated at approximately EUR 470 million. The transaction will have an impact
of approximately 1 basis point on the Santander Group’s capital.
Under the terms of the agreement, Santander will provide BoS with a permanent team of
professionals, who will contribute Santander’s knowledge and experience in risk management
and commercial and retail banking. The two will develop joint wholesale banking activities.
BoS is the second-biggest urban commercial and retail bank in the country, with total assets
of EUR 98 billion and a net profit of EUR 902 million at the end of 2012. The bank has a total
of 294 branches, 231 based in Shanghai, where its headquarters and 70% of its assets are
located, and is present in ten other Chinese cities. It is also the only urban, Chinese bank with
a branch presence in the Shanghai Free Trade Zone. It has 8 million personal banking
customers and almost 200,000 corporate customers, most of which are small and mediumsized companies.
The stake in BoS, along with the strategic agreement with the Chinese bank, will strengthen
Santander’s position in the country. In May 2013, the Group received clearance from the local
regulator to buy 20% of Bank of Beijing’s consumer finance subsidiary (Bank of Beijing
Consumer Finance Company), making Santander the second-biggest shareholder. In March
this year, Fortune Auto Finance, a joint venture between Santander and the Chinese car
manufacturer Anhui Jianghuai Automobile (JAC), officially started operations. Fortune is a
multi-brand car finance company that operates throughout the country and is 50% controlled
by Santander.
Santander is also developing investment banking activities in China, mainly based on
financing the substantial trade flows between the Asian giant and Latin America. The bank
currently has branches in Shanghai and Hong Kong, and a representative office in Beijing
(which will soon be turned into a branch). In 2012 Santander became the first Spanish or
Comunicación Externa.
Ciudad Grupo Santander Edificio Arrecife Pl. 2
28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11
email: comunicacionbancosantander@gruposantander.com
Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail
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2. Latin American bank to win authorization to operate in the local currency, the renminbi, which
allows it to carry out transactions for corporate customers established in China.
Comunicación Externa.
Ciudad Grupo Santander Edificio Arrecife Pl. 2
28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11
email: comunicacionbancosantander@gruposantander.com
Calle, número, 00000 Municipio. Tel. 00 000 000. Fax. 00 000 000. e-mail
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