[ ] NYfinal2nov00.ppt

November 6, 2000November 6, 2000

G R U P O F I N A N C I E R O

Latin American Equity ConferenceLatin American Equity Conference

I. OVERVIEWI. OVERVIEW

• HighlightsHighlights

• ProfitabilityProfitability

• Asset QualityAsset Quality

• CapitalizationCapitalization

• Other SectorsOther Sectors

• InternetInternet

II. MANAGEMENT´S VISION AND II. MANAGEMENT´S VISION AND

STRATEGIESSTRATEGIES

ContentsContents

I . OVERVIEWI . OVERVIEW

HighlightsHighlights

Banorte created provisions against stockholder’s equity for ps 1,737.7 million pesos to cover all contingencies with Fobaproa and to comply with YR2003 capital rules.

GFNorte 3Q00 accumulated profit of ps 1,190.3 million, 29.5% increase over 3Q99. Banking Sector of ps 1,015.6 million.

GFNorte 3Q00 accumulated non interest expense decreased 13.4% compared to 3Q99 as a result of expense reduction measures since 2H99. Banking Sector’s decreased 16.7% for the same period.

Banking Sector’s past due loans decreased 19.6% in one year period reducing pdl ratio from 6% to 4.9%. Reserve coverage at 102.9%.

Banking Sector’s capitalization ratio of 12.1%, Tier 1 of 11.1% and Tier

2 of 1.0%. Capitalization ratio for 2003, 10.7%.

Banorte strengthened its capital base to fully create provisions for Fobaproa and YR2003 and to take advantage of tax loss carry-forward in Bancentro.

HighlightsHighlights

BanorteBanorteBancentroBancentro

EquityPs 1,217 Traditional Banking

Business

Recovery banking business

Bancentro’s Fobaproa assets

Serfín’s loan management portfolio

Afore from Banorte

Brokerage House’s Mutual Funds management

BanorteBanorteBrokerage House

Brokerage House

EquityPs 290 Capital market business

Investment banking

Money market from Brokerage House

GFNORTEGFNORTE

FactoringFactoring

WarehousingWarehousing

LeasingLeasing

Auxiliary Organizations

BondingBonding

5.5%

AnnuitiesAnnuities

Pension Funds

Pension Funds

Long Term Saving

8.9%

InsuranceInsurance

Group’s IntegrationGroup’s Integration

% Group´s Investment in Subsidiaries.

As of September 2000.

BancentroBancentro

Banorte(Banpais)

Banorte(Banpais)

Banking

82.9%

Brokerage

House

Brokerage

House

2.7%

Brokerage

Banorte became a national bank improving its Banorte became a national bank improving its market positionmarket position

Dec96

% Mkt

Branches 156 2.3

States 7

Jun00

453

32

5.7

% Mkt

Loans include Fobaproa. Mkt. % for deposits excludes Financial Intermediaries and refers to Banking Sector exclusively. Source CNBV.

3.0 6.7TotalDeposits

Loans 8.43.3

Dec ‘96%

Branches

10° 5°

10° 5°

6.8 11.9Non interest Deposits

5° 5°

MARKET COVERAGEMARKET COVERAGE

Place

Jun ‘00% Place

Market

14° 6°

BANORTE

BANCENTRO

BANPAIS

Our Client base has increased through time as Our Client base has increased through time as Banorte has reinforced its presence in traditional Banorte has reinforced its presence in traditional

entities and moved further into new territoriesentities and moved further into new territories

* Data as of September in thousands.Includes Banking Sector and Brokerage.

142 301627 889

1,9002,324

1994 1995 1996 1997 1998 1999

2,570

2000*

Checking Account 50.5%

Investment 38.3%

Money Market 1.8%

Brokerage 0.3%

Loans 1.9%

Credit Cards 5.6%

Mortgage 1.6%

Total Accounts 100%

Products % Accounts

Supported on Banorte´s technological platform, Supported on Banorte´s technological platform, electronic and phone banking have grown agressivelyelectronic and phone banking have grown agressively

*Corresponding to yr 1999. ** As of September 2000. Call Center = number of calls.

*Annual Transaction

s(millions)

130 212 408

986 1,341 1,365218

990

1,988

3,318

4,548 5,661

1,538

2,458

3,750

6,398

9,512

8,985

1994 1995 1996 1997 1998 1999 2000**

POS

PCBANKING

ATM

7.5

13.5

85.5

CALL CENTER 8.3

Units

ProfitabilityProfitability

RETURN ON EQUITY RETURN ON EQUITY

We maintained second place in ROEWe maintained second place in ROE

Information provided by each Institution, It excludes minority interest;* September 2000.

19991999 2000*2000*

14.1

21.7%

7.2% 5.0%

19.4%

BA

NA

CC

I

GF

BV

A-

BA

NC

OM

ER

GF

BIT

AL

GF

NO

RT

E

2°

GF

SA

NT

AN

D

15.1%

21.7%

13.1%

8.1%8.7%8.9%

BA

NA

CC

I

GF

NO

RT

E

GF

B

GF

BIT

AL

GF

BB

V

GF

SA

NT

AN

D2°

ACCUMULATED NET INCOMEACCUMULATED NET INCOME

Millions as of September 2000.(*) Fully diluted

GFNorte has maintained constant GFNorte has maintained constant earnings growthearnings growth

Extraordinary Items: 1997: $675.2 & 1998: $410.6

Book Value 14.1 9.4 12.7 (*) 14.6(*) 15.6(*) 14.0(*)Per Share

1,482.6

1,206.0

1,516.8

667.9686.9

'95 '96 '97 '98 '99

Ext

rao

rdin

ary

Item

s

Ext

rao

rdin

ary

Item

s

3Q99919.4

1,190.3

3 Q’00

807.4

1,106.2

NET INCOME PER SHARE *NET INCOME PER SHARE *

GFNorte has increased its net income per GFNorte has increased its net income per share 30%share 30%

2.41

1.86

3 Q ’99 3 Q ’00

Ps as of September 2000. * Fully diluted.

30%

GFNORTE EARNINGS 2000*GFNORTE EARNINGS 2000*

Major contribution to earnings was that of the Major contribution to earnings was that of the Banking Sector with 85% of total Group´s Banking Sector with 85% of total Group´s

earningsearnings

5%2%

5%3%

85%

BANKING

BROKERAGE

LONG TERM SAVINGS

HOLDING

AUXILIARY ORGANIZATIONS

*As of September 2000.

Banking Sector´s income compositeBanking Sector´s income composite

As of Sep’00.Millions of Ps.

NON INTEREST NON INTEREST EXPENSEEXPENSE

5,1114,256

3 Q ’99 3 Q ’00

17%

TOTAL NET TOTAL NET INCOMEINCOME

797

1,098

3 Q ’99 3 Q ’00

38%

TOTAL GROSS INCOMETOTAL GROSS INCOME

6,6355,783

3 Q ’99 3 Q ’00

13%

5,544

1,306

4,477

1,091

Non interest income

Net interest income

Market interest rates dropped 8 basis points in one year period.

Important interest rate drop on IPAB notes.

Asset qualityAsset quality

Banorte has maintained a low level of past due loansBanorte has maintained a low level of past due loans

BANAMEX BITAL BBVA -BANCOMER

BANORTESANTANDER-SERFIN

2.2%

4.0%

4.9%

8.0% 8.1%

PAST DUE LOAN RATIOPAST DUE LOAN RATIO

As of September 2000.

3°

RESERVE COVERAGERESERVE COVERAGE

Banorte maintained a reserve coverageBanorte maintained a reserve coverageof 102.9%of 102.9%

BANORTEBBV - BANCOMER

BANAMEXBITALSANTANDER-SERFIN

233.9%

102.9% 101.0%112.7%

100.0%

3°

As of September 2000.

CapitalizationCapitalization

CAPITALIZATION CAPITALIZATION RATIORATIO

Capitalization ratio stood at 12.1%Capitalization ratio stood at 12.1%

16.5%13.8%

10.5%12.1%

BANAMEX BBVA -BANCOMER

BITALBANORTESANTANDER - SERFÍN

16.7%

As of September 2000.

19.9% 16.5% 12.3%13.6%22.3%W/O MARKET RISK

4°

Other SectorsOther Sectors

NetIncome

MarketShare

NetIncome

MarketShare

3Q’99 3Q’00

1) As of June 2000. 2) As of July 2000. 3) As of August 2000.

Brokerage House

Leasing

Factoring

Warehousing

Bonding

113.5 4.9% 58.4 6.8%

25.0 19.8% 28.6 28.7% 2)

10.9 5.0% 15.4 5.2% 3)

2.5 3.3

5.2 5.5

Afore

Bancassurance

Annuities

50.1 8.5% 61.6 8.9%

(11.8) 1.0% (2.9) 1.0% 1)

(20.8) 6.2% (19.1) 9.7%

Other sectors are profitable and have gained market Other sectors are profitable and have gained market shareshare

Long Term Saving:

Brokerage Sector:

Auxiliary Organizations:

www.banorte.com.mxwww.banorte.com.mx

We define as a priority to achieve a strong We define as a priority to achieve a strong position in the internet market, developing a position in the internet market, developing a

transaction-focus strategytransaction-focus strategy

Provide the most user-friendly and wide variety of transactions, both to

Corporations and Individuals.

Participate as a major player, in the Business-to-Consumer sector, as

well as Business-to-Business sector of web-based commerce.

Develop the best e-commerce alliances, joint ventures and revenue

sharing agreements.

Use Banorte´s strong and trusted name.

OUR STRATEGYOUR STRATEGY

On August 31, 2000, Grupo Financiero Banorte announced its

Internet operational strategy which places GFNorte among the most

advanced institutions in this matter in the country.

Through www.banorte.com.mx GFNorte will respond in an effective

way to the most sophisticated needs in the market today, by means of

the evolution and expansion of its range of on-line services.

The new Portal de Banorte offers direct access to transactional

applications, on-line product demand, support in Chat-format, location

maps of branches and financial services simulators.

GFNorte ‘s Internet NewsGFNorte ‘s Internet News

In September of 2000, Grupo Financiero Banorte and Asista.com, announced the signature of a strategic alliance for the development of diverse on-line payment mechanisms, as well as different solutions for electronic trade among businesses.

The development of solutions for electronic payments to be offered to the customers will be finished by the end of the fourth quarter of this year.

Internet AlliancesInternet Alliances

Asista.comAsista.com

Zona Financiera.comZona Financiera.com

GFNorte and Zona Financiera.com announced a strategic alliance by means of which the users of this site will be able to have access to the wide range of services and financial products of the Group.

This alliance represents a great advance in our strategy of extending our operations and services through the Internet and to give value-added resources to our clients in Mexico.

II. MANAGEMENT´S VISION II. MANAGEMENT´S VISION AND STRATEGIESAND STRATEGIES

I. Financial sector reconfiguration

II. Interest income decrease

III. Customer orientation

IV. Digital revolution

V. New regulations

Banking Sector TrendsBanking Sector Trends

I. Financial sector reconfiguration

Supply & development of financial products and services through a matrix

organization

Acquisition of financial entities

Process reengineering to insure “Best Practices”

II. Interest income decrease

Non interest income increase through transactional charges

Development of non bank products

Diminishing funding cost

Credit loans increase

Asset quality enhancement

Diminishing operating expenses

Management’s Vision and StrategiesManagement’s Vision and Strategies

III. Customer orientation

Moving toward a customer oriented bank (CRM)

Internet as a tool to improve customer knowledge

IV. Digital revolution

Promote usage of new electronic distribution channels

Strong development of Internet services

V. New regulations

Credit risk management & control system

Strengthen capital base through profitability focus

Management’s Vision and StrategiesManagement’s Vision and Strategies

IN GRUPO FINANCIERO BANORTEIN GRUPO FINANCIERO BANORTE

WE CONTINUE WORKING TO BEWE CONTINUE WORKING TO BE

THE STRONG BANK OF MEXICOTHE STRONG BANK OF MEXICO

G R U P O F I N A N C I E R O