GRUPO FINANCIERO Latin American Equity Conference November 6

GRUPO FINANCIERO Latin American Equity Conference November 6, 2000

Contents I. OVERVIEW • Highlights • Profitability • Asset Quality • Capitalization • Other Sectors • Internet II. MANAGEMENT´S VISION AND STRATEGIES

I. OVERVIEW

Highlights w Banorte created provisions against stockholder’s equity for ps 1, 737. 7 million pesos to cover all contingencies with Fobaproa and to comply with YR 2003 capital rules. w GFNorte 3 Q 00 accumulated profit of ps 1, 190. 3 million, 29. 5% increase over 3 Q 99. Banking Sector of ps 1, 015. 6 million. w GFNorte 3 Q 00 accumulated non interest expense decreased 13. 4% compared to 3 Q 99 as a result of expense reduction measures since 2 H 99. Banking Sector’s decreased 16. 7% for the same period. w 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%. w 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%.

Highlights w Banorte strengthened its capital base to fully create provisions for Fobaproa and YR 2003 and to take advantage of tax loss carry-forward in Bancentro. Banorte Bancentro w Recovery banking business Equity Ps 1, 217 w Traditional Banking Business w Bancentro’s Fobaproa assets w Serfín’s loan management portfolio w Afore from Banorte w Brokerage House’s Mutual Funds management Brokerage House w Capital market business w Investment banking Banorte Equity Ps 290 w Money market from Brokerage House

Group’s Integration GFNORTE 82. 9% 8. 9% 5. 5% Auxiliary Organizations Banking Long Term Saving Banorte Annuities Factoring Pension Funds Leasing Insurance Warehousing (Banpais) Bancentro % Group´s Investment in Subsidiaries. As of September 2000. Bonding 2. 7% Brokerage House

Banorte became a national bank improving its market position MARKET COVERAGE Branches Dec % 96 Mkt Jun % 00 Mkt Branches 156 2. 3 14° 453 5. 7 6° States 7 32 Market Dec ‘ 96 % Place Non interest Deposits Total Deposits Loans Jun ‘ 00 % Place BANORTE 6. 8 5° 11. 9 5° 3. 0 10° 6. 7 5° 3. 3 10° 8. 4 5° Loans include Fobaproa. Mkt. % for deposits excludes Financial Intermediaries and refers to Banking Sector exclusively. Source CNBV. BANCENTRO BANPAIS

Our Client base has increased through time as Banorte has reinforced its presence in traditional entities and moved further into new territories 2, 570 2, 324 1, 900 142 301 1994 1995 627 1996 889 1997 Products * Data as of September in thousands. Includes Banking Sector and Brokerage. Checking Account Investment Money Market Brokerage Loans Credit Cards Mortgage 1. 6% Total Accounts 1998 % Accounts 50. 5% 38. 3% 1. 8% 0. 3% 1. 9% 5. 6% 100% 1999 2000*

Supported on Banorte´s technological platform, electronic and phone banking have grown agressively *Annual Transactions (millions) Units CALL CENTER 8. 3 9, 512 8, 985 POS 7. 5 6, 398 3, 750 2, 458 1, 538 218 1994 4, 548 5, 661 1, 341 1, 365 PC BANKING 13. 5 3, 318 1, 988 986 990 130 212 408 1995 1996 1997 1998 1999 2000** *Corresponding to yr 1999. ** As of September 2000. Call Center = number of calls. ATM 85. 5

Profitability

We maintained second place in ROE RETURN ON EQUITY 21. 7% 15. 1% 2° 13. 1% 14. 1 8. 1% GFSANTAND GFNORTE 7. 2% 5. 0% BANACCI GFBITAL 8. 7% GFSANTAND GFBBV 8. 9% GFB GFNORTE BANACCI 2° 19. 4% Information provided by each Institution, It excludes minority interest; * September 2000. GFBITAL 21. 7% 2000* GFBVABANCOMER 1999

GFNorte has maintained constant earnings growth ACCUMULATED NET INCOME Extraordinary Items 1, 516. 8 1, 482. 6 1, 106. 2 Book Value Per Share 686. 9 667. 9 '95 '96 14. 1 9. 4 Extraordinary Items: 1997: $675. 2 & 1998: $410. 6 Millions as of September 2000. 807. 4 '97 12. 7 (*) '98 14. 6(*) 1, 206. 0 1, 190. 3 3 Q 99 919. 4 '99 15. 6(*) 3 Q’ 00 14. 0(*) Fully diluted

GFNorte has increased its net income per share 30% NET INCOME PER SHARE * 2. 41 1. 86 30% 3 Q ’ 99 Ps as of September 2000. * Fully diluted. 3 Q ’ 00

Major contribution to earnings was that of the Banking Sector with 85% of total Group´s earnings GFNORTE EARNINGS 2000* 5% 3% 2% 5% BANKING BROKERAGE LONG TERM SAVINGS HOLDING 85% *As of September 2000. AUXILIARY ORGANIZATIONS

Banking Sector´s income composite TOTAL GROSS INCOME 6, 635 5, 783 Net interest income Non interest income 5, 544 4, 477 w Market interest rates dropped 8 basis points in one year period. w Important interest rate drop on 13% IPAB notes. 1, 306 1, 091 3 Q ’ 99 3 Q ’ 00 NON INTEREST EXPENSE TOTAL NET INCOME 1, 098 5, 111 4, 256 797 38% 17% As of Sep’ 00. Millions of Ps. 3 Q ’ 99 3 Q ’ 00

Asset quality

Banorte has maintained a low level of past due loans PAST DUE LOAN RATIO 8. 0% 8. 1% 4. 9% 4. 0% 2. 2% SANTANDERSERFIN As of September 2000. BANAMEX 3° BANORTE BITAL BBVA BANCOMER

Banorte maintained a reserve coverage of 102. 9% RESERVE COVERAGE 233. 9% 112. 7% 102. 9% 101. 0% 100. 0% 3° SANTANDERSERFIN As of September 2000. BBV BANCOMER BANORTE BITAL BANAMEX

Capitalization

Capitalization ratio stood at 12. 1% CAPITALIZATION RATIO 16. 7% 16. 5% 13. 8% 12. 1% 10. 5% 4° SANTANDER SERFÍN W/O MARKET RISK 22. 3% As of September 2000. BANAMEX BBVA BANCOMER BANORTE BITAL 19. 9% 16. 5% 13. 6% 12. 3%

Other Sectors

Other sectors are profitable and have gained market share 3 Q’ 99 Net Market Income Share 1) 3 Q’ 00 Net Market Income Share Long Term Saving: Afore Bancassurance 50. 1 (11. 8) 8. 5% 1. 0% 61. 6 (2. 9) 8. 9% 1. 0% Annuities (20. 8) 6. 2% (19. 1) 9. 7% Brokerage Sector: Brokerage House 113. 5 4. 9% 58. 4 6. 8% Auxiliary Organizations: 25. 0 Factoring 10. 9 Leasing 19. 8% 5. 0% 28. 6 15. 4 28. 7% 5. 2% Warehousing 2. 5 3. 3 Bonding 5. 2 5. 5 As of June 2000. 2) As of July 2000. 3) As of August 2000. 1) 2) 3)

www. banorte. com. mx

We define as a priority to achieve a strong position in the internet market, developing a transaction-focus strategy OUR STRATEGY w Provide the most user-friendly and wide variety of transactions, both to Corporations and Individuals. w Participate as a major player, in the Business-to-Consumer sector, as well as Business-to-Business sector of web-based commerce. w Develop the best e-commerce alliances, joint ventures and revenue sharing agreements. w Use Banorte´s strong and trusted name.

GFNorte ‘s Internet News w 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. w 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. w 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.

Internet Alliances Asista. com w 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. w 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. Zona Financiera. com w 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. w 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 AND STRATEGIES

Banking Sector Trends I. Financial sector reconfiguration II. Interest income decrease III. Customer orientation IV. Digital revolution V. New regulations

Management’s Vision and Strategies I. Financial sector reconfiguration w Supply & development of financial products and services through a matrix organization w Acquisition of financial entities w Process reengineering to insure “Best Practices” II. Interest income decrease w Non interest income increase through transactional charges w Development of non bank products w Diminishing funding cost w Credit loans increase w Asset quality enhancement w Diminishing operating expenses

Management’s Vision and Strategies III. Customer orientation w Moving toward a customer oriented bank (CRM) w Internet as a tool to improve customer knowledge IV. Digital revolution w Promote usage of new electronic distribution channels w Strong development of Internet services V. New regulations w Credit risk management & control system w Strengthen capital base through profitability focus

IN GRUPO FINANCIERO BANORTE WE CONTINUE WORKING TO BE THE STRONG BANK OF MEXICO

GRUPO FINANCIERO