GFNORTE 2Q03 Results

BRANCHES AND EMPLOYEES Banorte went from a regional to a national bank improving its market share BRANCHES AND EMPLOYEES Dec ‘96 Dec ‘01 Jun ‘03 Banorte BTE + BCR 14° 156 455 6° 1,182 4° 1,053 4° Branches MS% 2.3 6.4 16.6 15.5 States 7 32 32 32 Bank Emp 4,840 8,516 15,099 13,009 BANORTE BANCENTRO BANPAÍS BANCRECER MARKET SHARE (%) Dec ‘01 Dec ‘96 Jun ‘03 BTE BTE + BCR 5° Non Interest Deposits 6.8 11.4 5° 15.4 5° 16.4 4° 14° Total Deposit 3.0 7.8 5° 11.7 4° 11.5 5° 10° Traditional Loans 3.3 7.0 6° 8.6 4° 11.1 4° 3.3 10° Total Loans 9.4 3° 15.6 3° 16.5 3° DEPOSITS: EXCLUDES FINANCIAL INTERMEDIARIES AND INCLUDES MUTUAL FUNDS AND SOURCE: ABM LOANS: INCLUDES FOBAPROA, IPAB CREDIT AND SOURCE: DEC ‘96 CNBV; DEC ‘01 AND JUN ‘03 A.B.M.

DISTRIBUTION CHANNELS The client base and the distribution channels have experienced an important growth CLIENTS (Thousands) 4,692 4,678 4,634 TRANSACTIONS PER DISTRIBUTION CHANNEL June 2003 2,818 2,324 1,900 889 627 ATM 50% ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 02 June’03 BRANCHES 28% DISTRIBUTION CHANNELS PC Banking* 21,101 PC BANKING & INTERNET POS 10,250 12% Call Center** 10.1 TELEPHONE BANKING 6% ATM 2,490 Branches 1,059 POS 4% 8.3 2,458 990 212 157 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 Jun’03 CLIENTS : INCLUDES THE BANKING SECTOR AND THE BROKERAGE HOUSE. * TRADITIONAL AND INTERNET. **MILLIONS OF PHONE CALLS FOR THE PERIOD.

Banorte has achieved both growth and excellent perfomance through time 29.50 SHARE PRICE 31.4 10.50 21.0 17.6 ROE % 7.54 28 DAYS CETE RATE % 1,628 1,273 929 Extraordinary Income EXTRAORDINARY INCOME: 1997: PS 777, 1998 : PS 472 AND 2002: PS 417. MILLIONS AS OF JUNE 2003. DURING 2000 WE HAD A EXTRAORDINARY INCOME OF PS 239 MILLION FROM THE RECOVERY BANKING UNIT

GFNorte’s Objectives & Strategy Provide excellence in financial services Maximize shareholder value Strategy We have succeeded in building a national franchise through selective acquisitions. We will now focus on exploiting our leading market position by: Improving our funding mix Increasing Non Interest Income Reducing Non Interest Expense, improving our efficiency ratio Aggressively growing our credit portfolio, with strict credit risk policies Further developing our asset recovery business Multi-channel approach with a cross-sell focus

GFNorte Results HIGHLIGHTS GFNORTE BANKING SECTOR Net Income (MILLIONS OF PESOS) GFNORTE Net Income Net Income (Excluding Generali) Annualized ROE Annualized ROE (Excluding Generali) EPS Book Value BANKING SECTOR Net Income w/o Afore Recovery Banking Business Contribution Capitalization Ratio Traditional loan portfolio annual growth Past due loan ratio Reserve Coverage 1H’02 1H’03 1,199 799 23.4% 15.6% 2.39 21.73 1,034 37% 13.1% 62.3% 3.4% 117.2% 1,045 17.6% 2.08 24.80 819 14% 13.6% 41.2% 2.6% 116.0% EPS & BOOK VALUE ARE PESOS PER SHARE . BOOK VALUE EXCLUDES MINORITY HOLDINGS.

Profit composition NET INCOME 2001 2002 1H’03 BANKING 85% 84% Ps 819 78% LONG TERM SAVINGS 6% 8% 141 14% AUXILIARY ORGANIZATIONS 4% 4% 42 4% BROKERAGE 2% 4% 32 3% HOLDING 3% 0% 10 1% GFNORTE 100% 100% Ps 1,045 100% MILLION PESOS

Net Interest Margin 8.21% 7.54% 8.07% 6.95% 4.8% 4.6% 1H’02 1H’03 Average 28 days Cete Rate Average 28 days TIIE NIM decreased due to: The 45 bp reduction in the differential between the average 28-day Cete rate and the 28-day TIIE rate, which is the reference for a large part of the loan portfolio.

Net Interest Margin (NIM) Cete vs. NIM 9.3% 9.1% 9.0% 8.6% 8.1% 7.9% 7.5% 7.5% 7.3% 6.9% 6.8% 7.0% 6.8% 6.8% 6.7% 6.7% 5.11% 5.3% 4.9% 5.1% 5.0% 4.7% 4.7% 4.9% 4.5% 4.3% 27-dec 31-jan 28-feb 27-mar 25-apr 30-may 27-jun 25-jul 29-aug 26-sep 31-oct 28-nov 26-dec 30-jan 24-feb 25-mar 28-apr 29-may 26-jun 2001 2002 2003 28 days Cetes Rate Net Interest Margin (NIM) SOURCE: BANCO DE MÉXICO. CETE= 28 DAYS CETE RATES

Non Interest Income 1,727 1,630 1H’02 1H’03 1H’03 vs 1H’02 Service 954 959 1% Recovery 478 182 (62%) Trading 199 586 194% TOTAL 1,630 1,727 6% MILLION PESOS

Service Fees 1H’03 vs 1H’02 1H’02 1H’03 Fund Transfers 95 86 (9%) Account Management Fees 336 311 (7%) Fiduciary 90 85 (6%) Credit Card 281 303 8% Electronic Banking 124 120 (3%) Other Fees Net 28 54 93% NET FEES - SERVICES 954 959 1% The accumulated Service Fee Income increase by 1% vs 1H02 because of a 8% jump in Credit Card fees, although some areas showed lower income because clients have become more efficient in the use of banking services as a result of the new charges and increases in service fees established in 1H02. MILLION PESOS

Recovery Fees 1H’03 vs 1H’02 1H’02 1H’03 I.- LOAN PORTFOLIOS ACQUIRED 275 103 a. Serfin Loans (1) 206 87 Income 345 201 - Expense 139 114 b. Other Portfolios (2) 69 16 Income 176 85 - Expense 107 69 II.- FOBAPROA FEES 203 80 The drop in the Fobaproa Fees is due largely to the fact that portfolio administration fees were no longer charged since the agreement expired in Dec 1’02. Last June, this agreement was renegotiated and the fees are expected to increase as of 3Q03 by Ps 104 million retroactive positive effect. Serfin’s collection rights are also about to be renegotiated generating expected Ps 118 million by 4Q03. NET FEES – RECOVERY 478 182 (62%) MILLION PESOS (1) COLLECTION RIGHTS (2) 9 PACKAGES.

Recovery Banking Business MANAGED ASSETS * 2Q’02 2Q’03 1. Proprietary loans 5,549 3,385 (1) 2. Repossesed assets 1,228 1,296 44,938 40,954 3. Fobaproa - IPAB 4. Acquired loan portfolios 11,196 12,024 Banorte Risk 12% 62,911 57,659 NET INCOME 1H’02 1H’03 Traditional Bank 451 765 Recovery Bank 259 128 BANKING SECTOR 710 (2) 893 Recovery Bank Contribution 37% 14% MILLION PESOS * ASSETS MANAGED BY SOLIDA ADMINISTRADORA DE PORTAFOLIOS INCLUDES LOANS SOLD TO SOLIDA FOR PS 1.9 BILLION AT 1Q03. EXCLUDES PS 416.7 MILLIONS OF A EXTRAORDINARY INCOME FROM GENERALI.

Non Interest Expense 4,562 4,423 1H02 1H03 - 17% - 3% 4,562 Other 14% 4,423 VAT & IPAB 13% 14% 15% O&AE 25 % 24% Personnel 48% 47% 1H02 1H03 The accumulated Non Interest Expense for the first half dropped 3.0% vs. 1H02, with reductions of 4.8% in Personnel Expenses and 8.7% in Administration and Promotion Expenses as a result of the efforts targeted to controlling and reducing Operating Expenses. MILLION PESOS. (*) FOURTH QUARTER 2001 PROFORMA FOR BANCRECER VAT = VALUE ADDED TAX O&AE = OPERATION AND ADMINISTRATIVE EXPENSES INCLUDING IT.

EFFICIENCY RATIO INCLUDES TRADING 1992 1996 1997 2001 Dec 2002 2Q‘03 Efficiency Ratio 55% 66% 93% 78% 105% 87% 78% 76% Efficiency ratio has suffered after each acquisition, being able Banorte to return to adecuate efficiency levels in the following years. After the acquisition of Bancrecer the efficiency ratio went up to 87%, returning it down to an average of 76% by 2Q’03. EFFICIENCY RATIO INCLUDES TRADING

Expense and Income 2001 2002 Acum Jun '03 BBVA- Bancomer Average G6 Banorte Banorte Banorte Expense 10,438 18,545 67,109 9,197 16,931 71,068 4,606 8,259 34,659 Income 12,005 28,558 103,789 11,401 28,229 106,514 6,114 14,729 60,654 # of Branches 1,182 1,752 7,074 1,063 1,663 6,768 1,053 1,642 6,716 Expense per Branch 8.8 10.6 9.5 8.7 10.2 10.5 8.7 10.1 10.3 Income per Branch 10.2 16.3 14.7 10.7 17.0 15.7 11.6 17.9 18.1 2002 Acum Jun. '03 2003 Annualized BTE BCR BTE BCR BTE BCR Direct Expense x Branch 5.0 2.0 2.7 1.2 5.4 2.4 Total Income x Branch 12.0 4.1 7.2 2.6 14.4 5.2 Direct Contribution 7.0 2.1 4.5 1.4 9.1 2.8 Annual Growth 30% 33% MILLION PESOS. BANORTE INCLUDES SÓLIDA AND IS BANKING SECTOR. OTHER BANKS ARE WITH SUBSIDIARIES AND UDIS. DIRECT CONTRIBUTION DOES NOT INCLUDES LOAN LOSS RESERVES

Traditional Loan Portfolio 61,542 57,469 43,581 2Q’02 1Q’03 2Q’03 % 2Q03 vs 2Q02 TRADITIONAL LOAN PORTFOLIO 2Q02 1Q03 2Q03 Commercial 14,875 17,150 18,444 30% 24% Corporate 10,112 13,125 13,554 22% 34% Mortgage 9,632 10,979 11,704 19% 22% Automobile 2,343 3,518 4,016 7% 71% Credit Card 1,259 1,836 2,153 3% 71% Electronic Payroll Loans 389 641 810 1% 108% Government Entities 3,682 6,654 7,552 13% 105% Financial Entities 1,288 3,566 3,309 5% 157% TOTAL 43,581 57,469 61,542 100% 41% FIGURES = MILLION PESOS. PS = THOUSAND MILLION PESOS TRADITIONAL LOAN PORTFOLIO DOES NOT INCLUDE NEITHER FOBAPROA / IPAB NOTES NOR RECOVERY BANK BUSINESS GOVERNMENT ENTITIES INCLUDES FEDERAL, STATE & MUNICIPALITIES

Quarterly Loan & Insurance placement 8% 11% 21% 32% 38% 92% 89% 79% 68% 62% 7,809 7,423 6,946 8,287 9,929 AUTOMOBILE 2Q03 43% 57% 9,899 ELECTRONIC PAYROLL LOANS 1Q02 2Q02 3Q02 4Q02 1Q03 24% 18% 20% 28% 33% 76% 82% 80% 72% 67% 10,443 17,792 20,403 22,751 22,792 2Q03 36% 64% 32,979 MORTGAGE 1,867 1,737 1,677 1,489 1,398 1,004 65% 96% 90% 81% 79% 100% 35% 4% 10% 19% 21% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 LIFE INSURANCE CAR INSURANCE 34,930 20,753 19,402 29,872 17,565 17,127 16,678 15,977 56% 63% 60% 58% 18,518 77% 75% 74% 75% 16,530 17,158 13,626 63% 100% 100% 100% 37% 40% 42% 44% 37% 26% 25% 23% 25% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 BANORTE BANCRECER NUMBER OF LOANS & POLICIES ARE ACCUMULATED DURING THE QUARTER

Fobaproa - IPAB After Banorte’s expansion strategy, the proportion of Fobaproa / IPAB notes has been reducing since Traditional Loan portfolio started to rise Traditional Loans 155 150 Fobaproa / IPAB Notes Ps 6.5 (1) 145 Ps 1.9 (2) 100 41 66% 59% 57% 71% 21% 1996 1997 2001 2002 2Q ’03 BILLION PESOS AS OF JUNE 2003. NET OF FOBAPROA CHECKING ACCOUNT AND LOSS SHARING PROVISIONS. SHORT TERM LOANS TO SOCIEDAD HIPOTECARIA FEDERAL. SALE OF LOANS TO SOLIDA ADMINISTRADORA DE PORTAFOLIOS.

Twelve month Traditional Loan Portfolio growth (*) Industry Growth Twelve month Traditional Loan Portfolio growth (*) (Excludes Fobaproa / IPAB) 41% (1) 21% 8% -1% - 2% SERFIN SCOTIA INVERLAT BANORTE BANAMEX SANTANDER BANCOMER -47% BITAL (*) FROM 2Q’02 TO 2Q’03. SOURCE: 2Q’03 QUARTERLY REPORTS, EXCEPT BANAMEX. (1) Excludes loans managed by the Recovery Banking unit.

Loan Loss Provisions 127% 117% 116% 5,699 4,502 4,350 2Q’02 1Q’03 Reserve Coverage decreased in 2Q03 due to two corporate loans that became non performing in the period. Steps are being taken to solve this situation in the short term. MILLION PESOS The two corporate loans that became non performing in the period were Mexlub with Ps 247 million and Propasa with 351 million.

Banorte’s Loan mix is shifting away from the Monterrey region ……and concentrating more in Mexico City Dec01 Jun03 Loans 39% 31% Branches 16% 16% MONTERREY Dec01 Jun03 Loans 13% 11% Branches 14% 13% NORTHEAST Dec01 Jun03 Loans 6% 10% Branches 16% 16% NORTHWEST Dec01 Jun03 Loans 27% 29% Branches 22% 23% MEXICO CITY Dec01 Jun03 Loans 11% 11% Branches 15% 16% WEST SOUTHEAST Dec01 Jun03 Loans 4% 8% Branches 16% 16% Dec01 Jun03 100% 100% NATIONAL SOURCE: ABM. 2001 DOES NOT INCLUDE BANCRECER FOR LOAN DISTRIBUTION. LOANS EXCLUDES IPAB AND FOBAPROA AND CENTRALIZED OPERATIONS.

Comparatives to the Industry 2Q’03 CAPITALIZATION RATIO* ASSETS NUMBER OF BRANCHES 29.1% 28.0% 24.4% 20.9% 19.7% 13.8% 15.7% 13.2% 4° 13.7% 4° 2° 10.5% 5.4% 5.6% BBVA- Bancomer Banamex Santander- Serfin Banorte Bital Scotiabank BBVA- Bancomer Banamex Bital Banorte Santander- Serfin Scotiabank ROE Group CAPITALIZATION RATIO* Rules 2003 33.6% 16.2% 15.2% 21.0% 14.5% 18.4%(1) 17.6% 13.6% 13.6% 13.3% 16.8%(1) 4° 13.3% 4° Santander- Serfin Scotiabank Banamex GFNorte Bital BBVA- Bancomer Santander- Serfin BBVA - Bancomer Bital Banorte Banamex Scotiabank SOURCE OF ASSETS AND NUMBER OF BRANCHES: ABM SOURCE OF ROE AND CAPITALIZATION RATIO: PRESS RELEASE OF EACH BANK. INCLUDES MARKET AND CREDIT RISKS. RULES 2003. (1) CALCULATED FOR BANKING SECTOR

TENDENCY OF IPC, GFNORTE, GFB (Monthly) JAN ’02 – SEPTEMBER 5th ‘ 03 IPC 12% GFNORTE 47% GFB (6%)

Dividend Policy In the Stockholders Ordinary General Assembly held on April 29th, 2003 it was approved a dividend policy of a minimum of 15% payout ratio on the recurrent net income of GFNorte, as long as there is no legal hinder and market conditions and the Group financial situation allow it.

Macroeconomic Environment Budget 2003 Revised 2003 2001 2002 GDP (0.3%) 0.9% 3.0% 1.8% Inflation 4.4% 5.7% 4.3% 3.5% 28 days Cetes rate (end of the year) 6.8% 6.9% 7.8% 5.8% 28 days Cetes rate (average) 11.3% 7.1% 8.0% 6.4% Peso exchange rate (end of the year) 9.14 10.31 10.60 10.80 SOURCE: BANORTE’S BROKERAGE HOUSE BUDGET GOALS FOR 2003 3 - 5 year Planning Process by 2H’03 ROE = 17% Loan growth = 15% Deposit growth = 6% Net income per share = 4.30 pesos/share Estimated Dividend Payment by October 2003

GFNORTE 2Q03 Results