1. 1 GFNorte 2Q05 Results August-2005

2. 2 Contents 1.2Q05 Results GFNorte Recovery Bank Long Term Savings Sector 2.Snapshot of New Products 3.Economic Environment 4.Final Remarks

3. 3 1. 2Q05 Results

4. 4 GFNorte Highlights MILLION PESOS Performing loan growth Past due loan ratio Reserve Coverage 4%4%19% 1H05 Net Income ROE Stock Price EPS P/BV 1H 04 1,172 16% Net Interest Margin 168% 3,142 37% 40.83 2.32 1.36 4.3% 74%42% 70.89 6.23 1.93 7.8% 3.5% 131% 1.8% 161% 168% ROE w/o one offs16%28%28% Net Income w/o one offs1,172 100% 2,346

5. 5 Evolution of GFNorte´s Net Income MILLION PESOS 5881,0922,04987%249% Net Income 5881,0921,25315%113% Net Income w/o one offs 2Q041Q052Q05 QoQ Variation YoY

6. 6 GFNorte´s Net Income MILLION PESOS Banking Long Term Savings Auxiliary Organizations Holding GFNORTE Brokerage 1H04 994 103 43 (9) 1,172 41 1H05 2,791 229 94 (3) 3,142 42 168% 181% 122% 121% N.A. 3% QoQ Variations Pronegocio -(12)N.A. 2Q04 541 17 24 (4) 588 10 2Q05 1,890 101 51 (1) 2,049 16 -(8) YoY 249% 250% 502% 109% N.A. 68% N.A.

7. 7 Recurrent Net Income 2,346 VAT 684 AHMSA 215 IPAB(103) IPAB Audits (71) Provisions – IPAB Prepayments (32) Extraordinary Items 796 Total 3,142 Million pesos Net Income 1H05

8. 8 GFNorte´s Income Statement MILLION PESOS 1H04 Variations 4,493 2,175 259 287 3,002 7,495 5,691 1,804 77 (268) 1,172 (468) 27 39% (1%) (5%) (66%) 3%3% 24%24% (7%) 122% 1,147% 356% 168% 36% (19%) 1H05 6,246 2,150 246 98 3,082 9,328 5,318 4,010 964 (1,219) 3,142 (635) 22 QoQ YoY 48% (2%) (38%) (76%) 27% 40%40% (4%) 199% 261% 651% 249% 17% 1% 2Q04 2,285 1,062 130 157 1,281 3,566 2,789 777 257 (107) 588 (331) (7) 2Q05 3,378 1,042 80 38 1,625 5,003 2,679 2,324 928 (808) 2,049 (388) (8) Net Interest Income after Repomo Services Recovery Forex Non Interest Income Total Income Non Interest Expense Net Operating Income Non Operating Income (net) Income tax and profit sharing Net Income Loan loss and loss sharing provis. Subsidiaries and minority interest Trading(68)465280587N.C.109%

9. 9 Net Interest Margin vs. CETES PERCENTAGES CETES NIM 4.2 4.4 1Q042Q04 5.1 3Q04 75% 88% 4Q04 6.2 1Q05 7.3 5.6 6.3 7.1 8.1 9.0 9.7 8.5 2Q05

10. 10 Non Interest Income Recovery 41% Trading & FX 27% Services 32% Recovery 8% Trading & FX 22% 1H011H05 Services 70% $1.35 billion pesos $3.08 billion pesos 128 %

11. 11 Non Interest Expense BILLION PESOS EFFICIENCY RATIO Total Expense 1H04 5.7 1H05 5.3 2Q042Q05 (7%) 76%76% 57%57% Including one offs 53%53% 2Q03 86%86%

12. 12 Core Deposits BILLION PESOS Demand Time Total Mix Demand Time Deposits2Q042Q051Q05 64 36 100 64% 36% 62 36 98 63% 37% 100% 66 37 103 64% 36% 100%

13. 13 BILLION PESOS Performing Loan Portfolio 2Q041Q042Q05 QoQ Variation YoY 2Q041Q052Q05 80 91 96 Commercial3034354%4%17% Corporate1415 2%2%12% Government1013 2%2%28% Total8091965%5%19% Consumer263032328%8%23%

14. 14 Performing Consumer Loan Portfolio 2Q041Q052Q05 26 30 32 6661%2% 34521%51% 22213%46% Consumer2630328%23% Car loans Credit Card Payroll loans 1518197%23% Mortgage BILLION PESOS 2Q041Q052Q05 QoQ Variation YoY

15. 15 Loan Portfolio Transformation 2Q01 2Q05 $29.2 billion pesos $95.6 billion pesos 227% Corporate 31% Commercial & Consumer 54% Government 15% Corporate 16% Commercial & Consumer 70% Government 14%

16. 16 Asset Quality Past Due Loans Loan Loss Reserves 2Q041Q052Q05 Reserve CoveragePast due loan ratio Total Loan Portfolio BILLION PESOS 3.01.8 3.92.72.9 859599 160.6% 130.7%154.1% 2Q041Q052Q05 1.8% 3.5% 1.9% 2Q041Q052Q05

17. 17 Banking Sector’s Capitalization Ratio Tier 1 Tier 2 TOTAL 2Q032Q042Q05 Percentage of Tier 1 11.2%10.7%14.1% 2.4%3.8%3.3% 13.6%14.5%17.4% 82%74%81%

18. 18 Recovery Bank

19. 19 Recovery Bank Net Income 1H031H05 Proprietary 51% Managed 49% Proprietary 29% Managed 71% MILLION PESOS 1H031H041H05 106278337

20. 20 Long Term Savings Sector

21. 21 Long Term Savings Sector NET INCOME Billion pesos Afore 52 76 1H041H05 49% Insurance 34 128 1H041H05 271% Annuities 17 25 1H041H05 42% Long Term Savings Sector 103 229 1H041H05 122%

22. 22 Afore CUSTOMERS Millions 24 29 2Q032Q04 34 2Q05 2.9 2.7 3.0 2Q032Q042Q05 42% 11% ASSETS UNDER MANAGEMENT BILLION PESOS

23. 23 Insurance CUSTOMERS Millones 1.0 0.8 2.4 2.2 1.3 3.1 1H031H041H05 2Q032Q042Q05 140% 138% PREMIUMS SOLD BILLION PESOS

24. 24 GFNorte´s ROE and ROA 1H04 1% 4% 1H05 ROE 37% 1H05 16% 1H04 ROA 28% Recurrent 3% Recurrent

25. 25 2. Snapshot of New Products

26. 26 Pronegocio Evolution Jan ‘05 Jan ‘05 Authorization from Hacienda. 25 Jul ‘05 25 Jul ‘05 36 branches operating. 4 to be open in 2H05. Characteristics of the Loans: Amount:$10 to $50 thousand pesos. Interest Rate: 3.5% - 4% per month. Initial fee: 3%. Term:Up to 24 months. Guarantee:80% from NAFIN. Results as of July 25: 5,968 clients. $145 million pesos of loans.

27. 27 “Ya bájale” Mar´05 L Mar´05 Launch of credit card balance transferring program. Characteristics: 25% fix interest rate. Term: 6 to 36 months. 4 months at 0% interest rate. No annual fee. sults as of July 25: Results as of July 25: 22,647 clients $630 million pesos in loans. $28 thousand pesos of average balance per client. 70% rejection rate.

28. 28 Banorte Fácil Nov´04 L Nov´04 Launching of Banorte Fácil debit card. Characteristics: No minimum balance. No fees. Accepted in ATM´s and stores. Results as of July 26: 214,437 accounts activated. 1,700 accounts opened daily on average. $646 million pesos balance.

29. 29 BANORTE –TELECOMM Alliance Jul´05 Jul´05 Alliance with Telecomm. GFNorte will be able to use its 1,554 branches. Largest payment network in the country. Increase revenues via commissions and deposits. Penetrate in 518 municipalities currently un-banked. Benefits: Stage I: Pilot Program in San Luis Potosi (3 months). Stage II: Expand to a national level starting November 2005. Stage III: Promote new products and services. Program implementation in 3 stages:

30. 30 3. Economic Environment

31. 31 Economic Outlook Variables20052006 GDP3.60%3.20% Inflation3.80%3.65% 28 days Cetes (Average)9.36%8.30% Dollar exchange rate (End of period)11.4011.80 Trade balance(10,500)(12,000) FDI14,50013,500 Fiscal stance (% GDP)(0.15%) Macroeconomic variables 2005-2006

32. 32 Current Economic and Political Environment in Mexico  Mexican macroeconomic fundamentals continue strong, sustained by prudent fiscal and monetary policies.  However, political noise could generate market volatility by the end of 2005. At present, the market is focusing in the selection of presidential candidates.  Mexico City´s Mayor, Andrés López Obrador, is today the leading man on the 2006 presidential polls with a wide margin.  On the positive side, both Institutional build up, as well as solid fundamentals, shield against populism and/or bad economic management.  On the negative side, there is low probability of structural reforms being approved, at best, until 2007.

33. 33 4. Final Remarks

34. 34 Vision 20/20. ROE of 20% sustainable. Net Income growth of 20% per year: doubling it every 4 years. Continue improving the efficiency ratio. Innovation and bancarization. Acquisition and retention of high worth customers. Long Term Goals

35. 35 Market Capitalization MILLION DOLLARS 1,792 1,420 2Q032Q04 3,365 2Q05 CAGR 54%

36. 36 Average Daily Volume MILLION DOLLARS 1H031H04 2.0 5.4 1H05 7.2

37. 37