1. 1 GFNorte: 3Q05 Results November-2005

2. 2 Contents 1.3Q05 Results 2.Snapshot of New Products 3.Economic & Political Environment 4.Final Remarks

3. 3 1. 3Q05 Results

4. 4 GFNorte Highlights Million Pesos 9M05 Net Income ROE Stock Price EPS P/BV 9M04 Net Interest Margin 159% 4,487 34% 79% 42% 96.15 8.89 2.43 8.0% 159% Net Income w/o one offs3,686 90% ROE w/o one offs28% 1,731 15% 53.78 3.43 1.71 4.6% 1,938 17%17% Performing Loan Growth Past Due Loan Ratio Reserve Coverage 22% 1.8% 165% 16% 3.3% 128%

5. 5 Net Income Evolution 1,326(36%)140% Net Income 1,3265%75%Net Income w/o one offs 3T042T053T05 QoQ Change YoY Million Pesos 5522,062 7591,261

6. 6 Net Income by Business Units Million Pesos Banking Long Term Savings Factoring and Leasing Holding GFNORTE Brokerage 9M049M05 QoQ Change Pronegocio 3Q043Q05 YoY 1,382 229 81 (14) 1,731 53 3,941 371 136 (5) 4,487 55 159% 185% 62% 69% N.C. 2% -(10)N.C. 382 125 37 (5) 552 13 1,133 140 41 (2) 1,326 13 -2 140% 197% 12% 9% N.C. (1%) N.C.

7. 7 Income Statement Net Interest Income Services Recovery Forex and Trading 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 Sharing Provisions Subsidiaries and Minority Interest 9M04 Change 7,181 3,353 452 683 4,488 11,669 8,762 2,907 22 (410) 1,731 (833) 46 33% (1%) 24% 37% 8%8% 23%23% (6%) 113% 4,583% 311% 159% 32% 17% 9M05 9,572 3,325 562 939 4,826 14,398 8,206 6,192 1,026 (1,687) 4,487 (1,098) 54 QoQ Million Pesos YoY 24%24% - 61% 114% 17% 21%21% (6%) 98% 200% 226% 140% 27%27% 78% 3Q04 2,660 1,163 191 113 1,467 4,127 3,035 1,092 (56) (141) 552 (361) 18 3Q05 3,295 1,168 308 242 1,718 5,013 2,855 2,158 5656 (460) 1,326 (459) 32

8. 8 ROE and ROA 9M04 1%1% 3.4% 9M05 ROE 33.6% 9M05 15.3% 9M04 ROA 27.5% Recurrent Profits 2.8% Recurrent Profits

9. 9 Non Interest Expense Billion Pesos Efficiency Ratio Total Expense 9M04 8.7 9M05 8.2 75% 9M04 58% 9M05 (6%) 53% Includes one offs

10. 10 NIM vs. CETES Percentages CETES 1Q042Q043Q04 87% 4Q041Q05 5.6 6.3 7.1 8.1 9.0 9.7 2Q05 9.5 3Q05 NIM 4.2 4.4 5.1 75% 6.2 7.3 8.5 8.3 Note: Not drawn to scale

11. 11 Core Deposits Demand Time Total Mix Demand Time Deposits3Q043Q052Q05 Billion Pesos 66 38 104 64% 36% 62 38 100 62% 38% 100% 65 38 103 63% 37% 100%

12. 12 Billion Pesos Performing Loan Portfolio 3Q042Q053Q05 QoQ Change YoY 3Q042Q053Q05 83 96 101 Commercial362%2%14% Corporate1711%24% Government 132%2%31% Total1015%5%22% Consumer357%7%25% 3235 1416 1013 8396 2832

13. 13 Performing Consumer Loan Portfolio 3Q042Q053Q05 28 32 35 6(1%)1% 614%58% 319%54% Consumer357%25% Car Loans Credit Cards Payroll Loans 206%24% Mortgage Billion Pesos 3Q042Q053Q05 QoQ Change YoY 66 45 22 2832 1619

14. 14 Asset Quality Past Due Loans Loan Loss Reserves 3Q042Q053Q05 Reserve Coverage 1.9 3.1 Past Due Loan Ratio Total Loan Portfolio105 Billion Pesos 3.01.8 3.72.9 88100 165% 128% 161% 3Q042Q053Q05 1.8% 3.3% 1.8% 3Q042Q053Q05

15. 15 Banking Sector’s Capitalization Ratio Tier 1 Tier 2 TOTAL 14.9% 3.2% 18.1% 3Q033Q043Q05 Percentage of Tier 182% 11.4% 2.4%3.8% 13.8%15.3% 83%75%

16. 16 Recovery Bank

17. 17 Recovery Bank Net Income 9M039M05 Managed 25% Million Pesos 9M03 342 9M04 446 9M05 651 Proprietary 33% Managed 67% Portfolio Proprietary 75%

18. 18 Recovery Bank ASSETS UNDER MANAGEMENT 27 26 24 21 20 17 14 12 18 17 21 23 2001200220033Q04 Banorte Risk Serfin IPAB 65 60 59 56 Billion Pesos 5 11 47 3Q05 64

19. 19 Recovery Bank Banorte has purchased 49% of the total portfolio auctioned in Mexico. In 3Q05, a total of Ps $12,595 million in book value was acquired. Seller Nominal Value (million pesos) 8,945GMAC 2,484 Bancomer / IPAB 780Bancomer / IPAB 386Banorte/ IPAB 12,595Total Price Paid (cents for every peso) 4 34 23 39 12

20. 20 Long Term Savings

21. 21 Long Term Savings Net Income Million Pesos Afore 97 132 9M049M05 36% Insurance 108 193 9M049M05 79% Annuities 25 46 9M049M05 88% Total 229 371 9M049M05 62%

22. 22 2. Snapshot of New Products

23. 23 Snapshot of New Products Clients: 10,477. Portfolio: $232 million. Average loan per client: $22,143 pesos. Results up to September 30 Clients: 33,351. Portfolio: $929 million. Average balance per client: $27,855 pesos. + 76% vs July’05 + 47% vs July’05

24. 24 Snapshot of New Products Opened accounts: 319,038. Balance: $886 million pesos. Average accounts opened daily: 1,690. Results up to September 30 Banorte Fácil new accounts: 538 in 151 Telecomm offices. Average balance per account: $ 2,122. Estimated new accounts in one year: 96,600. + 49% vs July’05

25. 25 Characteristics: Package of products and services oriented towards women. Credit card and life insurance optional. Results up to September 30: Opened accounts: 46,484. Deposits: $1.12 billion pesos. Snapshot of New Products

26. 26 3. Economic & Political Environment

27. 27 Economic Environment Mexico’s pace of growth has slowed, but there are signs of recovery. GDP growth was close to 3% in 3Q05. Even though a moderate pace of growth is expected for the coming months, there are signs of some improvement. The economy is expected to post a real annual rate of 3.1% this year and 3.2% in 2006. Job creation continues lagging employment needs. Fundamentals remain strong. Proactive public debt management has allowed Mexico to prepay obligations for the next 2 years. International reserves stand close to 70 billion dollars. Due to high oil prices and strong remittances, the expected current account deficit for 2005 is 1% of GDP and 1.2% for 2006.

28. 28 Economic Environment Inflation is easing, but risks remain. Inflation is rapidly falling, allowing Banxico to start easing the monetary stance. Expected inflation for 2005 is 3.35% and for 2006 is 3.63%, within Banxico’s target range. Core inflation is currently at 3.2%, the lowest level ever registered. Risks remain, mainly due to high energy prices, volatility in agricultural prices, and inflation expectations. This, in addition to an uncertain political environment, will probably put upward pressure to interest rates. So far, the political environment has not affected market behavior. This could change in 2006.

29. 29 Political Environment Political heat is increasing as the parties select their candidates. PRI Madrazo will run with an increasingly fragmented party. Montiel resigned due to corruption scandals. Mrs. Gordillo, Teacher’s Union and Governors will play an important role. PAN Calderón won the process in spite of the imposition of Creel by los Pinos. Party discipline is prevailing. The PAN is back on the race. PRD López Obrador is the man to beat. Party frictions emerging due to Ebrard imposition in Mexico City by AMLO.

30. 30 4. Final Remarks

31. 31 Performance of IPC vs. GFNorte 2004 IPC 50% IPC 22% January – October 2005 Banorte 83% Banorte 31% Annual Change

32. 32 Daily Turnover Million Dollars 3Q033Q04 2.6 6.7 3Q05 7.8

33. 33 Market Capitalization Million Dollars 2,393 1,517 3Q033Q04 4,505 3Q05 CAGR 72%

34. 34 Market Value 8 12 16 16%18%20%22%24%26%28% 2001 1,036 2002 1,224 2003 2004 3,174 4,505 Sep 30 ‘05 6 10 14 P/E ROE 1,751 Million Dollars

35. 35 2005 Dividend

36. 36 2005 Dividend CASH DIVIDEND Minimum payout policy of 15% for third year in a row: 2005: 24%. 2004: 23%. 2003: 18%. Ps $1.25 pesos per share paid on October 20. Yield (Oct 20): 1.4%.

37. 37 2005 Dividend $19,972 Suscribed Capital $7,276 Before $7,398 $12,696 $12,574 Earned Capital $19,972 Shareholder’s Equity Million Pesos Share Ratio 1:4 $5,298 million = 1,514 million shares 504.6 Million shares 2,018 Million shares After PAID IN CAPITAL INCREASE 3 new shares per existing one. Capital stays the same but liquidity increases.

38. 38 Challenges 2006

39. 39 Challenges 2006 Recomposition of competitive map. Political environment: correct reading. Increase market share in deposits. Consolidation of new initiatives. Discipline in operating expenses. Strengthen position in mutual funds. Maintain discipline in risk management.

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