1. GFNORTE
2Q03 Results

2. 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.

3. 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.

4. 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

5. 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

6. 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.

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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.

13. 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 MILLIONS OF A EXTRAORDINARY INCOME FROM GENERALI.

14. 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.

15. 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

16. 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

17. 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

18. Quarterly Loan & Insurance placement8%
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

19. 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 (1)
145
Ps (2)
100 41
66%
59%
57%
71%
21%
1996
1997
2001
2002
2Q ’03
BILLION PESOS AS OF JUNE NET OF FOBAPROA CHECKING ACCOUNT AND LOSS SHARING PROVISIONS.
SHORT TERM LOANS TO SOCIEDAD HIPOTECARIA FEDERAL.
SALE OF LOANS TO SOLIDA ADMINISTRADORA DE PORTAFOLIOS.

20. 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.

21. 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.

22. Banorte’s Loan mix is shifting away from the Monterrey region
……and concentrating more in Mexico City
Dec01 Jun03
Loans 39% %
Branches 16% %
MONTERREY
Dec01 Jun03
Loans 13% 11%
Branches 14% %
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% %
NATIONAL
SOURCE: ABM DOES NOT INCLUDE BANCRECER FOR LOAN DISTRIBUTION.
LOANS EXCLUDES IPAB AND FOBAPROA AND CENTRALIZED OPERATIONS.

23. 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

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

25. 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.

26. 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

27. GFNORTE
2Q03 Results