1. 1 Retail Banking Presentation November 16, 2007. Banorte Day Miguel Huller Director General de Consumo

2. 2 Contents Market Overview Retail Lending Deposits Electronic Banking

3. 3 Retail Lending Evolution Retail lending had a dramatic growth at a CAGR of 39 % in the last years….. … and the major drivers were mortgages and credit cards growing at CAGR of 27% and 47 % respectively Retail lending portfolio in O/S Mortgage and Credit Cards O/S Source: Banxico Retail Banking – Overview - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 20002001200220032004200520062007 Credit CardMortgage P$ Million

4. 4 Also, the GDP per capita has grown…. … and inflation and interest rate have gone down. TIIE 28 Days Average Annual vs. Inflation GDP per Capita in US$ Retail Lending Evolution 7.6% 17.0% 12.8% 8.2% 6.8% 7.2% 9.6% 7.5% 3.4% 4.4% 5.7% 4.0% 5.2% 3.3% 4.1% 8.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20002001200220032004200520062007E TIIE 28 Days Average AnnualInflation Retail Banking – Overview Source: Banxico

5. 5 Retail Lending Evolution Year 2000 Year 2007 Interest RateTIIE + 8%Down to 9% fixed Term10 years15-30 years Type of Mortgage Residential Acquisition All Monthly Payment per thousand 2210 Downpayment35%5-10% Mortgage insuranceNoYes Minimum350,000170,000 Tax benefitsNoYes Comparison betwen Mortgage Loans Retail Banking – Overview

6. 6 Retail Lending Evolution Non guaranteed loans have grown as a percentage of the GDP … … but they are still way below other countries Non guaranteed loans as a % of GDP 0.8% 1.0% 1.2% 1.6% 2.1% 3.0% 4.1% 4.3% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 20002001200220032004200520061T07 15.9% 14.3% 11.4% 10.8% 9.6% 8.0% 6.5% 4.5% 3.4% 3.1% 3.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% USA UK Sweden Germany Spain France Portugal Turkey Italy Holland Hungary Mexico (2005) Retail Banking – Overview

7. 7 Bank Mortgages as a % of GDP Mortgage as a % of GDP Mortgages have also grown but with a lower share….. … still, it is dramatically below developed countries and other LA countries Retail Lending Evolution 65% 61% 43% 29% 16% 7% 1.5% 2% 0% 10% 20% 30% 40% 50% 60% 70% UKEEUU European union FranceChileMexico (banks) Brazil Retail Banking – Overview (2005)

8. 8 RetailEnterprises SME Corporate and Government Middle Market Entry Level Affluent Middle Market Retail Banking – Overview

9. 9 Mortgage Car Loan Payroll / Personal Loan Credit Card ATM POS/Debit Internet Banking Telephone Banking Mobile Banking Checking accounts Saving accounts Payroll accounts Cash management 26% % Revenue/ Total GFNorte: 7% 32% % Revenue/ Total GFNorte: Retail & Commercial: (9M 2007) Retail Banking – Overview

10. 10 Retail Lending

11. 11 Retail Lending Represents 37% of Banorte’s Total Outstandings with P$ 60 (Billions) ROA: 3.1% Banorte: (9M 2007) ROA: 1.8% Retail Lending

12. 12 Distribution of Outstandings by Type of Loan (9M 2007) Retail Lending

13. 13 Mortgage

14. 14 Residential acquisition Home Equity Debt consolidation Construction and renovation Land acquisition Commercial acquisition Banorte has a Mortgage solution for every customer need… … with great features and benefits 5% 8% 87% Mortgage

15. 15 Branches Distribution of sales by Channel in outstandings 2004 Mortgage Centres Branches 2007 Brokers Mortgage

16. 16 Mortgage Sales in P$ (Billions) Average loan in P$: 667,800 Banks’ average mortgage in P$: 609,000 CAGR = 27.4 % Mortgage Average loan period: 212 Months

17. 17 * Growth considering the sale of FOVISSSTE portfolio and Securitization. Total Year End Outstandings in P$ (Billions) CAGR = 21.9 % * * Mortgage

18. 18 Past Due Loan Ratio by Booking year in P$ (Millions) Year BookedOutstandings PDLR 32,081 2.4% Total Banorte before 1997115 19.2% Bancrecer1,222 8.4% Banorte after 199730,744 1.2% Mortgage

19. 19 Past Due Loan Ratio by property value in P$ (Millions) Property Value Outstandings PDLR Total 32,081 1.2% Less than 300,0001,168 3.6%2.0% 300,000 - 500,0003,648 11.4%1.2% 500,000 - 700,0005,853 18.2%0.9% 700,000 - 900,0003,868 12.1%1.2% More than 900,00017,543 54.7%1.3% % 100% Mortgage

20. 20 Past Due Loan Ratio by Bank PDLR 6.2% PDLR 3.0% HSBCScotiaBBVABanamexBanorteSantander (Source: Mexican Bank Association) Mortgage

21. 21 Innovation: new products and features Efficient credit adjudication process Conservative risk management policies Long term customer relationship Strong relationship with developers Present and future: Key success factors Meet our costumers needs, with asset quality in a highly competitive Mexican mortgage market… Mortgage

22. 22 Figures in Million pesos (P$) Mexican Bankers Association Mexico City Monterrey Guadalajara Regional Strategy by market potential Present and Future Key Success Factors Market sales 07 (%) Avg. Market Share $40,895 75% 10.0% $11,16920% 21.0% $2,1745% 19.0% Market sales 07 (%) Avg. Market Share Market sales 07 (%) Avg. Market Share Strategies Expected Intensive High Growth Moderate Mantain & Moderated Growth Medium Moderated Growth Mortgage

23. 23 Car Loan

24. 24 Total Year End Outstandings in P$ (Billions) CAGR = 6.4 % Car Loan

25. 25 Car loan Sales in P$ (Billions) CAGR = 8.6 % Average loan in P$ 171,000 Industry’s Average Loan in P$ 142,000 Car Loan Average loan period: 46 Months

26. 26 Car sales by segment 2007e Car Loan

27. 27 Car Loans as a % of new cars sold in México Car Loan 200520062007e Dealer Loans58%59%58% Bank Loans31%32%35% Self financing10%8%7%

28. 28 Past Due Loan ratio by bank PDLR 2.0% PDLR 2.8% HSBCScotia BBVABanamex Banorte (Source: Mexican Bank Association) Car Loan

29. 29 Target: high value cars and enterprises Special sales force for car dealers Special offer for existing clients to trade up their cars Attach car loans to payroll accounts to leverage on asset quality Launch new products: leasing Improvement in credit adjudication process Present and future: Key success factors Car Loan

30. 30 Payroll & Personal Loans

31. 31 CAGR = 36.3 % Total Year End Outstandings in P$ (Billions) Payroll & Personal Loan

32. 32 Payroll and Personal Sales in P$ (Billions) Average loan in P$ 22,576 Industry’s Average Loan in P$ 13,000 CAGR = 29.2 % Payroll & Personal Loan Average loan period: 23 Months

33. 33 % Payroll Loans / Payroll Accounts Payroll Accounts (Units) Payroll Loans (Units) Year % Loans / Accounts 20041,54520713% 20051,73626315% 20061,94730216% 2007 2,184 34116% (Thousand Units) Estimated growth of 358,000 net new payroll accounts for 2008 Payroll & Personal Loan

34. 34 PDLR 2.0% PDLR 2.3% ScotiaBBVABanamexBanorteSantanderHSBC Past Due Loan ratio by bank (Source: Mexican Bank Association) Payroll & Personal Loan

35. 35 Migrate customer mindset from fixed term loan to line of credit Diversify credit disbursement channels from branches ATM and internet banking New products and offers for first timers. Channel diversification : sales force on site clients Cross selling / pre-authorized credits Existing Clients New Clients Present And Future: Key Success Factors Payroll & Personal Loan

36. 36 Credit Card

37. 37 Cards Sold in Thousand CAGR = 56.4 % Credit Card

38. 38 Cards Portfolio in Thousand CAGR = 57.1 % Credit Card

39. 39 Sales Channel Diversification TelemarketingCrossin sellingBalance Tranfers Program Suplementary Cards Branches Credit Card

40. 40 Purchases & Cash Advances in P$ (Billions) Market Share: 5.0 % as of Sep 07 from 4.6 % Sep 06 CAGR = 26% Credit Card

41. 41 4 7 10 13 CAGR = 48.1 % Total Year End Outstandings in P$ (Billions) Credit Card

42. 42 Product Mix Platinum Infinite Entry Level Gold Standard Mujer Classic Standard Instant Issuing SME Corporate RetailEnterprises New Products Credit Limit in P$ $ 3,000 $ 6,000 $ 10,000 $ 250,000 $ 200,000 $ 40,000 Credit Limit in P$ Credit Card

43. 43 Past Due Loan Ratio by Bank PDLR 2.8% PDLR 6.3% HSBCScotiaBBVABanamexBanorteSantander (Source: Mexican Bank Association) 60+ 90+ Credit Card

44. 44 Credit Cards in México (Source: Mexican Credit Bureau) 35.9 millions cards (sept 07) 2.46 cards per client Past Due Loan Ratio (90+) Credit Card

45. 45 Sales channel diversification & consolidation Portfolio management Product development / Co-branded cards Balance transfers / Convenience checks Credit Risk Management / Risk based pricing Technological & operational efficiencies Present and Future : Key Success Factors Credit Card

46. 46 Cards Market Market size (%) Avg. Market Share 21.683% 3.5% 3.513% 11.1% 0.9 4% 5.6% Market size (%) Avg. Market Share Market size (%) Avg. Market Share Strategies Expected Intensive High Growth Moderate Mantain & Moderated Growth Medium Moderated Growth Credit Card Present and Future : Key Success Factors Mexico City Monterrey Guadalajara

47. 47 Deposits

48. 48 Total Number of Local Currency Account (millions) CAGR = 25.4% Deposits

49. 49 Total Year End Balances in P$ (Billions) CAGR = 11.9 % Deposits

50. 50 Average Funding Cost (As a % of CETES 28) (Source: Mexican Bank Association) Deposits

51. 51 $124 37% 31% 32% Deposits Total Year End Balances in P$ (Billions)

52. 52 YoY Sep ‘06 – Sep ‘07 Banorte’s Market Share CAGR = 4.6 % Deposit’s Growth Deposits

53. 53 Suma Ahorro Medium Enterprises Corporate / Government Small Business Packaged Solution Tailor Made Solutions Payroll POS Checking E – Banking SME Credit Card Checking Cash Management Payroll Collections Services Corporate Credit Card Merchant Acquiring Services Increase Share of Wallet Enterprises Strategies Present and Future Key Success Factors Deposits

54. 54 Suma Ahorro Entry Level Account Products according to customer needs Savings Checking Private Banking Payroll Cross Sell E-Banking Investments Loans Insurance Credit cards Mortgages Increase Share of Wallet Bancarization Retail Strategies Present and Future Key Success Factors Deposits

55. 55 Figures P$ Millions Strategies Expected Intensive High Growth Moderate Mantain & Moderated Growth Medium Moderated Growth Market size (%) Avg. Market Share $945,00075% 8.0% $260,00020% 24.0% $62,0005% 11.0% Market size (%) Avg. Market Share Market size (%) Avg. Market Share Mexico City Monterrey Guadalajara Regional Strategy by market potential Present and Future Key Success Factors Deposits

56. 56 Electronic Banking Self Service Banking

57. 57 Self-Service Banking Customer needs, retail & commercial, demand 24/7, multi-channel, secure and real time service. ATM POS Online Banking Telephone Banking Mobile Banking E-Banking Client

58. 58 Conclusions

59. 59 The Challenges Regulation New players Sales channel diversification Retail Banking

60. 60 The Strategy Strong focus on execution and results Innovation maximizing technology Large customer base Well developed branch network and infrastructure Risk management Strong brand positioning LEVERAGE ON OUR STRENGHTS… …MOVING FASTER THAN OUR COMPETITORS Retail Banking

61. 61  From product focus to customer development  Costumer service / Self service banking  Leverage branch network  Think outside the branch  Product bundling  Segments and niche focus  New tools: Credit adjudication and behavior score  Risk based pricing Retail Banking Customer Sales Growth Innovation Asset Quality The Future

62. 62 Retail Banking Bank Perspective Checking Savings Mortgage Credit Customer Perspective (Needs) Home Investments Car Transactions Retirement Plan Senior Borrower Youth Student “I Need a ….” “I am a ….” Home Buyer Solution Bank and Customer Perspective (Solutions) Retirement Solutions Student Solutions Credit Lines Credit Lines Savings Home Insurance Home Insurance Mortgage Brokerage Retirement Home Mortgage Retirement Home Mortgage Annuities Mutual Funds Mutual Funds Credit Card Credit Card Student Loans Student Loans High Interest Savings High Interest Savings Checking

63. 63  Leverage branch network  Think outside the branch  New tools: Credit adjudication and behavior score  Risk based pricing Retail Banking Customer Sales Growth Innovation Asset Quality  From product focus to customer development  Costumer service / Self service banking  Product bundling  Segments and niche focus The Future

64. 64 Analytics Engine Sound Risk Policies and Strategies Credit Risk Management Originations Performance Management Collections Enabling Technology Platform People Retail Banking

65. 65  Leverage branch network  Think outside the branch  New tools: Credit adjudication and behavior score  Risk based pricing Retail Banking Customer Sales Growth Innovation Asset Quality  From product focus to customer development  Costumer service / Self service banking  Product bundling  Segments and niche focus The Future

66. 66 Certain statements in this document are “forward-looking statement”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors.

67. 67