1. 1 7th Latin American Banking Conference Salomon Smith Barney New York March 08, 2001

2. 2 I. 2000 RESULTS Relevant Information Relevant Information Profitability Profitability Asset Quality Asset Quality Capitalization Capitalization Other Sectors Other Sectors Internet Internet Efficiency Projects & Alliances Efficiency Projects & Alliances II. MANAGEMENT’S VISION & STRATEGIES Contents

3. 3 I. RESULTS 2000

4. 4 Relevant Information w Banorte created provisions in 3Q00 against stockholder’s equity for 1,737.7 million pesos to cover all contingencies with Fobaproa and to comply with YR2003 capital rules. w GFNorte 2000 accumulated profit of Ps 1,677.3 million, a 36% increase over that of 1999, obtaining a ROE of 21%. The Banking Sector obtained profits of Ps 1,463.9 million, showing a 48%growth in the same period, excluding Pension Funds. w During 2000, GFNorte’s Non Interest Expense decreased by 13.0% compared to 1999. The Banking Sector decreased 15% in this line for the same period. w The Banking Sector performing commercial, mortgage and consumer loans increased by 23% in the year, meanwhile total past dues decreased by 17%. w The Banking Sector past due loan ratio decreased from 5.8% to 5.1% and the Reserve coverage stood at 101.1%. w The Banking Sector capitalization ratio was 12.0% with, Tier 1 of 11.1% and Tier 2 of 1.0%, using 2003 rules.

5. 5 w Banorte strengthened its capital base to fully create provisions for Fobaproa and YR2003 and to take advantage of the tax loss carry-forward in Bancentro, which amounts Ps 1,735 million* by the end of 2000. Relevant Information Banorte Bancentro Equity $ 1,217 w Traditional Banking Business w Money market from Brokerage House w Bancentro’s Fobaproa assets w Serfín loans management w Afore from Banorte w Brokerage House Mutual Funds administration Brokerage House Brokerage House Equity $290 w Capital market business w Investment banking * Representing 35% of total cummulative losses for Bancentro (Ps $4,957 million)

6. 6 GFNORTE Auxiliary Organizations 5.3% Long Term Saving 8.3% Group’s Integration % Group´s Investment in Subsidiaries. December 2000. Bancentro Banorte (Banpais) Banorte (Banpais) Banking 84.4%2.0% Brokerage Annuities Pension Funds Insurance Factoring Warehousing Leasing Bonding Brokerage House

7. 7 Banorte became a national bank improving its market position Dec 96 % Branches1562.3 States7 Dec 00 452 32 5.9 % 3.67.8 9.23.3 Dec ‘96 % Branches 10°5° 10°4° 6.811.8 5° MARKET COVERAGE Rank Dec ‘00 %Rank Market 14°6° BANORTE BANCENTRO BANPAIS Total Deposits Loans Non Interest Deposits Source: A B.M. Mkt. % for deposits excludes Financial Intermediaries and refers to Banking Sector exclusively. Loans include Fobaproa and source CNBV (September 2000).

8. 8 GFNorte’s organization is structured for servicing clients BANORTE’S GENERAL DIRECTION Government Banking Investor Relations NON TRADITIONAL BANKING BUSINESS Specialized areas Commercial, Corporate, Middle Sector and Private Banking Territorials Monterrey, West, México City, Northeast, Northwest and Southeast Marketing Legal Treasury e - Business Long Term Savings Sector Recovery Bank Corporate Development Corporate Development Public Relations DON ROBERTO GONZALEZ BARRERA President DON ROBERTO GONZALEZ BARRERA President Corporate Examiner SUPPORT & CONTROL Risk Management Technology and Operations Human Resources Planning and Control OTHÓN RUIZ MONTEMAYOR Vice-President & GFNorte’s General Director OTHÓN RUIZ MONTEMAYOR Vice-President & GFNorte’s General Director

9. 9 A stock option for senior management was implemented w The stock option plan started on October, 2000. w 24 key top executives are benefited in the first stage. w The objectives of this plan are: - Retain key people - Move top management to maximize share value - Attract new top executives w 4.8 million shares were acquired for this program. (1% of total shares outstanding as of Dec/00) w An equivalent to one year of monthly salary is the amount assigned to each executive in the 3 year stock option program.

10. 10 Banorte has a national presence M.S. Market Share Millions Ps. * Includes Modules ** Excludes centralized Operations. TOTAL M.S. Branches* 452 5.9% Deposits** $98,207 7.8% TOTAL M.S. Branches* 452 5.9% Deposits** $98,207 7.8% December 2000 Tot. M.S. Branches 68 13.4 Total deposits $14,26623.3 Tot. M.S. Branches 100 5.4 Total Deposits $22,032 3.8 Tot. M.S. Branches 32 3.9 Total Deposits $4,192 4.6 Tot. M.S. Branches 118 15.0 Total Deposits $36,02029.2 Tot. M.S. Branches 104 8.8 Total Deposits $17,90011.1 Tot. M.S. Branches 30 3.8 Total Deposits $3,797 3.5 MONTERREY NORTHEAST MEXICO SOUTHEAST WEST NORTHWEST

11. 11 Includes the Banking and Brokerage Sectors. 142 301 627 889 1,900 2,324 1994‘95‘96‘97‘98‘99 2,818 2000 Checking Account 50.3% Investment 38.7% Credit Card 5.6% Credits 1.9% Money Market 1.7% Mortgage 1.5% Brokerage 0.3% Total Accounts 100.0% Products % Accounts Our Client base has increased through time as Banorte has reinforced its presence in traditional entities and moved further into new territories NUMBER OF CLIENTS (Thousands)

12. 12 Supported on Banorte´s technological platform, electronic and phone banking have grown aggressively December 2000; * Tradicional & Internet; Call Center = Number of calls Transactions 2000 (millions) 130 212 408 986 1,341 1,434 218 990 1,988 3,318 4,548 6,286 1,538 2,458 3,750 6,398 9,512 9,037 199419951996199719981999 2000 POS PC Banking ATM’s 7.4 17.5* 100.7 Call Center 10.1 Units

13. 13 TRANSACTIONS BY DISTRIBUTION CHANNEL 2000 5.6% BRANCH ATM PC BANKING TELEPHONE BANKING POS INTERNET More than 50% of all transactions are channelled through electronic banking 3.6% 1.6% 37.3% 44.7% 7.2% Dec, 2000.

14. 14 Profitability

15. 15 ACCUMULATED NET INCOME Book Value 10.3 8.9 13.7 15.7 16.0 15.2 Per Share (*) 1,521.9 1,234.0 1,557.0 685.6 705.1 '95'96'97'98'99 1,677.3 ‘00 828.8 1,135.5 GFNorte has maintained constant earnings growth Extraordinary Income Millions as of December 2000.(*) Based on 493.2 millions of shares. Extraordinary Income: 1997: $693.1 & 1998: $421.5

16. 16 NET INCOME PER SHARE GFNorte has increased its net income per share by 36% 3.40 2.50 19992000 Pesos as of December 2000. 36 %

17. 17 ROE Source: Press Release each bank. 15% GFNorte increased it’s ROE maintaining a market leadership 21% 6% 21% BANACCI GFBVA- BANCOMER GFNORTE 5% GFBITAL 21% 20001999 GFNorte 15% GFSANTAND

18. 18 2000 GFNORTE EARNINGS 5% 4% 2% 3% 87% BANKING BROKERAGE LONG TERM SAVINGS HOLDING AUXILIARY ORGANIZATIONS A major contribution to earnings was that of the Banking Sector with 87% of total Group´s earnings

19. 19 The negative impact of interest rates and lower income from IPAB was more than offset by higher volumes of operations, non interest income and efficiency improvement Million of Ps. Data as of December 2000 Market interest rates dropped 6.3 percentual points in one year period. Important interest rate drop on IPAB notes. NON INTEREST EXPENSE 6,942 5,881 1999 2000 15% TOTAL NET INCOME 1,052 1,563 19992000 48% TOTAL GROSS INCOME 8,789 7,942 19992000 57% 1,928 2,005 822 1,336 Non Interest Income IPAB Margin 50% 5,524 5,115 Margin Operation 7% 10%

20. 20 57,317 41,473 19992000* 38 % $ 5,561 millions pesos ASSETS UNDER MANAGEMENT 2000 RECOVERY The Recovery Bank, that was created in 1997, had excellent results. At present time it has 761 employees distributed in 33 regional offices Cash 85% Others 15% Serfín $17,300 Loans Current Ps. * Includes $8,547 millions of own risk loans. Others includes repossesed assets, excluding restructurings.

21. 21 Asset Quality

22. 22 The Banking Sector performing commercial, mortgage and consumer loans showed a 23% increased in the year and past due loans decreased by 17% 23,912 19,483 19992000 23 % Millions as December 2000 Performing loans not includes IPAB, governmental and financial entities. 4,120 4,935 19992000 17 % PERFORMING LOANS PAST DUE LOANS

23. 23 PAST DUE LOAN RATIO Data as of Dec ‘00. Banorte has maintained a low level of past due loans BANAMEX BITAL BBVA - BANCOMER BANORTE SANTANDER- SERFIN 0.9% 3.7% 5.1% 7.1% 7.8% 3° 2000 5.1% 1999 5.8% Banorte Banking Sector

24. 24 RESERVE COVERAGE BANORTE BBV - BANCOMER BANAMEX BITAL SANTANDER- SERFIN 443.7% 102.5% 101.1% 111.8% 106.4% Banorte maintained a reserve coverage of 101.1% Data as of Dec ‘00.

25. 25 Capitalization

26. 26 CAPITALIZATION RATIO Capitalization ratio stood at 12.0% with rules of 2003 12.3% 12.0% 11.2% BANAMEX BBVA - BANCOMER BITAL BANORTE SANTANDER - SERFÍN 16.0% 15.4% 13.8% 14.3% 13.3% 20.7% W/O MARKET RISK Data as of December 2000. 20032000200120032000 RULES OF: 12.3%

27. 27 This strategy has shown good results that have been recognized by international rating agencies wIn January 9, 2001, Fitch: 4Granted a C/D rate for indivudual strength to Banorte, the highest for a mexican bank. 4Granted the BBB- rate for local currency and BB+ rate for foreign currency, been the latter limited only by the contry risk. 4A positive perspective that confirms the financial strength of Banorte.

28. 28 Others Sectors

29. 29 Millions as of December 2000. Wholesale Participation. 1) Sep ‘00. 2) Nov ‘00, 3) Jun ‘00. Market Share: Afore & Annuities: Number of Affiliated; Bancassurance: Premiums; Brokerage House: Assets under management; Factoring & Leasing: Total Loans. Other sectors are profitable and have gained market share Net Income Market Share Net Income Market Share 19992000 161.25.1%27.15.6% 1) 29.117.5%42.419.9% 1) 11.34.9%23.14.8% 2) 2.513.7 6.36.2 59.58.7%68.38.9% (6.4)0.9%4.61.0% 1) (23.8)6.7%(32.8)9.8% Brokerage House Leasing Factoring Warehousing Bonding Afore Bancassurance Annuities Long Term Savings: Brokerage Sector: Auxiliary Organizations: 1.0% N.A. 2.1% 3)

30. 30 Our Pension Funds Management company has shown an outstanding performance AFORE INDICATORS BANORTEINDUSTRY Ps 261 Ps 558 24.7%17.7% 55.9%27.7% Total Expenses per contributor 1) Contributing Affiliates growth * Commissions growth * 1) Source: Salomon Smith Barney, Private Pension Funds in Latin America. Published December 2000. Total expenses as of September 2000. * Source: ING Barings; Sep/2000 vs Sep/1999 in real terms.

31. 31www.banorte.com

32. 32 Since 1995 Banorte has had presence in Internet through www.banorte.com and has increased its acceptance in the market w Home Banking.- with more than 150,000 transactions per month and 30,000 clients. w Business PC Banking.- with more than 75,000 transactions per month and 3,400 business. w Our new services include: 4 Credit Card payments for e-commerce businesses and Internet virtual credit card. 4 Acquisition and payments of Banorte-Generali insurance policies by Internet. 4 Stock and mutual funds trading.

33. 33 Next steps in Internet w Increasing the functionality of service platforms besides making strategic alliances as a way of growth. w Increasing the volume of operations improving customer service quality and trust. w Developing new businesses. w Using Intranet to: 4 Support the commercial process 4 Transform the internal process w Motivating the development of a new technological architecture.

34. 34 Efficiency Projects & Alliances

35. 35 EVOLUCION Aimed to improve the efficiency of the Group’s operations, to control operative risk, to reduce the organizational structure cost and to improve internal control. TRANSFORMACION Implement a more efficient credit process that allows to optimize the risk and profitability levels. PROFITABILITY Automated profitability measurement of each business area by territory, branch, product and client. This tool is fundamental for decision making. In order to improve it’s operating efficiency, GFNorte has three main projects in process

36. 36 GFNorte has made several alliances aimed to improve its value Banorte’s clients will have access to this spanish bank and viceversa. Third most important business in money transfers from US to Mexico. Tourism spots development. Additionally, other specific associations:

37. 37 II. MANAGEMENT’S VISION & STRATEGIES

38. 38 GFNorte has followed a clear and sucessful strategy for increasing it’s profitability New Loans Non Interest Income Deposit Volume and Mix Non Interest Expense Recovery PROFITABILITY IPABIncome InterestRate Risk Control

39. 39