Salomon Smith Barney 10 th Annual Latin American

Salomon Smith Barney 10 th. Annual Latin American Conference March 7 and 8, 2002 New York, NY

I. BANCRECER’S INTEGRATION

Bancrecer’s Acquisition. . . Acquisition Process of Bancrecer performed as expected. . . Oct 05 ‘ 01 Bancrecer’s acquisition contract was signed with IPAB. First payment by Ps 412. 5 million pesos was made. Nov 30 ‘ 01 Banorte received the authorization to acquire Bancrecer from SHCP. Dec 04 ‘ 01 The remaining Ps 1, 237. 5 million pesos payment was made for a total of Ps 1, 650 millions paid for Bancrecer. Additional Ps 15. 9 millions out of interests. Jan 02 ‘ 02 Banorte received 100% of Bancrecer’s shares ending IPAB’s administration period. Jan 04 ‘ 02 Bancrecer’s stockholders’ meeting took place defining the new Board of Directors (same Banorte’s and Bancen’s Board members). Mr. Federico Valenzuela Ochoa was appointed as the new Bancrecer CEO. Jan 08 ‘ 02 Banorte took over the administrative control of Bancrecer and began the integration of the different areas into GFNorte’s organizational structure. 3

Bancrecer will contribute to profits since the first year REVENUE GENERATION WILL COME FROM: Cost savings stemming from the use of Banorte’s infrastructure and organization Definition of the optimal operative & technological platform Increase in client base and cross-selling of Banorte’s products

Bancrecer´s aquisition improves Banorte´s ranking in Mexico BANORTE + BANCRECER Ranking 459 6° 1, 186 4° 1, 611 5° 2, 583 4° Total Deposits 2) Ps 89, 044 5° Ps 155, 550 4° Total Loans 2) Ps 79, 147 4° Ps 135, 435 3° Total Assets 2) Ps 99, 107 5° Ps 169, 892 4° Branches 1) ATM’s 1) 1) SOURCE A B. M. (DEC’ 01) 2) SOURCE CNBV (SEP. ’ 01 IN MILLIONS OF PESOS), INCLUDES FOBAPROA-IPAB

Bancrecer’s Integration October 5 th STAGE III STAGE IV (4 Q 01) (Jan 02) (1 Q 02) (Apr-Dec 02) Transitory Administration Banorte Administration Administrative Integration Operative Integration 4 SHCP Authorization 4 End of IPAB’s administration 4 Asset Spin off 6

Bancrecer’s Integration October 5 th STAGE III STAGE IV (4 Q 01) (Jan 02) (1 Q 02) (Apr-Dec 02) Transitory Administration Banorte Administration Administrative Integration Operative Integration Start: 4 Bancrecer’s areas integration 4 Begin Corporate Structure Rationalization 4 Acquisition Due Diligence 4 Technological alternatives evaluation 4 Optimum branch network definition Banorte consultants to define the 4 External takes control of Bancrecer’s On February, 15 th a personnel reduction Administration. technological platform during 1 Q’ 02. of 413 employees took place with a (Accenture & DMR from Spain). monthly pay roll of the main corporate 4 Since December, Ps 7. 8 millions, which represented a 12% reduction. Additional Estimate Banorte calendar days buildings of time: 60 and Bancrecer were reduction with voice, data and e-mail beginning January 2 th. connected is expected by the end of networks. march 2002. 4 In-depth study of profitability and 4 Computer centers of both institutions are to marketing. be integrated into Bancrecer’s Site located in u Close 96 Tlalpan, D. F. branches from Bancrecer. u Close 9 branches from Banorte. 4 Central processors will be replaced for new ones with more capacity.

Bancrecer’s Integration October 5 th STAGE III STAGE IV (4 Q 01) (Jan 02) (1 Q 02) (Apr-Dec 02) Transitory Administration Banorte Administration Administrative Integration Operative Integration 4 Technological Platform definition An 4 Link the two main frames 4 Close branches 4 End the structure rationalization 4 Begin the image change inter-operational project in branches is scheduled to begin by March 4 th. Bancrecer’s branches in the main cities will be rebranded in April. 8

Bancrecer’s Integration March 31 th October 5 th LEGAL MERGE OF BANCRECER STAGE III STAGE IV (4 Q 01) (Jan 02) (1 Q 02) (Apr-Dec 02) Transitory Administration Banorte Administration Administrative Integration Operative Integration 4 Technological and operative integration 4 Finish the image change 4 Asset divestment program

II. 2001 GFNORTE RESULTS

Highlights 2001 GFNorte’s Net Income (PS million) 1, 504 ROE 17. 2% EPS (Ps/per share) 3. 01 Book Value 18. 12 Capitalization Ratio 11. 5% Traditional Banking annual loan growth 11. 0% Consumer & Mortgage annual loan growth 69. 0% Total Deposits annual growth 12. 4%

The client base and the distribution channels have experienced an important growth 4, 678 1, 716 No. OF CLIENTS TRANSACTIONS PER DISTRIBUTION CHANNEL IN BANORTE 2, 818 2, 324 2, 962 1, 900 627 889 ‘ 96 ‘ 97 57. 9% ATM ‘ 98 ‘ 99 ‘ 01 ‘ 00 POS DISTRIBUTION CHANNELS 10, 210 4, 123 21. 2% BRANCHES PC BANKING E INTERNET 8. 2% PC Banking 12, 721 4, 209 2, 458 ATM’s POS 7. 0% 5. 7% 1, 611 990 212 ‘ 96 TELEPHONE BANKING 967 ‘ 98 ‘ 99 ‘ 00 ‘ 01 CLIENTS : INCLUDE THE BANKING SECTOR AND THE BROKERAGE HOUSE. Dic ‘ 01

GFNorte has followed a clear and successful strategy for increasing its profitability Deposit Volume and Mix Interest Rates New Loans Non Interest Income Non Interest Expense Profitability Criteria Recovery Bank Risk Control

Total Deposits increased by 12. 4%, driven by a 23. 8% increase in Third Party Deposits MILLIONS OF PESOS 109, 021 115, 835 121, 448 121, 716 122, 489 12. 4% 4 Q 00 DATA AS OF DECEMBER 1 Q 01 2 Q 01 3 Q 01 4 Q 01

During the last two years, the commercial and the consumer loan portfolios have grown considerably. . . the corporate loans have practically remained the same and those of the Recovery Banking decreased CONCEPTO COMMERCIAL Mortgage Credit Card Automobile Other DIC ‘ 01 DIC ‘ 99 8, 342 46% 1, 408 555 12, 205 2, 558 823 1, 292 211 535 204 CONSUMER 2, 709 80% 4, 876 CORPORATE 8, 119 7% 8, 668 RECOVERY BANKING 8, 880 (32%) 6, 049 TOTAL 28, 050 31, 798 13% BALANCES IN MILLIONS OF PESOS. IT DOES NOT INCLUDE LOANS TO FINANCIAL AND GOVERNMENT ENTITIES (PS 4, 421 IN DEC’ 01).

Traditional loan portfolio showed an increase of 11. 0%, driven by Consumer and Mortgage 80% Consumer and Mortgage 40% Traditional loan Portfolio Commercial 0% Corporate (40%) 4 Q 00 DATA AS OF DECEMBER ‘ 01. 1 Q 01 2 Q 01 3 Q 01 4 Q 01

Bancentro, Banpais and Bancrecer´s acquisitions played a fundamental role in GFNorte growth strategy. . . a big portion of the loan portfolio was substituted by FOBAPROA/IPAB loans and notes. AMOUNT 11, 137 Commercial Loans Loan Portfolio (Bancen y Banpaís) 35, 382 FOBAPROA/IPAB Loans USD Fobaproa Note. (Banpaís) 18, 591 IPAB Note (Bancrecer) 80% 4, 453 20% TOTAL Feb ‘ 97 Banorte 20, 256 49% 21, 494 51% 45, 145 71% 4, 771 TERM INTEREST RATE 2005 (Balance as of 31/Dec/01) BANORTE (Loss Sharing) * 97, 560 60% 91 Days Cete - 1. 35% 2010 2007 18, 492 2009 29% 46, 270 45, 782 40% TIIE + 0. 85% 51, 290 USD Cost of Funding. + 2% 35, 764 TIIE + 0. 40% $97, 560 Feb ‘ 97 Banorte+Bancen Dec ‘ 97 Banorte+Bancen + Banpaís MILLIONS OF PESOS OF DEC’ 2001. * INCLUDES USD 184 MILILON AT LIBOR (6 M) + 1% MATURING IN JUNE, 2006. Dec ‘ 01 Banking Sector Banorte + Bancrecer

GFNorte increased its national market share with the acquisition of Bancrecer DEPOSITS LOANS Bancrecer Bancen & Banpais SOURCE A B. M. MKT. % FOR DEPOSITS EXCLUDES FINANCIAL INTERMEDIARIES AND REFERS TO BANKING SECTOR EXCLUSIVELY. LOANS INCLUDES FOBAPROA SOURCE CNBV

Eventhough assets under management of the Recovery Banking represent an important figure, the risk involved is low TOTAL BANORTE 100% 27% 7, 186 Bancen 2, 718 Banpais 16, 162 Banks acquired 18, 880 Serfin 14, 597 New Portfolios 11, 463 Loans purchased or managed-IPAB 26, 060 11, 463 REPOSESSED ASSETS TOTAL ASSETS 17, 512 11, 572 12, 709 1, 153 3, 025 21, 905 8, 899 1, 191 2, 321 5, 387 $61, 025 $18, 703 $15, 030 $27, 292 100% MILLIONS OF PESOS OF DECEMBER 2001. 19% $10, 115 2, 606 1, 137 IPAB Banorte TOTAL LOAN PORTFOLIOS 52, 126 6, 049 SHARED W/ IPAB 30% 25% 45%

Banorte has maintained its Net Interest Margin level despite the market interest rate drop in 2001 Cete 28 days 16. 8% 17. 0% 12. 4% 8. 6% NIM % 4. 7% 4 Q 00 5. 9% 6. 3% 1 Q 01 2 Q 01 7. 5% 5. 7% 5. 2% 3 Q 01 4 Q 01

Fees on services and trading have increased their contribution to Non Interest Income MILLIONS OF PESOS 1, 922. 4 SERVICES 1, 925. 2 37% 57% TRADING FIDUCIARY 63% 43% FOBAPROA 2000 2001 NOTE: 2001 FIDUCIARY INCOME IS INCLUDED AS A NET AMOUNT FOR COMPARISON PURPOSES. SINCE 3 Q 01 THE SERFIN LOAN TRUST WAS CONSOLIDATED.

The operative expense control has been fundamental. . . resulting in a 16% expense decrease from 1999 to 2001. OPERATIVE EXPENSE 7, 488 6, 175 6, 293 16% 1999 MILLIONS OF PESOS OF DECEMBER 2001 2000 2001

GFNorte generated profits for PS 1, 504 million in 2001 ACCUMULATED NET INCOME IN 2001 MILLIONS OF PESOS BANKING PS 1, 272 85% LONG TERM SAVINGS $90 6% AUXILIARY ORGANIZATIONS $69 4% BROKERAGE $31 2% HOLDING $42 3% GFNORTE PS 1, 504 100%

GFNorte has obtained high ROE´s ROE 20. 7% 17. 2% 15. 1% 1999 2000 2001

After Bancrecer´s acquisition, Banorte´s capitalization ratio remained similar as of 4 Q’ 00 15. 6% 15. 4% 11. 5% 12. 0% 11. 4% 4 Q 00 1 Q 01 2 Q 01 3 Q 01 4 Q 01 IN 2 Q 01 THE CAPITALIZATION RATIO WAS STRENGTHENED BY A NON CONVERTIBLE SUBORDINATE-BONDS ISSUE FOR Ps 1, 300 MILLION. BANORTE USES 2003 RULES SINCE 3 Q 00.

Other divisions are profitable and have gained market share 2000 Net Income 2001 Market Share Net Income Market Share 71. 7 4. 8 8. 9% 1. 0% 88. 3 7. 1 9. 1% 1. 1% (34. 5) 9. 8% (5. 6) 9. 7% 28. 5 6. 6% 31. 3 8. 5% Auxiliary Organizations: 44. 5 Factoring 24. 3 Leasing 29. 8% 4. 7% 40. 8 26. 2 14. 3 2. 2% 6. 5 2. 2% Long Term Savings: Afore Bancassurance Annuities Brokerage: Brokerage House Warehousing Bonding 26. 5% 6. 2% 2) 8. 7 1. 7% 3) 6. 9 2. 5% 1) 2) MILLIONS AS OF DECEMBER 2001. MAJORITY PARTICIPATION INCLUDES PS 13. 2 MILLIONS TRANSFERED TO BANORTE DUE FISCAL STRATEGY. 2) NOV ‘ 01, 3) SEP ‘ 01. MARKET SHARE: AFORE & ANNUITIES: NUMBER OF AFFILIATED; BANCASSURANCE: PREMIUMS; BROKERAGE HOUSE: VARIABLE EQUITY; FACTORING & LEASING: TOTAL LOANS, BONDING: SURETIES SOLD. 1)

III. COMPARATIVES TO THE INDUSTRY

GFNorte´s ROE ranks among the highest in Mexico ROE DECEMBER 2001 36. 9% 17. 2% 2° 16. 2% 8. 3% * 5. 9% GFSANTANDER GFNORTE SOURCE: PRESS RELEASE EACH BANK. * AS OF SEPTEMBER 2001 GFBVABANCOMER BANACCI GFBITAL

After integration, banks improves their ROE 40% Santander Serfín 30% 20% GFNorte BBVA Bancomer 10% 0% 1999 2000 2001 GFNorte 13. 7% 20. 7% 17. 2% BBVA Bancomer 11. 2% 5. 6% 16. 2% Santander Serfín 15. 2% 12. 1% 36. 9% Data as of Dec 01

Banorte has maintained a low level of past due loans PAST DUE LOAN RATIO DECEMBER 2001 7. 0% 5. 5% 4° 4. 5% 0. 9% SANTANDERSERFIN BANAMEX BBVA BANCOMER BANORTE BITAL

The capitalization ratio stood at 11. 5% with rules of 2003 CAPITALIZATION RATIO RULES OF: 2001 2003 16. 6% 13. 1% SANTANDER SERFÍN W/O MARKET RISK 23. 2% BITAL 14. 5% 12. 1% BANAMEX 14. 7% Data as of December ‘ 01 from the Press Release of each bank. 11. 5% BANORTE 13. 4% 11. 0% BBVA BANCOMER 18. 6% (*)

IV. GFNORTE, 10 YEARS AFTER THE PRIVATIZATION

GFNorte, 10 years after the privatization. . . obtaining profits and ROE’s that have positioned it as the 4 th bank in Mexico in terms of deposits and the 3 rd. in credit loans. . “Traditional Banking Business” to become more important every day. . it. EXPANDEDinthe. Pension. Fund. Management, Bank. Assurance and Annuities businesses becoming an important player in the System.