1New York, NYNew York, NY

Salomon Smith Barney Salomon Smith Barney

10th. Annual Latin American Conference10th. Annual Latin American ConferenceMarch 7 and 8, 2002March 7 and 8, 2002

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I. BANCRECER’S I. BANCRECER’S

INTEGRATIONINTEGRATION

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Bancrecer’s acquisition contract was signed with IPAB. First payment by Ps 412.5 million pesos was made.

Oct 05 ‘01

Banorte received the authorization to acquire Bancrecer from SHCP.Nov 30 ‘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.

Dec 04 ‘01

Banorte received 100% of Bancrecer’s shares ending IPAB’s administration period.

Jan 02 ‘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 04 ‘02

Banorte took over the administrative control of Bancrecer and began the integration of the different areas into GFNorte’s organizational structure.

Jan 08 ‘02

Bancrecer’s AcquisitionBancrecer’s Acquisition

... Acquisition Process of Bancrecer performed as expected.....

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Bancrecer will contribute to profits since the first yearBancrecer 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

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Bancrecer´s aquisition improves Banorte´s ranking Bancrecer´s aquisition improves Banorte´s ranking in Mexicoin Mexico

459Branches 1)

BANORTE

ATM’s 1)

Total Deposits 2)

1,611

Ps 89,044

BANORTE + BANCRECER

Ranking Ranking

Total Loans 2) Ps 79,147

Total Assets 2) Ps 99,107

6°

5°

5°

4°

5°

1,186

2,583

Ps 155,550

Ps 135,435

Ps 169,892

4°

4°

4°

3°

4°

1) SOURCE A B.M. (DEC’01)2) SOURCE CNBV (SEP.’01 IN MILLIONS OF PESOS), INCLUDES FOBAPROA-IPAB

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Transitory

Administration

Banorte

Administration

Administrative

Integration

Operative

Integration

SHCP Authorization

End of IPAB’s administration

Asset Spin off

STAGE I(4Q01)

STAGE II(Jan 02)

STAGE IV(Apr-Dec 02)

STAGE III(1Q02)

Bancrecer’s IntegrationBancrecer’s IntegrationOctober 5th

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Bancrecer’s areas integration

Begin Corporate Structure Rationalization

Acquisition Due Diligence

Technological alternatives evaluation

Optimum branch network definition

Start:

Bancrecer’s IntegrationBancrecer’s IntegrationOctober 5th

Transitory

Administration

Banorte

Administration

Administrative

Integration

Operative

Integration

STAGE I(4Q01)

STAGE II(Jan 02)

STAGE IV(Apr-Dec 02)

STAGE III(1Q02)

On February, 15th a personnel reduction

of 413 employees took place with a

monthly pay roll of Ps 7.8 millions, which

represented a 12% reduction. Additional

reduction is expected by the end of

march 2002.

Banorte takes control of Bancrecer’s

Administration.

Estimate time: 60 calendar days

beginning January 2th.

In-depth study of profitability and marketing.

Close 96 branches from Bancrecer.

Close 9 branches from Banorte.

External consultants to define the technological platform during 1Q’02. (Accenture & DMR from Spain).

Since December, the main corporate buildings of Banorte and Bancrecer were connected with voice, data and e-mail networks.

Computer centers of both institutions are to be integrated into Bancrecer’s Site located in Tlalpan, D.F.

Central processors will be replaced for new ones with more capacity.

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Technological Platform definition

Link the two main frames

Close branches

End the structure rationalization

Begin the image change

Bancrecer’s IntegrationBancrecer’s IntegrationOctober 5th

An inter-operational project in branches is scheduled to begin by March 4th.

Bancrecer’s branches in the main cities will be rebranded in April .

Transitory

Administration

Banorte

Administration

Administrative

Integration

Operative

Integration

STAGE I(4Q01)

STAGE II(Jan 02)

STAGE IV(Apr-Dec 02)

STAGE III(1Q02)

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Technological and operative integration

Finish the image change

Asset divestment program

Bancrecer’s IntegrationBancrecer’s IntegrationOctober 5th March 31th LEGAL MERGE

OF BANCRECER

Transitory

Administration

Banorte

Administration

Administrative

Integration

Operative

Integration

STAGE I(4Q01)

STAGE II(Jan 02)

STAGE IV(Apr-Dec 02)

STAGE III(1Q02)

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II. 2001 GFNORTE II. 2001 GFNORTE

RESULTSRESULTS

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HighlightsHighlights

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%

2001

12CLIENTS : INCLUDE THE BANKING SECTOR AND THE BROKERAGE HOUSE.

The client base and the distribution channels have The client base and the distribution channels have experienced an important growthexperienced an important growth

No. OF CLIENTS

627 889

1,9002,324

‘96 ‘97 ‘98 ‘99

2,818

‘00 ‘01

POS

PC Banking

ATM’s1,611

212

12,721

990

10,210

2,458

‘96 ‘97 ‘98 ‘99 ‘00 ‘01

TRANSACTIONS PER DISTRIBUTION CHANNEL IN BANORTE

DISTRIBUTION CHANNELS

8.2%

5.7%

21.2%

57.9%ATM

BRANCHES

PC BANKING E INTERNET

POS

7.0%TELEPHONE

BANKING

Dic ‘01

2,962

1,716

4,678

4,123

4,209

967

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New Loans

Non Interest Income

Deposit Volume and Mix

Non Interest Expense

Recovery Bank

Interest Rates

Risk Control

Profitability Criteria

GFNorte has followed a clear and successful GFNorte has followed a clear and successful strategy for increasing its profitabilitystrategy for increasing its profitability

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Total Deposits increased by 12.4%, driven by a Total Deposits increased by 12.4%, driven by a 23.8% increase in Third Party Deposits23.8% increase in Third Party Deposits

109,021115,835

121,448 121,716

4Q00 1Q01 2Q01 3Q01

122,489

4Q01

MILLIONS OF PESOSMILLIONS OF PESOS

DATA AS OF DECEMBER

12.4%12.4%

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During the last two years, the commercial and the During the last two years, the commercial and the consumer loan portfolios have grown considerably ...consumer loan portfolios have grown considerably ...

BALANCES IN MILLIONS OF PESOS. IT DOES NOT INCLUDE LOANS TO FINANCIAL AND GOVERNMENT ENTITIES (PS 4,421 IN DEC’01).

... the corporate loans have practically remained the same and those of the Recovery Banking decreased

80%

CORPORATE 8,668

COMMERCIAL

Mortgage

Other

Automobile

CONSUMER

RECOVERY BANKING 6,049

12,205

2,558

204

823

1,292

4,876

46%

TOTAL 31,798

(32%)

Credit Card

7%8,119

8,880

8,342

1,408

535

555

211

2,709

28,050

13%

CONCEPTO DIC‘01

DIC‘99

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Traditional loan portfolio showed an increase of Traditional loan portfolio showed an increase of 11.0%, driven by Consumer and Mortgage 11.0%, driven by Consumer and Mortgage

DATA AS OF DECEMBER ‘01.

(40%)

0%

40%

80%

4Q00 1Q01 2Q01 3Q01 4Q01

Traditional loan Portfolio

Corporate

Commercial

Consumer andMortgage

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Bancentro, Banpais and Bancrecer´s acquisitions played a Bancentro, Banpais and Bancrecer´s acquisitions played a fundamental role in GFNorte growth strategy ...fundamental role in GFNorte growth strategy ...

Feb ‘97 Banorte

Feb ‘97Banorte+Bancen

Dec ‘97Banorte+Bancen +

Banpaís

Commercial Loans

FOBAPROA/IPAB Loans

4,45320%

18,59180%

20,25649%

21,49451%

45,14571%

18,49229%

... a big portion of the loan portfolio was substituted by FOBAPROA/IPAB loans and notes.

Dec ‘01Banking Sector

Banorte + Bancrecer

97,56060%

45,78240%

51,290

35,764

MILLIONS OF PESOS OF DEC’2001.* INCLUDES USD184 MILILON AT LIBOR (6 M) + 1% MATURING IN JUNE, 2006.

AMOUNT(Balance as of 31/Dec/01)

TERM INTEREST RATE

BANORTE (Loss Sharing) * 91 Days Cete - 1.35%11,137

Loan Portfolio (Bancen y Banpaís) 35,382 TIIE + 0.85%

USD Fobaproa Note. (Banpaís) 4,771 USD Cost of Funding. + 2%

IPAB Note (Bancrecer) 46,270 TIIE + 0.40%

TOTAL $97,560

2005

2010

2007

2009

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GFNorte increased its national market share with GFNorte increased its national market share with the acquisition of Bancrecerthe acquisition of Bancrecer

2.6%

5.7%

7.0%7.7% 7.7%

11.9%

'96 '97 '98 '99 '00 '01

DEPOSITSDEPOSITS LOANSLOANS

3.4%

7.3% 7.7% 7.5% 8.3%

15.5%

'96 '97 '98 '99 '00 '01

SOURCE A B.M. MKT. % FOR DEPOSITS EXCLUDES FINANCIAL INTERMEDIARIES AND REFERS TO BANKING SECTOR EXCLUSIVELY. LOANS INCLUDES FOBAPROA SOURCE CNBV

Bancen &Banpais

Bancrecer

Bancen &Banpais

Bancrecer

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Eventhough assets under management of the Eventhough assets under management of the Recovery Banking represent an important figure, the Recovery Banking represent an important figure, the

risk involved is lowrisk involved is low

MILLIONS OF PESOS OF DECEMBER 2001.

TOTAL BANORTE SHARED W/ IPAB IPAB

7,186

8,899

$61,025100%

52,126

6,049

1,191

$18,70330%

17,512

1,137

2,321

$15,03025%

12,709

45%

5,387

$27,292

21,905

14,597

11,463 11,463

11,572 3,025

26,060 11,463 11,572 3,025

2,718

16,162

2,718

16,162

Banorte

REPOSESSED ASSETS

TOTAL ASSETS

TOTAL LOAN PORTFOLIOS

Serfin

New Portfolios

Loans purchasedor managed-IPAB

Bancen

Banpais

Banks acquired 18,880 18,880

19%$10,115

19%$10,115

2,6062,606

1,1531,153

27%27%100%100%

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Banorte has maintained its Net Interest Margin level Banorte has maintained its Net Interest Margin level despite the market interest rate drop in 2001despite the market interest rate drop in 2001

7.5%8.6%

12.4%

17.0%16.8%

5.2%5.7%6.3%5.9%

4.7%

4Q00 1Q01 2Q01 3Q01 4Q01

Cete 28 days

NIM %

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Fees on services and trading have increased their Fees on services and trading have increased their contribution to Non Interest Incomecontribution to Non Interest Income

2000 2001

SERVICES

FOBAPROA

FIDUCIARY

TRADING

37%

63%

57%

43%

1,922.4 1,925.2

NOTE: 2001 FIDUCIARY INCOME IS INCLUDED AS A NET AMOUNT FOR COMPARISON PURPOSES. SINCE 3Q01 THE SERFIN LOAN TRUST WAS CONSOLIDATED.

MILLIONS OF PESOSMILLIONS OF PESOS

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The operative expense control has been The operative expense control has been fundamental ...fundamental ...

OPERATIVE EXPENSEOPERATIVE EXPENSE

1999 2000

MILLIONS OF PESOS OF DECEMBER 2001

... resulting in a 16% expense decrease from 1999 to 2001.

2001

7,488

6,175 6,293

16%16%

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GFNorte generated profits for PS 1,504 million in 2001GFNorte generated profits for PS 1,504 million in 2001

ACCUMULATED NET INCOME IN 2001ACCUMULATED NET INCOME IN 2001MILLIONS OF PESOSMILLIONS OF PESOS

BANKING PS 1,272 85%

$42HOLDING 3%

$31BROKERAGE 2%

$90LONG TERM SAVINGS 6%

$69AUXILIARY ORGANIZATIONS 4%

PS 1,504GFNORTE 100%

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17.2%

2001

20.7%

2000

15.1%

1999

ROE ROE

GFNorte has obtained high ROE´sGFNorte has obtained high ROE´s

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After Bancrecer´s acquisition, Banorte´s After Bancrecer´s acquisition, Banorte´s capitalization ratio remained similar as of 4Q’00capitalization ratio remained similar as of 4Q’00

IN 2Q01 THE CAPITALIZATION RATIO WAS STRENGTHENED BY A NON CONVERTIBLE SUBORDINATE-BONDS ISSUE FOR Ps 1,300 MILLION.BANORTE USES 2003 RULES SINCE 3Q00.

12.0% 11.4%

15.6% 15.4%

4Q00 1Q01 2Q01 3Q01

11.5%

4Q01

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MILLIONS AS OF DECEMBER 2001. MAJORITY PARTICIPATION

1) INCLUDES PS13.2 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.

Afore

28.5 6.6% 31.3 8.5%

44.5 29.8% 26.5% 2)

24.3 4.7% 26.2 6.2% 2)

14.3 8.7

6.5 6.9

71.7 8.9% 88.3 9.1%

4.8 1.0% 7.1 1.1%

(34.5) 9.8% (5.6) 9.7%

2.2%

2.2% 2.5%

1.7% 3)

Other divisions are profitable and have gained Other divisions are profitable and have gained market sharemarket share

Net Income

Market Share

Net Income

Market Share

2000 2001

Long Term Savings:

Brokerage House

Leasing

Factoring

Warehousing

Bonding

Bancassurance

Annuities

Brokerage:

Auxiliary Organizations:40.8 1)

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III . COMPARATIVES TO THE III . COMPARATIVES TO THE INDUSTRYINDUSTRY

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ROE ROE DECEMBER 2001DECEMBER 2001

GFNorte´s ROE ranks among the highest in MexicoGFNorte´s ROE ranks among the highest in Mexico

36.9%

8.3% *

17.2%

BANACCIGFNORTE

5.9%

GFBITALGFSANTANDER

SOURCE: PRESS RELEASE EACH BANK. * AS OF SEPTEMBER 2001

GFBVA-BANCOMER

16.2%2°

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0%

20%

40%

1999 2000 2001

GFNorte

BBVA Bancomer

Santander Serfín

10%

30%

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

After integration, banks improves their ROEAfter integration, banks improves their ROE

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PAST DUE LOAN RATIOPAST DUE LOAN RATIODECEMBER 2001DECEMBER 2001

BANAMEX BITAL BBVA -BANCOMER

BANORTESANTANDER-SERFIN

0.9%4.5%

5.5%5.0%

7.0%

4°

Banorte has maintained a low level of past due loansBanorte has maintained a low level of past due loans

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The capitalization ratio stood at 11.5% with rules of The capitalization ratio stood at 11.5% with rules of 20032003

12.1%13.1%

11.0%

BANAMEX BBVA -BANCOMER

BITAL BANORTESANTANDER - SERFÍN

11.5%

14.7%14.5%23.2% 18.6% (*)13.4%W/O MARKETRISK

20032001 200320032001RULES OF:

16.6%

CAPITALIZATION RATIOCAPITALIZATION RATIO

Data as of December ‘01 from the Press Release of each bank.

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IV. GFNORTE, 10 YEARS AFTER IV. GFNORTE, 10 YEARS AFTER THE PRIVATIZATIONTHE PRIVATIZATION

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GFNorte, 10 years after the privatization ...GFNorte, 10 years after the privatization ...

... it has EVOLVED successfully in the Mexican Banking System

obtaining profits and ROE’s that have positioned it as the 4th

bank in Mexico in terms of deposits and the 3rd. in credit loans.

... it has followed a SUCCESSFUL STRATEGY that has allowed its

“Traditional Banking Business” to become more important every

day.

... it EXPANDED in the Pension Fund Management, Bank

Assurance and Annuities businesses becoming an important

player in the System.

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