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1Q02 RESULTS

1Q02 RESULTS. Bancrecer will contribute to profits since the first year improving Banorte´s ranking in Mexico. BANORTE + BANCRECER. BANORTE. Ranking. Ranking. 4°. Branches 1). 459. 6°. 1,186. 4°. ATM’s 1). 1,611. 5°. 2,583. 4°. Total Deposits 2). Ps 89,044. 5°. Ps 155,550.

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1Q02 RESULTS

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  1. 1Q02 RESULTS

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

  3. Bancrecer’s Integration October 5th March 31th LEGAL MERGE OF BANCRECER STAGE II (Jan 02) STAGE III (1Q02) STAGE IV (Apr-Dec 02) Banorte Administration Administrative Integration Operative Integration • Technological Platform definition • Link the two main- frames • Close 30 branches • End the structure rationalization • Begin the image change • Technological and operative integration • Finish the image change • Close 75 branches • Asset divestment program • Bancrecer’s areas integration • Begin Corporate Structure Rationalization • Acquisition Due Diligence • Technological alternatives evaluation • Optimum branch network definition STAGE I (4Q01) Transitory Administration • SHCP Authorization • End of IPAB’s administration • Asset Spin off CONCLUDED CONCLUDED CONCLUDED

  4. Bancrecer’s Integration • Commercial: • 105 branches will be closed in the first half of the year to optimize the network. • 30 branches were already closed during the 1Q02. • Banorte’s Consumer loans are already being offered through Bancrecer branches. Personnel • In 1Q02, 1519 employees of both Bancrecer and Banorte were laid off. • Estimated personnel expense savings for the rest of 2002 = Ps 342 million. • Additional downsizing of 520 employees is scheduled for 2Q02. • Total all-in recurrent cost reduction $ 50 million/month. Technology • Banorte central systems were transferred to Bancrecer’s site in Mexico City. • It was decided to use Bancrecer’s Altamira platform for the core business systems (checks, deposits, loans) and Banorte developments for value added applications (delivery channels, business Intelligence, Risk Control) • The inter-operations project to link 80 % of main transactions of both banks mainframes was put in place in April,22.

  5. Bancrecer’s Integration Marketing • The rebranding of Bancrecer’s Branches started in April. • A national advertising campaign was launched in April emphasising the integration of Bancrecer to Banorte. Infrastructure • Bancrecer’s head office building in Mexico city was sold. • A building that stands beside Banorte’s current corporate office building in Mexico city was acquired to relocate Bancrecer’s personnel. • The purchase-sell of both buildings has a net impact of releasing $ 110 million pesos. Corporate events • The merge of Bancrecer and Banorte took place on March, 31, 2002. • Secretaría de Hacienda y Crédito Publico authorized the merge on April 24.

  6. 1Q02 GFNORTE RESULTS 4Q01 1Q02 GFNORTE GFNorte’s Net Income (PS million) 253.0 366.5 ROE 11.0% 15.5% EPS (Ps/per share) 0.51 0.73 Book Value 18.31 19.19 BANKING SECTOR Capitalization Ratio 11.5% 12.9% Traditional Banking annual loan growth 11.0% 45.7% Consumer & Mortgage annual loan growth 69.0% 270.2% Total Deposits annual growth 12.4% 65.6% Past due loan ratio 5.5% 3.4% Reserve Coverage 100.0% 116.1% Highlights

  7. Traditional loan portfolio showed an important growth specially in Mortgage and Consumer loans 1Q02 % GROWTH 1Q01 LOAN PORTFOLIO (Millions of Pesos) 13,644 39% Commercial 9,811 11,780 270% Mortgage and Consumer 3,180 8,597 361% Mortgage 1,863 1,039 111% Credit Card 493 1,835 176% Auto 666 309 96% Other 158 Corporate 8,614 (2)% 8,778 Recovery Banking 5,929 (16)% 7,023 DATA AS OF MARCH ‘02.

  8. AMOUNT (Balance as of 31/Dec/01) TERM INTEREST RATE BANORTE (Loss Sharing) * 11,137 2005 91 Days Cete - 1.35% Loan Portfolio (Bancen y Banpaís) 35,382 2010 TIIE + 0.85% USD Fobaproa Note. (Banpaís) 4,771 2007 USD Cost of Funding. + 2% IPAB Note (Bancrecer) 46,270 2009 TIIE + 0.40% TOTAL $97,560 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. 97,560 60% FOBAPROA/IPAB Loans 45,782 40% 45,145 71% Commercial Loans 51,290 21,494 51% 20,256 49% 35,764 18,492 29% 18,591 80% 4,453 20% Feb ‘97 Banorte Feb ‘97 Banorte+Bancen Dec ‘97 Banorte+Bancen + Banpaís Dec ‘01 Banking Sector Banorte + Bancrecer MILLIONS OF PESOS OF DEC’2001. * INCLUDES USD184 MILILON AT LIBOR (6 M) + 1% MATURING IN JUNE, 2006.

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

  10. TOTAL SHARED W/IPAB BANORTE IPAB Banorte 6,829 27% 5,758 1,071 0 2,510 Bancen 2,510 15,866 Banpaís 15,866 Loans purchased or managed-IPAB 25,371 11,292 11,116 2,963 1,097 Serfín 14,079 0 11,116 2,963 2,603 New Portfolios 11,292 0 11,292 0 19% TOTAL LOAN PORTFOLIOS 50,576 17,050 12,187 21,339 1,216 2,945 8,510 REPOSESSED ASSETS 12,671 $29,849 $18,266 $15,132 TOTAL ASSETS $63,247 29% 47% 24% 47% 29% 24% 100% Eventhough assets under management of the Recovery Banking represent an important figure, the risk involved is low MILLIONS OF PESOS OF MARCH 2002

  11. Fees on services and trading have increased their contribution to Non Interest Income MILLIONS OF PESOS SERVICES 37% 57% 74% TRADING FIDUCIARY 63% 43% 26% FOBAPROA 2000 2001 1Q02 NOTE: 2001 AND 1Q02 FIDUCIARY INCOME IS INCLUDED AS A NET AMOUNT FOR COMPARISON PURPOSES. SINCE 3Q01 THE SERFIN LOAN TRUST WAS CONSOLIDATED.

  12. The Non Interest Expense control has been fundamental ... ... resulting in a 16% expense decrease from 1999 to 2001. Growth 1Q02 vs 4Q01 NON INTEREST EXPENSE 64% 30% 7,568 6,241 6,360 Non Interest Expense Net Operating Income 16% 1999 2000 2001 MILLIONS OF PESOS OF MARCH 2002

  13. GFNorte generated profits for PS 367 million in 1Q02 ACCUMULATED NET INCOME IN 1Q02 MILLIONS OF PESOS BANKING PS 258 70% LONG TERM SAVINGS $73 20% AUXILIARY ORGANIZATIONS $14 4% BROKERAGE $24 6% HOLDING ($1.8) (0.5%) GFNORTE PS 367 100%

  14. COMPARATIVES TO THE INDUSTRY GFNorte´s ROE ranks among the highest in Mexico ROE DECEMBER 2001 36.9% 17.2% 16.2% 15.5% 2° 8.3% * 5.9% GFSANTANDER 4Q01 1Q02 GFBVA- BANCOMER BANACCI GFBITAL GFNORTE SOURCE: PRESS RELEASE EACH BANK. * AS OF SEPTEMBER 2001

  15. The capitalization ratio increased to 12.9% with rules of 2003 CAPITALIZATION RATIO 2001 2001 2003 2003 2003 RULES OF: 16.6% 12.9% 13.1% 12.1% 11.5% 11.0% 4Q01 1Q02 SANTANDER - SERFÍN BITAL BANAMEX * BBVA - BANCOMER BANORTE W/O MARKET RISK 13.4% 23.2% 14.5% 14.7% 18.6% Data as of December ‘01 from the Press Release of each bank. * AS OF SEPTEMBER 2001

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