1

GFNorte’s 2Q08 Results

Conference CallJuly 25, 2008.

2

Yearly Recap

Net Income

Stock Price

P/BV

Net Interest Margin

ROA

ROE

Book Value

Past Due Loan Ratio

MILLION PESOS

2Q082Q07

1,722 5% 1,806

23.6% 20.5%

2.7% 2.3%

Efficiency Ratio 57.0% 54.1%

7.5% 7.5%

1.5% 1.5%

Reserve Coverage 141% 131%

49.58

3.32 2.68

48.47

14.92 18.1225%

(2%)

(22%)

3

Quarterly Net IncomeMILLION PESOS

Non-recurring

Recurring1,722

2Q07 2Q08

1,806

1,74660

1Q08

1,691

1,928

237

4

Income StatementMILLION PESOS

Net Interest Income

Service Fees

Recovery

Non Interest Income

Total Income

Non Interest Expense

Net Operating Income

Non Operating Income, Net

Income Tax

Net Income

Provisions

Subs & Minority Interest

FX & Trading

1Q08 QoQ

1%

9%

(38%)

(19%)

1%

1%

3%

(1%)

(22%)

(30%)

(6%)

25%

68%

5,179

1,573

190

198

1,961

7,140

(3,799)

3,341

702

(1,075)

1,928

(1,005)

(34)

YoY2Q07 2Q08

4,247

1,424

180

339

1,943

6,190

(3,516)

2,674

612

(867)

1,722

(754)

57

1,712

117

160

1,989

7,221

(3,903)

3,318

551

(751)

1,806

(1,255)

(57)

5,232 23%

20%

(35%)

(53%)

2%

17%

11%

24%

(10%)

(13%)

5%

66%

(200%)

Recurrent Net Income 3%1,6911,722 1,746 1%

5

Non Interest Expense

BILLION PESOS

EFFICIENCY RATIO

Non Interest Expense

2Q07

3.5

1Q08

3.8

57%

2Q06

57%

2Q07

54%

2Q08

56%

1H06

57%

1H07

54%

1H08

2Q08

3.9

QoQ YoY

3% 11%

6

Net Interest Margin vs CETESPERCENTAGE

Cetes

NIM

99% 100%

7.6

7.1

7.57.07.07.07.1 7.1 7.2 7.4

7.98.07.7 7.5 7.7

8.2

7.4

7.9

7.5

7.5

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08

7

Core DepositsBILLION PESOS

Mix

Demand

Time

Demand

Time

Total

Deposits 2Q07 2Q081Q08

107

64

171

62%

38%

100%

101

60

161

62%

38%

100%

63%

37%

100%

103

63

166

YoYQoQ

6%

7%

6%

3%

2%

3%

8

BILLION PESOS

Performing Loan Portfolio

2Q07 1Q08 2Q08 QoQChange

YoY

Commercial

Corporate

Government

Total

Consumer

22%4%

38%10%

41%39%

29%9%

27%6%

79

43

24

217

71

76

39

18

199

67

64

31

17

168

56

2Q07 1Q08 2Q08

168199 217

9

Performing Consumer Loan PortfolioBILLION PESOS

Car Loans

Credit Card Loans

Payroll Loans

Consumer

Mortgage Loans

2Q07 1Q08 2Q08

2Q07 1Q08 2Q08

5667 71

9%2%

36%8%

16%7%

27%6%

29%6%

8

16

7

71

40

7

15

6

67

38

7

12

6

56

31

QoQChange

YoY

10

Loan Portfolio Breakdown

2Q07 2Q081Q08

Mortgage

Credit Card

Payroll /Personal

Car

Commercial

Corporate

Government

19

4

7

3

38

18

10

19

4

8

3

38

19

9

19

3

7

3

36

20

11

PERCENTAGE

11

Mortgages

LOANS

2Q07 1Q08 2Q08

2.9

2Q07

2.9

1Q08

3.3

2Q08

BILLION PESOS

NEW LOANS

Market Share

14.3%

4,4524,342

5,153

12

Credit Cards

NEW CARDS(Thousand)

172

2Q07

185

1Q08

191

2Q08

6,907

2Q07

9,145

1Q08

11,244

2Q08

NEW RECEIVABLES(Million Pesos)

13

Payroll and Personal Loans

1.9

2Q07

1.6

1Q08

2.1

2Q08

Market Share

11.5%

NEW LOANS IN BILLION PESOS

14

Government Portfolio

Federal

16.8

2Q07

17.6

1Q08

24.3

2Q08

19.5

2Q07

23.1

1Q08

24.1

2Q08

PERFORMING LOANS CORE DEPOSITS

BILLION PESOS

* Includes states, municipalities and federal entities.

15

Government Payrolls

MILLIONS

0.9

2Q07

1.2

1Q08

1.4

2Q08

* Includes states, municipalities and federal entities.

16

Capitalization Ratio

Tier 1

Tier 2

TOTAL

Percentage Tier 1

PERCENTAGE

4Q07 1Q08

10.2%

3.6%

13.8%

74%

10.3%

4.3%

14.6%

70%

2Q08

10.7%

5.0%

15.7%

68%

17

Asset Quality

Past Due Loans

Loan Loss Reserves

RESERVECOVERAGE

PAST DUE LOANRATIO

Total Loan Portfolio

BILLION PESOS

2Q07 1Q08 2Q08

2.6

3.6

173

3.2

4.2

220

3.2

4.0

203

131%141%127%

2Q07 1Q08 2Q08

1.5%1.5%1.6%

2Q07 1Q08 2Q08

18

Consumer Portfolio

CREDIT CARD

6.7%

3.6%

5.9%

2Q07 1Q08 2Q08

MORTGAGE

1.5%

2.6%2.3%

2Q07 1Q08 2Q08

PDL RATIO

PAYROLL

2.0%1.8% 1.7%

2Q07 1Q08 2Q08

19

Subsidiaries

20

Recovery Bank

Total

2Q07 1Q08

NET INCOME IN MILLION PESOS

AUM IN BILLION PESOS

2Q082Q07 %

167191

44.9

10.4

38.7

19.2Banorte’s Assets

Acquired Assets (14%)

85%

1.3 2.6Investment Projects 100%

58.2 62.0Total 7%

1.6 1.4IPAB Portfolio (13%)

2Q08

151

21

Long Term Savings

NET INCOME IN MILLION PESOS

AFORE INSURANCEANNUITIES

7

2Q07

6

2Q08

Total

2Q07

125

1Q08

79

2Q08

63

33

1Q08

88

2Q07

0

2Q08

8

1Q08

30

2Q07

58

2Q08

39

1Q08

QoQ

(20%)

YoY

(50%)

22

Other Finance Companies

NET INCOME IN MILLION PESOS

Total

2Q07

76

1Q08

71

LEASING AND

FACTORINGWAREHOUSING

2Q08

85

QoQ

19%

YoY

11%

73

2Q07

78

2Q08

66

1Q08

3

2Q07

7

2Q08

5

1Q08

23

Brokerage and Microlending

NET INCOME IN MILLION PESOS

BROKERAGE HOUSE MICROLENDING

63

2Q07

143

2Q08

71

1Q08(8)

2Q07

(7)

2Q08

(9)

1Q08

24

Banorte USA

MILLION DOLLARS

2Q082Q07

INB

Performing Loans

Efficiency

ROE

Net Income (100%)

Net Interest Margin

1,035931

4.5% 4.2%

6.6 5.9

23.7% 20.3%

41.3% 42.1%

1Q08

1,025

4.2%

6.8

22.1%

40.3%

25

Challenges

Complex scenario.

US Financial Crisis.

Restrictive monetary policy.

Economic slowdown and inflationary pressures.

Competitive pressures new market players.

Regulatory changes provisions.

regulatory deposits.

26

Challenges

Balancing growth and risk adjusted profitability.

Proactive balance sheet management.

Funding costs.

Capitalization.

Focus on net interest income.

Higher emphasis on risk analysis.

Asset quality.

New origination models.

Increased risk-based pricing differentiation.

Early collection.

27