1. 1 Recovery Bank November 16, 2007 Banorte Investor Day

2. 2 Contents 1.Background 2.3Q07 Results 3.Perspectives 2008 – 2009

3. 3 Background

4. 4 Net Income MILLION CONSTANT PESOS 2003200420052006 Sólida 752509820495 Banorte 5615781208 Total in Ps$808666901703 74618264 Equivalent in US$ Accum 3Q07 286 210 496 45 * Exchange rate at end of September 07 (10.93). Effective Tax Rate (%)6%7%22%28%32%

5. 5 Assets Under Management BILLION CONSTANT PESOS 18 24 35 44 35 50 58 2003200420052006 2 68 70 68 60 Proprietary IPAB 62 Sep ‘07 1 63

6. 6 2003200420052006 Cash51505450 Foreclosed / Repossessed6335 Restructured77107 Effective Recovery64606762 Discounts36403338 Net Resolution100 PERCENTAGES Resolution Performance Accum 3Q07 53 4 12 69 31 100

7. 7 10 9 1 3 4 3 1 11 2 4 4 4 5 2 3 2000200120022003200420052006 BILLION PESOS Asset Purchases Real Estate Assets Corporate Loans Mortgage Loans 2000200120022003200420052006Total 21 111789 966 IPAB 21 912 5 99 56 Private Banks -2- 5 3 - - 10 21 11 7 8 9 9 5 30 31 Sources

8. 8 Market Assessment 2007 Distressed assets market is at a crossroads… IPAB assets have been depleted. Commercial banks asset auctions: Portfolios with low collection margins and high legal risk. Newer portfolios yet to come to market. Sofoles yet to auction distressed mortgage portfolios. Currently negotiating purchase/administration with 5 Sofoles. INFONAVIT distressed mortgage auction pipeline: 100,000 mortgages over 3 years 5,000 before the end of 2007 Co-investment scheme.

9. 9 Gross Margin Mortgage Loans Corporate Loans Price Paid26%11%19% Effective Recovery60%53%59% Gross Margin34%42%40% Real Estate 27% 75% 48% ACQUIRED LOANS / REAL ESTATE PERFORMANCE AS % OF UPB / COMM. VALUE WEIGHTED AVERAGE 2000-3Q07 Weighted Total

10. 10 3Q07 Results

11. 11 Assets Under Management CONSTANT BILLION PESOS Total Assets Banorte Portfolio Acquired Credits Acquired Real Estate Investment Projects 98% Proprietary Assets 2% IPAB Assets Total Asset Origin Credit Portfolio Real Estate 15116 39140 4 -4 - -22 546262 101 556263 - - - - Investment Projects

12. 12 Assets Under Management CREDIT PORTFOLIO IN CONSTANT BILLION PESOS TypeTotal Mortgage21 Consumer7 Commercial27 Total55 % 39% 12% 49% 100% Acquired Portfolio 16 - 24 40 Banorte Portfolio 5 7 3 15

13. 13 Assets Under Management REAL ESTATE IN CONSTANT BILLION PESOS % TypeAmount Houses 2.437% Urban Land 1.117% Non-Urban Land 0.610% Warehouses 0.710% Commercial 0.610% Buildings 0.35% Rights / Non-R.E. 0.46% Total6.4 100% Others 0.35%

14. 14 Assets Under Management INVESTMENT PROJECTS IN CONSTANT MILLION PESOS %PartnerAmount GEO 1,47379% URBI 30217% Internacional de Inversiones 824% Total1,856 100% # Projects 8 2 4 14 95 113 1,195 2003200420052006 1,856 Sep ‘07 0 # Projects44149 -

15. 15 Assets Under Management PROPRIETARY ASSETS IN CONSTANT BILLION PESOS Total Assets Banorte Portfolio Acquired Credits Acquired Real Estate Investment Projects Total %$ Asset Origin Banorte Risk %$ Reserve and/or Discount 16958%742% 403690%410% 4376%124% 2-0%2100% 624878%1422% Sub-total 604880%1220%

16. 16 Resolution Performance CONSTANT MILLION PESOS Indicators % Cash / Effective Res. % Effective Resolution Asset Rotation (Years) 61%69%8 PP 83%77% (6 PP) 5.95.6(0.3) Variation $% Cash Foreclosed / Repossessed Restructured Effective Recovery Discounts Net Resolution Accum 3Q06 Accum 3Q07 2,933 2,703 (230)(8%) 281 221(60)(21%) 317 60128490% 3,531 3,525(6)(0%) 2,233 1,622 (611)(27%) 5,764 5,147 (617)(11%)

17. 17 Income Statement CONSTANT MILLION PESOS Concept Accum 3Q06 Variation $% Accum 3Q07 Net Operating Revenues Administrative Expenses Operating Income Income Before Taxes & EPS Net Income 1,5111,448(63)(4%) (467)(468)(1)(0%) 1,044980(64)(6%) Other Expenses(107)(62)45(42%) Financial Expenses(195)(187)8(4%) 742731(11)(1%) Income Taxes & EPS (196)(235)(39)20% 546496(50)(9%) Effective Tax Rate (%)26%32%

18. 18 Business Qualifications Rated since 2003 by Fitch Ratings Mexico. Latest rating obtained (December 06): AAFC1-(mex). AAFC1-(mex): Financial Credit Asset Manager Maximum possible rating: AAFC1(mex). Certified under ISO 9001-2000 by SGS (Société Générale de Surveillance) since 2004. Latest review and ratification: May 2007.

19. 19 Perspectives 2008 – 2009

20. 20 Objectives 2008-2009 OVERALL Generate annual net income of US$60 million. Maintain leadership (40% mkt share) in distressed assets business. Grow investment project business with selected partners and industries Ps $4 billion by the end of 2009. Improve the resolution process of delayed, past-due, and written-off loans originated in Banorte. Maintain AAFC-1(mex) rating and ISO certification.

21. 21 Objectives 2008-2009 ACQUIRED DISTRESSED ASSETS Participate in all relevant distressed assets auctions. Strengthen ties with financial intermediaries most likely to generate distressed assets for sale / administration. Leverage relationship with INFONAVIT, the largest mortgage originator in the country. Continue improving and differentiating the resolution schemes applied to the current distressed asset inventory.

22. 22 Objectives 2008-2009 INVESTMENT PROJECTS Continue select partner diversification in housing. Generate investments in infrastructure and tourism with at least 3 to 5 select partners. Broaden sources of funding via structured-finance.

23. 23 Objectives 2008-2009 Maximize loan regularization during the first days of delinquency. Maintain best-in-class past-due loan indicators. Accelerate legal collection processes to improve resolution time of past-due loans. Improve resolution schemes: Deepen segmentation of past-due and written-off loans. Focus. Differentiation. BANORTE PORTFOLIO

24. 24 Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors.

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