GFNorte 1Q05 Results May-2005

Contents 1Q05 Results • Banking Sector Relevant Events • Recovery Bank • Long Term Savings Sector Relevant Events Economic Environment Final Remarks

1. 1Q05 Results

GFNorte Highlights 1Q 04 1Q05 Net Income 582 1,090 ROE 16.2% 26.9% MILLION PESOS 1Q 04 1Q05 Net Income 582 1,090 87% ROE 16.2% 26.9% Stock Price 43.93 66% 72.75 Net Interest Margin 4.1% 7.2% 88% EPS 1.15 2.16 43% P/BV 1.53 2.19 Performing loans growth 20% 21% Past due loan ratio 4.8% 1.9% Reserve Coverage 127% 154%

GFNorte´s Net Income MILLION PESOS 1,090 921 582 1Q04 4Q04 1Q05

GFNorte´s Net Income 1Q04 1Q05 Var% GFNORTE 582 1,090 87% Banking 453 MILLION PESOS 1Q04 1Q05 Var% Banking 453 900 99% Long Term Savings 86 127 48% Brokerage 31 25 (19%) Auxiliary Organizations 18 43 139% Pronegocio (4) - Holding (6) (2) (63%) GFNORTE 582 1,090 87%

Banking Sector

Banking Sector´s Income Statement MILLION PESOS 1Q04 1Q05 Var% Net Interest Income after Repomo 2,101 2,749 31% Non Interest Income 1,260 1,047 (17%) Services 704 726 3% Recovery 129 166 29% Forex 130 59 (54%) Trading 297 95 (68%) Total Income 3,361 3,796 13% Non Interest Expense (2,557) (2,338) (9%) Net Operating Income 804 1,458 81% Loan loss and loss sharing provisions (122) (243) 100% Non Operating Income (net) (149) 37 N.A. Income tax and profit sharing (98) (351) 258% Subsidiaries and minority interest 72 83 15% Net Income 507 984 94%

Net Interest Margin vs. CETES PERCENTAGES 9.0 8.8 CETES 8.1 80% 7.1 7.2 6.3 6.3 56% 5.6 6.2 5.4 4.9 4.6 NIM 5.0 4.3 4.3 4.2 4.1 3.9 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05

Non Interest Income 1Q04 1Q05 MILLION PESOS Trading & Fx Trading & Fx 34% Trading & Fx 15% Recovery 16% Services 56% Services 69% Recovery 10%

Non Interest Expense EFFICIENCY RATIO BILLION PESOS Total Expense 1Q04 2.6 1Q05 2.3 9% EFFICIENCY RATIO 76% 1Q04 61% 1Q05

Core Deposits BILLION PESOS Deposits 1Q03 1Q04 1Q05 Demand 53 60 64 Time 34 35 36 Total 87 95 100 Mix Demand 61% 64% 64% Time 39% 36% 36% 100% 100% 100%

Cost of Deposits % of CETES 37% 30% 27% 1Q03 1Q04 1Q05

Performing Loan Portfolio BILLION PESOS 87 85 72 1Q04 4Q04 1Q05 Variation 1Q04 4Q04 1Q05 QoQ YoY Consumer 24 29 30 4% 22% Commercial 25 29 29 (1%) 17% Corporate 13 14 16 16% 22% Government 10 13 13 (4%) 27% Total 72 85 87 3% 21%

Performing Consumer Loan Portfolio BILLION PESOS 30 29 24 1Q04 4Q04 1Q05 Variation 1Q04 4Q04 1Q05 QoQ YoY Mortgage 14 17 18 4% 23% Car loans 6 6 6 1% 5% Credit Card 3 4 4 7% 36% Payroll loans 1 2 2 8% 48% Consumer 24 29 30 4% 22%

Loan Portfolio Transformation 1Q03 1Q05 Government 8% Government 14% Commercial 36% Commercial 33% Consumer 29% Consumer 34% Corporate 27% Corporate 19% $60.3 billion pesos $87.4 billion pesos 45 %

Asset Quality Past due loan ratio Reserve Coverage BILLION PESOS 1Q03 Total Loan Portfolio 67 78 91 Past Due Loans 3.7 3.8 1.7 Loan Loss Reserves 4.7 4.8 2.7 Past due loan ratio Reserve Coverage 154.2% 5.6% 127.2% 127.2% 4.8% 1.9% 1Q03 1Q04 1Q05 1Q03 1Q04 1Q05

Capitalization Ratio 1Q03 1Q04 1Q05 Tier 1 10.9% 10.5% 12.5% Tier 2 2.4% 5.0% 3.6% TOTAL 13.4% 15.4% 16.2% Percentage of Tier 1 81% 68% 77%

Recovery Bank

Recovery Bank 1Q03 1Q05 MILLION PESOS 1Q03 1Q04 1Q05 Net Income 121 151 206 1Q03 1Q05 Proprietary 51% Proprietary 29% Managed 49% Managed 71%

ASSETS UNDER MANAGEMENT Recovery Bank ASSETS UNDER MANAGEMENT BILLION PESOS 62 58 58 Banorte risk (owned + auctions) 17 21 32 Serfin Portfolio 16 14 11 IPAB Porfolio (servicing) 25 23 19 1Q03 1Q04 1Q05

Long Term Savings Sector

ASSETS UNDER MANAGEMENT Afore ASSETS UNDER MANAGEMENT BILLION PESOS 33 28 22 1Q03 1Q04 1Q05 CUSTOMERS MILLIONS 2.4 2.3 2.1 1Q03 1Q04 1Q05

Insurance PREMIUMS SOLD CUSTOMERS 1.3 1.1 0.6 1Q03 1Q04 1Q05 2.8 1.7 BILLION PESOS 1.3 1.1 0.6 1Q03 1Q04 1Q05 CUSTOMERS MILLIONS 2.8 1.7 0.7 1Q03 1Q04 1Q05

GFNortes´s ROE and ROA ROE ROA 26.9% 1Q05 16.2% 1Q04 1Q04 1.0% 2.5%

2. Relevant Events

Start up of Pronegocio Jan ‘05 Authorization from Hacienda. Mar ‘03 24 branches operating and 16 to be open during 2005. Results: 1,536 customers. $43 million pesos in loans. $2 million pesos of past due loans. Loans characteristics: Amount $10 to $50 thousand pesos. Interest rate 3.5% - 4% monthly. Loan fee 3%. Term Up to 24 months. Collateral NAFIN at 80%.

Credit Card Campaign “Ya bájale” March 3 Launching of the program to transfer other banks credit card balances. Characterístics: Fixed interest rate 25%. Term: 6 to 36 months. 4 months at 0% interest rate. No annual fee. 5 thousand Banorte points. Result as of May 2nd: 250 million pesos in loans. 18,544 pesos average balance per customer.

3. Economic Environment

Macroeconomic variables 2005-2006 Economic Outlook Macroeconomic variables 2005-2006 Variables 2005 2006 GDP 3.70% 3.20% Inflation 3.80% 3.64% Fiscal deficit (% GDP) (0.15%) (0.15%) 28 days Cetes (Average) 9.49% 9.01% 28 days Cetes (End od period) 9.30% 8.75% Dollar exchange rate (End of period) 11.70 11.95 Trade balance (11,500) (12,000) Direct Foreign Invesment 14,500 13,500 Oil price 27 24 GDP USA 3.70% 3.50%

Political Environment Mexican macroeconomic fundamentals are strong, sustained by a prudent fiscal, and monetary policies. However, political noise could generate market volatility in 2H05 and beyond. At present, the market is focusing in the selection of presidential candidates. Mexico city´s major Andrés López Obrador, who is today the leading man on the 2006 presidential polls , won a political battle concerning his impeachment case and thus has the possibility to run. On the positive side both Institutional build up, as well as strong economic fundamentals, provide for a shield against populism and/or bad economic management. It is still too early to have a clear view of whom are going to be the candidates and what will be their respective platforms. By this fall this should be clearer.

4. Final Remarks

Long Term Goals Vision 20/20. ROE of 20% sustainable. Net Income growth of 20% per year: double every 4 years. Improve efficiency ratio. Innovation and bancarization. Aquisition and retention of high worth customers. Goal achievement: net income.

Market Cap MILLION DOLLARS 3,284 1,990 CAGR=68% 1,160 1Q03 1Q04 1Q05

Daily Volume MILLION DOLLARS 8.7 6.7 1.8 1Q03 1Q04 1Q05