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2Q02 RESULTS2Q02 RESULTS

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HighlightsHighlights1H021H01

2Q02 GFNORTE RESULTS2Q02 GFNORTE RESULTS

GFNORTE

GFNorte’s Net Income (PS million) 912.6 1,141.0

GFNorte’s Net Income (PS million) (Excluding Generali) 742.6

ROE 21.2% 23.2%

ROE (Excluding Generali) 15.2%

EPS (Ps/per share) 1.81 2.28

Book Value 18.03 20.78

BANKING SECTOR

Banking Sector’s Net Income (PS million) 779.1 984.9 Banking Sector’s Net Income (PS million) (Excluding Generali) 618.4

Capitalization Ratio 15.6% 13.1%

Loan Portfolio annual growth (Exc.FOBA/IPAB) (21.1)% 46.8%

Total Deposits annual growth 9.3% 48.7%

Past due loan ratio 5.4% 3.4%

Reserve Coverage 100.0% 117.2%

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GFNorte generated profits for PS 1,141 million in 1H02GFNorte generated profits for PS 1,141 million in 1H02

ACCUMULATED NET INCOME IN 1H02ACCUMULATED NET INCOME IN 1H02MILLIONS OF PESOSMILLIONS OF PESOS

BANKING PS 984.8 86.3%

($6.2)HOLDING (0.5%)

$53.9BROKERAGE 4.7%

$75.7LONG TERM SAVINGS 6.6%

$32.8AUXILIARY ORGANIZATIONS 2.9%

PS 1,141.0GFNORTE 100%

4DATA AS OF JUNE ‘02.

2Q01 2Q02 % GROWTHQTR YR

LOAN PORTFOLIO(Millions of Pesos)

Traditional loan portfolio showed an important Traditional loan portfolio showed an important growth specially in Mortgage and Consumer loansgrowth specially in Mortgage and Consumer loans

1Q02

10,028Commercial

Mortgage and Consumer

Mortgage

3,419

1,970

Credit Card 530

Auto 730

14,542

13,028

9,211

1,204

2,241

45.0%

281.0%

367.5%

127.3%

207.0%

Other 189

Corporate 7,193

Recovery Banking 6,587

372

9,353

5,689

96.3%

30.0%

(13.6)%

13,825

11,936

8,711

1,053

1,859

313

8,728

6,008

5.2%

9.1%

5.7%

14.4%

20.5%

18.7%

7.2%

(5.3)%

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Bancrecer’s IntegrationBancrecer’s Integration

Commercial:

We started the third stage of the integration process – Commercial Integration –

in May.

By the second quarter, 67 branches were closed down, for a total of 97

shutdowns.The network now consists of 1,091 branches.

13 additional offices are scheduled for shutdown in July.

Personnel

Downsizing adjustments made, imply a 1,974-employee reduction, an a monthly

saving of Ps 25 million, equivalent to 13.6% vs. the payroll on December 31,

2001. Annual savings in personnel are Ps 540 million.

Communication with personnel has been enhanced through the Banorte

Corporative Intranet information system.

Salaries of Bancrecer’s personnel were equalized to those of Banorte.

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Bancrecer’s IntegrationBancrecer’s Integration

Operations and Technology

The inter-operational project that started last April 22 has won the

acceptance of clients of both banks. Bancrecer’s attrition rate is 5%.

Applications will gradually be released to enhance service.

By October, we will be fully integrated for the public.

Marketing

Re-branding inside the branches is practically completed.

• We are currently starting with the external re-branding in branches, which

should be completed by the end of third quarter.

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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 JUNE 2002

2,5442,544

Banorte

TOTAL

6,538

REPOSESSED ASSETS 12,738

TOTAL ASSETS $62,911100%

Bancen

Banpaís

2,463

16,228

Serfín

New Portfolios

13,748

11,196

Loans purchasedor managed-IPAB 24,944

TOTAL LOAN PORTFOLIOS 50,173

5,549

0

11,196

1,228

$17,97329%

16,745

11,196

SHAREDW/IPAB

989

10,718

0

3,038

$14,74523%

11,707

10,718

48%

1,0211,021

27%27%

29% 23%

IPAB

0

2,463

16,228

3,030

0

8,472

$30,193

21,721

3,030

48%

19%19%

BANORTE

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The Non Interest Expense control has been The Non Interest Expense control has been fundamental ...fundamental ...

NON INTEREST EXPENSENON INTEREST EXPENSE

1999 2000

MILLIONS OF PESOS OF JUNE 2002

... resulting in a 15% expense decrease from 1999 to 2001.

2001

7,466

6,325 6,377

15%15%

1H01 1H02

6.74.0

NON INTEREST EXPENSEPER BRANCH

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ASSETSASSETS

25.5%

10.5%

BANACCI GFNORTE

7.9%

GFBITALGFSANTANDER

SOURCE: CNBV AT 1Q02.

GFBVA-BANCOMER

14.6%

2°

22.2%

4°7.9%

SCOTIABANK

COMPARATIVES TO THE INDUSTRYCOMPARATIVES TO THE INDUSTRY

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DEPOSITSDEPOSITS

26.7%

11.8%

BANACCI GFNORTE

8.8%

GFBITALGFSANTANDER

SOURCE: CNBV AT 1Q02.

GFBVA-BANCOMER

15.0%

2°

21.5%

4°5.3%

SCOTIABANK

COMPARATIVES TO THE INDUSTRYCOMPARATIVES TO THE INDUSTRY

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LOAN PORTFOLIOLOAN PORTFOLIO(Including Fobaproa/IPAB)(Including Fobaproa/IPAB)

26.1%

14.3%

BANACCI GFNORTE

6.8%

GFBITALGFSANTANDER

SOURCE: CNBV AT 1Q02.

GFBVA-BANCOMER

13.8%2°

20.3%

3°5.4%

SCOTIABANK

COMPARATIVES TO THE INDUSTRYCOMPARATIVES TO THE INDUSTRY

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NUMBER OF BRANCHESNUMBER OF BRANCHES23.5%

16.2%

BANACCI GFNORTE

19.2%

GFBITAL GFSANTANDER

SOURCE: CNBV AT 1Q02.

GFBVA-BANCOMER

12.9%2°

20.8%

4°5.1%

SCOTIABANK

COMPARATIVES TO THE INDUSTRYCOMPARATIVES TO THE INDUSTRY

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ROE ROE MARCH 2002MARCH 2002

COMPARATIVES TO THE INDUSTRYCOMPARATIVES TO THE INDUSTRYGFNorte´s ROE ranks among the highest in MexicoGFNorte´s ROE ranks among the highest in Mexico

40.4%

8.3% *

BANACCI

GFNORTE

5.9%

GFBITALGFSANTANDER

(1) Excluding Ps 383 million of extraordinary income from GeneraliSOURCE: PRESS RELEASE EACH BANK AT 1Q02. * AS OF SEPTEMBER 2001

GFBVA-BANCOMER

14.8%

2°

15.5%

2° 2°

15.2% (1)

2°

1Q02 2Q02

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The capitalization ratio increased to 13.1% with rules The capitalization ratio increased to 13.1% with rules of 2003of 2003

12.1%9.3%

12.3%

BANAMEX BBVA -BANCOMER

BITALBANORTE

SANTANDER SERFÍN

20012003 200320032001RULES OF:

18.5%

CAPITALIZATION RATIOCAPITALIZATION RATIO

12.9% 13.1%

1Q02 2Q02

2°2° 2°2°

Data as of March ‘02 from the Press Release of each bank. * AS OF DECEMBER 2001.

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RECENT EVENTSRECENT EVENTS

Payment from Generali

•Assicurazioni Generali made a USD 45 million payment to Banorte in June’02 for

the expansion of it’s branch network after Bancrecer acquisition, and for the

technological infrastructure developments for the Afore, Bankassurance and

Annuities businesses. This payment was accounted as an Extraordinary Income

in the 2Q02.

Afin Casa de Bolsa lawsuit

• GFNorte was granted a temporary Stay of proceedings in the lawsuit against it’s

brokerage house. The lawsuit in question was filed in 1994 against Afin Casa de

Bolsa (later Casa de Bolsa Banorte). In it, the widow and heirs of Mr. Lance de la

Torre claim the AFIN 7.8% stake that belonged to the deceased, as well as

payment of the dividends genereted from 1990 to 1994.

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RECENT EVENTSRECENT EVENTS

This lawsuit is unsubstantiated as these shares were given over, and later-sold-as

per their own instructions-through the Mexican Stock Exchange, since June, 1990.

There have been attempts to involve GFNorte in the process, therefore the Group

submitted last July 5th an Indirect writ of Relief on the “habeas corpus” procedure

as it is clear that it can not be condemmed in a trial of which it was never a part.

Moreover, AFIN Casa de Bolsa also filed criminal charges against judges and

magistrates of the court of equity, as well as the federal judges, who were aware

of the issue in the first and second instances and the writ for relief.

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Risk FactorsRisk Factors

Operating Risks Bancomer BanorteFierce competition of international institutions Consolidation in the sector Same

Subsidiaries´ co-obligations Minimum capital requirements SameInsolvency Same

Non income generating activities of the Holding Co. All income comes from subsidiaries SameGovernment regulations could be adverse Loan loss provisions Same

Capital requirements SameDebtors support programs Same

Inadequate loan loss provisions estimate Tighter requirements Same

Fobapora-IPAB exposure USD 8.6 Billion (35%)USD 9.1

Billion (67%)

Short term funding Short term deposits Same

Foreign exchange asset-liability mismatch Some mismatch No mismatch

Dollar exchange rate and interest rate volatility Risks associated

Lower USDexposure

Majority shareholder official investigation BBVA and some Board members No investigations

Integration of another bank in process BBV-Probursa and Promex Bancrecer

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Risk FactorsRisk Factors

Country Risks

A recesion and/or inflation and interest rates increase Example: 1994 economic crisis Same

Peso-dolar exchange rate depreciation or devaluation

Impact on financials Same

International adverse events Close tights with the USA Same

Terrorist attacks to the U.S. New attacks against USA Same

Bancomer Banorte

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