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GFNorte´s 4 Q06 Results

GFNorte´s 4 Q06 Results. Conference call January 26, 200 6. GFNorte Highlights. 55%. MILLION PESOS. 2005. 2006. Net Income. 5,957. 5,959. Net Income w/o one offs. 5,111. 5,959. 17%. 30.8 %. 24.9 %. ROE. 26.4 %. 24.9 %. ROE w/o one offs. Stock Price. 22.28. 42.25. 90%.

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GFNorte´s 4 Q06 Results

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  1. GFNorte´s 4Q06 Results Conference call January 26, 2006

  2. GFNorte Highlights 55% MILLION PESOS 2005 2006 Net Income 5,957 5,959 Net Income w/o one offs 5,111 5,959 17% 30.8% 24.9% ROE 26.4% 24.9% ROE w/o one offs Stock Price 22.28 42.25 90% Net Interest Margin 8.1% 7.7% 29% 37% Tax Rate 2.95 2.95 EPS P/BV 2.11 3.27 Performing loans growth 24% 20%

  3. GFNorte´s Income Statement MILLION PESOS Change 4T05 4T06 2005 2006 QoQ YoY Net Interest Income 3,671 13,799 3% 3,788 14,517 5% 1,345 6,425 44% Non Interest Income 1,936 7,777 21% Services 1,175 4,690 17% 1,372 5,194 11% Recovery 65 655 103% 131 867 32% Foreign Exchange & Trading 106 1,081 300% 434 1,716 59% 5,016 20,224 14% 5,724 22,294 10% Total Income 2,908 11,578 12% 3,270 12,458 8% Non Interest Expense 2,108 8,646 16% 2,454 9,836 14% Net Operating Income (346) (1,506) (5%) (329) (1,530) 2% Loan loss and loss sharing provisions (3) 1,084 229% (11) 200 (82%) Non Operating Income (Expense) Net (577) (2,358) 26% (728) (3,136) 33% Income Tax 34 91 248% 117 589 670% Subsidiaries and minority interest Reported Net Income 1,216 5,957 24% 1,503 5,959 0% 1,216 5,111 24% Recurring Net Income 1,503 5,959 17%

  4. Recurrent ROE and ROA ROE ROA 2.8% 2.7% 26.4% 24.9% 18.9% 1.2% 2004 2005 2006 2006 2004 2005

  5. Percentages Net Interest Margin vs CETES Average CETE’s Rate : 2005: 9.2% 2006: 7.2% 9.7 9.5 9.0 8.6 8.1 8.0 7.9 7.7 7.6 8.5 8.5 8.3 7.1 113% CETES 7.5 7.3 7.1 7.0 7.0 72% 6.2 MIN 5.1 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06

  6. 70.6% 56.8% 55.0% 2004 2005 2006 Non Interest Expense BILLION PESOS 2005 2006 Non Interest Expense 11.6 12.5 8% EFFICIENCY RATIO

  7. 11% 12% 11% Core Deposits BILLION PESOS YoY Change w/o / INB Deposits 2004 2005 2006 Demand 70 78 95 13% 21% Time 38 42 54 30% 9% Total 108 120 149 11% 24% Mix Demand 65% 65% 64% Time 35% 35% 36% 100% 100% 100%

  8. Performing Loan Portfolio BILLION PESOS 141 Extraordinaries 131 Nuevo León / Veracruz (4.7) FOVISSSTE (2.7) Mortgage Securitization (2.0) INB 8.4 Net Effect (1.0) 118 4Q05 3Q06 4Q06 Change 4Q05 3Q06 4Q06 YoY QoQ 39 49 47 (3%) 20% Consumer 41 47 59 24% 43% Commercial 21 22 24 7% 14% Corporate 16 13 11 (17%) (32%) Government Total 118 131 141 7% 20%

  9. 36% 29% 31% Performing Consumer Loan Portfolio BILLION PESOS Extraordinaries 49 47 FOVISSSTE (2.7) Mortgage Securitization (2.0) INB Mortgage Portfolio 0.9 Net Effect (3.8) 39 4Q05 3Q06 4Q06 YoY Change w/o / Ext Change 4Q05 3Q06 4Q06 QoQ YoY 23 29 27 (9%) 14% Mortgage Car loans 6 6 6 0% 3% Credit Card 6 9 10 11% 46% Payroll loans 4 5 5 4% 39% Consumer 39 49 47 (3%) 20%

  10. Asset Quality BILLION PESOS 4Q05 3Q06 4Q06 121 135 144 Total Loan Portfolio 1.9 2.1 2.1 Past Due Loans 3.2 3.6 3.5 Loan Loss Reserves PAST DUE LOAN RATIO RESERVE COVERAGE 172% 1.6% 1.6% 172% 166% 1.4% 4Q05 3Q06 4Q06 4Q05 3Q06 4Q06

  11. Banking Sector´s Capitalization Ratio 4Q04 4Q05 4Q06 12.2% 13.3% 12.2% Tier 1 4.0% 2.8% 5.1% Tier 2 16.2% 16.1% 17.4% TOTAL 75% 83% 70% Percentage Tier 1

  12. Recovery Bank Million Pesos 2004 2005 2006 Net Income 653 883 689 ASSETS UNDER MANAGEMENT 69 67 67 59 Banorte 24 34 49 57 IPAB 43 35 18 2 2006 2005 2003 2004

  13. Long Term Savings NET INCOME Million Pesos Total 525 407 253 2004 2005 2006 Afore Annuities Insurance 143 311 216 124 162 115 51 48 16 2004 2005 2006 2004 2005 2006 2004 2005 2006

  14. Recent Events • Banorte completed the acquisition of 70% of INB Financial Corp, holding company of Inter National Bank based in McAllen, Texas, by paying USD 259 million. • Banorte concluded theacquisition of 100% of UniTeller, a remittance company based in New Jersey with the payment of USD 19 million. • Banorte issued mortgage backed Securities (BORHIs) for an amount of Ps 2.0billion, becoming the first bank in this type of transaction in Mexico and obtaining the highest ratings from S&P, Fitch and Moody´s.   • For the second year in a row The Banker magazine recognized Banortewith the award of“The Best Bank of the Year in Mexico”in recognition for its performance over the past year.

  15. Changes to MX Accounting Standards Impact Change Fees charged for new loans will be deffered over the life of the loan (in line with US GAAP). Negative impact on P&L. Excess loan loss reserves will be credited against the income statement in 1Q07. Positive impact on P&L. Financial derivatives will have to be marked to market. Minor impact on P&L and capital. Recoveries on previously written off loans will be directly recognized in P&L. Offseting impact between P&L and reserve account. Valuation of reposessed assets using the UDI and considered as non monetary assets. Positive impact on P&L, but it could reduce profits once the asset is sold. Full consolidation of Solida. Slight increase in efficiency ratio.

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