1

2Q06 Results

August, 2006

2

1. 2Q06 Results.

2. Stock Performance.

3. Perspectives of the Banking Sector.

Contents

3

HighlightsMILLION PESOS

19% 25%

1H061H05

3,242

28%

13%

17.72

1.93

7.8%

48%

19% 2.29

7.6%

26%

2,813

26.25

28% 36%

2,422 2,81316%

37% 26%

Performing Loan Growth

Net Income

ROE w/o one offs

Stock Price

P/BV

Net Interest Margin

Tax Rate

Net Income w/o one offs

ROE

4

Evolution of Profits

612

2Q04

2,114

2Q05

1,368

1Q06

1,445

2Q06

Millions of pesos

VAT 704

AHMSA 222

IPAB (106)

1,294

One Offs

820

5

ROE and ROA

ROE ROA

1H05

3% 3%

1H06

26%

1H06

28%

1H05

6

Net Interest Margin vs CETES

CETES

Margen

6.3

7.1

8.1

9.7 9.5

8.6

9.0

7.6

5.6

4.4

5.1

6.2

8.5 8.3 8.5

7.37.5

4.2

75%

Percentages

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06

7.7

7.1

109%

Average CETES:

1H05: 9.34%

1H06: 7.36%

7

Non Interest Expense

BILLION PESOS

EFFICIENCY RATIO

Non Interest Expense

1H05

5.5

1H06

6.1

57%

1H05

56%

1H06

10%

Inertial55%

Business volume 0.25Solida employees 0.19Investment program 0.12

0.56

8

Core Deposits

BILLION PESOS

Demand

Time

Total

Mix

Demand

Time

Deposits 2Q04 2Q062Q05

80

44

124

64%

36%

100%

68

38

106

64%

36%

100%

64

37

101

64%

36%

100%

17%5%

18%

16%

6%

3%

9

BILLION PESOS

Performing Loan Portfolio

Commercial

Corporate

Government

Total

Consumer

2Q05 1Q06 2Q06Variation

2Q05 1Q06 2Q06

99116 123

23%12%

34%1%

(3%)(11%)

25%6%

34%9%

45

21

13

123

44

40

21

14

116

41

36

16

13

99

33

QoQ YoY

10

Performing Consumer Loan Portfolio

Consumer

Car loans

Credit Card

Payroll loans

Mortgage

BILLION PESOS

2Q05 1Q06 2Q06

2Q05 1Q06 2Q06

3341 44

2%3%

52%14%

70%12%

34%9%

34%9%

6

8

4

44

26

6

7

4

41

24

6

5

3

33

20

VariationQoQ YoY

11

MORTGAGE

LOAN ORIGINATIONBillion Pesos

CAR PAYROLL ANDPERSONAL

Consumer Loans

3.0

5.3

1H05 1H06

2.42.6

1H05 1H06

1.8

2.8

1H05 1H06

79% 7% 54%

12

Asset Quality

Past Due Loans

Loan Loss Reserves

RESERVECOVERAGE

PAST DUE LOANRATIO

Total Loan Portfolio

BILLION PESOS

2Q05 1Q06 2Q06

1.8

2.9

102

1.9

3.2

119

2.0

3.4

126

174%

161%

171%

2Q05 1Q06 2Q06

1.6%1.8%

1.6%

2Q05 1Q06 2Q06

13

Capitalization Ratio

Tier 1

Tier 2

TOTAL

Percentage Tier 1

2Q04 2Q05 2Q06

14.0%

3.3%

17.3%

81%

10.7%

3.8%

14.5%

74%

12.6%

2.5%

15.2%

83%

14

Net Income

Million Pesos

Recovery Bank

1H04

287

1H05

348

1H06

391

46 39 30

19 2532

2Q03 2Q04 2Q05

Banorte

IPAB

65 63 62

4

55

2Q06

59

ASSETS UNDER MANAGEMENT

15

Face Value(Billions of Pesos)

6.40

2.74

9.17Total

Price Paid (cents)

11.7

25.5

15.9

Type of Asset

Portfolio

Real Estate

Total Investment: Ps$ 1.46 billion

Assets Purchased in 1H06

16

Million Pesos

Afore InsuranceAnnuities

Total

Net Income of Long Term Savings

79

43

1H05 1H06

135

87

1H05 1H06

36%

25

247

1H05 1H06

871%

45%

239

377

1H05 1H06

57%

17

BROKERAGE FACTORING

81

106

1H05 1H06

4148

1H05 1H06

31% 18%

LEASING WHAREHOUSING

4259

1H05 1H06

8 6

1H05 1H06

41%27%

BONDING

912

1H05 1H06

36%

Net Income of Other CompaniesMillion Pesos

18

New Products

19

Ya Bájale

78,222

1H05 1H06

CLIENTSNumber

BALANCEBillions of pesos

18,778 317%

1,532

1H05 1H06

440248%

20

Banorte Fácil

546,857

1H05 1H06

1,538

1H05 1H06

214,437155%

666131%

CLIENTSNumber

BALANCEBillions of pesos

21

Enlace Express

Daily transactions in branches: 14,400

Amount paid daily: US $6 million

Amount per transaction: US $417

43,461

1H05 1H06

176

1H05 1H06

21,591101%

67 163%

CLIENTSNumber

BALANCEMillions of pesos

22

100,839

1H05 1H06

CLIENTSNumber

BALANCEBillions of Pesos

3.08

1H05 1H06

23,940 321%

1.37124%

New Initiatives

23

Créditos ProNegocio

27,320

1H05 1H06

479

1H05 1H06

5,968358% 150 219%

CLIENTSNumber

BALANCEMillions of pesos

24

Developments in Banorte USA

25

Current joint services.

Account transfers between Banorte and INB with no costs.

Free cash withdrawals and inquiries in ATM’s of both banks.

Check deposits in both banks without commission with

availability of funds in 24 hours.

Banorte USA Developments

Authorization process for INB and Uniteller.

4Q06

Process according to plans.

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2. Stock Performance

27

Stock Performance in 1H06

1H062004-2005

IPC

8%

Banorte

18%

IPC

102%

Banorte

128%

28

80

85

90

95

100

105

110

115

120

125

130

De

c-0

5

Ja

n-0

6

Fe

b-0

6

Ma

r-0

6

Ap

r-0

6

Ma

y-0

6

Ju

n-0

6

Ju

l-0

6

Stock Performance YTD

IPC: 110

GFNorte: 130

Jan-Jul 2006

GFInbur: 97

29

Stock’s Daily TurnoverMillions of dollars

1H03 1H04

2.0

5.4

1H05

7.2

1H06

14.9

CAGR: 95%

30

Market’s Most Active Stocks

Average daily volume in millions of dollars

1H06

Stock Volume

1) America Móvil 55.5

2) Cemex 33.6

3) Wal-Mart 30.9

4) Grupo México 27.6

5) Telmex 26.7

6) Televisa 16.1

7) Banorte 14.9

8) Geo 9.4

9) ICA 8.1

10) Femsa 7.3

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Market Capitalization

1,7921,420

2Q03 2Q04

3,365

2Q05

CAGR: 49%

4,660

2Q06

Billions of dollars

32

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

10 15 20 25 30

Comparison with Emerging Markets

Market cap in billions of dollarsJuly 2006

ROE

P/BV

Unibanco 9.2

Santander Chile 7.4

Banco de Chile 4.3

Itaú 31.6 Bradesco 30.4

Polonia 11.1

Inbursa 4.7

2003: 1.8

Premium

Discount

Turquía 6.72006: 5.5

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3. Perspectives of the Banking Sector

34

Evolution of Bank Loans

%

1Q04 al 1Q06

33%

115%

61%

57%

Commercial

Consumer

Mortgages

Total

35

Comparison with Latin America

34%32%

11%

23%

69%

Chile Brasil Promedio ArgentinaMéxico

TOTAL LOANS TO THE PRIVATE SECTOR % OF GDP

Banks

Other

11%

12%

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Challenges for 2H06

Strengthen the capital base.

Execution of branch development program.

Aqcuisitions in Banorte USA.

Fuel growth with control of operating expenses.

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