GFNORTE

October 25th, 2019

Conference Call: 3Q19 Results

2

Disclaimer

This presentation contains certain general information as of the date hereof, information which have been prepared for information purposes only. Information is hereby presented in summary

and does not pretend to be exhaustive and detailed. There is no statement or guarantee herein, expressed or implied, regarding the accuracy, thoroughness, completeness, impartiality or

soundness of this information or estimations or projections considered or stated or that such projections will materialize. Grupo Financiero Banorte, S.A.B. de C.V.’s relevant information is

contained in public documentation available in the webpage of the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) and the Mexican Stock Exchange

(Bolsa Mexicana de Valores, S.A.B. de C.V.) in http://www.cnbv.gob.mx and http://www.bmv.com.mx, respectively. In the event that new public information is disclosed in the aforementioned

webpages, such information shall prevail and any person shall read, in detail, any such public documents before making any decision related to the content of this presentation. All analysis and

statements included in this presentation are based upon information available as of the date of this presentation, and Grupo Financiero Banorte, S.A.B. de C.V. or any of its affiliates and

employees undertake no obligation to update or revise any such analysis and statements, whether as a result of new information or future events or developments.

Any person receiving this presentation, from the moment of reception, recognizes that the information contained herein is for information purposes only, and that it does not cover, or pretends to

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1.95%

2.10%2.20%

2.24%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

ROA

18.0%

19.7% 19.5% 19.6%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

ROE

1.99 2.05 2.24

2.34 2.44

2.59 2.71

3.53 3.44

3.03 3.07

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

EPSResilient Quarter on Earnings & Returns

+222bp y/y

+20bp y/y

3Q19 q/q y/y 9M19 y/y

Net Income 8,858 1% 13% 27,518 26%

Recurring 26,335 21%

EPS 3.07 1% 13% 9.54 26%

Recurring 9.13 21%

ROE 19.6% 15bp (7)bp 20.5% 162bp

Recurring 19.7% 88bp

ROA 2.24% 4bp 14bp 2.30% 27bp

Recurring 2.20% 17bp

CT.xls "CC"

2.96 3.03

2.13% 2.18%

20.1% 19.9%

4

444

579

2,363

2,651

3,053 3,2803,387

-

1,000

2,000

3,000

4,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Electronic Banking Services Account Mgmt. Fees Fund Transfers

Core Business Performance on Track

NII on Loans +2% q/q, 10% y/y.

NII on Insurance & Annuities +16% q/q, 9% y/y.

3Q Total NIM recovering +25bp q/q.

Net Service Fees (12%) q/q, on a 2Q high base

comparison. 9M19 +5% y/y.

Core Banking Fees +3% q/q

Million pesos 3Q19 q/q y/y 9M19 y/y

NII Loans 15,827 2% 6% 46,482 10%

NII Repos 2,045 (3%) (7%) 6,269 1%

NII Val. Adjust 51 98% (235%) 111 502%

NII Insurance & Annuities 2,191 16% 8% 7,528 9%

NII 20,114 3% 6% 60,390 9%

Net Service Fees 3,183 (12%) (8%) 9,781 5%

Trading Income 2,303 139% 162% 4,417 49%

Other Income 15,827 2% 6% 46,482 10%

Recurring 1,857 29%

Total Revenues 26,322 6% 10% 78,106 13%

Recurring 76,445 11%

CT.xls "CC"

23.824.7

26.3

5.0

10.0

15.0

20.0

25.0

30.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Billio

n P

es

os

Total Revenues

25.0 25.4

2,000

2,250

2,500

2,750

3,000

3,250

3,500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Core Banking Fees

Core Banking Fees: Fund Transfers, Account Management Fees, Electronic Banking Services

+3%

+3% q/q

(3%)

+11%

Core Banking Fees

5

Evolution of Net Interest Margin

5.7%

5.6%

5.5%

5.7%

4.5% 4.4%4.5%

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

NIM of Group

NIM ex-Insur. & Annui. NIM after Prov.

6.5% 6.3%6.5%

8.4%8.0%

8.3%

4.95% 4.91%4.97%

4.0%4.5%5.0%5.5%6.0%6.5%7.0%7.5%8.0%8.5%9.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

NIM of Bank

NIM NIM from loan portfolio After Prov.

Cost of Acquired Assets

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Cost of Funding Cost of Deposits

GFI

Merger

(90bp) y/y

(14bp) q/q

91.5bn 86.1bn

Original Funding Actual Funding

TIIE + 21 bp

TIIE – 84 bp

Total Funding Cost

(18bp) q/q

6

9,461 9,525 10,578

39% 37% 40%

3Q18 2Q19 3Q19

Non-Interest Expense

41.4%

39.7%

38.5%

40.2%

30%

35%

40%

45%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Cost to Income Ratio

8.8%6.0%

0%

5%

10%

15%

20%

25%

30%

35%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2017 2018 2019

y/y Revenues y/y Expenses

Efficiency Under Control

Annual expense growth at 9% in line

with guidance.

Annual efficiency ratio of 38.5% aligned

to guidance target.

Total

Personnel

9M19

+9% y/y

CT.xls "CC"

21.3%

Recurring

+11%

39.4%

Recurring

5,000

10,000

15,000

20,000

25,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Recurring Income Expenses

7

Credit and Loan Activity

8%10%

3%

-3%

-3%

3%

-3%-20%-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

TOTAL Commercial Corporate Government

17%

32%

10% 9%10% 11%10%

-4%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Mortgage Auto Credit Card Payroll

2Q17 3Q17 4Q17 1Q18 2Q18

3Q19 q/q y/y

Commercial 167,839 (2%) 3%

Corporate 123,767 (6%) (3%)

Government 157,821 (16%) (20%)

Mortgages 166,286 2% 10%

Car Loans 25,889 2% 11%

Credit Card 39,028 3% 10%

Payroll 52,096 (1%) (4%)

Consumer Loans 283,298 2% 8%

Total 732,726 (5%) (3%)

Total ex-Government 574,905 (1%) 4%

300

400

500

600

700

800

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Total Loan Portfolio

Loan Portfolio ex-Gov. Loans Total

180

200

220

240

260

280

300

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Consumer Loan Portfolio +2% q/q

(5%) q/q

(1%) q/q

Corporates refinancing resulting in high loan

prepayments.

Consumer books remains with positive growth

momentum.

8

2.29%

1.91%

2.15%

1.50%

2.00%

2.50%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Cost of Risk

Credit Quality

Stable NPL ratio.

Declining delinquencies.

Higher cost of risk in the quarter as

anticipated.

Isolated case draws write-off rate up.

2.3%*

* Excluding extraordinary Provisions on Corporate exposure

CT.xls "CC"

1.8% 1.8% 1.9% 1.9%

1.0%

1.5%

2.0%

2.5%

3.0%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

NPL Ratio

0.53% 0.51%0.44%

0.62%

0.00%

0.25%

0.50%

0.75%

1.00%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Write-Off Rate

0.56%*

* Excluding extraordinary Charge-off on Corporate exposure

9

115,486

131,568

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Annuities Assets

3,302 3,037 3,765 3,586

-

2,000

4,000

6,000

8,000

10,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2017 2018 2019

Insurance Retained Premiums

Relevant Subsidiaries

Bank Net Income +3% q/q, +21% recurring y/y.

Insurance with retained premiums 9M19 growth

of +8%. Net income 9M19 +14%.

Afore Net Income +21% y/y.

Annuities Assets growth +14% y/y.

Net income 9M19 +20%.

Million pesos 3Q19 q/q y/y 9M19 y/y

Bank 6,613 3% 12% 20,265 29%

Recurring 19,082 21%

Broker 345 48% 3% 883 (1%)

Insurance 739 (10%) 7% 3,174 14%

Annuities 263 18% 14% 758 20%

Afore 415 (2%) 21% 1,249 21%

Leasing & Factoring 285 36% 61% 721 10%

Participation in Net Income of GFNorte

1H18

CT.xls "CC" 9M19

+8% y/y

Cifras son lo que las subsidiarias aportan a GFNorte

El Edo Res de Banco, Seguros y Afore, es diferente

por la participación accionaria que no es del 100%

632 739

866

-

200

400

600

800

1,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2017 2018 2019

Afore Net Income

+14% y/y

10

Bank Regulatory Capital Ratio

7.68%

9.18%

11.18%

11.5% 12.7% 12.4% 12.1% 11.9% 12.7% 12.1% 12.7%

12.7% 13.1% 13.3%

15.1% 15.3% 14.6%

15.3%

17.2% 17.8%

16.6% 17.2%

18.1%

20.0% 20.3%

2013 2014 2015 2016 2017 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

*RWA= Risk Weighted Assets annual growth

RWA

Tier 1

18.5%

Basel III

Capital Adequacy Ratio (CAR)

+17% +11% +8% +16% (2%) +7% +19% +19% +20% +19% +5%

CET1

1.8%

Minimum

Regulatory

Ratios

11

Cross-sell Ratio

Products per Client

1.79

1.83

1.89

1.98 2.00 2.01

2.03

2015 2016 2017 2018 1T 2T 3T

2019

12

GFNorte Guidance 2019 and Estimates for 2020

Previous

Guidance 2019

New

Guidance 2019

Loan Growth (ex-Gov) 7% – 9% 4% – 5%

NIM Expansion 15 – 20bp 15 – 20bp

Expense Growth 7% – 9% 7% – 9%

Efficiency 37.5% – 38.5% 37.5% – 38.5%

Cost of Risk 2.0% – 2.3% 2.0% – 2.3%

Tax Rate 26% – 28% 26% – 28%

Net Income 36.0 – 36.8 36.0 – 36.8

ROE 19.9% – 20.3% 19.9% – 20.3%

Economic Estimates 2019 2020

GDP Growth 0.3% 1.4%

Inflation 3.3% 3.0% – 3.5%

Banxico Reference Rate 7.25% 6.0% – 6.5%

October 25th, 2019

Conference Call: 3Q19 Results

GFNORTE