1 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs 2Q20
2 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
History and Business Highlights 3
Market Presence 7
Digital Bank 9
Results 13
NIM 14
Cost to Income 15
Net Income 16
ROE / ROA 17
Deposit & Loans 18
Loans / Deposits 19
Deposits growth 20
Loan growth 21
Asset Quality - NPL 23
CAR 27
Appendix 29
3 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
A Leading Bank in Mexico Globally Recognized
Balanced business mixStrong retail, wholesale
and premium banking platforms.
Sound FundamentalsSolid asset quality,
increasing profitability, high liquidity
and strong capitalization ratios.
Investment grade ratingsS&P, Fitch,
Moody's and HR Ratings.
4 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Nation Wide Operation
1,180Branches
9,060ATM´s
162,127 POS´s
16,035 Correspondents
5 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
From Regional to Leading and Innovative Bank
20 | 20
Establishment
1899 1982-2092 1995 2000 2010 2018
Privatization
IXEAfin BancentroBanpaísBancrecer
…
Inorganic Growth
Regional Bank
Business Diversification
& Consolidation
Client
Segmentation
IT : central DB,
multichannel
Profitability
Nationalization
G.F. Interacciones
6 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
20/20
Transformation to Digital Bank Centered on the Client
PRODUCTS &
SOLUTIONS
Deposits & Loans
Insurances
Pension
Annuities
Wealth Mngt.
…
DISTRIBUTION
CHANNELS
Mobile
Internet
ATM
Contact Center
Branches
…
PROCESSES
Account opening - Credit Analisis
Next Best Offer – Next Best Action
Client Segmentation
▪ 12 million clients
▪ Structured Info & Learning
(Central DB & Watson)
▪ Behavior understanding
Analitics
Cost
Revenues
Digital Bank
20
15
7 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
BBVA23%
Banorte14%
Santander13%
CitiBanamex13%
ScotiaBank8%
HSBC7%
Inbursa4%
Others18%
BBVA23%
CitiBanamex15%
Santander13%
Banorte13%
HSBC8%
ScotiaBank7%
Inbursa3%
Others18%
Loans
May 2020
Deposits
2°
Deposit & Loan Market Share
Source: CNBV.
4°
8 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Consumer C. Cards Mortgage Commercial Government Deposits
May-19 May-20 May-19 May-20 May-19 May-20 May-19 May-20 May-19 May-20 May-19 May-20
Banorte 12.1% 12.2% 9.7% 10.2% 19.4% 19.3% 10.2% 10.2% 34.6% 29.4% 13.9% 13.2%
BBVA 28.6% 29.4% 27.6% 28.1% 25.9% 26.1% 18.6% 19.5% 24.8% 28.1% 21.9% 23.2%
CitiBanamex 14.6% 12.6% 27.0% 26.0% 10.0% 9.0% 12.4% 12.8% 6.4% 7.5% 14.3% 14.6%
Santander 8.8% 8.9% 14.2% 14.3% 16.7% 16.5% 13.2% 13.1% 12.0% 13.9% 13.4% 13.4%
HSBC 6.3% 6.5% 5.6% 5.8% 6.4% 7.3% 8.9% 8.0% 5.2% 6.4% 8.4% 8.0%
ScotiaBank 5.2% 5.1% 2.7% 2.7% 14.8% 15.3% 7.2% 7.7% 1.8% 2.6% 6.5% 6.5%
Inbursa 4.7% 3.9% 4.1% 4.2% 0.6% 0.6% 0.0% 0.0% 3.2% 2.3% 3.1% 2.9%
Others 19.7% 21.3% 9.1% 8.7% 6.1% 6.0% 29.5% 28.7% 12.0% 9.9% 18.4% 18.2%
Market Position 3° 4° 2° 4° 1° 4°
Loan Portfolios Market Share
Source: CNBV.
9 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs9
Fast Moving to Self-service/Digital Operations
Transaction Change
Jun vs Feb
Account statements 408%
Check deposit 100%
Payment of Services 91%
Transfers 31%
Payment to Credit Card 23%
Registration of Clarifications 140%
Lock and unlock of Credit Card 32%
Initial Activation of Credit Card 8%
Balance and Movements Consultation 20%
Mobile recharge 15%
1
2
3
4
5
6
7
8
9
10
Self-s
erv
ice
Se
rve
d b
y s
taff
Physical Remote
WEB and
Mobile
Contact
Center
Branch
ATM
NPS
10 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
39.269.2
141.9
223.9
249.8
0
50
100
150
200
250
300
1Q2017
3Q 1Q2018
3Q 1Q2019
3Q 1Q2020
Digital Transformation Gaining Share
Transactions GrowthTransactions (Tx) Customers Using Digital (millions) +76%
24%
32%
19%
2%
1%
19%
3%WEB
MobileATM
Call Center
Correspondents <
POS
Branches
3.50
3.904.12 4.21 4.28 4.30
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
*
Time Deposits
Mutual Funds
Credit Card
Insurance
Digital Deposit Account
Payroll loans
Mobile
as a
Point of Sale
11 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Mobile Product Segmentation
Individuals
SMEs
Corporates
• Security / transactional & sales functions (>70)
• The born in social media, Banorte Go
• CoDi payments
• Cash Management
• Payments
• Services
• Credit
• Reporting
• Security management
• Reporting
12 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Adapting the Business & Infrastructure to the New Payments Market
The best DIGITAL PLATFORM
for aggregators
CoDi – Test Pilot and further
development underway
Recovery on POS’s transactions pre
COVID-19 with emphasis on e-commerce
54
42
56
0
10
20
30
40
50
60
ene-20 feb-20 mar-20 abr-20 may-20 jun-20
POS’s Transactions
13 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Results
14 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
3.2%
3.6% 3.6%3.5% 3.5%
3.7%
4.5%
4.8%5.0% 4.9% 5.0%
5.2%
4.7%
3.0%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q19 3Q19 4Q19 1Q20 2Q20
NIM
Bank Net Interest Margin
NIM
(Post-Provision)
4.1%
4.5%4.8% 4.9%
4.7%
5.2%
5.8%
6.3% 6.4% 6.3%6.5%
6.6%
6.3%
5.8%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q19 3Q19 4Q19 1Q20 2Q20
15 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Improving Efficiency
Cost to Income56.0% 54.0% 53.7%
50.5% 50.9%
47.5%
45.0%
41.4%43.0%
41.6%43.1% 43.8% 43.7%
42.2%
35%
40%
45%
50%
55%
2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2Q19 3Q19 4Q19 1Q20 2Q20
* Recurring
Reported
41.4% 42.3%
16 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
6,553 6,730 6,848
6,180
3,669
7,077
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2Q19 3Q19 4Q19 1Q20 2Q20
Strong Net Income
Net Income
8,517
10,88812,122 11,936
13,518 15,044
18,339
23,158
26,289 24,834
27,493
7,500
10,000
12,500
15,000
17,500
20,000
22,500
25,000
27,500
30,000
2011 2012 2013 2014 2015 2016 2017 2018* 2019*
Million Pesos
CAGR
2011-2019 +17%
(44.0%)
YoY*
+14%
YoY* Recurring
* w/o advanced
provisions
17 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
1.1%
1.30%
1.60%1.40% 1.47%
1.56%
1.79%
2.11%2.26% 2.25% 2.32% 2.37%
2.02%
1.11%
2.27% 2.36%2.14%
1.0%
1.5%
2.0%
2.5%
3.0%
2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2Q19 3Q19 4Q19 1Q20 2Q20
ROA
Constant Positive growth in Profitability
ROE
14.1% 14.3%16.4%
13.7% 13.7%14.8%
20.3%
24.1% 23.4%
22.8%23.6% 23.9%
21.7%
12.4%
25.7% 24.2%23.9%
10%
15%
20%
25%
30%
2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2Q19 3Q19 4Q19 1Q20 2Q20
* Recurring
Reported:
Reported:* w/o advanced
provisions
* w/o advanced
provisions
18 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Loans
Deposits
19 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Healthy Funding & Loan Portfolio Structure
2019 2Q20
$757 bn
DemandTime
Money
Market
Interbank
Loans
$744 bn
2Q20
Consumer
Commercial
Mortgage
Corporate
Government
Commercial
Consumer
Mortgage
Government
Corporate
US 37.4 bn
Demand
Money
Market
Time
Interbank
Loans
US 33.7 bn
Billion Pesos
Funding
Loan Portfolio
$864 bn
$779 bn2019
55%31%
9%5%
21%
22%
19%
23%
15%
20 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Demand68%
Time32%
129 136158 168
194223 229 236 236 229 227 224
255300
351384 397 414
394 396 401438 454
482
384436
509551
590637 623 632 637
667 681 706
100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Time Demand Core Deposits
2Q19 2Q20
Demand 396 482
Time 236 224
TOTAL 632 706
Loyal Deposits Base
Demand62%
Time38%
MIX
2013 2Q20
Billion Pesos
22%
(5%)
12%
Deposits
YoY
+22%
YoY
(5%)
2013-2019 CAGR:
+10%
YoY
+12%
21 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Continued Growth in Performing Loan Book, Special Focus on Consumer
US 33.7 bn
Billion Pesos 2Q19 1Q20 2Q20 QoQ YoY
Mortgage 163 173 177 2% 9%
Car Loans 25 27 27 (2%) 5%
Credit Cards 38 39 37 (3%) (1%)
Payroll 51 50 51 2% 2%
Consumer 276 289 293 1% 6%
Commercial 156 166 171 3% 10%
Corporate 133 146 153 5% 15%
Government 185 161 161 0% (13%)
TOTAL 750 763 779 2% 4%
335 389
420 464
510 557 604
756 746
750716
744 763 779
300
400
500
600
700
800
2011 2012 2013 2014 2015 2016 2017 2018 1Q192Q193Q194Q191Q202Q20
Total Loan Portfolio
98118
140155
174201
237
267 271 276 282 286 289 293
50
100
150
200
250
300
2011 2012 2013 2014 2015 2016 2017 2018 1Q192Q193Q194Q191Q202Q20
CAGR:
+14%
US 12.7 bn
CAGR:
+10%
Consumer Portfolio
22 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Loan Book View
89%
0%11% 17%
28%
12%
43%
Currency Term
22%
10%
18%10%
10%
9%
21%
Sector
1 year
5 years
10 years
> 10 yearsPesos
Dollars
UDIs
Subnational
Government
Federal
Government
Services
Commerce
Manufacturing
Transportation
Other
23 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Credit Cards 6.1% 6.3% 6.0% 5.5% 5.9% 5.9% 6.0% 5.4% 5.8% 5.5%
Payroll 2.9% 3.3% 4.1% 3.7% 3.0% 3.8% 3.4% 3.3% 2.7% 3.3%
Car Loans 0.9% 1.1% 1.1% 1.1% 0.9% 1.0% 1.0% 1.0% 0.9% 1.2%
Mortgage 0.9% 0.9% 1.0% 0.9% 1.0% 1.0% 1.1% 1.1% 1.2% 1.3%
Commercial 2.6% 2.6% 2.3% 1.9% 2.2% 2.5% 2.7% 2.5% 2.4% 1.1%
Corporate 3.0% 2.9% 2.8% 2.8% 2.7% 2.8% 2.7% 1.7% 1.7% 0.2%
Government 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1%
Total Banorte 1.9% 2.0% 1.8% 1.7% 1.7% 1.9% 1.9% 1.6% 1.7% 1.1%
2.9%
2.2%
1.8%2.0%
1.7% 1.6% 1.7%1.9% 1.9%
1.6% 1.7%
1.1%
1.0%
2.0%
3.0%
2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Sound Asset Quality
Past Due Loan Ratio
1.9bn on
advanced
write-offs
24 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
2.2% 2.3%2.0% 1.9% 1.9%
2.2% 2.0%2.2%
4.4%
2.1%2.5%
2.1%2.4%
2.2%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Actual
Prev. Criteria
103% 106%115%
139%128%
142% 138% 136%128% 127%
138% 140%
203%
90%
110%
130%
150%
170%
190%
2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Sound Asset Quality
Coverage Ratio
Cost of Risk
* Cost of Risk: Provisions / Average Total loans (Performing + Past Due), On actual criteria all the recoveries are register on Provisions (net)
1.9%
Without 4.9 bn
one-hit impact
25 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Healthy Liquidity
Loans / Deposits
(%)
Liquidity Coverage Ratio
CCL (%)
104%
98%
96%
90%
95%
100%
105%
1Q2015
3Q 1Q2016
3Q 1Q2017
3Q 1Q2018
3Q 1Q2019
3Q 1Q2020
122%120%
151%
60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
1Q2015
3Q 1Q2016
3Q 1Q2017
3Q 1Q2018
3Q 1Q2019
3Q 1Q2020
26 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Healthy Leverage Ratio
7.5% 7.8%8.4% 8.4%
10.8% 10.8% 10.9% 11.0%
5.0%
7.5%
10.0%
12.5%
2015 2016 2017 2018 2019 4Q19 1Q20 2Q20
20.2% 20.5%21.4%
20.5%
23.7% 23.7% 24.1%25.2%
15.0%
17.5%
20.0%
22.5%
25.0%
27.5%
2015 2016 2017 2018 2019 4Q19 1Q20 2Q20
Net Capital / Credit Risk Assets
Leverage RatioBasic Capital / Adjusted Assets
27 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Strong Capital Position
7.90%
9.40%
11.40%
Capital Adequacy Ratio
12.7% 12.4% 12.1% 11.9% 12.7%13.8% 13.1% 13.3% 13.3% 12.2%
13.2%
5.2%
1.3%
15.3%14.6%
15.3%
17.2% 17.2%18.1%
20.0% 20.3%
18.6% 19.0%19.7%
2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
*RWA= Risk Weighted Assets annual growth
RWA
Basel III
+11% +8% +16% (2%) +19% +20% +19% +5% +7% +9% +15%
CET1
Minimum
Regulatory
Ratios
Total
Tier 1
18.4%
Tier 2
28 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Investment Grade by All Major Rating Agencies
RatingAgency Outlook Date
BBB-
BBB
Fitch
Standard & Poor’s Negative
Negative
Mar-20
Jul-20
baa3Moody’s Negative Aprl-20
29 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Appendix
30 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Quarterly Summary
Income Statement and Balance Sheet
Highlights - Bank 2Q19 1Q20 2Q20Change
(Million Pesos) 1Q20 2Q19
Net Interest Income 16,853 17,517 17,421 (1%) 3%
Non-Interest Income 4,631 4,726 5,268 11% 14%
Total Income 21,483 22,243 22,690 2% 6%
Non-Interest Expense 8,931 9,718 9,579 (1%) 7%
Provisions * 3,657 4,262 8,527 100% 133%
Operating Income 8,895 8,263 4,584 (45%) (48%)
Taxes 2,382 2,112 934 (56%) (61%)
Subsidiaries & Minority Interest 39 29 19 (33%) N.A.
Net Income 6,553 6,180 3,669 (41%) (44%)
Balance Sheet
Performing Loans (a) 750,052 763,091 778,548 2% 4%
Past Due Loans (b) 14,170 12,827 8,885 (31%) (37%)
Total Loans (a+b) 764,222 775,918 787,433 1% 3%
Total Loans Net (d) 746,152 757,986 769,358 2% 3%
Acquired Collection Rights ( e) 1,720 1,261 1,438 14% (16%)
Total Loans (d+e) 747,872 759,247 770,796 2% 3%
Total Assets 1,160,329 1,293,647 1,348,628 4% 16%
Total Deposits 738,028 791,870 821,721 4% 11%
Demand Deposits 394,308 451,842 479,142 6% 22%
Time Deposits 343,720 340,028 342,579 1% (0%)
Total Liabilities 1,046,845 1,179,984 1,226,044 4% 17%
Equity 113,484 113,663 122,583 8% 8%
31 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Quarterly Summary
Infrastructure 2Q19 1Q29 2Q20
Employees 29,250 29,796 24,337
Branches 1,158 1,178 1,180
ATM’s 8,569 9,090 9,060
POS’s 162,115 166,225 162,127
Financial Ratios - Bank 2Q19 1Q20 2Q20
Profitability:
NIM (1) 6.3% 6.3% 5.8%
NIM after Provisions (2) 4.9% 4.7% 3.0%
ROE (3) 22.8% 21.7% 12.4%
ROA (4) 2.2% 2.0% 1.1%
Operation:
Efficiency Ratio (5) 41.6% 43.7% 42.2%
Operating Efficiency Ratio (6) 3.1% 3.2% 2.9%
Average Liquidity Coverage Ratio for Banorte
and SOFOM - Basel III (7)122.2% 120.1% 0.0%
Asset Quality:
Past Due Loan Ratio 1.9% 1.7% 1.1%
Coverage Ratio 127.5% 139.8% 203.4%
Capitalization:
Net Capital/ Credit Risk Assets 24.8% 24.1% 25.2%
Total Capitalization Ratio 19.9% 19.0% 19.7%
Leverage
Basic Capital/ Adjusted Assets 11.0% 10.9% 11.0%
32 NIM Rev C / I NI ROETI L/D Dep Loan ICAPMkt AppUs
Corporate Responsibility and Sustainability
Global Initiative Report (GRI Standards)International standards on sustainability reporting and disclosure of economic, environmental and socialtopics.
UN Global CompactInternational initiative promoting 10 universally accepted Principles to promote Corporate Social Responsibility (CSR).
Carbon Disclosure Project (CDP)Organization that promotes awareness on climate change through a better quality and transparency of the information reported on the company's emissionsperformance.
IPC SustentableMexican index of 30 listed companies ,which are best positioned in relation to the pillars of Environment, Socialand Corporate Governance.
Empresa Socialmente Responsable (ESR) Recognition granted by the Mexican Center for Philanthropy (Cemefi) and AliaRSE, as a company committed with corporate social Responsibility.
Natural Capital DeclarationVoluntary financial sector initiative created at the Rio +20 Earth Summit, which recognizes the role of natural resources in the economy through its integration into financial products and services.
Equator PrinciplesStandard within the financial sector to determine, assessand manage the environmental and social risks of financed projects.
GEI2 Programme MexicoVoluntary reporting of greenhouse gas emissions
UNEP Finance InitiativeInitiative that aims to identify, promote and carry out the adoption of best environmental and sustainabilitypractices at all levels of operations of financialinstitutions.
Dow Jones Sustainability Index MILA In 2017 was included in the Dow Jones Sustainability Index MILA Pacific Alliance.
Asociación de Bancos de México (ABM) Participation in the Sustainability Committee and the Corporate Social Responsibility Committee, and signatories as the ABM Banking Sustainabilityprotocol.
STOXX ESG Leaders IndexIndex that represents the main global companies in terms ofenvironmental, social and governance criteria, based on ESG indicators provided by Sustainalytics.
Euronext Vigeo Emerging Markets 70 Recognizes the 70 companies from emerging countries with the most advanced practices in terms of sustainability.
FTSE4Good Emerging IndexIndex that evaluates actions in the themes of climate change, labor standards and risk management, among others.
Bloomberg Gender Equity IndexIndex that provides analysis of the commitment of 52 companies with the gender equity in the workplaceto investors and organizations.
Principles for Responsible Investment Initiative that promotes its signatories to integrate environmental, social and governmental (ESG)criteria into their investment and ownership decisions.