GFNORTE

October 23, 2015

Conference Call: 3Q15 Results

2 2

Summary

Million pesos 3Q15 QoQ YoY

Net Income 4,284 7% 6%

NII 11,840 2% 9%

Service Fees 2,488 0% 22%

Loans 500,208 3% 12%

Deposits 474,892 3% 16%

ROE 13.2% 0.56pp (0.64)pp

Acceleration on EPS

Net Income growth of 7% QoQ.

Increasing EPS to $1.54 pesos and constant

positive growth.

ROE at 13.2%, 56pp above 2Q15 .

Adequate growth in recurring revenues on the

back of loan & deposit growth and fee income.

1.54

1.10

1.20

1.30

1.40

1.50

1.60

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

2013 2014 2015

EPS

EPS Growth (QoQ)

20%*

11%*

* Percent of income from Trading and Other Income

4.3%

2.6%

-8.2%

2.7%

0.2%

3.1%

8.1%

-5.5%

1.6%

3.2%

7.0%

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

2013 2014 2015

3 3

Revenue Mix

4,160

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

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

2013 2014 2015

Recurring Operating Profit

Strong business focus on growing

Recurring Operating Profit.

Recurring Revenues: (NII + net fees excluding portfolio recoveries - Operating Expenses – Provisions)

4 4

Million pesos 3Q15 QoQ YoY

NII Loans 9,497 4% 8%

NII Repos 1,018 3% 16%

NII Valorization Adjustments* 84 34% 57%

NII Insurance & Pensions 1,241 -8% 8%

NII Before LLP 11,840 2% 9%

Net Interest Income

NII from loan book aligned with loan

growth.

NII from repo ops positive as interest

rate gap closed.

Quarterly decline in Insurance &

Annuities NII, explained by 170m

charge in Insurance claims, related to

one time adjustment to IBNR reserve

(which is accounted in Claims as per

regulator).

* Includes valorization of Financial Assets & Liabilities for FX or inflation, as appropriate.

9,497

6,000

7,000

8,000

9,000

10,000

11,000

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

2013 2014 2015

NII Loans

5 5

Non Interest Income

Continued strong core banking

revenue growth

Service Fees are flat in the quarter on

lower wholesale related client fees.

But of these, core banking fees

continue to post a strong 5% quarterly

growth rate.

Quarterly Trading Income below 800m

guidance due to high volatility in

August, but all components of the

result are positive.

3Q15 QoQ YoY

Service Fees 2,488 0% 22%

Trading Income 659 -19% -52%

Other Income 828 54% -25%

Total 3,976 4% -12%

3Q15 QoQ YoY

Fund Transfers 234 20% 45%

Account Management Fees 529 1% 40%

Electronic Banking Services 1,287 4% 14%

Total 2,050 5% 23%

Core Banking Fees

Non Interest Income

3Q15 QoQ YoY

FX Gains 354 201% 57%

Trading Gains 173 -42% -79%

Mark to Market Gains 132 -67% -58%

Total 659 -19% -52%

Trading Income

Million pesos

6 6

Expenses and Efficiency

Working Efficiency Program

Efficiency ratio on a downward trend

with excellent behavior on both

components:

Higher income

Lower expenses

We expect lower expenses for the 4th

quarter and maintain 47% target on

efficiency for full year.

Income - Expenses

46.3%

42%

44%

46%

48%

50%

52%

54%

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

2014 2015

Efficiency Ratio

0

5,000

10,000

15,000

1Q

04

1Q

05

1Q

06

1Q

07

1Q

08

1Q

09

1Q

10

1Q

11

1Q

12

1Q

13

1Q

14

1Q

15

Income

Expenses

8,590

7,670 7,575

7,328

4Q14 1Q15 2Q15 3Q15

Expenses

-1.2% -3.3%

7 7

Consumer Loan Portfolio

Banorte's credit card book expands

much faster than the industry.

And higher quarterly growth rates for

all the consumer books.

Loan expansion with excellent mix

*

14.5%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

J F M A M J J A S O N D J F M A M J J A

2014 2015

Credit Card Balance Growth (YoY)

Banorte

Industry

5.2%

4.4% 4.2%

3.3%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

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

2014 2015

Consumer Loan Balances Growth (QoQ)

Credit CardAutoPayrollMortgage

8 8

Deposits

Good rate of growth and mix for deposits

Demand 17% YoY

Time 13% YoY

Deposits Growing Faster

65%

35%

68%

32%

3Q13 3Q15

Demand

15.6%

8%

10%

12%

14%

16%

18%

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

2013 2014 2015

Deposits Growth (YoY)

Time

9 9

Afore

9M15 net income increased 7% YoY

despite higher affiliation costs in the

quarter.

AUM growth of 4% YoY

Fee %

Consolidating our Afore business

Dec'13 Dec'14 Dec'15

XXI Banorte 1.10 1.07 1.04

Industry 1.28 1.19 1.11

Million pesos 3Q15 QoQ YoY

Net Income 575 -18% 16%

Equity 23,659 2% -1%

Assets 24,932 3% -1%

AUM 615,180 -1% 4%

ROE* 9.8% (2.6)pp 1.5pp

* Excluding goodwil 40.8%

1,762 1,753

1,877

9M13 9M14 9M15

Net Income

7%

10 10

Insurance & Annuities

Seguros Banorte (Insurance)

9M15 net income increased 35% &

28% YoY on Insurance & Annuities.

Books.

ROE slightly lower on Insurance YoY

but stronger on Annuities.

Adequate operating trends

Million pesos 3Q15 QoQ YoY

Net Income 490 -19% 25%

Equity 6,278 8% 38%

Assets 25,597 -4% 17%

Written Premiums 3,476 -6% 26%

ROE 32.6% (9.7)pp (1.2)pp

Pensiones Banorte (Annuities)

Million pesos 3Q15 QoQ YoY

Net Income 97 34% 25%

Equity 1,534 7% 6%

Assets 66,977 3% 13%

Written Premiums 1,654 -16% -26%

ROE 26.2% 6.2pp 4.2pp

387

1,248

1,679

9M13 9M14 9M15

Insurance

+334%

+35%

57

202

258

9M13 9M14 9M15

Annuities

+349%

+28%

Net Income

11 11

Asset Quality

Lowest NPL ratio in two years.

New NPL formation much better than

the prior year.

Stronger Asset Quality trends than the

Industry.

Trends moving in the right direction

-504

861 940

-658 -819

522

-278

1T 2T 3T 4T 1T 2T 3T

2014 2015

NPL Formation

2.98% 3.12%

3.25%

2.94%

2.73% 2.80%

2.67%

2.0%

2.5%

3.0%

3.5%

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

2014 2015

NPL Ratio

Industry

Banorte

Industry 3Q15 as of Aug'15

12 12

Asset Quality Trends

Improvements in all books except

payroll and SME.

Corporate NPL is 0.1% excluding

homebuilders.

Government loans clean.

2Q14 3Q14 4Q14 1Q15 2Q15

Credit Cards 5.9% 5.5% 5.5% 5.9% 5.5%

Payroll 2.2% 2.3% 2.2% 2.5% 2.6%

Car Loans 1.9% 2.0% 1.5% 1.9% 1.7%

Mortgages 1.4% 1.4% 1.3% 1.2% 1.1%

Commercial 5.0% 4.4% 3.8% 3.9% 3.6%

SMEs 9.8% 10.0% 8.8% 9.5% 9.5%

Commercial

ex-SMEs 3.1% 2.2% 2.1% 2.1% 1.8%

Corporate 6.8% 6.3% 6.4% 6.5% 6.4%

Total 3.3% 2.9% 2.7% 2.8% 2.7%

NPL Ratio

Stable Asset Quality

GFNORTE

October 23, 2015

Conference Call: 3Q15 Results