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1 DB NIM Rev C / I NI Div ROE TI L D Dep Loan ICAP BAP Guid MktEco Hist App

XNOR

1Q20

GFNORTE GBOOY

Best Bank 2019

México


Source: Banorte

Duration of the quarantine and GDP forecasts

GDP in the year after a leap year% y/y, difference in basis points

Impact of COVID-19 on GDP and the unemployment rate% y/y, %

Impact to MSMEs: Percentage of vulnerable

businesses under the marginal support scenario%

Final date of the ‘pandemic’

Days under quarantine

Current government support Base case Extraordinary support

GDP Unemployment GDP Unemployment GDP Unemployment

Apr-30 38 -4.8 5.9 -3.5 5.2

May-31 69 -10.7 8.1 -7.8 7.2 -7.1 6.3

Jun-30 99 -18.7 12.5 -10.5 6.2

Jul-15 114 -23.5 14.0 -12.3 6.2

0

20

40

60

80

27-Apr 17-May 6-Jun 26-Jun 16-Jul

6.8

-0.4

2.3

-5.3

1.4 2.1

7.1

-0.2

2.6

-5.0

1.6 2.4

-25.5

-25.0

-24.2 -24.7 -24.3

-26.2 -27

-26

-25

-24

-23

-8

-4

0

4

8

1997 2001 2005 2009 2013 2017

NSA series (LHS)Calendar-adjusted series (LHS)Difference in bps (RHS)


Source: INEGI, Banorte

We are experiencing the worst recession in the last 40 years

GDP in Mexico during

economic contractions% y/y

GDP in 1983% y/y

GDP in 2009% y/y

GDP in 1995% y/y

GDP in 2020f% y/y

-7.8

-5.3

-0.4

-6.3

-3.7

-4.4

-10 -5 0

2020

2009

2001

1995

1986

1983

-4.6 -5.7 -5.3

-1.8

-20

-15

-10

-5

0

1Q83 2Q83 3Q83 4Q83

-1.5

-9.1-7.5 -6.9

-20

-15

-10

-5

0

1Q95 2Q95 3Q95 4Q95

-5.6-8.9

-5.0

-1.6

-20

-15

-10

-5

0

1Q09 2Q09 3Q09 4Q09

-2.9

-16.2

-9.7

-2.6

-20

-15

-10

-5

0

1Q20 2Q20 3Q20 4Q20


Source: Banorte with data from INEGI and Banxico

*Interest rate(1980-Sep 1982: CPP; 1982-…: Cetes; Exchange rate: 1980-Nov 1991: ‘para solventar obligaciones en moneda extranjera’; Nov 1991-…: Fix)

However, the great difference to those are inflation levels

Nominal governmental interest rate, inflation and annual exchange rate depreciation%

-50

0

50

100

150

200

250

300 Interest rate Inflation Annual exchange rate depreciation


Source: Banorte and Presentation from Beatriz Leycegui (SAI, April 15, 2020)

USD/MXN: 24.10 **Nominal GDP in 2019

‘Recovery plan’ to return back to ‘normal’ from COVID-19

Programs from Development BanksMX$ billion, US$ million, % of GDP

▪ Four-month advance to the senior citizen pension▪ Support for:

⎯ Fishermen⎯ Children with disabilities⎯ Benito Juárez Universities⎯ Savings for people without access to financial services⎯ Agriculture⎯ Upkeep for schools

▪ Programs for:⎯ Apprenticeships⎯ Internet for everyone

▪ Guarantee prices▪ Toluca – Mexico City Train▪ Construction of branches of El Banco del Bienestar▪ Recruitment of 31 thousand new elements for the Army, Navy

and National Guard▪ Rural concrete roads▪ New credits and refinancing from INFONAVIT▪ ‘Sowing Life’ program will extend to 200 thousand farmers▪ Expedited returns of VAT to taxpayers▪ No increase to taxes or adoption of counter-cyclical measures or

corporate bailouts to businesses or banks▪ Elimination of 10 deputy ministries▪ Reduction of 25% in wages of high-ranking workers (Deputy

Director and upwards) and end-of-year bonus elimination▪ Savings of 75% in general spending and supplies categories

Institution Measure MXN USD* % of GDP**

Total 61.1 2,535 0.25

BANOBRASLiquidity support for companies in the infrastructure sector

6.0 249 0.02

NAFIN / BANCOMEXT

Liquidity support for "first-floor" financial institutions

10.0 415 0.04

NAFIN / BANCOMEXT

Liquidity support for "second-floor" financial institutions

20.0 830 0.08

NAFIN / BANCOMEXT

Guarantees program for companies and businesspeople

6.3 261 0.03

SHFStabilization of syndicated loans provided to construction companies

8.8 365 0.04

SHF Additional financing for "second-floor" bridge loans 6.0 249 0.02

SHF Small loans for housing improvements 2.0 83 0.01

FNDAttention scheme for the restructuring of debtors' loans

TBD

FND Measures to support the Rural Economy TBDBanco del Bienestar

Clients' Program 2.0 83 0.01

Banco del Bienestar

Outreach Program TBD

Banco del Bienestar

Reactivation of credit demand TBD

FOCIRExtension of the period to divest affected companies

TBD

FOCIRSuspension of commission payments for the management of FICAS

TBD

FOCIR Emerging Program "COVID 2020 - FOCIR-SE" TBD


Source: Banxico, MoF, CNBV

Policy response from Banxico and financial authorities to provide liquidity…

Reference rate%

Measures announced by

Banxico and the MoF to

improve liquidity

Measures from the Banking

Commission and Banxico for

financial institutions

6.00

2

3

4

5

6

7

8

9

dic.-15 ene.-17 feb.-18 mar.-19 abr.-20

▪ Reduction of the Monetary Regulation

Deposit by $50 billion (US$3 billion)

▪ Adjustments to the interest rate on the

Ordinary Additional Liquidity Facility

▪ US dollar credit auctions (using the Swap

line with the Fed as a financing

mechanism)

▪ Collaboration with the MoF to

strengthen the Primary Dealers Program

• Implementation of government securities

swaps

• Amendment to the purchase option of

government securities for market makers

▪ Adjustments to the accounting criteria to facilitate the granting of support programs to clients

▪ Flexibility of the regulatory framework for capital and liquidity requirements

▪ Advice to banks to refrain from paying dividends and implementing share buyback programs

▪ Delay of the implementation of international regulations

▪ Extension of deadlines for traded

companies to present information to the Commission


Source: Banxico

…and strengthen credit channels

Additional measures announced by Banxico to promote liquidity and strengthen credit channelsMX$ billion, US$billion, % of GDP

# Measure MXN USD % of GDP

Total 750 30.7 3.1

1Increasing liquidity during trading hours to facilitate the optimal functioning of financial markets and payment systems

- - - - - -

2Extending the securities eligible for the Ordinary Additional Liquidity Facility (FLAO, for its acronym in Spanish), foreign exchange hedging program operations, and USD credit operations

- - - - - -

3Extending the counterparts eligible for the Ordinary Additional Liquidity Facility (FLAO, for its acronym in Spanish)

- - - - - -

4 Government securities term repurchase window 100 4.1 0.45 Temporary securities swap window 100 4.1 0.46 Corporate Securities Repurchase Facility (FRTC, for its acronym in Spanish) 100 4.1 0.4

7Provision of resources to banking institutions to channel credit to micro-, small-, and medium-size enterprises and individuals affected by the COVID-19 pandemic

250 10.2 1.0

8Collateralized financing facility for commercial banks with corporate loans, to finance micro-, small- and medium-size enterprises

100 4.1 0.4

9 Swaps of government securities 100 4.1 0.4

10Foreign exchange hedges settled by differences in US dollars with counterparts not domiciled in the country, to be traded during hours when Mexican markets are closed

- - - - - -


Source: Bloomberg, INEGI, Banxico, Banorte

MXN forecastsUSD/MXN

Inflation forecasts% yoy, bi-weekly frequency

Reference rate forecasts%

USD/MXN, inflation, and reference rate forecasts

25.01

22.63

22.00

23.47

22.85

19.68

21.00

18.5

19.5

20.5

21.5

22.5

23.5

24.5

25.5

26.5

27.5

Jan-19 Dec-19 Dec-20 Dec-21

2018:4.8

2020:3.22019:

2.8

-2

-1

0

1

2

3

4

5

6

7

8

9

Dec-18 Aug-19 Apr-20 Dec-20

Headline

Core

Non-core2019:7.25

2020: 4.75

2

3

4

5

6

7

8

9

Dec-15 Mar-17 Jun-18 Sep-19 Dec-20


Source: MoF

1. GDP: Real annual growth rate; Nominal exchange rate; Public deficit, public debt y and primary balance as a percentage of GDP. *Public Sector Borrowing Requirements (PSBR). **Historical Balance of

Public Sector Borrowing Requirements (HBPSBR)

Preliminary Fiscal Policy Criteria: Macroeconomic and fiscal variables in a very challenging backdrop

Fiscal revenues% of GDP

Macroeconomic framework and fiscal variables1

Selection

Public spending% of GDP

Public debt**% of GDP

Stabilization fund and deficit% of GDP

36 36 37.2 37.240 42.6

46.5 48.7 45.8 44.9 44.952.1 52.1 51.8 51.5 51.2

45.6 45.4 45.2 45.044.8

0

20

40

60

2009 2011 2013 2015 2017 2019 2021 2023

Histórico ActualPrevioPrevious

Historical

21

-0.4

20.6

19

20

21

22

Approvedbudget

revenues

Impact due tolower growth

Estimatedbudget

revenues

-23.1-1.6

-0.6 -25.3-27

-25

-23

-21

-19

-17

Approvedbudget

spending

Resourcesto combatCOVID-19

Adjustments Estimatedspending

-4.7

4.4

0.4

-5.0

-4.8

-4.6

-4.4

-4.2

-4.0

Estimateddeficit

without FEIP

FEIP Newestimated

deficit

2020

GDP -1.9%

(Previous: 2.0%)

USD/MXN: 22.90

(Previous: 20.00)

Crude oil price:

US$/bbl 24 (Previous: 49)

Public deficit*:

4.4% (Previous: 2.6%)

Public debt**: 52.1%

(Previous: 45.6%)

Primary balance -0.4%

(Previous: 0.7%)

2021

GDP 2.5%

(Previous: 2.3%)

USD/MXN: 21.40

(Previous: 20.10)

Crude oil price:

US$/bbl 30 (Previous: 52)

Public deficit*:

4.0% (Previous: 2.2%)

Public debt**: 52.1%

(Previous: 45.4%)

Primary balance -0.6%

(Previous: 1.0%)


Source: INEGI, Bloomberg

2020 GDP forecasts% yoy

Impact to MSMEs: Percentage of vulnerable

businesses under the marginal support scenario%

Unemployment rate%, sa

1Q20 2Q20 3Q20 4Q20 2020

GDP (aggregate supply) -2.9 -16.2 -9.7 -2.6 -7.8

Primary sector -0.5 -2.5 -2.4 -0.6 -1.4

Secondary sector -5.0 -21.9 -9.1 -3.2 -9.8

Tertiary sector -2.1 -14.2 -10.1 -2.8 -7.3

GDP (aggregate demand)

-2.9 -16.2 -9.7 -2.6 -7.8

Private consumption -1.3 -15.3 -8.9 -2.5 -7.0

Investment -13.3 -39.2 -17.9 -5.2 -18.9

Government spending 0.2 2.5 -4.1 -5.9 -1.8

Exports -7.1 -29.8 -6.2 3.0 -10.3

Imports -10.7 -34.7 -9.2 -2.5 -14.2

2020 – Strong decline, driven by the COVID-19 outbreak

6.0

3.7

6.1

7.28.0

3456789

Dec-07 Feb-10 Apr-12 Jun-14 Aug-16 Oct-18 Dec-20

HistóricoMedidas de apoyo extraordinariasEscenario baseMedidas actuales

Historical seriesExtraordinary support from the governmentBase caseCurrent measures

0

20

40

60

80

27-Apr 17-May 6-Jun 26-Jun 16-Jul


About Banorte


GFNORTE – a Leading and Profitable Financial Franchise in Mexico

One of the most public companies in Mexico

GFNorte is top 5 in trading at BMV, and has the highest Relative Weighting on S&P/BMV IPC Index,

rated OTCQX Best 50 Global.

float of almost 86%

and more than 4,000 investors, including large global institutional funds.

Investment grade ratings by S&P, Fitch, Moody's and HR Ratings.

1 2 3

Sound Fundamentals

Increasing profitability, solid asset quality, high

liquidity and strong capitalization ratios.

Adequate business mix

Strong retail, wholesale and premium banking

platforms, as well as leading insurance and

pension fund management units, serving more

than 21 million clients.

Solid corporate governance

Independent Board Members represent

71% of total board composition and best

practices in minority shareholder right

protection.


From Regional Bank to National Financial Group

20 | 20

Establishment

1899 1982-1992 1995 2000 2005 2010 2015

Privatization

INB IXE

Afin Afore Bancomer

Banorte Generali 50%

BancentroBanpaís

Bancrecer

Afore XXIIMSS 50%

Banorte-General i100%

…

Inorganic Growth

Regional Bank

Business Diversification

2020

Client

Segmentation

IT : central DB,

multichannel

Profitability

Nationalization

G.F. Interacciones


20/20

Strategy 20 | 20 Perfect Vision

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 ex-Afore clients

9 million Afore clients

▪ Structured Info & Learning

(Central DB & Watson)

▪ Behavior understanding

Analitics Cost

Revenues

Digital Bank


Diversified Business Mix

* Includes: Almacenadora Banorte; Ixe Servicios; Fundación Banorte A.B.P.

Casa de Bolsa Banorte

Banco Mercantil del Norte

Sólida

Pensiones Banorte

Seguros Banorte

Banorte Futuro

Afore XXI Banorte

Operadora de Fondos

Banorte

(Fondos de Inversión)

Other Subsidiaries*

Arrendadora y Factoraje

Banorte

Banorte Ahorro y Previsión

99.7167%98.2619% 99.9999% 99.9999% 99.9999% 99.9999%

50.0%

97.6711% 99.9999%

98.22%

Banorte Financial Services

(Uniteller)100.0%

2.33%

100%


Business Mix - Diversified Net Income and Balance in Profitability

1) Without Goodwill: 1q20 =35.4%

Net Income Mix

CompanyNet Income

1Q20

ROE

1Q20

Bank 6,072 21.7%

Broker Dealer 313 26.0%

Long Term Savings 2,327

Retirement Savings (Afore) 325 10.9%

Insurance 1,703 90.0%

Annuities 284 22.7%

Other Finance Companies

Leasing & Factoring 203 13.5%

Warehousing 10 15.6%

Sólida (145) (19.9%)

Total 9,118 18.8%

1)

1Q20

$35.3 b


NIM

Net Interest Margin Moving in the Right Direction

NIM

(Post-Provision)

3.3%3.4% 3.4% 3.5% 3.5%

3.7%

4.3% 4.4%4.5% 4.7% 4.6%

4.8%

4.7%

4.3%

3.0%

3.5%

4.0%

4.5%

5.0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

4.1% 4.1%

4.4%

4.7%4.5%

4.9%

5.5% 5.6% 5.6% 5.7%

5.7%

5.9%5.9%

5.6%

4.0%

4.5%

5.0%

5.5%

6.0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

NIM NIM ex Insurance & Annuities


Improving Efficiency

Cost to Income56.0% 54.0%

52.0%

48.5% 47.9%

44.9%42.8%

40.0% 39.7% 39.4% 38.5%40.2% 40.6%

38.9%

35%

40%

45%

50%

55%

2011 2012 2013 2014 2015 2016 2017 2018* 2019* 1Q19* 2Q19 3Q19 4Q19 1Q20

+13% +5%+10%

+13%

+5% +4% +4% +7%+11%

+19%*

Reported

37.0%

* Recurring

*Recurring

+8%

+9%*

Reported

39.0% 39.1%


8,748 8,728 8,858

9,010 9,118

9,932

8,000

8,500

9,000

9,500

10,000

10,500

1Q19* 2Q19 3Q19 4Q19 1Q20

Strong Net Income

Net Income

8,517

10,888

13,50815,228

17,108 19,308

23,908

30,311

35,34531,958

36,528

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

27,500

30,000

32,500

35,000

37,500

2011 2012 2013 2014 2015 2016 2017 2018* 2019*

Million Pesos

CAGR

2011-2019 +20%

1.2%

+4%

YoY*

+17%

YoY* Recurring

Reported +14% YoY

* Recurring

Reported


1.10%

1.30%1.40% 1.46% 1.47%

1.60%

1.86%

2.07%2.22% 2.18% 2.20% 2.24% 2.28% 2.21%

2.18%2.30%

2.47%

1.0%

1.5%

2.0%

2.5%

2011 2012 2013 2014 2015 2016 2017 2018* 2019* 1Q19* 2Q19 3Q19 4Q19 1Q20

ROA

Constant Positive Growth in Profitability

ROE

14.1% 14.3% 14.2%13.2% 13.3%

14.1%

17.0% 19.3% 19.6%

19.9% 19.5% 19.6%19.0% 18.8%

20.3% 20.1%

22.4%

12%

15%

18%

21%

24%

2011 2012 2013 2014 2015 2016 2017 2018* 2019* 1Q19* 2Q19 3Q19 4Q19 1Q20

* Recurring

* Recurring

Reported:

Reported:


Digital Transformation


3.50

3.904.12 4.21 4.28

1Q19 2Q19 3Q19 4Q19 1Q20

Digital Transformation Gaining Share

41.4

80.5

232.1

0

50

100

150

200

250

1Q2017

3Q 1Q2018

3Q 1Q2019

3Q 1Q2020

Transactions Growth

+113%

24%

28%22%

2%

1%

19%

4%

Transactions (Tx) Customers Using Digital (millions)

WEB

MobileATM

Call Center

Correspondents <

POS

Branches

*

Time Deposits

Mutual Funds

Credit Card

Insurance

Digital Deposit Account

Payroll loans

Mobile

as a

Point of Sale


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


Adapting the Business & Infrastructure to the New Payments Market

Continuous growth on POS’s transactions

with emphasis on e-commerce

50.0

100.0

150.0

1Q2017

3Q 1Q2018

3Q 1Q2019

3Q 1Q2020

POS’s TransactionsMillions

+27%

The best DIGITAL PLATFORM

for aggregators

CoDi – Test Pilot and further

development underway


Loans & Deposits


Healthy Funding & Loan Portfolio Structure

$818 bn

1Q20

$780 bn

Commercial

Consumer

Mortgage

Government

Corporate

US 34.8 bn

Demand

Money Market

Time

Interbank Loans

US 33.2 bn

2018

DemandTime

Money Market

Interbank

Loans

Consumer

Commercial

Mortgage

Corporate

Government

Funding

Loan Portfolio

$803 bn

$777 bn


Demand66%

Time34%

116 124 129 136158 168

194223 229 234

190211

255

300

351384 397 414

438 454

306336

384

436

509551

590637

667 688

100

200

300

400

500

600

700

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

Time Demand Core Deposits

1Q19 1Q20

Demand 394 454

Time 229 234

TOTAL 623 688

Loyal Deposits Base

Demand62%

Time38%

MIX

2013 1Q20

Billion Pesos CAGR:

+11%

YoY

+11%

15%

2%

11%

Deposits

YoY

15%

YoY

+2%

+12%

+10%


Continued Growth in Performing Loan Book, Special Focus on Consumer

US 33.2 bn

Billion Pesos 1Q19 4Q19 1Q20 QoQ YoY

Mortgage 159 170 173 2% 9%

Car Loans 25 27 27 2% 10%

Credit Cards 37 40 39 (3%) 6%

Payroll 53 51 52 1% (2%)

Consumer 273 288 291 1% 7%

Commercial 173 173 182 6% 5%

Corporate 135 128 145 13% 8%

Government 181 174 162 (7%) (11%)

TOTAL 762 763 780 2% 2%

350 401

425 472

518 567

616

777 763

780

300

400

500

600

700

800

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

Total Loan Portfolio

99118

140158

176203

241269

288 291

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

CAGR:

+14%

US 12.4 bn

CAGR:

+10%

Consumer Portfolio


1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Credit Cards 6.1% 6.3% 6.0% 5.5% 5.9% 5.9% 6.0% 5.4% 5.8%

Payroll 2.9% 3.3% 4.1% 3.7% 3.0% 3.8% 3.4% 3.3% 2.7%

Car Loans 0.9% 1.1% 1.1% 1.1% 0.9% 1.0% 1.0% 1.0% 0.9%

Mortgage 0.9% 0.9% 1.0% 0.9% 1.0% 1.0% 1.1% 1.1% 1.2%

Commercial 2.5% 2.5% 2.2% 1.9% 2.1% 2.4% 2.5% 2.4% 2.3%

SME 5.6% 5.5% 6.0% 5.5% 5.9% 6.4% 6.5% 6.6% 7.0%

Commercial ex-SME 1.4% 1.5% 1.2% 0.9% 1.1% 1.3% 1.6% 1.3% 1.2%

Corporate 3.2% 3.0% 2.9% 2.9% 2.9% 3.0% 2.8% 1.8% 1.8%

Government 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total GFNorte 1.9% 2.0% 1.8% 1.7% 1.7% 1.9% 1.9% 1.7% 1.7%

1.9%2.1%

3.1%2.9%

2.2%

1.8%2.0%

1.7% 1.7% 1.7%

1.0%

2.0%

3.0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

Sound Asset Quality

Past Due Loan Ratio


2.2%2.3%

2.0% 1.9% 1.9%

2.2%2.0%

2.2%1.7% 1.6%

2.2%

2.5%

2.1%

2.4%2.5%

1.0%

1.5%

2.0%

2.5%

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

Actual

Prev. Criteria

143%138%

105% 107%

116%

139%

129%

142%138% 136%

128% 127%

138% 140%

90%

110%

130%

150%

2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 2Q19 3Q19 4Q19 1Q20

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)


Strong Capital Position

7.90%

9.40%

11.40%

Capital Adequacy Ratio

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

13.8% 13.1% 13.3% 12.7% 12.2%

5.7%

1.1%

15.1% 15.3%14.6%

15.3%

17.2% 17.2%18.1%

20.0% 20.3%

18.6% 19.0%

2013 2014 2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20

*RWA= Risk Weighted Assets annual growth

RWA

Basel III

+17% +11% +8% +16% (2%) +19% +20% +19% +5% +7% +9%

CET1

Minimum

Regulatory

Ratios

Total

Tier 1

17.9%

Tier 2

9.70%

7.70%

6.20%

Temporary

waiver


1Q20 YoY 1Q20 YoYConsidering Banorte Futuro

Insurance

Net Income 1,696 6% 2,029 1%

Equity 8,423 (7%) 24,746 (1%)

Assets 43,752 (4%) 59,723 (2%)

Premiums 10,364 (18%) 10,364 (18%)

ROE 90.0% 12.7 pp 34.8% 0.8 pp

AFORE

Net Income 663 (20%)

Equity 23,040 0%

Assets 25,301 2%

AUM 865,906 9%

ROE 10.9% (3.0) pp

ROTE 35.4%

Annuities

Net Income 284 4%

Equity 5,150 25%

Assets 141,415 12%

Premiums 3,489 27%

ROE 22.7% (4.7) pp

BAP: Long Term Savings Business

Million Pesos


GFNorte Guidance 2020

Guidance

2020

Loan Growth 6% – 8%

NIM Expansion 5 – 15bp

Expense Growth 5% – 5.5%

Efficiency 38.0 – 39.0%

Cost of Risk 1.9% – 2.2%

Tax Rate 26% – 27%

Net Income 37.5 – 38.8

ROE 19.6% – 20.1%

Macro Estimates 2020

GDP 0.8%

Inflation 3.5%

Reference Rate 6.50%


Loans

Feb 2020

Deposits

2°

Deposit & Loan Market Share

Source: CNBV.

3°


Consumer C. Cards Mortgage Commercial Government Deposits

Feb-19 Feb-20 Feb-19 Feb-20 Feb-19 Feb-20 Feb-19 Feb-20 Feb-19 Feb-20 Feb-19 Feb-20

Banorte 12.2% 12.1% 9.7% 9.9% 19.5% 19.2% 10.8% 10.3% 34.3% 29.9% 14.7% 13.6%

BBVA 28.0% 29.4% 27.5% 27.4% 25.9% 26.0% 18.9% 19.6% 24.1% 26.6% 21.6% 22.1%

CitiBanamex 15.2% 13.1% 27.2% 26.7% 10.1% 9.4% 12.6% 12.1% 5.9% 5.8% 14.7% 14.5%

Santander 8.7% 8.8% 14.1% 14.2% 16.9% 16.5% 13.3% 13.2% 12.0% 12.7% 13.6% 13.0%

HSBC 6.3% 6.6% 5.6% 5.7% 6.1% 7.2% 8.7% 7.9% 6.3% 5.9% 8.1% 8.2%

ScotiaBank 5.2% 5.2% 2.7% 2.8% 15.0% 15.2% 7.1% 7.5% 1.7% 2.4% 6.3% 6.5%

Inbursa 4.8% 4.1% 4.1% 4.1% 0.7% 0.6% 0.0% 0.0% 4.1% 5.8% 3.2% 3.1%

Others 19.6% 20.6% 9.0% 9.2% 5.9% 6.0% 28.7% 29.3% 11.6% 11.0% 17.8% 19.0%

Market Position 3° 4° 2° 4° 1° 3°

Market Share by Segment

Source: CNBV.


Afore Market Share (Retirement Savings)

Source: CONSAR

AUM Market Share

Mar-19 Mar-20 Mar-19 Mar-20

XXI Banorte 796 866 22.5% 22.1%

CitiBanamex 641 684 18.1% 17.5%

Profuturo GNP 522 597 14.7% 15.2%

SURA 525 565 14.8% 14.4%

PensionISSSTE 225 257 6.3% 6.6%

Coppel 217 257 6.1% 6.6%

Principal (Metlife, May18) 235 254 6.6% 6.5%

Invercap 175 185 4.9% 4.7%

Other 207 250 5.9% 6.4%

1°

Billion Pesos

Assets Under Management


Insurance Market Share

Dec-18 Dec-18

Premiums Market Share

Dec-19 Dec-19

Million Pesos

9°

Source: AMIS.

Dec-18 Dec-18

Net Income Market Share

Dec-19 Dec-19

7°

G.N.P.

Metlife México

BBVA Bancomer

Banamex

AXA Seguros

Qualitas

Monterrey New York Life

Mapfre Crédito

Seguros Banorte

Inbursa

Other

TOTAL

60,221 67,995 12.2% 12.4% 3,234 4,435 8.1% 9.0%

61,962 55,186 12.5% 10.0% 9,063 6,695 22.7% 13.6%

40,520 47,363 8.2% 8.6% 4,831 5,845 12.1% 11.9%

24,358 39,962 4.9% 7.3% 1,493 3,999 3.7% 8.1%

37,212 39,940 7.5% 7.3% 1,928 1,501 4.8% 3.1%

32,821 34,249 6.6% 6.2% 2,418 5,081 6.0% 10.3%

29,071 30,259 5.9% 5.5% 3,270 3,147 8.2% 6.4%

15,798 28,143 3.2% 5.1% 115 286 0.3% 0.6%

25,616 26,551 5.2% 4.8% 3,396 3,890 8.5% 7.9%

19,885 19,335 4.0% 3.5% 3,146 3,957 7.9% 8.1%

147,191 161,449 29.8% 29.3% 7,086 10,270 17.7% 20.9%

494,653 550,433 100.0% 100.0% 39,980 49,106 100.0% 100.0%


Annuities Market Share

1°

1°

*\ Legal document for any pensioners entitled to receive a pension.

Source: AMIS to March 2020.

Mar-19 Mar-19

Resolutions * Market Share

Mar-20 Mar-20

Annuitants

Million Pesos

Mar-19 Mar-19Mar-20 Mar-20

Market Share

Banorte

Profuturo GNP

Bancomer

Total Industry

2,698 3,481 43.0% 47.6%

2,207 1,927 35.2% 26.4%

1,355 1,901 21.6% 26.0%

6,267 7,310 100.0% 100.0%

Banorte

Profuturo GNP

Bancomer

Total Industry

2,587 2,826 40.4% 45.1%

2,168 1,411 33.8% 22.5%

1,636 2,024 25.5% 32.3%

6,405 6,261 100.0% 100.0%


GFNorte in the World

(1) Level 1

Ticket Indexes

GFNORTEO (BMV)

IPC (BMV)

Sustainable IPC (BMV)

MSCI Mexico

STOXX

GBOOY (OTCQX)

DJSI MILA

Climate Disclosure Leadership

OTCQX30

Euronext Vigeo EM70

XNOR (Latibex)FTSE Latibex All Shares

FTSE Latibex TOP

1Q20

Total Shares Outstanding: 2,883.5 m

Float: ~ 86%

Total ADRs(1) Outstanding: 4.79 m

302,763

187,425

150,000

200,000

250,000

300,000

350,000

400,000

4Q

12

4Q

13

4Q

14

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

Market CapitalizationMillion pesos

US 8.0 bn

Oil and

COVID-19

crisis


Analyst Opinion & Investment Grade by All Major Rating Agencies

Net Income 2020 $36,440

Target Price $112.8

Maximum $136.5

Number of Analysts 21

# BUY 15

# HOLD 5

# SELL 1

Analysts‘ Estimates

(as of Apr 23, 2020)

Ratings Agencies

RatingAgency Outlook Date

BBB-

BBB

Fitch

Standard & Poor’s Negative

Negative

Mar-20

Abr-20

Baa3Moody’s Negative Abr-20


Appendix


Quarterly Summary

Income Statement Highlights - GFNorte1Q19 4Q19 1Q20

Change

(Million Pesos) 4Q19 1Q19

Interest Income 38,075 37,667 37,008 (2%) (3%)

Interest Expense 18,406 15,174 14,657 (3%) (20%)

Technical Results (Insurance & Annuities) 1,116 (2,305) (383) 83% (134%)

Net Interest Income 20,784 20,188 21,968 9% 6%

Net Service Fees 2,967 4,230 3,455 (18%) 16%

Trading 1,152 872 1,166 34% 1%

Other Operating Income (Expenses) 2,143 746 327 (56%) (85%)

Non Interest Income 6,262 5,847 4,949 (15%) (21%)

Total Income 27,046 26,035 26,916 3% (0%)

Non Interest Expense 10,004 10,572 10,466 (1%) 5%

Provisions 3,736 3,765 4,344 15% 16%

Operating Income 13,306 11,698 12,106 3% (9%)

Taxes 3,650 2,951 3,228 9% (12%)

Subsidiaries' Net Income 411 389 353 (9%) (14%)

Minority Interest (135) (125) (113) (10%) 16%

Subsidiaries & Minority Interest 275 263 240 (9%) (13%)

Net Income 9,932 9,010 9,118 1% (8%)

Recurring Net Income 8,748 9,010 9,118 1% 4%


Quarterly Summary

Balance Sheet Highlights - GFNorte1Q19 4Q19 1Q20

Change

(Million Pesos) 4Q19 1Q19

Asset Under Management 2,697,401 2,771,604 2,708,692 (2%) 0%

Performing Loans (a) 762,105 762,642 779,818 2% 2%

Past Due Loans (b) 13,488 12,806 13,212 3% (2%)

Total Loans (a+b) 775,594 775,448 793,030 2% 2%

Total Loans Net (d) 757,265 757,809 774,525 2% 2%

Acquired Collection Rights ( e) 2,217 1,601 1,500 (6%) (32%)

Total Credit Portfolio (d+e) 759,482 759,410 776,025 2% 2%

Total Assets 1,594,607 1,580,010 1,729,280 9% 8%

Total Deposits 734,956 724,490 772,993 7% 5%

Total Liabilities 1,409,497 1,384,012 1,531,790 11% 9%

Equity 185,110 195,998 197,490 1% 7%

Total Loans ex-Government 580,635 588,654 618,269 5% 6%

Financial Ratios GFNorte 1Q19 4Q19 1Q20

NIM (1) 5.7% 5.7% 5.9%

ROE (2) 22.4% 19.0% 18.8%

ROA (3) 2.5% 2.28% 2.21%

Efficiency Ratio (4) 37.0% 40.6% 38.9%

Operating Efficiency Ratio (5) 2.5% 2.7% 2.5%

CCL Banorte and SOFOM - Basel III (6) 116.6% 133.5% 120.1%

Asset Quality:

Past Due Loan Ratio 1.7% 1.7% 1.7%

Coverage Ratio 135.9% 137.7% 140.1%

Cost of Risk (7) 1.91% 1.98% 2.22%

Market References

Banxico Reference Rate 8.25% 7.25% 6.50%

TIIE 28 days (Average) 8.56% 7.86% 7.36%

Exchange Rate Peso/Dolar 19.38 18.86 23.48

Tax Rate 26.6% 24.4% 25.9%


INFRASTRUCTURE 1Q19 4Q19 1Q20

Employees* 29,425 30,162 29,796

Branches 1,149 1,182 1,178

ATM’s 8,453 8,919 9,090

POS’s 158,533 166,505 166,225

*Preliminar

Quarterly Summary

Share Data 1Q19 4Q19 1Q20Change

4Q19 1Q19

Earnings per share (Pesos) 3.444 3.125 3.162 1% (8%)

Earnings per share Basic (Pesos) 3.469 3.138 3.180 1% (8%)

Dividend per Share for the period (Pesos) 0.00 0.00 0.00 NA NA

Payout for the period 0.0% 0.0% 0.0% NA NA

Book Value per Share (Pesos) 63.39 67.18 67.70 1% 7%

Issued Shares (Million) 2,883.5 2,883.5 2,883.5 0% 0%

Stock Price (Pesos) 105.54 105.00 65.00 (38%) (38%)

P/BV (Times) 1.66 1.56 0.96 (39%) (42%)

Market Capitalization (Million Dollars) 15,704 16,050 7,981 (50%) (49%)

Market Capitalization (Million Pesos) 304,320 302,763 187,425 (38%) (38%)

Tipo de Cambio al cierre cada trimestre19.37790 18.86420 23.48470 24% 21%


Healthy Liquidity

Loans / Deposits

(%)

Liquidity Coverage Ratio

CCL (%)

104%

105%

101%

90%

92%

94%

96%

98%

100%

102%

104%

106%

108%

110%

1Q2015

3Q 1Q2016

3Q 1Q2017

3Q 1Q2018

3Q 1Q2019

3Q 1Q2020

117%

133%

120%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

1Q2015

3Q 1Q2016

3Q 1Q2017

3Q 1Q2018

3Q 1Q2019

3Q 1Q2020


Improving Corporate Governance

GFNorte Mexbol Index (Average)*

Float 86% 45%

Listed overseas Yes 46% of the companies

Chairman of the Board-CEO separation Yes In 73% of the companies

Share of independent board members, % 71.0 49.7

Share of total assets threshold to require shareholders

approval in M&A operations, %Current Before Aug'16 19.7

Non-related 20 20 - -

Related 5 20 - -

Board members nominations committee

Existence Yes 13.5% of the companies

Final approval of nominated board members Shareholders Shareholders

Share of independent board members in this committee, %Current Before Aug'16

18.857.1 25

All members of the BOD are elected every year by the Shareholders’ Assembly.

Main Committees are chaired by independent members.

- Risk Policies

- Nominations

- Audit & Corporate Practices

Assembly quorum has always been higher than 60% and consensus has always been reached on proposals.


Corporate Responsibility and Sustainability

At GFNorte, sustainability means maximizing growth and profitability while seeking to achieve balance among the economic, social and

environmental aspects of our business. This is achieved through a four-pillar framework:

Focus on Social and Environmental Risk Management, Environmental Efficiency, Human Rights and Gender Equity and Corporate Volunteering,

Responsible Investment, Financial Inclusion and Education

Sustainable Finance Transparency

People and Community Environmental Footprint

✓ PRI (Principles of Responsible Investment) – We seek to promote a sustainable risk management considering the risk of the environmental,

social and governance issues integrated in our investment portfolios, safeguarding the patrimony of our clients.

✓ Reporting – We incorporated in our Annual Integrated Report the framework of International Integrated Reporting Council (IIRC), Global

Reporting Initiative (GRI), Global Compact and we align our performance to the UN SDGoal's platform.

✓ Social & Environmental Risks Analysis – Under the Equator Principles’ framework, Banorte analyzes the environmental and social risks and

impacts of loan portfolios for Corporate and Business Banking, Government Banking and Structured Finance. Banorte goes beyond the Equator

Principles’ scope by including loans of lower amounts (loans greater than $ 1 million US dollars and analyzes their risks the Performance

Standards of the International Finance Corporation.

✓ Sustainability Management System – Its objective is to gather, validate, monitor and analyze data from the subsidiaries of the Group through

key environmental, social and economic indicators.


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.


Contact Information and Reports

If you have any information request or comments, please contact Banorte's Investor Relations Department at:

Tel: (52) 55 1670 2276

E-mail: [email protected]

We recently published the 1Q20 report.

During 2020 we have released:

1. Annual Report to the Banking and Securities Commission (CNBV)

2. Annual Report to the Stock Exchange (Informe Anual Circular Única de Emisoras)

3. Audited Financial Statements for 2019

4. Annual Financial and CSR Report for 2019 under the GRI methodology (PDF & Interactive)

You can access our quarterly and annual reports (in Spanish and English) and other informative materials at :

investors.banorte.com

Disclaimer

Grupo Financiero Banorte does not warrant that the document is accurate, complete, reliable, fit for any particular purpose and does not accept liability for any act (or

decision not to act) resulting from the use of this document and related data. The information contained in this document is illustrative and informative so it should not

be considered as an advice and/or recommendation of any kind. Grupo Financiero Banorte is not part of any party or political trend.

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