3
Yearly Recap GFNorte
Past Due Loan Ratio 1.5% 2.6%
1H09
Net Income
Capitalization Ratio
Book Value Per Share
1H08
3,735
Net Interest Margin
(22%)
15.7%
18.12
7.6%
19.30
4.4%*
2,923
15.6%
ROE 21.8% 15.2%
ROA 2.5% 1.0%*
Efficiency 53.9% 52.3%
Coverage Ratio 131% 102%
Liquidity Ratio 55.9% 63.1%
7%
Recurring Net Income 3,396 (14%) 2,923
* Includes repos reclassified as balance sheet assets.
MILLION PESOS
Income Statement
MILLION PESOS
Net Interest Income
Service Fees
Recovery
Non Interest Income
Total Income
Non Interest Expense
Net Operating Income
Income Tax
Net Income
Provisions
Subs & Minority Interest
FX & Trading
QoQ YoY1Q092Q08 2Q09
Non Operating Income, Net
6,199
1,465
138
2,070
8,269
(4,341)
3,928
425
(574)
1,611
(2,162)
(6)
1,611
242
Recurring Net Income
5,225
1,695
117
159
-
1,971
7,196
(3,903)
3,293
576
(751)
1,806
(1,255)
(57)
1,742
Other Income and Expense 226
1,454
164
157
147
1,922
7,760
(4,037)
3,723
193
(429)
1,312
(2,188)
14
5,838
1,312
12%
(14%)
40%
(1%)
100%
(2%)
8%
3%
13%
(66%)
(43%)
(27%)
74%
(125%)
(27%)
(6%)
(1%)
19%
(35%)
(35%)
(7%)
(6%)
(7%)
(5%)
(55%)
(25%)
(19%)
1%
(333%)
(25%) 4
5
ROE ROA
2.5%
1H08
21.8%
1H08
15.2%
1H09
1.0%*
1H09
Profitability
* Includes repos reclassified as balance sheet assets.
Cost to Income
BILLION PESOS
EFFICIENCY RATIO
Total Income
2Q08
7.2
2Q09
7.8
Non Interest Expense 3.9 4.0
54%
2Q08
53%
1Q09
8%
3%
YoYQoQ1Q09
8.3
4.3
(6%)
(7%)
52%
2Q09
6
Deposits
Demand
Time
Total
2Q09
124
83
265
Core Deposits 207
Money Market 59
BILLION PESOS
QoQChange
YoY
16%
29%
20%
21%
16%
3%
1%
4%
2%
11%
1Q09
120
82
255
203
53
2Q08
107
64
221
171
50
7
BILLION PESOS
Performing Loan Portfolio
2Q08 1Q09 2Q09 YoYChange
QoQ
2Q08 1Q09 2Q09
217235 235
Commercial 10%(3%)
Corporate 0%(2%)
Government 31%12%
Total 8%0%
Consumer 4%(1%)
86
43
32
235
74
89
44
29
235
74
79
43
24
217
71
8
Consumer Loan Portfolio
BILLION PESOS
2Q08 1Q09 2Q09
7174 74
Consumer
Car
Credit Card
Payroll / Personal
Mortgage
2Q08 1Q09 2Q09 YoYChange
QoQ
(2%)(2%)
(20%)(7%)
(4%)(1%)
4%(1%)
17%2%
7
13
6
74
47
8
14
6
74
46
8
16
7
71
40
9
Loans to Deposits Ratio
TOTAL LOANS /TOTAL DEPOSITS
103%
1Q08
99%
2Q08
97%
3Q08
10
93%
4Q08
92%
1Q09
88%
2Q09
Asset Quality
Past Due Loans
Loan Loss Reserves
RESERVECOVERAGE RATIO
PAST DUE LOANRATIO
Total Loan Portfolio
BILLION PESOS
2Q08 1Q09 2Q09
102%
131%
109%
2Q08 1Q09 2Q09
2.6%
1.5%
2.3%
2Q08 1Q09 2Q09
3.2
4.2
220
6.3
6.4
238
5.6
6.1
239
12
14
Past Due Loan Ratio by Product
Payroll
Car
Mortgage
Credit Cards
Commercial
Corporate
Government
14
2Q08
2.3%
1.9%
1.5%
6.7%
1Q09 2Q09
13.6%
2.9%
2.5%
1.5%
0%
0%
1.7%
2.6%
0%
0%
14.4%
3.0%
3.0%
1.9%
3.4%
0%
0.1%
15
Banorte
2.0%2.6%
Dec-08 May-09
BBVA - Bancomer
3.2%
4.2%
Dec-08 May-09
Banamex - Citi
4.1%3.7%
Dec-08 May-09
HSBC
6.2% 6.2%
Dec-08 May-09
Santander
3.1% 3.1%
Dec-08 May-09
Scotia
3.5% 3.6%
Dec-08 May-09
Industry PDL Ratios
Source: CNBV
17
Capitalization
Tier 1
Tier 2
TOTAL
% Tier 1
17
2Q08 1Q09 2Q09
10.7%
5.0%
15.7%
68%
9.7%
4.9%
14.6%
66%
10.7%
4.9%
15.6%
69%
18
Industry Capitalization Ratios
Banamex Scotia Bancomer HSBCBanorte Santander
Source: CNBV
17.8%
15.4% 15.1%14.2%
11.7%
15.3%
May-09
19
IFC’s Investment in Banorte
IFC is a member of the World Bank Group.
Promotes sustainable economic development in emerging markets.
Characteristics:
IFC will have an equity stake in Banco Mercantil del Norte.
Banorte’s Board of Directors has approved the investment.
Approval by IFC’s Board and the Mexican authorities is still pending.
Long term investment.
Benefits:
Increase Banorte’s Tier 1 ratio.
Banorte and IFC will collaborate in various expansion programs.
Leverage IFC’s expertise in social responsibility, corporate
practices and environmental protection.
20
+1
+2
=
Notches above Inv.
Grade
Baa1
BBB
BBB-
Rating
Fitch
Moody’s
Standard & Poor’s
Agency
Stable
Stable
Negative
Outlook Date
Dec-08
Feb-09
Mar-09
Credit Ratings
Recovery Bank
Net Income
MILLION PESOS
AUMBILLION PESOS
2Q092Q08
Banorte’s Assets
Acquired Assets
%
Investment Projects
Total
IPAB
22
1H08
318
1H09
219
38.7
19.2
32.0
28.9
(18%)
50%
2.6 3.2 22%
62.0 66.0 6%
1.4 1.5 6%
Long Term Savings
NET INCOME IN MILLION PESOS
AFORE INSURANCEANNUITIES
Total
23
2Q08
64
2Q09
61
6
2Q08
22
2Q09
0
2Q08(4)
2Q09
58
2Q08
43
2Q09
24
Afore IXE client portfolio acquisition.
Transfer of 312,489 clients.
Ps 5.4 billion in AUM, nearly 10% of Afore Banorte-Generali’s AUMs.
Afore Ahorra Ahora client portfolio acquisition.
Transfer of 367,660 clients.
Ps $1.14 billion in AUM, 1.86% of Afore Banorte-Generali’s AUMs.
Through these acquisitions, Banorte becomes the 4th largest player in
terms of accounts managed.
Afore – Acquisitions
Subsidiaries
BROKER DEALER LEASING AND FACTORING
NET INCOME IN MILLION PESOS
WAREHOUSING
25
78
2Q08
106
2Q09
7
2Q08
7
2Q09
143
2Q08
32
2Q09
26
Inter National Bank
Net Income
Loan Loss Reserves
MILLION DOLLARS IN US GAAP
Change2Q08 2Q09
Net Interest Income
Non Interest Income
Total Income
Non Interest Expense
Demand Deposits
Performing Loans
Past Due Loans
Time Deposits
6.0
2.2
(150%)
482%
16.3 (16%)
3.7 11%
20.0 (11%)
8.7 12%
707 3%
1,018 7%
13.5 321%
713 35%
(3.0)
12.8
13.6
4.1
17.8
9.8
730
1,086
56.9
964
27
FINANCIAL RATIOS(%)
Reserve Coverage
PDL Ratio
Change2Q08
96.6
1.3
2Q09
37.4
4.9
(59.2 pp)
3.6 pp
MIN 4.2 3.3 (0.9 pp)
ROE 18.7 (4.6) (23.3 pp)
ROA 1.4 (0.6) (2.0 pp)
Efficiency 43.7 55.2 11.4 pp
Capitalization Ratio 11.6 14.1 2.5 pp
Tier 1 Capital 8.2 7.8 (0.4 pp)
Inter National Bank
29
The most severe contraction in GDP since the great depression.
Second half of the year will be challenging.
Unemployment.
Consumption.
Interest rates at historically low levels.
Caution due to possible swine flu rebound.
Improve the bank’s fundamentals under this environment.
Conclusions
Capital.
Asset quality.
Collections and recoveries.
Cost of funding.
Cost containment.
Internal controls.
Contact Information
David SuarezInvestor Relations OfficerTel: (52 55) 52.68.16.80E-mail: [email protected] www.banorte.com/ri