Presentacin de PowerPoint

1
GFNortes 2Q08 Results
Conference Call July 25, 2008.
2
Yearly Recap
MILLION PESOS
2Q08
2Q07
Net Income
1,722
1,806
5
ROE
23.6
20.5
ROA
2.7
2.3
Efficiency Ratio
57.0
54.1
Net Interest Margin
7.5
7.5
Past Due Loan Ratio
1.5
1.5
Reserve Coverage
141
131
(2)
Stock Price
49.58
48.47
Book Value
14.92
18.12
25
P/BV
3.32
2.68
3
Quarterly Net Income
MILLION PESOS
Non-recurring
1,928
Recurring
1,806
1,722
237
60
1,746
1,691
2Q07
2Q08
1Q08
4
Income Statement
MILLION PESOS
1Q08
2Q07
2Q08
QoQ
YoY
Net Interest Income
1
5,179
4,247
5,232
23
Non Interest Income
1
1,961
1,943
1,989
2
Service Fees
9
1,573
1,424
1,712
20
Recovery
(38)
190
180
117
(35)
FX Trading
(19)
198
339
160
(53)
Total Income
1
7,140
6,190
7,221
17
Non Interest Expense
3
(3,799)
(3,516)
(3,903)
11
Net Operating Income
(1)
3,341
2,674
3,318
24
Provisions
25
(1,005)
(754)
(1,255)
66
Non Operating Income, Net
(22)
702
612
551
(10)
Income Tax
(30)
(1,075)
(867)
(751)
(13)
Subs Minority Interest
68
(34)
57
(57)
(200)
Net Income
(6)
1,928
1,722
1,806
5
Recurrent Net Income
3
1,691
1,722
1,746
1
5
Non Interest Expense
BILLION PESOS
2Q07
1Q08
2Q08
QoQ
YoY
Non Interest Expense
3.5
3.8
3.9
3
11
EFFICIENCY RATIO
57
57
57
56
54
54
2Q06
2Q07
2Q08
1H06
1H07
1H08
6
Net Interest Margin vs CETES
PERCENTAGE
8.2
8.0
7.9
7.9
NIM
7.7
7.7
7.6
7.5
7.5
7.1
100
99
7.5
7.5
7.4
7.4
7.2
7.1
7.0
7.1
7.0
7.0
Cetes
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
7
Core Deposits
BILLION PESOS
Deposits
2Q07
2Q08
1Q08
YoY
QoQ
Demand
107
101
103
6
3
Time
64
60
63
7
2
Total
171
161
166
6
3
Mix
Demand
62
62
63
Time
38
38
37
100
100
100
8
Performing Loan Portfolio
BILLION PESOS
217
199
168
2Q07
1Q08
2Q08
Change
2Q07
1Q08
2Q08
QoQ
YoY
Consumer
27
6
71
67
56
Commercial
22
4
79
76
64
Corporate
38
10
43
39
31
Government
41
39
24
18
17
Total
29
9
217
199
168
9
Performing Consumer Loan Portfolio
BILLION PESOS
71
67
56
2Q07
1Q08
2Q08
Change
2Q07
1Q08
2Q08
QoQ
YoY
Mortgage Loans
29
6
40
38
31
Car Loans
9
2
8
7
7
Credit Card Loans
36
8
16
15
12
Payroll Loans
16
7
7
6
6
Consumer
27
6
71
67
56
10
Loan Portfolio Breakdown
PERCENTAGE
2Q07
2Q08
1Q08
19
19
19
Mortgage
8
7
7
Credit Card
3
3
3
Payroll /Personal
4
4
3
Car
38
38
36
Commercial
18
19
20
Corporate
10
9
11
Government
11
Mortgages
NEW LOANS
LOANS
BILLION PESOS
Market Share 14.3
5,153
4,452
4,342
3.3
2.9
2.9
2Q07
1Q08
2Q08
2Q07
1Q08
2Q08
12
Credit Cards
NEW RECEIVABLES (Million Pesos)
NEW CARDS (Thousand)
11,244
9,145
6,907
191
185
172
2Q07
1Q08
2Q08
2Q07
1Q08
2Q08
13
Payroll and Personal Loans
NEW LOANS IN BILLION PESOS
Market Share 11.5
2.1
1.9
1.6
1Q08
2Q08
2Q07
14
Government Portfolio
BILLION PESOS
Federal
PERFORMING LOANS
CORE DEPOSITS
24.3
24.1
23.1
19.5
17.6
16.8
1Q08
2Q08
2Q07
1Q08
2Q08
2Q07
Includes states, municipalities and federal
entities.
15
Government Payrolls
MILLIONS
1.4
1.2
0.9
1Q08
2Q08
2Q07
Includes states, municipalities and federal
entities.
16
Capitalization Ratio
PERCENTAGE
4Q07
1Q08
2Q08
Tier 1
10.2
10.3
10.7
Tier 2
3.6
4.3
5.0
TOTAL
13.8
14.6
15.7
Percentage Tier 1
74
70
68
17
Asset Quality
BILLION PESOS
2Q07
1Q08
2Q08
Total Loan Portfolio
173
220
203
Past Due Loans
2.6
3.2
3.2
Loan Loss Reserves
3.6
4.2
4.0
RESERVE COVERAGE
PAST DUE LOAN RATIO
141
131
127
1.6
1.5
1.5
2Q07
1Q08
2Q08
2Q07
1Q08
2Q08
18
Consumer Portfolio
PDL RATIO
MORTGAGE
CREDIT CARD
PAYROLL
6.7
5.9
2.0
1.8
3.6
1.7
2.6
2.3
1.5
2Q07
1Q08
2Q08
2Q07
1Q08
2Q08
2Q07
1Q08
2Q08
19
Subsidiaries
20
Recovery Bank
NET INCOME IN MILLION PESOS
2Q07
1Q08
2Q08
Total
167
191
151
AUM IN BILLION PESOS
2Q07
2Q08

85
10.4
19.2
Banortes Assets
44.9
38.7
Acquired Assets
(14)
1.3
2.6
Investment Projects
100
1.6
1.4
IPAB Portfolio
(13)
58.2
62.0
Total
7
21
Long Term Savings
NET INCOME IN MILLION PESOS
2Q07
1Q08
2Q08
QoQ
YoY
Total
125
79
63
(20)
(50)
AFORE
INSURANCE
ANNUITIES
88
58
39
33
30
8
7
6
0
2Q07
2Q08
1Q08
2Q07
2Q08
1Q08
2Q07
2Q08
1Q08
22
Other Finance Companies
NET INCOME IN MILLION PESOS
2Q07
1Q08
2Q08
QoQ
YoY
Total
76
71
85
19
11
LEASING AND FACTORING
WAREHOUSING
78
73
66
7
5
3
2Q07
2Q08
1Q08
2Q07
2Q08
1Q08
23
Brokerage and Microlending
NET INCOME IN MILLION PESOS
BROKERAGE HOUSE
MICROLENDING
143
71
63
2Q07
2Q08
1Q08
2Q07
2Q08
1Q08
(7)
(8)
(9)
24
Banorte USA
MILLION DOLLARS
2Q08
2Q07
1Q08
INB
1,025
931
Performing Loans
1,035
4.5
4.2
4.2
Net Interest Margin
Net Income (100)
6.6
5.9
6.8
22.1
23.7
20.3
ROE
41.3
42.1
40.3
Efficiency
25
Challenges

• Complex scenario.
• US Financial Crisis.
• Restrictive monetary policy.
• Economic slowdown and inflationary pressures.
• Competitive pressures new
  market players.
• Regulatory changes

provisions. regulatory deposits.
26
Challenges

• Balancing growth and risk adjusted profitability.
• Proactive balance sheet management.
• Funding costs.
• Capitalization.
• Focus on net interest income.
• Higher emphasis on risk analysis.
• Asset quality.
• New origination models.
• Increased risk-based pricing differentiation.
  
• Early collection.

27
(No Transcript)