Download Diapositiva 1

GFNORTE
February 2009.
1
Yearly Recap
BILLION PESOS
2007
2008
Net Income
6.81
ROE
22.7%
19.7%
ROA
2.6%
1.9%
Efficiency Ratio
56.3%
51.0%
Net Interest Margin
7.6%
6.8%
Past Due Loan Ratio
1.5%
2.0%
Reserve Coverage
130.9%
135.2%
Book Value
16.42
11%
3%
11%
14%
7.01
18.77
2
Income Statement
MILLION PESOS
4Q07
3Q08
4Q08
QoQ
YoY
Net Interest Income
5,065
5,756
6,460
12%
28%
Non Interest Income
1,914
2,028
2,389
18%
25%
Service Fees
Recovery
FX & Trading
1,666
164
83
1,682
223
123
1,625
205
559
(3%)
(8%)
354%
(2%)
25%
573%
Total Income
6,979
7,784
8,849
14%
27%
Non Interest Expense
3,841
3,736
4,369
17%
14%
Net Operating Income
3,138
4,048
4,480
11%
43%
Provisions
(921)
(1,653)
(2,983)
81%
224%
198
593
375
(37%)
89%
(694)
(982)
(592)
(40%)
(15%)
(36)
1
(7)
(800%)
(81%)
1,685
2,007
1,272
(37%)
(24%)
Non Operating Income, Net
Income Tax
Subs & Minority Interest
Net Income
3
Subsidiaries
NET INCOME IN MILLION PESOS
4Q07
3Q08
4Q08
QoQ
YoY
1,496
1,802
1,215
(33%)
(19%)
Broker Dealer
90
58
(89)
(253%)
(199%)
Long Term Savings
65
111
100
(10%)
50%
Other Finance Companies
66
60
121
102%
84%
(23)
(24)
(80)
-
-
(9)
-
6
-
1,685
2,007
1,272
(37%)
Bank
Microlending
Holding
Total
(24%)
4
Cost to Income
BILLION PESOS
4Q07
3Q08
4Q08
QoQ
YoY
Total Income
6.9
7.7
8.8
14%
27%
Non Interest Expense
3.8
3.7
4.4
17%
14%
EFFICIENCY RATIO
55%
4Q07
48%
49%
3Q08
4Q08
5
Net Interest Margin
PERCENTAGE
8.2
NIM
7.1
7.5
7.7
7.9
8.1
7.5
7.7 Cetes
101%
Cetes 7.0
1Q07
7.9
7.1
2Q07
7.2
7.4
7.4
7.5
7.7
79%
6.1 * NIM
3Q07
4Q07
1Q08
* Includes repos reclassified as assets in the balance sheet.
2Q08
3Q08
4Q08
6
Deposits
BILLION PESOS
Change
QoQ
YoY
4Q07
3Q08
4Q08
Demand
111
108
128
19%
16%
Time
64
67
75
13%
18%
Core Deposits
175
174
203
17%
16%
Money Market
29
67
57
(15%)
100%
Total
204
241
260
8%
28%
7
Performing Loan Portfolio
BILLION PESOS
230
240
193
4Q07
3Q08
4Q08
Change
QoQ
YoY
4Q07
3Q08
4Q08
Consumer
63
74
75
1%
18%
Commercial
75
85
93
8%
24%
Corporate
37
45
45
-%
23%
Government
18
25
27
6%
50%
Total
193
230
240
4%
24%
8
Consumer Loan Portfolio
BILLION PESOS
63
4Q07
74
75
3Q08
4Q08
Change
QoQ
YoY
4Q07
3Q08
4Q08
Mortgage
36
43
45
6%
26%
Car
7
8
8
(3%)
5%
Credit Card
14
16
15
(8%)
9%
Payroll
6
7
7
(6%)
10%
Consumer
63
74
75
1%
18%
9
Loan Portfolio Breakdown
PERCENTAGE
4Q07
3Q08
4Q08
Mortgage
19
19
19
Credit Card
7
7
6
Payroll /Personal
3
3
3
Car
4
3
3
Commercial
39
37
39
Corporate
19
20
19
Government
9
11
11
10
Loans to Deposits Ratio
Total Loans / Total Deposits
103%
95%
98%
2Q07
3Q07
99%
97%
97%
93%
90%
1Q07
4Q07
1Q08
2Q08
3Q08
4Q08
11
Asset Quality
BILLION PESOS
4Q07
3Q08
4Q08
Total Loan Portfolio
196
233
242
Past Due Loans
2.9
4.0
4.9
Loan Loss Reserves
3.8
4.9
6.7
PAST DUE LOAN
RATIO
1.5%
1.7%
4Q07
3Q08
RESERVE
COVERAGE
2.0%
131%
4Q08
4Q07
135%
123%
3Q08
4Q08
12
Provisions
As a % of Average Gross Loan Book
3.2%
Comerci
2.6%
1.8%
1.1%
2006
2007
2008
13
Past Due Loans
4Q07
3Q08
4Q08
Credit Cards
5.6%
9.0%
12.4%
Payroll
2.1%
2.2%
2.8%
Car
1.8%
2.0%
2.2%
Mortgage
2.3%
1.6%
1.6%
Commercial
1.4%
1.7%
2.0%
Corporate
0%
0%
0%
Government
0%
0%
0%
14
Past Due Loans
Banorte
BBVA - Bancomer
Banamex - Citi
3.9%
1.5%
1.7%
2.0%
4Q07
3Q08
4Q08
4.0%
4Q07
3.2%
2.8%
3Q08
4Q08
4Q07
Santander
HSBC
5.2%
2.3%
2.9%
3Q08
4.1%
4Q08
Scotiabank
6.2%
2.6%
3.1%
2.9%
3.0%
4Q08
4Q07
3Q08
3.5%
1.8%
4Q07
Source: CNBV
3Q08
4Q08
4Q07
3Q08
4Q08
15
Capitalization
2006
2007
2008
Tier 1
12.2%
10.2%
9.4%
Tier 2
5.1%
3.6%
4.9%
TOTAL
17.4%
13.8%
14.3%
% Tier 1
70%
74%
65%
16
Capitalization Strategy 2009
Objectives.
 Maintain robust regulatory capitalzation ratios.
 Reinforce our future growth capacity.
Main uses of capital.
 Increase in risk weighted assets.
 Payment of old subordinated debt.
 February: US 300 million.
 Reinforce Banorte’s credibility as an issuer in global markets.
Main sources of capital.
 Reinvestment of profits.
 Issuance of new subordinated debt in local markets.
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Recovery Bank
MILLION PESOS
Net Income
2007
2008
766
701
2008
2007
Investment
Projects
Investment
Projects
Proprietary
Assets
Proprietary
Assets
10%
32%
39%
37%
51%
32%
Acquired
Assets
Acquired
Assets
18
Recovery Bank
ASSETS UNDER MANAGEMENT
Billion Pesos
2007
2008
Total: 62
Total: 61
Investment IPAB
Projects
Proprietary
Assets
Investment IPAB
Projects
3%3%
Proprietary
Assets
3%
5%
26%
37%
55%
67%
Acquired
Assets
Acquired
Assets
19
Long Term Savings
NET INCOME IN MILLION PESOS
Total
AFORE
2007
2008
388
354
ANNUITIES
INSURANCE
243
170
136
82
94
136
178
2007
Non Recurring
Recurring
2008
(42)
17
2008
2007
2008
2007
20
Other Subsidiaries
NET INCOME IN MILLION PESOS
BROKER
DEALER
OTHER FINANCE
COMPANIES
MICROLENDING
336
288
271
183
2007
2007
2008
2007
2008
2008
(30)
(120)
21
Inter National Bank
MILLION DOLLARS IN US GAAP
2007
2008
Net Interest Income
58.8
65.9
12%
Non Interest Income
11.3
15.6
37%
Total Income
70.2
81.4
16%
Non Interest Expense
29.2
34.6
19%
Loan Loss Reserves
4.9
5.3
8%
Change
Net Income (100%)
23.7
27.3
15%
Performing Loans
966
1,108
15%
16
23
39%
Demand Deposits
712
617
(13%)
Time Deposits
694
762
10%
Past Due Loans
22
Inter National Bank
FINANCIAL RATIOS
%
Change
pp
2007
2008
NIM
4.4
4.2
(0.2)
ROE
21.5
20.4
(1.0)
ROA
1.7
1.6
(0.1)
41.6
42.5
0.9
1.6
2.0
0.3
Efficiency Ratio
PDL Ratio
Reserve Coverage
Leverage Ratio
Capitalization Ratio
60.1
62.4
2.3
7.4
8.0
0.7
11.3
12.5
1.2
23
Risks & Opportunities
Asset
Quality
Contain increase in delinquencies.

Debt restructuring.

Incentives for timely payments.

Better collection.

Avoid contamination to other segments.
New risk models.

Analyze behavioral patterns.

Improved origination.
Recovery of troubled loans.

Comercial Mexicana.
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Risks & Opportunities
Loans
Total loan growth of around 10%.
Emphasis on SMEs, corporate and government.
Cautious approach to consumer and mortgage
segments.
Deposits
Total deposit growth of around 12%.
Special emphasis on core deposits
demand.
Focus on government, corporate and commercial
payrolls.
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Risks & Opportunities
Expenses
Growth in line with inflation.
Merger of around 50 branches.
Intensify cost containment measures.
Capitalization
Liquidity
Target BIS ratio of around 13-15%.

Emphasis on strengthening Tier 1.

Take advantage of AFORE window.
Funding pressures will remain.

Minimize the use of interbank loans.

Emphasis on retail deposits.
Balanced growth between assets and liabilities.
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