1
GFNORTE
3Q08 Results
Conference Call
October 24, 2008.
2
Yearly Recap
Net Income
Net Interest Margin
ROA
ROE
Book Value
Past Due Loan Ratio
MILLION PESOS
9M08
9M07
Efficiency Ratio
Reserve Coverage
5,125
11%
5,742
2.6%
2.5%
23%
22%
12%
57%
52%
7.4%
7.7%
1.5%
1.7%
15.98
18.44
15%
132%
123%
3
Income Statement
MILLION PESOS
Net Interest Income
Service Fees
Recovery
Non Interest Income
Total Income
Non Interest Expense
Net Operating Income
Non Operating Income, Net
Income Tax
Net Income
Provisions
Subs & Minority Interest
FX & Trading
2Q08
QoQ
YoY
3Q07
3Q08
1,712
117
160
1,989
7,221
(3,903)
3,318
551
(751)
1,806
(1,255)
(57)
5,232
4,435
1,520
119
1,939
6,374
(3,607)
2,767
527
(806)
1,740
(709)
(39)
300
5,756
1,682
223
2,028
7,784
(3,736)
4,048
593
(982)
2,007
(1,653)
1
123
10%
(2%)
90%
2%
8%
(4%)
22%
7%
31%
11%
32%
102%
(23%)
30%
11%
88%
5%
22%
4%
46%
12%
22%
15%
133%
103%
(59%)
4
Recurring Provisions / Loans
9M07
1.7%
Total Provisions / Loans
1.3%
9M08
2.1%
2.3%
0.4 pp
1.0 pp
Recurring Provisions
RECURRING PROVISIONS IN MILLION PESOS
Adjusted Reserve Coverage*
132%
126%
(5.0) pp
2,189
9M07
3,688
9M08
68%
* Includes Ps $122 million in credit card reserves for 4Q08
5
Quarterly Net Income
MILLION PESOS
1,685
4Q07
1,928
1Q08
1,806
2Q08
2,007
3Q08
1,740
3Q07
6
Core Earnings
1,758
3Q07
2,138
1Q08
2,134
4Q07
(NII + Fees – Expenses – Provisions)
MILLION PESOS
1,903
2Q08
2,272
3Q08
7
Non Interest Expense
BILLION PESOS
EFFICIENCY RATIO
Interest Income
3Q07
6.3
3Q08
7.7
22%
Non Interest Expense
3.6
3.7
4%
57%
9M07
52%
9M08
55%
3Q07
48%
3Q08
8
Percentage
NIM
101%
95%
Cetes
Cetes
NIM
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
7.1
7.0
7.1
7.2
7.4
7.5
7.7
8.2
7.4
7.9
7.5
7.5
8.1
7.7
Net Interest Margin vs CETES
9
Deposits
Demand
Time
Total
Deposits
3Q08
3Q07
108
67
241
97
62
183
Core Deposits
174
159
Money Market
67
24
BILLION PESOS
2Q08
107
64
221
171
50
QoQ
Change
YoY
11%
7%
32%
9%
180%
1%
4%
9%
2%
34%
10
BILLION PESOS
Performing Loan Portfolio
3Q07
2Q08
3Q08
QoQ
Change
YoY
Commercial
Corporate
Government
Total
Consumer
26%
8%
47%
6%
42%
4%
31%
6%
26%
5%
85
45
25
230
74
79
43
24
217
71
68
31
18
175
59
3Q07
2Q08
3Q08
175
217
230
11
Performing Consumer Loan Portfolio
BILLION PESOS
Car Loans
Credit Card Loans
Payroll Loans
Consumer
Mortgage Loans
3Q07
2Q08
3Q08
YoY
Change
QoQ
12%
3%
29%
2%
18%
8%
26%
5%
29%
6%
8
16
7
74
43
8
16
7
71
40
7
13
6
59
33
3Q07
2Q08
3Q08
59
71
74
Loans to Deposits Ratio
Total Loans / Total Deposits
97%
4Q07
98%
3Q07
103%
1Q08
100%
2Q08
95%
2Q07
90%
1Q07
97%
3Q08
12
Funding Breakdown
Demand
Time
Money Market
Interbank
49%
29%
12%
10%
47%
49%
45%
43%
30%
28%
27%
26%
12%
13%
13%
21%
11%
10%
15%
10%
Retail and Wholesale Deposits
(Billion pesos)
206.6
205.3
226.2
231.5
246.0
41%
25%
25%
9%
264.8
13
14
Asset Quality
Past Due Loans
Loan Loss Reserves
RESERVE
COVERAGE
PAST DUE LOAN
RATIO
Total Loan Portfolio
BILLION PESOS
2Q08
3.2
4.2
220
3Q07
2.7
3.6
180
3Q08
4.0
4.9
233
123%
132%
131%
3Q07
2Q08
3Q08
1.7%
1.5%
1.5%
3Q07
2Q08
3Q08
15
Past Due Loans
3Q07
Payroll
Car
Mortgage
Credit Cards
1.8%
1.9%
2.4%
5.5%
2Q08
2.0%
1.9%
1.5%
6.7%
3Q08
9.0%
1.9%
2.0’%
Commercial
1.3%
1.4%
Corporate
0%
0%
Government
0%
0%
1.6%
1.4%
0%
0%
15
16
Capitalization
Tier 1
Tier 2
TOTAL
3Q06
3Q07
3Q08
% Tier 1
11.0%
3.9%
14.9%
74%
12.6%
2.3%
14.9%
84%
10.6%
5.2%
15.8%
67%
16
17
Inter National Bank
9M07
Deposits
Net Income (70%)
ROE
Performing Loans
1,269
12.9
22.8%
927
9M08
1,414
14.0
20.5%
1,084
Efficiency
41.6%
42.3%
NIM
4.5%
4.2%
MILLION DOLLARS IN US GAAP
Change
12%
9%
17%
17
18
