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									Banorte Investor Day




          Long Term Savings Sector
                   (BAP)




                           November 16, 2007   1
               Index

1. Overall Structure


2. Pension Fund Management


3. Annuities


4. Insurance



                             2
          Banorte – Generali Joint Venture
Breakdown of JV:
   Grupo Financiero Banorte (51%).

   Assicurazioni Generali (49%).

This JV has 3 companies:
   Private Pension Fund Management: AFORE Banorte – Generali.

   Annuities: Pensiones Banorte – Generali.

   Insurance: Seguros Banorte – Generali.




                                                      BAP
2. Private Pension Fund
      Management
        (AFORE)
Overview




           5
                             Market Structure
                                  Individual Accounts


                                 Dec 06              Jun 07              Sep 07
Rank            AFORE
                            Accounts      %     Accounts      %     Accounts      %

 1     Banamex (CITIBANK)    5,596,232    15%    5,779,746    15%    5,847,964    15%
 2     Bancomer (BBVA)       4,255,568    11%    4,329,497    11%    4,388,103    12%
 3     Inbursa               3,630,280    10%    3,534,692    9%     3,476,653    9%
 4     Profuturo GNP         3,403,090    9%     3,268,518    9%     3,218,740    9%
 5     Banorte Generali      3,282,539    9%     3,112,706    8%     3,153,964    8%
 6     Santander             2,996,067    8%     3,064,191    8%     3,136,626    8%
 7     Principal             3,326,545    9%     3,128,846    8%     3,069,626    8%
 8     Afore XXI             2,402,682    6%     2,426,265    6%     2,533,123    7%
9      ING                   2,314,651    6%     2,220,900    6%     2,199,476    6%
10     HSBC                  1,767,775    5%     1,837,970    5%     1,843,288    5%
11     Others                4,433,399    12%    4,809,939    14%    5,445,102    13%
       Total                37,408,828 100%     37,513,270    99%   37,826,065 100%




                                                                                        6
                        Assets Under Management
                               Biggest Market Players
                                     Billion Pesos

            Total AUM (P$bn)                                  AUM YoY Growth
                                                              Sep ‘06 Vs
  AFORE         Sep ‘06    Sep ‘07   Rank     AFORE            Sep ‘07      %      Rank

Banamex          125.2     153.3      1       Banorte           10.6       23.9%    1
Bancomer         112.4     134.6      2       Profuturo GNP     15.9       23.3%    2
Santander/ING    94.3      108.6      3       Banamex           28.1       22.5%    3
Inbursa          82.2       93.0      4       XXI                8.8       21.5%    4
Profuturo GNP    68.6       84.6      5       Bancomer          22.1       19.7%    5
Banorte          44.6       55.3      6       HSBC               4.8       17.0%    6
XXI              41.1       49.9      7      Santander/ING      14.3       15.1%    7
Principal        30.5       33.7      8       Inbursa           10.7       13.1%    8
HSBC             28.2       32.9      9       Principal          3.9       13.4%    9
Total            627.2     745.9              Total             129.8      18.9%




                                                                                          7
             Assets Under Management
                             Billion Pesos




         Industry                              Banorte - Generali


                     808
             672                                       45       55
 561                                           36




Sep-05     Sep-06   Sep-07                   Sep-05   Sep-06   Sep-07




                                                                        8
                            Fee Trends
                      Equivalent Fee on Balances




 3.30

           3.00     2.96
 2.82                          2.85
           2.62     2.58    2.57       2.48
                                                2.36

                                      2.38               2.13
                                                                  2.05 Industry
                                               2.19      1.85
                                                                  1.71 Banorte



Dec- 05   Apr-06   Aug-06   Sep-06    Oct-06   Apr-07   May-07   Sep-07



                                                                                  9
              Operating Income & AUM



   Operating Income           Assets Under Management
        Million Pesos                Billion Pesos



                                                59
1,062
          1,003         976          50
                              39




2005      2006      2007e     2005   2006     2007e




                                                        10
                       Net Income & ROE



       Net Income                         ROE
       Million Pesos


                                   25%
285                                              21%

                       175
            102                            9%



2005       2006        2007e      2005    2006   2007e




                                                         11
                    Income Statement
                     Million Pesos



                                              Var %
                             2005    2006
                                             05 Vs. 06
 Operating Income            1,062   1,003    (6%)
 Investment Income             89      80     (10%)
Total Income                 1,151   1,082    (6%)
  Expenses                    601     784      30%
  Other Expenses              128     128      0%
Total Expenses                729     911      25%
Net Income before Taxes       422     171     (59%)

Net Income                    285     102     (64%)




                                                         12
Perspectives
 2008 -2010
             Targets & Strategies
2010 Goals
   Market share:
      7.25% in AUM.
      11% of individual certified accounts.
   Net Income P$450+ million.
   ROE > 25%


Strategies
   Optimize salesforce size.
   Banca-AFORE Project.
   Customer Loyalty Program.
   Voluntary Savings.

                                               14
              Operating Income & AUM



   Operating Income             Assets Under Management
        Million Pesos                  Billion Pesos


                        1,379
           1,254                                       107
1,097                                       89
                                  73




2008e      2009e        2010e    2008e     2009e       2010e




                                                               15
                    Net Income & ROE


   Operating Income                     ROE
        Million Pesos


                         455
            377                         28%     27%
                                 23%
259




2008e      2009e        2010e   2008e   2009e   2010e




                                                        16
                           Income Statement
                              Million Pesos

                             Plan    Forecast   Forecast    Var %       Var %
                             2008      2009       2010     09 Vs. 08   10 Vs. 09

   Operating Income         1,097     1,254      1,379       14%         10%
   Income from Interests      70         71         80       2%          12%
Total Income                1,167     1,326      1,459       14%         10%
   Expenses                  746        763        780       2%          2%
   Other Expenses             60         37         45      (39%)        22%
Total Expenses               806        800        825       (1%)        3%
Net Income before Taxes      360        526        633       46%         20%
Net Income                   258        377        455       46%         20%




                                                                                   17
3. Annuities
            Market Premiums
                   Million Pesos
                   Nov ’07
               (Since Jan 2006)

                       Premiums        Market Share

Bancomer                    2,986            32%
Banorte Generali            2,448            26%
GNP                         1,557            17%
Banamex                       869            9%
HSBC                          640            7%
Principal                     296            3%
ING                           307            3%
Inbursa                       135            1%
Others                             2         0%

Total                        9,238




                                                      19
                                     Market
                            Annuities Sold




                                  30,822
                         27,423
         23,370 24,620

                                           15,798

                                                                            8,643   9,724
                                                                    7,921
                                                    5,884   6,186
 4,497



 1997    1998    1999    2000     2001     2002     2003    2004    2005    2006    2007e


2002 decrease due to changes in IMSS internal policies.


                                                                                            20
              Premiums & Market Share


        Premiums                        Market Share
       Million Pesos

                       2,035                           2nd

                                                       34.0%

                992            23.9%
       874                             19.6%   20.4%
843




2004   2005    2006    2007e   2004    2005     2006   2007e




                                                               21
       Premiums & Technical Reserves
                          Million Pesos

       Premiums                              Technical Reserves


                                                          9,839
                  2,035
                                                  7,521
                                          6,448

          992
874




2005      2006    2007e                   2005     2006    2007e




                                                                   22
                      Net Income & ROE


      Net Income                          ROE
      Million Pesos




           622
                                   34%    34%
                       246
                                                 21%
           614
 96                    214


            8            32

2005      2006        2007e        2005   2006   2007e

  Recurring Income
  Non-recurring Income

                                                         23
                     Income Statement
                          Million Pesos
                                                     Var %
                                    2005    2006    05 Vs. 06
Premiums                            873      992      14%
Change in Technical Reserves        870     1,090     25%
Earned Premiums                       4      (98)   (2795%)
Investment income                   557      622      12%
Other income                         79      759     855%
Earned Income                       640     1,284    101%
Technical Expenses                  472      513      9%
Expenses                             64       69      9%
Total Expenses                      536      582      9%
Net Income Before Taxes             104      701     575%

Net Income                           96      623     548%

Annuities Sold (#)                  1,591   1,713     8%




                                                                24
Perspectives
 2008 - 2010
                 Targets & Strategies

2010 Goals

   4,275 annuities sold per year.

   Net Income P$130 million +.



Strategies

   Professional and highly trained sales force.

   Strategic Asset Allocation of the technical reserves.

   Operational expenses between 4% and 5% over premiums.



                                                           26
        Premiums & Technical Reserves
                           Million Pesos

        Premiums                              Technical Reserves



                                                             16,088

                                           11,362   13,710

2,250    2,250     2,250




2008e    2009e     2010e                   2005     2006     2007e




                                                                      27
      Net Income
        Million Pesos




                        131
              113
 77




2008e        2009e      2010e




                                28
                          Income statement
                                Million Pesos

                                 Plan    Forecast   Forecast    Var %     Var %
                                2008       2009       2010     09 Vs. 08 10 Vs. 09
 Premiums                       2,250     2,250      2,250       0%        0%
 Change in Technical Reserves   2,318     2,347      2,378       1%        1%
Earned Premiums                  (68)       (97)     (128)       44%       31%
  Investment Income              961      1,182      1,378       23%       17%

Earned Income                    894      1,084      1,251       21%       15%
Total Expenses                   787        928      1,069       18%       15%
Net Income before Taxes          107        156        181       47%       16%
Net Income                        77        112        131       47%       16%

Annuities Sold (#)              4,275      4,275     4,275       0%        0%




                                                                                  29
4. Insurance
                                      Market Growth
                                       Premiums vs. GDP
15.00%
                                       GDP                         Premiums


10.00%




 5.00%




 0.00%
          1994   1995   1996   1997    1998   1999   2000   2001    2002   2003   2004   2005   2006



 -5.00%




-10.00%




-15.00%



                                                                                                       31
                        Evolution of Premiums

                                 Millions of Pesos



                                                                                 8,043
                                                                         7,197



                                                                 4,270
                                                         3,337

                                                 1,807
                  1,048                  1,290
                          805    900
     263   251

    1997   1998   1999    2000   2001    2002    2003    2004    2005    2006    2007e


Rank 19°   21°     9°      17°     19°    16°      14°    12°     8°      7°      6°




                                                                                         32
                        0
                            2,000
                                    4,000
                                            6,000
                                                    8,000
                                                            10,000
                                                                        12,000
                                                                                 14,000
                                                                                          16,000
       Metlife México


              G.N.P.


        Seguros ING


             Inbursa


     BBVA Bancomer


     Banorte Generali
                                                                      g 6th
                                                                     Rankin




      Monterrey New
        York Life

             Qualitas


            Banamex
                                                                                                   Millions of Pesos




     Mapfre Tepeyac
                                                                                                                       Market (Premiums)




        Aba/Seguros


               Atlas


              Zurich

        AIG México
      Interamericana

       Allianz México

      Small Ones (65
       companies)
33
                      Premiums & Market Share
                             Millions of pesos




                                                  8,044
                                          7,198    553
                                           461     955
                                          1,070
                            4,269                 1,957
                                          1,588
               3,337
     Health                 520
     P&C        528         1,478                 4,569
                                          4,079
     Auto      1,444

     Life      1,190        1,943


               2004         2005          2006    2007e

Market Share   2.2%         3.0%          4.5%    5.0%


                                                          34
        Premiums & Technical Reserves
                           Million Pesos

        Premiums                              Technical Reserves


                                                           7,675
                   8,044
                                                   5,522
                                           3,629

         7,197
4,270




2005     2006      2007e                   2005     2006    2007e




                                                                    35
                      Net Income & ROE


      Net Income                          ROE
      Million Pesos




432                                58%
 69                   325
           325
                                          27%
363                                              21%




2005      2006        2007e        2005   2006   2007e

  Recurring Income
  Non-recurring Income

                                                         36
                Income Statement
                      Million Pesos

                                                 Var %
                                 2005   2006
                                                05 Vs. 06
  Retained Premiums             3,552   5,888     66%
  Change in Technical Reserve    141    1,957    1283%
Earned Premium                  3,411   3,931     15%
  Investment Income              321     440      37%
  Other Income                    263     209    (20%)
Earned Income                   3,994   4,580     15%
  Net Claim Cost                2,687   3,253     21%
  Net Acquisition Cost           531     583      10%
  Operational expenses           211     261      23%
Total Expenses                  3,429   4,097     19%
Net Income before Taxes          566     483     (15%)

Net Income                       432     325     (25%)




                                                            37
Perspectives
 2008 - 2010
                   Targets & Strategies
2010 Goals
   6% Market Share.
   Profits of over $600 million pesos.
   ROE close to 24%.



Strategies
   Organic Growth in Bank Assurance in traditional products.
   New insurance products for SMEs.
   Personal line products to be sold by insurance agents.
   Products for the brokers channel market.
   Up-sale and cross-sale strategies.
   Strategic Asset Allocation for the technical reserves.
   Low operating costs.
                                                               39
                   Premiums
                     Millions of Pesos




                                          10,781
                                 9,761     722
                 8,854            660     1,425
         8,044    604            1,251
Health    553    1,099
P&C       955                             3,115
                                  2,668
                 2,285
         1,957
Auto
                 4,866                    5,519
         4,569                   5,182
Life




         2007e   2008e           2009e    2010e




                                                   40
        Premiums & Technical Reserves
                            Million Pesos

        Premiums                              Technical Reserves


                                                             12,239
                                                    10,884
                   10,781                   9,625
          9,762
8,854




2008e     2009e    2010e                    2005     2006    2007e




                                                                      41
                    Net Income & ROE


        Net Income                      ROE
        Million Pesos


                         618
            522                 30%
463                                     26%     24%




2008e      2009e        2010e   2008e   2009e   2010e




                                                        42
                             Income Statement
                               Million Pesos

                                Plan    Forecast   Forecast    Var %       Var %
                                2008      2009       2010     09 Vs. 08   10 Vs. 09
  Premiums Retained            7,555     8,323      9,186       10%         10%
  Change Technical Reserve     1,949     2,098      2,260       8%          8%
Earned Premiums                5,606     6,225      6,926       11%         11%
  Income from interests         714       796        891        12%         12%
  Other Income                  274       302        333        10%         10%
Earned Income                  6,593     7,323      8,150       11%         11%
  Net Claim Cost               4,870     5,376      5,946       10%         11%
  Net Acquisition Cost          771       873        989        13%         13%
  Operational expenses          308       349        367        13%         5%
Total Expenses                 5,949     6,598      7,302       11%         11%
Net Income before Taxes         644       725        847        13%         17%
Net Income                      463       522        618        13%         18%




                                                                                      43
5. Final Comments




                    44
Certain statements in this document are
  “forward-looking statements”. These
statements are based on management’s
 current expectations and are subject to
       uncertainty and changes in
   circumstances. Actual results may
 differ materially from those included in
   these statements due to a variety of
                 factors.
                                            45
46

								
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