Dear shareholders, Board members and employees:

2017 has been a significant year for Banorte and for the country. One in which we strengthened our position, got closer to Mexicans and consolidated our commitment to sustainability. A year in which, despite adverse signs, we managed to achieve all our goals and establish the foundation for an even more successful 2018.

We rode out the storm

The year began with the threat of a storm; high waves and choppy seas. There was uncertainty about the new administration in the US, the NAFTA renegotiation, international volatility and the internal challenges we faced as a country.

In this environment, we analyzed region-by-region and bank-by-bank and proposed the goal of a 16% annual growth to the Board of Directors, one that seemed optimistic to some.

But we at GFNorte are informed optimists. We know how to navigate in difficult waters and turn them into opportunities, that is part of our nature. Our greatest challenges have been the detonators of growth for our Group.

Banorte is going strong

By year end, we not only achieved our goal, but surpassed it with a record 24% growth in profits, reaching Ps 23.908 billion and generated a 17% return on capital for our shareholders; of all this with a 9% growth in loans, 13% in client deposits and 18% in insurance.

Both the Board of Directors and the Shareholders’ Assembly at the end of 2017 authorized the acquisition by merger of Grupo Financiero Interacciones.

This operation, once it is approved by the authorities, will bring new strength to the Group and will allow us to take advantage of Interacciones’ expertise to lead financing of the country’s infrastructure needs, in addition to realizing synergies that will add value from the very first year.

We are gaining momentum towards our 20/20 Vision strategy.

Banorte nearby

We want to be the best financial group in Mexico and that also means the closest to Mexicans, their needs and concerns.

That is why we have launched #MexicanosFuertes (Strong Mexicans), a long-term movement created to boost pride in being Mexican and to highlight the best of ourselves.

We have redefined the focus of our Foundation’s vision on a crucial issue for Mexico: promoting 21st century education.

After the devastating earthquakes in September we grew closer to Mexican families. We provided immediate help and launched the Banorte Adopts a Community plan which goes beyond the main focus of reconstruction of housing, by bringing in volunteers, providing programs for health, nutrition, culture and education to affected communities, in coordination with civil society organizations.

We continue to advance in the field of corporate governance. For the first time, we have an evaluation process for the Board and its members. We also have a policy for the selection of the latter.

In the area of gender equality, the framework governing the Nominating Committee includes policies aimed at promoting gender equality. One extraordinary and four general Shareholder Assemblies were held during the year, in which participation was over 70% of the base. We remained in close communication with shareholders through our participation in different conferences in the main international financial centers and through visits to their offices.

A sustainable Banorte

We know that the best investment we can make in the future is to leave a better world for our children; for this reason we continue to consolidate our leadership in sustainability.

In 2017, the Sustainable Leaders Agenda 2020 (ALAS20) recognized us as the leading organization in sustainability in Mexico. Likewise, we were included in the recently created Dow Jones Sustainability MILA Pacific Alliance Index.

In addition, we affirm our presence in the Dow Jones Sustainability Emerging Markets Index, the Euronext Vigeo EM 70 Index, and the Bloomberg Gender-Equality Index, among others.

Similarly, we reaffirm our commitment to the Women’s Empowerment Principles, and the 10 Principles of the UN Global Compact, of which we are signatories.

As Chairman of the Board of Directors of Grupo Financiero Banorte, I reaffirm my commitment and that of all the directors who are part of the Group to continue to respect the Principles of Responsible Investment, which implies incorporating into our investment policies emerging risks arising from climate change and loss of biodiversity, as well as human rights violations, thus safeguarding the social and environmental heritage of the communities in which we work.

This year we also received the Best Corporate Governance award from Ethical Boardroom Magazine, which is an endorsement of our commitment to lead the implementation of international best practices in this area.

A challenging 2018

I am convinced that 2018 will be a historic year for Banorte and for each of us.

This year we see two challenges in the environment: the NAFTA renegotiation, and the presidential and congressional elections in Mexico.

NAFTA is a treaty that generates $2,600 million dollars per day and has been fundamental in the development of the country.

I believe that, beyond the specific outcome of the negotiations, Mexico has the fortitude to continue to grow, based on its macroeconomic stability, reforms that are already providing results and our extensive business relationship with the world.

This coming July we will hold the most competitive elections in history for the Presidency and over 3,400 elected positions, including Congress.

Mexico is ready for this process, with strong institutions and a balance of powers.

Banorte will continue to work to benefit businesses and Mexican families above and beyond the options that the population selects.

Dear Shareholders, Board members and employees:

I would like to thank you all for your unwavering commitment to this institution.

This will be the year of Banorte, who will stand out and compete successfully with the best in the world. The year in which we will grow in the face of adversity and build our future day by day. A year of #MexicanosFuertes.

Sincerely,

Carlos Hank González

Chairman of the Board of Directors
of Grupo Financiero Banorte