1. Company presentation April 2004 Financial Year 2003 Results and Outlook for the Future

2. 2 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and manage credit risk –Corporate portfolio –Retail portfolio –Action plan Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

3. 3 IN ORDER TO CONTROL RISK EFFECTIVELY, SEVERAL ISSUES MUST BE ADDRESSED Legacy issues addressed Formalistic/procedural approach to credit High risk concentration with limited number of customers Ineffective monitoring leading to late detection of problem loans Consequently, bad debt focused on recovery – not restructuring Collateral values not realistically marked-to-market Loan administration shortcomings

4. 4 ACTION PLAN FOR RISK IMPROVING CREDIT POLICY AND SKILLS IS FOCUSED BOTH ON THE MANAGEMENT OF ‘HEALTHY’ PORTFOLIO AS WELL AS RECOVERY (1/2) Improved decision making Adjusting key credit policies Strictly reduced credit delegation levels based on risk/exposure decision grid Implement new risk classification scoring system Centralization of credit risk management in 6 regional risk centers segregated from commercial management Simplified processes for individuals resulting into reduction of throughput times based on full implementation of automated scoring for all retail credit products Simplified processes for non individuals concentrated in 6 centers Automated and simplified monitoring process, usage of KBC proven systems Training on all levels of the credit process Reduced risk concentration limits strictly adhered to New collateral policy –More differentiation in coverage ratios –Increased verification of values Adjusted provisioning policy to consider regulatory rules as minimum as opposed to maximum Status Pilot operational, full rollout by mid May 2004 Effective Early detection of problem loans

5. 5 ACTION PLAN FOR RISK IMPROVING CREDIT POLICY AND SKILLS IS FOCUSED BOTH ON THE MANAGEMENT OF ‘HEALTHY’ PORTFOLIO AS WELL AS RECOVERY (2/2) Credit administration Proactive handling of problem loans Establishment of autonomous ‘Bad bank’ at HO level with 6 regional centers –Central unit for large exposure recovery –Regionalization of mid-small corporate and retail exposures –New structured processes in retail –Development of NPL planning and reporting tool –Design of approach and system for new NPL management New credit administration approach Concentration of credit administration into 10 regional centers Status In progress Pilot running, full rollout September 2004 In progress Pilot running, full rollout from mid May 2004 Effective

6. 6 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and arrange credit risk Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

7. 7 KREDYT BANK’S RESTRUCTURING PROGRAM COVERS ALL AREAS OF THE BANK, FOCUSING ON MANAGEABLE PRIORITIES All key areas of the business covered – however with a realistic 2004 agenda Highest focus on 2004 P&L levers –Bad Bank and new credit risk management –Aggressive cost reduction –Responsible headcount management Renewed sales focus kicking-in 2Q KB program For 2004 Credit policy and credit skills Performance oriented corporate leadership Sales and distribution capabilities Effective HR management Efficient processes and IT

8. 8 KREDYT BANK’S RESTRUCTURING PROGRAM COVERS ALL AREAS OF THE BANK, FOCUSING ON MANAGEABLE PRIORITIES KB program For 2004 Credit policy and credit skills Performance oriented corporate leadership Sales and distribution capabilities Effective HR management Efficient processes and IT Strengthened top management team –Many internal promotions –Selected KBC implants and senior hires –Project-based support!from KBC experts Leaner organization structure with clear accountabilities Focused head office structure –Segmented client responsibility (Retail, Private Banking, Corporate) –Independent risk management (Credit but also Risk, Audit and Compliance) –Centralized HR and cost management New management information system to closely track performance on –Sales and revenues –Personnel cost management –Purchasing cost –Bad Bank performance Integration of subsidiaries (HR management, purchasing) Done Advanced In progress

9. 9 KREDYT BANK’S RESTRUCTURING PROGRAM COVERS ALL AREAS OF THE BANK, FOCUSING ON MANAGEABLE PRIORITIES Market-tailored client segmentation Commercially re-focused regions, relieved of administrative responsibilities and aligned with Head Office structure –10 Retail Regions –11 Corporate Banking clusters (plus central Strategic Clients team) –11 Private Banking clusters (and 6 branches) Rigorous planning of commercial actions to match budget targets Reconfiguration of the branch network KB program For 2004 Credit policy and credit skills Performance oriented corporate leadership Sales and distribution capabilities Effective HR management Efficient processes and IT Done Advanced In progress

10. 10 WITHIN THE CORPORATE CLIENT SEGMENT, KREDYT BANK IS BUILDING ON RELATIONSHIPS WITH 3000+ CLIENTS Retaining existing clients Activating passive client relationships and winning back lost clients Improving quality of client relationship –Aligning turnover on current accounts proportionally to credits –Increasing focus on and skills for sale of fee products (foreign operations fees, overdraft fees, fees from guarantees) –Improving pricing discipline Introduction of multi-currency, multi-product offering which allows single credit limit to be applied for all credit needs of the client Introduction of ‘professional limits’ for FX settlement transactions Focus on selected products, e.g. Mass payments, Cash management, Intra-group products Mid-Corporate segment (~4,000) Strategic segment (~200)

11. 11 KREDYT BANK’S RESTRUCTURING PROGRAM COVERS ALL AREAS OF THE BANK, FOCUSING ON MANAGEABLE PRIORITIES KB program For 2004 Credit policy and credit skills Performance oriented corporate leadership Sales and distribution capabilities Effective HR management Efficient processes and IT Full centralization of HR management, introducing tools to enable central control of group-wide staff levels Introduction of staffing models across the Bank (both Head Office and Network) Implementation of headcount reduction (~700 staff by year end*) without resorting to mass layoffs –New hire freeze, to leverage natural attrition –Non renewal of temporary contracts –Establishment of mobility office and related procedures Development of motivation and incentive programs Done Advanced In progress *Part of the previously announced FTE savings have been realized already during 2003

12. 12 KREDYT BANK’S RESTRUCTURING PROGRAM COVERS ALL AREAS OF THE BANK, FOCUSING ON MANAGEABLE PRIORITIES KB program For 2004 Credit policy and credit skills Performance oriented corporate leadership Sales and distribution capabilities Effective HR management Efficient processes and IT Purchasing Real estate Systematic one-off review and reduction of purchasing costs Development of purchasing cost planning and reporting tools Implementation of new, centralized organization Planning of real estate needs following the restructuring program Optimization of strategic real estate portfolio (including sale and lease back options) Dismissal of excess space Centralization of IT management New IT investment appraisal approach New ITC outsourcing policy Rationalization of cash handling – both in branch and transport Optimization of processes for domestic payments, outbound and inbound international payments Rationalization of physical security Payments, cash and security Done Advanced In progress IT