KBC Bank & Insurance Group 2000 Results Presentation for financial analysts 5 March 2001

2 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

3 Year 2000 Highlights Net group profits increase : 87.7% (+20.2% excl. gain on CCF) EPS up : 19.5% (excl. gain on CCF) ROE increases to 23.3% Central Europe established as second home market Strong increase of assets under management Merger integration progressing as planned Strategy updated and objectives enhanced

4 In millions of EUR  % Consolidated profit - Group share *excl. gain on CCF - Banking *excl. gain on CCF - Insurance - Holding company Key figures per share (in EUR) - Net earnings *excl. gain on CCF - Net asset value - Net dividend Key Figures

5 Increased Profitability +12.8% +34% +21.6% +20.2% 1821 incl. CCF +87.7% 16.2% 16.1% 20.5% 23.3% In millions of EUR

6 Solid solvency ratios 2000 Bank Tier-1 ratio CAD ratio Insurance Solvency ratio (1) 7.2% 11.5% 311% 9.5% 16.0% 307% (1) excluding unrealized capital gains % 12.8% 298% 1999

7 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

8 In millions of EUR2000Organic  % Gross operating income General expenses Operating result Value adjustments and provisions Extraordinary result Profit before tax Taxes Minority interests Profit after tax Profit after tax excl. CCF 1999  % Banking Summary

9 In millions of EUR +9% +37% +31% +13% +20.4% Total 3435 Total 3868 Total 4656 Banking Income Stream Other income8%8% Commission income20%22% Profit on financial transactions16%18% Net interest income (incl. dividends) 56%52% % of total income

10 Banking Provisioning for credit risks Specific provisions Domestic International Loan loss ratio Domestic International Gen. prov. for international loans Provisions for country risks Provisions for dioxin crisis In millions of EUR % 0.48% % 0.09%

11 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

12 Insurance Summary In millions of EUR 2000 Gross margin General expenses Operating result Non-recurring result Extraordinary result Profit before tax Taxes Minority interests Profit after tax  %

13 Insurance Business mix 1999 Gross premiums million EUR fire 8% accepted business 8% motor 12% individual life 58% group life 4% other non-life 10% 2000 Gross premiums million EUR (+26.1%) individual life 65% group life 4% fire 7% accepted business 6% motor 10% other non-life 8%

14 In millions of EUR +28.4% -3.1% +37.6% +18.9% Total 236 Total 312 Total 371 Insurance Contribution to recurring result Non-technical22%23% Non-life41%33% Life38%43% % of total recurring result

15 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

16 Profit Contribution by Activity % +230% +36% +44% +90% -36% In millions of EUR Retail bancassurance Central Europe Corporate services Asset management Market activities Group items % profit contribution 36% 39%2% 6%11% 13%9% 11%9% 15%32% 17%

17 Retail Bancassurance Overview Profit contribution Allocated equity Percentage of equity ROE Progress in bancassurance and e-commerce Merger operations on track Prospects m EUR m EUR 49.6% 16.8% m EUR m EUR 36.6% 21.0%

18 Retail Bancassurance in Belgium Cross-selling penetration Total clients bank (=) Total clients insurance (+6.1%) Cross-selling clients holding at least 1 bank AND 1 insurance product  32.5% of overall client base  38.2% of bank client base clients holding at least 3 bank AND 3 insurance products  9.9% of overall client base  11.6% of bank client base mutual clients

19 Merger Process Update Integration of bank branches planned -408 achieved -165

20 E-commerce Expansion of e-banking & e-insurance a top priority September 2000 : all retail KBC clients have free access to online Internet banking services on request Mid-September 2000 : launch of ‘My KBC’ Internet applications via , SMS January 2001 : acquisition of Etrasoft e-commerce trading platform KBC-Online : End of 2000 : clients Target by end of 2002 : clients

21 Asset Management Further growth in assets under management (+18.3%) 51.9 (+41%) In billions of EUR 69.6 (+34.1%) KBC AM ltd. (Ireland)- 12% Private Banking10%7% Institutional funds19%19% Mutual funds71%62% % of total AUM

22 Asset Management Overview Profit contribution Market share in Belgium, 31 Dec. 2000: Acquisition of UBIM : investment 105 m EUR or 1.35% of AUM Prospects 90.7 m EUR 28.2% m EUR 29.2%

23 Corporate Services Overview Profit contribution Allocated equity Percentage of equity ROE Focus on small- & mid-caps Prospects m EUR m EUR 46.9% 5.9% m EUR m EUR 37.9% 7.1%

24 Market Activities Overview Profit contribution Allocated equity Percentage of equity ROE Strong performance by KBC Securities and KBC Financial Products Acquisition of Peel Hunt key to building European platform Prospects 90.8 m EUR m EUR 20.1% 9.8% m EUR m EUR 9.6% 24.6%

25 Acquisition of Peel Hunt Leading UK securities house specialized in small- & mid-caps Offer price 260 m £ (450 p per share) Acquisition funded with excess capital Consistent with strategy to expand corporate finance activities

26 Central Europe Overview Profit contribution Allocated equity Percentage of equity ROE Prospects 20.3 m EUR m EUR 14.3% 7.6% 66.3 m EUR m EUR 13.8% 10.4%

27 Central Europe Poland Kredyt Bank Agropolisa Warta Czech & Slovak Rep. CSOB CSOB Pojist’ovna Patria Hungary K&H Bank K&H Bank after merger K&H Life Argosz 49.9%(+1.4%) 49.9%(+26.6%) 40.0%(+40%) 81.5%(-0.8%) 75.8%(=) 91.9% (+91.9%) 73.3%(+40.7%) 60% 50% 95.4%(=) Ownership (*) investment in millions of EUR 5.8% 0.6% 12% 23.4% 0.5% - 8.8% 15.1% 0.5% 3.1% market share (*) change in ownership compared to 1999

28 IPB’s assets total 7.5 billion EUR Assets acquired by CSOB with 100% guarantee from Czech government 75% of IPB loan book is non-performing Strong client base (3 million retail clients) Integration on track Payment : recapitalization at 7% of RWA +20% Negotiation to acquire IPB Insurance IPB

29 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

30 Group Strategy To be an independent, medium-sized bancassurer in Europe. To achieve high, sustainable growth in shareholder value.

31 Strategic Focus Focus on 4 activities Retail bancassurance Corporate services Asset management Market activities Focus on Europe Belgium : home market Central Europe : second home market Western Europe : smaller countries/regions, niches. Other regions if higher return than general targets Focus on ‘local’ clients Retail SME

32   ROE and Capital Allocation ROE target per activity Capital re-allocated : activities with low or volatile ROE  activities with high or stable ROE Corporate lending - Market activities Retail bancassurance Asset management Corporate finance

33 Cost of capital Creation of shareholder value ROE Targets per activity Retailbancassurance Corporate services Asset management Market activities Central Europe TOTAL at operational level TOTAL at group level 8.5% 10.5% 8% 11.5% 13% 9.5% - Minimum ROE target ROE realized 20.0% 12.5% 13.0% 21.0% 15.0% 17% 22% 21.0% 7.1% % 10.4% 17.4% 23.3%

34 Minimum Target Realized 31 Dec. ‘00 ROE at holding-co. level EPS growth Cost/income ratio bank Combined ratio insurer Tier-1 ratio bank CAD ratio bank Solvency ratio insurer 22% 15% p.a. 55% by % by % 11% 200% 23.3% 19.6% 64.2% 106.6% 9.5% 16% 307% KBC Bank & Insurance Group Overall financial targets

35 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Activities  Retail bancassurance  Asset management  Corporate services  Market activities  Central Europe Strategy Investor Considerations

36 KBC Bank & Insurance Group Investor considerations Fundamentals Strong market shares - diversified income Unique bancassurance concept Sound solvency ratios Strategy Focus ROE-based capital allocation Shareholder-value-driven Outlook Merger benefits starting to realize Central Europe : solid base for expansion Continued high profitability in niches

KBC Bank & Insurance Group 2000 Results Presentation for financial analysts 5 March 2001

Appendix

39 Lending Consumer credit Mortgages Deposits Savings deposits Savings certificates Mutual Funds Insurance Life (total) Unit-linked Non-life 26.7% 25.2% 19.4% 17.9% 29.2% 12.8% 18.1% 8.6% +1.8% +0.9% -0.5% +0.2% +1% +0.9% -1.9% -0.3% Market Shares in Belgium Retail Bancassurance  Dec 99

40 Banking LendingCustomer deposits +50% +8% +60% -6% BelgiumAbroad In billions of EUR Total 53.5 Total 64.6 Total 79.0 Total 85.0 Total 93.2 Total 107.2

41 Banking Asset quality Non-performing credits versus total portfolio Domestic International (*) Coverage of non-performing credits by specific provisions Domestic International (*) (*) Excluding the ‘historic portfolio’ of CSOB, which is fully covered by (state) guarantees and provisions. 1.8% 2.0% 1.3% 67.2% 69.3% 60.9% % 64.0% 64.5% 63.2% 2.1% 2.5% 1.7% 67.7% 67.2% 68.6%

42 Efficiency Ratios Cost / Income ratio Net expense ratio ° Non-life Net loss ratio Combined ratio % 33.4% 70.0% 103.4% 65.3% 33.6% 72.5% 106.1% 66.5% (*)64.2% 34.0% 72.6% 106.6% (*) excl. impact change in consolidation scope

43 Insurance Evolution of gross premiums In millions of EUR (=) (+56%) (+1.6%) (+14%)

44 Insurance Premium distribution by channel Non-lifeLife In %

45 KBC Bank & Insurance Group Merger NPV Total: 926 mn EUR Total: 1268 mn EUR  + 37 % Merger NPV better than planned thanks to increased income synergies Cross-selling to CERA clients NPV revised in oct 2000

46 Merger process update Creation of the KBC ITplatform on target 100% 80% 60% 37% 18% 3Q‘99h100h200h101 Done IT-work load remaining 20% is spread over time to close down old KB system

47 Almanij NV KBC Bank & Insurance Holding NV KBC Bank KBC Insurance 67.8% 100% 28.5% Free Float KBC Asset Man 45% 55% KBC Group structure As controlling shareholder, Almanij is committed to support KBC

48 As per Dec KBC Bank & Insurance Group Group key features Staff: Customers: in first home market (Belgium):+/- 2.6 million in second home market (C-Europe):+/- 4.5 million Branches: domestic bank branches:1 454 (KBC+CBC) independent insurance agents: 765 International presence:30 countries

Net profit Net profit (excl. CCF) P/E Gross dividend Pay-out ratio Net asset value Price/NAV % % % KBC Bank & Insurance Group Key figures per share

50 1HSBC UBS77.3 3ING73.2 4Royal Bnk of Scotl Credit Suisse60.9 6Lloyds TSB56.1 7Deutsche Bank55.8 8Barclays55.4 9BBV Argentaria Bco Santander BNP Fortis ABN Amro Bay Hypo Ver Soc. Générale Uni Credito Abbey Natl Halifax Dresdner Bank San Paolo - IMI Banca Intesa Nordic Baltic Stand. Chrtd Dexia Bank Scotl Commerzbank KBC Holdings Danske Bank14.2 (*) marketcapitalization in bn. EURO KBC Bank & Insurance Group Ranking in Europe (*)

51 Number of outstanding shares per Free float % Quoted on Euronext Brussels (BXS) - Included in the Euronext 100, Bel-20, Euro STOXX Financials, FTSE E300 Financials indices YieldKBCBel-20DJEuroStoxx Banks 1 jaar (2000)-11.3%-6.0%7.5% 3 jaar ( )7.9%11.1%15.7% 6 jaar ( )21.1%17.6%23.5% KBC Bank & Insurance Group Shareholder information

KBC Bank & Insurance Group 2000 Results Presentation for financial analysts 5 march 2001