KBC Bank & Insurance Group Company presentation Summer 2004 Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

2 Table of contents 1.Company profile 2.Strategy overview 3.1Q 04 - Financial highlights 4.Additional information

Company profile

4 Considerable scale in Euroland Note: DJ Euro Stoxx Banks constituents as of 31 Jan 2004 Giant cap Large cap Mid cap Number 12 in Euroland bank ranking KBC is a top-20 financial service provider in the Euro-zone with a market cap of ± 14 bn

5 Successful core businesses Top bancassurer in Belgium : 3 rd bank (market share: ± 22%) 1 st asset manager (± 31% in funds) 3 rd retail insurer (± 13% Life, ± 8% PC) Successful expansion in the 5 most advanced countries in ‘Emerging Europe’ : Growth market of ± 65 m inhabitants ± 3.4 bn capital invested Prominent position in banking Focused activities in corporate and investment banking. As investments in CEE progressed, CIB activities have been scaled down. Share in allocated capital (excl. goodwill and group items) KEY FIGURES : Total assets : ± 226 bn Net profit ‘03 : 1.12 bn ROE ’03 : 12.7 % Headcount : ± Customers : ± 12 m Credit rating : AA-, AA3, A+

6 Banking Insurance Allocated capital Slovakia: Market share: 6% (no 4) Czech Republic: Market share: 18% (no 1) Total assets: 18.3 bn Hungary: Market share: 11% (no 2) Total assets: 5.5 bn Poland: Market share: 6% (no 7) Total assets: 4.8 bn Slovenia: Minority interest (34%) Market share: 43% (no 1) Czech Republic: Life M share: 9% (no 4) Non-life M share: 4% (no 6) Slovakia: Life M share: 4% (no 8) Non-life M share: 2% (no 6) Hungary: Life M share: 2% (no 13) Non-life M share: 4% (no 6) Poland: Life M share: 5% (no 5) Non-life M share: 14% (no 2) Slovenia: Startup life business Prominent player in the region

7 Building a 2 nd home in CEE Minority in CSOB Insurance Majority in CSOB Bank & CSOB Insurance Take-over of IPB banking Take-over of IPB Insurance & majority in ERGO Minority in K&H Bank & creation of Argosz Non- life & K&H Life Majority in K&H Bank Merger of K&H/ ABNAmro Magyar Minority in Kredyt Bank Majority in Agropolisa Minority in WARTA Majority in Kredyt Bank Majority in WARTA Minority in NLB Bank Creation of NLB Life < 1999 Czech/ Hungary Poland Slovenia Slovak

8 Group revenue profile Commission income Technical and investment income, insurance Other Yield income (Interest & dividend),banking Trading income Capital gains on disposals, banking

9 Balanced credit portfolio CEE. 17 bn Other 3 bn W. Eur 23 bn Note : credit portfolio as of 31 Dec 03, incl. corporate bonds and loans to banks, excl. reverse repos. US 6 bn Sector breakdown Geographical breakdown Breakdown by area of activity Belgium, retail 38 bn Belgium, corporate 15 bn

10 Performing asset manager Assets under management (bn EUR) Breakdown of retail funds Equity, Belgium Bonds & MM, Belgium Mixed, Belgium Capital- guaranteed, Belgium Funds of funds, Belgium Market share, retail funds Belgium :31% Czech Republic :19% Slovak Republic :6% Hungary :8% Belgium: 87% CEE: 5% Retail Corporate 89 bn 81 bn 82 bn Retail CEE Unit-linked, Belgium

11 Long-term shareholdership Cera Holding & Almancora Other stable shareholders MRBB Almanij Stock Market Gevaert Private equity KBC Bank & Insurance KBL Private bank ± 17% ± 16% ± 37% ± 78% 100% ± 67% ± 29% ± 31% Almanij is an investment company (of which KBC is ± 75% of the assets) committed to supporting KBC in the long run Core holders include the Ceragroup (co-operative investment company), a farmers’ association (MRBB) and a syndicate of industrialist families. KBC/Almanij is a major asset for all of them. Free float (October 2003)

12 Steadily growing dividend Board of Directors’ policy to maintain a steadily growing dividend Gross dividend up every year over the past 5 years (at a CAGR of 9%) Average payout : 40-45% (usually cash). Payout may be raised to keep dividend stable in case of temporary drop in profit EPS DPS Payout41%38%36%44% 45% Yield1.8%2.1%3.1%3.6%4.2%4.9% Note: yield = gross DPS versus average share price. Figures 2000 excl. value gain on CCF

13 Valuation still not too demanding * Sources EPS forecasts for KBC: KBC (2004) and I.B.E.S. (2005) Situation as of 31 May, 2004 P/E CEE banks (1) 13.8 Eurozone banks (2) 12.3 CEE exposed banks (3) 11.5 KBC 10.3 Bel banks (4) 9.8 Unweighted IBES data : (1) OTP, Komercni, Pekao, BPH PBK, BRE (2) Top 25 of DJ Euro Stoxx banks (3) BACA, Erste, KBC, Unicredito, Soc Gen (4) KBC, Fortis, Dexia Key figures : Price : 46.8 EUR Net Asset Value : 35.4 EUR EPS 2003: 3.68 EUR Analysts estimates : EPS 2004 consensus : 4.35 EPS 2005 consensus : 4.75 P/E forward 2 years : 10.3 Recommendations : Positive : 10 Neutral : 7 Negative : 5 Valuation relative to peer group :

Strategy overview

15 Group focus and profit growth Traditional strenghts: - Belgium - retail /SME Merger: Cross selling banking/insurance Cost synergies (1st phase) Expansion to CEE: New home markets/ acquisitions Mitigated ‘wholesale’ profile Consolidation (6 C dimensions): Cross selling Customer satisfaction Canvassing affluent customers Control of risks Cost efficiency enhancement Cross border synergies Stronger organic growth (and add- on acquisitions) Refinement of C- programs Profit growth Leading bancassurer in Belgium and CEE, delivering superior return levels “Consolidating business platform" "Broadening business platform" "Realising full potential of the platform" … Reconfirmed confidence in our strategy fundamentals

16 The potential of the Belgian market should not be underestimated. Strategy and earnings drivers Multiple OPPORTUNITIES to unlock value The expanded horizons in ‘emerging/converging’ Europe will fuel top-line growth at acceptable risk

17 Group strategy Key objectives : 1.Cross selling (bancassurance) in Belgium 2.Reducing banking costs in Belgium 3.Strengthening the second home market in CEE KBC is a bancassurer focusing on local clients (individuals and SME) in Belgium and selected countries in (Central) Europe

18 Strategy and earnings drivers Achieved to date : Premium income boosted : Life premiums more than doubled from 1.1 bn in ’98 to 2.4 in ’03 (81% sold via bank outlets) Bank distribution of non-life products growing faster (+ 33%) than distribution via traditional channels (+5%) Going forward : Tap growth potential, though not to the detriment of technical performance : For SMEs ( 20% in banking) For non-life insurance (10% via bank channel vs 81% in life) Key objective 1 : Cross selling (bancassurance) in Belgium

19 Strategy and earnings drivers Achieved to date : Merger synergies : Integrated IT-infrastructure Branch mergers (-41%) Headcount objective reached (-12%) Going forward : Further cost reduction: Reduce product complexity in retail (action plan consisting of 364 items) Out-/co-sourcing of processing and back-office functions (within the group and with third-parties) Rationalisation of head office space and other non-FTE expenses Key objective 2 : Reducing banking costs in Belgium

20 Strategy and earnings drivers Achieved to date : Expansion in 5 target countries : Prominent franchises Renewed IT-infrastructure Bancassurance models set up Strengthened of internal governance model/central management structure Going forward : Performance enhancement : Sales of banking, insurance, AM products (deposits/ GDP at 45%-80% and premium/cap < 20 % of EU avg) Business reorganization in CR (HQ) and Poland  10-15% FTE downsizing Cross border cost-sharing (payments systems, IT procurement, etc.) If opportunities arise, acquisitions in Poland (banking) and Hungary (insurance) Key objective 3 : Developing a second home market in CEE

21 Note: combined ratio excl. re-insurance Cost/income ratio, banking 58% Combined ratio, non-life insurance 95% Tier-1, banking8% Solvency, insurance200% EPS growth (4y CAGR)10% ROE, group 16% ROAC Retail in Belgium16% Central and Eastern Europe17% Corporates12% Markets18% Demanding financial objectives Minimum targets for 2005

1Q 04 - Financial highlights

23 Q avg ‘01-’03 (265 m) Net profit + 29% yoy Delivering strong earnings Net profit m EUR Group ROE 17 % Insurance: 32 Especially strong momentum in banking Banking: 370 Holding: -10 Highlights — Banking — Insurance — Areas of activity — Outlook

24 Highlights — Banking — Insurance — Areas of activity — Outlook Net profit at a high level, up 29% year-on-year : 1. Very strong underlying revenue growth, especially in banking : Top-line growth in banking: +8 % year-on-year Organic premium growth in insurance: +19 % year-on-year, but pressure on investment yields 2. Expenses well under control and low risk charges : Cost/income ratio, banking at 59 % Loan loss ratio, banking at 11 bp Combined ratio, non-life well below 100 % (at 97.5 %) 3. No net support impact of ‘exceptional items’ : capital gain on ‘Belgacom’ (57 m) significant provision amounts (-81 m) set aside for various future liabilities and charges In insurance: impairments on equity portfolio (-128 m) to a large degree offset by use of provision for financial risks Key points

25 Target 2005 Dec 2002 Dec 2003 Mar 2004 Cost / income, banking <=58%65% 59% Combined ratio, insurance * <=95%101%95%99% Solvency (Tier 1), banking > 8%8.8%9.5% Solvency, insurance ** > 200%320%316%333% Return on equity 16%13% 17% EPS growth 10%+1%+8%+25% * Combined ratio excluding reinsurance. ** Solvency insurance including unrealized gains. Improving performance levels Highlights — Banking — Insurance — Areas of activity — Outlook

26 Q3Q Full consolidation, previously equity method at 40 % 2004 Warta Insurance (Poland) Q1Q2Q1Q2 Impact of consolidation changes Impact on top line +2 % Impact on bottom line -1 % Main changes in scope of consolidation : Premium income  99 m EUR, 3/4 non-life (21% of non-life total, Group) Highlights — Banking — Insurance — Areas of activity — Outlook

m Solid quality of banking earnings Underlying revenue growth + 14 % Expenses - 0.1% Capital gains -53% m - 65 m Pre-tax profit 1Q 2003 Year-on-year comparison Positive impact of operational items: +120 m EUR + 1 m Highlights — Banking — Insurance — Areas of activity — Outlook

28 Strong growth of operational income Gross income up 8 % yoy : Interest income in line with strong previous quarter and +12 % yoy (interest margin up yoy from 1.6 % to 1.8 %) Sustained high commission income, up 16 % qoq (‘seasonal’) and +2 % yoy Robust trading revenu (up 51 % yoy) after somewhat depressed 2003 numbers No ‘exceptionals’, capital gains on investment portfolio in line with previous quarter (4% of total) Quarterly income (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook

29 Expenses at stable level Cost basis stable yoy (-1% qoq) : In Belgium: - 5 % yoy (- 26 m) Headcount continued to reduce at 250 FTE (-2 %) In CEE: - 1 % yoy (-2 m) Headcount reduction programs running: 67 % of target achieved in CR and 50 % in Poland Increase in expenditures in rest of the world, mainly related to trading bonuses Cost/income ratio significantly improved to 59 % (65% for FY03) Quarterly expenses (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook

30 Loan provisioning very limited Loan loss provisions at very low level (charge of 11 bp* versus 71 for FY 2003) No problem areas/regions recognised, but cautiousness prevails about quarters ahead ! (same level in all probability not sustainable) Loan losses in Poland only 4 m (charge of 42 bp) Loan loss ratio: 10 bp in Belgium, 16 bp in C/SR, 46 bp in Hungary and 5 bp for the international portfolio Quarterly loan provisions (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook 252 * Net specific provisions to average gross customer loans

m Development of earnings, banking Underlying income growth + 14 % Expenses - 0.1% Loan losses - 85% Less securities impair ments Other Capital gains -53% Gain on FFA disposal Provision for future expenses m - 65 m + 1 m + 36 m + 79 m + 33 m - 92 m 575 m Pre-tax profit 1Q 2003 Pre-tax profit 1Q m - 3 m Year-on-year comparison Highlights — Banking — Insurance — Areas of activity — Outlook * * Gains of financial fixed assets: Belgacom in Q1 04 versus Krefima in Q % organic growth

32 40 m 57 m Development of earnings, insurance Premium growth + 20% Other ** +288 m -281 m -40 m -4 m Technical charges + 23% Investment income + 13% Expenses + 9% Less non- recurring - 9% * +14 m Pre-tax profit 1Q 2003 Pre-tax profit 1Q m -17 m Year-on-year comparison * Of which impairments on equity ** Of which consolidation changes Highlights — Banking — Insurance — Areas of activity — Outlook -23 % organic change

33 Continued fast growth of premiums Sustained robust growth in Life (mainly Belgium) : In organic terms, up again, +24 % and almost double as 2 previous quarters, Renewed interest for linked products (54% of Life total) Non-life: in organic terms up 6 % yoy Stronger in direct underwriting (+11%) Drop in re-insurance (- 6 %) 1Q 2004 Non-life 366 m Unit-linked 477 m Interest-guaranteed life 401 m 24 % 35 % 33 % * * * * Growth rate, including extension of scope of consolidation Highlights — Banking — Insurance — Areas of activity — Outlook

34 Satisfactory efficiency and underwriting performance in non- life Combined ratio at fair level (97.5 %) Less strong year-on-year (-4.3 pp): Non-life claims are volatile by nature Exceptional circumstances in 2003 in Belgium (no large loss cases) Changes in consolidation scope (adverse impact 1 pp) 1Q 2004 Highlights — Banking — Insurance — Areas of activity — Outlook 97.5 % 95.9 %95.4 % 93.2 %

35 Insurance business suffering from low investment yields 1Q 031Q 04 Interest yield 5.5 %5.0 % Return on shares7.0 %7.1 %* Total5.9 %5.6 % Investment return down to 5.6 % from 5.9 % * Corresponds with 7.3 % of the market value of the portfolio (= 10 years’ adjusted average) Highlights — Banking — Insurance — Areas of activity — Outlook

36 P/L-impact largely neutralized by write-back of provision for financial risks Non-realized gains on shares untouched Additional impairment of 56 m expected in Q2-Q4 (market level of Apr 2004) but adequately offset by unrealized gains Impairments on equity portfolio largely offset In m EUR1Q 04 Value adjustments, shares-128 Transfer from financial provision+93 Non-recurring capital gains *+22 Other- 4 Total non-recurring result- 17 * Gain on the equity tranche of an unwoud private CDO structure Highlights — Banking — Insurance — Areas of activity — Outlook

37 Market value of securities portfolio significantly above book value In m EURBook valueMarket valueUnrealised Banking book Bonds Shares Insurance book Bonds Shares Other

38 Updated strategy for investment book * Excl. private equity and smaller porfolios held by subsidiaries PreviousCurrent Equity portfolio banking * Basic portfolio : 35 % Belgian blue chips (Bel 20) 65 % European stoxx sectors Basic portfolio : 100% MSCI Pan Euro Financials (ca. 50 m EUR) Financials (ca. 25 m EUR) Asset-mix new inflow Life insurance 75% Fixed income 20 % Equity 5% Real Estate 90 % Fixed income 10 % Equity

39 Profit contribution 124 m, return 17 %* Strong momentum in banking : Widening gross margin (up yoy from 5.8 % tot 6.4 % * ) Maintained cost reduction (C/I down yoy from 81 % to 69 %) Sustained low level of problem loans (loan loss ratio 11 bp *) Although strong premium income, pression on insurance contribution : Higher claims ratio (69 % versus 58 % in Q1 03) Lower investment yields Robust performance in Belgian retail Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution (m EUR) * Return on average allocated capital Margin and loan losses on average RWA

40 Working along “4 dimensions” (4 C’s) Robust performance in Belgian retail 1. Cost efficiency Programs of product simplification (less ‘cost drivers’) and co-sourcing (economies of scale) 2. Cross selling of insurance products Cross selling to go beyond 40% 3. Customer satisfaction Refined segmentation and increase of customer-facing time 4. Canvassing affluent clients Broadening the affluent customer basis Highlights — Banking — Insurance — Areas of activity — Outlook

41 Expanded horizons in CEE gradually paying off CR & SR : strong contribution to Group profit driven by strong revenue growth in a) retail and b) due to the improved ‘interest rate environment’ and a sustained low loan loss ratio (16 bp) Hungary : strong return number on the back of a) favourable development of revenue and b) a one-off writeback of a general provision for credit risk Poland : "back in black" thanks to a) progress in the cost reduction program, bringing expenses down 3%* yoy and b) the - in all probability exceptional - low loan loss amount of 4 m EUR * Profit contribution excl. return on excess capital and minority interests ** adjusted for currency effects CEE 2 nd home Net profit (statutory) Contribution to Group * Contribution % yoy ** Return on allocated captial Return on invested capital CR / SR 55 m42 m+84 %19 %13% Hungary 30 m13 m+39 %31 %22% Poland 5 m3 m-5 %3 % Contribution of banking operations to KBC Group profit : Highlights — Banking — Insurance — Areas of activity — Outlook

42 CEE banking, share of banking wallet Impact of paid goodwill Benefiting from higher margins Note : banking business lines only Risk issue under control Highlights — Banking — Insurance — Areas of activity — Outlook Improved cost structure under way

43 Expanded horizons in CEE gradually paying off Enhanced performance going forward 1. High economic growth and increasing penetration rate of financial products 2. Better cross selling of insurance products 3. Increase of organisational efficiency and intensified quest for Group synergies 4. In Poland, business re-engineering  cost level  / organizational strength  Highlights — Banking — Insurance — Areas of activity — Outlook

44 Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution : 34 m (after allocation of distribution fee to retail),  in line with previous quarter and 1Q 03 Assets up 6 % qoq (3% net inflow) Assets up 18 % yoy : Mutual funds (47 bn) : +20 % yoy Private assets (16 bn) : +17 % yoy Institutional (20 bn) : +16 % yoy Performing asset management activities Profit contribution (m EUR, excl. minorities) Belgium : 86 % CEE : 4 %

45 Profit contribution 100 m (return 21 %) Turnaround in banking since 3Q 03 : mainly driven by lower cost of risk (9 bp* versus 57 bp in FY 03) gross income margin and cost/income  stable at 2.6 %* and 36 % respectively move towards lower risk lending, in a quest for more stable results (target loss ratio: 35 bp over the cycle) Turnaround in in re-insurance since 3Q 03 : mainly driven by improved underwriting performance (combined ratio : 90 % versus 100 % in FY 03) Profit contribution (m EUR, excl. minorities) Corporate activities stepping up * On average RWA 43 Highlights — Banking — Insurance — Areas of activity — Outlook

46 Profit contribution 64 m (return 23 %) Strong performance in M/CM activity (x2 qoq and up 24 % yoy), mainly on the back of strong income growth (Modest) profit contribution for cash equity business (4 m),  in line with previous quarter (loss in 1Q 03) Good results in equity derivatives business (up 14 % yoy) on the back of : Significant income growth and the non-recurrence of negative MtM for long derivatives in previous quarters Additional income sources (without higher risk exposure) out of (structured) investment management Profit contribution (m EUR, excl. minorities) Tail wind in ‘financial markets’ Highlights — Banking — Insurance — Areas of activity — Outlook

47 Source : KBC CEE Outlook, May 2004 Favourable trend in core markets GDP, real growth Belgium:  0.5 % above EMU avg CEE:  1.5 % - 3 % above EMU avg Highlights — Banking — Insurance — Areas of activity — Outlook

48 Outlook 2004 Positive momentum in economic environment : Fuelling top-line growth Mitigating costs of risk Commitment to sustained cost and underwriting discipline Should the current economic and financial context prove to be sustainable, and taking into account stable stock exchange levels, then net earnings for 2004 are expected to be at least 15 % higher than in 2003 Highlights — Banking — Insurance — Areas of activity — Outlook

Additional information

50 Interest spreads in Belgium Interest margin, banking Spread on new loans Going forward, increasing market rates could fuel top-line growth

51 Credit portfolio : cyclical sectors % of total portfolioDec '01Dec '02Dec '03EUR bnChg Real estate5% 7.2-6% Electricity & water6%4% % Aviation1% 1.5-7% Shipping1% 1.4-7% Telecom2% 1%1.4-37% Hotel & restaurant1% % IT0.4% 0.68% Media0.5%0.4%0.3%0.5-16%

52 Low Interest rate risk covered by provisions (4% ref. rate) Premium growth 2002 Life portfolio Life reserves, Belgium (non-linked) Rate4.75%3.75%3.25%2.75%OtherTotal Traditional14%-8%--22% Universal28%23%22%2%3%78% Note : Universal life: flexible premium payments with 10-year interest rate guarantee on current premiums and without guarantee for future premiums Premium growth 1H2003 Premium growth 2H2003 Asset-backing allowing hedging of Interest rate risk

53 Sound business, even in low-interest-rate environment Profitability dynamics, life (non-linked) Reserve (1st yr) 100 Return on investment 4.83 % Allocated capital 9.25 Investment income, reserves 4.83 Investment income, capital 0.45 Investment income 5.27 Guaranteed rate 2.75 Profit BT 2.52 X X + - Simplified example : ROAC 20% Tax 0.68 Investment mix :75%Treasury bonds Return :4.20% (Example)20% Shares6.70% 5% Real estate6.70% 4.83% Return on allocated capital Note : reserve for year n = 100 x ^n ROACYear1Year 2Year3Year n Rate at 2.75 %20%21 %23% Rate at 3.25 %16 %17 %19% -

54 Low combined ratio, significant leverage on return Profitability dynamics, non-life Reserve ratio 200 Return on investment 5.45% Allocated capital 40 Investment income, reserves 10.9 Investment income, capital 2.2 Premium 100 Combined ratio Investment income Profit BT 18.1 Tax ROAC 36% X X Investment mix :50%Treasury bonds Return :4.20% (Example)45% Shares6.70% 5% Real estate6.70% 5.45% Combined ratio105 %100%95% ROAC16 %26 %36 % - Simplified example : Return on allocated capital

55 Czech & Slovak republics - CSOB Market position : Inhabitants : 15 m Market share : 18% / 6 % Customers : ± 3.2 m Branches : 281 (+3400 POS) Workforce : ± FTE KBC’s footprint : 1999 : Majority (privatization) 2000 : Take-over of IPB Bank  Current stake : 90% Investment : ± 1.4bn (± 2.3 xBV) Financial track record : m EUR, IAS‘99‘00‘01‘02‘ 03 Net profit RWA : 6.8 bn (7% of KBC’s banking operations) Allocated equity : 1.0 bn (13% of KBC banking) Gross margin Cost/ income Loan loss Pretax margin Ratio10.0%71%34bp2.5% Share in KBC banking total 12%13%6%13% Margins on RWA Profit contribution 2003 : Sustained satisfactory results (though positive impact of exceptionals mainly in ‘01-’02) Note: participation including increase from 85% to 90% in 2004

56 Hungary - K&H Bank Market position : Inhabitants : 10 m Market share : 11% Customers : ± 0.7 m Branches : 155 Workforce : ± FTE KBC’s footprint : 1997 : Reference stake (32%) 2000 : Full ownership (100%) 2001 : Merger ABN Amro Magyar  Current stake : 59% Investment : 0.3 bn (1.3 x BV) Financial track record : m EUR, IAS‘99‘00‘01‘02‘ 03 Net profit RWA : 3.8 bn (4% of KBC’s banking operations) Allocated equity : 0.3 bn (4% of KBC banking) Gross margin Cost/ income Loan loss Pretax margin Ratio8.2%78%32bp 1.6% / 0.8% Share in KBC banking total 6%7%2%2% / 5% Margins on RWA Profit contribution 2003 : Turnaround proven to be successful. K&H Equities loss in '03. Stand-alone incl. minorities

57 Poland - Kredyt Bank Market position : Inhabitants : 38 m Market share : 6% Customers : ± 0.8 m Branches : 359 Workforce : ± FTE KBC’s footprint : 1997 : First stake (5%) 1999 : Reference shareholder (49%) 2001 : Full ownership (56%) 2002 : Full control (76%)  Current stake : 85% * Investment : 0.8 bn (c.2x est BV) Financial track record : m EUR, IAS‘99‘00‘01‘02‘ 03 Net profit RWA : 4.4 bn (5% of KBC’s banking operations) Allocated equity : 0.4 bn (5% of KBC banking) Gross margin Cost/ income Loan loss Pretax margin Ratio7.8%87%9%Neg Share in KBC total 6%8%54%Neg Margins on RWA Profit contribution 2003 : Stand-alone, incl. minorities Thorough clean-up of loan book since '02 (late in the cycle) In-depth restructing plan being implemented. Turnaround to come Note: investments including capital increase of 4Q03 and 1Q04

58 CEE, credit ratings upgrade in 2003 UpdateCountry rating Company rating Outlook CSOB (CR) Jan. 2001BBB + Stable Sept. 2003A-A- A-A- Stable K & H (Hungary) Oct. 2000BBB + Stable July 2003A-A- A-A- Stable KB (Poland) Oct. 1999BBB + Stable Sept. 2003BBB + Stable NLB (Slovenia) Feb. 1997BBB + Stable Sept. 2003A+A+ A-A- stable Fitch credit ratings

59 KBC in CEE Strengths Prominent market positions with nationwide branch networks Geographical diversification Satisfying results to date in most markets, except banking in Poland Common shared optimism on rebound of economic cycle in ’04 and long-term market growth in general As of May 2004 : all CEE affiliates (5 countries) operating in the EU Successful bancassurance and asset management concept at group level (knowhow is being transfered) Excess capital at group level with stable core shareholders (long term) Weaknesses Still high cost/income ratios (work in progress) Converging business margins CEE still a higher risk zone (allthough tempered by EU entry) Still unsatisfactory stability and scale in Poland (work in progress) Central Europe 2 nd home market Reconfirmed confidence in our strategy fundamentals

60 Solvency 8.8% 9.5% 504% 320% 316% Banking business (Tier 1) Insurance business (Solvency margin) 581 m 676 m m m In m EUR Solid solvency in both banking and insurance allowing further investments if needed (no double gearing and no DAC)

61 Basle II regulation Quantitative impact study (QIS 3) – 1st half 2003 : required capital compared with current required capital level : ApproachCredit riskTotal risk Standardized95%105% IRB Foundation76% 87% IRB Advanced74% 85% Positive impact from the lower weight of retail/SME portfolio But : for the time being, uncertainty prevails regarding risk classification in the CEE portfolio and on the changes emanating from the Jan-04 Basle Committee meeting Basle II may free up some capital

62 EU directive : 1Q03 Regulation: 3Q04 Application : 1Q05 RequirementsImpact for KBC Group solvency No double gearing Appropriate leverage Minimum group solvency level OK Group governance 'fit and proper‘ organization Appropriate financial and risk procedures Reporting and supervision on risk concentrations and intragroup transactions Already anticipated : Integrated Executive level New Group CFRO function Centralized group risk department No material financial impact to be expected Financial conglomerate regulation

63 Outstanding convertible bonds In 2003, a mandatory convertible bond reached maturity : (coupon 12.2% in ’03) creating ± 6.8 m new KBCN shares (not dividend-entitled for 2003) Outstanding convertible bonds : Convertible bond 2005 : 417 m EUR (coupon 2.50%), maturing Dec. 2005, optionally convertible in 5.2 m shares (± 80 EUR/ share) of which ± 2 m held by KBC Mandatory convertible bond 2008 : 186 m EUR (coupon 3.50%), maturing 2008, to be converted in 2.7 m shares (± 69 EUR/share) No relevant dilutive instruments in the coming 4 years

64 Contact information Investor Relations Office : Luc Cool Nele Kindt Tel. : Visit for the latest update on our company : Press releases and alert service Financial information, annual and quarterly reports Company background, strategy and governance related items