KBC Bank & Insurance Group First Half Year Results September 2001

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

3 In millions of EUR  % Consolidated profit - Group share (1) - Banking - Insurance - Holding company Key figures per share (in EUR) - Net earnings - Net asset value KBC Bank & Insurance Group Key Figures (1) figures over 2000 excl. capital gain on CCF (2) as per (2)

4 KBC Bank & Insurance Group Net Profit -7.3% In m EUR

5 KBC Bank & Insurance Group 1st Half 2001 Key elements Core businesses deliver good revenues  Interest income : %  Non-life premiums : % Slight increase of marketshares versus dec  Lending : 23.1 % (+ 0.9 % pt)  Saving deposits : 19.5 % (+ 0.1 % pt)  Mutual funds : 29.8 % (+ 0.6 % pt) Asset quality remains good Non-performing loans stable at 2.2 % Assets under management : + 3 bn EUR Development of Central Europe on track Sustained solid solvency ratio’s

6 KBC Bank & Insurance Group 1st Half 2001 Key elements Unfavourable market conditions have negative impact on volatile revenue components  trading result : %  commission income from securities : -1.3 %  unit linked premium income : % Cost performance in banking still unsatisfactory (+18.1 %)  merger related savings still limited  deterioration of cost / income ratio due to slower growth of revenues

7 KBC Bank & Insurance Group Profitability +12.8% +21.6% +20.2% 1821 incl. CCF +87.7% 16.1% 20.5% 23.3% In millions of EUR +37.2% 27.3% 20.1% -7.3%

8 KBC Bank & Insurance Group Efficiency Ratios Cost / Income ratio Non-life Net cost ratio Net loss ratio (total) Net loss ratio (direct business) Combined ratio % 32.1% 73.6% 68.5% 105.7% 70.2% 32.2% 71.9% 67.0% 104.1% (*) excl. impact change in consolidation scope 66.5% 64.2%(*) 34.0% 72.6% 67.7% 106.6%

9 KBC Bank & Insurance Group Sustained solid solvency ratios 2000 Bank Tier-1 ratio CAD ratio Insurance Solvency ratio (*) 7.2% 11.5% 311% 9.5% 16.0% 307% (*) excluding unrealized capital gains % 12.8% 298% % 14.8% 314%

10 Target Realized 30 June ‘01 ROE at group level EPS growth Cost/income ratio bank Combined ratio insurer min. Tier-1 ratio bank min. CAD ratio bank min. Solvency ratio insurer 22% 15% (1) 55% (2) 103% (2) 7% 11% 200% 20.1% -7.6% 70.2% 104.1% 8.6% 14.8% 314.0% KBC Bank & Insurance Group Overall financial targets (1) average over the period (2) by 2004

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

12 In millions of EUR Gross operating income General admin. expenses Operating result Value adjustments and provisions Extraordinary result Profit before tax Taxes Minority interests Profit after tax  % (1) (2) Banking Summary (1) incl. allocation to FGBR of 118 m EUR (2) excl. capital gain on CCF

In millions of EUR +13.1% -3.7% -27.3% +13.2% -0.3% Total 3435 Total 3868 Total 4656 Banking Income Stream Other income Commission income Profit on financial transactions Net interest income (incl. dividends) % of total income Total 2380 Total % 20% 16% 56% 11% 21% 18% 50% 8% 22% 18% 52% 10% 22% 24% 44%

14 Banking Expenses KBC Belgium Personnel costs Other admin. expenses Total In millions of EUR  % Impact Traditional elements :28.5 m EUR (inflation, promotions, etc) Profit related wage component :6.5 m EUR One-off elements :20.0 m EUR

15 Banking Expenses other group companies Personnel costs Other admin. expenses Total Excl. impact acquisitions In millions of EUR  % Impact acquisitions :139 m EUR (IPB, Peel Hunt, Patria) KBC FP and KBC Sec. France :37 m EUR (increase nr. of personnel with 96 FTE or 21 %)

16 Banking Provisioning for credit risks Specific provisions Domestic International Loan loss ratio Domestic International Non performing loans Other general provisions for credit risks In millions of EUR % 0.09% 2.1% % 0.48% 2.1% % 0.23% 2.0% % 0.12% 2.2% 20.0 Asset quality remains good

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

18 Insurance Summary In millions of EUR Non-life premium income Life premium income Net technical charges (*) Investment income (*) Total gross margin General expenses Operating result Non-recurring result Profit before tax Taxes Minority interests Profit after tax  % (*) excl. impact value changes unit-linked products

19 Insurance Evolution of gross premiums

20 Insurance Business mix Gross premiums 1481 million EUR fire 6% accepted business 7% motor 9% individual life 68% group life 3% other non-life 13% Gross premiums 1361 million EUR individual life 63% group life 4% fire 7% accepted business 8% motor 10% other non-life 8%

In millions of EUR +32.6% -24.9% +15.8% +6.4% Total 236 Total 312 Total 371 Insurance Contribution to recurring result Non-technical Non-life Life % of total recurring result Total 178 Total % 26% 53% 22% 41% 37% 23% 34% 43% 24% 33% 43%

22 Non recurring realized gains Allocation to provision for financial risks Non recurring result Insurance Non recurring result In millions of EUR as per

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

24 Profit Contribution by Activity : m EUR : m EUR Retail bancassurance Central Europe Corporate services Asset management Market activities Group items % profit contribution 36% 34%19% 20%24% 12%3% 12%9% 8%10% 14% -13.7% -3.5% -51.7% +279% -12.6% +30.5% In millions of EUR

25 Revenues and Capital Allocation per activity Revenues Asset Manage- ment 8.3% Retailbanc- assurance 33.5% Central Europe 12.3% Corporate services 19.8% Market Activities 12.3% Group items 13.9% Capital Allocation Asset Manage- ment -- Retailbanc- assurance 39.1% Central Europe 13.9% Corporate services 33.3% Market Activities 13.5% Group items 0.1% As per

26 Retail Bancassurance Merger of bank branches on track  retail branches reduced from 1272 end 2000 to 1217 mid 2001  goal : ± 850 by end 2003 / early 2004 Conversion and integration at insurance company as planned Banking market shares (1) on the rise (v.12/00)  Consumer credit :  Home loans :  Saving deposits :  Saving certificates : Positive evolution of cross selling Continued success of electronic banking 26.5% 25.5% 19.5% 18.1% (1) KBC estimates +0.7% pts +0.4% pts +0.1% pts +0.2% pts Financial highlights Profit contribution : (in m Eur) : : 196 Share in Group profit : : 36.0% : 33.5% Return on equity: : 20.9% : 17.0%

27 Retail Bancassurance in Belgium Cross-selling penetration Total clients bank Total clients insurance Cross-selling clients holding at least 1 bank AND 1 insurance product  % versus  36 % of overall client base clients holding at least 3 bank AND 3 insurance products  % versus  10.9% of overall client base mutual clients

28 Continued success of electronic banking 71.4 % (+ 2.1 % pt *) of payment transactions via electronic channels (+ 76 % *) active subscribers to KBC Internet & PC Banking (*) versus December 2000

29 Corporate services Strategic reduction of risk weighted assets started (-8,5 % or -3,9 bn EUR) Continued rationalization of international network  scaling down of multinational relationships for focus on mid-caps  closure of branch in Frankfurt  regrouping of corporate branches at KBC Nederland  improved relationship management by creation of ‘network desks’ Increase in domestic market share (1) in lending  end 2000 : 20.7%  mid 2001 : 21.9%  slight increase in corporate lending in Belgium (+4.4%) Financial highlights Profit contribution : (in m Eur) : : 116 Share in Group profit : : 19.0% : 19.8% Return on equity: : 12.0% : 11.4% (1) KBC estimates

30 Market activities Strong performance of dealing rooms abroad  restructuring process  favourable interest rate positions Stable profit for dealing room in Brussels Weakness of stock markets reflected in results of equity-subsidiaries KBC Securities (-89 %) and KBC Financial Products (-69 %) Peel Hunt  bid successfully wrapped up  perfect fit into European corporate platform for small- and mid-caps  profit contribution slightly positive (2.5 m EUR) Financial highlights Profit contribution : (in m Eur) : : 72 Share in Group profit : : 23.6% : 12.3% Return on equity: : 40.6% : 17.9%

31 Central Europe (1) CSOB becomes one of the premier financial groups in Central Europe since take-over of IPB  market shares : ca % in Czech Rep. (1) and 6% in Slovakia  3.4 million customers  integration process on track  staff levels reduced by ca. 6% in 1H 2001 K&H Bank and ABN Amro Magyar merged on 1July 2001  new K&H Bank becomes second bank in Hungary  market share around 14%  almost clients  staff levels reduced by ca. 12% in 1H 2001 Request to move to majority stake in Kredyt Bank (Poland) Financial highlights Profit contribution : (in m Eur) : : 72 Share in Group profit : : 3.0% : 12.3% Return on equity: : 6.4% : 17.8% (1) Including all assets and liabilities of IPB

32 Central Europe (2) Central European Insurance activities also progressing  stake in CSOB Pojist’ovna raised from 75.8% to 100%  market shares (2) : 0.5% in Czech Rep., 3.5% in Hungary and 13% in Poland Bancassurance on track in Central Europe  co-operation started between Argosz, K&H Life and K&H Bank  agreement signed between Warta and Kredyt Bank Financial highlights Profit contribution : (in m Eur) : : 72 Share in Group profit : : 3.0% : 12.3% Return on equity: : 6.4% : 17.8% (2) KBC estimates

33 Asset Management Increase in assets under management, notwithstanding difficult market conditions  4,3% rise in 1H 2001  volume increase (3.7 bn EUR) more than compensates value decrease (- 0.7 bn EUR) Largest Belgian player as to mutual funds  market share from 29.2% end 2000 to 29.8% mid 2001  ± 50% market share in capital guaranteed funds Continued launch of new investment funds during 1H 2001  55 new funds in Belgium  2 new CSOB-funds in Czech Republic  focus on capital-guaranteed funds Continued innovation in funds  KBC Private Equity Fund Biotech  KBC Click Solidarity 1 Kom op tegen Kanker  Hedge Fund Financial highlights Profit contribution : (in m Eur) : : 49 Share in Group profit : : 8.8% : 8.3%

34 Asset Management Further growth in assets under management (+18.3%) 51.9 (+41%) In billions of EUR 69.6 (+34.1%) Private Banking Institutional funds Mutual funds % of total AUM (+4.3%) 7% 30% 63% 10% 19% 71% 7% 30% 63%

35 Outlook Economic climate and market conditions remain uncertain Q3 and Q4 results however should develop more favourably Y2001 result forecast slightly above Y2000 results Lang term average EPS growth target of 15 % maintained

KBC Bank & Insurance Group First Half Year Results 2001 Brussels 3 September 2001