1. KBC Group
Retail bancassurance and private banking on the Belgian market April 2005
Web site: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) ISIN code: BE

2. Contact information
Investor Relations Office Luc Cool Nele Kindt Marina Kanamori Tel.:
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3. Disclaimer
This presentation is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security.
Although the statements of fact in this presentation have been obtained from and are based on sources that KBC believes to be reliable, KBC does not guarantee their accuracy, and any such information may be condensed or incomplete.
This presentation contains forward-looking statements with respect to our strategies and earnings development. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities. The risk exists that these statements may not be fulfilled and that future results differ materially.
By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved.

4. ING Financials Day - 18 April 2005
Introduction W. Duron
Retail bancassurance in Belgium F. Florquin
Private banking in Belgium F. Florquin
Synergies for private banking W. Duron within KBC Group

5. Foto gebouw 1
Introduction

6. Benelux players have considerable scale
Euroland top-30 banks, by market cap *
KBC Group : 24 bn euros
* DJ Euro Stoxx Banks constituents ranking by market cap, as at 14 March 2005

7. KBC Group’s business portfolio
Revenue breakdown*
Capital markets
Gevaert
International SME/corporate
Belgium : - retail bancassurance - private banking - asset management - SME and corporates
European private banking
CEE
Although KBC has successfully expanded its operations in CEE, it primarily is a top bancassurer and asset manager in Belgium, its historical home market
Thanks to the merger with Almanij (March 2005), the private banking activities were expanded to include a Western European network. PB has become a more pronounced key focus
* 2004 pro forma figures, excl. group items

8. Belgian market, headlines
Market shares:
31-Dec-03
The banking landscape in Belgium is highly consolidated (80%held by top-4 banks)
The market growth in the field of wealth management is significant (high savings rate)
The market is highly receptive to cross-selling of AM & insurance products
KBC is a top-3 player, especially strong in the Northern region

9. Retail and private bancassurance *
Profit contribution
Return on capital
Target 2007: high single digit CAGR
Target 2007: sustained high level
Cost/income ratio, banking
Combined ratio, non-life
Target 2007: further down to low 60-ties
Target 2007: max 95% over-the-cycle
* excl. European private banking

10. European private banking network
Netherlands: Theodoor Gilissen Acquired in ’03 – participation: 100%
UK: Brown Shipley Acquired in ’89 – participation: 100%
Germany: Merck Finck & Co Acquired in ’99 – participation: 100%
Belgium: KBC Private banking Puilaetco private bankers (100% participation acquired in ’04)
Switzerland: Kredietbank (Suisse) Historical presence
Luxembourg: Kredietbank Luxembourg Parent company for European PB
France: KBL France Acquired in ’98 – participation: 100%
Spain: Banco Urquijo Acquired in ’98 – participation: 100%
Monaco: KB Luxembourg (Monaco) Historical presence
Italy: Fumagalli Soldan Acquired in ’01 – participation: 95%
Since ‘98, KBC Group (KBL) has developed a private banking network throughout Western Europe, anticipating further erosion of its offshore activities for a/o Belgian customers in Luxembourg
Private banking assets outside Belgium grew to 43 bn across the 10 countries

11. Foto gebouw 2
Retail bancassurance in Belgium

12. Retail and private bancassurance, Belgium
Profit contribution
Return on capital
Core retail Other retail and private banking
Core retail Retail and private bancassurance
583
382
Target 2007: high single digit CAGR
Target 2007: sustained high level
Cost/income ratio
Combined ratio, non-life
Core retail Retail and private bancassurance
Core retail Retail and private bancassurance
Target 2007: further down to low 60-ties
Target 2007: max 95% over-the-cycle
* excl. European private banking

13. How to achieve further growth ?
Nice results 2004
Core retail only:
In mio EUR
2004
12m
Evolution
Abs. %
a.o. Savings & investments
1 132
+19
+2%
Lending
424
-12
-3%
Insurance
236
+32
+15%
Gross income
1 829
+66
+4%
Direct costs
-811 +4
-1%
Allocated costs
-439
+13
Operating expenses
-1 250
+17
Provisions
-11
+42
-80%
Pre-tax profit
568
+125
+28%
Net profit
414
+75
+22%
How to achieve further growth ?

14. Sharp increase in productivity
Efficiency strategy
Strong growth in revenue per FTE
Strong growth in revenue per branch
Revenues per FTE, 1998 = 100
Revenues per branch, 1998 = 100

15. Cost-savings largely implemented
Efficiency strategy
Core retail only, cost trend, in m EUR
Up to 2004: significant decline in costs
2001 costs 1
Spontaneous cost inflation 1 2
Cutback in branch FTEs: or -18% 2 3
Reduction in No. of branches: -680 or -45% 3 4
Integration of ICT platforms and of products and support services 4
Henceforth: upwards pressure on costs
2004 costs
Target: cost growth below wage inflation rate 1
Spontaneous cost inflation 1
2007 costs

16. Rather limited potential for further automation
Efficiency strategy
Potential for further automation
Rate of automation

17. Strict cost control remains important
Efficiency strategy
Closely-knit network
High wage costs
Wage costs in Belgium are higher than in other European countries
Average level of education of branch staff is higher than in other European countries
Source: Febelfin

18. Target: <0.25% over-the-cycle
Low over-the-cycle credit-loss charges
Risk strategy
Core retail Belgium only Trend of impairments in credit portfolio
Write-downs vs.
risk-weighted assets
0.24%
0.23%
0.09%
Target: <0.25% over-the-cycle
2002
2003
2004

19. Focus on revenue growth strategy
(*) Core retail Belgium only
Growth strategy
Revenue growth (*) in period partly driven by positive pricing effects.
Revenue growth (*) in period driven by positive volume effects and negative price effects
½ due to positive pricing effects
Margin pressure
Ambition: maintain growth trend
Achieved +5% p.a. revenue growth

20. Growth in the savings & investments field
How to grow within a mature market?
Growth strategy 1
Attracting new funds
Market potential
Proven performance
Estimated nominal GDP growth rate
Market share of mutual funds
Savings rate
New funds attracted – in bn

21. Growth in the insurance field
How to grow within a mature market?
Growth strategy 1 2
Attracting new funds
Insurance
High internal potential
Proven performance
Premium growth, non-life
X-sell results

22. Growth in the lending field
How to grow within a mature market?
Growth
strategy 3
Lending
Total market – Mortgage loans
CAGR 9%
Source: NBB
Small business loans:
Moderate growth trend, in line with nominal GDP growth (+4.2% in 2005)
But, still additional growth potential via raising amounts of advances in current account (with higher margins) and increasing non-credit-linked revenues
High expectations for growth in retail lending
Mortage loans: strong growth on the back of:
steep rise in Belgian real estate prices
real estate prices still below level of other European markets 1 2
Attracting new funds
Insurance

23. How to grow within a mature market?
Obstacles to growth
How to grow within a mature market?
Growth strategy 1 2 3
Attracting new funds
Insurance
Lending
Sharper price competition !
Threats to growth according to analysts
Nos. 1 & 2 based on ranking
Hardening credit-pricing cycle
Small busniess loans
Mortgages

24. How to grow within a mature market?
Catalysts for growth
How to grow within a mature market?
Growth strategy 1 2 3
Attracting new funds
Insurance
Lending
Enhancing customer satisfaction
Top-4 bancassurers only

25. Foto gebouw 3
Private banking in Belgium

26. Business model in Belgium
KBC PB is a seperate channel for distribution of wealth management services to HNWI
Focus: customers with 1-5m of investible assets. Downflow of below-threshold clients to retail (> 65% are (ex-)entrepreneurs and owners of own business or practice; others are upper middle management/senior executives, heirs to a large fortune, etc.)
19 dedicated branches focused on onshore private banking; broad local market representation (in the Northern part of Belgium)
Network-led model; private banking under corporate brand with growth primarily through identifying and converting clients from the retail and corporate network
Full-service banking (in partnership with the retail business*) - broad range of wealth management products and services
Controlled open architecture: > 90% investment management in-house, with an emphasis on product design (structured products, particularly capital guaranteed products) and quantitative techniques
* PB clients are served by retail branches for their standard banking needs

27. Leveraging links with retail and corporate branches
Existing client relationships offer a high degree of opportunity
Acquisition focus
Retail clients < 1 m with potential
Prospects known to corporate banches
Prospects known to retail branches
Retail clients > 1 m
Other prospects
Retail clients > 2.5 m
Acquisition costs
KBC is primary bank (e.g. SME) KBC is second bank (e.g. SME)
low
high

28. Key performance figures
Growth of relationships base
Growth primarily from retail trade-up*
CAGR 9%
* New clients with former retail relationship

29. Key performance figures
Client asset growth (bn)
Contribution (bn; pre-tax)
Cost/income

30. Key performance figures
Customer satisfaction
(Very) satisfied
Exits to competition
(Very) good
Yes
97%
94%
1.6% % ,5%
91%
Are you satisfied with your CRO’s competence level?
How do you rate your experience with PB overall?
Would you describe your CRO as proactive?
Source: Annual customer survey 2004; response rate: 21% of all PB clients

31. Foto gebouw 4
Synergies for private banking within KBC Group

32. KBL European Private Bankers
Quick reminder
Until 31 Dec. 04:
As of 01 Jan. 05:
Almanij
KBC Bank & Insurance
KBL European Private Bankers
Gevaert
KBC Bank
KBC Insurance
KBC Asset Management
KBC Group NV
KBC Bank
KBC Insurance
KBC AM
KBL European Private Bankers
Gevaert

33. * epb: European private banking
KBC Group’s epb* today
Presence in 10 countries outside Belgium, multi-domestic positioning
No link with traditional banking network (contrary to the network-led model in Belgium)
Highly based on open architecture (though product penetration of in-house products to increase within new KBC Group)
* epb: European private banking

34. Key financials of epb* Net profit Assets under management Tier-1 ratio
In m EUR (Lux GAAP)
In bn EUR
CAGR +6%
CAGR +6%
Tier-1 ratio
Return on equity
Lux GAAP
Lux GAAP
* Reminder: figures excl. KBC PB in Belgium

35. Synergies within enlarged KBC Group
Synergies via integrating epb with KBC PB (Belgium) and KBC AM
Total synergy programme of NPV 500 m (net of restructuring and capital costs, post- tax)
Estimated capital and restructuring costs are ca. 50m over 5 years
Recurring pre-tax benefits of 75 m (peak level), half of which can be realized by 2006
Cashflow positive every year
40% revenue and 60% cost (and cost avoidance) benefits
All synergies reach their peak by (some faster than others)
Portfolio of 32 synergies, 19 ‘large’ and 13 ‘small’
Synergy benefit, in m (see note below)
Revenue
Cost + Cost Avoidance
Note: ‘Synergy benefit’ described throughout as peak recurring annual increase in pre-tax bottom-line result vs. base business

36. KBC Group