1. KBC Bank & Insurance Group Company presentation Autumn 2004 www.kbc.com

2. 2 Table of contents 1.Company profile 2.Strategy and earnings drivers 3.Financial highlights year-to-date 4.Additional information

3. Company profile Foto gebouw 1

4. 4 Top-20 player in Euroland banking 1 BNP Paribas (35 bn) 1 BNP Paribas (45 bn) 1 BNP Paribas (43 bn) 2 BSCH (31bn) 2 BSCH (45 bn) 2 BSCH (37 bn) 3 BBVA (29 bn) 3 Deutsche Bank (38 bn) 3 BBVA (36 bn) 4 Deutsche Bank (26bn) 4 BBVA (35 bn) 4 Société Générale (30 bn) 5 ABN AMRO (25bn) 5 Société Gén. (31 bn) 5 Deutsche Bank (30 bn) 6 Société Gén. (24 bn) 6 ABN AMRO (30 bn) 6 Crédit Agricole (29 bn) 7 Unicredit (24 bn) 7 Crédit Agricole (28 bn) 7 ABN AMRO (28 bn) 8 Fortis (22 bn) 8 Unicredit (27 bn) 8 Unicredit (24 bn) 9 Crédit Agricole (14 bn) 9 Fortis (21 bn) 9 Fortis (23 bn) 10 Dexia (14 bn) 10 Intesa BCI (18 bn) 10 Intesa BCI (17 bn) 11 Intesa BCI (12 bn) 11 Dexia (16 bn) 11 Dexia (16 bn) 12 Allied Irish Banks (12bn) 12 Sanpaolo IMI (15 bn) 12 KBC (15 bn) 13 Bank of Ireland (10 bn) 13 KBC (11 bn) 13 Sanpaolo IMI (13 bn) 14 KBC (9 bn) 14 Bco Popular (11 bn) 14 Allied Irish Banks (11 bn) 15 SanPaolo IMI (9 bn) 15 Allied Irish Banks (11 bn) 15 HVB (10 bn) 16 Banco Popular (8 bn) 16 Bank of Ireland (11 bn) 16 Commerzbank (8 bn) 17 HVB (7 bn) 17 HVB (10 bn) 17 Erste Bank (8 bn) 18 Mediobanca (6 bn) 18 Commerzbank (9 bn) 18 Bank Austria (8 bn) 19 Bca MPS (6 bn) 19 Mediobanca (7 bn) 19 Mediobanca (7 bn) 20 Bco Popular (5 bn) 20 Bca MPS (6 bn) 20 Bca MPS (6 bn) Dec 2002 Dec 2003 Aug 2004 DJ Euro Stoxx Banks constituents Market cap ranking

5. 5 Top-3 bancassurer in Belgium Market share: 31% (1 st ) 19% (2 nd ) 13% (3 rd ) Mutual funds Mortgages Business loans Non-life insurance Market share: 24% (2 nd ) 22% (2 nd ) 9% (4 th ) Individual LifeSavings deposits

6. 6 Top-3 player in the CEE region 10 largest international banks in CEE (total assets) : * KBC limits its presence to the 5 new EU-countries of CEE Source: RZB – assets as at 31 Dec 03, ownership structure as at 30 Jun 04 *

7. 7 Business model extended to CEE-5 Approx. 3.6 bn EUR of capital invested in the region in building a prominent position, especially in banking Substantial untapped potential in a fast-growing market with roughly 65 m inhabitants Bank ranking on the basis of total assets Bank ranking Belgium3 rd CEE: - Czech Rep. - Slovakia - Hungary - Poland - Slovenia 1 st 1 st 4 th 2 nd 8 th 1 st 18 842 26 765

8. 8 Group profile Credit portfolio incl. corporate bonds and loans to banks, excl. reverse repos. Gross revenue from CEE excl. profit on excess capital, gross profit in AM after distribution fee allocated to retail division CEE 18 bn Other 8 bn W. Europe 20 bn US 4 bn Belgium, retail 40 bn Belgium, ME & corporates 15 bn Asset managment 3 % Other 11 % CEE 23 % Belgium, retail 38% Belgium, ME & corporates 8% Financial markets 13 % International corporate 6 % Breakdown per business segment Credit portfolio Gross revenue 1H 2004 30 Jun 04 Besides the core businesses in Belgium and CEE, activities include also selected areas of corporate and investment banking. These activities have been gradually scaled down, as investments in CEE have increased.

9. 9 Key business strengths Prominent market positions in home markets, both in Belgium and in CEE Successful bancassurance concept and highly performing retail asset manager Growth and cost efficiency potential in CEE Good Group profitability track record Geographical and business diversification and all main franchises within the EU Adequately provisioned balance sheet Stable core shareholders (long term) and availability of capital

10. 10 Solid group performance Profitability Efficiency Solvency Tier-1, banking Solvency, insurance Cost/income, banking Combined ratio,insurance Return on equity Growth in EPS 8.8% 320% 65% 101% 13% Dec 02 +1% 9.5% 316% 65% 95% 13% Dec 03 +8% Combined ratio, excluding reinsurance. Solvency insurance including unrealized gains. 9.4% 322% 59% 95% 18% +40% Jun 04 = = + = + + Trend Improving profitability. Solid solvency.

11. 11 Stable shareholder structure Cera Group Other stable shareholders MRBB Almanij Stock Market Gevaert Private equity KBC Bank & Insurance KBL Private bank ± 17% ± 16% ± 38% ± 79% 100% ± 67% ± 30% ± 31% Almanij is an investment company of which KBC constitutes ± 75% of the assets. It is committed to supporting KBC in the long run and aims to remain a majority shareholder. Core shareholders include Cera (a co-operative with close to half a million individual holders), a syndicate of industrialist families and a farmers association (MRBB). These were shareholders in the companies that merged to form KBC. Almanij promotes a culture of no interference in business management.

12. 12 Steadily growing dividend Policy of paying a steadily growing dividend Dividend up 9 % per year over the past 5 years Average cash payout : 40-45% Payout may be raised to maintain dividend in case of drop in profit 989900010203 Pay out 41%38%36%44% 45% Yield1.8%2.1%3.1%3.6%4.2%4.9% Yield = gross DPS versus average share price. Figures for 2000 excl. capital gain on CCF

13. 13 Attractive shareholder return, outperforming market indexes Return at end July 2004, dividend reinvested

14. 14 Valuation still not too demanding related to other CEE exposed banks Situation at 15 August, 2004 P/E 04-05 CEE banks (1) 12.4 Euro zone banks (2) 11.8 CEE exposed banks (3) 11.7 KBC 10.1 BEL banks (4) 9.3 Unweighted IBES data : (1) OTP, Komercni, Pekao, BPH PBK, BRE (2) Top 20 of DJ Euro Stoxx banks (3) BA-CA, Erste, Unicredito, Soc Gen, Intesa BCI (4) Fortis, Dexia Key figures : Share price : 46.8 EUR Net Asset Value : 37.2 EUR EPS 2003: 3.68 EUR Analysts estimates : EPS 2004 consensus : 4.44 EPS 2005 consensus : 4.78 P/E forward 2 years : 10.1 Recommendations : Positive : 41% Neutral : 32% Negative : 27% Valuation relative to peer group : EPS consensus forecasts for KBC: KBC (2004) and I.B.E.S. (2005)

15. Strategy and earnings drivers Foto gebouw 2

16. 16 Strategy and earnings drivers 1. From an international perspective, Belgium is a somewhat underestimated market 2. The expanded horizons in ‘emerging/converging’ Europe will fuel top-line growth at acceptable risk Multiple OPPORTUNITIES to unlock value

17. 17 Savings rate (15%) and personal financial assets/capita (77 000 EUR) amongst the highest in Europe/the world Consolidated banking market facilitating more adequatepricing than in the past and margins at fairer levels Market highly ‘receptive’ to bancassurance, allowing intensive cross-selling of insurance products A C Underestimated potential in Belgium Cost-to-income levels still somewhat on the high side, allowing for further improvement in efficiency Sustained inflows of long-term savings money, driven by ageing population (private pension funding) GDP to slightly outpace euro zone average in 2004-05 B D E F Belgian market environment

18. 18 Historical presence in CEE: Niche markets Minority stakes Acquisitions in 5 markets, leveraged on EU accession Domestic mergers Management Technology Asset quality and risk management Bancassurance model Cost efficiency Transfer of knowhow Add-on acquisitions Organic growth Cross-selling Refinement of consolidation/ efficiency programs Cross-border integration/ synergies Profit growth Leading bancassurer delivering superior levels of return Consolidation Creation of new business platform Realisation full potential Achieved Advanced Started Promising potential in CEE

19. 19 Loans/deposits, in EUR (% growth ‘99 to ‘03 p.a.) Source: BA-CA Promising potential in CEE GDP per capita, in EUR (% growth ‘99 to ’03) Ac EU EU-15 LatAm Asia (ex China) China US

20. 20 Source : KBC Outlook, August 2004 Favourable trend in core markets GDP, real growth

21. 21 Core targets: Combined ratio excl. re-insurance Cost/income ratio, banking 58% Combined ratio, non-life insurance 95% EPS growth (4y CAGR)10% Return on equity, group 16% Return on allocated capital: - Retail in Belgium16% - Central and Eastern Europe17% - Corporates12% - Financial markets18% Tier-1, banking8% Solvency margin, insurance200% Demanding financial objectives Minimum targets for 2005

22. Financial highlights, year-to-date Foto gebouw 3

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24. 24 Q avg ‘02-’03 (269) 1H 04 profit : 869 m EUR + 44% year-on-year ROE : 18.5 % Proud to deliver strong earnings Net profit m EUR 316 259 300 304 287 152 280 256 Especially strong momentum in banking Banking: 786 m EUR Holding: - 12 m EUR Insurance: 95 m EUR 1H04 profit contribution 392 476 Highlights — Banking — Insurance — Areas of activity — Outlook

25. 25 Key points 2 nd quarter 2004 Net profit (476 m) at very high level, up 59% y-o-y and 21% q-o-q Strong operating result (+26% y-o-y) driven by robust top-line growth (+10%) (especially in banking) and strict cost control (+1%) Operating result up 5% q-o-q on the back of lower expenses (-3%) and the very low claims ratio in non-life (57%) Record level in life premium income in Belgium (1 030 m) Sustained low credit risk charges (77 m), including Poland (8 m) Strong rebound of the profit contribution from CEE operations (up 51% q-o-q and multiple 6 y-o-y, bringing ROAC for the quarter to 18 %) In line with previous quarter: highly satisfying return of asset management, corporates and financial markets. Return of retail activities in Belgium somewhat less favourable than in previous quarters. Exceptional write-back of provisions (52 m), mainly thanks to a favourable court’s decision on a tax-issue Highlights — Banking — Insurance — Areas of activity — Outlook

26. 26 Key points 1 st half 2004 Substantial increase in profitability - net profit (869 m) up 44% y-o-y Very strong underlying revenue growth, especially in banking Top-line growth in banking: +8% Organic premium growth in insurance: +11%, but pressure on investment yields Expenses well under control and risk charges low Cost/income ratio, banking at 59% Loan loss ratio, banking at 21bp Combined ratio (non-life) at 94% No net support impact of ‘exceptional items’ Extraordinary income (51 m), mainly the capital gain on ‘Belgacom’ Significant provisioning for various ‘other liabilities and charges’ (net -28 m after write-back of ‘tax provision‘ in Q2) In insurance: impairments on equity portfolio (net -25 m after use of provision for financial risks and gains on investment securities) Well on track to deliver on all our financial targets Highlights — Banking — Insurance — Areas of activity — Outlook

27. 27 Key points 1 st half 2004 High profitability Efficiency Controlled risks Solid solvency Tier-1, banking Solvency, insurance Loan loss ratio, banking Claims ratio, non-life Cost/income, banking Expense ratio, non-life Return on equity Growth in EPS Highlights — Banking — Insurance — Areas of activity — Outlook 9.4% 322% 0.21% 63% 59% 31% 18% +40% 1H 04 9.5% 316% 0.71% 66% 65% 30% 13% +8% 8.0% 200% 58% 16% +10% FY 03 Target

28. 28 Impact of consolidation changes Main changes in scope of consolidation: Full consolidation of WARTA Insurance (Poland) as of 1Q 2004 (previously equity method) Premium income: 195 m EUR(1H04),4/5 non-life (22% of non-life total of the Group) Impact on Group top-line (1H04): + 1.9% Impact on bottom-line (1H04): - 0.6% Highlights — Banking — Insurance — Areas of activity — Outlook

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30. 30 459 m Solid quality of banking earnings Underlying revenue growth +10% Expenses - 1% Capital gains - 26% + 275 m - 48 m Net profit 1H 2003 Year-on-year comparison Positive impact of operational items: + 249 m EUR + 22 m Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004

31. 31 Strong growth of operational income Total 1H04 income up 8% y-o-y : Interest income up 7%, driven by increased deposit spreads. Net interest margin up y-o-y from 1.63% to 1.73% Sustained high commission income (+4%), partly on the back of income growth out of corporate finance and investment management Robust trading revenue (+43%) after somewhat depressed 2003 numbers Capital gains on investments (4% of total) down 26% y-o-y Q2 lower than Q1 mainly due to seasonal effect for commissions and lower trading income Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004 1452 1416 1364 1424 Quarterly income (m EUR) 1522 1572

32. 32 * excl. reverse repo’s Asset growth Accelerating growth of customer loan book: ytd up 5% * (=> 10% annualised) Sustained considerable growth in mortgages: ytd up 8% Belgium + 4% Hungary +21% Czech Rep. +18% Poland+11% Sound growth in corporate lending, in line with economic cycle: ytd up 4% * (o/w in CEE: Hungary and C/SR: both +8%, Poland –9%) Risk-weighted assets (97 bn) ytd up 2% Customer loans (in bn EUR) 90 98 Highlights — Banking — Insurance — Areas of activity — Outlook

33. 33 Development of interest margins Interest margin, Group Spread on new loans, Belgium Highlights — Banking — Insurance — Areas of activity — Outlook

34. 34 ALM TRANSFORMATION POSITION Basis-Point-Value 0 10 20 30 40 50 60 70 80 90 May 02Jul 02Sep 02Nov 02Jan 03Mar 03May 03Jul 03Sep 03Nov 03Jan 04Mar 04May 04 (in mln. EUR) RiskQuarterly averagesLimit Sensitivity to changes in interest rates The BPV is the expected change in the market value of the banking book if interests were to fall by 10 bp across the entire curve The interest rate sensitivity has been greatly reduced over time Highlights — Banking — Insurance — Areas of activity — Outlook

35. 35 The interest rate risk of the customer loan book is fully (macro) hedged The interest rate risk is mainly related to the “excess liquidity” (the excess of the customer funding base that is not invested in loans). This deposit base (without notice) is cyclically re- invested in bonds (duration: 3 years). The impact of an increase in interest rates (0.25% parallel shift of the yield curve): On the value of the banking book (BPV): -37 m On the unrealized gains of the bonds portfolio in the banking book: -284 m On the P/L: highly dependent on the need for repricing of the savings deposits (pricing quite inelastic to changes of market rates) Sensitivity to changes in interest rates Highlights — Banking — Insurance — Areas of activity — Outlook

36. 36 Expenses well under control Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004 929 931 897 938 Quarterly expenses (m EUR) 910 928 1H04 cost basis down 1% y-o-y (-23 m) Q2 lower than Q1, though mainly on the back of lower trading income In Belgium: 1H04 -3% y-o-y (-34 m). Headcount continued to reduce at 440 FTE ytd (y-o-y -860 m or -7%) CEE: 1H04 -1% y-o-y (-7m). 80% of planned headcount reduction achieved in CR and >100% in Poland Elsewhere: 1H04 +7% (+18 m), mainly related to trading bonuses Cost/income ratio significantly improved to 59% from 65%

37. 37 The joint venture with Rabobank Up front investment charge : + procurement of core system, customisation & plug-in + staff redundancy - cost saving for development of own platform Recurring cost savings: 15-20 m per year Expected payback period of 2-3 yr Highlights — Banking — Insurance — Areas of activity — Outlook Shared platform for securities processing

38. 38 Headcount development in Belgium Since end 2001 till mid 2004 : ‘zero hiring’ policy: In principle, no new entrants Exception made for IT and very specific jobs: (111 in ‘02, 58 in ‘03 and 21 in ‘04) Headcount down with 2 200 FTE without forced redundancies As of 2005 : New hirings: 300-400 p.a. (to start gradually as of Oct-’04) Trend to increased part-time employment and ‘longer’ (higher age) employment (gradual closing down of ‘early retirement concept’) Headcount expected to remain more or less stable Highlights — Banking — Insurance — Areas of activity — Outlook

39. 39 Net specific provisions to average gross customer loans Limited loan provisioning Loan loss provisions in 1H04 at very low level,, down 45% y-o-y (charge of 21 bp versus 71 bp for FY03) Very low loan loss charges again in Belgium (16 bp), in C/SR (13 bp, excl. recuperation of written-off loans) and in the international corporate loan book (18 bp) Loan losses in Poland only 12 m (charge of 64 bp, below market average) Somewhat higher loan loss charge in Hungary (83 bp, excl. the write-back of a general provision), on the back of a small number of problem loans (no general deterioration of asset quality expected) 79 141 204 Highlights — Banking — Insurance — Areas of activity — Outlook 252 …43 Quarterly loan provisions (m EUR) 1H 2004 77

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41. 41 1H 2004 Continued fast growth of premiums Highlights — Banking — Insurance — Areas of activity — Outlook Quarterly premium income (m EUR) 712 599 1219 957 1245 1373 Sustained robust growth in Life (mainly in Belgium) In organic terms, up again in 1H04: +13% y-o-y (record level of 1.9 bn EUR) Higher interest for linked products in Q1 reversed in Q2 (38% of 1H total) Belgian life market expected to continue to outgrow GDP driven by ageing population Non-life: in organic terms up 5% Primary (direct) business: +8% Drop in re-insurance: -8% 32% of premium volume is currently realized in CEE

42. 42 Favourable underwriting performance in non-life 1H04 combined ratio at good level (94%) Combined ratio down 1 pp y-o-y on the back of lower claims charges, especially in CEE and R/I Claims ratio CEE down y-o-y to 62% from 75% Claims ratio R/I down to 66% from 76% Much more favourable claims environment in Q2, strong driver for q-o-q insurance earnings growth: In Belgium: claims charges q-o-q down 42 m (ratio 56% vs 69%) In CEE (esp. CR and Poland): claims charges q-o-q down 12 m (ratio 55% vs 69%) Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004 94% 95% 106% 107% 104% 99%

43. 43 Enhancing cross-selling of insurance products in Belgium Banking Insurance 22% 66% 12% Cross-selling small business customers Premium income non-life (1999 = 100) Highlights — Banking — Insurance — Areas of activity — Outlook Untapped potential, especially for SME customers (cross-selling ratio at 22 % versus 40 % for individuals) Non-life growth via banking network materially higher than traditional channels (though impact on market share still moderate) KBC- bank branches Total market - traditional network Total market - bank branches * 6 months 2004

44. 44 1H 031H 04 Interest yield5.3%4.9% Return on shares *7.7%6.7% Total6.0%5.4% Investment return down to 5.4% from 6.0% * Corresponds for 2004 with 7.3% of the market value of the portfolio (= 10 years’ adjusted average) Highlights — Banking — Insurance — Areas of activity — Outlook Insurance business suffering from low investment yields

45. 45 Adverse P/L-impact (-163 m) partly compensated by write-back of provision for financial risks (+93 m) and capital gains (+44 m) Additional impairment of 44 m expected in H2 (mainly in Q3) (market level of Aug 2004) In m EUR1H 04 Value adjustments, shares-163 Transfer from financial provision+93 Non-recurring capital gains+44 Other- Total non-recurring result-25 Highlights — Banking — Insurance — Areas of activity — Outlook Insurance business suffering from impairments on equity portfolio

46. 46 Investment strategy,insurance business Highlights — Banking — Insurance — Areas of activity — Outlook Asset allocation, outstanding portfolio Fixed-incomeSharesReal estate Outstanding, EUR9 bn3 bn0.3 bn Rating:AAA30% AA58% A9% BBB3% Below BBB0% Currency:EUR99%91% USD-4% Issuer:Governments64% Financials31%30% Listed:90%94% Duration:± 6 yr Portfolio Belgium = 75% of total

47. 47 Investment strategy, insurance business Basic asset allocation new premium inflow Fixed- income EquityReal Estate Non-linked life - periodic premiums75%20%5% - single premiums90%10%0% Non-life63%32%5% Tactical over/underweighting typically within 5-10% deviation margin. Further limits are related to currency, type and rating of counterparty, type and liquidity of security, … Inflow Belgium = 80% of total Highlights — Banking — Insurance — Areas of activity — Outlook

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49. 49 1 352812115476453Gross operating income (m) +4%+19%+1%+9%+18%(% yoy) 40222785286181Net operating income (m) +13%+46%+1%+17%+30%(% yoy) 22614971193129Net profit, group share (m) -5%+313%+8%+136%+75%(% yoy) 34.215.4-31.910.9Risk-weighted assets (bn) +6%+2%--2%+ 7%(% yoy) 3.12.4-2.01.1Allocated capital (bn) +9%+12%-- 1%+2%(% yoy) 15% -20%23%ROAC Areas of activity RetailCEE AM CorporateMarkets Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004

50. 50 Robust performance in Belgian retail Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution (m EUR) 122 117 108 125 124 1H 2004 1H04 at a glance : Revenue Expenses Credit risk 102 1H profit contribution: 226 m (ROAC 15%), down 5% due to a 55% drop in contribution from insurance Banking profit up 57% y-o-y driven by strong income growth (+9%), maintained cost control (C/I down from 80 % to 74 %) and sustained low level of problem loans (loan loss ratio 5 bp). Contribution from subsegment ‘private banking’ up from 10 to 20 m. Although strong premium income, pressure on insurance contribution due to higher claims ratio (63% vs 60% in 1H 03), especially in Q1, and lower investment yields Q2 less favourable in banking (partly seasonal), but much better in insurance (low claims charges)

51. 51 CR & SR : strong contribution to Group profit driven by a) robust revenue growth in retail and treasury (improved ‘interest-rate environment’) and b) the sustained low loan loss ratio (13 bp, excl. recuperation of written-off loans) Hungary : strong return on the back of favourable revenue development (but also including a one-off positive impact from a credit provision write-back) Poland : "in black again" thanks to a) progress in the cost reduction program, bringing expenses down 6%* y-o-y and b) much lower loan losses (12 m) Contribution to group: profit excl. minority interests, excl. return on excess capital and incl. allocated Group overhead. In m EUR Stand- alone net profit Contribution to Group Contribution % yoy Return on allocated capital Return on invested capital CR / SR 11992+ 17%19%13% Hungary 4318+ 25%21%16% Poland 1310-7%4% Slovenia 196+ 35%-3% Highlights — Banking — Insurance — Areas of activity — Outlook * Adjusted for currency effect Expanded horizons in CEE paying off Banking results – 1H04

52. 52 CEE CSOBK&H KB NLBInsurance Expanded horizons in CEE paying off Highlights — Banking — Insurance — Areas of activity — Outlook 1H 04 (m EUR, % chg yoy) 392 (+17%) 186 (+15%) 148 (-5%) 115Gross operating income -233 (+7%) -134 (+11%) -121 (-6%) -92General Expenses +5-12-Provisions -45-8- 2Taxes 119 (+12%) 43 (+42%) 13 (n.r.) 19 (+37%) 21Stand-alone profit -16-13-+4Adjustments, o/w yield on excess capital -11-12-2-13-3Minorities 92 (+17%) 18 (+25%) 10 (n.r.) 6 (+35%) 22 (n.r.) Profit contribution to Group 19%21%7%-10%ROAC

53. 53 Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution : 71 m (after allocation of distribution fee to retail business), up 8% thanks to higher AUM, cost control and (structural) lower tax pressure Assets (97 bn) up 14% y-o-y (of which ½ net inflow) Mutual funds (47 bn) : +13% Private assets (17 bn) : +20% Institutional assets (21 bn) : +13% Group assets (11 bn): +11% Assets in 2Q04 up 3 % q-o-q (of which 85% net inflow) and in 1H04 up 9 % ytd (of which 60% net inflow) Performing asset management activities Profit contribution (m EUR) Belgium : 86 % CEE : 5 % 35 31 34 42 34 1H 2004 1H04 at a glance : Revenue Expenses 37

54. 54 1H profit contribution: 193 m, up 136% (ROAC 20%) mainly driven by lower loan loss provisions (and increased revenue) Turnaround in banking (started in 2H03): Substantially lower cost of risk (21 bp in 1H04 versus 65 bp in 1H03) Gross income margin up y-o-y from 2.4% to 2.7% (increased fee business) Cost/income down from 39% to 36 % Profit increase most remarkable in ‘ME/corporate Belgium’, ‘corporate US’ and the global structured finance activities. Better return in re-insurance thanks to improved underwriting performance (CR 92 % versus 100% in 1H03) Profit contribution (m EUR) Corporate activities stepping up 39 62 90 100 43 Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004 1H04 at a glance : Revenue Expenses Credit risk 93

55. 55 1H04 profit contribution: 129 m, up 75% (ROAC 23%) mainly driven by strong income growth Sustained strong performance in M/CM Strong rebound in in equity derivatives business (up 153% y-o-y) driven by significant growth in trading income, the non-recurrence of negative MtM (for long derivatives taken in 2003) and additional commission income out of (structured) investment management In line with strategic focus, modest profit amount for cash equity business (7 m) Q2 profit apparantly similar to Q1, though thanks to a 15 m ‘exceptional’. Underlying trend down –35% q-o-q to 51 m (lower income in 2nd half of Q2) Profit contribution (m EUR) Good performance in ‘financial markets’ 41 33 41 7 64 Highlights — Banking — Insurance — Areas of activity — Outlook 1H 2004 1H04 at a glance : Revenue Expenses 66

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57. 57 Outlook 2004 Strong 1H04 revenue momentum is likely to slowdown in 2H04 2H04 loan loss level expected to be much lower than in 2H03 Commitment to sustained strict cost and underwriting discipline in 2H04 On balance, FY04 net earnings are expected to be at least 20% higher than FY03 If the current economic and financial climate proves to be more or less sustainable Assuming stable stock exchange levels Highlights — Banking — Insurance — Areas of activity — Outlook

58. Additional information Foto gebouw 4

59. 59 To improve quality of customer relationships To increase commercial productivity Core targets : Key action plans : Major achievements : Cross-selling of insurance products Product simplification (program to reduce product range) Co-sourcing (economies of scale) Encouraging use of electronic channels Better CRM and strengthening of commercial processes Customer care program  Amount of outstanding deposits/loans per FTE up 13% y-o-y (end ‘03)  Premium income per FTE non-life up 19% y-o-y (end ‘03)  Customer facing time: 34% of time available in branch network, up from 23% in 1H03 Enhancing performance in Belgian retail

60. 60 BE No ofKBCRabo Trades p.a.± 3 m± 5 m Accounts± 620 000± 640 000 Shared processing platform for securities & derivatives NE Capital resources (50% KBC) Management & knowhow (50% KBC) Systems: - development by external provider - servicing by KBC Staff : 160 FTE (50% KBC) 1H 2005 1H 2006 Platform and capital structure open for third-parties Including confirmation, settlement, custody and reconciliation, excluding commercial clearing and processing of securities in physical form Headcount KBC to be reduced with ± 280 FTE in 2006 Belgian banking activities Enhancing cost efficiency in Belgium The joint venture with Rabobank

61. 61 Developments in 1HEnhanced performance going forward Strengthening top management in KB, WARTA, NLB Planned headcount reductions completed in Poland (ahead of plan) and at 80% in CR Further efforts for cost control in CR and Hungary  Sale of KB Ukraïne and of KB Lithuania (pending), focus on domestic market Capital increase in KB (Poland) Upstream of super dividend of 190 m (at CSOB in which 1.6 bn invested) Closing of EU’s initial probe on state aid in CR  High economic growth  Increasing penetration of financial products driven by rising purchasing power  Enhanced commercial clout  Better cross selling of insurance products  Further focus on operational efficiency  Intensified quest for Group synergies (leveraging cross border our scale in CEE) Expanded horizons in CEE paying off Central Europe 2 nd home market

62. 62 Update on the restructuring in Poland Customer retention program Segmentation of the branch network Intensified transfer of KBC product know-how Acceleration of bancassurance with WARTA Centralization of business processes and back-office functions Outscourcing of cash handling and other “non core” functions Workforce reduction (1 200 FTE) completed Clear responsibilities for new ‘bad bank’ division Close monitoring of loan portolio Closing of capital increase (130 m) Credit recovery acceleration Divesture of non-core assets (Ukraine, Lithuania) Key achievements in 1H 04: Profitability turnaround + Volumes - Costs - Risk + Capital

63. 63 Market value of securities portfolio significantly above book value In m EUR * Book value Market value Non- realised Fixed-income49 59350 7241 131 - Banking40 68041 514834 - Insurance8 9139 210297 Equity4 7465 099353 - Banking1 6361 808172 - Insurance3 1103 291181 30 June 2004 A parallel interest rate rise of 25 bp has an adverse impact on the market value of bonds of 375 m of which 284 m in the banking book. * Excluding trading portfolio

64. 64 Non-audited simulation based on 31/12/2003 figures. Impact partly to be reported in opening balance sheet per 1 Jan 2004 and partly per 1 Jan 2005. For more detailed information, visit www.kbc.com Simulated impact on own equity at Dec 2003m EUR Profit appropriation+ 498 Value adjustment of financial instruments (IAS 32 / 39)+272 Reversal of provisions (IAS 4 / 37)+ 215 Correction of depreciations of tangible assets and capitalisation of internally generated software (IAS 16/38) + 34 Inclusion of special purpose vehicles in consolidation scope+ 10 Reclassification from operational to financial leasing (IAS 17)+ 9 Adjustment of deferred tax assets and liabilities (IAS 12)+ 3 Impairment testing of goodwill (IAS 36) - 0 Translation differences- 2 Underfunding of defined benefit pension plans (IAS 19)- 402 Total equity correction+ 637 Impact of IFRS

65. 65 Impact from Basle II regulation Updated quantitative impact simulation – 1st half 2004 : required capital compared with current required capital level : ApproachCredit riskTotal risk IRB Foundation 89 % 96 % Strong positive impact from the lower weight of retail/SME credit portfolio Capital requirement for CEE still need to be re-verified

66. 66 Emile CelisChristian DefrancqJan VanhevelGuido Segers Herman AgneessensAndré BergenWilly DuronFrans Florquin Senior management

67. 67 Group CEO Head of insurance business Deputy Group CEO Head of banking business Co-ordination CEE Retail bancassurance HRM and Communication Group CFRO Transaction processing Non-life & reinsurance Claims management Corporate banking West-European, US & SE Asian bank network Retail credit Information technology Insurance subsidiaries Treasury & markets Asset Management International credit Emile CelisChristian DefrancqJan VanhevelGuido Segers Herman AgneessensAndré BergenWilly DuronFrans Florquin Senior management