2003 KBC Bank & Insurance Group Investor presentation Winter 2003 Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Table of contents 1.Shareholder information 2.Company profile 3.Strategy overview 4.Business highlights, year-to-date 5.Financial highlights, year-to-date 6.Additional information 7.Contact co-ordinates

2003 Shareholder information Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Relatively low share price related to book value and earnings capactity Oct 2003 Closing price EPS P/E (based on closing) Net Asset Value P/NAV Key figures N° of shares outstanding : m Analyst forecasts (September 2003) EPS 2003 consensus: 3.59 EPS 2004 consensus: 4.11 P/E (average 2 years): 9.6 Recommendations : Positive : 14 Neutral : 11 Negative : 2

KBC Bank & Insurance Group Shareholder structure guaranteeing long-term strategic perspective CERA Holding & Almancora Other stable shareholders MRBB Almanij Stock Market Gevaert Private equity KBC Bank & Insurance KBL Private bank ± 17% ± 16% ± 38% ± 78% 100% ± 68% ± 26% ± 30% Number 11 in Euro ranking KBC is a middle-sized financial company in Europe with a market cap of ± 11 bn (float: ± 3.3 bn) Almanij is an investment company (of which KBC is ± 75% of the assets) committed to support KBC on the long-term Core holders include the Ceragroup (co-operative investment company), a farmers association (MRBB) and a syndicate of industrialist families, all of which KBC is a major asset As of end of 18 November 2003

KBC Bank & Insurance Group Dividend policy aiming steady and growing dividend %38%36%44% 1.8%2.1%3.1%3.6%4.2% EPS DPS Payout Yield (*) (*) Gross DPS versus average share price Board of directors’ preference 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

2003 Company profile Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Top bancassurer in Belgium: 3 rd bank (market share: ± 22 %) 1 st asset manager (31% in retail funds) 3 rd retail insurer (13% L&H, 9% P&C) Successful expansion in the 5 most converged countries in ‘Emerging Europe’ growth market of ± 65 mln inhabitants ± 3 bn capital invested prominent/leading position in banking in each country Focused/niche activities in corporate and investment banking As investments in CE progressed, CIB activities have been downsized. Successful in core businesses KEY FIGURES: Total assets: EUR ±210 bn Net profit ‘02: 1.03 bn ROE ’02: 12.7 % Headcount: ± Customers: ± 10 m Credit rating: AA-, AA3, A+ Share in allocated capital (excl. goodwill)

KBC Bank & Insurance Group Leading player in Central Europe BankingInsurance 25% 30% share in group profit (left) and in allocated capital (right), excl. group items Slovakia: Market share: 6% (no 4) Czech Republic: Market share: 18% (no 2) Total assets: 19 bn Profit/ROE ‘02: 199m (16%) Hungary: Market share: 12% (no 2) Total assets: 5 bn Profit/ROE ‘02: 48m (13%) Poland: Market share: 6% (no 7) Total assets: 6 bn Profit/ROE ‘02: -82m (-17%) Slovenia: Minority interest (34%) Market share: 45% (no 1) Total assets: 9 bn Czech Republic: Life M share: 9% (no 5) Non life M share: 4% (no 6) Assets/Profit ‘02: 0.6 bn/-12m Slovakia: Life M share: 4% (no 6) Non life M share: 2% (no 8) Assets/Profit ‘02: 40m/-1m Hungary: Life M share: 2% (no 14) Non life M share: 4% (no 6) Assets/Profit ‘02: 67m/2m Poland: Minority interest (40%), agreement to acquire 51 % Life M share: 1% (no 9) Non life M share: 14% (no 2) Total assets: 1.1 bn Slovenia: Startup life business

KBC Bank & Insurance Group Successful financial track record Financial track record ‘98-’02 Gross revenue growth: 13 % CAGR Life premium income doubled from 1.1 bn in ’98 to 2.2 in ‘02 (bancassurance model) Slowdown in cost efficiency: C/I up from 60 % in ’98 to 65 % in ’02. Although merger synergies in Belgium arose, acquisitions in CEE weighted on efficiency (synergies still to materialize) Since 2001:impact of the adverse financial climate (cost of risk, value losses) As a balance: EPS CAGR 6 % Other Interest income, banking Insurance (technical and investment income) Trading income Gross operating (left), net operating income (mid) and net profit (right) 19% Commission Revenue profile : (9M ‘03)

KBC Bank & Insurance Group Balanced credit portfolio C.E.E bn Sector breakdown Other W. Eur 19.9 bn 30 June 2003 Geographical breakdown Credit portfolio incl. corporate bonds and loans to banks, excl. reverse repo’s. US 6.9 bn Belgium 53.1 bn

KBC Bank & Insurance Group Performing asset manager Assets under management (bn EUR) Breakdown of Belgian retail funds: Equity: 12% Bonds & MM: 16% Mixed: 12% Capital guaranteed: 49% Other Market share, retail funds: Belgium :31% Czech Republic :23% Slovak Republic:11% Hungary :11% Belgium: 85 % Central Europe: 5 %

KBC Bank & Insurance Group SWOT analysis Opportunities Revenue growth and barely tapped cost cutting potential in CEE Availability of excess capital Unexploited synergy within Almanij group Relatively low share valuation Threats Consolidation wave in Europe, if any Strenghts Prominent market positions in home markets, both Belgium and CEE Geographical/business diversification High performing asset management and P&C insurance division Unique bancassurance concept Good overall profitability track recordand Very sound solvency levels Stable core shareholders (long term) Weaknesses Still high cost/income ratio Cost reduction management is rather difficult in Belgium Volatily related to level of gearing to equity markets CEE still a somewhat higher risk zone (although rapidly converging) Lack of stability and scale in Poland (work in progress) Moderate share liquidity

2003 Strategy overview Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Group strategy Key objectives Cross selling (bancassurance) in Belgium Reducing banking costs in Belgium Developing a second home market in CEE Achieved up-to-date Premium income boosted (life premiums doubled from 1.1 bn in ’98 to 2.2 in ’02 at al level of 85 % sold via bank outlets. Bank distribution of P&C growing faster then via traditional channels) Cost synergies thanks to integrated IT- infrastructure, reduced branches (-43%) and headcount (-12%) Solid franchise in the main 5 countries, renewed IT-systems and bancassurance model gradually set up. Cost reduction programs in progress. KBC is a bancassurer, focussing on local clients (individuals and SME), in Belgium and selected countries in (Central) Europe

KBC Bank & Insurance Group Earnings drivers Key objectives Cross selling (bancassurance) in Belgium Reducing banking costs in Belgium Future earnings drivers in Belgium Work in progress Bancassurance potential for SME (10% market share vs % in banking) Bancassurance potential for P&C (10% via bank channel vs 90 % in life) Cut of product complexity in retail (reduction by 70 % considered) Outscourcing of processing (payments) and IT (lmited scale), ) stronger pooling of backoffices of Belgian subsidiaries and co-sourcing with other banks, e.g. within the Almanij group in the field of private banking Rationalisation of headquarter workspace and other non FTE expenses

KBC Bank & Insurance Group Earnings drivers Key objectives Developing a second home market in CEE (more focus on commercial clout and operational efficiency) Work in progress Penetration of banking and AM products (deposits to GDP at 45%-80% of EU avg) Sales of insurance products via bank network (premium/capita <20% of EU) Business reorganising in CZ and PL -> 10-15% FTE downsizing by 2004 Cross border cost-sharing (payments systems, IT procurement, equity research, etc.) Strenghening of internal governance model and central management structure If acquisition opportunities arise, meeting the 10% market share in HU (insurance) and PL (banking) Future earnings drivers in Central and Eastern Europe

KBC Bank & Insurance Group Cost/income ratio, banking 58 % Combined ratio, P&C insurance (*) 95 % Tier-1, banking8 % Solvency, insurance (**) 200 % EPS growth (4y CAGR)10 % ROE, group 16 % ROAC Retail in Belgium16 % Central and Eastern Europe17 % Corporates12 % Markets18 % Demanding financial objectives Minimum targets 2005 (*) excl. re-insurance (**) incl. non-realised capital gains

2003 Year-to-date business highlights Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Increasing efficiency in Belgium Shift from external expansion towards commercial clout and operational efficiency in Central and Eastern Europe Further downscaling of less- strategic areas Clustering of retail branches Efficiency enhancement programs for the back office operations Outscourcing of transaction processing (payments) and IT (lmited scale) Reorganisation program in Poland and staff redcution in CR Instensifying cross-border initiatives in such areas as bank card technology Succesful start of bancassurance in Slovenia Strenghening management and controlling capacity at KBC HQ Selling of retail activities in the Netherlands, broker-related consumer lending in Belgium, non-strategic operations in CEE ( Ukraïn, Lithuania) Year-to-date business highlights

2003 Year-to-date financial highlights Website: Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) B:KB (Datastream) ISIN code: BE

KBC Bank & Insurance Group Third Quarter Highlights Average quarter 2002 In m EUR + 0% - 5% - 15% Relatively good performance (up 69 %) y-o-y + 69% + 15%

KBC Bank & Insurance Group Third Quarter Highlights Robust performance in Belgium Further improving level of costs in banking (ytd -5%) Pressure on interest margin reversed (Q/Q: 195 -> 210 bp) Low level of loan loss ratio (ytd 22 bp) and P&C (*) claims ratio (ytd 59 bp) Satisfactory result in most CEE markets ROAC (*) banking in Czech (CR) / Slovak republics (SR): ytd 17% ROAC for banking in Hungary: ytd 19% Improved performance by insurance operations (still limited scale) … but very poor performance of banking business in Poland (high loan loss provisions : 124 m in 3Q) (*) P&C : Property and Casualty insurance (**) Return on allocated capital

KBC Bank & Insurance Group Banking, income development Interest income : ytd  2% organic growth (margin : 6M 1.63%  9M 1.71%) Commission income : strong growth (capital-guaranteed funds) Lower trading income due to lower FX income and MtM of equity derivatives Considerable capital gains (ytd 196 m) on ‘free’ bond portfolio One-off ‘other income’ recorded in 2Q 02 and lower dividends Excluding capital gains, stable gross operating income despite difficult climate in 1H Total income -2% - 33% - 13% +16% -1% -30% - 12% Gross income ytd 9M 03

KBC Bank & Insurance Group Banking, expense development Belgium : Expenditures ytd :  5% (- 60 m) Headcount reduction : target of FTE met in Oct 03 Central and Eastern Europe : Expenditures ytd:  1% (6 m) Headcount reduction : Czech Republic :  460 FTE (48% of target) Poland : new target of  1 000/1200 FTE Continuing cost control Cost/Income ratio 9M 03: 65% (65% for FY 02) 9M 03: 45 % Belgium 9M 03: 27 % CEE excl. KB Ytd expenses (m EUR)

KBC Bank & Insurance Group Cost control in Belgium Although Belgium is a ‘mature’ market, further improvement in performance can be expected Merger (almost) completed, full extent of cost savings in bottom-line as of 1H 04 Lower cost/income ratio ahead, thanks to: Greater use of bancassurance (acceleration in P&C and to SME segment) Reduction in product complexity in retail (possibly by up to 70%) (*) Outsourcing of transaction processing (payments) and IT (limited scale) (implementation in progress) Stronger pooling of back-office activities of Belgian group companies Various other co-sourcing scenarios being considered Screening of real-estate-related costs (*) e.g. by reducing the wide range of credit cards, travellers’ cheques, mortgage loans, savings certificates, …

KBC Bank & Insurance Group Banking, loan provisions Customer loan book Sept. 03 (1) Loss ratio 9M 03 (2) Belgium49.0 bn0.22% Hungary3.7 bn0.32% CR / SR5.9 bn0.45% Poland4.0 bn6.09% International 27.6 bn0.51% Total90.3 bn0.60% Intensive clean-up of loan portfolio in Poland Quarterly loan loss provisions (m EUR) Loan loss ratio 9M 03: 0.60% (0.55 for FY 02) (1) Gross loans (2) Specific provisions - annualized

KBC Bank & Insurance Group Retail banking in Belgium Ytd profit 145 m (  189%), ROAC up to 10% from 3% Growth in income : ytd  6% (strong commission income and rebound in interest income) Cost reduction : ytd  5% Provisions (38 m EUR) remain low (16 bp on RWA (*) ) 2003 has seen a turnaround in Belgian retail on the back of robust commission business and cost savings Belgium 1 st home market +36% (*) Risk -weighted assets

KBC Bank & Insurance Group Banking in Central and Eastern Europe CR & SR : stable yoy in spite of pressure on margin, thanks to commission income and zero expense growth Hungary : income and volume growth more than set off pressure on margin Poland : difficult economic conditions and high loan loss provisions (195 m) (*) excl. minority interests, incl. 12 m provisions for KB related to 02 Satisfactory performance in Czech Republic,Slovakia and Hungary (though further improvement to be expected) Still basic restructuring work to do in Poland Central Europe 2 nd home market In m EUR (*) 9M 029M 03%ROAC 03 CR / SR %18% Hungary %19% Poland Slovenia

KBC Bank & Insurance Group Activities in Central and Eastern Europe Confidence in our strategy fundamentals : Satisfying year-to-date results in most markets (incl. insurance), excl. banking in Poland Within 6 months : all CEE affiliates (5 countries) operating in the EU Common shared optimism regarding rebound of economic cycle in ‘04 Refocusing : from ‘external expansion’ to ‘improvement in performance’ Adjustment of group governance model to encompass CEE affiliates. Key issues : Further increase in management and controlling capacity of KBC HQ Improved organization of transfer of know-how to CEE Strengthened central audit teams Central Europe 2 nd home market

KBC Bank & Insurance Group Addressing the challenges in Poland Capital base : strengthened (+ 666 m PLN (completed), KBC's stake up to 81%) Risk sensitivity : to be greatly reduced Credit risk policies redefined and credit decision authority reduced (completed) Cleaning up ‘historic’ loan book (195 m provisions ytd) Improving risk control and risk management Cost base : to be further reduced Centralizing back offices, strengthening HR and performance measurement Reducing headcount (driven by new central IT system) by 1000/1200 FTE, real estate expenses (15-20 %) and other tangible costs (5-10%) by ‘04 Disinvesting from non-strategic activities (Ukraine, Lithuania, PKB, Pension Fund,…) Market position : to be improved on the retail market (sales growth %) Thorough customer segmentation in the nationwide network Transfer of KBC product know-how (e.g., in the field of AM) Acceleration of bancassurance efforts with WARTA Insurance Central Europe 2 nd home market

KBC Bank & Insurance Group Asset Management division Breakdown of retail funds Equity: 11% Bonds & MM: 13% Balanced: 12% Capital- guaranteed: 48% Profit contribution : ytd 84 m (  4%) New capital-guaranteed funds : ytd 105 new mutual/unit-linked funds AUM : ytd  5% to 84 bn from 80 bn Retail funds (42 bn) :  4% Private assets (13 bn) :  4% Institutional & group assets (28 bn):  6% Profit contribution down slightly Belgium: 85 % Central Europe: 5 % Other

KBC Bank & Insurance Group Corporate banking : Profit contribution: ytd 140m  10% (ROAC 9%) Cost decrease (  7%) due to strict cost control, mainly in Belgium / Western Europe No repeat of 2002 one-off revenues Provisions for problem loans (56 bp on RWA), mainly for the electricity sector in the US Market activities : Profit contribution: ytd 117 m  51 % (ROAC 14%) Very strong performance in money and capital market products Equity trading: still weak (break-even for KBC Securities at operating level) KBC Financial Products : satisfactory result but negative MtM for equity derivatives Corporate and investment banking Profit contribution : corporate banking and market activities

KBC Bank & Insurance Group Interim results at 30 Sep 2003 Highlights Outlook Performance, insurance Performance, banking

KBC Bank & Insurance Group P&C, underwriting result Exceptionally low level Premium income Combined ratio Very sound business, in ‘03 partly driven by upward trend in rates and in general by strong risk and cost discipline Premiums ytd 15% org. growth 99% 95% 94% Excl R/I

KBC Bank & Insurance Group Life business, underwriting result Quarterly net premium income Very strong growth (bancassurance-driven) 9M 02: 1816 m m interest-guar. 766 m unit-linked 9M 01: m 299 m interest-guar. 931 m unit-linked 9M 03: m m interest-guar. 622 m unit-linked 9M 03: 95 % Belgium 9M 03: 5% Central Europe Premiums ytd 9 % organic growth

KBC Bank & Insurance Group Insurance, investment income 9M 029M 03  Interest, dividend, rent % Capital gains on shares (*) % Total % Suffering from low bond yields (*) incl. write-back from provision for financial risk (15m in ‘03)and excl. value adj. for unit-linked products

KBC Bank & Insurance Group Insurance, non-recurring items In m EUR3Q 039M 03 Non-recurring result Value adjustments, shares Transfer from equalization reserve-92 Non-recurring gains on securities-122 Transfer to provision for financial risks7-115 Other-2-8 Total non-recurring result Value adjustments on shares offset by non-recurring income Provision for financial risks, balance : 100 m EUR

KBC Bank & Insurance Group Interim results at 30 Sep 2003 Highlights Outlook Performance, insurance Performance, banking

KBC Bank & Insurance Group Profit outlook Interest rate environment and general financial climate have improved. Economic outlook is more favourable. On the other hand, further loan losses in 4Q cannot be ruled out (credit review, Poland). Profit ‘03 expectation : at least the ’02 level (based on current information and assumption of stable stock market)

2003 Additional information

KBC Bank & Insurance Group Year-to-date results, detailed overview m EUR 9M 029M 03 %% Organic  % Gross operating income % - banking % - insurance %- 3% Administrative expenses % - banking % - insurance %+ 7% Operating result %- 5% - banking %- 4% - insurance % Loan loss provisions Value adjust., non-recurring, extraordinary and other results Pre-tax profit %- 4%- 3% Taxes Minority interests Net profit %

KBC Bank & Insurance Group Contribution per business, year-to-date Group result : 3/4 from banking, 1/4 from insurance +20% -2% Net profit in m EUR ROE banking : 11.1% ROE insurance : 16.3% ROE Group: 13.2%

KBC Bank & Insurance Group Year-To-Date Highlights In banking : high commission income (y-o-y +16%) and in 3Q strongly improving interest income. In insurance : high premium volume (y-o-y + 11%), but pressure on investment income. Zero cost growth y.o.y. In banking : cost level down 1%. Strong technical result in non-life : combined ratio 95.4% (excl. reinsurance : 93.8%). Relatively high loan loss provisions (425 m). Value impairments on shares (100 m, but offset). Solid solvency : 8.6% (Tier 1 - bank) and 318% (insurance)

KBC Bank & Insurance Group Main changes in scope of consolidation Impact (*) CSOB Insurance NLB Bank Full consolidation, retroactively to 1Q Equity method -0.4% +0.1 % Q2Q3Q4Q1Q2Q3Q Ergo Insurance Krefima Bank Full consolidation Deconsolidation (previously full consolidation) (*) Impact on gross operating income Limited net impact of changes in consolidation (full consolidation, previously equity method) Q Warta Insurance EXPECTEDEXPECTED

KBC Bank & Insurance Group Group, key performance ratios Sep 02Dec 02Sep 03 Cost / income, banking64.1%65.2% Combined ratio, insurance (*)95.2%101.4%93.8% Solvency (Tier 1), banking8.3%8.8%8.6% Solvency, insurance (**)305%320%318% Return on equity12.3%12.7%13.2% Growth in EPS (y-o-y)+0%+1%+15% (*) Excluding reinsurance (**) Including unrealized gains Getting closer to strategic objectives

KBC Bank & Insurance Group Areas of activity, profit contribution (*) Profit excluding minority interests Profit contribution (*) year-to-date Activitym EUR %  ROACHeadlines Retail, Belgium328 m  30%15% - Strong commission and premium income - Improving interest margin (2.1% in 3Q) - Cost reduction in banking (  5% y-o-y) - Low loan losses (16 bp/RWA) and low combined ratio P&C (92 %) Central Europe: - banking in CR/SR - banking in Hungary - banking in Poland -28 m 112 m 23 m -138 m - + 3% + 77% - - 2% +18% + 19% - - Strong commissions and zero cost growth in CR (although margin pressure and fewer one-offs) - Strong income growth in banking in Hungary - High loan losses in Poland (195 m) - Improvement in insurance (though limited scale) Asset management84 m  4%- - AUM up 5% vs Dec 02 Corporate services139 m  11%9%9% - Successful cost control - Less one-off income (CLOs) and higher loan losses (US energy) - R/I out of the red Market activities117 m  51%14% - Fixed income: very strong - Equities: still weak but cost-cutting successful - Derivatives: satfisfactory (suffered from MtM) Strong rebound in Belgian retail. High adverse impact of Poland.

KBC Bank & Insurance Group Interest spreads in Belgium, banking Going forward, increasing market rates could fuel top-line growth Interest margin Spread on new loans

KBC Bank & Insurance Group Economic outlook Popu- lation Real GDP growth 10-y interest rate CPI change e2004eDec 03eSep 04e e2004e Belgium10 m0.7%0.8%1.9%4.4%4.8%1.6%1.5%1.1% Czech Republic 10 m2.0%3.0%3.9%4.5%5.0%1.8%0.0%2.2% Slovak Republic 5 m4.4%3.5%4.2%5.1%5.4%3.3%8.2%6.0% Hungary10 m3.2%2.0%3.0%7.3%7.5%5.3%4.5%6.5% Poland38 m1.3%3.1%4.0%5.0%5.8%1.9%0.6%2.2% Source : KBC Asset Management, November 2003

KBC Bank & Insurance Group Value adjustments, investment portfolio Significant value adjustments in ‘02 and in 1Q 03 (offset in insurance business by non-recurring result) DJ Eurostoxx

KBC Bank & Insurance Group Unrealized gains, investment portfolio In m EURDec 02Sep 03 %  Banking book %+ 2 % Bonds Shares Insurance book % Bonds Shares Real estate10199 Unrealized gains increasing, driven by upward trend of stock markets Balance of gains and losses

KBC Bank & Insurance Group Solvency 8.8% 8.6% 504% 320% 318% Banking business (Tier 1) Insurance business (Solvency margin) 564 m 668 m 612 m m Solid solvency in both banking and insurance (no double gearing and no DAC) In m EUR

KBC Bank & Insurance Group Solvency KBC Bank 1993 / 2003 mandatory convertible bond Conversion, 30 Nov 2003 : Capital increase: ca. 8.1 m new shares (*) (not dividend-entitled for ’03) Impact : Lower interest charges (12.2% for ‘03) EPS ‘04 dilution, ca. 1.5 pp Tier 1: ca. 30 bp Free float : ca. + 1% (*) Based on outstanding MCB at 30 Sept. 2003

KBC Bank & Insurance Group Contact information Investor Relations Office: Luc Cool 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