KBC Bank & Insurance Group Full year results 2001 Brussels 4 March 2002

2 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Profit contribution by activity 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 - Net dividend - Pay-out ratio % % (1)figures for 2000 excl. capital gain on CCF KBC Bank & Insurance Group Key figures

4 In m EUR -12.3% KBC Bank & Insurance Group Net group profit per quarter

5 KBC Bank & Insurance Group Q Key developments Positive developments  Slight recovery of financial markets Write back of unrealized valuation losses on shares Better performance of equity and derivatives subsidiaries Recovery of unit-linked sales (+ 35% versus Q3)  Higher interest income : + 4.7% (excl. KB Poland)  Capital gains on fixed-income securities  Strong performance of non-life business due to fewer claims in reinsurance Negative developments  Higher specific loan provisioning  Cost increase : excl. one-off items + 15% Full consolidation of Kredyt Bank Poland

6 KBC Bank & Insurance Group Group profit and profitability +12.8% +21.6% 16.1% 20.5% 23.3% In millions of EUR +20.2% -12.3% 17.3%

7 KBC Bank & Insurance Group FY 2001 key developments Positive developments Increase in market shares Positive development of the profit contribution by Central Europe 2.5 bn EUR growth in assets under management Efficiency  Organic cost development in banking improving : + 3.3%  Combined ratio in insurance at 103.8% approaching the 2004 target Strong solvency ratios  Strenghtening of pure equity by transfer of FGBR Negative developments Unfavourable market conditions for volatile revenue components  Commission income : - 12% (organic)  Negative result for equity and derivatives subsidiaries  Unit-linked premium income : % High loan provisioning

8 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% % 14.7% 318% Decrease of solvency ratios in banking due to widening of scope of consolidation

9 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Profit contribution by activity Outlook

10 In millions of EUR 2001 Gross operating income General admin. expenses Operating result Value adjustments and provisions Extraordinary result Profit before tax Taxes Minority interests Profit after tax 2000  % (1) Banking Summary (1) excl. capital gain on CCF Org.  %

11 In millions of EUR Total 3435 Total 3868 Total 4656 Total 4977 Other income Commission income Profit on financial transactions Net interest income (incl. dividends) % of total income % 20% 16% 56% 8% 21% 18% 53% 8% 22% 18% 52% 7.1% 2.2% 5.9% 9.2% Banking Income Stream

12 Banking Staff charges +2.7% +2.3% In millions of EUR Total : 1675 Total : 1843 (10%) Increase at KBC Belgium of 27 m EUR due to : Inflation :20.5 m FTE :13.8 m Other:- 7.3 m KBC Belgium Other Change of consol.Scope

13 In millions of EUR +0.8% Banking Other operating expenses Increase at other companies of 6.9% or 56 m EUR due to : KBC Lease :29 m KBC FP :11 m KBC AM: 3 m Total : 1667 (+17.5%) +6.9% Total : 1419 KBC Belgium Other Change of consol.Scope expansion of activities

14 KBC Bank & Insurance Group Cost/Income ratio 2000 As published At unchanged scope of consolidation Taking into account 2004 projected cost savings Staff charges: 115 m EUR IT: 89 m EUR Other: 20 m EUR %70.5% 69.7% 66.0% 66.5% 2001

15 Banking Provisioning for credit risks Specific provisions Domestic International of which Kredyt Bank Other general provisions for credit risks Loan loss ratio Domestic International Non-performing ratio In millions of EUR % 0.09% 2.1% % 0.48% 2.1% % 0.38% 2.8% Increase of non-performing ratio due to Kredyt Bank Poland :+ 0.4% pt Organic :+ 0.3% pt

16 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Profit contribution by activity Outlook

17 Insurance Summary In millions of EUR 2001 Non-life premium income Life premium income Net technical charges (*) Investment income (*) Total gross margin General expenses Recurring result Non-recurr. and extraord. result Profit before tax Taxes Minority interests Profit after tax 2000  % (*) excl. impact of value changes of unit-linked products

18 Insurance Evolution of gross premiums -15.7% +7.1% +7% +44.5% In millions of EUR

19 KBC Bank & Insurance Group Efficiency Ratios 2000 Non-life ° Net expense ratio Net loss ratio (total) Net loss ratio (direct business) Combined ratio Target by % 72.5% 70.2% 106.1% 34.4% 69.4% 63.9% 103.8% 103.0% 34.0% 72.6% 66.6% 106.6% 2001 Combined ratio target for 2004 almost achieved

20 Total 237 Total 272 Total 321 Total 361 Non-technical Non-life Life % of total recurring result % 47% 37% 11% 39% 50% 13% 39% 48% Insurance Contribution to net group profit In millions of EUR +34% +12% +8.1%

21 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

22 Profit Contribution by Activity : 1181 m EUR : 1022 m EUR Retail bancassurance Central Europe Corporate services Asset management Market activities Group items % profit contribution 36% 13% 21%19% 5%7% 12%9% 15% 16% -13.7% +43.3% -79.6% +38.4% -12.6% -4.3% In millions of EUR

23 Retail Bancassurance (1) KBC estimates Financial highlights Profit contribution : (in m EUR) 2000 : : 364 Share in Group profit : 2000 : 35.7% 2001 : 35.6% Return on equity : 2000 : 16.2% 2001 : 13.9% 2001 : Stable interest income but negative impact of stock market climate on commission income Slightly higher costs Market shares (1) on the rise (from 12/00)  Consumer credit : 26.1%+0.3% pts  Home loans :25.6%+0.5% pts  Savings deposits :20.0%+0.6% pts  Savings certificates :17.8%- 0.1% pts  Unit-linked prod. :20.2%+0.5% pts Positive development of cross-selling mutual clients buying 1 insurance and 1 bankproduct (+ 4.2% versus Dec. 2000) Merger process on track

24 KBC Bank & Insurance Group Merger in Belgium on track Conversion and integration at insurance company completed Merger in KBC Bank to be completed by 2004 Closure of bank branches  1998 : 1500 branches  350 branches already closed, leaving 1150 at end 2001  Target by 2004 : 850 branches to remain Creation of 1 IT platform  IT workload almost completed  clients already served on new platform, still ex-KB clients to be migrated (target date mid 2004) Reduction of workforce  Gradual reduction by 1650 (11%) by end of 2004

25 Corporate services 2001 Increase of gross operating income (+ 9%)  Higher interest income  Higher commission income  Lower income from corporate finance Higher operating expenses (+ 9%) Higher loan provisioning (+ 25%) from 202 m EUR to 252 m EUR also resulting in lower taxes Strategic reduction of risk weighted assets continued (- 9.5% or 4 bn EUR) Increase in domestic market share (1) in lending  end 2000 : 20.7%  end 2001 : 22.5% Financial highlights Profit contribution : (in m Eur) 2000 : : Share in Group profit : 2000 : 12.5% 2001 : 21.1% Return on equity : 2000 : 5.7% 2001 : 8.3% (1) KBC estimates

26 Market activities 2001: profit contribution 80% lower Strong performance of dealing rooms (95 m EUR) in Belgium but especially abroad Weakness of stock markets reflected in negative results of equity subsidiaries KBC Securities (- 14 m EUR) and KBC Financial Products  Convertible bonds+ 11 m EUR  Derivatives- 32 m EUR  Other- 14 m EUR Financial highlights Profit contribution : (in m Eur) 2000 : : 46.5 Share in Group profit : 2000 : 19.3% 2001 : 4.5% Return on equity : 2000 : 20.5% 2001 : 4.1%

27 Central Europe Developments in 2001 Czech & Slovak Republic Integration of bank distribution networks of CSOB and IPB completed Feb : acquisition of 65% of IPB Pojist'ovna Increase of stake in CSOB Pojist'ovna to 100% Investment by KBC : 3.6 m EUR 2002 : planned integration of insurance companies Poland Increase of stake in Kredyt Bank Poland from 49.9% to 56.6% Investment by KBC : 60 m EUR (incl. capital increase) Total investments in C.E. to date : 2.2 bn EUR

28 Hungary July 2001 : merger of K&H Bank with ABN AMRO Magyar. Investment by KBC : 141 m EUR Completion of merger by mid 2002 ahead of schedule Slovenia End March 2002 : Binding offer on Nova Ljubljanska Banka (NLB) for 34% stake. Exclusive negotiations with Slovenian government. Central Europe Developments in 2001

29 Central Europe  % Profit contribution (*) (in m EUR) Share in group profit Return on Equity % 8.4% 38.4% % 7.5% (*) before deduction of minorities  % excl. changes 18% Non-performing ratio K&H Bank CSOB Kredyt Bank 1.8% 2.6% 11.6% Profit contribution CSOB K&H Bank Kredyt Bank Insurance subsidiaries Overhead

30 Asset Management Financial highlights Profit contribution : (in m EUR) 2000 : : 95 Share in Group profit : 2000 : 9.2% 2001 : 9.3% 2001  Growth of operating income (+ 3%) in line with growth of AUM  Profit contribution 12.6% lower due to higher costs Increase in assets under management, notwithstanding difficult market conditions  3.7% rise in 2001  increase in volume (4.5 bn EUR) more than offsets decrease in value (- 2.2 bn EUR) Largest Belgian player in mutual funds  market share : 29.3% Dec  54% market share in capital-guaranteed funds

31 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 (+2.2%) 7% 34% 59% 10% 23% 66% 7% 35% 58%

32 KBC Bank & Insurance Group Group results and key features Results - Banking Results - Insurance Profit contribution by activity Outlook

33 Outlook 2002 Economic climate and market conditions remain uncertain  Asset quality ?  Equity related activities ? Expected growth of interest income Merger related savings will have positive impact on costs Overall profit outlook uncertain

Net profit P/E Gross dividend Pay-out ratio Net asset value Price / NAV % % % KBC Bank & Insurance Group Key figures per share %

KBC Bank & Insurance Group Full year results 2001 Brussels 4 March 2002