KBC Group Retail bancassurance and private banking on the Belgian market April 2005 Web site: www.kbc.com Ticker codes: KBC BB (Bloomberg) KBKBT BR (Reuters) ISIN code: BE0003565737

Contact information Investor Relations Office Luc Cool Nele Kindt Marina Kanamori Tel.: +32 2 429 49 16 investor.relations@kbc.com Surf to www.kbc.com for the latest update.

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.

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

Foto gebouw 1 Introduction

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

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

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

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

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

Foto gebouw 2 Retail bancassurance in Belgium

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

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 ?

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

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: -1 300 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

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

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

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

Focus on revenue growth strategy (*) Core retail Belgium only Growth strategy Revenue growth (*) in 2001-2004 period partly driven by positive pricing effects. Revenue growth (*) in 2004-2007 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

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

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

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

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

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

Foto gebouw 3 Private banking in Belgium

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

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

Key performance figures Growth of relationships base Growth primarily from retail trade-up* CAGR 9% 2001 2002 2003 2004 2001 2002 2003 2004 * New clients with former retail relationship

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

Key performance figures Customer satisfaction (Very) satisfied Exits to competition (Very) good Yes 97% 94% 1.6% 1.6% 1,5% 91% Are you satisfied with your CRO’s competence level? 2002 2003 2004 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

Foto gebouw 4 Synergies for private banking within KBC Group

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

* 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

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

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 2009 (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

KBC Group