PRESENTATION MARCH 2004 MARCH 2004 OWN ISSUES OFFICE

Profound restructuring process of Kredyt Bank There are three main restructuring areas Credit risk Investment bankingOrganisational Structure Restructuring areas

Increase of irregular receivables Share of irregular receivables in total receivables Restructuring and quality of receivables

Increase of loan portfolio safety Significant increase of coverage ratio by provisions

Economy industries of heavy loan provisioning Real-estate financing Real-estate financing Metal processing industry Metal processing industry Power industry Power industry Food processing Food processing Ship building Ship building Automotive industry Automotive industry

Investment banking Kredyt Bank S.A. Group restructuring process Kredyt Trade Sp. z o.o. 100% Kredyt Trade Sp. z o.o. 100% BFI Serwis Sp. z o.o. 100% BDH Serwis Sp. z o.o. 100% ŻAGIEL S.A. 100% ŻAGIEL S.A. 100% KREDYT LEASE S.A. 100% KREDYT LEASE S.A. 100% KB Zarządzanie Aktywami S.A. (asset management) 100% KB Zarządzanie Aktywami S.A. (asset management) 100% Kredyt International Finance B.V. 100% Kredyt International Finance B.V. 100% additional distribution channels support functions SPV to be sold already sold for sale or under restructuring process KREDYT BANK UKRAINA 66.7% KREDYT BANK UKRAINA 66.7% PTE KREDYT BANK S.A. 100% PTE KREDYT BANK S.A. 100% AGROPOLISA Insurance company KREDYT BANK S.A. Vilnius Branch POLSKI KREDYT BANK S.A.

RESULT Profound restructuring process of Kredyt Bank Kredyt Bank S.A. commenced work, in collaboration with the KBC Bank, on the Kredyt Bank S.A. Reorganization Program. Functioning of the Kredyt Bank S.A. was analysed including: the sale processes, the costs of activity, the banking risk (market and credit risks). A concept was developed for organisational changes in the Kredyt Bank S.A. Capital Group It was approved by the Bank’s Management Board and the Bank’s Supervisory Board. The Reorganisation Program of the Kredyt Bank S.A. will be conducted by way of mutually interdependent projects encompassing significant areas of the Bank’s functioning.

7,1% -2,9% Changes to key balance sheet items of the Group Slow down of increase of scale of activity measured by total assets in PLN million % Change in relation to previous period

6,6% % Changes to securities portfolio Changes to key balance sheet items in PLN million Debt securities Increase of share of debt securities. They account for app. 90% of total securities portfolio. Change in relation to previous period to previous period

232, , Operating result The Bank generated positive financial result excluding cost of risk Positive OPERATING RESULT before the cost of provisions Functioning costs Net income from operating activity in PLN million

Net result from operating activity Increase of net commissions and decrease of net interest -9,3% 7,8% % Change in relation to previous period in PLN million

Functioning costs Decrease of tangible costs, increase of fixed assets depreciation costs... due to intensive build-out and updating of sale and IT infrastructure. % Change in relation to previous period in PLN million 43,9% 16,7% 2,1%

Main reasons for net loss generated in 2003 Main reason for net loss - loan portfolio restructuring in PLN million Negative financial result of the Group Financial result of the Group excluding „risk cost” +232,5 Establishing provisions for credit risk Corporate income tax Write-off of goodwill of subsidiaries ,3 -187,5 -81,7

KBC Bank NV - strategic investor in Kredyt Bank Financial strength of KBC Bank NV as compared with Polish banking sector KBC Group with its seat in Brussels conducts banking activity (KBC Bank) as well as insurance activity (KBC Insurance) conducts banking activity (KBC Bank) as well as insurance activity (KBC Insurance) one of the largest financial groups in Belgium one of the largest financial groups in Belgium occupies a leading position in the Central Europe occupies a leading position in the Central Europe in Poland - it conducts banking activity through Kredyt Bank S.A.and insurance activity through Warta S.A. in Poland - it conducts banking activity through Kredyt Bank S.A.and insurance activity through Warta S.A. worldwide - it employs about 45,000 people and services 9 million customers. worldwide - it employs about 45,000 people and services 9 million customers. Data as at end IIIQ 2003 KBC GROUP ASSETS: EUR 224 billion OWN FUNDS OF KBC GROUP: EUR 9.3 billion more than twice as large as the assets of the Polish banking sector more than twice as large as the assets of the Polish banking sector more than 22 times as large as own funds of Polish banking sector more than 22 times as large as own funds of Polish banking sector similar to own funds of Polish banking sector similar to own funds of Polish banking sector KBC Bank holds 81.4% participation in the capital of Kredyt Bank S.A.

Capital adequacy ratio of the Bank Increase of capital adequacy ratio as a result of series W shares issue Capital adequacy ratio of the Bank II kw 2004 FORECAST 8% Level required by Polish Banking Law

Total financial support of KBC Bank N.V. PLN million Actions securing appropriate levels of receivables’ concentration ratios and level of capital adequacy ratio within the process of restructuring. MAINTENANCE OF THE CURRENT AS WELL AS FUTURE LEVEL OF STABILITY AND SAFETY OF THE BANK

TARGET Increase of the Bank’s core funds in 2003 Series U shares issue Series U shares issue with pre-emption rights for existing shareholders amounting to PLN 665 million took place in the fourth quarter of Issue price: PLN Pre-emption rights ratio: 7:3 Share of KBC Bank N.V. in capital after series U shares issue: 81.40% Maintenance of own funds on the level adequate to the scale of activity

Assistance from KBC Bank N.V. Key function of KBC financial assistance in restructuring process TARGETS Placing of deposit securing receivables of the Bank Loans repayment guarantee for the Bank EUR 140 million PLN 6,364 million Collateral for receivables Securing concentration limits on appropriate levels Collateral for receivables Increase of capital adequacy ratio

TARGET Providing the Bank with core funds New shares issue approved by General Assembly of the Bank held on January 9, 2004 Series W shares issue with pre-emption rights for existing shareholders amounting to approx. PLN 600 million will take place in the I H 2004 Issue price: PLN Pre-emption rights ratio: 7:2 Share of KBC Bank N.V. in capital after series W shares issue, in case of purchasing all the shares issued:85,53% Increase of core funds (Tier I), which shall enable the Bank to pursue more flexible policy in Tier II capital area

TARGET Providing the Bank with supplementary funds The Issuance Program of the registered, perpetual banking securities in the amount up to PLN 800 million On December 23, 2003 the Bank issued under Issuance Program debt securities amounting to PLN 330 million directed to entities of KBC Bank N.V. Group The raised funds are included into Upper Tier II capital on permit of Banking Supervision Commission Increase of supplementary funds (Tier II), according to the Banking Law up to the amount of primary funds (Tier I)

FITCH RATINGS Long-term:BBB+ - outlook positive Short-term: F2 Individual: D/E Support: 2 MOODY’S INVESTORS SERVICE Long-term: A2 - outlookstable Short-term: P-1 Financial strength: E+ Long-term rating of KB = sovereign rating of Poland. Positive impact of the major shareholder i.e. KBC Bank N.V. Rating of the Bank Investment grades from Fitch and Moody’s

Challenges for 2004 Improvement of profitability and maintaining complete safety levels at the same time profitability improvement by decreasing costs and increasing sales profitability improvement by decreasing costs and increasing sales effective controlling of credit risk effective controlling of credit risk maintaining of market position maintaining of market position maintaining of adequate safety levels maintaining of adequate safety levels