2003 KBC Bank & Insurance Group Interim results at 30 June

KBC Bank & Insurance Group – Half-year results Highlights Results, banking Results, insurance

KBC Bank & Insurance Group – Half-year results Overview of results Average quarter % In m EUR +7% -1%

KBC Bank & Insurance Group – Half-year results Results – first half-year In mln. EUR 1H 021H 03 %% Auton.  % Gross operating income % - banking %+1% - insurance %-2% Administrative expenses %-0.3% - banking % - insurance %+10% Operating result %+ 2.1% - banking %+5% - insurance %-15% Loan loss provisions Value adjustments, banking Value adjustments, insurance Other non-recurring result, insurance Other and extraordinary results Pre-tax profit %+ 0.5% Taxes Minority interests Net profit %+ 2.0%

KBC Bank & Insurance Group – Half-year results Highlights – 1st half-year Stable income (+0.5%), despite difficult economic situation Improving cost level in banking (-2%) Strong technical result in non-life : combined ratio 95.4% (excl. reinsurance : 93.5%) Relatively high credit loss provisions (220 m EUR) Value impairments on shares (94 m EUR, but compensated) Solid solvency : 8.8% (Tier 1 - bank) and 327% (insurance)

KBC Bank & Insurance Group – Half-year results Changes in the scope of consolidation Impact (*) CSOB Insurance NLB Bank Full consolidation Equity method +0.4% +0.3% +0.1%-0.7% 1 q2 q3 q4 q1 q2 q3 q4 q Ergo Insurance Krefima Bank Full consolidation Deconsolidation (previously full consolidation) (*) Impact on gross operating income Limited net impact of changes in consolidation

KBC Bank & Insurance Group – Half-year results Key ratios In m EUR 30 June 0231 Dec 0230 June 03 Cost / income, banking66.1%65.2%64.9% Combined ratio, insurance (*) 96.7%101.4%93.5% Solvency (Tier 1), banking8.8% Solvency, insurance (**) 432%320%327% Return on equity14.8%12.7%14.1% Growth in EPS (y-o-y)+1% (*) Excluding reinsurance (**) Including unrealized gains Strategic objectives coming closer

KBC Bank & Insurance Group – Half-year results Profit contribution - banking / insurance Net profit in m EUR Group result : 3/4 from banking, 1/4 from insurance +1% +9% -19%

KBC Bank & Insurance Group – Half-year results Areas of activity Profit contribution KBC Group (*) %  ROE Retail (Belgium)219 m17%  15.5% Central Europe48 m-56%  4.4% Asset management61 m1%  - Corporate services78 m-45%  7.4% Market activities76 m35%  13.2% (*) Profit including minority interests Profit improvement in retail activities in Belgium and financial markets, result in Central Europe and corporate services below expectations

KBC Bank & Insurance Group – Half-year results Areas of activity Profit contribution (incl. minority interests) Allocated capital Retail (Belgium)36%32% Central Europe 8%24% Asset management10%- Corporate services13%24% Market activities13% Group20% 8%

2003 Results, banking

KBC Bank & Insurance Group – Half-year results Banking income Interest income :  2 % due to low interest rate environment (interest margin : 1.68%  1.63%) Commission income : strong growth (investment funds) Lower trading income (  16%) due in part to lower FX income and MtM (*) of equity derivatives Considerable capital gains (179 m) on ‘free’ bond portfolio One-off ‘other income’ recorded in 2Q 02 and lower dividends Stable gross operating income in spite of adverse economic climate 0% +79% -16% +12% -2% -28% -20% (*) MtM = Market to market

KBC Bank & Insurance Group – Half-year results Administrative expenses Merger-related savings in Belgium : Expenditure 1H 03 :  5% (41 m) Follow-up headcount reduction plan :  FTE (82% of target) Central Europe : Expenditure 1H 03 :  4% (20 m) Follow-up headcount reduction plan :  CSOB :  430 FTE (45% of target)  KB :  ca. 500 FTE  Better cost / income ratio : 66.1 %  64.9%. Plus, technically,cost line too high : no compensation by write-backs from provisions (impact ca. 0.5%) In m EUR % - 4% - 5% Continuing cost control - 4% In 2001 excl. KB 1 683

KBC Bank & Insurance Group – Half-year results Loan loss provisions Domestic loan losses at a relatively ‘favourable’ level (excl. Poland) : Belgium : 23 bp Hungary : 34 bp CR and SR :45 bp (no write-backs) Credit losses in Poland : 60 m EUR (loan loss ratio : 270 bp) International portolio : sensitivity to the economic slowdown, problem loans in energy industry in US Loan loss ratio : 47 bp Share of non-performing loans : 2.9%, 65% covered by loan loss provisions Loan loss ratio 1H 03: 0.44% (0.55 for FY2002) Quarterly loan loss provisions (m EUR)

KBC Bank & Insurance Group – Half-year results Asset growth, banking Customer deposits : status quo (excl. repos), plus shift to life assurance Customer loans :  1% (excl. reverse repos) High level of private lending, especially mortgages (  7%, excl. negative consolidation effect from Krefima)  Belgium  4%  Hungary  22%  Czech Rep.  14%  Poland  4% Corporate lending : slight decrease (  2%) Risk-weighted assets : stable (95 bn) /06/2003 CorporatePrivateRepos /06/2003 Repos Deposits excl. repos Customer deposits (in bn EUR) Customer loans (in bn EUR)

KBC Bank & Insurance Group – Half-year results Value adjustments on investments +8 m -77 m -142 m +9 m -74 m + 69 m Positive second quarter of 2003 offset first quarter -85 m -23 m -5 m +25 m

KBC Bank & Insurance Group – Half-year results Unrealized gains In m EUR  BankingTotal % Bonds Shares8680 Other2773 Unrealized gains increasing due to decline in interest rates

KBC Bank & Insurance Group – Half-year results Retail banking (Belgium) Turnaround in retailbanking : Profit contribution : 87 m (  142%) Increase in income : 5% (strong commission income, mainly from investment products) Decrease in costs : 6% Loan loss provisions (29 m EUR) remain low (18 bp on risk-weighted assets) Belgium 1 st home market

KBC Bank & Insurance Group – Half-year results Progress of bank merger in Belgium Targets To be achieved by 2004 :Status Planned 2H 03 Integration of central departments100% - Downsizing of branches by 650 (-43% )91%94% ICT migration : from 3 to 1 new platform99.9%100% Rightsizing of headcount by (-11%)82%91% Increase in cross-selling from 20%  40%38.3%  Belgium 1 st home market

KBC Bank & Insurance Group – Half-year results Banking in Central Europe Facts banking business : Profit contribution : 39 m (  49%) Strong income growth in Hungary (  13%) Less extraordinary income in Czech Republic (  10 m) High provisions for loan losses in Poland (  60 m) Central Europe 2 nd home market (*) Including minority interests, results via equity method and 12 m provisions 2002 for KB in 2003-result KBC (mln.EUR) 1H 011H 022H 02 1H 03 CSOBCzech Rep. Slovak Rep K&H BankHongary Kredyt Bank Poland Others(*)

KBC Bank & Insurance Group – Half-year results Asset management Market share, retail funds: Belgium : 31% Czech Republic :23% Slovak Republic:11% Hungary :11% Stable profit contribution, volumes under management heading back up Retail funds in 1H 03 : Market value :  3%, Net inflow :  1% AUM including CE

KBC Bank & Insurance Group – Half-year results Corporate banking Profit contribution : 79 m EUR (  45%)  No repeat of 2002 one-off revenues  Cost decrease (  6%) due to strict cost control, mainly in Belgium / Western Europe  Provisions for problem loans (56 bp on RWA*), mainly for the electricity sector in US In m EUR - 64 m -51m 1H 02 1H 01 1H 03 1H 02 1H 01 1H 03 (*) RWA = Risk Weighted Assets

KBC Bank & Insurance Group – Half-year results Market activities 1H 03 profit contribution : 76 m EUR,  35% Very strong performance in money and capital market products Equity trading: still weak, but KBC Securities’ loss halved, via cost-cutting KBC Financial Products : satisfactory result but negative MtM for LT equity derivatives Profit contribution :

KBC Bank & Insurance Group – Half-year results Solvency banking Stable at a high level Tier-1 ratio, banking 8.8%

2003 Results, insurance

KBC Bank & Insurance Group – Half-year results Premium income Non-life :  19% (14% autonomous) Premium income, life :  17% (13% autonomous) Very strong premium income In m EUR +17% -17% +42% + 19 %

KBC Bank & Insurance Group – Half-year results Technical result, non-life Average amount of loss Frequency of losses Exceptionally low level KBC Belgium, motor insurance loss Excl. reinsurance

KBC Bank & Insurance Group – Half-year results Profitability dynamics, non-life Reserve ratio 205 Return on investment 5.00% Allocated capital 40 Investment income reserves 10.3 Investment income capital 2.0 Premium 100 Combined ratio Investment income 12.3 Profit 14.8 Tax -3.5 ROAC 28% X X : Investmentmix :45% shares Return :6.00% 50% treasury bonds4.00% 5% real estate6.00% 5.00% Combined ratio105 %100%95% ROAC16 %24 %32% Low combined ratio, important leverage Return on allocated capital (risk-weighted) : Simplified example :

KBC Bank & Insurance Group – Half-year results Technical result, life Actuarial reserves, life Much higher life assurance reserves Net, bn EUR +16% +9%

KBC Bank & Insurance Group – Half-year results Overview of the life portfolio Overview Belgium, actuarial reserves interest-guaranteed life : 4.75%3.75%3.25%Other (**) Traditional life15%-9%- Universal life (*) 27%23% 3% Interest rate risk partly covered by provisions Excl. death cover Government bonds 75% Corporate bonds (***) 0% Equities20% Real estate5% 30% 65% 5% 0% (*) Flexible premium payments with 10-year interest rate guarantee (no guarantee for future payments) (**) incl. insurance certficates with relatively short term (***) Financial instrumens based on corporate bonds Premium growth 03 Premium growth 02 Investment mix :

KBC Bank & Insurance Group – Half-year results Profitability dynamics, life (non-linked) Reserve 100 (1st yr) Return on investment 4.23 % Allocated capital 7.74 Investment income reserves 4.23 Investment income capital 0.33 Investment income 4.56 Guaranteed rate 3.25 Profit 1.31 X X + - Investmentmix :30% treasury bonds4.00% 65% corporate bonds4.20% 5% shares6.00% 4.23% Return on allocated equity (risk-weighted) : Simplified example ROAC 17% Return death cover Tax + -

KBC Bank & Insurance Group – Half-year results Investment income 6m 026m 03  Autonomous Interest, dividend, rent %+0% Recurring value gains on shares % Total %-9% Pressure on financial income

KBC Bank & Insurance Group – Half-year results Value adjustments on securities -6 m +17 m - 56 m -118 m -81 m -44 m -146 m +56 m +1 m -43 m Significant value adjustments, but offset by non-recurring result

KBC Bank & Insurance Group – Half-year results Non-recurring result In m EUR6m 03 Non-recurring result Value adjustments, shares-90 Transfer from equalization reserve92 Realized gains122 Transfer to provision for financial risks-122 Other-6 Total non-recurring result-4 Value adjustments on shares offset by non-recurring income Provision for financial risks, balance : 90 m EUR

KBC Bank & Insurance Group – Half-year results Unrealized gains In m EUR  InsuranceTotal % Bonds Shares Other Unrealized losses down due to recovery of stock exchange

KBC Bank & Insurance Group – Half-year results Cross-selling, bancassurance Cross-selling continues About 50% of the customers with a home loan also choose for buying a fire insurance, compared to 25% in 2001 (*) Clients with both bank and insurance products in Belgium : (*) June 2003 figure

KBC Bank & Insurance Group – Half-year results Solvency 432% 320% 327% m EUR Solvency very solid : 327%

KBC Bank & Insurance Group – Half-year results Q&A session Teleconference with live audience in Brussels Analysts who want to participate in the conference call, please dial the number given in the invitation

KBC Bank & Insurance Group – Half-year results Executive Committee Herman Agneessens Central European banking and SE Asian activities Payments and Securities processing Emile Celis Christian Defrancq Frans Florquin Guido Segers Jan Vanhevel Corporate customers West European and US bank network Retail credit handling Retail bancassurance and E-services Human resources and Communication Treasury, capital & equity markets Asset Management International credit handling Information technology Insurance subsidiaries Non life insurance & reinsurance Insurance claims management Group CEO Head insurance business Deputy Group CEO Head banking business André BergenWilly Duron

2003 KBC Bank & Insurance Group Investor Relations - tel.: