1. Company presentation April 2004 Financial Year 2003 Results and Outlook for the Future

2. 2 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and arrange credit risk –Corporate portfolio –Retail portfolio –Action plan Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

3. 3 LOAN PORTFOLIO GREW BY MORE THAN 26% PER YEAR 8,868,266 11,245,463 15,099,665 17,910,500 19,029,000 CONSOLIDATED Retail Bank Zagiel Corporate Bank Kredyt lease KB Ukraine CAGR 1999- 2002 = 26.4%

4. 4 IRREGULAR LOANS INCREASED FURTHER IN 2003. BASED ON A THOROUGH PORTFOLIO REVIEW, KB HAS INCREASED PROVISIONS PLN million 200120023Q 20032003 Irregular loans 16,054 18,539 18,129 19,029 39.6% 42.5% 43.0% 52.7% Provisions of irregular loans

5. 5 *Peer Group : Pekao SA, BPH PBK, Bank Handlowy, ING Bank Slaski, BZ WBK, Bank Millenium and BRE Bank **Year 2003 based on incomplete data for Peer Group KB HAS ACHIEVED A CONSERVATIVE POSITION IN TERMS OF PROVISIONS Average peer group* Kredyt Bank Coverage ratio Kredyt Bank Coverage ratio peer group* Irregular loan ratio Coverage ratio

6. 6 * Based on latest quarterly information COMPARISON TO MARKET SHOWS THAT KB HAS TAKEN A RELATIVELY CONSERVATIVE POSITION IN TERMS OF PROVISION Irregular loan ratio in percent; 2003 BZ WBKBRE BankBPH PBK*Pekao SABank Millennium* Kredyt BankHandlowy Citi* ING BSK* Coverage ratio

7. 7 KEY REASONS FOR ADDITIONAL PROVISIONING Facts Rapid loan growth outpacing competition Late recognition of problem loans Acceptable average coverage ratio Decline of collateral value Growth of foreign exchange rate affecting FX credits Actions in 4Q 2003 Loan review identified potential problem loans Collateral policy changes – strengthening of verification of collateral valuation Provisioning requirements of directive of finance ministry treated as minimum, not as maximum Resulting into creation of additional loan provisions of PLN 1,158.6 million on consolidated basis

8. 8 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and manage credit risk –Corporate portfolio –Retail portfolio –Action plan Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

9. 9 OVER 2003, KB’S CORPORATE PORTFOLIO DETERIORATED TO 32% OF NONSTANDARD LOANS December 31 2002December 31 2003 100% = PLN 13,735,611 100% = PLN 13,781,861 Normal and under observation Substandard Doubtful Loss Doubtful Loss Substandard CONSOLIDATED

10. 10 FOR EACH OF THE RISK CATEGORIES, PROVISIONING RATE HAS BEEN INCREASED December 31 2002December 31 2003 Exposure Provisions 7% 9% 53% SubstandardDoubtfulLoss 17% 25% 77% SubstandardDoubtfulLoss

11. 11 CORPORATE LOAN PORTFOLIO IS CONCENTRATED Top 1% of customers = 51% of exposure Top 20% of customers = 94% of exposure Percentage of exposure Percentage of number of customers Total number of customers: 9,252 KREDYT BANK ONLY

12. 12 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and manage credit risk –Corporate portfolio –Retail portfolio –Action plan Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

13. 13 82% OF THE RETAIL PORTFOLIO IS HEALTHY December 31, 2002December 31, 2003 100% = PLN 4,458,612 100% = PLN 4,112,653 CONSOLIDATED Normal Substandard Doubtful Loss Substandard Doubtful Loss

14. 14 MORTGAGE LOANS, CONSUMER FINANCE AND CASH LOANS ARE THE KEY PRODUCTS IN RETAIL 100% = PLN 3,523,598100% = PLN 4,458,612 KREDYT BANK AND ZAGIEL December 31, 2001December 31, 2003 Mortgage loans Car loans Cash loans Consumer finance (Zagiel) Other

15. 15 TABLE OF CONTENTS Company profile in the context of the Polish banking market 2003 results Key elements of the program to improve asset quality and manage credit risk –Corporate portfolio –Retail portfolio –Action plan Key elements of the restructuring process for 2004 Key retail commercial drivers for 2004

16. 16 IN ORDER TO CONTROL RISK EFFECTIVELY, SEVERAL ISSUES MUST BE ADDRESSED Legacy issues addressed Formalistic/procedural approach to credit High risk concentration with limited number of customers Ineffective monitoring leading to late detection of problem loans Consequently, bad debt focused on recovery – not restructuring Collateral values not realistically marked-to-market Loan administration shortcomings

17. 17 ACTION PLAN FOR RISK IMPROVING CREDIT POLICY AND SKILLS IS FOCUSED BOTH ON THE MANAGEMENT OF ‘HEALTHY’ PORTFOLIO AS WELL AS RECOVERY (1/2) Improved decision making Adjusting key credit policies Strictly reduced credit delegation levels based on risk/exposure decision grid Implement new risk classification scoring system Centralization of credit risk management in 6 regional risk centers segregated from commercial management Simplified processes for individuals resulting into reduction of throughput times based on full implementation of automated scoring for all retail credit products Simplified processes for non individuals concentrated in 6 centers Automated and simplified monitoring process, usage of KBC proven systems Training on all levels of the credit process Reduced risk concentration limits strictly adhered to New collateral policy –More differentiation in coverage ratios –Increased verification of values Adjusted provisioning policy to consider regulatory rules as minimum as opposed to maximum Status Pilot operational, full rollout by mid May 2004 Effective Early detection of problem loans

18. 18 ACTION PLAN FOR RISK IMPROVING CREDIT POLICY AND SKILLS IS FOCUSED BOTH ON THE MANAGEMENT OF ‘HEALTHY’ PORTFOLIO AS WELL AS RECOVERY (2/2) Credit administration Proactive handling of problem loans Establishment of autonomous ‘Bad bank’ at HO level with 6 regional centers –Central unit for large exposure recovery –Regionalization of mid-small corporate and retail exposures –New structured processes in retail –Development of NPL planning and reporting tool –Design of approach and system for new NPL management New credit administration approach Concentration of credit administration into 10 regional centers Status In progress Pilot running, full rollout September 2004 In progress Pilot running, full rollout from mid May 2004 Effective