1. KBC Bank & Insurance Group First quarterly results, 2004 3 June 2004 Foto gebouw

2. 2 Q avg ‘01-’03 (265 m) Net profit + 29% yoy Delivering strong earnings Net profit m EUR Group ROE 17 % 355 304 300 256259 392 152 280 316 278 159 230 287 Insurance: 32 Especially strong momentum in banking Banking: 370 Holding: -10 Highlights — Banking — Insurance — Areas of activity — Outlook

3. 3 Net profit at a high level, up 29% year-on-year : 1. Very strong underlying revenue growth, especially in banking : Top-line growth in banking: +8 % year-on-year Organic premium growth in insurance: +19 % year-on-year, but pressure on investment yields 2. Expenses well under control and low risk charges : Cost/income ratio, banking at 59 % Loan loss ratio, banking at 11 bp Combined ratio, non-life well below 100 % (at 97.5 %) 3. No net support impact of ‘exceptional items’ : capital gain on ‘Belgacom’ (57 m) significant provision amounts (-81 m) set aside for various future liabilities and charges In insurance: impairments on equity portfolio (-128 m) to a large degree offset by use of provision for financial risks Key points

4. 4 Target 2005 Dec 2002 Dec 2003 Mar 2004 Cost / income, banking <=58%65% 59% Combined ratio, insurance * <=95%101%95%99% Solvency (Tier 1), banking > 8%8.8%9.5% Solvency, insurance ** > 200%320%316%333% Return on equity 16%13% 17% EPS growth 10%+1%+8%+25% * Combined ratio excluding reinsurance. ** Solvency insurance including unrealized gains. Improving performance levels Highlights — Banking — Insurance — Areas of activity — Outlook

5. 5 Q3Q4 2003 Full consolidation, previously equity method at 40 % 2004 Warta Insurance (Poland) Q1Q2Q1Q2 Impact of consolidation changes Impact on top line +2 % Impact on bottom line -1 % Main changes in scope of consolidation : Premium income  99 m EUR, 3/4 non-life (21% of non-life total, Group) Highlights — Banking — Insurance — Areas of activity — Outlook

6. 6 400 m Solid quality of banking earnings Underlying revenue growth + 14 % Expenses - 0.1% Capital gains -53% + 186 m - 65 m Pre-tax profit 1Q 2003 Year-on-year comparison Positive impact of operational items: +120 m EUR + 1 m Highlights — Banking — Insurance — Areas of activity — Outlook

7. 7 Strong growth of operational income Gross income up 8 % yoy : Interest income in line with strong previous quarter and +12 % yoy (interest margin up yoy from 1.6 % to 1.8 %) Sustained high commission income, up 16 % qoq (‘seasonal’) and +2 % yoy Robust trading revenu (up 51 % yoy) after somewhat depressed 2003 numbers No ‘exceptionals’, capital gains on investment portfolio in line with previous quarter (4% of total) 1452 1416 1364 1424 1572 Quarterly income (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook

8. 8 Expenses at stable level Cost basis stable yoy (-1% qoq) : In Belgium: - 5 % yoy (- 26 m) Headcount continued to reduce at 250 FTE (-2 %) In CEE: - 1 % yoy (-2 m) Headcount reduction programs running: 67 % of target achieved in CR and 50 % in Poland Increase in expenditures in rest of the world, mainly related to trading bonuses Cost/income ratio significantly improved to 59 % (65% for FY03) 929 931 897 938 928 Quarterly expenses (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook

9. 9 Loan provisioning very limited Loan loss provisions at very low level (charge of 11 bp* versus 71 for FY 2003) No problem areas/regions recognised, but cautiousness prevails about quarters ahead ! (same level in all probability not sustainable) Loan losses in Poland only 4 m (charge of 42 bp) Loan loss ratio: 10 bp in Belgium, 16 bp in C/SR, 46 bp in Hungary and 5 bp for the international portfolio 79 141 204 43 Quarterly loan provisions (m EUR) Highlights — Banking — Insurance — Areas of activity — Outlook 252 * Net specific provisions to average gross customer loans

10. 10 400 m Development of earnings, banking Underlying income growth + 14 % Expenses - 0.1% Loan losses - 85% Less securities impair ments Other Capital gains -53% Gain on FFA disposal Provision for future expenses + 186 m - 65 m + 1 m + 36 m + 79 m + 33 m - 92 m 575 m Pre-tax profit 1Q 2003 Pre-tax profit 1Q 2004 + 175 m - 3 m Year-on-year comparison Highlights — Banking — Insurance — Areas of activity — Outlook * * Gains of financial fixed assets: Belgacom in Q1 04 versus Krefima in Q1 03 +38 % organic growth

11. 11 40 m 57 m Development of earnings, insurance Premium growth + 20% Other ** +288 m -281 m -40 m -4 m Technical charges + 23% Investment income + 13% Expenses + 9% Less non- recurring - 9% * +14 m Pre-tax profit 1Q 2003 Pre-tax profit 1Q 2004 +6 m -17 m Year-on-year comparison * Of which impairments on equity ** Of which consolidation changes Highlights — Banking — Insurance — Areas of activity — Outlook -23 % organic change

12. 12 Continued fast growth of premiums Sustained robust growth in Life (mainly Belgium) : In organic terms, up again, +24 % and almost double as 2 previous quarters, Renewed interest for linked products (54% of Life total) Non-life: in organic terms up 6 % yoy Stronger in direct underwriting (+11%) Drop in re-insurance (- 6 %) 1Q 2004 Non-life 366 m Unit-linked 477 m Interest-guaranteed life 401 m 24 % 35 % 33 % * * * * Growth rate, including extension of scope of consolidation Highlights — Banking — Insurance — Areas of activity — Outlook

13. 13 Satisfactory efficiency and underwriting performance in non-life Combined ratio at fair level (97.5 %) Less strong year-on-year (-4.3 pp): Non-life claims are volatile by nature Exceptional circumstances in 2003 in Belgium (no large loss cases) Changes in consolidation scope (adverse impact 1 pp) 1Q 2004 Highlights — Banking — Insurance — Areas of activity — Outlook 97.5 % 95.9 %95.4 % 93.2 %

14. 14 Insurance business suffering from low investment yields 1Q 031Q 04 Interest yield 5.5 %5.0 % Return on shares7.0 %7.1 %* Total5.9 %5.6 % Investment return down to 5.6 % from 5.9 % * Corresponds with 7.3 % of the market value of the portfolio (= 10 years’ adjusted average) Highlights — Banking — Insurance — Areas of activity — Outlook

15. 15 P/L-impact largely neutralized by write-back of provision for financial risks Non-realized gains on shares untouched Additional impairment of 56 m expected in Q2-Q4 (market level of Apr 2004) but adequately offset by unrealized gains Impairments on equity portfolio largely offset In m EUR1Q 04 Value adjustments, shares-128 Transfer from financial provision+93 Non-recurring capital gains *+22 Other- 4 Total non-recurring result- 17 * Gain on the equity tranche of an unwoud private CDO structure Highlights — Banking — Insurance — Areas of activity — Outlook

16. 16 Market value of securities portfolio significantly above book value In m EURBook valueMarket valueUnrealised Banking book 42 03343 8191 786 Bonds40 86842 4701 602 Shares1 1651 349184 Insurance book 11 91212 538626 Bonds7 9628 421459 Shares3 1983 26769 Other74784598

17. 17 Updated strategy for investment book * Excl. private equity and smaller porfolios held by subsidiaries PreviousCurrent Equity portfolio banking * Basic portfolio : 35 % Belgian blue chips (Bel 20) 65 % European stoxx sectors Basic portfolio : 100% MSCI Pan Euro Financials (ca. 50 m EUR) Financials (ca. 25 m EUR) Asset-mix new inflow Life insurance 75% Fixed income 20 % Equity 5% Real Estate 90 % Fixed income 10 % Equity

18. 18 Profit contribution 124 m, return 17 %* Strong momentum in banking : Widening gross margin (up yoy from 5.8 % tot 6.4 % * ) Maintained cost reduction (C/I down yoy from 81 % to 69 %) Sustained low level of problem loans (loan loss ratio 11 bp *) Although strong premium income, pression on insurance contribution : Higher claims ratio (69 % versus 58 % in Q1 03) Lower investment yields Robust performance in Belgian retail Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution (m EUR) 122 97 108 125 124 * Return on average allocated capital Margin and loan losses on average RWA

19. 19 Working along “4 dimensions” (4 C’s) Robust performance in Belgian retail 1. Cost efficiency Programs of product simplification (less ‘cost drivers’) and co-sourcing (economies of scale) 2. Cross selling of insurance products Cross selling to go beyond 40% 3. Customer satisfaction Refined segmentation and increase of customer-facing time 4. Canvassing affluent clients Broadening the affluent customer basis Highlights — Banking — Insurance — Areas of activity — Outlook

20. 20 Expanded horizons in CEE gradually paying off CR & SR : strong contribution to Group profit driven by strong revenue growth in a) retail and b) due to the improved ‘interest rate environment’ and a sustained low loan loss ratio (16 bp) Hungary : strong return number on the back of a) favourable development of revenue and b) a one-off writeback of a general provision for credit risk Poland : "back in black" thanks to a) progress in the cost reduction program, bringing expenses down 3%* yoy and b) the - in all probability exceptional - low loan loss amount of 4 m EUR * Profit contribution excl. return on excess capital and minority interests ** adjusted for currency effects CEE 2 nd home Net profit (statutory) Contribution to Group * Contribution % yoy ** Return on allocated captial Return on invested capital CR / SR 55 m42 m+84 %19 %13% Hungary 30 m13 m+39 %31 %22% Poland 5 m3 m-5 %3 % Contribution of banking operations to KBC Group profit : Highlights — Banking — Insurance — Areas of activity — Outlook

21. 21 CEE banking, share of banking wallet Impact of paid goodwill Benefiting from higher margins Note : banking business lines only Risk issue under control Highlights — Banking — Insurance — Areas of activity — Outlook Improved cost structure under way

22. 22 Expanded horizons in CEE gradually paying off Enhanced performance going forward 1. High economic growth and increasing penetration rate of financial products 2. Better cross selling of insurance products 3. Increase of organisational efficiency and intensified quest for Group synergies 4. In Poland, business re-engineering  cost level  / organizational strength  Highlights — Banking — Insurance — Areas of activity — Outlook

23. 23 Highlights — Banking — Insurance — Areas of activity — Outlook Profit contribution : 34 m (after allocation of distribution fee to retail),  in line with previous quarter and 1Q 03 Assets up 6 % qoq (3% net inflow) Assets up 18 % yoy : Mutual funds (47 bn) : +20 % yoy Private assets (16 bn) : +17 % yoy Institutional (20 bn) : +16 % yoy Performing asset management activities Profit contribution (m EUR, excl. minorities) Belgium : 86 % CEE : 4 % 35 2524 32 34

24. 24 Profit contribution 100 m (return 21 %) Turnaround in banking since 3Q 03 : mainly driven by lower cost of risk (9 bp* versus 57 bp in FY 03) gross income margin and cost/income  stable at 2.6 %* and 36 % respectively move towards lower risk lending, in a quest for more stable results (target loss ratio: 35 bp over the cycle) Turnaround in in re-insurance since 3Q 03 : mainly driven by improved underwriting performance (combined ratio : 90 % versus 100 % in FY 03) Profit contribution (m EUR, excl. minorities) Corporate activities stepping up 35 62 89 100 * On average RWA 43 Highlights — Banking — Insurance — Areas of activity — Outlook

25. 25 Profit contribution 64 m (return 23 %) Strong performance in M/CM activity (x2 qoq and up 24 % yoy), mainly on the back of strong income growth (Modest) profit contribution for cash equity business (4 m),  in line with previous quarter (loss in 1Q 03) Good results in equity derivatives business (up 14 % yoy) on the back of : Significant income growth and the non-recurrence of negative MtM for long derivatives in previous quarters Additional income sources (without higher risk exposure) out of (structured) investment management Profit contribution (m EUR, excl. minorities) Tail wind in ‘financial markets’ 41 35 41 7 64 Highlights — Banking — Insurance — Areas of activity — Outlook

26. 26 Source : KBC CEE Outlook, May 2004 Favourable trend in core markets GDP, real growth Belgium:  0.5 % above EMU avg CEE:  1.5 % - 3 % above EMU avg 2004-05 Highlights — Banking — Insurance — Areas of activity — Outlook

27. 27 Outlook 2004 Positive momentum in economic environment : Fuelling top-line growth Mitigating costs of risk Commitment to sustained cost and underwriting discipline Should the current economic and financial context prove to be sustainable, and taking into account stable stock exchange levels, then net earnings for 2004 are expected to be at least 15 % higher than in 2003 Highlights — Banking — Insurance — Areas of activity — Outlook