Proud to deliver strong financials Herman Agneessens Chief Financial and Risk Executive

1. 2 Proud to deliver strong financialsHerman AgneessensChief Financial and Risk Executive

2. Delivering strong earnings Highlights — Banking — Insurance — Areas of activity — Outlook Net profit+ 29% yoy Group ROE 17 % 392 Net profit m EUR 355 Insurance: 32 316 304 300 287 278 280 Q avg‘01-’03 (265 m) 256 259 230 Banking: 370 159 152 Holding: -10 Especially strong momentum in banking

3. Key points Highlights — Banking — Insurance — Areas of activity — Outlook Net profit at a high level, up 29% year-on-year : • 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 • 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 %) • 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

4. Improving performance levels Highlights — Banking — Insurance — Areas of activity — Outlook * Combined ratio excluding reinsurance. ** Solvency insurance including unrealized gains.

5. Impact of consolidation changes Highlights — Banking — Insurance — Areas of activity — Outlook Main changes in scope of consolidation : 2003 2004 Q1 Q2 Q3 Q4 Q1 Q2 Full consolidation, previously equity methodat 40 % Warta Insurance (Poland) Premium income  99 m EUR, 3/4 non-life (21% of non-life total, Group) Impact on top line Impact on bottom line +2 % -1 %

6. Solid quality of banking earnings Year-on-year comparison + 186 m - 65 m + 1 m Positive impact of operational items: +120 m EUR 400 m Expenses- 0.1% Underlyingrevenue growth + 14 % Capitalgains-53% Pre-taxprofit1Q 2003 Highlights—Banking — Insurance — Areas of activity — Outlook

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) Quarterly income (m EUR) 1572 1424 1452 1416 1364 Highlights—Banking — Insurance — Areas of activity — Outlook

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) Quarterly expenses (m EUR) 938 929 931 928 897 Highlights—Banking — Insurance — Areas of activity — Outlook

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 Quarterly loan provisions (m EUR) 252 204 141 79 43 * Net specific provisions to average gross customer loans Highlights—Banking — Insurance — Areas of activity — Outlook

10. Development of earnings, banking +38 % organic growth Year-on-year comparison - 92 m + 33 m + 79 m + 186 m - 65 m + 175 m - 3 m + 36 m + 1 m 575 m 400 m Loanlosses- 85% Provisionfor futureexpenses Gain on FFA disposal Underlyingincome growth + 14 % Capitalgains -53% Lesssecuritiesimpair ments Pre-taxprofit1Q 2003 Pre-taxprofit1Q 2004 Other Expenses- 0.1% * * Gains of financial fixed assets: Belgacom in Q1 04 versus Krefima in Q1 03 Highlights—Banking — Insurance — Areas of activity — Outlook

11. Development of earnings, insurance -23 % organic change Highlights—Banking — Insurance— Areas of activity — Outlook Year-on-year comparison +14 m -40 m -17 m -281 m +6 m -4 m +288 m 57 m 40 m Pre-taxprofit1Q 2004 Less non-recurring - 9% * Pre-taxprofit1Q 2003 Investmentincome+ 13% Expenses+ 9% Other ** Premiumgrowth+ 20% Technicalcharges+ 23% * Of which impairments on equity ** Of which consolidation changes

12. Continued fast growth of premiums 24 % 35 % 33 % Highlights—Banking — Insurance— Areas of activity — Outlook • 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-life366 m Unit-linked477 m * * Interest-guaranteed life401 m * * Growth rate, including extension of scope of consolidation

13. Satisfactory efficiency and underwriting performance in non-life Highlights—Banking — Insurance— Areas of activity — Outlook • 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 93.2 % 95.4 % 97.5 % 95.4 % 95.9 %

14. Insurance business suffering from low investment yields Highlights—Banking — Insurance— Areas of activity — Outlook Investment return downto 5.6 % from 5.9 % * Corresponds with 7.3 % of the market value of the portfolio (= 10 years’ adjusted average)

15. Impairments on equity portfolio largely offset Highlights—Banking — Insurance— Areas of activity — Outlook • 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 * Gain on the equity tranche of an unwoud private CDO structure

16. Market value of securities portfolio significantly above book value

17. Updated strategy for investment book * Excl. private equity and smaller porfolios held by subsidiaries

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 Profit contribution (m EUR) 124 125 122 108 97 * Return on average allocated capital Margin and loan losses on average RWA Highlights—Banking — Insurance— Areas of activity — Outlook

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

20. 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 Expanded horizons in CEE gradually paying off Contribution of banking operations to KBC Group profit : * Profit contribution excl. return on excess capital and minority interests** adjusted for currency effects CEE 2nd home Highlights—Banking — Insurance— Areas of activity — Outlook

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

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

23. 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) 35 34 32 25 24 Belgium :86 % CEE : 4 % Highlights—Banking — Insurance— Areas of activity — Outlook

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) Corporate activities stepping up Profit contribution (m EUR, excl. minorities) 100 89 62 43 35 * On average RWA Highlights—Banking — Insurance— Areas of activity — Outlook

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 Tail wind in ‘financial markets’ Profit contribution (m EUR, excl. minorities) 64 41 41 35 7 Highlights—Banking — Insurance— Areas of activity — Outlook

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

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