KBC Group Retail bancassurance and private banking on the Belgian market April 2005

1. KBC Group Retail bancassurance and private banking on the Belgian marketApril 2005 Web site: www.kbc.comTicker codes: KBC BB (Bloomberg) KBKBT BR (Reuters)ISIN code: BE0003565737

2. Contact information Investor Relations OfficeLuc CoolNele KindtMarina KanamoriTel.: +32 2 429 49 16 investor.relations@kbc.com Surf to www.kbc.com for the latest update.

3. Disclaimer • This presentation is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security. • Although the statements of fact in this presentation have been obtained from and are based on sources that KBC believes to be reliable, KBC does not guarantee their accuracy, and any such information may be condensed or incomplete. • This presentation contains forward-looking statements with respect to our strategies and earnings development. By their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities. The risk exists that these statements may not be fulfilled and that future results differ materially. • By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved.

4. ING Financials Day - 18 April 2005 • Introduction W. Duron • Retail bancassurance in Belgium F. Florquin • Private banking in Belgium F. Florquin • Synergies for private banking W. Duronwithin KBC Group

5. Foto gebouw 1 Introduction

6. Benelux players have considerable scale Euroland top-30 banks, by market cap * KBC Group : 24 bn euros * DJ Euro Stoxx Banks constituents ranking by market cap, as at 14 March 2005

7. KBC Group’s business portfolio • Although KBC has successfully expanded its operations in CEE, it primarily is a top bancassurer and asset manager in Belgium, its historical home market • Thanks to the merger with Almanij (March 2005), the private banking activities were expanded to include a Western European network. PB has become a more pronounced key focus Revenue breakdown* Capital markets Gevaert International SME/corporate Belgium :- retail bancassurance- private banking- asset management- SME and corporates Europeanprivate banking CEE * 2004 pro forma figures, excl. group items

8. Belgian market, headlines Market shares: 31-Dec-03 • The banking landscape in Belgium is highly consolidated (80%held by top-4 banks) • The market growth in the field of wealth management is significant (high savings rate) • The market is highly receptive to cross-selling of AM & insurance products • KBC is a top-3 player, especially strong in the Northern region

9. Retail and private bancassurance * Return on capital Profit contribution Target 2007:high single digit CAGR Target 2007:sustained high level Cost/income ratio, banking Combined ratio, non-life Target 2007:further down to low 60-ties Target 2007:max 95% over-the-cycle * excl. European private banking

10. European private banking network Netherlands:Theodoor GilissenAcquired in ’03 – participation: 100% UK:Brown ShipleyAcquired in ’89 – participation: 100% Germany:Merck Finck & CoAcquired in ’99 – participation: 100% Belgium:KBC Private bankingPuilaetco private bankers (100% participation acquired in ’04) Switzerland:Kredietbank (Suisse)Historical presence Luxembourg:Kredietbank LuxembourgParent company for European PB France:KBL France Acquired in ’98 – participation: 100% Spain:Banco UrquijoAcquired in ’98 – participation: 100% Monaco:KB Luxembourg (Monaco)Historical presence Italy:Fumagalli SoldanAcquired in ’01 – participation: 95% • Since ‘98, KBC Group (KBL) has developed a private banking network throughout Western Europe, anticipating further erosion of its offshore activities for a/o Belgian customers in Luxembourg • Private banking assets outside Belgium grew to 43 bn across the 10 countries

11. Foto gebouw 2 Retail bancassurancein Belgium

12. Retail and private bancassurance, Belgium Return on capital Profit contribution Core retailRetail and private bancassurance Core retailOther retail and private banking 583 382 Target 2007:high single digit CAGR Target 2007:sustained high level Cost/income ratio Combined ratio, non-life Core retailRetail and private bancassurance Core retailRetail and private bancassurance Target 2007:further down to low 60-ties Target 2007:max 95% over-the-cycle * excl. European private banking

13. Nice results 2004 Core retail only: How to achieve further growth ?

14. Sharp increase in productivity Efficiencystrategy Strong growth in revenue per FTE Strong growth in revenue per branch Revenues per branch, 1998 = 100 Revenues per FTE, 1998 = 100

15. Cost-savings largely implemented Efficiencystrategy Core retail only, cost trend, in m EUR Up to 2004: significant decline in costs 2001 costs Spontaneous cost inflation 1 1 Cutback in branch FTEs: -1 300 or -18% 2 2 Reduction in No. of branches: -680 or -45% 3 3 Integration of ICT platforms and of products and support services 4 4 Henceforth: upwards pressure on costs 2004 costs Target:cost growth below wage inflation rate Spontaneous cost inflation 1 1 2007 costs

16. Rather limited potential for further automation Efficiency strategy Potential for further automation Rate of automation

17. Strict cost control remains important Efficiency strategy Closely-knit network High wage costs • Wage costs in Belgium are higher than in other European countries • Average level of education of branch staff is higher than in other European countries Source: Febelfin

18. Low over-the-cycle credit-loss charges Risk strategy Core retail Belgium only Trend of impairments in credit portfolio Write-downs vs. risk-weighted assets 0.24% 0.23% 0.09% Target:<0.25%over-the-cycle 2002 2003 2004

19. Focus on revenue growth strategy Growth strategy (*) Core retail Belgium only Revenue growth (*) in 2001-2004 period partly driven by positive pricing effects. Revenue growth (*) in 2004-2007 period driven by positive volume effects and negative price effects Margin pressure ½ due to positive pricing effects Ambition:maintain growth trend Achieved+5% p.a.revenue growth

20. Growth in the savings & investments field How to grow within a mature market? Growthstrategy 1 Attracting new funds Proven performance Market potential Estimated nominal GDP growth rate Market share of mutual funds Savings rate New funds attracted – in bn

21. Growth in the insurance field How to grow within a mature market? Growthstrategy 1 2 Insurance Attracting new funds High internal potential Proven performance Premium growth, non-life X-sell results

22. Growth in the lending field 3 Lending High expectations for growth in retail lending Total market – Mortgage loans • Small business loans: • Moderate growth trend, in line with nominal GDP growth (+4.2% in 2005) • But, still additional growth potential via raising amounts of advances in current account (with higher margins) and increasing non-credit-linked revenues CAGR 9% • Mortage loans: strong growth on the back of: • steep rise in Belgian real estate prices • real estate prices still below level of other European markets Source: NBB How to grow within a mature market? Growth strategy 1 2 Attracting new funds Insurance

23. Obstacles to growth How to grow within a mature market? Growthstrategy 1 2 3 Attracting new funds Lending Insurance Sharper price competition ! Hardening credit-pricing cycle Threats to growth according to analysts Nos. 1 & 2 based on ranking Small busniess loans Mortgages

24. Catalysts for growth How to grow within a mature market? Growthstrategy 1 2 3 Attracting new funds Insurance Lending Enhancing customer satisfaction Top-4 bancassurers only

25. Foto gebouw 3 Private banking in Belgium

26. Business model in Belgium • KBC PB is a seperate channel for distribution of wealth management services to HNWI • Focus: customers with 1-5m of investible assets. Downflow of below-threshold clients to retail (> 65% are (ex-)entrepreneurs and owners of own business or practice; others are upper middle management/senior executives, heirs to a large fortune, etc.) • 19 dedicated branches focused on onshore private banking; broad local market representation (in the Northern part of Belgium) • Network-led model; private banking under corporate brand with growth primarily through identifying and converting clients from the retail and corporate network • Full-service banking (in partnership with the retail business*) - broad range of wealth management products and services • Controlled open architecture: > 90% investment management in-house, with an emphasis on product design (structured products, particularly capital guaranteed products) and quantitative techniques * PB clients are served by retail branches for their standard banking needs

27. Existing client relationships offer a high degree of opportunity Leveraging links with retail and corporate branches Acquisition focus Prospects known to corporate banches Retail clients< 1 m withpotential Prospects known to retail branches Retail clients> 1 m Other prospects Retail clients> 2.5 m Acquisition costs KBC is primary bank (e.g. SME)KBC is second bank (e.g. SME) high low

28. Key performance figures Growth primarily from retail trade-up* Growth of relationships base CAGR 9% 2001 2002 2003 2004 2001 2002 2003 2004 * New clients with former retail relationship

29. Key performance figures Client asset growth (bn) Cost/income Contribution (bn; pre-tax)

30. Key performance figures Customer satisfaction (Very) satisfied (Very) good Yes Exits to competition 97% 94% 91% 1.6% 1.6% 1,5% Are you satisfied with your CRO’s competence level? Would you describe your CRO as proactive? How do you rate your experience with PB overall? 2002 2003 2004 Source: Annual customer survey 2004; response rate: 21% of all PB clients

31. Foto gebouw 4 Synergies for private banking within KBC Group

32. Quick reminder • Until 31 Dec. 04: • As of 01 Jan. 05: Almanij KBCBank & Insurance Gevaert KBLEuropean Private Bankers KBC Bank KBC Insurance KBCAsset Management KBC Group NV KBCBank KBCInsurance KBCAM KBLEuropean Private Bankers Gevaert

33. KBC Group’s epb* today • Presence in 10 countries outside Belgium, multi-domestic positioning • No link with traditional banking network (contrary to the network-led model in Belgium) • Highly based on open architecture (though product penetration of in-house products to increase within new KBC Group) * epb: European private banking

34. Key financials of epb* Net profit Assets under management In bn EUR In m EUR (Lux GAAP) CAGR +6% CAGR +6% Return on equity Tier-1 ratio Lux GAAP Lux GAAP * Reminder: figures excl. KBC PB in Belgium

35. Synergies within enlarged KBC Group • Synergies via integrating epb with KBC PB (Belgium) and KBC AM • Total synergy programme of NPV 500 m(net of restructuring and capital costs, post- tax) • Estimated capital and restructuring costs are ca. 50m over 5 years • Recurring pre-tax benefits of 75 m (peak level), half of which can be realized by 2006 • Cashflow positive every year • 40% revenue and 60% cost (and cost avoidance) benefits • All synergies reach their peak by 2009 (some faster than others) • Portfolio of 32 synergies, 19 ‘large’ and 13 ‘small’ Synergy benefit, in m (see note below) Revenue Cost + Cost Avoidance Note: ‘Synergy benefit’ described throughout as peak recurring annual increase in pre-tax bottom-line result vs. base business

36. KBC Group