KBCBank & Insurance Group

2000 Results

Presentation for financial analysts 5 March 2001

2

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

3

Year 2000 Highlights

Net group profits increase : 87.7% (+20.2% excl. gain on CCF)

EPS up : 19.5% (excl. gain on CCF)

ROE increases to 23.3%

Central Europe established as second home market

Strong increase of assets under management

Merger integration progressing as planned

Strategy updated and objectives enhanced

4

In millions of EUR 20001999 %

Consolidated profit - Group share *excl. gain on CCF

- Banking *excl. gain on CCF

- Insurance

- Holding company

Key figures per share (in EUR)- Net earnings *excl. gain on CCF

- Net asset value

- Net dividend

969.7 969.7

714.7714.7

271.3

-16.3

3.263.26

33.8

0.9225

1820.7 1165.5

1520.9876.7

320.6

-20.9

6.093.90

35.2

1.065

87.7 20.2

112.822.7

18.2

-

- 19.5

4.1

15.4

Key Figures

5

Increased Profitability

707798

970

1166

1997 1998 1999 2000

Net profit ROE

+12.8%+34%

+21.6% +20.2%

1821incl. CCF

+87.7%

16.2% 16.1%

20.5%23.3%In

mill

ions

of

EU

R

6

Solid solvency ratios

2000Bank Tier-1 ratio CAD ratio

Insurance Solvency ratio (1)

7.2%

11.5%

311%

9.5%

16.0%

307%

(1) excluding unrealized capital gains

1998

7.4%

12.8%

298%

1999

7

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

8

In millions of EUR 2000 Organic %

Gross operating incomeGeneral expenses

Operating result

Value adjustments and provisionsExtraordinary result

Profit before tax

Taxes

Minority interests

Profit after tax

Profit after tax excl. CCF

1999 %

3868-2524

1344

-565

207

986

-183

-88

715

715

4656-3094

1562

-334

693

1922

-243

-158

1521

877

20.422.6

16.3

-41.0

-

95.0

32.8

-

112.7

22.7

8.76.5

13.0

-43.0

-

26.1

25.3

-

-

17.1

BankingSummary

9

1960

732

610

133

2157

636

756

319

2437

836

1034

349

1998 1999 2000

In m

illio

ns o

f E

UR

+9%

+37%

+31%

+13%

+20.4%

Total3435

Total3868

Total4656

BankingIncome Stream

Other income 8% 8%Commission income 20% 22%Profit on financial transactions 16% 18%Net interest income (incl. dividends) 56% 52%

% of total income 1999 2000

10

BankingProvisioning for credit risks

Specific provisionsDomesticInternational

Loan loss ratioDomesticInternational

Gen. prov. for international loans

Provisions for country risks

Provisions for dioxin crisis

In millions of EUR 20001999

-270.4-103.2-167.1

0.24%0.48%

-12.0

-34.0

-25.2

-283.7-253.0

-30.7

0.53%0.09%

-24.5

48.0

18.9

11

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

12

InsuranceSummary

In millions of EUR 2000

Gross marginGeneral expenses

Operating result

Non-recurring resultExtraordinary result

Profit before tax

Taxes

Minority interests

Profit after tax

1999

658-344

312

16-12

316

-41

-4

271

%

748-374

374

25-5

392

-74

2

321

13.78.8

19.1

--

29.6

80.3

-

18.2

13

InsuranceBusiness mix

1999Gross premiums

2144.5 million EUR

fire 8%

accepted business 8%

motor 12%

individuallife 58%

group life 4% other non-life

10%

2000Gross premiums

2704.7 million EUR (+26.1%)

individuallife 65%

group life 4%

fire 7%

accepted business 6%

motor 10%

other non-life 8%

14

101

117

18

117

128

67

161

124

86

1998 1999 2000

In m

illio

ns o

f E

UR

+28.4%

-3.1%

+37.6%

+18.9%

Total236

Total312

Total371

InsuranceContribution to recurring result

Non-technical 22% 23%Non-life 41% 33%Life 38% 43%

% of total recurring result 1999 2000

15

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

16

Profit Contribution by Activity

1999 2000

353

452

2066

109

148

91

13191

173

306

196

+28%

+230%

+36%+44%

+90%-36%

In m

illio

ns o

f E

UR

Retailbancassurance

CentralEurope

Corporateservices

Assetmanagement

Marketactivities

Groupitems

% profit contribution 36% 39% 2% 6% 11% 13% 9% 11% 9% 15% 32% 17%

17

Retail Bancassurance

Overview 1999 2000 Profit contribution

Allocated equity

Percentage of equity

ROE

Progress in bancassurance and e-commerce

Merger operations on track

Prospects

353.2 m EUR

2091.6 m EUR

49.6%

16.8%

452.3 m EUR

2115.0 m EUR

36.6%

21.0%

18

Retail Bancassurance in BelgiumCross-selling penetration

Total clients bank1 337 204 (=) Total clients insurance

743 716 (+6.1%)

Cross-selling

510 896 clients holding at least 1 bank AND 1 insurance product 32.5% of overall client base 38.2% of bank client base

155 750 clients holding at least 3 bank AND 3 insurance products 9.9% of overall client base 11.6% of bank client base

510 896mutual clients

19

Merger Process UpdateIntegration of bank branches

907

1480

1315

1212

1118

800

900

1000

1100

1200

1300

1400

1500

1600

1999 2000 2001 2002 2003

planned-408

achieved-165

20

E-commerce

Expansion of e-banking & e-insurance a top priority

September 2000 : all retail KBC clients have free access to online Internet banking serviceson request

Mid-September 2000 : launch of ‘My KBC’Internet applications via e-mail, SMS

January 2001 : acquisition of Etrasoft e-commerce trading platform

KBC-Online : End of 2000 : 90 000 clients Target by end of 2002 : 300 000 clients

21

Asset ManagementFurther growth in assets under management

23,9

2,84,4

27,4

4,64,8

36,8

9,8

5,3

43,1

12,9

5,1

8,5

1997 1998 1999 2000

31.1

36.8 (+18.3%)

51.9 (+41%)

In b

illio

n s o

f E

UR

69.6 (+34.1%)

KBC AM ltd. (Ireland) - 12%Private Banking 10% 7%Institutional funds 19% 19%Mutual funds 71% 62%

% of total AUM 1999 2000

22

Asset Management

Overview 1999 2000

Profit contribution

Market share in Belgium,31 Dec. 2000:

Acquisition of UBIM : investment 105 m EUR or 1.35% of AUM

Prospects

90.7 m EUR

28.2%

131.2 m EUR

29.2%

23

Corporate Services

Overview 1999 2000

Profit contribution

Allocated equity

Percentage of equity

ROE

Focus on small- & mid-caps

Prospects

109.1 m EUR

1979.5 m EUR

46.9%

5.9%

148.0 m EUR

2188.3 m EUR

37.9%

7.1%

24

Market Activities

Overview 1999 2000

Profit contribution

Allocated equity

Percentage of equity

ROE

Strong performance by KBC Securities and KBC Financial Products

Acquisition of Peel Hunt key to building European platform

Prospects

90.8 m EUR

848.3 m EUR

20.1%

9.8%

172.4 m EUR

557.3 m EUR

9.6%

24.6%

25

Acquisition of Peel Hunt

Leading UK securities house specialized in small- & mid-caps

Offer price 260 m £ (450 p per share)

Acquisition funded with excess capital

Consistent with strategy to expand corporate finance activities

26

Central Europe

Overview 1999 2000

Profit contribution

Allocated equity

Percentage of equity

ROE

Prospects

20.3 m EUR

603.9 m EUR

14.3%

7.6%

66.3 m EUR

795.1 m EUR

13.8%

10.4%

27

Central Europe

PolandKredyt BankAgropolisaWarta

Czech & Slovak Rep.CSOBCSOB Pojist’ovnaPatria

HungaryK&H BankK&H Bank after mergerK&H LifeArgosz

49.9% (+1.4%)49.9% (+26.6%)40.0% (+40%)

81.5% (-0.8%)75.8% (=) 91.9% (+91.9%)

73.3% (+40.7%)60%50%95.4% (=)

Ownership (*)

213.47.2

123.2

1361.911.949.0

132.1- 2.5

23.9

investmentin millions of EUR

5.8%0.6%

12%

23.4%0.5% -

8.8%15.1%0.5%3.1%

market share

(*) change in ownership compared to 1999

28

IPB’s assets total 7.5 billion EUR

Assets acquired by CSOB with 100% guarantee from Czech government

75% of IPB loan book is non-performing

Strong client base (3 million retail clients)

Integration on track

Payment : recapitalization at 7% of RWA +20%

Negotiation to acquire IPB Insurance

IPB

29

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

30

Group Strategy

To be an independent, medium-sized bancassurer in Europe.

To achieve high, sustainable growth in shareholder value.

31

Strategic Focus Focus on 4 activities

Retail bancassurance Corporate services Asset management Market activities

Focus on Europe Belgium : home market Central Europe : second home market Western Europe : smaller countries/regions, niches.

Other regions if higher return than general targets

Focus on ‘local’ clients Retail SME

32

ROE and Capital Allocation

ROE target per activity

Capital re-allocated : activities with low or volatile ROE activities with high or stable ROE

Corporate lending - Market activities

Retail bancassuranceAsset managementCorporate finance

33

Cost of capital

Creation of shareholder valueROE Targets per activity

Retailbancassurance

Corporate services

Asset management

Market activities

Central Europe

TOTAL at operational level

TOTAL at group level

8.5%

10.5%

8%

11.5%

13%

9.5%

-

MinimumROE target

ROE realized

20.0%

12.5%

13.0%

21.0%

15.0%

17%

22%

21.0%

7.1%

-

24.6%

10.4%

17.4%

23.3%

34

Minimum Target

Realized 31 Dec. ‘00

ROE at holding-co. level

EPS growth

Cost/income ratio bank

Combined ratio insurer

Tier-1 ratio bank

CAD ratio bank

Solvency ratio insurer

22%

15% p.a.

55% by 2004

103% by 2004

7%

11%

200%

23.3%

19.6%

64.2%

106.6%

9.5%

16%

307%

KBC Bank & Insurance GroupOverall financial targets

35

KBC Bank & Insurance Group

Group results and key features

Results - Banking

Results - Insurance

Activities Retail bancassurance Asset management Corporate services Market activities Central Europe

Strategy

Investor Considerations

36

KBC Bank & Insurance GroupInvestor considerations

Fundamentals Strong market shares - diversified income Unique bancassurance concept Sound solvency ratios

Strategy Focus ROE-based capital allocation Shareholder-value-driven

Outlook Merger benefits starting to realize Central Europe : solid base for expansion Continued high profitability in niches

KBCBank & Insurance Group

2000 Results

Presentation for financial analysts 5 March 2001

Appendix

39

Lending

Consumer creditMortgages

Deposits

Savings depositsSavings certificates

Mutual Funds

Insurance

Life (total)Unit-linkedNon-life

26.7%25.2%

19.4%17.9%

29.2%

12.8%18.1%

8.6%

+1.8%+0.9%

-0.5% +0.2%

+1%

+0.9%-1.9%-0.3%

Market Shares in BelgiumRetail Bancassurance

31-12-00 Dec 99

40

57,3

27,7

63,3

29,9

59,5

47,7

31-12-98 31-12-99 31-12-00

36,8

16,7

43,1

21,5

46,6

32,4

31-12-98 31-12-99 31-12-00

Banking

Lending Customer deposits

+50%

+8%

+60%

-6%

Belgium Abroad

In billions of EUR

Total53.5

Total64.6

Total79.0

Total85.0

Total93.2

Total107.2

41

Banking Asset quality

Non-performing credits versus total portfolio Domestic International (*)

Coverage of non-performingcredits by specific provisions Domestic International (*)

(*) Excluding the ‘historic portfolio’ of CSOB, which is fully covered by (state) guarantees and provisions.

1.8%

2.0%

1.3%

67.2%

69.3%

60.9%

31-12-98 31-12-99 31-12-00

2.1%

2.1%

2.1%

64.0%

64.5%

63.2%

2.1%

2.5%

1.7%

67.7%

67.2%

68.6%

42

Efficiency Ratios

31-12-00

Cost / Income ratio

Net expense ratio

° Non-life

Net loss ratio

Combined ratio

31-12-98 31-12-99

60.0%

33.4%

70.0%

103.4%

65.3%

33.6%

72.5%

106.1%

66.5%(*)64.2%

34.0%

72.6%

106.6%

(*) excl. impact change in consolidation scope

43

Insurance Evolution of gross premiums

924.5

407.5 408.5

170.8

934.5

1458.6

668.2 634.4 644.8

140.7 168.1 192.6

0

200

400

600

800

1000

1200

1400

1600

Trad. Life Unit Linked Non-life Acceptances

1998

1999

2000

In m

illio

ns o

f E

UR

(=)

(+56%)

(+1.6%)

(+14%)

44

InsurancePremium distribution by channel

65 67 69

2522 20

10 11 11

Agents Brokers Bankbranches

199819992000

12 11 106 5 5

82 8487

Agents Brokers Bankbranches

Non-life LifeIn %

45

KBC Bank & Insurance GroupMerger NPV

1572

36

-682

1518

346

-596

original NPV revised NPV

Integration costsIncome synergiesCost savings

Total: 926 mn EURTotal: 1268 mn EUR + 37 %

Merger NPVbetter than planned thanks to increasedincome synergies

Cross-sellingto CERA clients

NPV revised in oct 2000

46

Merger process updateCreation of the KBC ITplatform on target

100%

80%

60%

37%

18%

3Q‘99 h100 h200 h101

Done

IT-workload

remaining 20% is spread over time to close down old KB system

47

Almanij NV

KBC Bank & Insurance

Holding NV

KBC Bank KBC Insurance

67.8%

100%100%

28.5% FreeFloat

KBC Asset Man45%

55%

KBC Group structure

As controlling shareholder, Almanij is committed to support KBC

48As per Dec. 2000

KBC Bank & Insurance GroupGroup key features

Staff: 35 000

Customers: in first home market (Belgium): +/- 2.6

million in second home market (C-Europe): +/- 4.5

million

Branches: domestic bank branches: 1 454

(KBC+CBC) independent insurance agents: 765

International presence: 30 countries

49

19991998

Net profit

Net profit (excl. CCF)

P/E

Gross dividend

Pay-out ratio

Net asset value

Price/NAV

2.69

25.0

1.09

40.6%

32.3

2.1

3.26

16.4

1.23

37.7%

33.8

1.6

2000

6.09

3.90

11.8

1.24

36.4%

35.2

1.3

KBC Bank & Insurance GroupKey figures per share

50

1 HSBC 133.22 UBS 77.33 ING 73.24 Royal Bnk of Scotl. 63.55 Credit Suisse 60.96 Lloyds TSB 56.17 Deutsche Bank 55.88 Barclays 55.49 BBV Argentaria 51.9

10 Bco Santander 50.511 BNP 40.212 Fortis 39.913 ABN Amro 36.414 Bay Hypo Ver 35.1

15 Soc. Générale 27.816 Uni Credito 26.117 Abbey Natl 25.418 Halifax 24.719 Dresdner Bank 23.520 San Paolo - IMI 23.421 Banca Intesa 23.222 Nordic Baltic 23.123 Stand. Chrtd 18.024 Dexia 17.525 Bank Scotl. 15.126 Commerzbank 14.827 KBC Holdings 14.628 Danske Bank 14.2

(*) 01.03.01 - marketcapitalization in bn. EURO

KBC Bank & Insurance GroupRanking in Europe (*)

51

Number of outstanding shares 299 295 556per 30.09.00

Free float - 28.5% 85 405 006

- Quoted on Euronext Brussels (BXS)

- Included in the Euronext 100, Bel-20, Euro STOXX Financials, FTSE E300 Financials indices

Yield KBC Bel-20 DJEuroStoxx Banks

1 jaar (2000) -11.3% -6.0% 7.5%

3 jaar (1998-2000) 7.9% 11.1% 15.7%

6 jaar (1995-2000) 21.1% 17.6% 23.5%

KBC Bank & Insurance GroupShareholder information

KBCBank & Insurance Group

2000 Results

Presentation for financial analysts 5 march 2001