KBC Bank Debt investor presentation Autumn 2005

KBC Bank

Debt investor presentationAutumn 2005Web site: www.kbc.com

2

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

KBC believes that this presentation is reliable, although some information may be condensed or incomplete

This presentation contains forward-looking statements with respect to our earnings development involving assumptions and uncertainties. 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 possesses sufficient expertise to understand the risks involved

Important information

Foto gebouw

Company profile

2005 financial highlights

- KBC Group, financial performance

- Financial headlines, KBC Bank

- Overview, other Group segments

Future earnings drivers

Capital position

4

Reminder: group structure

KBC Group

KBCInsurance

KBCAM

KBL European private bankers

GevaertKBCBank

59%19%

10%7% 5%

KBC Bank KBC Insurance KBC AM KBL epb Gevaert

1H05 net profit contribution

5

Credit ratings, KBC Bank

S&P Moody's Fitch

LT credit rating A+ Aa3 AA-(outlook) (stable) (stable) (stable)

ST credit rating A-1 P1 F1+

Recent rating actions:• March 2005: all ratings confirmed on the occasion of the merger of ‘KBC Holdings’ and ‘Almanij’ to ‘KBC Group’• March 2004: S&P’s outlook from ‘negative’ to ‘stable’• Jan 2003: Moody’s outlook from ‘negative’ to ‘stable’

6

Group business portfolio

KBC Group is a top bancassurer and asset manager in Belgium and has successfully expanded its operations in CEE-5, its 2nd home market.

Recently, Private Banking has become more of a key focus. The PB business was expanded to include a Western European network. KBC is also active – be it rather selective – in commercial banking (mostly in W. Europe) and financial markets.

Revenue geographical breakdown(1H 2005)

Belgium:- retail bancassurance- asset management- private banking- SME/corporate

CEE:- retail bancassurance- asset management- private banking- SME/corporate

Selected other markets (mostly in W. Europe):- private banking- SME/corporate- capital markets

55%25%

20%

7

Group strategy headlines

Strategy headlines include: Retail- and wealth-management-oriented, with focus on Belgium and CEE-5 and selected

Western European markets Further enhancement of efficiency (with emphasis on - but not exclusively in - CEE and

European private banking) Standalone basis (opportunistic operational alliances in certain areas to generate

economies of scale, if needed) Steady dividend growth and solid level of financial strength/solvency

The solid ‘growth and value’ outlook is reflected in ambitious financial targets, valid until 2008:

Efficiency: Cost/income, banking

Combined ratio, non-life

max. 58%

max. 95%

Financial strength:

Tier-1, banking

Solvency margin, insurance

min. 8%

min. 200%

Value creation: Adjusted ROE

EPS growth (CAGR)

min. 16%

min. 10%

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Company profile






Capital position

9

1. Group net profit at 1 253 m, up 55% y/y, generating a return on equity of 20%

2. Underlying Group profit (excl. one-offs) growing at 34%

3. Comparison of individual P/L lines with pro forma 2004 figures distorted by application of IFRS 32/39 and IFRS 4 as of 2005

4. Strong business volume growth (deposits / loans / AUM / insurance) generating strong commission income (+23%) and offsetting impact of flattening yield curve on net interest income

5. Further downtrend in expenses - cost/income ratio (banking) at 57 %

6. Very low credit-risk provisioning (loan-loss ratio at 0.06%)

7. High levels of return in most business segments, especially in Belgian retail (29%) and in CEE (54%)

8. Outlook for 2005 remains positive

1H 2005 at a glance

10

Profit trend, 1H 05

1H 2004pro forma

1H 2005 1H/1H 1H/1Hexcl.

one-offs

Gross income, net of technical insur. charges

3 919 4 163 +6% +2%

Expenses -2 373 -2 313 -3% -6%

Operating result 1 545 1 850 +20% +15%

Impairments -242 -57 -76% -76%

Associated companies -39 +33 - -27%

Net profit 810 1 253 +55% +34%

C/I, bankingCR, non-lifeROE

61%93%14%

57%94%20%

Notes:1) One-offs include the disinvestment loss at Agfa Gevaert (net bottom-line impact of –80 m) in Q2 2004, the write-back of of provisions for

operating expenses after a legal settlement (net +48m) in Q2 2004, the income related to the settlement of a ‘historic’ Slovakian loan (net +68 m) in Q1 2005, the ‘non-recurring’ value gains on shares of Irish insurer FBD (net +68m) in Q1 2005 and merger-related expenses (net 13m) in Q2 2005

2) All 2004 figures exclude impact of IAS 32/39 and IFRS 4

11

Solid business growth

Note: Growth trend, excl. (reverse) repo activity, from 31-Dec-04 to 30-Jun-05

Growth, Ytd +7% +10% +7% +11% +11%

Belgium +7% +8% +5% +10% +15%

CEE +3% +16% +15% +15% +20%

Rest of world +7% +15% +7% - +5%

30 June 2005Customer

loans o/w

mortgagesCustomer deposits(banking)

Life ‘deposits’

(insurance)

AUM(asset

management)

Outstanding 108.7 bn 30.7 bn 167.8 bn 14.9 bn 170.5 bn

12

Solid revenue trend

Gross income (in m), per half year

6 353 5 980 5 660

1H04 2H04 1H05 2H05

Down 693 m y/y, mainly due to non-recognition of 1.1 bn new unit-linked premium volume under IFRS 2005

Apart from one-offs (136 m in Q1), solid revenue ‘quality’: NII: volume growth almost offsetting negative impact

on NIM from flattening yield curve (-13 bps) High level of life insurance premium income (2 bn) Strong commission line (+23%)

13

Sustained favourable y/y cost trend

Operating expenses (in m), per half year

2 373 2 571 2 313

1H04 2H04 1H05 2H05

Ytd expenses down 3%, mainly driven by (a) cost cutting in Belgium and (b) lower staff profit-sharing bonuses (esp. at KBC Financial Producs)

Cost/income, banking, down from 61% to 57%

-3%

14

Historic low impairment levelImpairment charges (in m), per half year

242

12357

1H04 2H04 1H05 2H05

Impairments down 185 m (-76%) on the back of limited credit risk and solid equity markets

Loan-loss ratio down from 0.20% in FY 04 to 0.06%

Impairments on investments limited to 16 m versus 130 m in 1H 04

-76%

LLR Avg loans FY 04 1H 05

Belgium 58.3 0.09% 0.03%

CZ/Slovakia 10.7 0.26% 0.00%Hungary 5.4 0.64% 0.93%

Poland 3.9 0.69% 0.00%International 40.2 0.26% 0.09%

Total 118.5 0.20% 0.06%

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Company profile






Capital position

16

1H 05 profit at record level of 784 m, driven by: Strong commission income (+21%) NII almost stable despite flatening yield curve

due to solid volume growth Strict cost control (C/I at 57% incl. AM) Limited credit cost (0.06 bp) One-off income in 1Q related to settlement of

historic Slovakian loan (net 68 m)

Q2 05 (314 m), down q/q due to: One-off income in 1Q ( 68m) expected higher cost level:

Elimination of time lag in usage of IT and marketing budgets ( Q2/Q1 40m)

Higher income-related staff costs ( 27 m esp. at KBC Financial Products)

Restructuring costs (20 m) Q2 05 y/y trend: Q2 04 includes write-back (73 m) of

provision for operating charges (after legal settlement)

Key points, banking segment

332246

470

367

318

314

0

100

200

300

400

500

600

700

800

900

1H04 2H04 1H05 2H05

Pro forma IFRS 2004 IFRS 2005

BANKINGNet profit (in m)

699

564

784

3Q04

4Q04

1Q04

2Q04

1Q05

2Q05

17

NII trend, banking activities

Belgium 1.96%E x c l. IF R S 05 : sta b le

CEE 2.94%E x c l. IF R S 0 5 : - 4 0 b ps

Other(o /w e p b 0 .55 % ,

s ta b le e xc l. IFR S )

NIM 1.63%In c l. IF R S 0 5 : sta b le

E x c l. IF R S 0 5 : -1 3 b ps

Belgium+ 8%

CEE+ 1 7%

Other(o /w ep b -1 4% )

Avg. volumein te re st-be a rin g a ss e ts

+ 6%

N II 1 886mIn c l. IF R S 0 5 : + 6%E x c l. IF R S 0 5 : -3%

1H 05 (y/y trend)

18

Competitive landscape in Belgium

In 1H 05, NIM was stable y/y at 2.0 %.

In Q4 04 and Q1 05 the (obviously lagging) effect of the flattening of the yield curve was offset by the improved product mix (shift to low-yielding liquid savings deposits in anticipation of an interest rate hike). In Q2 05, customers switched to long-term investments, anticipating deposit rate cuts (-25 bps as of Q3 03).

Volume growth (deposits/loans) was strong in Belgium, further boosting NII

Since mid-2004, credit spreads have seen a significant deterioriation as a result of increased price competition. Currently, pricing rationality is tending to be restored.

2.0%1.9% 2.0%

2.0% 2.0%

1.9%

2.1% 2.1% 2.1%

1.7%

1.6%

1.3%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

Interest margin, BelgiumSpread 3m-10y treasury

Net Interest Margin, KBC Bank, Belgium Spreads on new mortgages (bps), KBC, Belgium

Jan

-04

Mar-

04

May-0

4

Ju

l-04

Sep

-04

No

v-0

4

Jan

-05

Mar-

05

May-0

5

Ju

l-05

0.88

0.76

0.41

0.48

19

Competitive landscape in Belgium

0.0% -0.1%0.1%0.0%0.0%

0.9% 1.0%

-1.1%-0.9%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

KBC

Other large banks

Small retail banks

Change in retail market share since the beginning of 2004 (avg. deposits and loans), proxy

Source: Febelfin (market sample)Includes consumer loans, mortgages, saving accounts and saving certificates

In 2004, the large banks, representing >80% of the market, lost roughly 1% market share to the benefit of smaller players. But from 1H05, this trend seems to be on the wane.

KBC has been able to keep its market share stable (and may have further increased its market share in unit-linked insurance and probably mutual funds).

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Company profile






Capital position

21

Segment structure

KBC Group NV

KBCInsurance

KBCAM KBL epb GevaertKBC

Bank

Primary segmentation by business segment

22

-55

30

122

58

89

124

-70

-20

30

80

130

180

230

280

1H04 2H04 1H05 2H05


INSURANCE

Net profit (in m)

3

119

246

1Q04

2Q04 1Q05

2Q05

4Q04

3Q04

43 3853

23

-30

41


Net profit (in m)

EUROPEAN PRIVATE BANKING

66

8

94

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

51 53 58

58 66 68

0

20

40

60

80

100

120

140

160

180

1H04 2H04 1H05 2H05


Net profit (in m)

ASSET MANAGEMENT

109 119 126

3Q04

4Q04

1Q05

2Q05

1Q04

2Q04

17 1232

-65

85 31

1H04 2H04 1H05 2H05

Pro forma IFRS2004 IFRS 2005

Net profit (in m)GEVAERT

-48

36

63

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

23

Segment structure – cont’d.

KBC Group NV

KBCInsurance

KBCAM KBL epb GevaertKBC

Bank

CEE

Markets

European private banking

Gevaert

Retail

Business customers

1

2

1 . Primary segmentation by business segment2. Additional breakdown by area of activity

24

66 74

19198

46

121

1H04 2H04 1H05 2H05

Pro forma

Net profit (in m)

87 97

295132

260

244

1H04 2H04 1H05 2H05

Pro forma

Net profit (in m)

CEE

RETAIL BELGIUM

219

357

539

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

164120

312

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

68

1753

70

9253

1H04 2H04 1H05 2H05

Pro forma

Net profit (in m)

108 91125

11894

101

1H04 2H04 1H05 2H05

Pro forma

Net profit (in m)

CAPITAL MARKETS

BUSINESS CUSTOMERS

226185

225

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

137

92 106

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

Foto gebouw

Company profile


- KBC Group financial performance

- Financial headlines KBC Bank

- Overview other Group segments


Capital position

26

Do not underestimate the market: KBC Group is well positioned:

Consolidated banking market (80% of assets held by top-4 players)

Savings ratio amongst highest in the world (every year, ca. 15% of GDP flows into fin. assets)

Market highly receptive to cross-selling of AM & insurance, fueling strong growth trend in AM and life insurance business

Strong mortgage growth trend (ca. 10% per year) expected to continue, as residential property price levels are still below other European markets

Fee rates for retail banking services only 50% of European average (gradual increase expected)

Credit quality has proven to be solid over the cycle

Top-3 market position, esp. strong in Northern region (one of the wealthiest regions in the EU)

Of the top players, level of customer satisfaction is highest

Innovative product offering in retail AM (steadily increasing market share over the past 10 yrs.)

Still high cross-selling potential for (non-life) insurance products and well-performing bancassurance distribution model

Well-diversified revenue structure (50% fee income) and further increase in fee income targeted

Further cost efficiency improvement potential, among other things, via co-sourcing of back offices with other banks

Earnings drivers in Belgium - overview

27

Mid-term financial outlook, Belgium

Gross income C/I, banking LLR Net profit

Retail 5% CAGR Low 60s < 0.25% >10% CAGR

Business customers >2% on RWA < 43% < 0.35% >10% CAGR

28

Strong market growth momentum: KBC Group is well positioned:

Earning drivers in CEE - overview

Nom. GDP growth in 2005/06 at 6.3%. Although prospects have been revised due to global economic slowdown, growth will still outgrow EMU by c. 3%

Ongoing catch-up in product penetration (currently, an avg. of 45% for banking accounts and 5% for mortgages)

Mortgage volumes growing at double-digit pace (up 51% on avg. in 2004)

Financial sector could grow five-fold if financial assets to GDP were to reach current levels of S. Europe

Solid market position in retail and corporate businesses (excl. banking in Poland) with nationwide branch networks

Competitive advantage in enhancing cross-selling of asset management and insurance products

Well positioned in HNWI and private banking through epb know-how

C/I still on the high side overall, inducing further improvement, e.g., by setting up cross-border platforms for processing transactions

Adequately provisioned balance sheet (risks under control)

Availability of capital within the Group

29

Bancassurance fueling CEE earnings

Cross-sell rates2004

CZ HU PL SK BE

Consumer loan

XLife

83% 50% 100% 94% 67%

Mortgage loan

XLife

45% 50% 100% 75% 67%

Mortgage loan

XProperty

insurance

54% 71% 42% 30% 50%

Now the model is in place:

Transfer of product know-how and streamlining of business processes and IT systems

Implementation of KBC’s distribution model and setting up of sales incentives and adequate sales approach

Unified management responsibility (joint management committee of bank and insurance)

= competitive advantage relative to other CEE players

Results are encouraging:

30

Growth in AM fueling CEE earnings

KBC is well positioned:

Strong appetite for ‘risk-free’ investments in the market (money-market, capital-guaranteed funds), fully in line with KBC’s core competencies and successful track record in Belgium

Cost/AUM below average (around 16 bps vs. 20 bps for Europe)

= competitive advantage relative to other CEE players

Results are encouraging:

AUM grew in ’04 by 25%. Continued high growth expected in coming years (CAGR of 15-20% in mutual funds and 10-15% in pension products)

Via the funds business, new customers are recruited. Existing customers using deposits to buy funds replenish deposit accounts after one year

Market share

2003 2004 1H05 Trend

CZ 19% 22% 26% +++

HU 8% 9% 11% ++

SK 6% 7% 8% +

SLO - 8% 10% ++

PL 3% 4% 4% +

31

Mid-term financial outlook, CEE

RWA CAGR

Net profit CAGR

Loan-loss ratio

Cost/Incomeratio

Banking 10% – 15% 10% – 15% < 0.50% < 60%

Premium income CAGR

Net profit CAGR

Combined ratio

Insurance 15% – 25% 25% - 35% 95%

Growth AUM mutual funds

Growth AUM pension producs

AM 15% – 20% 10% - 20%

32

Private banking in higher gear

Dual brand strategy: network-led vs. ‘independent boutique’

Growth drivers: network trade-up, extension of product offer and hiring of private bankers

Business model: integrated private banking business in selected European markets focusing on clients with >€1m of investable assets

Total assets currently amounts to 76 bn (Sep-05)

Integrated network of local pure-play private banking brands (boutique style)

Priority of reducing costs by creating synergies in a central ‘hub’ (IT, operations, support)

Growth drivers: increased share of wallet, hiring of PB managers and opportunistic M&A

Low-growth market

Focus on profitability (leveraging the hub)

If possible, steer repatriated assets to KBC onshore

No expansion, except in IFAs with short payback

Small today , but high market growth expected (>15% p.a.)

Strengthening a network-led model, leveraging Belgian experience

Belgium W. Europe onshore W. Europe offshore CEE

Opportunistic acquisitions may imply investments of 150-250 m per year

AUM 28 bn

AUM 27 bnAUM 18 bn

AUM 3 bn

33

Mid-term financial outlook, PB

AUM Growth Net profit Cost/Income

Private Banking

9% CAGR(14% Belgium, 15% CEE0% offshore and 10% W. Eur onshore)

10% CAGR < 55%

34

FY 2005 profit outlook

KBC continues to be positive on its strategy in the various business lines

Banking costs are expected to decrease in 2005

There are no signs of any substantial decline in credit quality or in underwriting performance, non-life

The interest rate and stock market environments remain factors of uncertainty

KBC has already set a mid-term objective of >10% CAGR EPS growth

On the basis of the solid 1H 05 earnings and the prevailing view regarding the relevant economic and financial parameters, KBC’s 2005 net profit is expected to exceed the10% growth level, amounting to more than 2 bn euros

Foto gebouw

Company profile


- KBC Group financial performance

- Financial headlines KBC Bank

- Overview other Group segments


Capital position

36

0

500

1000

1500

2000

2500

3000

Dec-04 1H05

Legal Econ buffer Excess

-100

100

300

500

700

900

1100

Dec-04 1H05


Solvency

8.5% 347%

397%

KBL epb(Tier-1)

KBC Insurance (solvency margin)

In m EURIn m EUR

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Dec-04 1H05


KBC Bank(Tier-1)

In m EUR

10.1% 9.8%

8.1%

37

Capital position

Capital position

Available capital 1

Surplus capital 2

Immediatefree surplus 3

KBC Bank 10.7 bn 2.1 bn 1.5 bn

KBC Insurance 2.8 bn 1.2 bn 0.4 bn

Gevaert 1.2 bn 1.0 bn 0.4 bn

KBC AM and KBL epb p.m.

Total 14.7 bn 4.3 bn 2.3 bn

Internal capital budget requirements

Deleveraging of the holding company 0.4 – 0.6 bn

Buy-out of 3rd parties in CEE 0.8 – 1.3 bn

External growth in CEE 1.0 – 2.0 bn

1 Regulatory capital under Basel I/Solvency I (incl. hybrids and minority interests, after elimination of intangibles and goodwill), based on capital position as at 30-Mar-052 Difference between available capital and internal minimum level3 Surplus capital excl. expected adverse IFRS impact on Tier-1, banking (as of 2006), unrealized gains on tied-up assets (insurance) and value of Agfa-Gevaert (timing of disposal uncertain)

Appendices

- Issue activity KBC Bank, overview- Other

Foto gebouw

39

Issue activity 2002

A total of 75 senior debt transactions issued through KBC Ifima subdivided in: 5 strategic FRN

transactions for 2 200 m EUR equivalent

70 (structured) private/ public placements for 531 m EUR equivalent

Origin of Funding 2002

Strategic FRN transactions

81%

Structured issuance

19%

40

Detail of FRN issuance over 2002

Issue size Type of transaction Start End All-in cost p.a. Tenor

EUR 500 000 000 (*) public FRN issue 21/01/2002 21/01/2005 euribor 3m + 13.37 bp 3 year

EUR 250 000 000 (*) public FRN issue 31/01/2002 21/01/2005 euribor 3m + 13.51bp 3 year

EUR 500 000 000public FRN issue

13/03/2002 13/03/2007 euribor 3m + 17.35 bp 5 year

EUR 250 000 000 (*)public FRN issue

28/03/2002 21/01/2005 euribor 3m + 12.97 bp 2y 10m

EUR 300 000 000 private FRN issue 26/04/2002 26/04/2004 euribor 3m + 8 bp 2 year


EUR 200 000 000 private FRN issue 05/07/2002 05/01/2004 euribor 3m + 5.68 bp 1.5 year

(*) fungible tranches

FRN issuance in International Markets over 2002

41

Issue activity 2003

A total of 142 senior debt transactions issued through KBC Ifima subdivided in : 3 strategic FRN

transactions for 610 m EUR equivalent

139 (structured) private/public placements for 1 259 m EUR equivalent

An ad hoc Tier-I issue of 200 m GBP (perpetual NC 16 years)


Tier-113%


28%

Structured issuance

59%

42

Detail of FRN+Tier-1 issuance over 2003





GBP 200 000 000 public Tier-1 issue 19/12/2003 Perp NC 16 euribor 3m + 8 bp Perp

FRN and Tier-1 in International Markets over 2003

43

Issue activity 2004

A total of 301 seniordebt transactions and 2 subordinated Lower Tier-II transactions (101 m EUR equivalent) issued through KBC Ifima subdivided in: 8 strategic FRN

transactions for 2 698 m EUR equivalent

295 (structured) private/ public placements for 1 940 m EUR equivalent

An ad hoc Tier-I issue of 175 m GBP (perpetual NC 15 years)


Tier-15%


55%

Structured issuance

40%

44

Detail of FRN issuance +Tier-1 issuance over 2004


EUR 500 000 000 public FRN issue 20/01/2004 20/01/2006 euribor 3m + 4.5 bp 2 year


EUR 300 000 000 public FRN issue 28/01/2004 28/01/2009 euribor 3m + 12 bp 5 year

JPY 27 000 000 000 private FRN issue 09/02/2004 09/02/2006 euribor 3m + 3 bp 2 year

EUR 200 000 000 private FRN issue 19/02/2004 19/02/2004 euribor 3m + 3 bp 2 year 1m

EUR 500 000 000 public FRN issue 15/09/2004 15/09/2004 euribor 3m + 8.5 bp 4 year

CZK 1 100 000 000 private zero coupon issue 25/10/2004 25/10/2004 pribor 3m - 1 bp 2 year

EUR 100 000 000 Private FRN issue 27/10/2004 27/10/2004 euribor 3m flat 2 year

EUR 300 000 000 public FRN issue 02/12/2004 02/12/2004 euribor 3m + 8 bp 3.8 year

EUR 150 000 000 private FRN issue 01/12/2004 01/12/2004 euribor 3m + 2.5 bp 2 year

EUR 500 000 000 Private FRN issue 14/12/2004 14/12/2004 euribor 3m + 9.5 bp 5 year

USD 27 351 535 private issue 16/02/2005 16/02/2005 euribor 3m + 4.5 bp 5 year

GBP 175 000 000 public Tier-1 issue 03/11/2004 03/11/2004 libor 3m + 79 bp Perp

FRN and Tier-1 issuance in International Markets over 2004

45

Issue activity 2005 (till 31st august)

A total of 402 seniordebt transactions and 7 subordinated Lower Tier-II transactions (409 m EUR equivalent) issued through KBC Ifima subdivided in: 3 strategic FRN

transactions for 615 m EUR equivalent

399 (structured) private/ public placements for 3 053 m EUR equivalent

Origin of Funding 2005 (till 31st August)


17%

Structured issuance

83%

46

Detail of FRN issuance over 2005(till 31st August)


EUR 215 000 000 private FRN issue 10/01/2005 10/01/2010 euribor 3m + 9.5 bp 5 year

EUR 250 000 000 private FRN issue 23/03/2005 23/03/2007 euribor 3m flat 2 year

EUR 100 000 000 private FRN issue 24/04/2005 24/04/2007 euribor 3m - 1 bp 2 year

FRN issuance in International Markets over 2005

47

Maturity buckets of strategic FRN

Maturity buckets of outstanding strategic FRN

0

500

1 000

1 500

2 000

2 500

1H06 1H07 1H08 2H08 1H09 2H09 1H10

Am

ou

nt

in m

EU

R

Appendices

- Issue activity KBC Bank, overview- Other

Foto gebouw

49

Market cap ranking in Euroland

1 BNP Paribas (35 bn) 1 BNP Paribas (43 bn) 1 BSCH (63 bn)2 BSCH (31bn) 2 BSCH (37 bn) 2 BNP Paribas (53 bn)

3 BBVA (29 bn) 3 BBVA (36 bn) 3 BBVA (47 bn)

4 Deutsche Bank (26bn) 4 Société Générale (30 bn) 4 Deutsche Bank (39 bn)

5 ABN AMRO (25 bn) 5 Deutsche Bank (30 bn) 5 Société Générale (39 bn)

6 Société Générale (24 bn) 6 Crédit Agricole (29 bn) 6 ABN AMRO (37 bn)7 Unicredito (22 bn) 7 ABN AMRO (28 bn) 7 Crédit Agricole (33 bn)

8 Fortis (22 bn) 8 Unicredit (24 bn) 8 Fortis (31 bn)9 Crédit Agricole (14bn) 9 Fortis (23 bn) 9 Unicredit (29 bn)

10 Dexia (14 bn) 10 Intesa BCO (17 bn) 10 KBC (25 bn)

11 Intesa BCI (12bn) 11 Dexia (16 bn) 11 Intesa BCI (23 bn)

12 Allied Irish Banks (12 bn) 12 KBC (15 bn) 12 Dexia (20bn)

13 Bank of Ireland (10 bn) 13 SanPaolo IMI (13 bn) 13 San Paolo IMI (18 bn)

14 KBC (9 bn) 14 Allied Irish Banks (11 bn) 14 HVB (17 bn)15 SanPaolo IMI (9 bn) 15 HVB (10 bn) 15 Allied Irish Banks (16 bn)16 Banco Popular (8 bn) 16 Commerzbank (8 bn) 16 Bank Austria (13 bn)

17 HVB (7 bn) 17 Erste Bank (8 bn) 17 Commerzbank (13bn)

18 Mediobanca (6 bn) 18 Bank Austria (8 bn) 18 Mediobanca (12 bn)

19 Bca MPS (6 bn) 19 Mediobanca (7bn) 19 Bank of Ireland (12 bn)

20 Bco Popular (5 bn) 20 Bca MPS (6 bn) 20 Bco Popular (12 bn)

Dec 2002 Aug 2004 Aug 2005

DJ Euro Stoxx Banksconstituents

50

Shareholder structure

CERA/Almancora27.1%

(own shares: 2.3%, including ESOP hedge)

Other committed shareholders 11.7%

MRBB11.6%

Free float47.3%

KBC is majority-owned by a group of committed shareholders, thereby providing continuity for the pursuit of long-term strategic goals

Core shareholders include the Cera/Almancora Group (co-operative investment company), a farmers’ association (MRBB) and a syndicate of industrialist families

Situation as at 30-Jun-05

51

2005 H1

25%

KBC’s presence in CEE

CEE profit contribution to KBC Group

Retail 57%

Other22%

SME/Corp 21%

Share of business segments in gross income, CEE Banking

Profit contribution, CZ + SK

2003 2004

143 m 162 m

Czech Republic

Total assets, bank: 18 bn EURMarket share, bank: 21% (No. 2)Market share, life: 8% (No. 5)Market share, non-life: 4% (No. 6)

Profit contribution, Poland

2003 2004

-295 m 25 m


Profit contribution, Hungary

2003 2004

11 m 31 m


Slovakia


Profit contribution, Slovenia

2003 2004

10 m 26 m

Minority stake (34%)Market share, bank: 41% (No. 1)Market share, life: 6% (No. 5)

52

Group income statement, 1H 2005

(in m euros) Banking Insurance AM KBL epb Gevaert Holding Group

Net interest incomeGross earned premium, insuranceDividend incomeNet gains from FI at FV Net realised gains from AFS assetsNet fee and commission incomeOther income

1 8070

67121

63605223

2661 707

864

144-148

29

-10781

1841

7907

8221

20633

-203

1437

049

-3000

-40

-2235

2 1221 707

169225265839330

Gross income 2 887 2 088 199 429 101 200 5 660

Operating expensesImpairments - o/w on loans and receivables - o/w on AFS assetsGross technical charges, insuranceCeded reinsurance resultShare in results, associated companies

-1 685-34-34

100

17

-254-20

-1-18

- 1464-33

0

-30000000

-287-501002

-4211100

15

-257000000

-2 313-57-34-16

-1 464-3333

Profit before taxes 1 185 316 169 137 75 -57 1 826

Income tax expense

Minority interests

-306-96

-66-4

-430

-39-4

-12-1

-20

-469-104

Net profit 784 246 126 94 63 -59 1 253

Excl. intrasegment eliminations

53

Areas of activity overview, 1H 2005

(in m euros) Retail CEE SME/Corp.

Markets KBL epb Gevaert Total

Banking and AM

Gross incomeOperating expensesImpairmentsIncome tax expenseMinority interestsNet profit – group share

1 288-734

+7-178

0383

925-526

-7-71-41282

508-183

-34-84

0208

410-235

-2-67

0106

429-289

-5-39

-494

3 515-2 004

-39-415-100

1 003

Insurance

Gross income (- techn. ch.)Operating expensesImpairmentsIncome tax expenseMinority interestsNet profit – group share

373-156

-15-46

-1155

131-83

-1-10

-730

47-15

-4-10

017

591-254

-20-66

-4246

Holding Co

Net profit – group share 63 3

Group total

Net profit – Group shareShare in group resultROAC

53943%29%

31225%54%

22518%20%

1068%

28%

948%

16%

635%

11%

1 253

20%

Excl. non-allocated results

54

Contact information

Investor Relations Office

Luc CoolNele KindtMarina Kanamori

[email protected]

Surf to www.kbc.com for the latest update.

KBC Bank Debt investor presentation Autumn 2005

Documents

Transcript of KBC Bank Debt investor presentation Autumn 2005