KBC Bank & Insurance Group General Meeting of Shareholders 25 April 2002.

KBC Bank & Insurance Group

General Meeting of Shareholders

25 April 2002

2

KBC Bank & Insurance GroupResults

Consolidated profit (in EUR m)

- Contribution, banking- Contribution, insurance- Contribution, holding company

Consolidated profit (%)

- Contribution, banking- Contribution, insurance

(*) 2000: excluding gain realized on sale of investment in CCF.

1 166

877321- 31

75.0%27.5%- 2.5%

1 022

698360- 35

68%35%- 3%

- 12.3%

- 20.4%+ 12.2%+10.3%

- --

2000 (1) 2001 %

3

KBC Bank & Insurance GroupRatios

Profitability/EfficiencyReturn on equityCost/income ratio, bankCombined ratio, insurance

Solvency

Tier-1 ratio, bankSolvency ratio, insurance

(*) 2000: excluding gain realized on sale of investment in CCF.

23.366.5

106.3

9.5%307%

17.370.5

103.8

8.8%318%

2000 (1) 2001

4

KBC Bank & Insurance GroupMain developments

Positive developments Increase in market share

Home loans : 25.6% (+ 0.5%) Deposit books : 20.0% (+ 0.6%) Savings certificates : 17.8% (- 0.1%) Unit-linked life assurance : 20.2% (+ 0.5%)

Increase in profit contribution from Central Europe Excellent result in non-life insurance business 2.5 bn EUR growth in assets under management

Negative developments Unfavourable economic situation

High provisions for loans Adverse financial markets

Fees from securities business: - 12% (organic) Negative result, equity and derivatives subsidiaries Premium income, unit-linked life assurance : - 15.7%

5

In millions of EUR 2001

Gross incomeGeneral admin. expenses

Operating result

Value adjustments and provisions Extraordinary result

Profit before tax

Taxes

Minority interests

Profit after tax

2000 %

4656- 3094

1562

- 334

49

1277

- 243

- 158

877 (1)

4977- 3510

1467

- 376

80

1171

- 313

- 160

698

6.913.4

- 6.1

12.8

-

- 8.4

28.8

1.5

- 20.4

KBC Bank2001 Results

(1) excl. gains on CCF

Organic %

- 1.43.3

- 10.9

- 4.5

-

- 9.5

19.1

1.5

- 18.9

6

Interest margin : 2.02% (s.q.)

Commissions: Securities : 52% Payments : 17% Insurance : 4% Other :

27%

Fin. Transact. : profit : (m EUR) Shares : 57 (2000 : 272) Bonds : 218 (2000 : 26)

Net interest income+ 9.2%

Commision income (+2.2%)

Other income(+7.1%)

Fin.Transact. (+5.9%)

53%8%

21%

18%

KBC BankBreakdown of gross income

7



Operating result


Profit before tax

Taxes

Minority interests

Profit after tax

2000 %

4656- 3094

1562

- 334

49

1277

- 243

- 158

877 (1)

4977- 3510

1467

- 376

80

1171

- 313

- 160

698

6.913.4

- 6.1

12.8

-

- 8.4

28.8

1.5

- 20.4



Organic %

- 1.43.3

- 10.9

- 4.5

-

- 9.5

19.1

1.5

- 18.9

8

KBC BankProvisioning for credit risks

Specific provisions- Domestic- International

General provision

Loan loss ratio- Domestic- International

Non-interest-bearing

270.4103.2167.1

71.2

0.240.48

2.1%

1999 2000 2001In millions of EUR

285.1252.6

32.5

-43.8

0.530.09

2.1%

330.7166.6164.1

-9.3

0.350.38

2.8%

9



Operating result


Profit before tax

Taxes

Minority interests

Profit after tax

2000 %

4656- 3094

1562

- 334

49

1277

- 243

- 158

877 (1)

4977- 3510

1467

- 376

80

1171

- 313

- 160

698

6.913.4

- 6.1

12.8

-

- 8.4

28.8

1.5

- 20.4



Organic %

- 1.43.3

- 10.9

- 4.5

-

- 9.5

19.1

1.5

- 18.9

10

In millions of EUR 2001Premium income, non-life Premium income, life Net technical charges(*)Investment income(*) Gross margin

General admin. expenses

Recurring result

Non-recurring resultExtraordinary result

Profit before tax

Taxes

Minority interests

Profit after tax

2000 %820

1 688- 2 330

631 809

- 409

401

8- 2

407

- 51

4

360

7691 881

- 2 517615 748

- 376

372

25- 5

392

- 74

2

321

6.6- 9.9- 7.42.6 8.2

8.7

7.7

- 69.2- 67.2

3.8

- 30.4

-

12.2(*) excl. effect of value adjustments, unit-linked life assurance

KBC Insurance2001 Results

11

KBC InsuranceBreakdown of premium income

Premium-income

Non-life assuranceTraditional life

assuranceUnit-linked life

assurance

Trad. Life (+7.1%)

Non-life (+ 7%)

Unit-linkedclass 23 (-15.7%)

48%

34%18%

via :Agents (%)

Banks(%)

68.8

38.0

1.0

8.8

46.6

97.0

12



Recurring result


Profit before tax

Taxes

Minority interests

Profit after tax

2000 %820

1 688- 2 330

631 809

- 409

401

8- 2

407

- 51

4

360

7691 881

- 2 517615 748

- 376

372

25- 5

392

- 74

2

321

6.6- 9.9- 7.42.6 8.2

8.7

7.7

- 69.2- 67.2

3.8

- 30.4

-



13

KBC InsuranceNon-recurring result

Non-recurring income

- Gains on shares- Changes in premium reserve- Provision for Y2K

Non-recurring provision

- Provision for financial risk- Extra provisions

Non-recurring result

2000 (1) 2001

144.8

91.923.329.6

-89.9-29.6

25.3

37.2

37.2- -

29.4

7.8

14



Recurring result


Profit before tax

Taxes

Minority interests

Profit after tax

2000 %820

1 688- 2 330

631 809

- 409

401

8- 2

407

- 51

4

360

7691 881

- 2 517615 748

- 376

372

25- 5

392

- 74

2

321

6.6- 9.9- 7.42.6 8.2

8.7

7.7

- 69.2- 67.2

3.8

- 30.4

-



15

KBC Bank & Insurance GroupProfit Contribution by Activity

31 Dec. 00 : 1181 m EUR

31 Dec. 00 : 1022 m EUR

Retail bancassurance

Central Europe

Corporate services

Asset management

Market activities

Groupitems

% profitcontribution 36% 36% 13% 21% 19% 5% 7% 12% 9% 9% 15% 16%

-13.7%

+43.3%

-79.6%

+38.4%

-12.6%

- 4.3%

In m

illio

ns o

f E

UR

422

364

147

211228

47

100

138109

95

168175

16

Allocated equity

(in EUR m)

KBC Bank & Insurance Group Profitability – areas of activity

Retail bancassurance

Corporate services

Market activities

Central Europe

Asset management

Group item

2700

2502

1133

1897

-

-377

%of totalequity

ROE

35%

32%

14%

24%

-

-5%

13.9%

8.3%

4.1%

7.5%

-

-

At 31 Dec. 2001%

profitcontri-bution

36%

21%

5%

12%

9%

18%

17

Retail bancassuranceIntegration of Banking & Insurance

Merger of ICT departments

Joint marketing, communication and logistics at KBC Bank and Insurance Holding Company

Total ±2000 employees

18

Retail bancassuranceCross-selling in Belgium

Total customers, bank1 337 000 Total customers, insurance

744 000

Cross-selling

555 200 customers with at least 1 bank AND 1 insurance product + 4.2 % from 31 Dec. 2000 36.4 % of all customers target 40 %

555 200Shared customers

19

Retail bancassurance Merger process on schedule

Conversion and integration of insurer completed

Merger process at KBC Bank completed by 2004 Closure of bank branches

± 1500 ± 850

1 IT system IT-related work nearly finished 2 250 000 customers already on new system,

300 000 more to go

Downsizing Gradual reduction in workforce by 1 650 (11%) by end of

2004

20

Retail BancassuranceIntegration of retail bank branches

907850

1471

1272

11501118

800

900

1000

1100

1200

1300

1400

1500

1600

1999 2000 2001 2002 2003 2004

planned-300

achieved-321

21

Retail bancassurance Merger process on schedule

Conversion and integration of insurer completed

Merger process at KBC Bank completed by 2004 Closure of bank branches

± 1500 ± 850

1 IT system IT-related work nearly finished 2 250 000 customers already on new system,

300 000 more to go

Downsizing Gradual reduction in workforce by 1 650 (11%) by end of

2004

22

KBC Bank & Insurance GroupInvestments in Central Europe

PolandKredyt BankAgropolisaWarta

Czech & Slovak Rep. CSOBCSOB Pojist'ovnaIPB Pojist’ovnaPatria

HungaryK&H BankK&H LifeArgosz

66.6% 49.9% 40.0%

83.8%100.0% 65.0% 100.0%

59.0%50.0% 98.8%

Ownership

450.77.2

127.2

1 363.315.563.053.5

273.22.5

30.5

Investment in EUR m

Total investment: 2.8 bn EUR

5.5%1%

13% non-life

18.5% 0.6% non-life

11% life/ 5% non-lifena

13.4%2.1%3.5%

Marketshare

Slovenia *NLB 34.0% 435.0 45.0%

* Decision in principle : being finalized

23

19991998

Net earnings

P/E (year-end)

Gross dividend

Payout ratio

Net asset value

Price/NAV (year-end)

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

3.90

11.8

1.42

36.4%

35.2

1.3

KBC Bank & Insurance GroupKey figures per share

2001

3.39

11.1

1.48

43.6%

33.8

1.1

24

KBC share pricein EUR

25

30

35

40

45

50

55

De

c-0

0

Jan

-01

Fe

b-0

1

Ma

r-0

1

Ap

r-0

1

Ma

y_0

1

Jun

-01

Jul-

01

Au

g-0

1

Se

p-0

1

Okt

-01

No

v-0

1

De

c-0

1

Jan

-02

Fe

b-0

2

Ma

r-0

2

Ap

r-0

2

25

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

Dec

-00

Jan-

01

Feb

-01

Mar

-01

Apr

-01

Mei

-01

Jun-

01

Jul-

01

Aug

-01

Sep

-01

Oct

-01

Nov

-01

Dec

-01

Jan-

02

Feb

-02

Mar

-02

Apr

-02

KBC relative to DJ Euro Stoxx Banks KBC relative to Bel-20

Relative performance of KBC share price

26

Profit for the period available for appropriation

Profit brought forward from the previous financial year

Profit to be appropriated

Proposed profit appropriation:

* Allocation to own funds

- To the legal reserve (1) - To other reserves

* Profit to be paid out

- Dividends (301 464 574 shares) - Directors - Profit to be carried forward

KBC Bank & Insurance GroupProposed profit appropriation

(1) to raise it to 10 % of capital

555 557 037.57

447 657.47

556 004 703.04

501 057.76105 000 000.00

446 167 569.521 303 595.333 032 480.43

27


If the proposed appropriation of profit is approved,dividends (No. 35) will be payable as follows from 29 April 2002 :

Gross amount

% withholding

taxNet amount

on ordinary shares 1.48 EUR 25 % 1.110 EUR

on shares with VVPR strip 1.48 EUR 15 % 1.258 EUR


General Meeting of Shareholders

25 April 2002

KBC Bank & Insurance Group General Meeting of Shareholders 25 April 2002.

Documents

Transcript of KBC Bank & Insurance Group General Meeting of Shareholders 25 April 2002.