2 0 0 3

KBC Bank & Insurance GroupInterim results at 31 March 2003

KBC Bank & Insurance Group – 1Q 2003

2

2 0 0 31Q at a glance

(in millions of EUR) 1Q 2002

4Q 2002

1Q 2003

ChangeQ/Q

Change Y/Y

Gross operating income 1 621 1 614 1 659 + 3% + 2%

Administrative expenses - 1 039 - 1 079 - 1 063 - 1% + 2%

Operating result 582 535 596 + 11% + 2%

Loan loss provisions

Value adjustments securities

Other, non-recurring and extraordinary results

- 88

8

- 2

- 160

- 36

- 50

- 79

- 220

+ 155

Profit before tax 504 389 452 + 16% - 10%

Taxes - 135 - 66 - 106

Minority interests - 52 - 36 - 42

Net profit 316 287 304 + 6% - 4%

KBC Bank & Insurance Group – 1Q 2003

3

2 0 0 3Key points

1. Success of capital guaranteed funds, generating strong commission and premium income

2. Cost-saving programmes on track

On balance, operating income up 5% y/yin organic terms, notwithstanding adverse financial climate

3. Favourable levels of loan provisions and claims incurred (probably a somewhat ‘exceptional’ situation)

4. Renewed ability to protect results from poor market climate, thanks to use of ‘buffers’

5. Solvency solid as a rock

2 0 0 3

Highlights in thebanking business

KBC Bank & Insurance Group – 1Q 2003

5

2 0 0 3Banking: income

Net interest income suffering from lower market rates

Robust commission income

Trading figure down (trade-off with interest income)

Considerable gains on bonds

1Q 2003

14%

13%61%

Other121 m

Capitalgains123 m

Trading146 m

3%

Interest718 m

Commissions344 m

KBC Bank & Insurance Group – 1Q 2003

6

2 0 0 3Cost/income ratio

Merger effects in Belgium

1999 2000 2001 2002 2003 2004 2005

Expenses up 1% y/y, down 4% q/q, thanks in part to merger-related savings

in Belgium

1Q 03C/I 64%

target achieved

Branchclosures

ICT integration

Headcountreduction

- 650

All

- 1 650

85%

98%

72%

time frame

KBC Bank & Insurance Group – 1Q 2003

7

2 0 0 3Provisioning for credit risks

0

20

40

60

80

100

120

140

160

4Q 01 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03

Quarter 4Q moving avg

in m EUR

1Q 03Loan loss ratio:

0.30%

Low loan loss provisions but uncertainty about quarters ahead

KBC Bank & Insurance Group – 1Q 2003

8

2 0 0 3Value impairments on equity portfolio

bonds

sharesfinancial

fixed assets

Investment portfolio - banking

1 122 530

39 433

P&L : value impairments (74 m EUR) mitigated by capital gains on bonds

(carrying value in millions of EUR, at 31 March 2003)

KBC Bank & Insurance Group – 1Q 2003

9

2 0 0 3Solvency: banking

Stable at a high level : 9.1%

3 675 m

3 675 m

1 008 m

4.0%

8.0%

9.1% Surplus zone

Comfort zone

Legal minimum

2 0 0 3

Highlights in theinsurance business

KBC Bank & Insurance Group – 1Q 2003

11

2 0 0 3Insurance: premium income

Very strong performance fromlife business : Near 1Q02 peak level (-3%)

56% in unit-linked products

Non-life: 9% up organically

1Q 2003

Non-Life

14%6%

11%

Unit-linked

Interest-guaranteed life

KBC Bank & Insurance Group – 1Q 2003

12

2 0 0 3Combined ratio: non-life

59%

33%

72%

30%

57%

35%

58%

35%

82%

39%

61%

30%

0%10%20%30%40%50%60%70%80%90%

100%110%120%130%

4Q01 1Q02 2Q02 3Q02 4Q02 1Q03

ExpensesClaims

Combined ratio

excl. reinsurance

Strong technical result, especially in Belgium

KBC Bank & Insurance Group – 1Q 2003

13

2 0 0 3Value impairments on equity portfolio

other

shares

bonds

Investment portfolio - insurance

2 941

748

6 191

P&L : impairments (146 m EUR) mitigated by non-recurring items (capital gains on bonds, write-back from equalization provision, deferred tax assets)

(carrying value in millions of EUR, at 31 March 2003) excl. unit-linked products

KBC Bank & Insurance Group – 1Q 2003

14

2 0 0 3Solvency: insurance

516 m

516 m

370 m Surplus zone

Comfort zone

Legal minimum

200%

272%

100%

Still very solid : 272%

2 0 0 3

Overview - areas of activity

KBC Bank & Insurance Group – 1Q 2003

16

2 0 0 3Areas of activity

Profitcontribution (*) % y/y % q/q ROE

Retail (Belgium) 117m 43% 25% 17%

Central Europe 19m 62% 140% 5%

Asset management 32m 2% 18% -

Corporate 46m 14% 36% 9%

Market activities 42m 21% 466% 14%

(*) excl. minority interests

2 0 0 3

Additional information

KBC Bank & Insurance Group – 1Q 2003

18

2 0 0 3Key ratios

(in millions of EUR) 31 Mar 02 31 Dec 02 31 Mar 03

EPS 1.05 0.95 1.01

NAV/share 35.0 31.6 31.9

Cost/income banking

Combined insurance*

Tier 1 banking

Solvency insurance

65.4%

101.9%

9.0%

488%

65.2%

101.4%

8.8%

320%

64.0%

90.7%

9.1%

272%

ROE 15.9% 12.7% 14.3%

CAGR EPS - 12% +1% - 4%

* excluding reinsurance

KBC Bank & Insurance Group – 1Q 2003

19

2 0 0 3Consolidation effectsTop-line impact

ČSOBPojišt'ovna

NLB Bank

Full consolidation

Equitymethod

2 %

< 0.5 %

< 0.5%

1%

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2002 2003

ERGOPoisťovňa

Krefima

Full consolidation

Deconsolidation(from full consolidation)

KBC Bank & Insurance Group – 1Q 2003

20

2 0 0 3Unrealized capitall gains

In m EUR 31 Dec 02 31 Mar 03 30 Apr 03

Group Total 1 824 1 558 1 795

Bonds 2 127 2 042 2 022

Shares - 430 - 601 - 344

Other 128 118 117

Banking Total 1 742 1 711 1 680

Bonds 1 630 1 628 1 589

Shares 86 63 71

FFA 27 20 20

Insurance Total 82 - 153 115

Bonds 497 414 433

Shares - 516 - 664 - 415

RE and other

101 98 97

2 0 0 3

KBC Bank & Insurance GroupMore information:

IR OfficeE-mail: investor.relations@kbc.be

Tel.: +32 2 429 49 16

Press OfficeE-mail: viviane.huybrecht@kbc.be

Tel.: +32 2 429 85 45