KBC Group

1

• KBC Group
• New segment reporting,pro forma figures 2005

2
Changes in reporting background information
REMINDER

• KBC has restated its 2005 quarterly figures to
  comply with
• The retro-active application of portfolio hedge
  accounting (carve-out) in Q4 2005 1
• Its new segment reporting approach
• The retro-active application of the principles of
  portfolio hedging includes that
• the financial impact of it (previously booked as
  a lump-sum amount in Q4 2005) is allocated to the
  relevant 2005 quarters (this has a negative
  impact of 40 m on the Q2 results, fully offset
  by the positive impact on the Q3 results (7 m)
  and the Q4 results (33 m)
• The segment reporting changes are explained on
  the following slide

1 Restatement of the PL lines Net gains from
financial instruments at fair value and taxes
3
Changes in segment reporting background
information
REMINDER

• New business unit structure as major segment
  reporting criterion (i.e. Retail Belgium, CEE,
  European private banking, Merchant Banking, Group
  Centre)
• Disclosure of area of activity results in a full
  PL format (which was not the case before)
• Full allocation of results of each subsidiary to
  a single segment 1
• No further imputation of impact of capital
  normalisation adjustments on segment
  bottom-line. In return, funding costs of goodwill
  related to equity participations will be
  allocated to the relevant segments
• Further restatements of historical time series
• Limitation of number of Group Center items to
• results of holding company
• non-allocated expenses of other entities that can
  be deemed holding-company overheads (e.g.,
  strategic consultancy fees, BoD expenses,
  group-level operating provisions, etc.)
• results of co-sourcing vehicles (such as e.g.
  Fin-Force - as a rule, expenditure is covered by
  service users, so, barring timing differences,
  impact on bottom line tends to be immaterial
• results of equity holdings within investment
  portfolio of banking business

• 1 An exception has to be made for KBC Bank NV
  and KBC Insurance NV Belgiums activities

4
New organisational structure
REMINDER
KBC Group
2
Europ.Private Banking
Belgium Retail Private Banc-assurance
Merchant Banking
CEE
Slovenia Banc-assurance No majority control
Czech Rep. Banc-assurance
SlovakiaBanc-assurance
Poland Banc-assurance
Hungary Banc-assurance
3
1
4
Group Centre functions Shared Services
5

• The new business unit structure will be used as
  major segment reporting criterion

5
FY05 earnings, Group total
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at Fair ValueNet realized gains from AFSNet fee and commission incomeOther income 1 01972934163168429215 1 0439781356397410118 2 0621 707169225265839333 1 0968102516649452112 3 1582 5161943923141 290444 1 0611 03441251144528130 4 2193 5502356424581 819574
Gross income 2 757 2 843 5 600 2 709 8 309 3 189 11 498
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -1 104-15-612-1721-257 -1 209-42-852-1713-192 -2 313-57-1 464-3333448 -1 177-3-696-1019-211 -3 490-54-2 161-4414-660 -1 424-49-899-262-266 - 4 914-103-3 059-6916-925
Profit after tax 774 544 1 318 598 1 916 528 2 443
Minority interests -57 -48 -104 -48 -153 -41 -194
Net profit share Group 717 496 1 213 550 1 763 486 2 249
Risk-weighted assets, bankingTotal equity Return on equityCost/income, bankingCombined ratio, non-life insurance 107 60813 316245192 111 69314 383205794 113 99015 262195895 117 73015 751186096
6
FY05 earnings, by segment
In millions of EUR Retail, Belgium CEE Merchant banking European Private Banking Group Center Total
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 2 0822 358102-320256830164 926870326333276219 1 0082939566789231103 258631383545057 -57-332124453332 4 2193 5502356424581 819574
Gross income 5 472 2 590 2 485 885 66 11 498
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -1 8342-2 210-133-415 -1 318-88-594-4222-69 -1 07622-181-301-340 -56823-9003-55 -119-621516-13-46 - 4 914-103-3 059-6916-925
Profit after tax 1 005 501 882 199 -143 2 443
Minority interests -2 -92 -92 -7 0 -194
Net profit share Group 1 003 409 789 192 -144 2 249
Share in group resultsReturn on allocated capitalReturn on equity 4528 1831 3524 928 -6- 10018
7
Retail and Private bancassurance, Belgium
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at Fair ValueNet realized gains from AFSNet fee and commission incomeOther income 50144611-8211019638 51166772-1933718448 1 0121 11483-27514738086 5385222-322720140 1 5501 63585-307173582127 53272217-148324837 2 0822 358102-320256830164
Gross income 1 220 1 327 2 547 1 298 3 845 1 627 5 472
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -4111-407-91-112 -448-6-63612-65 -859-5-1 043-82-177 -4227-495-22-115 -1 2823-1 538-104-292 -552-1-672-2-1-123 -1 8342-2 210-133-415
Profit after tax 283 174 457 273 729 276 1 005
Minority interests -1 -1 -1 -1 -2 0 -2
Net profit share Group 282 173 455 272 727 276 1 003
Risk-weighted assets, bankingAllocated capitalReturn on allocated capitalCost/income, bankingCombined ratio, non-life insurance 34 1533 439335589 34 8393 531197798 34 8393 531266593 35 8073 618305595 35 8073 618276194 36 1233 681306398 36 1233 681286195
8
Central Eastern Europe
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at Fair ValueNet realized gains from AFSNet fee and commission incomeOther income 2201964832066117 23323127926222 452427616222128140 232207-352107248 684634321432200187 24223614907631 926870326333276219
Gross income 705 632 1 337 618 1 955 635 2 590
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -2954-133-99-59 -316-12-149-183-5 -611-8-282-2713-64 -333-34-141-67-10 -945-42-423-3420-75 -373-45-172-825 -1 318-88-594-4222-69
Profit after tax 221 135 357 100 456 44 501
Minority interests -30 -22 -53 -23 -76 -15 -92
Net profit share Group 191 113 304 76 380 29 409
Risk-weighted assets, banking Allocated capitalReturn on allocated capitalCost/income ratio, bankingCombined ratio, non-life insurance 16 4561 365625098 1 6 4531 379366993 16 4531 379495996 17 5471 4552369104 17 5471 455406298 18 1991 508876100 18 1991 508316599
9
CEE Czech Slovak Republics
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 13057446453111 1346021125213 2641166576104124 13562-42475525 39917828113160149 1446412065538 544243310119215187
Gross income 404 274 678 305 982 328 1 310
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -1338-55-20-53 -154-2-81-30-8 -2876-136-50-62 -131-23-34-40-27 -418-17-170-90-89 -194-27-31-20-7 -612-44-201-110-96
Profit after tax 169 25 194 85 280 66 345
Minority interests, local 0 -1 -1 -1 -2 -4 -6
Net profit, local 168 25 193 85 278 62 340
Risk-weighted assets, banking Allocated capital Return on allocated capitalCost/income, bankingCombined ratio, non-life insurance 8 485670973698 8 62168386999 8 621683524898 9 552749394998 9 552749474998 10 1397922767117 10 1397924153103
10
CEE Poland
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 5211901616-52 691420121-26 12126102816-78 441241114-146 16638513820-2114 60147011-5-3-3 22653214915-2411
Gross income 200 228 428 174 602 206 809
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -83-2-76-61-4 -999-82-15-1-2 -1818-158-210-6 -660-78-3017 -2488-237-23012 -962-86-604 -3449-323-29015
Profit after tax 30 40 70 45 115 24 138
Minority interests, local 0 0 0 0 0 0 0
Net profit, local 30 40 70 45 115 24 138
Risk-weighted assets, bankingAllocated capitalReturn on allocated capitalCost/income ratio, bankingCombined ratio, non-life insurance 3 7633832572101 3 407368358293 3 407368317797 3 3543634072104 3 354363347699 3 257361188395 3 257361307898
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CEE Hungary
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 56190250232 56220250174 112420500406 64210230213 176620730609 60190240275 2368109718714
Gross income 125 125 250 130 380 135 515
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -72-10-12-11-8 -78-16-15-11-4 -149-25-27-11-12 -88-5-1701-5 -238-30-44-23-17 -78-7-14-10-8 -316-37-58-22-26
Profit after tax 24 12 36 16 52 27 79
Minority interests, local 0 0 0 0 0 0 0
Net profit, local 24 12 36 16 52 27 79
Risk-weighted assets, bankingAllocated capital Return on allocated capitalCost/income ratio, bankingCombined ratio, non-life insurance 4 207311216583 4 42532877388 4 425328146986 4 6413431277113 4 641343137195 4 8033542464102 4 803354166997
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CEE Other 1
Bank Insurance,in millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income -1800-30-42 -287031-1-40 -467028-1-92 -111-1-601014 -568-122-1116 -2350-60-2-9 -79 13 -117-2-17 (1)(2)(3)(3)(3)(3)(3)
Gross income -24 5 -19 8 -10 -35 -45
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -879086 14-430039 643901115 -48-6-11054 -41-22801720 -4-13-400317 -46-15-1201937 (4)(5)(2)(6)
Profit after tax -1 58 57 -47 10 -72 -62
Minority interests -30 -21 -51 -23 -74 -11 -86 (7)
Net profit -31 36 5 -70 -64 -83 -148
Mainly (1) The funding costs of the goodwill of
the equity participations in CEE (2) NLB Vita,
Slovenia (proportional consolidation) (3)
Consolidation adjustments (4) Allocated group
operating expenses (5) Impairments on goodwill of
the equity participations in CEE(6) Contribution
from NLB Bank, Slovenia (associated company) (7)
Minorities on KBC level
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Merchant Banking
In millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 266781699335820 264663914725523 531145552463511343 264762315735624 794220774033916967 2137318263506236 1 0082939566789231103
Gross income 570 597 1 167 602 1 770 716 2 485
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -231-19-48-60-66 -252-22-42-30-83 -483-41-90-90-149 -25827-48-30-81 -741-14-138-120-230 -33536-43-181-110 -1 07622-181-301-340
Profit after tax 201 194 395 240 635 246 882
Minority interests -22 -23 -45 -24 -69 -24 -92
Net profit share Group 179 171 350 216 566 223 789
Risk-weighted assets, bankingAllocated capital Return on allocated capitalCost/income ratio, banking Combined ratio, non-life insurance 47 2483 298234690 50 2773 503224792 50 2773 503224690 51 0153 548264888 51 0153 548244790 54 3473 7752655100 54 3473 775244992
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European Private Banking
In millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income 4618245210024 4919638191079 95379822220733 73153-2591147 1685211573032240 91112-49512916 258631383545057
Gross income 238 247 485 196 681 204 885
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -135-1-2401-22 -155-4-2601-19 -289-5-5002-41 -14712-22014 -4376-7203-37 -13116-1801-18 -56823-9003-55
Profit after tax 57 44 101 44 145 54 199
Minority interests -3 -2 -5 -1 -6 -2 -7
Net profit share Group 54 42 96 43 140 52 192
Risk-weighted assets, bankingAllocated capital Return on allocated capitalCost/income ratio 9 7497203163 10 1227452271 10 1227452767 9 6187112286 9 6187112672 8 7726532971 8 7726532872
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Group Center 1
In millions of EUR 1Q05 2Q05 6M05 3Q05 9M05 4Q05 12M05
Net interest incomeGross earned premiumDividend incomeNet gains from FI at FVNet realized gains from AFSNet fee and commission incomeOther income -15-911841016 -15-616-936315 -30-15179391231 -11-1111408-7 -41-251823392023 -178316139 -57-332124453332
Gross income 24 40 64 -5 59 7 66
Operating expensesImpairmentsGross technical chargesCeded reinsurance resultShare in result associated companiesTaxes -32007102 -382147-19 -70111117-17 -17-882-29-9 -87-71013-12-26 -32-5553-1-20 -119-621516-13-46
Profit after tax 11 -3 8 -58 -50 -93 -143
Minority interests 0 0 -1 1 0 0 0
Net profit share Group 11 -3 8 -58 -50 -93 -144

• Includes
• Results of Holding company (-109 m for FY05) and
  Gevaert (-32m)
• Non-allocated operating expenses of KBC Bank and
  KBC Insurance that can be deemedholding company
  overheads (-26 m)
• Results of co-sourcing vehicles (-1 m)
• Results of equity holdings within the investment
  portfolio of banking business (25m)

1 including intrasegment eliminations
16
Return on allocated capital per segment -
methodology

• ROAC Net adjusted profit / average allocated
  capital
• Example CEE, FY 2005
• Net profit, group share 409 m minority
  interests 92 m Net profit after tax 501
  m- Yield on excess capital (after tax) - 61 m
  Net adjusted profit 440 m (1)
• Allocated capital 8 Tier 1 x RWA, banking
  200 x capital required, insurance
• Allocated capital, 31-12-2004 1 299
  mAllocated capital, 31-12-2005 1
  508 mAverage capital, 2005
  1 403 m (2)
• ROAC (1) / (2) 31

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Contact information

• Investor Relations OfficeLuc Cool, Head of
  IRLuc Albrecht, Financial Communications
  OfficerTamara Bollaerts, IR CoordinatorChristel
  Decorte, IR AssistantMarina Kanamori, CSR
  Communications OfficerNele Kindt, IR
  AnalystE-mail investor.relations_at_kbc.com
• Surf to www.kbc.com for the latest update