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