KBC Group / Bank Debt presentation August More infomation: or on your mobile: m.kbc.com

KBC Group / Bank Debt presentation August 2014 More infomation: www.kbc.com or on your mobile: m.kbc.com KBC Group - Investor Relations Office Email: investor.relations@kbc.com 1

Important information for investors This presentation is provided for information purposes only. It does not constitute an offer to sell or the solicitation to buy any security issued by KBC. A decision to purchase or sell our securities should be made only on the basis of a prospectus or offering memorandum prepared for that purpose and on the information contained or incorporated by reference therein. KBC believes that this presentation is reliable, although some information is summarised and therefore incomplete. Financial data is generally unaudited. KBC cannot be held liable for any loss or damage resulting from the use of the information. This presentation contains non-ifrs information and forward-looking statements with respect to the strategy, earnings and capital trends of KBC, involving numerous assumptions and uncertainties. The risk exists that these statements may not be fulfilled and that future developments may differ materially. Moreover, KBC does not undertake to update the presentation in line with new developments. Much of the information in these slides relates to the KBC Group and may not, therefore, be wholly relevant to the performance or financial condition of KBC Bank and its subsidiaries. Those interested in KBC Bank should not place undue reliance or attach too great importance to the information contained in these slides relating to KBC Group. By reading this presentation, each investor is deemed to represent that they understand and agree to the foregoing restrictions. As of 1Q2014, a number of other changes have been affecting KBC s group and segment reporting figures: The application of the new IFRS-11 standard. This standard stipulates that joint ventures must be accounted for using the equity method instead of the proportionate consolidation method that has been used so far. For KBC, this mainly applies to CMSS, a joint venture of ČSOB in the Czech Republic. This change does not affect the net result, but does have an impact on various items in the consolidated income statement. The shift from Basel II to Basel III and the abolishment of the home country government bonds carve-out. Among other things, this changes the risk-weighted asset figures and related ratios. An enhanced definition for net interest margin across all business units. This is aimed at providing a clearer picture of the margin generated by KBC s core business. Hence, volatile assets related to general liquidity management or derivatives (such as reverse repos, cash balances with central banks, etc.) were eliminated, and companies that are still to be divested as well as those in run-down were excluded from the scope (in the past: only those companies under IFRS 5). 2

Executive summary 2Q 2014 (KBC Group) SOLID CAPITAL AND ROBUST LIQUIDITY POSITIONS Common equity ratio (B3 fully loaded 1 based on Danish Compromise) of 12.9% at end 2Q14 Continued strong liquidity position (NSFR at 109% and LCR at 123%) STRONG BUSINESS PERFORMANCE IN 2Q14 Net result of 317m EUR and adjusted 2 net result of 287m EUR. The latter is the result of: o Strong commercial bank-insurance franchises in our core markets and core activities o Higher net interest income and margin q-o-q, with increasing loan volumes in our core countries o Q-o-q increase of net fee and commission income and a further rise in AuM o Substantial negative M2M ALM derivatives (-57m EUR) o Negative net other income, due fully to one-off provisions of 231m EUR for KBC s Hungarian retail loan book (both the correction to the bid-offer spreads and the unilateral changes to interest rates). Legal basis will be challenged o Combined ratio (97% in 2Q14 and 93% YTD) impacted by hailstorms in Belgium, while life insurance sales were slightly higher o Good cost/income ratio (55% in 2Q14 and YTD) adjusted for specific items (mainly M2M impact of ALM derivatives and one-off provisions in Hungary) o Still low impairment charges, although higher q-o-q. We are maintaining our FY 2014 guidance for Ireland, namely the high end of the range 150m-200m EUR 1. Including remaining State aid of 2bn EUR 2. Adjusted net result is the net result excluding a limited number of non-operational items, being legacy CDO and divestment activities and the M2M effect of own debt instruments due to own credit risk 3

Contents 1 Strategy and business profile of KBC Group 2 Financial performance of KBC Group 3 Asset quality of KBC Bank/Group 4 Liquidity and solvency of KBC Bank/Group 5 Wrap up Appendices 4

Well-defined core markets provide access to new growth in Europe KBC Group s core markets and Ireland MARKET SHARE, AS OF END 2013 Loans and deposits BE CZ SK HU BG 20% 19% 10% 9% 2% Investment funds 35% 29% 7% 17% IRELAND UK NETHERLANDS Life insurance 17% 6% 5% 3% 10% BELGIUM FRANCE GERMANY CZECH REP SLOVAKIA HUNGARY Non-life insurance 9% 6% 3% 5% REAL GDP GROWTH OUTLOOK FOR CORE MARKETS 1 10% BE CZ SK HU BG ITALY BULGARIA % of Assets 2013 66% 0.2% 16% 3% 0.9% 3% 1.1% 1% 0.9% PORTUGAL SPAIN Macroeconomic outlook Based on GDP, CPI and unemployment trends Inspired by the Financial Times GREECE 2014e 1.2% -0.9% 2.2% 2.0% 2.5% 1.7% 2015e 1.5% 2.5% 3.0% 2.3% 2.5% 1. Source: KBC data, August 2014 5

Overview of KBC Group STRONG BANK-INSURANCE GROUP PRESENT WITH LEADING MARKET POSITIONS IN CORE GEOGRAPHIES (BELGIUM AND CEE) A leading financial institution in both Belgium and the Czech Republic Turnaround potential in the International Markets Business Business focus on Retail, SME & Midcap clients Unique selling proposition: in-depth knowledge of local markets and profound relationships with clients INTEGRATED BANK-INSURANCE BUSINESS MODEL, LEADING TO HIGH CROSS-SELLING RATES Strong value creator with good operational results through the cycle Integrated model creates cost synergies by avoiding overlap of supporting entities and generates added value for our clients through a complementary and optimised product and service offering 6

Overview of key financial data at 2Q 2014 KBC Group KBC Bank KBC Insurance Market cap (08/08/14): 17bn Adjusted net result (1H 2014): EUR 0.7bn Total assets: EUR 253bn Total equity: EUR 16bn CET1 ratio (Basel 3 transitional 1 ): 13.2% CET1 ratio (Basel 3 fully loaded 1 ): 12.9% Adjusted net result (1H 2014): EUR 0.5bn 2 Total assets: EUR 219bn Total equity: EUR 13bn CET1 ratio (Basel 3 transitional): 12.5% CET1 ratio (Basel 3 fully loaded): 12.1% C/I ratio: 64% 3 Adjusted net result (1H 2014): EUR 0.2bn Total assets: EUR 37bn Total equity: EUR 3bn Solvency I ratio: 317% Combined operating ratio: 97% Credit Ratings of KBC Bank S&P Moody s Fitch Long-term A (Negative) A2 (Negative) A- (Stable) Short-term A-1 Prime-1 F1 1. Including the remaining State Aid of 2bn EUR 2. Includes KBC Asset Management ; excludes holding company eliminations 3. Adjusted for specific items, the C/I ratio amounted to c.55% in 2Q 2014 7

Business profile CFO SERVICES CRO SERVICES BREAKDOWN OF ALLOCATED CAPITAL BY BUSINESS UNIT AT 30 JUNE 2014 14% Czech Republic BELGIUM CZECH REPUBLIC INTERNATIONAL MARKETS Belgium 56% 18% International Markets CORPORATE STAFF 12% Group Centre *Covers inter alia results of companies to be divested, impact legacy & own credit risk and results of holding company 8

Contents 1 Strategy and business profile of KBC Group 2 Financial performance of KBC Group 3 Asset quality of KBC Bank/Group 4 Liquidity and solvency of KBC Bank/Group 5 Wrap up Appendices 9

Earnings capacity 3 281 NET RESULT 1 1 860 13 612 1 015 714 CONTRIBUTION OF BANKING ACTIVITIES TO KBC GROUP ADJUSTED NET RESULT 1,2 363 399 390 320 315 222-2 484-2 466 Adjusted net result excl. one-off additional impairments -368 FY07 3 143 FY08 FY09 FY10 FY11 FY12 FY13 1H14 Excluding adjustments ADJUSTED NET RESULT 1,2 2 270 1 724 1 710 1 542 1 098 960 675 1Q13 2Q13 3Q13 4Q13 1Q14 CONTRIBUTION OF INSURANCE ACTIVITIES TO KBC GROUP ADJUSTED NET RESULT 1,2 97 74 46 50 90 101 59 68 42 25 67 84 68 51 73 2Q14 97 46 82 FY07 FY08 FY09 FY10 FY11 FY12 FY13 1H14-43 -8-14 -33-37 -31 1 Note that the scope of consolidation has changed over time, due partly to divestments 2 Difference between adjusted net result at KBC Group and the sum of the banking and insurance contribution are the holding-company/group items 1Q13 Non-life result 2Q13 3Q13 Life result 4Q13 1Q14 Non-technical & taxes 2Q14 Amounts in m EUR 10

Net interest income and margin 1 018 24 179 819-4 1Q13 NII 976 999 996 1 002 174 177 813 828 173 4Q13 NIM 166 1Q14 1 047 167 883-11 -6-6 -7-3 2Q13 NII - deconsolidated entities 3Q13 NII - contribution of holding-company/group Amounts in m EUR 1.89% 1.87% 1.89% 829 1.92% 843 2Q14 NII - insurance contribution NII - banking contribution 2.00% 2.05% Net interest income Increased by 5% q-o-q and 7% y-o-y Sound commercial margins and lower funding costs (due partly to some hybrid tier-1 calls and maturities of expensive senior debt funding during 2Q14) more than offset the negative impact from lower reinvestment yields and the deliberately decreasing loan portfolio at the foreign branches Net interest income at the insurance side continues to suffer mainly from lower reinvestment yields Increasing loan volumes q-o-q in all our core countries. Deposit volumes were more or less flat q-o-q, as growth in demand and saving deposits was offset by calling most of the hybrid tier-1 instruments and maturing wholesale debt Improved net interest margin (2.05%) Up by 5bps q-o-q and 18bps y-o-y Q-o-q, sound commercial margins and lower funding costs more than offset the negative impact from lower reinvestment yields 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Customer deposit volumes excluding debt certificates & repos +2% q-o-q and +4% y-o-y VOLUME TREND Excluding FX effect Total loans ** Of which mortgages Customer deposits*** AuM Life reserves Volume 121bn 52bn 151bn 172bn 28bn Growth q/q* +1% +1% 0% +4% +1% Growth y/y -1% -1% -2% +11% +2% * Non-annualised flat y-o-y excluding the deliberate reduction of our foreign ** Loans to customers, excluding reverse repos (and not including bonds) 11 branch loan portfolio and the sale of shareholder loans *** Customer deposits, including debt certificates but excluding repos. Please be aware of the significant impact of calling most of the hybrid tier-1 instruments and maturing wholesale debt

Net fee and commission income and AuM 382 5 426-49 1Q13 1 1-49 -56 F&C 385 341 365 378 388 433 396 429 442 446-63 -1-2 -62-58 2Q13 3Q13 4Q13 1Q14 2Q14 Strong net fee and commission income Increased by 3% q-o-q and 1% y-o-y Q-o-q increase was mainly the result of: o significantly higher management fees from mutual funds, slightly higher entry fees on unit-linked life insurance products and lower commissions paid on insurance sales in the Belgium BU o an increase in entry & transaction fees and higher fee income from financial markets in the Czech Republic BU F&C - deconsolidated entities F&C - insurance contribution 156 156 F&C - banking contribution F&C - contribution of holding-company/group AuM 160 163 172 167 Y-o-y increase as lower entry fees on unit-linked products, higher commissions paid on insurance sales and lower fees on securities transactions in Belgium were offset by: o higher management fees in Belgium, o lower fees paid to distribution and higher fee income from financial markets in the Czech Republic o higher investment and booking fees in Hungary 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Assets under management (172bn EUR) Rose by 11% y-o-y owing to net inflows (+3%) and a positive price effect (+8%) Up 4% q-o-q as a result of net inflows (+1%) and a positive price effect (+3%) Amounts in m EUR 12

Operating expenses and cost/income ratio 1 023 30 124 869 1Q13 OPERATING EXPENSES 955 965 914 926 906 65 125 74 72 65 840 841 890 840 854 2Q13 3Q13 4Q13 1Q14 2Q14 Deconsolidated entities Bank tax Costs under control The C/I ratio (64% in 2Q14 and 63% in 1H14) was affected by the negative M2M impact of ALM derivatives and the one-off provisions for Hungary, partly offset by the recovery of sums to be paid out following the outcome of a legal case Adjusted for specific items, the C/I ratio amounted to roughly 55% in both 2Q14 and 1H14 Operating expenses went down by 4% q-o-q, due mainly to the Hungarian bank tax (51m pre-tax) recorded in 1Q14, partly offset by higher staff expenses and higher marketing & communication costs in Belgium and Ireland, and invoices of 5m EUR related to the AQR exercise Operating expenses increased by 1% y-o-y due mainly to higher staff expenses in Ireland, higher marketing expenses (both in Belgium, the Czech Republic and Ireland), higher bank taxes and invoices related to the AQR exercise (in Belgium), despite an one-off FTLrelated charge of 27m EUR pre-tax (22m post-tax) recorded in Hungary in 2Q13 Excluding all one-off items, operating expenses went up by 1% y-o-y in 1H14 Amounts in m EUR 13

Asset impairment, credit cost and NPL ratio 333 1Q13 1.11% 234 2Q13 ASSET IMPAIRMENT 949 692 208 257 107 3Q13 4Q13 1Q14 One-off additional impairments CCR RATIO 1.21% 134 2Q14 Still low level of impairment charges Q-o-q increase of loan loss provisions, mainly as a result of higher impairment charges in Ireland (62m EUR compared to 48m EUR in 1Q14) and higher impairment charges in Group Centre in 2Q14 Compared with the 234m EUR level of 2Q13, substantially lower impairments were recorded mainly due to overall lower gross impairments (especially in Belgium) and some releases of impairment in the Czech Republic. Lower impairment charges were recognised in Ireland in 2Q14 (62m EUR compared with 88m EUR in 2Q13) Impairment of 3m EUR on AFS shares 0.91% 0.82% 0.71% 0.29% 0.34% The credit cost ratio only amounted to 0.34% in 1H14 thanks to lower gross impairments and some releases of impairment (mainly in the Czech BU) FY09 FY10 FY11 FY12 FY13 1Q14 2Q14 NPL RATIO 5.4% 5.6% 6.0% 5.9% 5.9% 6.2% The NPL ratio amounted to 6.2%, primarily due to an increase of the ratio in Ireland 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 14

Overview of results based on business units 1 360 630 NET PROFIT BELGIUM 1H14 ROAC: 26% 1 570 767 734 NET PROFIT CZECH REPUBLIC 581 554 264 275 277 1H14 ROAC: 40% 730 803 317 279 2012 2013 1H14 2012 2013 1H14 2H 1H 2H 1H NET PROFIT INTERNATIONAL MARKETS NET PROFIT INTERNATIONAL MARKETS EXCL. IRELAND 1H14 ROAC: -22% -56-204 -260-743 -202 144 139 104 103 40 36-110 -853-104 2012 2013 1H14 2012 2013 1H14 Amounts in m EUR 2H 1H 15 2H 1H

Contents 1 Strategy and business profile of KBC Group 2 Financial performance of KBC Group 3 Asset quality of KBC Bank/Group 4 Liquidity and solvency of KBC Bank/Group 5 Wrap up Appendices 16

Balance sheet risks (KBC Bank consolidated at 30 June 2014) Total Assets: 219bn EUR Tangible & intangible fixed assets (incl. Investment property): 3bn EUR Equity: 13bn EUR Total Liabilities & Equity: 219bn EUR Capital adequacy Loan book: 125bn EUR (Loans and advances to customers) Credit quality Liquidity position Funding and deposit base: 168bn EUR Investment portfolio: 45bn EUR Sovereign bonds Trading assets: 13bn EUR Other (incl. interbank loans): 33bn EUR Trading exposure Trading liabilities: 11bn EUR Other (incl. interbank deposits): 27bn EUR 17

NPL ratios at KBC Group and per business unit KBC GROUP CUSTOMER LOAN BOOK: 125bn EUR at end 2Q14 5.4% 5.6% 6.0% 5.9% 5.9% 6.2% (LARGELY SOLD THROUGH OWN BRANCHES) 43% 42% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 13% 3% Total retail = 58% Residential mortgages Other Retail loans Consumer Finance SME/Corporate loans BELGIUM BU CZECH REPUBLIC BU INTERNATIONAL MARKETS BU 2.3% 2.3% 2.6% 2.5% 2.5% 2.6% 3.5% 3.5% 3.5% 20.8% 19.2% 19.7% 3.1% 3.1% 3.1% 18.1% 18.5% 19.0% 9.0% 9.2% 9.0% 9.3% 8.9% 8.5% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 NPL including Ireland NPL excluding Ireland 18

Loan loss experience at KBC 1H14 CREDIT COST RATIO FY13 FY 2012 CREDIT COST RATIO CREDIT COST RATIO AVERAGE 99 13 Belgium 0.15% 0.37% 0.28% n.a. Czech Republic 0.04% 0.26% 0.31% n.a. International Markets 1.14% 4.48%* 2.26%* n.a. Group Centre 0.52% 1.85% 0.99% n.a. Total 0.34% 1.21%** 0.71% 0.55% Credit cost ratio: amount of losses incurred on troubled loans as a % of total average outstanding loan portfolio * The high credit cost ratio at the International Markets BU is due in full to KBC Bank Ireland. Excluding Ireland, the CCR at this business unit amounted to 108bps in FY13 ** Credit cost ratio amounted to 1.21% in FY13 due to the reassessment of the loan books in Ireland and Hungary 19

Limited trading activity at KBC Group BREAKDOWN ACCORDING TO RWA* 30-06-2014 Credit risk 73% Market risk 3% Operational risk 12% 12% Insurance activity Traditional dealing rooms, Brussels by far the largest, focus mainly on trading in interest rate instruments and for client-related business. Abroad, dealing rooms focus primarily on providing customer service in money and capital market products, on funding local bank activities and engage in limited trading for own account in local niches. * RWA on fully loaded basis and under Danish Compromise 20

Government bond portfolio Carrying value Carrying value of 48.4bn EUR in government bonds (excl. trading book) at end of 1H14, primarily as a result of a significant excess liquidity position and the reinvestment of insurance reserves in fixed-income instruments Carrying value of GIIPS exposure amounted to 3.5bn EUR at end of 1H14 END 2012 Carrying value of 48.8bn EUR (Notional value of 47bn EUR) END 2013 Carrying value of 48.5bn EUR (Notional value of 45.6bn EUR) END 1H14 Carrying value of 48.4bn EUR (Notional value of 44.9bn EUR Austria * Netherlands * Germany** Ireland * Other 2% 6% France 1% 6% Italy** Slovakia 2% 3% Hungary 5% Poland* 1% 17% Czech Rep. Belgium 55% France Italy** Slovakia 7% 2% 5% Hungary Poland * Netherlands ** Austria ** Ireland * Germany ** Portugal Spain* Other 1% 9% 4% 1% Czech Rep. 16% 49% Belgium France Netherlands ** Austria ** Ireland * Germany ** Portugal Spain** Other 2% 7% 7% Italy 4% 5% Slovakia 4% Hungary 1% Poland * 16% Czech Rep. 44% Belgium (*) 1%, (**) 2% (*) 1%, (**) 2% (*) 1%, (**) 2% * Carrying value is the amount at which an asset [or liability] is recognised: for those not valued at fair value this is after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon, while carrying amount is equal to fair value when recognised at fair value 21

Contents 1 Strategy and business profile of KBC Group 2 Financial performance of KBC Group 3 Asset quality of KBC Bank/Group 4 Liquidity and solvency of KBC Bank/Group 5 Wrap up Appendices 22

Consistent track record of strengthening capital Common equity ratio (B3 fully loaded 1 ) of 12.9% based on the Danish Compromise Fully loaded B3 leverage ratio: 4.65% at KBC Bank Consolidated, based on current CRR legislation 3bn EUR repayment to Belgian State 1.2bn EUR repayment to Flemish Gov 0.3bn EUR repayment to Flemish Gov 10.0% 11.7% 10.5% 11.5% 13.1% 12.2% 12.8% 12.2% 12.9% 10.5% minimum internal target 9.25% NBB minimum 2 (pillar 2) 1H12 9M12 FY12 1Q13 1H13 9M13 FY13 1Q14 1H14 1. With remaining State aid included in CET1 as agreed with local regulator 2. Excludes revaluation reserve of available-for-sales assets 23

Active capital management by KBC Sale treasury shares: 16 Oct 12 Capital release: +0.35bn EUR Capital increase : 10 Dec 12 Common increase: +1.25bn EUR Coco: 18 Jan 13 Increasing loss absorbing capital: +1.0bn USD Shareholder loans I: 3 July 13 Capital release : +0.33bn EUR Shareholder loans II : 19 Nov. 13 Capital release : +0.67bn EUR Numerous successful capital management exercises since Oct-2012 generating approx. 5bn EUR in loss absorbing capital AT1: 12 March 14 Increasing loss absorbing capital: +1.4bn EUR During 2Q14, KBC called almost all its old-style hybrid T1 instruments for a total amount of approx. 2.3bn EUR 24

KBC has a strong CET1 ratio in a European context 21 % 20 % BASEL 3 CET 1 RATIO (FULLY LOADED Q2 2014) 16 % 15 % 13 % 13 % 13 % 13 % 12 % 12 % 11 % 11 % 11 % Median: 11.7% 10 % 10 % 10 % 10 % 10 % 09 % Source: company filings 25

Conservative RWA calculations 55% RISK WEIGHTED ASSETS VS. TOTAL ASSETS (2Q 2014) 1 48% 47% 45% 45% 44% 37% 37% 33% 32% 31% 30% Median: 32% 27% 27% 24% 24% 23% 20% 19% Source: company filings 1.. Fully loaded where available 26

Overview of B3 CET1 ratios at KBC Group Method Numerator Denominator B3 CET1 ratio BBM, phased-in 11 266 91 587 12.3% BBM, fully loaded 12 366 94 902 13.0% DC, phased-in 11 938 90 559 13.2% DC, fully loaded 12 068 93 874 12.9% 27

Solid liquidity position (1) KBC Bank continues to have a strong retail/mid-cap deposit base in its core markets resulting in a stable funding mix with a significant portion of the funding attracted from core customer segments & markets 7% 8% 5% 5% 8% 8% 7% 8% 7% 7% 3% 3% 6% 5% 2% 3% 5% 100% 9% 0% 2% 7% 8% 10% 8% 7% 8% 9% 8% 9% 9% 2% 7% 3% 2% 3% 2% 7% 29% 66% 64% 70% 69% 73% 75% 74% 74% customer driven 62% Retail and SME Mid-cap FY08 FY09 Net unsecured interbank funding FY10 FY11 Total equity FY12 FY13 1H14 Debt issues in retail network Government and PSE Net secured funding Certificates of deposit Debt issues placed with institutional investors Funding from customers 28

Solid liquidity position (2) (*, **) KBC maintains a solid liquidity position in 2Q14 given that: Available liquid assets are more than 4 times the amount of the net recourse on short-term wholesale funding Funding from non-wholesale markets is stable funding from core-customer segments in core markets * In line with IFRS5, the situation at the end of 2Q14 excludes the divestments that have not yet been completed (KBC Deutschland and ADB) ** Graphs are based on Note 18 of KBC s quarterly report, except for the available liquid assets and liquid assets coverage, which are based on the KBC Group Treasury Management Report Ratios 2Q14 Target NSFR 1 109% 105% LCR 1 123% 105% NSFR at 109% and LCR at 123% by the end of 2Q14 In compliance with the implementation of Basel 3 liquidity requirements, KBC is targeting LCR and NSFR of at least 105% 1 LCR (Liquidity Coverage ratio) and NSFR (Net Stable Funding Ratio) are calculated based on KBC s interpretation of current Basel Committee guidance, which may change in the future. The LCR can be relatively volatile in future due to its calculation method, as month-to-month changes in the difference between inflows and outflows can cause significant swings in the ratio even if liquid assets remain stable 29

Upcoming mid-term funding maturities Following the successful issuance of CRD IV compliant Additional tier-1 Instrument of 1.4bn EUR in 1Q14, KBC has called 5 outstanding old-style tier-1 securities in 2Q14 (for a total amount of roughly 2.3bn EUR) KBC s credit spreads tightened further during 2Q14 KBC Bank has 5 solid sources of long-term funding: Retail term deposits Retail EMTN Public benchmark transactions Covered bonds (supporting diversification of the funding mix) Structured notes and covered bonds using the private placement format 30

Summary Covered Bond Programme (1) (details, see Annex 3) KBC HAS ISSUED SUCCESSFUL BENCHMARK COVERED BONDS AND PRIVATE PLACEMENTS FOR AN AMOUNT OF 4.81BN EUR KBC s 10bn EUR Covered Bond Programme is rated Aaa/AAA (Moody s/fitch) CRD and UCITS compliant / 10% risk-weighted All issues performed well in the secondary market KBC S COVERED BONDS ARE BACKED BY STRONG LEGISLATION AND SUPERIOR COLLATERAL Cover pool: Belgian residential mortgage loans Strong Belgian legislation inspired by German Pfandbriefen law Direct covered bond issuance from a bank s balance sheet Dual recourse, including recourse to a special estate with cover assets included in a register Requires license from the National Bank of Belgium (NBB) The special estate is not affected by a bank insolvency. In that case, the NBB can appoint a cover pool administrator to manage the special estate in issuer ; both monitor the pool on a ongoing basis The value of one asset category must be at least 85% of the nominal amount of covered bonds The value of the cover assets must at least be 105% of the covered bonds (value of mortgage loans is limited to 80% LTV) Maximum 8% of a bank s assets can be used for the issuance of covered bonds THE COVERED BOND PROGRAMME IS CONSIDERED AS AN IMPORTANT FUNDING TOOL FOR THE TREASURY DEPARTMENT KBC s intentions are to be a frequent benchmark issuer if markets permit 31

dec/07 jun/08 dec/08 jun/09 dec/09 jun/10 dec/10 jun/11 dec/11 jan/12 feb/12 mrt/12 apr/12 mei/12 jun/12 jul/12 aug/12 sep/12 okt/12 nov/12 dec/12 jan/13 feb/13 mrt/13 apr/13 mei/13 jun/13 jul/13 aug/13 sep/13 okt/13 nov/13 dec/13 jan/14 feb/14 mrt/14 0.012% 0.008% 0.006% 0.009% 0.012% 0.020% 0.013% 0.238% 0.199% 0.214% 0.259% 0.291% 0.324% 0.345% 0.347% 0.344% 0.348% 0.36% 0.38% 0.36% 1.10% 1.09% 1.10% 1.14% 1.12% 1.12% 1.11% 1.08% 1.08% 1.09% 1.09% 1.09% 1.10% 1.11% 1.09% 1.08% 1.08% 1.08% 1.06% 1.06% 1.06% 1.06% 1.12% 1.12% 1.13% 1.14% 1.12% 1.11% 1.12% 1.13% 1.14% 1.15% 1.16% 1.16% 1.16% 1.17% Summary Covered Bond Programme (2) (details, see Annex 3) COVER POOL: BELGIAN RESIDENTIAL MORTGAGE LOANS Exclusively this as selected main asset category Value (including collections) at least 105% of the outstanding covered bonds Branch originated prime residential mortgages predominantly out of Flanders Selected cover asset have low average LTV (67.6%) and high seasoning (40 months) KBC HAS A DISCIPLINED ORIGINATION POLICY 2007 to 2013 average residential mortgage loan losses below 2 bp Arrears in Belgium approx. stable over the past 10 years: (i) Cultural aspects, stigma associated with arrears, importance attached to owning one s property (ii) High home ownership also implies that the change in house prices itself has limited impact on loan performance (iii) Well established credit bureau, surrounding legislation and positive property market 1.2% 1.0% 0.8% Market loans in 3 months arrears KBC loans in default KBC loan losses 0.6% 0.4% 0.2% 0.0% 32

Contents 1 Strategy and business profile of KBC Group 2 Financial performance of KBC Group 3 Asset quality of KBC Bank/Group 4 Liquidity and solvency of KBC Bank/Group 5 Wrap up Appendices 33

Wrap up (at KBC Group level) SOLID CAPITAL AND ROBUST LIQUIDITY POSITIONS Common equity ratio (B3 fully loaded 1 based on Danish Compromise) of 12.9% at end 2Q14 Continued strong liquidity position (NSFR at 109% and LCR at 123%) STRONG BUSINESS PERFORMANCE IN 2Q14 Net result of 317m EUR and adjusted 2 net result of 287m EUR. The latter is the result of: o Strong commercial bank-insurance franchises in our core markets and core activities o Higher net interest income and margin q-o-q, with increasing loan volumes in our core countries o Q-o-q increase of net fee and commission income and a further rise in AuM o Substantial negative M2M ALM derivatives (-57m EUR) o Negative net other income, due fully to one-off provisions of 231m EUR for KBC s Hungarian retail loan book (both the correction to the bid-offer spreads and the unilateral changes to interest rates). Legal basis will be challenged o Combined ratio (97% in 2Q14 and 93% YTD) impacted by hailstorms in Belgium, while life insurance sales were slightly higher o Good cost/income ratio (55% in 2Q14 and YTD) adjusted for specific items (mainly M2M impact of ALM derivatives and one-off provisions in Hungary) o Still low impairment charges, although higher q-o-q. We are maintaining our FY 2014 guidance for Ireland, namely the high end of the range 150m-200m EUR 1. Including remaining State aid of 2bn EUR 2. Adjusted net result is the net result excluding a limited number of non-operational items, being legacy CDO and divestment activities and the M2M effect of own debt instruments due to own credit risk 34

Appendices 1 KBC 2013/14 benchmarks + overview of outstanding benchmarks 2 KBC Bank CDS levels 3 4 5 6 7 Summary - KBC s covered bond programme Details selective credit exposure Summary of government transactions Solvency: details, CT1 from 1Q14 to 2Q14 Macroeconomic views 35

KBC 2013 Benchmarks (1/2) KBC 10NC5Y Fixed Contigent Capital Note BE6248510610 Notional: 1bn USD Issue Date: 25 January 2013 Maturity: 25 January 2023 Coupon: 8%, A, Act/Act Re-offer spread: USD Mid Swap + 709.7bp (issue price 100%) Joint lead managers: KBC, BofA Merrill Lynch, Credit Suisse, Goldman Sachs, JPMorgan and Morgan Stanley KBC 10Y Fixed - Covered Bond BE0002425974 Notional: 750m EUR Issue Date: 31 January 2013 Maturity: 31 January 2023 Coupon: 2%, A, Act/Act Re-offer spread: Mid Swap + 36bp (issue price 99.24%) Joint lead managers: KBC, BNP Paribas, Commerzbank and Deutsche Bank KBC 7Y Fixed - Covered Bond BE0002434091 KBC 3Y Fixed - Covered Bond BE0002441161 Notional: 1 bn EUR Issue Date: 28 May 2013 Maturity: 28 May 2020 Coupon: 1.25%, A, Act/Act Re-offer spread: Mid Swap + 16bp (issue price 99.277%) Joint lead managers: KBC, DZ Bank, LBBW and RBS Notional: 750m EUR Issue Date: 29/8/2013 Maturity: 29 Augustus 2016 Coupon: 0.875%, A, Act/Act Re-offer spread: Mid Swap + 5bp (issue price 99.888%) Joint lead managers: KBC, Commerzbank, Deutsche Bank, ING and Unicredit 36

KBC 2013 Benchmarks (2/2) KBC 5Y Fixed Senior Unsecured XS0969365591 Notional: 750m EUR Issue Date: 10 September 2013 Maturity: 10 September 2018 Coupon: 2.125%, A, Act/Act Re-offer spread: Mid Swap +78 (issue price 99.728%) Joint lead managers: KBC, GSI, Natixis and UBS 37

KBC 2014 Benchmarks KBC 5Y Fixed Covered BE0002462373 Notional: 750m EUR Issue Date: 25 February 2014 Maturity: 25 February 2019 Coupon: 1%, A, Act/Act Re-offer spread: Mid Swap +10bp (issue price 99.391%) Joint lead managers: KBC, Deutsche Bank, DZ Bank, ING Bank, and Unicredit KBC PerpNC5Y Fixed Additional Tier 1 BE0002463389 Notional: 1.4bn EUR Issue Date: 19 March 2014 Maturity: perpetual NC5 Coupon: 5.625%, A, Act/Act Re-offer spread: Mid Swap + 475,9bp (issue price 100%) Joint lead managers: KBC, Goldman Sachs, JP Morgan, Morgan Stanley and UBS 38

Outstanding Benchmarks Tranche Report Issuer Curr Amount issued Coupon Settlement Date Maturity Date ISIN YEAR UNSECURED KBC Ifima N.V. EUR 1.250.000.000 4.5 17/09/2009 17/09/2014 XS0452462723 2014 KBC Ifima N.V. EUR 750.000.000 3.875 31/03/2010 31/03/2015 XS0498962124 2015 KBC Ifima N.V. EUR 750.000.000 5.0 16/03/2011 16/03/2016 XS0605440345 2016 KBC Ifima N.V. EUR 250.000.000 3.875 14/04/2011 31/03/2015 XS0498962124 2015 KBC Ifima N.V. EUR 500.000.000 4.375 25/05/2011 26/10/2015 XS0630375912 2015 KBC Ifima N.V. EUR 1.000.000.000 4.5 27/03/2012 27/03/2017 XS0764303490 2017 KBC Ifima N.V. EUR 500.000.000 3.0 29/08/2012 29/08/2016 XS0820869948 2016 KBC Ifima N.V. EUR 750.000.000 2.125 10/09/2013 10/09/2018 XS0969365591 2018 COVERED KBC Bank N.V. EUR 1.250.000.000 1.125 11/12/2012 11/12/2017 BE6246364499 2017 KBC Bank N.V. EUR 750.000.000 2 31/01/2013 31/01/2023 BE0002425974 2023 KBC Bank N.V. EUR 1.000.000.000 1.25 28/05/2013 28/05/2020 BE0002434091 2020 KBC Bank N.V. EUR 750.000.000 0.875 29/08/2013 29/08/2016 BE0002441161 2016 KBC Bank N.V. EUR 750.000.000 1 25/02/2014 25/02/2019 BE0002462373 2019 Total = 10.25bn EUR 4 000 3 000 2 000 1 000 Maturity profile KBC benchmark issues in million euros 0 2014 2015 2016 2017 =>2018 39

Main characteristics of Subordinated Debt Issues SUBORDINATED BOND ISSUES KBC KBC Bank NV KBC Bank NV T2 Coco KBC Groep NV AT1 Amount issued GBP 525 000 000 USD 1 000 000 000 EUR 1 400 000 000 Tendered GBP 480 500 000 Net Amount GBP 44 500 000 USD 1 000 000 000 EUR 1 400 000 000 ISIN-code BE0119284710 BE6248510610 BE0002463389 Call date 19/12/2019 25/01/2018 19/03/2019 Initial coupon 6.202% 8% 5.625% Coupon step-up / reset First (next) call date 3m gbp libor + 193bps $ MS 5Y + 7.097% MS 5Y + 4.759% 19/12/2019 25/01/2018 19/03/2019 ACPM Yes - - Dividend Stopper Yes - - Conversion into PSC Trigger Yes - - CT1/CET1 < 7% at KBC Group level Full and permanent writedown Supervisory Event or general "concursus creditorum" Trigger CET1 RATIO < 5.125% Temporary writedown 40

Main terms of CRD IV-compliant AT1 issue Issuer Instrument Ranking Issuer ratings Instrument rating Currency / size Issue format Optional redemption Coupon Coupon cancellation Principal write-down Trigger event Return to financial health PONV KBC Group NV ( Issuer ) Undated Deeply Subordinated Additional Tier 1 Fixed Rate Resettable Callable Securities ( Securities ) Deeply subordinated and senior only to ordinary shares of the Issuer and any other instrument ranking pari passu with such ordinary shares, or otherwise junior to the issuer s obligations under the securities A3/A/A- (Moody's, S&P, Fitch) Rated BB by S&P and BB by Fitch EUR 1.4bn PerpNC5 Callable on the First Call Date and every interest payment date thereafter Callable on Tax or Regulatory event Securities callable at the Prevailing Principal Amount plus accrued interest, but only if the Prevailing Principal Amount is equal to the Original Principal Amount Subject to regulatory approval (if required) 1 Fixed rate of 5.625% per annum until (but excluding) the First Call Date, reset every 5 years thereafter (non-step) Payable quarterly Non-cumulative Fully discretionary Mandatory cancellation upon insufficient Distributable Items or if payment exceeds MDA Temporary write-down upon the occurrence of a Trigger Event The write-down amount will be the lower of The amount of write-down required to cure the Trigger Event pro rata with similar loss absorbing instruments (post cancellation of accrued interest on the Securities and the prior or concurrent write-down or conversion into equity if any prior loss-absorbency instruments) and The amount necessary to reduce the Prevailing Principal Amount of the securities to 1 cent Issuer s consolidated CET1 Ratio < 5.125% (on a transitional basis) Gradual write-up 2 to the Original Principal Amount if a positive consolidated net income of Issuer is recorded Fully discretionary write-up and pro rata with other similar instruments Subject to the Maximum Write-up Amount and to the MDA Statutory 1. The applicable banking regulations do not permit purchases in the first 5 years 2. Write-up will be based on the applicable transitional CET1 definition using the Danish Compromise 41

KBC Bank CDS levels since 2009 43

Key messages on KBC s covered bond programme KBC s covered bonds are backed by strong legislation and superior collateral KBC s covered bonds are rated Aaa/AAA (Moody s/fitch) Cover pool: Belgian residential mortgage loans Strong Belgian legislation inspired by German Pfandbriefen law KBC has a disciplined origination policy 2007 to 2013 average residential mortgage loan losses below 2 bp CRD and UCITS compliant / 10% risk-weighted KBC already issued five successful benchmark covered bonds (3, 5, 7 and 10 year) The covered bond programme is considered as an important funding tool Sound economic picture provides strong support for Belgian housing market High private savings ratio of 15.2% Belgian unemployment is significantly below the EU average Demand still outstrips supply 45

KBC s disciplined origination leads to low arrears and extremely low loan losses dec/07 1.10% 0.238% 0.012% jun/08 1.09% 0.199% dec/08 1.10% 0.214% 0.008% jun/09 0.259% 1.14% dec/09 1.12% 0.291% 0.006% jun/10 1.12% 0.324% dec/10 1.11% 0.345% 0.009% jun/11 1.08% 0.347% dec/11 1.08% 0.344% 0.012% jan/12 1.09% feb/12 1.09% mrt/12 1.09% apr/12 1.10% mei/12 1.11% jun/12 1.09% 0.348% jul/12 1.08% aug/12 1.08% sep/12 1.08% okt/12 1.06% nov/12 1.06% dec/12 1.06% 0.36% 0.020% jan/13 1.06% feb/13 1.12% mrt/13 1.12% apr/13 1.13% mei/13 1.14% jun/13 1.12% 0.38% jul/13 1.11% aug/13 1.12% sep/13 1.13% okt/13 1.14% nov/13 1.15% dec/13 1.16% 0.36% 0.013% jan/14 1.16% feb/14 1.16% mrt/14 1.17% BELGIUM SHOWS A SOLID PERFORMANCE OF MORTGAGES Arrears have been very stable over the past 10 years. Arrears in Belgium are low due to: Cultural aspects, stigma associated with arrears, importance attached to owning one s property High home ownership also implies that the change in house prices itself has limited impact on loan performance Well established credit bureau and surrounding legislation Housing market environment (no large house price declines) AND KBC HAS EXTRAORDINARY LOW LOAN LOSSES 1.2% 1.0% 0.8% Market loans in 3 months arrears KBC loans in default KBC loan losses 0.6% 0.4% 0.2% 0.0% 46

Note Holders Belgian legal framework National Bank of Belgium Cover Pool Monitor Direct covered bond issuance from a bank s balance sheet Dual recourse, including recourse to a special estate with cover assets included in a register The special estate is not affected by a bank s insolvency Requires licences from the National Bank of Belgium (NBB) Ongoing supervision by the NBB The cover pool monitor verifies the register and the portfolio tests and reports to the NBB The NBB can appoint a cover pool administrator to manage the special estate Issuer Special Estate with Cover Assets in a Register Covered bonds Proceeds Cover Pool Administrator Representative of the Noteholders 47

Strong legal protection mechanisms 1 Collateral type The value of one asset category must be at least 85% of the nominal amount of covered bonds KBC Bank selects residential mortgage loans and commits that their value (including collections) will be at least 105% 2 Overcollateralisation Test The value of the cover assets must at least be 105% of the covered bonds The value of residential mortgage loans: 1) is limited to 80% LTV 2) must be fully covered by a mortgage inscription (min 60%) plus a mortgage mandate (max 40%) 3) 30 day overdue loans get a 50% haircut and 90 days (or defaulted) get zero value 3 Cover Asset Coverage Test The sum of interest, principal and other revenues of the cover assets must at least be the interest, principal and costs relating to the covered bonds Interest rates are stressed by plus and minus 2% for this test 4 Liquidity Test Cover assets must generate sufficient liquidity or include enough liquid assets to pay all unconditional payments on the covered bonds falling due the next 6 months Interest rates are stressed by plus and minus 2% for this test 5 Cap on Issuance Maximum 8% of a bank s assets can be used for the issuance of covered bonds 48

KBC Bank NV residential mortgage covered bond programme Issuer: KBC Bank NV Main asset category: min 105% of covered bond outstanding is covered by residential mortgage loans and collections thereon Programme size: Up to 10bn EUR (only) Interest rate: Fixed Rate, Floating Rate or Zero Coupon Maturity: Events of default: Soft Bullet: payment of the principal amount may be deferred past the Final Maturity Date until the Extended Final Maturity Date if the Issuer fails to pay Extension period is 12 months for all series Failure to pay any amount of principal on the Extended Final Maturity Date A default in the payment of an amount of interest on any interest payment date Rating agencies: Moody s Aaa /Fitch AAA Moody s Fitch Over-collateralisation 28% 24.5% TPI Cap Probable 49 D-cap 4 (moderate risk)

Source Bloomberg Mid ASW levels Benchmark issuance KBC covered bonds Since establishment of the covered bond programme KBC has issued five benchmark issuances: SPREAD EVOLUTION KBC COVERED BONDS (SPREAD IN BP VERSUS 6 MONTH MID SWAP) 50

Key cover pool characteristics (1/3) Investor reports, final terms and prospectus are available on www.kbc.com/covered_bonds Data based on preliminary portfolio data as of : 30 June 2014 Total Outstanding Principal Balance 7 606 499 733 Total value of the assets for the over-collateralisation test 6 897 756 750 No. of Loans 77 130 Average Current Loan Balance per Borrower 128 952 Maximum Loan Balance 1 000 000 Minimum Loan Balance 1 000 Number of Borrowers 58 987 Longest Maturity 359 month Shortest Maturity 1 month Weighted Average Seasoning 40.4 months Weighted Average Remaining Maturity 222 months Weighted Average Current Interest Rate 3.37% Weighted Average Current LTV 67.6% No. of Loans in Arrears(+30days) 164 Direct Debit Paying 97% 51

Key cover pool characteristics (2/3) REPAYMENT TYPE (LINEAR VS. ANNUITY) Annuity 97% LOAN PURPOSE Linear 3% Luxemburg 0.2% Namen 0.2% Henegouwen 0.7% West- Vlaanderen 15.3% GEOGRAPHICAL ALLOCATION Oost- Vlaanderen 17.9% Luik 1.4% Onbekend 0.1% Limburg 12.2% Brussels Hoofdstedelijk gewest 5.1% Waals Brabant 0.8% Antwerpen 29.0% Vlaams Brabant 17.2% INTEREST RATE TYPE (FIXED PERIODS) Construction 15.14% Other 0.00% Remortgage 17.58% Purchase 67.28% 52

<10 10 to 20 20 to 30 30 to 40 40 to 50 50 to 60 60 to 70 70 to 80 80 to 90 90 to 100 100 to 110 110 to 120 120 to 130 130 to 140 140 to 150 Key cover pool characteristics (3/3) 60.00 50.00 40.00 FINAL MATURITY DATE Weighted Average Remaining Maturity: 222 months 35.00 30.00 25.00 SEASONING Weighted Average Seasoning: 40 months % 30.00 20.00 10.00 0.00 2013-2017 2018-2022 2023-2027 2028-2032 > 2032 % 20.00 15.00 10.00 5.00 0.00 109-97 - 108 85-96 73-84 61-72 49-60 37-48 25-36 13-24 -12 Months INTEREST RATE CURRENT LTV 35.00 30.00 25.00 20.00 15.00 % 10.00 5.00 Weighted Average Current Interest Rate: 3.37% 20.00 15.00 10.00 % 5.00 0.00 Weighted Average Current LTV: 67.6% 0.00 < 2.5 2.5 to 3.0 3.0 to 3.5 3.5 to 4.0 4.0 to 4.5 4.5 to 5.0 5.0 to 5.5 5.5 to 6.0 6.0 to 6.5 6.5 to 7.0 > 7.0 Interest rate 53

Hungary (1) 15% 14% 13% 12% 11% 10% 9% 8% HUNGARIAN LOAN BOOK KEY FIGURES AS AT 30 JUNE 2014 Loan portfolio Outstanding NPL NPL coverage SME/Corporate 2.7bn 4.6% 81% Retail 2.4bn 18.5% 72% o/w private 1.9bn 21.1% 72% o/w companies 0.5bn 7.7% 79% TOTAL 5.1bn 11.1% 73%* * NPL coverage ratio calculated under the current definition (NPL = PD 11 & 12). If we apply the new definition (NPL = PD 10, 11 & 12), the NPL coverage ratio would amount to 56% 14.3% 11.3% 12.6% PROPORTION OF HIGH RISK AND NPLS 13.3% 13.5% 13.5% 11.9% 13.0% 11.7% 11.9% 11.4% 11.3% 11.2% 11.7% 12.1% 10.7% 12.3% 11.7% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Non-performing High Risk (probability of default > 6.4%) 11.8% 11.1% 2Q14 net result at the K&H Group amounted to -139m EUR including 231m EUR pre-tax (183m EUR post-tax) provision for the law on retail loans. (Excluding this item, quarterly result would amount to +44m EUR, significantly exceeding the +26m EUR net result in the corresponding period of 2Q13) The CAD-ratio of K&H Bank consolidated remains above the regulatory minimum of 11% YTD net result amounted to -148m EUR (including -42m EUR post-tax impact of FY bank tax charge and the -183m EUR posttax impact of the above mentioned provision) Loan loss provisions amounted to 13m EUR in 2Q14 (11m EUR in 1Q14). The credit cost ratio came to 0.96% in 1H14 (versus 1.50% in FY 2013) NPL ratio continued to improve in 2Q14 (11.1% in 2Q14, 11.7% in 1Q14, 12.1% in 4Q13) due primarily to the SME/corporate portfolio, while retail NPL continued to deteriorate 55

Hungary (2) IMPACT OF HUNGARIAN SUPREME COURT S (CURIA) DECISION The act on the Resolution of certain issues related to the Supreme Court s (Curia) uniformity decision on consumer loan agreements concluded by financial institutions was approved on 4 July by the Hungarian Parliament The scope of the act includes retail loans in both foreign currency and Hungarian forints. According to the act, the use of foreignexchange-rate margins in consumer loans denominated in foreign currency is unfair and void and, therefore, bid-offer spreads applied to those foreign currency loans need to be retroactively corrected. Furthermore, as regards all consumer loans, the act provides a refutable assumption of unfairness and repeals unilateral changes to interest rates and fees applied by the banks. The concrete way of financial settlement with clients is going to be handled in a separate act ( act on settlement issues ) later this year K&H will start legal action to rebut the assumption of unfairness K&H set aside one-off net provisions of 231m EUR (pre-tax) in 2Q14 for both the correction to the bid-offer spreads and the unilateral changes to interest rates, using the methodology guideline issued by the Hungarian National Bank o On 29 July, the supervisory authority, the Hungarian National Bank, has issued a methodology guideline for the recalculation necessitated by the annulment of the bid-offer spread. Compliance with such methodology guideline is not a legal obligation, but merely a guideline that will serve as the basis for verification of the methodology by the Hungarian National Bank o Applying the Hungarian National Bank methodology guideline to the bid-offer spread and also to the unilateral changes to interest rates, leads to a provision which is 70m EUR higher than the calculation method proposed by the Hungarian Banking Association, and followed by K&H Bank. Applying this last method, the provision would amount to 161m EUR o K&H Bank is convinced that the calculation method proposed by the Hungarian Banking Association is fully in line with the Hungarian civil code and will therefore defend its position Any potential additional costs related to the complete phase-out of retail foreign currency loans announced by government officials for 2H14 are not included in the above estimate 56

Hungary (3) Multiple changes - full impact remains uncertain until regulation is finalised Changes approved on July 4 th Possible additional changes FX bid-offer spread is void All payments related to FX loans (disbursement of the loan, capital and interest payment) should be converted at mid-rate instead of bid-offer rate Customers to be compensated for FX spread charges Unilateral contract modifications by creditors are void Unilateral changes in interest rates, fees and cost amounts are unfair and should be restituted Financial institutions may launch lawsuits to prove that their changes complied with all requirements set by the Curia Impact on KBC Conversion of FX loans to HUF Remaining FX loans to be converted to HUF Conversion rate (below market rate?) still to be decided Total FX loan book at end 1H14: 1.5bn EUR Retail FX housing loans: 0.6bn EUR Retail FX home equity loans: 0.8bn EUR FX car loans: 0.1bn EUR New law is applicable to contracts concluded from 1 May 2004, including contracts repaid over the last 5 years. Estimated impact on K&H: 231m EUR (pre-tax), provisioned in 2Q14, using the methodology guideline issued by the Hungarian National Bank. Applying the Hungarian National Bank methodology guideline to the bid-offer spread and to the unilateral interest rate changes, leads to a provision amount which is 70m EUR higher than the calculation method proposed by the Hungarian Banking Association, and followed by K&H Bank. Applying this last method, the provision would amount to 161m EUR The CAD-ratio of K&H Bank consolidated remains above the regulatory minimum of 11% 57 Impact will depend on: conversion rate whether or not the banking sector has to bear the entire conversion cost the interest margin K&H would be allowed to take on new loans

Ireland (1) 35 30 25 20 15 10 5 0 IRISH LOAN BOOK KEY FIGURES AS AT 30 JUNE 2014 LOAN PORTFOLIO OUTSTANDING NPL Owner occupied mortgages 1. The total NPL coverage ratio amounted to 69% at the end of 2Q14 (72% in 1Q14) taking into account the adjustments for the Mortgage Indemnity Guarantee and Reserved Interest (58% for owner occupied mortgages and 71% for buy to let mortgages, respectively) 2. NPL coverage ratio calculated under the current definition (NPL = PD 11 & 12). If we apply a NPL definition of PD 10, 11 & 12, the coverage ratio would amount to 36% (36% 1Q14) PROPORTION OF HIGH RISK AND NPLS NPL COVERAGE 9.0bn 22.2% 50% 1 Buy to let mortgages 3.0bn 38.1% 64% 1 SME /corporate 1.4bn 28.3% 103% Real estate investment Real estate development 1.0bn 0.5bn 45.6% 89.4% 73% 80% Total 15.0bn 29.7% 64% 1, 2 24.4% 23.3% 4Q12 24.9% 24.0% 1Q12 25.8% 24.9% 2Q13 25.9% 25.7% 3Q13 31.7% 26.2% 4Q13 30.7% 27.4% High Risk (probability of default > 6.4%) Non-performing (PD11-12) 1Q14 29.7% 28.6% 2Q14 The High Risk portion of loans increased significantly in 4Q13 due to the reassessment of the loan book Loan loss provisions in 2Q14 of 62m EUR (48m EUR in 1Q14). An increase this quarter as a result of the continued implementation of the EBA guidelines issued in October 2013 and a methodology change. Net loss in 2Q14 was 57m EUR (-40m EUR in 1Q14) Nevertheless, we are maintaining our FY 2014 guidance for Ireland, namely the high end of the range 150m-200m EUR. For each of FY15 and FY16, loan loss provisions are still expected to be between 50m-100m EUR. Profitability expected from 2016 onwards Arrears continue to decrease with four consecutive months of decline at the end of 2Q14 Most recent GDP data (1Q14) shows a stronger trend that is more consistent with the improvement in indicators relating to employment and property markets. Exports should be supported by healthier conditions in key trading partners (US and UK) and a strong pipeline of foreign direct investment into Ireland An emerging turn in domestic spending remains overall uneven and modest as income growth continues to be weak. However, rising employment and some easing in uncertainty are being reflected in stronger trends in areas such as car sales and home refurbishment A recovery in the housing market is still centered on Dublin but appears to be broadening in 1H14. Transaction levels are about a third higher in the first five months of the year than the comparable period of 2013. With effective supply still limited and property values still subdued relative to long term price to income ratios, prices are expected to trend higher in coming months KBCI is proactively engaging with those customers who are experiencing financial difficulty and is implementing its long term Mortgage Arrears Resolution Strategy. As part of this, KBCI has met the 2Q14 public targets set by the Central Bank of Ireland Continued focus on retail customer acquisition with 9,000 new customers acquired in 2Q14. Retail deposits net inflows continue to increase, leading to 3.2bn EUR at the end of 2Q14. Customer growth is being driven by an expanding digitally led distribution model supported by selective new Hub locations Increase in mortgage activity in 2Q14 with both application and completion volumes increasing significantly Local tier-1 ratio of roughly 14% at the end of 2Q14 The current definition of Non-Performing loans (NPL) being PD11-12 will be reviewed in 3Q14 in the context of the draft October 2013 EBA Technical Standards. Based on this reviewed definition, the NPL coverage ratio will drop substantially 58