KBC closed Q4 2004 with a profit of 557 million euros, well above the
average for the preceding quarters. This brought profit for the year to 1
758 million euros, a 57% increase on 2003. The merger between KBC and
Almanij, which became legally effective on 1 January 2005, did not have any
impact on these results for 2004.

The full text of the earnings release is available at www.kbc.com, along
with a Powerpoint presentation, detailed financial statements, pro forma
figures for the new KBC Group for 2004 and information on the impact on the
results of IFRS. The live audio cast of the meeting for financial analysts
(in Brussels) this afternoon at 3.30 p.m. CET can be accessed at www.kbc.com
or tel. +44 207 162 0181.

Financial highlights - 4Q 2004:
· In Belgium, a successful marketing campaign was conducted for investment
products, helping to push banking income (1.6 billion euros) and premium
income in the life insurance business (1.2 billion euros) up to a high
level.
· Loan loss provisions remained relatively low (65 million euros); the
technical result from non-life insurance remained strong (claims ratio for
the quarter: 60%).
· The negative impact of impairments on the equity portfolio over the first
nine months of 2004 was able to be offset during the fourth quarter, thanks
in part to additional capital gains on investments. Gains were realized on
the sale of equity positions in Belgian airport operator BIAC (53 million
euros), Irish insurance group FBD (36 million euros), the Luxemburg bank KBL
(33 million euros) and KBC's parent company Almanij (49 million euros).
· Despite the increase in costs and the extra reserves set aside for low
interest rates in the life insurance business, profit for the quarter (557
million euros) went up considerably compared with the preceding quarter
(+68%). Year-on-year, profit more than doubled (+115%).

Financial highlights - FY 2004
· Net profit increased by 639 million euros to 1 758 million euros (+57%).
· Robust organic growth was recorded in revenues: banking income went up by
356 million euros (+6%), while premium income in the insurance business
climbed 1.2 billion euros (+33%).
· In the banking business, expenses fell by 59 million euros (-2%),
resulting in a marked improvement in the cost/income ratio, which went from
65% in both 2002 and 2003 to 60% in 2004.
· In the non-life insurance business, the technical result remained sound,
with the combined ratio coming to 95% (compared to 105% in 2002 and 96% in
2003).
· The operating result in the insurance business slipped, however, owing to
the lower average return achieved on the investment portfolio, mainly
because of the prevailing low-interest-rate climate.
· Loan losses were limited, and the loan loss ratio came to 0.20% (compared
with 0.55% in 2002 and 0.71% in 2003).
· Return on allocated capital in the retail business (mainly in Belgium)
amounted to 19%, and in the corporate and market activities to 19% and 20%,
respectively. In Central and Eastern Europe, there was a fine recovery in
profitability (return of 14%), following a difficult 2003. For the entire
group, return on equity came to 18%.

Outlook for 2005
The fundamental strategy of the (new) KBC Group is focused on strengthening
the market position in Bancassurance and achieving further efficiency gains
in Belgium, consolidating the position in the new retail home markets in the
Czech Republic, Hungary, Poland, Slovakia and Slovenia, and further
developing private banking activities in Europe. Although economic growth is
expected to start slowing down a bit in 2005, company earnings prospects are
good in most markets where KBC Group operates. KBC will also sustain its
strict cost discipline and seek to harness synergy stemming from the merger
with Almanij. Consequently, we expect that KBC Group NV's consolidated
profit for 2005 (under IFRS) will exceed the Group's comparable pro forma
IFRS results for 2004.


KBC Group: Almanij's results for the 2004 financial year

For the twelve months of 2004, the result from ordinary activities amounted to 2,548 million euros, a rise of 37% on the figure for 2003. After extraordinary charges and higher minority interests, net profit for the year climbed by 21% to 1,138 million euros.

For the fourth quarter of 2004, the result from ordinary activities amounted to 653 million euros, up 44% on the level for the fourth quarter of 2003. Net profit increased by 25% to 318 million euros.