KBC Investor Day 2008

Regulated information* - 6 June 2008 (6 a.m. CEST)

KBC's CEER activities continue to drive strong earnings growth

Net profit contribution from CEER is expected to almost double by
2010

During today's Investor Day in Moscow, the KBC group will present  an
update of its  strategy and  business plans for  Central and  Eastern
Europe and Russia (CEER).

André Bergen,  KBC Group  CEO,  summarises today's  announcements  as
follows: 'KBC expects  substantial growth and  return in Central  and
Eastern Europe and Russia. We are in the process to open branches  in
the main  CEE  countries (Poland,  Hungary,  the Czech  Republic  and
Slovakia) - increasing  the number of  branches by 45%  by 2009 -  to
introduce new  product  lines,  to implement  a  cross-border  shared
operations approach  and  plan  to acquire  additional  companies  to
strengthen current  market shares.  Profit from  the CEER  region  is
expected to  double within  three years  and Russian  operations  are
expected to contribute  close to 100 million  euros to this  earnings
growth by 2010. The  CEER Business Unit  has recorded average  annual
earnings growth of 32% over the past six years. In 2007, the region's
earnings growth represented about half of that of the group.'

Mr Bergen continues:  'the Central and  Eastern European and  Russian
region is expected to remain the group's growth engine over the  next
few years: the economic outlook for our home markets will support us,
and recent initiatives to further strengthen our positions will start
to deliver. We  are also  well on our  way to  ensure solid  earnings
growth in the region after 2009. We are now active in new high-growth
countries further  east  and  are making  additional  investments  to
upgrade technology and extend the business mix further.  As announced
earlier this  year, KBC  will  invest 600  million euros  to  upgrade
technology in order to harmonise group-wide business processes and IT
applications. In the  first phase (2009-2011),  this will impact  the
results, but in the long term, the investment is expected to have  an
annual positive impact in  excess of 200 million  euros. In the  past
ten years,  KBC  has  invested 7.4  billion  euros  in  acquisitions.
Initially, the group benefited from a strong first-mover  acquisition
advantage and, more recently, has maintained its pricing discipline.
In the years ahead,  KBC will focus  on developing existing  markets,
including selected 'plug-in'  acquisitions in these  markets. We  are
convinced we have  the capacity  to generate  substantial growth  and
return, which  will benefit  our  shareholders, customers  and  staff
alike.'


CEER Business Unit to double its net profit contribution by 2010
In his update  of the business  plan, Jan Vanhevel,  CEO of the  CEER
Business Unit, added that  'volume expansion will  be the key  driver
for earnings growth,  while margin and  loan-loss trends remain  well
under control and non-interest  income is gradually accelerating.  If
we execute properly, the Business Unit's net profit will have  almost
doubled by 2010, from 0.6 billion  euros to 1.1 billion euros.  Close
to 100 million euros of net profit is expected to come from Russia by
2010.  Although  there  is  still  some  work  to  do,  for  example,
completing the expansion of the sales network, the execution risk  is
manageable.'

In order to ensure solid long-term earnings growth going forward from
2009, KBC aims  to build  a fully-fledged  bancassurance activity  in
Bulgaria and Serbia. In Romania, the  group will focus on the  niches
it is  already operating  in (consumer  finance, leasing,  securities
business), and in Russia, KBC will concentrate initially on  mortgage
and SME loans,  with asset  management and  insurance possibly  being
added later.

CEE: fertile ground for equity brokerage and equity corporate finance
operations
In 2007, KBC Securities  was the leading equity  broker in the  Czech
Republic, Hungary and Romania. In Poland, it ranked seventh, while in
Serbia it took the number three spot. Meanwhile, market shares in all
countries continue to increase.
Between 2005 and 2007, some  60 corporate finance professionals in  a
pan-CEE network with  strong local teams  have executed  transactions
amounting to more than 20 billion euros.

Guy  Van  Eechaute,  KBC   Securities  CEO,  summarised  the   recent
developments and expectations:  'KBC  has become a leading player  in
corporate finance and  stockbroking services for  small and  mid-caps
and local blue chips throughout Central and Eastern European markets.
The   combination   of   local   retail   investors,    international
institutional investors investing  in emerging  countries, and  local
IPOs and mergers and acquisitions has led to long-term revenue growth
with acceptable volatility. The earnings growth outlook for the  next
3-5 years is,  under normal  market conditions, expected  to reach  a
compounded annual growth rate of 30%'.

KBC Private Banking:  integrated into Western  Europe, due to  expand
into CEE by 2009
KBC is active in private banking through two complementary models:  a
KBC-branded network  and a  network of  boutique-style private  banks
under separate  brands (the  European Private  Banking concept).  Its
assets under management reached 54 billion euros at the end of  2007,
while its underlying net profit contribution amounted to 194  million
euros.

Jacques Peters, Senior General Manager European Private Banking: 'The
structural review  of KBC's  European Private  Banking Business  Unit
(EPB) in recent  years -  including exiting  non-core activities  and
realising synergies - has created the basis for double-digit business
growth in onshore private banking  in the years ahead. Moreover,  KBC
is now ready to 'go East' and to sharpen up its strategic  objectives
by transferring the EPB  business model to the  CEE markets. Once  at
full speed, private banking in Central and Eastern Europe is expected
to add  at least  10%  to the  profit  contribution of  the  European
Private Banking Business Unit.'

Absolut Bank's ambitious plans in Russia
Russia's  fast-growing  economy,   political  stability  and   rising
purchasing power provide a solid  environment for an emerging  retail
banking industry.  Absolut Bank,  KBC's recent  acquisition,  growing
rapidly in every  aspect, has doubled  its size every  year over  the
past five years.

Nikolaj Sidorov, CEO of Absolut Bank, Russia explained: 'With its
focussed strategy and ambitious branch expansion program, Absolut
Bank is outgrowing many competitors. With the support of our
shareholder, KBC, it is our aim to become one of Russia's top-15
banks in terms of total assets. At the same time, risks are closely
monitored and risk management standards adequately covered, in close
co-operation with our colleagues from KBC. If the business plan is
executed properly, Absolut Bank will contribute close to 100 million
euros to the KBC group earnings by the beginning of the next decade.'

* This news item contains information that is subject to the
transparency regulations for listed companies.