Press release Brussels/Utrecht, 13 May 2008

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(1)Press release Brussels/Utrecht, 13 May 2008. Results First Quarter 2008. Fortis first quarter net profit of EUR 808 million driven by resilient operational performance •. Sustained organic operational growth, especially in banking, and strict cost management result in a first quarter net profit of EUR 808 million, including EUR 380 million net of tax impact of the credit market turmoil.. •. Banking - First quarter net profit of EUR 721 million, including EUR 231 million of after-tax impairments on structured credit portfolio - Income growth of 17% year-on-year driven by higher income from treasury and financial markets as well as strong underlying growth in net interest income in all banking businesses - Strict cost containment resulted in a 2% increase in expenses and an improvement of the efficiency ratio - Credit loss ratio of 12 basis points, excluding impairments on the structured credit portfolio, reflecting continued strong credit quality of loan portfolio - Asset Management and Private Banking saw a net inflow of EUR 2.6 billion in the first quarter - Good underlying pro forma net profit of acquired ABN AMRO activities of EUR 319 million - Well on track with the integration of ABN AMRO, Asset Management transferred as per 1 April 2008. •. Insurance - First quarter net profit of EUR 219 million, including EUR 149 million of after tax impact of the credit market turmoil - Life gross inflow up 5%, compared with a very strong first quarter 2007, to EUR 4.0 billion - Non-Life gross written premiums advanced 3% to EUR 1.9 billion driven by strong growth in Belgium and the Netherlands - Tight cost control in all countries resulted in a 2% increase in operating costs, fully related to the inclusion of Fortis Insurance Company Asia in Hong Kong - Combined ratio of 96.6% in Non-Life due to improved efficiency and focus on profitable underwriting. •. Net profit doubled compared to the fourth quarter which was heavily impacted by the write-downs on the structured credit portfolio, only partly offset by the gain on the sale of CaiFor - Further growth in revenues quarter-on-quarter while costs were significantly lower as a result of a strict management, especially visible in non-staff related expenses. Results First Quarter 2008 | 13 May 2008 |. 1. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Despite challenging markets continued growth in income supported by strict cost management.

(2) Fortis CEO Jean-Paul Votron comments: These continue to be highly challenging times, as reflected by the further deterioration of financial markets in the second half of March 2008. While it is clear that the US economy is suffering, it is still uncertain how the crisis will impact other economies, which in turn could affect commercial activity. We believe that the environment will continue to be challenging for the foreseeable future. The increased volatility of capital markets in the first quarter resulted in additional write-downs on our structured credit portfolio. The net of tax impact of the credit market turmoil recorded in the first quarter was limited to EUR 380 million thanks to the stringent view taken at the time of our full-year results publication. To address the impact of the changes in the environment, we already took various measures during the first quarter. Strict cost management, especially in non-staff related expenses, in combination with income growth at both the insurance and the banking operations resulted in a resilient operational performance illustrated by a net profit including the impact of the credit turmoil of EUR 808 million. Our first-quarter results also reflect the benefits of our strategy of having a significant presence in the Benelux countries, a region with a very strong credit history and relatively low volatility in earnings. At 1 April 2008, the asset management activities of ABN AMRO were transferred to Fortis, and the operational integration is proceeding according to plan. We also announced a number of key appointments in recent weeks to facilitate the future integration of the retail, commercial & corporate and private banking activities. Customers too are beginning to experience the benefit of the combined group, with several joint investment products already successfully launched in the market. In respect of the announced sale of certain Dutch activities under the agreed EC remedies, we are making good headway.. Our capital ratios were affected in the first quarter by the downturn in the equity markets. However, retained profit and the launch of non-dilutive instruments compensated for this development. Core capital remains well above our target. This surplus in core equity will decrease when the acquired ABN AMRO activities are transferred to Fortis during the course of 2008 and 2009, and consolidated for the first time. Nevertheless, we remain on track to meet our stated capital objectives for 2009, through the retention of future profits, selective asset sales and the issuance of non-dilutive instruments as previously indicated. The first-time publication of Fortis Bank’s capital requirements under Basel II illustrates the moderate risk profile of our franchise and provides scope for future capital relief. In summary, the environment remains challenging, but we will continue to take whatever steps are necessary to navigate successfully through the current crisis. At the same time, we remain firmly committed to delivering on our strategic business plans, including the successful integration of ABN AMRO and the development of our new partnership with Ping An.. Results First Quarter 2008 | 13 May 2008 |. 2. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The formation of Fortis Ping An Investments represents an important strategic development for the company, giving us greater access to the Asian markets, specifically China, and a significantly broader distribution platform for our products. The partnership will allow both parties to leverage each other’s expertise, putting us in a position to accelerate our plans for the asset management business. Fortis is delighted, too, to welcome to its Board Louis Cheung, the CEO of Ping An, who will be an enormous asset in further understanding this huge market..

(3) 1. Fortis 1.1. Results Net profit Fortis Net profit before divestments in the first quarter of 2008 reached EUR 808 million, compared with EUR 1,167 million in the first quarter last year. Both Banking and Insurance were lower year-on-year, due to additional impairments on the structured credit portfolio totalling EUR 380 million net of tax. Underlying commercial performance showed resilience despite difficult market circumstances. Cost measures kept expenses well under control. Net profit Banking First quarter net profit amounted to EUR 721 million, 20% lower than the same quarter last year, a resilient performance given the challenging market circumstances. The main impact came from an additional impairment on structured credit products of EUR 231 million after tax. Compared with the first quarter of last year, income grew by 17% mainly on the back of strong treasury and financial market results, which more than compensated for slightly higher expenses. However, the positive impact of higher income was partly offset by significantly higher effective taxes (EUR 183 million), driven mainly by taxable capital gains on government bonds and the specific tax treatment of trading results. Net profit Insurance Fortis Insurance posted a net profit of EUR 219 million, 38% down on the first quarter last year, while the negative effect from the credit market turmoil in Q1 2008 on net profit was EUR 149 million (pre-tax impact of EUR 209 million). This effect offset the positive impact of sound commercial growth and strict cost control.. Net profit General The net negative result for the first quarter of 2008 was EUR 132 million, EUR 44 million down on the first quarter of last year. This result was driven by higher financing charges related to the ABN AMRO transaction and the negative effect of fair-value changes on investments.. Results First Quarter 2008 | 13 May 2008 |. 3. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Gross premiums both at Life and Non-Life went up in the first quarter by respectively 5% and 3% year on year driven by strong commercial performance in all Benelux countries. The implementation of the Fortify strategy is continuing in both Europe and Asia. Life insurance operations were recently started up in India..

(4) 1.2 Update on investment portfolio and other exposures Structured credit portfolio Fortis’s total structured credit portfolio net of write-downs amounted to EUR 43.3 billion at the end of the first quarter of 2008. The EUR 4.9 billion decline compared to the end of 2007 can be fully explained by repayments, changes in exchange rates, some selective sales and additional write downs: -. US subprime CDO portfolio Credit spread portfolio Insurance ABS portfolio. EUR 2.3 billion EUR 38.5 billion EUR 2.5 billion. A further deterioration in credit market conditions in March 2008 led to various downgrades of investment securities within the structured credit portfolio. This led to additional impairments on the investment portfolios of both Banking and Insurance. Banking incurred impairments totalling EUR 366 million (after tax EUR 231 million). Two thirds of these impairments were taken on the super senior CDO portfolio with subprime exposure. Deterioration in the quality of the vintages before 2006 was the primary reason for the additional impairments. An additional impairment of EUR 32 million was taken on super senior mezzanine CDOs with subprime exposure, increasing coverage as a percentage of the notional amount from 57% to 63%. An additional impairment of EUR 212 million was booked with respect to super senior high grade CDOs with subprime exposure, leading to a coverage ratio of 48% compared to 43% at the end of 2007. In addition, EUR 79 million of impairments were taken on warehouse positions related to the CDO origination activity. The remaining EUR 43 million of impairments were booked primarily on HELOCs wrapped by downgraded monolines and to a lesser extent on subprime and Alt-A securities.. The strong deterioration in credit markets pushed down the valuation of instruments that were fundamentally sound from a credit point of view. During the first quarter of 2008 the unrealised loss of the structured credit portfolio recorded under ‘available for sale’ (AFS) increased by EUR 1.6 billion to EUR 2.5 billion. This unrealised loss does not have an impact on our P&L and core equity. Loans to customers Credit quality of various type of loans remained very strong during the first quarter of 2008, as evidenced by the low credit loss ratio of 12 basis points as a percentage of credit risk-weighted commitments excluding impairments on the structured credit portfolio. Monoline insurers Fortis’s direct exposure to monoline insurers has been reduced from EUR 0.5 billion to EUR 0.3 billion as a result of repayments. The remaining direct monoline exposure is to FSA. Equity markets Fortis’s total equity portfolio recorded in AFS amounted to EUR 10.8 billion at the end of the first quarter of 2008, down EUR 3.0 billion from year-end 2007. The decrease is the result of a decision to lower our equity exposure, the negative evolution of equity markets and the realisation of capital gains.. Results First Quarter 2008 | 13 May 2008 |. 4. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The total impact of the credit market turmoil on Insurance amounted to EUR 209 million (after tax EUR 149 million), of which the vast majority was due to changes in fair value through the P&L with the remainder due to impairments..

(5) Results First Quarter 2008 | 13 May 2008 |. 5. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Sharply lower equity markets in the first quarter had a negative impact on Fortis core equity of EUR 1.2 billion, EUR 0.2 billion of which was related to the realisation of capital gains on equities. The remaining negative impact of EUR 1.0 billion is the result of on average around 14% lower equity markets in the first quarter of 2008. This is fully in line with earlier guidance on the sensitivity of Fortis’s core equity to a 10% change in equity markets, amounting to EUR 600 to 700 million..

(6) 1.3 Solvency Introduction Fortis manages its capital base at group level based on the following targets : • • •. a capital target for Fortis Bank equal to a ratio of 7% extended core equity to risk-weighted commitments, including 1% hybrid capital. This implies a target of 6% core equity to risk-weighted commitments a capital target for Fortis Insurance equal to 225% of the regulatory minimum, which includes 50% of hybrid capital. This implies a core equity target of 175% of the regulatory minimum a Group leverage target (at General) equal to 15% of the target core equity of Banking plus the target core equity of Insurance, implying that 15% of Banking and Insurance’s combined target core equity could be financed by group debt. Given the moderate risk profile of the purchased businesses from ABN AMRO, Fortis group will maintain the current capital targets after the acquisition (expressed under Basel I framework for the Bank) in line with rating expectations. Solvency under Basel II regime Moving from Basel I to Basel II is a gradual process during which both banks and regulators need to gain confidence in the way capital requirements are calculated. This is certainly the case for banks which, like Fortis Bank, apply the most sophisticated approaches (Advanced Internal Ratings Based Approach for credit risk and Advanced Measurement Approach for operational risk). The CBFA (Belgium Banking, Finance and Insurance Commission), Fortis’s supervisor on a consolidated basis, has granted its approval for using the most advanced approaches for calculating the own funds requirements under Basel II. Furthermore, the terms and conditions set by the regulator include a high degree of conservatism, which is applied to the calculations published today. At the same time, one must take into account that there are differences between Basel I and Basel II in the treatment of certain exposures.. Moreover, the computation of available capital has been adjusted for Basel II, although most changes were already applied by Fortis in 2007. Since 1 January 2007, Fortis has deducted 50% of specific participations from Tier 1 capital and the remaining 50% from total capital, in line with the rules of the Belgian regulator. The main change in our available capital base under the Basel II regime is that the IRB (Internal Rating Based) provision excess (i.e. the difference between the loan loss provisions and the expected loss) is added to Tier 2 capital. If the difference is negative, 50% is subtracted from Tier 1 capital and the remaining 50% from Tier 2 capital. The table below presents the solvency of Fortis Bank and Fortis Group calculated under Basel II and Basel I at the end of the first quarter of 2008 as well as Basel I figures at 2007 year-end.. Results First Quarter 2008 | 13 May 2008 |. 6. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The calculation of risk-weighted commitments under Basel II at the end of the first quarter of 2008 resulted in a decrease to EUR 253.1 billion or 89% of risk-weighted commitments of EUR 284.0 billion under Basel I. Fortis benefits from the implementation of the most sophisticated capital requirement calculation approaches, leading to a much more granular risk weighting than under Basel I. This was partially offset by an increase of Basel II risk-weighted commitments due to the downgrade in the first quarter of 2008 of part of the ABS portfolio..

(7) The amounts presented are based on the consolidation of the businesses acquired from ABN AMRO under the equity method, whereby 50% of Fortis’s EUR 24.2 billion stake in RFS Holdings is deducted from core equity. The remaining 50% is deducted from total capital, which does not affect the measurement of core equity. Every time an ABN AMRO activity is transferred to Fortis, the goodwill and intangibles related to that activity will be deducted from core equity and the related risk-weighted commitments will be consolidated. On the other hand, the amount of the participating interest previously deducted will be reduced accordingly. The asset management activities were transferred at the beginning of the second quarter of 2008. The remaining activities will be transferred between the fourth quarter of 2008 and the last quarter of 2009. In the course of this period, the surplus of core equity will decrease, but Fortis will manage its capital in such a way that core equity ratio and leverage are close to target once the ABN AMRO activities have been fully consolidated.. Results First Quarter 2008 | 13 May 2008 |. 7. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Methodology used to consolidate ABN AMRO activities for key capital calculations.

(8) Group solvency Group solvency remains sound The group core equity stood EUR 5.5 billion above target at the end of the first quarter of 2008, compared with EUR 6.2 billion at the end 2007, whereby the target is computed on the basis of Basel I risk-weighted commitments. During the first quarter of 2008, Fortis’s core equity decreased marginally from EUR 26.1 billion to EUR 26.0 billion. Retained net profit of EUR 0.8 billion and the issue of EUR 0.5 billion of non-innovative tier 1 hybrid securities (NITSH) were offset by the EUR 1.2 billion negative impact of the equity market on Fortis’s AFS equity portfolio and EUR 0.1 billion due to other elements predominantly related to translation differences deducted from core equity. Of the EUR 1.2 billion impact of equity markets on core equity, EUR 0.2 billion was related to the realization of capital gains on equity. Rising bank risk-weighted commitments (predominantly related to market risks), computed under Basel I, drove up group core equity target to EUR 20.5 billion at the end of the first quarter of 2008, 3% above the EUR 19.9 billion target core equity at the end of 2007. Group leverage stood at 18.6% at the end of the first quarter of 2008, but is expected to be back on target by the end of the year.. In the course of the first quarter of 2008, bank core equity rose from EUR 23.3 billion to EUR 24.1 billion both under Basel I and Basel II. The increase was driven by retained net profit of EUR 0.7 billion in the first quarter and the issue of EUR 0.5 billion non-innovative tier 1 hybrid instruments (NITSH). Both elements more than compensated for the EUR 0.2 billion negative impact from unrealised losses on the AFS equity portfolio and other elements, predominantly related to translation differences deducted from core equity. Total capital climbed from EUR 27.2 billion to EUR 28.0 billion under Basel II (EUR 27.8 billion under Basel I). This increase was fuelled chiefly by the change in core equity described above and the impact of the equity market on Fortis Bank’s unrealised capital gains, which reduced Fortis’s capital by EUR 0.3 billion. The volume of Basel I risk-weighted commitments increased by 5% to EUR 284.0 billion. Credit risks grew by 3%, slightly more than underlying loan growth, while market risks rose by 27%. The increase in market risks of EUR 5.6 billion was due primarily to EUR 3.1 billion in repurchase agreements with Fortis Insurance, while the remaining part resulted from increased market volatility. Yearly growth of total risk-weighted commitments is expected to remain limited to a maximum of 10%. Basel II risk-weighted commitments stood at EUR 253.1 billion at the end of the first quarter of 2008, EUR 14.0 billion of which was related to operational risk.. Results First Quarter 2008 | 13 May 2008 |. 8. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Bank solvency Fortis Bank remained well capitalised at the end of the first quarter of 2008. Under Basel I, the core tier 1 ratio decreased slightly compared with the end of the year, from 8.6% to 8.5%, whereas the total capital ratio went down from 10.1% to 9.8%. Under the Basel II regime, Fortis Bank’s core tier 1 ratio was 9.5% and the total capital ratio stood at 11.0%. These ratios reflect a relief resulting from the application of an advanced approach in the calculation of capital requirements..

(9) Insurance solvency At the end of the first quarter of 2008, the insurance core solvency ratio and the total solvency ratio stood at 192% and 219% respectively. During the first quarter of 2008, the core equity of the insurance sector decreased from EUR 8.6 billion to EUR 7.8 billion. The EUR 0.2 billion of net retained profit of the quarter could not compensate for the negative EUR 1.0 billion impact of the equity market on unrealised capital gains in AFS equities. Of the EUR 1.0 billion impact of equity markets on core equity, EUR 0.2 billion is related to the realization of capital gains on equity.. Fortis’s solvency after full consolidation of ABN AMRO activities When assessing Fortis’s pro forma solvency position with full consolidation of the acquired ABN AMRO activities, the following core equity movements need to be taken into account: • Reversal of the 50% acquisition price deduction of EUR 12.1 billion • Deduction of goodwill and intangible assets, inclusion of the capital support as stipulated in the Consortium Shareholders Agreement and the anticipated impact of the EU remedies, leading to a total reduction of around EUR 19 billion. Furthermore, a fully consolidated Fortis core equity target includes the capital requirements for the riskweighted commitments of the acquired ABN AMRO activities. The risk-weighted commitments were slightly up to around EUR 79 billion at the end of the first quarter of 2008. The majority of events influencing the reported solvency will take place between the end of 2008 and the end of 2009. During this period, the following four levers will ensure continued compliance with our capital targets: • Retained earnings • Controlled growth of capital requirements • Disposal of non-strategic assets and creation of joint ventures • Non-dilutive capital raisings and capital relief transactions Results First Quarter 2008 | 13 May 2008 |. 9. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The required minimum margin remained flat, at EUR 4.1 billion. Business growth was offset by technical adjustments..

(10) With regard to disposals and joint ventures, Fortis has already announced several transactions that will have a positive impact on its core equity in the next quarters : • Fortis and VINCI have signed a memorandum of understanding with a view to combining their respective activities in the public car park industry. This transaction would involve combining VINCI Park, a subsidiary of VINCI Concessions, and Interparking, a subsidiary of Fortis Real Estate. Both groups would share the equity of the new entity, which would be majority owned by VINCI, with Fortis retaining a significant holding. This transaction is estimated to benefit the core equity of both Fortis Insurance and Fortis Group by around EUR 0.5 billion in the second half of 2008. • In the process of integrating the acquired ABN AMRO businesses, Fortis Investments Management took over the asset management activities of ABN AMRO on 1 April 2008. A 50% stake in the merged company will subsequently be sold to Ping An for EUR 2.15 billion, which equals the solvency impact. This transaction is expected to take place in the second or third quarter of 2008. In addition, Fortis is considering raising, in the short term, non-dilutive non-innovative Tier-1 capital in the European retail market subject to market conditions. After full consolidation of all activities acquired from ABN AMRO in 2009, the group core equity is expected to be in line with Fortis’s target.. Fortis workforce continued to grow in the first quarter of 2008, increasing by 514 FTEs (from 62,010 to 62,524). More then 2,000 FTEs were hired, while about 1,800 left the company. The rest of the growth came from minor acquisitions made at the end of 2007, for which the FTE figures were included as from 2008. At the end of the first quarter of 2008, 37 % of the workforce was based outside the Benelux countries.. Results First Quarter 2008 | 13 May 2008 |. 10. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. 1.4 FTE developments.

(11) • • • •. Net profit of EUR 721 million, reflecting a resilient performance in challenging market conditions Excellent treasury and financial markets results due to high volatility and widening spreads, driving total income up 17% Cost containment measures keep total underlying expenses virtually stable Continued financial markets turmoil leads to an additional impairment on the structured portfolio of EUR 366 million pre-tax, or EUR 231 million after tax. A number of changes to Fortis financial reporting have been introduced in 2008 to reflect the new organizational structure announced in November 2007. Merchant Banking is reported as a separate entity and Private Banking and Asset Management are reported together. Following the adoption of Basel II as from 2008, risk-weighted commitments under both Basel I and II are provided for the Fortis Bank business lines. In addition, key capital indicators are provided based on risk weighted commitments under both Basel I and II. First-quarter Banking net profit stood at EUR 721 million, down 20% on the same period last year. Higher income was more than offset by additional impairments and higher tax charges. Net profit went up EUR 1.6 billion on the previous quarter, the latter being impacted by major impairments on US subprime-related investments.. Results First Quarter 2008 | 13 May 2008 |. 11. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. 2. Banking.

(12) First-quarter total income amounted to EUR 3,178 million, up 17% on the same quarter last year. This sharp rise was essentially driven by high treasury and financial markets results and a resilient commercial performance despite challenging financial market conditions. Excluding ABN AMRO-related financing costs, net interest income grew 6% while commissions and fees remained flat, due to the negative impact of the equity markets downturn on assets under management. Total income was 13% higher than the previous quarter. This increase was due entirely to a strong treasury and financial market performance compared to a low result in the prior quarter. The latter was influenced by US subprime related losses. The strong results were only partly offset by lower net commissions and fees in a difficult market, while net interest income remained broadly flat. Commercial activity remained solid in the first quarter of 2008, resulting in 2% underlying growth in loans. Total deposits were up 5%. The first quarter also saw continued intake at Private Banking and Asset Management. The cost containment measures announced earlier this year started to deliver results. In the first quarter excluding ABN AMRO-related integration costs (EUR 45 million) and some one-offs, expense growth remained limited to 3% year-on-year. Compared with the fourth quarter of 2007, which was affected by seasonality, total expenses decreased by 9%, resulting in a cost/income ratio of 53%. The acquired activities of ABN AMRO contributed EUR 84 million to net profit in the first quarter of 2008, after purchase accounting. The net impact for Fortis Bank, including financing (EUR 108 million post-tax) and integration costs (EUR 33 million post- tax), came to EUR 57 million negative. In addition, EUR 28 million post-tax of financing costs were recorded in General. The total impact of ABN AMRO therefore, including financing and integration costs, and after purchase accounting, on the net profit of Fortis was EUR 85 million negative.. The increase at Retail Banking was driven by strong volume growth. Net interest income rose 5% on the same quarter of 2007 thanks to improving margins in the Benelux home markets and growing volumes at high margins in growth engines, such as Turkey. At Merchant Banking, stronger volumes and higher interest rates in specific business lines, such as Corporate Banking, were partially offset by increased funding costs. First-quarter net interest income on interest-margin products was 4% lower than last year’s fourth quarter. At Merchant Banking, net interest income reflected the growth in loan volume, but was depressed by a strong euro. The slight decrease at Retail Banking was due mainly to positive one-offs in the previous quarter. Net interest income went up 1% on the previous quarter, excluding an additional EUR 44 million in financing costs related to the ABN AMRO acquisition, the one-time release of provisions for interest reserves in the fourth quarter of 2007 and reclassification. Excluding the impact of ABN AMRO financing, the duration remained at 5.3 years. This is unchanged compared to the end of 2007 as mismatch opportunities remain limited due to the flat yield curve. Including ABN AMRO financing, the average duration in the first quarter of 2008 stood at 4 years.. Results First Quarter 2008 | 13 May 2008 |. 12. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Net interest income on interest-margin products amounted to EUR 1,250 million, a 5% decrease on the same quarter last year. This decline reflects the impact of the ABN AMRO financing costs for an amount of EUR 138 million pre-tax. Excluding this factor, underlying growth was 6%. Solid customer-related volume growth in loans and deposits contributed positively, and margins improved in some areas of Retail & Merchant Banking..

(13) Credit risk-weighted commitments calculated according to Basel I amounted to EUR 257 billion, up 3% on the year-end 2007 level. This increase was mainly fuelled by underlying loan volume growth at Merchant Banking. At EUR 27 billion, market risk-weighted commitments went up 27% due primarily to EUR 3.1 billion repurchase agreements with Fortis Insurance and higher market volatility. Total risk-weighted commitments amounted to EUR 284 billion, 5% above the previous quarter’s level. Yearly growth of risk-weighted commitments is expected to remain limited to a maximum of 10%. Funds under management decreased from EUR 208 billion to EUR 199 billion, down 4% on year-end 2007. Net inflow of EUR 1.8 billion in the first quarter failed to compensate for the negative impact of equity markets. At EUR 723 million, net commissions and fees remained virtually flat compared with the same quarter of last year, despite difficult financial market conditions. Higher net commissions and fees earned on securities brokerage, on custody and on insurance products compensated for lower fee income on assets under management, on corporate finance and other banking services. Net commissions and fees came down 13% from the fourth quarter of 2007, which included an amount of EUR 46 million related to the acquisition and financing of the ABN AMRO activities. Excluding this factor, net commissions and fees decreased by EUR 64 million or 8%. Sharply lower equity markets had a negative impact on Asset Management fees and securities brokerage fees. Capital gains on the investment portfolio amounted to EUR 182 million in the first quarter of 2008, 5% lower compared with the same period in 2007. The equity exposure was reduced in the first quarter of 2008, causing realised losses, though these were offset by capital gains on bonds. Capital gains decreased by 17% or EUR 38 million quarter-on-quarter, due to the positive impact of the sale of a stake in ICBC (Asia) in the fourth quarter of 2007.. Non-trading revenues (mainly Private Equity, Global Securities & Financing Group and Credit Hedging) ended the first quarter at EUR 411 million, up EUR 252 million, mainly driven by a EUR 210 million positive contribution of the credit portfolio hedge. - Private Equity contribution was nil compared with EUR 49 million in the first quarter of 2007, which benefited from exits and revaluations. Valuation remained flat over the first quarter despite the challenging market environment. - GSFG (Global Securities & Financing Group) recorded EUR 54 million in revenues, up 16% despite less favourable market conditions. This highly seasonal client-driven business entails very limited credit and market risks. - The Credit Portfolio Management unit recorded a positive revaluation of EUR 210 million in the first quarter, benefiting from widening credit spreads. A EUR 24 million negative revaluation was recorded in the first quarter of 2007. The Credit Portfolio Management team converted the entire hedging portfolio into single-name credit default swaps in the last quarter of 2007. They now cover a EUR 13 billion total notional amount, distributed between counterparties that are all highly rated European and US investment banks. This portfolio is managed actively with the aim of reducing volatility in net revenues. - An increase of EUR 35 million in income at Other Banking reflects strong ALM results, which benefited from movements in the yield curve and interest rate volatility on derivatives. Results First Quarter 2008 | 13 May 2008 |. 13. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. At EUR 826 million, treasury and financial markets results more than doubled their level in the first quarter of 2007. Adjusted for grossing up, which was a negative EUR 116 million due to non-deductible losses on equities, income from treasury and financial markets activities amounted to EUR 709 million. This was a sharp increase (65%) on the grossed-up EUR 430 million recorded in the first quarter of 2007. These results can be broken down into trading and non-trading activities..

(14) Trading revenues (adjusted for grossing up) amounted to EUR 298 million, up 10% thanks to the excellent performance of equities, money markets and fixed income activities in the first quarter of 2008. This performance was well above the average quarterly floor. Although Global Markets had to bear higher funding costs, it benefited from highly volatile money markets and sharply lower equity markets. The Global Forex and Rates Group also benefited from spread adjustments and a flight into quality in credits and fixed income markets, combined with large customer flows on interest rate derivatives. This performance was brought down somewhat by the negative contribution of the Capital Markets and Energy Trading Groups, which remained weak due to difficult market conditions and sluggish commercial activity. The global trading performance should be seen in the light of an average daily Value at Risk (VAR) which remained moderate throughout the first quarter 2008. It stood at EUR 38 million on average, up slightly on the EUR 30 million average for full year 2007, due mainly to the increased market volatility. Grossed-up treasury and financial markets results of EUR 709 million were EUR 626 million higher than the very low fourth quarter, which was impacted by the deterioration of the US subprime market and traditionally lower seasonal activity. The change in provisions for impairments went up to EUR 448 million from EUR 26 million in the first quarter of 2007. In the first quarter 2008, an additional impairment of EUR 366 million was taken on the structured credit portfolio. Two third was related to additional impairments on the Super Senior CDO portfolio with subprime exposure. The remainder was primarily related to impairments on warehouse positions and to a lesser extent on HELOC's wrapped by downgraded monoline insurers and RMBS. Total coverage ratio currently stands at 3% of the subprime RMBS portfolio, 48% of the High Grade super senior CDO tranches and 63% of the Mezzanine super senior CDO tranches. All tranches ranked lower than super senior were already fully impaired last year. As far as the loan book is concerned, specific provisions remained very limited.. Total expenses went up 2% to EUR 1,690 million in the first quarter of 2008 compared with the same quarter last year. ABN AMRO integration costs (EUR 45 million) were offset by one-off positive elements in the first quarter of 2008. In addition, the first quarter of 2007 suffered from an exceptional provision at Fortis Hypotheek Bank. As a result, underlying expenses grew by 3%. Strong cost containment limited organic expense growth to 2%, while continued investments in growth engines drove up costs by 1%. Expenses were 9% lower than the previous quarter, which was impacted by one-offs such as a restructuring provision at Fortis Banque France (EUR 36 million) and investments for growth initiatives. In addition, the first quarter of 2008 benefited significantly from strict cost management. Staff expenses amounted to EUR 1,027 million, rising by EUR 85 million or 9% compared to the same quarter last year. Excluding costs related to the ABN AMRO integration (EUR 33 million), underlying staff expenses increased by 6% or EUR 52 million. 2% of the rise in staff expenses was due to a rise in the number of FTEs in support of growth investments, while wage drift accounted for 4%. The positive impact of some one-offs helped to reduce staff expenses. The total number of Banking FTEs came to 47,219 at the end of first quarter 2008, up 4% (or 1,860 FTEs) on the same period last year. Hiring continued within the businesses and countries defined as growth engines, specifically to support the expansion of Consumer Finance, Turkey, Global Markets and Specialised Financial Services.. Results First Quarter 2008 | 13 May 2008 |. 14. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The credit loss ratio (calculated as a percentage of average credit risk-weighted commitments) was 68 basis points. Excluding the impairments on the structured credit portfolio, the overall credit loss ratio stood at 12 basis points reflecting strong overall credit quality. This is well below the cross-cycle credit loss ratio of around 25 basis points..

(15) Staff expenses dropped 5% from the previous quarter. Half of the decline was related to a restructuring provision at Fortis Banque France (EUR 28 million) in the fourth quarter of 2007 while the remainder came from higher bonus provisions booked in the previous quarter. The average number of FTEs inched up 1%. Other expenses went down 6% to EUR 662 million in the first quarter of 2008 compared with the same quarter last year. Excluding EUR 12 million in costs related to the ABN AMRO integration, underlying other expenses were 8% lower than in the same period in 2007 thanks to tight cost control. Scope changes and one-offs such as an exceptional provision at Fortis Hypotheek Bank in 2007 accounted for 6% of the reduction, while more selective expenditure on strategic investments represented another 1%. Underlying growth was almost flat, aided by lower communication and branding costs in the first quarter of the year. Other expenses were 16% lower than the previous quarter. This decline was due to a number of one-offs such as the restructuring provision for Fortis Banque France (EUR 8 million), investments related to growth initiatives in the fourth quarter of 2007 and the positive impact of cost containment measures on the first quarter of 2008.. Results First Quarter 2008 | 13 May 2008 |. 15. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The effective tax rate was higher in the first quarter of 2008 than it was in the comparable period last year. The specific tax treatment of trading results led to higher pre-tax results and higher taxes in the first quarter of 2008. At the same time, tax-exempt capital gains on equities helped to lower the tax rate in 2007, whereas in 2008 capital gains were realised on government bonds subject to taxation..

(16) 2.1. Performance per Banking Business (For full details see Financial and Operational Review) 2.1.1. Retail Banking. • • • •. Net profit for Retail Banking up 4% to EUR 270 million; profit before tax up 26% Top-line growth (up 4%) driven mainly by higher net interest income resulting from improved margins in mature markets and higher volumes in growth engines First results of tight cost control visible – expenses down 5% year-on-year First successful joint commercial initiatives launched by Fortis and ABN AMRO. Net profit at Retail Banking reached EUR 270 million. Total income reached EUR 1,133 million, 4% up, while total expenses are down 5% on the same quarter last year, thanks to tight cost control measures.. The decision to move the retail activities of Fortis Banque France to Merchant Banking led to a change in reporting as of the second quarter of 2007. All figures below were adjusted for the new set-up for reasons of comparability. Total income went up by 7% year-on-year to EUR 1,133 million, mainly on an increase of 8% in net interest income and 19% in allocated ALM results. Net interest income rose to EUR 696 million, up EUR 51 million year-on-year or 8%, supported by positive developments in different geographies. Net commissions and fees remained stable at EUR 267 million compared with the same period last year. Customer deposits rose by 2% year-on-year to EUR 92 billion. High short-term interest rates in 2007 fuelled customers’ appetite for time deposits, resulting in an increase of EUR 3.8 billion year-on-year, part of which came from a shift of savings. Loans to customers rose to EUR 86 billion, up 10% year-on-year, driven mainly by a EUR 5 billion increase in residential mortgages, EUR 1.9 billion of which in Belgium and EUR 2.6 billion in the Netherlands. Total expenses amounted to EUR 718 million, down 1% on the previous year, as a steep drop in costs in Belgium and the Netherlands more than compensated for the cost growth related to continued investments in Turkey and Poland, and on the inclusion of Dominet. Results First Quarter 2008 | 13 May 2008 |. 16. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Retail Banking net profit for the first quarter of 2008 increased by 4% to EUR 270 million compared with EUR 260 million for the same period last year. Total income advanced 4% to EUR 1,133 million, driven by higher net interest income and higher allocated ALM results. Total expenses were 5% lower at EUR 718 million, as higher costs for investments were more than offset by cost reductions in Belgium and the Netherlands in marketing, consultancy and IT. The effective tax rate was 30% in the first quarter of 2008, up from 15% in the first quarter of 2007, as the ALM results in 2007 were fuelled chiefly by tax-exempt realised capital gains..

(17) 2.1.2. Merchant Banking. • • • •. All businesses continue to show resilient commercial activity Total income up 43% on the back of record treasury and financial markets results, benefiting from market volatility and widening interest rate spreads EUR 404 million change in provisions for impairments, of which EUR 363 million on the structured credits portfolio Underlying increase in total expenses contained by tight cost control and monitoring. The decision to transfer the retail activities of Fortis Banque France to Merchant Banking in the second quarter 2007 led to a scope change that has distorted the year-on-year comparison. These activities contributed EUR 31 million to income and EUR 28 million to total expenses in the first quarter of 2008.. Quarter on quarter, net profit returned from a loss to a gain. Total income rose 51%, supported mainly by high treasury and financial markets results, while expenses decreased by 14%. The fourth quarter of 2007 was also largely impacted by impairments on US subprime-related investments. Total income was up 43% to EUR 1,818 million in the first quarter of 2008, buoyed by the strong performance of treasury and financial markets as well as higher net interest income and net commissions and fees. Net interest income went up 12% (or 9% excluding Retail Bank France) despite the appreciation of the euro and some exceptional items recorded in the first quarter of 2007. Net commissions and fees advanced 7% on a comparable basis with particularly strong commissions and fees at Clearing, Funds and Custody on high volumes and at Global Trade Services. Total expenses increased by 9% to EUR 729 million. Adjusted for Retail Bank France, total expenses grew by a moderate 5% compared with the first quarter of 2007, of which 1% was linked to the integration of ABN AMRO. Staff expenses were up 12% (9% on the same basis) due to the strong FTE increase recorded mainly in the first half of 2007. Other direct expenses increased only by 6% thanks to tight cost control and monitoring. The effective tax rate at Merchant Banking was 34% in the first quarter of 2008, up from a low 11% in the first quarter of 2007. This was mainly the result of higher non-deductible losses on equities.. Results First Quarter 2008 | 13 May 2008 |. 17. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Net profit declined by 17% to EUR 453 million in the first quarter of 2008, as impairments on the structured credit portfolio offset the strong performance underlying all Merchant Banking activities. Excluding these impairments, net profit was up 25% to EUR 682 million: the sharp increase in total income (43%) and controlled growth of total expenses (9%) were partly offset by a higher effective tax rate as the result of higher non-deductible losses on equities..

(18) 2.1.3. Private Banking & Asset Management. • • • •. Combined profit of Private Banking and Asset Management down to EUR 47 million from EUR 101 million. Net profit at Private Banking was EUR 40 million, 48% lower year-on-year. Underlying net profit reconfirms the strong business fundamentals Net profit of EUR 12 million (before ALM costs and corporate allocations) at Fortis Investments, including a EUR 19 million restructuring provision related to the integration of the acquired ABN AMRO activities. Net combined inflow of new money in the first quarter of EUR 2.6 billion. Private Banking’s first-quarter net profit was EUR 40 million, 48% lower year-on-year. The first quarter of 2007 was impacted by a capital gain, a new methodology for allocating indirect expenses and a release of impairments. Excluding these factors, net profit remained stable compared with the first quarter of 2007, reconfirming the strong business fundamentals. First-quarter net profit was 24% higher than the fourth quarter of 2007. Strict cost control measures and new product launches helped compensate for the impact of the challenging market conditions. Funds under management came down from EUR 82.3 billion at year-end 2007 to EUR 78.7 billion at the end of the first quarter, due to lower equity markets. Net inflow of EUR 1.1 billion in the first quarter of 2008 reconfirms the strong commercial momentum achieved in 2007. Fortis Investments recorded a net profit of EUR 7 million after ALM costs and corporate allocations for the first quarter of 2008. Before these corporate charges, net profit stood at EUR 12 million. This figure was impacted by the EUR 19 million (EUR 12 million after tax) restructuring provision related to the integration of ABN AMRO activities acquired in 2008. Excluding this factor, net profit was down 6% on the first quarter of 2007. The financial results were also negatively affected by difficult market conditions. Assets under management came to EUR 126.9 billion at the end of March 2008, down 5% from EUR 132.9 billion at the end of December 2007, but 2% higher than at the end of March 2007 (EUR 124.7 billion). The decline so far in 2008 has been due to poor market conditions (down EUR 7.6 billion), which were partially offset by EUR 1.5 billion of net inflow into money market products.. Results First Quarter 2008 | 13 May 2008 |. 18. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Net profit at Private Banking & Asset Management was EUR 47 million in the first quarter of 2008. The net profit was impacted by EUR 19 million of restructuring costs taken at Fortis Investments, related to the integration process with ABN AMRO Asset Management, and several one-offs at Private Banking. Despite challenging market conditions, total net inflow in the first quarter amounted to EUR 2.6 billion..

(19) 2.1.4. Acquired ABN AMRO activities. • • •. Underlying net profit of main activities of EUR 319 million Underlying net profit of Dutch Retail and Commercial/Corporate activities, and Private Clients activities higher quarter-on-quarter Underlying net profit Asset Management activities declined on lower assets under management and seed capital losses. Reported net profit of the main acquired ABN AMRO activities was EUR 279 million, down 23 % year-on-year due to a significantly lower profit contribution of the Asset Management activities as a result of integration costs, losses on the seed capital portfolio and lower assets under management. Excluding the items mentioned in the table above, underlying net profit of the main activities acquired was EUR 319 million compared with EUR 361 million and EUR 329 million in the first and the fourth quarter of 2007, respectively. Adjusted profit of the Dutch Retail and Commercial/Corporate activities declined by 2% year-on-year, to EUR 228 million, as an increase in revenues was more than offset by higher expenses. Total income inched up 2%, as higher treasury and financial markets results were partly offset by lower net interest income revenues. Net interest income came down on higher funding costs and lower savings product revenues due to margin pressure. Total deposits went up 2% year-on-year. Total adjusted expenses grew by 9% as a result of the new Collective Labour Agreement and a release of social charges in the first quarter of 2007. Adjusted net profit increased 2% quarter-on-quarter due to a lower expense level. The Private Clients activities delivered a net profit of EUR 72 million, down 7% on last year. The decline was caused predominantly by lower commissions and fees as the turmoil in the capital markets reduced funds under management. Net profit rose 34% compared with the previous quarter, as a slight drop in income was more than offset by good cost control and lower staffing levels, especially in support functions. Funds under management decreased from EUR 138.0 billion at year-end 2007 to EUR 127.8 billion at the end of the first quarter of 2008. Results First Quarter 2008 | 13 May 2008 |. 19. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The results from the acquired ABN AMRO businesses include incidental items. To aid analysis of the reported figures, we have made adjustments to the reported figures for a number of items in 2007 and 2008. The adjusted figures exclude the following items:.

(20) Net inflow of EUR 0.3 billion was more than offset by adverse financial markets and currency effects (EUR 10.5 billion). However, the Netherlands, Belgium and Asia saw an increase in net new clients, both year-on-year as well as quarter-on-quarter. At EUR 19 million, the adjusted net profit of the Asset Management activities was significantly lower than the first-quarter 2007 net profit of EUR 50 million and fourth-quarter 2007 adjusted net profit of EUR 52 million. This decline was caused by lower management fees, lower performance fees, the sale of the Brazilian asset management activities to Santander and seed capital losses. Assets under management fell to EUR 154.8 billion, down EUR 39.3 billion from the fourth quarter of 2007 due to the sale of the Brazilian asset management activities to Santander (EUR 14.9 billion), financial markets developments and currency effects (EUR 16.1 billion) and net outflow (EUR 8.3 billion) caused by the turmoil in financial markets.. Results First Quarter 2008 | 13 May 2008 |. 20. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. The net profit of Shared Assets fell steeply year-on-year and quarter-on-quarter, due primarily to negative fair market valuations of the Private Equity portfolio, a write-down of the stake in Unicredit (the fourth quarter result included a significant gain on this stake) and higher funding costs..

(21) • • • •. Life gross inflow up 5% to EUR 4 billion despite challenging market circumstances and differences in timing of marketing campaigns; annual premium equivalent up 18% to EUR 403 million Non-Life gross written premiums up 3% to EUR 1.9 billion, driven by strong growth in Belgium and the Netherlands Net profit down to EUR 219 million, substantially impacted by the turmoil in global capital markets which offset the impact of sound commercial growth and strict cost control Continued implementation of the Fortify strategy in both Europe and Asia; start-up of commercial operations in India. Fortis Insurance continued to build on strong commercial momentum in the first three months of 2008, driven by the further implementation of the Fortify strategy and focus on cost control. The impact of the turmoil in global capital markets more than offset the good results produced by the solid business performance at both Life and Non-Life and the higher capital gains triggered by portfolio protection techniques (CPPI) that led to lower exposure to equities. Net profit decreased in the first quarter compared to the first quarter 2007 to EUR 219 million from EUR 352 million, while the negative effect from the credit market in Q1 2008 on net profit was EUR 149 million (pre-tax impact of EUR 209 million). Net profit at Life fell by 40% to EUR 162 million, despite higher volumes. The Non-Life result was down by 28% to EUR 58 million, while underlying profitability remained strong, with a combined ratio of 96.6%.. Results First Quarter 2008 | 13 May 2008 |. 21. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. 3. Insurance.

(22) Fortis Insurance’s marketing efforts continued to drive total gross inflow, which reached EUR 5.9 billion in the first three months of 2008, up 4% on the first quarter 2007, despite challenging market circumstances in 2008 and strong growth in the first quarter 2007. Life grew by 5% to EUR 4.0 billion, due to robust growth at the International Division (34%) and in the Netherlands (19%), which more than offset the differences in the timing of marketing bancassurance campaigns in Belgium. Annualised premium equivalent (APE) advanced 18% to EUR 403 million in the first quarter 2008, proving the strong business momentum. Non-Life gross written premiums, driven by product innovation across all countries, increased by 3% to EUR 1.9 billion, while maintaining healthy margins. The focus on tight cost control in all countries, supported by various efficiency programmes, is demonstrated by the low year-on-year cost growth of 2%. This relates mostly to the inclusion of FICA, the Hong Kong based insurance activity, which was consolidated as from the second quarter 2007. Net profit before results on divestments for the first quarter 2008 was substantially lower than the fourth quarter 2007, which benefited strongly from event-driven capital gains. First quarter total gross inflow was up 33% on the fourth quarter 2007, mainly as a result of highly successful pension-related sales at Life in the Netherlands, a strong performance by Accident & Health (the Netherlands) and traditionally higher SMErelated inflow at Non-Life in Belgium. Fortify strategy Fortis Insurance’s Fortify strategy aims to create revenue synergies by applying the principle 'optimise locally by sharing globally', i.e., share proven skills across borders and across businesses. The goal is to continuously focus attention on the client by adapting the product portfolio and aligning the multi-distribution strategy to changing customer needs. Other goals are to improve operational excellence in all countries and to expand internationally. Implementation of the Fortify strategy is well on track.. Fortis Insurance Belgium continues to create new packaged products. These successful product-market innovations have contributed to further gains in market share. Other European initiatives have been taken by Fortis Luxembourg, which has started selling insurance under the ‘freedom of services’ principle in Germany, Spain and Switzerland, and by Fortis UK, which has launched an aggregator (insurance comparison website) with an affinity approach to its customers. The focus on operational excellence (lean programme) is ongoing. This programme aims to improve internal processes in order to service customers better and at lower cost. Several programmes have been started and/or implemented at Fortis Insurance, thus improving cost efficiency. International expansion has continued. In India, IDBI Fortis, the Life insurance joint venture with Industrial and Development Bank of India (IDBI) and Federal Bank, commenced operations in March 2008. In Malaysia, Mayban Fortis announced that it would pursue the proposed acquisition of a 60% stake in PT Anugrah Life Insurance of Indonesia in order to be able to tap the Indonesian bancassurance market. Dutch funeral insurer Ardanta has started selling policies in Belgium via direct mail and the website of Fortis Bank Belgium, bringing its specific expertise to the Belgium market.. Results First Quarter 2008 | 13 May 2008 |. 22. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Examples of extended multi-channel distribution are the VIP concept in Belgium that aims to exploit the cross-sell opportunities between the bank and the broker channel, the start-up of ‘Ditzo’, the Dutch direct distribution channel, which increased its product portfolio in the first quarter 2008, and the new P&C broker channel targeting the SME market, launched by Millenniumbcp in Portugal. Fortis Turkey has started to diversify its distribution by entering the agency channel..

(23) Life The first quarter 2008 was affected by developments in global capital markets, which put pressure on the sales of unit-linked and other products. Fortis Insurance, thanks to its diverse product portfolio, was able to grow gross inflow to EUR 4,041 million, up 5% on the strong first quarter 2007. Life gross inflow in Belgium lagged with inflow 17% below the strong performance of the first quarter last year. Inflow in the Netherlands increased by 19% compared with 2007, driven by pension-related activities. Growth of 34% at International was mainly thanks to Portugal, which benefited from the upgraded product offering. Life technical result was a negative EUR 12 million, largely due to the turmoil in global credit markets, which depressed technical result by EUR 155 million, while also negatively impacted by equity markets. For the same reason, net profit decreased to EUR 162 million from EUR 271 million in the first three months of 2007. The pre-tax technical and non-technical impact of the global credit markets totalled EUR 191 million negative. Inflow in the first quarter 2008 increased 24% compared with the fourth quarter of 2007, due to higher sales both in Belgium and particularly the Netherlands, driven by the closing of some pension-related contracts. First quarter net profit ended well below the figure for the fourth quarter 2007, as lower capital gains offset the better technical result.. Technical result improved substantially, rising by 50% to EUR 107 million, sustained by an excellent combined ratio of 96.6%. It was up from EUR 71 million in the first quarter 2007, which was impacted by Windstorm Kyrill (depressing the technical result in 2007 by EUR 86 million). Without Windstorm Kyrill, the first quarter of 2007 showed a strong performance with a combined ratio at 95.7%. The negative impact of the global credit markets was EUR 5 million in the first quarter of 2008. Net profit, depressed by lower capital gains and higher taxes, ended up at EUR 58 million, down by 28% on a year-on-year basis. On a pre-tax basis, the technical and non-technical impact of global credit markets was EUR 18 million negative. Premium income was substantially higher in the first quarter 2008 than in the fourth quarter 2007 (up 59%) due to seasonal effects, especially in the Dutch Accident & Health market and at the Belgian SME business line. First quarter net profit was down from EUR 286 million in fourth quarter 2007, which benefited from a higher level of event-driven capital gains.. Results First Quarter 2008 | 13 May 2008 |. 23. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Non-Life Gross written premiums advanced 3% to EUR 1.9 billion, while the focus on profitability was maintained in all countries. Belgium posted a very sound 7% increase, mainly in the SME market, supported by a comprehensive basic product offering combined with continuous product innovation. In the Netherlands, primarily Accident & Health contributed to the 9% growth and further strengthened its leading market position by entering the newly privatised long-term disability market. International decreased 7%, mainly due to the focus on profitable growth in the UK, but was also affected by the depreciation of the pound sterling against the euro..

(24) 3.1. Performance per Insurance business (for full details see Financial and Operational Review) 3.1.1. Insurance Belgium. • • • •. Life gross inflow EUR 1,531 million, down 17% on last year, due to timing differences in ‘savings campaigns’ and continued low appetite for unit-linked products Broad product range and innovative product offering supported the increase in Non-Life gross written premiums, up 7% to EUR 430 million Net profit at EUR 119 million, down 13% on last year, mainly impacted by continued turmoil in global capital markets Rollout of new sales support structure at Retail Bank Belgium Market share grew further: Individual Life up to 29%, Non-Life up to 14%, due to successful and innovative product offering. First quarter 2008 net profit at Fortis Insurance Belgium reached EUR 119 million, compared with EUR 136 million last year. It suffered as a result of the ongoing turmoil in the global credit and capital markets, while 2007 was depressed by Windstorm Kyrill (EUR 30 million post-tax). The post-tax credit market effect on net profit was EUR 51 million (pre-tax effect of EUR 77 million) and experienced in Life only. Positive factors were high tax-exempt capital gains triggered by portfolio protection techniques, volume effects at Life insurance, and continued sound underwriting margins. These positive factors were unable to fully compensate for the impact of the turbulence in the financial markets. Nevertheless, net profit for the first quarter 2008 is similar to that for the last quarter of 2007, which benefited from event-driven capital gains. Total gross inflow stood at EUR 1,961 million in the first three months, 13% lower than last year. Life inflow went down by 17%. In 2007, unlike in 2008, marketing campaigns were concentrated in the first half of the year, generating record inflow at the start of the year. Furthermore, first quarter 2008 inflow was negatively impacted by the ongoing turbulence in the stock markets, which reduced the appetite for unit-linked products. Gross written premiums at Non-Life climbed by 7%, thanks to the proven business model, i.e. a strong basic product offering, combined with excellent service and effective broker incentives. Tight cost control and the ongoing quest for efficiency gains kept operating costs flat, only 1% higher than last year. As part of the Fortify ’Operational Excellence’ lever, Fortis Insurance Belgium will implement lean management in all its back-offices by 2011.. Results First Quarter 2008 | 13 May 2008 |. 24. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. •.

(25) 3.1.2. Insurance Netherlands. • • • •. Life gross inflow increases by 19% to EUR 1,408 million, driven mainly by new pension-related contracts Non-Life gross written premiums up 9% to EUR 864 million, driven especially by Accident & Health Net profit decreases to EUR 68 million, mainly because of the turmoil in global capital markets Solid fundamentals of underlying business, reflected both in premium growth and strict cost control, despite challenging market circumstances. Net profit at Fortis Insurance Netherlands dropped from EUR 166 million in 2007 to EUR 68 million in 2008. The dip at both Life and Non-Life was caused mainly by the turmoil in global capital markets, of which the credit markets influenced net profit with EUR 94 million negatively (pre-tax EUR 126 million). Excluding these impacts, the Life technical result was stable and net profit was up due to higher capital gains. Non-Life delivered a stable performance, illustrated by improvements in the cost and claims ratios, while market conditions remained challenging. Non-Life net profit decreased due to lower capital gains.. Operating costs remained flat at EUR 135 million (up 1%) as a result of cost savings, while investment was made in processes, IT infrastructure and multi-channel distribution. A further rollout of the operational excellence programme (lean programme) also contributed to cost control. Selective hiring as part of tight cost management resulted in a marginal increase in the number of FTEs compared with the end of 2007.. Results First Quarter 2008 | 13 May 2008 |. 25. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Gross inflow increased by 15% to EUR 2,272 million based on strong commercial activities and supported by high service levels that were acknowledged by several independent market surveys last year. Individual and Group Life grew in total by 19% to EUR 1,408 million. Gross written premiums were up by 9% to EUR 864 million at Non-Life, growth at Accident & Health being the main contributor..

(26) 3.1.3. Insurance International. • • • • •. Life gross inflow from fully consolidated companies up 34% to EUR 1,101 million Non-Life gross written premiums down 7% to EUR 562 million, mainly due to the depreciation of the pound sterling against the euro Net profit down to EUR 33 million, mainly resulting from sale of CaiFor (impact EUR 13 million) Launch of new P&C broker channel in Portugal and agency network in Turkey extends multichannel strategy Expansion in Asia: start-up of commercial operations in India in March and merger of Muang Thai insurance Co Ltd and Phatra Insurance in Thailand. The net profit of Fortis Insurance International for the first quarter 2008 at EUR 33 million was lower than for the first quarter 2007. This was mainly due to the disappearance of profits related to the Spanish activities (CaiFor joint venture) that were sold at the end of 2007, which affected both Life and Non-Life results. The impact of the credit market turmoil on net profit was EUR 4 million negative (EUR 6 million on a pre-tax basis).. Operating costs increased by 4% to EUR 104 million. On a comparable basis (excluding FICA in the first quarter 2008) operating costs decreased by 3% owing to tight cost management.. Results First Quarter 2008 | 13 May 2008 |. 26. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Gross inflow at consolidated companies went up 17% to EUR 1,663 million from EUR 1,427 million, driven by new product developments, especially in Portugal, and the rollout of multi-channel distribution in several countries in Europe and Asia. The inclusion of FICA (consolidated as from the second quarter of 2007) supported the growth. Gross inflow at non-consolidated joint ventures (on a 100% basis) increased by 30% to EUR 887 million, driven by growth in China and Thailand..

(27) Please see the Financial and Operational Review, the Analyst Presentation and the Consolidated Quarterly Financial Report for a detailed analysis of the first quarter 2008 results. These documents are available on our website: www.fortis.com. Analyst and Investor Call 13 May, 10.30 CET (09.30 UK time) Participants should mention 5341099 when dialling into the conference Lines will be active 10 minutes before the event starts, so please dial in 5 to 10 minutes in advance. Webcast: www.fortis.com Listen-only: +44 207 138 0814 (United Kingdom) +32 2 400 3463 (Belgium) +1 718 354 1157 (US) Replay: available until 04 June (Password: 5341099#) +44 207 806 1970 (UK) +32 2 400 3465 (Belgium) +1 718 354 1112 (US). Fortis is an international financial services provider engaged in banking and insurance. We offer our personal, business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalisation of EUR 38.6 billion (30/04/2008), Fortis ranks among the 15 largest financial institutions in Europe. Our sound solvency position, our presence in over 50 countries and our dedicated, professional workforce of 60,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available at www.fortis.com.. This press release is not an offer for sale of securities in the United States. The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. Fortis does not intend to make any public offering of the securities in the United States. Press Contacts: Brussels: Investor Relations: Brussels:. +32 (0)2 565 35 84. Utrecht:. +31 (0)30 226 32 19. +32 (0)2 565 53 78. Utrecht:. +31 (0)30 226 65 66. Results First Quarter 2008 | 13 May 2008 |. 27. WorldReginfo - ce69a3f8-919e-4a76-ba09-59b19e22d85c. Press Conference Call 13 May, 08.30 CET (07.30 UK time) Participants should mention 8438283 when dialling into the conference Webcast: www.fortis.com Listen-only: + 44 207 138 0816 (United Kingdom) + 32 2 400 68 64 (Belgium) +31 20 713 2997 (Netherlands).

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