Press release Brussels/Utrecht, 9 August 2007

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(1)Press release Brussels/Utrecht, 9 August 2007. First Half Results 2007 Under embargo: 9 August 2007, 7:30 CET. Fortis first half profit at EUR 2.8 billion, driven by robust revenue growth across Banking and Insurance Stellar second quarter: net profit at EUR 1.6 billion, up 38% compared with first quarter. •. Fortis’s half-year 2007 net profit of EUR 2,782 million exceeds the exceptional profit level of the first half year 2006 thanks to excellent second quarter: • Banking: - Excellent net profit in the second quarter drives first half-year result to EUR 2,062 million - Robust commercial momentum demonstrated by steady increase in net interest income and commissions and fees - Fund under Management increased by 10% in the first half-year to EUR 209 billion, EUR 10.3 billion of net inflows - Underlying loan growth of 9%.. •. Second quarter net profit of EUR 1,616 million, up 38% versus the EUR 1,167 million net profit for the first quarter of 2007 and up 16% versus the EUR 1,390 million net profit for the second quarter of 2006 - Banking net profit of EUR 1,159 million in second quarter benefits from commercial strength and excellent treasury and financial markets results. - Insurance net profit in second quarter further improves to EUR 413 million due to better technical results in Life and Non-Life and higher investment income on the back of higher volumes.. •. Interim dividend per share up 21% to EUR 0.70 in cash, which amounts to 50% of the previous full-year dividend, in accordance with Fortis’s dividend policy.. Fortis First Half Results 2007 | 9 August 2007 |. 1. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. • Insurance: - First half net profit up 6% to EUR 765 million, more than compensating for the impact of Windstorm Kyrill in the first quarter and UK flooding in the second quarter of 2007 - Gross inflow Life soars to EUR 7.0 billion, up 33%, benefiting from excellent sales performance - Gross written premiums in Non-Life advance to EUR 3.1 billion, up 10%..

(2) Fortis CEO Jean-Paul Votron comments: “These record results demonstrate once again the strength of the Fortis franchise and the undisputed value of our balanced portfolio. In Banking we continued to enjoy the same strong commercial momentum witnessed in previous quarters. Our customer-centric approach has delivered increased business, resulting in solid underlying loan growth of 9% across all client segments. This was particularly true in activities earmarked as growth engines, such as Commercial Banking and the Energy, Commodities & Transportation business and our successful operations in Turkey, demonstrating clearly that we have taken the right strategic direction and that our investments are paying off. Similarly, two of our other growth engines, the asset gathering activities at Fortis Investments and Private Banking, have continued to grow at a rapid pace: their combined net inflow year to date already amounts to more than EUR 10 billion, driving total Funds under Management up 10% to EUR 209 billion. This combined growth of interest-earning assets and off-balance funds is the driver behind the 3% increase in banking revenues compared with what was already a historically high first half year in 2006. Moreover, this revenue growth, which was driven entirely by net interest income and net fees and commissions, is a testament to the high quality and sustainability of our results. Our insurance business also delivered excellent top-line growth: total gross inflow rose by 25% to more than EUR 10 billion, driven by all three divisions (Belgium, Netherlands and International). Our focus on profitable growth is reflected in the record results in this second quarter posted by both our Life and Non-Life activities. Within Insurance we continued to pursue our chosen strategy of building further on our existing businesses and expanding in selected markets such as the acquisition of PCI in Hong Kong.. These record results allow us to pursue our growth strategy by investing in future value creation. The cost evolution in the first half of this year is fully in line with our planned investment programmes in the various growth engines. In Retail Banking we continued to expand our distribution network in Germany (48 new credit shops), Poland and Turkey (17 new branches). Furthermore within Insurance International we continued to develop our businesses in recently entered new markets such as Germany and Ukraine. Our confidence in our ability to deliver on our long-term targets is strengthened by these excellent results. Revenue momentum remains solid and underlying cost growth over the next quarters should remain in line with the 2% increase experienced in the second quarter in our banking operations. Furthermore, and barring unforeseen circumstances, we expect a full-year credit loss ratio in the range of 10 to 15 basis points. Our confidence is also reflected in our interim dividend per share of EUR 0.70 in cash, which is up 21% on the interim dividend paid out last year. Lastly, I would like to thank our shareholders for their confidence and support at the Extraordinary General Meetings of Shareholders on August 6. With the consortium’s offer on ABN AMRO formally launched and the necessary mandates granted by you to the Fortis Board, we are well on track to achieving our plans within the scheduled time line. We remain steadfast in our belief that our offer is superior for all stakeholders. As the CEO of Fortis, I reemphasise my commitment to making this transaction a success, both from a strategic and from a financial point of view. In the meantime, however, Fortis will not be distracted from its long-term goals of constantly anticipating and surpassing the needs of its growing customer base and in creating sustainable longterm value for all its stakeholders.”. Fortis First Half Results 2007 | 9 August 2007 |. 2. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. At Fortis we strongly believe in controlled growth within acceptable risk levels, ultimately leading to aboveaverage returns. The result of this policy is reflected in the continued very low cost of credit risk of 2 basis points and the excellent combined ratio of 99% despite the impact of the Kyrill storm and the floods in the UK..

(3) 1. Fortis 1.1. Results Net profit Fortis Net profit attributable to shareholders went up 2% to EUR 2,782 million in the first half of 2007 compared to the first half of 2006. Results improved across Banking, Insurance and General. Net profit went up 38% to 1,616 million in the second quarter of 2007 compared to the first quarter of 2007. Banking, Insurance and General all contributed to this higher result. Net profit Banking Fortis’s banking business reported net profit of EUR 2,062 million for the first half of 2007, topping the outstanding EUR 2,051 million recorded for the same period last year. These excellent results were achieved on the back of consistent momentum in commercial activity. The year-on-year comparison shows sound and steady growth in commercially-driven revenue lines, net interest income and net commissions and fees. This was supported by solid volume increases in loan portfolios, the deposit base and funds under management. The already structurally lower effective tax rate was helped even further by the make-up of Treasury and Financial Markets results and the mix of capital gains. Changes in impairments remained very low as well. These advantages helped fund an ambitious investment programme aimed at securing long-term growth, which was the main reason for the increase in expenses.. Net profit Insurance Fortis Insurance continued to perform well in the second quarter of 2007, with net profit advancing to EUR 765 million, up 6% compared with the first half of last year. This growth was realised despite the severe impact of Windstorm Kyrill (EUR 86 million pre-tax) in the first quarter and flooding in the UK (EUR 46 million pretax) in June. Excluding those factors, both Life and Non-life posted solid and sustainable technical results founded on profitable volume growth. Second-quarter net profit increased 17% on the first quarter to EUR 413 million, driven by a better Non-life performance. The operating margin at Life was up 17%, compared with the first half of 2006, to EUR 439 million, driven by higher volumes of both inflow and funds under management (up 13% compared with first half of 2006) and an enhanced investment result. Net profit consequently increased by 17% to EUR 556 million. At Non-life, the impact of Windstorm Kyrill and flooding in the UK (combined EUR 132 million pre-tax) reduced the technical result by 34% to EUR 197 million. These events trimmed Non-Life net profit by 15% to EUR 209 million. Excluding these weather events, the technical result improved (up 10%) thanks to profitable premium growth and continued strong underwriting results. Excluding these natural disasters, our continued focus on profitable growth in all countries led to an excellent combined ratio of 93.6%. Operating costs remained under control with only a slight increase, which was driven by costs related to growth initiatives. Net profit General The net negative result for the first half year of 2007 came to EUR 44 million, up by EUR 9 million from last year. The EUR 128 million capital gain realised on the sale of an equity investment was partly offset by the non-recurrence of a one-off EUR 77 million surrender penalty received in 2006, increased financing charges Fortis First Half Results 2007 | 9 August 2007 |. 3. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. The Bank posted net profit of EUR 1,159 million for the second quarter, the highest it has ever achieved and EUR 256 million or 28% up on the previous quarter. The considerable enhancement of the top line – albeit partly seasonal – combined with controlled expense growth of 2% contributed to this major increase in net profit. It should be noted that gross income growth was due to continued momentum in commercial activity as well as to higher seasonal Treasury and Financial Markets results..

(4) and higher pension-related eliminations, the last mainly reflecting timing differences. The capital gain on the equity investment is part of the run-up to the financing of the offer for ABN AMRO. Financing charges were higher due to the acquisition of Fortis Bank Insurance shares from Fortis Bank Belgium in the context of the Fortis Insurance Belgium merger. The merger and the related share transfer occurred on the last day of the first quarter of 2006 and accordingly did not cause additional interest expense in the first quarter of 2006, while they did adversely affect net interest income for the full first half of 2007. Fair value changes relating to Assurant mandatory exchangeable bonds (MEB) ended lower than last year but were more than offset by positive fair value changes in other derivatives.. Fortis First Half Results 2007 | 9 August 2007 |. 4. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. The second-quarter net result ended up EUR 132 million higher than the net result for the first quarter, reflecting the realised capital gain on the sold equity investment. Further variances reflect higher fair value changes in the MEB and a lower elimination charge relating to treasury shares, which were partly offset by higher seasonal cost levels, including dividend distribution costs..

(5) 1.2. Solvency Introduction Fortis uses a target-based model to manage and communicate solvency.. Fortis Group Fortis's core equity increased by EUR 1.5 billion to EUR 21.0 billion. The main drivers of the rise were retained net profit in the first half year (EUR 1.9 billion after EUR 0.9 billion is paid out in interim dividend) and positive revaluations on equity investments (EUR 0.5 billion) offset by the negative effects of goodwill paid for Dominet and PCI (EUR 0.5 billion) and the one-off negative impact of amendments to the rules of Belgium's Banking, Finance and Insurance Commission (BFIC) (EUR 0.3 billion). The core equity target increased by EUR 2.2 billion to EUR 19.9 billion, driven by a 14% increase in risk-weighted banking commitments and a 8% increase in the required minimum for insurance.. Fortis First Half Results 2007 | 9 August 2007 |. 5. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. The model consists of three components: • a capital target for Fortis Bank equal to a ratio of 7% Tier 1 capital 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 total core equity of Banking plus the core equity of Insurance, implying that 15% of Banking and Insurance’s combined target core equity could be financed by group debt.

(6) This resulted in core equity being EUR 1.1 billion above target at the end of the first half of 2007 compared with EUR 1.8 billion at the end of the fourth quarter of 2006. Group leverage decreased to 14.7% due to stable group debt combined with increased group core equity. Fortis Bank The Tier 1 ratio of Fortis Bank decreased from 7.1% to 6.7%. The positive effect of the first half year net profit (EUR 2.1 billion) was more than offset by a 14% increase in risk-weighted commitments, goodwill paid for Dominet and the one-off negative effect of the amended BFIC rules. The increase in risk-weighted commitments by 14% or EUR 34.5 billion to EUR 274.6 billion was driven mainly by strong growth in lending activities and committed credit lines. The total capital ratio remained strong at 10.7% supported by a EUR 0.5 billion Lower Tier 2 benchmark issue in the first quarter of 2007. Fortis Insurance The total solvency ratio of Fortis Insurance’s activities decreased from 269.3% to 252.8%. The increase in total capital, which was driven by net profit (EUR 0.8 billion) and revaluations on equity investments (EUR 0.5 billion), is more than offset by the expected interim dividend of EUR 0.9 billion, the goodwill paid on the acquisition of Pacific Century Insurance Holdings Limited (PCI) (EUR 0.3 billion) and the 8% rise in the required minimum, of which 1% relates to the acquisition of PCI.. 1.3. Dividend. Timetable interim dividend 2007 9 August 2007 Publication of financial statements for first half 2007 10 August 2007 Ex dividend date for Fortis shares 10 August 2007 Dividend election period starts 29 August 2007 Dividend election period ends 6 September 2007 Payment of the 2007 interim dividend The dividend election period allows the shareholder to opt for a dividend from either Belgian or Dutch source. 1.4. FTE developments. Fortis First Half Results 2007 | 9 August 2007 |. 6. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. In accordance with Fortis’s dividend policy, the Board of Directors has decided to pay an interim dividend of EUR 0.70 per share. Fortis shares will be quoted ex-interim dividend on 10 August 2007. The dividend election period will run from 10 until 29 August 2007. The interim dividend will be paid in cash on 6 September 2007..

(7) Fortis First Half Results 2007 | 9 August 2007 |. 7. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Fortis continued to be a net hirer in the first half of 2007, when 7,014 FTEs joined the company and 3,161 left. Acquisitions added 2,229 to the number of FTEs, the most important of which were Dominet in Poland and PCI in Hong Kong with a total of around 1,200 FTEs. At the end of June 2007, 36% of the workforce was based outside the Benelux countries..

(8) • • • • •. Record net profit in the second quarter; first half 2007 results top the already exceptional figures for the same period last year Robust commercial momentum demonstrated by solid increase in net interest income and commissions Strong Trading and Private Equity results Underlying lending growth of 9% year-to-date Funds under management increase 10% year-to-date to EUR 209 billion, driven by net inflow of EUR 10.3 billion. Fortis’s banking business reported net profit of EUR 2,062 million for the first half of 2007, topping the outstanding EUR 2,051 million recorded for the same period last year. These excellent results were achieved on the back of consistent momentum in commercial activity. The year-on-year-comparison shows sound and steady growth in commercially-driven revenue lines, net interest income, and net commissions and fees. This was supported by solid volume increases in loan portfolios, the deposit base and funds under management. The already structurally lower effective tax rate was helped even further by the make-up of Treasury and Trading results and the mix of capital gains. Changes in impairments remained very low as well. Fortis First Half Results 2007 | 9 August 2007 |. 8. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. 2. Banking.

(9) These advantages helped fund an ambitious investment programme aimed at securing long-term growth, which was the main reason for the increase in expenses. Evidencing the success of the growth strategy are the results in Turkey. Fortis Bank Turkey contributed a very healthy EUR 57 million to the bottom line in the first half of the year, thereby already comfortably surpassing the EUR 47 million achieved for full year 2006. This was thanks to the effective expansion of the distribution network, which pushed revenues up sharply while keeping costs under control. Fortis Bank Turkey is consequently on track to deliver the results set out in the acquisition plan. The Bank posted net profit of EUR 1,159 million for the second quarter, the highest it has ever achieved and EUR 256 million or 28% up on the previous quarter. The considerable enhancement of the top line – albeit partly seasonal – combined with controlled expense growth of 2% contributed to this major increase in net profit. It should be noted that gross income growth was due to continued momentum in commercial activity as well as to higher seasonal Treasury and Financial Markets results.. Net interest income on interest-margin products clocked in at EUR 2,618 million, an increase of 4% versus last year. Purely business-driven net interest income climbed by as much as 7%, excluding the lower prepayment fees and the one-off correction at Other Banking. The solid increase was realised on the back of strong volume growth particularly at loan-based businesses throughout the Bank. Double-digit net interest income growth was achieved by most Merchant Banking business lines, e.g. Corporate, Institutional & Public Banking, Energy, Commodities & Transportation, Investment Banking and Specialised Financial Services. The slight decrease of EUR 8 million at Retail Banking (excluding France) is fully explained by EUR 19 million lower penalty fees on mortgages in the Netherlands. Excluding this factor, net interest income increased by EUR 11 million, as strong growth in both volumes and margins in Poland and Turkey more than compensated for the change in portfolio mix in Belgium. Second-quarter net interest income on interest-margin products was EUR 1,308 million, matching the previous quarter’s level. Retail and Merchant & Private Banking advanced about 3% on average, although this was offset by a one-off charge at Other Banking. Equity duration increased from 5.3 to 6.7 years as a result of additional investments, benefiting from the steeper Euro yield curve during the second quarter on the one hand and the lower duration of deposits on the other. Sustained business growth was supported by a steady increase in both underlying loan volumes and deposits. Loan volumes, excluding securities lending and reverse repurchase agreements, rose by 9% in the first half of 2007, with commercial loans advancing 15% and residential mortgages 3%. The deposit base was 4% up on the 2006 year-end level. However, there has been a shift away from savings deposits towards lower margin time deposits.. Fortis First Half Results 2007 | 9 August 2007 |. 9. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. First-half total income rose to EUR 5,752 million, up 3% from the same period last year. The underlying growth, however, came to 9%, excluding accounting, timing and exceptional factors that distorted the year-onyear comparison and taking into account the grossing up effect on trading results. Last year’s revenues benefited from EUR 220 million of the non-qualifying hedge plus EUR 54 million more mortgage prepayment fees than this year but were also impacted negatively by the EUR 77 million penalty on an internal financing repayment. This year’s revenues were depressed by the EUR 29 million timing difference in revenues related to the Global Securities business and the EUR 38 million one-off correction at Fortis Hypotheekbank. Importantly, more than half of the underlying growth in net interest income and commissions was driven by activities earmarked as growth engines..

(10) Credit risk-weighted commitments climbed to EUR 254 billion, up 15% on the year-end 2006 level and 5% up on the previous quarter. This rise was driven by strong volume growth particularly at the Merchant & Private Banking business. Total risk-weighted commitments including market risk-weighted commitments of EUR 20 billion amounted to EUR 275 billion, representing an increase of 14% on year-end 2006 and 4% on the first quarter of 2007. Funds under management amounted to EUR 209 billion, up 10% on year-end 2006, benefiting from sustained inflow and the positive impact of capital markets. Funds under management rose 22% year-on-year, increasing the revenue base for asset-based commission. Net inflow remained strong at EUR 10.3 billion in the first half, EUR 2.8 billion of which came in at Private Banking and EUR 6.6 billion at Fortis Investments. The high net inflow at Asset Management was driven by growing business in new key geographies. Net commissions and fees amounted to EUR 1,490 million, up 6% on the first half of 2006. Fees related to funds under management contributed half of this growth on the back of a substantially higher fee base supported by positive net intake at Asset Management and Private Banking on the one hand and favourable market developments during the period on the other. Insurance related fees, securities and daily banking fees accounted for the remainder of the increase. Net commissions and fees advanced a further 5% from the already strong previous quarter. The increase was fuelled by the same drivers as mentioned above.. Treasury and Financial Markets results declined by 11% (or EUR 123 million) to EUR 1,008 million in the first half. However, the EUR 172 million relating to the factors mentioned above – the non-qualifying hedge, the penalty on an internal financing repayment and timing difference in the Global Securities business – more than explains this decrease. The underlying results of the major contributors to this revenue line, such as Trading, Private Equity and Global Securities Financing (GSFG), were all up or at least stable compared with last year’s stellar performance. The results of Treasury and Financial Markets comprise trading and non-trading income. Non-trading revenues (mainly Private Equity, Global Securities Financing Group, credit hedging and the fair value of part of the ALM portfolio) basically account for the full decrease outlined above. Components of nontrading revenues are detailed individually below. - GSFG turned in a good performance in the first half with EUR 262 million in total revenues. The 10% decrease year-on-year was entirely attributable to a change in recognition of fixed fees paid in relation to exclusive rights. Underlying GSFG income was actually slightly up year-on-year. Revenues were more than four times higher in the second quarter of 2007 than in the previous quarter, driven by higher seasonal volumes in transactions. - Private Equity also remained stable compared with the high 2006 base, with positive revaluations of equity holdings and exits. - The Credit Portfolio Management unit, which manages credit risk at Merchant & Private Banking, recorded a negative revaluation of EUR 36 million in the first half. - Treasury and Financial Markets results reported under Other Banking saw a sharp rise in results after adjustment for the non-qualifying hedge and penalty payment in 2006, due to the impact of rising yields on derivative positions.. Fortis First Half Results 2007 | 9 August 2007 |. 10. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Capital gains not linked to financial market activity amounted to EUR 416 million in the first half of 2007, EUR 155 million higher than in the same period in 2006. Higher asset sales included disposals in the run-up to the financing of the offer for ABN AMRO. Realised capital gains were largely equity based, contributing to the further reduction of the overall effective tax rate..

(11) Trading revenues (adjusted for grossing up) remained stable at the high level of EUR 530 million. The better performance by the Forex and Rates Group and the considerable advance of the Equity Cash and Derivatives Group offset the weaker results in the structured Finance group and Energy trading, demonstrating the diversification benefits of our portfolio of activities. Overall trading results nevertheless maintained the very high level of income of 2006 despite these adverse market conditions. These results demonstrate once again that Treasury and Financial Markets results benefit from a well-balanced and well-diversified portfolio of activities. The change in provisions for impairments remained very low, amounting to just EUR 36 million in the first half of the year. Further net releases at Merchant and Private Banking were the main driver of this low charge at Bank level. The overall credit loss ratio (calculated as a percentage of average credit risk-weighted commitments) remains very low at 2 basis points for the first half of 2007. Barring any unforeseen circumstances, Fortis now expects a credit loss ratio in the range of 10 to 15 basis points for full year 2007. Although the quality of the credit portfolio remains good and there are no signs of this changing in the short term, Fortis is taking a cautious stance, as the current jitters in the US credit market might have spill-over effects. Total expenses amounted to EUR 3,334 million in the first half of 2007, up 13% on the same period last year. This 13% growth can be broken down into three components. Scope changes and one-off effects explain 3% points, while 3% points was due to underlying organic growth and 7% points to accelerated investment in growth initiatives. However, expense growth in the second quarter of 2007 was limited to 2% compared with the first quarter. The cost/income ratio for the first half of 2007 amounted to 58.0%, which is lower than the ratio for full year 2006, but higher than the 52.9% for the same period in 2006. The ratio improved to 55.5% in the second quarter of 2007 from 60.7% in the first quarter.. Staff expenses clocked in at EUR 1,934 million, an increase of EUR 185 million or 11% compared with the first half of 2006. However, last year staff expenses benefited from a EUR 31 million pension release, explaining 2% of the increase. Around one third of the remaining increase is due to normal wage inflation and the rest is due to staff increases, owing to both hiring and acquisitions. Staff expenses grew 5% in the second quarter, led by the increase at Merchant and Private Banking where new staff were recruited to support the business’s growth. Total Banking FTEs amounted to 46,080 at the end of the second quarter, an increase of 3,440 or 8% from a year ago. About 1% of the increase relates mainly to the acquisition of Dominet, Cinergy Marketing & Trading, and Von Essen. The remaining FTE growth occurred mainly at Merchant and Private Banking. Additional staff hired at Merchant Banking was destined mainly for Global Markets, Specialised Financial Services, Clearing Funds and Custody and Commercial Banking while hiring at Retail, concentrated on countries with accelerated growth (e.g. Turkey, Germany and Poland). Other expenses were up 16% to EUR 1,400 million, compared with EUR 1,203 million in the first half of 2006. While consolidation of acquisitions and an exceptional charge in the first quarter explain around 3% of this rise, the majority of the increase was due to investment in support of the long-term growth plans. Investment focused on IT infrastructure across the Bank, distribution expansion at Retail Banking in Germany (Consumer Finance), Turkey and Poland and support for business growth at Merchant & Private Banking.. Fortis First Half Results 2007 | 9 August 2007 |. 11. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. The EUR 382 million rise in total expenses was almost equally divided between staff and other operating expenses..

(12) Other Expenses declined by 2% in the second quarter of 2007 compared with the first. The quarter-on-quarter improvement was driven by an exceptional charge in the first quarter of 2007, increased capitalisation of project-related IT expenses and higher VAT recovery.. Fortis First Half Results 2007 | 9 August 2007 |. 12. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. The effective tax rate was as low as 13% for the first half of 2007, compared with 20% for the same period last year. The fully operational Belgian treasury centre and the reduction in the Dutch corporate tax rate both structurally improved the effective tax rate. The structure of Treasury and Financial Market’s results and the mix of capital gains, which ensued mainly from tax-exempt equity deals, also helped to drive the tax rate down to this exceptionally low level..

(13) 2.2. Performance per Banking Business (For full details see Financial and Operational Review). • Net profit at Retail Banking stands at EUR 636 million for the first half of 2007, with the second quarter turning in EUR 350 million, 23% more than in the first • Total income for the first half remains stable as higher net commissions and fees compensate for lower ALM results • Excellent commercial performance supported by a EUR 5 billion increase in customer deposits • Fortis Investments posted strong results partly driven by a EUR 7 billion net inflow Net profit at Retail Banking ended up at EUR 636 million, 4% lower than last year. Total income declined slightly as higher net commissions and fees did not fully compensate for lower ALM results. Total expenses ended 6% higher as a result of continued investment in growth activities such as Consumer Finance (Credit4me in Germany and Dominet in Poland) and Fortis Investments. Retail Banking Network’s1 net profit amounted to EUR 583 million in the first half of 2007 compared with EUR 616 million last year. Total income remained stable at EUR 2.2 billion, as 10% higher net commissions and fees (EUR 48 million) were offset by lower ALM results and slightly reduced net interest income. The change in impairments decreased by EUR 8 million, while total expenses went up EUR 125 million.. 1. The retail activities of Fortis Banque France were transferred from Retail Banking to Merchant & Private Banking in the second quarter of 2007. All numbers in this paragraph, except for the net profit numbers, refer to Retail Banking Network excluding France.. Fortis First Half Results 2007 | 9 August 2007 |. 13. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. 2.2.1. Retail Banking.

(14) Net profit for the second quarter was EUR 324 million compared with EUR 259 million for the first quarter. The drivers were the higher ALM result (up EUR 91 million) and to a lesser extent net interest income (up EUR 15 million) and higher net commissions and fees (up EUR 9 million), while the change in impairments was EUR 14 million lower. Expenses were slightly up due to the inclusion of Dominet. In the second quarter we continued expansion in growth regions. Postbank, a 50:50 joint venture between Fortis and An Post, started trading from over 250 post offices. This new Irish community-based banking service will have the largest retail banking network in Ireland by the end of next year with over 1,000 post offices.. Fortis First Half Results 2007 | 9 August 2007 |. 14. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Fortis Investments again posted strong results, recording net profit of EUR 60 million in the first half of 2007, up 22% on the previous year. Second quarter net profit at EUR 31 million was 7% higher than the first. Including ALM costs and corporate cost allocations, the net profit of Asset Management reached EUR 53 million in the first half of 2007. Net inflow accelerated to EUR 6.6 billion at the end of June, EUR 3.9 billion of which was recorded in the second quarter, Total assets under management reached EUR 131 billion, up 8% from year-end 2006 and 5% higher than at the end of the first quarter..

(15) 2.2.2. Merchant & Private Banking. Net interest income up sharply on the back of strong volume growth Net commissions and fees benefit from profitable deals, strong net intake and cross-selling Treasury and financial markets experience steady results despite difficult market conditions Benign credit environment continues. Net profit for the first half of 2007 increased by 1% year-on-year to EUR 1,443 million, compared with the high first half 2006 base. This reflects continued commercial efforts and the strong resilience of the diversified portfolio of market-related activities. Compared with the first quarter of 2007, net profit rose by 32% thanks to the strong performance by all businesses as well as the seasonal contribution of securities lending and arbitrage activities in the second quarter. Total income increased by 6% to EUR 3,258 million, driven mainly by a 27% rise in net interest income. Net interest income growth was mostly organic, supported by higher volumes as well as interest-related fees earned on corporate deals. Higher volumes more than compensated for the margin pressure felt particularly at Specialised Financial Services, Commercial Banking and Private Banking, while the overall quality of the portfolio improved in the 12 months to 30 June 2007. Treasury and financial markets posted a 10% decline, largely explained by the negative contribution of credit portfolio hedging. The underlying trading results remained very firm in the first half of 2007, reaching EUR 967 million (including gross-up) despite difficult market conditions. Total expenses increased by 20% year-on-year to EUR 1,674 million. Staff expenses were up 24% year-onyear, while FTEs increased by 12%. Around one third of the increase in staff expenses was because of scope changes, relating mainly to the Fortis Energy Marketing and Trading acquisition and the integration of Fortis Banque France. Excluding scope changes, staff expenses increased by 16% due mainly to hiring at growthengine businesses (mostly outside the Benelux countries), while the first half 2006 benefited from bonus releases. Other direct expenses rose by 13% year-on-year with around one third linked to scope changes. The balance related mainly to long-term investment in growth.. Fortis First Half Results 2007 | 9 August 2007 |. 15. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. • • • •.

(16) • • • •. First half-year net profit up 6% to EUR 765 million, more than compensating for the impact of Windstorm Kyrill (EUR 59 million) in the first quarter and the June floods in the UK (EUR 33 million) Gross inflow at Life soars 33% to EUR 7 billion, due to successful commercial campaigns and excellent sales performance at pension-related activities Gross written premiums at Non-Life advance 10% to EUR 3.1 billion, thanks to focus on customer needs Successful international expansion continues with acquisition of Hong Kong-based Pacific Century Insurance. Fortis Insurance continued to perform well in the second quarter of 2007, with net profit advancing to EUR 765 million, up 6% compared with the first half of last year. This growth was realised despite the severe impact of Windstorm Kyrill (EUR 86 million pre-tax) in the first quarter and flooding in the UK (EUR 46 million pretax) in June. Excluding those factors, both Life and Non-Life posted solid and sustainable technical results founded on profitable volume growth.. Fortis First Half Results 2007 | 9 August 2007 |. 16. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. 3. Insurance.

(17) Second-quarter net profit increased 17% on the first quarter to EUR 413 million, driven by a better Non-Life performance. Fortis Insurance showed a good commercial performance. Total inflow reached EUR 10.1 billion in the first half, up 25% on the first half of 2006. Life grew significantly – by 33% to EUR 7 billion – due to considerable sales efforts. Fortis Insurance’s leading Belgian market position was strengthened further by strong sales campaigns early in the year, resulting in an excellent performance by Individual Life. The business in the Netherlands benefited from the strategic decision to pinpoint pensions as a key area and from the growing Individual Life portfolio. Non-Life gross written premiums, with the focus on profitable growth, climbed by a healthy 10% to EUR 3.1 billion, thanks to excellent sales performances in all countries. Both Life and Non-Life inflow came in lower than in the first quarter as a result of the timing of Life campaigns and the seasonal peak in Non-Life premium income in the first quarter. The operating margin at Life was up 17%, compared with the first half of 2006, to EUR 439 million, driven by higher volumes of both inflow and funds under management (up 13% compared with first half of 2006) and an enhanced investment result. Net profit consequently increased by 17% to EUR 556 million. At Non-Life, the impact of Windstorm Kyrill and flooding in the UK (combined EUR 132 million pre-tax) reduced the technical result by 34% to EUR 197 million. These events trimmed Non-Life net profit by 15% to EUR 209 million. Excluding these weather events, the technical result improved (up 10%) thanks to profitable premium growth and continued strong underwriting results.. Multi-channel distribution is one of the levers for further growth. Fortis Insurance continues to focus on innovation and expanding its distribution channels in the Netherlands and has made further strides with the development of a direct channel under a new label, ’Ditzo’. The pack strategy is being developed further in Belgium, while several initiatives are underway at International to expand multi-channel distribution, including in France and the UK as well as in the newly entered markets, Germany, Russia and the Ukraine. New and innovative products have been successfully introduced, both in our home markets in the Benelux countries and internationally. In line with its strategy for international expansion, Fortis has successfully completed the acquisition of Pacific Century Insurance, announcing on 15 June 2007 that it has acquired a total of 98.59% of the share capital. Fortis will undertake the compulsory acquisition of the remaining 1.41% of the shares. The acquisition is another excellent opportunity to enter a growing market and neatly complements Fortis Insurance’s growth strategy in Asia. Fortis has changed the name of the main trading entity, Pacific Century Insurance Company Limited, to Fortis Insurance Company (Asia) Limited. Fortis Deutschland Lebensversicherungen AG successfully launched a cooperative venture with Fortis Bank (the Credit4Me consumer finance franchise). Fortis Assurances France joined forces with Fortis Bank France to sell specialist insurance products to private banking clients, following the successful start-up of bancassurance for high-net-worth clients at the end of last year. Fortis announced in July that Fortis and “la Caixa” have mutually decided to end their Caifor joint venture after 15 years of fruitful cooperation. Fortis remains fully committed to the Spanish market, both in banking and insurance, and to its international expansion strategy based on multi-channel distribution. The sale of Fortis’s stake in Caifor has led to a change in the presentation of Insurance results for 2006 and 2007. Under IFRS, the figures for Caifor now come under results of discontinued operations in the P&L. Life Gross inflow increased by 33% to EUR 7,004 million in the first six months of the year, benefiting from Fortis First Half Results 2007 | 9 August 2007 |. 17. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Operating costs remained under control with only a slight increase of 3%, which was driven by costs related to growth initiatives..

(18) successful commercial campaigns and the continued excellent sales performance by pension-related activities. In Belgium, substantial new business in the banking and broker channels, benefiting from the sales campaigns of the first quarter, paved the way for remarkable 43% growth compared with the first six months of 2006. In the Netherlands, Individual and Group Life achieved inflow growth of 35% based on sound margins and in line with the strategy to focus on pension activities. All countries contributed to the 16% increase at International, which was driven by various growth initiatives. Life inflow was 18% down on the quarter owing to timing of commercial campaigns. Life technical result grew 22% to EUR 367 million, due to higher volumes and better seasonal investment income than in the first six months of 2006. Net profit rose 17% compared with the first half of 2006, mainly due to the better technical performance and lower effective tax rate. The technical result and net profit ended up higher than in the first quarter, mainly due to seasonally strong dividend income in the second quarter. Non-Life Gross written premiums advanced 10% to EUR 3,072 million in the first six months of 2007. All businesses contributed to this growth, which was also supported by all product segments, based on a strategy of focusing on customer needs without compromising underwriting discipline. Accident & Health posted 9% growth, headed by the Netherlands, which further strengthened its solid market position by entering the newly privatised long-term disability market. Property & Casualty increased gross written premiums by 10% based on healthy growth rates for all product lines, especially in the UK motor market (which benefited from relatively low costs in a competitive environment), and on product innovation in all markets.. The effect of Kyrill and the floods in the UK (impacting Property results) brought down the technical result by 34% to EUR 197 million in the first six months of 2007, with a combined ratio of 99.0%. Excluding these natural disasters, the technical result increased 10% and our continued focus on profitable growth in all countries led to an excellent combined ratio of 93.6%. The negative impact of the claims ensuing from the above events was partly offset by improved underwriting, higher capital gains and a lower effective tax rate. The net effect was a 15% decrease in net profit to EUR 209 million in the first half of 2007. Technical result and net profit were higher in the second quarter than the first quarter, mainly due to the impact of Kyrill in the first quarter. The UK again suffered severe floods in July. However, it is too soon to make an accurate assessment of the potential impact.. Fortis First Half Results 2007 | 9 August 2007 |. 18. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. As a result of the traditional peak in premium income in the first quarter, especially at Accident & Health, gross written premiums in the second quarter were 29% down on the first quarter..

(19) 3.2. Performance per Insurance business (for full details see Financial and Operational Review) 3.2.1. Insurance Belgium. • • •. Net profit rises to EUR 285 million, up 4% on last year, more than compensating for the effects of Windstorm Kyrill Total gross inflow at Life amounts to EUR 3,386 million, a 43% climb compared to last year, supported by extensive marketing efforts in the first quarter resulting in sustained market leadership for Individual and Group Life Non-Life grows 9% to EUR 721 million, backed by extended product offering Integration fully on track.. Net profit of Fortis Insurance Belgium reached EUR 285 million in the first six months of the year, a 4% increase compared with the same period last year, despite the EUR 46 million (pre-tax) impact of Windstorm Kyrill. The technical result excluding Kyrill grew by EUR 39 million to EUR 265 million, driven by better performances at Life (volume growth) and Non-Life (improved claims ratio and volume growth). The higher technical result, together with a lower effective tax rate due primarily to a more favourable capital gains mix, more than compensated for the effect of Kyrill. Second quarter net profit was 9% higher than the first quarter, mainly because of the seasonality of dividend payments and the impact of Kyrill in the first quarter. Total inflow reached EUR 4,107 million in the first six months of 2007, 36% ahead of last year’s level. Inflow at Life went up by 43%, driven by savings and unit-linked, while Non-Life inflow climbed 9%. Strong marketing efforts early in the year, involving both the bank and the broker channel, resulted in record firstquarter inflow at Life, and favourably impacted second quarter volumes. Total inflow fell by 18% compared with the first quarter, as Non-Life weakened due to the natural seasonality of premiums, and as Life could not benefit from the sharp boost from first quarter savings campaigns. Operating costs remained under control, rising only 1% to EUR 194 million from EUR 191 million in 2006. The rise was mainly due to the increase in FTEs to accommodate the business’s ongoing growth. Most integration and synergy projects are finished. Final focus is on the consolidation of the Non-Life platform, the launch of which is expected in the second quarter of 2008. This will significantly improve our time to market and customer service and hence create a solid basis for capturing further synergy potential. Furthermore, Fortis Insurance Belgium is committed to exploiting the full cross-selling potential of the banking network in Belgium as regards the SME segment. The rollout of the cross-selling project is planned for early 2008. Fortis First Half Results 2007 | 9 August 2007 |. 19. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. •.

(20) 3.2.2. Insurance Netherlands. • • • •. Strong performance by Life and Non-Life pushes up first-half net profit by 18% to EUR 379 million, more than compensating for Windstorm Kyrill Gross inflow at Life up 35% to EUR 1,918 million thanks mainly to pension-related activities Strong performance at Accident & Health and product innovation at Property & Casualty are major drivers of the 7% increase in Non-Life gross inflow to EUR 1,255 million Good progress with implementation of innovative products and preparations for direct distributionchannel. Net profit increased by 18% to EUR 379 million in the first half of 2007, thanks to higher technical results at Life, a lower corporate tax rate and higher capital gains, which more than compensated for the impact of Windstorm Kyrill.. Total gross inflow rose 22% in the first six months of 2007 to EUR 3,173 million, driven by Life (up 35%) and Non-Life (up 7%). Life figures were lifted by the focus on pension-related group contracts. Accident & Health (up 13%) contributed to the favourable top-line development at Non-Life. Seasonal factors at both Group Life and Medical Expenses reduced inflow in the second quarter to 39% below the first quarter level. Operating costs went up only 2% compared with the same period in 2006, from EUR 263 million to EUR 267 million, despite investments in growth initiatives such as the setting up of multi-channel distribution. While Fortis Insurance Netherlands will continue to strengthen its relations with intermediaries, it will also extend and broaden its distribution network as part of its growth strategy. New concepts of direct distribution are being developed and will be implemented in the coming months. These initiatives target customer groups that would not normally use the broker channel for advice. Fortis Insurance Netherlands announced in June that its new direct channel would be labelled Ditzo.. Fortis First Half Results 2007 | 9 August 2007 |. 20. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Net profit for the second quarter was up 28% compared with the first quarter of 2007, due to the impact of Windstorm Kyrill in the first quarter and higher investment income in the second..

(21) 3.2.3. Insurance International. • • • •. Strong second quarter performance drives 16% growth in Life inflow to EUR 1,700 million from EUR 1,463 million First half-year gross written premiums at Non-Life increased 15% to EUR 1,097 million, driven mainly by continued strong UK performance Net profit amounts to EUR 101 million, impacted by Windstorm Kyrill and June flooding in the UK Implementation of international growth strategy on track: acquisition of PCI in Hong Kong finalised; marketing campaigns to promote Fortis brand in Russia and Ukraine; successful developments in bancassurance in France and Germany. Gross inflow at consolidated companies went up 16% in the first six months of 2007 to EUR 2,797 million from EUR 2,415 million, due to an excellent sales performance at Life and Non-Life, driven by various growth initiatives. The continued successful development of third party channels increased Life inflow in Luxembourg. Gross inflow at the non-consolidated companies increased by 14% to EUR 2,225 million, driven by growth at Life joint ventures. Business development and start-up costs in new markets increased operating costs by 7% compared with the same period last year to EUR 210 million including a reclassification.. Fortis First Half Results 2007 | 9 August 2007 |. 21. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Windstorm Kyrill in the first quarter and flooding in the UK in the second quarter (June) impacted Fortis Insurance International’s net profit for the first half of 2007, reaching EUR 101 million, compared with EUR 126 million in 2006. Life net profit went up 19%, due to overall growth in funds under management and increased profit contributions from joint ventures. Non-Life net profit was impacted by weather-related events that affected the results of Fortis UK and Fortis Corporate Insurance..

(22) Please see the Financial and Operational Review, the Analyst Presentation and the Consolidated Quarterly Financial Report for a detailed analysis of the first half 2007 results. These documents are available on our website: www.fortis.com. Analyst and Investor presentation 9 August, 14h00 CET (13h00 UK time) Fortis auditorium, Archimedeslaan 6 Utrecht (The Netherlands) Webcast: www.fortis.com +44 20 7138 0815 (United Kingdom) +32 2 400 3463 (Belgium) +1 718 354 1391 (US) Replay: available until 29th of August (Password: 7811485#) +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 38.2 billion (31/07/2007), Fortis ranks among the twenty largest financial institutions in Europe. Our sound solvency position, our presence in 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.. Press Contacts: 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. Investor Relations: Brussels:. Fortis First Half Results 2007 | 9 August 2007 |. 22. WorldReginfo - 2e2255ab-a504-4122-9e10-9cb9a0003974. Press conference 9 August, 10h30 CET (9h30 UK time) Fortis auditorium, Archimedeslaan 6 Utrecht (The Netherlands) Webcast: www.fortis.com Listen in: + 44 207 806 1953 (United Kingdom) +32 2 789 8726 (Belgium) +31 20 707 5512 (Netherlands).

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