Consolidated interim financial statements for the first quarter of 2006

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(1)Brussels/Utrecht, 18 May 2006. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Consolidated interim financial statements for the first quarter of 2006.

(2) Interim Financial Statements. Contents Consolidated balance sheet...................................................................................................................................... 4 Consolidated income statement................................................................................................................................ 5 Consolidated statement of changes in equity ............................................................................................................ 6 Consolidated cash flow statement ............................................................................................................................ 7 Summary of accounting principles and principles of consolidation ................................................................... 8 1.1. Basis of Accounting............................................................................................................................. 8. 1.2. Changes in accounting principles......................................................................................................... 8. 1.3. Accounting estimates .......................................................................................................................... 8. 1.4. Determination of accounting principles ................................................................................................. 9. 1.5. Segment Reporting ........................................................................................................................... 10. 1.6. Scope of Consolidation ..................................................................................................................... 10. 1.7. Presentation and Disclosures............................................................................................................. 11. 2. Acquisitions and divestments ....................................................................................................................... 12. 3. Information on segments.............................................................................................................................. 13 3.1. Banking ............................................................................................................................................ 13. 3.2. Insurance .......................................................................................................................................... 14. 3.3. General ............................................................................................................................................. 15. 3.4. Balance sheet by activity ................................................................................................................... 16. 3.5. Income statement by activity ............................................................................................................. 18. 3.6. Income statement of banking segments ............................................................................................. 20. 3.7. Income statement of insurance segments .......................................................................................... 22. 3.8. Income statement of insurance: Life and Non-life ............................................................................... 24. 4. Earnings per share and changes in outstanding shares ................................................................................. 26. 5. Assets under management........................................................................................................................... 27. 6. Solvency...................................................................................................................................................... 29. Explanatory notes to the balance sheet ................................................................................................................... 30 7. Assets held for trading and liabilities held for trading ..................................................................................... 31. 8. Due from banks ........................................................................................................................................... 32. 9. Due from customers .................................................................................................................................... 33. 10. Investments ................................................................................................................................................. 34. 2. 10.1. Investments available for sale............................................................................................................. 35. 10.2. Investments held at fair value through profit or loss ............................................................................ 36. 10.3. Land and buildings ............................................................................................................................ 37. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. 1.

(3) Interim Financial Statements. 11. Due to banks ............................................................................................................................................... 38. 12. Due to customers ........................................................................................................................................ 39. 13. Liabilities arising from insurance and investment contracts ............................................................................ 40. Explanatory notes to the income statement ............................................................................................................. 41 14. Interest income ............................................................................................................................................ 42. 15. Realised capital gains and losses on investments.......................................................................................... 43. 16. Other realised and unrealised gains and losses ............................................................................................. 44. 17. Fee and commission income ........................................................................................................................ 45. 18. Interest expense .......................................................................................................................................... 46. 19. Change in impairments ................................................................................................................................ 47. Explanatory notes to the insurance income statement ............................................................................................. 48 20. Insurance premiums..................................................................................................................................... 49. 21. Non-life insurance activities broken down by branch ..................................................................................... 51. 22. Technical results .......................................................................................................................................... 52. 23. Dividend ...................................................................................................................................................... 56. 24. Contingent liabilities ..................................................................................................................................... 56. 25. Events after the balance sheet date .............................................................................................................. 56. Review report......................................................................................................................................................... 57. All amounts stated in the tables of these interim financial statements are denominated in millions of euros, unless otherwise indicated.. 3. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Additional explanatory notes ................................................................................................................................... 55.

(4) Interim Financial Statements. Consolidated balance sheet Note. 31 March 2006. 31 December 2005. 26,296.0. 21,822.0. 7. 74,191.7. 62,705.0. Assets Cash and cash equivalents Assets held for trading Due from banks. 8. 91,186.9. 81,001.9. Due from customers. 9. 292,421.4. 280,759.3. Investments:. 10. - Held to maturity. 4,602.9. 4,669.3. 182,107.0. 179,020.1. - Held at fair value through profit or loss. 6,329.2. 5,127.2. - Investment property. 2,872.1. 2,546.3. - Investments in associates and joint ventures. 1,669.1. - Available for sale. 1,706.3 197,580.3. 193,069.2. 26,821.1. 25,666.7. Reinsurance, trade and other receivables. 9,197.7. 9,556.6. Property, plant and equipment. 3,215.9. 3,196.8. Unit-linked investments. Goodwill and other intangible assets Accrued interest and other assets Total assets. 1,972.0. 1,922.4. 60,907.9. 49,294.6. 783,790.9. 728,994.5. Liabilities held for trading. 7. 65,834.6. 50,562.2. Due to banks. 11. 190,506.0. 175,183.0. Due to customers. 12. 276,168.8. 259,063.8. Liabilities arising from insurance and investment contracts. 13. 56,819.9. 56,108.7. Liabilities related to unit-linked products. 27,345.2. 26,150.6. Debt certificates. 79,856.3. 77,266.6. Subordinated liabilities. 14,734.0. 13,757.2. 1,739.6. 1,699.3. Other borrowings Provisions Current and deferred tax liabilities Accrued interest and other liabilities Total liabilities Shareholders' equity Minority interests Total equity. 886.5. 907.1. 3,304.3. 3,628.9. 46,185.1. 45,011.0. 763,380.3. 709,338.4. 19,701.4. 18,929.0. 709.2. 727.1. 20,410.6. 19,656.1. 783,790.9. 728,994.5. Total liabilities, minority interests and shareholders' equity. 4. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Liabilities.

(5) Interim Financial Statements. Consolidated income statement Note. First quarter 2006. First quarter 2005. Interest income. 14. 16,629.1. 17,101.2. Insurance premiums. 20. 3,136.6. 2,993.5. 188.4. 189.2. 56.5. 51.3. Income. Dividend and other investment income Share in result of associates and joint ventures Realised capital gains (losses) on investments. 15. 402.9. 930.9. Other realised and unrealised gains and losses. 16. 448.3. 302.8. Fee and commission income. 17. 963.6. 732.9. Income related to investments for unit-linked products. 793.7. 479.5. Other income. 125.4. 300.3. 22,744.5. 23,081.6. ( 14,839.0 ). ( 15,558.0 ). ( 2,696.6 ). ( 2,623.2 ). ( 1,017.7 ). ( 749.3 ). Total income Expenses 18. Insurance claims and benefits Charges related to unit-linked products Change in impairments. 19. Fee and commission expense Depreciation and amortisation of tangible and intangible assets Staff expenses Other expenses Total expenses Profit before taxation Income tax expense. ( 17.8 ). ( 28.6 ). ( 541.9 ). ( 438.4 ). ( 135.8 ). ( 121.6 ). ( 1,103.6 ). ( 962.1 ). ( 726.0 ). ( 658.5 ). ( 21,078.4 ). ( 21,139.7 ). 1,666.1. 1,941.9. ( 320.4 ). Net profit for the period. 1,345.7. ( 419.1 ) 1,522.8. Net profit attributable to minority interests. 18.2. 17.8. Net profit attributable to shareholders. 1,327.5. 1,505.0. Basic earnings per share. 1.03. 1.17. Diluted earnings per share. 1.01. 1.15. Per share data (EUR). 4. 5. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Interest expense.

(6) Interim Financial Statements. Consolidated statement of changes in equity Share. Balance at 1 January 2005. Net profit. Unrealised. Currency. attributable. gains. Share. Premium. Other. translation. to. and. Shareholders'. Minority. Capital. reserve. reserves. reserve. shareholders. losses. equity. interests. Total. 6,306.8. 11,708.3. ( 8,622.1 ). ( 120.8 ). 2,353.5. 3,711.7. 15,337.4. 340.0. 15,677.4. 1,505.0. 17.8. 1,522.8. Net profit for the period. 1,505.0. Revaluation of investments Translation differences. 76.4. Other. 87.0. 87.0. 1.5. 88.5. 4.2. 80.6. 0.1. 80.7. 91.2. 1,625.8. 19.4. 1,645.2. 330.6. 330.6. ( 46.8 ) ( 46.8 ). Treasury shares. ( 46.8 ) 76.4. 1,505.0. 40.8. 40.8. Other Balance at 31 March 2005. 6,306.8. 11,708.3. ( 8,628.1 ). ( 44.4 ). Balance at 1 January 2006. 6,307.0. 11,718.4. ( 8,206.4 ). 110.6. Net profit for the period. 3,802.9. 17,004.0. 690.0. 17,694.0. 3,940.5. 5,058.9. 18,929.0. 727.1. 19,656.1. 1,327.5. 18.2. 1,345.7. ( 634.8 ). ( 634.8 ). ( 5.8 ). ( 640.6 ). 25.9. ( 53.2 ). ( 1.1 ). ( 54.3 ). 11.3. 653.0. Revaluation of investments ( 79.1 ). Other. 2.2 2.2. 2.2 ( 79.1 ). 1,327.5. ( 608.9 ). 641.7. Dividend paid. 2.2 ( 26.5 ). Treasury shares. 130.7. 130.7. Other Balance at 31 March 2006. 40.8. 3,858.5. 1,327.5. Translation differences. ( 46.8 ). 130.7 ( 2.7 ). 6,307.0. 11,718.4. ( 8,073.5 ). 31.5. 5,268.0. 4,450.0. 19,701.4. ( 26.5 ). 709.2. ( 2.7 ) 20,410.6. An amount of EUR 265.6 million (first quarter of 2005: EUR 265.6 million) is included in Other reserves related to the equity component of convertible loans. The appropriation of the net profit attributable to shareholders over the. 6. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. previous year will take place after the shareholders meeting has taken a decision on the profit appropriation..

(7) Interim Financial Statements. Consolidated cash flow statement Cash and cash equivalents - balance at 1 January. 31 March 2005. 21,822.0. 25,019.7. Cash flow from operating activities. 6,763.3. 16,472.3. Cash flow from investing activities. ( 6,684.4 ). ( 9,602.8 ). Cash flow from financing activities. 4,497.0. ( 1,274.9 ). Effect of exchange rate differences on cash and cash equivalents Cash and cash equivalents - balance at 31 March. ( 101.9 ) 26,296.0. 27.0 30,641.3. 7. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. 31 March 2006.

(8) Interim Financial Statements. 1. Summary of accounting principles and principles of consolidation. 1.1. Basis of Accounting. The Fortis consolidated interim financial statements, including the 2005 comparative figures, are prepared in accordance with IAS 34, Interim Financial Reporting, and include condensed financial statements and selected explanatory notes. These consolidated interim financial statements should be read in conjunction with the audited Fortis Financial Statements 2005. The Fortis consolidated annual financial statements 2005 are available at http://www.fortis.com/Press/annualreports.asp.. 1.2. Changes in accounting principles. The accounting principles used to prepare these consolidated interim financial statements at 31 March 2006 are consistent with those applied in the Fortis consolidated annual financial statements for the year ended 31 December 2005. A more extensive description of the accounting principles is included in the Fortis annual financial statements 2005 and also available at http://www.fortis.com/Shareholders/accountingpolicies.asp. On 11 January 2006 the European Commission endorsed IFRS 7, Financial Instruments: Disclosures, as well as some changes to other standards. IFRS 7 will be applied by Fortis as from 1 January 2007 and will have an impact on disclosures, not on recognition or measurement. Changes in other standards had no material impact on Fortis. On 12 January 2006 the IASB published IFRIC 8, Scope of IFRS 2 and on 1 March 2006 IFRIC 9, Reassessment of embedded derivatives. Neither of these had a material impact on Fortis in the first quarter of 2006.. 1.3. Accounting estimates. The preparation of these consolidated interim financial statements in conformity with IFRS requires the use of certain accounting estimates.. It also requires management to exercise its judgement in the process of applying these. accounting principles. Actual results may differ from these estimates and judgmental decisions. Interim results are not. Judgements and estimates are principally made in the following areas: •. estimation of the recoverable amount of impaired assets. •. determination of fair values of non quoted financial instruments. •. determination of the useful life and the residual value of property, plant and equipment, investment property and intangible assets. •. measurement of liabilities for insurance contracts. •. actuarial assumptions related to the measurement of pension obligations and assets. •. estimation of present obligations resulting from past events in the recognition of provisions. 8. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. necessarily indicative of full year results..

(9) Interim Financial Statements. 1.4. Determination of accounting principles. The IFRS standards allow in certain cases the application of different options. The following options were chosen by Fortis: •. Trade date accounting: all purchases and sales of financial assets requiring delivery within the time frame established by regulation or market convention are recognised on the trade date, which is the date when Fortis becomes a party to the contractual provisions of the financial assets.. •. Investment property, real estate held for own use, fixed assets and intangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.. •. Investments in joint ventures are accounted for using the equity method.. •. Fortis uses three types of hedges: fair value hedges, cash flow hedges and net investment hedges. Fair value hedge accounting is applied as from 1 January 2005 for portfolio hedges of interest rate risk ('macro hedging'). In this context, the difference between the fair value and the carrying value of the hedged item at designation of the hedging relationship is amortised over the remaining life of the hedged item. For macro hedges, Fortis uses the 'carved out' version of IAS 39 adopted by the European Union which removes some of the limitations on fair value hedges and the strict requirements on the effectiveness of those hedges.. Under this version,. ineffectiveness only arises when the revised estimate of a certain hedged item bucket drops below the designated amount of that bucket. •. Fortis applies 'shadow accounting' to the unrealised changes in fair value of the investments and assets and liabilities held for trading that are linked to and therefore affect the measurement of the insurance liabilities. These changes in fair value are therefore not part of equity.. •. The whole of the remaining unrealised changes in fair value of the available-for-sale portfolio – after application of 'shadow accounting' – that are subject to discretionary participation features are classified as a separate component of equity. The adequacy of insurance liabilities ('liability adequacy test') is tested at each reporting date on the level of homogeneous product groups.. •. Borrowing costs are generally expensed as incurred.. Borrowing costs that are directly attributable to the. acquisition or construction of an asset are capitalised while the asset is being constructed as part of the cost of that asset. •. Pensions: under IFRS, Fortis uses the corridor approach, i.e. not recording actuarial differences within defined limits.. 9. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. •.

(10) Interim Financial Statements. 1.5. Segment Reporting. The primary format for reporting segment information is based on business segments. Fortis's core activities are banking and insurance. As such, Fortis is organised on a world-wide basis into six business segments: •. Retail Banking. •. Merchant Banking. •. Commercial & Private Banking. •. Insurance Netherlands. •. Insurance Belgium. •. Insurance International. Activities not related to banking or insurance and elimination differences are separately reported from the banking and insurance activities. Fortis reported geographical segments are as follows: •. Benelux (Belgium, The Netherlands, Luxembourg). •. Other European countries. •. United States of America. •. Asia. •. Other. 1.6. Scope of Consolidation. The consolidated interim financial statements concern those of Fortis SA/NV and Fortis N.V. (the ‘Parent Companies’) and their subsidiaries. In combining the financial statements of Fortis SA/NV and Fortis N.V., Fortis applies consortium accounting in order to reflect in the most reliable manner its banking and insurance activities in accordance with the EU 7th directive dated 13 June 1983 (83/349/EEC). Fortis sponsors the formation of Special Purpose Entities (‘SPEs’) primarily for the purpose of asset securitisation transactions, structured debt issuance, or to accomplish another narrow well defined objective. Some of the SPEs are. Investments in joint ventures – contractual agreements whereby Fortis and other parties undertake an economic activity that is subject to joint control – are accounted for using the equity method. Investments in associates – investments whereby Fortis has significant influence, but which it does not control – are accounted for using the equity method.. 10. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. bankruptcy-remote companies whose assets are not available to settle the claims of Fortis. SPEs are consolidated if in substance they are controlled by Fortis..

(11) Interim Financial Statements. 1.7. Presentation and Disclosures. The consolidated interim financial statements are stated in euros, which is the functional currency of the Parent Companies of Fortis. Where IFRS allows a choice or is not descriptive in presentation or disclosures, Fortis opted for the following: •. Interest on assets, liabilities and derivatives held for trading are reported in the interest margin.. •. Dividends received are included in investment income.. •. Realised and unrealised results on assets held for trading are included in 'Other realised and unrealised gains and losses'.. •. Changes in the clean fair value (i.e. excluding the interest accruals) of derivatives that are not designated hedging instruments are also reported under 'Other realised and unrealised gains and losses'.. •. Cash flow statement: Fortis reports cash flows from operating activities using the indirect method. Interest received and interest paid are presented as cash flows from operating activities. Dividends paid are classified as cash flows from financing activities, dividends received are classified as cash flow from operating activities.. Fortis applied in its consolidated financial statements for 2005 the fair value option as published on 16 June 2005 by the IASB and as adopted by the European Union on 15 November 2005. Consequently the figures for the first quarter 2005 as formerly published are adjusted. Certain reclassifications have been made to the prior period's consolidated financial reports to conform the current. 11. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. period's presentation consistent with the Fortis consolidated annual financial statements 2005..

(12) Interim Financial Statements. 2. Acquisitions and divestments. The following major acquisitions and divestments were made in 2006 and 2005. Capitalised Acquired company. Quarter of. Acquisition. %. intangible. Goodwill/. acquisition. amount. acquired. assets. (badwill). Segment. Fortis Lease SPA. Q1 2005. 51.6. 100.0. 22.8. 4.9. Millenniumbcp Fortis. Q1 2005. 514.1. 51.0. 528.0. 165.1. Insurance International. Able Brookers. Q3 2005. 26.9. 100.0. 2.8. 20.6. Insurance International. Dişbank. Q3 2005. 919.4. 93.3. 49.0. 333.1. Atradius. Q4 2005. 63.6. 100.0. 0.1. 36.1. Dryden. Q4 2005. 78.6. 100.0. 6.8. Dreieck Industrie Leasing AG. Q1 2006. 64.0. 100.0. 28.8. O'Connor & Company. Q1 2006. 57.9. 100.0. Von Essen KG Bankgesellschaft. Q1 2006. 92.7. 100.0. 1.2. C&P Banking. Multisegment Banking C&P Banking. ( 16.9 ) C&P Banking 3.5. C&P Banking. 13.8. Merchant Banking. 40.1. Retail Banking. The acquisitions did not have, except for the acquisitions of Milleniumbcp Fortis and Dişbank, a substantial impact on the financial position and performance of Fortis regardless the timing of the transactions. Detailed information on the acquisition of Milleniumbcp Fortis and Dişbank is provided in the Fortis consolidated annual financial statements 2005. Although Dişbank, renamed Fortis Bank AS (Turkey), is active in all banking business segments of Fortis, all activities of Dişbank were reported in the Fortis segment information as Other Banking during 2005. As from 2006 onwards Fortis Bank AS is reported within all relevant banking business segments in the Fortis segment information. IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, is effective since 1 January 2005. At year end. 12. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. 2005 as well as at 31 March 2006 Fortis had no assets or operations to which IFRS 5 applies..

(13) Interim Financial Statements. 3. Information on segments. Fortis is an international financial services provider. Fortis’s core activities are banking and insurance. The primary format for reporting information is based on business segments. As such, Fortis is organised on a world-wide basis into six business segments: •. Retail Banking. •. Merchant Banking. •. Commercial & Private Banking. •. Insurance Netherlands. •. Insurance Belgium. •. Insurance International. Activities not related to banking and insurance and elimination differences are reported separately from the banking and insurance activities. Fortis’s segment reporting reflects the full economic contribution of the segments within Fortis. The aim is direct allocation to the segments of all balance sheet and income statement items for which the segments have full management responsibility. Segment information is prepared based on the same accounting principles as those used in preparing and presenting Fortis’s consolidated financial statements (as described in note 1) and by applying appropriate allocation rules. Transactions between the different segments are executed under standard commercial terms and conditions.. 3.1. Banking. Retail Banking Retail Banking provides financial services to retail customers, independent professions and small-sized enterprises. In the Benelux countries, Fortis offers advice on all forms of daily banking, saving, investment, credit and insurance. Merchant Banking Merchant Banking offers financial solutions composed of a comprehensive range of wholesale products to corporate and institutional clients. Merchant Banking also offers expertise in niche markets with a regional or global scope.. Commercial & Private Banking Commercial & Private Banking offers worldwide integrated services and solutions for asset and liability management to high-net-worth private clients and their businesses as well as to corporate clients and their advisers. Medium-sized enterprises are served by a uniform product and service offering, with the same range of cross-border products, services and specialisms, at the network of Business Centres throughout Europe.. Other banking Balance sheet items, revenues and costs for support functions, operations and Asset and Liability Management (ALM) are reported in this section. The figures reported are those after allocation to the commercial segments.. 13. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. through a variety of distribution channels. Fortis also provides retail banking services in France, Poland and Turkey..

(14) Interim Financial Statements. For 2005 Fortis Bank AS (Turkey), Fortis Hypotheek Bank and some other Fortis companies have been reported under this section. As from 2006 Fortis Bank AS is reported within all relevant banking segments. Also as from 2006 Belgolaise is reported in Other banking.. Allocation rules Segment reporting within the banking segments make use of balance sheet allocation rules, balance sheet squaring mechanisms, a fund transfer pricing system, rebilling of support and operations expenses and overhead allocation. The balance sheet allocation and squaring methodology aim at reporting information on segments to reflect Fortis’s business model. Under Fortis’s business model, segments do not act as their own treasurer in bearing the interest rate risk and the foreign exchange risk by funding their own assets with their own liabilities, or by having direct access to the financial markets. This is reflected in the fund transfer pricing system, which removes the interest and currency risks by transferring them from the segments to the central bankers. A key role in this system is attributed to Asset and Liability Management (ALM). The results of ALM are allocated to the segments based on the economic capital used and the interest margin generated within the segment. Support and operations departments provide services to the segments. These services include human resources, information technology, payment services, settlement of security transactions and ALM. The costs and revenues of these departments are charged to the segments via a rebilling system on the basis of service level agreements (SLAs) reflecting the economic consumption of the products and services provided. The SLAs ensures that the costs and revenues are charged based on actual use and at a fixed rate. Differences between the actual costs and the rebilled costs based on standard tariffs are passed through to the three segments in a final allocation.. 3.2. Insurance. Insurance Netherlands Fortis Verzekeringen Nederland serves the market via independent insurance brokers and offers businesses and individuals a wide range of life, non-life, healthcare and disability insurances and mortgages and savings products.. Fortis AG works through intermediaries to offer a comprehensive range of life and non-life insurances to private individuals and small and medium-sized enterprises (SMEs) Fortis AG also offers group policies to large enterprises through Fortis Employee Benefits. FB Insurance sells a comprehensive range of life and non-life insurance products through bank branches.. Insurance International Insurance activities are carried out in Luxembourg, France and the United Kingdom via Fortis Insurance International and its subsidiaries. Insurance activities are performed in Portugal, Spain, China, Malaysia and Thailand in cooperation with local partners.. Eliminations Eliminations includes eliminations between insurance segments.. Allocation rules In accordance with Fortis’s business model, Insurance companies do not report support activities separately.. 14. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Insurance Belgium.

(15) Interim Financial Statements. When allocating balance sheet items to segments, a bottom-up approach is used based on the products sold to external customers. For the balance sheet items not related to products sold to customers, a tailor-made methodology adapted to the specific business model of each reportable segment is applied.. 3.3. General. This section comprises activities not related to the core banking and insurance business, such as treasury and finance. 15. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. and other holding activities..

(16) Interim Financial Statements. 3.4. Balance sheet by activity 31 March 2006 Banking. Insurance. General. Eliminations. Total. Cash and cash equivalents. 28,944.9. 3,019.5. 3,351.4. ( 9,019.8 ). Assets held for trading. 74,438.8. 266.3. 124.3. ( 637.7 ). 74,191.7. Due from banks. 90,237.8. 3,610.4. ( 2,661.3 ). 91,186.9. 290,481.8. 7,543.3. 6,789.1. ( 12,392.8 ). 292,421.4. ( 700.0 ). 4,602.9. 53,762.1. 1,154.7. ( 1,703.1 ). 182,107.0. 3,414.2. 2,285.0. 935.0. ( 305.0 ). 412.6. 2,459.5. Assets. Due from customers. 26,296.0. Investments: - Held to maturity - Available for sale - Held at fair value through profit or loss - Investment property - Investments in associates and joint ventures. 5,302.9 128,893.3. 1,176.6. 508.7. 139,199.6. 59,015.3. Unit-linked investments. 6,329.2 2,872.1. ( 16.2 ). 1,669.1. 2,089.7. ( 2,724.3 ). 197,580.3. ( 281.2 ). 26,821.1. ( 1,369.1 ). 9,197.7. 27,102.3. Reinsurance, trade and other receivables. 6,720.7. 3,804.5. 41.6. Property, plant and equipment. 2,068.3. 1,147.2. 0.4. 3,215.9. 705.1. 1,266.9. 0.0. 1,972.0. 59,524.1. 3,311.1. 316.2. ( 2,243.5 ). 60,907.9. 692,321.1. 110,086.8. 12,712.7. ( 31,329.7 ). 783,790.9. Goodwill and other intangible assets Accrued interest and other assets Total assets Liabilities. 65,932.7. 23.2. 246.0. ( 367.3 ). 65,834.6. Due to banks. 190,334.2. 5,072.6. 3,381.0. ( 8,281.8 ). 190,506.0. Due to customers. 278,498.0. 287.1. 6,773.3. ( 9,389.6 ). 276,168.8. 31.6. 58,809.1. ( 2,020.8 ). 56,819.9. Liabilities arising from insurance and investment contracts Liabilities related to unit-linked products. 27,345.2. 27,345.2. Debt certificates. 79,488.9. 5.2. 688.3. ( 326.1 ). 79,856.3. Subordinated liabilities. 13,443.2. 1,591.6. 1,976.4. ( 2,277.2 ). 14,734.0. 4,556.7. 2,046.0. 820.8. ( 5,683.9 ). 1,739.6. 740.3. 145.6. 0.6. Other borrowings Provisions Current and deferred tax liabilities Accrued interest and other liabilities Total liabilities Shareholders' equity Minority interests Total equity. 886.5. 1,238.6. 1,761.5. 281.8. 41,849.7. 4,388.1. 1,756.3. ( 1,809.0 ). 46,185.1. 676,113.9. 101,475.2. 15,924.5. ( 30,133.3 ). 763,380.3. 16,010.5. 8,130.6. ( 1,196.4 ). 19,701.4. 196.7. 481.0. 16,207.2. 8,611.6. ( 1,196.4 ). 20,410.6. 692,321.1. 110,086.8. ( 31,329.7 ). 783,790.9. ( 3,243.3 ). 22.4. 31.5 ( 3,211.8 ). 3,304.3. 709.2. Total liabilities, minority interests and shareholders' equity. 16. 12,712.7. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Liabilities held for trading.

(17) Interim Financial Statements. 31 December 2005 Banking. Insurance. General. Eliminations. Total. Cash and cash equivalents. 25,593.9. 2,420.8. 5,186.2. ( 11,378.9 ). Assets held for trading. 62,830.1. 398.7. 216.7. ( 740.5 ). 62,705.0. Due from banks. 80,054.2. 3,717.0. ( 2,769.3 ). 81,001.9. 277,862.2. 7,632.4. 6,745.1. ( 11,480.4 ). 280,759.3. ( 700.0 ). 4,669.3. 126,698.5. 52,923.8. 1,151.9. ( 1,754.1 ). 179,020.1. 2,289.5. 2,247.5. 845.2. ( 255.0 ). 401.9. 2,144.4. Assets. Due from customers. 21,822.0. Investments: - Held to maturity - Available for sale - Held at fair value through profit or loss - Investment property - Investments in associates and joint ventures. 5,369.3. 1,254.4. 475.8. 136,013.6. 57,791.5. Unit-linked investments. 5,127.2 2,546.3. 1,997.1. 25,906.9. ( 23.9 ). 1,706.3. ( 2,733.0 ). 193,069.2. ( 240.2 ). 25,666.7. ( 69.2 ). 9,556.6. Reinsurance, trade and other receivables. 6,309.8. 3,251.6. 64.4. Property, plant and equipment. 2,017.7. 1,178.7. 0.4. 634.5. 1,287.9. 47,879.6. 3,365.3. 417.5. ( 2,367.8 ). 49,294.6. 639,195.6. 106,950.8. 14,627.4. ( 31,779.3 ). 728,994.5. Goodwill and other intangible assets Accrued interest and other assets Total assets. 3,196.8 1,922.4. Liabilities 50,754.9. 28.9. 220.0. ( 441.6 ). 50,562.2. Due to banks. 174,780.0. 4,782.8. 3,475.8. ( 7,855.6 ). 175,183.0. Due to customers. 263,284.8. 231.8. 7,015.8. ( 11,468.6 ). 259,063.8. 29.5. 58,107.8. ( 2,028.6 ). 56,108.7. Liabilities arising from insurance and investment contracts Liabilities related to unit-linked products. 26,150.6. 26,150.6. Debt certificates. 76,826.8. 5.2. 711.2. ( 276.6 ). 77,266.6. Subordinated liabilities. 12,489.7. 1,591.7. 1,962.7. ( 2,286.9 ). 13,757.2. 5,022.9. 1,317.4. 820.6. ( 5,461.6 ). 1,699.3. 795.2. 111.2. 0.7. Other borrowings Provisions Current and deferred tax liabilities Accrued interest and other liabilities Total liabilities Shareholders' equity Minority interests Total equity. 907.1. 1,309.0. 2,005.1. 278.8. 36.0. 3,628.9. 40,720.3. 4,414.5. 543.3. ( 667.1 ). 45,011.0. 626,013.1. 98,747.0. 15,028.9. ( 30,450.6 ). 709,338.4. 12,975.1. 7,712.3. ( 1,328.7 ). 18,929.0. 207.4. 491.5. 13,182.5. 8,203.8. ( 1,328.7 ). 19,656.1. 639,195.6. 106,950.8. ( 31,779.3 ). 728,994.5. ( 429.7 ) 28.2 ( 401.5 ). 727.1. Total liabilities, minority interests and shareholders' equity. 14,627.4. 17. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Liabilities held for trading.

(18) Interim Financial Statements. 3.5. Income statement by activity First quarter 2006 Banking. Insurance. General. 16,126.1. 686.6. 160.3. 3.0. 3,150.1. Dividend and other investment income. 31.2. 156.4. Share in result of associates and joint ventures. 30.3. 26.2. Realised capital gains (losses) on investments. 248.9. 164.1. Eliminations. Total. Income Interest income Insurance premiums. Other realised and unrealised gains and losses. 423.6. Fee and commission income. 897.5. Income related to investments for unit-linked products Other income Total income. ( 3.7 ). 1.3. ( 343.9 ). 16,629.1. ( 16.5 ). 3,136.6. ( 0.5 ). 188.4. ( 10.1 ). 402.9. 56.5 ( 9.1 ). 448.3. 137.7. 37.5. ( 71.6 ). 963.6. 804.9. ( 11.2 ). 793.7. 71.7. 74.8. 5.1. ( 26.2 ). 125.4. 17,832.3. 5,197.1. 204.2. ( 489.1 ). 22,744.5. ( 205.3 ). 325.2. ( 14,839.0 ). 41.0. ( 2,696.6 ). Expenses ( 14,825.8 ). ( 133.1 ). Insurance claims and benefits. ( 2,737.6 ). Charges related to unit-linked products. ( 1,017.7 ). Change in impairments Fee and commission expense Depreciation and amortisation of tangible and intangible assets. ( 9.4 ). ( 8.4 ). ( 209.7 ). ( 403.8 ). ( 82.6 ). ( 53.1 ). ( 1,017.7 ) ( 17.8 ) ( 0.1 ). 71.6. ( 541.9 ). ( 0.0 ). ( 135.8 ) ( 1,103.6 ). Staff expenses. ( 886.5 ). ( 204.4 ). ( 10.6 ). ( 2.1 ). Other expenses. ( 544.0 ). ( 197.1 ). ( 11.4 ). 26.5. ( 726.0 ). ( 16,558.0 ). ( 4,755.2 ). ( 227.4 ). 462.2. ( 21,078.4 ). Total expenses Profit before taxation. 1,274.3. 441.9. ( 23.2 ). ( 26.9 ). Income tax expense. ( 238.5 ). ( 92.1 ). 10.2. 0.0. Net profit for the period. 1,035.8. 349.8. ( 13.0 ). ( 26.9 ). 1,345.7. ( 26.9 ). 1,327.5. Net profit attributable to minority interests. 0.3. 10.6. 7.3. Net profit attributable to shareholders. 1,035.5. 339.2. ( 20.3 ). 18. 1,666.1 ( 320.4 ). 18.2. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Interest expense.

(19) Interim Financial Statements. First quarter 2005 Banking. Insurance. General. 16,563.5. 664.6. 163.6. 3.4. 3,010.3. Dividend and other investment income. 44.6. 143.6. Share in result of associates and joint ventures. 21.4. Realised capital gains (losses) on investments. 386.4. Eliminations. Total. Income Interest income Insurance premiums. ( 290.5 ). 17,101.2. ( 20.2 ). 2,993.5. 1.2. ( 0.2 ). 189.2. 22.8. 7.1. ( 0.0 ). 51.3. 101.8. 442.6. 0.1. 930.9. Other realised and unrealised gains and losses. 266.5. 28.2. 20.6. ( 12.5 ). 302.8. Fee and commission income. 658.5. 108.4. 3.0. ( 37.0 ). 732.9. Income related to investments for unit-linked products Other income Total income. 486.5. ( 7.0 ). 479.5. 125.5. 176.0. 2.3. ( 3.5 ). 300.3. 18,069.8. 4,742.2. 640.4. ( 370.8 ). 23,081.6. ( 203.5 ). 274.3. ( 15,558.0 ). 38.1. ( 2,623.2 ). Expenses Insurance claims and benefits. ( 15,510.4 ). ( 118.4 ). ( 3.9 ). ( 2,657.4 ). Charges related to unit-linked products Change in impairments. ( 749.3 ) ( 25.1 ). ( 3.5 ). ( 139.5 ). ( 335.9 ). ( 70.9 ). ( 50.6 ). Staff expenses. ( 746.4 ). Other expenses. ( 463.5 ) ( 16,959.7 ). Fee and commission expense Depreciation and amortisation of tangible and intangible assets. Total expenses Profit before taxation. 1,110.1. Income tax expense Net profit for the period. ( 749.3 ) ( 28.6 ) 37.0. ( 438.4 ). ( 0.1 ). 0.0. ( 121.6 ). ( 206.1 ). ( 6.4 ). ( 3.2 ). ( 962.1 ). ( 188.4 ). ( 10.3 ). 3.7. ( 658.5 ). ( 4,309.6 ). ( 220.3 ). 349.9. ( 21,139.7 ). 432.6. 420.1. ( 20.9 ). ( 311.5 ). ( 117.9 ). 10.4. ( 0.1 ). 798.6. 314.7. 430.5. ( 21.0 ). 1,522.8. ( 21.0 ). 1,505.0. Net profit attributable to minority interests. 6.8. 9.5. 1.5. Net profit attributable to shareholders. 791.8. 305.2. 429.0. 1,941.9 ( 419.1 ). 17.8. 19. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Interest expense.

(20) Interim Financial Statements. 3.6. Income statement of banking segments First quarter 2006 Commercial Retail. Merchant. & Private. Other. banking. banking. banking. banking. 1,137.0. Total Eliminations. banking. Income Interest income. 2,736.9. 16,915.9. Interest expense. ( 2,070.5 ). ( 16,685.1 ). Net interest income. ( 854.2 ). 666.4. 230.8. 282.8. Fee and commission income. 465.1. 202.5. 243.2. Fee and commission expense. ( 119.8 ). ( 65.1 ). ( 40.3 ). 137.4. 202.9. Net fee and commission income. 345.3. Insurance premiums. 3,721.7. ( 8,385.4 ). 16,126.1. ( 3,601.4 ). 8,385.4. ( 14,825.8 ). 120.3. 0.0. 1,300.3. 28.9. ( 42.2 ). 897.5. ( 26.7 ). 42.2. ( 209.7 ). 2.2. 0.0. 687.8. 3.0. 3.0. Dividend, share in result of associates and joint ventures and other investment income Realised capital gains (losses) on investments Other realised and unrealised gains and losses Other income Total income, net of interest expense Change in impairments Net revenues. 5.7. 22.4. 11.9. 21.6. 2.5. 67.3. 3.2. 175.9. ( 0.1 ). 61.5 248.9. 11.9. 220.9. 21.5. 169.3. ( 0.0 ). 423.6. 274.1. 64.5. 119.5. ( 375.6 ). ( 10.8 ). 71.7. 1,305.9. 743.3. 641.8. 116.7. ( 10.9 ). 2,796.8. ( 10.9 ). 2,787.4. ( 21.7 ) 1,284.2. 29.6. ( 14.8 ). ( 2.5 ). 772.9. 627.0. 114.2. ( 150.2 ). ( 176.4 ). ( 249.2 ). ( 9.4 ). Expenses Staff expenses. ( 310.7 ). ( 886.5 ). Depreciation and amortisation of tangible ( 6.2 ). ( 1.9 ). ( 11.0 ). ( 63.5 ). ( 96.8 ). ( 78.1 ). ( 65.8 ). ( 310.5 ). Allocated expense. ( 349.4 ). ( 103.8 ). ( 103.0 ). 552.5. Total expenses. ( 763.1 ). ( 334.0 ). ( 356.2 ). ( 70.7 ). 10.9. ( 1,513.1 ). 521.1. 438.9. 270.8. 43.5. 0.0. 1,274.3. Insurance claims and benefits. Profit before taxation Income tax expense Net profit for the period. ( 544.0 ). ( 0.0 ). ( 150.4 ). ( 7.2 ). ( 13.0 ). 0.0. 30.5. 0.0. 1,035.8. 432.5. 202.9. 29.4. 0.0. 1,035.5. 431.7. 370.7. ( 67.9 ). 3.7. 202.9. 370.7. Net profit attributable to minority interests Net profit attributable to shareholders. ( 82.6 ) 7.2. ( 0.8 ). 1.1. ( 238.5 ). 0.3. Net revenues from external customers. 711.9. 561.3. 587.8. 883.3. Net revenues internal. 572.3. 211.6. 39.2. ( 769.1 ). ( 10.9 ). 43.1. 1,284.2. 772.9. 627.0. 114.2. ( 10.9 ). 2,787.4. Net revenues. 20. 2,744.3. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. and intangible assets Other expenses.

(21) Interim Financial Statements. First quarter 2005 Commercial Retail. Merchant. & Private. Other. banking. banking. banking. banking. 1,047.2. Total Eliminations. banking. Income Interest income. 2,555.9. 17,506.8. Interest expense. ( 1,959.3 ). ( 17,339.8 ). Net interest income. ( 805.2 ). 596.6. 167.0. 242.0. Fee and commission income. 381.9. 163.7. 174.3. Fee and commission expense. ( 125.1 ). ( 52.6 ). ( 17.6 ). 111.1. 156.7. Net fee and commission income. 256.8. Insurance premiums. 2,806.9. ( 7,353.3 ). 16,563.5. ( 2,759.4 ). 7,353.3. ( 15,510.4 ). 47.5. 0.0. 1,053.1. 23.1. ( 84.5 ). 658.5. ( 28.7 ). 84.5. ( 139.5 ). ( 5.6 ). 0.0. 519.0. 3.4. 3.4. Dividend, share in result of associates and joint ventures and other investment income Realised capital gains (losses) on investments Other realised and unrealised gains and losses Other income Total income, net of interest expense Change in impairments Net revenues. 7.0. 38.2. 8.2. 19.7. ( 7.1 ). 66.0. ( 0.6 ). 120.4. ( 1.0 ). 267.0. 0.6. 386.4. 8.6. 180.9. 16.8. 60.8. ( 0.6 ). 266.5. 279.4. 70.1. 101.5. ( 309.4 ). ( 16.1 ). 125.5. 1,147.8. 687.7. 524.2. 83.4. ( 23.2 ). 2,419.9. 2,394.8. ( 33.9 ) 1,113.9. 53.1. ( 32.0 ). ( 12.3 ). ( 25.1 ). 740.8. 492.2. 71.1. ( 23.2 ). ( 128.2 ). ( 119.6 ). ( 232.8 ). 0.0. Expenses Staff expenses. ( 265.8 ). ( 746.4 ). Depreciation and amortisation of tangible ( 3.2 ). ( 2.4 ). ( 5.3 ). ( 59.4 ). ( 74.5 ). ( 96.2 ). ( 59.6 ). 30.3. Allocated expense. ( 299.3 ). ( 95.0 ). ( 100.0 ). 207.0. Total expenses. ( 642.8 ). ( 321.8 ). ( 284.5 ). ( 58.8 ). 23.2. ( 1,284.7 ). 471.1. 419.0. 207.7. 12.3. 0.0. 1,110.1. Insurance claims and benefits. Profit before taxation Income tax expense Net profit for the period. ( 70.9 ) ( 463.5 ). ( 3.9 ). ( 151.1 ). ( 3.9 ) 287.3. ( 83.8 ). ( 60.6 ). ( 16.0 ). ( 0.0 ). ( 311.5 ). 320.0. 335.2. 147.1. ( 3.7 ). 0.0. 798.6. 320.0. 334.3. 147.1. ( 9.6 ). 0.0. 791.8. Net profit attributable to minority interests Net profit attributable to shareholders. ( 0.6 ) ( 263.5 ). 0.9. 5.9. 6.8. Net revenues from external customers. 586.2. 418.1. 469.9. 917.4. Net revenues internal. 527.7. 322.7. 22.3. ( 846.3 ). ( 23.2 ). 3.2. 1,113.9. 740.8. 492.2. 71.1. ( 23.2 ). 2,394.8. Net revenues. 2,391.6. 21. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. and intangible assets Other expenses.

(22) Interim Financial Statements. 3.7. Income statement of insurance segments First quarter 2006 Total Insurance Netherlands Life. Non-life. Insurance Belgium Life. Non-Life. Insurance International Life. Eliminations. Insurance. Non-Life. Income Interest income. 243.9. 32.4. 318.3. 27.4. 52.5. 28.1. ( 16.0 ). 686.6. Insurance premiums. 846.5. 497.2. 819.6. 306.2. 311.3. 393.9. ( 24.6 ). 3,150.1. 79.4. 17.9. 55.3. 1.5. Share in result of associates and joint ventures. Dividend and other investment income. 6.8. 0.6. Realised capital gains (losses) on investments. 70.8. 16.2. Other realised and unrealised gains and losses. ( 3.3 ). ( 4.6 ). Fee and commission income. 13.1. 43.2. 64.3. 1.6. 0.7. 13.3. 5.5. 26.2. 5.3. 6.6. 0.9. 164.1. 1.2. 27.9. 2.8 25.5. 1.9. 156.4. ( 0.5 ). ( 3.7 ). 33.6. ( 6.8 ). 137.7. Income related to investments for unit-linked products Other income Total income. 462.2. 237.9. 104.8. 804.9. 6.9. 16.7. 12.6. 9.0. 10.1. 28.9. ( 9.4 ). 74.8. 1,702.2. 603.2. 1,560.4. 367.0. 530.0. 491.1. ( 56.8 ). 5,197.1. Expenses Interest expense. ( 86.9 ). ( 14.0 ). ( 37.1 ). ( 2.9 ). ( 3.6 ). ( 4.3 ). 15.7. ( 133.1 ). Insurance claims and benefits. ( 681.1 ). ( 313.7 ). ( 991.3 ). ( 195.1 ). ( 274.3 ). ( 314.3 ). 32.2. ( 2,737.6 ). Charges related to unit-linked products. ( 634.2 ). Change in impairments Fee and commission expense. ( 223.6 ). ( 5.4 ). ( 0.7 ). ( 2.1 ). ( 70.6 ). ( 123.8 ). ( 63.3 ). ( 159.9 ) ( 67.5 ). ( 1,017.7 ). 1.7. ( 1.9 ). ( 14.0 ). ( 71.4 ). ( 8.4 ) 6.8. ( 403.8 ). Depreciation and amortisation of tangible and. Other expenses Total expenses. ( 16.1 ). ( 1.4 ). ( 11.7 ). ( 6.4 ). ( 15.5 ). ( 2.0 ). ( 53.1 ). ( 40.4 ). ( 38.5 ). ( 51.1 ). ( 35.2 ). ( 10.7 ). ( 28.5 ). ( 204.4 ). ( 50.5 ). ( 22.0 ). ( 58.1 ). ( 26.9 ). ( 19.7 ). ( 22.0 ). 2.1. ( 197.1 ). ( 1,585.2 ). ( 514.1 ). ( 1,438.3 ). ( 334.0 ). ( 496.0 ). ( 444.4 ). 56.8. ( 4,755.2 ). 33.0. 34.0. 46.7. Profit before taxation. 117.0. Income tax expense. ( 26.7 ). ( 24.6 ). 90.3. 64.5. 110.2. Net profit for the period. 89.1. 122.1 ( 11.9 ). ( 11.1 ) 21.9. ( 5.2 ) 28.8. 441.9. ( 12.6 ). ( 92.1 ). 34.1. 349.8. Net profit attributable to minority interests. 0.8. 0.6. 0.1. 6.6. 2.5. 10.6. Net profit attributable to shareholders. 89.5. 64.5. 109.6. 21.8. 22.2. 31.6. 339.2. 1,654.7. 586.6. 1,519.2. 363.4. 528.7. 482.7. ( 26.2 ). 47.5. 16.6. 41.2. 3.6. 1.3. 8.4. ( 30.6 ). 88.0. 1,702.2. 603.2. 1,560.4. 367.0. 530.0. 491.1. ( 56.8 ). 5,197.1. Total income from external customers Total income internal Total income. 22. 5,109.1. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. intangible assets Staff expenses.

(23) Interim Financial Statements. First quarter 2005 Total Insurance Netherlands Life. Non-life. Insurance Belgium Life. Non-Life. Insurance International Life. Eliminations. Insurance. Non-Life. Income Interest income. 241.5. 39.4. 283.6. 28.7. 45.5. 26.4. ( 0.5 ). 664.6. Insurance premiums. 890.0. 503.6. 699.5. 285.6. 259.0. 380.5. ( 7.9 ). 3,010.3. ( 3.8 ). 143.6. 48.7. 3.2. 76.5. 16.0. 1.7. 1.3. Share in result of associates and joint ventures. Dividend and other investment income. 6.6. ( 0.9 ). 0.8. 0.2. 12.6. 3.5. 22.8. Realised capital gains (losses) on investments. 39.4. 5.9. 47.7. 5.7. 2.1. 1.0. 101.8. Other realised and unrealised gains and losses. 21.7. 8.2. ( 0.1 ). 20.2. 2.9. Fee and commission income. 4.5. ( 2.0 ) 31.5. ( 0.3 ) 25.4. 0.7. 28.2. 25.5. ( 1.6 ). 108.4. Income related to investments for unit-linked products Other income Total income. 251.7. 166.0. 68.8. 486.5. 54.1. 30.6. 13.0. 15.0. 9.6. 60.7. ( 7.0 ). 176.0. 1,558.2. 611.3. 1,315.5. 354.0. 424.4. 499.6. ( 20.8 ). 4,742.2. Expenses Interest expense. ( 78.0 ). ( 4.4 ). ( 24.2 ). ( 2.6 ). ( 5.9 ). ( 3.8 ). 0.5. ( 118.4 ). Insurance claims and benefits. ( 726.6 ). ( 348.3 ). ( 839.9 ). ( 172.2 ). ( 241.3 ). ( 338.6 ). 9.5. ( 2,657.4 ). Charges related to unit-linked products. ( 493.3 ). Change in impairments Fee and commission expense. ( 160.9 ). ( 95.1 ). ( 749.3 ). ( 2.0 ). ( 6.4 ). ( 0.5 ). ( 0.1 ). ( 1.4 ). 6.9. ( 37.6 ). ( 129.5 ). ( 36.1 ). ( 59.8 ). ( 12.0 ). ( 62.5 ). ( 3.5 ) 1.6. ( 335.9 ). ( 0.2 ). ( 206.1 ). Depreciation and amortisation of tangible and. Other expenses Total expenses Profit before taxation Income tax expense Net profit for the period. ( 10.2 ). ( 3.1 ). ( 11.4 ). ( 6.5 ). ( 18.2 ). ( 1.2 ). ( 42.0 ). ( 45.7 ). ( 49.7 ). ( 33.6 ). ( 10.5 ). ( 24.4 ). ( 10.1 ). ( 50.3 ). ( 22.7 ). ( 18.3 ). ( 26.6 ). 9.0. ( 188.4 ). ( 547.5 ) ( 1,173.0 ). ( 297.5 ). ( 402.7 ). ( 450.2 ). 20.4. ( 4,309.6 ). 56.5. 21.7. 49.4. ( 69.4 ) ( 1,459.1 ) 99.1. 63.8. 142.5. ( 25.6 ). ( 19.1 ). 73.5. 44.7. 103.0. ( 39.5 ). ( 17.9 ) 38.6. ( 2.7 ) 19.0. ( 50.6 ). ( 0.4 ). 432.6. ( 13.2 ). 0.1. ( 117.9 ). 36.2. ( 0.3 ). 314.7. Net profit attributable to minority interests. 0.8. 1.0. 0.2. 3.7. 3.8. Net profit attributable to shareholders. 72.7. 44.7. 102.0. 38.4. 15.3. 32.4. ( 0.3 ). 305.2. 1,527.9. 606.6. 1,288.2. 347.9. 422.3. 489.5. ( 13.1 ). 4,669.3. 30.3. 4.7. 27.3. 6.1. 2.1. 10.1. ( 7.7 ). 72.9. 1,558.2. 611.3. 1,315.5. 354.0. 424.4. 499.6. ( 20.8 ). 4,742.2. Total income from external customers Total income internal Total income. 9.5. 23. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. intangible assets Staff expenses.

(24) Interim Financial Statements. 3.8. Income statement of insurance: Life and Non-life First quarter 2006 Life. Non-life. Eliminations. Total. Income Interest income Insurance premiums Dividend and other investment income. 614.7. 87.9. ( 16.0 ). 686.6. 1,977.4. 1,197.3. ( 24.6 ). 3,150.1. 136.3. 20.1. Share in result of associates and joint ventures. 20.1. 6.1. 26.2. Realised capital gains (losses) on investments. 141.7. 22.4. 164.1. Other realised and unrealised gains and losses Fee and commission income Income related to investments for unit-linked products Other income Total income. 1.4 66.5. 156.4. ( 5.1 ). ( 3.7 ). 78.0. ( 6.8 ). 29.6. 54.6. ( 9.4 ). 74.8. 3,792.6. 1,461.3. ( 56.8 ). 5,197.1. 804.9. 137.7 804.9. Expenses ( 127.6 ). ( 21.2 ). 15.7. ( 133.1 ). Insurance claims and benefits. ( 1,946.7 ). ( 823.1 ). 32.2. ( 2,737.6 ). Charges related to unit-linked products. ( 1,017.7 ). Change in impairments. ( 1,017.7 ). ( 5.8 ). ( 2.6 ). ( 147.9 ). ( 262.7 ). ( 43.3 ). ( 9.8 ). Staff expenses. ( 102.2 ). ( 102.2 ). Other expenses. ( 128.3 ). ( 70.9 ). 2.1. ( 197.1 ). ( 3,519.5 ). ( 1,292.5 ). 56.8. ( 4,755.2 ). Fee and commission expense Depreciation and amortisation of tangible and intangible assets. Total expenses. ( 8.4 ) 6.8. ( 403.8 ) ( 53.1 ) ( 204.4 ). Profit before taxation. 273.1. 168.8. 441.9. Income tax expense. ( 43.8 ). ( 48.3 ). ( 92.1 ). Net profit for the period. 229.3. 120.5. 349.8. Net profit attibutable to minority interests. 8.0. 2.6. 10.6. Net profit attibutable to shareholders. 221.3. 117.9. 339.2. 3,702.6. 1,432.7. Total income from external customers Total income internal Total income. 24. ( 26.2 ). 5,109.1. 90.0. 28.6. ( 30.6 ). 88.0. 3,792.6. 1,461.3. ( 56.8 ). 5,197.1. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Interest expense.

(25) Interim Financial Statements. First quarter 2005 Life. Non-life. Eliminations. Total. Income Interest income Insurance premiums Dividend and other investment income. 570.6. 94.5. ( 0.5 ). 664.6. 1,848.5. 1,169.7. ( 7.9 ). 3,010.3. ( 3.8 ). 143.6. 126.9. 20.5. Share in result of associates and joint ventures. 20.0. 2.8. 22.8. Realised capital gains (losses) on investments. 89.2. 12.6. 101.8. Other realised and unrealised gains and losses. 29.6. ( 1.4 ). Fee and commission income. 50.1. 59.9. ( 1.6 ). 108.4. 76.7. 106.3. ( 7.0 ). 176.0. 3,298.1. 1,464.9. ( 20.8 ). 4,742.2. Income related to investments for unit-linked products Other income Total income. 28.2. 486.5. 486.5. Expenses Insurance claims and benefits Charges related to unit-linked products Change in impairments. ( 108.1 ). ( 10.8 ). 0.5. ( 118.4 ). ( 1,807.8 ). ( 859.1 ). 9.5. ( 2,657.4 ). ( 749.3 ) ( 3.9 ). ( 749.3 ) 0.4. ( 3.5 ). Fee and commission expense. ( 85.7 ). ( 251.8 ). Depreciation and amortisation of tangible and intangible assets. ( 39.8 ). ( 10.8 ). Staff expenses. ( 102.2 ). ( 103.7 ). ( 0.2 ). Other expenses. ( 138.0 ). ( 59.4 ). 9.0. ( 188.4 ). ( 3,034.8 ). ( 1,295.2 ). 20.4. ( 4,309.6 ). Total expenses Profit before taxation. 263.3. 169.7. Income tax expense. ( 67.8 ). ( 50.2 ). Net profit for the period. 195.5. 119.5. 1.6. ( 335.9 ) ( 50.6 ) ( 206.1 ). ( 0.4 ). 432.6. 0.1. ( 117.9 ). ( 0.3 ). 314.7. Net profit attibutable to minority interests. 5.5. 4.0. Net profit attibutable to shareholders. 190.0. 115.5. ( 0.3 ). 305.2. 3,238.4. 1,444.0. ( 13.1 ). 4,669.3. Total income from external customers Total income internal Total income. 9.5. 59.7. 20.9. ( 7.7 ). 72.9. 3,298.1. 1,464.9. ( 20.8 ). 4,742.2. 25. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Interest expense.

(26) Interim Financial Statements. 4. Earnings per share and changes in outstanding shares. The following table specifies the calculation of earnings per share (EPS). (number of shares in '000) Net profit attributable to shareholders. First quarter 2006. First quarter 2005. 1,327.5. 1,505.0. 18.5. 19.8. 1,346.0. 1,524.8. 1,285,990. 1,282,829. 39,685. 43,237. 3,788. 1,444. Elimination of interest expense on convertible debt (net of tax effect) Net profit used to determine diluted earnings per share Weighted average number of ordinary shares for basic earnings per share Adjustments for: - assumed conversion of convertible debt - share options Weighted average number of ordinary shares 1,329,463. 1,327,510. Basic earnings per share (in euros per share). for diluted earnings per share. 1.03. 1.17. Diluted earnings per share (in euros per share). 1.01. 1.15. In the first quarter of 2006 weighted average options on 2,150,187 shares (first quarter 2005: 12,341,023 shares) with weighted average exercise prices of EUR 33.96 per share (first quarter 2005: EUR 32.84 per share) were excluded from the calculation of diluted EPS because the exercise price of the options was higher than the average market price of the shares. During the first quarter of 2006 (like in the first quarter of 2005) no shares arising from convertible securities were excluded from the calculation of earnings per share because the interest per share saved on these securities was lower than the basic earnings per share.. Changes in outstanding Fortis shares. Number of outstanding shares Treasury shares Number of outstanding shares. 26. 31 March 2006. 31 December 2005. 1,340,822,545. 1,340,822,545. ( 52,453,277 ) 1,288,369,268. ( 57,212,183 ) 1,283,610,362. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. The following table shows the changes in the number of outstanding shares:.

(27) Interim Financial Statements. 5. Assets under management. Funds under management include the investment funds managed by Fortis and all assets of clients which are not on the balance sheet of Fortis and on which Fortis earns a management or advice fee. Assets which are kept in custody but where Fortis has no further involvement in, are excluded. The line intercompany elimination in the various tables is for the funds under management of customers invested in funds managed by Fortis that otherwise would be counted double. The following table provides a break down of assets under management by investment type and origin. General Banking. Insurance. (incl. eliminations). Total. 133,582.1. 45,957.9. 3,743.4. 9,440.0. 412.7. 2,459.4. 1,461.4. 1,158.0. ( 16.2 ). 2,603.2. 139,199.6. 59,015.3. ( 634.6 ). 197,580.3. 27,102.3. ( 281.2 ). 26,821.1. 31 March 2006 Investments for own account: - Debt securities - Equity securities - Real estate - Other. Unit-linked investments. ( 1,515.4 ) 897.0. 178,024.6 14,080.4 2,872.1. Funds under Management: - Debt securities. 105,337.8. 2,519.8. 107,857.6. - Equity securities. 86,063.2. 3,247.7. 89,310.9. 656.6. 2,047.4. - Real estate - Intercompany. Total assets under management. 2,704.0. ( 27,177.8 ). ( 27,177.8 ). 164,879.8. 7,814.9. 304,079.4. 93,932.5. 172,694.7 ( 915.8 ). 397,096.1. ( 1,529.3 ). 174,978.4. 31 December 2005 - Debt securities - Equity securities - Real estate - Other. 130,418.0. 46,089.7. 3,392.6. 8,448.0. 401.9. 2,144.4. 1,801.1. 1,109.4. ( 23.9 ). 2,886.6. 136,013.6. 57,791.5. ( 735.9 ). 193,069.2. 25,906.9. ( 240.2 ). 25,666.7. Unit-linked investments. 817.3. 12,657.9 2,546.3. Funds under Management: - Debt securities. 101,727.2. 2,969.4. 104,696.6. - Equity securities. 79,811.7. 2,603.3. 82,415.0. 1,044.7. 1,997.8. - Real estate - Intercompany. Total assets under management. 3,042.5. ( 25,660.6 ). ( 25,660.6 ). 156,923.0. 7,570.5. 292,936.6. 91,268.9. 164,493.5 ( 976.1 ). 383,229.4. 27. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Investments for own account:.

(28) Interim Financial Statements. The changes in the funds under management per segment are presented below:. Closing balance at 31 December 2005. Retail. Merchant. Commercial &. banking. banking. Private banking. Other. 110,590.1. 217.2. 69,826.7. 9,520.1. In/Out flow. 6,092.3. ( 8.0 ). Market gains / losses. 1,715.3. 15.7. 1,896.2. 224.9. 70,957.0. Other Balance at 31 March 2006. 182.3 118,580.0. 803.6 ( 1,569.5 ). Eliminations ( 25,660.6 ). Total 164,493.5. ( 711.7 ). ( 896.6 ). 5,279.6. 391.1. ( 587.9 ). 3,430.4. 911.1. ( 32.7 ). 10,110.6. ( 27,177.8 ). ( 508.8 ) 172,694.7. The column Other includes funds under management within the insurance segments as well as certain specific banking operations not included in the other banking segments. The line Other includes transfers between segments and currency translation differences. The transfers between segments consist for the main part of a transfer of funds. 28. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. of Belgolaise from Commercial & Private banking to Other banking..

(29) Interim Financial Statements. 6. Solvency. In addition to the solvency requirements set by the regulatory authorities, Fortis aims to maintain a certain consolidated solvency level, by setting lower and upper limits for the available net core capital. The lower limit (floor) is the sum of 6% of the risk-weighted commitments of the bank and 175% of the minimum qualifying capital requirements of the insurance subsidiaries. The upper limit is the sum of 7% of the risk-weighted commitments of the bank and 250% of the minimum qualifying capital requirements of the insurance subsidiaries.. Shareholders' equity Minority interests Hybrid loans Revaluation of real estate to fair value Revaluation of bonds, net of shadow accounting Reversal non trade derivatives and hedge accounting Goodwill Treasury shares. 31 March 2006. 31 December 2005. 19,701.4. 18,929.0. 709.2. 727.1. 4,092.4. 4,080.2. 1,718.1. 1,678.4. ( 1,422.9 ). ( 2,582.6 ). 569.6. 695.6. ( 771.1 ). ( 715.5 ). 211.3. 313.5. Net core capital. 24,808.0. 23,125.7. Fortis floor. 19,864.0. 19,299.5. 125%. 120%. Net core capital as percentage of Fortis floor. 29. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. The components of net core capital are:.

(30) Interim Financial Statements. 30. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Explanatory notes to the balance sheet.

(31) Interim Financial Statements. 7. Assets held for trading and liabilities held for trading. Assets held for trading The following table provides a specification of the assets held for trading. 31 March 2006. 31 December 2005. 3,364.7. 933.7. Trading securities: Treasury bills and other eligible bills Debt securities: - Government bonds. 7,453.9. 7,415.5. - Corporate debt securities. 7,384.5. 8,704.2. - Mortgage-backed securities. 2,185.2. 2,673.4. - Other asset-backed securities. 1,501.3. 1,177.0. Equity securities. 27,954.2. 17,987.1. Total trading securities. 49,843.8. 38,890.9. 23,768.2. 23,632.0. Derivative financial instruments Over the counter (OTC) Exchange traded Total derivative financial instruments Other assets held for trading Total assets held for trading. 282.3. 157.3. 24,050.5. 23,789.3. 297.4. 24.8. 74,191.7. 62,705.0. 31 March 2006. 31 December 2005. 43,160.7. 25,452.3. Liabilities held for trading. Short security sales Other liabilities held for trading. 288.1. 306.6. Derivative financial instruments. 22,385.8. 24,803.3. Total. 65,834.6. 50,562.2. 31. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. The table below shows the composition of liabilities held for trading..

(32) Interim Financial Statements. 8. Due from banks. Due from banks consists of the following: General Banking. Insurance. (incl. eliminations). Total. 31 March 2006 Interest-bearing deposits. 6,542.7. 277.8. ( 21.1 ). Loans and advances. 3,065.0. 921.6. ( 240.5 ). Reverse repurchase agreements. 43,966.0. Securities lending transactions. 28,619.7. Mandatory reserve deposits with central banks. 5,007.5. Held at fair value through profit or loss. 2,075.1. Other Total due from banks. 6,799.4 3,746.1 43,966.0. 2,261.9. ( 2,261.9 ). 28,619.7 5,007.5 2,075.1. 993.8. 149.1. ( 137.8 ). 1,005.1. 90,269.8. 3,610.4. ( 2,661.3 ). 91,218.9. Less impairments: - Specific credit risk. ( 17.9 ). ( 17.9 ). - Incurred but not reported. ( 14.1 ). ( 14.1 ). Net due from banks. 90,237.8. 3,610.4. ( 2,661.3 ). 91,186.9. Interest-bearing deposits. 4,159.1. 355.9. ( 125.4 ). 4,389.6. Loans and advances. 2,282.3. 951.4. ( 245.6 ). 31 December 2005. Reverse repurchase agreements. 55,831.5. Securities lending transactions. 13,784.9. Mandatory reserve deposits with central banks. 2,178.7. Held at fair value through profit or loss. 1,478.4. Other Total due from banks. 2,988.1 55,831.5. 2,261.9. ( 2,261.9 ). 13,784.9 2,178.7 1,478.4. 371.8. 147.8. ( 136.4 ). 383.2. 80,086.7. 3,717.0. ( 2,769.3 ). 81,034.4. Less impairments: - Specific credit risk. ( 18.2 ). - Incurred but not reported. ( 14.3 ). Net due from banks. 80,054.2. ( 18.2 ) ( 14.3 ) 3,717.0. ( 2,769.3 ). 81,001.9. EUR 5.5 million for incurred but not reported losses (31 December 2005: EUR 0.3 million and EUR 5.5 million, respectively).. 32. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. The provisions for credit commitments banks at 31 March 2006 are EUR 0.3 million for specific credit losses and.

(33) Interim Financial Statements. 9. Due from customers. The composition of due from customers is as follows: General Banking. Insurance. (incl. eliminations). 6,483.9. 537.4. 1.5. 83,116.3. 4,429.9. Total. 31 March 2006 Government and official institutions Residential mortgage Consumer loans Commercial loans. 9,783.2. 379.9. 97,940.9. 1,653.8. 7,022.8 87,546.2. 0.1. 10,163.2. ( 1,915.3 ). 97,679.4. Reverse repurchase agreements. 60,186.6. ( 1,413.4 ). 58,773.2. Securities lending transactions. 24,049.5. ( 2,200.0 ). 21,849.5. Policyholder loans. 118.0. 118.0. Finance lease receivables. 8,521.9. 70.6. 0.1. 8,592.6. Other loans. 1,746.6. 438.5. ( 76.5 ). 2,108.6. Loans available for sale Held at fair value through profit or loss Fair value adjustment from hedge accounting Total due from customers. 205.8. 205.8. 1,134.5. 1,134.5. ( 365.9 ) 292,803.3. ( 365.9 ) 7,628.1. ( 5,603.5 ). 294,827.9. Less impairments: - Specific credit risk - Incurred but not reported Net due from customers. ( 1,995.3 ). ( 38.8 ). ( 0.1 ). ( 326.2 ). ( 46.0 ). ( 0.1 ). 290,481.8. 7,543.3. ( 5,603.7 ). ( 2,034.2 ) ( 372.3 ) 292,421.4. 31 December 2005 7,781.3. 572.8. 80,097.9. 4,463.1. 9,431.1. 386.9. ( 0.1 ). 9,817.9. Commercial loans. 93,645.9. 1,662.2. ( 1,042.3 ). 94,265.8. Reverse repurchase agreements. 61,073.9. Securities lending transactions. 17,307.5. Residential mortgage Consumer loans. Policyholder loans. 0.8. 1.6. 8,355.7 84,561.0. ( 1,417.3 ). 59,656.6. ( 2,200.0 ). 15,108.3. 119.3. 119.3. Finance lease receivables. 7,825.1. 71.0. ( 0.1 ). 7,896.0. Other loans. 1,710.9. 440.9. ( 77.1 ). 2,074.7. Loans available for sale Held at fair value through profit or loss Fair value adjustment from hedge accounting Total due from customers. 56.1. 56.1. 1,139.3. 1,139.3. 164.5. 164.5. 280,233.5. 7,717.0. ( 4,735.3 ). 283,215.2. Less impairments: - Specific credit risk - Incurred but not reported Net due from customers. ( 2,064.5 ). ( 37.8 ). ( 306.8 ). ( 46.8 ). 277,862.2. 7,632.4. ( 2,102.3 ) ( 353.6 ) ( 4,735.3 ). 280,759.3. The provisions for credit commitments due from customers at 31 March 2006 are EUR 151.0 million for specific credit losses and EUR 82.2 million for incurred but not reported losses (31 December 2005: EUR 142.4 million and EUR 82.2 million, respectively).. 33. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Government and official institutions.

(34) Interim Financial Statements. 10. Investments. The composition of investments is as follows: General Banking. Insurance. (incl. eliminations). Total. 31 March 2006 - Held to maturity - Available for sale - Held at fair value through profit or loss - Investment property - Investments in associates and joint ventures Total, gross Impairments Total. 5,302.9. ( 700.0 ). 4,602.9. 54,046.5. ( 548.2 ). 182,496.8. 3,414.2. 2,285.0. 630.0. 416.2. 2,515.6. 128,998.5. ( 0.1 ). 6,329.2 2,931.7. 1,176.6. 508.7. ( 16.3 ). 1,669.0. 139,308.4. 59,355.8. ( 634.6 ). 198,029.6. ( 634.6 ). 197,580.3. ( 108.8 ) 139,199.6. ( 340.5 ) 59,015.3. ( 449.3 ). 31 December 2005 - Available for sale - Held at fair value through profit or loss - Investment property - Investments in associates and joint ventures Total, gross Impairments Total. 34. 5,369.3. ( 700.0 ). 4,669.3. 53,240.5. ( 602.0 ). 179,453.8. 2,289.5. 2,247.5. 590.2. 5,127.2. 405.4. 2,206.7. 0.1. 2,612.2. 126,815.3. 1,254.4. 475.7. ( 23.8 ). 1,706.3. 136,133.9. 58,170.4. ( 735.5 ). 193,568.8. ( 120.3 ) 136,013.6. ( 378.9 ) 57,791.5. ( 0.4 ) ( 735.9 ). ( 499.6 ) 193,069.2. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. - Held to maturity.

(35) Interim Financial Statements. 10.1. Investments available for sale. The fair value and amortised cost of Fortis’s investments available for sale including gross unrealised gains and gross unrealised losses were as follows: Fair value Historical/. Gross. Gross. adjustments. amortised. positive. negative. from hedge. cost. revaluations. revaluations. accounting. Fair Impairments. values. 31 March 2006 Treasury bills and other eligible bills. 741.9. 0.9. ( 4.1 ). 92,369.3. 2,489.8. ( 564.3 ). Corporate debt securities. 40,948.0. 1,016.4. ( 436.5 ). 8.9. ( 2.8 ). 41,534.0. Mortgage-backed securities. 13,445.9. 41.3. ( 14.5 ). ( 0.4 ). ( 3.1 ). 13,469.2. Other asset-backed securities. 18,978.4. 118.1. ( 48.9 ). ( 10.5 ). ( 16.6 ). 19,020.5. 500.8. 114.8. ( 47.9 ). 1.3. ( 17.5 ). 551.5. 8,693.6. 3,088.7. ( 214.5 ). 26.0. ( 303.0 ). 11,290.8. ( 42.1 ). 1,519.9. ( 282.4 ). ( 389.8 ). 182,107.0. Government bonds. Private equities and venture capital Other equity securities Other investments Total. 1,267.7. 302.0. ( 7.7 ). 176,945.6. 7,172.0. ( 1,338.4 ). 503.9. 0.5. ( 0.5 ). 738.7 ( 307.7 ). ( 4.7 ). 93,982.4. 31 December 2005 503.9. Government bonds. 91,209.4. 3,827.4. ( 122.1 ). ( 75.1 ). ( 4.7 ). Corporate debt securities. 39,037.6. 1,275.2. ( 154.0 ). 29.0. ( 5.3 ). 40,182.5. Mortgage-backed securities. 13,478.7. 46.2. ( 6.9 ). ( 7.8 ). 13,510.2. Other asset-backed securities. 17,601.6. 110.5. ( 32.7 ). ( 16.6 ). 17,657.7. 335.9. 74.7. ( 8.7 ). 8,342.3. 2,255.3. ( 199.8 ). Private equities and venture capital Other equity securities Other investments Total. 1,589.1. 306.8. ( 2.6 ). 172,098.5. 7,896.6. ( 527.3 ). ( 5.1 ). 94,834.9. ( 16.8 ). 385.1. 37.2. ( 334.2 ). 10,100.8. ( 48.3 ). 1,845.0. ( 14.0 ). ( 433.7 ). 179,020.1. 35. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Treasury bills and other eligible bills.

(36) Interim Financial Statements. 10.2. Investments held at fair value through profit or loss. The following table provides information about the investments that are held at fair value and for which unrealised gains or losses are recorded through profit or loss. General (incl. eliminations). Total. Banking. Insurance. 51.6. 322.7. ( 50.0 ). 324.3. 1,921.0. ( 255.0 ). 4,026.5. 935.0. 1,029.9. 630.0. 6,329.2. 31 March 2006 Government bonds Corporate debt securities Mortgage-backed securities Other asset-backed securities Private equities and venture capital Other equity securities Other investments Total investments held at fair value through profit or loss. 38.8. 38.8. 287.3 2,360.5. 287.3. 533.3. 533.3. 94.9 86.6. 2.5. 3,414.2. 2,285.0. 89.1. 45.1. 45.1. 15.7. 282.0. 297.7. 31 December 2005 Corporate debt securities Mortgage-backed securities Other asset-backed securities Private equities and venture capital. 70.5 1,521.3. 70.5 1,920.4. ( 255.0 ). 498.1. 3,186.7 498.1. Other equity securities. 97.3. 845.1. Other investments. 86.6. 0.1. 86.7. 590.2. 5,127.2. Total investments held at fair value through profit or loss. 36. 2,289.5. 2,247.5. 942.4. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Government bonds.

(37) Interim Financial Statements. 10.3. Land and buildings. The fair value of real estate - held as an investment as well as for own use - of the banking and insurance businesses is set out below. Banking. Insurance. Total. 31 March 2006 Fair values: Investment property. 480.0. 4,064.1. 4,544.1. Real estate for own use. 1,815.6. 1,503.9. 3,319.5. Total. 2,295.6. 5,568.0. 7,863.6. Book value. 1,874.6. 3,510.8. 5,385.4. 421.0. 2,057.2. 2,478.2. Gross unrealised gain/loss Taxation. ( 623.8 ). ( 760.0 ). 284.8. 1,433.4. 1,718.2. 472.3. 3,751.2. 4,223.5. Real estate for own use. 1,774.6. 1,534.8. 3,309.4. Total. 2,246.9. 5,286.0. 7,532.9. Book value. 1,887.5. 3,219.3. 5,106.8. 359.4. 2,066.7. 2,426.1. Net unrealised gain/loss (not recognised in equity). ( 136.2 ). 31 December 2005 Investment property. Gross unrealised gain/loss Taxation Net unrealised gain/loss (not recognised in equity). ( 121.5 ) 237.9. ( 626.2 ). ( 747.7 ). 1,440.5. 1,678.4. 37. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Fair values:.

(38) Interim Financial Statements. 11. Due to banks. The table below shows the components of due to banks. General Banking. Insurance. (incl. eliminations). Total. 31 March 2006 Deposits from banks: On demand. 7,658.6. 1,200.2. ( 1,246.9 ). 7,611.9. 84,672.6. 13.4. ( 13.4 ). 84,672.6. 128.8. 63.6. ( 3.7 ). 188.7. Total deposits. 92,460.0. 1,277.2. ( 1,264.0 ). 92,473.2. Repurchase agreements. 72,474.0. 1,369.1. ( 1,369.1 ). 72,474.0. Securities lending. 14,063.4 2,306.2. ( 2,244.3 ). 8,131.8. Time deposits Other deposits. 14,063.4. Advances against collateral. 8,069.9. Held at fair value through profit or loss. 1,006.3. Other. 2,260.6. 120.1. ( 23.4 ). 2,357.3. Total. 190,334.2. 5,072.6. ( 4,900.8 ). 190,506.0. 6,062.5. 927.2. ( 721.4 ). 6,268.3. ( 6.3 ). 69,768.1. 1,006.3. 31 December 2005 Deposits from banks: Time deposits Other deposits. 69,774.4 59.8. 51.8. ( 4.0 ). 107.6. Total deposits. 75,896.7. 979.0. ( 731.7 ). 76,144.0. Repurchase agreements. 73,298.7. 1,319.0. ( 1,319.0 ). 73,298.7. Securities lending. 11,536.9. Advances against collateral. 10,000.0. 2,365.3. ( 2,303.4 ). 10,061.9. 11,536.9. Held at fair value through profit or loss. 1,833.1. Other. 2,214.6. 119.5. ( 25.7 ). 2,308.4. Total. 174,780.0. 4,782.8. ( 4,379.8 ). 175,183.0. 38. 1,833.1. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. On demand.

(39) Interim Financial Statements. 12. Due to customers. The components of due to customers are as follows: General Banking. Insurance. (incl. eliminations). Total. 31 March 2006 Demand deposits. 78,303.6. Saving deposits. 59,818.2. 0.8. ( 0.2 ). 59,818.8. Time deposits. 67,925.6. 50.3. ( 3,049.7 ). 64,926.2. 738.3. 9.0. ( 0.1 ). 747.2. 206,785.7. 60.1. ( 8,803.1 ). 198,042.7. Other deposits Total deposits Repurchase agreements. 64,556.0. Securities lending. 5,088.2. Other borrowings. 625.9. Funds held under reinsurance agreements Held at fair value through profit or loss Total. ( 5,753.1 ). 64,556.0 5,088.2 3.9. 4,311.8. 4,941.6. 1,875.0. 3,317.2. 223.1 1,442.2 278,498.0. 72,550.5. 287.1. 223.1 ( 2,616.3 ). 276,168.8. ( 7,964.9 ). 65,511.8. 31 December 2005 Demand deposits. 73,476.7. Saving deposits. 58,051.2. 0.9. ( 0.2 ). 58,051.9. Time deposits. 60,209.2. 6.0. ( 2,918.5 ). 57,296.7. Total deposits Repurchase agreements. 648.9. 8.5. ( 0.1 ). 657.3. 192,386.0. 15.4. ( 10,883.7 ). 181,517.7. 67,363.8. Securities lending. 2,270.8. Other borrowings. 493.8. Funds held under reinsurance agreements Held at fair value through profit or loss Total. 67,363.8 2,270.8 3.3. 4,349.7. 4,846.8. 2,081.2. 2,851.6. 213.1 770.4 263,284.8. 231.8. 213.1 ( 4,452.8 ). 259,063.8. 39. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Other deposits.

(40) Interim Financial Statements. 13. Liabilities arising from insurance and investment contracts. The following table provides an overview of the liabilities arising from insurance and investment contracts. Insurance. Investments. Total. Non-life. Other (incl.. contracts. with DPF. Life products. products. eliminations). 35,569.9. 14,084.6. 49,654.5. Total. 31 March 2006 Liability for future policyholder benefits. ( 1,891.2 ). 47,763.3. Claims reserves. 6,421.5. 29.5. 6,451.0. Unearned premiums. 1,825.3. 2.1. 1,827.4. Reserve for policyholder profit sharing. 140.8. 60.0. 200.8. Shadow accounting adjustment. 622.8. 136.4. 759.2. 3.1. ( 184.9 ). 577.4. 36,333.5. 14,281.0. 50,614.5. 8,249.9. ( 2,044.5 ). 56,819.9. Gross Reinsurance Net. ( 234.2 ). ( 234.2 ). 36,099.3. 14,281.0. 50,380.3. 35,303.4. 13,663.2. 48,966.6. 200.8. ( 978.2 ) 7,271.7. ( 1,212.4 ) ( 2,044.5 ). 55,607.5. ( 1,890.2 ). 47,076.4. 31 December 2005 Claims reserves. 6,442.7. ( 23.3 ). 6,419.4. Unearned premiums. 1,408.8. ( 1.0 ). 1,407.8. Reserve for policyholder profit sharing. 137.7. 72.0. 209.7. 0.2. Shadow accounting adjustment. 927.7. 237.9. 1,165.6. 17.6. ( 188.0 ). 995.2. 36,368.8. 13,973.1. 50,341.9. 7,869.3. ( 2,102.5 ). 56,108.7. ( 2,102.5 ). 54,941.2. Gross Reinsurance Net. 40. ( 231.2 ) 36,137.6. ( 231.2 ) 13,973.1. 50,110.7. 209.9. ( 936.3 ) 6,933.0. ( 1,167.5 ). WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Liability for future policyholder benefits.

(41) Interim Financial Statements. 41. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Explanatory notes to the income statement.

(42) Interim Financial Statements. 14. Interest income. The breakdown of interest income by type of product is as follows: General Banking. Insurance. (incl. eliminations). Total. First quarter 2006. Interest income Interest income on cash equivalents. 160.9. 8.9. ( 18.0 ). 151.8. Interest income on due from banks. 1,393.9. 32.1. ( 29.7 ). 1,396.3. Interest income on investments. 1,263.3. 484.9. ( 21.6 ). 1,726.6. Interest income on due from customers. 3,452.6. 129.0. ( 42.6 ). 3,539.0. Other interest income. 9,855.4. 31.7. ( 71.7 ). 9,815.4. 16,126.1. 686.6. ( 183.6 ). 16,629.1. Total interest income First quarter 2005. Interest income Interest income on cash equivalents. 83.8. 8.6. ( 9.0 ). 83.4. Interest income on due from banks. 697.0. 33.5. ( 31.0 ). 699.5. Interest income on investments. 1,076.2. 463.0. ( 24.0 ). 1,515.2. Interest income on due from customers. 2,652.2. 136.9. ( 14.6 ). 2,774.5. Other interest income. 12,054.3. 22.6. ( 48.3 ). 12,028.6. Total interest income. 16,563.5. 664.6. ( 126.9 ). 17,101.2. 42. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Other interest income mainly relates to interest income on derivatives..

(43) Interim Financial Statements. 15. Realised capital gains and losses on investments. Realised capital gains and losses on investments may be specified further as follows: General Banking. Insurance. (incl. eliminations). Total. First quarter 2006 Debt securities. 31.6. Equity securities. 207.9. 120.2. Real estate. 3.6. 56.8. Subsidiaries, associates and joint ventures. 5.8. Other Realised capital gains (losses) on investments. 248.9. ( 16.6 ). 15.0 ( 10.0 ). 318.1 60.4 5.8. 3.7. ( 0.1 ). 3.6. 164.1. ( 10.1 ). 402.9. ( 0.0 ). 367.9. First quarter 2005 358.0. 9.9. Equity securities. 4.7. 64.0. Real estate. 0.7. 28.3. Subsidiaries, associates and joint ventures. 23.0. Other Realised capital gains (losses) on investments. ( 0.1 ). 68.7 29.0 442.7. ( 0.3 ) 386.4. 101.8. 465.6 ( 0.3 ). 442.7. 930.9. 43. WorldReginfo - 079102d1-12de-4767-a11a-3011817ed4cb. Debt securities.