Financial and Operational Review Brussels/Utrecht, 11 May 2007

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(1)Financial and Operational Review. First quarter 2007 results. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Brussels/Utrecht, 11 May 2007.

(2) 2. Q1 2007 results at a glance Net profit before results on divestments (in EUR million) Banking. Insurance. 5,000. 3,498. 3,000. 2,410. 1,225. 2,000. 1,127. Workforce (FTEs, x1,000). 30%. General 4,351. 4,000. In Benelux. 60 54. 20% 50 15%. 2,434. 1,167 352. 1,589. 903. 0. Outside Benelux. 70. 25%. 1,419. 3,150 1,000. Net profit outside Benelux (in %). 28%. 10%. 18%. 49. 59. 57. 10. 16. 19. 21. 39. 38. 38. 38. 2004. 2005. 2006. Q1 '07. 40 30. 21%. 15%. 20. 5% 10. (306). (161). (218). (88). 2004. 2005. 2006. Q1 '07. 0%. (1,000). Net profit per share (in EUR). 0. 2004. 2005. 2006. Q1 '07. Shareholders' equity per share (in EUR). 4.0. 18. 3.5. 16. Return on equity (in %) 24% 23% 23%. 14. 3.0. 22% 12. 2.5. 22%. 10. 21%. 2.0 6. 2.35. 1.0 0.5. 0.90. 14.75. 15.98. 16.68. 11.97. 20%. 4. 20%. 2. 19%. 0. 0.0. 2004. 2005. 2006. Q1 '07. Financial ratios (in %) Cost/income ratio Bank. Combined ratio Non-Life. 2005. 2006. Q1 '07. 99.3. 96.0. 20%. 2004. 2005. Actual equity. 14. 69.5. 61.2. 10. 60.7. 6000%. 6. 20. 15 13 10. 4000%. 4. 2000%. 2. 0%. 0. 2004. 2005. 2006. Target core equity. 101.2. 96.1. 8 62.3. Q1 '07. 25. 19.5 8000%. 2006. Solvency (in EUR billion). 12. 10000%. 22%. 22%. 19%. 2004. Credit loss ratio (in %). 12000%. 23%. 21%. Q1 '07. 20.3. 17.7. 19.2. 2006. Q1 '07. 10 7 5. 5. 0. 2004. 2005. 2006. Q1 '07. 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 44.6 billion (31/03/2007), 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.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. 3.07. 1.5. 8. 3.38.

(3) 3. Contents Q1 2007 results at a glance. 2. 1. 1.1. 1.2. 1.3. 1.4.. Fortis Income Statement Analysis FTE Development Strategic and operational developments Solvency. 5 5 6 7 7. 2. 2.1. 2.2. 2.3.. Banking Retail Banking Merchant & Private Banking Other Banking (including eliminations). 9 13 20 25. 3. 3.1. 3.2. 3.3.. Insurance Insurance Belgium Insurance Netherlands Insurance International. 27 31 35 39. 4.. General (including eliminations). 44 45. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Annexes - Quarterly Figures.

(4) 4. Fortis Sustained commercial momentum across Banking and Insurance sees strong start to 2007 Robust first quarter result at EUR 1.2 billion. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Brussels/Utrecht, 11 May 2007.

(5) 5. 1. Fortis Income Statement Key figures Fortis in EUR million Q1 2006. Q1 2007. Change. Q1 2007. Q4 2006. Change. 1,167. 1,328. (12%). 1,167. 750. 56%. - Banking. 903. 1,036. (13%). 903. 506. 79%. - Insurance. 352. 339. 4%. 352. 332. 6%. - General (incl eliminations). (88). (47). 86%. (88). (88). (0%). -. -. *. -. -. *. Net profit attributable to shareholders. 1,167. 1,328. (12%). 1,167. 750. 56%. Weighted average number of ordinary shares (in million). 1,292. 1,286. 0%. 1,292. 1,289. 0%. 0.90. 1.03. (13%). 0.90. 0.58. 55%. 0.90. 1.03. (13%). 0.90. 0.58. 55%. 9%. 16.68. 15.98. 4%. -. -. Net profit attributable to shareholders before results on divestments. Results on divestments. EPS (in EUR) - Before results on divestments Net Equity per share (in EUR) Return on equity. 16.68 20.3%. 15.29 (1). 22.0%. (2). (1) Rolling average, based on last four quarters, excluding results on divestments. (2) Refers to Full Year 2006.. 1.1. Analysis. Net profi t Banking Net profit at Banking amounted to EUR 903 million in the first quarter, a decrease of EUR 133 million or 13% versus the same quarter of last year but an increase of EUR 397 million or 79% on the previous quarter. The first quarter of last year benefited from a significant change in the fair value of a non-qualifying hedge of EUR 170 million pre-tax, or EUR 120 million after tax. Excluding this exceptional element, Banking gave a repeat performance of last year’s outstanding first quarter, while realising lower capital gains. These strong results were achieved on the back of steady growth of the top line – after neutralisation of the macro hedge impact – driven by commercial activity, continued low changes in impairments and a lower effective tax rate. Expenses rose, mainly reflecting the continuation of growth investments initiated in 2006. Compared to the previous quarter, further progression in the top line and lower changes in impairments largely contributed. to the steep rise in net profit. In line with earlier indications, first-quarter expenses came in lower than the previous quarter, which featured a number of one-off elements. Net profi t Insurance Fortis Insurance turned in a strong performance in the first quarter of 2007. Compared with the same period last year, net profit climbed 4%, to EUR 352 million. Solid results were posted at Life, while the Non-Life net result came down as a result of the Windstorm Kyrill, which swept through Europe in January 2007. At Life, strong inflows contributed to higher total Life reserves (up 9% compared with the first quarter of 2006). A subsequently higher investment result and an improved risk margin fuelled growth of the operating margin by 13% to EUR 206 million. A higher contribution from joint ventures and a lower effective tax rate contributed to the 22% rise in net profit to EUR 271 million. The Non-Life technical result decreased 51% to EUR 71 million, mainly due to Windstorm Kyrill, driving the decrease in Non-Life net profit by 32% to EUR 81 million. Excluding the effects of the storm (EUR 86 million pre-tax), the technical result developed favourably (up 9%), thanks to higher premiums and continued strong underwriting results.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Net profi t Fortis Net profit before results on divestments in the first quarter 2007 reached EUR 1,167 million compared to EUR 1,328 million in the same period in 2006. Lower results at Banking, largely explained by the positive impact of the non-qualifying hedge in the first quarter of 2006, and at General were partly offset by slightly higher results at Insurance leading to a 12% decrease in net profit..

(6) 6. Compared with the last quarter of 2006, first-quarter net profit increased 6%, driven by Life and offset by typical seasonal factors at Non-Life. Operating costs increased 3%, including a reclassification. Excluding the latter, operating costs increased by 7%, due to costs of business expansion and various growth initiatives. Net profi t General The net negative result for the first quarter of 2007 came to EUR 88 million, up by EUR 41 million from last year. Higher financing charges and negative fair value changes, partly offset by lower eliminations of treasury shares and higher tax credits, explain the lower result. The acquisition of the Fortis Bank Insurance shares from Fortis Bank Belgium in the context of the Fortis Insurance Belgium merger account for the higher financing charges. The merger and the related share transfer occurred on the. last day of the first quarter of 2006 and, accordingly, did not impact the 2006 first quarter results. Negative fair value changes relate to the mandatory exchangeable bond (MEB) convertible into Assurant shares and reflect underlying stock price volatility leading to a negative contribution of EUR 8 million in the first quarter of 2007 compared to a positive impact of EUR 31 million in the same period last year. Going forward at current stock prices, the fair value would vary by about 3 million for each dollar variation of the underlying Assurant stock price. This estimate is only relevant at the current stock price, excludes current currency exchange effects and other volatility (time value) effects. The first quarter net result ended up at about the same level as the fourth quarter of last year. The absence of a one-off loan surrender penalty and unfavourable fair value changes offset lower net cost levels.. 1.2. FTE Development FTEs FY 2006. 45,359. 43,575. 4%. - Retail Banking. 19,142. 17,030. 12%. - Merchant & Private Banking. 14,945. 14,330. 4%. - Other Banking. 11,272. 12,215. (8%). Insurance. 13,643. 13,106. 4%. - Belgium. 5,032. 5,182. (3%). - Netherlands. 4,387. 4,210. 4%. - International. 4,224. 3,714. 14%. 193. 205. (6%). 59,195. 56,886. 4%. - Benelux. 65%. 67%. - Outside Benelux. 35%. 33%. General Fortis Total. Fortis continued to be a net hirer in the first quarter of 2007, when 3,963 employees joined the company and 1,654 FTEs left the company. Acquisitions contributed 1,444 to the growth of the amount of FTE’s of which the Dominet acquisition in Poland with around 900 FTE’s was the most important one. At the end of March 2007, 35 % of the workforce was based outside the Benelux countries.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Change. Q1 2007 Banking.

(7) 7. 1.3. Strategic and operational developments Fortis continued to make progress executing its growth strategy in the first quarter of 2007. Its aim is to generate 30% of net profit outside the Benelux countries by 2009; this figure amounted to 28% in the first quarter of 2007. One way Fortis focuses on customers is by internationally leveraging its core skills developed in the Benelux region. Organic and nonorganic growth initiatives are described below.. Insurance, a Hong Kong-based major life insurer. PCI has more than 280 employees and over 2,000 tied agents, the fifth largest agency sales force in Hong Kong. The acquisition will accelerate Fortis’s growth in Asia and creates a strong platform combining PCI’s highly talented and motivated agency force with Fortis’s insurance product expertise, distribution skills and international experience.. 1.4. Solvency Retail Banking finalised the acquisition of Dominet, the Polish retail bank specialised in car finance and cash loans. On 18 April the Irish Financial Regulator granted a banking licence to An Post Financial Services, the joint venture between Fortis and An Post, clearing the way for a start-up in May. In January, Merchant & Private Banking announced the acquisition of Captive Finance Limited by Fortis Lease Group. This transaction is an important milestone for Fortis Lease in its strategy to build a truly international network in the leasing sector. The deal gives Fortis Lease a foothold in seven new markets (Malaysia, Singapore, Hong Kong, Norway, Denmark, Finland and Sweden), bringing its presence to a total of 22 countries. Fortis Insurance strengthened its presence in Asia in March 2007 with the acquisition of a majority stake in Pacific Century. Introduction As mentioned in the Financial and Operational Review of the fourth quarter of 2006, Fortis has introduced a new targetbased model to manage and communicate solvency. The new model consists of three components: • A capital target for Fortis Bank equal to a Tier 1 ratio of 7%, including 1% hybrid capital. This implies a core equity target of 6%; • 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%; • 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 equity could be financed by group debt.. Key Capital Indicators Q1 2007. FY 2006. Core equity. 20,299. 19,532. Core equity target. 19,162. 17,733. Amount of core equity above target Group leverage on core equity. 1,137. 1,799. 15.1%. 15.5%. Total available capital. 33,153. 31,781. Minimum solvency requirements. 24,897. 22,898. 8,256. 8,884. Amount of Total capital above minimum solvency requirements. Fortis Bank Total risk bearing capital Risk-weighted commitments. Core Tier 1 ratio. 27,633. 26,664. 262,828. 240,104. 5.6%. 6.0%. 6.5%. 7.1%. 10.5%. 11.1%. 10,392. 9,935. 3,871. 3,689. Core Solvency ratio. 236.8%. 233.3%. Total solvency ratio. 268.5%. 269.3%. Tier 1 ratio Total capital ratio. Fortis Insurance Total risk-bearing capital Regulatory Minimum Margin. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Fortis Group.

(8) 8. Fortis Group Fortis's core equity increased by EUR 0.8 billion to EUR 20.3 billion. The main reason for the rise was the first quarter net profit of EUR 1.2 billion, offset by the goodwill paid for Dominet (EUR 0.2 billion) and the one-off negative impact of the revision to the rules of Belgium’s Banking, Finance and Insurance Commission (BFIC) (EUR 0.3 billion). The core equity target increased by EUR 1.4 billion to EUR 19.2 billion driven by a 9% increase in risk-weighted banking commitments and a 5% increase in the required minimum for insurance. Risk-weighted commitments growth is traditionally the strongest in the first quarter. This resulted in an amount of EUR 1.1 billion in excess of the core equity target at the end of the first quarter, compared to EUR 1.8 billion at the end of the fourth quarter of 2006. Group leverage decreased slightly to 15.1% due to stable group debt while the core equity of the group increased. Fortis Bank The Tier 1 ratio of Fortis Bank decreased from 7.1% to 6.5%. The positive effect of first quarter net profit (EUR 0.9 billion) was more than offset by a 9% increase in risk-weighted. commitments, goodwill paid for Dominet (EUR 0.2 billion on core equity) and the one-off negative impact of revised BFIC rules (EUR 0.3 billion on core equity). The increase in risk-weighted commitments by 9% or EUR 22.7 billion to EUR 262.8 billion was driven mainly by strong growth in lending activities and committed credit lines. The total capital ratio remained strong at 10.5% supported by a EUR 0.5 billion Lower Tier 2 benchmark issue. Traditionally, the growth in the risk-weighted commitments in the first quarter is always relatively high. Low risk-weighted commitments growth in the next quarters combined with the retained earnings will restore the Tier 1 ratio to the targeted 7% by the end of 2007. Fortis Insurance The total solvency ratio of Fortis Insurance’s activities edged down from 270% to 268.5%. The increase in total capital driven by net profit (EUR 0.4 billion) was offset by the 5% rise in the required minimum.. Fortis Capital Composition in EUR million. Fortis Share Capital & Reserves Net profit attributable to shareholders Unrealised gains and losses Shareholders' Equity Fresh Minority Interests - Revaluation of real estate to fair value. Bank. Insurance. General. FY 2006. Q1 2007. FY 2006. Q1 2007. FY 2006. Q1 2007. FY 2006. 12,275. 12,264. 12,568. 12,593. 4,031. 4,020. (4,324). (4,348). 5,518. 4,351. 4,052. 3,149. 1,771. 1,419. (305). (217). 3,770. 4,029. 657. 924. 2,933. 2,923. 180. 182. 21,563. 20,644. 17,277. 16,666. 8,735. 8,362. (4,449). (4,383). 1,123. 1,108. -. -. -. -. 1,123. 1,108. 907. 907. 214. 198. 661. 678. 32. 31. 1,483. 1,465. -. -. 1,483. 1,465. -. -. - Revaluation of debt securities, net of tax. (345). (672). (15). (176). (320). (477). (10). (19). - Revaluation of equity securities, net of tax. (869). (967). (613). (721). (244). (234). (12). (12). - Goodwill. (1,216). (1,017). (981). (749). (235). (269). -. -. - Expected dividend. (1,066). (1,066). (225). (225). (520). (520). (321). (321). - Other. (1,281). (870). (889). (490). (392). (391). -. 12. Core Equity. 20,299. 19,532. 14,768. 14,503. 9,168. 8,614. (3,637). (3,584). 3,531. 3,531. 2,439. 2,438. 599. 600. 493. 493. 23,830. 23,063. 17,207. 16,941. 9,767. 9,214. (3,144). (3,091). Innovative Tier 1 Capital Tier 1 Capital Subordinated loans. 11,167. 10,735. 12,134. 11,642. 761. 819. (1,728). (1,726). Prudential filters on total capital. (1,844). (2,018). (1,708). (1,919). (136). (98). -. -. Total Capital. 33,153. 31,780. 27,633. 26,664. 10,392. 9,935. (4,872). (4,817). WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Fortis Q1 2007.

(9) 9. 2. Banking Income Statement - Activity-based in EUR million Q1 2007 Net interest income on interest-margin products. Q1 2006. Change. Q1 2007. Q4 2006. Change. 1,310. 1,256. 4%. 1,310. 1,267. Net commissions and fees. 726. 688. 6%. 726. 696. 4%. Capital gains on investment portfolio. 192. 247. (22%). 192. 167. 15%. Treasury and financial markets. 389. 470. (17%). 389. 178. *. 61. 61. (1%). 61. 62. (1%) (25%). Dividend and other investment income. 3%. Other income. 38. 49. (21%). 38. 51. Total income. 2,716. 2,771. (2%). 2,716. 2,421. 12%. (26). (9). *. (26). (90). (71%). 2,690. 2,762. (3%). 2,690. 2,331. 15%. Staff expenses. (942). (887). 6%. (942). (956). (1%). Other operating and administrative expenses. (708). (601). 18%. (708). (781). (9%). (1,650). (1,487). 11%. (1,650). (1,737). (5%). 1,040. 1,274. (18%). 1,040. 594. 75%. (132). (239). (45%). (132). (88). 50% 79%. Change in impairments Net revenues. Total expenses Profit before taxation Income tax expenses Net profit for the period. 908. 1,036. (12%). 908. 507. Net profit attributable to minority interests. 5. 0. *. 5. 1. *. Net profit attributable to shareholders. 903. 1,036. (13%). 903. 506. 79% B tt. Key Performance Indicators. Net interest margin (1) Credit RWCs - Average (in EUR million). Credit loss ratio (basis points) (1). 5.3. Q1 2007 5.3. Q1 2006. 2.26%. 2.26%. 2.50%. 231,750. 231,750. 201,165. 5. 5. 2. Cost / Income ratio. 60.7%. 60.7%. 53.7%. Operating leverage. (12.9%). (12.9%). 2.8%. 13%. 13%. 19%. Effective Tax rate (1) As a % of average Credit Risk-weighted commitments. (2) Refers to Full Year 2006.. Change. 5.0. Q1 2007 5.3. 15%. (2). Q4 2006. Change. 5.8. 2.26%. 2.30%. 231,750. 220,273. 5. 15. 60.7%. 71.7%. (12.9%). 2.8%. 13%. 15%. 5%. (2). WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Q1 2007 Duration of Equity (in years).

(10) 10. Key Performance Indicators. # of FTEs. Q1 2007. Q1 2007. FY 2006. Change. Q1 2007. Q4 2006. Change. 45,359. 45,359. 43,575. 4%. 45,359. 43,575. 4%. Credit Quality (in EUR million) - Total loans to customers. 318,436. 318,436. 288,078. 11%. 318,436. 288,078. 11%. - Impaired loans. 5,478. 5,478. 5,582. (2%). 5,478. 5,582. (2%). - Impaired loans as a % of total loans to customers. 1.7%. 1.7%. 1.9%. 1.7%. 1.9%. Funds under Management (in EUR billion). 197.2. 197.2. 190.6. 197.2. 190.6. 3%. 3.3. 3.3. 16.5. 3.3. 3.2. 3%. - In/Out flow. 3%. RWCs - End of period (in EUR million). 262,828. 262,828. 240,105. 9%. 262,828. 240,105. 9%. - Credit RWCs. 241,867. 241,867. 221,633. 9%. 241,867. 221,633. 9%. - Market RWCs. 20,961. 20,961. 18,471. 13%. 20,961. 18,471. 13%. Target core equity (in EUR million). 15,770. 15,770. 14,406. 9%. 15,770. 14,406. 9%. Tier 1 ratio. 6.5%. 6.5%. 7.1%. 6.5%. 7.1%. Return on target core equity. 19%. 19%. 22%. 19%. 22% Bottom. A number of changes have been introduced to Fortis’s financial reporting in 2007. First of all, our reporting now reflects the organisational structure announced in October 2006. One major organisational change, for example, is that Merchant Banking and Commercial & Private Banking have been combined to form Merchant & Private Banking (MPB). Secondly, allocation of the bank’s Asset and Liability Management (ALM) results to the businesses has been brought in line with Fortis’s new target capital model. Finally, to fully align the external presentation with the internal business structure, invoicing between the different businesses is now netted and no longer results in income for one business and a cost for the other.. Analysis • Underlying net profi t remains high • Strong volume growth fuels increase in net interest income and commissions • Excellent quarter for trading • Funds under management climb to EUR 197 billion, up 3%, mainly on net infl ow of EUR 3.3 billion • Continued benign credit environment leads to credit loss ratio of 5 basis points Net profi t at Banking amounted to EUR 903 million in the first quarter, a decrease of EUR 133 million or 13% versus the same quarter of last year but an increase of EUR 397 million or 79% on the previous quarter. The first quarter of last year benefited from a significant change in the fair value of a non-qualifying hedge of EUR 170 million pre-tax, or EUR 120 million after tax. Excluding this exceptional element, Banking was close to give a repeat performance of last year’s. outstanding first quarter, while realising lower capital gains. These strong results were achieved on the back of steady growth of the top line – after neutralisation of the macro hedge impact – driven by commercial activity, continued low changes in impairments and a lower effective tax rate. Expenses rose, mainly reflecting the continuation of growth investments initiated in 2006. Compared to the previous quarter, further progression in the top line and lower changes in impairments largely contributed to the steep rise in net profit. In line with earlier indications, first-quarter expenses came in lower than the previous quarter, which featured a number of one-off elements. First-quarter total income clocked in at EUR 2,716 million, down a reported EUR 55 million or 2% from the same quarter last year. Excluding the 2006 gain on the non-qualifying. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. To ensure full comparability, both the 2007 and 2006 figures are presented in accordance with the new organisational structure and have been fully adapted to the changes in methodology. Furthermore, the Financial and Operational Review for the first quarter of 2007 includes additional and more granular disclosure than it did in previous years..

(11) 11. hedge, total income grew by EUR 115 million or 4% yearon-year. This healthy growth demonstrates sustained improvement of commercial activities generating higher interest income, an increase in fees and commissions, and better treasury and financial market results. Interest income and commissions and fees together are growing by an average of 5%. They are responsible for the lion’s share of the year-on-year underlying increase and represent three quarters of the total income.. inflow and the positive impact of capital markets. Funds under management rose 14% year-on-year, thereby increasing the revenue base for the recurring funds-based commissions. Net infl ow amounted to EUR 3.3 billion, EUR 0.7 billion of which came in at Private Banking and EUR 2.7 billion at Fortis Investments. These figures were driven by considerable new business from external retail networks across the key geographies and at Fortis Haitong, Fortis Investments’ joint venture in China.. Net interest income on interest-margin products rose 4% to EUR 1,310 million in the first quarter of 2007 compared to the same period last year. The increase was fuelled chiefly by strong volume growth at Merchant & Private Banking (MPB). Double-digit net interest income growth was achieved across most of MPB’s business lines such as Corporate/Institutional/ Public Banking, Energy/Commodities/ Transportation and Clearing/Funds/Custody. Commercial Banking posted upper single-digit growth compared with the previous year despite the impact of further margin pressure. Net interest income at Private Banking remained stable because of margin pressure on cash-related products. Retail Banking saw its interest income decrease, mainly reflecting a change in its product mix as customers shifted from traditional savings towards higher yielding but lower margin time deposits. Net interest income at ALM is ahead of last year’s first-quarter level, benefiting in particular from the reinvestment of higher retained earnings.. Net commissions and fees amounted to EUR 726 million, up 6% on the first quarter of 2006. One of the growth drivers was a 7% rise in fees related to funds under management. These benefited from a substantially higher fee base supported by positive net intake and favourable market developments throughout the period. Other contributors to the growth were insurance-related fees, securities and daily banking fees generated by a higher level of transactions.. Loan volume rose 11% compared with year-end 2006, fuelled by soaring securities lending. Excluding securities lending and reverse repurchase agreements, underlying loan growth amounted to 3%. Commercial loans increased by 5% while residential mortgages advanced 1%. Credit risk-weighted commitments climbed to EUR 242 billion, up 9% on the year-end 2006 level, driven by strong volume growth mainly at Merchant & Private Banking businesses. Total risk-weighted commitments including market risk-weighted commitments of EUR 21 billion amounted to EUR 263 billion, representing an increase of 9% versus year-end 2006. Funds under management ended the quarter at EUR 197 billion, up 3% on year-end 2006, benefiting from continued. Capital gains not linked to fi nancial market activity clocked in at EUR 192 million, EUR 55 million or 22% lower than last year’s first quarter but 15% up versus the fourth quarter of 2006. Realised capital gains during this first quarter were mainly equity-based, contributing to the reduction of the overall effective tax-rate. Treasury and financial markets activity generated EUR 389 million in revenues, EUR 81 million or 17% less than in the same quarter last year. Excluding the EUR 170 million change in the fair value of the non-qualifying hedge on the part of a mortgage portfolio booked in the first quarter of 2006, treasury and financial market income rose by a steep 30% year-on-year. This robust performance was fuelled by superior trading and higher Securities Financing results, partly offset by lower Private Equity income. The strong trading results were driven by an exceptional performance in equity derivatives trading – which capitalised on the high volatility witnessed during the first quarter – but were partly mitigated by the lower Forex and Rates group contribution, reflecting higher funding costs. Energy trading remained low in the first quarter, which was marked by low trading in gas, oil and electricity mainly in the US due to the mild weather. Private Equity came out lower compared to the first quarter of 2006, which benefited from higher portfolio revaluations. First-quarter treasury and financial markets activity surged to EUR 389 million from EUR 178 million in the fourth quarter of 2006, with all activities making excellent progress. Trading results soared thanks to the exceptional equity derivatives trading in the first quarter, but also benefited from increased client driven deals in fixed income at the Forex and Rates. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. First-quarter net interest income on interest-margin products continued on an upward trend compared with the previous quarter, climbing 3%. Similarly, higher volumes at MPB were mainly responsible for the favourable development and more than offset the impact of margin-driven declines at Private Banking and Specialised Financial Services. Net interest income remained virtually stable compared to the previous quarter at Retail Banking as growing volumes offset slightly lower margins. Net interest income at ALM continued to progress mainly on the back of revenue from higher retained earnings.. Net commissions and fees advanced a further 4% compared with the fourth quarter of 2006, which benefited from typically higher end-of-year-related production and transaction activity. The increase was fuelled by the same drivers as the ones mentioned above..

(12) 12. The change in provisions for impairments was once again very low, at EUR 26 million in the first quarter of the year, chiefly due to net releases posted at Merchant Banking. The credit environment remained benign and few loans required provisioning. Retail Banking impairments increased yearon-year, mainly because of the inclusion of the Von Essen acquisition and partly due to Turkey. The change in provisions for impairments in the first quarter was an improvement on the EUR 90 million in the final quarter of 2006, which included a lower level of releases at Merchant Banking and specific loan provisioning at Commercial Banking. The credit loss ratio (calculated as a percentage of average credit risk-weighted commitments) remained very low at 5 basis points for the first quarter of 2007. The first quarter credit loss ratio remained considerably lower than the expected cross-cycle credit loss ratio of around 25 basis points. Total expenses rose 11% from the same quarter last year to EUR 1,650 million, but came down EUR 87 million or 5% on the previous quarter. Hirings over the course of last year as well as stepped-up investments in growth were the main reasons for the increase. The consolidation of acquisitions explained 1% of the year-on-year growth. A number of one-off events were responsible for the significant rise in expenses in the fourth quarter of 2006; this is reflected in the decline observed in the first quarter. The first-quarter cost/income ratio, at 60.7%, is equal to the ratio for full-year 2006.. Staff expenses came to EUR 942 million, up 6% versus the same period last year and down 1% on the previous quarter, which was impacted by a EUR 40 million provision for early departure costs. The 6% increase on the first quarter of last year can be explained by acquisitions, which account for 1%, and by new hirings and wage drift. Hirings were made mainly at Merchant & Private Banking in support of their growth. The 1% decline in staff expenses on the previous quarter was due to a one-off provision for early departure taken in the fourth quarter. Excluding this exceptional item, staff expenses rose 3%, mainly owing to new hirings. Total Banking FTEs numbered 45,359 at the end of the first quarter, an increase of 1,784 or 4% compared to year-end 2006. The figure for the first quarter includes approximately 900 FTEs resulting from the first-time consolidation of the Dominet acquisition in Poland. As Dominet was included at the very end of the quarter, these FTEs did not have a material impact on the consolidated profit and loss accounts for the first quarter. Disregarding the impact of Dominet, the number of FTEs grew by 2% versus year-end 2006. Other expenses went up 18%, to EUR 708 million, versus the first quarter of 2006. Excluding the impact of acquisitions, other expenses rose 16%, reflecting a higher level of investments in technology infrastructure, marketing and branding as well as the consumer finance rollout, all in support of the long-term growth plans. In line with earlier indications, other expenses decreased by EUR 73 million or 9% compared with the previous quarter, which was marked by major one-off events. The effective tax rate was low at 13%. The decline compared with last year can be attributed to the structure of treasury and financial markets results and to the mix of capital gains, which were composed mainly of tax-exempt equity deals. The establishment of a treasury centre in 2006 also contributed to the lower effective tax rate.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Group. The rise in quarter-on-quarter income can also be attributed to higher Securities Financing income and to more vigorous Private Equity activity. Finally, lower losses on the revaluation of the credit hedging portfolio in the first quarter also helped to boost income in the first quarter..

(13) 13. 2.1. Retail Banking Income Statement - Activity-based in EUR million Q1 2007. Q1 2007 Q1 2006. Change Q1 2006. Q1Change 2007. Q4Q1 2006 2007. Change Q4 2006. Change. Net interest income on interest-margin products. 660. 672 660. (2%) 672. 660 (2%). 663 660. (0%) 663. (0%). Net commissions and fees. 379. 345 379. 10% 345. 379 10%. 344 379. 10% 344. 10%. Capital gains on investment portfolio Treasury and financial markets Dividend and other investment income. 4. 24. 58% 2. 58% 4. (1)4. *(1). *. 14. 1214. 18%12. 18% 14. 814. 74% 8. 74%. 6. 66. 6% 6. 6% 6. 46. 44% 4. 44%. Other income. 131. 256 131. (49%) 256. 131 (49%). 181 131. (28%) 181. (28%). Total income. 1,193. 1,193 1,294. (8%) 1,294. 1,193 (8%). 1,200 1,193. (1%) 1,200. (1%). (33). (22) (33). 50% (22). (33) 50%. (34) (33). (3%) (34). (3%). 1,161. 1,161 1,272. (9%) 1,272. 1,161 (9%). 1,167 1,161. (0%) 1,167. (0%). Staff expenses. (325). (311) (325). 5% (311). (325) 5%. (329) (325). (1%) (329). (1%). Other operating and administrative expenses. (146). (146) (104). 41% (104). (146) 41%. (168) (146). (13%) (168). (13%). Allocated expenses. (349). (339) (349). 3% (339). (349) 3%. (381) (349). (8%) (381). (8%). Total expenses. (820). (820) (753). 9% (753). (820) 9%. (878) (820). (7%) (878). (7%). 341. 341 519. (34%) 519. 341 (34%). 289 341. 18% 289. 18%. Income tax expenses. (55). (144) (55). (62%) (144). (62%) (55). (80) (55). (31%) (80). (31%). Net profit for the period. 286. 286 375. (24%) 375. 286 (24%). 210 286. 36% 210. 36%. Net profit attributable to minority interests. 0. 00. *0. 0*. 00. *0. *. Net profit attributable to shareholders. 286. 286 375. (24%) 375. 286 (24%). 210 286. 36% 210. 36%. Q4 Q12006 2007. Change Q4 2006. Change. Change in impairments Net revenues. Profit before taxation. Key Performance Indicators Q1 2007. Q12006 2007 Q1. Change Q1 2006. Cost / Income ratio. 68.7%. 58.2% 68.7%. 58.2%. Operating leverage. (16.6%). (16.6%) (0.4%) (1). (0.4%). 28% 16%. 28%. Q1 2007. Q12006 2007 FY. Change FY 2006. 19,142. 19,142 17,030. RWCs - End of period (in EUR million). 53,574. - Credit RWCs. 53,574. Effective Tax rate. 16%. Q1 Change 2007 68.7%. 73.1% 68.7%. 73.1%. (16.6%) (0.4%) (1). (0.4%). 28% 16%. 28%. Q1 Change 2007. Q4 Q12006 2007. Q4 Change 2006. Change. 17,030 12%. 19,142 12%. 17,030 19,142. 17,030 12%. 12%. 52,431 53,574. 52,431 2%. 53,574 2%. 52,431 53,574. 52,431 2%. 2%. 52,431 53,574. 52,431 2%. 53,574 2%. 52,431 53,574. 52,431 2%. 2%. (1). (16.6%). 16%. (1). Key Performance Indicators. # of FTEs. - Market RWCs Target core equity (in EUR million) Return on target core equity. -. --. *-. -*. --. *-. *. 3,214. 3,146 3,214. 3,146 2%. 3,214 2%. 3,146 3,214. 3,146 2%. 2%. 31%. 31% 34%. (9%) 34%. 31% (9%). 34% 31%. (9%) 34%. (9%). BottomR. BottomR. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. (1) Refers to Full Year 2006..

(14) 14. Analysis • Retail Banking net profi t for the fi rst quarter of 2007 stands at EUR 286 million • Net commissions and fees rise sharply on the back of continued growth in management fees and good net intake of fi nancial insurance products • Fortis Investments records strong infl ows, generating EUR 2.7 billion in the fi rst quarter • Acquisition of Dominet has been fi nalised and joint venture with An Post has received its banking license Retail Banking’s net profit for the first quarter of 2007 came in at EUR 286 million compared to EUR 375 million last year. Total income decreased 8% or EUR 101 million due entirely to lower allocated ALM results. Expenses increased 9% as a result of the consolidation of Consumer Finance Germany, higher staff numbers and higher expenses in marketing and IT. Retail Banking network’s net profit for the first quarter of 2007 stands at EUR 260 million, versus EUR 351 million last year. Total income decreased 9% to EUR 1,093 million due entirely to lower allocated ALM results (down EUR 117 million). Lower net interest income (down EUR 10 million) was offset by higher commissions and fees (up EUR 20 million).. Total expenses grew by 8% to EUR 755 million, due to business expansion (Consumer Finance Germany was consolidated as of the second quarter of 2006), staff increases and higher marketing expenses. Net profit was up 41% on the previous quarter. Total income was stable, with a sharp rise in commissions and fees (up EUR 36 million) to EUR 282 million not fully compensating for lower allocated ALM results. Expenses were 6% lower, as the fourth quarter of 2006 was impacted by a one-off expense relating to an early departure scheme. Fortis Investments had a strong start to the year. Net profit for the first quarter of 2007 came to EUR 29 million (before allocation of central costs and capital charges), up 10% on the same period in 2006 and 7% on the fourth quarter of 2006. Including the central costs and capital charges, net profit amounted to EUR 26 million, up 7% on the first quarter 2006. This sound performance was mainly the result of continued generation of net inflows and a positive market impact on assets under management. Net inflow amounted to EUR 2.7 billion for the first quarter of 2007, pushing assets under management up to EUR 125 billion, 3% higher than the end of 2006. The favourable momentum witnessed in the first quarter continued into the second quarter with April showing very promising inflows.. 2.1.1. Retail Banking Network Income Statement - Activity-based in EUR million Q1 2007 Q1 2006. 662. 672 662. Net commissions and fees. 282 4 11. Capital gains on investment portfolio Treasury and financial markets Dividend and other investment income. Change Q1 2006. Q1Change 2007. Q4Q1 2006 2007. Change Q4 2006. Change. (1%) 672. 662 (1%). 662 662. 0% 662. 0%. 282 262. 8% 262. 282 8%. 246 282. 14% 246. 14%. 24. 55% 2. 55% 4. (1)4. *(1). *. 1111. 4%11. 11 4%. 611. 77% 6. 77%. 5. 55. (2%)5. (2%) 5. 35. 38% 3. 38%. Other income. 129. 129 255. (49%) 255. 129 (49%). 179 129. (28%) 179. (28%). Total income. 1,093. 1,093 1,208. (9%) 1,208. 1,093 (9%). 1,096 1,093. (0%) 1,096. (0%). (33). (22) (33). 50% (22). (33) 50%. (34) (33). (5%) (34). (5%). 1,060. 1,060 1,186. (11%) 1,186. 1,060 (11%). 1,062 1,060. (0%) 1,062. (0%). Staff expenses. (287). (275) (287). 4% (275). (287) 4%. (293) (287). (2%) (293). (2%). Other operating and administrative expenses. (122). (122) (87). 39% (87). (122) 39%. (133) (122). (8%) (133). (8%). Allocated expenses. (346). (337) (346). 3% (337). (346) 3%. (378) (346). (8%) (378). (8%). Total expenses. (755). (755) (699). 8% (699). (755) 8%. (804) (755). (6%) (804). (6%). Profit before taxation. 306. 306 487. (37%) 487. 306 (37%). 258 306. 19% 258. 19%. Income tax expenses. (46). (136) (46). (66%) (136). (66%) (46). (73) (46). (37%) (73). (37%). Net profit for the period. 41%. Change in impairments Net revenues. 260. 260 351. (26%) 351. 260 (26%). 185 260. 41% 185. Net profit attributable to minority interests. 0. 00. *0. 0*. 00. *0. *. Net profit attributable to shareholders. 260. 260 351. (26%) 351. 260 (26%). 185 260. 41% 185. 41% BottomRig. Bottom. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Q1 2007 Net interest income on interest-margin products.

(15) 15. Key Performance Indicators Q1 2007. Q12006 2007 Q1. Net interest margin (1). 5.08%. 5.08% -. -. Credit RWCs - Average (in EUR million). 52,146. 52,146 -. *-. 25. 25 -. -. Cost / Income ratio. 69.0%. 57.9% 69.0%. 57.9%. Operating leverage. (17.5%). (1.0%) (17.5%)(2). (1.0%). 28% 15%. 28%. Credit loss ratio (basis points) (1). Effective Tax rate. 15%. Change Q1 2006. Q1 Change 2007. (2). Q4Q12006 2007. Change Q4 2006. 5.08%. 5.20% 5.08%. 5.20%. 52,146 *. 50,981 52,146. 50,981 2%. 25. 2725. 27. 69.0%. 73.3% 69.0%. 73.3%. (1.0%) (17.5%)(2). (1.0%). 28% 15%. 28%. (17.5%). 15%. Change. 2%. (2). (1) As a % of average Credit Risk-weighted commitments. (2) Refers to Full Year 2006.. Key Performance Indicators Q1 2007. FY Q12006 2007. Change FY 2006. Q1 Change 2007. Q4 Q12006 2007. Change Q4 2006. Change. # of Fortis Bank branches. 1,780. 1,595 1,780. 12% 1,595. 1,780 12%. 1,595 1,780. 12% 1,595. 12%. - Belgium. 1,086. 1,092 1,086. 1,092 (1%). 1,086 (1%). 1,092 1,086. 1,092 (1%). (1%). - Netherlands. 158. 159 158. (1%) 159. 158 (1%). 159 158. (1%) 159. (1%). - Luxembourg. 37. 37 37. 0% 37. 37 0%. 37 37. 0% 37 (1). 205. 202 205. 205 1%. 202 205. - France. 79. 79 79. 0% 79. 79 0%. 79 79. 0% 79. 0%. - Poland. 215. 26 215. 26 *. 215 *. 215 26. 26 *. *. 18,297. 16,231 18,297. 16,231 13%. 18,297 13%. 16,231 18,297. 16,231 13%. 13%. Deposits (in EUR million). 92,043. 91,187 92,043. 91,187 1%. 92,043 1%. 91,187 92,043. 91,187 1%. 1%. - Demand. 20,863. 22,086 20,863. 22,086 (6%). 20,863 (6%). 22,086 20,863. 22,086 (6%). (6%). - Savings. 53,056. 54,460 53,056. 54,460 (3%). 53,056 (3%). 54,460 53,056. 54,460 (3%). (3%). - Time. 17,958. 17,958 14,497. 14,497 24%. 17,958 24%. 14,497 17,958. 14,497 24%. 24%. - Other. 165. 144 165. 14% 144. 165 14%. 144 165. 14% 144. 14%. Loans to Customers (in EUR million). 80,166. 78,559 80,166. 78,559 2%. 80,166 2%. 78,559 80,166. 78,559 2%. 2%. - Mortgages. 57,699. 56,660 57,699. 56,660 2%. 57,699 2%. 56,660 57,699. 56,660 2%. 2%. 7,379. 7,109 7,379. 7,109 4%. 7,379 4%. 7,109 7,379. 7,109 4%. 4%. 14,870. 14,534 14,870. 14,534 2%. 14,870 2%. 14,534 14,870. 14,534 2%. 2%. 218. 218 256. (15%) 256. (15%) 218. 256 218. (15%) 256. (15%). - Impaired loans. 2,403. 2,292 2,403. 2,292 5%. 2,403 5%. 2,292 2,403. 2,292 5%. 5%. - Impaired loans as a % of total loans to customers. 3.0%. 2.9% 3.0%. 2.9%. 3.0%. 2.9% 3.0%. 2.9%. Number of customers (x1,000). 5,205. 5,219 5,205. 5,219 (0%). 5,205 (0%). 5,219 5,205. 5,219 (0%). (0%). Number of PC Banking contracts (x1,000). 1,260. 1,199 1,260. 1,199 5%. 1,260 5%. 1,199 1,260. 1,199 5%. 5%. - Consumer Loans - Commercial Loans - Other LtC. 1% 202. 0% (1). - Turkey. # of FTEs. 1% 202. (1). 1%. Credit Quality (in EUR million). Customer satisfaction indicator - Belgium. 69%. 67% 69%. 67%. 69%. 67% 69%. 67%. - Netherlands. 75%. 75% 75%. 75%. 75%. 75% 75%. 75%. - Luxembourg. 75%. 75% 75%. 75%. 75%. 75% 75%. 75%. (1) Year-end 2006 and Q4 2006 have been restated.. BottomR. Bottom. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. (1).

(16) 16. Analysis • Retail Banking network’s net profi t for the fi rst quarter of 2007 stands at EUR 260 million • Net commissions and fees show a strong increase on the back of continued growth in management fees and good net intake of fi nancial insurance products • The acquisition of Dominet has been fi nalised and the joint venture with An Post has received its banking licence. grew by EUR 2 billion in the first quarter of 2007 compared with the previous quarter, supported by a EUR 1 billion increase in residential mortgages, divided equally between Belgium and the Netherlands. New production continues at a healthy pace despite a substantial decrease in refinancing. Although competition remains fierce in both countries, margins on new production seem to have bottomed out. Consumer loans increased by EUR 272 million, reflecting 8% growth at Consumer Finance (mainly in the Netherlands).. Retail Banking network’s net profit for the first quarter of 2007 stands at EUR 260 million, versus EUR 351 million last year. Total income decreased 9% to EUR 1,093 million due entirely to lower allocated ALM results (down EUR 117 million). Lower net interest income (down EUR 10 million) was offset by higher commissions and fees (up EUR 20 million).. Net commissions and fees reached EUR 282 million in the first quarter of 2007, up 8% on the EUR 262 million realised in the same period last year. This excellent performance was generated on the back of a strong rise in asset management fees (up 28%) and insurance fees (up 25%), while securities fees were lower. The asset management fees were generated by higher retrocessions received and increased funds under management. A very successful campaign generating net intake of EUR 489 million drove the sharp rise in insurance fees. The smaller volume of mutual funds sold, compared with the very strong first quarter of 2006, led to lower securities fees. Commissions and fees were up 14% on the previous quarter, as securities fees increased by 41% supported by commercial campaigns and higher activity in financial markets. Asset management fees rose by 10% on the previous quarter, benefiting from the increase in funds under management.. Net interest income amounted to EUR 662 million, down EUR 10 million on the first quarter of 2006. This decrease is fully explained by the 25 basis points increase on the Belgian savings accounts remuneration in July 2006 bringing the base rate back to 1.5%. Compared to the previous quarter, net interest income was stable as growing volumes compensated for a less favourable product mix, with clients shifting from saving deposits to higher-yielding products with lower margins. Customer deposits increased 4% year-on-year to EUR 92 billion. The high level of short-term interest rates after several interest rate hikes by the ECB – the last on 8 March – made time deposits more attractive to customers. The sharp increase in time deposits was partly at the expense of saving deposits. Time deposits rose by 62% or EUR 7 billion to EUR 18 billion, while saving deposits decreased by 8% or EUR 4 billion to EUR 53 billion. The 1% increase in customer deposits on the previous quarter was also fuelled by continued growth in time deposits (up EUR 3 billion), compensating for an outflow of EUR 1 billion from saving deposits. Loans to customers grew by 11% to EUR 80 billion versus EUR 72 billion in the first quarter of 2006. The driver was growth in residential mortgages, which increased by 13% to total EUR 58 billion, of which EUR 24 billion was in Belgium and EUR 30 billion in the Netherlands. Loans to customers. The change in impairments came to EUR 33 million, up EUR 11 million on last year, partly due to the addition of consumer finance activities in Germany in the second quarter of 2006. Impairments were slightly down on the previous quarter. Total expenses of EUR 755 million were 8% higher than in the first quarter of 2006, owing to the addition of the business in Germany, staff increases and higher marketing expenses. Expenses were down by 6% or EUR 49 million compared with the fourth quarter of 2006, which was impacted by a oneoff expense relating to an early departure scheme (EUR 35 million) and higher consultancy fees. Staff expenses increased EUR 12 million (or 4%) on the previous year to EUR 287 million. FTEs increased to 18,297 from 15,731 in the first quarter of 2006. This can be explained by the integration of 584 FTEs at Consumer Finance Germany, the transfer of 889 FTEs from Operations to Retail in Turkey at the beginning of 2007, and the addition of 869 new FTEs thanks to the acquisition of Dominet SA in Poland at the end of March. Expenses were EUR 6 million lower than in the fourth quarter, in line with the trend in previous quarters. Early departure costs were incurred in Belgium in the fourth quarter of 2006, offset partly by a release in pension provisions in the Netherlands. Excluding these one-offs, staff expenses rose by 2.5% on the previous quarter. An ambitious plan to increase. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Total expenses grew by 8% to EUR 755 million, due to business expansion (Consumer Finance Germany was consolidated as of the second quarter 2006), staff increases and higher marketing expenses. Net profit was up 41% on the previous quarter. Total income was stable, with a sharp rise in commissions and fees (up EUR 36 million) to EUR 282 million not fully compensating for lower allocated ALM results. Expenses were 6% lower, as the fourth quarter of 2006 was impacted by a one-off expense relating to an early departure scheme..

(17) 17. the number of personal bankers has been devised in Belgium in order to better serve value-added customer segments. Recruitment is progressing well. Other operating and administrative expenses increased by EUR 35 million compared with the first quarter of 2006, to EUR 122 million. The rollout of credit shops at Consumer Finance Germany (20 opened in 2006 and another 22 opened in the first quarter of 2007) and the television campaign supported by direct mailing and online advertising were the main reasons for the high level of these expenses. Quarter on quarter they decreased by EUR 11 million, due mainly to lower consultancy fees and other professional fees. Allocated expenses were slightly higher than last year, but EUR 32 million down on the previous quarter, having come in at EUR 346 million. However, the figure for the previous quarter was exceptionally high due to early departure provisions in Belgium, and higher IT and operating expenses.. and new monthly production increased from EUR 8 million to EUR 26 million. The number of visits to shops and internet is increasing sharply. We further strengthened the commercial campaign in April with the addition of radio, and magazine and newspaper ads. Turkey passed new mortgage legislation on 6 March. Several new regulations will be announced and should be adopted in the second half of 2007. The new legislation will enable the introduction of new products such as variable-rate mortgages and new funding instruments (e.g. mortgagebacked securities). We shall also be allowed to impose an early repayment charge on fixed interest rate loans (max 2%). The Association of Real Estate Investment Companies expects a 10% to 20% boost to new housing demand. Mortgages will be a key element of Fortis Turkey’s product offering going forward. An action plan has been set up for IT infrastructure, product development, sales training and funding.. Income tax expenses in the first quarter were a very low 15% thanks to allocated ALM results on which almost no taxes were due.. Following approval by the Polish Banking Supervisory Authority, Fortis finalised the acquisition of 100% of the shares of Dominet SA. Dominet is a mass retail bank with a strong position in the car finance segment and a fast-growing portfolio of cash loans. It has the tenth-largest branch network in Poland, consisting of 186 sales points (branches and franchises). It has privileged relationships with over 2,000 car dealers, including Autotu, Poland’s largest network of used-car dealers. Client focus and commercial developments In the first quarter of 2007 Credit4me (Consumer Finance Germany) took another step forward in its accelerated growth plan that started at the end of 2006. It has opened 22 new credit shops since the beginning of the year bringing the total to 42, well on track to having more than 100 credit shops by the end of the year. A nationwide TV campaign was launched on 22 February, supported by online advertising and direct mailing. The first results of this campaign are very promising. Loans to customers rose from EUR 26 million at the end of January to EUR 57 million at the end of March,. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Acquisitions and integration The Irish Financial Regulator granted a banking licence to the joint venture between An Post and Fortis on 18 April. The joint venture will begin offering savings- and investment products in May. Starting with a limited product offering at selected post offices, the joint venture will gradually enlarge its product portfolio and roll it out across the full Post Office network over the next 12 months. The joint venture is expected to employ about 250 people by the end of 2007..

(18) 18. 2.1.2. Asset Management Income Statement - Activity-based in EUR million Q1 2007. Q12006 2007 Q1. Change Q1 2006. Q1 Change 2007. Q4Q12006 2007. Change Q4 2006. Change. Net interest income on interest-margin products. (2). 0(2). *0. (2)*. 1(2). *1. *. Net commissions and fees. 97. 97 83. 17% 83. 17% 97. 98 97. (1%) 98. (1%). Capital gains on investment portfolio. 0. 00. *0. 0*. 00. (64%)0. (64%). Treasury and financial markets. 3. 13. *1. 3*. 23. 62%2. 62%. Dividend and other investment income. 1. 11. 44%1. 44% 1. 11. 68%1. 68% (44%). Other income. 1. 11. 23%1. 23% 1. 31. (44%)3. Total income. 100. 100 86. 16% 86. 100 16%. 104 100. (4%) 104. (4%). 0. 00. (59%)0. (59%) 0. 10. (91%)1. (91%). 100. 100 86. 16% 86. 100 16%. 105 100. (4%) 105. (4%). Staff expenses. (38). (36) (38). 6% (36). (38) 6%. (36) (38). 6% (36). 6%. Other operating and administrative expenses. (24). (16) (24). 50% (16). (24) 50%. (35) (24). (31%) (35). (31%). Change in impairments Net revenues. Allocated expenses Total expenses Profit before taxation. (3). (3) (3). 16%(3). 16% (3). (3) (3). 1%(3). 1%. (65). (65) (55). 19% (55). (65) 19%. (74) (65). (12%) (74). (12%). 35. 35 32. 11% 32. 11% 35. 31 35. 13% 31. 13%. Income tax expenses. (9). (8) (9). 17%(8). 17% (9). (6) (9). 41%(6). 41%. Net profit for the period. 26. 26 24. 9% 24. 26 9%. 25 26. 6% 25. 6%. Net profit attributable to minority interests. 0. 00. *0. 0*. 00. *0. *. Net profit attributable to shareholders. 26. 26 24. 7% 24. 26 7%. 25 26. 4% 25. 4%. Key Performance Indicators Q1 2007. Q12006 2007 Q1. Change Q1 2006. Cost / Income ratio. 65.0%. 65.0% 63.4%. 63.4%. Operating leverage. (2.9%). 9.2% (2.9%)(1). 9.2%. 26%. 24% 26%. 24%. Effective Tax rate. Q1 Change 2007 65.0% (1). Q4Q12006 2007 70.8% 65.0%. Change Q4 2006. Change. 70.8%. (2.9%). 9.2% (2.9%)(1). 9.2%. 26%. 21% 26%. 21%. (1). (1) Refers to Full Year 2006.. Bottom. Analysis Fortis carries out asset management activities, mainly through Fortis Investments, acting as a multi-centre, multiproduct asset management firm. Based in Europe, Fortis Investments has a global presence with both sales offices and some key investment centres in Europe, the US and Asia. Activities range from institutional portfolio management to the development and management of mutual funds. Fortis Investments had a strong start to the year. Net profit came to EUR 29 million (before allocation of central costs and capital charges) for the first quarter of 2007, up 10% on the same period in 2006 and 7% on the fourth quarter of 2006. Including the central costs and capital charges, net profit amounted to EUR 26 million, up 7% on the first quarter of 2006. This sound performance was mainly the result of continued generation of net inflows and a positive market impact on assets under management. The favourable. momentum witnessed in the first quarter continued into the second quarter with April showing very promising inflows. Net commissions and fees were 17% higher than they were in the first quarter of 2006. They remained stable compared to the previous quarter, although excluding the positive impact of performance fees, which is concentrated in the fourth quarter, growth amounted to 15%. The increase in commissions and fees was primarily driven by strong sales figures and the firsttime contribution of Cadogan Management LLC (the new combined platform for fund of hedge funds activities, 70% of which was acquired in December 2006). Expenses rose 19% compared to the first quarter of 2006, chiefly due to an increase in other operating and administrative expenses resulting from investments made in line with the company’s growth plan for the coming five years.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. B.

(19) 19. 19. Key Performance Indicators Q12006 2007 FY. Change FY 2006. Q1 Change 2007. 845. 799 845. 6% 799. 845 6%. 799 845. 6% 799. 6%. 124.7 3%. 124.7. 121.0 124.7. 121.0 3%. - In/Out flow. 2.7. 9.9 2.7. 9.9. Asset Class (in EUR billion). 125. 121 125. - Balanced. 30. - Bonds. 39. - Equities. Q4Q12006 2007. Change Q4 2006. Change. 121.0 124.7. 121.0 3%. 3%. 2.7. 0.6 2.7. 0.6 *. *. 3% 121. 125 3%. 121 125. 3% 121. 3%. 3030. 0%30. 30 0%. 3030. 0%30. 0%. 3939. 0%39. 39 0%. 3939. 0%39. 0%. 20. 2220. (9%) 22. (9%) 20. 2220. (9%) 22. (9%). - Money Market. 15. 1415. 7%14. 15 7%. 1415. 7%14. 7%. - Structured Funds. 16. 1216. 33%12. 33% 16. 1216. 33%12. 33%. 5. 45. 25% 4. 25% 5. 45. 25% 4. 25%. Funds under Management (in EUR billion). - Others. 125. 121 125. 3% 121. 125 3%. 121 125. 3% 121. 3%. - Fortis. Distribution (in EUR billion). 71. 7071. 1%70. 71 1%. 7071. 1%70. 1%. - Third parties. 45. 4245. 7%42. 45 7%. 4245. 7%42. 7%. 9. 99. 0% 9. 0% 9. 99. 0% 9. 0%. - CDOs. 125. 121 125. 3% 121. 125 3%. 121 125. 3% 121. 3%. - Retail. Clients (in EUR billion). 68. 6568. 5%65. 68 5%. 6568. 5%65. 5%. - Institutional. 48. 4748. 2%47. 48 2%. 4748. 2%47. 2%. 9. 99. 0% 9. 0% 9. 99. 0% 9. 0%. - CDOs. Geographies (in EUR billion). 125. 121 125. 3% 121. 125 3%. 121 125. 3% 121. 3%. - Benelux. 84. 8384. 1%83. 84 1%. 8384. 1%83. 1%. - Europe Outside Benelux. 32. 3032. 7%30. 32 7%. 3032. 7%30. 7%. 9. 89. 13% 8. 13% 9. 89. 13% 8. 13%. - Rest of the World. Staff expenses went up 6%, reflecting the rise in the number of FTEs. Expenses came down by 12% compared with the fourth quarter, which included performance-related bonuses. Excluding this element, expenses went up 6% owing to personnel- and IT-related investments. Fortis Investments will continue to expand and enhance its investment and distribution capabilities in 2007. Net inflows totalled EUR 2.7 billion for the first quarter as a result of strong sales figures in January, which were partially offset by mixed results in February and March. Net new inflows for the quarter were primarily driven by considerable new thirdparty retail business across all of the key geographies and at Fortis Haitong, Fortis Investments’ joint venture in China. At product level, absolute return funds, a number of equity products (e.g. OBAM), money markets and structured products remained the leading contributors to net inflows.. Assets under management ended the quarter at EUR 125 billion, 3% higher than year-end 2006. This sustained performance was achieved despite difficult market conditions, such as those seen at the end of February, illustrating Fortis Investments’ highly diversified distribution platform and product solution proposal to its clients. Fund performance at the end of the quarter remained positive, with 56% and 71% of the funds turning in abovebenchmark performances on a 1-year and 3-year horizon, respectively.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Q1 2007 # of FTEs.

(20) 20. 2.2. Merchant & Private Banking Income Statement - Activity-based in EUR million Q1 2007. Q12006 2007 Q1. Change Q1 2006. Q1 Change 2007. Q4Q12006 2007. Change Q4 2006. Change. Net interest income on interest-margin products. 603. 489 603. 23% 489. 603 23%. 535 603. 13% 535. 13%. Net commissions and fees. 350. 340 350. 3% 340. 350 3%. 356 350. (2%) 356. (2%). 55. 6955. (20%) 69. (20%) 55. 655. *6. *. 329. 329 289. 14% 289. 329 14%. 116 329. 116 *. *. 37. 3437. 7%34. 37 7%. 3837. (3%) 38. (3%). Capital gains on investment portfolio Treasury and financial markets Dividend and other investment income Other income. 99. 19999. (50%) 199. (50%) 99. 13299. (25%) 132. (25%). Total income. 1,474. 1,474 1,421. 1,421 4%. 1,474 4%. 1,183 1,474. 25% 1,183. 25%. 11. 1511. (27%) 15. (27%) 11. (67) 11. (67) *. *. 1,484. 1,484 1,435. 1,435 3%. 1,484 3%. 1,116 1,484. 33% 1,116. 33%. Change in impairments Net revenues. Staff expenses. (407). (345) (407). 18% (345). (407) 18%. (411) (407). (1%) (411). (1%). Other operating and administrative expenses. (200). (200) (182). 10% (182). (200) 10%. (242) (200). (17%) (242). (17%). Allocated expenses. (179). (158) (179). 13% (158). (179) 13%. (201) (179). (11%) (201). (11%). Total expenses. (786). (786) (686). 15% (686). (786) 15%. (854) (786). (8%) (854). (8%). 699. 699 750. (7%) 750. 699 (7%). 262 699. 262 *. * *. Profit before taxation Income tax expenses. (76). (80) (76). (5%) (80). (76) (5%). (76) 6. *6. Net profit for the period. 623. 623 670. (7%) 670. 623 (7%). 268 623. 268 *. *. Net profit attributable to minority interests. 1. (1)1. *(1). 1*. 11. 6% 1. 6%. Net profit attributable to shareholders. 622. 622 671. (7%) 671. 622 (7%). 267 622. 267 *. * Bottom. Bottom. Key Performance Indicators Q12006 2007 Q1. 1.48%. 1.48% -. -. 162,648. 162,648 -. * -. (3). -(3). -. Cost / Income ratio. 53.3%. 48.3% 53.3%. 48.3%. Operating leverage. (10.8%). Credit RWCs - Average (in EUR million). Credit loss ratio (basis points) (1). Effective Tax rate. Turnover - Factoring (in EUR million). Change Q1 2006. (10.8%) 8.6% (2). 8.6%. 11%. 11% 11%. 11%. 9,793. 8,281 9,793. 18% 8,281. Q1Change 2007 1.48%. Change Q4 2006. 1.40% 1.48%. 1.40%. 153,410 162,648. 153,410 6%. (3). 17(3). 17. 53.3%. 72.2% 53.3%. 72.2%. 162,648 *. (2). Q4Q12006 2007. (10.8%). (10.8%) 8.6% (2). 8.6%. 11%. (2%) 11%. (2%). 9,793 18%. 9,576 9,793. 9,576 2%. Change. 6%. (2). 2%. (1) As a % of average Credit Risk-weighted commitments. (2) Refers to Full Year 2006.. Bottom. Bottom. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Q1 2007 Net interest margin (1).

(21) 21. Key Performance Indicators Q1 2007. FYQ1 2006 2007. Change FY 2006. Q1Change 2007. 81.6. 79.0 81.6. 3% 79.0. 81.6 3%. 79.0 81.6. 3% 79.0. 3%. 0.7. 7.00.7. 7.0. 0.7. 2.00.7. (65%) 2.0. (65%). 14,945. 14,330 14,945. 14,330 4%. 14,945 4%. 14,330 14,945. 14,330 4%. 4%. 208,305. 178,956 208,305. 178,956 16%. 208,305 16%. 178,956 208,305. 178,956 16%. 16%. - Mortgages. 3,315. 3,183 3,315. 3,183 4%. 3,315 4%. 3,183 3,315. 3,183 4%. 4%. - Consumer Loans. 3,331. 3,331 2,988. 11% 2,988. 3,331 11%. 2,988 3,331. 11% 2,988. 11% 6%. Funds under Management Private Banking (in EUR billion) - In/Out flow. # of FTEs. Loans to Customers Product View (in EUR million). Q4Q1 2006 2007. Change Q4 2006. Change. 105,559. 99,843 105,559. 99,843 6%. 105,559 6%. 99,843 105,559. 99,843 6%. - Reverse Repo's. 39,151. 37,649 39,151. 37,649 4%. 39,151 4%. 37,649 39,151. 37,649 4%. 4%. - Securities Financing. 43,141. 43,141 22,091. 22,091 95%. 43,141 95%. 22,091 43,141. 22,091 95%. 95%. - Other LtC. 13,808. 13,202 13,808. 13,202 5%. 13,808 5%. 13,202 13,808. 13,202 5%. 5%. - Impaired loans. 2,726. 2,780 2,726. (2%) 2,780. 2,726 (2%). 2,780 2,726. (2%) 2,780. (2%). - Impaired loans as a % of total loans to customers. 1.3%. 1.6% 1.3%. 1.6%. 1.3%. 1.6% 1.3%. 1.6%. RWCs - End of period (in EUR million). 192,199. 172,528 192,199. 172,528 11%. 192,199 11%. 172,528 192,199. 172,528 11%. 11%. - Credit RWCs. 171,238. 154,057 171,238. 154,057 11%. 171,238 11%. 154,057 171,238. 154,057 11%. 11%. - Market RWCs. 20,961. 18,471 20,961. 18,471 13%. 20,961 13%. 18,471 20,961. 18,471 13%. 13%. Target core equity (in EUR million). 11,532. 10,352 11,532. 10,352 11%. 11,532 11%. 10,352 11,532. 10,352 11%. 11%. 18%. 20% 18%. 20%. 20% 18%. 20%. - Commercial Loans. Credit Quality (in EUR million). Assets under Administration (in EUR billion) Assets under Custody (in EUR billion) Total Outstandings - Leasing (in EUR million) Total Outstandings - Factoring (in EUR million). Average 1-day, 99% VAR Global Markets (in EUR million). 18%. 98. 9698. 2%96. 98 2%. 9698. 2%96. 2%. 326. 314 326. 4% 314. 326 4%. 314 326. 4% 314. 4%. 10,427. 10,198 10,427. 10,198 2%. 10,427 2%. 10,198 10,427. 10,198 2%. 2%. 1,698. 1,532 1,698. 11% 1,532. 1,698 11%. 1,532 1,698. 11% 1,532. 11%. 31. 2531. 24%25. 31 24%. 2531. 24%25. 24% Bottom. Bottom. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Return on target core equity.

(22) 22. Analysis. The new organisational set-up of Merchant & Private Banking (MPB) combines the Merchant Banking and Commercial & Private Banking businesses. The existing model at the two businesses has been enhanced and the organisation aligned around client groups (Commercial, Private, Corporate/ Institutional/Public, Energy/Commodities/Transportation) and skills (Global Markets, Investment Banking, Clearing/Funds/ Custody, Specialised Financial Services). Several compelling reasons were behind this new model, such as the better exploitation of cross-selling opportunities, as well as potential for further operational synergies. Merchant & Private Banking’s net profi t for the first quarter of 2007 came in at EUR 622 million, a 7% decrease in comparison with the high base reported for the first quarter of 2006. Strong commercial activity was registered at most of the business lines, and especially at Commercial Banking and Private Banking. Net profit actually more than doubled compared with the fourth quarter of 2006, mainly due to a rise in income and releases in impairments, but also to sustained efforts to keep costs down. MPB recorded total income of EUR 1,474 million, up 4% compared with the first quarter of 2006, which benefited from much higher realised capital gains. The main drivers were net interest income (up EUR 114 million or 23% year-on-year) and solid trading (up 14% year-on-year to EUR 329 million), largely offset by lower ALM income and the – EUR 24 million negative impact of the credit hedging portfolio in the first quarter. Income grew at almost all of the business lines. Global Markets, especially, showed strong resilience to turbulent market conditions, with Equity Trading and Derivatives as well as Securities Financing turning in a strong performance. Total income was 25% up on the last quarter of 2006, mainly due to significant increases at Treasury and Trading, as well as in net interest Income. Net interest income on interest-bearing products (NII) increased sharply to EUR 603 million, up 23% on the first quarter of 2006. Almost all business lines contributed to this growth, with increasing volumes, driven by market liquidity and the continuance of a benign credit environment, more than offsetting margin pressure. Corporate/Institutional/Public Banking (CIPB) showed an increase of 45% in net interest income compared with the first quarter of 2006 on the back of higher loans to customers and releases from interest provisions as a consequence of the benign credit environment. Commercial Banking saw its NII increase by 11% year-on-. year, helped by higher loans to customers and the positive impact of interest provision releases. Overall, margins on both deposits and credits went down by 10 bps. Non-interestmargin-related revenue growth partly compensated for this. Energy/Commodities/Transportation (ECT) activities reported NII up as much as 28% on the first quarter of 2006, thanks mainly to increased business i.e. energy deals in the UK and commodities and transportation deals in Hong Kong and Singapore. Clearing/Funds/Custody (CFC) showed a robust increase in net interest income (up 23% year-on-year) on the back of the higher financing requirements of professional counterparties who used the services of Clearing and Custody as well as Prime Funds Solutions. Credit line utilisation at Prime Funds Solutions was 15% higher at the end of March 2007 than a year earlier. The shape of the yield curve was behind the continuation into the first quarter of 2007 of the downward trend at Private Banking (PB) seen in the second half of 2006, putting pressure on the margins of cash-related products. Total Merchant & Private Banking NII was up 13% on the fourth quarter of 2006. The main contributors to this growth were CIPB with a 29% increase to EUR 125 million underpinned by volume growth and upfront fees, and ECT (up 18% quarter-on-quarter to EUR 73 million) due to healthy volumes especially as regards commodities. Net commissions and fees improved by 3% to EUR 350 million compared with the first quarter of 2006. All business lines were up or at least stable at a high level. Private Banking, Specialised Financial Services and Clearing and Funds under Custody reported solid growth, which was offset partly by Global Markets and Investment Banking. Service fee income increased by a strong 12% year-onyear, attributed mainly to Clearing/Funds/Custody helped by the sustained growth of assets under custody (EUR 326 billion, up 14% year-on-year) and assets under administration (USD 130.9 billion, up 26% year-on-year). Private Banking’s recorded a 13% increase in fee income in line with a 14% increase in funds under management. Total funds under management amounted to EUR 81.4 billion compared with EUR 71 billion a year earlier. Net inflow at Private Banking amounted to EUR 0.7 billion in the first quarter. Lastly, Specialised Financial Services benefited from higher volumes at Fortis Commercial Finance (Factoring) and at Fortis Lease Group. Its commissions and fees were 8% up on the first quarter of 2006. The 3% increase in net commissions and fees at MPB level should be viewed from the perspective of the downward movement at Global Markets and Investment Banking, mainly due to the higher commissions paid on the increasing business in securities transactions at Global Markets. Compared with the fourth quarter of 2006 MPB’s net commissions and fees decreased only slightly (2%), mostly due to lower net commissions and fees at Investment Banking owing to fewer Corporate Finance deals in the first quarter.. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. • Very robust growth of net interest income in the fi rst quarter of 2007 • Strong Treasury and Financial Markets results • Commissions at high levels • Costs growth refl ects scope changes, FTE hiring and investments.

(23) 23. Treasury and Financial Markets had a very strong first quarter 2007 with revenues up by a significant 14% year-onyear to EUR 329 million. This was substantially higher than the EUR 116 million for the fourth quarter of 2006, which suffered as a result of higher losses on credit hedging, as credit spreads more than halved in the second half of 2006. The Treasury and Financial Markets result includes several non-trading related contributors amounting to EUR 101 million in the first quarter of 2007. These include amongst others: - Global Securities Financing (GSF), which generated income of EUR 46 million in the first quarter. It is a seasonal clientdriven business that entails only a very limited credit and market risk. - Investment Banking (includes Private Equity, amongst others) which generated income of EUR 50 million, and benefited from private equity exits and revaluations but came out lower compared with its very high first quarter of 2006. - Credit Portfolio Management, which manages credit risk at Merchant & Private Banking level. Its marking-to-market of the credit protection bought had a negative impact of EUR 24 million on first quarter 2007 Treasury and Trading results. Adjusted for the non-trading-related items mentioned above, Treasury and Financial Markets’ trading income amounted to EUR 228 million. A more accurate assessment of the actual trading performance can be made by taking the tax impact of these trading results into account (grossing-up), as trading positions are managed on an after-tax basis. This grossing-up effect came to EUR 41 million in the first quarter of 2007 and was lower compared to the same period last year as equity markets rose less compared to the very strong first quarter of 2006. Underlying trading income, after adjustment for grossingup, therefore amounted to EUR 269 million, virtually stable year-on-year. The strong performance of the Global Equities Group, which increased 40% year-on-year thanks to a strong derivatives business fully offset a lower contribution from Forex and Rates, which was negatively impacted by higher funding costs owing to a rise in short-term interest rates. This solid trading income was achieved despite market turbulence in February and tight market risk control: average. VAR for the quarter stood at EUR 31 million against EUR 25 million for full-year 2006. Other income declined on a yearly basis, mainly because of lower ALM allocation. The credit risk environment remained favourable enabling the business to book a net release of EUR 11 million. Few new loans required provisioning, and this was more than offset by releases in existing loans Total expenses were up 15% on the first quarter of 2006, with staff expenses showing an 18% year-on-year increase in line with 16% simultaneous growth in FTEs. This growth was partly due to changes in scope (particularly the acquisition of Fortis Energy Marketing and Trading). Other expenses were 10% up on the first quarter of 2006, mainly due to expenses related to investment in growth, such as IT enhancements, but also to scope changes. In comparison with the fourth quarter of 2006, total costs improved by 8%, with total staff expenses decreasing slightly and other expenses declining by 17% due to the one-offs in the fourth quarter indicated above. Taxation at MPB level remained stable compared with the low base in the first quarter of 2006, which benefited from the structure of trading results, leading to higher tax-exempt gains., The composition of trading results in the first quarter of 2007 resulted in fewer tax-exempt gains. Lower taxes because of the lower ALM contribution in the first quarter of 2007 compensated for this. Commercial achievements Update on new organisational structure In October 2006, the Fortis Executive Committee announced the reorganisation of the Fortis Group and in particular the integration of Merchant Banking and Commercial & Private Banking. The aim of the new organisation is to offer a wider range of expert solutions to a larger group of clients, to allow stronger international growth, and to foster greater alignment of strategy and more consistency in Fortis’s approach. Fortis has enhanced the client/product matrix model that already existed at the two units and has aligned its organisation around client groups (Commercial Banking, Private Banking, Corporate/Institutional/Public Banking and Energy/Commodities/Transportation) and skills (Global Markets, Investment Banking, Clearing/Funds/Custody and Specialised Financial Services). There were several compelling reasons for extending the model in this way. Firstly, a wide range of solutions was being under-exploited, e.g. providing Global Markets products to Commercial & Private clients, leasing solutions to corporate clients, and Private Banking services to Corporate and ECT. WorldReginfo - 5b0667f4-da9b-4d08-938e-c757eadc8aee. Capital gains on the investment portfolio amounted to EUR 55 million, driven by the revaluation of the private equity portfolio and gains realised on equity positions in particular..