KBC reiterates confidence in bancassurance concept

Regulated information * -
28 October 2009 (after trading hours)

As was  the  case  for  many  European  financial  institutions  that
received state support,  KBC has  submitted a strategic  plan to  the
European Commission for approval. The plan is currently being  talked
through with the European Commission in a very open and  constructive
way, and good progress has been  made. It is expected to be  approved
at the latest beginning of December.

As already communicated on various  occasions since the beginning  of
this year,  KBC here  reiterates the  main elements  of its  business
plan:

* KBC remains convinced of the strength of its integrated
  bancassurance strategy in Belgium and in its core markets in
  Central and Eastern Europe. On the other hand, the scope of its
  international corporate lending and investment banking activities
  will be significantly reduced. In so doing, KBC will build on its
  current strongholds, while significantly reducing the risk profile
  of the group.

* The reimbursement of State capital will be predominantly based on
  internal capital generation (retained earnings, shrinkage and/or
  divestment of non-core activities), while raising capital by
  issuing shares is not a preferred scenario.

* The business plan will allow KBC to maintain its solid solvency
  levels.


KBC will  communicate details  of the  plan once  it has  been  fully
evaluated by the European Commission.

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


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