fortis first half financial results 2008

Getting you there.

First half year 2008 net profit of EUR 1.6 billion

Net profit up 3% to EUR 830 million in second quarter, but environment is becoming more difficult

4 August 2008

Fortis first half-year 2008 results │4 August 2008 │ 2

Disclaimer

These pages are intended to provide investors with financial information about Fortis’s business plans. The financial information contained in this presentation has been prepared by Fortis and has not been audited. The figures are provided for information purposes only and are subject to the conditions and restrictions mentioned hereafter.

No warranty can be given by Fortis, either explicitly or implicitly, regarding the reasonableness, correctness or completeness of the information, forecasts and assumptions contained in these pages. The information here provided could be subject to change. This presentation and the information contained herein in no way replace any formal reporting. Investment considerations should continue to be based on periodical reporting and other information Fortis is required to disclose by law or stock exchange regulations.

Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions as well as on partial information and involve a certain degree of risk and uncertainty that could cause actual results or performance to differ materially from those expressed or implied in such statements. Actual results or performance may differ materially from those contained in such statements due to general economic conditions, market conditions, changes in laws and regulations, general competitive factors and other factors not specified here.


2 Financials

1 Strategic update

3 Conclusion

Agenda

Additional information- First half-year 2008 results- Structured Credit Portfolio


CEO & Senior Management priorities

Diligent and full execution of the accelerated capital strengthening plan

Provide financial flexibility through strict capital management

Bring look-through group core equity above target by end-2009

Enforce the disciplined and focused execution of our strategy

Swift integration of acquired ABN AMRO businesses

Sustain commercial momentum and step up costs-saving efforts

Restore confidence and stability with full transparency and clear communication


Accelerated capital plan announced on 26 June is being executed step by stepIt will enable Fortis to absorb the full consolidation of ABN AMRO planned for end of 2009, and develop our business furtherImpact completed measures: EUR 3.1 billion

AmountMeasure Status

Equity raising (ABO) Completed: core equity reinforced end-Q2 20081.5

Interim 2008 dividend cancelled Completed: core equity preserved end-Q2 2008 1.4

Capital relief / Sale & lease back Securitisation ▪ 1st deal completed (EUR 115m relief in Q2)▪ Additional transactions planned

Real estate ▪ 1st deal completed (EUR 60m relief in Q3)▪ Additional transactions planned, of which one to be closed shortly (EUR ~70 m relief)

1.5

Non-dilutive capital instruments Planned2.0

Disposals non-core assets 2.0 AAAM 1 ▪ IAM sale completed (EUR 40m relief in Q3)▪ Good progress on sales of AAAM non-core

Fortis ▪ Businesses up for sale identified

Diligent execution of the capital plan

1 Discontinued operations


Three main items drove the net profit downwards over H1 2008

ReportedH1 ’081,638

ReportedH1 ’072,782

Credit marketturmoil

ABNAMRO

contribution

Impairmentsloan

portfolio

Capitalgains

(Group)

2,062

(182)

(59)

28

(149)

1,185

Insurance

Banking

General

765

(44)

(382)

(273)

(107)

Operationalperformance

31

(189)18

642

(56)

(14)


219.7 215.0212.5

H1 2008H1 2007 FY 2007

EURbn

248.5 284.0264.8

H1 2008H1 2007 FY 2007

EURbn

Underlying lending growthCustomer Deposits

Funds under Management Insurance - Gross Inflow

7.03.23.1

EURbn

H1 ’08H1 ’07 H1 ’08

Life

7.0

H1 ’07

Non-life

Sustained commercial performance despite adverse conditions

+14% +7%

=

+5%

209.3

283.0

207.8

H1 2008H1 2007 FY 2007

Net intake 10.3 13.9 (0.5)

(2%) +1%

88.7Transferfrom AAAMon 1 Apr 08

EURbn


ABN AMRO transition & integration – Progress status

Integrationon track

Integration plans finalised, including target operating model and organisation 1

Integration costs and synergies in line with projections

Clients

Opening of 3 new business centres for Commercial Banking, preparing the integration towards 74 centres in the Netherlands (on a total of 175 worldwide)ATM of both banks accessible in the Netherlands for all customers without limitationsSuccessful distribution of ‘Best of both worlds’ note (asset management structured products)Involvement of top management with key Private Banking clients

Cultural integration

Cultural integration & leadership programmes ‘Connecting for Growth‘ (300 senior managers of ABN AMRO and Fortis) and ‘Talent for Growth’ (leaders in talent pool) completed‘Leading for Growth’ programme for 3,000 managers to be launched

EC Remedies1

Agreement (SPA) with Deutsche Bank signed on the sale of two corporate client units, 13 commercial advisory branches, parts of HBU and factoring company IFNSeparation of activities startedProcess for closing in Q4 2008 ongoing

Asset Management

integration

AAAM transferred to Fortis on 1 April 2008, first business unit to exit the consortiumIntegration of product lines and sales channels, rebranding to Fortis InvestmentsAll senior management nominated and 90% of staff formally appointedAdvisory arrangements enforced globally, facilitating asset management by new teams All regulatory, legal structuring and compliance issues resolved

1 Subject to regulatory approval


ABN AMRO transition and integration – Next steps

Q1 2009Transfer Private Banking

activities in Jersey, Belgium,Gibraltar and Taiwan

Q4 2009Transfer all activitiesin the Netherlands

and start integration

Q4 2010Finalise

integration

Q4 2008Transfer ‘fast track’ activities

Factoring, Leasing, Groenbank, Cards, Private Banking activities in Germany,

Spain, France, Switzerland, Luxembourg,Hong Kong, Singapore, Dubai and China

Q4 2008Expected closeEC remedies

Q4 2009Systems fold-in in

Retail, Merchant & PrivateBanking Netherlands

20092008 2010Q2 Q3Q1 Q4 Q2 Q3Q1 Q4Q2 Q3Q1 Q4

► All subject to regulatory approval


2 Financials

1 Strategic update

3 Conclusion

Agenda



Key Messages

In the first half of 2008 our businesses, including the acquired ABN AMRO

activities, performed satisfactory in turbulent market conditions

most of the commercial activities were still able to grow underlying revenues

at the same time, costs were well controlled.

but we observe that the environment is becoming more difficult

The expected close of the EC remedies and future divestments and partnerships

will increase the volatility in quarterly results in the second half of 2008

Solid capital position end-Q2 2008, diligent execution of the capital plan will enable

full consolidation of ABN AMRO and ensure future financial flexibility


Net profit mainly impacted by credit market turmoil, impairments and lower capital gains

H1 2008 driven downwards by three main items

Q2 2008 net profit up 3%

H1 ’081,638

H1 ’072,782

Creditturmoil

AA impact

Impairmentsloan portfolio

Capitalgains

2,062

(182)

(59)

28

(149)

1,185

Insurance

Banking

General

765

(44)

(382)

(273)

(107)


31

(189)

(14)

18

642

(56)

Q2 ’08830

Q1 ’08808

Creditturmoil

Impairmentsloan portfolio

Capitalgains

Insurance

Banking

General


721

116 (79)

(57)465

219

(132)

(249)

(95)

6

167

(57)

145

69

423

(41%)

(16%)

(43%)

3%

93%

(36%)

1 Excluding integration costs


Insurance – Gross inflow up and continued profitable underwriting

Annualised PremiumEquivalents (APE)

Stable inflow at EUR 7 billiongrowth in International (Portugal) and Netherlands (pension-related contracts)offset by lower inflow in Belgium (fewer campaigns and competition from bank savings products)

Technical reserves up 3% to EUR 90.5 billionNet profit decreased from EUR 556 m to EUR 417 m due to credit turmoil impact (EUR 162 m)

Technical Reserves Gross Written Premiums (GWP)

GWP up 5% to EUR 3.2 billionstrong growth in Accident & Health in Netherlands and Belgiumdecrease at International (EUR/GBP impact)

Combined ratio at 96.2%, driven by cost controland focus on profitable underwritingH1 07 impacted by Kyrill and floods in the UKNet profit up 8% to EUR 225 m despite credit market turmoil net impact of EUR 20 million

Combined Ratio

699

H1 07

719

H1 08

87.7

H1 07

90.5

H1 08

(EUR bn)(EUR m)

+3%

3,072

H1 07

3,233

H1 08

99.0%

H1 07

96.2%

H1 08

(EUR m)

+5%

Life Non-life

+3% (3%)


Commercial activities still able to grow underlying revenues

H1 ’07Reported

Net interest income and Net commissions & fees performed satisfactory under challenging conditionsLower capital gains and treasury & fin. markets results impacted total incomeThe impact of grossing up, due to an unfavourable trading mix with lower deductible losses than in H1 2007, negatively impacted the effective tax rate in H1 2008

H1 ’08Reported

H1 ’08Adjusted

H1 ’07Adjusted

+2285,752

5,980 +110 (43) (169)

(144)+44

+1835,832

6,090+117 (47)

Adjust.2H1 ’07

Net interestincome

+4%

NetComm.& fees(3%)

CapitalGains

(41%)

Treas.& finan.markets(12%)

Divid.& othersex-AA+30%

Otherincome

+73%

+53

Underlying 1client-driven income up 2%

CredithedgeimpactH1 ’08

Grossup

impactH1 ’08

ABNAMROimpact3H1 ’08

(2%)

+6%

Market-drivenincome 1down 19%

Negativeimpact on tax

+5

Otheradjust.

H1’08

1 See slides 32-33 in Annex for details on computation of underlying growth2 Adjustments on H1 ’07 reported income: grossing up effect (+162), credit hedge (+37), correction FHB (+29)3 Profit contribution AA (+198), financing costs AA in Bank (-270), AAAM funding (-65 in NII, + 22 in T&FM), AAAM comm. & fees (+68)


Cost measures kept underlying Banking expenses stable

Total expenses (underlying1)(EUR m)

Total expenses, reported up 4%, largely impacted in H1 2008 by:- the integration costs of ABN AMRO (EUR 100 million)- the transfer of AA Asset Management (EUR 85 million)

Improvement in Cost / Income ratio (down 1% to 57%) and positive 1.4% operating leverage despite the impact of ABN AMRO related charges

►Underlying1 total expenses down 1% year-on-year (excl. AA integration and AAAM transfer costs)Underlying staff expenses up 2%, while underlying FTEs were down 1% (excl. AAAM integration)Decrease in non-staff expenses as a result of cost containment measures

►Underlying1 total expenses remained stable quarter-on-quarter

Number of FTEs

1 See slide 40 in Annex for details on computation of underlying growth

46,080

H1 07

47,737

H1 08

YoY

+4%

Benelux62%

OutsideBenelux

38%

UnderlyingFTEs

down 1%3,334

H1 07

3,298

H1 08

YoY

1,645

Q1 08

1,653

Q2 08

QoQ

Stable (1%)


Credit loss ratio moving closer to through-the-cycle level

Change in impairments Impaired loans

Credit loss ratio on loan portfolio

Q1 07 Q2 08Q2 07 Q3 07 Q4 07 Q1 08

(in bp, annualised)

5 0 13

(18)

12

25

19 bp in H1 08

2 bp in H1 07

Loans to customers and CRWCs1

Loans to Customers H1 08 H1 07 ChangeRetail Banking 73,629 80,701 (9%)Private Bk. & Asset Mgmt. 10,224 8,083 26%Merchant Banking 228,310 210,808 8%Other Banking 49,122 28,955 70%Total 361,285 328,547 10%Average CRWCs 256,101 239,257 7%

1 Credit risk-weighted commitments

Stable level of impaired loans and coverage (33%)Q1 07 Q2 08Q2 07 Q3 07 Q4 07 Q1 08

(EUR m)

26 9 81

2,751

366

479

(116)82 161

Structured credits

Loan Portfolio

YoYStable

5,294

H1 07

5,273

H1 08

As % of totalloans to customers1.6% 1.5%

(EUR m)

Increase in commercial loans (Merchant Bk.)Mortgages securitisation (Retail ► Other Bk.)

83


Additional impairments on structured credit portfolio 1

Total net exposure of EUR 41.7 billion, down EUR 1.6 billion over Q2 ’08 due to:- additional write-downs - the impact of repayments, changes in exchanges rates and selective sales

Insurance ABS► EUR 2.2 billion net exposure, down EUR 0.3 billion in Q2 ’08 due to:

- EUR 0.3 billion impact of repayments, exchanges rates and sales- EUR 47 million change in value for lower-rated investments

Credit SpreadPortfolio

► EUR 37.6 billion net exposure, down EUR 0.9 billion in Q2 ’08 due to:- EUR 0.8 billion impact of repayments, exchanges rates and sales- EUR 67 million in impairments, primarily on downgraded subprime,

midprime and Alt-A securities

CDO Origination

► EUR 1.9 billion net exposure (61% total coverage ratio)

Total net exposure decreased by EUR 6.5 bn in H1 2008

0.1bn

0.1bn

1.7bn

Net exposure Coverage ratioQ2 impairm.

74% (up from 70%)14mWarehousing

74% (up from 63%)58mSS Mezzanine CDOs

57% (up from 48%)340mSS High Grade CDOs

1 Update on structured credit portfolio available in Annex


ABN AMRO activities delivering sound underlying performance

BU NL underlying1 net profit up 12%, supported by higher treasury & financial markets results and a 1% decrease in underlying expensesBU PC underlying1 net profit down 7% as lower financial markets and divestments impacted AuM (down 16%) and commissions, offsetting an 11% decrease in expensesAAAM transfer in Q2 08 and interest revenues on sale to Fortis distorted H1 08 results

Underlying1 net profit down 2% in H1 2008 due to impact of AAAM transfer

1 Excluding integration costs 2 Q2 08 results limited to France, Argentina and interests received on AAAM sale proceeds

Underlying1 net profit

BU Asset Management2

BU Private Clients

BU Netherlands

(EUR million)

711

110 56

165154

436 488

H1 07H1 08

(2%)

*

(7%)

12%

Chg.

697

BU NL underlying1 net profit up 14%, a.o. due to the adjustment of interest revenues and lower expenses (down 6%)BU PC underlying1 net profit up 13% due to a10% decline in underlying operating expenses, offsetting a 3% decrease in AuMAAAM transfer in Q2 08 and interest revenues on sale to Fortis distorted quarterly comparison

Underlying1 net profit up 18% in Q2 2008

Underlying1 net profit

BU Asset Management2

BU Private Clients

BU Netherlands

(EUR million)

319

19 37

7281

228 260

Q1 08Q2 08

18%

*

13%

14%

Chg.

378


Expected close of the EC remedies and future divestments and partnerships will increase the volatility in quarterly results in the second half of 2008

Sale imposed by the European Commission in order to reduce combined market share in Commercial Banking in the NetherlandsOctober 2008 deadline for sale set by ECSale agreement signed on 2 July 2008, closing expected in Q4 2008Sale will impact Fortis through:

- realised loss of EUR 0.3 bn (sale price of EUR 0.7 bn vs. EUR 1 bn NAV)

- capital required of ~ EUR 0.5 bn for credit risk coverage on assets sold, released over time as loans mature

- credit protection valuation (recorded as a financial guarantee). Unrealised loss will revert over time depending on credit performance of transferred assets.

- Write down of intangibles on divested assets (~ 10% of total ABN AMRO intangibles)

Fortis Ping An Investments JV- Ping An will acquire 50% of Fortis Investments

for a total EUR 2.1 billion consideration- Solvency impact of ~ EUR 2.15 billion through:

- a EUR 675 million capital gain on Fortis Investments revaluation (P&L impact)

- the recognition of the minority interests for EUR 1,475 million (Balance Sheet impact)

Interparking-Vinci JV will create the largest European public car park operator. Transaction is expected to generate a ~ EUR 0.5 billion capital gain and small relief on required capital.Other divestments and partnerships may materially impact net profit after divestments. Exact timing remains uncertain but this should lead to substantial volatility between quarters. Net impact on look-through solvency should however remain positive (potential capital losses offset by reversal of goodwill).

Strategic partnershipsEC remedies


Equity method – H1 2008 evolution (under BIS I)

Equity after prudential filters

Non-Innovative T1

Retainedprofit

H1 2008

Capitalinstruments

(NITSH)

Impact equity

markets & other

Goodwill & intangibles

AAAM

Capitalraising(ABO)

Q4 2007 Q2 2008

1.6

6.8(2.1)

17.8

1.1

5.7

20.4

Core Equity26.1

Core Equity24.6

(3.6)

1.5

(EUR billion)


Equity method – Sound Q2 2008 solvency

(EUR billion)

7.4%

ActualCore Equity

Target Core Equity

Bank

20.617.1

8.0 (4.4)

21.024.6

Group leverage

Bank

InsuranceQ2 2008Equity method

Q2 2008Equity method

7.2(3.6)

Group leverageInsurance

6.0%

196%

175%

15%

15%

Core Equity EUR 4.0 billion above targetRegulatory

Limits


EUR 17.8 billion

(EUR 30.2 billion before deduction of participations)

Non-innovative Hybrids

EUR 6.8 billion*

Innovative Hybrids EUR 3.4 billion

Max. 15% of tier 1 capital**► currently 8%

Max. 33% of tier 1 capital**

► currently 17%

Minimum 67%of tier 1 capital**► currently 75%

Cor

e eq

uity

cap

ital (

EUR

24.

6 bn

)

Tier

1 c

apita

l (EU

R 2

8.0

bn)

4.0

* Adjusted for deferred tax effects and recognition of the option premium in core equity** Tier 1 capital before deduction of participations


Look-through method –Execution of capital plan to bring core equity above targets

7.4% Above target

196% Bank core tier 1

Group core equity

Insur. core solv.

Q2 2008Look-

through

ActualCore Equity

Target Core Equity


Fortis Ping An 2.1)Investments JV Interparking JV 0.5)Delta Lloyd JV (0.2)

5.1 25.7

20.6

~2.4 ~(4.4)24.6

22.6

Participation RFS Hold. 12.1)Goodwill ABN AMRO (19.4)Intangibles ABN AMRO (2.9) Goodwill & intang. AAAM 3.6)Capital support (CSA) 2.5)EC remedies (0.3)

Divestments& acquisitions

Consolidationtreatments

Consolidation treatments, divestments & acquisitions

26.64.0

Non-dilutive instruments & non-coredisposals

(1.5)

Capitalrelief

transactions

Look-through

plan

24.2

Above target

RetainedearningsH2 ’08 &FY ’09

ControlledRWC/RMM

growth

End2009

End2009

(EUR billion)

>6.0% >175%

Impact consolidation RWC AA and EC remed. 4.9Delta Lloyd - AA JV 0.2


2 Financials

1 Strategic update

3 Conclusion

Agenda



Conclusion

First half year 2008 net profit of EUR 1.6 billion

Banking net profit impacted by

credit market turmoil

impairments on loan portfolio

lower capital gains

but the commercial performance of businesses remained satisfactory

Insurance net profit up when excluding net of tax impact of credit market turmoil

Diligent execution of the capital plan will enable the full consolidation of the

acquired ABN AMRO activities and ensure future financial flexibility

Getting you there.


2 Structured Credit Portfolio

1 First half-year 2008 results

Additional information


Results overview

Net profit of EUR 1,638 million in H1 2008, including a total negative impact of the credit market turmoil of EUR 591 millionQ2 2008 net profit up 3% quarter on quarter to EUR 830 million, including a total negative impact of the credit market turmoil of EUR 362 million (vs. EUR 229 million in Q1 2008)

H1 '08 H1 '07 % Chg. Q2 '08 Q1 '08

Net profit before results on divestments 1,638 2,782 (41%) 830 808Banking 1,185 2,062 (43%) 465 721Insurance 642 765 (16%) 423 219General (189) (44) * (57) (132)

Results on divestments - - - - -

Net profit 1,638 2,782 (41%) 830 808

of which ABN AMRO 198 - - 114 84

Weighted average number of shares 2,195 1,548 42% 2,198 2,191Earnings per share (EUR) 1 0.75 1.80 (58%) 0.38 0.37Net equity per share (EUR) 12.48 12.51 0% 12.48 14.08Return on Equity 2 11% 22%

1 Based on average number of outstanding shares / 2 Rolling average over the last four quarters

% Chg.

3%(36%)

93%(57%)

-

3%

-

0%3%

(11%)


Overview of main impacts on Fortis and ABN AMRO results

StandaloneH1 ’08

2,477

StandaloneH1 ’08

3,068

Credit marketturmoilimpact(net)

Inte

grat

ion

cost

s (n

et o

f tax

)Reported

H1 ’08

1,638

Fortis

1,638

AA

697

307

11483

(4)198591

27169

Fortis

1,780

(198)

AA

697

Fortis

2,371

Shar

edA

sset

s

Fina

ncin

gco

sts

(net

of t

ax)

AA

pro

fitco

ntrib

utio

n

RFS

Hol

ding

s

Pur

chas

eA

ccou

ntin

g

Inte

grat

ion

cost

s (n

et o

f tax

)

AA

pro

fitco

ntrib

utio

n

H1 ’072,784(15%)


Impact of credit market turmoil

Bank H1 2008 H1 2007 Q2 2008 Q1 2008Impairments- Gross impact (845) - (479) (366) - Net impact (540) - (309) (231)

Credit portfolio hedge- Gross impact 183 (37) (28) 210 - Net impact 131 (27) (20) 151

Total impact- Gross impact (662) (37) (507) (156) - Net impact (409) (27) (329) (80)

Insurance H1 2008 H1 2007 Q2 2008 Q1 2008- Gross impact (256) - (47) (209) - Net impact (182) - (33) (149)

Fortis H1 2008 H1 2007 Q2 2008 Q1 2008- Gross impact (918) (37) (554) (365) - Net impact (591) (27) (362) (229)


2,089 1,594Net profit - adjusted for credit market turmoil

27409 Net impact credit market turmoil

2,0621,185 Net profit - reported

(3,334) (3,483)Total expenses

(36)(1,088)Change in impairments

5,752 6,090 Total income

H1 2007H1 2008EUR million

(24%)

-

(43%)

4%

*

6%

Change

Tax exp. / Discontinued operations / Minorities (320) (334) 4%

Net profit at EUR 1,185 million, incl. EUR 409 million net impact of credit market turmoilTotal income up 6%: lower net interest income (due to ABN AMRO related financing costs) and capital gains were offset by higher treasury & financial markets results and ABN AMRO contribution ABN AMRO contribution of EUR 198 million. When taking financing, integration and other costs into account - totaling EUR 257 million - the total ABN AMRO impact on Banking was EUR (59) million.Total expenses growth contained to 4% despite the impact of ABN AMRO integration costs and the transfer of ABN AMRO Asset Management to Fortis on 1 April 2008

►Underlying performance satisfactory despite difficult market conditions►Net profit down due to the impact of credit market turmoil, ABN AMRO-related financing/integration

costs, lower capital gains and higher effective tax rate

Banking results mainly impacted by the credit market turmoil


Banking – H1 ’08 vs. H1 ’07 analysis

Net profit ΔIncome

ΔImpairm.

ΔExpenses

ΔTax

ΔMinorities

Net profit

H1 '08 H1 '07 Chg. %Total income 6,090 5,752 6% Change in impairments (1,088) (36) *Total expenses (3,483) (3,334) 4% Pre-tax profit 1,520 2,383 (36%) Tax (343) (312) 10% Discontinued operations 24 - *Minorities (15) (9) 67% Net profit 1,185 2,062 (43%)

Total income up 6%:lower net interest income (due to ABN AMRO financing costs) and capital gains offset by higher treasury & financial markets results (up thanks to gains on a credit hedge) and ABN AMRO contribution

Impairments impacted by write-downs on structured credits and higher impairments in loan portfolio

Expenses up 4% only thanks to costs containment and monitoring measures

Net profit down 43%. Excluding write-downs on structured credits and the gain on credit hedge, net profit was down 24% due to the financing & integrations costs of ABN AMRO and lower capital gains

H1 ’072,062

+338(1,052)

(149) (31) (6) H1 ’081,185

ΔDiscont.

+24


Main elements impacting total income (1/2)

Adjusted figures provided for period on period comparison purposes onlyQ2 2008 reported figures are the relevant base for upcoming quarters, except for the impact of AAAM transfer funding on net interest income (which should not impact next quarters)

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeNet interest income - reported 2,417 2,618 (8%) 1,167 1,250 (7%) - Financing costs ABN AMRO 270 134 136 - Funding transfer ABN AMRO Asset Management 65 65 - Reclassification of fees on unused credit lines 18 18 - Correction at Fortis Hypotheekbank 29 - Others (5) 8 (5) Net interest income - adjusted 2,765 2,655 4% 1,379 1,386 (0%)

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeNet commissions and fees - reported 1,506 1,490 1% 783 723 8% - ABN AMRO Asset Management inclusion (68) (68) - Reclassification of fees on unused credit lines (18) (18) - Retrocession fees to ABN AMRO (Merchant Bk.) 19 19 - Others (8) Net commissions and fees - adjusted 1,439 1,482 (3%) 716 723 (1%)

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeCombined NII & NCF - adjusted 4,204 4,137 2% 2,095 2,108 (1%)


Main elements impacting total income (2/2)

Adjusted figures provided for period on period comparison purposes only

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeTreasury & financial markets - reported 1,404 1,008 39% 579 826 (30%) - Grossing up (117) 162 (1) (116) - CDS hedge (183) 37 28 (210) T&FM excl. grossing up and credit hedge 1,104 1,207 (9%) 606 500 21% - Funding transfer ABN AMRO Asset Management (22) (22) - Retrocession fees to ABN AMRO (Merchant Bk.) (19) (19) Treasury & financial markets - adjusted 1,063 1,207 (12%) 565 500 13%

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeDividend & other invest. income - reported 390 148 164% 254 137 85% - ABN AMRO profit contribution (198) (114) (84) Dividend & other invest. income - adjusted 192 148 30% 140 53 164%

No adjustment on items 'Capital gains' and 'Other income'

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeTotal income - reported 6,090 5,752 6% 2,912 3,178 (8%) - Total adjustments (258) 228 17 (274) Total income - adjusted 5,832 5,980 (2%) 2,929 2,904 1%


Total income up 6% despite ABN AMRO financing costs

H1 ’07

5,752

(201) +16

(169)

+396

+242

6,090

Net interestincome(8%)

Netcommissions

& fees+1%

Capital gains

(41%)

Treasury & financialmarkets+39%

Otherincome

+72%

Net interest income and net commissions & fees impacted in H1 2008 by ABN AMRO financing and AAAM integration transfer ► underlying1 combined growth of NII and NCF was up 2%Higher treasury & financial markets and the contribution of ABN AMRO offset lower capital gains

Dividend & other invest.

income-

+53

Up6%

Up 4% excl. AA financing and

AAAM transfer

YoY impact credit hedgeEUR +220m

ABN AMROcontributionEUR +198m

H1 ’08

1 See slides 32-33 in Annex for details on computation of underlying growth


Banking – Sound commercial performance in adverse conditions

Net interest income 1

Net commissions & fees 1

Treas. & financial markets 2

2,655

H1 07

2,765

H1 08(EUR m)

+4%

1,482

H1 07

1,440

H1 08

(3%)

(EUR m)

1,207

H1 07

1,104

H1 08

(9%)

(EUR m)

Net interest income (down 8% in H1 2008) impacted by financing costs on ABN AMRO acquisition and funding of AA Asset Management transfer

►Underlying1 net interest income up 4%, slightly lower than the 5% growth in credit risk-weighted commitmentsNet interest margin will be affected by the increased competition on savings

Net commissions & fees up 1%, benefiting from AAAM integration►Underlying1 net commissions & fees down 3%

- lower fees in corporate finance, brokerage and asset management- offset the higher revenues related to loans and payment services

Total net outflow limited to EUR 0.5 billion in H1 2008

Results benefited from the credit portfolio hedge revaluation and higher pre-tax revenues (but lower post-tax due to mix in capital gains/losses)

►Underlying2 treasury & financial markets results down 9%Trading results down 9%, but already close to annual floor of EUR 500 mNon-trading results also fell by 9% as higher GSFG results were offset by lower Private Equity results (lower gains on exits than in H1 2007)

1 See slides 32-33 for computation details / 2 Adjusted only for gross up and credit hedge impact


Resilient treasury and financial markets in adverse markets

Total Banking (EUR million) H1 '08 H1 '07 Change Comments

Treasury and financial markets - Reported 1,404 1,008 39% -

Grossing-up (117) 162 * More non-deductible losses on equities

Treasury and fin. markets - grossed up 1,287 1,170 10% Strong performance

▪ Trading 484 531 (9%) Already close to annual floor

▪ Non-trading 637 423 51% Positive hedge impact (Δ +220 YoY)

- GSFG 268 262 2% Rising despite higher liquidity costs

- Private Equity 98 143 (31%) Lower exits than in H1 '07

- Credit Portfolio Hedge 183 (37) * Benefited from spread widening in Q1

- Other non-trading at Merchant Banking 88 55 60% -

▪ Others1 166 216 (23%) Lower ALM contribution

Treasury and fin. markets - adjusted for gross up and credit portfolio hedge 1,104 1,207 (9%)

Trading results remained resilient on a high base, while gains on the credit portfolio hedge more than offset the lower contribution of ALM and Private Equity (lower exits)

1 Other Banking, Retail Banking, Private Banking and Asset Management


Solid underlying1 loan portfolio growth

Residential Mortgages

248,541

284,008

+6,359+7%

27,926

+22% +14%

2,038+25%

(1,487)

(13%)

Consumer Loans

Commercial Loans

Others 2

1 Underlying loan portfolio = total loans to customers excluding Reverse Repo’s and Securities Lending2 Government & official institutions and Others (mainly financial lease receivables and factoring)

H1 ’07 H1 ’08


Evolution of deposits

Demand Deposits

219,654

TotalCustomerDeposits

215,018

TotalCustomerDeposits

1,578

+2%(2,444)

(3%)(85)

(39%)

(3,685)(7%)

SavingDeposits

TimeDeposits

OtherDeposits

H1 ’07 H1 ’08

(2%)


Corporate loan portfolio by sector

EUR billion Q4 '07 Q1 '08 Q2 '08Agriculture, forestry and fishing 0.7 0.7 0.9Automotive 0.6 1.1 1.0Basic Metals 2.7 2.9 2.6Chemicals, Rubber & Plastic products 3.8 4.0 4.8Construction: Materials & Engineering 2.9 2.6 2.7Consumer goods 2.1 2.5 3.3Electricity, Gas & Water (supply) 4.9 5.2 5.1Financial services 4.9 6.3 7.2Holding & Other Services 6.2 6.6 7.5Machinery & Equipment 0.9 0.9 1.1Oil & Gas (raw mat. & extraction) 4.2 4.7 4.5Private persons 0.0 0.0 0.1Public & Social Services 2.0 2.2 2.1Raw & Intermediate Materials 0.3 0.3 0.2Real Estate 3.5 5.9 6.0Retail 1.1 1.1 1.2Supranational Organisation 0.4 0.5 0.2Telecom, Media & Technology 1.5 1.4 2.1Trade & Commodity finance 1.1 1.2 1.4Transportation 6.8 6.3 6.6Wood, Pulp & Paper products 0.2 0.2 0.3Miscellaneous 9.7 11.2 11.1Total 60.4 67.8 71.8


Main elements impacting total expenses

Adjusted figures provided for period on period comparison purposes onlyQ2 2008 reported figures are the relevant base for upcoming quarters

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeTotal expenses - reported (3,483) (3,334) 4% (1,793) (1,690) 6% - Integration costs ABN AMRO (100) (56) (45) - ABN AMRO Asset Management inclusion (85) (85) Total expenses - adjusted (3,298) (3,334) (1%) (1,653) (1,645) 0%

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeStaff expenses - reported (2,060) (1,934) 6% (1,032) (1,027) 0% - Integration costs ABN AMRO (61) (29) (33) - ABN AMRO Asset Management inclusion (29) (29) Staff expenses - adjusted (1,969) (1,934) 2% (974) (995) (2%)

H1 2008 H1 2007 Change Q2 2008 Q1 2008 ChangeOther expenses - reported (1,423) (1,400) 2% (761) (662) 15% - Integration costs ABN AMRO (39) (27) (12) - ABN AMRO Asset Management inclusion (55) (55) Other expenses - adjusted (1,329) (1,400) (5%) (679) (650) 4%


ABN AMRO contribution offset by financing & integration costs

EUR 313 million impact at Fortis, mainlyfinancing and integration costs(Bank EUR 257m, General EUR 56m)

(11) Purchase accounting on AAAM

38Net contribution transferred AAAM activities

Net profit contribution to Fortis

-Adjustment for results before acquisition date -

4RFS Holdings

(114) Purchase accounting

644 307Reported net profit

-(83) Integration costs (net) - recorded at AA

711 697Underlying 1 net profit

110 56BU Asset Management

165154BU Private Clients

436 488 BU Netherlands

H1 2007H1 2008EUR million

(52%)

-

(2%)

-

(7%)

12%

Change

(270)Financing costs (net)

(69)Integration costs (net) - recorded at Fortis

(115)Total impact on Fortis net profit

►The negative contribution of shared assets and impact of financing and integration costs brought the total net impact of ABN AMRO to a negative EUR 115 million in H1 2008

198

Underlying net profit showing resilience despite AAAM transfer

Recorded as income from participation

Impact of higher funding costs at ALM, lower Private Equity results and write-down on Unicredit stake

(67) (307)Shared assets *

(644)

-

-

-



Banking – Q2 ’08 vs. Q1 ’08 analysis

Net profit ΔIncome

ΔImpairm.

ΔExpenses

ΔTax

ΔMinorities

Net profit

Q2 '08 Q1 '08 Chg. %Total income 2,912 3,178 (8%) Change in impairments (640) (448) 43% Total expenses (1,793) (1,690) 6% Pre-tax profit 479 1,041 (54%) Tax (28) (315) (91%) Discontinued operations 24 - *Minorities (11) (4) *Net profit 465 721 (36%)

Total income down 8%:lower net interest income (due to funding of AAAM transfer), lower capital gains and lower treasury & fin. mkts (large gain in Q1)more than offset higher comm. & fees resulting from AAAM consolidation as of Q2

Impairments increase mainly due to higher impairments on structured credit portfolio (EUR 479m pre-tax in Q2 vs. EUR 366m pre-tax in Q1)

Expenses up 6% due to AAAM consolidation (underlying was flat)

Net profit down EUR 256 million quarter on quarter, due to negative impact of credit market turmoil (EUR 329m in Q2 vs. EUR 80m in Q1) and higher impairments on the loan portfolio

Q1 ’08721 (266)

(192)

(103)+287

(7) Q2 ’08465

ΔDiscont.

+24


Banking Total Income – Q2 ’08 vs. Q1 ’08 analysis

Q2 '08 Q1 '08 % Change

Net interest income on interest-margin products 1,167 1,250 (7%) Net commissions and fees 783 723 8% Capital gains on investment portfolio 65 182 (65%) Treasury and financial markets 579 826 (30%) Dividend and other investment income 254 137 86% Other income 65 61 6% Total incom e 2,912 3,178 (8%)

Net interest income down 7%, but stable when excluding the financing costs relating to the transfer of ABN AMRO Asset Management (AAAM) and reclassification of fees on unused credit linesNet commissions & fees up 8% due to the inclusion of AAAM, down 1% excluding this impactLower capital gains than in Q1, which benefited from capital gains on bondsTreasury and financial markets results down strongly with

lower revaluation on a credit portfolio hedge (delta QoQ EUR 238m) and lower trading resultsmore than offsetting higher Private Equity (exits) and GSFG revenues (Q2 seasonality)

Higher dividend (Q2 seasonality) and other investment income (contribution of ABN AMRO)


EUR million Q2 '08 Q1 '08 Chge.

Loans to Customers 361,285 333,481 8% Government and official institutions 5,790 5,168 12% Residential mortgages 97,929 96,241 2% Consumer loans 10,117 9,747 4% Commercial loans 154,948 142,461 9% Reverse repurchase agreements 48,564 37,831 28% Securities lending transactions 28,713 26,053 10% Other loans to customers 15,224 15,980 (5%) Loans to Customers (underlying) 284,008 269,597 5%

Loans to Customers – Product view (Q2 ’08 vs. Q1 ’08)

Total loans to customers up by EUR 28 billion (or 8%) supported mainly by the increase in Commercial loans (EUR 12 billion) and Reverse repurchase agreements (EUR 11 billion)The underlying loan growth (excl. Securities lending transactions and Reverse repurchase agreements) was at 5%, up EUR 14 billion to EUR 284 billionResidential mortgages up 2% over the quarterCommercial loans up mainly in Corporate & Public Banking (part of Merchant Banking)Increase in Securities lending transactions and Reverse repurchase agreements due to seasonality


Loans to Customers – Business view (Q2 ’08 vs. Q1 ’08)

EUR million Q2 '08 Q1 '08 Chge.

Retail Banking 73,629 85,944 (14%) Private Banking & Asset Management 10,224 9,736 5% Merchant Banking 228,310 205,744 11% Other Banking 49,122 32,058 53% Total 361,285 333,481 8%

Loans to customers were up 8% in the second quarter, driven mainly by Merchant BankingThe underlying loan growth (excl. Securities lending transactions and Reverse repurchase agreements) was at 5%, up EUR 14 billion to EUR 284 billionRetail Banking: EUR 12 billion decrease resulting from a securitisation transaction, with a transfer of EUR 15 billion mortgages to Other Banking. Excluding this transaction, loans to customers in Retail Banking were up 4%, led by consumer loans and mortgages.Private Banking & Asset Management: loans up 5%, mainly in Private BankingMerchant Banking: underlying loan growth of 6% (11% when including Securities lending transactions and Reverse repurchase agreements) due mainly to Corporate & Public BankingOther Banking: up strongly due to the transfer of mortgages (securitisation) from retail


ABN AMRO – Overview Q2 2008

►The contribution of the acquired ABN AMRO activities to Fortis net profit reached EUR 114 million in Q2 2008, up 36%, supported by an 18% increase in the underlying net profit

Underlying net profit up 18%BU NL up 14% a.o. due to the application of liquidity transfer pricingBU PC up 13% on lower costs

Recorded as income within Fortis

Impact of higher funding costs and ramp-down costs

(11) Purchase accounting on AAAM

38Net contribution transferred AAAM activities

-Adjustment for results before acquisition date -

4RFS Holding

(63) Purchase accounting

135 173Reported net profit

(40)(43) Integration costs (net) - recorded at AA

319 378Underlying 1 net profit

19 37BU Asset Management

7281BU Private Clients

228 260 BU Netherlands

Q1 2008Q2 2008EUR million

28%

-

18%

*

13%

14%

Change

(271)Financing costs (net)

(69)Integration costs (net) - recorded at Fortis

(115)Total impact on Fortis net profit

(144) (163)Shared assets 14%

-

-

(51)

(11)

38

(135)

(36)

(30)

-

-

(136)

(32)

(84)

-

-

24%

Net profit contribution to Fortis 114 84 36%



Major milestones reached for ABN AMRO Asset Management

Transfercompleted

Management/Operating

model

Investments transition

Distribution/ Branding

IT/Operations

All senior management nominated, 90% of staff formally appointedIntegration planning completed, benefiting staff and external stakeholders

Integration of product lines and sales channelsRebranding to Fortis Investments Management (FIM) completed

Common internal communication systemsLondon office relocated

Advisory arrangements enforced globally, facilitating asset management by new teamsProcess managed without any compliance issues and limited client losses Keep voluntary attrition as targeted (12%)

ABN AMRO Asset Management transferred to Fortis on 1 April 2008First business unit to exit the consortiumSeparation from ABN AMRO completed ahead of schedule and with no continuity issuesAll regulatory, legal structuring and compliance issues resolved


BU Netherlands – Integration1 progress status

CommercialBanking

RetailBanking

Culturalintegration

IT/Operations

Between April and June 2008, 290 senior managers from Fortis and ABN AMRO set out on the road to cultural integration in the ‘Connecting for Growth’ leadership programmeThe objective is to bring together senior leaders to explore and discuss strategic ambitions, markets and customers features, as well as company valuesThe new ‘Leading for Growth’ programme for 3,000 managers will be launched shortly

EC Remedies – IT contribution to ring-fencing of sold activities on trackSeparation/Integration – Legal entities and brands to be combinedOperations – Migration strategy for Retail Banking fold-in finalised

As of 1 July 2008, banks operating in the Netherlands must complete bilateral agreements on the use of cash tellers (in terms of service range and charges) by ‘non-proprietary clients’ABN AMRO en Fortis clients will have access to cash tellers of each network with the same range of service and limitations

Opening of 3 new business centres for large and medium-sized businessesFurther extension of the integrated business network will reinforce client & regional focusAlignment of quality of service and broadening of cooperation between centresAccount managers are the first point of contact for cross-border-advice on financial mattersCombined commercial network dedicated to large and medium-sized businesses will count 175 business centres across Europe, of which 74 in the Netherlands



BU Private Clients – Integration1 progress status

Clients

Management& Staff

IT/Operations

Culturalintegration

New management team announcedFull accessibility and active promotion of cross-entity job opportunitiesFrequent updates on integration by top management and strong staff involvementHead office integration planned for Q4 2008 (pending regulatory approval)

Joint Transition and Integration teams in all countries to define combined future Alignment of campaigns to ensure stabilityTown hall meetings and joint staff events organised, focus on the creation of one community

Early agreement on fold-in scenarios within all countries1

Cost savings already achieved through identification of parallel project developments, investments confirmed for best-of-both projects

Progress on separation/integration on target Germany on track for being the first country to be separated1 in Q4 2008Successful sale of ‘Best of both worlds’ structured productsStrong involvement of top management in client relationship



Fortis Insurance Overview

Gross inflow +1% Gross Inflow H1 ’08

Operating Margin (12%) Net Profit (16%)

765642

284

439

568

556 209

Life (25%) Non-life +8%

417 225 642

3,0727,004

6,987 3,233

10,076

10,220


H1 ’07 H1 ’08

204


284

Belgium Netherlands International

Life Non-life

38%

30%

32% 24%

43%

33%


EUR billion Q2 '08 Q1 '08 % Change

Gross Technical Reserves Life 90.5 90.3 0% Insurance Belgium 42.6 42.3 1% Insurance Netherlands 27.0 27.4 (2%) Insurance International 20.9 20.6 1%

Gross Technical Reserves Non-life 9.2 9.1 1% Insurance Belgium 2.9 2.9 0% Insurance Netherlands 3.5 3.5 0% Insurance International 2.8 2.7 2%

Total Gross Technical Reserves 99.7 99.4 0%

Fortis Insurance – Technical Reserves


Insurance Life – H1 ’08 vs. H1 ’07 analysis

H1 '08 H1 '07 Chg. %Gross inflow 6,987 7,004 (0%) Technical result 155 367 (58%) Allocated capital gains 129 72 79% Operating margin 284 439 (35%) Non-allocated other income 237 191 24% Pre-tax profit 521 630 (17%) Tax (72) (75) (4%) Results on disc. operations - 28 *Minorities (32) (28) 14% Net profit bef. divestment 417 556 (25%)

Net Profit

Δ Tech. result

Δ Alloc. gains

Δ Non-alloc. income

Δ Tax Δ Result on disc. oper.

Δ Minor.Net Profit

H1 ’07556

H1 ’08417

(212)+57

+46 (3) (28) (4)

Gross inflow stable:growth at International (Portugal) and Netherlands (pension)offset by lower inflow in Belgium (fewer campaigns and strong banking products competition)

Technical result down on credit market turmoil impact (EUR 196 million pre tax)

Net profit down 25% due mainly to credit market turmoil impact (EUR 162 million net) and lower profit on discontinued operations


Insurance Life – Q2 ’08 vs. Q1 ’08 analysis

Q2 '08 Q1 '08 Chg. %Gross inflow 2,946 4,041 (27%) Technical result 167 (12) *Allocated capital gains 30 100 (70%) Operating margin 196 88 *Non-allocated other income 129 108 19% Pre-tax profit 326 195 67% Tax (56) (16) *Minorities (14) (18) (22%) Net profit bef. divestment 255 162 58%

Net Profit

Δ Tech. result

Δ Alloc. gains


Δ Tax Δ Minor.Net Profit

Q1 ’08162

Q2 ’08255

+179(70)

+21 (40) +4

Gross inflow down 27% as Q1 ’07 benefited from some large pension contracts in the Netherlands

Technical result improved strongly as the credit market turmoil impact was lower in Q2 (EUR 41 million pre tax) than in Q1 (EUR 155 million)

Net profit up 58% despite lower capital gains as the credit market turmoil impact in Q2 (EUR 26 million net) was lower than in Q1 (EUR 136 million)


81%

19%

38%

30%

32%

Regular

Individual

Group

Single

Unit-linked

Investment contracts

without DPF

Non unit-linked

Belgium

International

Netherlands

Insurance Life – Inflow H1 ’08 (EUR 6,987m)

30%

70%

36%

38%

26%


Insurance Life – Overview Results

H1 '08 H1 '07 % Change

Net Earned Premiums 5,117 5,290 (3%)Allocated financial income (1,073) 2,568 *Allocated other income 103 91 13%Income 4,147 7,949 (48%)Net benefits & surrenders (3,001) (2,717) 10%Net change in liabilities (385) (4,281) *Operating expenses (606) (584) 4%Technical Result 155 367 (58%)Allocated capital gains 129 72 *Operating Margin 284 439 (35%)Non-allocated other income 237 191 24%Profit before taxation 521 630 (17%)Income tax expense (72) (75) (4%)Results on discont. operations - 28 *Minorities (32) (28) 14%Net Profit before divestments 417 556 (25%)


Insurance Non-life – H1 ’08 vs. H1 ’07 analysis

H1 '08 H1 '07 Chg. %Gross written premiums 3,233 3,072 5% Technical result 264 197 34% Allocated capital gains 20 6 *Operating margin 284 203 40% Non-allocated other income 14 65 (78%) Pre-tax profit 298 268 11% Tax (69) (60) 15% Results on disc. operations - 7 *Minorities (4) (6) (33%) Net profit bef. divestment 225 209 8%

Net Profit

Δ Tech. result

Δ Alloc. gains



Δ Minor.Net Profit

H1 ’07209

H1 ’08225

+67+13 (51)

(9) (7)+2

GWP up 5%:Belgium up 7% while also successfully integrating broker and bancassurance platformsNetherlands up 12% supported mainly by Accident & HealthInternational down 4% due the GBP depreciation (up 3% on constant rates)

Technical result up 34% thanks to the improvement in combined ratio (at 96.2%) with cost control and profitable underwriting. Impact of credit market turmoil was EUR 7 million in H1 ’08. 2007 was impacted by Kyrill and UK floods.

Net profit up 8%, driven by strong technical performance, partly offset by the impact of credit market turmoil (EUR 20 million net impact), lower capital gains and higher tax


Insurance Non-life – Q2 ’08 vs. Q1 ’08 analysis

Q2 '08 Q1 '08 Chg. %Gross written premiums 1,377 1,856 (26%) Technical result 157 107 46% Allocated capital gains 24 (4) *Operating margin 181 103 76% Non-allocated other income 29 (14) *Pre-tax profit 210 89 *Tax (40) (29) 38% Results on disc. operations - - *Minorities (3) (2) (50%) Net profit bef. divestment 167 58 *

Net Profit

Δ Tech. result

Δ Alloc. gains



Δ Minor.Net Profit

Q1 ’0858

Q2 ’08167

+50

+28

+43(11) -

(1)

GWP down 26% due to seasonal effects in the Netherlands (in A&H particularly) and in Belgium (SME line)

Technical result up 46%, driven mainly by higher result in A&H and slightly lower credit market turmoil impact in Q2

Net profit up strongly due to seasonally higher technical result in Q2 as well as higher financial revenues (credit market turmoil impact more limited than in Q1, dividend season, capital gains)


Insurance Non-life – Premiums

H1 '08 H1 '07Total Total

Gross written premiums 1,191 2,042 3,233 3,073 Change in provision for unearned premiums (202) (196) (398) (441) Gross earned premiums 989 1,846 2,835 2,632 Outward reinsurance premiums (162) (178) (340) (298) Reinsurance share provision for unearned premiums 21 21 42 67 Net earned premiums 848 1,689 2,537 2,401

A&H P&C

International

Gross written premiums (EUR 3,233 m) geographical breakdown

Gross written premiums (EUR 3,233 m)per product branch

Belgium

Netherlands

Other

A&H

Motor

Fire36%

26%

20%

18%24%

43%

33%


H1 '08 H1 '07 % Change

Net Earned Premiums 2,537 2,401 6% Allocated financial income 160 157 2% Allocated other income 9 17 (47%) Income 2,706 2,575 5% Net claims paid (1,494) (1,423) 5% Net change in liabilities (158) (181) (13%) Claims handling expenses (102) (98) 4% Operating expenses (688) (676) 2% Technical Result 264 197 34% Allocated capital gains 20 6 *Operating Margin 284 203 40% Other non-technical result 14 65 *Profit before taxation 298 268 11% Income tax expense (69) (60) 15% Results on disc. operations - 7 *Minorities (4) (6) (33%) Net Profit bef. divestments 225 209 8%

- Claims ratio 65.1% 66.8% - Expense ratio 31.1% 32.2% Combined ratio 96.2% 99.0%

– Claims ratioCost of claims, net of reinsurance in non-life, as percentage of the earned premiums, excluding the internal costs of handling non-life claims

– Expense ratioExpenses, i.e. costs plus net commissions charged to the year, less internal investment costs as percentage of earned premiums, net of reinsurance

– Excluding natural disasters, the combined ratio stood at 93.6% in H1 ’07

Insurance Non-life – Overview Results


Ratings

Fitch S&P Moody's

Core Bank Ratings Long-term AA- A+ Aa3 Short-term F1+ A-1 P-1 Outlook Stable Stable Stable Last change 18-Mar-03 17-Jul-08 27-Jun-08

Core Insurance Ratings Insurance Financial Strength AA A+ A1 Outlook Stable Stable Stable Last change 25-Jul-06 17-Jul-08 27-Jun-08

Parent Company Ratings Long-term AA- A A1 Short-term F1+ A-1 P-1 Outlook Stable Stable Stable Last change 19-May-06 17-Jul-08 27-Jun-08


Fortis Investment Portfolio at 30 June 2008

74% Debt Securities

EUR 133 billion EUR 62 billion

86% Debt Securities

5% Real Estate2

2 Real Estate valued at amortised cost; Market Value (incl. own use) amounts to EUR 6.6 billion

Bank Investment Portfolio Insurance Investment Portfolio

5% Equities

2% Other

21% Other1

1 Including the EUR 24.2 billion investment related to the acquisition of ABN AMRO activities

7% Equities


Quality Debt Securities Portfolio at 30 June 2008

Insurance Banking Fortis

Rating CategoryAAA 32% 51% 44% AA 26% 34% 31% A 38% 11% 20% BBB 3% 3% 3% Investment grade 99% 99% 98% Below investment grade - 1% 1% Unrated 1% - 1% Total 100% 100% 100%

Portfolio (EUR billion) 54 98 151 1 After eliminations between Insurance and Banking

1


Fortis capital model

Regulatory Required Capital Available Capital

Amount of capital, set by the regulator,a financial institution should hold to cover future unexpected losses in

businesses & exposures (credit risk, insurance obligations, market risk)

Balance sheet items eligible as capital, determined by the regulator

Fortis Capital Model

The minimum regulatory required capital should be compared with the available capital at the level of the companyA financial institution should not go below its minimum regulatory required capitalIn order to manage its capital strictly and to ensure the level of capital will never go below the minimum regulatory required, Fortis has developed its own capital model


Two approaches to assess Fortis solvency

Fortis solvency assessment ‘as-is’Businesses acquired – but not yet transferred –from ABN AMRO are considered as part of the RFS Holdings participationRFS Holdings participation is accounted for by deduction of 50% from core equity and the other 50% from total capital

Equity Method Look-Through Method

Fortis holds a 33.8% participation in RFS Holdings

Fortis solvency assessment ‘to-be’Business acquired from ABN AMRO are considered transferred and consolidatedGoodwill related to these ABN AMRO activities is deducted from available core equityRisk-weighted commitments related to these activities are consolidated and included in the computation of the target core equityThe impact of the announced transactions of the capital build-up plan are taken into account

BU Asset Management

BU Private Clients

BU Netherlands Retail

Private Banking

Asset Management

Merchant Banking

Insurance

Fortis SA/NV RFS Holdings

Retail + BU NL

Private Bkg + BU PC

Asset Mgnt + BU AM

Merchant Bank. + BU NL

Insurance

Fortis SA/NV RFS Holdings

ABN AMRO acquired businesses are considered transferred and consolidated by Fortis


Regulatory capitalAmount of capital a financial institution should hold to cover future unexpected losses in businesses and exposures (i.e. credit risk, insurance obligations, market risk) as determined by the regulator

Additional bufferWell above regulatory minimaAdequate for the market and our business mixIn line with expectations of rating agencies

Fortis’ Core Equity targetsBank: 6% risk weighted commitments (RWC)Insurance: 175% of required minimum margin (RMM)a Group leverage target (at General) equal to 15% of the target core equity of Banking plus the target core equity of Insurance

Fortis capital management focus on strongest form of capital

Build up of Capital Targets

Regulatory Capital

Target CapitalDesired additional

buffer

Core equity capital as determined by the regulator consists of:

Paid-up capitalRetained earningsNon-innovative instruments as accepted by the regulator

Fortis capital management is based on Basel I targets

Fortis first half-year 2008 results │4 August 2008 │ 66Equity after prudential filters Non-innovative tier 1 capital Core tier 1 Target

Equity method – Solvency position end Q2 2008 (under BIS I)

Notes: - amounts are based on the equity method consolidation of ABN AMRO where 50% of the EUR 24.2 bn Fortis’ stake is deducted from core equity- before downstream of ABO proceeds

FortisCore Equity

EUR 4.0 bn above target

General Leverage

15.3% 15.0%

Banking Core Tier 1

ActualBIS I

TargetBIS I

6.0%

Insurance Core Solvency

Actual Target

196% 175%

24.620.6

7.4%

Actual Target

Actual Target

Actual Target

Actual Target Actual Target

17.117.4

7.8 7.2

(3.6)(7.4)

3.6

0.2

21.0 8.0

3.0

(4.4)

17.8

6.8

(EUR billion)


Fortis manages its capital base in line with regulatory rules

* Adjusted for deferred tax effects and recognition of the option premium in core equity** Tier 1 capital before deduction of participations

FRESH: sub-convertible loanMCS: sub-convertible loanCASHES: sub-convertible loan NITSH 1: non-convertible loanNITSH 2: non-convertible loan

Recently issuedRights Issue Preferred shares FBNAccelerated Book Offering

TOPRSFortis Bank Tier 1 Hybrone

Outstanding InstrumentsRegulatoryLimits

20022007 (Q3)2007 (Q4)2008 (Q1)2008 (Q2)

19991999/2001/2003

2006

2007 (Q4)2007 (Q4)2008 (Q2)

0.62.40.5

1.22.03.00.50.6

13.20.21.5

IssueDate

AmountIssued


EUR 17.8 billion

(EUR 30.2 billion before deduction of participations)

Non-innovative Hybrids

EUR 6.8 billion*

Innovative Hybrids EUR 3.4 billion

(EUR billion)

Max. 15% of tier 1 capital**► currently 8%

Max. 33% of tier 1 capital**

► currently 17%

Minimum 67%of tier 1 capital**► currently 75%

Cor

e eq

uity

cap

ital (

EUR

24.

6 bn

)

Tier

1 c

apita

l (EU

R 2

8.0

bn)

Tier 1 capital before deduction of participations: EUR 40.4 billion


Solvency vs. regulatory requirements

1 Bank available and required capital are computed under Basel 2 regulation

Group

Risk bearing capital 1 26.4 bn 27.9 bnSolvency requirements1 24.7 bn 24.3 bnCapital in excess of solvency requirements 1.8 bn 3.6 bn

Bank1

Tier 1 capital ratio 9.1% 10.5%Total capital ratio (8% minimum) 10.8% 11.0%Risk-weighted commitments 257 bn 253 bn

Insurance

Solvency ratio (100% minimum) 223% 219%Required Minimum Margin 4.1 bn 4.1 bn

Q2 2008 Q1 2008


Look-through method – Sound future solvency

Bank core tier 1Group core equity

Insur. core solv.

ActualCore Equity

Target Core Equity

(EUR billion)

4.0

Non-dilutive instruments & disposal of

non-coreassets

(1.5)

Capitalrelief

transactions

Capital Plan

26.6

Look-through

plan

24.2

Above target>6.0% >175%

Look-through

plan

Towards end of 2009

RetainedearningsH2 ’08 &FY ’09

ControlledRWC/RMM

growth

End2009

End2009

7.4% Above target

196%


20.6

24.6


Equity Method

4.9

~2.4 ~(4.4)Divestments

& Acquisitions Consolidationtreatments

(e.g. AA Goodwill)

Divestments& Acquisitions

Consolidationtreatments

(e.g. AA RWC)

0.2

Conversion to look-through method


2 Structured Credit Portfolio

1 First half-year 2008 results

Additional information


Structured Credit Portfolio - Overview

Total exposure1 end-Q2 of EUR 41.7 billion, down EUR 6.5 billion

over H1 2008

Investments part of a broader asset allocation to debt securitiesRepresents only 1.4% of Fortis’ total investments in debt securitiesEUR 256 million change in value for lower-rated investments over H1 ’08

Insurance ABS Portfolio: EUR 2.2 billion

Long-term investment strategy: historical conservative portfolio selection aimed at generating long-term spread income from majority senior positions with limited credit concern Includes Scaldis hybrid ABCP conduit of EUR 14.2 bn (securities & receivables pools)Current uncertainty and volatility in the structured finance market lead to a reinvestment pausePortfolio down EUR 4.6 bn in H1 ’08 due to repayments, final redemptions and exchange ratesEUR 107 million impairments taken in H1 ’08 Over 2,100 lines with EUR 15 million average ticket size in the investment portfolio91% in most senior positions80% AAA assets (91% in AA-rated or above and 97% A or above)

93% in first order securitizations (ABS, MBS, CLOs) 7% in repackaged/second order securitizations (ABS/Multi-sectors/CRE CDOs)Migration from Investment Grade (IG) to below IG from end-2007 to Q2 ’08: EUR 444 m

Portfolio will benefit from Basel II risk-weighting, considering its focus on AAA/AAOther portfolio strengths: diversification, granularity, dynamic and pro-active management

Credit Spread Portfolio (incl. Scaldis): EUR 37.6 billion

Short-term commercial strategy: result of customer driven business (run-off mode)Remaining exposure in super senior ABS CDOs with subprime exposure: EUR 1.7 bn in High Grade, EUR 0.1 bn in Mezzanine and EUR 0.1 bn in WarehousingWrite-downs: constant stress testing based on estimated pipeline of cumulative losses Total coverage ratio at 61%, based on a pipeline of cumulative loss scenario with further ‘fair value adjustment’ calibration to the market

CDO Origination Portfolio: EUR 1.9 billion

incl. Scaldis

1 Exposure post impairments, Fortis has not hedged its exposure


CDO Origination: ABS CDOs with subprime exposure

AttachmentRMBS CDO point ≤ 2005 2006 2007

High Grade (incl. Warehousing) 76% 24% 19% 20% 72% 8%Mezzanine 94% 6% 43% 25% 58% 17%Total 78% 22% 21% 21% 70% 9%

Collateral RMBS vintage

Valuation based on a pipeline of cumulative loss scenario with further ‘fair value adjustment’calibration to the marketRemaining exposure in Super Senior ABS CDOs with subprime exposure

EUR 1.9 billion net of impairments exposure (no hedge in place)Coverage ratio up to 61% end-Q2 ’08 (from 45% end-07)RMBS vintages mostly from 2006 and before

EUR bn Pre-impair. Q2 08 netexposure 2007 Q1 08 Q2 08 Total exposure Q4 07 Q1 08 Q2 08

High Grade 3.8 (1.6) (0.2) (0.3) (2.2) 1.7 43% 48% 57%Mezzanine 0.5 (0.3) (0.0) (0.1) (0.4) 0.1 57% 63% 74%Warehousing 0.4 (0.2) (0.1) (0.0) (0.3) 0.1 50% 70% 74%Total 4.7 (2.1) (0.3) (0.4) (2.9) 1.9 45% 52% 61%

Coverage ratioImpairments


Credit Spread Portfolio

BBB1%

<BBB0%

A5%

AA10%

AAA84%

Net exposure down by EUR 4.6 bn in H1 ’07 Average monthly repayment on underlying investment portfolio of EUR 300-350 million93% first order securitizationsVast majority of most senior positions (91%)80% AAA (84% end-2007, 82% Q1 ’08)91% AA or above (94% Q4 ’07, 93% Q1 ’08)Migration from Investment Grade to below IG credit ratings since end-2007: EUR 444 mPortfolio valued at EUR 35.1 bn vs. EUR 37.6 bn face value (net of impairments)

EU RMBS 9.0 bn

CLOs 3.7 bn

CDOs 2.7 bn

CRE-related 1.5 bn

Consumer-related 10.5 bn

1 Includes EUR 14.2 bn from Scaldis

End-Q2 (EUR) 1 37.6 bn

98%

96%

89%

96%

97%

Marked at(% of par)

US RMBS 10.2 bn 84%

Portfolio selected on a conservative approach, with constant surveillance and stress-testsInitial in-depth analysis of structural features, underlying collateral and parties involved (originator, servicer,…) is periodically monitoredContinued turmoil and uncertainty on the structured finance market has lead to a reinvestment pauseConstant monitoring of all positions, reviewed independently by Credit Risk, based on internal and external systemsRegular stress-testing. Internal analysis and monitoring prevails over rating agencies notations Low credit concerns

Granular portfolio Multi-sector exposure, high diversificationOverall strong structural credit supportOverweight in AAA securitiesDynamic managementUpscaled surveillance and monitoring


US RMBS Portfolio

Exposure end-Q2 ’08 = EUR 10.2 bn

1 Constant Prepayment Rate (CPR) predicts the % of principal that will prepay over the next 12 months based on historical pay-downs (on the underlying assets)

Alt-A / Jumbo 1.6

Midprime 1.4

Subprime0.5

Agency 0.6NegAm 1.9

US Prime & 30yr Fix 3.9

HELOCs 0.3

48% Fannie Mae, 47% Freddie Mac & 5% Ginnie Mae100% AAA, most senior positions, only first lien exposureStrict underwriting (>95% full doc), avg. loan-to-value 70%Implicit/explicit US government guarantee (low risk-weighting factor: 0-20%)Exposure came down with EUR 0.1 bn since end-07

Agency - EUR 0.6 bn (FICO 680-700)

100% most senior positions 12% AAA, 20% AA, 23% A, 30% BBB, 15% below IGMonoline Insurance: FGIC (27%), MBIA (21%), AMBAC (20%), XLCA (14%), FSA (9%), CIFG (2%), none (7%)59% ≤ 2005 vintage, 37% 2006, 4% 2007Repayment speed stable at 24% CPR1

Exposure came down with EUR 0.1 bn since end-07 Total impairments: EUR 46 m (FY07 and H1 ’08)Ratings migration from IG to below IG since end-07: EUR 51 m

HELOCs - EUR 0.3 bn (FICO >715)

100% AAA, most senior positions, only first lien exposurePrime borrowers, average loan-to-value at 65%High underwriting and credit quality standardsVintage: 31% ≤ ’05, 27% ’06, 42% ’0723% redeemed already at parStable repayment speed at 6-7% CPRExposure came down with EUR 0.6 bn since end-07

US Prime & 30-yr Fix - EUR 3.9 bn (FICO >725-740)

93% AAA, only first lien exposurePrime borrowers, current loan-to-values at 80%Vintage: 18% ≤ ’05, 39% ’06, 43% ’07Repayment speed at 10% CPR1

Exposure came down with EUR 0.2 bn since end-07 Total impairments: EUR 19 m (FY07 and H1 ’08)Ratings migration from IG to below IG since end-07: EUR 20 m

Residential A NegAm - EUR 1.9 bn (FICO >700)

AAA82%

<AA11%

AA7%


US RMBS stress tests

Exposure came down with EUR 0.4 bn since end-07Total impairments: EUR 15 m (FY07 and H1 ’08)Ratings migration from IG to below IG since end-07: EUR 20 mDelinquency pipeline up from 13.6% to 15.3%Loss given default assumption maintained at 40%

Alt-A / Jumbo EUR 1.6 bn Sub-/Mid-prime EUR 1.9 bn

Current credit enhancement (excl. excess spread) covers 2.7x the current estimated pipeline losses

Current credit enhancement (excl. excess spread) covers 2.2x the current estimated pipeline losses

Exposure came down with EUR 0.2 bn since end-07Total impairments: EUR 97 m (FY07 and H1 ’08)Ratings migration from IG to below IG since end-07: EUR 215 mDelinquency pipeline up from 30.8% to 33.4%Loss given default assumption maintained at 50%

AAA Super <AAA Redemp. CPR Current Cumul.Senior Senior Factor Speed CE* Loss

2002 0% 100% 0% - 13% 32% 7% 0.01%2003 4% 99% 47% 100% 24% 31% 10% 0.07%2004 14% 94% 34% 100% 21% 17% 18% 0.27%2005 25% 84% 48% 76% 63% 14% 20% 0.62%2006 33% 95% 60% 100% 83% 16% 17% 0.94%2007 24% 95% 25% 45% 91% 11% 12% 0.28%

92% 45% 79% 69% 15% 17% 0.57%Average

Vintage

* Excluding annual excess spread of 2-4%

AAA <AAA Redemp. CPR Current Cumul.Senior Factor Speed CE* Loss

2005 20% 75% 29% 71% 26% 45% 2.65%M ID 2006 57% 26% 83% 96% 27% 35% 4.09%

2007 21% 19% 90% 98% 17% 30% 2.19%35% 81% 90% 25% 36% 3.36%

2005 13% 11% 14% 75% 25% 62% 2.14%SUB 2006 49% 42% 51% 96% 22% 35% 2.80%

2007 31% 19% 86% 99% 13% 30% 1.01%33% 58% 90% 19% 37% 2.16%

Vintage

Average

Average

* Excluding annual excess spread of 3-5%

LGD 40%

Current cumulative loss

Current delinquency pipeline

Estimated pipeline loss

Current built-up CE

Current built-up CE + excess spread 19.7%

16.7%

6.1%

15.3%

0.6%

2.7x coverLGD 50%

Current cumulative loss

Current delinquency pipeline

Estimated pipeline loss

Current built-up CE

Current built-up CE + excess spread 40.8%

36.3%

16.7%

33.4%

3.0%

2.2x cover


EU RMBS Portfolio

7.7

99% AAA-rated Prime RMBS (most senior positions) and older vintagesExposure came down with EUR 0.5 bn since end-07Performance stable over the past 6 months: 90+ delinquencies remained below 0.75% vs. 0.40% end-07CPR slowed down slightly to average 8% vs. 10% end-07 Selection of top, well-established originators and servicersNo downgradesExposure remains limited to seasoned deals, with average LTV of 57% and average credit enhancement of 9.7%Solid portfolio outlook despite negative headlines

Spanish RMBS - EUR 2.7 bn

61% AAA-rated, 97% AA-rated or better Exposure came down with EUR 0.8 bn since end-0790+ delinquencies up from 9.8% end-20 to 12.7% currentlyCumulative losses up slightly to 50bps from 35bps (on vintage 2007, during the last 6 months)Repayment speed has remained high (26% CPR), hence credit enhancement has been further built up from 16-25% initially to currently 35%Selection of best originators with stringent underwriting criteria has lead to excellent portfolio performance: since end-07 only 5 assets were downgraded to AA (due to monoline credit migration)Solid performance despite UK house market pressure

UK RMBS Non-Conforming - EUR 1.6 bn

* Other EU RMBS include Prime Dutch, Italian, German, French, UK & Greek RMBS, as well as other non-US RMBS such as Australian RMBS


AAA90%

<AA2%AA

8%Spain

2.7

Others* 4.7

UK N/C 1.6


CLOs

First order securitization deals made of AA-rated banks own originated corporate loans (granularity and industry diversification)Exposure came down with EUR 0.1 bn since end-07Issuances driven by financing and capital management instead of arbitrage mainly 100% AAA-rated, most senior positions (current credit enhancement in 15-18% range)

Balance Sheet CLOs - EUR 0.3bnFirst order securitization dealsUnchanged exposure with 4.9 remaining average life 3-pillars investment rule: High portfolio quality (senior secured loans, no covenant-lite, low % second lien and mezz. loans, high industry diversification), collateral manager with proven track record in weakening econ. environment (and alignment of interest with note holders) and strong structural credit enhancement94% AAA-rated, most senior positions, with high support level (25% in US / 35% in EU), and extra triggers (over-collateralization & interest-coverage levels)

US & EU Arbitrage CLOs - EUR 3.4bn

7.7


2007 global loan defaults statistics bottomed at around 0.5%, an historically low level. Currently estimated at around 2%.CLO portfolio stress-tested monthly: full recovery even under worst case tests, anticipating global loan default and loss increases

US CLOs 2.5

B/S CLOs 0.3

EU CLOs 0.9

AAA94%

<AA2%

AA4%


CDOs

Diversified exposure with 13 underlying asset classesTop 3 exposures: Alt-A (21%), CRE (18%), Insurance (14%)Subprime and midprime exposure limited to 6%Well seasoned pool, some rating migration of assets to related to monoline downgradesOver half of portfolio structured AAA without wrapRatings after downgrades: AAA (56%), AA (4%), A (40%)Average portfolio life of 4 yearsAverage redemption factor on mortgage exposure at 85%

US Multi-Sector CDOs - EUR 0.9 bn

EU ABS CDOs perform well with little stressMajority senior positionsOthers include High Yield CBOs, Investment Grades Corporate CDOs and wrapped Emerging Markets CDOs.Given the benign recent corporate environment characterized by low default rates and the high seniority of the tranches held, our holdings are very well protectedEven under severe stress scenario’s we would not incur losses (see also CLOs)

EU ABS CDOs and Others - EUR 1.6 bn

Limited exposure to the overall Credit Spread Portfolio sizeMajority seasoned CDOs, with diversified underlying portfolio (asset types) and very limited subprime exposure100% most senior positions20% AAA-rated19% Mezz and 81% High Grade ABS CDOs Although positions held are mainly older deals and very often wrapped, provisions were taken for EUR 87 m (FY07 and H1 ’08)Credit ratings migration from Investment Grade to below IG since end-2007: EUR 88 m

US ABS CDOs - EUR 0.2 bnExposure Q2 ’08 = EUR 2.7 bn

EUR ABS CDOs &

Others 1.6

US ABS CDOs 0.2

US Multi-sector

CDOs 0.9


CRE-Related Exposure

89% AAA-rated, senior and super senior positions100% first order securitizations, no B-loansExposure came down by EUR 0.1 bn since end-07Portfolio has an average Interest Coverage Ratio of 1.94 and Debt Service Coverage Ratio of 1.71100% European CMBS, no exposure to hotels, casinos or leisureBuild-up credit support for seniors: from 20% initially to 39% currentlyLow average loan-to-value (60%)Majority of the loans has refinancing date in 2011Multi-borrower deals, focus on property/tenant quality 2 downgraded assets since end-07

European CMBS - EUR 1.1 bn

83% AAA-rated, 100% AA-rated or betterExposure remained unchangedCommercial loan market is a professional market with strict underwriting and syndication rulingsStructural features (sequential pay down) and subordination (some close to 70%) remain the strongest pointsCommercial loan market has shown strong resilience over the past 6 months1 downgrade since end-07

Commercial Real Estate (CRE) CDOs - EUR 0.4 bn


AAA88%

<AA3%

AA9%CRE

CDOs 0.4

European CMBS 1.1


Consumer-Related Exposure

83% of exposure is related to US Federal Family Education Loan Program (FFELP) student loans, guaranteed by the Department of Education (US Government)17% Private student loans (75% ≥AA): strict underwriting, focus on servicers, high level of subordination (15-17%)Pay-downs of Private Student Loans reinvested in FFELPs

US Student Loans - EUR 4.2 bn100% most senior (about EUR 1 bn of exposure via receivables/assets pools in Scaldis)Exposure came down by EUR 0.6 bn since end-07Issuers exclusively US top-quality banks, and established servicers with a significant financial stake in the deals (seller’s interest up to 15-18%)Excess spread in deals offsets slight rise in charge-offs (currently 6.4% vs. 5.2% end-2007)Portfolio is robust due to initial subordination levels, strict underwriting guidelines, excess spread and increasing portfolio yield

US Credit Cards - EUR 2.0 bn

Auto Leases: EUR 2.1 bn (EUR 2 bn in Scaldis). 100% most senior, 98% ≥ AA. Focus on European manufacturers.Equipment: EUR 0.4 bn exposure (EUR 0.3 bn in Scaldis). 61% ≥ AA. Majority container leases (Fortis growth sector).Others: consumer loans, small business loans, whole business and trade receivables

Auto / Equipment Leases & Others - EUR 4.3 bn

Exposure end-Q2 ’08 = EUR 10.5 bnOthers

1.8US Credit Cards 2.0

Auto / Equipm. Leases

2.5 US Student

Loans 4.2

AAA60%

<AA17%

AA23%


Scaldis

EUR 14.2 bn Hybrid ABCP programme combining:a cash flow securities arbitrage conduit (64%)a multi-seller receivables conduit (36%)

Exposure came down by 30% since end-2007 Highest ST-ratings from 3 rating agencies:P-1 (Moody’s) / A-1+ (S&P) / F-1+ (Fitch)High quality underlying assets and securities (98.3% AAA-rated securities) with conservative eligibility criteria and diversity in asset type baseLiquidity line: 102% of programmeUnique protection, 2 layers of credit enhancement:

asset/security-specific: over-collateralization, reserve accounts, surety bonds, guarantees, …programme-wide letter of credit: USD 1 bn (4.6%)

Currently funded at 100% with 3rd party CP-investorsthanks to the high quality of the underlying portfolioAlthough funding levels improved in Q2 ’08, a reinvestment pause was taken due to a continued distressed structured finance marketUntil Basle II implementation, Basel I remains the reference. The programme will continue to be used as an attractive investment and multi-seller vehicle. ABCP market will remain under Basel II an important financing tool for part of the credit spread portfolio.

Asset pools - EUR 5.1 bn

Auto 35%Consumer 24%Residential Mortgages 9%CDOs** 17%CLOs 5%Equipment 1%Others 9%

Breakdown of Underlying(Securities and Asset pools)

* No subprime, 11% Alt-As, 9% UK NC, 6% US NegAm, 3% US Mid-prime** Not US subprime mortgage-related

Securities - EUR 9.1 bn

Auto 1%Consumer 9%Residential Mortgages* 40%CDOs** 7%CLOs 24%Equipment 7%Others 12%

17%15%

13%

4%11%

11%29%

ConsumerLoans

Auto Loans

Other

CDOs **

CRE Related

Residential Mortgages

CLOs


Exposure to Monolines

Direct exposure of EUR 0.2 billionEUR 0.2 billion due by FSA in a GIC account

Indirect exposure of EUR 3.7 billionEUR 0.7 billion to municipalities (Public Finance), down 30% from end-07EUR 0.1 billion linked to the Global Export and Project Finance portfolio EUR 2.9 billion balance split further into

EUR 1.7 bn in structured credit portfolio, all investment grade unwrapped rating, down 15% from end-07- granular and diversified portfolio, more than 170 deals with an average size of EUR 10 million - unwrapped ratings: 21% AAA, 10% AA, 26% A and 44% BBB- proportions of unwrapped ratings unchanged over H1 ’08, proving the stability of the positions and

the absence of signs of credit deterioration- main concentration in HELOCs (19%) and UK RMBS NC (10%). Other exposures split between

25 asset categories, with granular and high sector diversification- all deals bought after in-depth analysis and not relying on the monoline for repayment

EUR 0.9 bn in Multi-sector ABS CDOs and 0.1bn in an asset pool to be securitized- in Multi-sector CDOs over half of the portfolio made of structured AAA without wrap- EUR 0.5 bn MBIA program-wide wrap

EUR 0.2 bn wrapped in the Insurance ABS portfolioTotal exposure decreased by EUR 1.3 billion from end-07, due to natural amortization of the different portfolios and repayment of EUR 200 million GIC account


Valuation Techniques

Positions in the Credit Spread Portfolio are valued using, by order of preference, the Mark-to-Market (Level 1), a valuation technique (Level 2) and a model (Level 3)In September 2007, all positions collateralized by European assets have been migrated to level 2, in order to palliate the lack of available price information due to the drying up of the marketIn March 2008, some US-collateralized positions (mostly US RMBS Prime) have been migrated to counterbalance the effect of lack of liquidity on assets presenting sound credit performanceIn June 2008, additional parts of the portfolio (US and Rest of the World) have been migrated following further degradation of liquidity impairing the price discovery process. Remaining in level 1 are:

- Subprime related assets- Credit Cards, Student Loans with US government guarantee and Auto Loans/Leases, for which the market

liquidity allows normal price discovery process.

Gross face amount1 on 30-Jun-2008 = EUR 37.9 bn, net of impairments Credit Spread Portfolio = EUR 37.6 bn

EUR bn Level 0 Level 1 Level 2 Level 3 Total

Face amount1 31-Dec-2007 6.3 23.2 12.5 0.2 42.131-Mar-2008 5.1 18.4 14.9 0.2 38.630-Jun-2008 5.1 11.8 20.9 0.2 37.9

Write-downs 31-Dec-2007 - (1.0) (0.1) (0.1) (1.3)31-Mar-2008 - (2.5) (0.1) (0.1) (2.7)30-Jun-2008 - (2.1) (0.6) (0.1) (2.8)

After write-downs 31-Dec-2007 6.3 22.2 12.4 0.1 40.831-Mar-2008 5.1 15.9 14.8 0.1 35.930-Jun-2008 5.1 9.7 20.3 0.1 35.1

1 Figures based on risk data, excluding equity adjustments


Insurance Portfolio

Focus on EU RMBS (mainly Benelux) and EU ABS CDOs (mainly Corporates)Total exposure decreased since end-2007 with EUR 0.9 bnLimited remaining US subprime net exposure of EUR 105 million

EUR bn Grand Total AAA AA <AANon Subprime 2.07 1.10 0.55 0.41

EU RMBS Total 0.71 0.65 0.04 0.01RMBS Spain 0.09RMBS UK non conforming 0.01Others 0.60

CLOs Total 0.24 0.08 0.07 0.09Arbitrage CLOs 0.23Balance Sheet CLOs 0.01

CDOs Total 0.98 0.28 0.42 0.28EU ABS CDOs & Others 0.90US ABS CDOs 0.08

CRE-Related Total 0.07 0.04 0.01 0.02EU CMBS 0.04CRE-CDOs 0.03

Consumer-Related Total 0.05 0.05 0.00 0.00US Student Loans 0.03Others 0.02

SIVs / Hedge CDOs Total 0.03 0.00 0.00 0.03Subprime 0.11 0.04 0.05 0.01

High Grade ABS CDO <SS 0.00 0.00 0.00 0.00Mezzanine ABS CDO SS 0.04 0.04 0.00 0.00Mezzanine ABS CDO <SS 0.06 0.00 0.05 0.01

Grand Total 2.17 1.14 0.60 0.42


Fortis Investor Relations Team

Robert ter Weijden +31 30 226 32 11Olivier Delval +32 2 565 57 48Dies Donker +31 30 226 69 31Marc Peelen +31 30 226 30 46Frank Vandenborre +32 2 565 57 49

Fax numbers: +31 30 226 99 33 +32 2 565 58 25

E-mail: [email protected]

Getting you there.

fortis first half financial results 2008

Economy & Finance