Contents · Business Credits Production Van Breda Car Finance Marc Wijnants IT Operations 6 . 2...

Contents

History & Structure

Sustainable growth

Risk profile

Strategy & succes factors

Prepared for the future

2

1

2

3

4

5

1 History &

structure

3

Shareholders

4

2005 1998

2011 2000 1989 1930

5

An entrepreneurial history

Foundation of

the bank by

Jos Van Breda

Foundation of

Finaxis

Acquisition

ABK bank

Strategic change: 'For

family businesses and

liberal professions only'

Start-up

Brussels and

Wallonië

Strategic focus

holistic asset

management

2018

Launch of

Bank de Kremer

1972

Management

Buy Out

Responsibilities Executive Committee

Dirk Wouters

President

Compliance and Legal Advice

Internal audit

Information security

Marketing and communication

Human Relations

Risk management

Van Breda Advisory

Vic Pourbaix

Client Relations

Véronique Léonard

ALM & treasury

Internal and external reporting

Business Credits Production

Van Breda Car Finance

Marc Wijnants

IT

Operations

6

2 Sustainable

growth

7

3,5 4,1

4,7 5,0 5,6

6,4 7,1

7,7 8,7

9,7

10,8

12,1

13,4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Average growth

11,8%

866 906 935 878

948 1.014 1.052

1.105 1.142 1.218

1.286 1.327 1.348

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Financal assets Belgian households

(in bn euro)

Totaal invested

Bank J.Van Breda & C° (in bn euro)

Average growth

3,75%

Bank J.Van Breda & C° Assets under management Financial assets Belgian households

X 3,8 X 1,55

8

Solid sustainable growth Commercial volumes +10%

9

2014

3.6

2013

3.9

+7%

2016

+4%

4.7 4.5

2015 Q32018 2017

4.2

3.5

4.6

9.2

13.7

2017 2015 Q32018

3.8 3.7

6.2 5.3

4.0

7.2

2014 2013

10.0 9.0 9.8

+11% 14.6

+6%

4.8

12.4

8.2

11.1

4.2

2016

Assets under Management (In billion euro)

Loans (In billion euro)

* € 5.4 bn entrusted to Delen Private Bank for asset management in 2017

€ 0,9 bn investments funds managed by Delen Private Bank

Client deposits

Off-balance products*

Note: Totals not always equal to sum of parts due to roundings

9 months

9 months

Income growth despite low interest rate environment Stable NII, growing fee income

10

84.1

2014

32.0

82.1

2013

31.6

76.8

48.0

81.0

55.6

79.1

2016

+16%

2017

-2%

2015

44.7

Net Fee Income Net Interest Income

In E

UR

mill

ion

CAGR

+1%

CAGR

+15%

Benchmarking Revenues

64%

25%

11%

Sector

Interestincome

NetCommission

Other

Diversified Revenues

11

56%

39%

5%

Bank JVB

Interestincome

NetCommission*

Other

Disciplined cost management Forward-looking investments in commercial strengths (People + IT + Automation & Digitalisation)

* Significant increase in banking taxes from 2 million in 2013 to 8.4 million in 2017

12

471

465

459

466

471

2015

+5%

2017

+5%

83.6

2016

79.6 74.4 71.2

2014 2013

69.3

FTE Operating expenses

In E

UR

mill

ion

Solid financial performance

13

Profit based on strong underlying sales results and efficiency

+6%

2017

39.1

2016

37.7

2015

40.5

2014

35.5

2013

31.5

+5%

2017

141.4

2016

134.0

2015

133.9

2014

119.4

2013

117.7 Net Profit

(In million euro)

Income

Costs & C/I ratio

+5%

2017

83.6

59%

2016

79.6

59%

2015

74.4

56%

2014

71.2

60%

2013

69.3

59%

In E

UR

mill

ion

In

EU

R m

illio

n

3 Risk profile

14

Bank J.Van Breda & C° (Consolidated) Key Figures

15

Bank J.Van Breda & C° (Consolidated) Key Figures

16

2013 2014 2015 2016 2017

Staff 466 459 466 471 471

Net profit after taxes 32 36 41 38 39

Equity 448 475 502 518 539

Cost income ratio 59% 60% 56% 59% 59%

Return on average equity (ROE) 7% 8% 8% 7% 7%

Impairments on loans 0,04% 0,01% 0,01% 0,01% 0,04%

Core capital ratio (Tier 1) 13,70% 14,90% 14,50% 14,80% 14,20%(millions of Euros)

Healthy balance sheet

17

Loans fully funded by client deposits

€ 5.4bn

3%

14%

83%

Cash & Investment portfolio

Loans &

receivables

Total Assets

Other Debt instruments

Equity

Deposits

Total Liabilities

6%

84%

€ 5.4bn

10%

Situation as per 31/12/2017

Other; < 1%

Strong capital position Solid capital generation & buffer for sustainable growth

Strong capital adequacy,

especially in light of

the use of Standardised Approach

IFRS capital increased from € 518 million in 2016

to € 539 million in 2017

18

14.9%

14.2%

15.8%

2014

15.9%

2013

14.8%

2015 2016

14.9%

15.6% 16.8%

13.7% 14.5%

2017

Capital Ratio (in % RWA)

2.0%

2.5%

Regulatory

Minimum

(before pillar II

requirement)

10.5%

6.0% Tier 1 Capital

Tier 2 Capital*

Capital

Conservation

Buffer

Tier 2 %

CET1%

Strong leverage ratio One of the strongest in Europe

3.0%

8.9%

2017 Regulatory

Minimum

Basel III Monitoring

Report:

25%-75% quartile

from 4,4% to 7,5%

19

Solid liquidity & Conservative bond portfolio

High quality bondportfolio

20

39%

25%

16%

13%

8% Government Bonds (Aaa)

Government Bonds (Aa1)

Government Bonds (Aa2)

Government Bonds (Aa3)

Corporate Bonds, CommercialPaper and other

2017 € 425mln

LCR

31/12/2017

143%

NSFR

31/12/2017

121%

Excluding cash position of € 359mln in 2017

Strong regulatory ratio’s

Retail banking activities represent the main liquidity risk for Bank J.Van Breda & C°

Very stable financing mix

Stable funding Client deposits primary source of funding

Strong client deposit* gathering ability Conservative funding mix Stable Loan-to-Deposit Ratio

21

+6%

2017

3.9 3.6

4.2

2015 2014 2013

4.5

3.7

2016

In E

UR

bill

ion 1%

93%

5%

1%

commercial paper

client deposits

interbank

subordinated debt

2013 2014 2015 2016 2017

100% 100% 99%

95% 94%

€ 4.8bn

* Figures exclusive subordinated certificates

Sound credit portfolio

Risk costs credit portfolio

2009 2010 2011 2012 2013 2014 2015 2016 2017

0,09% 0,15% 0,06% 0,08% 0,04% 0,03% 0,04% 0,01% 0,04%

22

Non-performing loans < 1,54%

Restructured loans < 1,05%

Benchmarking with the Sector (NBB source)

Bank J. Van Breda & C°

2016 2017 # 2016 2017

Profitability

Return on equity 9,1% 8,9% # 7,4% 7,4%

Net profit/total assets 0,6% 0,6% # 0,8% 0,7%

Net intrest income/total assets 1,5% 1,4% # 1,6% 1,5%

Cost income 58,4% 58,2% # 59,4% 59,1%

Solvency

Common Equity ratio (phased-in) 15,7% 16,2% # 14,8% 14,2%

Risk weighted assets/total assets 36,2% 37,5% # 69,2% 66,1%

Leverage ratio (phased-in) 5,5% 5,9% 9,8% 8,9%

Liquidity

Customer loan to deposit ratio 95% 96% # 100,0% 99,5%

Liquidity coverage ratio 140% 138% # 150% 143%

Credit risk

Loan loss ratio loans & receivables 0,16% 0,07% # 0,01% 0,04%

Non performing loans 3,4% 2,8% # 1,8% 1,5%

Non performing loans domestic portfolio BE 2,7% 2,3%

Sector

4 Strategy &

Succes Factors

24

Only for … entrepreneurs & liberal professions

25

“To be the best provider of

financial guidance …

for professional & private assets

in all life stages of the client”

Clear & meaningful purpose

26

Our aim is that entrepreneurs

and liberal professionals

make the right financial choices.

This will bring them the peace of mind that

enables them to focus on their real ambitions

We assist our clients

in systematically building up,

managing and protecting their assets

Holistic approach

27

Professional

Activity

Loans

Accumulation

of assets

Loans

Activity

Accumulation

of assets

Management and

protection of assets

Live of one’s

investments

Build up

sufficient assets

Creation of value Private

Overview – Strategy – Follow-up

Liberal profession

Entrepreneur

Tailor-made financial guidance

28

Full package of banking services

In partnerships

with insurance companies

& asset managers

Three strategic values Focused on customer satisfaction

Specialised Personal Pro-active

51% Net Promotor Score

Resulting in one of the highest Net Promotor Scores in the

Belgian banking market

29

Net Promotor Score 51

30

From product to UUX Se

Vraag/

Klacht

Partner

Personalization

Purpose

Pride

Protection

Product Price Place Promotion

NPS

X

UX

UUX

Promotor

31

5 Prepared for

the future

32

Strong company culture

2012 2014 2016 2018

• Credibility 80% 82% 83% 85% +2%

• Respect 76% 78% 79% 81% +2%

• Fairness 73% 73% 77% 80% +3%

• Pride 83% 84% 85% 86% +1%

• Camaraderie 83% 87% 87% 88% 0%

The results indicate that 94% find Bank J.Van Breda a very good organization

to work for: 92% 91% 94% 94%

Results “Great Place to Work” survey

33

Commercial succes allows to invest

# Account managers

Real estate

IT

Bank de Kremer

34

# Account managers

2000: 60

2005: 101

2010: 132

2018: 158

> 8.000 visits to

prospects per year

Entrepreneurs with proven

track record

Niche programms towards

young liberal professions

Proposition based on

added value

35

Proactive & selective acquistion

Geographical footprint matching the niche

Antwerp 168.859 entrepreneurs

West-Flanders 127.775 entrepreneurs East-Flanders

137.527 entrepreneurs

Brussels 126.669 entrepreneurs

Vlaams-Brabant 102.155 entrepreneurs

Brabant Wallon 46.619 entrepreneurs

Limburg 78.336 entrepreneurs

Liège 89.079 entrepreneurs

Luxembourg 23.866 entrepreneurs

Namur 43.596 entrepreneurs

Hainaut 97.424 entrepreneurs

Antwerp (2)

Brussels (2) Leuven Hasselt

Liège

Namur

Mons

Herentals Mol

Turnhout

Kontich Lier

Mechelen

Kapellen ‘s Gravenwezel

Genk

St-

Truiden

Halle

Grimbergen

Aalst

Gent Deinze

Dendermonde

De Pinte

Ninove Oudenaarde

St-Gillis-Waas St-Niklaas Brugge

Ieper Kortrijk

Roeselare Waregem

Waterloo Wavre

Tournai

* Source: FOD Economie

**Source: Unizo - KMO Rapport 2017

56% of Belgian

entrepreneurs

located in Flanders

**

31

out of our 41

branches located

in Flanders Concentration of entrepreneurs

Bank J.Van Breda & C° branch

36

20% of Belgian

working population is

entrepreneur*

Upgrade branches

37

Kapellen

Sint-Niklaas

Upgrade branches

38

Herentals Hasselt

New IT platform (2009-2015)

Paperless bank

PA

YM

EN

TS

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MA

ININ

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UN

CT

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AL

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CR

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AC

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FIN

AN

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AR

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& M

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RK

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LO

AN

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INV

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TM

EN

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– IN

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RF

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CL

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(PF

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RM

AC

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TS

AC

CO

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DE

BE

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CR

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INS

UR

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FINANCE

40

New bank application EOS

Some features:

Reduces the use of paper documents

Avoids repeated encoding

Uses eID and other data sources

User friendly application

Allows processing outside the bank

Electronic signature

High tech – Human Touch UX

41

Products and transactions

2019 - Bank without cash

As from 2016 only drop-boxes & public ATM

Signing documents online

60% signed on iPad Accountmanager

31% signed online

9% signed on paper

Travel-free administration

Consul-tancy

Events & Community

Products

Transactions

Investment advice

42

Investment advice

Bank Van Breda = entrepreneurs only

Digital proposition for mass affluent

• Home market – no cannibalisation

• Financial planning app Launch 20/6/2018

Free of charge and 100% anonymous

Focus 2018: build user base

Launch december 2018: online onboarding

Focus 2019: online cross buying

Consul-tancy

Events & Community

Products

Transactions

Investment advice

43

Key Takeaways

Sound capital & liquidity position

Solid sustainable growth track record

Future oriented IT platform

Strong company culture

Clear purpose unique user experience

45

Q&A

Dirk Wouters, CEO

Véronique Léonard, CFO

46