4. Notes of the accounts Dreadful fourth quarter for financial markets No respite for sector Reduce costs! Financial position remains solid 2009: encouraging January 2009 better than January 2008. 4
5. Financial highlights Results affected by markdowns on structured credit portfolios CDO investments were marked down to zero Loss in value of the equity investment portfolio Share prices sank 20% Write-offs net negative impact 5
6. Financial highlights Deposit pricing pressure limited profitability in Belgium Customer deposit growth and life insurance sales remains solid Interest margin edges up by 6 basis points Underwriting result for the insurance business: very good Combined year ratio = 96% Full-year return on allocated capital for the Belgium Business Unit came to 36% 6
7. Financial highlights Severe challenges Overall economic activity slowed Credit growth restricted Commercial loan loss charges rose Derivates products hit High volatility Reduced effectiveness Quarterly loss 7
8. Financial position Solid financial position Liquidity buffer Firm solvency ratios Support Belgian State Flemish Regional Government Tier-1 ratio 11,2% Solvency margin 188% 8