(25/05/2005) FORTIS : Strong results for first quarter of 2005

Net profit increased to EUR 1,487 million First quarter 2005 compared with proforma first quarter 2004 1) - Net profit up 6% to EUR 1,487 million compared with the very strong first quarter of earnings per share up 5% - Net profit up 26% excluding the capital gain on the 2004 sale of Seguros Bilbao and the impact of the transactions with respect to Assurant; earnings per share up 25% - Banking net profit up 40%, from EUR 553 million to EUR 776 million - Total revenues up 13% - Costs remained flat - Lower impairments on loans - Insurance net profit up 18% from EUR 258 million to EUR 305 million (excluding Seguros Bilbao) - Total gross inflow Life +19%2) - Non-life combined ratio improved substantially, from 101% to 95% - Net profit at General was impacted in 2004 as well as in 2005 by the transactions with respect to Assurant, which amounted to EUR 443 million in the first quarter of 2005 and to EUR 422 million in the same quarter last year Jean-Paul Votron, CEO, comments: "The results we present today show that Fortis has got off to a very good start in 2005. Compared with the very strong first quarter last year, our net profit increased by 26% if we exclude the capital gain on the sale of Seguros Bilbao and the impact of the transactions with respect to Assurant. In Banking revenues came in much higher, the change in impairments on loans was lower and costs remained flat, resulting in a better cost/income ratio of 53.6%. At Retail Banking, sales of savings products were higher, reflecting the increase in customer satisfaction. At Merchant Banking strong results were booked by our promising niche activities, such as shipping and commodities. Strong inflows of new funds under management both at our private bank and at Fortis Investments contributed to the 9% increase in funds under management. At Insurance, Non-life further improved its very strong performance of previous quarters, while Life continued its good performance. Since presenting our full-year results for 2004 in March, we have made further progress in the application of our growth strategy. Our most important step was the acquisition of Di bank in Turkey. This move represents exciting growth perspectives in a fast growing, large and dynamic economy. We have also expedited up the roll-out of the business centre network across 25 European countries, which will accelerate our market penetration beyond the Benelux region. We have opened business centres in Hamburg, Zurich and Florence. Last month we announced the creation of Belgium's largest insurance company - Fortis Insurance Belgium. This new company, bringing together Fortis AG and FB Insurance, will remain dedicated to its two distribution channels: the broker and the banking channel. " 1) Fortis is publishing its first quarter 2004 and 2005 results under the new International Financial Reporting Standards (IFRS). Under IFRS, hedge accounting may not be applied retroactively to the 2004 accounts. However, to facilitate comparison, Fortis has published proforma net profit for 2004 taking the existing hedging strategies into account. From 2005 onwards, Fortis will apply hedge accounting in order to reflect the underlying economic reality and, consequently, to reduce substantially accounting volatility. The analysis in this press release refers to movements in the results versus the proforma results for first quarter of 2004, which include hedge accounting. 2) "Gross inflow" is the sum of gross written Life premiums and deposits received from investment contracts without discretionary participation features (DPF). 1. Fortis 1.1. First quarter 2005 compared with first quarter 2004

Key figures Fortis (in EUR million)	Q1 2005	Q1 2004 proforma	change	Q1 2004	change
Net profit	1,487	1,399	6%	974	53%
Excluding divestment results 1)	1,045	832	26%
Banking	776	553	40%	128	*
Excluding divestment results 1)	776	553	40%
Insurance	305	403	-24%	403	-24%
Excluding divestment results 1)	305	258	18%
General	406	443	-8%	443	-8%
Excluding divestment results 1)	-37	21	*
EPS (in EUR)	1.16	1.10	5%	0.77	51%
Excluding divestment results 1)	0.81	0.65	25%
Net equity per share (in EUR)	13.33			12.05 2)	11%
Return on equity (in %) 3)	18.4			16.9 4)

Excluding the capital gain on the sale of Seguros Bilbao and the impact of the transactions with respect to Assurant. 2) Year end. 3) Annualised. 4) Full-year 2004. 1.1.1. Net profit Fortis Net profit increased by 6% from EUR 1,399 million to EUR 1,487 million compared the very strong first quarter of 2004. This increase is mainly due to the strong improvement in results at Banking. Net profit went up 26% excluding the capital gain on the sale of Seguros Bilbao and the impact of the transactions with respect to Assurant. 1.1.2. Net profit Banking Net profit at Banking increased sharply from EUR 553 million to EUR 776 million (+40%). Total revenues went up by 13% to EUR 2,397 million, while total expenses remained stable at EUR 1,285 million. Change in impairments was lower at EUR 25 million (-73%). 1.1.3. Net profit Insurance Excluding the capital gain on the sale of Seguros Bilbao (EUR 145 million in 2004), the net profit in Insurance increased by 18% to EUR 305 million. Non-life further improved its very strong performance of previous quarters, while Life continued its good performance. Total gross inflow at Life, increased by 19% to EUR 2,368 million. Non-life premiums went up 6% to EUR 1,638 million (excluding gross premium income from Assurant in January 2004). Costs remained tightly controlled. Staff costs dropped 6% (due to Assurant), while FTEs went down 1% compared with the year end, to 12,758. The combined ratio improved from 101% to 95%, thanks both to a lower expense and claims ratio. 1.1.4. Net profit General Net profit at General decreased by 8% to EUR 406 million. It was impacted both in 2004 and in 2005 by the transactions with respect to Assurant, which amounted to EUR 443 million in the first quarter of 2005, versus EUR 422 million in the same quarter last year. 1.2. Solvency

In EUR billion	31 March 2005	31 December 2004
Net core capital	22.3	20.2
Legally required minimum	10.9	10.3
Surplus above legally required minimum	11.4	9.9
Surplus above legally required minimum (as %)	105	96
Fortis?s floor	17.2	16.4
Surplus above Fortis?s floor	5.1	3.8
Surplus above Fortis?s floor (as %)	30	23

Net core capital is calculated conservatively. It excludes any unrealised capital gains on the bond portfolio, goodwill, and any elements of embedded value. At 31 March 2005, net core capital was EUR 22.3 billion, which was EUR 11.4 billion (105%) above the legally required minimum and EUR 5.1 billion (30%) above Fortis's own floor. The bank's Tier 1 ratio and capital adequacy ratio remained high, at 7.5% and 10.8% respectively. 2. Banking

Key figures - Banking (in EUR million)		Q1 2005	Q1 2004 proforma	change	Q1 2004	change
Total revenues		2,397	2,122	13%	1,488	61%
Total expenses		1,285	1,282	0%	1,282	0%
Pre-tax profit		1,087	746	46%	112	*
Net profit		776	553	40%	128	*
Key figures
Cost/income ratio		53.6%	60.4%	*	86.2%	*
Credit loss ratio (in basis points) 1)		5	24		24
Tier 1 ratio		7.5%			8.3 2)
FTEs		35,775			35,626 2)	0%

Calculated as a percentage of average Credit Risk-Weighted Commitments. 2) Year-end 2004. 2.1. First quarter 2005 compared with first quarter 2004 Net profit at banking increased sharply from EUR 553 million to EUR 776 million (+40%), due to higher total revenues and a lower change in impairments on loans. Total revenues went up by 13% to EUR 2,397 million, while total expenses remained flat. Net interest income from Retail Banking, Commercial & Private Banking and Corporate & Investment Banking showed an increase of 2%. Higher volumes compensated for margin pressure, especially in Corporate. However, total net interest income ended up 9% lower, at EUR 1,053 million due to a change in classification under IFRS. Unrealised gains on trading derivatives were recorded entirely in trading results under Fortis Accounting Principles (FAP), but under IFRS they are divided between net interest income (accrued interest) and unrealised and realised gains/losses (clean fair value). This had a negative impact on net interest income in the first quarter of 2005, but a positive effect on realised and unrealised gains/losses. In general, this change in presentation will make net interest income more volatile, but total revenues will be unaffected. Unrealised gains, particularly on trading derivatives, added EUR 243 million to total revenues in the first quarter of 2005, whereas last year unrealised losses totalled EUR 99 million. Net commissions and fees rose by 1% to EUR 519 million, as higher asset management fees compensated lower commissions on securities transactions. Realised capital gains on investments came in lower at EUR 386 million (-9%), mainly due to lower capital gains on the bond portfolio. Dividends, shares in the results of associates and other investment income benefited from the revaluation of participating interests and higher dividends, increasing by 71% to EUR 66 million. Other revenues amounted to EUR 129 million, including a one-off EUR 48 million repayment of the "deposit protection fund" in Belgium. The change in provisions for impairment ended up 73% lower at EUR 25 million, compared with EUR 94 million last year, mainly thanks to lower additions and important releases, due to the favourable credit environment in the corporate loan segment. The credit loss ratio (calculated as a percentage of average Credit Risk-Weighted Commitments) dropped to 5 basis points from 24 last year. Total expenses remained stable at EUR 1,285 million, despite the 2% increase in staff expenses. Other costs went down by 2%. The cost/income ratio improved from 60.4% (proforma) to 53.6%. Revenues in Banking traditionally tend to be strong in the first quarter. FTEs remained virtually stable at 35,775 compared with the year end 2004. Strong inflows of new funds under management both at Private Banking (EUR 1.6 billion) and at Fortis Investments (EUR 3.3 billion) contributed to the 9% increase in funds under management to EUR 137 billion. 2.2. Performance per Banking Business

	Retail	Banking		Merchant	Banking		Commercial	& Private	Banking
	Q1 2005	Q1 2004	change	Q1 2005	Q1 2004	change	Q1 2005	Q1 2004	change
		proforma			proforma			proforma
Net Profit
(in EUR million)	320	248	29%	319	128	*	147	128	15%
Cost/Income ratio	56.0%	62.6%		48.4%	67.6%		54.3%	54.7%
FTEs	14,651	14,509 1)	1%	3,946	3,908 1)	1%	5,394	5,419 1)	0%

Year end 2004. 2.2.1. Retail Banking The Retail Banking net profit increased by 29% from EUR 248 million to EUR 320 million. This increase was due to a combination of higher revenues and lower costs. Total net revenues increased by 7% thanks to higher net interest income (+3%) and significantly higher commissions and fees (+15%). Retail Banking managed to keep the change in impairments on loans low despite the growth of the credit portfolio. Total expenses remained under tight control (-5%), thanks to the reduction in the number of branches which is on track versus planned. Staff costs remained stable, despite the small increase in FTEs following the incorporation of International Card Services into Retail Banking at the beginning of 2005. Customer satisfaction improved in both Belgium and the Netherlands, which was reflected in higher sales. A very successful marketing campaign increased savings assets at Retail Banking Belgium, as well as adding to market share. Retail Banking Netherlands focused succesfully on asset gathering. The 'Top Secret' marketing campaign resulted in the opening of 10,000 new 'Bonus Savings Accounts' with an additional volume of EUR 210 million. Fortis Investments posted strong first quarter results. The inflow of new money amounted to EUR 3.3 billion, bringing to total funds under management to EUR 96.5 billion. 2.2.2. Merchant Banking Net profit at Merchant Banking more than doubled from EUR 128 million to EUR 319 million, mainly due to increased customer flows at all major activities. Increased trading activities and a low change in loan impairments, thanks to the favourable credit environment, contributed strongly to net profit. Net interest income was lower and net commission income remained stable. Total expenses remained in line with operating performance. Merchant Banking continues to reap the benefits of its diversified product portfolio and improved, differentiated client coverage model. Client Service Teams composed of specialists from different competencies of Merchant Banking propose the best possible solutions to clients in different sectors of activity, enabling Merchant Banking to gain market share in such product and client niches as structured derivatives, trade and export finance, shipping, etc. Merchant Banking's client franchises in Shipping, Commodities and Intermodal continued to benefit from the prevailing favourable market climate. They have also started to gain from Merchant Banking's broad product offering, e.g. investment banking activities, such as IPOs, etc. Trading results were very good, especially for Currency Derivatives, Fixed Income products (bonds and derivatives) and Credit Derivatives, owing to the continued development and sale of CDO structures (e.g. Pyramid II and Renoir). The equity trading and brokerage unit performed very well, benefiting from better market conditions, as did the Global Securities Lending and Arbitrage desk. Results at Private Equity improved. At the end of the first quarter of 2005, the total portfolio stood at EUR 490 million, an increase of EUR 85 million compared with the end of 2004. 2.2.3. Commercial & Private Banking Net profit at Commercial & Private Banking went up by 15% from EUR 128 million to EUR 147 million. Total net revenues went up 6%, mainly thanks to higher net interest income (+9%). Changes in impairments ended up 24% lower. Total expenses increased by 5% in line with the operating performance. Commercial Banking posted higher results, as revenues grew substantially faster than costs and changes in impairments on loans were lower than last year. This business showed double-digit revenue growth in several countries outside the Benelux region. Commercial Banking opened its first business centre in Switzerland (Zurich), thus extending the Private Banking & Trust offering that had already existed in that country for many years. At Private Banking, funds under management increased by EUR 2.4 billion to EUR 54.7 billion, due to a good net intake (+EUR 1.6 billion) and growth in the equity and bond markets. Private Banking launched a number of new products and innovative services. A new Real Estate fund, the La Salle Vastgoedfonds II CV, sold out within a few days. MeesPierson Intertrust launched its Carbon Management Desk, helping clients with the administration of the EU's Emissions Trading Scheme. In the Netherlands, MeesPierson Private Banking and Triodos Bank set up Triodos MeesPierson Sustainable Investment Management, a joint venture for sustainable asset management. 2.2.4. Other Banking Other Banking includes all shared services entities and the corporate centre functions within the Bank, Asset and Liability Management (ALM), entities sold in 2004 (Fortis Bank Asia, GWK Bank), Fortis Hypotheek Bank and, for 2004 only, International Card Services, which is recognised in Retail Banking for 2005. Income from ALM and expenses related to shared services are both allocated to the Banking business lines. Net profit at Other Banking decreased from EUR 50 million to a net loss of EUR 10 million, explained - amongst others - by lower capital gains, which are not allocated to the Banking business lines, the reallocation of International Card Services to Retail Banking, lower results at Fortis Hypotheekbank and the sale of GWK Bank. 3. Insurance

		Q1 2004
Key figures Insurance	Q1 2005	proforma	change
Net Profit (in EUR million)	305	403	-24%
? Life	190	171	11%
? Non-life	115	89	30%
? Other	0	143
FTEs	12,758	12,937 2)	-1%
Life (in EUR million)
Gross written premiums	1,848	1,808	2%
Investment contracts without DPF 1)	520	177	*
Gross inflow	2,368	1,985	19%
Technical result	136	161	-16%
Operating margin	206	252	-18%
Non-life (in EUR million)
Gross written premiums	1,638	2,056	-20%
Excluding Assurant	1,638	1,553	6%
Technical result	132	84	57%
Operating margin	142	94	50%
Combined ratio	95%	101%

1) "Gross inflow" is the sum of gross written Life premiums and investment contracts without discretionary participation features (DPF). 2) Year-end 2004. 3.1. First quarter 2005 compared with first quarter 2004 Excluding the capital gain on the sale of Seguros Bilbao (EUR 145 million in 2004), net profit increased by 18% to EUR 305 million. Non-life further improved its very strong performance of previous quarters, while Life continued its good performance. Costs remained tightly controlled: staff costs dropped 6% (due to Assurant), while FTEs went down 1% compared with the year end, to 12,758. 3.1.1. Life Net profit at Life increased 11% to EUR 190 million due to higher non-allocated income and more favorable taxation. Operating margin went down by 18%, driven by lower investment income and a number of non-recurrent factors affecting the allocation of income between operating margin and non-allocated income. Total gross inflow went up by 19% to EUR 2,368 million, partly thanks to Millenniumbcp Fortis which was consolidated as of 1 January 2005. 3.1.2. Non-life Net profit at Non-life increased 30% to EUR 115 million. Gross premium income went up 6% to EUR 1,638 million (excluding gross premium income from Assurant in January 2004). Technical results ended 57% higher at EUR 132 million. The combined ratio improved from 101% to 95%, thanks both to a lower expense ratio and to a lower claims ratios across all product lines. 3.2. Performance per Insurance Business

Fortis	Insurance	Insurance	Belgium		Insurance	Netherlands		Insurance	International
		Q1	Q1		Q1	Q1		Q1	Q1
		2005	2004	change	2005	2004	change	2005	2004	change
			proforma			proforma			proforma
Net Profit	(in EUR
million)		140	136	3%	117	97	21%	48	27	78%
?	Life	102	102	0%	73	58	26%	15	11	38%
?	Non?life	38	34	12%	44	39	14%	33	16	*
FTEs		4,798	5,1721)	-7%	4,769	4,8091)	-1%	3,191	2,956 1)	8%
Life (in	EUR million)
Gross written	premiums	700	777	-10%	890	864	3%	259	107	*
Investment	contracts/
deposits		135	63	*	*	*		385	114	*
Gross	inflow	835	840	-1%	890	864	3%	644	221	*
Technical	result	82	71	15%	45	92	-51%	9	-1	*
Operating	margin	124	116	7%	71	137	-48%	11	-1	*
Non-life	(in EUR
million)
Gross written	premiums	336	315	7%	828	838	-1%	475	400	19%
Technical	result	47	29	59%	56	21	*	30	12	*
Operating	margin	51	38	34%	60	22	*	31	12	*
Combined	ratio	92%	98%		92%	100%		101%	105%

Year-end 2004. 3.2.1. Insurance Belgium Net profit went up 3% to EUR 140 million. Higher technical results at both Life and Non-Life compensated for lower capital gains. The Life operating margin increased by 7% accordingly. Non-life technical results increased sharply by 59%. Group Life gross inflow and gross Non-life premiums failed to compensate for lower gross inflow at Individual Life, which was 24% below last year's level. This was mainly because Fortis Bank launched a commercial campaign in the second quarter of 2005, whereas last year it did so in the first quarter. The effects of this successful campaign will be visible in the results for the second quarter. Gross inflow at Employee Benefits went up 21%, clearly illustrating the competitive advantage of the web-based e-Benefits products. The high standard of service provided to intermediaries and the innovative product offering are reflected in the 7% increase in gross Non-life premiums, which also benefited from higher rates. The combined ratio improved from 98% to 92%. 3.2.2. Insurance Netherlands Net profit increased by 21% to EUR 117 million. The measures taken to improve profitability have resulted in a strong improvement in Non-life results, driven by favourable claim development and strict cost control. The Non-life results confirm that the new strategy announced in 2004 and currently being implemented is delivering strong bottom line improvements. The combined ratio improved from 100% to 92%. Non-life gross premiums remained virtually stable at EUR 828 million. At Life, pre-tax results income declined from EUR 119 million to EUR 99 million. This was primarily due to an exceptional item of EUR 22 million that contributed to the 2004 pre-tax results. Without this, Life results would have been stable. The movement in the operating margin was driven by a number of incidental factors, affecting the allocation of income to operating margin and non-allocated income. Gross inflow at Life went up 3% to EUR 890 million, as both regular and single premiums increased. AMEV, Stad Rotterdam and Woudsend will merge to become the new generalist insurance company Fortis ASR in October 2005. The integration is progressing as planned. 3.2.3. Insurance International Net profit increased by 78% from EUR 27 million to EUR 48 million. This strong performance was largely driven by Non-life (especially Fortis Corporate Insurance), Life (CaiFor) and the inclusion of Millenniumbcp Fortis as of 1 January 2005. The operating margin at Life amounted to EUR 11 million, compared with a loss of EUR 1 million last year, mainly due to the consolidation of Millenniumbcp Fortis. Total gross inflow at Life increased from EUR 221 million to EUR 644 million. This increase was primarily the result of the consolidation of Millenniumbcp Fortis (EUR 316 million) and continued good performance of Fortis Luxembourg. At Non-life both technical results and gross written premiums (up 19% to EUR 475 million) increased thanks to the consolidation of Millenniumbcp Fortis and strong results at Fortis Corporate Insurance. The Asian participations performed well. Gross written premiums went up by 21%. Please see the "Financial and Operational Review" for a detailed analysis of the first quarter 2005 results. This document is available on our website: www.fortis.com CFO Gilbert Mittler will host a conference call for journalists today at 8.30am CET. To access please dial: United Kingdom (listen only) +44 207 365 1831 Netherlands (listen only) +31 20 713 2998 Belgium (listen only) +32 2 400 6864 CFO Gilbert Mittler will host a conference call for analysts and investors on 26 May at 15.00 CET. To access please dial: United Kingdom (listen only) +44 207 365 1831 United States (listen only) +1 718 354 1158 Belgium (listen only) +32 2 400 6864 Fortis is an integrated financial services provider active in the fields of banking and insurance. With a market capitalisation of EUR 27.9 billion (29/04/2005) and around 51,000 employees, Fortis ranks among the top 20 European financial institutions. In its home market, the Benelux countries, Fortis occupies a leading position which it aims to develop and bolster. Fortis is drawing on the expertise it has acquired in its home market to realize its European ambitions via growth platforms. Fortis also operates successfully worldwide in selected activities. In specific countries in Europe and Asia it effectively exploits its know-how and experience in bancassurance. Fortis is listed on the exchanges of Amsterdam, Brussels and Luxembourg and has a sponsored ADR programme in the United States. Press Offices: Brussels: +32 2 565 35 84 Utrecht: +31 30 226 3219 Investor Relations: Brussels: +32 2 510 53 91 Utrecht: +31 30 226 3220 Attachements to the press release is available on http://www.companynewsgroup.com © CompanynewsGroup