0 Banco Itaú Holding Financeira S.A. September, 2003.

1

Banco Itaú Holding Financeira S.A.

September, 2003

2


• Largest Market Capitalization of the Brazilian Banking System: R$ 25.6 Billion (08/21/03);

• Financial Holding Company status, granted by FED;

• Member of the Dow Jones Sustainability World Index since 1999;

• Largest participation in BOVESPA’s Corporate Governance Index (IGC): 23.7% (08/18/03);

• Most Valuable Brand in Brazil: US$ 1.1 billion (Interbrand – June 2003).

3

Results

Stock Market

Management in different scenarios

Sensitivity Analysis - Retail

Agenda

Earnings per Share

International Operations

Itaú BBA

4

Results

Agenda

Stock Market



Earnings per Share


Itaú BBA

5

2.40%2.80%

1st Sem 2002 1st Sem 2003

26.90%

29.60%


Annualized ROEAnnualized ROE

Efficiency RatioEfficiency Ratio

Credit Operations Credit Operations NonperformingNonperforming

5.90%4.65%


55.20%

42.90%


Highlights – 1st Semester of 2003 and 2002

2.7 p.p.

0.4 p.p. -12.3 p.p.

-1.2 p.p.

Annualized ROAAnnualized ROA

6

R$ Million

Consolidated Balance Sheet

Liabilities

Total Liabilities

Mutual Funds

Deposits

Open Market and others

Accept./Issue - Securities

Foreign Exchange

Borrowings/On-Lending

Tech. Prov Ins/Cap/Pens.

Other Liabilities

Minority Interest

Stockholders` Equity

06/30/03with BBA

and FIAT

106,799

67,142

34,826

14,560

5,085

5,356

28,806

5,388

1,058

948

10,772

94,265

without BBA

and FIAT

62,391

30,929

14,015

3,623

5,153

23,071

5,388

199

865

10,772

06/30/02

86,247

56,243

28,754

16,478

3,852

3,370

20,625

3,459

673

748

8,288

Assets

Total Assets

Guarantees

Cash + Liquidity

Securities

(Additional Allowance)

Interbank Relations

Net Credit Operations

(Additional Allowance)

Foreign Exchange

Others

Permanent Assets

06/30/03with BBA

and FIAT

106,799

6,232

16,315

26,052

(545)

9,917

36,120

(848)

7,270

9,238

3,280

without BBA

and FIAT

94,265

4,778

16,385

21,874

(545)

9,741

26,501

(792)

6,737

8,706

5,658

06/30/02

86,247

4,681

15,517

20,414

(597)

7,138

27,962

(715)

4,722

8,309

3,497

7

Credit Operations

Credit Operations Credit Operations + Guarantees

R$ Million

16,890

23,674

29,61519,596

27,253

38,419 38,35434,282

44,58645,414

0

10,000

20,000

30,000

40,000

50,000

1999 2000 2001 2002 2003 (*)

28,30233,080

06/30/2003Itaú Holding without BBA and FIAT

Credit OperationsCredit Operations + Guarantees

31,50637,020

12/31/2002

(*) On June 30, 2003

CAGR = 26.5%

8

5.90 5.60

4.17 4.164.65

12.67 12.90

8.94

1.73 1.66 1.461.99 2.35

8.46

10.66

jun-02 sep-02 dec-02 mar-03 jun-03

Credit Operations

Global

IndividualsCompanies

Nonperforming Loans (over 60 days) Ratio (%)Nonperforming Loans (over 60 days) Ratio (%)

Coverage Ratio (*)Coverage Ratio (*)

164% 172%198% 189%

173%

jun-02 sep-02 dec-02 mar-03 jun-03

Provision for Loan LossesProvision for Loan Losses R$ Million

Total Provision

(A)

Portfolio overdue over 14 days (B)

(A) – (B)

jun/01 (223)

dec/01 (118)

jun/02 (231)

dec/02 607

jun/03

2.413

2.686

3.142

2.565

2.834

2,190

2,568

2,911

3.172

3.082 248

(*) Provision for Loan Losses / Total Nonperforming Loans over 60 days

9

Provision for Loan Losses

R$ Million

Minimum Provision

Additional Provision

Total Provision

1,406 1,5101,692

1,853 1,9532,196

2,5152,332 2,285 2,234

630680

680715

715

715

747841 843 848

3,172 3,128 3,0822,911

3,262

2,6682,568

2,3722,190

2,036

Mar.01 Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 Mar.03 Jun.03

10

Funds Raised and Managed

R$ Million

23,22527,875 28,331 28,754

34,826

31,994

41,664

55,796 56,243

67,142

55,219

69,539

84,127 84,997

101,968

0

20,000

40,000

60,000

80,000

100,000

120,000

1999 2000 2001 2002 2003(*)

(*) On June 30, 2003.

Assets under Management

Total Resources

Total Deposits CAGR = 19.2%

11

Statement of IncomeR$ Million

Total Assets 106,799 94,265 86,247

Financial Margin

Provision for Loan and Lease Losses

Banking Service Fees

Personnel + Other Administrative Expenses

Equity share from subsidiaries and affiliates

Extraordinary Result

Net Income

5,472

(932)

2,449

(3,554)

(62)

(548)

1,490

1st Semester

4,615

(785)

2,381

(3,350)

128

(545)

1,490

3,885

(943)

2,010

(3,366)

200

(23)

1,048

2003

With BBA and FIAT

2002Without BBA and FIAT

23.8% 9.3%

42.2% 42.2%

12

1st Semester 2002With BBAand FIAT

590

150

468

85

100

266

470

56

16

248

2,449

Without BBAand FIAT

580

150

468

85

100

266

470

42

2

218

2,381

Mutual Funds Management Fees

Collection

Current Account Services

Tax Collection

Interbank Fees

Credit Operations

Credit Cards

Income from Guarantees Provided

Income from Administration of Consortium

Other

Total

501

142

414

78

97

219

332

31

-

195

2,011

2003

Banking Service FeesR$ Million

18.4%21.8%

Banco Fiat contributed with

R$ 15 million

13

R$ Million

Insurance, Capitalization and Pension Plans

157

13

2 246

(234) (28) 27

170

7 177

(60) (3)

Financial Margin

Other Revenues / Operating Expenses

Banking Service FeesPartial Results of Insurance, Capitalization and Pension PlansAdministrative ExpensesTax ExpensesOther Operating Income / Operating ExpensesOperating Income

Non-Operating IncomeIncome before Income Tax

Income Tax / Social ContributionProfit Sharing

309

56 20

322 (203)

(45) (38) 365

7 372

(127) (3)

242Net Income 114

112%

1st Semester 20022003

14Source: Published Financial Statements

(*) Banking Revenues: Financial Margin + Banking Services Fees + Income from Insurance Premiums, Pension Plans and Capitalization + Equity in Income of Affiliates

Quantity of Shares Adjusted by splits and subscriptions and Excluding Shares in Treasury

440

210

243

0

50

100

150

200

250

300

350

400

450

500

550

600

1995 1996 1997 1998 1999 2000 2001 2002

Itaú

Bradesco

Unibanco

Comparative: Banking Revenues/Share(*) Base: 1995 = 100Base: 1995 = 100

270

152

163

15

Administrative Expenses

R$ Million

1,234

2,088

1,165

1,954

1,161

1,850

1st Semester 2002

Personnel Expenses

Other Administrative Expenses

2003S/ BBAe FIAT

2003C/ BBAe FIAT

3,322 3,119 3,011Sub-Total

232 231 355Restructuring

3,554 3,350 3,366Total

16

R$ Million

1st Semester

Personnel Expenses


Sub-Total

Restructuring

Total (Without BBA and FIAT)

Salaries.......7%

Dollar.........45%IPCA*.........17%

Indices

Salaries.......7%

Total (With BBA and FIAT)

1,165

1,954

2003

3,119

231

3,350

3,554

204• BBA + FIAT

(58)

(344)

Variation

(402)

(149)

(551)

(347)

-

1,223

2,298

2002 Adjusted

3,521

380

3,901

3,901

-

Adjusted Administrative Expenses

(*) IPCA = Consumer Prices Index

17

Results

Itaú BBA

Stock Market



Agenda

Earnings per Share


Stock Market



Earnings per Share


Itaú BBA

18

187 267 345 476 559 8001,232 1,071

2,038535

-548-23-82

225

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1995 1996 1997 1998 1999 2000 2001 2002 2003*


Recurring Result 1st Sem.

Evolution of Net Income - Semesters

(*) On June 30, 2003

R$ Million

CAGR Recurring = 37.5%

1,490

19

347 610939 1,128

1,5181,918

2,353

3,080

-218 -248

351

-703-77

36

-18

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1995 1996 1997 1998 1999 2000 2001 2002 2003*


Recurring Result

R$ Million

(*) On June 30, 2003


2,377

Evolution of Net Income - Annual

20

1.57 2.23 2.89 4.04 4.74 6.9511.04 9.63

17.824.54

-4.79-0.7 -0.21

2.02

-10

-5

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003*

Extraordinary EPS

Recurring EPS

Evolution of EPS - Semesters

(*) On June 30, 2003

13.03


Decr. Number of Shares (%) = -0.6%

R$

21

2.91 5.097.86 9.57

12.8716.66

21.08

27.69

-1.83

2.98

-2.1-6.32

-0.67

0.32

-0.15

-10

-5

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003*

Extraordinary EPS

Recurring EPS

(*) On June 30, 2003

21.37

CAGR Recurring = 38.0%Decr. Number of Shares (%) = -1.0%

R$

Evolution of EPS - Annual

22

0

100

200

300

400

500

600

700

800

900

1000

1995 1996 1997 1998 1999 2000 2001 2002 2003

Itaú (*)

Bradesco

Unibanco

Source: Published Financial Statements

Market Comparison – EPSBase: 1995 = 100Base: 1995 = 100

556

258

324

743

293

449

23

906

268

439

0

100

200

300

400

500

600

700

800

900

1000

1995 1996 1997 1998 1999 2000 2001 2002 2003

Itaú (*)

Bradesco

Unibanco


Just for comparison purposes the half-yearly net incomes were multiplied by 2 (EPS Base: 1995 = 100)


556

258

324

743

293

449

24

906

268

439

0

100

200

300

400

500

600

700

800

900

1000

1995 1996 1997 1998 1999 2000 2001 2002 2003

Itaú (*)

Bradesco

Unibanco


Just for comparison purposes the half-yearly net incomes were multiplied by 2 (EPS Base: 1995 = 100)


556

258

324

743

293

449Results consistent with

the Shareholder

Value

25

Results

Agenda

Stock Market



Earnings per Share


Itaú BBA

26

10,896

18,915

23,341

7,056

18,141

20,05618,550

21,811

19,122

25,575

22,148

9,269

17,119 16,969

3,185

6,0367,185

5,6354,861

6,382

15,120

18,06817,490

20,345

15,451

6,901

15,847

19,808

6,901 6,963

2,439

7,5377,460

0

5,000

10,000

15,000

20,000

25,000

Dec-98

Mar-99

Jun-99

Sep-99

Dec-99

Mar-00

Jun-00

Sep-00

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Mar-03

Jun-03

Aug-03

R$ Million

Source: Economática. Period : Dec/98 until Aug. 21 2003

Itaú

Bradesco

Unibanco

The largest banks in Brazil

BradescoItaú HoldingUnibanco

Stockholders’ Equity Jun/2003

12,62910,772

7,601

Consistently the largest Market Capitalization in Brazilian banking sector

27

32,520,887

30,415,020

16,617,34916,617,349

21,071,420

21,986,065

11,449,467

8,428,955

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2001 2002 2003(**)

Total Bovespa NYSE

R$

Daily Average Traded Volume - LiquidityBovespa + NYSE(*)Bovespa + NYSE(*)

(*) – Common, Preferred Shares and ADRs

(**) – Daily Average until August 21, 2003

CAGR = 47.9%

CAGR = 14.9%

28

32,520,887

30,415,020

16,617,34916,617,349

21,071,420

21,986,065

11,449,467

8,428,955

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2001 2002 2003(**)

Total Bovespa NYSE

R$CAGR = 47.9%

CAGR = 14.9%

Equivalent to US$ 11 million

Aug/03 :Over 10 million

ADRs Issued

Daily Average Traded Volume - LiquidityBovespa + NYSE(*)Bovespa + NYSE(*)

(*) – Common, Preferred Shares and ADRs

(**) – Daily Average until August 21, 2003

29

0

200

400

600

800

1.000

1.200

93 94 95 96 97 98 99 00 01 02 03

Itaú (1)Itaú (2)Bovespa

US$

100

748

321

1,094Itaú(1) Itaú(2) Ibov.

10 years 25.19% 20.80% 11.57%

5 years 20.76% 16.14% -2.32%

2003 74.20% 71.17% 57.35%

Annual Average Appreciation in US$

Real Plan

Russian Crisis

Real Devaluation

Mexican Crisis

Asian Crisis

Argentine Crisis

Attack to WTC

(1) With reinvestment of dividends(2) Without reinvestment of dividends

Preferred Shares AppreciationEvolution of US$ 100 Invested from Dec. 1992 to August 21, 2003Evolution of US$ 100 Invested from Dec. 1992 to August 21, 2003

30

Results

Agenda

Stock Market



Earnings per Share


Itaú BBA

31

Target Planned Growth Shareholder Value

1990 20031994

Anticipating Scenarios Before and After Real Plan

Changes in the Approach

32

10,772

2,229

9,036

7,578

6,6425,907

4,198

3,3372,857

880

181

2,377

2,389

1,8411,869

721592

3433923820

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03(*)

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

3,000

3,250

3,500

3,750

4,000

Stockholders' Equity

Net Income

R$ Million

CAGR)(90-03) = 13.4%

1st Semester of 2003Net Income:

R$ 1,490 Million

(*) June 30, 2003

CAGR(90-02) = 23.9%

Sustained Results GrowthEvolution of Stockhoders’ Equity and Net Evolution of Stockhoders’ Equity and Net IncomeIncome

33

2,8573,337

4,198

5,9076,642

7,578

9,036

2,229

10,772

880

382 392 343

592721

1,869 1,841

2,389

2,377

1810

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03(*)

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

3,000

3,250

3,500

3,750

4,000

Stockholders' Equity

Net Income

Real Plan

Mexican Crisis

Asian Crisis

Russian Crisis

Real Devaluation Argentine

Crisis

Collor Plan

R$ Million

CAGR)(90-03) = 13.4%

Sustained Results GrowthEvolution of Stockhoders’ Equity and Net Evolution of Stockhoders’ Equity and Net IncomeIncome

1st Semester of 2003Net Income:

R$ 1,490 Million

(*) June 30, 2003

CAGR(90-02) = 23.9%

Jan/90 to Jun/03Dividends:

R$ 4.6 BillionCapital Increase (1):

R$ 0.1 Billion

Adaptability to Scenarios

34

2,218 2,233 2,971 3,437 3,247

5,8387,184

18,550

21,81120,056

25,575

19,122

7,056

0

5,000

10,000

15,000

20,000

25,000

30,000

91 92 93 94 95 96 97 98 99 00 01 02 03(*)

R$ Million

(*) – August 21, 2003

Market CapitalizationBanco Itaú Holding Financeira S.A.Banco Itaú Holding Financeira S.A.

CAGR = 23.7%

35

1990 20031994

Operational To perform well! To perform efficiently!




36

159.1

209.3190.7

336.5

395.6

452.7

257.7

0

100

200

300

400

500

1996 1997 1998 1999 2000 2001 2002

CAGR = 19.0%

R$ Million

(*) Includes: Electronic Bank, Computers and Peripherals and Telecommunications.

Investments in Infrastructure (*)...

1st Sem/2003 = R$ 151.8 million

Total in the period:R$ 2.2 billion

Accounting Value R$ 469 million

(06/30/03)

37

1 154 340923

13,777

8,876

27

6,558

11,714

2,976

18,533

795 866 9131,071

1,8532,017

1,826

2,597

1,905

1,479

582

3,175

1,304

2,995

400

1,100

1,800

2,500

3,200

75 77 79 81 83 85 87 89 91 93 95 97 99 01 03(*)

0

5,000

10,000

15,000

20,000

ATMs

Quantity

Branches + CSBs(**)

(*) June 30, 2003 (**) – Customer Site Branch

CAGRBranches + CSBs = 6.4%

SustainabilityDistribution Network EvolutionDistribution Network Evolution

Obs.: 308 Points of Sale in 1972

38

5,051 5,2475,524 5,587

6,060

8,411

13,892

10,764

13,462

4,2894,800

4,000

6,000

8,000

10,000

12,000

14,000

85 87 89 91 93 95 97 99 01 03(*)

Checking Accounts(**)

Checking AccountsThousand

(*) June 30, 2003

CAGR = 6.0%

(**) – 1990, 1991 and 1992 : excluded the checking accounts in NCz$ and DER / VOBC

39

41,630

47,524

42,262

31,368

87,436

54,300

41,911

32,750

25,000

66,922

37,119

49,433

60,865

77,692

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

75 77 79 81 83 85 87 89 91 93 95 97 99 01 03(*)

Employees

Employees

(*) June 30, 2003

CAGR = 1.9%

40

154

344

111

79514142

222

1,998

1,427

1,121

813

477284141

2,598

0

40

80

120

160

200

240

280

320

360

1995 1996 1997 1998 1999 2000 2001 2002

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

Transactions (milllion)

Customers (million)

1st Semester 2003Transactions: 204 Million

Customers: 2.9 Million

… Creating Efficiency to our Customers Internet BankingInternet Banking

41

Efficiency Ratio(¹)

Great efforts to optimize the operational expenses and increase the efficiency

79%

43%49%

55%58%58%58%64%

58%57%

70%72%70%

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

(*)

(*) 1st Semester 2003

42

1990 20031994

Market Growth Focus





43

Market Segmentation Structure

Public Sector

Very Small CompaniesAnnual Sales < R$ 500 Thousand

PrivateInvestments > R$ 1 Million

Personnalité ItaúIncome > R$ 5,000

IndividualsIncome > R$ 2,000

“Individual”

Specialized Structures With Account Managers Without Account Managers

IndividualsCompanies

Small CompaniesR$ 500Tthousand < Annual Sales < R$ 10 Million

Medium CompaniesR$ 10 Million < Annual Sales < R$ 100 Million

Banco Itaú Holding Financeira

Banco Itaú-BBA Banco Itaú

Large Corporations

• Premium• Investor• Undertaker

Card Holder

44

Loan Operations (*)

By Currency

Foreign Currency

Local Currency

Total

13,412

31,174

44,586

(*) Includes Guarantees

15,187

31,203

46,390

10,962

23,877

34,839

-11.7%

-0.1%

-3.9%

22.3%

30.6%

28.0%

R$ Million

By Segment

Large Companies

Very Small, Small and Medium

Companies

Individuals

Credit Card

Real Estate Indiv.

Comp.

- TOTAL

06/30/03

25,830

4,077

9,672

2,809

2,096

102

44,586

03/31/03

27,492

4,262

9,751

2,618

2,154

113

46,390

06/30/02

19,172

3,400

6,924

2,758

2,411

175

34,839

Variation %Jun/03 – Mar/03

-6.0%

-4.3%

-0.8%

7.3%

-2.7%

-9.7%

-3.9%

Variation %Jun/03 – Jun/02

34.7%

19.9%

39.7%

1.9%

-13.0%

-41.4%

28.0%

R$ Million

06/30/03 03/31/03 06/30/02Variation %

Jun/03 – Mar/03Variation %

Jun/03 – Jun/02

45

1990 20031994

Personnel Generic Specialization




Market Growth Focus


46

12.6%15.2%

17.0%18.8%

23.8%26.2%

30.9% 33.0%

28.1%

1.3% 1.6%

2.9%

8.1%

0.9% 0.9%

8.6%

4.7%

2.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1994 1995 1996 1997 1998 1999 2000 2001 2002

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Graduated

Post-Graduated

Evolution of Employees Scholar Level

41.1%

‘

47

1990 20031994

Remuneration Fixed Structure Performance Related




Market Growth Focus



48

Remuneration – Variable and Fixed

81.3%

18.7%18.7%Variable

Fixed

49

1990 20031994

Risks Avoid Manage




Market Growth Focus




50

Interest

Currency

Sovereign Risk

Before 1994

Government Controlled

After 1994

Free Market

Market Risk

51

Different SegmentsDifferent

Risks

Before 1994

Same Prices

After 1994

Different Prices

Credit Risk

52

1990 20031994

Corp. Govern. Formal Active




Market Growth Focus



Risks Avoid Manage


53(*) APIMEC – Brazilian Association of Analysts and Investment Professionals of the Capital Markets.

Focus on Corporate Governance

Apr-00 – Creation of the IR website

May-01 – APIMEC* Meeting – 10 hours

Jun-01 – Adherence to Bovespa´s Level 1

Jun-02 – Trading and Disclosure Committees

2002 – 11 APIMEC Meetings (Pioneership in Brazil)

Transparency

Apr-00 – Independent Fiscal Council

Apr-01 – Independent Members in the Board

of Directors

Apr-02 - Tag Along and Reinforcement of the

Independence of the Board

Jul-02 – Trading and Disclosure Committees

Respect to the Minority Shareholders

Member of the Dow Jones Sustainability Index since 1999

Feb. 2002 – Listing of ADR Level II at NYSE + Financial Holding Company status by FED

Effective creation of Value to the Shareholders

54

1990 20031994

Businesses Banking Financial Services




Market Growth Focus



Risks Avoid Manage



55

SustainabilityIncome Diversification Income Diversification (1)(1)

Year Base: 2002

(1) Income: Financial Margin (Expenses with Provision for Loan Losses not Included) + Banking Services Fees + Income from Insurance, Cap. and Pension Plans and Equity income from unconsolidated investments.

(2) Credit Cards not included. (3) Own Working Capital included

Individuals – 73%

Tax Collection – 3%Treasury(3) – 13%

Ins./Pension Plans/Cap.– 6%Current Account Services – 6%

Funds – 6%

Credit Cards – 10%

Financial Intermediation (2)

- 53% Other – 6% Services

Credit Cards – 10%

Financial Intermediation (2)

- 50%

Companies – 27%

56

CAGR = 25.9%

Evolution of Credit Cards

1,000 1,104

1,829 1,799

2,279

3,321

4,590

5,579 5,616

0

1,000

2,000

3,000

4,000

5,000

6,000

1995 1996 1997 1998 1999 2000 2001 2002 2003*

In Million

(*) On June 30, 2003.

57

Credit CardsMarket Share by Sales (%)Market Share by Sales (%)

Itaucard

Credicard

Bradesco

Banco do Brasil

Unibanco

1997

9.7%

n.d.

10.2%

8.8%

9.7%

1998

9.4%

n.d.

9.5%

10.1%

9.2%

1999

10.3%

27.0%

11.1%

10.5%

8.3%

2000

11.4%

24.8%

11.5%

11.5%

8.1%

2001

12.2%

23.4%

11.5%

12.1%

8.7%

2002

12.7%

20.8%

11.7%

13.1%

8.6%

2003*

12.8%

18.3%

11.9%

13.8%

7.9%

Itaú’s Share in Credicard: 33%

(*) On June 30, 2003.

58

1990 20031994



Market Growth Focus



Risks Avoid Manage




Intangibles Not Managed Managed


59

Atualization of the Brand ItaúRevitalizationRevitalization

Previous1992

Current2003

60

ItaúBradesco

Citibank

BankBoston

Real ABN Amro

Unibanco

Banco do Brasil

HSBC

Santander

JP Morgan

Institution 0 2 4 6 8 10 12 14

11.14

10.92

10.40

8.72

6.77

6.50

5.69

3.97

3.71

Average = 5.26

The Most Admired* Banking SectorBanking Sector

(*) Source: Carta Capital Magazine / Interscience

12

5

4

3

6

8

9

12

10

2001

12

3

4

5

6

7

8

9

10

2002

Ranking in 2002

13.6221

4

3

5

8

7

9

12

n.d.

2000

21

3

4

6

5

7

10

n.d.

n.d.

1998

12

4

3

5

8

7

14

13

n.d.

1999

61Source: Datafolha Survey

Most Admired

Bigger Growth

Wish to havean Account

1999 2000 2001

1110

1113

121414

13

1614

16 16

2002

Survey – Data FolhaItaú´s Rankings (%)Itaú´s Rankings (%)

62

Customers (%)Population (%)

Sample researched: Sep/02 = 2,720

Sample: Customers of all banks = 1,041

Most Modern Bank (Top of Mind)

Seleções Magazine

2721Itaú

2020Banco do Brasil

1314Bradesco

79Caixa Econômica Federal

43Unibanco

42HSBC/Bamerindus

32ABN/Real

1117Not known / None

63

The most Valuable Brand in BrazilDinheiro Magazine – 06/04/2003Dinheiro Magazine – 06/04/2003

Company

BradescoBanco do BrasilSkolBrahmaPetrobrasUnibancoEmbraerAntarcticaRealSadiaPerdigão

Value in 2001

697308

---

303196

--

128-

Value in 2003

809427421294286208193184133106100

Itaú 970 1,093

US$ MillionUS$ MillionSurvey conducted by the British company Interbrand

64

Best Brazilian Bank– Euromoney (6th year in a row)

Main Recognitions

Best Brazilian Bank – The Banker (3rd year in a row)

Best Bank in Brazil – Global Finance (2nd year in a row)

Member - Dow Jones Sustainability World Index 2003 (4th year in a row)

1st Brand among Latin American Banks and 3rd Brand – Brandchannel

Best Publicly Listed Company – APIMEC Nationwide (1999 and 2001)

Hors-Concours in Transparency – Atlantic Rating (5th year in a row)

Best Investor Relations Website in Latin America – Investor Relations Magazine

Best Investor Relations Officer – APIMEC Nationwide (1999, 2001 and 2002)

65

Conservative Accounting Practices

Total (*) R$ 2.8 billion

• Additional Provision for Loan Losses R$ 848 million

•Financial Instruments: Market x Recorded Value (Net of Additional Securities Provision) R$ 894 million

• SecuritiesR$ 531 millionMarket to Market

Additional Provision R$ 545 million

Unrealized Amounts June 30, 2003

(*) Explanatory Note 16 (R$ 1,864 million) + Additional Provision for Loan Losses

66

BFB (1995) 281Banerj (1997) 25Bemge (1998) 297Banco del Buen Ayre (1998) 123Banestado (2000) 1,089BEG (2001) 364Lloyds Asset Management (2001) 160BBA(2002) 1,343BBA-Icatu (2002) 51Fiat (2002) 462Total 4,195

Goodwill on Acquisitions

R$ MillionCompletely Amortized in the

Consolidated

67

181 203 235439 455

834

1,342

3,760

1,9571,604

3,751

15.1%

12.3%

15.4%

19.4%18.9%

11.1%

31.6%29.6%

21.4%

18,5%

25.0%

18.8%

11.1%

30.4%

27.7%26.3%

0

1,000

2,000

3,000

4,000

75 77 79 81 83 85 87 89 91 93 95 97 99 01 03(*)

0%

5%

10%

15%

20%

25%

30%

35%

Patrimônio Líquido

ROE

US$ Million %

Average ROE

23.3%

Average ROE

14.4%

Average ROE

18.7%

(*) ROE of the 1st Semester 2003 - AnnualizedObs.: SE of US$ 49 million in 1972

CAGR SE = 11.7%

Average ROE (98-J03) 28%

Working Capital: R$ 7,492 million

(70% of SE)

Evolution of Stockholders’ Equity (SE) and ROE

68

1990 20031994




Market Growth Focus



Risks Avoid Manage




Intangibles Not Managed Managed

And what about the

future results?

69

Results

Itaú BBA

Stock Market



Agenda

Earnings per Share


Stock Market



Earnings per Share


Itaú BBA

70

Variables

Inflation

Interest Rate (SELIC)

Compulsory over Current Deposits

Compulsory over Saving Dep. (TR** + 6% p.a.)

Reduction of Spreads

Growth in Volumes

Controlled Expenses

Scenario (*)

9.2% p.a.

26.2% p.a.

45.0%

20.0%

Current

5.0% p.a.

12.0% p.a.

25.0%

20.0%

(*) Future expectations derived from this sensitivity analysis must consider the risks and uncertainties that involve any activities and are away from the control of the companies of the conglomerate (politic and economic changes, volatility in interest rates and exchange, technology changes, inflation, financial disintermediation, competitive pressures over the products and prices and changes in the applicable regulations).

Sensitivity Analysis – Retail (*)

(**) Interest Reference Rate

71

• Retail Funds

• Branches

• Personnalité

• Small and Middle Companies

• Credit Cards

• Vehicles Financing

• Insurance, Pension Plans and

Capitalization

Sensitivity Analysis – Retail

72

R$ Million

Resources 100 100 100 130 91 70

Current Situation Scenario (*)

Average Balance

Financial Margin

Spread Average Balance

Financial Margin

Spread

Loans - Individuals 100 100 100 154 96 58

Loans - Businesses 100 100 100 149 98 62

Real Estate Credit 100 100 100 152 130 85

Banking Service Fees 100 123

Total Revenues 100 101

Insurance Products 100 166

Provisions 100 94

Expenses 100 120

Net Income before tax 100 87

Return on Capital maintained over

20%

(*) Future expectations derived from this sensitivity analysis must consider the risks and uncertainties that involve any activities and are away from the control of the companies of the conglomerate (politic and economic changes, volatility in interest rates and exchange, technology changes, inflation, financial disintermediation, competitive pressures over the products and prices and changes in the applicable regulations).

Sensitivity Analysis – Retail (*)

73

Results

Agenda

Stock Market



Earnings per Share


Itaú BBA

74

5

2

553

22

6

-

25

1

3

300

-

4

12

50

3

2

620

34*

11

-

43

Vice-Presidents

Management levelsto Client

Nº of Employees

Executive Share-holders

Regional Directors

Commercial Superintendents

Officers

(73% of the total)

CorporateBank

Itaú BBA – Structuring the Bank

(*) 12 executiv(*) 12 executives invited to become shareholderses invited to become shareholders

75

Name / Reputation

Solid Capital Base

Ability to Attract and Retain the Best Talents

Being independent enables differentiated HR policies to

generate motivation

Streamlined and informal structure makes for versatility and

responsiveness

Broad range of products

Focus on creating value for shareholders

Summary of Structure and Market Position

76

Challenge overcome

Minimal loss of staff

Readily accepted by clients

Principal Challenge: Integration

Lacks the inertia of retail results

Builds its results anew each quarter

Ability to adapt to circumstances

Competitive in all market segments

Wholesale Bank

Challenges and Opportunities

77

Improvement in credit quality Lower losses and provisions

Higher volumes

Increase in Capital Markets operations

Compensating Factors

Falling spreads

Lower volatility reduces Treasury gains

Falling interest rates

Adverse Factors


78

Maintain the high return on equity

Responsibilities

To fully exploit the potential for cross-selling

To multiply volumes and processing capacity

To apply creativity to undifferentiated products

Capital Market and M&A Well positioned to grow with the market

Well developed structure for origination and distribution of securities

Opportunities


79

The consolidated balance sheets have been translated into US dollars (US$), to facilitate the understanding by foreign readers, for the prevailing exchange rate provided by Brazilian Central Bank´s as of June 30, 2003 (R 2.872/US$ 1). This translation should not be interpreted, at any time, as the ammounts in Reais converted into US$ dollars.Tre transition of the corporate finance operations of Banco Itaú S.A. (“Itaú”) to Banco Itaú-BBA S.A. (“Itaú-BBA) is currently being undertaken. Assets booked with corporate sector clients are still on the books both itaú and Itaú-BBA. The assets booked at Itaú will be transfered to Itaú-BBA over the coming months. In July 2003, Fináustria (car finance) and BBA Investimentos (asset management) were sold to Itaú.

US$ Million

Itaú-BBA

5,680

8,881

3,447

10,954

2,531

545

4,103

294

751

Cash + Liquidity

Securities

Interbank Relations

Net Credit Operations

Foreign Exchange

Other Receivables

Others

Investments

Permanent Assets

Balance Sheet

977

1,424

61

2,557

238

11

297

24

10

Itaú

5,680

8,881

3,447

10,954

2,531

548

4,099

294

751

Itaú Holding

AssetsItaú-BBA

12,126

4,090

1,771

1,865

4,377

1,876

7,000

330

3,751

Deposits

Open Market and others

Accept./Issue - Securities

Foreign Exchange

Borrowings/On-Lending

Tech. Prov Ins/Cap/Pens.

Other Liabilities

Minority Interest

Stockholders` Equity

1,889

177

647

124

1,412

-

672

22

656

Itaú

12,140

4,090

1,771

1,865

4,377

1,876

7,000

330

3,736

Itaú Holding

Liabilities

Total Liabilities 5,599 37,185 37,186Total Assets 5,599 37,185 37,186

80

The consolidated balance sheets have been translated into US dollars (US$), to facilitate the understanding by foreign readers, for the prevailing exchange rate provided by Brazilian Central Bank´s as of June 30, 2003 (R 2.872/US$ 1). This translation should not be interpreted, at any time, as the ammounts in Reais converted into US$ dollars.Tre transition of the corporate finance operations of Banco Itaú S.A. (“Itaú”) to Banco Itaú-BBA S.A. (“Itaú-BBA) is currently being undertaken. Assets booked with corporate sector clients are still on the books both itaú and Itaú-BBA. The assets booked at Itaú will be transfered to Itaú-BBA over the coming months. In July 2003, Fináustria (car finance) and BBA Investimentos (asset management) were sold to Itaú.

US$ Million

Itaú-BBA

2,929

(565)

(1,238)

1,126

1,087

(351)

(191)

(61)

35

519

Operating Margin

Operating Expenses


Net Operating Income

Income before tax and participations

Income Tax and Social Contribution


Profit Sharing

Minority Interest

Net Income

Income Statement

270

(60)

(51)

159

156

(83)

-

(14)

0.3

59

Itaú

2,922

(566)

(1,237)

1,119

1,080

(352)

(190)

(60)

35

512

Itaú Holding

1st Semester 2003

81

Pro-Forma Balance Sheet

The operations of Itaucorp were incorporated on a preliminary basis in order to demonstrate approximately what Banco Itaú-BBA will be after all the migrations between segments have terminated. There are still adjustments to be made.Forecasts based on this exercise should therefore bear in mind the already mentioned risks and uncertainties as well as those that are beyond the control of the companies comprising the Itaú conglomerate (political and economic change, volatility in interest and exchange rates, technological change, inflation, financial disintermediation, competitive pressures on products and prices and changes in tax law).

R$ Million

LIABILITIESBanco Itaú-BBA

Pro FormaDeposits

Open market liabilities

Loan liabilities

Pass-through loan liabilities

Other liabilities

Deferred income

Capital

Balance Sheet at June 30 2003 ASSETS Banco Itaú-BBA

Pro Forma Cash, Interbank placements and securities

Loans

Bad Debt Provision

Other Assets

Fixed Assets

TOTAL ASSETS

9,290

17,637

(574)

1,428

9527,876

15,565

2,368

2,848

1,204

2,248

13

3,630 TOTAL LIABILITIES 27,876

82

The operations of Itaucorp were incorporated on a preliminary basis in order to demonstrate approximately what Banco Itaú-BB A will be after all the migrations between segments have terminated. There are still adjustments to be made.Forecasts based on this exercise should therefore bear in mind the already mentioned risks and uncertainties as well as those that are beyond the control of the companies comprising the Itaú conglomerate (political and economic change, volatility in interest and exchange rates, technological change, inflation, financial disintermediation, competitive pressure on products and prices and changes in tax law).

R$ Million

INCOME STATEMENT 1st Half of 2003Banco Itaú-BBA

Pro Forma

1,252

(174)

1,078

120

(276)

922

(415)

507

3,630

29.9%

Financial margin

Bad debt provision

Gross income from Financial Intermediation

Fee income


Income before tax and participations

Income Tax and Social Contribution

Net Income

Net Worth

ROE (%)

Pro-Forma Income Statement

83

Results

Agenda

Stock Market



Earnings per Share


Itaú BBA

84


Specialization

Mass technology

Reaching a biggerbase of clients

Volume

Specialization

Differentiated Structure

New Products

SofisticationTimingVolume

Keep the ProfitabilityFocus on Segmentation

CorporateMiddle Market and

Retail

Segmentation

Cross SellingCross Selling

85

2002

Export

Import

Financial

Total

Interbank

Total

Foreign Exchange Arbritage

3,223

3,533

6,758

13,514

16,609

30,123

512 (*)

1st Half 2003

1,683

1,712

4,492

7,887

19,035

26,922

602

US$ Million

Volume of Foreign Exchange Contracts

(*) 1st half 2002

Itaú + BBA

86Total Amount (U$ Million) = 815,00

Banco ItaúBanco ItaúAmount

USDMillion

MaturityOriginal

tenor(month)

CouponSpread Over

UST (bps)Lead Manager

150.00

50.00

150.00

65.00

200.00

615.00

16-jul-03

16-jul-03

13-may-03

06-feb-03

10-jan-03

62.0

8.0

18.0

6.0

11.0

1.170%

5.000%

6.000%

6.250%

362

353

498

NOMURA / L+0.63% / AAA / Securit. / Av.Life:3.87YR

NOMURA / Aaa / A1+ / F1+ / Securit. / Av.Life:0.42YR

STD BANK / ITAU BANK / BIE

ITAU / BNPPAR Lux-Euro

ITAU BANK

Banco Itaú-BBABanco Itaú-BBAAmount

USDMillion

Maturity

Original

tenor(month)

Coupon

Spread Over

UST (bps)Lead Manager

100.00

100.00

200.00

17-jul-03

16-apr-03

24.0

12.0

4.750%

5.250%

335

413

ITAU BANK / STD BANK / with US$ Constraint / Regs Only

ITAU BANK / BIE / With US$ Constraint / Regs Only

Intl Debt Capital Market Issues - 2003 (YTD)

SUB TOTAL

SUB TOTAL

87

Inlt Debt Capital Market Issues – 2002Banco Itaú S.A.: Largest Brazilian Bank Issuer in 2002Banco Itaú S.A.: Largest Brazilian Bank Issuer in 2002

Total Amount (U$ Million) = 900,00

Banco ItaúBanco Itaú

AmountUSD

MillionMaturity

Originaltenor

(month)Coupon

Spread OverUST (bps)

Lead Manager

150.00

150.00

100.00

250.00

100.00

750.00

19-dec-02

12-jul-02

05-apr-02

20-mar-02

05-feb-02

6.0

44.0

36.0

60.0

24.0

6.250%

1.890%

6.750%

2.980%

6.000%

503

260

260

298

ITAU BANK

BAS - Sole

Dresdner

BAS / Sole

BNPPAR

Banco Itaú-BBABanco Itaú-BBA

AmountUSD

MillionMaturity

Originaltenor

(month)

Coupon

Spread OverUST (bps)

Lead Manager

50.00

50.00

50.00

150.00

28-jun-12

12-apr-05

27-feb-04

121.0

36.0

24.0

10.375%

7.500%

6.750%

695

399

378

ML-Sole

WESTLB

BNPPAR

SUB TOTAL

SUB TOTAL

88

Securities

0

50

100

150

200

250

300

350

400

450

500

0 1 2 3 4 5 6

Duration

Sp

read

89

879

3,639 4,046 3,8291,231

2,9283,590 3,318

2000 2001 2002 2003 till06/30/2003

Sells Buys

2,110

6,657

7,6367,147

Itaú DesksSecondary Trading History bet. 2000 & 2003Secondary Trading History bet. 2000 & 2003

U$ Million

Itaú desks: São Paulo, Broker Dealer (NYC), Banco Itau Europa (London)

Itaú: 11.24% of the turn over of Brazilian Corporate Issues (non-sovereign) for the first half of 2003.

(Source: EMTA – Emerging Markets Trading Association)

90

Foreign Trade Finance Market in Brazil

Ranking by Assets including Proex and BNDES Exim

TOP 5 BANKS Position In USD

1

2

3

4

5

3.8 Bi

3.0 Bi

2.92 Bi

2.91 Bi

2.7 Bi

Banco do Brasil

Banco Itaú / Itaú-BBA

Bradesco / BBV

ABN Amro Real

BankBoston

Itaú + Itaú-BBA data in the foreing trade finance market in Brazil

Number of Correspondents Banks: 120

Trade Facilities: USD 2.4 Bi

Total Facilities (Trade + Clean + Multilateral Finance): USD 2.7 Bi

91

Country Distribuition of Total Facilities

Spain – 4.7% Switzerland – 1.7%

United Kingdom – 6.2%

USA – 39.4%Scandinavian – 2.0%Portugal – 3.1%

Japan/Australia – 4.0%

Netherland – 7.5%

Latin America – 9.1%

Italy – 0.7%

Norway/Denmark – 0.5%

Middle East – 0.4%

Germany – 11.1%

France – 5.0%Canada – 4.0%

Austria – 0.4%

92


September, 2003

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