8th Annual Latin America Conference

London, September 12-13, 2005

Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

2

Agenda

Brazilian Economy

Brazilian Banking System

Highlights

Strategy and In-depth Results

Performance of the Shares

3

Brazilian Macroeconomic Scenario

Floating exchange rate and outstanding adjustment in external

accounts

Monetary policy: inflation expectation and growth

Fiscal policy: accomplishment of fiscal targets, even without IMF

surveillance

Credit expansion: public sector crowding out

Baseline scenario

Brazil: towards investment grade

4

Recent overvaluation of the real

Aug-05 2.3

1.01.52.02.53.03.54.04.55.05.56.06.57.0

Ja

n-8

4

Ja

n-8

5

Ja

n-8

6

Ja

n-8

7

Ja

n-8

8

Ja

n-8

9

Ja

n-9

0

Ja

n-9

1

Ja

n-9

2

Ja

n-9

3

Ja

n-9

4

Ja

n-9

5

Ja

n-9

6

Ja

n-9

7

Ja

n-9

8

Ja

n-9

9

Ja

n-0

0

Ja

n-0

1

Ja

n-0

2

Ja

n-0

3

Ja

n-0

4

Ja

n-0

5

Effective basket 92-93 average R$/US$ Euro

Collor-ItamarPeriod

Pegged currency

Floating exchange rate

Plano Real

3.2

Real exchange rate

5

Trade surplus continues to widen

Trade surplus – accumulated in 12-months

US$ billion

Source: Central Bank of Brazil

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

105

110

Jan-

03

Mar

-03

May

-03

Jul-03

Sep-

03

Nov

-03

Jan-

04

Mar

-04

May

-04

Jul-04

Sep-

04

Nov

-04

Jan-

05

Mar

-05

May

-05

Jul-05

681012141618202224262830323436384042

Exports Imports Balance

6

Inflation target

Source: IBGE

CPI inflation and core inflation (% y-o-y)

0

2

4

6

8

10

12

14

16

18D

ec-

98

Mar-

99

Jun-9

9

Sep-9

9

Dec-

99

Mar-

00

Jun-0

0

Sep-0

0

Dec-

00

Mar-

01

Jun-0

1

Sep-0

1

Dec-

01

Mar-

02

Jun-0

2

Sep-0

2

Dec-

02

Mar-

03

Jun-0

3

Sep-0

3

Dec-

03

Mar-

04

Jun-0

4

Sep-0

4

Dec-

04

Mar-

05

Jun-0

5

Sep-0

5

Dec-

05 0

2

4

6

8

10

12

14

16

18

Headline CPI Core Inflation target Upper limit

7

Inflationary expectations converging back toward the target

Median of market expectations for IPCA (%)

Source: Focus Survey/Central Bank of Brazil

5.5

5.0

4.4

4.5

4.6

4.7

4.8

4.9

5.0

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

6.0

6.1

6.2

6.3

6.4

6.5

Ap

r/04

May

/04

Jun

/04

Jul/0

4

Au

g/0

4

Sep

/04

Oct

/04

No

v/04

Dec

/04

Jan

/05

Feb

/05

Mar

/05

Ap

r/05

May

/05

Jun

/05

Jul/0

5

Au

g/0

5

2005

2006

8

Growth resumption and recent convergencetowards potential growth

2.4%

1.1%

0.1%

-0.5%

1.9%

4.2% 4.0%

2.5%

0.2%0.7%

2.5%

1.4%1.2%

4.9%4.6%

-1%

0%

1%

2%

3%

4%

5%

19

98

.I

19

98

.III

19

99

.I

19

99

.III

20

00

.I

20

00

.III

20

01

.I

20

01

.III

20

02

.I

20

02

.III

20

03

.I

20

03

.III

20

04

.I

20

04

.III

20

05

.I

15

16

17

18

19

20

21

1997.I

V

1998.I

I

1998.I

V

1999.I

I

1999.I

V

2000.I

I

2000.I

V

2001.I

I

2001.I

V

2002.I

I

2002.I

V

2003.I

I

2003.I

V

2004.I

I

2004.I

V

2005.I

I

2005.I

V

GDPGrowth accumulated in 4 quarters

Fixed Investment/GDP (%) -Prices as of the previous year average 2005:

19.4%

average 2004: 18.8%

Source:IBGE and Banco Itaú´s projection

9

Primary surplus since 1998

Fiscal policy stance

Source: Central Bank of Brazil

-2.77%

-7.85%

5.08%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Dec-9

8

Ap

r-9

9

Au

g-9

9

Dec-9

9

Ap

r-0

0

Au

g-0

0

Dec-0

0

Ap

r-0

1

Au

g-0

1

Dec-0

1

Ap

r-0

2

Au

g-0

2

Dec-0

2

Ap

r-0

3

Au

g-0

3

Dec-0

3

Ap

r-0

4

Au

g-0

4

Dec-0

4

Ap

r-0

5

Nominal Defict Interest Payments Primary Surplus

jun-05

10

Increase in the private investment/GDP (%)

Source: Central Bank of Brazil

Total Credit and Public Sector Debt

20

25

30

35

40

45

50

55

60

65

Jul-9

4

No

v-9

4

Ma

r-9

5

Jul-9

5

No

v-9

5

Ma

r-9

6

Jul-9

6

No

v-9

6

Ma

r-9

7

Jul-9

7

No

v-9

7

Ma

r-9

8

Jul-9

8

No

v-9

8

Ma

r-9

9

Jul-9

9

No

v-9

9

Ma

r-0

0

Jul-0

0

No

v-0

0

Ma

r-0

1

Jul-0

1

No

v-0

1

Ma

r-0

2

Jul-0

2

No

v-0

2

Ma

r-0

3

Jul-0

3

No

v-0

3

Ma

r-0

4

Jul-0

4

No

v-0

4

Ma

r-0

5

% GDP

20

22

24

26

28

30

32

34

36

38

40

% GDP

Net public debt Total credit

Jun/05

11

Baseline scenario 2005-2006

Hypothesis:

Exchange rate: remains constant in real terms, taking into account the

difference between Brazil’s CPI (IPCA) inflation and US PPI inflation

Inflation expectations: 5.55% in 2005, 5.0% in 2006 and 4.5% in 2007

(Focus Survey on July 29, 2005)

Interest rate path: compatible with limiting aggregate demand acceleration

in order to bring inflation back to the target path

Primary budget surplus: constant at 4.25% of GDP

GDP linear growth trend: 3.0% in 2005 and 3.5% in 2006 and 2007

12

Investment grade

• The external indicators project the possibility of Brazil reaching an

investment grade rating in 2007

(D/X = external debt/current account receipts equal to 1)

• Fiscal indicators lag behind, but by 2007 there is a chance that debt

as % of GDP be in clear declining trend, qualifying Brazil to that rating

US$ billion 2003 2004 2005 2006 2007 2008 2009 2010

Primary surplus (% GDP) 4.38% 4.60% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25%

Public debt / GDP 57.2% 51.8% 52.3% 53.8% 51.8% 48.9% 46.7% 44.7%

Current account 4.0 11.6 15.6 6.5 6.2 8.8 11.7 14.8

Total external debt (with inter cia) 235.4 221.3 203.4 176.9 151.4 131.5 108.7 82.9

Gross Reserves 49.3 52.3 60.5 52.1 44.0 44.0 44.0 44.0

Real GDP growth 0.5% 4.9% 3.1% 2.3% 4.1% 3.6% 2.9% 3.0%

D/X Moody's 2.62 1.91 1.50 1.25 1.06 0.90 0.71 0.52

13

Agenda

Brazilian Economy

Brazilian Banking System

Highlights

Strategy and In-depth Results

Performance of the Shares

14

Brazilian Banking System

Macro Characteristics Micro Scenario

Huge fixed costs Cost reduction / efficiency Strongly capitalized Room for growth in credit Satisfactory level of provisioning Conservative approach

Advanced risk management Advanced banking supervision; preparation for Basel II

Importance of banking service fees Specific for each segment

Profitable Target: to keep profitability in lower margins scenario

Oriented to services Intensive use of technology, focused

on self-service and Internet All bills are paid in the banks

Huge transaction volumes

High spreads Falling due to decline in interest rates

Dimension Differentiated needs

High reserve requirements High impact over spreads

15

Declining Interest Rates x Increasing Loan Demand: New Revenue Dynamics

Growing Fee Earnings and Tighter Cost Control To Offset Lower Treasury Gains

Focus on Higher-Yielding Consumer Finance and SME Lending

Efforts of Client Acquisition and Gains of Scale

Government Still Attracts Large Portions of the System’s Liquidity; Gradual Replacement of Bonds By Loans

Public Sector Banks Still Dominant: 45% of Deposits

More Aggressive Competition, Not Price Wars

Current Scenario

16

1. Citigroup2. JP Morgan Chase3. HSBC Holdings4. Bank of America Corp.5. Crédit Agricole Groupe6. Royal Bank of Scotland7. Mitsubishi Tokyo8. Mizuho Financial Group9. HBOS10. BNP Paribas19. UBS93. State Bank of India94. Banco Itaú95. Erste Bank107. Bradesco133. Banco do Brasil167. Unibanco

December 2004

Assets

1,4841,1571,2771,1101,2431,119

9801,296

7601,2341,533

14449

190708030

US$Billion

2nd

7th

4th

10th

5th

9th

12th

3rd

19th

6th

1st

84th

187th

69th

143rd

131st

251st

Rank

BIS

11.9 %12.2 %12.0 %11.6 %10.4 %11.7 %11.8 %11.9 %11.8 %10.3 %13.6 %13.1 %

20.6 %10.7 %18.8 %13.7 %16.3 %

Index

7469676463444039373627666643

SE(1)

US$ Billion

ROA

%

303rd

745th

373rd

229th

603rd

458th

695th

675th

465th

606th

700th

407th

18th

647th

219th

200th

125th

Rank (*)

Source: The Banker Top 1000 - July/05 (1) Stockholders’ Equity (Tier One Capital)

1.63 %0.54 %1.38 %1.91 %0.84 %1.19 %0.62 %0.68 %1.17 %0.84 %0.62 %1.31 %

5.66 %0.76 %1.96 %2.1 %2.5 %

The Banker Top 1000

17

Capital (Tier One) / Assets (%)

9,2%

14,2%

12,3%11,4%11,7%

9,1%9,9%

9,1%10,2%

12,0%11,9%11,1%

9,1%7,8% 8,2%

4,3% 4,4% 4,5% 4,7% 4,7% 4,6% 4,6% 4,5% 4,7% 4,9% 4,7% 4,6% 4,5% 4,5% 4,5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Brazilian Banks 1,000 Largest Banks in the World

Source: THE BANKER - Top 1000 – July 2005

18

Agenda

Brazilian Economy

Brazilian Banking System

Highlights

Strategy and In-depth Results

Performance of the Shares

19

69,681,8

122,8144,5

130,3118,8111,1

2000 2001 2002 2003 2004 1stH/04

1stH/05

27,334,3

45,4 44,653,3

48,758,6

2000 2001 2002 2003 2004 1stH/04

1stH/05

6,6 7,69,0

11,914,0

12,815,0

2000 2001 2002 2003 2004 1stH/04

1stH/05

+17.7% +17.2%

+20.3%

Highlights

Assets (R$ Billion)

Credit Operations (R$ Billion)

Stockholders’ Equity (R$ Billion)

Net Income (R$ Million)

1.841

3.776

1.825

2.475

3.152

2.3772.389

2000 2001 2002 2003 2004 1stH/04

1stH/05

+35.6%

20

6.2914.871

10.2209.224

7.2505.892

4.541

2000 2001 2002 2003 2004 1stH/04

1stH/05

1.841

3.776

1.825

2.475

3.152

2.3772.389

2000 2001 2002 2003 2004 1stH/04

1stH/05

7.056

8.770

4.9444.361

9.0148.425

5.996

2000 2001 2002 2003 2004 1stH/04

1stH/05

3.6994.277

6.165

2.8583.6463.465

5.121

2000 2001 2002 2003 2004 1stH/04

1stH/05

+35.6% +27.6%

+13.4% +29.2%

Highlights

Net Income (R$ Million)

Non-interest Expenses (R$ Million)

Banking Service Fees (R$ Million)

Net Interest Margin (R$ Million)

21

27,7%31,5%

26,3% 26,5% 27,0%30,6%

35,6%

2000 2001 2002 2003 2004 1stH/04

1stH/05

2,6%2,9%

2,1%

2,7% 2,9% 3,0%3,5%

2000 2001 2002 2003 2004 1stH/04

1stH/05

14,4%16,9%

18,4%19,8% 20,6% 19,5% 18,3%

2000 2001 2002 2003 2004 1stH/04

1stH/05

67,2%62,1% 58,2% 54,5% 52,4% 56,5%

50,3%

2000 2001 2002 2003 2004 1stH/04

1stH/05

Obs: Annualized quarterly indexes.

Highlights

ROE (%)

ROA (%)

BIS Ratio (%)

Efficiency Ratio (%)

22

3.0663.0743.0733.1723.1923.1842.995

2000 2001 2002 2003 2004 1stH/04

1stH/05

3.9163.4323.624

3.1572.598

1.9981.427

2000 2001 2002 2003 2004 1stH/04

1stH/05

21.35820.36220.02121.150

17.926

13.77712.064

2000 2001 2002 2003 2004 1stH/04

1stH/05

42.450 45.31642.206

45,60243.21545.40947.524

2000 2001 2002 2003 2004 1stH/04

1stH/05

(*) Without Credicard and FIC employees.

Highlights

Branches+CSBs

Internet Banking Clients (In million)

ATMs

Employees

(*)

23

Agenda

Brazilian Economy

Brazilian Banking System

Highlights

Strategy and In-depth Results

Performance of the Shares

24

Highlights

3. Additional Provisions: Maintenance of Exceeding Provision for Loan Losses of R$ 1,150 million; Maintenance of Additional Provision for Securities Portfolio of R$ 400 million;

1. Results: 2nd Q/05: Net Income of R$ 1,333 million with an increase of 16.8% q-o-q; ROE

annualized of 40.5%; 1st Sem/05: Net Income of R$ 2,475 million with an increase of 35.6% compared

with 1st Sem/04; ROE annualized of 35.6%;

4. Delinquency: Nonperforming Loans Ratio in 3.0%;

2. Growth of Credit Portfolio of 2.9% in the quarter and 10.1% in the semester: Personal Credit: Quarter: 9.6%; Semester 33.9% Vehicles: Quarter: 12.8%; Semester 32.4%

5. Solvency Ratio: Maintenance of the high ratio of 18.3%, even after buyback of preferred shares

PN totaling R$ 559 million on the quarter.

25

Itaú

CorporationItaucredItaú BBAItaubanco

Segmentation

26

Itaú

ItaucredItaú BBAItaubanco

Banking

Credit Cards

Insurance, Pens. Plans

and Capitalization

Resources Managed

Segmentation

Corporation

27

Exposure – Loans and Securities

(*) Rural and Mortgage Loans – Loans linked to the availability of Demand deposits and Savings deposits.

Jun 30, 05 Mar 31, 05 Dec 31, 04Var Jun05

-Mar05Var Jun05

-Dec04

Individuals 22,836 20,770 18,271 9.9% 25.0%

• Vehicles 8,200 7,270 6,196 12.8% 32.4%

• Credit Card 5,359 5,033 5,150 6.5% 4.1%

• Personal Loans 9,276 8,467 6,926 9.6% 33.9%

Business 31,561 31,891 30,467 -1.0% 3.6%

• Small businesses and middle market 9,616 9,037 8,571 6.4% 12.2%

• Corporate 21,944 22,854 21,896 -4.0% 0.2%

Restricted Loans (*) 4,251 4,351 4,536 -2.3% -6.3%

Total - Loan Portfolio 58,647 57,012 53,275 2.9% 10.1%

Public Securities - Domestic 7,321 7,218 7,486 1.4% -2.2%

Private Securities 10,668 11,660 12,145 -8.5% -12.2%

Total - Securities 17,989 18,878 19,631 -4.7% -8.4%

Total 76,636 75,890 72,906 1.0% 5.1%

28

16.890

47.40752.348

19.596

27.253

34.282

44.581

53.275

58.647

38.419 38.659

29.615

23.674

14.058

16.077

45.414

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

1998 1999 2000 2001 2002 2003 2004 2005(*)

Credit Operations Credit Operations including Endorsements and Sureties

CAGR: 22.0%

CAGR: 22.4%

R$ Million

Credit Portfolio

(*) On June 30, 2005.

29

Change in the mix of the Credit Portfolio

9

34

16

41

2004

Restricted Loans

Individuals

Small and Medium-sized companies

Corporate Loans

In %

9

29

11

51

2003

40%

7

39

16

37

Jun/2005

55%

30

We are not expecting an ongoing improvement in these indicators, because of the focus on credit products with higher margins, but, at the same time, with a higher credit risk.

Nonperforming Loans Ratio and Coverage Ratio

Nonperforming Loans Ratio (%)

3,02,92,93,2

3,5

6,5

6,0

5,25,6 5,6

1,81,5

0,9 0,81,1

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

jun/04 set/04 dez/04 mar/05 jun/05

Nonperforming Loans Ratio – GlobalNonperforming Loans Ratio – IndividualsNonperforming Loans Ratio – Companies

Coverage Ratio (*)

203%221%220%210%204%

0%

50%

100%

150%

200%

250%

jun/04 set/04 dez/04 mar/05 jun/05

31

SecuritiesAdjust. market value

Additional Provision

Total

(*) Values differ from the one published in note “Market Value” because they are net of the additional provision for securities.

Additional Provision for Loan Losses (PDD)

Financial Instruments: Market vs. Recorded Value(*)

Conservative Accounting Practices

R$ 491 million

R$ 400 million

R$ 3.6 billion

Jun. 30, 2005

R$ 1.15 billion

R$ 1.60 billion

R$ 733 million

R$ 400 million

R$ 3.8 billion

Dec. 31, 2004

R$ 1.0 bilhão

R$ 1.67 bilhão

R$ 510 million

R$ 600 million

R$ 3.8 billion

Jun. 30, 2004

R$ 1.0 bilhão

R$ 1.66 billion

32

Service Fees

(1) Mutual Funds and Consortium.

2nd Q/05 1st Q/05Var 2ndQ/05

-1stQ/051st Sem/05 1st Sem/04

Var 1stS/05

-1stS/04

Resources Management (1) 415 398 17 813 678 135

Current Account Services 355 349 6 703 601 102

Credit Cards 459 437 22 895 509 386

Credit Operations and Guarantees Provided 297 271 26 568 415 153

Collection Services 193 209 (16) 402 385 17

Other 134 131 2 265 270 (5)

Total 1,852 1,794 58 3,646 2,858 788

R$ Million

33

Financial Instruments – Market Value

(1) Tax effects not considered.(2) Includes unrealized minority interest gains in Equity of R$ 336 millions in March/05.

06/30/05 03/31/05 06/30/04Stockholder´s

EquityStockholder´s

EquityStockholder´s

Equity

Interbank Deposits 11 4 3

Securities and Derivatives 575 555 663

Credit Operations 195 216 276

Investment on BPI 649 765 672

Time and Interbank Deposits and Funds from acceptance and issuance of securities abroad

8 9 80

Securitization of Payment Orders Abroad 129 91 129

Subordinated Debt and Treasury Shares 425 506 441

Total Unrealized 1,991 2,147 2,265

Unrealized Income / (Loss) (1) (2)

R$ Million

34

Highlights of Pro Forma Segments

(*) Including Endorsements and Sureties.

R$ Million

Note: The Consolidated figures do not represent the sum of the parts because certain intercompany transactions were eliminated only at the Consolidated level.

Itaubanco Itaú BBA Itaucred Corporation Itaú

Net Income 695 323 230 85 1,333

Tier I Allocated Capital 7,422 3,554 1,309 2,741 15,027

ROE Annualized (%) 43.1% 41.6% 90.9% 13.0% 40.5%

Loan Portfolio (*) 25,351 21,306 11,990 - 58,647

Total Assets 117,397 38,677 11,713 5,781 144,545

Net Income 766 255 123 0 1,141

Tier I Allocated Capital 7,588 3,235 1,106 2,699 14,629

ROE Annualized (%) 46.9% 35.4% 51.4% 0.0% 35.1%

Loan Portfolio (*) 23,922 22,478 10,612 - 57,012

Total Assets 119,595 40,919 10,275 5,358 146,403

2nd Quarter/05 and Jun/05

1st Quarter/05 and Mar/05

35

Consolidated Net Income

2nd Q/05

56,6%

6,3%

20,6%

16,5%

Itaubanco - BankingCredit Cards - Accounting HoldersInsurance, Pension Plans and CapitalizationMutual Funds and Managed Portfolio

Diversification of Income sourcesNot dependent only on interest rates

R$ Million

2nd Q/05 1st Q/05Var 2ndQ/05

-1stQ/05

Itaubanco - Banking 399 465 (66)

• Banking Operations 314 276 39

• Treasury (32) 87 (119)

• Management of Foreign Exchange Risk from Investments Abroad - net of tax effects

117 103 14

Credit Cards - Accounting Holders 113 110 3

Insurence, Pension and Capitalization 141 132 9 Portfolio under management and Mutual Funds

43 59 (16)

Total 695 766 (70)

1st Sem/05 1st Sem/04Var 1stS/05

-1stS/04

Itaubanco - Banking 864 730 134

• Banking Operations 590 254 336

• Treasury 54 285 (231)

• Management of Foreign Exchange Risk from Investments Abroad - net of tax effects

220 190 29

Credit Cards - Accounting Holders 223 98 125

Insurence, Pension and Capitalization 272 230 42 Portfolio under management and Mutual Funds

101 57 45

Total 1,461 1,114 347

36

Credit Cards

R$ Million (Except where indicated)

2nd Q/05 1st Q/05Var 2ndQ/05

-1stQ/051st Sem/05 1st Sem/04

Var 1stS/05

-1stS/04

Managerial Financial Margin 234 209 26 443 322 121

Result from Loan Losses (50) (38) (12) (88) (21) (67)

Service Fees 360 339 21 698 326 373

Non-Interest Expenses (336) (318) (19) (654) (421) (233)

Net Income 113 110 3 223 98 125

Tier I Allocated Capital 505 457 48 505 403 102

ROE Annualized (%) 124.5% 137.1% 107.9% 54.4%

Quantity of Credit Cards (thousands) 7,970 7,518 452 7,970 6,261 1,709

Revenues 3,986 3,636 350 3,986 2,996 990

37

Insurance, Pension Plans and Capitalization

R$ Million

2nd Q/05 1st Q/05Var 2ndQ/05

-1stQ/051st Sem/05 1st Sem/04

Var 1stS/05

-1stS/04

Earned Premiums 535 529 6 1,064 943 121

Results of Pension Plans and Capitalization 59 55 3 114 119 (5)

Retained Claims (314) (295) (19) (609) (538) (71)

Selling Expenses (108) (108) 0 (216) (192) (24)

Financial Result 135 123 12 258 235 23

Non-Interest Expenses (143) (145) 2 (288) (316) 28

Net Income 141 132 9 272 230 42

Combined Ratio (%) 94.6% 90.9% 1.6% 94.6% 94.2% 0.4%

Claim Ratio (%) 54.4% 51.2% 3.2% 54.4% 51.0% 3.4%

Tier I Allocated Capital 1,431 1,291 140 1,431 1,251 180

ROE Annualized (%) 45.5% 47.5% 41.7% 40.2%

38

Assets under Management andTechnical Provisions

9,311,6

12,5

jun/04 mar/05 dez/05

89,6

105,2 105,8

jun/04 mar/05 jun/05

Growth of 18.1% in the volume of Funds and Portfolios under Management and 34.4% in the volume of Technical Provisions in relation to Jun/2004

R$ Billion

Technical Provisions of Insurance, Pension Plans and Capitalization

Volume of Mutual Funds and Portfolios under Management

39

Itaú

CorporationItaucredItaú BBAItaubanco

Corporate Operation

Segmentation

40

Itaú BBA Pro Forma

R$ Million

2nd Q/05 1st Q/05Var 2ndQ/05

-1stQ/051st Sem/05 1st Sem/04

Var 1stS/05

-1stS/04

Managerial Financial Margin 503 345 158 848 566 281

• Banking Operations 255 193 61 448 448 (0)

• Treasury 199 108 91 307 48 259

• Management of Foreign Exchange Risk from Investments Abroad - net of tax

49 43 6 93 70 23

Result from Loan Losses 28 67 (39) 96 163 (67)

Service Fees 96 79 17 175 139 36

Non-Interest Expenses (176) (130) (46) (306) (295) (11)

Net Income 323 255 69 578 391 187

Tier I Allocated Capital 3,554 3,235 319 3,554 2,969 586

ROE Annualized (%) 41.6% 35.4% 35.2% 28.1%

41

Strategy – Corporate Segment

Itaú BBA: wholesale bank integrated into a financial conglomerate; Business environment: declining spreads, increasing competition and limited client

base; Goal: maintain current profitability levels going forward despite expected lower

margins in credit; How: offset lower credit spread gains by increasing non-credit related revenues,

currently representing already 51% of all client-related revenues(*), through: Cross-selling – explore further synergies with Itaú by broadening the offering of

treasury products (hedging, swaps, structured, etc.) and day-to-day cash products (payroll, collections, etc.);

Investment banking – leverage our leading position in fixed income to build a broader investment banking platform in equities and M&A. Itaú BBA is uniquely positioned to reap the benefits of an anticipated significant expansion in capital markets, fueled by expected lower interest rates and the potential future upgrade of Brazil to investment grade status. Investment Banking currently accounts for 5% of Itaú BBA client-related revenues(*). Our goal, 5 years out, is to increase its share to 15% to 20% of such revenues.

(*) Client-related revenues include only revenues derived from operations carried out directly with our clients, thus not including revenues arisen from treasury transactions and own capital remuneration.

42

Itaú

CorporationItaucredItaú BBAItaubanco

FIC50% CBD50% Itaú

FAI50% LASA50% Itaú

Own stores

100% Itaú

Payroll Credit

FináustriaItaucred VehiclesBanco FiatIntercap

Vehicle Credit Cardsnon customers 50% Credicard

Credit for Individuals

43

Taií

New Brand Name (Itaú-based).

Focus on lower income

consumers.

Proprietary platform.

Uses the Itaú ATM network.

Diversifies credit-related

revenues.

Responsive and efficient.

Expansion of Focus on

direct consumer credit

Long term partnership: 20

years, and renewal option

Operating Management under the responsibility of Itaú

Exclusivity in exploitation

of financial products and

services to retailers’

customers

Retail partnershipsCBD and LASA

Credit for Individuals

44

Estimated Expansion

2004

CSBs 752

FIC (CBD) +265

FAI (LASA) * +180

Physical DistributionEstimated

YE 2005Branches 2,108 + 116

Personnalité Branches 82 +12

ATMs 20,923

29 +121Taií Stores

Total +694

* Total Stores

Jun/05

776

2,111

87

21,358

79

84

-

+163

•Investment expected for 2005: R$ 48.3 million

•+5,000 employees – basically, sales promoters

In the next two years, operations Taií, FIC-CBD,

FAI-LASA and Credicard are expected to

aggregate 6 million customers to Itaú´s base.

45

3.3 millionOwn Credit Cards (Private Label)

Currently

FIC (CBD)

FAI (LASA) 186 thousand

480 thousandCredit Cards

FIC (CBD)

FAI (LASA) -

-Personal Loan Contracts

FIC (CBD)

FAI (LASA) 137 thousand

580 thousandConsumer Credit Contracts

FIC (CBD)

FAI (LASA) 32 thousand

4.7 millionTotal

In Quantities

Financial Products

(*) Quantities above refer to the most recent data available at the time of the association start-up: for FAI (LASA), data refer to September 2004 and for FIC (CBD), March 2004.

46

5.780 5.951 6.261 6.639 7.085 7.518 7.970

2.245 2.308 2.413 2.4383.596 3.646

3.833

dez/03 mar/04 jun/04 set/04 dez/04 mar/05 jun/05

Itaucard Credicard

8,026 8,259 8,674 9,077

10,680

In Thousand

Market Share: 21.3%

Leader in Brazil

Credit Card Base

Increase in Participation on Credicard

11,06611,802

47

Agenda

Brazilian Economy

Brazilian Banking System

Highlights

Strategy and In-depth Results

Performance of the Shares

48

1,00 1,243,03 2,90

5,11 5,467,24 7,45

9,7212,11

4,446,20

4,956,04

7,46

15,85

21,41 21,36

27,66

33,33

16,13

22,00

0,983,26 2,88

15,99

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

20,00

22,00

24,00

26,00

28,00

30,00

32,00

34,00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1stH/04 1stH/05

Evolution of Earnings per Share andDividends per Share (*)

CAGR = 28.6%

R$

(*) Before 2004 per lot of thousand shares and after 2004 per share, since in 2004 a reverse split of shares was carried out.

CAGR = 26.2%

Dividends per Share (*)Earnings per Share (*)

49

119 148

362 343

602 629

808 829

1,108

1,372

1.00 1.24

3.03 2.90

5.46

7.24 7.45

5.11

9.72

12.11

0

200

400

600

800

1,000

1,200

1,400

1995 1996 1997 1998 1999  2000  2001  2002 2003 2004

0

2

4

6

8

10

12

14

Total Dividends Unitary Dividends

Highlight:

Increase in monthly

payments from R$ 0.17 to

R$ 0.21 per share on

May 2005

Evolution of Dividends

50

(*) Annualized

Evolution of ROE (%)

15,4%17,2%

18,9%

31,6%

26,3% 26,5% 27,0%

35,6%

27,7%

31,5%

1996 1997 1998 1999 2000 2001 2002 2003 2004 1st H/05(*)

51

Consistence of the strong financial performance and increase in operational efficiency;

Strategy of growth of credit for small and medium companies;

Maintenance of conservative policy of provisioning;

Changes in assets mix, reducing the volatility.

March 2005

Long and consistent record of performance in volatile scenarios;

Quality of Equity;

Significative international presence reducing the internal volatility;

Strong capitalization and provisions.

• Itaú became the best rated bank in Brazil by Moody´s (among 23 banks evaluated) and by Fitch Ratings (46 banks evaluated).

April 2005

Main Competitive Differentials:

Ratings Upgrade

52

•Public Company Award 2004 – Apimec (Brazilian Association of Capital Markets Professionals and Analysts - 3rd time)

•Best Financial Strength and Individual ratings among Brazilian Banks – Moody´s and Fitch

•Best Bank in Brazil – Euromoney (8th consecutive year) and Global Finance (2nd consecutive year)

•The Most Ethical and Best Managed Bank in Latin America – Latin Finance / Management & Excellence

•Best Corporate Governance / Best Annual Report / Best IR Website / Best IR Officer in Brazil – Investor Relations Magazine Brazil Awards

•Public Company Seal 2004 – Animec (Brazilian Association of Capital Markets Investors - 2nd time)

•Best Retail Financial Conglomerate and Best Insurance Company – FGV/Conjuntura Econômica

•RiskBank Award – Category Large Retail Bank (Hors Concours status)

33

Recent Recognitions

53

Perspectives for 2005

•Expansion of points of sale in 694 new units,

being 116 Itaú branches, 12 Personnalité

branches, 121 Taií, 265 FIC (CBD) and 180 FAI

(LASA);

•Continuity of growth in credit portfolio of 20-25%;

•Focus in consumer credit (Taií, FIC CBD, FAI LASA,

Vehicles);

•Credit Cards: Credicard operations;

•Focus in the efficiency ratio (50%).

54

0

100

200

300

400

500

600

700

800

900

1.000

95 96 97 98 99 00 01 02 03 04 05

Itaú (1)Itaú (2)

Bovespa

US$

100

605

273273

878

Russian CrisisReal Devaluation

Mexican Crisis

Asian Crisis

Argentine Crisis

Attack to WTC

Itaú(1) Itaú(2) Ibov.

10 years 24.27% 19.73% 10.55%

5 years 20.11% 15.86% 2.78%

12 months 104.76% 98.32% 56.61%

Annual Average Appreciation in US$

Election Period

Preferred Shares Appreciation – in US$

Evolution of US$ 100 Invested from June/95 to June/05

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

8th Annual Latin America Conference

London, September 12-13, 2005

Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director