CONFERENCE CALLCONFERENCE CALLFIRST QUARTERFIRST QUARTER

May 12, 2000May 12, 2000

Available at our site www.itau.com.br/riAvailable at our site www.itau.com.br/ri

2

Balance Sheets - Consolidated Balance Sheets - Consolidated

Dec 99

51,911

3,954

13,881

4,459

23,226

5,063

494

5,270

8,596

404

51,911

5,906

3,286

Mar 00

54,094

R$ Million

Cash and Cash Equivalents

Money Market

Securities

Interbank Deposits

Credit Operations (*)

Other Assets

Permanent Assets

Provision for Loan Losses

Interbank Funds Applied

Deposits

Borrowing and On-lending Borrowings

Other Liabilities

Minority Interest

Interbank Accounts

Stockholders’ Equity

Liabilities

Total Liabilities

Assets

Total Assets

(*) Not Included Advances on Exchange Contracts.

Mar 99

54,545

2,003

14,379

8,222

2,883

(1,333)

1,622

15,754

7,269

2,939

(1,253)

1,496

2,257

15,831

6,371

15,711

8,956

3,002

(1,287)

1,757

5,488

13,693

6,659

2,551

2,952Acceptances and Debentures

Money Market Repurchase Commitments

Dec 99

22,131

2,504

5,470

10,040

395

54,094

6,125

3,140

4,289

Mar 00

21,527

4,957

3,599

3,252

5,900

9,773

355

5,182

54,545

Mar 99

3

Income StatementIncome StatementR$ Million

Net Income

Itaú Consolidated

Net Income from Financial Operations Provision for Loan Losses Banking Service FeesSalaries, Employee Benefits and Other Adm. ExpensesEquity Share in Income of Subsidiaries and AffiliatesOther Operating and Non Operating IncomeIncome before taxesExtraordinary ResultsIncome Tax and Social ContributionProfit SharingMinority Interest

1Q991Q99

415

4Q99

1,120(134)

978(1,228)

(194)(143)

399(107)

115(7)15

365

1,179(153)

802(1,156)

(53)(69)550

- (158)(29)

2

1Q00

1,214(299)

697(1,050)

32(157)

437535

(130)(23)(58)

761

4

HIGHLIGHTS HIGHLIGHTS R$ Billion(*)

54.5 56.3 54.3 51.9 54.1

0.0

20.0

40.0

60.0

80.0

Mar.99 Jun.99 Sep.99 Dec.99 Mar.00

TOTAL ASSETS15,8 15,1 15,9

17,3 17,4

0

5

10

15

20

Mar.99 Jun.99 Sep.99 Dec.99 Mar.00

LOANS (1)

21,5 21,4 20,123,2 22,1

0

5

10

15

20

25

Mar.99 Jun.99 Sep.99 Dec.99 Mar.00

DEPOSITS

25,8 27,228,0

32,034,1

0

10

20

30

40

Mar.99 Jun.99 Sep.99 Dec.99 Mar.00

ASSET MANAGEMENT (2)

(*) Balance at the end of period

(1) Credit Operations: Loans, Leasing, Other Receivables ( Res. 2682 ) and Advances on Exchange Contracts

(2) Including Matrix Funds

5

Market Capitalization, Stockholders’ Equity and Market Capitalization, Stockholders’ Equity and

Consolidated Net IncomeConsolidated Net Income (1)(1)

6,1255,9075,8015,5635,182

16,56617,834

11,1099,9148,911226

333 360415

365

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1Q99 2Q99 3Q99 4Q99 1Q00

0

100

200

300

400

500

600

700

800Consolidated Stockholders' Equity

Market Capitalization

Consolidated Net Income

R$ Million

(1) Net Income of Quarter; Stockholders’ Equity and Market Capitalization as of period ended.

761

Ext

raor

din

ary

Res

ult

(2)

(2) In the first quarter of 1999, the Banco Itaú has Extraordinary Result of R$ 535 million, related to the valorization of permanent Bank investments abroad.

Con

solid

ate

d N

et

Inco

me

Mar

ket C

apita

lizat

ion,

Sto

ckho

lder

s’ E

quity

6

Excelent PerformanceExcelent Performance

ROE

18.6%

48.1%

33.8% 40.3%

-5.2% -7.0%

26.1%26.2%

-20.0%-10.0%

0.0%10.0%

20.0%30.0%40.0%

50.0%60.0%

70.0%80.0%

1Q99 2Q99 3Q99 4Q99 1Q00

Extraordinary Recurring

ROA

1.7%

4.0%

3.3% 4.1%

-0.6% -0.8%

2.7%2.4%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1Q99 2Q99 3Q99 4Q99 1Q00

Extraordinary Recurring

(*) Annualized

72.9%

26.2%27.3% 31.2%

26.1%

5.7%

3.2%2.7%2.4% 2.7%

7

Excelent PerformanceExcelent Performance

BIS RATIO

21.3% 24.0% 20.9% 21.0% 20.8%

2.4%2.9%3.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1Q99 2Q99 3Q99 4Q99 1Q00

Calculated in accordance with previous criteria

Calculated in accordance with criteria in place

23.9% 23.9% 23.2%

EFFICIENCY RATIO

55.0%57.0%

63.2%

57.3% 56.6%

50.0%

52.0%

54.0%

56.0%

58.0%

60.0%

62.0%

64.0%

1Q99 2Q99 3Q99 4Q99 1Q00

EFFICIENCY RATIO

R$ Million

8

Banking Services FeesBanking Services FeesR$ Million

Total

Itaú Consolidated

978

4Q99

352

57

148

66

36

46

190

85

Mutual Fund Management Fees

Collection Fees

Current and Savings Account Service Fees

Collection Fees Agremeements whith Public Co.

Interbank Tariff

Loans

Credit Cards

Other Services

802

1Q00

697

1Q99

156

52

133

35

31

35

148

106

207

52

140

41

35

45

190

92

9

8.022

12.325

6.328

11.572

5.5313.958

17.299

17.39314.127

9.057

4.6345.846

11.798

6.366

20.005

20.241

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00

Credit Operations (**)

Credit Operations Mar.00 Dec.99 Mar.99

Loans 15,123 15,220 13,927 Leasing 589 534 452O.Receivable 168 187 154 AEC 1,513 1,357 1,314 Sub-total 17,393 17,299 15,847 Guarantees 2,848 2,706 2,302 Total 20,241 20,005 18,149

Credit Operations Mar.00 Dec.99 Mar.99

Loans 15,123 15,220 13,927 Leasing 589 534 452O.Receivable 168 187 154 AEC 1,513 1,357 1,314 Sub-total 17,393 17,299 15,847 Guarantees 2,848 2,706 2,302 Total 20,241 20,005 18,149

( * ) In currency of Constant Purchasing Power as of December 31, 1995 until then, after which the calculation will be made in accordance to the Corporation Lawe ACC/ACE

Credit Operations (1)

Credit Operations and Guarantees (2)

( * * ) Until 1999 (Dec 31st); 2000 (Mar 31st)

( 1 ) Credit Operations: Loans, Leasings, Other Receivables and Advances on Exchange Contracts (AEC)

( 2 ) Guarantees: Endorsements, Sureties and Other Guarantees

R$ Million(*)

10

Provision For Loan Losses - Res. 2682Provision For Loan Losses - Res. 2682

Provision for Loan Losses (R$Thousand)

Itaú Consolidated (R$ Thousand)

1,287,388

Provision For Loan Losses Under Res. 2682Excess Provision for Loan Losses

662,761 624,627

Mar. 2000

Risk

AAABCDEFGH

Balances

4,906,983 6,021,657 3,506,932 1,530,268 723,475 90,347 298,218 39,920 275,180

%

0.0% 0.5% 1.0% 3.0% 10.0% 30.0% 50.0% 70.0% 100.0%

0 0 2,284 7,819 11,686 26,295 40,976 26,034 206,505

Specific

Provision (1)

Generic

Provision (2)

0 30,104 32,786 38,086 60,660 809 108,132 1,910 68,675

Total 17,392,980 321,599 341,162

Excess

Provision

624,627

Total

Provision

1,287,388

11

Provision for Loan Losses (*)Provision for Loan Losses (*)

Itaú Consolidated (R$ Million)

Beginning Balances Expenses allocated as: Provision for Loan Losses Extraordinary ResultsWrite-offEnd Balances

Beginning Balances of Non-accrual LoansNew Operations includedWrite-offEnd Balances of Non-accrual Loans

Recoveries

(1,253)(153)(153)

0119

(1,287)

196150119227

92

1Q00

(1,310)(134)(134)

0190

(1,253)

251134190196

80

4Q99

(1,303)(146)(146)

0140

(1,310)

249143140251

86

3Q99

(1,333)(235)(235)

0265

(1,303)

279235265249

40

2Q99

(1,340)(299)(299)

0306

(1,333)

313272306279

70

1Q99

(*) According to criteria previous to the Res. 2682.(*) According to criteria previous to the Res. 2682.

12

Provision for Loan Losses (**)Provision for Loan Losses (**)

Itaú Consolidated (R$ Million)

Provision for Loan Losses(a) Non-accrual Loans + Overdue Loan(b)General Provisions(a-b)

Loans Operations(*)

(Overdue Loan + Non-accrual Loans) / LoansProvision for Loan Losses / LoansCoverage Ratio (PLL / Overdue Loan + Non-accrual Loans)Additional Provision / Loans

(1,287)271

(1,017)

17,393

1.6%7.4%

477%5.8%

1Q00

(1,253)236

(1,017)

17,077

1.4%7.3%

532%6.0%

4Q99

(1,310)289

(1,021)

15,878

1.8%8.3%

453%6.4%

3Q99

(1,303)291

(1,012)

15,135

1.9%8.6%

448%6.7%

2Q99

(1,333)320

(1,013)

15,847

2.0%8.4%

417%6.4%

1Q99

* Loans Operations include: Loans, Leasing, Other Receivable and Advances on Exchange Contracts* Loans Operations include: Loans, Leasing, Other Receivable and Advances on Exchange Contracts** According to criteria previous to the Res. 2682.** According to criteria previous to the Res. 2682.

13

Provision For Loan Losses - Provision For Loan Losses - Res. 2682Res. 2682

Itaú Consolidated (R$ Thousand)

Prior Situation (Res. 1748 )Effects of new criteria adoptionPresent situation ( Res.2682)

Mar. 2000

17,121,513 271,46717,392,980

Credit

Portfolio

Non accrual

and Overdue

loans (*)

271,467(271,467)

-

Existing

Provision(*)Minimum provision required

Specific

Provision (1)

Generic

Provision (2)

Excess

Provision

271,46750,132

321,599

-341,162341,162

1,287,388-

1,287,388

1,015,921(391,294)

624,627

( * ) Without including the effects of write-off made on March 2000, amounting to R$ 38,321, which were not made in the accelerated way ( 61 days after recorded as non-accrual loan ) as required by Resolution 2682/99.

14

Net Interest MarginNet Interest MarginR$ Million

Itaú Consolidated

Loans and Leases Securities Portfolio Trade Finance and Foreign Exchange Portfolio Compulsory DepositsIncome from Financial OperationsExpenses from Financial OperationsFinancial Margin

Average Loans Average Earning Assets Average Funding Resources

Annual Average Rate of Income from Loans and Leases Annual Average Rate of Income from Financial Operations Annual Average Rate of Expenses from Financial Operations Annual Average Rate of Financial Margin

1Q00

1,046863

749

1,965(786)1,179

26.6%18.8%10.0%11.0%

17,23544,69132,593

4Q99

8587583149

1,696(576)1,120

22.4%16.2%7.2%

10.5%

16,51744,45533,074

1Q99

1,5671,709

2389

3,388(2,175)

1,214

14,85642,87833,834

49.3%35.6%28.3%11.8%

15

Changes in the Valuation Allowance for SecuritiesChanges in the Valuation Allowance for Securities

R$ Thousand

Balances as of March 31, 2000

Balances as of December 31, 1999

Write-offs:. Reversals. Losses for sales

156,401(13,727)(11,695)( 2,032)

Balances as of March 31, 2000 with additional provision

Additional provision (*)

142,674

888,574

745,900

(*) Additional provisions were constituted to cover the risk of future price fluctuations.

Securities and interbank deposits

Valuation allowance

Net Book Value

18,475,698 17,027,818

( 888,574) ( 783,430)

17,587,124 16,244,388

03/31/1999 03/31/2000Summary

16

US$

PREFERRED SHARES - APPRECIATION *PREFERRED SHARES - APPRECIATION *EVOLUTION OF US$ 100 INVESTED IN MARCH OF 1990EVOLUTION OF US$ 100 INVESTED IN MARCH OF 1990

Acrobat Document

ANNUAL APPRECIATIONANNUAL APPRECIATION. 10 years (Average). 10 years (Average) 66.94 % 66.94 %. 5 years (Average). 5 years (Average) 35.41 % 35.41 %. 12 months (Average). 12 months (Average) 81.78 % 81.78 %. 2000 2.55 % . 2000 2.55 %

ANNUAL APPRECIATIONANNUAL APPRECIATION. 10 years (Average). 10 years (Average) 66.94 % 66.94 %. 5 years (Average). 5 years (Average) 35.41 % 35.41 %. 12 months (Average). 12 months (Average) 81.78 % 81.78 %. 2000 2.55 % . 2000 2.55 %

ITAÚITAÚ BOVESPABOVESPA

MAR-90 DEC-91 DEC-92 DEC-93 DEC-94 DEC-95 DEC-96 DEC-97 DEC-98 DEC-99 MAR-00

* Without Reinvestiment

16,884

2,177100Collor Plan

Real Plan

Mexican Crisis

Asian Crisis

Russian Crisis

Real Devaluation