1

March, 2001

2

HighlightsFinancial Performance

Strategies

3

Highlights

4

12.31.00

69.6

6.6

27.9

27.3

42.0

36.4

5.6

Var. (%)

34.1%

11.9%

20.3%

36.2%

31.3%

41.1%

-9.7%

12.31.99

51.9

5.9

23.2

20.0

32.0

25.8

6.2

Total Assets

Stockholders’ Equity

Deposits

Loans

Assets under Management

Mutual Funds

Portfolio under Management

Itaú Consolidated

Financial Highlights Evolution

R$ Billion (*)

(*) Balances at the end of period

5

3.6%2.9%

0.7%

31.6%25.7%

5.9%

21.0%

58.0%

-27.8%-6.9%

-114.3%

-12.3%12.5%

-120.3%

-31.4%

1.5%

12.31.00

2.6%2,7%

-0,1%

27.7%28.9%

-1.2%

14.4%(*)

59.5%

Var. (%)12.31.99

ROA (%) Recurring

Extraordinary

ROE (%) Recurring

Extraordinary

BIS Ratio (%)

Efficiency Ratio (%)

Itaú Consolidated

%

Excellent Performance

(*) The BIS ratio on December 31, 2000 reached 15.7%, based on the operational conglomerate, and 14.4% based on the financial conglomerate.

6

6,642

5,907

470

3,337

2,311

1,841

1,869

143

343427

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

Stockholders Equity

Net Income

R$ Million(*)

95 211 65 416 1,783 480 2,708 15 9 8 2 20 10 Annual Inflation (%)

(*) In currency of constant power purchasing as of December, 1995 until then, after wich in Corporation Law.(1) Increase of Capital by cash payment.

Evolution of Stockholders’ Equity, Net Income and Annual Inflation

December, 2000Stockholders’ Equity R$ 6,642 MillionMarket Capitalization R$ 21,297 MillionNet Income R$ 1,841 Million

Jan/81 to Dec/00Dividends:

R$ 3.2 BillionIncrease of Capital(1):

R$ 0.1 Billion

7

143

-309

535

165 179 191

403

202275

590

226

333437

522365

435 498620

-41-107-218

-77 -36-68-15

62

Evolution of Consolidated Net IncomeQuarterly Review

R$ Million

Quartersof 1997

Quartersof 1999

Quartersof 1998

1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st

Quarters of 2000

2nd 3rd

185

187207 205

281

761

360415

579

RecurringExtraordinary

462

4th

8

HighlightsFinancial Performance

9Risk - Based Capital Ratio (BIS Ratio)

If taken into consideration all tax credits from Banestado, the asset market value or, instead of it, the future, cash

flows net present value, and the amount of exceed provision to the minimum required besides tax credits not

accounted, this ratio would be 19%.

If taken into consideration all tax credits from Banestado, the asset market value or, instead of it, the future, cash

flows net present value, and the amount of exceed provision to the minimum required besides tax credits not

accounted, this ratio would be 19%.

Itaú Consolidated

Ratio in September 30, 2000Quarter resultInternet on capital amountingIncrease in exchange exposureTreasury sharesIncrease in the weight of tax creditsIncrease in weighted assets

Ratio calculated in accordance with criteria in place

Dec.31, 2000

18.3%1.8%

-0.5%-0.3%-1.2%-0.5%-3.2%

14.4%

10

-6.4%

Var.%

-12.1%

0.0%

-7.3%

2,251

2000

603

746

902

2,405

1999

686

746

973

R$ Million

Total

Itaú Consolidated

Excess Provision for Loan Losses

Excess Provision for Securities

Other Unrealized Gains

Fair Market Value

11

Total

Itaú Consolidated

91.5

Dec 00

32.4%

Var %

20.3%

31.3%30.4%0.0%

108.9%

69.1

Dec 99

R$ Billion

Deposits

Mutual Funds and Portfolio under

Management

Borrowings and on-Lendings

Acceptances and Debentures

Money Market Repurchase

Commitments and Interbank Deposits

Funding

27.9

42.06.93.0

11.7

23.2

32.05.33.0

5.6

12

23,674

16,890

12,325

8,022

3,958 5,531

11,572

6,328

27,253

19,596

14,127

9,057

4,6345,846

11,798

6,366

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

R$ Million

Credit Operations

Credit Operations and Guarantees

Credit Operations

Market ShareNovember 30, 2000

Itaú 8.6%Banerj 0.2%Bemge 0.1%Banestado 0.8%Total 9.7%

Market ShareNovember 30, 2000

Itaú 8.6%Banerj 0.2%Bemge 0.1%Banestado 0.8%Total 9.7%

LoansLeasingO.ReceivablesAECSub-totalGuaranteesTotal

20,874955661

1,18423,6743,579

27,253

15,220534187

1,35817,2992,706

20,005

37.178.6

253.5-12.836.932.336.2

Dec.00 Dec.99 Var%

13

Total

Credit Operations by Segment

R$ Million

Credit Card

Real Estate

Individuals

Small and Medium-Sized Companies

Corporate

Non-Accrual Loans + Other Receivables

Credit Operations by Segment

(-) Real Estate

27,253

Dec 00

2,130

3,305

4,486

2,115

14,768

449

3,305

23,948

36.2%

Var %

49.7%

12.8%

76.5%

117.4%

25.9%

9.8%

12.8%

40.2%Total Excluding Real Estate

20,005

Dec 99

1,423

2,930

2,541

973

11,729

409

2,930

17,075

14Provision for Loan Losses

R$ Million

Provision for Loan Losses

2,345

3,579

Risk

AAABCDEFGH

Sub-Total

Guarantees

Total 27,253

--

32245344411130592

618

Abnormal Course

December 31, 2000

% Provision

0.0%0.5%1.0%3.0%

10.0%30.0%50.0%70.0%

100.0%

6,4075,5276,6371,2821,003

16312010189

Normal Course

Total Provision

Specific --3

144433

15364

618

Generic -296638

10049607089

Total -

286952

14582

212135707

21,329 929 501 1,430

15Provision for Loan Losses

R$ Million

Provision for Loan Losses

2,345

3,579

Risk

AAABCDEFGH

Sub-Total

Guarantees

Total 27,253

--

32245344411130592

618

Abnormal Course

December 31, 2000

% Provision

0.0%0.5%1.0%3.0%

10.0%30.0%50.0%70.0%

100.0%

6,4075,5276,6371,2821,003

16312010189

Normal Course

Total Provision

Specific --3

144433

15364

618

Generic -296638

10049607089

Total -

286952

14582

212135707

21,329 929 501 1,430

83% of Total Portfolio Until Risk B (1%)

Excess Provision:R$ 603 million

Total Provision:R$ 2,033 million

16

Excluding Banestado

6,3164,8396,7121,4071,216

235317176471

Total with Banestado

21,690

6,4075,5276,9591,7361,447

275425192707

Provision for Loan Losses

Provision for Loan LossesDecember 31, 2000

Risk

AAABCDEFGH

Total

Provision for Loan Losses

-286952

14582

212135707

1,430

Itaú Consol. (A)

- 42

10 23 12 53 12 236

352

Banestado (B)

- 246742

122 70

159 123 471

1,078

Itaú excluding Banestado (A-B)

23,674

Credit Operations

R$ Million

17Ratio of Default (%)

Obs: Banestado IncludedObs: Banestado Included

Percentage of credits that are 11 to 30 days overdue in relation credits that are 11 to 30 days, and in December/00 using credits that are 15 to 30 days overdue (accordance with Resolution 2,682)Percentage of credits that are 31 to 60 days overdue in relation credits that are 31 to 60 daysPercentage of credits that are 61 to 90 days overdue in relation credits that are 61 to 90 days

2.4

0.13

3.1

2.03

2.6

2.5

0.840.890.830.89

0.63

0.50.690.460.59

0

0.5

1

1.5

2

2.5

3

3.5

Dec/99 Mar-00 Jun-00 Sep/00 Dec/00

11 a 30

31 a 60

61 a 90

18

Itaú Consolidated

Income Statement

R$ Million

Net Interest Margin

Provision for Loan Losses

Banking Service Fees

Salaries, Employee Benefits and

Other Adm. Expenses

Recurring Net Income

Net Income

EPS (per thousand shares)

Recurring ROE

Recurring ROA

2000

5,072

(764)

3,465

(5,173)

1,918

1,841

15.85

28.9%

2.8%

4,629

(814)

3,159

(4,610)

1,518

1,869

15.99

25.7%

2.9%

1999 Var %

9.6%

-6.1%

9.7%

12.2%

26.4%

-1.5%

-0.9%

12.5%

-3.4%

19

Itaú Consolidated

Income StatementR$ Million

Interest IncomeInterest ExpensesNet Interest IncomeProvision for Loan LossesNet Income after PLLOper. Income/(Expenses)Operating IncomeNon Operating IncomeIncome TaxExtraordinary ResultsMinority InterestNet Income

Banking

7,836(3,721)

4,115(496)3,619

(1,966)1,653

(37)(422)

-(84)

1,110

432(4)

427(243)

184196379

1(129)

-(7)

244

CreditCards

Insurance(1)

295-

295(1)

294(32)26214

(94)-

(7)175

-----

271271

-(92)

-(12)167

AssetManag.

Corporat.

-----

(24)(24)(9)

312(77)(57)144

Consolid.

8,563(3,725)

4,838(741)4,097

(1,556)2,541

(31)(426)(77)

(166)1,841

(1) Insurance, capitalization and pension plans

20Net Interest Margin

11%8% 10% 11% 10%

21%25%

20%17% 15%

3Q97 3Q98 3Q99 3Q00 4Q00

Financial Margin Interbank Rate CDI

Annual Average Rates

21

Total

Itaú Consolidated

3,465

2000

9.7

Var %

-8.0

0.0

4.0

-10.8

16.4

17.5

31.2

30.6

831

216

593

124

156

201

866

478

3,159

1999

903

216

570

139

134

171

660

366

R$ Million

Mutual Funds Management Fees

Collection Fees

Current and Savings Accounts Service Fees

Collection Fees Agreement with Public Co.

Interbank Tariff

Credit Operations

Credit Cards

Other Services

Banking Service Fees

22

HighlightsFinancial Performance

Strategies

23

• Cost Reduction Program• Cost Reduction Program

Strategies

24

0

2.000

4.000

6.000

8.000

10.000

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

0

10

20

30

40

50

60

70

80

90

100

Thousand of EmployeesTransactions

per Employee9,484

47.5

1,523

88.9

Transactions per Employee

Number of Employees

Investments in AutomationIn 2000 – US$ 179 million

Accumulated in the last 6 years: US$ 793 million

25

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet

26

Itaú – PC & Internet BankingDec.99: 1.1 millionDec.00: 1.4 million

InternetGrowth in number of customers:

+27%

Itaú – AOLANov. 2000: 4.3 thousandFeb. 18, 2001: 57.3 thousand

“Continuous improvement of the websites, in order to strengthen the relationship with the customers; strategic alliances that aggregate value and maintain our focus

on providing financial services.”

B2B• Partnership in study;

• Offer complete solutions for companies through the Internet.

• Acquisition of one of the most complete investment portals in Brazil, the only one with Select Funds, recommended by S&P;

• Increase in the number of products and services offered.

+1,233%

27

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion

28

7.57.0

5.25.7

6.46.7 6.8 6.9 7.0

5.85.75.3

4.94.94.74.64.1

3.83.73.63.4

2.0

3.0

4.0

5.0

6.0

7.0

Itaú Consolidated + BanestadoItaú ConsolidatedItaú

Customers Basis Expansion

December 31, 2000Banco Itaú: 5.8 MillionBanerj: 0.8 MillionBemge: 0.3 MillionBanestado: 0.5 MillionItaú Buen Ayre: 0.1 Million

Million

29Network DistributionParticipation in the Brazilian Financial System

São Paulo

Rio de Janeiro

Minas Gerais

Rio Grande do Sul

Paraná

States

Total

11%

19%

27%

5%

32%

Branches

16%

14%

22%

18%

5%

32%

CSBs

17%

35.5%

11.0%

9.8%

7.7%

6.2%

% of GDP(2)

70.2%

Itaú Consolidated

1

2

3

4

5

Rank (1)

(1) States ranked by their share in total Brazilian GDP.(2) Source: IBGE (95-98) – Brazilian Institute of Geography and Statistics.

30

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment

31Strong Expansion in Personnalité Segment

Branches

Customers (in thousand)

Year 1998

32

31.7

1999

33

36.4

2000

35

42.8

2001

55

63.0

2002

57

100.0

32

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards

33Emphasis on Credit Cards

1,870 1,875 2,039 2,279 2,407 2,5562,811

3,1438.4% 8.4%9.1% 9.7% 10.0% 10.3% 10.7% 11.2%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Number of Credit Cards (Thousand)Market Share (%)

Number of Credit Cards x Market Share

34Emphasis on Credit Cards

ItaucardBanerjcardBemgecardPersonnalitéTotal without BanestadoBanestadoTotal

1,90221725

-2,144

542,198

787573842

925124

1,049

75---

75-

75

2,7642746342

3,143178

3,321

Mastercard Visa Diners Total

Thousand

Average Invoice per Account: R$ 391 (Dec.00)+24.5% over Sep.00

Quantities

35

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)

36Growth in Loans(mainly consumers)

Goods AcquisitionOverdraftPersonal FinancingLeasingOthers *

357 866

1,630 795 838

Portfolio RiskR$ Million

Sub-total 4,486

HousingCredit Cards

2,9792,130

Total 9,595

* Sureties included

37

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)• Segmentation of Specific Channel for Small Companies• Segmentation of Specific Channel for Small Companies

38Segmentation of Specific Channel for Small Companies

Business market segmentation of Itaú

New Focus in Small Companies

Specialized Structure in development

39,000 small companies

Potential credit portfolio of R$ 1.3 billion

(annual sales)

CorporateOver R$ 50 MM

Middle MarketR$ 4 MM to 50 MM

Small CompaniesR$ 500 thousand to 4 MM

Segment with high spreads

39

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)• Segmentation of Specific Channel for Small Companies• Segmentation of Specific Channel for Small Companies• Corporate Banking• Corporate Banking

40Corporate Banking

QuantitiesVolume

Coordination of Operations in theLocal Capital MarketCoordination of Operations in theLocal Capital Market

Fixed IncomeFixed Income

Variable IncomeVariable Income

R$ 925 million(Of a total of R$ 6.5 billion)R$ 925 million(Of a total of R$ 6.5 billion)

R$ 806 million(Of a total of R$ 9.2 billion)R$ 806 million(Of a total of R$ 9.2 billion)

24 operations24 operations

6 operations6 operations

Distribution of Fixed Rate Securitiesin the International MarketDistribution of Fixed Rate Securitiesin the International Market

US$ 1 billionUS$ 1 billion 600 operations600 operations

Itaú Corretora (Brokerage House)Itaú Corretora (Brokerage House)R$ 18 billion(Volume Negotiatedin the Bovespa Exchange)

R$ 18 billion(Volume Negotiatedin the Bovespa Exchange)

5.5 million(Contracts Negotiated in the BM&F Exchange)

5.5 million(Contracts Negotiated in the BM&F Exchange)

Services for the Capital MarketServices for the Capital MarketR$ 310 billion(Custody / Management of Financing Assets)

R$ 310 billion(Custody / Management of Financing Assets)

873 contracts873 contracts

BNDESBNDESOn-LendingOn-Lending

EximExim

R$ 1.2 billion(Disbursement)R$ 1.2 billion(Disbursement)

US$ 395 million(Disbursement)US$ 395 million(Disbursement)

1,063 releases1,063 releases

96 releases96 releases

41

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)• Segmentation of Specific Channel for Small Companies• Segmentation of Specific Channel for Small Companies• Corporate Banking• Corporate Banking• Strategic Cooperation Itaú - la Caixa • Strategic Cooperation Itaú - la Caixa

42

Caja de Ahorros y Pensiones de Barcelona - “la Caixa”

Banco Itaú S.A.

1 member in the International Advisory Committee

1 Managing Director

3%

Spain is the second largest foreign investor in Brazil

“For Itaú, the strengthening of the alliance with

"la Caixa" means an important

advance in its strategic global positioning in a

context of international

diversification, thus enlarging its

opportunities for new business.”

“For Itaú, the strengthening of the alliance with

"la Caixa" means an important

advance in its strategic global positioning in a

context of international

diversification, thus enlarging its

opportunities for new business.”

Strategic Cooperation Itaú - la Caixa

1 Member of the Board of Directors

43

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)• Segmentation of Specific Channel for Small Companies• Segmentation of Specific Channel for Small Companies• Corporate Banking• Corporate Banking• Strategic Cooperation Itaú - la Caixa • Strategic Cooperation Itaú - la Caixa • US Broker Dealer• US Broker Dealer

44

• Cost Reduction Program• Cost Reduction Program

Strategies

• Internet• Internet• Customer Basis Expansion • Customer Basis Expansion • Strong Expansion in Personnalité Segment• Strong Expansion in Personnalité Segment• Emphasis on Credit Cards• Emphasis on Credit Cards• Growth in Loans (mainly consumers)• Growth in Loans (mainly consumers)• Segmentation of Specific Channel for Small Companies• Segmentation of Specific Channel for Small Companies• Corporate Banking• Corporate Banking• Strategic Cooperation Itaú - la Caixa • Strategic Cooperation Itaú - la Caixa • US Broker Dealer• US Broker Dealer• ADR Level II• ADR Level II

45

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

90 91 92 93 94 95 96 97 98 99 00

Banco Itaú *

Bovespa

Real Plan

Russian Crisis

Real Devaluation

Annual Appreciation. 10 years (average) 53.58%. 5 years (average) 33.19%. 2000 12.43%

US$

Mexican Crisis

Asian Crisis

* (without reinvestment of dividends)

Preferred Shares - Appreciation *Evolution of US$ 100 Invested in December 1990

7,328

1,913

46

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

90 91 92 93 94 95 96 97 98 99 00

Banco Itaú *

Bovespa

Real Plan

Russian Crisis

Real Devaluation

Annual Appreciation. 10 years (average) 53.58%. 5 years (average) 33.19%. 2000 12.43%

US$

Mexican Crisis

Asian Crisis

* (without reinvestment of dividends)

Preferred Shares - Appreciation *Evolution of US$ 100 Invested in December 1990

7,328

1,913

“Largest Market Capitalization among all Latin American Banks”

47

March, 2001