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Conference Call of the Results of the 2nd Quarter/2007 August 08, 2007

Conference Call of the Results of the 2nd Quarter/2007 August 08, 2007. Highlights. Results 2nd Qtr/07: Recurring Net Income of R$ 1,919 million , a 0.9% increase compared to Q1/07; annualized ROE of 29.8% (1st Sem/07: Recurring Net Income of R$ 3,820 million and ROE of 30.5%);

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Conference Call of the Results of the 2nd Quarter/2007 August 08, 2007

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  1. Conference Call of the Results of the 2nd Quarter/2007 August 08, 2007

  2. Highlights • Results • 2nd Qtr/07: Recurring Net Income of R$ 1,919 million, a 0.9% increase compared to Q1/07; annualized ROE of 29.8% (1st Sem/07: Recurring Net Income of R$ 3,820 million and ROE of 30.5%); • 2nd Qtr/07: Net Income of R$ 2,115 million (1st Sem/07: Net Income of R$ 4,016 million and ROE of 32.1%). • 2.The loan portfolio growth 3.7% in the quarter and 40.2% in the last 12 months: • Personal Loans: 1.8% in the 2nd Qtr/07 and 11.3% in the last 12m; • Vehicles: 12.4% in the 2nd Qtr/07 and 58.6% in the last 12m; • Small and Mid-Sized Companies 5.4% in the in the 2nd Qtr/07 and 59.7% in the last 12m; • 3.Non-Recurring Events: • R$ 400 million increase in the excess provision for loan losses in the quarter, reaching the balance of R$ 2,150 million. • Selling of 22.3% of interest in Serasa S.A. with anincome after taxes of R$ 485 million (maintaining 10.9% interest on Serasa). 4.Nonperforming Loans Ratio:Nonperforming loans ratio of 5.1%. 5.BIS Ratio:Sustaining of the high level of 17.6%. Considering the new regulatory guidelines about gold and foreign exchange exposure that will have impact starting on 07/02/2007, the solvency ratio for 06/30/07 would be of 16.0%.

  3. Non Recurring Effects1 R$ Million 1 For further details, please consult Itaú Holding’s Management Discussion and Analysis report. 2 In the 2nd Quarter/07, effects of BankBoston International and BankBoston Trust acquisition.

  4. Highlights R$ Million

  5. Itaú Holding Pro Forma R$ Million

  6. Loans by Type of Customer R$ Million 1 Rural and Mortgage Loans – linked with the balances of Demand and Savings Deposits, respectively.

  7. Loan Portfolio Breakdown Corporate Argentina / Chile / Uruguay Individuals Small and Medium-Sized Companies Mandatory Loans

  8. Nonperforming Loans and Coverage Ratios Nonperforming Loans Ratio Coverage Ratio (*) NPL Ratio NPL Ratio- Individuals NPL Ratio- Businesses (*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

  9. Coverage Ratio (*) Consolidated – Not including Itaucred Vehicles Consolidated Itaucred Vehicles Change in the credit portfolio mix with the growth of vehicle financing Lower risk (Real Collateral) Lower need of provisions Lower Loss Given Default (*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

  10. Exceeding Provision for Loan Losses • Maintaining the criteria standing in the 1st Q./07, it would not be necessary to increase the exceeding provision for loan losses, and the coverage ratio would be 154%, as a consequence of the current credit portfolio mix. • However, in this quarter, we reviewed our statistical basis and adopted more conservative criteria in the projection of delinquency increases arising from a strong reversal of the economic cycle under market stress conditions, which resulted in the constitution of R$ 400 million of exceeding provision for loan losses.

  11. Nonperforming Loans (NPL) by Segment R$ Million

  12. Funding R$ Million 1 Includes Repurchase Agreement – Own Issue Securities. 2 On Jun 30, 07, include the acquisition of two companies from Bank of America: BankBoston International (Miami) and Bank of America Trust Company Ltd (Bahamas).

  13. Banking Service Fees R$ Million 1 Funds and Consortia Management Fees

  14. Non Interest Expenses R$ Million 1 Does not include PIS, Cofins and ISS

  15. 48.0% 46.7% Efficiency Ratio

  16. Itaú Itaú BBA Corporate Operations & Investment Banking Segmentation (Pro forma) Itaubanco Itaucred Corporation Banking Vehicles Credit Cards – Account Holders Credit Card – Non Account Holders Insurance, Capitalization and Pension Plans Taií: FIT, FIC (CBD) and FAI (LASA) Investment Funds and Managed Portfolio NB: The organization chart of Itaucred segment reflects, chiefly, the transactions carried out through channels intended for non current account holders.

  17. Highlights of Pro Forma Segments R$ Million 1 Does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

  18. Recurring Net Income per share (R$) Recurring Net Income (R$ Million) Net Income and Net Income per Share R$ Million R$ Note: The Net Income per Share was adjusted to reflect the stock split of 900% that occurred in oct/05.

  19. Stock Split Proposal To increase share liquidity, the Board of Directors has proposed for approval of the Extraordinary General Meeting to be held on August 27 2007 the following 100% stock split for Preferred (PN), Common Shares (ON), ADRs and CEDEARs. Stock Split Simulation Current Situation Situation after Split Quantity of Shares Unitary price on Bovespa (*) Round lot - Bovespa (*) ADR price (*) Book Value 1,221,996,220 R$ 86.00 R$ 8,600.00 US$ 44.44 R$ 22.11 2,443,992,440 R$ 43.00 R$ 4,300.00 US$ 22.22 R$ 11.05 (*) Considering closing prices as of June 29, 2007. Following approval of the Extraordinary General Meeting, the operation will depend on further ratification by the Brazilian Central Bank.

  20. Conference Call of the Results of the 2nd Quarter/2007 August 08, 2007

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