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Banco Itaú Holding Financeira S.A.

Banco Itaú Holding Financeira S.A. September, 2003. Banco Itaú Holding Financeira S.A. Largest Market Capitalization of the Brazilian Banking System: R$ 25.6 Billion (08/21/03); Financial Holding Company status , granted by FED;

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Banco Itaú Holding Financeira S.A.

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

  2. Banco Itaú Holding Financeira S.A. • 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. Agenda Results Earnings per Share Stock Market Management in different scenarios Sensitivity Analysis - Retail Itaú BBA International Operations

  4. Agenda Results Earnings per Share Stock Market Management in different scenarios Sensitivity Analysis - Retail Itaú BBA International Operations

  5. Highlights – 1st Semester of 2003 and 2002 Credit Operations Nonperforming Annualized ROE 2.7 p.p. -1.2 p.p. Annualized ROA Efficiency Ratio 0.4 p.p. -12.3 p.p.

  6. Consolidated Balance Sheet R$ Million Assets 06/30/03 06/30/02 Liabilities 06/30/03 06/30/02 with BBA and FIAT without BBA and FIAT with BBA and FIAT without BBA and FIAT Cash + Liquidity Securities (Additional Allowance) Interbank Relations Net Credit Operations (Additional Allowance) Foreign Exchange Others Permanent Assets 16,315 26,052 (545) 9,917 36,120 (848) 7,270 9,238 3,280 16,385 21,874 (545) 9,741 26,501 (792) 6,737 8,706 5,658 15,517 20,414 (597) 7,138 27,962 (715) 4,722 8,309 3,497 Deposits Open Market and others Accept./Issue - Securities Foreign Exchange Borrowings/On-Lending Tech. Prov Ins/Cap/Pens. Other Liabilities Minority Interest Stockholders` Equity 34,826 14,560 5,085 5,356 28,806 5,388 1,058 948 10,772 30,929 14,015 3,623 5,153 23,071 5,388 199 865 10,772 28,754 16,478 3,852 3,370 20,625 3,459 673 748 8,288 Total Assets 106,799 94,265 86,247 Total Liabilities 106,799 94,265 86,247 Guarantees 6,232 4,778 4,681 Mutual Funds 67,142 62,391 56,243

  7. Itaú Holding without BBA and FIAT Credit Operations Credit Operations + Guarantees Credit Operations R$ Million CAGR = 26.5% 06/30/2003 12/31/2002 28,302 33,080 31,506 37,020 Credit Operations Credit Operations + Guarantees (*) On June 30, 2003

  8. Credit Operations Nonperforming Loans (over 60 days) Ratio (%) Global Provision for Loan Losses R$ Million Individuals Portfolio overdue over 14 days (B) Total Provision (A) Companies (A) – (B) jun/01 (223) 2,190 2.413 dec/01 (118) 2,568 2.686 jun/02 (231) 2,911 3.142 Coverage Ratio (*) dec/02 607 3.172 2.565 jun/03 248 3.082 2.834 • (*) Provision for Loan Losses / Total Nonperforming Loans over 60 days

  9. Minimum Provision Additional Provision Total Provision Provision for Loan Losses R$ Million

  10. Assets under Management Total Deposits Total Resources Funds Raised and Managed R$ Million CAGR = 19.2% (*) On June 30, 2003.

  11. 42.2% 42.2% 86,247 Total Assets 106,799 94,265 23.8% 9.3% Statement of Income R$ Million 1st Semester 2003 2002 With BBA and FIAT Without BBA and FIAT 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 4,615 (785) 2,381 (3,350) 128 (545) 1,490 3,885 (943) 2,010 (3,366) 200 (23) 1,048

  12. 18.4% 21.8% Banking Service Fees R$ Million 1st Semester 2003 2002 With BBA and FIAT Without BBA and FIAT 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 590 150 468 85 100 266 470 56 16 248 2,449 580 150 468 85 100 266 470 42 2 218 2,381 501 142 414 78 97 219 332 31 - 195 2,011 Banco Fiat contributed with R$ 15 million

  13. 1st Semester 2003 2002 Financial Margin Other Revenues / Operating Expenses Banking Service Fees Partial Results of Insurance, Capitalization and Pension Plans Administrative Expenses Tax Expenses Other Operating Income / Operating Expenses Operating Income Non-Operating Income Income before Income Tax Income Tax / Social Contribution Profit Sharing 309 56 20 322 (203) (45) (38) 365 7 372 (127) (3) 157 13 2 246 (234) (28) 27 170 7 177 (60) (3) 112% Net Income 242 114 Insurance, Capitalization and Pension Plans R$ Million

  14. 270 163 152 (*) 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 Comparative: Banking Revenues/Share(*) Base: 1995 = 100 Source: Published Financial Statements

  15. Administrative Expenses R$ Million 2003 C/ BBA e FIAT 2003 S/ BBA e FIAT 1st Semester 2002 Personnel Expenses Other Administrative Expenses 1,234 2,088 1,165 1,954 1,161 1,850 Sub-Total 3,322 3,119 3,011 Restructuring 232 231 355 Total 3,554 3,350 3,366

  16. 2003 Variation Indices 2002 Adjusted 1,165 1,954 1,223 2,298 (58) (344) Salaries.......7% Dollar.........45% IPCA*.........17% 3,119 3,521 (402) 231 380 (149) Salaries.......7% 3,350 3,901 (551) 204 - - 3,554 3,901 (347) Adjusted Administrative Expenses R$ Million 1st Semester Personnel Expenses Administrative Expenses Sub-Total Restructuring Total (Without BBA and FIAT) • BBA + FIAT Total (With BBA and FIAT) (*) IPCA = Consumer Prices Index

  17. Agenda Results Earnings per Share Earnings per Share Stock Market Itaú BBA Management in different scenarios Stock Market Sensitivity Analysis - Retail Management in different scenarios Itaú BBA Sensitivity Analysis - Retail International Operations International Operations

  18. Evolution of Net Income - Semesters R$ Million CAGR Recurring = 37.5% 1,490 (*) On June 30, 2003

  19. Evolution of Net Income - Annual R$ Million CAGR Recurring = 36.6% 2,377 (*) On June 30, 2003

  20. Evolution of EPS - Semesters R$ CAGR Recurring = 38.3% Decr. Number of Shares (%) = -0.6% 13.03 (*) On June 30, 2003

  21. Evolution of EPS - Annual R$ CAGR Recurring = 38.0% Decr. Number of Shares (%) = -1.0% 21.37 (*) On June 30, 2003

  22. 743 556 449 324 293 258 Market Comparison – EPSBase: 1995 = 100 Source: Published Financial Statements

  23. 743 556 449 324 293 258 Market Comparison – EPSBase: 1995 = 100 Just for comparison purposes the half-yearly net incomes were multiplied by 2 (EPS Base: 1995 = 100) Source: Published Financial Statements

  24. 743 556 449 324 293 258 Market Comparison – EPSBase: 1995 = 100 Just for comparison purposes the half-yearly net incomes were multiplied by 2 (EPS Base: 1995 = 100) Results consistent with the Shareholder Value Source: Published Financial Statements

  25. Agenda Results Earnings per Share Stock Market Management in different scenarios Sensitivity Analysis - Retail Itaú BBA International Operations

  26. The largest banks in Brazil Stockholders’ Equity Jun/2003 Bradesco Itaú Holding Unibanco 12,629 10,772 7,601 Consistently the largest Market Capitalization in Brazilian banking sector R$ Million Itaú Bradesco Unibanco Source: Economática. Period : Dec/98 until Aug. 21 2003

  27. Daily Average Traded Volume - Liquidity Bovespa + NYSE(*) R$ CAGR = 47.9% CAGR = 14.9% (*) – Common, Preferred Shares and ADRs (**) – Daily Average until August 21, 2003

  28. Daily Average Traded Volume - Liquidity Bovespa + NYSE(*) R$ CAGR = 47.9% Equivalent to US$ 11 million Aug/03 : Over 10 million ADRs Issued CAGR = 14.9% (*) – Common, Preferred Shares and ADRs (**) – Daily Average until August 21, 2003

  29. Preferred Shares Appreciation Evolution of US$ 100 Invested from Dec. 1992 to August 21, 2003 Annual Average Appreciation in US$ US$ Argentine Crisis Itaú(1) Itaú(2) Ibov. 1,094 Attack to WTC 10 years 25.19% 20.80% 11.57% Russian Crisis 5 years 20.76% 16.14% -2.32% Real Devaluation 74.20% 71.17% 57.35% 2003 Asian Crisis 748 Mexican Crisis Real Plan 321 100 • With reinvestment of dividends • Without reinvestment of dividends

  30. Agenda Results Earnings per Share Stock Market Management in different scenarios Sensitivity Analysis - Retail Itaú BBA International Operations

  31. Target Planned Growth Shareholder Value Changes in the Approach AnticipatingScenariosBefore and After Real Plan 1994 1990 2003

  32. Sustained Results GrowthEvolution of Stockhoders’ Equity and Net Income R$ Million CAGR)(90-03) = 13.4% CAGR(90-02) = 23.9% 1st Semester of 2003 Net Income: R$ 1,490 Million (*) June 30, 2003

  33. Sustained Results GrowthEvolution of Stockhoders’ Equity and Net Income Real Devaluation Argentine Crisis Russian Crisis Asian Crisis Mexican Crisis Collor Plan Real Plan R$ Million Jan/90 to Jun/03 Dividends: R$ 4.6 Billion Capital Increase (1): R$ 0.1 Billion CAGR)(90-03) = 13.4% CAGR(90-02) = 23.9% 1st Semester of 2003 Net Income: R$ 1,490 Million Adaptability to Scenarios (*) June 30, 2003

  34. Market CapitalizationBanco Itaú Holding Financeira S.A. R$ Million CAGR = 23.7% (*) – August 21, 2003

  35. Operational To perform well! To perform efficiently! Changes in the Approach AnticipatingScenariosBefore and After Real Plan 1994 1990 2003 Target Planned Growth Shareholder Value

  36. Investments in Infrastructure (*)... R$ Million 1st Sem/2003 = R$ 151.8 million CAGR = 19.0% Total in the period: R$ 2.2 billion Accounting Value R$ 469 million (06/30/03) (*) Includes: Electronic Bank, Computers and Peripherals and Telecommunications.

  37. Branches + CSBs(**) ATMs SustainabilityDistribution Network Evolution Quantity CAGRBranches + CSBs = 6.4% (*) June 30, 2003 (**) – Customer Site Branch Obs.: 308 Points of Sale in 1972

  38. Checking Accounts Thousand Checking Accounts(**) CAGR = 6.0% (*) June 30, 2003 (**) – 1990, 1991 and 1992 : excluded the checking accounts in NCz$ and DER / VOBC

  39. Employees CAGR = 1.9% Employees (*) June 30, 2003

  40. … Creating Efficiency to our CustomersInternet Banking 1st Semester 2003 Transactions: 204 Million Customers: 2.9 Million

  41. Efficiency Ratio(¹) Great efforts to optimize the operational expenses and increase the efficiency (*) 1stSemester 2003

  42. Market Growth Focus Changes in the Approach AnticipatingScenariosBefore and After Real Plan 1994 1990 2003 Target Planned Growth Shareholder Value Operational To perform well! To perform efficiently!

  43. Market Segmentation Structure Banco Itaú Holding Financeira Banco Itaú-BBA Banco Itaú Large Corporations Private Investments > R$ 1 Million Personnalité Itaú Income > R$ 5,000 Public Sector Medium Companies R$ 10 Million < Annual Sales < R$ 100 Million Individuals Income > R$ 2,000 • Premium • Investor • Undertaker Small Companies R$ 500Tthousand < Annual Sales < R$ 10 Million “Individual” Very Small Companies Annual Sales < R$ 500 Thousand Card Holder Individuals Companies Specialized Structures With Account Managers Without Account Managers

  44. Loan Operations (*) R$ Million By Segment 06/30/03 03/31/03 06/30/02 Variation % Jun/03 – Mar/03 Variation % Jun/03 – Jun/02 Large Companies Very Small, Small and Medium Companies Individuals Credit Card Real Estate Indiv. Comp. - TOTAL 19,172 3,400 6,924 2,758 2,411 175 34,839 25,830 4,077 9,672 2,809 2,096 102 44,586 27,492 4,262 9,751 2,618 2,154 113 46,390 -6.0% -4.3% -0.8% 7.3% -2.7% -9.7% -3.9% 34.7% 19.9% 39.7% 1.9% -13.0% -41.4% 28.0% R$ Million By Currency 06/30/03 03/31/03 06/30/02 Variation % Jun/03 – Mar/03 Variation % Jun/03 – Jun/02 15,187 31,203 46,390 10,962 23,877 34,839 Foreign Currency Local Currency Total 13,412 31,174 44,586 -11.7% -0.1% -3.9% 22.3% 30.6% 28.0% (*) Includes Guarantees

  45. Changes in the Approach Personnel Generic Specialization AnticipatingScenariosBefore and After Real Plan 1994 1990 2003 Target Planned Growth Shareholder Value Operational To perform well! To perform efficiently! Market Growth Focus

  46. ‘ 41.1% Evolution of Employees Scholar Level

  47. Changes in the Approach Remuneration Fixed Structure Performance Related AnticipatingScenariosBefore and After Real Plan 1994 1990 2003 Target Planned Growth Shareholder Value Operational To perform well! To perform efficiently! Market Growth Focus Personnel Generic Specialization

  48. Remuneration – Variable and Fixed Variable 18.7% 81.3% Fixed

  49. Changes in the Approach Risks Avoid Manage AnticipatingScenariosBefore and After Real Plan 1994 1990 2003 Target Planned Growth Shareholder Value Operational To perform well! To perform efficiently! Market Growth Focus Personnel Generic Specialization Remuneration Fixed Structure Performance Related

  50. After 1994 Before 1994 Government Controlled Free Market Market Risk Interest Currency Sovereign Risk

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