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Alfredo Setubal Investor Relations Director

New York March 1 st , 2007. Alfredo Setubal Investor Relations Director. International Presence. Member of Dow Jones Sustainability Indexes 06/07 • 7th consecutive year • Only Brazilian Bank on the Index. Best Brazilian Bank 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1999, 1998.

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Alfredo Setubal Investor Relations Director

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  1. New York March 1st, 2007 Alfredo Setubal Investor Relations Director

  2. International Presence Member of Dow Jones Sustainability Indexes 06/07 • 7th consecutive year • Only Brazilian Bank on the Index Best Brazilian Bank 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1999, 1998 Best Brazilian Bank 2005, 2004, 2003, 2002, 1999 Best Brazilian Bank 2004, 2003, 2002, 2000, 1999 Itaú stock is negotiated on the São Paulo, Buenos Aires and New York Stock Exchanges R$ Million December 31th, 2006 Assets Stockholders’ Equity Foreign Branches 6,754 1,867 Itau Bank 4,478 1,202 Banco Itaú Europa 8,751 1,240 Banco Itaú Buen Ayre 1,442 218 Itaú BBA & subsidiaries 13,826 2,250 Consolidated 31,264 7,745

  3. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • ADR’s Evolution • Creation of Shareholder Value

  4. Highlights Evolution of Stockholders’ Equity and Net Income R$ Million Jan/90 to Dec/06 Dividends: R$ 10.9 Billion Increase of Capital: R$ 0.1 Billion Argentina Crisis Real Devaluation Attack to WTC 6,195(*) Brazilian Election Period CAGR(90-06) = 15.9% Russian Crisis Asian Crisis CAGR(90-05) = 21.9% Mexican Crisis Real Plan Collor Plan Adaptability to Different Scenarios (*) Recurring Net Income

  5. Highlights Itaú: Credit Ratings A long and consistent performance record is reflected in the ratings awarded by international risk classification institutions • Consistent strong financial performance • Operational efficiency • Significant international presence, cutting back domestic volatility • Strong capitalization and provisioning • Equity quality SHORT TERM LONG TERM B BB+ International brA-1 brAA+ Domestic SHORT TERM LONG TERM Financial Strength = C International BR-1 Aaa.br Domestic Investment Grade in: • Portugal since 2000 • Cayman since 2006 SHORT TERM LONG TERM International B BB+ Domestic F1+(bra) AA+ (bra)

  6. Highlights Assets (R$ Billion) Stockholders’ Equity (R$ Billion) 38.7% 51.3% Credit Operations (R$ Billion) Growth of Deposits and Asset Management (in R$ billions) 38.2%

  7. Highlights Banking Services Fees + Insurance, Pension and Cap.Revenues (in R$ billions) Financial Margin (in R$ billions) CAGR = 22.2% 27.8% 20.0% CAGR = 17.4% 10.2 8.5 7.0 5.8 5.0 4.3 3.9 Net Income (in R$ billions) Non-interest Expenses (in R$ billions) 22.6% 6.5 CAGR = 12.7% CAGR = 23.9% 17.1% Itaú Itaú + BKB Insurance, Pension & Cap.

  8. Highlights Average ROE (%) BIS Ratio (%) +0.2 p.p. -12.6 p.p. Average ROA (%) Efficiency Ratio (%) -1.2 p.p. -2.7 p.p.

  9. Highlights Branches+CSBs ATMs 6.6% 4.9% Employees Internet Banking Clients (In million) 17.4% 13.0% 59,921 51,036 45,316 Itaú Itaucred

  10. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • ADR’s Evolution • Creation of Shareholder Value

  11. 4thQ. Results 1.Results: • Q4/06: Recurring Net Income of R$ 1,628 million, 2.3% increasecompared to Q3/06; annualized ROE of 28.8%. (Full Year 2006: Net Income of R$ 6,195 million and ROE of 32.6%). • Q4/06: Net Income of R$ 1,280 million (Year 2006: Net Income of R$ 4,309) 2.Effects of BankBoston (BKB) acquisition in Brazil, Chile and Uruguay • Payment – Capital increase in Itaú (R$ 5,954 million), transferring common and preferred shares to Bank of America (7.44% of the total capital of Itaú). • Effects of BKB acquisition amounted R$ 2,171 million, net of tax effects. 3.38.2% growth in credit portfolio during 2006, including BKB, and of 24.7%, not considering BKB. • Vehicles: 64.7% in 2006 and of 14.3% in Q4/06. • Small and Medium Sized Companies: 59.9% (including BKB), 22.4% (excluding BKB) and 3.5% in Q4/06. • 5.3% delinquency ratio as of December 31, 2006, stable Q-Q. • .

  12. 4thQ. Results Non-recurring Effects – After Tax R$ Million 1 For more details, see page 4 of Management Discussion and Analysis Report. 2For more details, see Notes to Financial Statements 2a and 21i.

  13. 4thQ. Results R$ Million (Except where indicated) 1 Based on the average quotation of the last trading day in the period. It includes the number of shares related to BKB Chile and Uruguay acquisition. 2

  14. 4thQ. Results Itaú Holding Pro Forma R$ Million (Except where indicated)

  15. 4thQ. Results Credit Operation by Client Type R$ Million (Except where indicated) Not considering BKB contribution, total loans reached R$ 84,497 million, an increase of 24.7% in 2006. 1 Rural and Mortgage Loans – Loans linked with the balances of Demand and Savings Deposits.

  16. 100% 90% 28.6% 29.6% 29.8% 31.9% 32.9% 32.4% 34.8% 37.6% 39.0% 80% 70% 6.3% 6.2% 6.4% 6.3% 6.7% 6.9% 7.2% 60% 7.6% 8.5% 18.8% 21.8% 22.0% 19.1% 18.9% 18.7% 50% 19.0% 18.4% 18.2% 40% 30% 45.5% 42.8% 43.2% 41.5% 42.0% 41.8% 20% 38.9% 36.4% 34.3% 10% 0% Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Individuals Small and Medium-Sized Companies Mandatory Loans Corporate 4thQ. Results Credit Portfolio Break down

  17. 8.3% 8.1% 8.1% 5.3% 5.2% 5.1% 2.2% 2.1% 1.6% Jun/06 Sep/06 Dec/06 4thQ. Results Delinquency and Coverage Ratios Delinquency Ratios Delinquency Ratio - Global Delinquency Ratio - Individuals Delinquency Ratio - Companies (*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

  18. 4thQ. Results Delinquency Ratio (NPL) by Segment R$ Million

  19. 4thQ. Results Funding R$ Million (except where indicated) 1 Includes Repurchase Agreement – Own Issue Securities

  20. 4thQ. Results Banking Service Fees R$ Million (Except where indicated) Not considering BKB, Banking Service Fees reached R$ 8,718 million in 2006, increase of 12.7% compared to 2005. 1Investment Funds and Consortium.

  21. 4thQ. Results Non Interest Expenses R$ Million (Except where indicated) Not considering BKB, Non Interest Expenses reached R$ 11,470 million in 2006, increase of 9.7% compared to 2005. 1 It does not include PIS, COFINS and ISS

  22. 4thQ. Results Efficiency Ratio 1 50.3% 47.6% 1 For further details on the criteria used, see slide 4.

  23. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • ADR’s Evolution • Creation of Shareholder Value

  24. Mortgage Housing Financing in Brazil – 3 Time Periods Number of Financed Houses (thousands) I – BRAZILIAN MIRACLE II – CRISIS III – REAL PLAN • Hyper inflation • High default rate on loans • Weak regulatory framework for mortgage loans • Interest rate mismatch • End of BNH in 1986 • Strong Economic Growth • Creation of BNH (National Habitation Bank) in 1966 • Macroeconomic stability (Real Plan - 1994) • High interest rate • Improved regulatory framework Years Source: BNDES

  25. Mortgage Mortgage Loan as a Percentage of GDP BRAZIL Source: Central Bank Data, Merrill Lynch estimates Note: Most data end-2005, some end 2004

  26. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • ADR’s Evolution • Creation of Shareholder Value

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

  28. Strategy by Segment Highlights of Pro Forma Segments R$ Million (Except where indicated) 1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

  29. Strategy by Segment Highlights of Pro Forma Segments R$ Million (Except where indicated) 1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

  30. Strategy by Segment Interest Rate Sensitivity R$ Million (Except where indicated)

  31. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • Retail • Personnalité • Itaú BBA • Itaucred • ADR’s Evolution • Creation of Shareholder Value

  32. Strategy by Segment Number of Clients (in thousands) 19,269 723 16,648 500 3,226 13,461 12,864 11,878 1,963 3,159 10,872 - 1,917 1,747 1,900 1,865 2,108 1,963 10,410 9,738 9,491 9,914 8,886 8,134 Dec / 01 Dec / 02 Dec / 03 Dec / 04 Dec / 05 Dec / 06 Account Holders Saving Accounts Non-Account holders - Taií Non-Account holders - Credit Cards Non-Account holders - Insurance and Pension Non-Account holders - Auto-finance and Mortgage Loans Total

  33. Strategy by Segment - Insurance Market Share(*) Insurance Pensions (*) Insurance = Total Premium (Insurance + LGFB + Health). Pensions = Provisions for Pension Operations.

  34. Strategy by Segment Number of branches opened since 2002 and forecast for 2007 Growth of 18% since 2002 until 2007

  35. Strategy by Segment - 2007 Outlook Banco Itaú S.A. • Small reduction in delinquency ratio. • Efficiency ratio improvement. • 20% - 25% growth in credit portfolio. • 10% growth in Banking Service Fees (15% in Itaú Holding). • Opening of 130 branches. • Expansion the operations in Argentina, Chile and Uruguay.

  36. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • Retail • Personnalité • Itaú BBA • Itaucred • ADR’s Evolution • Creation of Shareholder Value

  37. Strategy by Segment Number of Personnalité branches (*) (*) In 2006 includes 66 branches of BankBoston.

  38. Strategy by Segment Number of Personnalité Clients 419.182 180.780

  39. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • Retail • Personnalité • Itaú BBA • Itaucred • ADR’s Evolution • Creation of Shareholder Value

  40. Strategy by Segment Growth of Investment Banking Operations – Equities Equity Transactions 1 Transactions in 2006 IPOs 3rd place in number and volume of transactions 10 Global Coordinator and Joint Bookrunner R$ 627 Million Global Coordinator andJoint Bookrunner R$ 401 Million Global Coordinator and Joint Bookrunner R$ 454 Million 6,815 4 4,626 Global Coordinator and Joint Bookrunner R$ 927 Million Global Coordinator and Joint Bookrunner R$ 529 Million Global Coordinator and Joint Bookrunner R$ 460 Million Follow-ons 4 1,984 Joint Bookrunner R$ 800 Million Joint Bookrunner R$ 1,345 Million Sole Global Coordinator and Joint Bookrunner R$ 609 Million 2004 2005 2006 YTD Joint Bookrunner R$ 663 Million Number of transactions Volume (R$ Millions) Source: Prospects of offers with 100% credit to bookrunners. Note 1 : Until November 29th, 2006

  41. Debênture Coordenador R$ 250 milhões NP Coordenador Líder R$ 800 milhões Strategy by Segment Growth of Investment Banking Activity – Fixed Income Fixed Income Transactions Selected Transactions in 2006 2nd place - Anbid Fixed Income 26 19 19 Debenture Lead Coordinator R$ 350 Million Debenture Coordinator R$ 500 Million Debenture Coordinator R$ 700 Million Debenture Coordinator R$ 1.1 billion Debenture Lead Coordinator R$ 510 Million Debenture Coordinator R$ 2.2 Billion Number of transactions Volume (R$ Millions) Source: Anbid, with 100% credit to coordinator FIDC Transcations Debenture Lead Coordinator R$ 220 Million 8 3 NP Coordinator R$ 374 Million NP Lead Coordinator R$ 570 Million CRI Lead Coordinator R$ 74 Million 1st place - Anbid FIDC 2006 Lead Coordinator R$ 650 Million 2006 Lead Coordinator R$ 900 Million Number of transactions Volume (R$ Millions) Source: Anbid, with 100% credit to coordinator

  42. Strategy by Segment Growth of Investment Banking Activity – M&A M&A Transactions1 Selected Transactions in 2006 3rd place in number of transactions Financial Advisor in the incorporation of Vivax by Net US$676 Million Financial Advisor in the sale of control of Companhia Luz e Força Santa Cruz to CPFL Energia S.A. US$92 Millions Financial Advisor in the sale of control of Fertibrás to Yara InternationalUS$339 Million Financial Advisor to Cataguazes in reorganizing its generation and distribution assets US$184 Million Financia Advisor to Suzano Petroquímica, Sumitomo and Itochu in the sale of a share of 62.2% in PolitenoUS$251 Million Financial Advisor to Whirlpool Corporation in reorganizing its assets in BrazilUS$352 Million Financial Advisor to CEMIG, Andrade Gutierrez, JLA Part. and Pactual in the acquisition of Light US$2,102 Million Financial Advisor to Gerdau in tag along offer of Aços VilaresUS$ 192 Million Source: Thomson Financial. Notes: 1 Until October 27th, 2006

  43. Strategy by Segment - 2007 Outlook Banco Itaú BBA S.A. • Focus on Investment Banking activities. • Continuous improvement of market risk management. • Continuous improvement of service fees. • Consolidation of Corporate clients portfolio in Argentina, Chile and Uruguay. • Slight reduction in the credit portfolio.

  44. Highlights • 4thQ. Results • Mortgage • Strategy by Segment • Retail • Personnalité • Itaú BBA • Itaucred • ADR’s Evolution • Creation of Shareholder Value

  45. Segmented Business – Auto Finance (in R$ billions) Auto Finance Balance Growth (*) CAGR:62.2% (*) Does not include BankBoston. Market Share - Veihcles (Estimated from Jan to Sep.)

  46. Segmented Business – Credit Cards Growth of Credit Card Revenue (*) R$ Million Balance of Credicard prior to increase in Itaú’s equity stake from 33% to 50% (*) Does not include BankBoston.

  47. Segmented Business Taií Stores 834 650 167

  48. Segmented Business (in R$ billions) Balance of Loans - Taií

  49. Segmented Business – Auto Finance Growth of Associated Stores - Auto Finance (in numbers of) CAGR:26.8%

  50. 2007 Outlook Itaucred Taií • 100 new sales points. • 50% growth in credit portfolio (not including payroll loans). • Efficiency ratio improvement. • Delinquency ratio improvement. • On the 4Q/07,we wait to reach break-even of the threeoperation (FIC, FAI and FIT). Vehicles • 40% growth in vehicles financing and leasing portfolio. • Efficiency ratio improvement. • Maintenance of delinquency ratio. Credit Card • 20% growth in billing. • Maintenance of delinquency ratio.

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