UBS Global Financial Services Conference May 10-12, 2004 Presentation to: UBS Global Financial Services Conference Banco Itaú Holding Financeira S.A. Alfredo.

UBS Global Financial Services Conference

May 10-12, 2004

Presentation to:UBS Global Financial Services Conference

Banco Itaú Holding Financeira S.A.

Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

2UBS Global Financial Services Conference

Stockholders’ Equity, Net Income and Market Capitalization

11,879

9,0367,578

6,6425,9074,6514,1983,842

3,3373,150

30,453

18.11619.582

17.834

6,7866,2754,978

3,270 3,160

21,297

393 343

592721

2,389 2,377

3,152

880

1.8411,869

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-030

400

800

1,200

1,600

2,000

2,400

2,800

3,200

Stockholders' Equity

Market Capitalization

Net Income


R$ Million

March 2004Net Income: R$ 876 million

Stockholders´ Equity: R$ 12,478 millionMarket Capitalization: R$ 31,227 million


Points of Sale

1,902 1,841

2,5402,642

3,189 3,192 3,146

18,071

14,579

11,21810,283

7,8887,450

20,133

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

BFB

ATMs

Branches+CSBs


mar/04


154

441

344

11179

514142

222

1,998

3,157

1,427

1,121

813

477284141

2,598

0

50

100

150

200

250

300

350

400

450

500

1995 1996 1997 1998 1999 2000 2001 2002 2003

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

Transactions (million)

Customers (thousand)

Internet Banking


1st Quarter 2004Transactions: 128 million

Customers: 3.3 million


9.1

3.6

5.5

6.5

7.4

8.8 9.1

BFB

Growth in number of CustomersWith acquisitions


In Million


Agenda

Results - Banco Itaú Holding Financeira

Results - Banco Itaú

Results - Banco Itaú BBA

Important Facts - Banco Itaú Holding Financeira


Sustained Stability

Control of inflation through monetary policy

Adjustment in the external accounts

Fiscal Austerity

Measures taken for Generating Growth

Gradual decline in interest rates (SELIC)

Continuing trade balance surplus

Primary Surplus

Change in the public debt profile: reduction in foreign currency exposure

Enhanced government payment capacity

Other initiatives: Social Security Reform, Reform of the Judiciary System and Tax Reform, the Bankruptcy Law, new rules for home mortgage finance, new regulatory framework for the electricity sector


Brazilian Scenario


Business

Concentration on businesses with a greater spread

Credit

Personal credit: consortium, credit cards and vehicle financing

Small Business: Retail - UPJ and Middle Market

Dilution of Business Risk and Diversification

Treasury Equilibrium between Private

and Public Securities

High level of capitalizationNew

opportunities

Acquisitions of New Businesses

Share Buyback Program

Dividends

Focus on Profitability

Insurance, Capitalization and Private Pension Plans

Emphasis on Life and Pension Plans

Market leader in home insurance

International Presence (US$ 2.4 bi)

New London Branch

Financing of Brazilian companies overseas

Support for Trade Finance operations



Controls

Cost Reduction/ Administrative Expenses

Zero Base Budget Internal Campaign: “How much does it

Cost?” Rational use of available resources

Risk Management

Allocated Capital

Corporate Governance

Monitoring Preparation of database for Basel II

Sophisticated Management Models Fixing Return on Allocated Capital adjusted

to the risk of each company

Best Market Practices Control: Audit, Disclosure, Negotiation

Committees and Advisory Boards Increased independence (new outside board

members)




1. Sustainable result in the quarter (diversification of income sources), with little influence of non-recurrent items:

– Efficiency Ratio below 50% for the 6th consecutive quarter (strict cost control);

– Consistent growth of banking service fee revenue above IGP-M.

2. Conservative Account Procedures:

– Exceeding Provision for Loan Losses: R$ 1 billion (Mar. 31, 04);

– Market x Book Value: R$ 2.9 billion (Mar. 31, 04), mainly Securities (R$ 1.5 billion) and BPI (R$ 700 million);

– Unrecognized tax credits amounted to the limit (R$ 234 million).

3. Growth in credit portfolio: companies (micro, small and medium-sized companies) and retail:

4. Reduction in credit portfolio non-performing loan ratio (4%)

5. Solvency Ratio (BIS Ratio) above minimum required (19.8% - March 31 2004)

6. Largest Market Capitalization among Latin American banks (R$ 31.2 billion)

7. Growth in Monthly Dividends: R$ 0.13 to R$ 0.17 per one thousand shares

Results


R$ Million (Except where indicated)

876

7.68

12,478

31.2%

126,979

2.8%

2,426

31,277

19.8%

48.8%

4.0%

Net Income

Net Income per 1,000 shares

Stockholders’ Equity

ROE (%)

Total Assets

ROA (%)

Net Interest Margin

Market Capitalization

BIS Ratio (%)

Efficiency Ratio (%)

NPL Ratio (%)

4th Q./03

854

7.49

11,879

32.0%

118,738

2.9%

2,754

30,453

19.8%

49.5%

4.1%

714

6.26

9,983

31.8%

113,098

2.5%

2,965

19,998

19.7%

40.8%

4.2%

1st Q./04 1st Q./03


Highlights


Financial Ratios

2.6 2.9 2.1 2.7 2.8

31.5

26.3 26.5

31.2

14.416.9

19.8 19.8

27.7

18.4

0

5

10

15

20

25

30

35

Dec-00 Dec-01 Dec-02 Dec-03 Mar-04

Net Income / Assets (ROA) Net Income / Stockholders' Equity (ROE) BIS Ratio



32,068

48,995

69,555

118,738126,979

81,807

18,25924,445

51,91146,357

111,141

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Mar-04

R$ Million

Asset Evolution


CAGR: 23.3%


(*) March 31, 2004


Credit Operations

16,890

38,871

19,596

27,253

34,282

44,581 44,756

14,058

23,674

29,615

38,65938,419

45,414

16,916

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1998 1999 2000 2001 2002 2003 2004 (*)

Credit Operations Credit Operations and Guarantees

Loan OperationsLease OperationsCredit CardsAECOtherSub-totalGuaranteesTotal

32,4181,2943,1711,622

15338,689

5,92344,581

Dec.03

32,6981,5712,9591,509

13438,871

5,88544,756

Mar.04

R$ Million

CAGR: 20.4%

CAGR: 21.4%


Corporate

Small and Medium- Sized Companies

Individuals

Subtotal

Real Estate Financing

Total

24,442

7,312

12,369

19,681

2,267

46,390

-2.6%

11.7%

4.2%

6.9%

-3.4%

1.6%

21,771

7,900

13,089

20,989

1,997

44,756

22,357

7,074

(**) 12,563

19,637

2,066

(**) 44,061

-10.9%

8.0%

5.8%

6.6%

-11.9%

-3.5%

Var Mar/04x Dec/03 Mar 31, 04 Mar 31, 03 Dec 31, 03 Var Mar/04

x Mar/03

(*) Endorsements and Sureties included.(**) The values of Dec. 31, 03 were adjusted excluding R$ 520 million in loans made on 12/18/2003 to

Rio de Janeiro’s public employees, which were totally settled on 01/05/2004.


R$ Million

Credit Operations (*)


R$ 31.20 R$ 30.20 R$ 32.30 R$ 32.70

R$ 13.40R$ 12.50

R$ 12.20 R$ 12.10

R$ 31.20

R$ 15.20

R$ 0.00

R$ 5.00

R$ 10.00

R$ 15.00

R$ 20.00

R$ 25.00

R$ 30.00

R$ 35.00

R$ 40.00

R$ 45.00

R$ 50.00

Mar-03 Jun-03 Sep-03 Dec-03 Mar-04

Local Currency Foreign Currency

R$ 46.4 R$ 44.6 R$ 42.7 R$ 44.6 R$ 44.8

(US$ 4.6) (US$ 4.5) (US$ 4.7)(US$ 4.3) (US$ 4.1)

(*) Endorsements and Sureties included.


In Billion

Credit Operations by Currency (*)


1,406 1,5101,692

1,853 1,9532,196

2,5152,332 2,285 2,234

2,378 2,2572,103

630680

680

715715

715

747841 843 848

913906

1,000

3,172 3,128 3,082

3,2903,163 3,103

2,911

3,262

2,6682,568

2,372

2,1902,036

Mar.01 Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 mar.03 jun.03 set.03 dez.03 mar.04

Provision for Loan Losses

Total Provision Exceeding Provision Minimum Provision


R$ Million


Nonperforming Loans Ratio (%)

1.9

4.04.1

4.74.74.24.2

10.7

8.5

7.37.3

8.9

8.3

1.52.0 2.4 2.5

2.2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04

Nonperforming Loans Ratio – TotalNonperforming Loans Ratio – IndividualsNonperforming Loans Ratio – Businesses

Coverage Ratio (*)

198%189%

173%

189% 198% 202%

0%

50%

100%

150%

200%

250%

dez/02 mar/03 jun/03 set/03 dez/03 mar/04

(*) Provision Balance / Total Nonperforming Loans

Nonperforming Loans and Coverage Ratio



1st Q./04

328

17

92

289

62

57

164

244

24

129

1,405

4th Q./03

335

18

88

259

37

59

144

250

24

128

1,343

Mutual Fund Management Fees

Administration of Consortium

Collection

Current Account Services

Tax Collection

Interbank Fees

Credit Operations

Credit Cards

Income from Guarantees Provided

Other Services

Total

1st Q./03

282

1

73

247

46

49

133

236

29

116

1,212


R$ Million

Banking Service Fees


Personnel Expenses

Other Administrative Expenses

Reorganization

Total

694

1,235

79

2,009

725

1,277

104

2,107


R$ Million

Administrative Expenses

1st Q./04 4th Q./03

Administrative Expenses under Strict Control


58.456.6 56.3

59.7

55.7 56.3 55.0 54.456.1 55.7

50.4

41.5 40.8

46.7 47.649.5 48.859.5%

55.0%

48.2%

54.1%

Not considering the 4th Q./02 and 1st Q./03, since we consider this criteria indicates better the recurrent efficiency.

Efficiency Ratio (%)



Total Unrealized

Interbank Deposits

Securities and Derivatives

Exceeding Provision

Adjust. of Securities Available for Sale

Adjust. of Securities Held to Maturity

Credit Operations

Investments (basically in BPI)

Time and interbank dep. and funds from accept. and Issuance of securities abroad

Securitization of payment orders abroad

Subordinated Debt and Treasury shares

Unrealized Income / (Loss) (1) (2)Result Equity

March 2004

2,919 2,279

9

1,512

545

712

255

399

697

75

109

119

9

693

545

-

148

399

697

75

109

298

Result Equity

December 2003

2,677 2,048

10

1,556

545

758

253

319

627

33

74

58

10

688

545

-

143

319

627

33

74

297

(1) Tax effects not considered.(2) Includes unrealized gains to minority interest amounting to R$ 336 million in March and R$ 307 million in December and R$ 286

million in March and R$ 257 million in December on Stockholders’ Equity.

Financial Instruments - Market ValueR$ Million



• The following slides show the pro forma information about Banco Itaú and

Banco Itaú BBA operations, using internal data for a better disclosure of the

managerial performance of the business units.

• In 2003, it was considered as if the integration process between Banco Itaú

BBA and the corporate segment of Banco Itaú occurred in the beginning of the

year.

Pro Forma



Banco

Itaú

601

7,213

37.7%

22,985

101,881

Banco

Itaú-BBA

215

3,104

30.7%

22,030

31,130

Net Income

Allocated Capital Tier I

ROE (%)

Credit Operations (*)

Total Assets

Banco

Itaú

651

6,479

46.7%

22,224

95,079

Banco

Itaú-BBA

48

2,924

6.7%

22,468

30,233

March 2004 December 2003

(*) Endorsements and Sureties included.


R$ Million

Pro Forma

Corpo-

ration

155

2,477

27.4%

-

5,680

Corpo-

ration

60

2,162

11.6%

-

4,620

Note: The Consolidated doesn’t represent the sum of the parts since there are operations among related parties, eliminated only in the Consolidated.


Agenda






Variation

-9.6%

30.9%

5.2%

-4.3%

30.8%

-39.0%

-7.7%

11.3%

-

Net Interest Margin

Result from Loan Losses

Banking Service Fees


Income Tax and Social Contribution

Other

Net Income

Allocated Capital Tier I

ROE (%)

1st Q./04

2,047

(352)

1,356

(1,928)

(272)

(250)

601

7,213

37.7%

4th Q./03

2,264

(269)

1,289

(2,015)

(208)

(410)

651

6,479

46.7%

Banco Itaú S.A.

R$ Million

Pro Forma


Banco Itaú S.A.

4th Quarter of 2003

57%

7%

16%

20%

Banco Itaú - BankingCredit CardsInsurance, Capitalization and Pension PlansMutual Funds and Managed Portfolio

1st Quarter of 2004

52%

6%

21%

21%

Banco Itaú - BankingCredit CardsInsurance, Capitalization and Pension PlansMutual Funds and Managed Portfolio

Diversification of income sources Not only restricted to interest rates

Consolidated Net Income


2,821 3,3523,991

4,9075,526

612

923906

902927

977957

1,0211,077

1,1341,168

1,2361,225

2,459

569

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000


Technical Provisions - Pension Plans AGF

Technical Provisions - Capitalization Technical Provisions - Insurance

4,4034,804

5,388

6,086

7,689

Banco Itaú S.A.

Growth of 96% in Technical Provisions of Pension Plans from March 2003 to March 2004

R$ Million

Technical Provisions of Insurance,Capitalization and Pension Plans

8,320


1st Q./03 4th Q./03 1st Q./04

102Result of Insurance, Capitalization and

Pension Plans 136124

94.7%Combined Ratio 97.8%94.8%

52.8%Claim Ratio 56.8%55.0%

893

(345)

(78)

(336)

11

• Insurance Premiums, Pension Plan

Contributions and Premium Bonds Revenues• Changes in Technical Provisions• Selling Expenses • Insurance Claims, Pension Plan Benefits

and Premium Bonds Redemption• Other Operating Income/(Expenses)

1,622

(968)

(93)

(412)

34

1,373

(593)

(96)

(529)

30

184Operating Margin 144186

185

(125)

(71)

3

Financial Income


Income Tax and Social Contribution

Other

176

(201)

(56)

(1)

165

(165)

(64)

2

Banco Itaú S.A.

R$ Million

Insurance, Capitalization and Pension Plans


Mutual Funds and Managed Portfolios

59.2 62.9 67.1 71.886.480.1


Growth of 37% in volume of Mutual Funds and Managed Portfolios in relation to March 2003

Banco Itaú S.A.

Assets under Management

R$ Billion


Agenda






1st Q./04

256150

49(79)(88)(72)215

3,10430.7%

4th Q./03

340(172)

54(92)(15)(67)

482,9246.7%

Net Interest MarginResult from Loan Losses (*)Banking Service FeesAdministrative ExpensesIncome Tax and Social ContributionOtherNet IncomeAllocated Capital Tier IROE (%)

Variation

-24.7%-187.2%

-9.3%-14.1%486.7%

7.5%347.9%

6.2%-

Banco Itaú BBA

R$ MillionPro Forma

Normalized Net IncomeNet Income(*) Provisions constituted in the 4th Q/03

and reverted in 1st Q/ 04, net of taxes.Normalized Net IncomeROE (%)

215

(46)169

23.6%

48

4694

13,5%

347.9%

-79.8%


Mar 31, 04

245

17,361

1.4%

Nonperforming Loans (NPL)

Credit Operations

NPL Ratio (%)

Dec 31, 03

211

17,864

1.2%

Variation

34

(503)

Itaú BBA has a high quality credit portfolio with 95.3% of volume

classified as “AA”, “A” and “B”.

Banco Itaú BBA

R$ Million

Nonperforming Loans


Agenda






Creation of the Audit Committee (approved in the General Ordinary

Shareholders Meeting);

Election of Mrs. Tereza Grossi to the Board of Directors as the

Financial Expert of the Audit Committee (approved in the General

Ordinary Shareholders Meeting);

Stock Grouping approved by the Administrative Council:

- BOVESPA: 1,000 shares to 1 share

- NYSE: 2 ADRs to 1 Preferred Share


Important Facts


4.524.89

5.756.20 6.26

6.79 7.057.49 7.68

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

1st Q./02 2nd Q./02 3rd Q./02 4th Q./02 1st Q./03 2nd Q./03 3rd Q./03 4th Q./03 1st Q./04

Evolution of Net Income per 1,000 shares


CAGR = 30.4%

R$


Preferred Shares AppreciationEvolution of US$ 100 Invested from April 1994 to April 2004


0

200

400

600

800

1.000

1.200

94 95 96 97 98 99 00 01 02 03 04

Itaú (1)Itaú (2)Bovespa

Real Plan

Russian Crisis Real Devaluation

US$

Mexican Crisis

Asian Crisis

100

580

185

834

Argentine Crisis

Attack to WTC

Itaú(1) Itaú(2) Ibov.

10 years 23.63% 19.22% 6.35%

5 years 16.80% 12.50% -0.52%

2004 -16.33% -18.34% -13.49%

Annual Average Appreciation in US$

(1) With reinvestment of dividends (2) Without reinvestment of dividends


Variables

Inflation

Interest Rate (SELIC)

Compulsory over Current Deposits

Compulsory over Saving Dep. (TR(***) + 6% p.a.)

Reduction of Spreads

Growth in Volumes

Controlled Expenses

Scenario (*)

6.1% p.a.(**)

16.3% p.a.

45.0%

20.0%

Current

5.0% p.a.

12.0% p.a.

25.0%

20.0%

(**) Future expectations derived from this sensitivity analysis must consider the risks and uncertainties that involve any activities and are away from the control of the companies of the conglomerate (politic and economic changes, volatility in interest rates and exchange, technology changes, inflation, financial disintermediation, competitive pressures over the products and prices and changes in the applicable regulations).

(***) Interest Reference Rate.


Sensitivity Analysis

(*) Estimated.


• Retail Funds

• Branches

• Personnalité

• Small and Middle Companies

• Credit Cards

• Vehicles Financing

• Insurance, Pension Plans and

Capitalization


Sensitivity Analysis


R$ Million

Resources 100 100 100 116 94 81

Current Situation Scenario (*)

Average Balance

Financial Margin

Spread Average Balance

Financial Margin

Spread

Loans - Individuals 100 100 100 152 98 60

Loans - Businesses 100 100 100 148 90 57

Real Estate Credit 100 100 100 150 150 100

Banking Service Fees 100 115

Total Revenues 100 101

Insurance Products 100 164

Provisions 100 128

Expenses 100 113

Net Income before tax 100 87(*) Future expectations derived from this sensitivity analysis must consider the risks and uncertainties that involve any activities and are away from the control of the

companies of the conglomerate (politic and economic changes, volatility in interest rates and exchange, technology changes, inflation, financial disintermediation, competitive pressures over the products and prices and changes in the applicable regulations).



(*) Future expectations derived from this sensitivity analysis must consider the risks and uncertainties that involve any activities and are away from the control of the companies of the conglomerate (politic and economic changes, volatility in interest rates and exchange, technology changes, inflation, financial disintermediation, competitive pressures over the products and prices and changes in the applicable regulations).

R$ Million

Resources 100 100 100 116 94 81

Current Situation Scenario (*)

Average Balance

Financial Margin

Spread Average Balance

Financial Margin

Spread

Loans - Individuals 100 100 100 152 98 60

Loans - Businesses 100 100 100 148 90 57

Real Estate Credit 100 100 100 150 150 100

Banking Service Fees 100 115

Total Revenues 100 101

Insurance Products 100 164

Provisions 100 128

Expenses 100 113

Net Income before tax 100 87


Return on Capital maintained over

20%

UBS Global Financial Services Conference

May 10-12, 2004

Presentation to:UBS Global Financial Services Conference


Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

UBS Global Financial Services Conference May 10-12, 2004 Presentation to: UBS Global Financial Services Conference Banco Itaú Holding Financeira S.A. Alfredo.

Documents

financeira slide

acquisitions banco ita

agenda results banco

board members banco

internet banking banco

electricity sector banco

mar04 slide

brazilian scenario slide