Presentation to: New York, November 18, 2005 Silvio de Carvalho Executive Director

1 Agenda  Brazilian Economy  Brazilian Banking System  Highlights  Strategy and In-depth Results  Performance of the Shares

2 Brazilian Macroeconomic Scenario  Floating exchange rate and outstanding adjustment in external accounts  Monetary policy: inflation expectation and growth  Fiscal policy: accomplishment of fiscal targets, even without IMF surveillance  Credit expansion: public sector crowding out  Baseline scenario  Brazil: towards investment grade

3 Recent overvaluation of the real Real exchange rate Nov/ Jan-84Jan-85Jan-86Jan-87Jan-88Jan-89Jan-90Jan-91Jan-92Jan-93Jan-94Jan-95Jan-96Jan-97Jan-98Jan-99Jan-00Jan-01Jan-02Jan-03Jan-04Jan-05 Effective basket92-93 averageR$/US$Euro Collor- Itamar Period Pegged currency Floating exchange rate Real Plan 3.5

4 Trade surplus continues to widen Trade surplus – accumulated in 12-months US$ billion Source: Central Bank of Brazil

5 Inflation target Source: IBGE CPI inflation and core inflation (% y-o-y)

6 Inflationary expectations converging back toward the target Median of market expectations for IPCA (%) Source: Focus Survey/Central Bank of Brazil

7 Growth resumption and recent convergence towards potential growth GDP growth accumulated in 4 quarters Fixed Investment/GDP (%) average 2005 – 19,4% average 2004 – 18.7% Itaú Forecast Source: IBGE 0.5% 2.4% 4.6% 4.3% 3.3% -1% 0% 1% 2% 3% 4% 5% 1998.II 1998.IV 1999.II 1999.IV 2000.II 2000.IV 2001.II 2001.IV 2002.II 2002.IV 2003.II 2003.IV 2004.II 2004.IV 2005.II 2005.IV

8 Primary surplus since 1998 Fiscal policy stance Source: Central Bank of Brazil Nominal DefictInterest PaymentsPrimary Surplus

9 Credit and Public Debt / GDP (%) Total Credit vs. Public Sector Debt % GDP Source: Brazilian Central Bank

10 Hypothesis:  Inflation expectations: 5.22% in 2005, 4.6% in 2006 and 4.5% in 2007 (Focus Survey on October 14, 2005)  Interest rate path: compatible with limiting aggregate demand acceleration in order to bring inflation to the target path  Exchange rate: the gradual decline in the real interest rate comes in tandem with a depreciation of the exchange rate in real terms  Primary budget surplus: constant at 4.25% of GDP  GDP linear growth trend: 3.0% in 2005 and 4.2% in 2006 and 2007 Baseline scenario

11 Investment grade The external indicators project the possibility of Brazil reaching an investment grade rating in 2007 (D/X = external debt/current account receipts equal to 1) Fiscal indicators lag behind, but by 2007 there is a chance that debt as % of GDP be in clear declining trend, qualifying Brazil to that rating US$ billion Primary surplus (% GDP)4.38%4.60%4.25% Public debt / GDP 57.2%51.8%52.3%53.8%51.8%48.9%46.7%44.7% Current account Total external debt (with inter cia) Gross Reserves Real GDP growth0.5%4.9%3.1%2.3%4.1%3.6%2.9%3.0% D/X Moody's

12 Agenda  Brazilian Economy  Brazilian Banking System  Highlights  Strategy and In-depth Results  Performance of the Shares

13 Brazilian Banking System Macro CharacteristicsMicro Scenario  Huge fixed costs  Cost reduction / efficiency  Strongly capitalized  Room for growth in credit  Satisfactory level of provisioning  Conservative approach  Advanced risk management  Advanced banking supervision; preparation for Basel II  Importance of banking service fees  Specific for each segment  Profitable  Target: to keep profitability in lower margins scenario  Oriented to services  Intensive use of technology, focused on self-service and Internet  All bills are paid in the banks  Huge transaction volumes  High spreads  Falling due to decline in interest rates  Dimension  Differentiated needs  High reserve requirements  High impact over spreads

14  Declining Interest Rates x Increasing Loan Demand: New Revenue Dynamics  Growing Fee Earnings and Tighter Cost Control To Offset Lower Treasury Gains  Focus on Higher-Yielding Consumer Finance and SME Lending  Efforts of Client Acquisition and Gains of Scale  Government Still Attracts Large Portions of the System ’ s Liquidity; Gradual Replacement of Bonds By Loans  Public Sector Banks Still Dominant: 45% of Deposits  More Aggressive Competition, Not Price Wars Current Scenario

15 Reserve Requirements (%) 53% 30% 23% 45% 20% Additional 8% remunerated by the Selic rate 20% remunerated by reference rate + 6% p.a. Additional 10% remunerated by Selic Remunerated by Selic rate 45% without remuneration

16 1.Citigroup 2.JP Morgan Chase 3.HSBC Holdings 4.Bank of America Corp. 5.Crédit Agricole Groupe 6.Royal Bank of Scotland 7.Mitsubishi Tokyo 8.Mizuho Financial Group 9.HBOS 10.BNP Paribas 19. UBS 93. State Bank of India 94. Banco Itaú 95. Erste Bank 107. Bradesco 133. Banco do Brasil 167. Unibanco December 2004 Assets 1,484 1,157 1,277 1,110 1,243 1, , ,234 1, US$ Billion 2 nd 7 th 4 th 10 th 5 th 9 th 12 th 3 rd 19 th 6 th 1 st 84 th 187 th 69 th 143 rd 131 st 251 st Rank BIS 11.9 % 12.2 % 12.0 % 11.6 % 10.4 % 11.7 % 11.8 % 11.9 % 11.8 % 10.3 % 13.6 % 13.1 % 20.6 % 10.7 % 18.8 % 13.7 % 16.3 % Index SE (1) US$ Billion ROA % 303 rd 745 th 373 rd 229 th 603 rd 458 th 695 th 675 th 465 th 606 th 700 th 407 th 18 th 647 th 219 th 200 th 125 th Rank (*) Source: The Banker Top July/05 (1) Stockholders’ Equity (Tier One Capital) 1.63 % 0.54 % 1.38 % 1.91 % 0.84 % 1.19 % 0.62 % 0.68 % 1.17 % 0.84 % 0.62 % 1.31 % 5.66 % 0.76 % 1.96 % 2.1 % 2.5 % The Banker Top 1000

17 Capital (Tier One) / Assets (%) Source: THE BANKER - Top 1000 – July 2005

18 Agenda  Brazilian Economy  Brazilian Banking System  Highlights  Strategy and In-depth Results  Performance of the Shares

% +12.6% +20.5% Highlights Assets (R$ Billion) Credit Operations (R$ Billion) Stockholders’ Equity (R$ Billion) Technical Provisions – Insurance, Pension and Capitalization (R$ Billion) +36,0%

% +28.6% +15.0% +38.3% Highlights Net Income (R$ Million) Non-interest Expenses (R$ Million) Banking Service Fees (R$ Million) Net Interest Margin (R$ Million)

21 Obs: Annualized quarterly indexes. Highlights ROE (%) ROA (%) BIS Ratio (%) Efficiency Ratio (%)

22 Highlights Branches+CSBs Internet Banking Clients (In million) ATMs Employees

23 Agenda  Brazilian Economy  Brazilian Banking System  Highlights  Strategy and In-depth Results  Performance of the Shares

24 Highlights 3. Additional Provisions:  Growth of the exceeding provision for Loan Losses of R$ 50 million, totaling R$ 1.2 billion;  Maintenance of Additional Provision for Securities Portfolio of R$ 400 million; 1. Results:  3 rd Q/05: Net Income R$ 1,352 million with increase of 1.4% q-o-q; ROE annualized 40.5%;  Jan/05 - Sep/05: Net Income R$ 3,827 million with increase of 39.4% comparing to Jan/04 – Sep/04; ROE annualized 34.8%; 4. Delinquency: Nonperforming Loans Ratio in 3.3%; 2. Growth of credit portfolio of 5.1% in the quarter.  Personal Loans: 10.1% in quarter.  Vehicles: 15.3% in quarter. 5. Solvency Ratio:  Maintenance of the high ratio of 17.6%, even after buyback of preferred shares totaling R$ 522 million on the quarter.

25 Evolution of Managerial NIM (%) (*) (*) After non recurring items adjusts totaling R$ 612 million described in Management Discussion and Analysis of 4 th Q/04.

26 R$ Million Itaú Holding Pro Forma

27 Exposure – Loans and Securities (*) Rural and Mortgage Loans – Loans linked to the availability of Demand and Savings deposits. Note: After a thorough reassessment of the customers profile and potential certain accounts were transferred between classifications. To allow a better comparison between periods, the new customer categorization was also considered for prior periods.

28 CAGR: 21.1% CAGR: 22.6% R$ Million Credit Portfolio (*) On September 30, 2005.

29 Change in the mix of the Credit Portfolio

30 Contribution of Credit Portfolio R$ Million

31 Nonperforming Loans Ratio and Coverage Ratio (*) Provision for Loan Losses / Total Nonperforming Loans (Loans overdue for more than 60 days)

32 Securities Adjust. market value Additional Provision Total (*) Values differ from the one published in note “Market Value” because they are net of the additional provision for securities. Additional Provision for Loan Losses (PDD) Financial Instruments: Market vs. Recorded Value (*) Conservative Accounting Practices R$ 456 million R$ 400 million R$ 3,5 billion 09/30/05 R$ 1,2 billion R$ 1,45 billion R$ 733 million R$ 400 million R$ 3,8 billion 12/31/04 R$ 1,0 billion R$ 1,67 billion R$ 678 million R$ 600 million R$ 3,8 billion 09/30/04 R$ 1,0 billion R$ 1,66 billion

33 Service Fees (1)Asset Management and Consortium. R$ Million

34 R$ Million (1) Includes R$ 93 million on 3 rd Q/05 due to collective labor agreement. (2) Does not include PIS, COFINS and ISS. (3) Includes vehicles, credit cards of non-account holders and Taií. Non-Interest Expenses

35 Efficiency Ratio Target: ratio below 50% (Personnel Expenses + Other Administrative Expenses + Other Operating Expenses + Tax Expenses except PIS/COFINS/ISS ) (Managerial Financial Margin (*) + Banking Service Fees + Partial Result of Insurance, Capitalization and Pension Plans + Other Operating Income - Tax Expenses of PIS/COFINS/ISS) Efficiency Ratio = (*) For better details about the Managerial Financial Margin, consult the Itau Holding´s Management Discussion and Analysis

36 Itaú CorporationItaucredItaú BBAItaubanco Segmentation

37 Highlights of Pro Forma Segments (1) Does not represent the sum of the parts because certain segments transactions were eliminated only at the Consolidated level. (2) Including Endorsements and Sureties. R$ Million

38 Itaú ItaucredItaú BBAItaubanco Banking Credit Cards (Account Holders) Insurance, Pens. Plans and Capitalization Resources Managed Segmentation Corporation

39 Itaubanco Pro Forma R$ Million Itaubanco

40 Net Income Pro Forma R$ Million Diversification of Income sources Itaubanco

41 Credit Cards – Account Holders Pro Forma R$ Million Itaubanco

42 Insurance, Pension Plans and Capitalization Pro Forma R$ Million Itaubanco

43 Assets under Management and Technical Provisions Growth of 19.7% in the volume of Funds and Portfolios under Management and 36% in the volume of Technical Provisions in relation to Sep/2004 R$ Billion Technical Provisions of Insurance, Pension Plans and Capitalization Volume of Mutual Funds and Portfolios under Management Itaubanco

44 Strategies and Priorities Specialization, diversification and high quality of products and services rendered. Streamlining of processes generating reduction of expenses; Growth of Insurance, Pension Plans and Capitalization operations; Cross-Selling; Focus in the credit cycle aimed at the sustainable growth; Itaubanco

45 Itaú CorporationItaucredItaú BBAItaubanco Corporate Operation Segmentation

46 R$ Million Itau BBA Pro Forma Itau BBA

47 Strategies and Priorities Cross-Selling: explore synergies with Itaú, improving banking services offering such as payroll management and collection. Investment Banking: maintain the leadership in the local fixed income capital market, increase participation in the primary equity capital market, and intensify our focus in M&A operations, aiming to be the leader among local investment banks. International Area: support the internationalization process of Brazilian companies, offering products and services through Itaú’s conglomerate offshore structure. Itau BBA

48 Itaú CorporationItaucredItaú BBAItaubanco FIC 50% CBD 50% Itaú FAI 50% LASA 50% Itaú Own stores 100% Itaú Payroll Credit  Fináustria  Itaucred Vehicles  Banco Fiat  Intercap Vehicle Credit Cards non-account holders  50% Credicard Segmentation Credit for Individuals

49 Itaucred Pro Forma Operations performed through channels aimed at Non-Account Holders. R$ Million Itaucred

50 Reach of new clients, in new segments; Cross-Selling; Focus in the credit cycle aimed at the sustainable growth; Strategies and Priorities Vehicles: Continue to grow market share by developing new segments and with presence in new markets; TAIÍ: Emphasis on personal and consumer credit to low income people and offer of banking products to non-account holders. Itaucred

51 Taií  New Brand Name (Itaú-based).  Focus on lower income consumers.  Proprietary platform.  Uses the Itaú ATM network.  Diversifies credit-related revenues.  Responsive and efficient.  Expansion of Focus on direct consumer credit  Long term partnership: 20 years, and renewal option  Operating Management under the responsibility of Itaú  Exclusivity in exploitation of financial products and services to retailers’ customers Retail partnerships CBD and LASA Credit for Individuals

million Own Credit Cards (Private Label) Currently FIC (CBD) FAI (LASA)186 thousand 480 thousand Credit Cards FIC (CBD) FAI (LASA)- - Personal Loan Contracts FIC (CBD) FAI (LASA)137 thousand 580 thousand Consumer Credit Contracts FIC (CBD) FAI (LASA)32 thousand 4.7 millionTotal In Quantities Financial Products (*) Quantities above refer to the most recent data available at the time of the association start-up: for FAI (LASA), data refer to September 2004 and for FIC (CBD), March 2004.

53 * Total of the points of sale – still pending authorization by the Central Bank 2004 Points of Sale Forecasted Dec/05 Sep/05 Branches+CSBs Itaú2, Personnalité Branches , ATMs20,92321,552 Sub-total +1282,9762,942 FIC (CBD)+265 FAI (LASA) * FIT (own stores Taií) Sub-total TOTAL ,421 2, Estimated Expansion Investment expected for 2005: R$ 48.3 million +5,000 employees – basically, sales promoters In the next two years, operations Taií, FIC-CBD, FAI-LASA and Credicard are expected to aggregate 6 million customers to Itaú´s base.

54 8,026 8,259 8,674 9,077 10,680 In Thousand Market Share: 21.6% Leader in Brazil Credit Card Base Increase in Participation on Credicard 11,066 11,802 12,208

55 Agenda  Brazilian Economy  Brazilian Banking System  Highlights  Strategy and In-depth Results  Performance of the Shares

56 R$ Net Income and Earnings per share Earnings per share Net Income R$ million 10.8% 16.8% 1.4% 10.3% 18.1% 2.4% Note: Stock quotes and quantities do not reflect the 900% split of the common and preferred shares traded at Bovespa on October 3, neither the 400% split of the ADRs traded at NYSE on October 6.

57 Evolution of Earnings per Share and Dividends per Share CAGR = 26.1% R$ CAGR = 24.5% Dividends per ShareEarnings per Share Note: Stock quotes and quantities do not reflect the 900% split of the common and preferred shares traded at Bovespa on October 3, neither the 400% split of the ADRs traded at NYSE on October 6.

58 Increase in monthly payments from R$ 0.17 to R$ 0.21 per share on May 2005 Evolution of Dividends R$ R$ million

59 (*) Annualized Evolution of ROE (%)

60  Consistence of the strong financial performance and increase in operational efficiency;  Strategy of growth of credit for small and medium companies;  Maintenance of conservative policy of provisioning;  Changes in assets mix, reducing the volatility. March 2005  Long and consistent record of performance in volatile scenarios;  Quality of Equity;  Significative international presence reducing the internal volatility;  Strong capitalization and provisions. Itaú became the best rated bank in Brazil by Moody´s (among 23 banks evaluated) and by Fitch Ratings (46 banks evaluated). April 2005 Main Competitive Differentials: Ratings Upgrade

61 Public Company Award 2004 – Apimec (Brazilian Association of Capital Markets Professionals and Analysts - 3 rd time) Best Financial Strength and Individual ratings among Brazilian Banks – Moody´s and Fitch Best Bank in Brazil – Euromoney (8 th consecutive year) and Global Finance (2 nd consecutive year) The Most Ethical and Best Managed Bank in Latin America – Latin Finance / Management & Excellence Best Corporate Governance / Best Annual Report / Best IR Website / Best IR Officer in Brazil – Investor Relations Magazine Brazil Awards Public Company Seal 2004 – Animec (Brazilian Association of Capital Markets Investors - 2 nd time) Financial Institutions in Latin America: Best IR area (buy-side and sell-side rankings) / Best CEO, Roberto Setubal and Best CFO, Henri Penchas (sell- side ranking) / Best Corporate Governance – Institutional Investor Research Group 33 Recent Recognitions

62 US$ 100 Russian Crisis Real Devaluation Asian Crisis Argentine Crisis Attack to WTC Itaú (1) Itaú (2) Ibov. 10 years 26.97%22.37% 10.68% 5 years 26.09%21.62%9.35% 12 months %113.14%66.13% Annual Average Appreciation in US$ Brazilian Election Period Preferred Shares Appreciation – in US$ Evolution of US$ 100 Invested from Sep/95 to Sep/05 (1) With dividends reinvestment (2) Without dividends reinvestment ,089

Presentation to: New York, November 18, 2005 Silvio de Carvalho Executive Director