Banco Itaú S.A. Alfredo Setubal Silvio de Carvalho August, 2002

1 Highlights Corporate Governance Positioning – Brazil and Abroad

2 1.Citigroup 2.Bank of America Corp. 3.Mizuho Financial Group 4.JP Morgan Chase & Co. 5.HSBC Holdings 6.Sumitomo Mitsui 7.Crédit Agricole Group 8.Mitsubishi Tokio 9.UFJ Holding 12. Deutsche Bank 14. Bank One Corp 86. Norddeutsche Landesbank 87. Banco Itaú 88. Banco Bradesco 89. Banco Monte dei Paschi 97. State Street Corp 98. Banco do Brasil 99. Schleswig-Holstein Company Ranking by Stockholders’ Equity December 2001 Assets 1, , US$ Billion 2 nd 11 th 1 st 9 th 8 th 3 rd 18 th 5 th 12 th 4 th 42 nd 60 th 176 th 135 th 79 th 101 st 97 th 69 th Rank BIS 56 th 23 rd 61 st 34 th 19 th 64 th 35 th 68 th 52 nd 31 st 28 th n.a. 1 st 8 th 87 th 12 th 22 nd 79 th Rank ( * ) 10.9 % 12.3 % 10.6 % 11.9 % 13.0 % 10.5 % 11.8 % 10.3 % 11.0 % 12.1 % 12.2 % n.a % 15.4 % 8.6 % 14.5 % 12.7 % 9.4 % Ratio Source: The Banker Top /02 (*) BIS Ranking extracted from the 100 largest banks by SE SE US$ Billion ROA 2.1 % 1.6 % -1.0 % 0.4 % 1.2 % -0.6 % 0.5 % -0.3 % -2.1 % 0.2 % 1.4 % 0.1 % 3.8 % 2.6 % 1.1 % 1.3 % 0.9 % 0.2 % % 127 th 232 nd 961 st 734 th 400 th 953 rd 684 th 943 rd 982 nd 827 th 306 th 903 rd 28 th 67 th 440 th 343 rd 504 th 841 st Rank ( * )

3 Ranking – Mutual Funds Institutions June 30, 1999 S.E.Share % Banco do Brasil (*) Itaú Bradesco Citibank HSBC CEF (*) Boston Unibanco ABN Amro / Real % 12.2% 12.6% 4.9% 3.1% 5.0% 5.4% 4.6% 3.7% Total % (*) Public Institutions R$ Billion June 30, 2002 S.E.Share % % 13.7% 12.6% 5.2% 5.0% 4.9% 4.6% 4.5% 4.3% % Pos Others % % Source: Anbid – Brazilian Association of Investment Banks

4 International Presence June 2002 * Itau Bank Itaú 53.8 New York Branch Grand Cayman Branch Banco Itaú Buen Ayre S.A. Assets SE * *, Frankfurt Rep. Office Miami Rep. Office Assets SE * Grand Cayman Branch Assets SE * 4, Banco del Paraná Assets SE * IFE Bemge Uruguay S.A. Assets SE * Itau Bank, Ltd Assets SE Banco Itaú Europa S.A. Assets SE * 1, BIELuxembourg Assets SE * June 2002 Broker Dealer * Stockholders’ Equity * US$ Million SE Financial SE Non-Financial Total SE 1, ,967.5 Consolidated Assets 8,230.4 BIE: Investment Grade since 2000 Moody´s and Fitch IBCA

5 Highlights Corporate Governance Positioning – Brazil and Abroad

6 Stockholders’ Equity, Net Income, Market Capitalization and Multiples R$ Million 1 st Semester 2002 Net Income: R$ Million

7 Highlights Consolidated(%) (*) Annualized data In %

8 Evolution of Stockholders’ Equity, Net Income and Annual Inflation R$ Million (*) , , Annual Inflation (%) (*) In currency of constant power purchasing as of December, 1995 until then, after which in Corporation Law. (1) Increase of Capital by cash payment. June, 2002 Stockholders’ EquityR$ 8,288 Million Market CapitalizationR$ 17,838 Million Net IncomeR$ 544 Million Jan/81 to Jun/02 Dividends: R$ 4.1 Billion Increase of Capital (1) : R$ 0.1 Billion

9 Asset Evolution R$ Million CAGR=23.1%

10 PC & Internet Banking Number of Transactions and Clients * Accumulated in the 1 st semester of 2002

11 Income Statement R$ Million (Except where shown) ROE % 1st Q./02 1,831 (431) 996 (1,633) % Var. (%) nd Q./02 2,040 (512) 1,004 (1,734) 567 (23) % Financial Margin Provisions for Loan Losses Service Fee Income Administrative Expenses Recurrent Income Extraordinary Results Net Income

12 Evolution of the Financial Margin R$ Milhões CAGR=14,3%

13 Evolution of the Banking Service Fees R$ Million CAGR=2.6%

14 Banking Service Fees 1st S. 01Var. % Fund Management Fee Currency Acount Services Credit Operations Credit Cards Other Services Total ,767 Active ClientsDec./01Dec./00 Banco Itaú and Others Banerj Bemge Banestado BEG Itaú Buen Ayre Total % 12.9% 27.9% 13.3% -2.2% 11.6% st S ,000 Jun./ R$ Million Million

15 R$ Million 1st Q./ ,633 2nd Q./ ,734 Personnel Expenses Other Administrative Expenses Premises Materials Data Processing and Telecom Transportation Third Party Services Marketing Depreciation and Amortization Financial System Services Other Total Variation (1) (22) 3 (11) ,5181,493 Total without Dismissals/Labor Suits25 (216)(140) (-) Dismissals/Labor Suits(76) 55.0 %55.4 % Efficiency Ratio Administrative Expenses

16 Efficiency Ratio¹ In %

17 Credit Operations 14,058 16,890 23,674 16,077 19,596 27,253 29,615 14,414 16,916 34, ,839 30, * (*) In June 30, 2002 R$ Million Credit OperationsCredit Operations and Guarantees

18 R$ Million Large Companies Small and medium size Companies Individuals Credit Cards Subtotal Housing Individuals Companies Subtotal Total Dec 31,01 18,864 3,152 6,669 2,772 31,457 2, ,825 34,282 Jun 30,01 17,584 2,218 6,080 2,218 28,100 2, ,999 31,099 Credit Operations by Customer Profile Var Jun/02 x Jun/01 9.0% 53.3% 13.9% 24.3% 14.8% -12.3% -30.3% -13.8% 12.0% Var Jun/02 x Dec/01 1.6% 7.9% 3.8% -0.5% 2.5% -7.3% -21.9% -8.5% 1.6% Jun 30, 02 19,172 3,400 6,924 2,758 32,253 2, ,585 34,839 Credit Operations

19 Credit Portfolio by Currency (*) Indexed in Foreign Currency In Foreign Currency Subtotal In Local Currency Total Jun 30, 02 3,193 5,241 8,434 21,724 30,158 (*) Not including Endorsements and Sureties Mar 31, 02 2,611 3,636 6,246 21,819 28,066 Dec 31, % 44.1 % 35.0% - 0.4% 7.5 % Variation Jun/02–Dec/01 R$ Million 3,093 4,203 7,296 22,319 29, % 24.7 % 15.6% -2.7 % 1.8 % Variation Jun/02–Mar/02

20 Credit Operations – June 2002 AA – A B - D E - H Total Risk Levels 0.5% 2.7% 67.7% 0.2% 2.1% 56.4% 13.7%3.1% Individuals Companies Coverage , , Provision Balance Individuals Companies 2,765 7,193 2,128 12,731 4, ,08618,072 Portfolio(*) Individuals Companies R$ Million (*) Not including Endorsements and Sureties

21 164% Jun/02 190% Mar/01 189% Jun/01 186% Sep/01 173% Dec/01 168% Mar/ Jun/02Mar/01Jun/01Sep/01Dec/01 Mar/02 Dec/00 Non Accrual and Coverage Ratios Coverage Ratio (*) Total Non Accrual Individuals Non Accrual Companies Non Accrual (*) Provision for Loan Losses / Non Accrual Non Accrual Ratio %

22 Securities Constituted Provision to Market Value (145) - (320) (119) - (26) (320) (465) Market Value 9,233 45% 10,522 51% 131 1% 529 3% 11,130 55% 714 3% 8,041 39% 529 3% 20, % Securities Trading Securities Available for Sale Securities Held up to their Maturity Derivative Financial Instruments Public Securities - Brazil Public Securities – Other Countries Private Securities Derivative Financial Instruments Total Constituted Provision to Market Value In Equity - (609) - (529) 22 (103) - (609) Cost 9,378 11, , , ,489 Minimum Allowance Required (1,074) Additional Allowance Reclassification 550 Additional Allowance (1,147)

23 Funding and Fund Management R$ Million Dec 31, 01 (C) Jun 30, 02 (A) Mar 31, 02 (B) Evolution % (A/C) Evolution % (A/B) 27,817 7,047 16,171 4,599 55,796 49,711 6,085 83,613 28,105 6,356 16,019 5,750 56,243 49,819 6,424 84,348 Deposits Demand Deposits Savings Deposits Time Deposits Managed Funds Investment Funds Managed Portfolio Total Funds 1.0 (9.8) (0.9) ,474 5,981 15,636 4,857 57,274 51,260 6,014 83, (1.8) (2.8)

24 1st Q./02 (9) 1 (8) (135) (144) Foreign Exchange Variation on Investments Abroad Effect Foreign Exchange Risk Management on Investments Abroad Results Abroad Funding Expenses (CDI) Results derived from Investments Abroad 2nd Q./ (93) 820 (128) 692 Investments Abroad Foreign Exchange Variation on Investments Abroad - Considering the Funding Cost R$ Million 1st Q./02 (144) - (7) - (14) (165) Results of Investments Abroad Reversal/(Constitution) of Valuation Allowance – Sudameris Operation Reversal/(Constitution) of Valuation Allowance – AOLA Reversal/(Constitution) of Valuation Allowance – Market Volatility Marked to Market - Swap Income from Trade Finance and Foreign Exchange Portfolio Financial Margin of Local Operations affected by Exchange Rate Other Result affected by Exchange Rate 2nd Q./ (608) (260) (130) (95)

25 AOLA On Jun/00 a strategic alliance with America Online Latin America Inc. (AOLA) was established for acquiring 12% of AOLA capital in exchange for providing interactive and marketing services. The acquisition of shares did not imply a monetary disbursement, once a payment related to the service rendering agreement was received at the time of the subscription, at an equal amount. In this quarter, taking into account the volatility affecting the US Market, an allowance totaling R$ 260,000 was formed so that the net assets related to the strategic alliance be at the most equal to its market value. Cost of Shares Portfolio ( thousand shares) Value of the Service Rendering Agreement Subtotal Allowance Constituted Net Asset R$ Million 701 (377) 324 (260) 64 Market Value of the Shares: 35,938 (Number. of shares) x US$ 0.64 (Market Price - 06/28/02) x (R$/US$) 65

26 Subordinated Debt Issue of Subordinated Debt US$ Million Resources Subordinated Debt343 Investments Bonds153 Brazilian Issuer101 Foreign Issuer52 Credit Operations50 Interbank Deposits140 The first issue of Subordinated Debt made by a Brazilian Bank and the longest term obtained by a local private company in the foreign market Additional issue of US$ 80 million in November A US$ 250 million bond issued (foreign payment orders securitization) during the 1 st quarter of 2002

27 Banco Itaú has been granted Financial Holding Company status by The Federal Reserve. This classification is attributed to 660 banks in the whole world. Only 27 are not North American. Analysis of important criteria New range of opportunities in the United States of America market Improve the perception that the United States of America investors have Financial Holding Company Banco Itaú is permitted to undertake commercial banking operations and to operate in the North American insurance and capital markets under the same conditions as local institutions. high level of capitalization superior quality of management Itaú Securities Inc.(June 25, 2002)

28 Banco Itaú launches Level II ADRs on the NYSE On February 21th, 2002, Itaú launched its ADR Level II on the New York Stock Exchange – NYSE The ADRs are traded under the symbol “ITU” Each ADR represents 500 Banco Itaú’s preferred shares The depositary bank is The Bank of New York The custodian is Banco Itaú itself. Itaú reaffirms its commitment to increasing the value of its shares Level I ADR traded at OTC since July 2001

29 Financial Volume*in Thousands of Reais Focus on Liquidity Financial Volume* in Thousands of Reais 39,865 NYSE (ADR Level II) Bovespa OTC (ADR Level I) Feb 21, 2001 to Feb 20, 2002 NYSE Listing (Feb 21, 2002) +42% +96% Increase in Liquidity Creation of Value Feb 21, to Jun 30, ,847 (*) Daily Average Feb 21 to Mar 31, 2002

30 Highlights Corporate Governance Positioning – Brazil and Abroad

31 Banco Itaú – Anticipated the Trend Recognizes the capital markets as the ultimate source of capital Is respected among investors Is a benchmark in investor relations Has been recognized for its transparency and fairness with minority shareholders Bovespa´s Level I of Corporate Governance Bovespa´s stamp on good Corporate Governance policies Strengthening of the transparent image Reduction of the risk perception by investors BNDES: special credit lines for companies with good CG practices Pension Funds rules: increase of the limit of investment in companies belonging to Level 1: Defined Contribution Other Plans 45% 35% 30% Level 1Traditional Market Adhesion reaffirms our main target: Create Value to the Shareholders

32 Tag Along Shareholders approved a proposal of the Adm. Council (April, 2002) Concept: more rights to the preferred shareholders In case of change of control, preferred shareholders are entitled to the same price conditions offered to minority ordinary shareholders by the law – 80% of the price paid for the control Legislation demands tag along only for minority ordinary shareholders – Itaú expands their rights to ALL shareholders Respect to the minority shareholder Increase in the rights attracts foreign investors Shareholder Value

33 Highly qualified professionals: Fiscal Council Gustavo Jorge L. Loyola PhD in Economics at the Getúlio Vargas Foundation President of Central Bank of Brazil between nov/92 to mar/93 and jun/95 to ago/97 Alberto Sozin Furugem Postgraduated degree in Economics at the Getúlio Vargas Foundation Ex-Director of Rio de Janeiro State’s Development Bank and Ex-Delegate of Central Bank in São Paulo Iran Siqueira Lima Master and PhD in Accounting and Controlling at the University of São Paulo Capital Markets Area Director (1984) and Fiscalization Area Director(1985) of Central Bank of Brazil Economic-Financial Director of Telebrás and member of Management Council of BNDES and Telesp Protection to the minority shareholder New law has increased its importance Shareholder Value

34 Administrative Council Pérsio Arida (re-elected in April 2002) Former President of Central Bank of Brazil PhD at the Massachusetts Institute of Technology (MIT) Roberto Teixeira da Costa (re-elected in April 2002) 1 st President of the Securities and Exchange Commission of Brazil (CVM) Notorious Experience and Technical Capacity Alcides Lopes Tápias (elected in April 2002) Former Ministry of Development, Industry and Commerce in Brazil; Former President of Febraban; Chairman of the Board of Camargo Corrêa; Member of the National Monetary Council (CMN). Highly qualified independent members of the board: Different view of the controllers - contribution Experience, capacity and reputation Shareholder Value

35 US$ Bovespa Banco Itaú * 100 M J2002 Argentine Crisis Admirable Stock Performance Appreciation of US$ 100 Invested in June 1992 Annual Appreciation. 10 years (average) 19.2%. 5 years (average) 0.1%. Last 12 months -27.6% % Real Plan Russian Crisis Asian Crisis Mexican Crisis Real Devaluation (*) Excludes dividend reinvestment.