0 Conference Call about the Results of 2 nd Quarter 2003 Banco Itaú Holding Financeira S.A. August 6 th, 2003
1 Highlights R$ Million (Except were indicated) Net Income Stockholders’ Equity ROE (%) Financial Margin Market Capitalization Solvency Ratio (%) Efficiency Ratio (%) NPL (%) 2 nd Q./ , % 2,356 21, % 46.0% 4.65% 1 st Q./ , % 2,894 20, % 40.1% 4.16% Variation 8.7% 7.9% 30 b.p % 1.2% -120 b.p. 590 b.p. 49 b.p.
2 Statement of Income Financial Margin Provision for Loan Losses Credits Recovered Banking Service Fees Administrative Expenses Recurring Income Extraordinary Income Net Income Total Assets 2 nd Q./03 2,356 (484) 136 1,246 (1,813) 793 (17) ,799 1 st Q./03 (*) 2,894 (449) 86 1,203 (1,741) 1,246 (532) ,098 Var. (%) -18.6% 7.8% 58.1% 3.6% 4.1% -36.4% -96.8% 8.7% -5.6% R$ Million (Except were indicated) * Reclassifications in the 1 st quarter results were made for comparison purposes without effects on net income.
3 Statement of Income (*) Financial Margin Provision for Loan Losses Credits Recovered Banking Service Fees Administrative Expenses Recurring Income Extraordinary Income Net Income Total Assets Banco Itaú 1,893 (381) 119 1,203 (1,678) 793 (17) ,265 2 nd Quarter of 2003 Banco Itaú-BBA 391 (91) (83) ,578 R$ Million (Except were indicated) (*) Banco Itaú Holding includes the eliminations of the operations existing between Banco Itaú, Banco Itaú-BBA and Banco Fiat, due to the consolidation. Banco Fiat 51 (12) 6 22 (52) ,973 Banco Itaú Holding (*) 2,356 (484) 136 1,246 (1,813) 793 (17) ,799
4 Net Foreign Exchange Position R$ Million - Permanent Foreign Investment - Net balance of other assets and liabilities indexed to foreign currency, including derivatives - Net Foreign Exchange Position Jun 30, 03 7,083 (7,308) (225) Mar 31, 03 7,745 (5,194) 2,551
5 Result Affected by Foreign Exchange Variation Tax Effect Before Tax Foreign Exchange Variation on Investments Abroad Results of Local Operations Affected by Foreign Exchange Variation Marked to Market effects of Trading Securities Results of Securities Selling Result Affected by FX - (44) 7 (46) (83) (769) 686 (21) After Tax (769) 642 (14) 89 (51) 2 nd Quarter of 2003 Tax Effect Before Tax - (97) (172) 22 (246) (229) (65) 543 After Tax (229) (43) st Quarter of 2003 R$ Million
6 Financial Instruments – Market Value In Net Income 1, ,864 Market Value 26,051 30,655 6,745 15,976 1,824 4, Securities and Derivatives Additional Provision Adjust of Available for Sale Securities - Credit Operations - Other Assets - Time and Interbank Deposits and Funds from Acceptance and Issuance of Securities - Other Liabilities from trading and intermediation amounts - Subordinated Debts -Other Total Unrealized In Stockholders’ Equity ,439 Book Value 26,051 30,632 6,350 16,032 1,901 4, Unrealized Income/(Loss) (1) (2) R$ Million (1)Do not consider the corresponding tax effects. (2)Includes unrealized gains to minority interest amounting to R$ 159 million. June 30, 2003
7 Total Trading Securities Available for Sale Securities Held to Maturity Securities Derivatives – Assets and Liabilities R$ Million 26,051 Market Value 9,312 14, ,825 25,415 Cost 9,298 13, ,734 Jun. 30, ,570 Market Value 8,844 14,522 1,016 2,188 26,513 Cost 8,830 14,261 1,016 2,406 Mar. 31, ,694 Market Value 8,853 13,481 1,072 2,288 26,522 Cost 8,801 13,680 1,072 2,969 Dec. 31, – 261 – (199) – Marked to Market Adjustment – Stockholders’ Equity (A) , Additional Provision (B) Unrealized Results (A) + (B) Securities
8 Credit Operations Credit Operations and Guarantees (*) June 30, 2003 R$ Million 28,302 33,080 06/30/2003 Itaú Holding without BBA and FIAT Credit Operations Credit Operations + Guarantees 31,506 37,020 12/31/2002
9 (*) Includes Endorsements and Sureties Credit Operations (*) By Currency Foreign Currency Local Currency Total Jun 30, 03 13,412 31,174 44,586 Mar 31, 03 15,187 31,203 46,390 Jun, ,962 23,877 34,839 Variation % Jun/03 – Mar/ % -0.1% -3.9% Variation % Jun/03 – Jun/ % 30.6% 28.0% R$ Million By Segment Corporate Small and Medium Sized Companies Individuals Credit Cards Real State Finance Individuals Businesses - TOTAL Jun 30, 03 25,830 4,077 9,672 2,809 2, ,586 Mar 31, 03 27,492 4,262 9,751 2,618 2, ,390 Jun, ,172 3,400 6,924 2,758 2, ,839 Variation % Jun/03 – Mar/ % -4.3% -0.8% 7.3% -2.7% -9.7% -3.9% Variation % Jun/03 – Jun/ % 19.9% 39.7% 1.9% -13.0% -41.4% 28.0% R$ Million
10 Nonperforming Loans and Coverage Ratio Coverage Ratio (*) Nonperforming Loans Ratio – Global Nonperforming Loans Ratio – Individuals Nonperforming Loans Ratio – Businesses (*) Provision for Loan Losses / Total Nonperforming Loans Nonperforming Loans Ratio (%)
11 Provision for Loan Losses R$ Million Minimum Provision Additional Provision Total Provision
12 Deposits and Assets under Management R$ Million Jun 30, 02 (C) Mar 31, 03 (B) Jun 30, 03 (A) Deposits Demand Deposits Saving Accounts Interbank Deposits Time Deposits Assets under Management Mutual Funds Portfolio under Management Total Variation % (A/C) Variation % (A/B) 28,754 6,356 16, ,730 56,243 49,819 6,424 84,997 37,991 7,561 17,358 1,042 12,030 62,852 57,987 4, , % 10.9% 5.0% 12.1% 78.3% 19.4% 24.9% -23.6% 20.0% 34,826 7,051 16, ,219 67,142 62,233 4, , % -6.7% -3.1% -30.2% -15.1% 6.8% 7.3% 0.9% 1.1%
13 Banking Service Fees R$ Million 2 nd Q./ ,246 1 st Q./ ,203 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 Variation % 8.9% 5.5% 0% -15.2% 4.1% 0% 5.2% -6.9% % -5.5% 3.6% Banco Fiat contributed with R$ 15 million
14 Insurance, Capitalization and Pension Plans Variation (%)2 nd Q./03 R$ Million 1 st Q./ % 82.0% 21.6% 8.6% -23.1% Insurance Premiums, Pension Plans Contributions and Premium Bonds Revenues Changes in Technical Provisions Selling Expenses Insurance Claims, Pension Plans Benefits and Premium Bonds Redemption Other Operating Results 1,241 (627) (95) (365) (345) (78) (336) % Combined Ratio (*)97.8% 53.9% Claim Ratio (*)56.8% 161 Operating Margin11.9%144 (*) Do not includes Health Insurance companies.
15 Administrative Expenses R$ Million 2 nd Q./ ,080 1,813 1 st Q./ ,008 1,741 Personnel Expenses Remuneration Social Charges Social Benefits / Training Reorganization Other Administrative Expenses Total Variation % 0% 6.1% 6.8% 8.4% -29.6% 7.2% 4.1% 40.1%46.0% Efficiency Ratio The Administrative Expenses of Banco Fiat corresponds to R$ 52 million in second quarter.
16 Administrative Expenses Variation (%)1 st S./03 R$ Million 1 st S./02 (*) Personnel Expenses Other Administrative Expenses Sub Total Reorganization (Dismissals/Labor Suits) Total 1,234 2,088 3, ,554 1,230 1,982 3, ,569 (*) In order to measure the effect of the cost control program on the administrative expenses, we added the administrative expenses arising from Banco Itaú-BBA and Banco Fiat, which are recorded in the first semester of 2003, to the first semester of They are nominal data. 0.3% 5.3% 3.4% -34.9% -0.4%
17 Efficiency Ratio (*) (*) Accumulated in the last 12 months. Intense efforts to optimize operating expenses and improve efficiency Efficiency Ratio Accumulated (*) Efficiency Ratio
18 Payments/Provisioning of Interest on Own Capital 1st Half st Half 2002 Paid / Prepaid Provisioned TOTAL R$ Million Evolution (%) 41.9% 214.5% 166.0% (*) Amounts net of taxes.
Presentations: Corporate Segment – Banco Itaú-BBA Cândido Bracher – Executive Vice President of Itaú-BBA Consumer Loans – Vehicles Financing Ruy M. Abreu – Executive Director of Itaú Strategy and Performance (Webcast through the Internet) Roberto Setubal - President and CEO of Itaú Holding APIMEC – SP Meeting 2003 August 25 th, 2003 (Monday) Association of the Capital Markets Analysts and Investment Professionals – São Paulo – Brazil From 1:30 PM to 6:30 PM Rosa Rosarum – São Paulo R.S.V.P.: /