Net Interest Margin Provision for Loan Losses Banking Service Fees Administrative Expenses Extraordinary Result Others Statements of Income R$ Million Net Income 1,213 (299) 697 (1,050) 535 (335) 761 1,202 (235) 740 (1,172) - (202) 333 1,094 (146) 744 (1,161) (77) (94) 360 1,120 (134) 978 (1,228) (107) (214) 415 4,629 (814) 3,159 (4,611) 351 (845) 1,869 1st2nd3rd4thYear

Extraordinary Result Full amortization of premiums on the purchase of shares of BPI and IBT. Due to permanent assets abroad (US$ 1,483 million). R$ 154 million R$ 535 million Total for 1999: R$ 351 million Investment in acquisitions since 95: US$ 2 billion Full amortization of premiums (Itaú Consolidated): US$ 811 million

Consistent Evolution R$ Million

Risk Management Policy Credit Risk Quality : 65% Good, Very Good and Excellent Default Ratio : Lowest in 5 Years For the 10th consecutive year : 100% provisioning of the credits fallen due and unpaid over 60 days. Quality of credit concession + Stable Scenario Expansion of the Credit Portfolio with Liquidity Market Evolution in the Techniques for the control of market risks (interest rates, foreign currency, shares) Significant Results Low Level of Risk Compliance Implementation of a new and detailed systematic of internal controls and compliance To Limit and Reduce the Operational Risks in the Whole Structure

Credit Operations R$ Billion Ratio Default (%) Provisions Outstanding(*) R$ Billion Provisions Expenses R$ Billion % -20% (*) Overdue Credits and General Provision

Individuals 6.5 million active customers 3.7 million with pre-approved credit, and 65.5% of these indeed using it. The pulverization of credit, combined with the approval models, has insured a good liquidity to the portfolios. Credit Cards 2.2 Insurance Contracts 1.1 Private Pension Plans 0.3 Million Outstanding Personal / Overdraft / Vehicles Loans: R$ 2.5 billion 110.2% increase over 1998; 70% of the transactions performed by our customers are through self-service.

Small and Middle Market Business Itaú has retaken with priority the growth of the credit offer for this segment: Growth of 48% in the 2 nd semester of thousand client companies Outstanding working capital loan portfolio: R$ 1.1 billion in Dec.99 In 2000 the continued growth of the portfolio is expected, although probably at a lower pace.

Corporate Incorporation of the operational structures of BFB and IBT Reinforcement in products and team management area Agility of the the new business board Structuring of Solutions Foreign currency Project finance Investment banking Business and Operations Expansion Record Result Positive Perspectives due to: Privatization Economic Growth

Internet (Home Banking) Huge Opportunity: Increase of Clients, Offer other Services and Reduce Costs 1 million of clients in 99 (+34% over 98) 10.9 million transactions in Dec. 99 (+39% over 98) Evaluation of partnerships to offer other financial services: B2B, B2C, Portals, E-Commerce, etc. Adoption of Web interface between branches and back office. Strong Development to offer all the services: Home Broker, Credit Cards, Bankline for Middle Market, etc. ersonalersonal inancialinancial erviceservices P F S

The Consolidation of the Brazilian Financial Sector Hasn’t Finished Yet 1. The consolidation should become faster. 2. Besides Banespa and Banestado, 10 more banks should be privatized. 4. After Banco do Brasil and Caixa Econômica Federal, approximately 90% of the whole banking sector should be concentrated with a few institutions. 5. There will be many opportunities to acquire state and small banks. 3. Banco do Brasil and Caixa Econômica Federal, together, represent 35% of assets, 45% of deposits and 50% of Loans of the whole Financial System.

Mexican Crisis Asian Crisis Russian Crisis Real Devaluation Preferred Shares - Appreciation Evolution of US$ 100 Invested in December of 1994 Annual Appreciation. 10 years (average) 40.83%. 5 years (average) 31.18% % Annual Appreciation. 10 years (average) 40.83%. 5 years (average) 31.18% % Stock Price P/E P/BV %. Cash Yield 1.94% Stock Price P/E P/BV %. Cash Yield 1.94% US$ ITAU4 : US$ 86.6 per thousand shares Create Value to the Shareholders US$ 9,969 million The Largest Market Capitalization among the Latin American Banks

Highlights 1999 Consolidated Balance Sheet Total Assets Loan and Leasing Portfolio + ACC Sureties, Endorsements and Guarantees 51,911 16,890 2,706 Securities + Interbank Accounts 18,070 Stockholders’ Equity 5,907 Statements of Income Net Income Recurring Net Income Extraordinary Net Income 1, ,869 Financial Margin 4,629 Net Income from Financial Operations 3,814 Banking Service Fees 3,159 Performance Ratios (%) ROE Recurring ROE Extraordinary ROE 25.7% 5.9% 31.6% ROA 3.6% BIS Ratio 21.0% Eficiency Ratio 58.0% Relevant Data Assets under Management Employees Active Customers (million) 31,994 39, Branches 1,765 CSBs 780 ATMs 11,715 Amounts in R$ Million