Banco Itaú Holding Financeira S.A.
Presentation to:
13th Annual Latin America Conference
Alfredo Setubal
Investor Relations Director
New York
March 2005
Banco Itaú Holding Financeira S.A.
Agenda

Results - Banco Itaú Holding Financeira

Pro Forma Results - Banco Itaú and Banco Itaú BBA

Important Facts - Banco Itaú Holding Financeira
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Highlights
Results:
4th Quarter/04 – Net Income of R$ 1,030 million with ROE 32.9% p.a.;
2004
- Net Income of R$ 3,776 million with ROE 27.0% p.a.;
Growth of Credit Portfolio (including endorsements and sureties):
Total: 4th Quarter/04 = 4.3% Excluding Corporate Clients: 4th Quarter/04 = 14.8%
2004
= 19.5%
2004
= 43.8%
Growth of Credit Portfolio by Client Type (highlights):
4th Quarter/04 -Individuals 19.7% and Small and Medium Sized Companies 15.7%.
2004
-Individuals 43.1% and Small and Medium Sized Companies 70.8%
Net Interest Margin*
4th Quarter/04 = 13.6% p.a.
2004
= 13.2% p.a.
*
3rd Quarter/04
2003
= 12.4% p.a.
= 13.9% p.a.
Excluding the nonrecurring items of 4th Quarter of 2004
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Highlights
Solvency - Nonperforming Loans Ratio:
4th Quarter/04 = 2.9%
3rd Quarter/04 = 3.2%
2004
= 2.9%
2003
= 4.1%
Full Amortization of Goodwill:
Without Tax Effects
CBD (3rd Q./04)
381
Credicard (4th Q./04)
721
Orbitall (4th Q./04)
233
Intercap - Sales promoter (4th Q./04)
65
TOTAL
1,400
( R$ Million)
With Tax Effects
347
656
212
59
1,274
Technical Provisions of Pension Plans:
Balance at Dec/04 of R$ 8.6 billion – Growth of 56.4% in 2004.
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Highlights
R$ Million (Except where indicated)
4th Q/04
3rd Q/04
2004
2003
1,030
920
3,776
3,152
Stockholders’ Equity
13,971
13,471
13,971
11,879
ROE (%)
32.9%
30.3%
27.0%
26.5%
130,339
138,520
130,339
118,738
Net Income
Total Assets
BIS Ratio (%)
20.6%
19.4%
20.6%
19.8%
Efficiency Ratio (%)
45.9%
52.5%
52.4%
54.5%
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Financial Ratios (%)
35
31.5
30
27.7
27.0
26.5
26.3
25
20
20.6
19.8
18.4
16.9
14.4
15
10
5
2.6
2.9
2.1
2.7
2.9
0
Dec-00
Dec-01
Net Income / Assets (ROA)
Dec-02
Dec-03
Net Income / Stockholders' Equity (ROE)
Smith Barney-Citigroup 13th Annual Latin America Conference
Dec-04
Basel Ratio
6
Banco Itaú Holding Financeira S.A.
Efficiency Ratio (%)
54.6% 56.3%
59.9% 58.0%
47.5%
55.8% 52.5%
45.9%
54.5%
52.4%
1Q/03
2Q/03 3Q/03
4Q/03 1Q/04
2Q/04 3Q/04
4Q/04
Annual Efficiency Ratio.
Efficiency Ratio =
(Personnel Expenses + Other Administrative Expenses + Other Operating Expenses + Tax Expenses except PIS/COFINS/ISS)
(Net Interest Income + Banking Service Fees + Partial Result of Insurance, Capitalization and Pension Plans + Other Operating Income - Tax Expenses of
PIS/COFINS/ISS)
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Exposure – Loans and Securities
R$ Million
Dec 31, 04 Sep 30, 04
Loans
Dec 31, 03
Var Dec04/ Var Dec04 /
Sep04
Dec03
53,275
51,059
44,581
4.3%
19.5%
Public Securities
7,486
9,369
14,306
-20.1%
-47.7%
Private Securities
12,145
11,216
8,564
8.3%
41.8%
Total
72,906
71,644
67,451
1.8%
8.1%
(*) Rural Loans and Mortgage – Loans linked to the availability of Demand deposits and Savings deposits.
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Credit Operations
60000
R$ Million
CAGR: 21.1%
53,275
50000
45,414
44,581
47,407
40000
34,282
16,916
38,659
29,615
19,596
20000
10000
38,419
27,253
30000
23,674
14,058
16,890
CAGR: 22.5%
0
1998
1999
Credit Operations
2000
2001
2002
2003
2004
Credit Operations+Guarantees
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Change in the mix of the Credit Portfolio
100%
90%
41%
80%
70%
51%
60%
16%
50%
40%
11%
30%
20%
29%
34%
9%
9%
2003
2004
10%
0%
Restricted Loans
Individuals
Small and Medium Sized Companies
Smith Barney-Citigroup 13th Annual Latin America Conference
Corporate Loans
10
Banco Itaú Holding Financeira S.A.
Nonperforming Loans Ratio and Coverage Ratio
Nonperforming Loans Ratio (%)
Coverage Ratio (*)
12.00
250%
10.00
8.00
7.3
198%
202%
Dec-03
Mar-04
210%
220%
204%
200%
7.3
6.5
6.0
6.00
4.1
4.00
150%
4.0
3.5
2.2
5.6
1.9
2.00
3.2
2.9
100%
1.8
1.5
0.9
50%
0.00
Dec-03
Mar-04
Jun-04
Sep-04
Dec-04
Nonperforming Loans Ratio – Global
Nonperforming Loans Ratio – Individuals
Nonperforming Loans Ratio – Businesses
0%
Jun-04
Sep-04
Dec-04
(*) Provision for Loan Losses / Total Nonperforming Loans
We are not expecting an ongoing improvement in these indicators, because of the focus on credit
products with higher margins, but, at the same time, with a higher credit risk.
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Banco Itaú Holding Financeira S.A.
Service Fees
R$ Million
4th Q/04
3rd Q/04
Var 4Q04
-3Q04
2004
2003
Variation
04-03
Asset Management (*)
376
358
17
1,411
1,320
91
Current Account Services
327
303
24
1,230
1,002
228
Credit Cards
371
282
89
1,162
965
197
Granted
266
234
32
916
653
263
Collection Services
302
180
122
866
699
167
Other
158
151
7
580
482
98
Total
1,799
1,508
291
6,165
5,121
1,044
Sureties and Credits
(*) Mutual Funds and Consortium.
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Financial Instruments – Market Value
12/31/04
Unrealized Income/(Loss) (1) (2)
Interbank Deposits
Securities and Derivatives
Additional provision
Adjustment – Securities Held to Maturity
Credit Operations
Investment on BPI
Time and Interbank Deposits and Funds from
acceptance and issuance of securities abroad
Securitization of Payment Orders Abroad
Subordinated Debt and Treasury Shares
Total Unrealized
09/30/04
R$ Million
Stockholders’
Equity
Stockholders’
Equity
12/31/03
Stockholders’
Equity
14
620
400
220
248
660
10
782
600
182
309
691
10
688
545
143
319
627
(41)
93
480
39
133
354
33
74
297
2,074
2,319
2,048
(1) Tax effects not considered.
(2) Includes unrealized minority interest gains in Equity of R$ 271 million at December/04, R$ 284 million at September/04 and R$
257 million at December/03.
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Internet Banking
600
550
500
450
Transactions (milllion)
Registered customers
(thousand)
CAGR: 32.4%
3,157
CAGR: 43.4%
2,598
400
350
1,427
1,121
200
813
150
50
525
2,400
141 284
42
41
2,000
1,600
222
1,200
154
477
800
111
51
3,200
2,800
441
344
250
4,000
3,600
1,998
300
100
3,624
400
79
0
0
1995
1996
1997
1998
1999
Smith Barney-Citigroup 13th Annual Latin America Conference
2000
2001
2002
2003
2004
14
Banco Itaú Holding Financeira S.A.
Agenda

Results - Banco Itaú Holding Financeira

Pro Forma Results - Banco Itaú and Banco Itaú BBA

Important Facts - Banco Itaú Holding Financeira
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Net Income
R$ Million
2004
%
2003
%
3,502
92.7%
2,737
86.8%
829
22.0%
750
23.8%
Corporation
(555) (14.7%)
(335)
(10.6%)
Total
3,776
3,152
100%
Banco Itaú S.A.
Banco Itaú BBA S.A.
100%
Diversification of the income sources
Not dependent only from interest rates
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Pro Forma
R$ Million
2004
2003
Banco Banco Corpo- Conso- Banco Banco Corpo- ConsoItaú Itaú BBA ration lidated
Itaú Itaú BBA ration lidated
Net Income
3,502
829
Tier I Allocated Capital
7,843
3,194
(555)
3,776
2,737
750
2,934 13.971
7,550
3,213
(335)
3,152
1,117 11,879
ROE (%)
44.7%
25.9% -18.9%
27.0%
36.2%
23.4% -30.0%
26.5%
Credit Portfolio (*)
29,736
17,671
47,407
20,739
17,919
38,659
109,983
34,488
6,597 130,339
94,641
30,490
Total Assets
-
-
5,438 118,738
(*) Including endorsements and sureties.
Note: The Consolidated figures do not represent the sum of the parts because certain intercompany transactions were
eliminated only at the Consolidated level.
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Banco Itaú S.A.
Consolidated Net Income
1,123
573
Variation
4Q/04 – 3Q/04
550
Credit Cards
175
122
53
Ins., Pension Pl. and Cap.
101
113
(12)
Funds and Managed Port.
38
30
8
1,437
837
600
2004
2003
2,384
1,604
Variation
2004 - 2003
780
Credit Cards
543
540
3
Ins., Pension Pl. and Cap.
451
465
(14)
Funds and Managed Port.
125
128
(3)
3,502
2,737
765
2004
4th Q/04 3rd Q/04
Banco Itaú - Banking
3.6%
12.9%
Total
15.5%
68.0%
Banco Itaú - Banking
Banco Itaú - Banking
Credit Cards
Insurance, Pension Plans and Capitalization
Mutual Funds and Managed Portfolio
Total
Diversification of income sources
Not dependent only on interest rates
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú S.A.
Credit Cards
R$ Million (Except where indicated)
2004
Nº of Cards - Itaucard (thousands)
Turnover - Itaucard
5,780
1,305
22.6%
3,595
2,246
1,349
60.0%
10,680
8,026
2,654
33.1%
12,956
10,603
2,353
22.2%
6,519
4,787
1,732
36.2%
19,475
15,390
4,085
26.5%
390
400
(10)
-2.5%
90
99
(9)
-9.1%
480
499
(19)
-3.8%
63
41
22
53.7%
Turnover - Credicard (*)
Turnover - Total
Variation
7,085
Nº of Cards - Credicard (thousands) (*)
Nº of Cards - Total (thousands)
2003
Net Income - Itaucard
Net Income - Credicard (*)
Net Income - Total
Participation in the Net Income of
Orbitall and Redecard
(*) Corresponds to the share of Credicard owed by Itaú – 50% at 2004 and 33% at 2003.
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Banco Itaú S.A.
Insurance, Pension Plans and Capitalization
R$ Billion
12.0
11.0
11.0
9.3
10.0
9.0
7.7
8.0
7.0
6.1
6.0
5.4
5.0
1.1
0.9
4.0
1.2
1.0
5.5
3.4
1.3
1.2
1.0
1.4
1.4
1.0
1.0
1.0
0.9
3.0
2.0
1.2
8.3
10.0
7.0
6.1
7.7
8.6
4.0
1.0
0.0
Jun-03
Sep-03
Dec-03
Mar-04
Technical Provisions - Pension Plans
Jun-04
Sep-04
Dec-04
Technical Provisions - Capitalization
Technical Provisions - Insurance
Technical Provisions – Pension Plans: growth of 43% from Dec. 03 to Dec. 04
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Banco Itaú S.A.
Insurance, Pension Plans and Capitalization
R$ Million
4º Tri/04 3º Tri/04 Var 4ºT04
-3ºT04
•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 Income/(Expenses)
Operating Margin
Financial Income
Administrative and Tax Expenses*
Income Tax and Social Contribution
Other
Result of Ins., Pension Plans and Cap.
Combined Ratio
Claim Ratio
2004
2003
Var.2004
- 2003
1,686
1,475
14%
6,233
5,008
24%
(843)
(103)
(579)
(636)
(100)
(591)
33%
3%
-2%
(2,957)
(395)
(2,251)
(2,578)
(358)
(1,508)
15%
11%
49%
41
54
-24%
177
136
30%
201
202
0%
807
701
15%
115
(169)
(23)
(24)
115
(146)
(39)
(20)
0%
16%
-41%
21%
485
(616)
(141)
(84)
623
(623)
(166)
(70)
-22%
-1%
-15%
19%
101
113
-10%
451
465
-3%
92.3%
93.5%
94.1%
97.2%
51%
55%
53%
54%
*Except for ISS, PIS and COFINS
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú S.A.
Resources Managed
R$ Billion
99.8
93.8
81.1
11.0
10.0
7.7
Dec-03
Sep-04
Dec-04
Volume of Mutual Funds and Portfolios under Management
Technical Provisions of Insurance, Pension Plans and Capitalization
Growth of 23.0% in the volume of Funds and Portfolios under Management and
43.4% in the volume of Technical Provisions in relation to Dec/2003
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú BBA
Pro Forma
R$ Million
4th Q/04
Net Interest Margin
Result from Loan Losses
Service Fees
Administrative and Tax Expenses*
Tax Income and Social Contribution
Other
Net Income
Tier I Allocated Capital
ROE (%)
464
31
84
(159)
(151)
(27)
242
3,194
33.9%
3rd Q/04
391
27
83
(133)
(147)
(25)
196
3,245
26.4%
2004
1,403
213
306
(622)
(416)
(55)
829
3,194
25.9%
2003
1,989
(513)
270
(613)
(410)
27
750
3,213
23.4%
Variation
04-03
(586)
726
36
(9)
(6)
(82)
79
(19)
*Except for ISS, PIS and COFINS
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú BBA
Strategy
 Itaú BBA: wholesale bank integrated into a financial conglomerate;
 Credit perspective for the corporate segment in Brazil: declining spreads, increase in
the competition, limited client base. Currently 51% of all our revenues are non-credit
related;
 Challenge: to maintain current profitability levels in the next years considering lower
margins in credit;
 Our strategy: compensate lower gains in credit with an increase in the distribution of
non-credit related products and services to our clients through:
 Cross-selling – continue to take advantage of the synergy with Itaú, by
increasing the selling of structured treasury operations such as hedging and also
simpler products such as payroll and collection;
 Investment banking – segment likely to expand in the next 5 years (we expect
that by the end of this period Brazil becomes an investment grade country).
 Itaú BBA is well-positioned in investment banking – leader in fixed income issuances
and reinforcing our variable income team in order to build a strong investment
banking.
Investment banking currently stands for 5% of Itaú BBA´s revenues. In the
next
5 to 6 years
our
goal
isConference
to increase this participation to 20%.
Smith
Barney-Citigroup
13 Annual
Latin
America
th
24
Banco Itaú Holding Financeira S.A.
Agenda

Results - Banco Itaú Holding Financeira

Pro Forma Results - Banco Itaú and Banco Itaú BBA

Important Facts - Banco Itaú Holding Financeira
Smith Barney-Citigroup 13th Annual Latin America Conference
25
Banco Itaú Holding Financeira S.A.
Banco Itaú Holding in 2005
1.
Focus in increasing the credit portfolio to Individuals and to
Small and Medium Sized Companies;
2.
Consolidation of initiatives related to consumer loans:
(Taií, CBD, Lojas Americanas, Credicard…);
3.
Costs constant in real terms, which will lead to an improvement
in the efficiency ratio (at the same basis);
4.
New Segment – Disclosure, starting in next quarter, of a new
segment to reflect the performance of business areas related to
consumer loans.
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Banco Itaú Holding Financeira S.A.
Taií
 New Brand Name (Itaú-based).
 Focus on lower income consumers.
 Proprietary platform.
 Operation launched in June/04 with 3 branches in São Paulo (currently 29).
 Uses the Itaú ATM network.
 Diversifies credit-related revenues.
 Responsive and efficient.
 Forecast: 150 stores by YE 2005.
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Banco Itaú Holding Financeira S.A.
Retail partnerships

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
February 28, 2005
October 27, 2004
Forecast for 2005:
250
stores
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170
stores
28
Banco Itaú Holding Financeira S.A.
Increase in Participation on Credicard
Credit Card Base
In Thousand
Market Share:
20.3%
10,680
8,026
8,259
8,674
9,077
2,438
3,596
2,245
2,308
2,413
5,780
5,951
6,261
6,639
7,085
Dec-03
Mar-04
Jun-04
Sep-04
Dec-04
Itaucard
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Credicard
29
Banco Itaú Holding Financeira S.A.
Evolution of Earnings per Share and Dividends
per Share (*)
34.00
32.00
30.00
CAGR = 28.6%
24.00
22.00
21.41
CAGR = 26.2%
20.00
18.00
15.85
21.36
15.99
16.00
14.00
12.11
9.72
12.00
10.00
4.00
2.00
33.33
27.66
28.00
26.00
8.00
6.00
R$
4.95
3.26
2.88
1.24
0.98
1.00
6.04
3.03
7.46
5.11
5.46
7.24
7.45
2.90
0.00
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Earnings per Share (*)
Dividends per Share (*)
(*) In the previous years per lot of thousand shares, as in 2004 a reverse split of shares was carried out.
Smith Barney-Citigroup 13th Annual Latin America Conference
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Banco Itaú Holding Financeira S.A.
Preferred Shares Appreciation – in US$
Evolution of US$ 100 Invested from Dec. 94 to Dec. 04
1,200
1,000
800
600
400
Annual Average Appreciation in US$
Itaú(1)
Itaú(2)
10 years
27.60%
23.12%
6.75%
5 years
20.05%
15.75%
0.65%
2004
64.36%
58.79%
28.23%
Itaú (1)
Itaú (2)
Bovespa
US$
Ibov.
Real Devaluation
Argentine
Crisis
1,145
800
Attack to
WTC
Election
Period
Russian Crisis
Asian Crisis
Mexican Crisis
192
200
100
0
94
95
96
97
(1)
With dividends reinvestment.
(2)
Without dividends reinvestment.
98
99
Smith Barney-Citigroup 13th Annual Latin America Conference
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01
02
03
04
31
Banco Itaú Holding Financeira S.A.
Presentation to:
13th Annual Latin America Conference
Alfredo Setubal
Investor Relations Director
New York
March 2005