banco itaú holding financeira s.a. september 08-10, 2004 presentation to: 3 rd annual global...

Banco Itaú Holding Financeira S.A.

September 08-10, 2004

Presentation to:

3rd Annual Global Markets One-on-one Conference

New York


Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

2Roadshow – Results of the 2nd Quarter of 2004


Agenda

Results – 2nd Quarter 2004

Focus on consumer credit segments

Corporate Governance

Corporate Responsibility

Peers comparison



Agenda





Peers comparison


Banco Itaú Holding Financeira S.A.Banco Itaú Holding Financeira S.A.

Results – 2nd Q./04

2. Growth of Credit Portfolio in the Quarter: Corporate 8.9%, small and medium sized companies 12.6% and individuals 8.1%;

5. Technical Provisions of Insurance, Capitalization and Pension Plans: R$ 7.0 billion – Growth of 326% over past 24 months against 153% for market as a whole;

8. Preferred Shares Buyback: total of 929,740 thousand, average price R$ 253.12 per thousand shares, representing 1.7% of total preferred shares.

6. Efficiency Ratio below 50% for the 7th quarter in a row: 47.3% in the quarter (Strong Cost Control);

7. Solvency Ratio above minimum required: 19.5% at 06/30/04;

3. Net Interest Margin Maintained at 12.7% in 2nd Q./04, same as 1st Q./04;

4. Conservative Accounting Practices: Additional provision of R$ 600 million for securities, with an increase of R$ 55 million in the quarter; Excess provision for loan losses: R$ 1,000 million;

1. Results: Net income of R$ 949 million, 8.3% above previous quarter; ROE 33.1%; net income of R$ 8.38 per thousand shares;



R$ million (except where indicated)

949

8.38

12,787

33.1%

122,760

3.1%

2,501

30,485

19.5%

47.3%

3.5%

12.7%

Net Income

Net Income / thousand shares

Stockholders’ Equity

ROE Annualized (%)

Total Assets

ROA Annualized (%)

Net Interest Margin

Market Capitalization

Solvency Ratio (%)

Efficiency Ratio (%)

NPL (%)

NIM (%)

1st Q/04

876

7.68

12,478

31.2%

126,979

2.8%

2,426

31,277

19.8%

48.8%

4.0%

12.7%

776

6.79

10,772

32.1%

106,799

2.9%

2,535

22,605

18.5%

46.7%

4.7%

13.8%

2nd Q/04 2nd Q/03


Highlights



Credit Operations

16,890

42,381

19,596

27,253

34,282

44,58148,713

14,058

23,674

29,615

38,65938,419

45,414

16,916

0

10,000

20,000

30,000

40,000

50,000

60,000

1998 1999 2000 2001 2002 2003 2004 (*)

Credit Operations Credit Operations and Guarantees

R$ million

CAGR: 21.2%

CAGR: 22.2%

(*) On June 30, 2004.



Corporate

Small and Medium Sized Companies

Individuals

Subtotal

Mortgages

Total

Debentures**

22,357

7,074

*12,563

19,637

2,067

*44,061

1,026

8.9%

12.6%

8.0%

9.8%

-2.0%

8.8%

2.7%

23,597

9,226

13,934

23,159

1,957

48,713

1,092

21,660

8,195

12,904

21,099

1,997

44,756

1,063

5.5%

30.4%

10.9%

17.9%

-5.3%

10.6%

6.4%

Var Jun 30, 04 X Mar 31, 04 Jun 30, 04 Dec 31, 03Mar 31, 04

Var Jun 30, 04 X Dec 31, 03

(1) Endorsements and Sureties included.

(*) The amounts outstanding at Dec/2003 were adjusted to exclude loans granted on 12/18/03 to Rio de Janeiro state civil servants and totally settled on 01/05/04.

(**) The portfolio of Debentures are 68.4% classsified as AA and A level.


Credit Operations 1R$ million



R$ 30.2 R$ 32.3 R$ 32.7 R$ 35.0

R$ 12.5 R$ 12.2 R$ 12.1R$ 13.7

R$ 31.2

R$ 13.4

Jun-03 Sep-03 Dec-03 Mar-04 Jun-04

Local Currency Foreign Currency

R$ 44.6 R$ 42.7 R$ 44.6 R$ 44.8R$ 48.7

(US$ 4.7) (US$ 4.3) (US$ 4.2) (US$ 4.1)(US$ 4.4)

(*) Endorsements and Sureties included.


Credit Portfolio by Currency (*)R$ billion



1,5101,692

1,853 1,9532,196

2,5152,332 2,285 2,234

2,3782,257

2,103 2,065

680

680

715715

715

747841 843 848

913906

1,000 1,000

3,128 3,082

3,2903,163 3,103 3,065

3,2623,172

2,911

2,6682,568

2,372

2,190

Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 Dec.03 Mar.04 Jun.04

Provision for Loan Losses

Total Provision Excess Provision Minimum Provision


R$ million



Non-performing Loans Ratio (1)

1.8

3.5

4.04.14.74.7

4.2

8.58.9

7.3

6.5

8.37.3

2.02.4 2.5

2.2 1.9

Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04

Global Individuals Businesses

Coverage Ratio (2)

189

173

189198 202 204


(2) Provision for Loan and Lease Losses/ Total Non-performing Loans

Non-performing Loans and Coverage Ratios (%)


(1) Loans overdue for more than 60 days/ Credit Portfolio



Securities Portfolio


Overnight (**)

Private Securities – Financial Inst.

Private Securities – Companies

Public Securities – Brazilian: Domestic

Public Securities – Brazilian: External

Public Securities – Other Countries

Total

EconomicFinancial

Conglomerate

Assets Guaranteeing

Technical Provisions (*)

Consolidated

(*) Does not include PGBL/VGBL private pension funds amounting R$ 5,499 million.(**) Includes Short Term Interbank Deposits net of Deposits Received under Securities Repurchase Agreements.

3,393

6,313

2,983

7,342

2,083

907

23,021

761

1,140

309

1,314

-

-

3,524

4,154

7,453

3,292

8,656

2,083

907

26,545

R$ million



Service Fees

1,244

1,323

1,343

1,404

1,455

2nd Q/03

3rd Q/03

4th Q/03

1st Q/04

2nd Q/04 2nd Q/04

333

312

266

219

183

142

1,455

1st Q/04

345

289

244

195

202

129

1,404

Resources Management (*)

Current Account Services

Credit Cards

Sureties and Credits Granted

Collection Services

Other

Total

2nd Q/03

323

247

237

161

167

109

1,244

(*) Mutual Funds and Consortium.

R$ million



Personnel Expenses

Other Administrative Expenses

Reorganization

Total

725

1,211

66

2,002

694

1,235

79

2,009


Administrative Expenses

2nd Q/04 1st Q/04

Strong Cost Control

646

1,127

96

1,869

2nd Q/03

Personnel Expenses 36%Other Admin. 60%Reorganization 4%

R$ million



Total Unrealized

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

2,265

3

663

600

63

276

672

-------------------------------

80

129

441

2,275

9

693

545

148

399

697

--------------------------------

71

109

298

(1) Corresponding tax impact not considered.(2) Includes unrealized minority interest in gains on Equity of R$ 276 million in Jun/04, R$ 286 million in Mar/04 and R$ 159 million in

Jun/03.

Financial Instruments – Market Value


1,425

8

531

545

(14)

23

387

--------------------------------

56

77

343

Unrealized Income/ (Loss) (1) (2)Stockholders’ Equity

R$ million

Jun 30, 04 Jun 30, 03Mar 31, 04



Basel Ratio

Tier I

Tier II

Referential Equity (1)

Basel Ratio

13,568

4,573

June 30, 04 June 30, 03

(1) Equity before exclusions used to calculate the Basel Ratio for the consolidated economic-financial position.

14.0%

5.5%

19.5%

18,141

13,246

4,403

14.0%

5.8%

19.8%

17,649

March 31, 04

12,718

4,645

12.2%

6.3%

18.5%

17,364

R$ million



• The following slides show the Pro Forma information on the operations of

Banco Itaú and Banco Itaú BBA, using internal data for better disclosure of the

managerial performance of the business units.

Pro Forma




Banco

Itaú

875

7,462

55.8%

25,116

97,819

Banco

Itaú BBA

195

3,543

24.0%

23,597

36,191

Net Income

Tier I Allocated Capital

ROE Annualized (%)

Credit Portfolio (*)

Total Assets

Banco

Itaú

623

7,970

35.1%

23,096

101,738

Banco

Itaú BBA

226

3,394

29.4%

21,660

31,130

2nd Q/04 1st Q/04

(*) Endorsements and Sureties included.


R$ million

Pro Forma

Corpo-

ration

27

1,115

10.1%

-

4,764

Corpo-

ration

(122)

1,783

-24.6%

-

5,732

Note: The Consolidated figures do not represent the sum of the parts because certain intercompany transactions were excluded from the consolidated financial statements only.

Corporate results are basically affected by the non accounting of tax credits.

18

Banco Itaú S.A.

Roadshow – Results of the 2nd Quarter of 2004

Variation

-1.06%

-39.8%

2.8%

-0.6%

-11.6%

-21.2%

40.5%

-6.4%

-

Net Interest Margin

Results from Loans Losses

Service Fees


Income Tax and Social Contribution

Other

Net Income


ROE Annualized (%)

2nd Q/04

2,054

(212)

1,379

(1,905)

(244)

(197)

875

7,462

55.8%

2,076

(352)

1,343

(1,917)

(276)

(250)

623

7,970

35.1%

R$ million

Pro Forma

1st Q/04

19

Banco Itaú S.A.


2nd Quarter of 2004

64%

4%

15%

17%

Diversification of income sourcesNot dependent only on interest rates

Consolidated Net Income

Banco Itaú - Banking

Credit Cards

Ins., Cap. and Pension Pl.

Funds and Managed. Port.

Total

562

151

127

35

875

342

126

120

35

623

2nd Q/04 1st Q/04

R$ million

20

Banco Itaú S.A.


3,3523,991

5,4766,138

6,987906902

927

977957

976

1,0771,134

1,168

1,2361,225

1,304

2,821


Technical Provisions - Pension Plans Technical Provisions - Capitalization Technical Provisions - Insurance

4,8045,388

6,086

7,6898,320

Technical Provisions for Pension Plans – growth

of 108% from Jun/2003 to Jun/2004

R$ million

Technical Provisions of Insurance,Capitalization and Pension Plans

9,267

21

Banco Itaú S.A.


Variation 1st Q/04 2nd Q/04

120Result of Ins., Cap. and Pension Plans 5.8%127

94.8%Combined Ratio 94.0%

55.0%Claim Ratio 51.1%

24.0%

49.0%

-

4.3%

-10.0%

•Insurance Premiums, Pension Plan

Contributions and Premium Bond Revenues•Changes in Technical Provisions •Selling Expenses•Insurance Claims, Pension Plan Benefits and

Premium Bond Redemption•Other Operating Income/(Expenses)

1,373

(593)

(96)

(529)

30

1,700

(885)

(96)

(552)

27

186Operating Margin 4.3%193

-5.7%

-8.5%

8.1%

50.0%

Financial Income

Administrative and Tax Expenses

Income Tax and Social Contribution

Other

158

(165)

(62)

2

149

(151)

(67)

3

R$ million (except where indicated)

Insurance, Capitalization and Pension Plans

22

Banco Itaú S.A.


Mutual Fund and Managed Portfolio Volume

68.1 72.881.1

87.1 89.6

Jun-03 Sep-03 Dec-03 Mar-04 Jun-04

Growth of 31.6% in the volume of Mutual Funds and Managed Portfolios in relation to June/2003

R$ billion

23

Banco Itaú BBA S.A.


2nd Q/04

329

(6)

76

(92)

(27)

(85)

195

3,543

24.0%

1st Q/04

269

150

63

(91)

(91)

(74)

226

3,394

29.4%

Net Interest Margin

Result from Loan Losses

Service Fees


Tax Income and Social Contribution

Other

Net Income


ROE Annualized(%)

Variation

22.6%

-104.0%

20.6%

1.1%

-70.7%

14.9%

-13.6%

4.4%

-

R$ million

Pro Forma

24

Banco Itaú BBA S.A.


Jun 30, 04

226

18,954

1.2%

Non-performing Loans (NPL)

Credit Portfolio (*)

NPL Ratio1 (%)

Mar 31, 04

245

17,361

1.4%

Variation

-7.8%

9.2%

Itaú BBA has a high quality corporate portfolio with 96.6% of its volume

classified as “AA”, “A” and “B”.

R$ million

Non-performing Loans 1

(*) Endorsements and Sureties not included.

(1) Loans overdue for more than 60 days



Capital Excess


1. Increase in Interest on Own Capital (JCP):

a) Monthly JCP: from R$ 0.13 to R$ 0.17 per thousand shares (gross of taxes);

b) Provisioned complementary JCP of R$ 2.04 per thousand shares (gross of taxes) paid

in 08/23/04 with an increase of 31% in relation to 06/30/03.

2. Share Buyback:

• Preferred share buyback to be held as treasury stock

3. Investments

• Pão de Açúcar: R$ 455 million

2nd Q/04

929,740

1st Q/04

73,070Quantity (in thousands)

Total

1,002,810

Average Cost (R$ / thousand shares)

% of Total Preferred Shares (*)

253.12 260.06 253.62

1.7% 0.1% 1.8%

(*) Preferred shares representative of Capital



Agenda





Peers comparison


3.0 4.57.4 8.3 9.6 10.02.3

2.7

4.0 3.44.1

3.9 4.0

Dec/02 (1) Mar/03 (2) Jun-03 Sep-03 Dec-03 Jun-04

Itaú Fináustria Fiat* CDC: Consumer Credit(1) Acquisition of Fináustria CFI(2) Acquisition of Banco FiatIn June 2003, the Fináustria Portfolio was incorporated by Itaú. Source :Banco Itaú estimate based on Central Bank, Abel, Itaú, Fiat and Fináustria.

5.3

Market Share (%)New CDC* and Vehicle Leasing

11.2 10.812.4

13.5 14.0

Fináustria and Fiat


Consumer Credit


New Brand Name (related to Itaú)

Focus on low income consumers (not Itaú current account holders)

Own platform

Highlights


Picture of a Point of Sale

Three different points of sale models: Independent, Annex and Corner.


New Brand Name (related to Itaú)

Focus on low income consumers (not Itaú current account holders)

Own platform

Operation started in June with three stores in São Paulo

Forecast is to open one store every 15 days until October

Revenue diversification in the specific financing segment

Credit using magnetic card and electronic banking facilities

Operating agility

Highlights


Initial Performance

3,649 Customers

0

200

400

600

800

1,000

1,200

1,400

8-Jun 30-Jun

26-Jul(*)

R$ thousands

1,119

(*) Credit Granted / Credit Limit = 91%

CAGR = 16.9%

CAGR = 17.9%

Total Credit Limit

Total Credit Granted

1,221

768

386

139661

310105


COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO


Itaú-CBD Partnership

32


Main Purpose

Founding a “New Company” (Financial

Institution), responsible for structuring and

selling products, financial services and the

like, exclusively to CBD customers.



“New Company ”50% 50%

“New Company” Structure

Improving and expanding services and products offered to CBD Customers

Initial Capital Base: R$ 150 million.



Estimated Expansion “New Company”

Consumer Credit Contracts

Own Credit Cards (Private Label)

Credit Cards3

Personal Loan Contracts

580 thousand

3.3 million

480 thousand

-

Quantities CAGR2

Year 10

Quantities

Current1

3,519 thousand

9.3 million

2,646 thousand

1,600 thousand

22.2%

12.2%

20.9%

(1) As of March 31, 2004

(2) Compound Annual Growth Rate

(3) Widely accepted credit card brands



Operation Features

Operating synergy gains

Expansion and improvement of current products and services offered to CBD customers

Private Label credit cards

Widely accepted credit card brands

Direct consumer credit

Personal loans

Installation of financial service units in the 555 existing stores and at those which may come to be established by CBD



Location of CBD Stores

209

71

160

55

555

60

Piauí

3Ceará

20 2

Paraíba

6

Comprebem

Bahia

3

Rio de Janeiro

11

17 18

60São Paulo

136 39

142

55

Paraná

2 11

Mato Grosso do Sul

1

Minas Gerais

3

Distrito Federal

12 3

1

Goiás

40 million transactions per month

Gross revenues in 2003: R$ 15 billion (*)

(*) Source: ABRAS (Brazilian Supermarket Industry) – including Sendas S.A. Data of 2003


Number of Points of SaleJul/04


“New Company” Management

Board of Directors and Operations Support Committee, comprised equally by the shareholders

Chairman of the Board of Directors and the “New Company” appointed by Itaú

Executive Board made up of market professionals, with broad experience in the area

Operating Management under the responsibility of Itaú

Own structure and personnel



Strategy of the Operation

Expansion of Focus on direct consumer credit

Long term partnership: 20 years, and renewal option

Exclusivity in exploitation of financial products and

services to CBD customers

Strong partnership = greater commercial relationship



Investment of R$ 455 million, which include goodwill in the amount of R$ 380 million, determined on the basis of forecast future profitability of the New Company

Strengthening of position in the retail financial market

Development of new relationships with the CBD store customers as well as prospecting of new current account customers

Results without any major impact during the first three years of operations.

Main implications on Itaú




Business Plan – Distribution Network

Lay-Out of the Point of Sale (*)

(*) Schematic and illustrative drawing used only as an example.



Agenda





Peers comparison



Jun-99 – Publication of the MD&A begins

2000 – Corporate Code of Ethics

Apr-00 – Creation of the IR Website

May-01 - 10h long APIMEC meeting

Jun-01 – Compliance to Bovespa’s Level 1

Jul-02 – Disclosure and Trading Committees

2002 - 11 Apimec meetings (pioneership in Brazil)

Sep-03 – The Best Corporate Governance in emerging markets (Euromoney)

2003 – Best worldwide On-line Annual Report

Feb-04 – Publication of Annual Report on the same day as the Financial Statements

Aug-04 – Adherence to Equator Principles

TransparencyApr-00 – Installation of totally independent Fiscal CouncilApr-01 – Independent Members elected to Board of DirectorsApr-02 - Tag Along and enhanced independence of the councilsJul-02 – Disclosure and Trading ComitteesSep-03 – Conclusion of PSO for acquisition of shares of Banestado, BEG and Bemge shareholdersSep-03 – Share Buyback Program –Acquisition period increased to one yearMar-04 – New vehicle for communicating with stockholders (Itaú’s Share in Focus)Apr-04 – Audit Committee with three councilors, among 2 independent

Respect for Minority Shareholder

Member of the Dow Jones Sustainability Index since 1999 (5th consecutive year)

February 2002 – NYSE ADR Level II – FHC Status



Audit Committee installed in April 2004;

All three members also sit on the Board of Directors;

Independent Board member Tereza Grossi appointed “Financial Expert” of the Audit Committee.

Audit Committee

2 Independent Board members and one external*;

Fully Compliant with Central Bank Res. 3.081 and Sarbanes-Oxley Act;

(*) According to the definition contained in the Best Practice Code of the IBGC – Brazilian Institute of Corporate Governance, as of March 2004.



Agenda





Peers comparison




Creation of the Instituto Itaú Cultural;

2004 - R$ 20 million forecasted;

2003 – 427,000 visitors + 1,653 groups from 495

institutions totaling 30,000 people;

Over 220 events in Brazil and 9 abroad;

Permanent collection, specialized in Brazilian

artistic and cultural themes, has over 31,000

pieces;

Eco Award 2003, category Culture.

1987 – Cultural Performance

www.itaucultural.org.br



Creation of the Itaú Social Program;

2000 - Itaú Social Foundation;

2004 - R$ 23 million forecasted;


1993 – Social Performance

Participation in Bovespa’s Social Stock Exchange project.

Itaú - 59 years of committment to society and Brazilian social-economic development.

Foundation’s partnerships: Futura Channel, Solidarity Skills Training Program, Volunteer School Award, Literacy Solidarity Program;




Focus: improvement in the quality of elementary public education:

Stockholders’ Equity R$ 302 million

(Dec/2003)Direct action in

schools

Own Programs

Complementary actions to school performed by NGO´s

• Itaú – Unicef Award• Regional Educators’ Meetings• Apprenticeship Managers

Urban Youth Program



1999 – Dow Jones Sustainability World Index

World benchmark;

Component since the creation of the index (1999);

Only 3 Brazilian companies;

5th consecutive year – Last revision published on 09/02/2004

The only Latin American bank;

Sustainable growth;

Social, Cultural and Environmental Dimensions;

Sustainability in creating stockholders’ value.






Itaú BBA´s long-term environmental finance policy for large corporations, approved by IFC (International Finance Corporation), a member of the World Bank Group;



1999 – Dow Jones Sustainability World Index

2000 – Environmental Management System

August 2004: Itaú and Itaú BBA adherence to the Equator Principles.

Methodology used as criteria of credit approval through assessment and evaluation of environmental risks of the projects;

Transfer of more than US$ 200 million from multilateral bodies to customers between 2000 and 2004;




Agenda





Peers comparisonBrand



The Most Valuable Brands in Brazil“Dinheiro” Magazine – June 2004

Company

BradescoNaturaBanco do BrasilSkolPetrobrasBrahmaUnibancoAntarcticaRealEmbraerSadia

Value in 2001

697-

308---

303--

196128

Value in 2003

809-

427421286294208184133193106

Itaú 970 1,093Value in 2004

828536520512485352223192171159156

1,204

US$ millionUS$ millionSurvey conducted by the British Consultancy, Interbrand



Itaú HoldingBradesco

Banco do Brasil

BankBoston

Real ABN Amro

Citibank

Unibanco

HSBC

Santander

CEF

13.21

11.05

11.01

10.41

9.27

8.45

7.29

4.00

3.31

The Most Admired Companies*Banking Sector

(*) Source: Carta Capital Magazine / Interscience

1st

2nd

8th

4th

3rd

5th

6th

9th

12th

n.d.

2001

1st

2nd

7th

4th

5th

3rd

6th

8th

9th

15th

2002

16.062nd

1st

7th

3rd

5th

4th

8th

9th

12th

n.d.

2000

1st

2nd

7th

3rd

5th

4th

8th

14th

13th

n.d.

1999

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

200 Ranking in 2003



Agenda


Focus in the consumer credit segments



Peers comparisonBrandProductivity with Efficiency



19

32

28

32

26 27

31

16 16

22 22

1917

18

1312 12 12

22

20

23

15151516

1315

16

1998 1999 2000 2001 2002 2003 2004(*)

Profitability Indicators (%)ROE – return on equity

Itaú Bradesco Unibanco Banco do Brasil

(*) Annualized indices – 1st semester 2004.Source: Published Financial Statements.



1.8

3.6

2.6

2.9

2.1

2.7

3.0

1.5 1.4

1.82.0

1.4 1.3

1.6 1.71.5 1.51.4 1.5

1.31.41.3

1.01.0

0.7 0.7 0.7 0.7

1998 1999 2000 2001 2002 2003 2004(*)


Profitability Indicators (%)ROA – return on assets

(*) Annualized indices – 1st semester 2004.Source: Published Financial Statements.



Net Income

1,841

2,389 2,377

3,152

3,650

591739

972843

9741,082

2,028

2,381

2,842

1,869

2,5002,306

1,7402,023

1,105

2,170

1,010 1,052 1,162

1999 2000 2001 2002 2003 2004(*)

R$ million


(*) Annualized (1st semester 2004 results doubled). Source: Published Financial Statements.



Number of Branches + CSBs1

3,192 3,172

7,155 7,4988,468

12,33313,220

13,908

3,0743,184

2,9952,545

5,2635,1143,807

4,800

3,4343,994

1,080 1,2651,2791,3141,3831,559

1999 2000 2001 2002 2003 2004

quantity


(1) CSB: Customer-Site BranchSource: Published Financial Statements.



Number of Employees

19

28 3027 28 29

82

90 90 8891 93

4242434548

39

7576

66

74

64 66

1999 2000 2001 2002 2003 2004Itaú Bradesco Unibanco Banco do Brasil

Source: Published Financial Statements.

thousands



48

39

53 55

74

87

17

2633

2730

3330

26

3338 38 40

10 11 12

2326

31

1999 2000 2001 2002 2003 2004(*)

Net Income per Employee R$ thousands





734

615

750 745

994

1,187

457

543

421 451 473547

474

703769

823

918

118 130 128164 180 204

322

1999 2000 2001 2002 2003 2004(*)

R$ thousands

Net Income per Branch (Branches + CSBs1)


(*) Annualized (1st semester 2004 results doubled). (1) CSB: Customer-Site BranchSource: Published Financial Statements.



Banking Service Fees

3.5

2.7

4.5

5.1

5.7

1.6

2.22.6 2.8

3.12.8

3.2

3.8

4.5

6.4

3.23.5

2.1

3.7

3.0

4.6

5.4

1.5

5.5

1999 2000 2001 2002 2003 2004(*)

R$ billion

Itaú Bradesco Unibanco Banco do Brasil(*) Annualized (1st semester 2004 results doubled). Source: Published Financial Statements.



8173

81

103

121

135

33

4653 50

60

7274

58

74

98103 106

34 3542

5160

69

1999 2000 2001 2002 2003 2004(*)


Banking Service Fees per EmployeeR$ thousands




1,2411,157 1,162

1,399

1,615

1,860

612

799 869773

891

1,342

1,052

1,580

1,991

2,219

2,468

392 425 444361 415 459

1,020

1999 2000 2001 2002 2003 2004(*)


R$ thousandsBanking Service Fees per Point of Sales (Branches + CSBs1)




Personnel Expenses

5,036

5,623

5,575

5,548

6,812

7,053

1,165

1,603

1,647

1,772

1,886

2,680

3,109

3,389

3,936

4,609

4,654

2,129

2,311

2,750

3,204

3,174

3,129

1,0531999

2000

2001

2002

2003

2004(*)

R$ million


(*) Annualized (1st semester 2004 results doubled).




62

62

62

63

75

76

54

41

54

62

64

64

42

47

52

53

61

62

55

49

61

74

75

74

1999

2000

2001

2002

2003

2004(*)

Personnel Expenses per Employee R$ thousands





R$ thousands

704

750

658

450

515

507

975

747

1,159

1,253

1,386

1,491

780

817

849

837

771

864

1,004

1,001

1,018

901

881

820

1999

2000

2001

2002

2003

2004(*)

Personnel Expenses per Point of Sales (Branches + CSBs1)

Itaú

Bradesco

Unibanco

Banco do Brasil

(*) Annualized (1st semester 2004 results doubled). (1) CSB: Customer-Site Branch




Total Expenses (Personnel + Administrative)

7,609

8,505

9,160

9,644

11,326

12,067

3,002

3,964

4,770

4,611

5,183

6,430

7,244

7,800

8,022

4,578

4,233

2,727

9,501

9,423

6,087

7,964

5,247

6,825

1999

2000

2001

2002

2003

2004(*)

R$ millions

Itaú

Bradesco

Unibanco

Banco do Brasil




93

94

102

109

125

130

140

106

133

158

166

163

83

93

104

107

124

127

118

109

142

168

184

190

1999

2000

2001

2002

2003

2004(*)

Total Expenses per Employee R$ thousands

Itaú

Bradesco

Unibanco

Banco do Brasil




1.1

1.1

0.8

0.9

0.9

2.5

1.9

2.9

3.2

3.6

3.8

1.5

1.6

1.7

1.7

1.8

1.8

1.8

1.7

2.0

2.3

2.5

2.6

1.1

1999

2000

2001

2002

2003

2004(*)

Total Expenses per Point of Sale (Branches + CSBs1) R$ million

Itaú

Bradesco

Unibanco

Banco do Brasil




Excess Loan Loss Provions

Additional Provision for Securities

Market Value

Subtotal (A)

Labor

Civil

Tax

Others

Subtotal (B)

Total (A) + (B)

Provisions / Assets (%)

Provisions as at June 30th, 2004R$ million

1,000

600

1,665

3,265

1,059

643

2,266

279

4,247

7,512

6.1

Itaú

973

nd

nd

973

1,891

686

124

-

2,702

3,675

1.6

905

-

935

1,840

882

563

3,002

-

4,448

6,288

3.6

Banco do Brasil

Bradesco

267

-

633

899

804

500

799

-

2,103

3,002

4.5

Unibanco



30

50

70

90

110

130

150

170

190

210

dez-

98

fev-

99

mai

-99

jul-9

9

out-9

9

dez-

99

mar

-00

mai

-00

ago-

00

out-0

0

jan-

01

mar

-01

jun-

01

ago-

01

nov-

01

jan-

02

abr-

02

jul-0

2

set-0

2

dez-

02

fev-

03

mai

-03

jul-0

3

out-0

3

dez-

03

mar

-04

mai

-04

ago-

04

EMBI Br + ITAU4 (US$)

Relation Between EMBI Brazil + and Itaú Holding Preferred Shares in US$


Correlation Between EMBI Br + and ITAU4 = (0.83)

Correlation Between EMBI Br + and Ibovespa = (0.73)



200.4%

344.9%325.7%

274.1%

227.2%250.0%

142.1%

67.7%107.7%109.1%

137.8%

234.8%

156.1%

110.5%95.8%

110.2%

167.9%154.1% 125.3%

507.7%

454.3%

534.1%

687.5% 697.4%

483.5%522.5%

50%

150%

250%

350%

450%

550%

650%

750%

1998 1999 2000 2001 2002 2003 2004(*)

Exposition in Public Securities of Brazilian Government - Country In % over the Stockholders´ Equity

(*) On June 30th, 2004.




15.7%19.2%

42.0%

48.1%

13.2%

16.3%18.8%

8.0%

16.3%

6.4%

3.6% 13.7%6.0%

2.2%

19.0%

5.2%0.5%

15.7%

30.0%

19.2%19.9%19.6%

0.0%

77.8%83.2%

64.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1998 1999 2000 2001 2002 2003 2004(*)

Exposition in Public Securities of Brazilian Government - Foreign In % over the Stockholders´ Equity

(*) On June 30th, 2004.




348.5%332.0%

298.1%

183.6%155.3%

84.0%

219.6%

157.8%

151.0% 126.5%

251.1%

117.1%

269.3%287.9%

278.4%

199.8%

96.2%

158.2%

115.7%

160.1%129.2%

503.1%

541.7%

717.3%687.5%

611.9%

537.5%

572.2%

50%

150%

250%

350%

450%

550%

650%

750%

1998 1999 2000 2001 2002 2003 2004(*)

Exposition in Public Securities of Brazilian Government - Total In % over the Stockholders´ Equity

(*) On June 30th, 2004.




(2) Includes non-exclusive funds administered by the group, in the amount of R$ 446,919, which do not include public securities.

(3) Portfolios of PGBL and VGBL pension plans owned by customers and recorded as marektable securities in compliance with SUSEP requirements, in contra entry against liabilities in Technical Provision for Pension Plans.

(1) Includes securities restricted to guarantees in the amount of R$ 5,872,343, being: Guarantor Resources of Technical Provisions R$ 2,763,119, Securities Subject to BACEN R$ 917,492 and Securities Subject to stock exchange and clearing house for the custody and financial settlement of securities amount of R$ 2,191,732.

Public Securities - Domestic (1)

Public – Foreign

Private Securities (2)

Euro Bonds and Others

PGBL/VGBL Funds Quotas (3)

Subtotal - Marketable Securities

Derivative Financial Instruments

Total

325

15

1,966

83

5,499

7,888

150

8,039

27.8%

94

98

1,592

82

-

1,866

247

2,113

7.3%

553

2

933

144

-

1,632

191

1,822

6.3%

2,154

88

899

177

-

3,318

226

3,544

12.2%

2,475

103

604

652

-

3,834

160

3,995

13.8%

5,137

601

1,771

1,842

-

9,352

132

9,483

32.7%

10,738

907

7,766

2,979

5,499

27,890

1,106

28,997

100.0%

(600)

13,857

876

897

2,168

2,459

24,226

1,825

26,051

(545)

0 - 30 31 - 90 91 - 180 181 - 365 366 - 720 Over 72006/30/03

06/30/04

Additional allowance (exceeding minimum required)

Maturity of Portfolio Securities and DerivativesR$ thousand

Total



Banking Service Fees / Total Expenses (%)

67

5862

6671

40

5047 48

5753 55 55

62 626569

51 5348

46

37 3841

1999 2000 2001 2002 2003 2004(*)





Efficiency Ratio1 (%)

4955 55

58

484650

5859 60

575762

555353

5754 54

69

81 82

67

55

1999 2000 2001 2002 2003 2004(*)


(*) Annualized (1st semester 2004 results doubled). (1) Total Expenses over Total IncomeSource: Published Financial Statements..



Total Deposits *

72,214

69,070

73,436

97,253

110,014

115,795

9,266

13,350

18,932

25,988

25,357

29,328

23,226

27,875

28,331

38,997

36,698

36,041

41,084

34,724

56,363

36,469

58,024

64,133

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Jun-04

R$ million

Itaú

Bradesco

Unibanco

Banco do Brasil

(*) Includes Demand, Savings, Long-term and Interbank DepositsSource: Published Financial Statements.



1,211

1,250

476

470

637

918

1,000

547

554

625

758

766

858

595

587

624

902

864

854

816

763

884

1,103972

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Jun-04

Total Deposits per EmployeeR$ thousands

Itaú

Bradesco

Unibanco

Banco do Brasil




8.3

8.3

8.6

8.6

13.7

19.8

23.2

10.1

9.6

10.3

11.7

11.3

12.1

9.1

9.3

8.9

12.2

11.6

11.7

8.7

9.2

10.1

7.919.8

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Jun-04

Itaú

Bradesco

Unibanco

Banco do Brasil

Total Deposits per Point of Sale (Branches + CSBs1)

R$ million

Source: Published Financial Statements (1) CSB: Customer-Site Branch



Assets under Management

33,500

48,000

61,400

66,200

102,700

116,900

13,441

20,467

20,398

18,384

26,945

40,238

52,997

59,042

54,259

81,527

31,994

41,665

55,796

59,167

80,097

89,565

30,50386,816

Dec-99 (*)

Dec-00 (*)

Dec-01 (*)

Dec-02

Dec-03

Jun-04

Itaú

Bradesco

Unibanco

Banco do Brasil

(*) In Bradesco, is referred to the figures with double accounting.

R$ million

Source: Published Financial Statements



Asset Management Income

413

542

633

700

784

951

247

219

248

245

314

374

445

531

541

460

609

903

831

847

1,031

1,269

1,284847

1999

2000

2001

2002

2003

2004(*)

R$ million

Itaú

Bradesco

Unibanco

Banco do Brasil

(*) Annualized (1st semester 2004 results doubled). Source: Published Financial Statements



Asset Management Income / Assets under Management (%)

1.2

1.1

1.0

1.1

0.8

0.8

1.8

1.1

1.2

1.3

1.2

1.2

1.1

1.0

0.9

0.8

0.7

2.8

2.0

1.5

1.7

1.6

1.41.0

1999

2000

2001

2002

2003

2004(*)Itaú

Bradesco

Unibanco

Banco do Brasil

(*) Annualized (1st semester 2004 results doubled)Source: Published Financial Statements



Agenda





Peers comparisonBrandProductivity with EfficiencyStock Market Performance



10,732

18,652

22,796

32,43932,781

32,048

21,794

23,828

18,751

21,287

18,26719,634

17,796

6,949

9,228

17,119 16,969

3,175

6,036 5,542 4,7806,234

7,5406,344

21,81022,381

24,097

18,238

15,841

6,901

15,365

20,34517,469 18,007

15,016

7,9587,748

7,068

8,3677,443

7,637

2,431

6,9446,883

17,72016,470

9,582

7,174

17,568

6,835

11,712

4,9844,2514,592

5,9814,984

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Dec-98

Mar-99

Jun-99

Sep-99

Dec-99

Mar-00

Jun-00

Sep-00

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

ago/04

(*)

Consistently the Largest Market Capitalization in the Brazilian Banking Sector

R$ million

Source: Economática (*) – Until August 13,2004

Banco do Brasil

Itaú

Bradesco

Unibanco


CAGR Queterly = 7.31%

CAGR Quarterly = 5.49%

CAGR Querterly = 5.58%

CAGR Quarterly = 5.41%



432

185184

318

100

200

300

400

500

1998 1999 2000 2001 2002 2003 2004

ItaúBradescoUnibancoBanco do Brasil

Source: Published Financial Statements

For the sake of comparation, first half net income has been doubled

Market Comparison – EPSBasis: 1998 = 100

287

177

371

171

167

153124

266



0

200

400

600

800

1,000

1,200

94 95 96 97 98 99 00 01 02 03 04

Itaú (*)

Bradesco (*)

Unibanco (*)

Banco do Brasil (*)

Ibovespa

US$

793

187

322Real Plan

Russian Crisis

Real Devaluation

Mexican Crisis

Asian Crisis

100

Argentine Crisis

Attack to WTC

10 years

5 years

2004

Itaú

22.98%

16.92%

-4.24%

Unibanco

9.52%

5.01%

-12.64%

Average Annual Appreciation in US$

(*) Without dividends reinvestment.

Preferred Shares AppreciationEvolution of US$ 100 invested on June 30th, 1994 to June 30th, 2004

Bradesco

12.40%

11.35%

-13.07%

Bco. Brasil

-6.85%

12.85%

-12.84%

249

Ibov.

6.50%

0.71%

-11.57%

49


September 08-10, 2004

Presentation to:

3rd Annual Global Markets One-on-one Conference

New York


Alfredo SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

banco itaú holding financeira s.a. september 08-10, 2004 presentation to: 3 rd annual global...

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net income of r

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