Itaucred

1

Conference Call of the Results of the Conference Call of the Results of the

2nd Quarter/20072nd Quarter/2007

August 08, 2007

2

Highlights

2. The loan portfolio growth 3.7% in the quarter and 40.2% in the last 12 months:

• Personal Loans: 1.8% in the 2nd Qtr/07 and 11.3% in the last 12m;• Vehicles: 12.4% in the 2nd Qtr/07 and 58.6% in the last 12m;• Small and Mid-Sized Companies 5.4% in the in the 2nd Qtr/07 and 59.7% in the last 12m;

1. Results• 2nd Qtr/07: Recurring Net Income of R$ 1,919 million, a 0.9% increase compared to

Q1/07; annualized ROE of 29.8% (1st Sem/07: Recurring Net Income of R$ 3,820 million and ROE of 30.5%);

• 2nd Qtr/07: Net Income of R$ 2,115 million (1st Sem/07: Net Income of R$ 4,016 million and ROE of 32.1%).

3. Non-Recurring Events: • R$ 400 million increase in the excess provision for loan losses in the quarter, reaching the

balance of R$ 2,150 million.• Selling of 22.3% of interest in Serasa S.A. with an income after taxes of R$ 485 million

(maintaining 10.9% interest on Serasa).

4. Nonperforming Loans Ratio: Nonperforming loans ratio of 5.1%.

5. BIS Ratio: Sustaining of the high level of 17.6%. Considering the new regulatory guidelines about gold and foreign exchange exposure that will have impact starting on 07/02/2007, the solvency ratio for 06/30/07 would be of 16.0%.

3

  2nd Q/07 1st Q/07 1st Sem./07 1st Sem./06

Net Income 2,115 1,902 4,016 2,958

Selling of interest on Serasa (485) - (485) -

Exceeding Provision for Loan Losses 264 - 264 152

Loans sold - - - (122)

Reversal of additional provision for securities - - - (125)

Revenues and expenses of deposits and mandatory funds

- - - (99)

Escrow account Itaú BBA 82 - 82 -

Selling of BkB building (75) - (75) -

Hedge of BkB positions - - - 36

Amortization of goodwill 2 19 - 19 70

Other - - - 5

Total - Non Recurring Effects (196) - (196) (84)

Recurring Net Income 1,919 1,902 3,820 2,874

Non Recurring Effects1

1 For further details, please consult Itaú Holding’s Management Discussion and Analysis report.

2 In the 2nd Quarter/07, effects of BankBoston International and BankBoston Trust acquisition.

R$ Million

4

Highlights

  2nd Q/07 1st Q/07 Variance 1st Sem/07 1st Sem/06 Variance

Net Income 2,115 1,902 11.2% 4,016 2,958 35.8%

Recurring Net Income 1,919 1,902 0.9% 3,820 2,874 32.9%

Recurring Net Income per share (R$) 1.60 1.59 0.9% 3.18 2.59 23.1%

Stockholders’ Equity 26,546 24,971 6.3% 26,546 17,555 51.2%

Recurring ROE (Average Equity) annualized (%)

29.8% 31.3% -150b.p. 30.5% 34.7% -420b.p.

Market Capitalization 103,219 86,277 19.6% 103,219 69,756 48.0%

Solvency Ratio (%) 17.6% 16.5% 110b.p. 17.6% 16.3% 130b.p.

Efficiency Ratio (%) 45.8% 44.1% 170b.p. 44.9% 45.8% -90b.p.

Nonperforming Loans Ratio (%) 5.1% 5.0% 10b.p. 5.1% 5.2% -10b.p.

R$ Million

5

Itaú Holding Pro Forma

2nd Q/07 1st Q/07 Variance 1st Sem/07 1st Sem/06 Variance

Managerial Financial Margin 5,250 4,984 5.3% 10,234 7,603 34.6%

• Banking Operations 4,417 4,369 1.1% 8,786 6,841 28.4%

• Treasury 571 367 55.6% 939 478 96.3%

• Management of Foreign Exchange Risk from Investments Abroad

262 248 5.7% 510 283 79.7%

Banking Service Fees 2,550 2,421 5.3% 4,971 4,249 17.0%

Managerial Financial Margin plus Banking Service Fees

7,800 7,405 5.3% 15,205 11,852 28.3%

Result of Loan Losses (1,217) (1,266) -3.9% (2,483) (2,363) 5.1%

Non Interest Expenses (3,524) (3,280) 7.5% (6,804) (5,489) 24.0%

Recurring Net Income 1,919 1,902 0.9% 3,820 2,874 32.9%

R$ Million

6

Loans by Type of Customer

  Jun 30,07 Mar 31, 07 Dec 31,06 Jun 30,06Variance

jun/07-mar/07

Variancejun/07-dec/06

Variancejun/07-jun/06

Individuals 45,035 41,972 40,358 33,896 7.3% 11.6% 32.9%

• Credit Cards 8,867 8,501 9,188 7,372 4.3% -3.5% 20.3%

• Personal Credit 13,886 13,641 13,156 12,479 1.8% 5.6% 11.3%

• Vehicles 22,282 19,830 18,014 14,046 12.4% 23.7% 58.6%

Company Loans 46,885 46,631 46,567 35,409 0.5% 0.7% 32.4%

• Corporate 25,630 26,463 26,816 22,104 -3.1% -4.4% 16.0%

• Small and Medium Sized 21,255 20,168 19,751 13,306 5.4% 7.6% 59.7%

Mandatory Credit 1 5,711 5,637 5,881 4,652 1.3% -2.9% 22.8%

Argentina, Chile and Uruguay 7,190 6,830 842 826 5.3% 754.1% 770.6%

Total Loans 104,821 101,071 93,648 74,783 3.7% 11.9% 40.2%

1 Rural and Mortgage Loans – linked with the balances of Demand and Savings Deposits, respectively.

R$ Million

7

Loan Portfolio Breakdown

IndividualsSmall and Medium-Sized CompaniesMandatory Loans

CorporateArgentina / Chile / Uruguay

38.8% 41.3% 41.9% 42.6% 45.3% 41.7% 43.1% 41.5% 43.0%

17.9% 17.7% 17.9% 18.2% 17.8% 20.8% 21.1% 20.0% 20.3%

7.2% 6.9% 6.7%6.2% 6.4% 6.3%

5.6% 5.4%

34.8% 33.0% 32.4% 31.9% 29.6% 30.2% 28.6%26.2% 24.5%

6.3%

1.3% 1.1% 1.1% 1.1%1.0% 0.9%0.9% 6.8% 6.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

8

Nonperforming Loans and Coverage Ratios

Nonperforming Loans Ratio Coverage Ratio (*)

NPL RatioNPL Ratio- IndividualsNPL Ratio- Businesses

(*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

2.1%1.6%

2.2% 2.1% 2.3%

5.2%5.1% 5.3% 5.0% 5.1%

8.1% 8.3% 8.1% 7.8%7.5%

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

162%166%168%169%164%

Jun-07Mar-07Dec-06Sep-06Jun-06

9

Coverage Ratio (*)

(*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

164% 169% 168% 166% 162%

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

176% 178% 179% 180% 183%

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

125% 135% 128% 117%104%

Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

Consolidated Consolidated – Not including Itaucred Vehicles

Itaucred Vehicles

Change in the credit portfolio mix with the growth of vehicle financing

Lower risk (Real Collateral)

Lower need of provisions

Lower Loss Given Default

10

Exceeding Provision for Loan Losses

• Maintaining the criteria standing in the 1st Q./07, it would not be

necessary to increase the exceeding provision for loan losses, and the

coverage ratio would be 154%, as a consequence of the current credit

portfolio mix.

• However, in this quarter, we reviewed our statistical basis and

adopted more conservative criteria in the projection of delinquency

increases arising from a strong reversal of the economic cycle under

market stress conditions, which resulted in the constitution of R$ 400

million of exceeding provision for loan losses.

11

Nonperforming Loans (NPL) by Segment

  Jun 30, 07Mar 31,

07Dec 31,

06

  NPLCredit

PortfolioNPL

RatioNPL

RatioNPL

Ratio

Itaubanco 2,727 43,429 6.3% 6.5% 7.3%

Banking 2,460 38,798 6.3% 6.6% 7.6%

Credit Cards – Account Holders 267 4,632 5.8% 5.7% 5.2%

Itaú BBA 57 20,626 0.3% 0.1% 0.7%

Itaucred 2,098 31,492 6.7% 6.5% 6.2%

Vehicles 1,293 23,984 5.4% 5.1% 4.8%

Credit Cards – Non Account Holders 258 3,663 7.0% 5.9% 5.5%

Taií 547 3,845 14.2

% 15.3% 15.2%

Total 4,882 95,548 5.1% 5.0% 5.3%

R$ Million

12

Funding

 

Jun 30,07 Mar 31,07 Jun 30,06

Variance (%)

 jun/07-mar/07

jun/07-jun/06

Deposits 1 105,055 99,533 69,910 5.5% 50.3%

Investment Funds 180,121 174,836 129,641 3.0% 38.9%

Managed Portfolios 2 21,008 11,434 9,282 83.7% 126.3%

Technical Provisions Regarding to Insurance, Pension Plans and Capitalization

21,510 20,131 16,409 6.9% 31.1%

Subtotal – Clients 327,694 305,933 225,242 7.1% 45.5%

Funds from Acceptances and Securities Issued 7,899 7,831 6,791 0.9% 16.3%

On-lendings 5,443 5,348 4,188 1.8% 30.0%

Repurchase Agreement – Third Part Portfolio 9,860 14,098 5,594 -30.1% 76.3%

Subtotal - Market 23,202 27,277 16,573 -14.9% 40.0%

Total 350,896 333,210 241,815 5.3% 45.1%

R$ Million

1 Includes Repurchase Agreement – Own Issue Securities.

2 On Jun 30, 07, include the acquisition of two companies from Bank of America: BankBoston International (Miami) and Bank of America Trust

Company Ltd (Bahamas).

13

Banking Service Fees

2nd Q/07 1st Q/07 Variance 1st Sem/07 1st Sem/06 Variance

Asset Management 1 504 482 4.4% 986 911 8.2%

Current Account Services 406 405 0.4% 811 739 9.7%

Credit Cards 592 576 2.7% 1,168 989 18.1%

Loan Operations and Guarantees Provided

545 498 9.4% 1,042 778 34.0%

Receipt Services 229 222 3.0% 451 431 4.7%

Other 274 238 15.5% 512 400 28.0%

Total 2,550 2,421 5.3% 4,971 4,249 17.0%

R$ Million

1 Funds and Consortia Management Fees

14

Non Interest Expenses

2nd Q/07 1st Q/07 Variance 1st Sem/07 1st Sem/06 Variance

Personnel Expenses (1,341) (1,252) 7.1% (2,593) (2,190) 18.4%

Other Administrative Expenses (1,624) (1,539) 5.5% (3,163) (2,518) 25.6%

Other Operating Expenses (460) (377) 22.0% (837) (636) 31.7%

Tax Expenses (CPMF and Others) 1 (100) (111) -10.5% (211) (145) 45.4%

Total (3,524) (3,280) 7.5% (6,804) (5,489) 24.0%

1 Does not include PIS, Cofins and ISS

R$ Million

15

50.5% 50.1%47.2%

44.5%49.8% 47.4%

44.1% 45.8%

3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Efficiency Ratio

46.7%

48.0%

16

Segmentation (Pro forma)

ItaucredItaubanco

Banking

Credit Cards – Account Holders

Insurance, Capitalization and

Pension Plans

Investment Funds and Managed

Portfolio

Corporation

Itaú

Itaú BBA

Corporate Operations

&

Investment Banking

Vehicles

Credit Card – Non Account Holders

Taií: FIT, FIC (CBD) and FAI (LASA)

NB: The organization chart of Itaucred segment reflects, chiefly, the transactions

carried out through channels intended for non current account holders.

17

Highlights of Pro Forma Segments

Itaubanco Itaú BBA Itaucred Corporation Itaú 1

2nd Quarter of 2007

Recurring Net Income 1,255 302 310 52 1,919

Allocated Capital Tier I 12,454 5,425 3,313 5,354 26,546

RAROC in the Quarter (% p.y.) 40.8% 23.8% 39.6% 3.9% 29.8%

Total Assets 207,752 85,110 30,951 9,966 255,418

1st Quarter of 2007

Recurring Net Income 1,258 243 298 102 1,902

Allocated Capital Tier I 12,131 4,704 2,936 5,199 24,971

RAROC in the Quarter (% p.y.) 41.3% 18.6% 41.7% 10.2% 31.3%

Total Assets 202,089 81,989 27,427 9,080 257,850

R$ Million

1 Does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

18

Net Income and Net Income per Share

1,352 1,425 1,397 1,4771,592 1,628

1,902 1,919

1,383 1.601.591.391.29 1.26 1.33 1.38

1.211.19

0

500

1,000

1,500

2,000

2,500

2nd Q/05 3rd Q/05 4th Q/05 1st Q/06 2nd Q/06 3rd Q/06 4th Q/06 1st Q/07 2nd Q/07

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Recurring Net Income per share (R$)Recurring Net Income (R$ Million)

Note: The Net Income per Share was adjusted to reflect the stock split of 900% that occurred in oct/05.

R$ Million R$

19

Stock Split Proposal

Quantity of Shares

Unitary price on Bovespa (*)

Round lot - Bovespa (*)

ADR price (*)

Book Value

Stock Split Simulation

To increase share liquidity, the Board of Directors has proposed for approval of the Extraordinary General Meeting to be held on August 27 2007 the following 100% stock split for Preferred (PN), Common Shares (ON), ADRs and CEDEARs.

1,221,996,220

R$ 86.00

R$ 8,600.00

US$ 44.44

R$ 22.11

Current Situation

2,443,992,440

R$ 43.00

R$ 4,300.00

US$ 22.22

R$ 11.05

Situation after Split

Following approval of the Extraordinary General Meeting, the operation will depend on further ratification by the Brazilian Central Bank.

(*) Considering closing prices as of June 29, 2007.

Itaucred

20

Conference Call of the Results of the Conference Call of the Results of the 2nd Quarter/20072nd Quarter/2007

August 08, 2007