Net Interest Margin

Provision forLoan Losses

Banking ServiceFees

AdministrativeExpenses

Extraordinary Result

Others

Statements of Income - 1999R$ 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

1st 2nd 3rd 4th Year

Extraordinary Result - 1999

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

3,8424,198

4,651

5,907

592 721 880

1,869

1996 1997 1998 1999

Stockholders' EquityNet Income

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

912 14

17 1620

94 95 96 97 98 99

3.2%

15.2%

5.7% 4.5% 3.2% 2.0%

94 95 96 97 98 99

0.4 0.5 0.51.0 1.0

0.6 0.6 0.6

0.10.2

0.30.3

94 95 96 97 98 99

0.2

1.2 1.00.7

1.00.8

94 95 96 97 98 99

Credit OperationsR$ Billion

Ratio Default (%)

Provisions Outstanding(*) R$ Billion Provisions ExpensesR$ Billion

0.31.0 1.1 1.1

1.3 1.3

+25%

-20%

(*) Overdue Credits and General Provision

Individuals6.5 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 2nd semester of 1999

200 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.

CorporateIncorporation 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.

ersonal

inancial

ervices

P F SP 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.

472 - Itaú

186-Bovespa

0

100

200

300

400

500

94 95 96 97 98 99

Mexican Crisis Asian CrisisRussian Crisis

Real Devaluation

Preferred Shares - AppreciationEvolution of US$ 100 Invested in December of 1994

Annual AppreciationAnnual Appreciation. 10 years (average) 40.83%. 10 years (average) 40.83%. 5 years (average) 31.18%. 5 years (average) 31.18%. 1999 88.66% . 1999 88.66%

Annual AppreciationAnnual Appreciation. 10 years (average) 40.83%. 10 years (average) 40.83%. 5 years (average) 31.18%. 5 years (average) 31.18%. 1999 88.66% . 1999 88.66%

Stock Price 12.31.1999Stock Price 12.31.1999. P/E. P/E 9.43 9.43. P/BV. P/BV 315.04% 315.04%. Cash Yield. Cash Yield 1.94% 1.94%

Stock Price 12.31.1999Stock Price 12.31.1999. P/E. P/E 9.43 9.43. P/BV. P/BV 315.04% 315.04%. Cash Yield. Cash Yield 1.94% 1.94%

US$

ITAU4 : US$ 86.6 ITAU4 : US$ 86.6 per thousand sharesper thousand shares

Create Value to the Shareholders

US$ 9,969 millionThe Largest Market

Capitalization among the Latin American Banks

Highlights 1999Consolidated Balance SheetTotal Assets

Loan and Leasing Portfolio + ACC

Sureties, Endorsements and Guarantees

51,911

16,890

2,706Securities + Interbank Accounts 18,070Stockholders’ Equity 5,907

Statements of IncomeNet Income Recurring

Net Income Extraordinary

Net Income

1,518

351

1,869Financial Margin 4,629Net Income from Financial Operations 3,814

Banking Service Fees 3,159Performance 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

39,011

6.9Branches 1,765CSBs 780ATMs 11,715

Amounts in R$ Million