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September 7 th , 2001

Brazil Day. Alfredo Setubal Executive Vice President Investor Relations Director. September 7 th , 2001. The main objective of the strategies which guide Itaú ’s administration has been conducted in order to balance growth and profitability, focusing Shareholder Value in the long-term.

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September 7 th , 2001

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  1. Brazil Day Alfredo Setubal Executive Vice President Investor Relations Director September 7th, 2001

  2. The main objective of the strategies which guide Itaú’s administration has been conducted in order to balance growth and profitability, focusing Shareholder Value in the long-term.

  3. CAGR = 22.6% CAGR = 18.5% CAGR = 18.9% CAGR = 32.0% Highlights R$ Billion(*) Total Assets Credit Operations (1) Assets under Management Deposits (*) Balances at the end of the periods. (1) Credit Operations: Loans, Leasing, Other Credits and Advances on Exchange Contracts

  4. With Banestado Financial Consolidated Economic-Financial Consolidated Excellent Performance R$ Billion(*) Efficiency Ratio ROA (%) BIS Ratio (%) ROE (%) 15.7% 14.8% (*) End of the 1st Semester; annualized data.

  5. Evolution of Net Income R$ Million CAGR = 30.1% CAGR(1) = 26.2% 1,841 1,869 1,457 Extraordinary Results * 1st Semester of 2001 (1) Considering the recurring income in the 1st Half of 2001.

  6. Extraordinary Results Recurring Income 1st Quarter Evolution of EPS (per thousand shares) R$ / thousand shares CAGR – Net Income (%): 30.1% CAGR - EPS (%): 31.1% Number of shares (%): -1.0% 15.99 15.85 12.90 1.99 10.91 9.27 6.80 3.30 2.88 2.31 1.56 * 1st Semester of 2001

  7. 1 Goodwill in Acquisitions: Bemge Banco del Buen Ayre Banerj Itauseg BFB BPI / IBT Banestado Others R$ 1.86 billion R$ 0.22 R$ 0.09 R$ 0.02 R$ 0.11 R$ 0.13 R$ 0.13 R$ 1.15 R$ 0.01 2 Excess in Provision for Loan Losses R$ 680 million 3 Difference: Market Value x Recorded Value R$ 1.48 billion 5 Brand (The most admired Btazilian Company, recognized and evaluated by Interbrand Consulting) R$ 2.22 billion (US$ 970 million) Total R$ 6.24 billion Intangibles June 30, 2001

  8. Stockholders’ Equity Evolution R$ Million June 30, 2001 Market Cap. R$ 21,914 Million Jan/95 to Jun/01 Dividends R$ 2.4 Billion Capital Increase 0 * June 30, 2001

  9. Customers Basis Expansion Million June 30, 2001 Banco Itaú: 6.0 Million Banerj: 0.8 Million Bemge: 0.3 Million Banestado: 0.5 Million Itaú Buen Ayre: 0.2 Million

  10. Evolution – Checking + Savings Accounts 19.6 Quantities in Million 19% 19.1 19% 16.9 13.0 10.9 10.2 Growth of 92% in the period

  11. PC & Internet Banking ¹Number of Transactions and Customers 154 160 2.500 150 Transactions (million) 140 Customers (thousand) 130 2.000 111 120 Transactions in First Semesters 1.580 110 1.427 100 1.500 79 90 1.121 80 70 813 51 1.000 60 42 41 50 477 98 40 284 70 500 30 141 51 20 35 21 21 20 10 0 0 1995 1996 1997 1998 1999 2000 2001* (1) Included Bankline transactions only * Until 06.30.2001

  12. ATMs Branches CSBs Evolution of Points of Sales * June 30, 2001

  13. Geographical Distribution of Itaú Rank.(1) States % of GDP(2) Concentration 1 2 3 4 5 6 São Paulo Rio de Janeiro Minas Gerais Rio Grande do Sul Paraná Others 35.5% 11.0% 9.8% 7.7% 6.2% 28.8% 29% 15% 24% 3% 20% 9% Total 100.0% 100% São Paulo Head Office of Banco Itaú S.A

  14. Expenses in Technology * R$ Million Total in the Period (1995 – Jun/2001): R$ 4.1 billion Included: software and hardware investments, rental and maintenance of equip., employee and infrastructure expenses, training, systems development (*) 1st Semester of 2001 annualized

  15. 06.30.2001 12.31.2000 Fixed Assets Real Estate Furnitures, Fixtures and Equipments Data Processing and Communication Security and Transportation Deferred Investment 2,338 1,680 213 367 32 179 709 2,335 1,689 246 375 25 181 681 Subtotal 3,226 3,197 Permanent Assets R$ Million Depreciation in years 367 25.0 6.5 3.2 5.0 Accelerated Depreciation

  16. Market Segmentation Structure Private (Investments > R$ 1 Million Large Corporations Annual Sales > R$ 100 Million Personnalité Itaú Income > R$ 5,000 Public Sector Medium Companies R$ 4 Million < Annual Sales < R$ 100 Million • Individuals • Income > R$ 2,000 • Premium • Investor • Company owner Small Companies R$ 500 th < Annual Sales < R$ 4 Million Very Small Companies Annual Sales < R$ 500 th “Individual” Cardholder Companies Individual Specialized Structures With Account Manager Without Account Manager

  17. Iniciatives • Income Growth • Credit - Individuals • Credit Cards Personnalité • New Segments Small Companies • Corporate • Costs Control

  18. Evolution of Credit Operations - Individuals R$ Million CAGR = 31.2% (*) Credit Operations: Loans, Leasing, Pre-export advances and Guarantees.

  19. Evolution of Number of Credit Cards 5.000 CAGR = 27.9% In thousand 4.000 3,869 3,321 3.000 2,279 2.000 1,829 1,799 1.000 1,104 1,000 0 1995 1996 1997 1998 1999 2000 2001* * June 30, 2001

  20. Credit Card – Market Share of Sales (%) Market Share of Quantity Itaú’s Equity Share in Credicard: 33% 1997 1998 1999 2000 2001* 2001* Itaucard Credicard Bradesco Banco do Brasil Unibanco 9.7% n.a. 10.2% 8.8% 9.7% 9.4% n.a. 9.5% 10.1% 9.2% 10.3% 14.5% 11.1% 10.5% 8.3% 11.4% 12.7% 11.5% 11.5% 8.1% 12.4% 18.2% 10.7% 11.7% 8.6% 12.2% 15.9% 10.7% 10.5% 19.6% * June 30, 2001

  21. Year 1998 1999 2000 2001 2002 Branches 32 33 35 55 57 Customers (Thousand) 31.7 36.4 42.8 63.0 100.0 Personnalité

  22. R$ 500 thousand to 4 Million Small Companies Segmentation of Specific Channel for Small Companies Business market segmentation of Itaú (annual sales) Over than R$ 50 Million R$ 4 Million to 50 Million Corporate Middle Market Focus in Companies Segment with Relevant Spreads Dedicated Service Structure 50,000 Companies (Internal Potential) + New Customers Significant Profitability Increase Potential, Business and Relationship Implanted: April of 2001

  23. Loans – Small and Medium Size Companies R$ Million Strong Potential Growth CAGR = 19.9% (*) Credit Operations: Loans, Leasing, Pre-export advances and Guarantees.

  24. R$ Million 22,000 20,000 17,584 18,000 15,216 16,000 CAGR = 31.0% 14,000 11,729 12,000 10,000 8,946 8,000 6,000 4,000 Credit Operations (1) 2,000 0 Dec-98 Dec-99 Dec-00 Jun-01 Corporate Loans (1) Credit Operations: Loans, Leasing, Pre-export advances and Guarantees.

  25. Lay-offs: 50% Cost Reduction Program – 2001 and 2002 Incorporation/Branches Closed : 20% Total Reduction at Year Ended of 2002: 35% Synergic Integration of Data Processing Systems } Committee of Cost and Process Rationalization (CRPC) ? 5 – 10% Ex-Growth Support of Specialized Consulting Company Significant Investments in Automation

  26. Itaú - AOL – Strategic Differencial • Largest Internet provider in the World • Winner in Brazil • Technologic Competence (future steps) • Reinforce customer and Bank relationship with a delivery of differentiated services

  27. Leverages State Street's Expertise and Banco Itaú's Strong Local Presence To Meet New Investment Demands of Brazil's and U.S.'s Multinational Corporations, Global Investment Managers, Global Insurance Companies and Pension Funds. Operation of Itaú’s corporate telecommunications network by Telefónica generated a net effect of R$ 450 million in the 2001 result and a 24% reduction (R$ 16 million per year) in expenditures for the present volume of services, besides enabling access to the state-of-the-art technology of Telefónica. Partnerhips and Corporate Governance New Independent Members in the Board Bovespa´s Level I of Corporate Governance Level I ADR traded at OTC since July 2001

  28. External Issuing of Subordinated LoanAugust, 2001 Highlights of the Operation: • Approximately US$ 343 million (R$ 855 million); • Unparalell transaction: 1st emission Tier 2 by a Brazilian bank, 1st issuing of this nature abroad, the longest-term private issue by a Brazilian company, the longest-term private issuing in Yens from Latin America; • Placed at 455 Yield b.ps. below the curve of Brazil for an equivalent term; • Rated A3 by Moody's. • Issuing placed in the American, European and Asiatic markets, with a tranche in US Dollars and another in Yens; • 10 years term, with payment of the principal at the end; half-yearly interest payments; • The average coupon for the investor is 9.95% per year, fixed for the total term (478 basis points over US treasury).

  29. The Most Admired Companies • Top 10 - General 2000 1999 • Microsoft • Natura • Nestlé • Coca-Cola • McDonald´s • TAM • GE-Dako • Votorantim • GM • Itaú • Pão de Açúcar 1st 2nd 3rd 4th 5th 6th 6th 7th 8th 9th 10th 1st 9th 4th 3rd 7th 2nd 17th 6th 10th 29th 10th Source: InterScience

  30. Most valuable Brazilian brand The Most Admired Companies • Ranking of More Valuable Brands In US$ million In relation to annual income(%) • Itaú • Bradesco • Ambev • Banco do Brasil • Unibanco • Embraer • Varig • Multibras • Embratel • Gradiente • Sadia • Tigre 970 697 667 308 303 196 187 179 177 153 128 110 17 7 28 2 9 13 8 12 6 28 10 28 Source: Interbrand (published on Gazeta Mercantil)

  31. Itaú is Part of Dow Jones - SAM Group Index Basic requirements of the DJSGI companies: Banco Itaú was, for the first time, chosen as a member of theDow Jones Sustainability Group Index (DJSGI), along with 236 other companies, of which only two are Brazilian. Corporate Sustainability Ability to Create Value to the Shareholder in the Long-Term Quality of Management Social, Cultural and Environmental Consciousness DJSGI became, since its creation, in January 1999, an important reference to investors and foreign portfolio managers, who analyze its evolution to take their investment decisions.

  32. Bovespa Preferred Shares Appreciation * Evolution of US$ 100 Invested in June 1991 “Largest Market Capitalization among Latin American Banks” US$ Annual Appreciation . 10 years (average) 36.74% . 5 years (average) 21.43% . 12 months (average) 2.76% . 2001 -6.80% Real Devaluation 2,291 Rusian Crisis Asian Crisis Banco Itaú * Mexican Crisis Real Plan 530 100 * Without reinvestment of dividends “Second Largest Market Capitalization among all Brazilian companies”

  33. Correlation Between EPS and Preferred Share Quotation - Quarterly Linear Positive Correlation: 95.532422%

  34. Brazil Day Alfredo Setubal Executive Vice President Investor Relations Director September 7th, 2001

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