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1

March 26, 2004

Banco Itaú Holding Financeira S.A.

Presentation to:

2

Brazilian Banking System

Macro Characteristics Micro Scenario

High Spreads Expected to decrease in function of reforms and drop in interest rates

Oriented to services Intensive use of technology

High Fixed Expenses Cost Reduction / Efficiency / Headcount reduction

All bills are paid in the Bank Emphasis in self-service

High Capitalization Plenty of room to grow in credit

Highly automated Heavy investments (focus: Internet)

Satisfactory Provisions Level Keep conservative approach

Many Points of Sale Likely to decrease

High Service Fees Tailor-made products for each segment

Huge volumes of transactions Technology

3

Tier One Capital / Assets (%)

Source: THE BANKER - Top 1000 – July, 2003

9.2%

14.2%

12.3%11.4% 11.7%

9.1%9.9%

9.1%10.2%

12.0% 11.9%11.1%

9.1%

4.3% 4.4% 4.5% 4.7% 4.7% 4.6% 4.6% 4.5% 4.7% 4.9% 4.7% 4.6% 4.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

90 91 92 93 94 95 96 97 98 99 00 01 02

Brazilian Financial System 1,000 Largest Banks in the World

4

1. Citigroup2. Bank of America Corp.3. HSBC Holdings4. JP Morgan Chase & Co.5. Crédit Agricole Group6. Mizuho Financial Group7. Royal Bank of Scotland8. Sumitomo Mitsui9. Mitsubishi Tokyo12. Deutsche Bank23. ABN AMRO Bank115. Hamburgische Landesbank118. Banco Itaú119. Woori Bank122. Banco Bradesco139. Banco do Brasil190. Unibanco

December, 2002

Ranking by Stockholder’ Equity

Assets

1,097660759759609

1,081649845781795583913175405821

US$Billion

1st

12nd

7th

8th

16th

2nd

13rd

4th

6th

5th

17th

90th

209th

104th

170th

125th

279th

Rank

BIS

11.2 %12.4 %13.3 %11.9 %11.7 %9.5 %

11.7 %10.1 %11.0 %12.6 %11.5 %

n.a.19.1 %11.6 %17.9 %12.2 %

n.a.

Index

5943393836292727262418333332

SE(1)

US$ Billion

ROA

%

156th

179th3

361st

725th

584th

966th

379th

930th

919th

654th

562nd

709th

25th

561st

219th

251st

301st

Rank (*)

Source: The Banker Top 1000 - July/03 (*) BIS ranking extracted from the largest 200 banks by SE(1).(1) Stockholder´ Equity

2.8 %2.0 %1.3 %0.3 %0.6 %

-1.7 %1.8 %

-0.6 %-0.4 %0.5 %0.7 %0.7 %3.8 %0.7 %1.8 %1.6 %1.5 %

5

Financial Statistics - Banking System December, 2002

US$ Million

124,390

160,464

108,629

17,88232,192

304,824

70,662

46,130

4,961

115,196

39,901

100,366

50

100

150

200

250

300

350

Total Assets Total Deposits Total Equity Total Loans

BrazilChileMexico

Source: Felaban – Latin America Banks Association

6

Agenda

Earnings per Share

2004 – Banco Itaú Holding Financeira

Banco Itaú Holding Financeira S.A.´s Results

Brazilian Banking System - The challenge of:

Growth of Credit Operations

Reduction of Expenses

7

Keep the High Primary Surplus

Net Debt/GDPNet Debt/GDP Total Credit/GDPTotal Credit/GDP

Source: Brazil Central BankElaborated by Banco Itaú

26

58

20

23

25

28

30

33

35

38

Jul-9

4

Jan-

95

Jul-9

5

Jan-

96

Jul-9

6

Jan-

97

Jul-9

7

Jan-

98

Jul-9

8

Jan-

99

Jul-9

9

Jan-

00

Jul-0

0

Jan-

01

Jul-0

1

Jan-

02

Jul-0

2

Jan-

03

Jul-0

3

20

28

35

43

50

58

65

% o

f G

DP

% o

f G

DP

Jan/

04

The Challenge of Growth of Credit Operations

8

Source: Brazil Central BankElaborated by Banco Itaú

Reserve Requirement on Demand Deposits – Country Comparison

53.0%

9.0%

2.0% 1.3%6.0%

10.0%

Brazil Chile Euro Area Japan Peru USA

Interest bearingNon-interest bearing

45.0%

8.0%

Conditions to Reduce Cost of CapitalDecrease of Reserve Requirements on bank deposits

The Challenge of Growth of Credit Operations

9(*) Source: Febraban - Brazilian Banks Association

Banking Sector (*)

Cost Efficiency...Quantity of Employees – Brazilian Financial System

Itaú Holding824

754700 682 672

638

559

483447

420 406 400402 401

433736

77

60

4942 43 45

47

3941

3631

0

100

200

300

400

500

600

700

800

900

Dec-89 Dec-90 Dec-91 Dec-92 Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02

0

10

20

30

40

50

60

70

80

90

CAGR 1989-2002

Sector = -5.41%

In thousands

Itaú Holding = -4.41%

10

84.6

76.3

68.862.8 60.8 60.0 59.9

57.252.1

87.483.8

62.458.2

92.9

58.362.8

58.8 60.1

Japan Mexico Brasil USA Germany Chile UK Spain Netherlands

1998 2002

Source: The Banker – July 2003 and July 1999

Cost Efficiency...Cost / Income Ratio – 1000 largest banks in the world (%)

Brazil

11

Comparison between the medium and the largest banks of Brazil, Europe and U.S.(cost operation divided by assets)

Source: EFC (Financial Engineers and Consulters) and BankScopePublished on June 20, 2003

7.1%

2001

7.0% 6.2% 6.74%

2.01%

3.85%

2.93%

2000 2002Average of

the 3 years

10 biggest Brazilian Banks

Twenty biggest in Europe and United States

Twenty biggest in Europe

Twenty biggest in United States

Average of the biggest in Europe and Unites States

The Challenge of Reduction of Expenses

12

Growth in Perspectives

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Real Plan

(Jul)

Overheating

Asia Crisis

(Sep)

Russia Crisis

(Sep)

Devaluation

(Jan)

Energy Crisis

(May)

Elections (Oct)

Argentina Crisis

Projection of Banco ItaúReal GDP GrowthSource: IBGE

Elaborated by Banco Itaú

%

The Challenge of Growth

-0.2

53.25

23.9418.99

16.19 19.05 16.91

10

20

30

40

50

60

70

80

90

Selic annualized

16.25

%

13

Macroeconomic Stability

Reduction of interest rates

Growth in GDP

Growth in income per capita

Tax Reform (reduction, stimulation to the production)

Bankruptcy law

Primary surplus

Stable regulatory environment

Inflation targeting

Advances necessary to grow credit, GDP and promote stability:

14

Conclusion of the Brazilian Payment System;

Reduction in reserve requirements and flexibilization of mandatory credit

Reform of mortgages legislation

Central of Credit Risk

already implemented: information about risky customers

to be implemented: information about good customers

Regulatory Framework

Advances necessary to grow credit, GDP and promote stability:

15

Agenda

Earnings per Share






16

32,068

48,995

69,555

118,738

81,807

18,25924,445

51,91146,357

111,141

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03

R$ MillionAsset Evolution


17

R$ Million (Except where indicated)

854

7.49

11,879

31.8%

2,754

30,453

19.8%

49.5%

4.1%

Net Income

Net Income per 1,000 shares

Stockholders’ Equity

ROE (%)

Net Interest Margin

Market Capitalization

BIS Ratio (%)

Efficiency Ratio (%)

NPL (%)

3rd Q./03

807

7.05

11,464

31.3%

2,765

25,691

21.5%

47.6%

4.7%

3,152

27.66

11,879

26.5%

10,998

30,453

19.8%

46.1%

4.1%

2,377

21.36

9,036

26.3%

9,511

17,743

18.4%

50.0%

4.2%

4th Q./03 2003 2002

Highlights


18

Financial Ratios (%)

2.6 2.9 2.1 2.7

31.5

26.3 26.5

14.416.9

19.8

27.7

18.4

0

5

10

15

20

25

30

35

Dec-00 Dec-01 Dec-02 Dec-03

Net Income / Assets (ROA) Net Income / Stockholders' Equity (ROE) BIS Ratio


19

Banking Itaú-BBA

23%

Mutual Funds and Managed

Portfolio6%

Insurance, Capitalization and Pension

Plans15%

Credit Cards18%

Banking Banco Itaú

38%

Diversification of income sources Not only restricted to interest rates

Net Income by Segment 2003(*)


Banco Itaú Banking

Itaú-BBA Banking

Credit Cards

Insur., Cap., Pension Plans

M. Funds and Managt. Portf.

Consolidated Net Income

1,201

732

582

458

179

3,152

R$ Million

(*) Pro Forma

20

Total Unrealized

Interbank DepositsSecurities and Derivatives Reclass. of Additional Provision Additional Provision Adjust. of Securities Available for Sale Adjust. of Securities Held to MaturityCredit OperationsInvestments (basically in BPI)Time and interbank dep. and funds from

accept. and Issuance of securities abroadSecuritization of payment orders abroadSubordinated Debt and Treasury shares

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

December 2003

2,677 2,048

101,556

-545758253319627

337458

10688

-545

-143319627

3374

297

Income Equity

December 2002

1,765 1,794

3543

-760

(168)(49)(89)285

1673170682

3456

(255)760

-(49)(89)285

173170797

(1) Tax effects not considered.(2) Includes unrealized gains to minority interest amounting to R$ 307,036 (R$ 156,751 at 12/31/2002) on income and R$ 257,229

(R$ 116,966 at 12/31/2002) on stockholders' equity.

Financial Instruments - Market ValueR$ Million


21

2,420

8,619

28.1%

22,113

100,516

Banco Itaú-BBA

732

3,260

22.5%

22,468

29,693

Net Income


ROE (%)

Credit Operations (*)

Total Assets

2,214

7,986

27.7%

19,629

81,763

BancoItaú-BBA

591

2,903

20.4%

25,786

33,114

2003 2002

(*) Endorsements and Securities included.

Pro Forma R$ Million


BancoItaú

BancoItaú

22

Credit Operations

16,890

19,596

27,253

34,282

44,594

14,058

23,674

29,615

38,65938,419

45,414

16,077

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1998 1999 2000 2001 2002 2003

Credit Operations Credit Operations+Guarantees


R$ Million

23


Corporate

Small / Medium Sized Companies

Individuals

Mortgage Loans

Total

28,219

4,376

10,467

2,352

45,414

0.3%

22.1%

7.5%

-3.2%

4.4%

24,115

5,317

13,083

2,067

44,581

24,036

4,353

12,175

2,135

42,699

-14.5%

21.5%

25.0%

-12.1%

-1.8%

Var Dec/03x Sep/03

Dec 31, 03 Dec 31, 02Sep 30, 03 Var Dec/03

x Dec/02


R$ Million


24

R$ 31.20 R$ 31.20 R$ 30.20 R$ 32.30

R$ 15.20 R$ 13.40 R$ 12.50R$ 12.20

R$ 29.10

R$ 16.30

R$ 0.00

R$ 5.00

R$ 10.00

R$ 15.00

R$ 20.00

R$ 25.00

R$ 30.00

R$ 35.00

R$ 40.00

R$ 45.00

R$ 50.00

Dec-02 Mar-03 Jun-03 Sep-03 Dec-03

Local Currency Foreign Currency

R$ 45.4 R$ 46.4 R$ 44.6 R$ 42.7 R$ 44.4

(US$ 4,6)(US$ 4,5) (US$ 4,7) (US$ 4,3)

(US$ 4,2)

Credit Operations by Currency (*)


In Billion


25

1,406 1,5101,692

1,853 1,9532,196

2,5152,332 2,285 2,234

2,378 2,257

630680

680

715715

715

747841 843 848

913906

3,172 3,128 3,082

3,2903,163

2,911

3,262

2,6682,568

2,372

2,1902,036

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

Provision for Loan Losses

Total Provision Additional Provision Minimum Provision

R$ Million


26

Nonperforming Loans Ratio (%)

4.144.714.65

4.164.17

10.66

8.46

7.34

8.94

8.25

1.461.99 2.35 2.53

2.15

0.00

2.00

4.00

6.00

8.00

10.00

12.00


Nonperforming Loans Ratio – TotalNonperforming Loans Ratio – IndividualsNonperforming Loans Ratio – Companies

Coverage Ratio (*)

198%189%

173%

189% 198%

0%

50%

100%

150%

200%

250%


(*) Provision Balance / Total Nonperforming Loans

Nonperforming Loans and Coverage Ratio


27

Credit Operations

Consumer Credit

Acquisition of FIAT and Fináustria

Dec.02 (before acquisitions): market share of 3.0%

Jan.04: market share of vehicles of 12.8% (9.7% Itaú and Finaustria + 3.1% Fiat)

New Financing company (start in May 2004)

Own platform

Own brand (related to Itaú)

Focus in low income customers (non-Itaú)Corporate segment - Banco Itaú-BBA: Synergic operation

New Credit and Behavior Scoring models

News Models of Profitability of Products

Small Companies - UPJ: specific market segment and structure

Increase in Credit Cards Financing

28

2003

1,269

52

327

1,002

159

213

546

933

107

565

5,121

2002

1,031

0

296

912

172

199

458

930

71

397

4,466

Mutual Fund Management Fees

Consortium Administration

Collection

Checking Account Services

Tax Collection

Interbank Fees

Credit Operation Fees

Credit Card

Income from Guarantees Provided

Other

Total

Variation

23.0%

10.3%

9.9%

-7.1%

6.7%

19.3%

0.3%

51.5%

42.3%

14.7%

Banking Service Fees R$ Million


29

Personnel Expenses

Other Administrative Expenses

Reorganization

Total without BBA and Fiat

BBA and Fiat

Total

2003

2,577

4,316

430

7,322

478

7,800

2002

2,488

4,040

716

7,244

7,244

Variation

89

276

(286)

78

556

Administrative Expenses R$ Million


30

58.456.6 56.3

59.7

55.7 56.3 55.0 54.456.1 55.7

50.4

41.5 40.8

46.7 47.649.5

59.5%

55.0%

47.9%

54.1%

Not considering the 4th Q./02 and 1st Q./03, since we consider this criteria indicates better the recurrent efficiency.

Efficiency Ratio (%)


31

Nominal expenses in 2003 = Nominal expenses in 2004

Cost Reduction

Strong commitment of the senior management to achieve the target

Cost reduction internal campaign - strengthening of a cost culture in the organization

Reduction in pioneer branches plus cancellation of listed company registration - acquired banks (BEG, Banestado and BEMGE)

On-line system for monitoring expenses - decentralized and available in all areas of the bank allowing stricter control

Reduction of administrative expenses: water and energy consumption, travels, paper recycling: intelligent buildings, intelligent branches, reuse.

Actions:

Employees: incentive to internal transfers (career opportunities) – possibility of reduction in layoffs and hiring in the market

Effort to reduce costs with labor suits - increase in extrajudicial agreements with the unions, reduction of the costs of the agreements, more causes won.

32

Pro Forma

The following slides show the pro forma information about Banco Itaú and

Banco Itaú BBA operations.

• In 2003, it was considered as if the integration process between Itaú

BBA and the corporate segment of Itaú occurred in the beginning of the

year.

• In the year of 2002, it was considered the sum of net income and other

accounts of Itaú BBA to the corporate segment of Banco Itaú, as well as

the required capital allocation.

• The balances and incomes of credit operations, private bank and asset

management of Itaú BBA in 2002 and 2003 were allocated to Banco

Itaú.


33

2,420

8,619

28.1%

22,113

100,516

BancoItaú-BBA

732

3,260

22.5%

22,468

29,693

Net Income


ROE (%)


Total Assets

2,214

7,986

27.7%

19,629

81,763

BancoItaú-BBA

591

2,903

20.4%

25,786

33,114

2003 2002


Pro Forma


R$ Million

BancoItaú

BancoItaú

34

2003

9,021

(1,115)

4,895

(7,438)

(1,232)

(1,711)

2,420

8,619

28.1%

2002

9,195

(2,091)

4,324

(7,108)

(476)

(1,630)

2,214

7,986

27.7%

Financial Margin

Result from Loan Losses

Banking Service Fees

Administrative Expenses

Income Tax and Social Contribution

Other

Net Income


ROE (%)

4th Q./03

2,369

(269)

1,289

(2,015)

(259)

(400)

715

8,619

37.5%

3rd Q./03

2,279

(315)

1,261

(1,935)

(319)

(331)

640

8,243

34.9%

Banco Itaú S.A.


35

Number of Credit Cards (thousand)

Turnover

Itaucard Net Income

Participation in Net Income of

Credicard

2003

5,780

10,603

442

140

2002

5,579

8,795

103

176

Credit Cards R$ Million

Variation

201

1,808

339

(36)

3.6%

20.6%

329.1%

-20.5%

Banco Itaú S.A.

36

Net Income

5250

36

42

29

0

10

20

30

40

50

60

4th Q./02 1st Q./03 2nd Q./03 3rd Q./03 4th Q./03

78.8

71.867.1

62.959.2

0

10

20

30

40

50

60

70

80

90


Growth of 33% in volume of Mutual Funds and Managed Portfolios in relation to 2002

Mutual Funds and Managed Portfolios

Mutual Funds and Managed Portfolios

R$ BillionR$ Million

Banco Itaú S.A.

37

2,8253,352

3,9914,907

923906

902

927

977

1,0211,077

1,134

1,168

1,236

2,459

569

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


Technical Provisions - Pension Plans AGF

Technical Provisions - Capitalization Technical Provisions - Insurance

4,4034,808

5,388

6,086

7,689

Insurance, Capitalization and Pension Plans

Growth of 75% in 2003 2nd Largest in Pension Plans Market

R$ Million

Banco Itaú S.A.

38

2003 2002 3rd Q./03 4th Q./03

138Result of Ins., Cap. and Pension Plans 458 256102

97.6%Combined Ratio 97.2% 95.4%94.7%

54.6%Claim Ratio 54.5% 52.9%52.8%

5,008

(2,578)

(358)

(1,508)

80

• 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)

3,311

(1,385)

(306)

(1,121)

40

1,253

(638)

(92)

(395)

27

1,622

(968)

(93)

(412)

34

156Operating Margin 646 540184

691

(643)

(241)

5

Financial Income



Other

391

(534)

(136)

(5)

207

(157)

(71)

3

176

(201)

(56)

(1)

Banco Itaú S.A.

R$ MillionInsurance, Capitalization and Pension Plans

39

Dec 31, 03

211

17,864

1.2%

Nonperforming Loans

Credit Operations

NPL Ratio (%)

Sep 30, 03

198

18,124

1.1%

Variation

13

(260)

0.1%

Itaú BBA has a high quality credit portfolio with 93.8% of volume

classified as “AA”, “A” and “B”.

Pro Forma Nonperforming Loans R$ Million

Banco Itaú BBA

40

4th Q./03

357

(172)

54

(92)

59

(67)

139

3,260

18.2%

3rd Q./03

486

(172)

62

(92)

(58)

(59)

167

3,221

22.4%

Financial Margin

Result from Loan Losses

Banking Service Fees



Other

Net Income


ROE (%)

2003

1,977

(523)

226

(362)

(354)

(232)

732

3,260

22.5%

2002

1,353

(401)

248

(400)

(96)

(113)

591

2,903

20.4%

Banco Itaú BBA


41

Agenda

Earnings per Share






42

2.91 5.097.86 9.57

12.8716.66

21.08

27.6932.62

-1.83

2.98

-4.96-2.1

-6.32-0.67

0.32

-0.15

-10

-5

0

5

10

15

20

25

30

35

1995 1996 1997 1998 1999 2000 2001 2002 2003

Extraordinary EPS

Recurring EPS

CAGR Recurring = 35.3%

Decr. Number of Shares (%) = -3.8%

R$

Evolution of EPS

43

0

200

400

600

800

1,000

1,200

93 94 95 96 97 98 99 00 01 02 03

Itaú (1)Itaú (2)Bovespa

US$

100

494494

233233

721721

Itaú(1) Itaú(2) Ibov.

10 years 21.37% 16.95% 8.64%

5 years 18.14% 13.96% 5.93%

12 months 79.85% 71.28% 134.39%

Annual Average Appreciation in US$

Real Plan

Russian Crisis

Real Devaluation

Mexican Crisis

Asian Crisis

Argentine Crisis

Attack to WTC

(1) With reinvestment of dividends(2) Without reinvestment of dividends

Preferred Shares AppreciationEvolution of US$ 100 Invested from Dec. 1993 to March 12, 2003Evolution of US$ 100 Invested from Dec. 1993 to March 12, 2003

44

Agenda

Earnings per Share






45

Banco Itaú S.A. Banco Itaú S.A.

Growth in Small and Medium Sized Companies Credit Portfolio –

higher than the market average

Growth in Individuals Credit Portfolio – close to the market average

Expectation of lower default and lower margin

Emphasis on Insurance, Capitalization and Pension Plans segment –

growth higher than the market average

Strict cost control

Banco Itaú 2004

46

Maximization of synergies identified by the association, through the

use of businesses opportunities.

Increase of operations in Capital Markets.

Increase the offer of structured products/derivatives focused on the

needs of each corporate customer.

Banco Itaú BBA

Banco Itaú BBA 2004

47

March 26, 2004


Presentation to:

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