alfredo setubal investor relations director
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1
Alfredo SetubalInvestor Relations Director
New YorkMarch 1st, 2007
2
Itaú stock is negotiated on the São Paulo, Buenos Aires and New York Stock Exchanges
Member of Dow JonesSustainability Indexes 06/07• 7th consecutive year• Only Brazilian Bank on the Index
Best Brazilian Bank 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1999, 1998
Best Brazilian Bank 2005, 2004, 2003, 2002, 1999
Best Brazilian Bank 2004, 2003, 2002, 2000, 1999
International Presence
Itau Bank 4,478 1,202
Banco Itaú Europa 8,751 1,240
Consolidated 31,264 7,745
Assets Stockholders’ Equity
Foreign Branches 6,754 1,867
Banco Itaú Buen Ayre 1,442 218
Itaú BBA & subsidiaries 13,826 2,250
December 31th, 2006
R$ Million
3
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
4
11,879
23,564
15,027
2,229
9,036
7,5786,642
5,907
4,1983,3372,857
880
3,152
181
4,3093,776
5,251
2,389
1,8411,869
721592
343
3820
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
0
800
1,600
2,400
3,200
4,000
4,800
5,600
6,400
7,200
Stockholders' Equity
Net Income
CAGR(90-06) = 15.9%
CAGR(90-05) = 21.9%
Real Plan
Mexican Crisis
Asian Crisis
Russian Crisis
Real Devaluation
Argentina Crisis
Collor Plan
Attack to WTC
Brazilian Election Period
R$ Million
Highlights
Jan/90 to Dec/06Dividends: R$ 10.9 Billion
Increase of Capital: R$ 0.1 Billion
Evolution of Stockholders’ Equity and Net Income
Adaptability to Different
Scenarios
6,195(*)
(*) Recurring Net Income
5
Itaú: Credit Ratings
LONG TERM
SHORT TERM
•Consistent strong financial performance
•Operational efficiency
•Significant international presence, cutting back domestic volatility
•Strong capitalization and provisioning
•Equity quality
F1+(bra)
A long and consistent performance record is reflected in the ratings awarded by international risk classification institutions
International
SHORT TERM
Domestic
B BB+
brA-1 brAA+
International
SHORT TERM
Domestic
LONG TERM
International
Domestic
LONG TERM
Financial Strength = C
Aaa.brBR-1
B BB+AA+ (bra)
Highlights
Investment Grade in:
•Portugal since 2000
•Cayman since 2006
6
69.6 81.4111.1 118.8 130.3 151.2
209.7
2000 2001 2002 2003 2004 2005 2006
6.6 7.69.0
11.914.0
23.6
15.6
2000 2001 2002 2003 2004 2005 2006
27.3 34.345.4 44.6 53.3
67.8
93.7
2000 2001 2002 2003 2004 2005 2006
Assets (R$ Billion)
Credit Operations (R$ Billion)
Stockholders’ Equity (R$ Billion)38.7%51.3%
38.2%
28.350.5 61.2
27.9 39.0 36.7 42.0
179.8
120.3
59.299.8
81.155.842.0
0
50
100
150
200
250
300
2000 2001 2002 2003 2004 2005 2006
Deposits Funds and Portfolio under Management
Growth of Deposits and Asset Management (in R$ billions)
Highlights
7
1.8
3.8 4.3
2.2
2.4 2.4
5.3
3.2
2000 2001 2002 2003 2004 2005 2006
13.317.0
10.610.99.57.3
5.1
2000 2001 2002 2003 2004 2005 2006
3.7 4.36.2
9.1
0.8
1.1
7.7
3.55.1
0.80.7
0.70.50.4
2000 2001 2002 2003 2004 2005 2006
Net Income (in R$ billions)Non-interest Expenses (in R$ billions)
Banking Services Fees + Insurance, Pension and Cap. Revenues (in R$ billions)
Financial Margin (in R$ billions)
8.87.1
12.3
9.0
8.46.0
10.5
2000 2001 2002 2003 2004 2005 2006
17.1%
Itaú + BKBItaú
20.0%
22.6%
3.9 4.35.0
5.87.0
8.5
6.5
10.2
Insurance, Pension & Cap.
CAGR = 23.9%
CAGR = 17.4%
CAGR = 12.7%
CAGR = 22.2% 27.8%
Highlights
8
Average ROE (%)
Average ROA (%)
BIS Ratio (%)
Efficiency Ratio (%)
29.0%33.1%
28.8% 29.7%
22.7%
29.2%
35.3%
2000 2001 2002 2003 2004 2005 2006
-12.6 p.p.
14.4%16.9% 18.4%
20.6%17.2%
19.8%17.0%
2000 2001 2002 2003 2004 2005 2006
+0.2 p.p.
3.2% 3.1%2.6% 2.8% 3.0%
2.4%
3.6%
2000 2001 2002 2003 2004 2005 2006
-1.2 p.p.
67.2% 62.1% 58.2% 54.5% 53.9% 47.6%50.3%
2000 2001 2002 2003 2004 2005 2006
-2.7 p.p.
Highlights
9
1,9836,804
8,213
42,450 43,33351,708
43,21545,40947,524 44,232
2000 2001 2002 2003 2004 2005 2006
4,7723,6243,1572,5981,9981,427
4,224
2000 2001 2002 2003 2004 2005 2006
Branches+CSBs
Internet Banking Clients (In million)
ATMs
Employees
3,1743,383
3,0733,1723,1923,184
2,995
2000 2001 2002 2003 2004 2005 2006
6.6%
12,06413,777
17,92621,15020,021
23,09622,023
2000 2001 2002 2003 2004 2005 2006
4.9%
17.4%
13.0%
Highlights
ItaucredItaú
59,921
51,03645,316
10
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
11
2. Effects of BankBoston (BKB) acquisition in Brazil, Chile and Uruguay• Payment – Capital increase in Itaú (R$ 5,954 million), transferring common and preferred shares to
Bank of America (7.44% of the total capital of Itaú).• Effects of BKB acquisition amounted R$ 2,171 million, net of tax effects.
1.Results: • Q4/06: Recurring Net Income of R$ 1,628 million, 2.3% increase compared to Q3/06; annualized
ROE of 28.8%. (Full Year 2006: Net Income of R$ 6,195 million and ROE of 32.6%).• Q4/06: Net Income of R$ 1,280 million (Year 2006: Net Income of R$ 4,309)
3. 38.2% growth in credit portfolio during 2006, including BKB, and of 24.7%, not considering BKB.
• Vehicles: 64.7% in 2006 and of 14.3% in Q4/06.• Small and Medium Sized Companies: 59.9% (including BKB), 22.4% (excluding BKB) and 3.5% in
Q4/06.• 5.3% delinquency ratio as of December 31, 2006, stable Q-Q.
.
4thQ. Results
12
Non-recurring Effects – After Tax
R$ Million
4th Q/06 3rd Q/06 2006 2005Recurring Net Income 1,628 1,592 6,195 5,443 Non-recurring effects 1 60 286 429 (192) Result of BKB Brazil 2 - (43) (145) - Net Income without BKB Brazil acquisition effects 1,687 1,835 6,480 5,251 BKB Acquisition effects (408) (1.764) (2,171) - Net Income 1,280 71 4,309 5,251
1 For more details, see page 4 of Management Discussion and Analysis Report.
2 For more details, see Notes to Financial Statements 2a and 21i.
4thQ. Results
13
4th Q/06 3rd Q/06 Variation 2006 2005 Variation
Net Income 1,280 71 1,702.1% 4,309 5,251 -17.9%
Recurring Net Income 1,628 1,592 2.3% 6,195 5,443 13.8%
Recurring Net Income per share (R$) 1.38 1.39 -1.2% 5.44 4.84 12.4%
Stockholders’ Equity 23,564 21,693 8.6% 23,564 15,560 51.4%
Recurring ROE / Average Equity annualized (%) 28.8% 32.5% -370 b.p. 32.6% 36.6% -400 b.p.
Market Capitalization 1 92,270 76,453 20.7% 92,270 61,935 49.0%
Solvency Ratio (%) 17.2% 16.8% 40 b.p. 17.2% 17.0% 30 b.p.
Efficiency Ratio 2 (%) 47.4% 49.9% -250 b.p. 47.6% 50.3% -270 b.p.
Delinquency Ratio (%) 5.3% 5.2% 0.1 p.p.
R$ Million (Except where indicated)
1 Based on the average quotation of the last trading day in the period. It includes the number of shares related to BKB Chile and Uruguay acquisition.
2
4thQ. Results
14
Itaú Holding Pro Forma
4th Q/06 3rd Q/06 Variation 2006 2005 Variation
Managerial Financial Margin 4,747 4,328 9.7% 16,958 13,272 27.8%
• Banking Operations 4,191 4,043 3.7% 15,354 12,016 27.8%
• Treasury 429 149 188.1% 1,056 600 76.0%
• Management of Foreign Exchange Risk from Investments Abroad 127 137 -6.9% 547 656 -16.5%
Result from Loan Losses (1,475) (1,350) 9.2% (5,302) (2,840) 86.7%
Banking Service fees 2,456 2,286 7.4% 9,097 7,738 17.6%
Non Interest Expenses (3,371) (3,246) 3.9% (12,346) (10,459) 18.0%
Recurring Net Income 1,628 1,592 2.3% 6,195 5,443 13.8%
Average Stockholders Equity 22,629 19,624 15.3% 18,998 14,883 27.6%
ROE annualized (%) 28.8% 32.5% -370 b.p. 32.6% 36.6% -400 b.p.
R$ Million (Except where indicated)
4thQ. Results
15
Credit Operation by Client Type
1 Rural and Mortgage Loans – Loans linked with the balances of Demand and Savings Deposits.
With BKB Variation
Dec 31, 06 Sep 30, 06 Dec - SepDec/06 – Dec/05
Individuals 40,487 37,571 7.8% 42.2%
• Credit Cards 9,188 7,976 15.2% 27.3%
• Personal Credit 13,284 13,829 -3.9% 28.7%
• Vehicles 18,014 15,766 14.3% 64.7%
Company Loans 47,263 46,558 1.5% 36.0%
• Small and Medium Sized 20,446 19,762 3.5% 59.9%
• Corporate 26,816 26,796 0.1% 22.1%
Mandatory Credit 1 5,898 5,740 2.8% 29.9%
Total Loans 93,648 89,869 4.2% 38.2%
R$ Million (Except where indicated)
Not considering BKB contribution, total loans reached R$ 84,497 million, an increase of 24.7% in 2006.
4thQ. Results
16
Credit Portfolio Break down
34.3% 36.4% 38.9% 41.5% 42.0% 42.8% 45.5% 41.8% 43.2%
18.2% 18.4% 19.0% 18.7% 18.9% 19.1% 18.8% 22.0% 21.8%8.5% 7.6% 7.2% 6.7% 6.3% 6.2% 6.4% 6.3%
39.0% 37.6% 34.8% 32.9% 32.4% 31.9% 29.6% 29.8% 28.6%
6.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06
Individuals Small and Medium-Sized CompaniesMandatory Loans Corporate
4thQ. Results
17
Delinquency and Coverage Ratios
Coverage Ratio (*)
168%164%
192%203%220%
0%
50%
100%
150%
200%
250%
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06
(*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.
Delinquency Ratios
Delinquency Ratio - GlobalDelinquency Ratio - IndividualsDelinquency Ratio - Companies
1.6%2.1% 2.2%
5.1% 5.2% 5.3%
8.1% 8.3% 8.1%
Jun/06 Sep/06 Dec/06
4thQ. Results
18
Delinquency Ratio (NPL) by SegmentR$ Million
Dec 31, 06
Sep 30, 06
Jun 30, 06
NPLCredit
Portfolio
NPL Ratio
NPL Ratio
NPL Ratio
Itaubanco 2,614
35,985 7.3% 7.5% 6.7%
Branch Banking 2.355 31,031 7.6% 7.7% 6.6%
Credit Cards – Account Holders 260 4,954 5.2% 5.9% 7.5%
Itaú BBA 150
21,334 0.7% 0.1% 0.2%
Itaucred 1,662
26,829 6.2% 6.4% 7.1%
Vehicles 936 19,316 4.8% 5.0% 5.4%
Credit Cards – Non Account Holders 235 4,285 5.5% 6.6% 9.9%
Taií 492 3,228 15.2% 13.9% 12.6%
Total 4,426
84,148 5.3% 5.2% 5.1%
4thQ. Results
19
Funding
1 Includes Repurchase Agreement – Own Issue Securities
Dec 31,
06Sep 30, 06 Dec 31, 05
Variation (%)
Dec/06-Sep/06
Dec/06-Dec/05
Deposits 1 89,522 80,949 65,556 10.6% 36.6%
Investment Funds 167,866 166,822 112,573 0.6% 49.1%
Managed Portfolios 11,942 10,044 7,714 18.9% 54.8%
Technical Provisions regarding to Insurance, Pension Plans and Capitalization
19,036 17,534 14,640 8.6% 30.0%
Subtotal – Clients 288,367 275,348 200,482 4.7% 43.8%
Foreign Exchange Portfolio 13,124 21,941 7,828 -40.2% 67.7%
Funds from Acceptances and Securities Issued 7,541 7,568 4,961 -0.4% 52.0%
On-lendings 5,338 5,496 4,305 -2.9% 24.0%
Repurchase Agreement – Third Part Portfolio 8,353 5,477 4,520 52.5% 84.8%
Subtotal - Market 34,355 40,482 21,614 -15.1% 59.0%
Total 322,722 315,831
222,096 2.2% 45.3%
R$ Million (except where indicated)
4thQ. Results
20
Banking Service Fees
4th Q/06 3rd Q/06 Variation 2006 2005 Variation
Funds management 1 483 539 -10.4% 1,986 1,688 17.7%
Current account services 410 385 6.4% 1,549 1,385 11.8%
Credit Cards 577 525 9.9% 2,104 1,904 10.5%
Credit operations and guarantees provided 486 423 14.8% 1,689 1,259 34.2%
Collection services 250 219 14.4% 909 839 8.3%
Other 250 195 28.4% 859 662 29.7%
Total 2,456 2,286 7.4% 9,097 7,738 17.6%
R$ Million (Except where indicated)
1 Investment Funds and Consortium.
Not considering BKB, Banking Service Fees reached R$ 8,718 million in 2006, increase of 12.7% compared to 2005.
4thQ. Results
21
Non Interest Expenses
4th Q/06 3rd Q/06 Variation 2006 2005 Variation
Personnel Expenses 1,251 1,260 -0.7% 4,824 4,036 19.5%
Other Administrative Expenses 1,681 1,523 10.4% 5,835 4,946 18.0%
Other Operating Expenses 269 332 -19.1% 1,240 1,141 8.7%
Tax Expenses (CPMF and Others) 1 171 131 30.6% 447 337 32.6%
Total 3,371 3,246 3.8% 12,346 10,459 18.0%
R$ Million (Except where indicated)
1 It does not include PIS, COFINS and ISS
Not considering BKB, Non Interest Expenses reached R$ 11,470 million in 2006, increase of 9.7% compared to 2005.
4thQ. Results
22
50,8% 50,5% 50,1%47,2% 45,7%
49,9%47,4%
49,8%
1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06
Efficiency Ratio 1
47.6%
50.3%
1 For further details on the criteria used, see slide 4.
4thQ. Results
23
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
24
Housing Financing in Brazil – 3 Time Periods
• Strong Economic Growth
• Creation of BNH (National Habitation Bank) in 1966
• Hyper inflation
• High default rate on loans
• Weak regulatory framework for mortgage loans
• Interest rate mismatch
• End of BNH in 1986
• Macroeconomic stability (Real Plan - 1994)
• High interest rate
• Improved regulatory framework
I – BRAZILIAN MIRACLE II – CRISIS III – REAL PLAN
Number of Financed Houses (thousands)
Years
Source: BNDES
Mortgage
25
Source: Central Bank Data, Merrill Lynch estimates
Note: Most data end-2005, some end 2004
86%
66%
50%
40%
33%
22%
10%6% 5% 5% 3% 3%
15%
2% 2% 2% 2%
35%30%
15% 13%9%
5%2%
UK USA
Ger
man
y
Japa
n
S Af
rica
Israe
l
Hung
ary
Czec
h
Bulg
aria
Pola
nd
Kaza
khsta
n
Ukra
ine
Chile
Arge
ntin
a
Braz
il
Colo
mbi
a
Méx
ico
Taiw
an
Mal
aysia
Thai
land
S Ko
rea
Chin
a
Índi
a
Indo
nesia
BRAZIL
Mortgage Loan as a Percentage of GDP
Mortgage
26
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
27
Segmentation (Pro forma)
Itaú
ItaucredItaú BBAItaubanco
Banking
Cards – Current Account Holders
Insurance, Pension Plans
and Capitalization
Investment Funds and
Managed Portfolio
Corporation
Corporate Operations
&
Investment Banking
Vehicles
Cards – Non Current Account
Holders
Taií, 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.
Strategy by Segment
28
Highlights of Pro Forma Segments
Itaubanco Itaú BBA Itaucred Corporation Itaú 1
4th Quarter of 2006
Recurring Net Income 1,084 297 202 45 1,628
Allocated Capital Tier I 12,244 5,754 2,780 2,787 23,564
RAROC in the Quarter (% p.y.) 36.3% 21.3% 31.7% 5.5% 28.8%
Total Assets 159,178 61,869 25,844 6,253 209,691
3rd Quarter of 2006
Recurring Net Income 793 337 185 277 1,592
Allocated Capital Tier I 11,617 5,407 2,317 2,352 21,693
RAROC in the Quarter (% p.y.) 29.1% 28.0% 33.8% 64.1% 32.5%
Total Assets 158,090 53,803 22,613 5,346 206,935
R$ Million (Except where indicated)
1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.
Strategy by Segment
29
Highlights of Pro Forma Segments
1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.
Itaubanco Itaú BBA Itaucred Corporation Itaú 1
2006
Recurring Net Income 3,655 1,335 649 557 6,195
Allocated Capital Tier I 12,244 5,754 2,780 2,787 23,564
RAROC (% p.y.) 35.9% 27.7% 29.8% 30.8% 32.6%
Total Assets 159,178 61,869 25,844 6,253 209,691
2005
Recurring Net Income 3,179 1,242 525 497 5,443
Allocated Capital Tier I 7,603 4,328 1,688 1,941 15,560
RAROC (% p.y.) 43.1% 34.2% 39.8% 19.5% 36.6%
Total Assets 117,002 43,256 15,955 4,497 152,435
R$ Million (Except where indicated)
Strategy by Segment
30
Interest Rate Sensitivity
4th Q/06 3rd Q/06
Average Balance
Financial Margin
Rate (p.y.)Average Balance
Financial Margin
Rate (p.y.)
A) Operations Sensitive to Variation in the Basic Interest Rate 29,559 923 12.5% 28,405 994 14.0%
B) Interest-Bearing Assets and Liabilities 106,610 3,268 12.3% 95,411 3,048 12.8%
Total (A + B) (Net interest margin) 136,169 4,191 12.3% 123,815 4,043 13.1%
Treasury Financial Margin 429 149
Financial Margin of Management of Foreign Exchange Risk
127
137
Total Managerial Financial Margin 4,747 4,328
R$ 29,559 million X 1% = R$ 296 million per yearor R$ 74 million per quarter
R$ Million (Except where indicated)
Strategy by Segment
31
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment• Retail• Personnalité• Itaú BBA• Itaucred
•ADR’s Evolution
• Creation of Shareholder Value
32
Number of Clients (in thousands)
3,226500723
8,886 9,491 9,738 10,410
2,108 1,865 1,900 1,917-
8,134 9,914
1,9631,747
1,963 3,159
19,269
16,648
13,46112,86411,878
10,872
Dec / 01 Dec / 02 Dec / 03 Dec / 04 Dec / 05 Dec / 06
Account Holders Saving Accounts
Non-Account holders - Taií Non-Account holders - Credit Cards
Non-Account holders - Insurance and Pension Non-Account holders - Auto-finance and Mortgage Loans
Total
Strategy by Segment
33
Pensions
Market Share(*)
Insurance
(*) Insurance = Total Premium (Insurance + LGFB + Health). Pensions = Provisions for Pension Operations.
Strategy by Segment - Insurance
15.7%
6.7%
12.3%
8.3%
18.3%
14.2%
8.8%
10.8%
10.7%10.6%
8.0%
6.3%5%
10%
15%
20%
dez/01 dez/02 dez/03 dez/04 dez/05 dez/06
34
Number of branches opened since 2002 and forecast for 2007
4022
52
146
110130
2002 2003 2004 2005 2006 2007
Growth of 18% since 2002 until 2007
Strategy by Segment
35
Strategy by Segment - 2007 Outlook
• Small reduction in delinquency ratio.
• Efficiency ratio improvement.
• 20% - 25% growth in credit portfolio.
• 10% growth in Banking Service Fees (15% in Itaú Holding).
• Opening of 130 branches.
• Expansion the operations in Argentina, Chile and Uruguay.
Banco Itaú S.A.
36
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment• Retail• Personnalité• Itaú BBA• Itaucred
•ADR’s Evolution
• Creation of Shareholder Value
37
4861 64
9382
166
2001 2002 2003 2004 2005 2006
Number of Personnalité branches (*)
Strategy by Segment
(*) In 2006 includes 66 branches of BankBoston.
38
65.385
109.202139.256
206.374172.766
238.402
2001 2002 2003 2004 2005 2006
Personnalité Itaubank
Number of Personnalité Clients
Strategy by Segment
419.182
180.780
39
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment• Retail• Personnalité• Itaú BBA• Itaucred
•ADR’s Evolution
• Creation of Shareholder Value
40
Equity Transactions 1 Transactions in 2006
IPOs
Follow-ons
Global Coordinator
and Joint BookrunnerR$ 627 Million
Global Coordinator andJoint BookrunnerR$ 401 Million
Global Coordinator
and Joint BookrunnerR$ 927 Million
Global Coordinator and Joint BookrunnerR$ 529 Million
Global Coordinator and Joint BookrunnerR$ 460 Million
Joint BookrunnerR$ 663 Million
Sole Global Coordinator and Joint BookrunnerR$ 609 Million
Joint BookrunnerR$ 1,345 Million
Joint BookrunnerR$ 800 Million
4
4
10
Number of transactions Volume (R$ Millions)
Source: Prospects of offers with 100% credit to bookrunners. Note 1 : Until November 29th, 2006
Global Coordinator and Joint BookrunnerR$ 454 Million
3rd place in number and volume of transactions
Growth of Investment Banking Operations – Equities
1,984
4,626
6,815
2004 2005 2006 YTD
Strategy by Segment
41
2.907
1.660
2005 2006 YTD
7.375
8.727
10.734
2004 2005 2006 YTD
Fixed Income Transactions Selected Transactions in 2006
Fixed Income
FIDC
DebentureLead CoordinatorR$ 510 Million
DebentureCoordinatorR$ 700 Million
DebentureCoordinator R$ 500 Million
DebentureLead CoordinatorR$ 350 Million
DebentureCoordinatorR$ 1.1 billion
DebentureLead CoordinatorR$ 220 Million
DebentureCoordinator R$ 2.2 Billion
2006Lead Coordinator
R$ 900 Million
2006Lead CoordinatorR$ 650 Million
FIDC Transcations
Source: Anbid, with 100% credit to coordinator
Source: Anbid, with 100% credit to coordinator
Number of transactions Volume (R$ Millions)
8
3
26
19
19
Number of transactions Volume (R$ Millions)
NPLead CoordinatorR$ 570 Million
NPCoordinatorR$ 374 Million
CRILead Coordinator
R$ 74 Million
Growth of Investment Banking Activity – Fixed Income
2nd place - Anbid
1st place - Anbid
NPCoordenador LíderR$ 800 milhões
DebêntureCoordenadorR$ 250 milhões
Strategy by Segment
42
M&A Transactions1 Selected Transactions in 2006
Source: Thomson Financial. Notes: 1 Until October 27th, 2006
Financial Advisor in the incorporation of Vivax by Net US$676 Million
Financial Advisor in the sale of control of Fertibrás to Yara InternationalUS$339 Million
Financial Advisor to Cataguazes in reorganizing its generation and distribution assetsUS$184 Million
Financia Advisor to Suzano Petroquímica, Sumitomo and Itochu in the sale of a share of 62.2% in PolitenoUS$251 Million
Financial Advisor to Whirlpool Corporation in reorganizing its assets in BrazilUS$352 Million
Financial Advisor to CEMIG, Andrade Gutierrez, JLA Part. and Pactual in the acquisition of LightUS$2,102 Million
Financial Advisor in the sale of control of Companhia Luz e Força Santa Cruz to CPFL Energia S.A. US$92 Millions
Financial Advisor to Gerdau in tag along offer of Aços VilaresUS$ 192 Million
7 7
13
2004 2005 2006 YTD
Growth of Investment Banking Activity – M&A
3rd place in number oftransactions
Strategy by Segment
43
Strategy by Segment - 2007 Outlook
• Focus on Investment Banking activities.
• Continuous improvement of market risk management.
• Continuous improvement of service fees.
• Consolidation of Corporate clients portfolio in Argentina, Chile and Uruguay.
• Slight reduction in the credit portfolio.
Banco Itaú BBA S.A.
44
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment• Retail• Personnalité• Itaú BBA• Itaucred
•ADR’s Evolution
• Creation of Shareholder Value
45Itaucred
23.0%
18.0%
14.5%14.4%
9.6%
0.3
4.1
17.8
0.20.50.40.2
2.5 5.8
10.52.6
4.4
6.2
10.9
18.0
0
2
4
6
8
10
12
14
16
18
20
Dec/02 Dec/03 Dec/04 Dec/05 Dec/06
Itaubanco Itaucred BIHF
(in R$ billions)Auto Finance Balance Growth (*)
(*) Does not include BankBoston.
Segmented Business – Auto Finance
CAGR: 62.2%
Market Share - Veihcles (Estimated from Jan to Sep.)
46Itaucred
1,637 1,860
1,136
2,463
3,594
4,418
2,6873,622
4,279 1,311
2,7733,171
5,150
7,216
8,697
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2002 2003 2004 2005 2006
Itaubanco Itaucred BIHF
R$ Million
(*) Does not include BankBoston.
Growth of Credit Card Revenue (*)
Balance of Credicard prior to increase in Itaú’s equity stake from 33% to 50%
Segmented Business – Credit Cards
47Itaucred
Taií Stores
167
650
834
Segmented Business
48Itaucred
Balance of Loans - Taií
1.62.0
3.2
0.4
Dec/04 Sep-05 Dec/05 Dec-06
(in R$ billions)
Segmented Business
49Itaucred
Growth of Associated Stores - Auto Finance
5,539
8,880 9,920
13,04714,312
2002 2003 2004 2005 2006
(in numbers of)
CAGR: 26.8%
Segmented Business – Auto Finance
50
2007 Outlook
Taií
• 100 new sales points.
• 50% growth in credit portfolio (not including payroll loans).
• Efficiency ratio improvement.
• Delinquency ratio improvement.
• On the 4Q/07, we wait to reach break-even of the three operation (FIC, FAI and FIT).
Vehicles
• 40% growth in vehicles financing and leasing portfolio.
• Efficiency ratio improvement.
• Maintenance of delinquency ratio.
Credit Card
• 20% growth in billing.
• Maintenance of delinquency ratio.
Itaucred
51
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
52
* From Feb 21, 2002
** To Feb 21, 2007
Daily Average Volume Negociated - ADRs
46,515,924
37,068,062
17,168,645
6,423,9864,112,8742,834,609
2002* 2003 2004 2005 2006 2007**
ADR’s Evolution
53
Outstanding ADR's - NYSE
3,087,445
37,116,820
63,531,980 63,100,258
93,355,78392,849,183
61,606,360
Feb-02 2002 2003 2004 2005 2006 Feb-07
ADR’s Evolution
54
Outstanding ADR's - NYSE
3,087,445
37,116,820
63,531,980 63,100,258
93,355,78392,849,183
61,606,360
Feb-02 2002 2003 2004 2005 2006 Feb-07
Annual Average Growth: 97.8%
ADRs Evolution
55
ADR Closing Price - NYSE
7,86
37.81
32.89
24.24
18.79
17.33
11.75
8.08
10.18
7.164.24
33.39
23.64
36.09
2/21
/200
2
6/21
/200
2
10/2
1/20
02
2/21
/200
3
6/21
/200
3
10/2
1/20
03
2/21
/200
4
6/21
/200
4
10/2
1/20
04
2/21
/200
5
6/21
/200
5
10/2
1/20
05
2/21
/200
6
6/21
/200
6
10/2
1/20
06
2/21
/200
7
Price valorization of 467.7% in 5 years.
Average valorization of 36.1% per year.
US$
ADR’s Evolution
2/2
3/2
00
7
36.00
56
• Highlights
• 4thQ. Results
• Mortgage
• Strategy by Segment
• ADR’s Evolution
• Creation of Shareholder Value
57
5.6 6.4 5.8
10.2 10.98.5
5.3
11.1
17.0
43.2
26.4
0
10
20
30
40
96 97 98 99 00 01 02 03 04 05 06
Market Value (in US$ billions)
CAGR(96 – 06) = 22.7%
Creation of Shareholder Value
58
40,3%43,0%44,1%44,5%
41,1%36,2%
40,2%
Dec/00 Dec/01 Dec/02 Dec/03 Dec/04 Dec/05 Dec/06
Participation of foreign investors (*)
(*) Participation over outstanding preferred shares – free float
Creation of Shareholder Value
59
0
100
200
300
400
500
600
700
800
900
1.000
1.100
1.200
1.300
97 98 99 00 01 02 03 04 05 06 07
Itaú (1)Itaú (2)Bovespa
In US$
Itaú(1) Itaú(2) Ibov.10 years 27.82% 23.07% 10.68% 5 years 44.16% 39.44% 31.91%12 months 24.42% 21.84% 21.30%
Annual Average Appreciation in US$
(1) With dividends reinvestment (2) Without dividends reinvestment (3) São Paulo Stock Exchange
797797
276276
1,164
Russian Crisis
Real Depreciation
Asian Crisis
Argentina Crisis
Atack to WTC
Brazilian Election Period
Increase on FED Rates
Evolution of US$ 100 invested from Jan/96 to Jan/06
Creation of Shareholder Value
60
Alfredo SetubalInvestor Relations Director
New YorkMarch 1st, 2007
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