Alfredo Setubal Investor Relations Director

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




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


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.


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%


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


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%


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


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%


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




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




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


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


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


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


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


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


Strategy by Segment

31

• Highlights

• 4thQ. Results

• Mortgage

• Strategy by Segment• Retail• Personnalité• Itaú BBA• Itaucred

•ADR’s Evolution


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




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




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


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


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


DebentureCoordinatorR$ 1.1 billion


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


8

3

26

19

19


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




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).


• 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.


• Maintenance of delinquency ratio.

Credit Card

• 20% growth in billing.

• Maintenance of delinquency ratio.

Itaucred

51

• Highlights

• 4thQ. Results

• Mortgage




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




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


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


60

Alfredo SetubalInvestor Relations Director

New YorkMarch 1st, 2007

Documents

Alfredo Setubal Investor Relations Director