Banco Itaú Holding Financeira S.A. YE 2003 Results February 19, 2004 - 3:00 p.m. Alfredo Egydio Setubal Investor Relations Director Silvio de Carvalho

Banco Itaú Holding Financeira S.A.

YE 2003 Results

February 19, 2004 - 3:00 p.m.

Alfredo Egydio SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

Video Conference Presentation to:

2


Banco Itaú S.A.Banco Itaú-BBA S.A.

Important FactsBanco Itaú Holding Financeira

3

Banco Itaú Holding Financeira Highlights

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

R$ Million (Except where indicated)

4

Banco Itaú Holding Financeira Financial Ratios

2.6 2.9 2.1 2.7

26.5

18.4

27.731.5

26.3

19.816.9

14.4

0

5

10

15

20

25

30

35

40

45

50

55

60

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

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

5

58.4 56.6 56.359.7

55.7 56.3 55.0 54.4 56.1 55.7

50.4

41.5 40.8

46.7 47.6 49.5

Banco Itaú Holding Financeira Efficiency Ratio (%)

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.

6

Banco Itaú Holding Financeira Asset Evolution

18,25924,445

32,068

46,357 48,995 51,911

69,555

81,807

118,738111,141

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$ Million

7

14,05816,890

23,674

29,615

38,659

16,07719,596

27,253

44,594

38,41934,282

45,414

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1998 1999 2000 2001 2002 2003

Credit Operations Credit Operations and Guarantees

R$ Million

Banco Itaú Holding Financeira Credit Operations

8

R$ Million

Corporate

Small and Medium Sized

Companies

Individuals

Mortgage Loans

Total

28,219

4,376

10,467

2,352

45,414

Var Dec/03

x Sep/03

0.3%

22.1%

7.5%

-3.2%

4.4%

Dec 31, 03

24,115

5,317

13,083

2,067

44,581

Dec 31, 02

Banco Itaú Holding Financeira Credit Operations (*)

(*) Endorsements and Sureties included.

Sep 30, 03

24,036

4,353

12,175

2,135

42,699

Var Dec/03

x Dec/02

-14.5%

21.5%

25.0%

-12.1%

-1.8%

9

Banco Itaú Holding Financeira Credit Operations by Currency (*)

R$ 29.1 R$ 31.2 R$ 31.2 R$ 30.2 R$ 32.3

R$ 16.3 R$ 15.2 R$ 13.4 R$ 12.5 R$ 12.2

0.05.0

10.015.020.025.030.035.040.045.050.0

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

Local Currency Foreign Currency

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

R$ 44.4

In Billion

(US$ 4.6) (US$ 4.5) (US$ 4.7)(US$ 4.3) (US$ 4.2)


10

1,406 1,5101,692

1,853 1,9532,196

2,5152,332 2,285 2,234 2,378 2,257

630680

680715

715

715

747841 843 848

913906

3,172 3,128 3,0823,290 3,163

2,0362,190

2,3722,568

2,668

3,262

2,911

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

Banco Itaú Holding FinanceiraProvision for Loan Losses

R$ Million

Minimum Provision

Additional Provision

Total Provision

11

Banco Itaú Holding Financeira Nonperforming Loans and Coverage Ratio

Coverage Ratio (*)Coverage Ratio (*)

Nonperforming Loans Ratio – TotalNonperforming Loans Ratio – Individuals

Nonperforming Loans Ratio – Businesses

(*) Provision Balance / Total Nonperforming Loans

Nonperforming Loans Ratio (%)Nonperforming Loans Ratio (%)

4.17 4.164.65 4.71

4.14

10.66

8.467.34

8.948.25

1.461.99 2.35 2.53 2.15

0.00

2.00

4.00

6.00

8.00

10.00

12.00


198% 189%173%

189% 198%


12

R$ Million

2003

1,26952

3271,002

159213546933107565

5,121

2002

1,0310

29691217219945893071

397

4,466

Mutual Fund Management FeesConsortium AdministrationCollectionChecking Account ServicesTax CollectionInterbank FeesCredit Operation FeesCredit CardIncome from Guarantees ProvidedOtherTotal

Variation %

23.0%

10.3%9.9%

-7.1%6.7%

19.3%0.3%

51.5%42.3%

14.7%

Banco Itaú Holding FinanceiraBanking Service Fees

13

R$ Million

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

Banco Itaú Holding FinanceiraAdministrative Expenses

2002

2,488

4,040

716

7,244

7,244

Variation

89

276

(286)

78

556

14

Banco Itaú Holding FinanceiraFinancial Instruments – Market Value

Total Unrealized

Interbank Deposits

Securities and Derivatives

Reclassification of Additional Provision Additional Provision Adjustment of Securities Available for Sale Adjustment of Securities Held to MaturityCredit Operations

Investments (basically in BPI)

Time and interbank deposits and funds from

acceptance and Issuance of securities abroad

Securitization of payment orders abroad

Subordinated Debt and Treasury shares

R$ Million

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

December/2003

2,677

2,048

10

1,556

-545758253319

627

33

74

58

10

688

-545

-143319

627

33

74

297

Income EquityDecember/2002

1,765 1,794

3

543

-760

(168)(49)(89)

285

1,673

170

682

3

456

(255)760

-(49)(89)

285

173

170

797

(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.

15

. 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.

Banco Itaú Holding FinanceiraPro Forma

16

Banco Itaú Holding FinanceiraPro Forma

Banco Itaú

2,420

8,619

28.1%

22,113

100,516

Banco Itaú-BBA

732

3,260

22.5%

22,468

29,693

R$ Million

Net Income


ROE (%)

Credit Operations (*)

Total Assets

Banco Itaú

2,214

7,986

27.7%

19,629

81,763

Banco Itaú-BBA

591

2,903

20.4%

25,786

33,114

2003 2002


17


Banco Itaú S.A.Banco Itaú-BBA S.A.


18

Banco Itaú Pro Forma

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%

R$ Million

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%

19

Credit Cards21%

Mutual Funds and Managed

Portfolios9%

Insurance, Capitalization and Pension

Plans16%

Banco Itaú - Banking

54%

Banco Itaú Pro FormaConsolidated Net Income

Diversification of income sources Not only restricted to interest rates

Banco Itaú - Banking

49%Insurance,

Capitalization and Pension

Plans19%

Mutual Funds and Managed

Portfolios8%

Credit Cards24%

44thth Quarter 2003 Quarter 2003 20032003

20

Banco Itaú – Pro Forma Credit Operations (*) R$ Million

Corporate

Small and Medium Sized

Companies

Individuals

Mortgage Loans

Total

2,433

4,376

10,467

2,353

19,629

Var Dec/03

x Sep/03

19.6%

22.2%

7.5%

-3.2%

10.3%

Dec 31, 03

1,647

5,317

13,083

2,066

22,113

Dec 31, 02


Sep 30, 03

1,377

4,353

12,175

2,135

20,040

Var Dec/03

x Sep/02

-32.3%

21.5%

25.0%

-12.2%

12.7%

21

Banco Itaú – Credit Cards

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

R$ Million

Variation

201

1,808

339

(36)

3.6%

20.6%

329.1%

-20.5%

22

Banco Itaú - Technical Provisions of Insurance, Capitalization and Pension Plans

2,825 3,3523,991

4,907923

906902

927

977

1,0211,077

1,1341,168

1,236

2,459

569


Technical Provisions - Pension Plans AGF

Technical Provisions - Capitalization Technical Provisions - Insurance

R$ Million

7,689

4,4034,808

5,388

6,086

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

23

Banco Itaú - Insurance, Capitalization and Pension Plans

2003 20023rd Q./034th 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)

R$ Million

24

Banco Itaú – Mutual Funds and Managed Portfolios

59,2 62,967,1

71,878,8

dez/02 mar/03 jun/03 set/03 dez/03

Assets under ManagementAssets under Management

R$ Billion

29

4236

50 52

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

R$ MillionNet IncomeNet Income

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

25

Banco Itaú 2004• 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

26


Banco Itaú S.A.Banco Itaú-BBA

S.A.


27

Banco Itaú-BBA Pro Forma

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%

R$ Million

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%

28

Banco Itaú-BBA Pro FormaNonperforming Loans

R$ Million

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”.

29

Banco Itaú BBA 2004

• 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.

30

Banco Itaú-BBA S.A.


Banco Itaú S.A.


31

Banco Itaú Holding FinanceiraImportant Facts

• Cancellation of listed company registration of Banestado, Bemge and Beg.

• Election of Tereza Grossi to the Board of Directors as the Financial Expert of the Audit Committee (to be approved in the next General Ordinary Shareholders Meeting).

• Stock Grouping approved by the Administrative Council:

• Bovespa – 1000 shares to 1 share

• Nyse –2 ADRs to 1 ADR

• Acquisition of AGF.

32

Banco Itaú Holding FinanceiraAGF Operation

(*) Not consolidated in December 31, 2003.

TotalLife Insurance Portfolio

AGF Vida e Previdência

R$ Million (Except where indicated)

GoodwillEquityBusiness Value

107123

13243

AGF Vida e PrevidênciaBanco AGF (*)Life Insurance PortfolioTOTAL

54123

-177

53

6326086212

740

Total AssetsTechnical ReservesNumber of Pension Plan Clients (Thousand)Number of Life Insurance Policy (Thousand)Insured Lives (Thousand)

-39

-12

740

63256962

--

33

4,956,04

7,47

15,86 15,99

21,41 21,36

27,67

1996 1997 1998 1999 2000 2001 2002 2003

CAGR = 27.9%

R$

Banco Itaú Holding FinanceiraEvolution of Net Income per Thousand Shares


YE 2003 Results

February 19, 2004 - 3:00 p.m.

Alfredo Egydio SetubalInvestor Relations Director

Silvio de CarvalhoExecutive Director

Video Conference Presentation to:

Documents

Banco Itaú Holding Financeira S.A. YE 2003 Results February 19, 2004 - 3:00 p.m. Alfredo Egydio Setubal Investor Relations Director Silvio de Carvalho