CONFERENCE CALLCONFERENCE CALLTHIRD QUARTER OF 2000THIRD QUARTER OF 2000

October 25, 2000

11:00 a.m.

Balance Sheets - ConsolidatedBalance Sheets - Consolidated

Jun/00Sep/00

R$ Million

Cash and Cash Equivalents

Money Market

Securities

Interbank Deposits

Credit Operations (*)

Other Assets

Permanent Assets

Provision forLoan Losses

Interbank Funds Applied

Deposits

Borrowing and On-lending Borrowings

Other Liabilities

Minority Interest

Interbank Accounts

Stockholders’ Equity

Liabilities

Total Liabilities

Assets

Total Assets

(*) Not Included Advances on Exchange Contracts.

Var %

Acceptances andDebentures

Money Market Repurchase Commitments

21,888

3,152

5,191

9,912

445

6,353

2,916

4,672

Sep/00 Var %

1,557

14,188

5,613

2,991

Jun/00

54,529 54,529

3,867

2,740

16,833

(1,443)

8,183

1,414 (9.2)

16,224

6,636

(1,516)

2,987

57,233

14.4

18.2

22,106

6,919

2,711

2,426

5,385

10,567

441

6,678

57,233

(0.1)

5.0 5.0

1.0

48.1

(7.0)

(23.0)

3.8

6.6

(0.9)

5.1

17,826 5.9

2,932

2,541

8,189

(24.2)

(7.3)

(5.0)

0.0

2

Income StatementIncome StatementR$ Million

Net Income

Itaú Consolidated

Net Income from Financial Operations Provision for Loan Losses Banking Service FeesSalaries, Employee Benefits and Other Adm. ExpensesEquity Share in Income of Subsidiaries and AffiliatesOther Operating and Non Operating IncomeIncome before taxesExtraordinary ResultsIncome Tax and Social ContributionProfit SharingMinority Interest

1,169(163)

871(1,234)

90(68)666

0 (174)

(40)(16)

3Q00 2Q00 Var (%)

6.2 435

1,268(159)

835(1,251)

96(110)

679(36)

(153)(31)

4

8.5 2.4

(4.2)(1.4)

6.7(59.4)

1.9-

(12.1)(22.5)

(125.0)

462

3

Market Capitalization, Stockholders’ Equity Market Capitalization, Stockholders’ Equity and and Consolidated Net IncomeConsolidated Net Income (1)(1)

18,006

5,563 5,801 5,907 6,125 6,353 6,678

9,91411,109

17,83416,566

17,395

462435365

415360

333

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

0

100

200

300

400

500

600

700

800Consolidated Stockholders' Equity

Market Capitalization

Consolidated Net Income

R$ Million

1) Net Income of Quarter; Stockholders’ Equity and Market Capitalization as of period ended.

4

3.03.1 2.9 2.9 2.8 2.714.5 15.5 17.1 17.4 18.7 19.6

Jun.99 Sep.99 Dec.99 Mar.00 Jun.00 Sep.00

Mortgage Others

HIGHLIGHTS HIGHLIGHTS R$ Billion(*)

(*) Balance at the end of period

(1) Including Matrix Funds

56.3 54.3 51.9 54.1 54.5 57.2

0

20

40

60

80

Jun.99 Sep.99 Dec.99 Mar.00 Jun.00 Sep.00

TOTAL ASSETS LOANS

21.420.1

23.222.1 21.8 22.1

0

5

10

15

20

25

Jun.99 Sep.99 Dec.99 Mar.00 Jun.00 Sep.00

DEPOSITS

27,2 28,0 32,0 34,1 37,3 39,7

0

10

20

30

40

Jun.99 Sep.99 Dec.99 Mar.00 Jun.00 Sep.00

ASSET MANAGEMENT (1)

17.6 18.5 20.0 20.2 21.6 22.2

5

226 333 437 522365 435 498

535

(77) (107) (36)

(200)

(100)

0

100

200

300

400

500

600

700

800

900

1st Q 99 2nd Q 99 3rd Q 99 4th Q 99 1st Q 00 2nd Q 00 3rd Q 00

Net Recurring Income Extraordinary Results

Statements of IncomeStatements of Income

761

360415 462

Net Income(Million)

6

6,46

2,82 3,06 3,52 3,10 3,70 3,92

0

1

2

3

4

5

6

7

8

9

10

1stQ 99 2ndQ 99 3rdQ 99 4thQ 99 1stQ 00 2ndQ 00 3rdQ 00

Consolidated Net Incomeper Thousand Shares

R$

Excellent PerformanceExcellent Performance

(*) Annualized

2,9%

ROE

-5.2% -7.0%-2.2%

40.3%26.1% 33.3%26.2% 33.8% 30.3%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Extraordinary Recurring

ROA

-0.6% -0.9%-0.3%

2.4% 3.5%2.7%4.1%

3.2%3.3%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

Extraordinary Recurring

26.2%27.3%

31.2%

26.1% 30.3%2.4% 2.7%

3.2%2.7% 3.2%30.7% 3.3%

7

Net Interest MarginNet Interest MarginR$ Million

Itaú Consolidated

Loans and Leases Securities Portfolio Trade Finance and Foreign Exchange Portfolio Compulsory DepositsIncome from Financial OperationsExpenses from Financial OperationsFinancial Margin

Average Loans Average Earning Assets Average Funding Resources

Annual Average Rate of Income from Loans and Leases

Annual Average Rate of Income from Financial Operations

Annual Average Rate of Expenses from Financial Operations

Annual Average Rate of Financial Margin

2Q00

17,81345,65237,676

3Q00

1,1498752747

2,099(930)1,169

25.8%18.4%(9.9)%10.7%

17,81345,65237,676

1,1699321745

2,163(894)1,268

18,69247,54938,683

25.0%18.2%(9.2)%11.1%

8

Changes in the Valuation Allowance for SecuritiesChanges in the Valuation Allowance for Securities

R$ Thousand

R$ Thousand

Balances as of September 30, 2000

Balances as of December 31, 1999

ConstitutionWrite-offs:. Reversals. Losses for sales

902,301

14,971(32,206)(19,892)(12,314)

Minimum Provision Required

Additional provision

885,066

139,166

745,900

Securities and interbank deposits

Valuation allowance

Net Book Value

17,831,953

(903,463)

16,928,490

06/30/2000Summary 09/30/2000

19,650,220

(885,066)

18,765,154

9

19,151

16,89012,325

8,022

3,958 5,531

11,572

6,328

22,215

19,59614,127

9,057

4,6345,846

11,798

6,366

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

22.000

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 2000( ** )

R$ Million *

Credit Operations

Sep.00 Jun.00 Var (%)Loans 17,076 16,187 5.5 Leasing 751 647 16.1 O.Receivable 179 166 7.8AEC 1,146 1,234 (7.1)Sub-total 19,151 18,233 5.0 Guarantees 3,064 3,339 (8.2)Total 22,215 21,572 3.0

Credit Operations

Sep.00 Jun.00 Var (%)Loans 17,076 16,187 5.5 Leasing 751 647 16.1 O.Receivable 179 166 7.8AEC 1,146 1,234 (7.1)Sub-total 19,151 18,233 5.0 Guarantees 3,064 3,339 (8.2)Total 22,215 21,572 3.0

Credit Operations (1)

Credit Operations and Guarantees (2)

( * * ) June 30, 2000.

( 1 ) Credit Operations: Loans, Leasings, Other Receivables and Advances on Exchange Contracts (AEC)( 2 ) Guarantees: Endorsements, Sureties and Other Guarantees

( * ) In currency of Constant Purchasing Power as of December 31, 1995 until then, after which the calculation will be made in accordance to the Corporation Law

Credit Operations (**)

10

Risk

AAABCDEFGH

Balance %

0.0% 0.5% 1.0% 3.0% 10.0% 30.0% 50.0% 70.0% 100.0%

Specific

Provision (1)

Generic

Provision (2)

Total 18,233 438 389

Excess

Provision

616

Total

Provision

1,443

Risk

AAABCDEFGH

Balance %Specific

Provision (1)

Generic

Provision (2)

Total 19,151 500 399

Excess

Provision

616

Total

Provision

1,516

5,483 7,100 3,307 1,598 547 284 327 85 420

0.0% 0.5% 1.0% 3.0% 10.0% 30.0% 50.0% 70.0% 100.0%

0 0 3 7 12 26 48 57 348

0 35 31 41 43 59 116 2 72

09/30/2000

Provision For Loan Losses - Res. 2682Provision For Loan Losses - Res. 2682

R$ Million

R$ Million 0 34 30 38 39 58 116 2 72

0 0 4 7 12 25 53 55 281

4,932 6,769 3,456 1,514 514 275 339 80 353

0 0 0 304 113 59 118 23 0

09/30/2000

0 0 0 302 107 59 126 22 0

11

12

Credit Operations QualityCredit Operations Quality

83.0%83.1%83.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

03.31.00 06.30.00 09.30.00

Credit Operations Quality AA, A e B

Credit risk is managed in a consolidated and centralized manner. All credit operations receive a rating, and 83% of

Credit Operations are ranked in the following categories: AA, A and B.

10.7

1.3

12.0

2,381

278

2,659

Credit Portfolio Development Consolidated by Client TypeCredit Portfolio Development Consolidated by Client Type

Client

Corporate

Small and Medium-Sized Companies

Individuals

Credit Cards

Sub-Total

57.5

6.0

15.8

7.5

86.8

09/30/00 06/30/00 % Var %%

R$ Million

2,479

363

2,842

11.5

1.7

13.2

Real Estate

TOTAL 22,215 21,572 100.0100.0

Individuals

Businesses

Total

12,409

1,287

3,414

1,619

18,729

77

176

434

140

827

0.6

13.6

12.7

8.7

4.4

(98)

(85)

(184)

(4.0)

(23.4)

(6.5)

3.0643

56.2

6.6

17.3

7.9

88.0

12,486

1,463

3,848

1,759

19,556

13

1.9

3.8

(3.4)

(89.2)

8.1

4.2

1.4

(9.2)

Banking Services FeesBanking Services FeesR$ Million

Total

Itaú Consolidated

Mutual Fund Management Fees

Collection Fees

Current and Savings Account Service Fees

Collection Fees Agreements with Public Co.

Interbank Tariff

Loans

Credit Cards

Other Services

3Q00 Var %

208

52

145

37

37

48

214

130

2Q00

Total 871 (4.1)

212

54

140

4

40

50

217

118

835

14

Excellent PerformanceExcellent Performance

BIS RATIO

20.8%20.9% 21.0% 19.6% 20.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

3Q99 4Q99 1Q00 2Q00 3Q00

EFFICIENCY RATIO

58.4%58.6%56.6%57.3%

63.2%

57.5%

52,0%

54,0%

56,0%

58,0%

60,0%

62,0%

64,0%

2Q99 3Q99 4Q99 1Q00 2Q00 3Q00

The solvability ratio in the third quarter reached 20.2%,

based on the financial conglomerate, and 18,3% based

on the company conglomerate.

15

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

SEP-90 DEC-91 DEC-92 DEC-93 DEC-94 DEC-95 DEC-96 DEC-97 DEC-98 DEC-99 SEP-00

* Without Reinvestment* Without Reinvestment

ANNUAL APPRECIATIONANNUAL APPRECIATION. 10 years (Average). 10 years (Average) 52.96 % 52.96 %. 5 years (Average). 5 years (Average) 28.09 % 28.09 %. 12 months (Average). 12 months (Average) 77.11 % 77.11 %. 2000 3.71 % . 2000 3.71 %

ANNUAL APPRECIATIONANNUAL APPRECIATION. 10 years (Average). 10 years (Average) 52.96 % 52.96 %. 5 years (Average). 5 years (Average) 28.09 % 28.09 %. 12 months (Average). 12 months (Average) 77.11 % 77.11 %. 2000 3.71 % . 2000 3.71 %

ITAÚITAÚ BOVESPABOVESPA

PREFERRED SHARES - APPRECIATION *PREFERRED SHARES - APPRECIATION *EVOLUTION OF US$ 100 INVESTED IN SEPTEMBER OF 1990EVOLUTION OF US$ 100 INVESTED IN SEPTEMBER OF 1990

7,035

1,145100

Collor Plan

Real Plan

Mexican Crisis

Asian Crisis

Russian Crisis

Real Devaluation

US$US$

16