ITAÚ UNIBANCO S.A. MANAGEMENT REPORT To our Stockholders: We present the Management Report and financial statements of ITAÚ UNIBANCO S.A. and its subsidiaries (ITAÚ UNIBANCO CONSOLIDATED) for the periods from January 1 to June 30, 2010 and 2009, in accordance with the regulations established by the Brazilian Corporate Law, the National Monetary Council (CMN), the Central Bank of Brazil (BACEN) and the Superintendency of Private Insurance (SUSEP). NET INCOME AND STOCKHOLDERS' EQUITY ITAÚ UNIBANCO CONSOLIDATED net income totaled R$ 3,662 million for the period and net income per share of capital stock was R$ 0.89. Consolidated stockholders' equity totaled R$ 37,063 million and book value per share reached R$ 9.05. ASSETS AND FUNDS RAISED Assets totaled R$ 618,948 million and were substantially made up of R$ 280,110 million of Interbank Investments, Securities and Derivative Financial Instruments, and R$ 216,092 million of Loan, Lease, Other Credit Operations and Foreign Exchange Portfolio. Raised and Managed Funds represented R$ 534,697 million. CIRCULAR LETTER No. 3,068/01 OF BACEN ITAÚ UNIBANCO CONSOLIDATED hereby represents to have the financial capacity and the intention to hold to maturity the securities classified under the line “held-to-maturity securities” in the balance sheet, in the amount of R$ 2,953 million, corresponding to only 2.8% of the total securities and derivative financial instruments held. ACKNOWLEDGEMENTS We thank our shareholders and clients for their indispensable support and trust, and our employees for their determination and commitment, which have been essential to reaching differentiated results. São Paulo, August 30, 2010. Executive Board

ITAÚ UNIBANCO S.A.

Chief Executive Officer Directors (Continued)ROBERTO EGYDIO SETUBAL GILBERTO TRAZZI CANTERAS

HENRIQUE RUTHER (*)Vice-Presidents JACKSON RICARDO GOMES

ALEXANDRE DE BARROS JASON PETER CRAUFORD ALFREDO EGYDIO SETUBAL JEAN MARTIN SIGRIST JÚNIORGERALDO JOSÉ CARBONE JOÃO ANTONIO DANTAS BEZERRA LEITEJOSÉ CASTRO ARAÚJO RUDGE JOÃO LUIZ DE MEDEIROSMÁRCIO DE ANDRADE SCHETTINI JORGE LUIZ VIEGAS RAMALHO MARCO AMBROGIO CRESPI BONOMI LAVÍNIA MORAES DE ALMEIDA NOGUEIRA JUNQUEIRA MARCOS DE BARROS LISBOA LEILA CRISTIANE BARBOZA BRAGA DE MELORUY VILLELA MORAES ABREU LINDA AGARINAKAMURARICARDO VILLELA MARINO LUÍS ANTONIO RODRIGUESSÉRGIO RIBEIRO DA COSTA WERLANG LUÍS EDUARDO GROSS SIQUEIRA CUNHA

LUIS TADEU MANTOVANI SASSI Executive Directors LUIZ ANTONIO FERNANDES CALDAS MORONE

CAIO IBRAHIM DAVID (*) LUIZ ANTONIO NOGUEIRA DE FRANÇACELSO SCARAMUZZA LUIZ EDUARDO LOUREIRO VELOSO CLAUDIA POLITANSKI LUIZ FELIPE PINHEIRO DE ANDRADEDEMOSTHENES MADUREIRA DE PINHO NETO LUIZ FERNANDO OLIVEIRA BARRICHELOFERNANDO MARSELLA CHACON RUIZ LUIZ MARCELO ALVES DE MORAESIVO LUIZ DE SÁ FREIRE VIEITAS JUNIOR MANOEL ANTONIO GRANADOJOÃO JACÓ HAZARABEDIAN MARCELO BOOCKJOSÉ ROBERTO HAYM MARCELO LUIS ORTICELLI LUÍS OTAVIO MATIAS MARCO ANTONIO ANTUNESOSVALDO DO NASCIMENTO MARCO ANTONIO SUDANORICARDO BALDIN MARCOS ANTÔNIO VAZ DE MAGALHÃES SANDRA NUNES DA CUNHA BOTEGUIM MARCOS AUGUSTO CAETANO DA SILVA FILHO

MARCOS BRAGA DAINESIDirectors MARCOS SILVA MASSUKADO

ADRIANO BRITO DA COSTA LIMA MARCOS VANDERLEI BELINI FERREIRA ALMIR VIGNOTO MARIO LUIZ AMABILE (*)ANDRÉ SAPOZNIK MAURÍCIO FERREIRA DE SOUZA ANDRÉA MATTEUCCI PINOTTI CORDEIRO MAURO MORELLIANTONIO CARLOS AZZI JÚNIOR NATALÍSIO DE ALMEIDA JÚNIORANTONIO CARLOS RICHECKI RIBEIRO OLIVIO MORI JÚNIOR ANTONIO SIVALDI ROBERTI FILHO OSMAR MARCHINIARNALDO PEREIRA PINTO OSVALDO JOSÉ DAL FABBROAURÉLIO JOSÉ DA SILVA PORTELLA PAULO EIKIEVICIUS CORCHAKICARLOS AUGUSTO DE OLIVEIRA PAULO MEIRELLES DE OLIVEIRA SANTOSCARLOS EDUARDO DE CASTRO PEDRO PAULO DE ALMEIDA CARNEIRO CUNHA CARLOS EDUARDO DE SOUZA LARA PLÍNIO CARDOSO DA COSTA PATRÃO CARLOS EDUARDO MACCARIELLO (*) RENATA HELENA DE OLIVEIRA TUBINICARLOS EDUARDO MONICO RENÊ MARCELO GONÇALVES CARLOS HENRIQUE DONEGÁ AIDAR RICARDO LIMA SOARESCARLOS HENRIQUE ZANVETTOR RICARDO ORLANDOCECÍLIA MARIA ARELLANO MISZPUTEN RICARDO RIBEIRO MANDACARU GUERRACESAR PADOVAN RICARDO TERENZI NEUENSCHWANDERCÍCERO MARCUS DE ARAÚJO ROBERTO LAMY CLÁUDIO CESAR SANCHES ROBERTO MASSARU NISHIKAWA CLAUDIO JOSÉ COUTINHO ARROMATTE ROGERIO CARVALHO BRAGACOSMO FALCO ROGÉRIO PAULO CALDERÓN PERES CRISTIANE MAGALHÃES TEIXEIRA PORTELLA ROMILDO GONÇALVES VALENTEDANIEL LUIZ GLEIZER (*) ROONEY SILVAEDUARDO ALMEIDA PRADO SERGIO GUILLINET FAJERMAN (*)EDUARDO HIROYUKI MIYAKI (*) SERGIO SOUZA FERNANDES JÚNIOR ERNESTO ANTUNES DE CARVALHO VILMAR LIMA CARREIRO (*)FERNANDO DELLA TORRE CHAGASFERNANDO JOSÉ COSTA TELES

(*) Elected at the ASM of April 30, 2010 and the ESM of May 28, 2010 and sworn in 08/02/2010.

467,678,366 418,682,888

11,187,736 8,545,819 146,625,448 156,851,382

Money market 102,996,906 111,808,050

Money market - Assets Guaranteeing Technical Provisions – SUSEP (Note 10b) 3,431,152 2,216,113

Interbank deposits 40,197,390 42,827,219

84,223,099 78,075,844

Own portfolio 14,540,286 24,910,100

Subject to repurchase commitments 14,939,118 689,204

Pledged in guarantee 3,031,932 5,591,708

Deposited with the Central Bank 3,047,771 3,541,718

Derivative financial instruments 2,630,795 4,560,110

Assets guaranteeing technical provisions - PGBL/VGBL fund quotas (Note 10b) 41,436,196 34,475,799

Assets guaranteeing technical provisions - other securities (Note 10b) 4,597,001 4,307,205 60,150,654 15,104,680

Pending settlement 3,491,285 3,003,162

Central Bank deposits 56,570,007 12,026,182

National Housing System (SFH) 9,525 11,025

Correspondents 79,837 64,311

39,612 41,540

117,751,645 107,907,176

Operations with credit granting characteristics (Note 4e) 128,862,055 118,637,239

(Allowance for loan losses) (Note 4f) (11,110,410) (10,730,063)

45,145,267 49,467,690

Foreign exchange portfolio (Note 8) 10,601,937 21,868,767

Income receivable 746,824 634,097

Transactions with credit card issuers 8,984,815 7,441,484

Receivables from insurance and reinsurance operations 3,817,727 3,645,776

Negotiation and intermediation of securities 1,579,140 1,215,984

Sundry (Note 12a) 19,414,824 14,661,582

2,554,905 2,688,757 Assets held for sale 277,465 410,299 (Valuation allowance) (86,244) (115,257) Unearned premiums of reinsurance 571,922 732,842 Prepaid expenses (Note 12b) 1,791,762 1,660,873

141,721,826 145,300,620

28,297,030 33,418,506 Money market 3,151,354 2,234,583

Money market - Assets Guaranteeing Technical Provisions – SUSEP (Note 10b) - 163,818

Interbank deposits 25,145,676 31,020,105 20,964,462 24,499,024

Own portfolio 9,190,274 11,876,056 Subject to repurchase commitments 2,651,133 1,779,303

Pledged in guarantee 1,804,824 2,019,856 Deposited with the Central Bank 553,172 2,694,294 Derivative financial instruments 2,974,977 2,031,289

Assets guaranteeing technical provisions - other securities (Note 10b) 3,790,082 4,098,226 543,896 554,023

68,617,815 54,890,716 Operations with credit granting characteristics (Note 4e) 76,278,701 62,551,164 (Allowance for loan losses) (Note 4f) (7,660,886) (7,660,448)

22,066,886 29,876,534 Foreign exchange portfolio (Note 8) 349,113 2,165,151 Sundry (Note 12a) 21,717,773 27,711,383

1,231,737 2,061,817 9,547,837 9,798,393 1,985,943 2,109,961

Investments in affiliates 978,149 1,227,807 Other investments 1,182,502 1,061,369 (Allowance for loan losses) (174,708) (179,215)

4,243,722 3,969,465 Real estate in use 4,228,043 4,267,516 Other fixed assets 6,215,573 6,589,626 (Accumulated depreciation) (6,199,894) (6,887,677)

4,969 7,880 Leased assets 18,553 18,553 (Accumulated depreciation) (13,584) (10,673)

INTANGIBLE ASSETS (Note 4k and 14b) 3,313,203 3,711,087 Acquisition of rights to credit payroll 2,440,055 2,476,829 Other intangible assets 2,623,872 2,329,178 (Accumulated amortization) (1,750,724) (1,094,920)

618,948,029 573,781,901

06/30/2010 06/30/2009

CASH AND CASH EQUIVALENTS

CURRENT ASSETS

ASSETS

INTERBANK INVESTMENTS (Notes 4b and 5)

INTERBRANCH ACCOUNTS

OTHER RECEIVABLES

ITAÚ UNIBANCO S.A.Consolidated Balance Sheet (Note 2a)(In thousands of reais)

LOAN, LEASE AND OTHER CREDIT OPERATIONS (Note 7)

SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (No tes 4c, 4d and 6)

LONG-TERM RECEIVABLES

INTERBANK INVESTMENTS (Notes 4b and 5)

SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (No tes 4c, 4d and 6)

INTERBANK ACCOUNTS - National Housing System (SFH)

OTHER ASSETS (Note 4g)

INTERBANK ACCOUNTS

TOTAL ASSETS

LOAN, LEASE AND OTHER CREDIT OPERATIONS (Note 7)

OTHER RECEIVABLES

OTHER ASSETS - Prepaid expenses (Note 4g and 12b)

INVESTMENTS (Notes 4h and 14a l)

FIXED ASSETS (Notes 4i and 14b)

PERMANENT ASSETS

OPERATING LEASE ASSETS (Note 4j)

302,316,043 299,743,958

123,783,356 116,113,501

Demand deposits 21,377,573 20,309,706

Savings deposits 50,996,902 40,045,648

Interbank deposits 14,829,754 24,663,546

Time deposits 35,503,873 30,161,461

Other deposits 1,075,254 933,140

82,660,305 81,619,329

Own portfolio 29,766,106 17,232,927

Third-party portfolio 43,794,880 58,931,043

Free portfolio 9,099,319 5,455,359

8,614,455 9,377,845

Real estate, mortgage, credit and similar notes 7,175,561 7,348,476

Debentures 508,233 92,422

Foreign borrowings through securities 930,661 1,936,947

4,725,994 3,698,916

Pending settlement 3,157,253 2,639,540

Correspondents 1,568,741 1,059,376

2,062,319 1,577,942

Third-party funds in transit 2,036,804 1,552,407

Internal transfer of funds 25,515 25,535

7,744,612 9,207,044

Borrowings 2,900,660 4,667,087

Onlending 4,843,952 4,539,957

2,154,408 4,654,969

10,321,421 8,812,839

60,249,173 64,681,573

Collection and payment of taxes and contributions 3,729,650 3,178,776

Foreign exchange portfolio (Note 8) 10,872,498 21,951,001

Social and statutory 1,606,726 1,140,096

Tax and social security contributions (Notes 4n, 4o and 13c) 7,585,371 6,118,868

Negotiation and intermediation of securities 2,248,947 1,501,659

Credit card operations 25,271,352 19,768,832

Securitization of foreign payment orders (Note 9a) - 139,960

Subordinated debt (Note 9d) 34,749 1,181,366

Sundry (Note 12c) 8,899,880 9,701,015

271,759,515 235,983,359

79,155,150 83,346,594

Interbank deposits 14,916,875 7,929,799

Time deposits 64,238,275 75,416,795

60,487,846 44,280,289

Own portfolio 52,259,840 42,790,287

Third-party portfolio 164,309 -

Free portfolio 8,063,697 1,490,002

27,737,485 12,170,328

Real estate, mortgage, credit and similar notes 190,842 751,339

Debentures 23,427,623 8,852,968

Foreign borrowings through securities 4,119,020 2,566,021

12,059,279 11,546,083 Borrowings 1,522,514 2,732,812

Onlending 10,536,765 8,813,271

2,778,823 1,962,188

45,672,699 39,227,093

43,868,233 43,450,784

Foreign exchange portfolio (Note 8) 351,820 2,159,789

Tax and social security contributions (Notes 4n, 4o and 13c) 11,079,692 13,363,849

Credit card operations 13,623 -

Securitization of foreign payment orders (Note 9a) - 557,501 Subordinated debt (Note 9d) 26,280,188 21,171,247

Sundry (Note 12c) 6,142,910 6,198,398

133,181 169,112

7,676,503 6,143,136

37,062,787 31,742,336

39,676,320 39,676,320

704,633 792,134

8,126 8,565

103,919 4,064

(3,430,211) (8,738,747)

618,948,029 573,781,901

06/30/2009

The accompanying notes are an integral part of these financial statements.

DEPOSITS (Notes 4b and 9a)

DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS (Notes 4b and 9a)

Capital reserves

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

TECHNICAL PROVISIONS FOR INSURANCE, PENSION PLAN AN D CAPITALIZATION (Notes 4m ll and 10a)

DEFERRED INCOME (Note 4p)

MINORITY INTEREST IN SUBSIDIARIES (Note 15e)

Capital

Asset valuation adjustment (Notes 4c and 6)

DEPOSITS (Notes 4b and 9a)

LONG-TERM LIABILITIES

TECHNICAL PROVISIONS FOR INSURANCE, PENSION PLAN AN D CAPITALIZATION (Notes 4m 1I and 10a)

OTHER LIABILITIES

DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 6b)

DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS (Notes 4b and 9a)

FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES (N otes 4b and 9b)

INTERBANK ACCOUNTS

STOCKHOLDERS’ EQUITY (Note 15)

06/30/2010LIABILITIES

ITAÚ UNIBANCO S.A. Consolidated Balance Sheet (Note 2a) (In thousands of reais)

CURRENT LIABILITIES

INTERBRANCH ACCOUNTS

BORROWINGS AND ONLENDING (Notes 4b and 9c)

Accumulated deficit

FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES (N otes 4b and 9b)

BORROWINGS AND ONLENDING (Notes 4b and 9c)

DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 6b)

OTHER LIABILITIES

Revaluation reserves

35,630,505 38,898,926 22,278,543 21,687,039 9,573,213 14,355,884 1,768,115 2,333,836

770,503 182,142 1,240,131 340,025

(16,717,246) (18,348,409) (14,818,102) (15,820,489)

(1,525,468) (2,073,690) (373,676) (454,230)

18,913,259 20,550,517 (5,784,360) (7,238,057) (7,472,036) (8,094,496) 1,687,676 856,439

13,128,899 13,312,460 (4,981,828) (5,255,179) 6,387,401 5,519,450 1,529,321 1,318,838 1,354,956 1,111,943

(5,316,527) (5,286,413) (6,006,410) (5,398,593) (1,839,557) (1,818,293)

280,554 151,901 662,877 1,274,752

(2,034,443) (2,128,764) 8,147,071 8,057,281

11,886 172,902 8,158,957 8,230,183

(2,413,312) (3,839,757) (2,621,134) (3,708,776)

207,822 (130,981) (75,226) (69,287)

(2,008,578) 2,053,372

3,661,841 6,374,511

4,095,427,813 4,095,427,8130.89 1.56 9.05 7.75

73,828 (3,928,268) 3,735,669 2,446,243

0.91 0.60 NET INCOME PER SHARE - R$

BOOK VALUE PER SHARE - R$

INCOME TAX AND SOCIAL CONTRIBUTION (Notes 4o and 13 a I)Due on operations for the period

NET INCOME

NUMBER OF SHARES (Note 15a)

MINORITY INTEREST IN SUBSIDIARIES (Note 15e)

Related to temporary differences

INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING

NET INCOME PER SHARE - R$

Other operating revenues (Note 12h)Other operating expenses (Note 12i)

OPERATING INCOMENON-OPERATING INCOME (Note 12j)

Money market

01/01 to 06/30/2009

INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSESRESULT OF LOAN LOSSES

Loan, lease and other credit operationsINCOME FROM FINANCIAL OPERATIONS

01/01 to 06/30/2010

Securities and derivative financial instrumentsFinancial income from insurance, pension plan and capitalization operations (Note 10c)

OTHER OPERATING REVENUES (EXPENSES)Banking service fees (Note 12d)

Result from insurance, pension plan and capitalization operations (Note 10c)

ITAÚ UNIBANCO S.A.Consolidated Statement of Income (Note 2a)(In thousands of reais)

Foreign exchange operationsCompulsory deposits

EXPENSES ON FINANCIAL OPERATIONS

Financial expenses on technical provisions for pension plan and capitalization (Note 10c)Borrowings and onlending

Income from recovery of credits written off as loss (Note 7e)GROSS INCOME FROM FINANCIAL OPERATIONS

Expenses for allowance for loan losses (Note 7d)

Income from bank charges (Note 12e)

The accompanying notes are an integral part of these financial statements.

EXCLUSION OF NONRECURRING EFFECTS (Note 20j)NET INCOME WITHOUT NONRECURRING EFFECTS

Other administrative expenses (Note 12g)Tax expenses (Note 4o and 13a II)Equity in earnings of affiliates (Note 14a lI)

Personnel expenses (Note 12f)

PROFIT SHARING – Management members - Statutory – L aw No. 6,404 of 12/15/1976

Capital Capital reserves Revaluation

reserves Revenue reserves

Asset valuation adjustment

Retained earnings (accumulated deficit)

Total

40,175,000 800,540 8,738 - (403,202) (1,167,800) 39,413,276

(498,680) (8,704) - 179,049 (2,679) - (331,014) - 19 - - - - 19

- - (173) - - 173 -

Granting of stock options recognized by subsidiaries - 279 - - - 279

- - - 27,464 409,945 - 437,409

- - - - - 1,662,835 1,662,835

Legal reserve - - - 83,142 - (83,142) -

Statutory reserves - - - 17,143 - (17,143) -

Dividends - - - - - (394,923) (394,923)

39,676,320 792,134 8,565 306,798 4,064 - 40,787,881

(498,680) (8,406) (173) 306,798 407,266 1,167,800 1,374,605

39,676,320 792,823 8,299 1,533,885 76,628 - 42,087,955

- - (173) - - 173 -

- (103) - - - - (103)

- (88,087) - 84,152 3,935 - -

- - - - 23,356 - 23,356

- - - (15,153) - - (15,153)

- - - (49,145) - - (49,145)

- - - - - 2,652,557 2,652,557

Legal reserve - - - 132,628 - (132,628) -

Statutory reserves - - - 1,890,120 - (1,890,120) - Dividends - - - - - (629,982) (629,982)

39,676,320 704,633 8,126 3,576,487 103,919 - 44,069,485

- (88,190) (173) 2,042,602 27,291 - 1,981,530

The accompanying notes are an integral part of these financial statements.

Net Income

Appropriations:

BALANCES AT 06/30/2010

CHANGES IN THE PERIOD

Transfer of reserves – Granting of options recognized and other

Change in adjustment to market value

Dividends paid - Executive Board’s Meeting of 27/05/2010

Additional dividends - Year 2009 - ESM of 04/30/2010

Realization of revaluation reserve

Granting of stock options recognized by subsidiaries

BALANCES AT 01/01/2010

Realization of revaluation reserve

BALANCES AT 01//01/2009

Corporate restructuring - ESM of 02/28/2009 Reserves from donations of chattels and real estate properties

Change in adjustment to market value

Net Income

CHANGES IN THE PERIOD

BALANCES AT 06/30/2009

Appropriations:

ITAÚ UNIBANCO S.A

(In thousands of reais)Statement of Changes in Stockholders’ Equity (Note 15)

01/01 to 06/30/2010

01/01 to 06/30/2009

15,994,848 16,772,301 3,661,841 6,374,511

12,333,007 10,397,790Adjustment to market value of securities and derivative financial instruments (assets/liabilities) 29,428 (2,214,444)Effects of changes in exchange rates on cash and cash equivalents 41,018 1,881,044Allowance for loan losses 7,472,036 8,094,496Results from operations with subordinated debt 1,154,075 630,709Results from securitization of foreign payment orders - (203,124)Financial expenses on technical provisions for pension plan and capitalization 1,525,468 2,073,690Depreciation and amortization 1,056,161 1,068,598Adjustment to legal liabilities - tax and social security 68,117 1,383,137Adjustment to provision for contingent liabilities 737,989 (371,795)Deferred taxes (207,822) 130,981Equity in earnings of affiliates (280,554) (151,901)Income from available-for-sale securities (1,022,141) 779,189Income from held-to-maturity securities (136,874) 392,282Amortization of goodwill on investments (Note 12h) - (867,610)(Income) loss from sale of investments (227,590) (380,985)Minority interest (Note 15e) 2,008,578 (2,053,372)Other 115,118 206,895

(16,124,689) (11,202,761) 11,615,415 (11,630,333) (7,013,494) 7,414,403

(43,259,492) 3,693,869 1,079,992 (2,238,338)

(23,713,911) 2,383,841 1,284,786 400,741

530,172 (164,371) 7,245,899 (4,500,345)

21,131,221 (6,588,438) 9,744,095 4,938,022 1,957,733 (5,492,276) (149,689) (1,457,858)

- (2,928,148)(Decrease) increase in technical provisions for insurance, pension plan and capitalization 1,654,865 2,551,809

3,069,587 3,834,821(Decrease) increase in deferred income (3,002) (16,784)

(1,298,866) (1,403,376) (129,841) 5,569,540

Interest on capital / dividends received from affiliated companies 53,412 49,716Funds received from sale of available-for-sale securities 7,208,529 7,626,371Funds received from redemption of held-to-maturity securities 396 197Disposal of assets not for own use 101,964 113,078Disposal of investments 246,109 392,415Disposal of investments in Banco Único net of assets and liabilities transferred - 796,367

(77,381) (129,535)Sale of fixed assets 37,679 36,293Purchase of available-for-sale securities (3,546,144) (5,003,288)Purchase of held-to-maturity securities (467,647) -Purchase of minority interest in Itaú XL Seguros Corporativos S. A. (157,299) -Net cash and cash equivalents of assets and liabilities arising from the purchase of Redecard and other - (485,994)Purchase of investments (84,829) (2,449)Purchase of fixed assets (686,930) (470,948)Purchase of intangible assets (130,250) (222,625)

2,497,609 2,699,598

(Increase) decrease in subordinated debt 3,258,598 (594,221)Change in minority interest (640,110) (6,385,859)Dividends paid (2,285,879) (245,726)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 332,609 (7,225,806)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT S 2,700,377 1,043,332

67,868,818 56,414,221Effects of changes in exchange rates on cash and cash equivalents (41,018) (1,881,044)

70,528,177 55,576,509

Payment of income tax and social contribution

Payment of income tax and social contribution from sale of investments

NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIE S

Cash and cash equivalents at the beginning of the period

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

(Increase) decrease in interbank investments

ADJUSTED NET INCOME

Adjustments to net income:

(Decrease) increase in other liabilities

(Increase) decrease in other receivables and other assets

(Decrease) increase in securitization of foreign payment orders

(Decrease) increase in deposits received under securities repurchase agreements(Decrease) increase in funds for issuance of securities(Decrease) increase in borrowings and onlending(Decrease) increase in credit card operations

ITAÚ UNIBANCO S.A.

Consolidated Statement of Cash Flows

(In thousands of reais)

The accompanying notes are an integral part of these financial statements.

Cash and cash equivalents at the end of the period (Note 4a)

Net Income

(Increase) decrease in securities and derivative financial instruments (assets/liabilities)

(Increase) decrease in foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)(Decrease) increase in deposits

(Increase) decrease in compulsory deposits with the Central Bank of Brazil(Increase) decrease in interbank and interbranch accounts (assets/liabilities)(Increase) decrease in loan, lease and other credit operations

CHANGE IN ASSETS AND LIABILITIES

ITAÚ UNIBANCO S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FROM JANUARY 1 TO JUNE 30, 2010 AND 2009

(In thousands of Reais)

NOTE 1 - OPERATIONS

Itaú Unibanco S.A. (ITAU UNIBANCO) is a publicly-held company which, together with its subsidiary and affiliated companies, operates in Brazil and abroad, with all types of banking activities, through its commercial, investment, consumer credit, real estate loan, finance and investment credit, and lease portfolios, including foreign exchange operations, and other complementing activities, with emphasis on Insurance, Private Pension Plans, Capitalization, Securities Brokerage and Administration of Credit Cards, Consortia, Investment Funds and Managed Portfolios.

NOTE 2 – PRESENTATION OF THE FINANCIAL STATEMENTS a) Presentation of the Financial Statements

The financial statements of ITAÚ UNIBANCO and its subsidiaries (ITAÚ UNIBANCO CONSOLIDATED) have been prepared in accordance with accounting principles established by the Brazilian Corporate Law, including the amendments produced by Laws No. 11,638, of December 28, 2007, and No. 11,941 of May 27, 2009, in conformity, when applicable, with the instructions issued by the Central Bank of Brazil (BACEN), the National Monetary Council (CMN), the Superintendency of Private Insurance (SUSEP) and the National Council of Private Insurance (CNSP), which include the use of estimates necessary to calculate accounting provisions. On May 12, 2010 SUSEP approved the contract signed on November 12, 2009 related to the acquisition by ITAÚ UNIBANCO HOLDING of a minority interest in the subsidiary company Itaú XL Seguros Corporativos S.A. for the amount of R$ 157,299, giving rise to a goodwill of R$ 24,700.

In order to enable the proper analysis of net income, the heading “Net income without nonrecurring effects” is presented below the Consolidated Statement of Income, and this effect is highlighted in a heading called “Exclusion of nonrecurring effects” (Note 20j). As set forth in the sole paragraph of article 7 of BACEN Circular No. 3,068, of November 8, 2001, securities classified as trading securities (Note 4c) are presented in the Balance Sheet under Current Assets regardless of their maturity dates. Lease Operations are presented, at present value, in the Balance Sheet, and the related income and expenses, which represent the financial result of these operations, are presented, grouped together, under loan, lease and other credit operations in the Statement of Income. Advances on exchange contracts are reclassified from Other Liabilities – Foreign Exchange Portfolio. The foreign exchange result is presented on an adjusted basis, with the reclassification of expenses and income, in order to represent exclusively the impact of variations and differences of rates on the balance sheet accounts denominated in foreign currencies.

b) Convergence into international accounting standa rds

The CMN Resolution No. 3,786, of September 24, 2009, and BACEN Circular No. 3,472, of October 23, 2009, established that from December 31, 2010 the financial institutions shall prepare and annually report their consolidated financial statements adopting the international financial reporting standards according to the pronouncements issued by the International Accounting Standard Board (IASB), translated into the Portuguese language by a Brazilian company registered with the International Accounting Standards Committee Foundation (IASC Foundation). The accounting pronouncements issued by the Accounting Pronouncements Committee (CPC) and the respective international standards of IASB that will be adopted in the consolidated financial statements until the end of 2010 and may impact the stockholders’ equity and/or results are as follows:

• CPC 2 (IAS 21) – Effects on changes in foreign exchange rates and conversion of financial statements: Effect on results from January 1 to June 30, 2010 (without effects on stockholders’ equity) for allocation of foreign exchange variation in the stockholders’ equity related to controlled companies with functional currency other than Real, basically represented by the Itaú Europa, Chile, Argentina, Uruguay and Paraguay units (Note 18).

• CPC 11 (IFRS 4) – Insurance contracts: Management does not expect significant effects; • CPC 15 (IFRS 3) – Business combinations: in the period from January 1 to June 30, 2010 there was not

any transaction that could exert significant effects; • CPC 24 (IAS 10) – Subsequent events: Dividends and interest on capital declared after the accounting

period to which the financial statements refer, if these are above the minimum mandatory dividend, they shall be reversed with effects on stockholders’ equity (Note 15b);

• CPC 32 (IAS 12) – Taxes on Income: Recognition of a credit in the stockholders’ equity of the opening

balance sheet of an amount of deferred tax assets not recorded according to Note 13b IV;

• CPC 33 (IAS 19) – Employee benefits: recognition of a credit in the stockholders’ equity of opening balance sheet of the surplus of benefit plans according to Note 17c; and

• CPC 38 (IAS 39) – Financial Instruments: Recognition and Measurement – Loss on recoverable amount

for not receiving financial assets: Review of the procedures adopted for setting up the Allowance for Loan Losses. Management does not expect an amount above that recorded in the allowance.

The other pronouncements shall basically impact the disclosure of information. c) Consolidation

As set forth in paragraph 1, article 2, of BACEN Circular No. 2,804, of February 11, 1998, the financial statements of ITAÚ UNIBANCO CONSOLIDATED comprise the consolidation of its foreign branches and subsidiaries. Intercompany transactions and balances and results have been eliminated on consolidation. The investments held by consolidated companies in Exclusive Investment Funds are consolidated. The investments in these fund portfolios are classified by type of transaction and were distributed by type of security, in the same categories in which these securities had been originally allocated. The effects of the Foreign Exchange Variation on investments abroad are classified in the heading Securities and Derivative Financial Instruments in the Statement of Income, including the comparative figures. The difference in Net Income and Stockholders’ Equity between ITAÚ UNIBANCO and ITAÚ UNIBANCO CONSOLIDATED (Note 15d) results from the elimination of unrealized profits arising from transactions between the parent company and consolidated companies, and from the adoption of different criteria for the amortization of goodwill originated on purchase of investments, net of the respective deferred tax assets: In ITAÚ UNIBANCO, the goodwill recorded in subsidiaries, mainly originated from the ITAÚ UNIBANCO merger, is being amortized based on the expected future profitability and appraisal reports or upon realization of the investment, according to the rules and guidance from CMN and BACEN. In ITAÚ UNIBANCO CONSOLIDATED, this goodwill was fully amortized in the periods when these investments were made, in order to: a) permit better comparability with previous periods’ consolidated financial statements; and b) permit measuring Net Income and Stockholders’ Equity based on conservative criteria. From January 1, 2010, the goodwill originated from the purchase of investments is no longer fully amortized in the consolidated financial statements, for purposes of comparability of the current accounting practices with the international financial reporting standards.

06/30/2010 06/30/2009

Afinco Americas Madeira, SGPS, Sociedade Unipessoal, LDA Portugal 100.00 100.00

Banco Dibens S.A. Brazil 100.00 100.00

Banco Fiat S.A. Brazil 97.95 97.98

Banco Itaú Argentina S.A. Brazil 99.00 99.00

Banco Itaú Europa Luxembourg S.A. Luxembourg 99.99 99.98

Banco Itaú Europa S.A. Portugal 99.99 99.99

Banco ItauBank S.A. Brazil 100.00 100.00

Banco Itaucard S.A. (1) Brazil 97.95 97.98

Banco Itaucred Financiamentos S.A. Brazil 98.64 98.66

Banco Itauleasing S.A. Brazil 99.54 99.54

BIU Participações S.A. (2) Brazil 66.16 66.15

Cia. Itaú de Capitalização Brazil 96.84 96.77

Dibens Leasing S.A. - Arrendamento Mercantil Brazil 100.00 100.00

FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento (3) Brazil 48.98 48.99

Fiat Administradora de Consórcios Ltda. Brazil 97.95 97.98

Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (4) Brazil 50.00 48.99

Hipercard Banco Múltiplo S.A. Brazil 96.54 97.98

Itaú Administradora de Consórcios Ltda. Brazil 99.99 99.99

Itaú Corretora de Valores S.A. (1) Brazil 96.42 96.42

Itaú Seguros S.A. Brazil 51.24 50.18

Itaú Vida e Previdência S.A. Brazil 93.92 93.78

Itaú XL Seguros Corporativos S.A. (Note 2a) Brazil 51.24 25.09

Itaúsa Export S.A. Brazil 100.00 100.00

Orbitall Serviços e Processamento de Informações Comerciais S.A. Brazil 98.16 98.19

AGF Brasil Seguros S.A. (5) Brazil 21.87 -

Redecard S.A. Brazil 50.00 50.00

Unibanco - União de Bancos Brasileiros S.A. Brazil 100.00 100.00

Unibanco Cayman Bank Ltd. Cayman Islands 100.00 100.00

Unibanco Participações Societárias S.A. Brazil 51.00 51.00

(5) Company controlled by Porto Seguro Itaú Unibanco Participações S.A. proportionally included in consolidation from December 31, 2009.

(4) - Companies with shared control, fully included in consolidation, as authorized by CVM, in view of the business management by ITAÚ UNIBANCO;

(3) Companies with shared control included proportionally in consolidation;

The consolidated financial statements comprise ITAÚ UNIBANCO and its direct and indirect subsidiaries, among which wehighlight:

(2) Fully consolidated company from this year on;

Interest %

(1) Percentage of equity share in capital represented by Common Shares. The Preferred Shares entitle their stockholders to the distribution of profits anddividends;

Incorporation country

Financial system

consolidated (1)Economic-financial

consolidated (2)69,520,662 71,548,087

15.7% 15.7%Tier I 12.2% 12.3%Tier II 3.5% 3.4%

39.0% 16.0%7,681,066 24,291,705

(1)(2)

(3)

(4)

NOTE 3 – REQUIREMENTS OF CAPITAL AND FIXED ASSET LI MITS

a) Basel and Fixed Asset Ratios

The CMN, through Resolution 3,444, of February 28, 2007, determined the Referential Equity (PR) for purposes of calculatingoperating limits, as being the sum of both Tier I and Tier II levels, following the international experience, each of them comprisingitems from stockholders' equity, as well as subordinated debts and hybrid capital and debt.

Referential equity (3)Basel ratio

We present below the main indicators at June 30, 2010 of ITAÚ UNIBANCO HOLDING (ITAÚ UNIBANCO’scontrolling company), obtained from the non-consolidated financial statements (the initial basis for determinationof the Financial System Consolidated amounts and Economic-Financial Consolidated amounts), according topresent regulation, as follows:

The difference between the fixed asset ratio of the financial system consolidated and the economic-financial consolidated arises fromthe inclusion of non-financial subsidiary companies, which provide high liquidity and low level of fixed asset ratio, with a consequentdecrease in the fixed asset ratio of the economic-financial consolidated amounts and enable, when necessary, the distribution ofresources to the financial companies.

Fixed assets ratio (4)Excess capital in relation to fixed assets

Consolidated financial statements including only financial companies;Consolidated financial statements comprising all subsidiary companies, including insurance, pension and capitalization companiesand those in which control is based on the sum of ownership interests by an institution, regardless of the percentage, with those of itsmanagers, owners and related companies, as well as those directly or indirectly acquired through investment funds.

NOTE 4 – SUMMARY OF THE MAIN ACCOUNTING PRACTICES a) Cash and Cash Equivalents – For purposes of Consolidated Statement of Cash Flows, it includes cash and

current accounts in banks (considered in the heading cash and cash equivalents), interbank deposits and securities purchased under agreements to resell - Funded position that have original maturities of up to 90 days or less.

b) Interbank investments, remunerated restricted cr edits – Brazilian Central Bank, remunerated

deposits, deposits received under securities repurc hase agreements, funds from acceptance and issuance of securities, borrowings and onlendings a nd other receivables and payables - Transactions subject to monetary correction and foreign exchange variation and operations with fixed charges are recorded at present value, net of the transaction costs incurred, calculated “pro rata die” based on the effective rate of transactions, according to CVM Resolution No. 556 of November 12, 2008.

c) Securities - Recorded at cost of acquisition restated by the index and/or effective interest rate and

presented in the Balance Sheet, according to BACEN Circular No. 3,068, of November 8, 2001. Securities are classified into the following categories:

• Trading securities – acquired to be actively and frequently traded, and adjusted to market value, with a

contra-entry to the results for the period; • Available-for-sale securities – securities that can be negotiated but are not acquired to be actively and

frequently traded. They are adjusted to their market value with a contra-entry to an account disclosed in stockholders’ equity;

• Held-to-maturity securities – securities, except for non-redeemable shares, for which the bank has the

financial condition and intends or is required to hold them in the portfolio up to their maturity, are recorded at cost of acquisition, or market value, whenever these are transferred from another category. The securities are adjusted up to their maturity date, not being adjusted to market value.

Gains and losses on available-for-sale securities, when realized, are recognized at the trading date in the statement of income, with a contra-entry to a specific stockholders’ equity account. Decreases in the market value of available-for-sale and held-to-maturity securities below their related costs, resulting from non-temporary reasons, are recorded in results as realized losses.

d) Derivative financial instruments - These are classified on the date of their acquisition, according to management's intention of using them either as a hedge or not, according to BACEN Circular No. 3,082, of January 30, 2002. Transactions involving financial instruments, carried out upon the client's request, for their own account, or which do not comply with hedging criteria (mainly derivatives used to manage the overall risk exposure) are stated at market value, including realized and unrealized gains and losses, which are recorded directly in the statement of income.

The derivatives used for protection against risk exposure or to modify the characteristics of financial assets and liabilities, which have changes in market value are highly associated with those of the items being protected at the beginning and throughout the duration of the contract, and which are found effective to reduce the risk-related to the exposure being protected, are classified as a hedge, in accordance with their nature:

• - Market Value Hedge – Financial assets and liabilities, as well as their related financial instruments, are

accounted for at their market value plus realized and unrealized gains and losses, which are recorded directly in the statement of income;

• - Cash Flow Hedge - The effective amount of the hedge of assets and liabilities, as well as their related

financial instruments, are accounted for at their market value plus realized and unrealized gains and losses, net of tax effects, when applicable, and recorded in a specific account in stockholders’ equity. The ineffective portion of hedge is recorded directly in the statement of income.

e) Loan, lease and other credit operations (Operati ons with credit granting characteristics) - these transactions are recorded at present value and calculated “pro rata die” based on the variation of the contracted index, and are recorded on the accrual basis until the 60th day overdue in financial companies. After the 60th day, income is recognized upon the effective receipt of installments. Credit card operations include receivables arising from purchases made by cardholders. The funds related to these amounts are included in Other Liabilities – Credit Card Operations.

f) Allowance for loan losses - the balance of the allowance for loan losses was recorded based on the credit

risk analysis at an amount considered sufficient to cover loan losses according to the rules determined by CMN Resolution No. 2,682 of December 21, 1999, among which are:

• Provisions are recorded from the date loans are granted, based on the client’s risk rating and on the

periodic quality evaluation of clients and industries, and not only in the event of default; • Based exclusively on delinquency, write-offs of credit operations against loss may be carried out 360

days after the due date of the credit or 540 days for operations that mature after a period of 36 months. Additionally, in this period, other factors related to analysis of the quality of the client/loan may generate write-offs before these periods.

g) Other assets - these assets are mainly comprised by assets held for sale relating to real estates available

for sale, own real estate not in use or received as payment in kind, which are adjusted to market value through the set-up of a provision, according to current regulations; reinsurance unearned premiums (Note 4m I); and prepaid expenses, corresponding to disbursements, the benefit of which will occur in future periods.

h) Investments - In subsidiary and affiliated companies, investments are accounted for under the equity

method. The consolidated financial statements of foreign branches and subsidiaries are adapted to comply with Brazilian accounting practices and converted into Reais. Other investments are recorded at cost, and adjusted to market value by setting up a provision in accordance with current standards.

i) Fixed assets - These assets are stated at cost of acquisition or construction, less accumulated depreciation,

restated up to December 31, 2007, when applicable. For insurance, pension plan and capitalization operations, property and equipment are adjusted to market value supported by appraisal reports. They correspond to rights related to tangible assets intended for maintenance of the company’s operations or exercised for such purposes, including assets arising from transactions that transfer to the company their benefits, risks and controls. The items acquired through Lease contracts are recorded according to CVM Resolution No. 554, of November 12, 2008, as contra-entry to Lease obligations. Depreciation is calculated using the straight-line method, based on monetarily corrected cost, at the following annual rates:

Real estate in use 4 % to 8 % Leasehold improvements From 10% Installations, furniture, equipment and security, transportation and communication systems 10 % to 25 % EDP systems 20 % to 50 %

j) Operating leases – leased assets are stated at cost of acquisition less accumulated depreciation. The

depreciation of leased assets is recognized under the straight-line method, based on their usual useful lives, taking into account that the useful life shall be decreased by 30% should it meet the conditions provided for by the Ordinance No. 113 of February 26, 1988 issued by the Ministry of Finance. Receivables are recorded in lease receivable at the contractual amount, with contra-entry to unearned income accounts. The recognition in income will occur on the due date of the installments.

k) Intangible assets – correspond to rights acquired whose subjects are intangible assets intended for

maintenance in the company or exercised for such purpose, according to CMN Resolution No. 3,642, of November 26, 2008. They are composed of rights acquired to credit payrolls and partnership agreements, amortized over the agreement terms, and software and customer portfolios, amortized over a term varying from five to ten years.

l) Reduction to the recoverable value of assets – a loss is recognized when there are clear evidences that assets are stated at a non-recoverable value. From 2008, this procedure started to be adopted annually at the end of each year.

m) Insurance, pension plan and capitalization opera tions – Insurance premiums, acceptance coinsurance

and selling expenses are accounted for in accordance with the insurance effectiveness term, through the recognition and reversal of the provision for unearned premiums and deferred selling expenses. Interest arising from fractioning of insurance premiums is accounted for as incurred. Revenues from social security contributions, gross revenue from capitalization certificates and respective technical provisions are recognized upon receipt.

I - Credit from operations and other assets related to insurance and reinsurance operations:

• Insurance premiums receivable – Refer to installments of insurance premiums receivable, current and past due, in accordance with insurance policies issued.

• Reinsurance recoverable amounts – Refer to claims paid to the insured party pending recovery from

Reinsurer, installments of unsettled claims and incurred but not reported claims – Reinsurance (IBNR), classified in assets in accordance with the criteria established by CNSP Resolution No. 162, of December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No. 379, of December 19, 2008.

• Reinsurance unearned premiums – recognized to determine the portion of reinsurance unearned

premiums, calculated “pro rata die”, and for risks not issued computed based on estimates, based on the actuarial technical study and in compliance with the criteria established by CNSP Resolution No. 162, of December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No. 379, of December 19, 2008.

II - Technical provisions of insurance, pension pla n and capitalization – provisions are set up according

to the technical notes approved by SUSEP and criteria established by CNSP Resolution No. 162 of December 26, 2006 and the amendments introduced by CNSP Resolution No. 181 of December 19, 2007, and CNSP Resolution No. 195 of December 16, 2008.

II.I - Insurance:

• Provision for unearned premiums – recognized to determine unearned premiums related to the

risk coverage period, calculated pro rata die, and for risks not yet issued, calculated based on estimates, according to an actuarial technical study;

• Provision for premium deficiency – recognized according to the Technical Actuarial Note in case

of insufficient Provision for unearned premiums;

• Provision for unsettled claims – recognized based on claims of loss in an amount sufficient to cover future commitments, awaiting judicial decision, which amounts are determined by court-appointed experts and legal advisors that make assessments based on the insured amounts and technical regulations, taking into consideration the likelihood of unfavorable outcome to the insurance company;

• Provision for claims incurred but not reported (IBNR) – recognized for the estimated amount of

claims occurred for risks assumed in the portfolio but not reported.

II.II - Pension Plan and Individual life with livin g benefits – correspond to liabilities assumed such as retirement plans, disability, pension and annuity.

• Mathematical provisions for benefits to be granted and benefits granted – correspond to

commitments assumed with participants, but for which benefits are not yet due, and to those receiving the benefits, respectively;

• Provision for insufficient contribution – recognized in case of insufficient mathematical provisions;

• Provision for events occurred but not reported (IBNR) – recognized at the estimated amount of events occurred but not reported;

• Provision for financial surplus – recognized by the difference between the contributions adjusted

daily by the Investment Portfolio and the funds guaranteeing them, according to the plan’s regulation;

• Provision for financial variation – recognized according to the methodoloy provided for in the

Technical Actuarial Note in order to guarantee that the financial assets are sufficient to cover mathematical provisions.

II.III- Capitalization:

• Mathematical provision for redemptions – represents capitalization certificates received to be

redeemed;

• Provision for raffle contingencies – recognized according to the methodology provided for in the Technical Actuarial Note to cover the Provision for raffles in the event of insufficient funds.

n) Contingent assets and liabilities and legal liab ilities – Tax and social security: assessed, recognized

and disclosed according to the provisions set forth in CMN Resolution No. 3,535 of January 31, 2008.

I - Contingent assets and liabilities

Refer to potential rights and obligations arising from past events, the occurrence of which is dependent upon future events. • Contingent assets: not recognized, except upon evidence ensuring a high reliability level of realization,

usually represented by claims awarded a final and unappealable judgment and confirmation of the recoverability of the claim through receipt of amounts or offset against another liability.

• Contingent liabilities: basically arise from administrative proceedings and lawsuits, inherent in the

normal course of business, filed by third parties, former employees and governmental bodies, in connection with civil, labor, tax and social security lawsuits and other risks. These contingencies are calculated based on conservative practices, being usually recorded based on the opinion of legal advisors and considering the probability that financial resources shall be required for settling the obligation, the amount of which may be estimated with sufficient certainty. Contingencies are classified either as probable, for which provisions are recognized; possible, which are disclosed but not recognized; or remote, for which recognition or disclosure are not required. Any contingent amounts are measured through the use of models and criteria which allow their adequate measurement, in spite of the uncertainty of their term and amounts.

Escrow deposits are restated in accordance with the current legislation.

Contingencies guaranteed by indemnity clauses in privatization processes and with liquidity are only recognized upon judicial notification with simultaneous recognition of receivables, without any effect on results.

II - Legal liabilities – tax and social security

Represented by amounts payable related to tax liabilities, the legality or constitutionality of which are subject to administrative or judicial defense, recognized at the full amount under discussion.

Liabilities and related escrow deposits are adjusted in accordance with the current legislation.

o)

15.00%10.00%15.00%

0.65%4.00%

up to 5.00% (1)

(2)

ISS

Income tax

As from May 1, 2008, for financial subsidiaries and equivalent companies, the rate was changed from 9% to 15%, as provided for inarticles 17 and 41 of Law No. 11,727, of June 24, 2008. For non-financial and social security subsidiaries, the rate remained 9%.For non-financial subsidiaries that fall into the non-cumulative calculation, the PIS rate is 1.65% and COFINS rate is 7.6%.

COFINS (2)

Taxes - These provisions are calculated according to current legislation at the rates shown below, for effects ofthe related calculation bases.

Additional income taxSocial contribution (1)PIS (2)

The changes introduced by Laws No. 11,638 and No. 11,941 (articles 37 and 38), which modified the criterion for recognizing revenues, costs and expenses, computed to determine the net income for the year, did not produce effects for purposes of determining the taxable income of companies that opt for the Transitory Tax Regime (RTT), so for tax purposes the rules effective on December 31, 2007 were followed. The tax effect arising from the adoption of such rules is recorded, for accounting purposes, in the corresponding deferred assets and liabilities.

p) Deferred income – this refers to unexpired interest received in advance that is recorded in income as

earned, and the negative goodwill on acquisition of investments arising from expected future losses, which has not been absorbed in the consolidation process.

06/30/2009

Up to 365 daysOver 365

daysTotal

Total102,996,906 3,151,354 106,148,260 114,042,633

Funded position 51,794,369 3,151,354 54,945,723 48,903,908 Financed position 42,080,079 - 42,080,079 63,668,874 Short position 9,122,458 - 9,122,458 1,469,851

3,431,152 - 3,431,152 2,379,931 40,197,390 25,145,676 65,343,066 73,847,324

146,625,448 28,297,030 174,922,478 190,269,888 156,851,382 33,418,506 190,269,888 TOTAL - 06/30/2009

Money market - Assets Guaranteeing TechnicalProvisions - SUSEPInterbank depositsTOTAL

NOTE 5 - INTERBANK INVESTMENTS

06/30/2010

Money market

06/30/2009

ResultsStockholders'

equity39,934,030 49,865 287,259 40,271,154 38.2 1,121,032 1,709,145 1,233,443 5,783,508 5,572,208 24,851,818 43,332,283 17,297,713 659 (1,933) 17,296,439 16.4 259,428 1,382,220 359,254 3,053,645 1,779,449 10,462,443 16,321,393

National Treasury Bills 4,567,437 (5,450) (116) 4,561,871 4.3 479,085 - 52,461 1,482,933 1,674,504 872,888 13,903,036 14,042,850 37,357 97,251 14,177,458 13.5 104,639 296,809 25,498 1,227,126 1,938,021 10,585,365 9,722,473

658,616 15,675 (24,234) 650,057 0.6 277,122 16,282 5,543 19,246 23,466 308,398 321,861 3,367,414 1,624 216,291 3,585,329 3.4 758 13,834 790,687 558 156,768 2,622,724 3,061,615

- - - - - - - - - - - 1,905 3,500,959 42,388 18,941 3,562,288 3.4 263,130 135,237 1,428,777 1,279,623 54,303 401,218 3,663,462

- - - - - - - - - - - 256,460 - - - - - - - - - - - 100,782

220,511 3,377 - 223,888 0.2 25,042 56,151 62,945 34,164 - 45,586 302,145 Central Bank 70,427 1,891 - 72,318 0.1 - 39,465 3 29,865 - 2,985 173,003 National Treasury 150,084 1,486 - 151,570 0.1 25,042 16,686 62,942 4,299 - 42,601 129,142

62 1 - 63 - - - 1 - - 62 - 788,674 - (433) 788,241 0.7 168,104 - 179,220 440,917 - - 864,576 447,330 - (6,799) 440,531 0.4 - - - 440,531 - - 374,347

1,300,553 - 25,781 1,326,334 1.3 - - 1,071,445 254,889 - - 952,658 18,206 1 - 18,207 - - 18,093 108 - - 6 76

368,362 - (1) 368,361 0.4 66,268 45,322 58,195 108,368 35,896 54,312 295,340 351,270 38,968 386 390,624 0.4 1,801 15,485 56,853 - 17,902 298,583 498,741

1,403 18 - 1,421 - 34 1 3 754 - 629 4,232 4,588 23 7 4,618 - 1,881 185 7 - 505 2,040 14,105

14,060,193 91,988 159,970 14,312,151 13.6 2,929,457 176,319 439,949 858,844 1,707,808 8,199,774 14,511,925 3,086,304 7,171 69,704 3,163,179 3.0 28,178 21,401 72,500 117,727 522,930 2,400,443 1,453,581 2,909,244 - 535 2,909,779 2.8 425,870 120,733 115,770 451,235 629,869 1,166,302 2,143,244 1,860,970 60,118 (4,523) 1,916,565 1.8 1,916,565 - - - - - 1,533,588 1,347,833 174 543 1,348,550 1.3 791 7,161 174,209 129,019 378,175 659,195 3,181,777

- - - - - - - - - - - 139,462 502,672 24,515 14,371 541,558 0.5 537,746 - - - - 3,812 2,012,651

Fixed income 291,224 109 6,601 297,934 0.3 294,122 - - - - 3,812 1,661,507 Credit rights 24,985 - - 24,985 - 24,985 - - - - - 89,547 Other 186,463 24,406 7,770 218,639 0.2 218,639 - - - - - 261,597

4,241,815 10 79,367 4,321,192 4.1 16,156 24,685 41,202 124,285 154,782 3,960,082 3,912,282 111,355 - (27) 111,328 0.1 4,151 2,339 36,268 36,578 22,052 9,940 135,340

41,436,196 - - 41,436,196 39.4 41,436,196 - - - - - 34,475,799 98,931,378 184,241 466,170 99,581,789 94.7 45,749,815 2,020,701 3,102,169 7,921,975 7,334,319 33,452,810 95,983,469 73,301,816 184,241 - 73,486,057 69.9 44,551,155 1,917,998 1,028,361 3,190,899 5,088,184 17,709,460 64,217,465 22,676,779 - 466,170 23,142,949 22.0 1,194,216 101,131 2,055,360 4,596,998 2,013,794 13,181,450 28,872,993

2,952,783 - - 2,952,783 2.8 4,444 1,572 18,448 134,078 232,341 2,561,900 2,893,011 5,508,293 97,479 - 5,605,772 5.3 598,248 801,597 569,066 661,884 1,042,446 1,932,531 6,591,399

104,439,671 281,720 466,170 105,187,561 100.0 46,348,063 2,822,298 3,671,235 8,583,859 8,376,765 35,385,341 102,574,868 44.1% 2.7% 3.5% 8.2% 8.0% 33.6%

(139,915) (96,084)

(140,610) 14,358

103,919 (4,764,078) (141,146) (28,007) (4,933,231) 100.0 (352,544) (271,490) (485,158) (1,045,216) (933,692) (1,845,131) (6,617,157)

101,447,999 572,548 554,321 102,574,868 100.0 42,735,952 2,257,313 6,422,764 11,306,472 10,114,160 29,738,207 (110,854) (390,244)

(67,021) 17,862

4,064 (5,912,974) (704,183) - (6,617,157) 100.0 (2,370,666) (642,221) (625,729) (1,016,353) (570,606) (1,391,582)

SUBTOTAL - SECURITIES

DERIVATIVE FINANCIAL INSTRUMENTS

Other

Available-for-sale securities Held-to-maturity securities (3) (4)

Trading securities

GOVERNMENT SECURITIES - ABROAD

CORPORATE SECURITIES

Securitized real estate loans

PGBL/VGBL fund quotas (2)

Austria

Deferred taxesAdjustments of securities reclassified in prior years to held-to-maturity securities

(3) Unrecorded positive adjustment to market value in the amount of R$ 530,287 (R$ 322,838 at 06/30/2009).

(4) Management sets forth guidelines to classify securities. The classification of the current portfolio of securities, as well as the securities purchased in the period, is periodically and systematically evaluated based on such guidelines. As set forth in Article 5 of BACEN Circular No. 3,068, of November 8, 2008, the revaluation regarding the classification of securitiescan only be made upon preparation of trial balances for six-month periods. In addition, the transfer from “held-to-maturity” to the other categories can only occur in view of an isolated, unusual, nonrecurring and unexpected reason, which has occurred after the classification date. No reclassifications or changes to the existing guidelines have been made in the period.

ADJUSTMENT TO MARKET VALUE - SECURITIES – STOCKHOLD ERS’ EQUITYDERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES) - 06 /30/2009(1) Includes the amount of R$ 13,552,861 (R$ 17,958,272 at 06/30/2009) of securities pledged in guarantee, of which: Assets Guaranteeing Technical Provisions R$ 5,179,655 (R$ 5,725,383 at 06/30/2009), securities linked to BACEN R$ 3,600,943 (R$ 6,236,012 at 06/30/2009) and securities deposited with the Clearing House for the Custody and FinancialSettlement of Securities R$ 4,772,264 (R$ 5,996,878 at 06/30/2009).

(2) The PGBL and VGBL plans securities portfolios, the ownership and embedded risks of which are the customers’ responsibility, are recorded as securities, as determined by SUSEP, with a contra-entry to liabilities in the Pension Plan Technical Provisions account.

TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMEN TS (ASSETS)

Adjustment of subsidiaries and affiliatesAdjustment to market of accounting hedge

TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMEN TS (ASSETS) - 06/30/2009

DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)

Adjustment to market of accounting hedgeDeferred taxes

Adjustment of subsidiaries and affiliates

ADJUSTMENT TO MARKET VALUE - SECURITIES – STOCKHOLD ERS’ EQUITYAdjustments of securities reclassified in prior years to held-to-maturity securities

See below the composition by Securities and Derivatives type, maturity and portfolio already adjusted to their respective market values.

06/30/2010

Argentina

Brazilian External Debt BondsOther

National Treasury/Securitization

GOVERNMENT SECURITIES - DOMESTIC (1)Financial Treasury Bills

National Treasury Notes

NOTE 6 - SECURITIES AND DERIVATIVE FINANCIAL INSTRU MENTS (ASSETS AND LIABILITIES)

a) Summary per maturity

Cost

Provision for adjustment to market value with impact on: Over 720 daysMarket value 31 - 90 366 - 720% 91 - 1800 - 30 181 - 365

Quotas of Funds

Chile

Portugal

United States

Korea

Russia

Shares

Market value

Debentures Promissory Notes

Mexico

Eurobonds and other Bank Deposit Certificates

Other

DenmarkSpain

Paraguay

h) Derivative financial instruments

The globalization of the markets in recent years has resulted in a high level of sophistication in the financial products used. As a result of this process, there has been an increasing demand for derivative financial instruments to manage market risks, mainly arising from fluctuations in interest and exchange rates, commodities and other asset prices. Accordingly, ITAU UNIBANCO CONSOLIDATED and its subsidiaries operate in the derivative markets for meeting the growing needs of their clients, as well as carrying out their risk management policy. Such policy is based on the use of derivative instruments to minimize the risks resulting from commercial and financial operations. The derivative financial instruments’ business with clients is carried out after the approval of credit limits. The process of limit approval takes into consideration potential stress scenarios. Knowing the client, the sector in which it operates and its risk appetite profile, in addition to providing information on the risks involved in the transaction and the negotiated conditions, ensures transparency in the relationship between the parties and the supply of a product that better meet the needs of the client in view of its operating characteristics. The derivative transactions carried out by ITAÚ UNIBANCO CONSOLIDATED and its subsidiaries with clients are neutralized in order to eliminate market risks. Most derivative contracts traded by the institution with clients in Brazil are swap, forward, option and futures contracts, which are registered at the BM&FBovespa or at the CETIP S.A. - OTC Clearing House (CETIP). Overseas transactions are carried out with futures, forwards, options and swaps with registration mainly in the Chicago, New York and London Exchanges. It should be emphasized that there are over-the-counter operations, but their risks are low as compared to the institutions’ total. Noteworthy is also the fact that there are no structured operations based on subprime assets and all operations are based on risk factors traded at stock exchanges. The main risk factors of the derivatives, assumed at June 30, 2010, were related to the foreign exchange rate, interest rate, commodities, U.S. dollar coupon, Reference Rate coupon, Libor and variable income. The management of these and other market risk factors is supported by sophisticated statistical and deterministic models. Based on this management model, the institution, with the use of transactions involving derivatives, has been able to optimize the risk-return ratios, even under highly volatile situations. Most derivatives included in the institution’s portfolio are traded at stock exchanges. The prices disclosed by stock exchanges are used for these derivatives, except in cases in which the low representativeness of price due to illiquidity of a specific contract is identified. Derivatives typically precified like this are futures contracts. Likewise, there are other instruments whose quotations (fair prices) are directly disclosed by independent institutions and which are precified based on this direct information. A great part of the Brazilian government securities, highly-liquid international (public and private) securities and shares fit into this situation. For derivatives whose prices are not directly disclosed by stock exchanges, fair prices are obtained by pricing models which use market information, deducted based on prices disclosed for higher liquidity assets. Interest and market volatility curves which provide entry data for the models are extracted from those prices. Over-the-counter derivatives, forward contracts and securities without much liquidity are in this situation. The total value of margins pledged in guarantee was R$ 6,229,900 (R$ 15,189,239 at June 30, 2009) and was basically composed of government securities.

Balance sheet account receivable / (received) payable

/ (paid)

Adjustment to market value (in

results / stockholders’

equity)06/30/2010 06/30/2009 06/30/2010 06/30/2010 06/30/2010 06/30/2009

111,604,986 97,658,597 68,097 (18,192) 49,905 34,658 14,292,884 10,249,827 (44,235) 7,949 (36,286) (7,410)

Foreign currency 1,881,315 4,009,504 (5,043) (737) (5,780) (1,973) Interbank market 8,829,732 3,850,093 (5,703) 8,147 2,444 (627) Fixed rate - - - - - (4,683) Floating rate - - - - - (73) Indices 3,435,943 2,242,424 (33,490) 539 (32,951) (54) Securities 143,499 129,220 - - - - Commodities 1,487 18,586 1 - 1 - Other 908 - - - - -

97,312,102 87,408,770 112,332 (26,141) 86,191 42,068 Foreign currency 9,590,771 10,284,564 25,679 (25,414) 265 (7,319) Interbank market 72,020,835 54,689,107 15,017 (16) 15,001 343 Fixed rate - 8,220 - - - (21) Indices 11,493,576 19,037,988 75,208 (612) 74,596 49,160 Securities 7,112 988,383 - - - (173) Commodities 4,193,466 2,400,508 (3,686) (99) (3,785) 78 Other 6,342 - 114 - 114 -

376,270 126,510 502,780 959,356 93,540,011 75,057,631 2,578,926 322,046 2,900,972 3,651,872

Foreign currency 16,902,717 15,229,093 356,847 (28,224) 328,623 555,832 Interbank market 52,125,154 29,146,857 921,544 74,977 996,521 1,336,216 Fixed rate 13,517,292 19,783,566 779,917 148,888 928,805 1,209,475 Floating rate 17 88,492 (13) 1,201 1,188 109 Indices 10,285,521 8,591,122 508,197 124,967 633,164 512,093 Securities 5,854 48,687 2,424 44 2,468 20,176 Commodities 7,400 53,672 - - - - Other 696,056 2,116,142 10,010 193 10,203 17,971

93,163,741 74,099,079 (2,202,656) (195,536) (2,398,192) (2,692,516) Foreign currency 14,177,367 19,562,819 (295,130) (27,543) (322,673) (619,493) Interbank market 25,126,531 23,772,429 (667,593) 47,290 (620,303) (533,045) Fixed rate 42,152,814 19,216,979 (679,582) (98,862) (778,444) (1,004,611) Floating rate 36,606 119,057 194 (1,711) (1,517) (10,627) Indices 11,523,615 9,455,303 (557,484) (114,530) (672,014) (510,398) Securities - 31,165 - - - (14,244) Commodities 12,187 53,672 - - - - Other 134,621 1,887,655 (3,061) (180) (3,241) (98)

494,807,307 502,739,384 (483,595) (148,593) (632,188) (808,454) 143,465,183 162,144,712 399,953 (218,632) 181,321 498,120

Foreign currency 6,027,014 17,240,320 148,276 (98,574) 49,702 329,339 Interbank market 1,336,303 14,248,180 180 (180) - 20,285 Indices 135,594,143 130,410,573 218,974 (106,444) 112,530 130,450 Securities 507,723 241,638 32,523 (13,434) 19,089 18,007 Commodities - 4,001 - - - 39

104,249,252 97,750,344 120,129 (18,755) 101,374 584,652 Foreign currency 2,056,918 4,677,844 36,816 (15,499) 21,317 151,336 Interbank market 66,235 5,736,015 42 (3) 39 31,864 Indices 102,090,680 87,254,386 83,202 (5,620) 77,582 399,489 Securities 35,419 10,548 69 2,367 2,436 1,295 Commodities - 71,551 - - - 668

147,496,504 120,541,618 (744,022) 248,481 (495,541) (405,608) Foreign currency 6,777,722 10,185,015 (312,333) 145,230 (167,103) (213,502) Interbank market 1,513,199 4,756,564 (1,300) 1,273 (27) (14,078) Indices 138,544,265 105,349,062 (395,101) 80,293 (314,808) (171,481) Securities 661,318 250,977 (35,288) 21,685 (13,603) (6,547)

99,596,368 122,302,710 (259,655) (159,687) (419,342) (1,485,618) Foreign currency 5,397,782 14,139,690 (81,569) (135,937) (217,506) (1,049,765) Interbank market 1,692,863 7,707,494 (2,836) 90 (2,746) (36,479) Fixed rate - - (11,833) - (11,833) - Indices 91,573,668 100,137,738 (70,300) 30,625 (39,675) (385,352) Securities 932,055 317,169 (93,117) (54,465) (147,582) (14,022) Commodities - 619 - - - -

1,525,483 2,061,926 507,497 (395) 507,102 20,739 229,288 908,524 231,877 - 231,877 190,735

Interbank market - 717,955 - - - 434 Fixed rate 122,734 134,341 125,446 - 125,446 134,278 Floating rate 106,554 56,023 106,431 - 106,431 56,004 Commodities - 205 - - - 19

- 885 (231,877) - (231,877) (190,319) Fixed rate - - (125,446) - (125,446) (134,278) Floating rate - - (106,431) - (106,431) (56,004) Commodities - 885 - - - (37)

1,296,195 1,152,142 1,296,970 (395) 1,296,575 1,152,243 Fixed rate 526,402 893,431 539,337 - 539,337 893,163 Floating rate 250,445 238,366 250,136 - 250,136 238,752 Indices 178 - 176 (1) 175 - Securities 519,170 20,345 507,321 (394) 506,927 20,328

- 375 (789,473) - (789,473) (1,131,920) Foreign currency - - - - - (5) Interbank market - 375 - - - - Fixed rate - - (539,337) - (539,337) (899,487) Floating rate - - (250,136) - (250,136) (232,428)

Purchase payable

Sales receivable

Purchase commitments - short position

Commitments to sell - short position

Forward contractsPurchase receivable

Swap contractsAsset position

Purchase commitments - long position

Commitments to sell - long position

I- See below the composition of the Derivative Financial Instruments portfolio (assets and liabilities) by type of instrument and reference ratio, stated at their notionalamounts, cost and market value.

Liability position

Option contracts

Sales deliverable

Memorandum Account Notional Amount

Market value

Futures contractsPurchase commitments

Commitments to sell

Balance sheet account receivable

/ (received) payable / (paid)

Adjustment to market value (in

results / stockholders’

equity)06/30/2010 06/30/2009 06/30/2010 06/30/2010 06/30/2010 06/30/2009

2,787,627 3,196,783 (113,330) (7,286) (120,616) (96,004) 441,492 1,094,528 20,680 7,072 27,752 16,616

Foreign currency 33,232 509,048 177 1,654 1,831 9,367 Fixed rate 369,308 585,480 20,471 3,974 24,445 7,249 Securities 17,596 - 2 1,051 1,053 - Other 21,356 - 30 393 423 -

2,346,135 2,102,255 (134,010) (14,358) (148,368) (112,620) Foreign currency - 13,036 (167) (1,595) (1,762) (9,263) Fixed rate 2,316,423 2,089,219 (133,647) (11,408) (145,055) (103,357) Securities 29,712 - (33) (1,096) (1,129) - Other - - (163) (259) (422) -

10,176,003 9,608,527 (52,565) (139) (52,704) 52,859 4,868,203 5,789,207 107,200 (9) 107,191 266,313

Foreign currency 3,995,109 4,709,555 85,518 - 85,518 192,543 Fixed rate 231,311 483,438 12,591 (9) 12,582 70,046 Floating rate 550,358 596,214 7,785 - 7,785 3,724 Indices 82,656 - 1,306 - 1,306 - Other 8,769 - - - - -

5,307,800 3,819,320 (159,765) (130) (159,895) (213,454) Foreign currency 4,718,390 3,173,762 (146,164) (130) (146,294) (196,965) Interbank market 7,207 1,779 (335) - (335) (156) Fixed rate 84,088 153,220 (4,877) - (4,877) (12,651) Floating rate 360,300 390,320 (3,903) - (3,903) (2,380) Indices 137,815 100,239 (4,486) - (4,486) (1,302)

- 65,108 - - - (6,669) - 9,487 - - - 1,648

Foreign currency - 9,487 - - - 1,648 - 55,621 - - - (8,317)

Foreign currency - 55,621 - - - (8,317) - 55,621 - - - (9,955) - 55,621 - - - (9,955)

Foreign currency - 55,621 - - - (9,955) - 1,779,981 - - - (82,755) - 873,635 - - - 12,971

Foreign currency - 505,390 - - - 10,628 Interbank market - 366,578 - - - 2,343 Fixed rate - 1,667 - - - -

- 906,346 - - - (95,726) Foreign currency - 642,485 - - - (82,484) Interbank market - 251,298 - - - (13,233) Fixed rate - 12,563 - - - (9)

3,486,004 2,064,657 441,841 (23,579) 418,262 (89,533) 3,106,251 1,909,487 684,461 24,344 708,805 181,571

Foreign currency 249,409 117,580 187,249 (1,265) 185,984 128,088 Interbank market 86,394 - (39) 1,342 1,303 - Fixed rate 657,187 - 351,828 1,976 353,804 - Floating rate - - - (1,304) (1,304) - Securities 2,113,261 463 145,423 23,595 169,018 120 Other - 1,791,444 - - - 53,363

379,753 155,170 (242,620) (47,923) (290,543) (271,104) Foreign currency 364,248 - (229,826) (42,935) (272,761) (110,443) Fixed rate 1,529 155,170 (1,560) 8 (1,552) (160,661) Indices - - (383) 129 (254) - Securities - - (8,115) (5,125) (13,240) - Commodities 13,976 - (2,736) - (2,736) -

ASSETS 5,508,293 97,479 5,605,772 6,591,399 LIABILITIES (4,764,078) (169,153) (4,933,231) (6,617,157)

TOTAL 744,215 (71,674) 672,541 (25,758)

0 - 30 31 - 180 181 - 365 Over 365 06/30/2010 06/30/200929,938,603 36,183,407 20,657,583 24,825,393 111,604,986 97,658,597 31,102,350 16,448,722 17,742,399 25,667,614 90,961,085 71,707,286

229,914,846 82,444,770 168,706,991 13,740,700 494,807,307 502,739,384 87,263 386,720 75,180 976,320 1,525,483 2,061,926 27,023 191,955 141,982 2,426,667 2,787,627 3,196,783

5,694,017 2,629,656 504,755 1,347,575 10,176,003 9,608,527 - - - - - 65,108 - - - - - 55,621 - - - - - 863,420

159,109 935,018 150,575 2,241,302 3,486,004 2,064,657

Memorandum AccountNotional Amount

Market value

Liability position

Credit derivativesAsset position

Liability position

Forward operationsAsset position

Liability position

Forwards with target flowAsset position

Target flow of forwardsLiability position

Liability position

Other derivative financial instruments (*)

Swap with target flowAsset position

Asset position

Liability position

Derivative contracts mature as follows (in days):ClearingFuturesSwapsOptions

Target flow of forwardsSwaps with target flowOther

ForwardsCredit derivativesForwardsForwards with target flow

II -

a)

b)

Accounting hedge

The swap operations contracted in a negotiation associated with the funding and/or investment in theamount of R$ 302,414 (R$ 720,766 at 06/30/2009) are recorded at amounts restated in accordancewith variations occurred in respective ratios (“curve”) and are not valued at their market value, aspermitted by BACEN Circular No. 3,150/02.

The gains or losses related to the accounting hedge of cash flows that we expect to recognize in results in the following 12 months amount to R$ 168,980 (R$ 1,184 at 06/30/2009).

The purpose of the hedge relationship of ITAU UNIBANCO CONSOLIDATED is to protect the cashflow of payment of debt interest (CDB / Redeemable preferred shares) related to its variable interestrate risk (CDI / LIBOR), making the cash flow constant (fixed rate) and independent from thevariations of DI Cetip Over and LIBOR.

To protect the future cash flows of debt against exposure to variable interest rate (CDI), at June 30,2010 ITAÚ UNIBANCO CONSOLIDATED negotiated DI Futures agreements at BM&FBOVESPA withmaturity between 2010 and 2017 in the amount of R$ R$ 22,445,674 (R$ 13,021,089 at 06/30/2009).To protect the future cash flows of debt against exposure to variable interest rate (LIBOR), at June 30,2010 ITAÚ UNIBANCO CONSOLIDATED negotiated swap contracts with maturity in 2015 in theamount of R$ 708,119. These derivative financial instruments gave rise to adjustment to market valuenet of tax effects recorded in stockholders’ equity of (R$ 53,183) (R$ (213,822) at 06/30/2009), ofwhich (R$ 37,681) (R$ (213,822) at 06/30/2009) refers to CDB and R$ (15,502) refers to RedeemablePreferred shares. The hedged items total R$ 23,153,794 (R$ 12,557,126 at 06/30/2009), of which R$22,445,674 are CDB with maturities between 2010 and 2017 and R$ 708,119 are swaps ofredeemable preferred shares with maturity in 2015.

The effectiveness computed for hedge portfolio was in conformity with the provisions of BACENCircular No. 3,082 of January 30, 2002.

III-

Futures Swaps Options Forwards Credit derivatives Forwar ds Forwards with

target flowTarget flow of

forwardsSwap with target

flowOther

106,264,120 1,655,448 488,893,372 519,348 - - - - - 200,837 5,340,866 89,305,637 5,913,935 1,006,135 2,787,627 10,176,003 - - - 3,285,167 1,050,655 74,999,789 4,906,183 - 2,787,627 8,678,476 - - - 2,954,395 4,290,211 12,749,952 952,703 1,006,135 - 1,426,960 - - - 329,683

- 1,555,896 55,049 - - 70,567 - - - 1,089 111,604,986 90,961,085 494,807,307 1,525,483 2,787,627 10,176,003 - - - 3,486,004 97,658,597 71,707,286 502,739,384 2,061,926 3,196,783 9,608,527 65,108 55,621 863,420 2,064,657

IV -

06/30/2010 06/30/2009(2,418,319) (1,094,528)

(2,418,319) (1,094,528) 369,307 2,102,255

369,307 2,102,255 Total (2,049,012) 1,007,727

V -

See below the composition of the Derivative Financial Instruments portfolio by type of instrument, stated at their notional amounts, per trading location (organized or over-the-counter market) and counterparties:

Companies

Reclassification of securities (article 5 of BACEN Circular No. 3,068, of 11/08/2001)

06/30/2009

Credit derivatives

IndividualsTotal

As set forth in Article 5 of BACEN Circular No. 3,068, of November 8, 2008, the revaluation regarding the classification of securities can only be made upon preparation of trial balances for six-month periods. In addition, the transfer from“held-to-maturity” to the other categories can only occur in view of an isolated, unusual, nonrecurring and unexpected reason, which has occurred after the classification date.

Management sets forth guidelines to classify securities. The classification of the current portfolio of securities, as well as the securities purchased in the period, is periodically and systematically evaluated based on such guidelines.

No reclassifications or changes to the existing guidelines have been made in the period.

Credit risk amount

Credit swaps whose underlying assets are:Securities

6/30/2010

During the period, there was no occurrence of credit event related to those set forth in agreements.

Credit swaps whose underlying assets are:Received

Securities

BM&F/BovespaOver-the-counter market

Financial institutions

Transferred

See below the composition of Credit Derivatives portfolio stated at notional amount and effect on calculation

VI -

01/01 to 06/30/2010

01/01 to 06/30/2009

Swap (348,869) 303,146 Forwards 9,042 4,714 Futures 112,598 3,725,758 Options (29,032) 931,445 Credit derivatives 12,058 12,151 Other (24,101) (1,081,806) Foreign exchange variation on investments abroad 103,015 511,926 Total (165,289) 4,407,334

Realized and unrealized gain of the derivative fina ncial instruments portfolio

01/01 to 06/30/2010

01/01 to 06/30/2009

358,968 (2,440,476)

(29,428) 2,214,444

(102,595) (163,693)

73,167 2,378,137 181,120 258,474

Available-for-sale 124,005 666,208

Accounting hedge - Derivative financial instruments 57,115 (407,734)

Futures 78,212 (407,734)

Swap (21,097) -

510,660 32,442 510,660 32,442

184,241 245,044

466,170 554,321 (139,751) (766,923)

Trading securities (43,667) (376,679)

Accounting hedge (96,084) (390,244)

Futures (68,077) (390,244)

Swap (28,007) -

06/30/2010 06/30/2009466,170 666,208

544,645 340,700

1,010,815 1,006,908 (*)

c) Changes in adjustment to market value for the pe riod

Stockholders’ equityDerivative financial instruments

Closing balance

Opening balanceAdjustments with impact on:

ResultsTrading securities

Available-for-sale securities

Trading securities

Adjustment to market value

Derivative financial instruments

Total unrealized gainIncludes the amount of R$ R$ 14,358 (R$ 17,862 at 06/30/2009) regarding the adjustment to market value of securities reclassified up to December 31, 2003,not recognized in the net income.

For better understanding, the following table shows the unrealized gains of available-for-sale securities and held-to-maturity securities:

Adjustment of available-for-sale securities – stockholders’ equity

Adjustment to held-to-maturity securities (*)

06/30/2009

AA A B C D E F G HTotal Total

16,426,398 63,905,857 31,081,814 7,552,212 6,042,296 2,782,885 1,585,829 999,401 4,354,557 134,731,249 108,430,709

Loans and discounted trade receivables 8,900,832 31,279,699 20,666,209 5,896,730 5,350,042 2,405,816 1,422,968 888,272 3,788,854 80,599,422 72,113,777

Financing 4,783,875 25,250,759 9,188,976 1,309,170 414,910 167,578 128,002 90,830 449,785 41,783,885 27,057,009

Farming and agribusiness financing 255,575 688,241 536,632 90,541 76,678 118,284 6,289 323 40,821 1,813,384 2,111,672

Real estate financing 2,486,116 6,687,158 689,997 255,771 200,666 91,207 28,570 19,976 75,097 10,534,558 7,148,251

1,205,033 27,583,739 5,238,396 2,259,953 1,032,219 454,080 360,111 301,084 953,275 39,387,890 46,264,625

- 11,389,964 10,257,487 2,178,740 2,057,017 657,646 479,355 363,975 2,516,174 29,900,358 24,660,769

129,753 176,783 311,545 119,752 45,312 16,652 9,528 1,118 12,214 822,657 1,541,085

11,460 99,503 19,878 6,461 3,393 3,019 3,412 1,753 149,723 298,602 291,215

17,772,644 103,155,846 46,909,120 12,117,118 9,180,237 3,914,282 2,438,235 1,667,331 7,985,943 205,140,756 181,188,403

16,091,349 19,438,547

17,772,644 103,155,846 46,909,120 12,117,118 9,180,237 3,914,282 2,438,235 1,667,331 7,985,943 221,232,105 200,626,950

17,544,648 88,001,722 39,231,379 12,193,916 8,037,224 4,282,771 2,866,693 1,895,258 7,134,792 181,188,403 Total - 06/30/2009

(1) Includes Advances on Exchange Contracts and Income Receivable from Advances Granted, reclassified from Liabilities - Foreign Exchange Portfolio/Other Receivables (Note 2a);

(2) Includes Securities and Credits Receivable, Debtors for Purchase of Assets and Endorsements and Sureties paid;

(3) Recorded in Memorandum Accounts.

Other sundry receivables (2)

Total operations with credit granting characteristi cs

Endorsements and sureties (3)

Total with endorsements and sureties

Loan operations

Lease operations

Credit card operations

Advances on exchange contracts (1)

NOTE 7 - LOAN, LEASE AND OTHER CREDIT OPERATIONS

a) Composition of the portfolio by type of operatio ns and risk levels

Risk levels06/30/2010

06/30/2009

AA A B C D E F G H Total Total

- - 2,583,397 2,048,385 1,526,588 964,120 755,131 571,984 1,333,994 9,783,599 10,121,467

01 to 60 - - 217,310 199,036 193,337 97,416 88,538 65,722 213,505 1,074,864 1,085,689

61 to 90 - - 105,573 93,781 79,578 45,579 41,516 31,790 85,953 483,770 500,502

91 to 180 - - 318,756 272,480 210,327 129,585 113,884 85,330 222,973 1,353,335 1,375,710

181 to 365 - - 535,828 475,236 351,520 221,268 190,935 144,207 342,312 2,261,306 2,301,719

Over 365 - - 1,405,930 1,007,852 691,826 470,272 320,258 244,935 469,251 4,610,324 4,857,847

- - 472,881 603,384 1,149,715 806,951 926,197 835,589 4,678,478 9,473,195 9,822,346

01 to 60 - - 472,881 569,393 647,239 227,649 167,685 101,766 341,234 2,527,847 2,765,642

61 to 90 - - - 24,478 462,050 150,589 142,035 88,020 215,604 1,082,776 1,254,482

91 to 180 - - - 9,513 40,426 397,106 568,217 589,724 1,022,089 2,627,075 3,191,053

181 to 365 - - - - - 31,607 48,260 56,079 2,948,671 3,084,617 2,480,794

Over 365 - - - - - - - - 150,880 150,880 130,375

- - 3,056,278 2,651,769 2,676,303 1,771,071 1,681,328 1,407,573 6,012,472 19,256,794 19,943,813

17,750,152 102,663,686 43,429,477 9,289,496 6,316,709 2,100,946 738,643 251,819 1,921,858 184,462,786 159,091,589

01 to 60 4,208,680 21,939,580 16,254,050 4,378,746 2,737,364 528,670 210,255 76,993 759,247 51,093,585 47,477,580

61 to 90 1,099,020 5,825,456 3,649,535 760,228 399,525 86,626 38,761 10,615 116,435 11,986,201 9,931,739

91 to 180 1,728,305 11,777,877 5,760,721 1,148,808 744,805 193,546 88,702 23,509 215,927 21,682,200 18,646,585

181 to 365 2,324,695 16,869,652 6,010,710 1,217,938 898,391 304,119 124,776 33,454 248,688 28,032,423 25,342,367

Over 365 8,389,452 46,251,121 11,754,461 1,783,776 1,536,624 987,985 276,149 107,248 581,561 71,668,377 57,693,318

22,492 492,160 423,365 175,853 187,225 42,265 18,264 7,939 51,613 1,421,176 2,153,001

17,772,644 103,155,846 43,852,842 9,465,349 6,503,934 2,143,211 756,907 259,758 1,973,471 185,883,962 161,244,590

17,772,644 103,155,846 46,909,120 12,117,118 9,180,237 3,914,282 2,438,235 1,667,331 7,985,943 205,140,756 181,188,403

- (515,779) (975,487) (1,210,500) (2,753,153) (1,956,749) (1,706,521) (1,667,164) (7,985,943) (18,771,296) (18,390,511)

Minimum allowance required (3) - (515,779) (469,092) (363,513) (918,024) (1,174,284) (1,219,118) (1,167,131) (7,985,943) (13,812,884) (13,181,513)

Additional allowance (4) - - (506,395) (846,987) (1,835,129) (782,465) (487,403) (500,033) - (4,958,412) (5,208,998)

Grand total 06/30/2009 17,544,648 88,001,722 39,231,379 12,193,916 8,037,224 4,282,771 2,866,693 1,895,258 7,134,792 181,188,403

- (440,009) (1,144,750) (1,218,172) (2,410,363) (2,140,957) (2,006,399) (1,895,069) (7,134,792) (18,390,511) (1)(2)(3)

(4)

NON-OVERDUE OPERATIONS

GRAND TOTAL

EXISTING ALLOWANCE

Falling due installments

Overdue up to 14 days

Subtotal

The policy of not using “AA” rating for individuals was maintained. As a consequence, all loan operations with clients classified in these segments are charged by recording a provision upon the granting of loan;

According to BACEN’s request, it is classified into each risk level to show the additional amounts found through the use of statistic of models for evaluating the portfolios in the event of stress in the economic scenario.

Operations with overdue installments for more than 14 days or under responsibility of bankruptcy or in process of bankruptcy companies;The balance of non-accrual operations amounts to R$ 12,184,320 (R$ 12,730,300 at 06/30/2009);

b) By maturity and risk levels

OVERDUE OPERATIONS (1) (2)

06/30/2010

Falling due installments

Overdue installments

Subtotal

EXISTING ALLOWANCE

c)

06/30/2010 06/30/2009

856,061 947,451 204,284,695 180,240,952

92,504,311 82,585,550 48,391,302 44,156,023 37,315,239 28,481,812

4,782,834 6,203,895 2,014,936 3,743,820

111,780,384 97,655,402

205,140,756 181,188,403

OtherIndividuals

Grand Total

CompaniesIndustry and CommerceServicesPrimary Sector

By business sector

Public SectorPrivate Sector

d) Changes in allowance for loan losses

(19,138,270) (17,821,992)

Balance arising from the split off to Itaú BBA on 02/28/2009 - 165,131

(7,472,036) (8,094,496)

Minimum required by Resolution No. 2,682/99 (7,480,008) (8,800,304)

Additional 7,972 705,808

7,839,010 7,360,846

(18,771,296) (18,390,511)

Minimum allowance required (Note 4f) (13,812,884) (13,181,513)

Additional allowance (*) (4,958,412) (5,208,998) (*)

e)

I -

II -

01/01 to 06/30/2009

01/01 to 06/30/201

Net increase for the period

Opening balance

Write-off

Refers to the provision in excess of the minimum required by CMN Resolution No.2,682, of December 21, 1999, recognized withinthe prudential criteria adopted by management in accordance with good banking practice, in order to enable the absorption ofpossible increases in default arising from a strong reversal of the economic cycle.

A s from December 31, 2008, considering the economic scenario and the uncertainties related to it, the criteria for recognition of theadditional allowance for loan losses were revised, including the portion related to risks associated to a more pessimistic scenario.Over 2009, the effects of the crisis were partially consummated, giving rise to an increase in the required regulatory allowance andreduction in the additional allowance for loan losses regarding the portfolio.

At 06/30/2010, the balance of renegotiated credits totaled R$ R$ 8,633,849 (R$ 5,721,475 at 06/30/2009)and the related allowance for loan losses totaled R$ 4,280,015 (R$ 2,332,141 at 06/30/2009).

Recovery and renegotiation of credits

Closing balance

At June 30, 2010, the balance of the allowance in relation to the loan portfolio is equivalent to 9.1% (10.1% at06/30/2009).

In the period, credits amounting to R$ 1,687,676 (R$ 856,439 from 01/01 to 06/30/2009) that had beenwritten-off to the allowance for loan losses account were recovered.

06/30/2010 06/30/2009

10,951,050 24,033,918

Exchange purchase pending settlement - foreign currency 6,752,798 19,981,947

Bills of exchange and term documents - foreign currency 42 227

Exchange sale rights - local currency 4,431,141 4,239,005

(Advances received) - local currency (232,931) (187,261)

11,224,318 24,110,790

Exchange sales pending settlement - foreign currency 4,334,948 16,504,337

Liabilities from purchase of foreign currency - local currency 6,885,139 7,602,449

Other 4,231 4,004

263,494 236,036

Outstanding import credits - foreign currency 259,885 202,723 Confirmed export credits - foreign currency 3,609 33,313

MEMORANDUM ACCOUNTS

NOTE 8 - FOREIGN EXCHANGE PORTFOLIO

ASSETS - OTHER RECEIVABLES

LIABILITIES - OTHER LIABILITIES (Note 2a)

06/30/2009

Up to 365 days Over 365 days Total Total

Deposits 123,783,356 79,155,150 202,938,506 199,460,095

Deposits received under securities repurchase agreements 82,660,305 60,487,846 143,148,151 125,899,618

Funds from acceptances and issuance of securities 8,614,455 27,737,485 36,351,940 21,548,173

Borrowings and onlending 7,744,612 12,059,279 19,803,891 20,753,127

Securitization of foreign payment orders (1) - - - 697,461

Subordinated debt (2) 37,797 26,988,307 27,026,104 23,125,683

TOTAL 222,840,525 206,428,067 429,268,592 391,484,157

TOTAL - 06/30/2009 217,644,996 173,839,161 391,484,157

(1) Funds obtained abroad through the sales to Brazilian Diversified Payment Rights Finance Company of rights related to payment orders received abroad;

NOTE 9 - FUNDING AND BORROWINGS AND ONLENDING

a) Summary

06/30/2010

(2) Includes R$ 711,167 (R$ 773,070 at 06/30/2009) of Redeemable Preferred Shares classified under Minority Interest in Balance Sheet.

06/30/2009

Up to 365 days Over 365 days Total Total

7,175,561 190,842 7,366,403 8,099,815

508,233 23,427,623 23,935,856 8,945,390 930,661 4,119,020 5,049,681 4,502,968

Trade Related - Issued abroad - Structure Note Issu ed 331,082 424,851 755,933 496,529

Non-trade Related 599,579 3,694,169 4,293,748 4,006,439

Issued in Brazil - Fixed Rate Notes 3,675 279,822 283,497 68,315

Issued abroad 595,904 3,414,347 4,010,251 3,938,124

Brazil Risk Note Programme 451,620 2,138,197 2,589,817 2,111,320

Eurobonds 9,250 348,283 357,532 201,603

Euro Certificates of Deposits - 1,598 1,598 -

Euro Medium-term Note Programme - - - 281,219

Fixed Rate Notes 13,699 800,262 813,961 1,067,938

Paper 103,189 - 103,189 2,059

Other 18,147 126,007 144,154 273,985

8,614,455 27,737,485 36,351,940 21,548,173

9,377,845 12,170,328 21,548,173 TOTAL - 06/30/2009

TOTAL

b) Funds from acceptances and issuance of securitie s

REAL ESTATE, MORTGAGE, CREDIT AND SIMILAR NOTES

DEBENTURES

FOREIGN BORROWINGS AND SECURITIES

06/30/2010

c)

06/30/2009Up to 365 days Over 365 days Total Total

2,900,660 1,522,514 4,423,174 7,399,899

1,328,146 48,366 1,376,512 397,433

1,572,514 1,474,148 3,046,662 7,002,466

4,843,952 10,536,765 15,380,717 13,353,228 4,658,613 10,476,872 15,135,485 13,059,164

BNDES 1,406,190 3,756,027 5,162,217 5,246,985

FINAME 3,201,945 6,539,374 9,741,319 7,504,227

Other 50,478 181,471 231,949 307,952

185,339 59,893 245,232 294,064

7,744,612 12,059,279 19,803,891 20,753,127

9,207,044 11,546,083 20,753,127 (*) Foreign borrowings are basically represented by foreign exchange transactions related to export pre-financing and import financing.

BORROWINGS

Foreign (*)

ONLENDINGDomestic - official institutions

TOTAL - 06/30/2009

Borrowings and onlending

06/30/2010

TOTAL

Domestic

Foreign

06/30/2009Up to 365 days Over 365 days Total Total

- 24,482,092 24,482,092 20,433,158

21,253 914,034 935,287 957,968

Eurobonds 13,496 900,750 914,246 990,421

(-) Transaction costs incurred - (16,688) (16,688) (28,934)

34,749 26,280,188 26,314,937 22,352,613

Redeemable preferred shares 3,048 708,119 711,167 773,070

37,797 26,988,307 27,026,104 23,125,683

1,187,317 21,938,366 23,125,683

Description

Subordinated euronotes 2nd half of 2001 August 2011 10.00% 457,465

Subordinated euronotes August 2001 August 2011 4.25% 625,008 Subordinated CDB March 2007 April 2012 103.5% of CDI 5,000,000

Subordinated CDB (1) March 2007 March 2012 103.9% of CDI 1,406,000

Subordinated CDB (1) July 2007 July 2012 CDI + 0.38% 422,000

Subordinated CDB (1) August 2007 August 2012 CDI + 0.38% 200,000

Subordinated CDB (1) October 2007 October 2012 IGPM + 7.33% 290,850

Subordinated CDB (1) October 2007 October 2012 103.8% of CDI 93,000 Subordinated CDB (1) October 2007 October 2012 CDI + 0.45% 450,000

Subordinated CDB November 2007 November 2012 CDI + 0.35% 300,000

Subordinated CDB December 2002 December 2012 102.25% of CDI 220,000

Subordinated CDB January 2008 February 2013 CDI + 0.50% 880,000

Subordinated CDB February 2008 February 2013 CDI + 0.50% 1,256,000

Subordinated CDB (1) 1st quarter of 2008 1st quarter of 2013 CDI + 0.60% 817,310 Subordinated CDB (1) 1st quarter of 2008 2nd quarter of 2013 106.5% of CDI 38,000

Subordinated CDB (1) 2nd quarter of 2008 2nd quarter of 2013 107% of CDI 10,400

Subordinated CDB November 2003 November 2013 102% of CDI 40,000

Subordinated CDB March 2007 March 2014 CDI + 0.35% 1,804,500

Subordinated CDB (1) August 2007 August 2014 CDI + 0.46% 50,000

Subordinated CDB November 2008 October 2014 112% of CDI 1,000,000 Subordinated CDB (1) October 2007 October 2014 IGPM + 7.35% 33,200

Subordinated CDB (1) December 2007 December 2014 CDI + 0.60% 10,000

Preferred shares December 2002 March 2015 3.04% 1,388,841

Subordinated CDB (1) 3rd quarter of 2008 3rd quarter of 2015 119.8% do CDI 400,000

Subordinated CDB January 2010 January 2016 114% of CDI 500,000

Subordinated CDB 1st quarter of 2010 1st quarter of 2016 110% of CDI 82,880 Subordinated CDB 1st quarter of 2010 1st quarter of 2016 111% of CDI 33,400

Subordinated CDB 1st quarter of 2010 1st quarter of 2016 113% of CDI 2,152,988

Subordinated CDB March 2010 March 2016 IPCA + 7.33% 122,500

Subordinated CDB (2) December 2006 December 2016 CDI + 0.47% 500,000

Subordinated CDB March 2010 March 2017 IPCA + 7.45% 367,030

Eurobonds -Perpetual Non-cumulative JuniorJuly 2005 Not determined 8.70% 1,195,250

(1)(2)(3)

Subordinated CDBs may not be redeemed in advance;Subordinated CDBs may be redeemed from November 2011;The debt may be fully redeemed only at the option of the issuer from July 29, 2010 or at each subsequent payment.

d) Subordinated debt

TOTAL OTHER LIABILITIES

TOTAL - 06/30/2009

GRAND TOTAL

Funding obtained through issuance of subordinated debt, in accordance with the conditions determined by CMN Resolution No. 3,444, of02/28/2007, and amendments established by CMN Resolution No. 3,532, of 01/31/2008, is as follows:

06/30/2010

Principal R$

Euronotes

CDB

Name of security

Subordinated Securities (3)

Issue Maturity Return p.a.

06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009

31,651 33,912 45,445,230 38,195,188 - - 45,476,881 38,229,100

3,340,792 3,150,567 - - - - 3,340,792 3,150,567

2,446,516 2,329,525 - - - - 2,446,516 2,329,525

1,772 2,118 462,096 415,458 - - 463,868 417,576

695,006 779,799 12,924 12,480 - - 707,930 792,279

473 448 120,338 110,553 - - 120,811 111,001

256,070 162,555 - - - - 256,070 162,555

130 - 532,470 433,022 - - 532,600 433,022

- - - - 2,352,450 2,100,941 2,352,450 2,100,941

Raffle contingency - - - - 23,881 36,654 23,881 36,654

76,434 75,688 170,201 179,229 25,686 21,795 272,321 276,712

6,848,844 6,534,612 46,743,259 39,345,930 2,402,017 2,159,390 55,994,120 48,039,932

NOTE 10 - INSURANCE, PENSION PLAN AND CAPITALIZATIO N OPERATIONS

a) Composition of the technical provisions

TOTALINSURANCE PENSION PLAN

Unearned premiums

CAPITALIZATION

Mathematical provision of benefits to be granted and benefits granted

TOTAL

Financial variation

IBNR

Unsettled claims

Premium deficiency

Insufficient contribution

Mathematical provision for redemptions

Other

Financial surplus

06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009

1,361,225 887,480 1,004,823 728,461 1,065,104 763,990 3,431,152 2,379,931

2,646,234 2,814,650 45,797,116 38,647,007 1,379,929 1,419,573 49,823,279 42,881,230

- - 41,436,196 34,475,799 - - 41,436,196 34,475,799

Government securities - domestic - - 29,110,336 20,485,062 - - 29,110,336 20,485,062

Financial Treasury Bills - - 1,431,202 13,265,144 - - 1,431,202 13,265,144

National Treasury Bills - - 10,250,261 2,243,854 - - 10,250,261 2,243,854

National Treasury Notes - - 17,428,873 4,976,064 - - 17,428,873 4,976,064

Corporate securities - - 11,124,471 12,894,934 - - 11,124,471 12,894,934

Bank Deposit Certificates: - - 5,143,516 7,200,954 - - 5,143,516 7,200,954

Shares - - 1,123,950 1,223,528 - - 1,123,950 1,223,528

Debentures - - 3,357,850 3,627,100 - - 3,357,850 3,627,100

Securitized real estate loans - - 1,357 - - - 1,357 -

Financial Treasury Bills - - 955,449 - - - 955,449 -

Promissory Notes - - 2,627 228,153 - - 2,627 228,153

Quotas of Funds - - 539,722 615,199 - - 539,722 615,199

PGBL/VGBL fund quotas - - 1,125,809 892,365 - - 1,125,809 892,365

Derivative financial instruments - - 46,256 172,982 - - 46,256 172,982

Accounts receivable (payable) - - 29,324 30,456 - - 29,324 30,456

2,646,234 2,814,650 4,360,920 4,171,208 1,379,929 1,419,573 8,387,083 8,405,431

Government 1,796,288 2,062,179 3,338,705 2,912,358 44,663 750,846 5,179,656 5,725,383

Private 849,946 752,471 1,022,215 1,258,850 1,335,266 668,727 3,207,427 2,680,048

Receivables from insurance and reinsurance operatio ns (2) 2,905,370 2,727,853 - - - - 2,905,370 2,727,853

Credit rights 1,111,706 986,737 - - - - 1,111,706 986,737

Reinsurance 1,793,664 1,741,116 - - - - 1,793,664 1,741,116

Escrow deposits for loss 37,749 143,355 - - - - 37,749 143,355 6,950,578 6,573,338 46,801,939 39,375,468 2,445,033 2,183,563 56,197,550 48,132,369

(1)

(2)

92,719 102,085 116,592 135,219 33,336 22,842 242,647 260,146

110,974 142,813 1,555,078 2,100,052 102,063 90,971 1,768,115 2,333,836

(18,255) (40,728) (1,438,486) (1,964,833) (68,727) (68,129) (1,525,468) (2,073,690)

1,104,259 795,451 28,367 122,523 222,330 193,969 1,354,956 1,111,943

3,547,772 3,174,338 3,851,355 4,479,070 843,627 752,638 8,242,754 8,406,046

(143,931) 37,788 (3,803,698) (4,308,428) (595,487) (532,634) (4,543,116) (4,803,274)

(1,486,991) (1,656,542) - - - - (1,486,991) (1,656,542)

(689,577) (679,107) (3,572) (5,960) (5,983) (9,199) (699,132) (694,266)

- - (17,487) (13,485) (19,763) (17,992) (37,250) (31,477)

(123,014) (81,026) 1,769 (28,674) (64) 1,156 (121,309) (108,544)

1,196,978 897,536 144,959 257,742 255,666 216,811 1,597,603 1,372,089

Expenses for benefits and raffles

Other revenues and expenses

TOTAL

Premiums and contributions

Changes in technical provisions

Expenses for claims

Selling expenses

Income from financial operations

Financial income from insurance, pension plan and capitalization operations

Financial expenses from insurance, pension plan and capitalization operations

Result from insurance, pension plan and capitalizat ion operations

CAPITALIZATION TOTAL

01/01 to

06/30/2010

01/01 to

06/30/2009

01/01 to

06/30/2010

01/01 to

06/30/2009

01/01 to

06/30/2010

01/01 to

06/30/2009

01/01 to

06/30/2010

01/01 to

06/30/2009

c) Results of Operations

INSURANCE PENSION PLAN

Interbank investments - Money market

Securities and derivative financial instruments

PGBL/VGBL fund quotas (1)

TOTALCAPITALIZATION

b) Assets Guaranteeing Technical Provisions - SUSEP

INSURANCE PENSION PLAN

Other

TOTAL

The PGBL and VGBL plans securities portfolios, the ownership and embedded risks of which are the customers’ responsibility, are recorded as securities – trading securities, with a contra-entry to liabilities in the Pension Plan Technical Provisions account, as determined by SUSEP.Recorded under Other receivables and Other assets.

NOTE 11 - CONTINGENT ASSETS AND LIABILITIES AND LEGAL LIABI LITIES – TAX AND SOCIAL SECURITY ITAÚ UNIBANCO and its subsidiaries are involved in contingencies in the ordinary course of their businesses, as follows: a) Contingent Assets: there are no contingent assets recorded. b) Contingent Liabilities: these are estimated and classified as follows:

- Calculation criteria:

Civil lawsuits: quantified upon judicial notification or individual execution when the claim is awarded a final and unappealable judgment regarding lawsuits filed by the Public Attorney’s Office or consumer protection associations, and monthly reviewed.

- Collective (lawsuits related to claims considered similar and usual and the amounts of which are not

considered significant): according to the statistical references per group of lawsuits, type of legal body (Small Claims Court or Regular Court) and claimant; or

- Individual (lawsuits related to claims considered unusual and the amounts of which are considered significant): at the claimed indemnity amount, based on the evidence presented and on the evaluation of legal advisors – which considers case law, legal opinions raised, evidence produced in the records and the judicial decisions to be issued – relating to the risk level of loss of lawsuits.

These are adjusted to the amounts deposited as guarantee for their execution or to the definitive execution amount (indisputable amount) when the claim is awarded a final and unappealable judgment.

Labor claims: these are calculated upon judicial notification and adjusted monthly by the moving average of payment of lawsuits closed in the last 12 months plus the average cost of fees paid for lawsuits related to claims considered similar and usual and adjusted: to the amounts deposited in guarantee; to the execution amount (indisputable amount) when it is in the stage of being a final and unappealable decision; or based on the individual analysis of the potential amount of probable loss for lawsuits with significant amounts.

Tax and social security lawsuits: calculated upon judicial notification of administrative proceedings based on their monthly adjusted amounts.

Other risks: calculated mainly based on the assessment of credit risk on joint obligations.

- Contingencies classified as probable: are recognized in the accounting books and comprise:

- Civil lawsuits: demanding compensation for property damage and pain and suffering, such as protest of bills, return of checks, and inclusion of information in the credit protection registry, most of these actions being filed in the Small Claims Court and therefore limited to 40 minimum monthly wages. The bank is also party to specific lawsuits over the charging of understated inflation adjustment to savings accounts in connection with economic plans. The case law at the Federal Supreme Court is favorable to banks in relation to an economic phenomenon similar to savings, as in the case of adjustment to time deposits and contracts in general. In addition, the Federal Supreme Court has recently decided that the term for filing public civil actions over understated inflation is five years. In view of such decision, some of the lawsuits may be dismissed because they were filed after a five-year period.

- Labor claims: seeking the recovery of alleged labor rights based on labor legislation specific to the related

profession, such as overtime, salary equalization, reinstatement, transfer allowance, pension plan supplement and other;

- Tax and social security lawsuits: represented mainly by lawsuits and administrative proceedings involving

federal and municipal taxes; - Other Risks represented basically by the joint obligation for securitized rural loans.

The table below shows the changes in the respective provisions for contingent liabilities and the respective escrow deposits balances:

01/01 to 06/30/2009

Civil Labor Tax and social

security Other Total Total

2,348,790 3,154,724 1,444,091 256,590 7,204,195 7,653,061 (98,628) (573,261) (35,331) - (707,220) (692,451)

2,250,162 2,581,463 1,408,760 256,590 6,496,975 6,960,610 Restatement/Charges 63,579 39,994 15,150 - 118,723 260,378

662,497 234,629 105,678 10,843 1,013,647 1,023,799

Increase (*) 763,348 264,624 235,248 10,843 1,274,063 1,264,301 Reversal (100,851) (29,995) (129,570) - (260,416) (240,502)

(475,961) (146,149) (55,450) - (677,560) (720,681) 2,500,277 2,709,937 1,474,138 267,433 6,951,785 7,524,106

(+) Contingencies guaranteed by indemnity clause (Note 4n I) 119,701 567,851 45,041 - 732,593 785,293 2,619,978 3,277,788 1,519,179 267,433 7,684,378 8,309,399 2,370,052 3,091,604 2,607,353 240,390 8,309,399 1,344,255 1,548,067 743,022 - 3,635,344

985,171 1,410,710 1,010,815 - 3,406,696 (*) Civil provisions include the provision for economic plans amounting to R$ R$ 320,001 (R$ 166,398 from January 01 to June 30, 2009) (Note20l).

Change in provision for contingent liabilities 01/01 to 06/30/2010

Subtotal

Subtotal

Opening balance

Changes in the period reflected in results (Notes 12f and 12i)

Payment

Closing balance at June 30, 2009 (Note 12c)

(-) Contingencies guaranteed by indemnity clauses (Note 4n I)

Escrow deposits at 06/30/2010 (Note 12a)

Closing balance (Note 12c)

Escrow deposits at 06/30/2009 (Note 12a)

- Contingencies classified as possible: not recognized in the accounting books and comprise Civil Lawsuits amounting to R$ 409,571 and Tax and Social Security Lawsuits amounting to R$ 3,778,106. The principal characteristics of these lawsuits are described below:

• IRPJ/CSLL - losses on receipt of credits and discounts granted upon credit renegotiation – R$

463,029: We defend the deduction as an operating expense and necessary for the financial activity itself.

• ISS – Banking Institutions – R$ 442,567: We understand that the banking operation cannot be

interpreted as a service and/or is not listed under Supplementary Law No. 116/03 or Decree-law No. 406/68.

• IRPJ, CSLL, PIS and COFINS – Usufruct of quotas and shares - R$ 320,667: We discuss the

adequate accounting and tax treatment for the amount received due to the onerous recognition of usufruct.

• IRPJ/CSLL – Taxation of profits abroad – R$ 305,733: We discuss the criteria for determination of

calculation basis and taxable event.

• IRPJ, CSLL, PIS and COFINS – request for offset dismissed - R$ 305,416: Cases in which the liquidity and the offset credit certainty are discussed.

• IRPJ/CSLL – Goodwill - R$ 234,066: We defend the deductibility of goodwill incurred upon acquisition

of merged companies.

• IRPJ/CSLL - Interest on capital - R$ 213,971: We defend the deductibility of interest on capital declared to stockholders based on the Brazilian long-term interest rate (TJLP) levied on the stockholders’ equity for the year and for prior years.

• INSS – Non-compensatory amounts – R$181,398: We defend the non-taxation of these amounts,

mainly transportation vouchers and sole bonus.

• IRPJ/CSLL – Expenses on acquisition of customer portfolio – R$ 175,573: We defend its deduction as a required operating expense

• ISS – Lease operation R$ 146,070: We discuss the place of service provision and the calculation

basis amount.

The amount of R$ 1,179,247 (R$ 792,604 at 06/30/2009) related to Securities, the amount of R$ R$ 3,065,741 (R$ 3,821,207 at 06/30/2009) (Note 12a) of deposits, as well as Permanent Assets in the amount of R$ 661,594 (R$ 726,963 at 06/30/2009), according to article 32 of Law No. 10,522/02, are pledged in guarantee of voluntary appeals related to contingent liability lawsuits. As a result of the unconstitutionality lawsuit No. 1,976, the Federal Supreme Court ruled unconstitutional the requirement of guarantees for considering voluntary appeals on April 10, 2007. The Bank is requesting the cancellation of the pledging of guarantees to the Federal Revenue Service.

The Receivables balance arising from reimbursements of contingencies totals R$ 1,099,886 (R$ 1,107,111 at 06/30/2009) (Note 12a), basically represented by the guarantee in the Banco Banerj privatization process in 1997, in which the State of Rio de Janeiro created a fund to guarantee the equity recomposition from losses on Civil, Labor and Tax Contingencies.<0}

c)

01/01 to 06/30/2010

01/01 to 06/30/2009

6,422,834 8,011,018 Charges on taxes 178,698 458,864

(28,079) 1,252,281Increase 315,769 1,379,626 Reversal (*) (343,848) (127,345)

(1,933,578) (183,334) 4,639,875 9,538,829

(*)

01/01 to 06/30/2010

01/01 to 06/30/2009

Opening balance 3,272,102 3,345,837Balance arising from the acquisition of investments 1,880 -

113,520 277,153 110,770 31,576 114,136 225,088

(13) (8,718) (3,353) (184,794)

3,498,272 3,654,566

Withdrawals

From 01/01 to 06/30/2010 refers basically to the effects arising from the adhesion to the Cash or Installment Payment of Federal Taxes -Law 11,941/01 (Note 12d);

Closing balance (Note 12a)

Legal Liabilities - Tax and Social Security and Escrow Depos its for Filing Legal Processes – recognized atthe full amount being questioned and respective esc row deposits, as follows:

Change in legal liabilities

Opening balance

Changes in the period reflected in results

Payment (*)Closing balance (Note 13c)

Convertion into income

Appropriation of income

Changes in the periodDeposited

Change in escrow deposits

The main natures of processes are described as follows: • PIS and COFINS – R$ 2,186,817 – Revenue x Gross revenue: We request either the levy of taxes only on

the revenue understood as income from sale of assets and services or the levy of PIS Repique (calculated on income tax payable) (at 5% of income tax due), in lieu of the levy on total revenues recorded, by alleging the unconstitutionality of paragraph 1 of article 3 of Law No. 9,718/98. The corresponding escrow deposit totals R$ 1,203,823.

• CSLL – R$ 594,574 – Principle of equality: We request the levy of tax at 9%, in lieu of 15%, for financial and

insurance companies, by alleging the unconstitutionality of article 41 of Law No. 11,727/08. The corresponding escrow deposit totals R$ 148,882.

• IRPJ and CSLL – R$ 442,808 – Taxation of profits earned abroad: We defend the exemption of the positive

equity in earnings from foreign investments. The corresponding escrow deposit totals R$ 439,930. • PIS and COFINS – R$ 297,839 – Principles of anteriority, anteriority over 90 days and non-retroactivity: We

request the rejection of Constitutional Amendments No. 10/96 and No. 17/97 in view of the principle of anteriority and non-retroactivity, aiming at making payments based on Supplementary Law No. 07/70. The corresponding escrow deposit totals R$ 57,918.

• INSS – R$ 251,975 – Service providers that are individuals and management members: We request the

nonlevy of taxes on payment to service providers that are individuals and management members, set forth by Supplementary Law No. 84/96, by alleging its unconstitutionality. The corresponding escrow deposit totals R$ 251,975.

d) Program for Cash or Installment Payment of Feder al Taxes - Law No. 11,941/09

ITAÚ UNIBANCO CONSOLIDATED and its subsidiaries adhered to the Program for Cash or Installment Payment of Federal Taxes, established by Law No. 11,941, of May 27, 2009. The program included the debits administered by the Federal Reserve Service of Brazil and the General Attorney’s Office of the National Treasury past due before November 30, 2008. The main propositions included in this program were as follows: • increase in the PIS and COFINS calculation basis as per paragraph 1 of article 3 of Law No. 9,718 of

November 27, 1998, classified as Legal Liability;

The net effect on income was R$ 137,373, recorded in Other Operating Income (Note 20j).

According to the opinion of the legal advisors, ITAÚ UNIBANCO and its subsidiary companies are not involved in any other administrative proceedings or lawsuits that may significantly affect the results of their operations. The combined evaluation of all existing provisions for all contingent liabilities and legal obligations, which are recognized through the adoption of statistical models for claims involving small amounts and separate analysis by internal and external legal advisors of other cases, showed that the amounts provided for are sufficient, according to the CMN Resolution No. 3,535 of January 31, 2008.

06/30/2010 06/30/2009

24,469,202 24,314,374 841,682 1,053,324

2,551,279 2,643,581 6,701,085 7,227,903 3,498,272 3,654,566

521,808 446,085 1,099,886 1,107,111

- 339,937 776,854 538,950 105,200 179,045 33,211 47,782

180,469 179,029 16,035 26,891

239,765 449,442

Securities and credits receivable 452,737 636,342 (Allowance for other loan losses) (212,972) (186,900)

97,849 164,945 41,132,597 42,372,965

OtherTotal

Receivables from sale of Visa Inc. and Visa Net sharesSundry domestic debtorsSundry foreign debtorsRecoverable paymentsSalary advancesAmounts receivable from related companiesOperations without credit granting characteristics

Escrow deposits in guarantee for provision for contingent liabilities (Note 11b)Escrow deposits for legal liabilities - tax and social security (Note 11c)Escrow deposits for foreign fund raising programReceivables from reimbursement of contingent liabilities (Note 11b)

NOTE 12 - BREAKDOWN OF ACCOUNTS

Deferred tax assets (Note 13b I)Social contribution for offset (Note 13b I)Taxes and contributions for offset

a) Other sundry receivables

06/30/2010 06/30/2009Commissions 1,744,561 2,256,740

Related to insurance and pension plan 459,034 295,840 Related to vehicle financing 1,074,494 1,822,676 Other 211,033 138,224

Credit Guarantee Fund (*) 620,313 807,498 Advertising 404,178 421,095 Other 254,447 237,357 Total 3,023,499 3,722,690 (*)

Refers to spontaneous payment, equivalent to the prepayment of installments of the contribution to Fundo Garantidor deCrédito (Brazilian deposit guarantee fund), according to BACEN Circular No. 3,416, of 10/24/2008.

b) Prepaid expenses

06/30/2010 06/30/2009 7,684,378 8,309,399 1,090,960 1,009,074 1,701,553 1,551,241 441,467 398,750 532,452 462,686 184,941 190,647 62,390 9,849 1,115,491 1,264,548 135,098 121,510 588,116 334,336 78,971 144,874 520,721 1,129,775

Provision for health insurance (2) 601,316 537,034 Expenses for lease interests (Note 3i) 84,644 135,660

220,292 300,030 15,042,790 15,899,413

(1)

(2)

Provision set up at 12/31/2008 to cover expenditures on communication with customers, adequacy of systems and personnel.

Provision set up to cover possible future deficits up to the total discontinuance of the portfolio, arising from the difference ofadjustments to monthly installments, authorized annually by the regulatory body, and the actual variation of hospital costs thataffect the compensation of claims.

Total

Provision to cover actuarial deficit (Note 17c)

Other

Related to insurance operations

Provision for integration expenditures with ITAÚ UNIBANCO merger (1)

Liabilities for purchase of assets and rights

Funds from consortia participantsCreditors of funds to be released

c) Other sundry liabilities

Liabilities for official agreements and rendering of payment services

Sundry creditors - foreign

Provisions for contingent liabilities (Note 11b)

Provision for sundry paymentsPersonnel provision

Sundry creditors - local

d) Banking service fees

01/01 to 06/30/2010

01/01 to 06/30/2009

1,173,388 1,010,0381,130,786 990,042

42,602 19,996 274,333 224,209

3,140,163 2,729,131463,243 403,005

2,676,920 2,326,126 Relationship with stores 2,445,592 2,138,269 Credit card processing 231,328 187,857

540,292 476,180415,177 333,797125,115 142,383 604,499 567,096481,730 461,276 122,769 105,820 654,726 512,796266,815 131,244

88,705 73,188 7,926 9,809

23,292 24,115 267,988 274,440

6,387,401 5,519,450 Other services

Total

Asset managementFunds management fees

Collection services

Current account services Credit cards

Annual feesOther services

Loan operations and guarantees provided

Consortia management fees

OtherBrokerageCustody services and management of portfolio

Foreign exchange services

Loan operations Guarantees provided

Receipt servicesCollection fees

Economic and financial advisory

e)

629,105 478,195 86,775 79,235 60,390 54,661

753,051 706,747 1,529,321 1,318,838

Service package fees and otherTotal

Transfer of funds

Income from bank charges

Deposit accountLoan operations/registration

01/01 to 06/30/201

01/01 to 06/31/2009

f) Personnel expenses

01/01 to 06/30/2010

01/01 to 06/30/2009

(3,300,242) (3,323,102) (916,983) (903,591) (777,933) (667,011) (86,740) (51,276)

(5,081,898) (4,944,980) (234,629) (341,433)

(5,316,527) (5,286,413) g) Other administrative expenses

01/01 to 06/30/2010

01/01 to 06/30/2009

(1,426,782) (1,203,259) (640,319) (638,507) (1,031,017) (861,900) (1,308,378) (1,419,672) (163,422) (167,890) (517,074) (372,273) (283,062) (180,469) (190,677) (132,621) (207,936) (183,777) (61,225) (51,594) (176,518) (186,631)

(6,006,410) (5,398,593)

Total

InstallationsThird-party services

Data processing and telecommunicationsDepreciation and amortization

Financial system servicesAdvertising, promotions and publications

TravelOtherTotal

TransportationMaterialsSecurity

SubtotalLabor claims (Note 11b)

CompensationChargesWelfare benefitsTraining

h)

01/01 to 06/30/2010

01/01 to 06/30/2009

391,594 119,866

Contingent assets and liabilities and legal liabilities - tax and social security (Note 11b, c and d) 372,513 59,422

Other 19,081 60,444 27,992 189,872

- 857,449 243,291 107,565 662,877 1,274,752

(*) From January 1 to June 30, 2009, this refers basically to the amortization of the goodwill of the Redecard S.A. transaction (Note 21j) in the amount of R$(556,575), and the reversal of the goodwill fully amortized in the consolidated financial statements of December 31, 2008 in the amount of R$ 1,414,026(Note 21j), arising from the disposal of investments in Banco Único S.A. and the spin-off of part of the equity to Itaú BBA S.A.. Additionally, it includes thereversal of the goodwill fully amortized in the consolidated financial statements of December 31, 2008 in the amount of R$ 5,423,344 arising from the spin-off of part of the equity investments in FININVEST and UAM and consequent amortization of this goodwill in ITAUCARD, attributed to the minority interestsin subsidiaries (Note 15e).

Other operating revenues

Total

Reversal of operating provisions

Recovery of charges and expenses Goodwill on investments (*)Other

i)

01/01 to 06/30/2010

01/01 to 06/30/2009

(719,608) (614,442)

(662,497) (628,823)

(46,268) 23,992

(10,843) (9,611)

(700,747) (675,397)

(273,914) (282,214) Recovery of interbank costs (89,181) (113,187)

(5,325) (6,400)

(245,668) (437,124) (2,034,443) (2,128,764)

j)

Provision for health insurance

OtherTotal

Non-operating income – from 01/01 to 06/30/2009 is basically composed of Sale of Visa Inc and Visa Net shares.

Other operating expenses

Provision for contingencies (Note 11b)

Civil

Tax and social security

Claims

Other

Selling - credit cards

a)

8,158,957 8,230,183

(3,263,583) (3,292,073)

490,492 (845,750)

Investments in affiliates 112,222 33,491

Foreign exchange variation on investments abroad 73,331 (842,197) Dividends, interest on external debt bonds and tax incentives 93,299 187,235 Other 211,640 (224,279)

400,920 719,201 Allowance for loan losses (1,400,492) (1,600,135) Excess (insufficiency) of depreciation of leased assets 551,689 1,495,813 Adjustment to market value of trading securities and derivative financial instruments and adjustments from operations in futures markets 31,372 259,077 Legal liabilities - tax and social security, contingent liabilities and restatement of escrow deposits 700,622 (410,984) Realization of goodwill on purchase of investments 738,088 1,033,807 Integration expenditures with ITAÚ UNIBANCO merger 129,836 81,015 Other (350,195) (139,392)

(248,963) (290,154)

(2,621,134) (3,708,776)

Increase (reversal) for the period (151,957) (429,047) Prior periods increase (reversal) 359,779 298,066

207,822 (130,981)

(2,413,312) (3,839,757)

01/01 to 06/30/2010

01/01 to 06/30/2009

PIS AND COFINS (1,350,864) (1,456,862) ISS (350,008) (227,200) Other (138,685) (134,231)

(1,839,557) (1,818,293)

Due on operations for the period 01/01 to

06/30/2010

NOTE 13 - TAXES

I - We show below the Income Tax and Social Contribution due on the operations for the period and on temporarydifferences arising from additions and exclusions:

01/01 to 06/30/2009

Composition of expenses for taxes and contributions

Total income tax and social contribution

Income (expenses) from deferred taxes

Related to temporary differences

(Increase) offset of tax losses/social contribution loss carryforwards

II - Composition of tax expenses:

Total (Note 4o)

Income before income tax and social contribution

Charges (Income tax and social contribution) at the rates in effect (Note 4o)

Permanent (additions) exclusions

Expenses for income tax and social contribution

Temporary (additions) exclusions

Increase/decrease to income tax and social contribu tion charges arising from:

I - The deferred tax asset balance and its changes, segregated based on its origin and disbursements incurred, are represented as follows:

24,035,300 (4,117,951) 4,505,395 24,422,744 24,183,864Income tax and social contribution loss carryforwards 2,954,688 (277,010) 368,837 3,046,515 2,698,735Allowance for loan losses 9,075,148 (1,338,941) 2,650,264 10,386,471 7,922,991

104,340 (104,340) 92,117 92,117 311,582Allowance for real estate 81,012 (14,135) 33,518 100,395 70,615Legal Liabilities - tax and social security 1,776,137 (883,780) 214,672 1,107,029 1,997,866 Provision for contingent liabilities 2,302,423 (271,709) 369,910 2,400,624 2,665,435

Civil 876,738 (177,328) 269,005 968,415 838,316 Labor 839,959 (15,838) 22,479 846,600 837,818 Tax and social security 478,978 (56,197) 78,426 501,207 869,597 Other 106,748 (22,346) - 84,402 119,704

Goodwill on purchase of investments 5,939,065 (704,976) 69,128 5,303,217 6,434,555 Provision for integration expenditures with ITAÚ UNIBANCO merger 338,458 (129,836) - 208,622 384,124 Provision related to health insurance operations 238,396 - 2,130 240,526 214,814 Other non-deductible provisions 1,225,633 (393,224) 704,819 1,537,228 1,483,147

64,319 (35,369) 17,508 46,458 130,51024,099,619 (4,153,320) 4,522,903 24,469,202 24,314,374

928,648 (86,966) - 841,682 1,053,324

Reflected in income and expense accounts

Adjustment to market value of securities and derivative financial instruments (assets and liabilities)

Social contribution for offset arising from Option foresee n in article 8 ofProvisional Measure No. 2,158-35 of 08/24/2001 (Not e 13b lll).

Reflected in stockholders’ equity accounts - adjustment to market value ofavailable-for-sale securitiesTotal (Nota 13b lll)

06/30/2009

DEFERRED TAX ASSETS

b) Deferred Taxes

Increase12/31/2009 06/30/2010Realization /

Reversal

12/31/2009Realization /

ReversalIncrease 06/30/2010 06/30/2009

8,074,905 (65,604) 745,525 8,754,826 7,362,627 Depreciatiion in excess - leasing 7,331,756 - 558,844 7,890,600 6,569,544 Adjustments of operations carried out in futures settlement market 37,996 (3,931) 23,853 57,918 43,808 Adjustment to market value of trading securities and derivative financial instruments 7,168 - 2,161 9,329 46,823 Restatement of escrow deposits and contingent liabilities 601,439 - 72,068 673,507 561,156 Income on sale of permanent asset items and rights 1,340 (175) - 1,165 1,515 Other 95,206 (61,498) 88,599 122,307 139,781

105,407 - 32,907 138,314 197,624 8,180,312 (65,604) 778,432 8,893,140 7,560,251

II - Provision for Deferred Income Tax and Social Contribution balance and its changes are shown as follows:

Total

Reflected in income and expense accounts

Reflected in stockholders’ equity accounts - adjust ment to market value of available-for-sale securities (Note 4c)

III-

Temporary differences

Tax loss/social contribution loss

carryforwardsTotal

2010 6,115,151 456,915 6,572,066 50,326 (861,392) 5,761,000

2011 4,904,037 1,098,634 6,002,671 231,519 (1,552,428) 4,681,762

2012 3,566,942 135,361 3,702,303 280,396 (2,133,880) 1,848,819

2013 2,909,661 102,633 3,012,294 234,167 (1,933,671) 1,312,790

2014 1,830,519 100,670 1,931,189 7,349 (1,176,576) 761,962

Over 2014 2,096,377 1,152,302 3,248,679 37,925 (1,235,193) 2,051,411

Total 21,422,687 3,046,515 24,469,202 841,682 (8,893,140) 16,417,744

Total on June 30, 2009 21,580,362 2,698,735 24,279,097 1,053,324 (7,560,251) 17,772,170 Present value (*) 19,159,788 2,546,118 21,705,906 745,216 (7,767,383) 14,683,739

IV -

(*) The average funding rate, net of tax effects, was used to determine the present value.

The estimate of realization and present value of deferred tax assets and social contribution for offset, arising from Provisional Measure No. 2,158-35 of August 24, 2001 and from the Provision for Deferred Income Tax and Social Contribution existing at June 30, 2010, in accordance with the expected generation of future taxable income, based on the history of profitability and technical feasibility studies, are:

Realization year

Deferred tax assets Social contribution for

offset

In view of the unconstitutionality lawsuit related to the increase in the social contribution rate, established byArticles 17 and 41 of Law No. 11,727 of June 24, 2008, filed on June 26, 2008 by the National Confederation of theFinancial System (CONSIF), deferred tax assets were recorded up to the amount added to the Tax Liabilities, whilethe amount of R$ 1,983,145 is unrecorded (R$ 2,367,646 at 06/30/2009).

Net income in the financial statements is not directly related to taxable income for income tax and socialcontribution, due to differences existing between accounting criteria and tax legislation, besides corporate aspects.Accordingly, we recommend that the trend of the realization of deferred tax assets arising from temporarydifferences, income tax and social contribution loss carryforwards be not used as an indication of future netincome.

Provision for deferred income

tax and social contribution

Net deferred taxes

The projections of future taxable income include estimates related to macroeconomic variables, exchange rates,interest rates, volume of financial operations and services fees, among others, which can vary in relation to actualdata and amounts.

c) Tax and social security contributions

06/30/2010 06/30/2009

1,158,956 1,682,899 3,973,092 700,738 8,893,140 7,560,251 4,639,875 9,538,829

Total 18,665,063 19,482,717

The balance of taxes and social security contributions is composed as follows:

Legal Liabilities - tax and social security (Note 11c)Provision for deferred income tax and social contribution (Note 13b lI)Taxes and contributions payableTaxes and contributions on income payable

a)

06/30/2010 06/30/2009

978,149 1,227,807 251,215 317,817

Allianz Seguros S.A. - 147,329 Serasa S.A. 251,118 161,224 Other 97 9,264

726,934 909,990 BPI 726,934 907,827 Other - 2,163

Other investments 1,182,502 1,061,369 Investments through tax incentives 158,290 164,775 Equity securities 9,147 8,070 Shares and quotas 249,961 120,448 Interest in Instituto de Resseguros do Brasil - IRB 229,699 227,170 Other 535,405 540,906

(Provision for losses) (174,708) (179,215) Total 1,985,943 2,109,961

Foreign

Investment in affiliates

I - Composition of investments

NOTE 14 - PERMANENT ASSETS

Domestic

Investments

33,775 43,143 36,927 40,585

158,925 56,051 Dividends received from Other investments 50,927 12,122

280,554 151,901

II - Equity in earnings of affiliates

Investment in affiliates – ForeignInvestment in affiliates – Domestic

Total

01/01 to 06/30/2009

01/01 to 06/30/2010

Equity in earnings of subsidiaries, not arising from net income

06/30/2009

ACQUISITIONS DISPOSALSDEPRECIATION/AMORTIZATION EXPENSES (3)

OTHER COSTACCUMULATE

D DEPRECIATION

NET BOOK AMOUNT

NET BOOK AMOUNT

REAL ESTATE IN USE 4,133,749 682,797 (37,680) (543,704) 8,560 10,443,616 (6,199,894) 4,243,722 3,969,465

REAL ESTATE IN USE (1) 2,271,886 178,975 (3,249) (146,903) 24,810 4,228,043 (1,902,524) 2,325,519 2,241,539

Land 932,316 83,846 (1,258) - 519 1,015,423 - 1,015,423 817,871

Buildings 776,282 41,662 (140) (50,541) 31,565 2,272,484 (1,473,656) 798,828 597,185

Improvements 563,288 53,467 (1,851) (96,362) (7,274) 940,136 (428,868) 511,268 826,483

OTHER FIXED ASSETS 1,861,863 503,822 (34,431) (396,801) (16,250) 6,215,573 (4,297,370) 1,918,203 1,727,926

Installations 363,231 78,663 (3,681) (89,062) 35,507 823,859 (439,201) 384,658 181,197

Furniture and equipment 372,845 76,802 (1,455) (16,527) (94,475) 668,311 (331,121) 337,190 380,951

EDP systems 915,348 316,583 (19,717) (269,516) 41,521 4,166,098 (3,181,879) 984,219 968,931

Other (communication, security and transportation) 210,439 31,774 (9,578) (21,696) 1,197 557,305 (345,169) 212,136 196,847

INTANGIBLE ASSETS 3,688,077 198,515 (68,354) (512,457) 7,422 5,063,927 (1,750,724) 3,313,203 3,711,087

RIGHTS FOR ACQUISITION OF PAYROLLS (2) 1,683,953 42,195 (68,354) (331,970) - 2,440,055 (1,114,231) 1,325,824 2,020,695

OTHER INTANGIBLE ASSETS 2,004,124 156,320 - (180,487) 7,422 2,623,872 (636,493) 1,987,379 1,690,392

Association for the promotion and offer of financial products and services

1,388,050 61,503 - (83,872) 1,420 1,400,999 (33,898) 1,367,101 1,109,277

Expenditures on acquisitions of software 417,785 69,467 - (81,223) 4,609 901,886 (491,248) 410,638 351,137

Right to manage investment funds 190,505 - - (15,065) 6,210 283,469 (101,819) 181,650 227,869

Goodwill on purchase of investments (Note 2a and b) - 24,700 - - - 24,700 - 24,700 -

Other intangible assets 7,784 650 - (327) (4,817) 12,818 (9,528) 3,290 2,109

GRAND TOTAL 7,821,826 881,312 (106,034) (1,056,161) 15,982 15,507,543 (7,950,618) 7,556,925 7,680,552

(3) Amortization expenses of the rights for acquisition of payrolls and partnerships are disclosed in the expenses on financial operations.

(2) Represents the recording of amounts paid for acquisition of rights to provide services of payment of salaries, proceeds, retirement and pension benefits, and similar benefits.

(1) Includes amounts pledged in guarantee of voluntary deposits (Note 12b);

06/30/2010NET

BALANCE AT

12/31/2009

CHANGES

b) Fixed and intangible assets

NOTE 15 – STOCKHOLDERS’ EQUITY

a) Shares Capital comprises 4,095,427,813 book-entry shares with no par value, of which 2,081,169,523 are common and 2,014,258,290 are preferred shares without voting rights, but with tag-along rights, in the event of the public offer of common shares, at a price equal to 80% of the amount paid per share with voting rights in the controlling stake, as well as a dividend at least equal to that of the common shares.

b) Dividends

Stockholders are entitled to a mandatory dividend of not less than 25% of annual net income, which is adjusted according to the rules set forth in Brazilian Corporate Law. The ASM held on April 30, 2010 and the Executive Board Meeting held on May 27, 2010 approved on an additional dividends of R$ 49,145 and R$ 15,153, respectively.

5 monthly installments of R$ 0.012 per share paid from February to June 2010 245,725

Provided for (*)1 installment of R$ 0.012 per share to be paid in July 2010 49,145 Additional to be declared 335,112

629,982 (*) Recorded in Other Liabilities - Social and Statutory.

TOTAL

In the period, dividends were paid or provided for as follows:

Paid

06/30/2010 06/30/2009704,633 792,134 112,556 112,556

2,655 2,655 565,063 565,063

883 88,366 23,476 23,494

3,576,487 306,798 329,041 83,142

3,247,446 223,656 (*) Recorded to establish funds for exercizing the preemptive right to subscription of capital increases in subsidiary and affiliated companies, future

incorporation of these funds into capital and the payment of iterim dividends, as provided for in the by-laws.

Granted options recognized

Revenue reservesLegalSpecial (*)

Capital reserves

c) Capital and revenue reserves

Reserves from tax incentives and restatement of equity securities and other

Special Reserve (Article 2 - Law No. 8,200/91)Premium on subscription of sharesCapital rearrangement

d)

01/01 to 06/30/2010

01/01 to 06/30/2009

06/30/2010 06/30/2009

ITAÚ UNIBANCO 2,652,557 1,662,835 44,069,485 40,787,881 Amortization of goodwill 1,008,715 4,709,438 (7,001,813) (9,039,004) Unrealized income (loss) 574 2,238 (4,885) (6,541) ITAÚ UNIBANCO CONSOLIDATED 3,661,846 6,374,511 37,062,787 31,742,336

Reconciliation of Net Income and Stockholders’ Equity

Net Income Stockholders’ equity

e)

06/30/2010 06/30/200901/01 to

06/30/201001/01 to

06/30/2009

1,158,167 1,091,662 (44,982) (31,501)

711,167 773,070 - -

708,570 677,136 (363,421) (337,801)

- 115,036 (6,773) (11,100)

201,726 106,347 (34,632) (4,729)

Biu Participações S.A. 96,311 - (12,439) -

- 73,083 - (5,546)

59,142 60,602 894 (782)

16,924 16,490 (483) (550)

28,141 28,156 (321) (2,652)

3,845,132 3,714,884 (99,308) (221,162)

471,231 351,611 (118,553) 12,804

(714,443) (1,047,575) (1,278,925) 2,664,918

1,094,435 182,634 (49,635) (8,527)

7,676,503 6,143,136 (2,008,578) 2,053,372 (1)

(2)

Total

Biogeração de Energia S.A.

Represented by redeemable preferred shares - issued on December 31, 2002 by Itau Bank Ltd., in the amount of US$ 393,072thousand, with maturity on March 31, 2015 and semiannual dividends calculated based on LIBOR plus 1.25% p.a.

Banco Itaucard S.A. (2)

Other

Minority interests are represented substantially by preferred shares. The preferred shares entitle their stockholders to a differentiateddistribution of profits and dividends. At March 31, 2009, interest on capital was paid in the amount of R$ 6,594,234. In the result, thisincludes goodwill in the amount of R$ 3,418,826, net of tax effects, arising from the corporate restructuring and allocated to the creditcard segment.

Itaú XL Seguros Corporativos S.A. (Note 2a)

Itaú Gestão de Ativos S.A.

Itauseg Participações S.A.

Itaú Corretora de Valores S.A.

Minority interest in subsidiaries

Investimentos Bemge S.A.

Stockholders’ equity Results

Itau Bank, Ltd. (1)

Unibanco Participações Societárias S.A.

Três "B" Empreendimentos e Participações Ltda.

Redecard S.A.

Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento

NOTE 16 - RELATED PARTIES Transactions between related parties are carried out at amounts, terms and average rates in accordance with normal market practices during the period, as well as under reciprocal conditions. Transactions between companies included in consolidation were eliminated from the consolidated financial statements and take into consideration the lack of risk. The unconsolidated related parties are the following: - The parent company ITAÚSA, its controlling companies and non-financial subsidiaries, especially Itautec S.A.,

Duratex S.A., Elekeiroz S.A. and Itaúsa Empreendimentos S.A.; - Banco Itaú BBA S.A. and the subsidiaries in Chile and Uruguay; - Fundação Itaubanco, FUNBEP – Fundo de Pensão Multipatrocinado, Caixa de Previdência dos Funcionários do

BEG (PREBEG), Fundação Bemgeprev e Itaubank Sociedade de Previdência Privada, UBB – Prev Previdência Complementar and Fundação Banorte Manuel Baptista da Silva de Seguridade Social, closed-end private pension entities, that administer supplementary retirement plans sponsored by ITAÚ UNIBANCO and/or its subsidiaries, as described in Note 17a; and

- Fundação Itaú Social, Instituto Itaú Cultural, Instituto Unibanco, Instituto Assistencial Pedro Di Perna, Instituto

Unibanco de Cinema and Associação Clube “A”, entities sponsored by ITAÚ UNIBANCO to act in their respective areas of interest, as described in Notes 20d to 20i.

06/30/2010 06/30/200901/01 to

06/30/20101/01 to

06/31/2009Securities purchased under agreements to resell 8,972,143 9,919,856 286,016 262,537

Banco Itaú BBA S.A. 8,972,143 9,919,856 286,016 262,537

Interbank investments 54,542,028 56,694,747 2,360,598 3,028,877 Banco Itaú BBA S.A. 50,415,899 53,235,566 2,249,197 2,950,293 Itaú Unibanco Holding S.A. 3,177,246 861,937 103,022 32,369 Banco Itaú-BBA S.A. - Nassau Branch 948,883 2,186,095 8,379 43,551 Other - 411,149 - 2,664

Securities and derivative financial instruments 2,237,213 2,771,680 1,179,288 1,676,894 Banco Itaú BBA S.A. 1,933,041 2,659,136 912,247 1,560,340 Banco Itaú Chile 171,418 - 80,252 38,060 Other 132,754 112,544 186,789 78,494

Foreign exchange portfolio - Asset Position 1,602,855 3,327,900 12,869 43,943 Banco Itaú BBA S.A. 1,158,462 3,154,273 9,864 42,899 Banco Itaú-BBA S.A. - Nassau Branch 214,616 173,165 1,911 1,044 Banco Itaú Chile 229,777 462 1,094 -

Deposits (38,523,060) (31,315,309) (1,269,128) (1,661,036) Banco Itaú BBA S.A. (16,241,520) (22,650,325) (859,778) (1,474,134) Itaú Unibanco Holding S.A. (10,373,775) (7,017,438) (396,327) (172,784) Banco Itaú BBA S.A. - Nassau Branch (10,090,051) (1,489,961) (13,016) (13,175) Other (1,817,714) (157,585) (7) (943)

Repurchase agreements (43,191,515) (23,261,381) (1,561,755) (996,344) Banco Itaú BBA S.A. (42,531,228) (22,214,721) (1,510,342) (985,828) Banco Itaú BBA S.A. - Nassau Branch (606,400) (827,298) (24,844) (5,166) Itaú Unibanco Holding S.A. (53,887) (218,344) (2,241) (5,269) Other - (1,018) (24,328) (81)

Derivative financial instruments (1,460,683) (1,796,890) (2,248,023) (5,342,587) Banco Itaú BBA S.A. (1,387,999) (1,713,326) (1,969,484) (4,901,779) Other (72,684) (83,564) (278,539) (440,808)

Foreign exchange portfolio - Liability Position (1,868,091) (3,602,934) (36,573) (113,650) Banco Itaú BBA S.A. (1,158,427) (3,224,587) (24,100) (103,790) Banco Itaú BBA S.A. - Nassau Branch (360,435) (355,468) (8,595) (9,130) Banco Itaú Chile (347,588) (22,879) (3,878) (730) Other (1,641) - - -

Donation expenses - - (21,025) (22,709) Instituto Itaú Cultural - - (20,917) (21,560) Other - - (108) (1,149)

Data processing expenses - - (135,630) (126,296) Itautec S.A. - - (135,630) (126,296)

The transactions with these related parties, besides those already mentioned above, are basically characterized by:

ASSETS (LIABILITIES) REVENUE (EXPENSES)

NOTE 17 - BENEFITS TO EMPLOYEES

Under the terms of CVM Resolution No. 371, dated December 13, 2000, we present the policies adopted by ITAÚ UNIBANCO and its subsidiaries (ITAÚ UNIBANCO CONSOLIDATED) regarding benefits to employees, as well as the accounting procedures adopted:

a) Supplementary retirement benefits:

ITAÚ UNIBANCO and its subsidiary companies sponsor the following supplementary retirement plans:

Entity Benefít planSupplementary retirement plan - PAC (1)Franprev benefit plan - PBF (1)002 Benefit Plan – PB002 (1)Itaulam Basic Plan - PBI (1)Itaulam Supplementary Plan - PSI (2) Itaubanco Defined Contribution Plan (3) (4)

Fundação Bemgeprev Supplementary Retirement Plan – Flexible Premium Annuity (ACMV) (1)Funbep I Benefit Plan (1)Funbep II Benefit Plan (2)

Caixa de Previdência dos Funcionários do Banco Beg - Prebeg Prebeg Benefit Plan (1)Itaú Defined Benefit Plan (1)Itaú Defined Contribution Plan (2)Redecard Basic Retirement Plan (1)Redecard Supplementary Retirement Plan (2)

Itaubank Sociedade de Previdência Privada Itaubank Retirement Plan (3)Unibanco Pension Plan (3)Basic Plan (1) IJMS Plan (1)

Fundação Banorte Manoel Baptista da Silva de Seguridade Social Benefit Plan II (1)(1) Defined benefit plan;(2) Variable contribution plan;(3) Defined contribution plan.

Fundação Itaubanco

Itaú Fundo Multipatrocinado

(4) The Itaubanco Defined Contribution Plan was set up as a result of the partial spin-off of the Supplementary retirement plan - PAC, and is being offered toformer participants of the latter, including former employees still contributing to the plan and those employees who have opted for this plan, or when this option ispresumed in view of the deferred proportional benefit, who are not receiving supplementary retirement by the PAC. Those participants who have not joined theItaubanco Defined Contribution Plan, as well as those contributing to the PAC, will remain in this latter, without any continuity, and will have their vested rightsguaranteed. As set forth in the Itaubanco Defined Contribution Plan regulation, the transaction and novation period ended on May 8, 2010. Accordingly, theeffects arising from the partial spin-off of the PAC are presented in Note 17d.

Funbep Fundo de Pensão Multipatrocinado

Múltipla - Multiempresas de Previdência Complementar

UBB-PREV - Previdência Complementar

The basic purpose of the defined benefit and variable contribution plans is to grant a benefit that, in general, provide a life annuity benefit, and may be converted into survivorship annuities, according to the plan's regulation. In case of defined contribution plan, the benefit is calculated based on the accumulated balance at the eligibility date, according to the plan’s regulation, which does not require actuarial calculation. All of these plans are closed to new participants. As regards the new employees hired after the closing, they have the option to participate in a defined contribution plan (PGBL) managed by Itaú Vida e Previdência S.A. During the period, the contributions made totaled R$ 28,363 (R$ 21,547 from January 1 to June 30, 2009). The contribution rate increases based on the beneficiary’s salary.

b) Post-employment benefits:

ITAÚ UNIBANCO HOLDING do not offer other post-employment benefits, except in those cases arising from maintenance obligations according to the acquisition agreements signed by ITAÚ UNIBANCO, under the terms and conditions established, in which health plans are totally or partially sponsored for retired workers and beneficiaries. During the period, the contributions made totaled R$ 2,792 (R$ 2,933 from January 1 to June 30, 2009). The contribution rate increases based on the beneficiary’s age.

c) Net amount of assets and actuarial liabilities of the benefit plans:

The net assets and actuarial liabilities, which consider the actuarial obligations, calculated in conformity with the criteria established by CVM Resolution No. 371 dated December 13, 2000, are summarized below:

06/30/2010 (1) 06/30/2009Net assets of the plans 10,021,003 13,314,247 Actuarial liabilities (9,004,328) (11,796,801)Surplus (2) 1,016,675 1,517,446 (1) Includes the effects of the partial spin-off of PAC (Note 17 a);

In addition to the reserves recorded by the plans, the sponsors record provisions in the amount of R$135,098 (R$121,510 at June 30, 2009) (Note 12c) to cover possible insufficient actuarial liabilities.

(2) According to paragraph 49g of the attachment to CVM Resolution No. 371 of December 13, 2000, the net asset was notrecognized.

d) Changes in net assets, actuarial liabilities, an d surplus

AssetsActuarial liabilities Surplus Assets

Actuarial liabilities

Surplus

Present value – beginning of the period 14,536,89 1 (12,090,146) 2,446,745 12,775,978 (11,223,791) 1,552,187 Adjustments in the period (1) - - - - (127,661) (127,661)

Effects of the partial spin-off of PAC (3) (5,143,981) 3,576,321 (1,567,660) - - - Inclusion of Itaú Defined Benefit Plan (Credicard Itaú/Orbitall) 130,671 (123,330) 7,341 - - - Expected return on assets/ Cost of current service + Interest 764,211 (642,325) 121,886 771,789 (711,828) 59,961 Benefits paid (275,152) 275,152 - (266,479) 266,479 - Contributions of sponsors/participants 29,705 - 29,705 52,433 - 52,433 Gains/(losses) in the period (2) (21,342) - (21,342) (19,474) - (19,474) Present value – end of the period 10,021,003 (9,004,328) 1,016,675 13,314,247 (11,796,801) 1,517,446 (1) Effect corresponding to the reclassification of the option of former employees;

(2) Losses in assets correspond to the actual earnings obtained below the expected return rate of assets.

DESCRIPTION01/01 to 06/30/2010 01/01 to 06/30/2009

(3) Arising from the partial spin-off of PAC, with the resulting set-up of Itaubanco Defined Contribution Plan, according to Note 17a. Under Itaubanco Defined Contribution Plan, a Pension Fund was set up in the amount of R$ 1,483,000 to ensure the maintenance of future contributions to participants of that plan.

Itaú Unibanco Holding RedecardDiscount rate 10.24% p .a. 11.45 % p.a.

Expected return rate on assets 12.32 % p.a. 12.92 % p.a.

Mortality table (1) AT-2000 AT-2000

Turnover (2) Itaú Exp. 2003/2004 Exp. Towers Watson

Future salary growth 7.12 % p.a. 6.50 % p.a.

Growth of the pension fund and social security benefits 4.00 % p.a. 4.50 % p.a.

Inflation 4.00 % p.a. 4.50 % p.a.Actuarial method Projected Unit Credit (3) Projected Unit Credit (3)

e) Main assumptions used in actuarial valuation:

(1) The mortality tables adopted correspond to those disclosed by SOA – Society of Actuaries, the North-American Entity which corresponds toIBA – Brazilian Institute of Actuarial Science, which reflects a 10% increase in the probabilities of survival as compared to the respective basictables.

(2) The turnover assumption is based on the effective experience of ITAÚ UNIBANCO, resulting in an average of 1.2% p.a. based on 2003/2004experience.(3) Using the Projected Unit Credit, the mathematical reserve is determined by the current projected benefit amount multiplied by the ratiobetween the length of service in the company at the assessment date and the length of service that will be reached at the date when the benefit isgranted. The cost is determined taking into account the current projected benefit amount distributed over the years that each participant isemployed.

06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009 06/30/2010 06/30/2009

1,342,829 820,857 99,597 108,182 1,559,726 1,479,215 3,472,983 2,372,298 181,243 197,373 860,740 316,226 4,410,458 3,500,523 4,083,434 7,290,644 171,786 304,029 2,585,893 3,848,099 4,597,858 5,920,708 114,979 210,291 - 21,398 6,142,500 11,637,304

14,040,846 15,293,836 201,140 312,168 1,387,600 1,222,942 4,712,516 3,581,663 368,901 295,340 - 113,677 18,583,290 19,155,458 14,784,388 3,523,754 1,354,480 1,147,078 5,199,406 5,777,355 276,524 370,988 1,107,095 763,643 - - 22,631,329 10,719,825 11,318,521 468,967 73,217 81,078 5,759,870 13,128,453 562,791 551,697 49,046 28,983 - 412,601 11,770,119 13,846,578

410,774 297,832 372,861 276,999 175,411 310,352 869,618 706,684 349,962 342,365 110,886 57,486 2,286,350 1,989,217

Investments - - 2,068 2,165 372,949 468,374 40,333 42,322 782 540 357,780 865,307 732,215 916,152 Banco BPI S.A. - - - - 370,736 462,992 - - - - 356,197 444,835 726,933 907,827 Other investments - 2,068 2,165 2,213 5,382 40,333 42,322 782 540 1,583 420,472 5,282 8,325

Fixed and intangible assets 24,927 31,083 59,877 56,992 197,991 240,575 1,491 227 16,136 16,000 21,658 4,007 322,128 348,950 46,005,719 27,726,973 2,335,026 2,288,691 17,238,846 26,475,365 14,534,114 13,546,587 2,188,144 1,854,535 1,351,064 1,790,702 66,878,389 62,114,007

21,100,500 10,697,242 1,792,614 1,556,992 7,295,520 8,146,365 1,637,165 3,252,990 1,720,352 1,513,676 5 52,588 24,269,919 17,706,966 Demand deposits 4,990,781 2,765,984 447,793 419,403 2,886,952 2,945,931 1,198,859 1,448,264 595,601 477,827 - - 5,558,556 5,685,882 Savings deposits - - 460,635 392,835 - - - - 788,005 680,361 - - 1,248,640 1,073,196 Interbank deposits 4,013,459 1,634,922 52,683 15,942 2,146,102 1,562,910 222,892 433,145 79,485 95,461 - - 2,846,237 1,629,619 Time deposits 12,096,260 6,296,336 831,503 728,812 2,262,466 3,637,524 215,414 1,371,581 257,261 260,027 5 52,588 14,616,486 9,318,269

3,187,713 2,493,717 66,204 224,725 - - 869,641 1,381,096 - - - - 3,790,996 2,595,610 33,951 361,710 - - 1,714,162 1,838,452 2,555,866 2,071,855 - - - - 4,303,865 4,212,067

2,115,766 5,058,634 34,732 10,742 618,655 1,250,081 64,843 5 24,159 3,990 35,736 7,754 2,857,492 6,176,694 708,420 940,096 427 801 181,189 174,175 1,082,961 774,757 - - - - 954,169 899,647

Foreign exchange portfolio 11,313,766 485,528 72,763 81,084 5,767,561 13,103,812 558,915 552,649 49,138 28,809 - 415,141 11,768,817 13,841,822 2,121,644 2,787,882 209,997 214,950 270,430 169,898 863,577 1,010,241 102,044 106,306 73,571 51,486 3,565,535 4,273,618

982 2,040 - - 11,888 14,844 292 460 108 39 3,221 - 16,492 17,382 - - 821 852 37 151 30 - - - 9 11 131 157

- Capital and reserves 5,011,423 4,561,514 161,480 187,379 1,321,057 1,778,843 6,957,232 4,477,733 245,483 159,164 1,258,739 1,247,866 14,915,545 11,957,810 Net income 411,554 338,610 (4,012) 11,166 58,347 (1,256) (56,408) 24,801 46,860 42,551 (20,217) 15,856 435,428 432,234

46,005,719 27,726,973 2,335,026 2,288,691 17,238,846 26,475,365 14,534,114 13,546,587 2,188,144 1,854,535 1,351,064 1,790,702 66,878,389 62,114,007

Income from financial operations 601,389 725,090 123,510 155,795 72,013 351,534 26,052 141,424 84,376 83,726 (76,379) 9,820 807,307 1,418,538 Expenses on financial operations (166,272) (345,202) (35,204) (45,659) (7,635) (284,505) (65,860) (123,253) (15,605) (17,820) (999) (1,215) (276,422) (767,911) Result of allowance for loan losses 3,125 (11,875) (9,434) (14,805) 13,799 (6,207) - - (4,241) (7,585) - - 3,250 (40,472) Gross income from financial operations 438,242 368,013 78,872 95,331 78,177 60,822 (39,808) 18,171 64,530 58,321 (77,378) 8,605 534,135 610,155 Other operating revenues/expenses (26,688) (1,460) (89,778) (71,206) 1,563 (44,267) (16,024) 14,949 (13,107) (12,282) 73,226 14,282 (63,140) (100,372) Operating income 411,554 366,553 (10,906) 24,125 79,740 16,555 (55,832) 33,120 51,423 46,039 (4,152) 22,887 470,995 509,783 Non-operating income - - 7,032 526 (93) (456) - 149 1,231 1,016 (98) (216) 8,072 932 Income before taxes on income and profit sharing 411 ,554 366,553 (3,874) 24,651 79,647 16,099 (55,832) 33,269 52,654 47,055 (4,250) 22,671 479,067 510,715 Income tax - (27,943) - (9,662) (21,299) (14,114) - (762) (5,794) (4,504) (15,967) (3,640) (43,060) (60,623) Statutory participation in income - - - (3,732) - (3,240) (575) (7,706) - - - (3,175) (574) (17,856) Minority interest in subsidiaries - - (138) (91) (1) (1) (1) - - - - - (5) (2)

411,554 338,610 (4,012) 11,166 58,347 (1,256) (56,408) 24,801 46,860 42,551 (20,217) 15,856 435,428 432,234 (1)(2)

(3)

(4)

(5)

(6)

(7)

Liabilities

Other assets

Total

Permanent assets

Interbank investmentsSecurities Loan, lease and other credit operationsForeign exchange portfolio

AssetsCurrent assets and long-term receivablesCash and cash equivalents

Paraguay (5)

Current and long-term liabilities

BFB Overseas N.V., BFB Overseas Cayman, Ltd., Itau Bank Ltd., ITB Holding Ltd., Jasper International Investment LLC, Unibanco Cayman Bank Ltd., Unicorp Bank & Trust Ltd., Unibanco Securities, Inc, UBB Holding Company, Inc., Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd., Rosefield Finance Ltd. and only on 06/30/2010, UBT Finance S.A.;

BIEL Holdings AG, IPI - Itaúsa Portugal Investimentos, SGPS Lda. (51%), Itaú Europa Luxembourg Advisory Holding Company S.A., Itaúsa Europa - Investimentos, SGPS, Lda., Itaú Europa, SGPS, Lda., Itaúsa Portugal - SGPS, S.A., Banco Itaú Europa, S.A., BIE - Bank & Trust, Ltd., Banco Itaú Europa Luxembourg S.A., BIECayman, Ltd., Banco Itaú Europa International, Bie Bank & Trust Bahamas Ltd., Itaú Europa Securities Inc., Itaú Madeira Investimentos, SGPS, Ltda, BIE Directors, Ltd, BIE Nominees, Lda, Fin Trade, only on 06/30/2010, Kennedy Director International Services S.A., Federal Director International Services, S.A., Bay State CorporationLimited and Cape Ann Corporation Limited; and only on 06/30/2009, Unibanco - União de Bancos Brasileiros (Luxembourg) S.A., Brazcomp Limited, Banco Itaú Europa Fund Management Company, S.A and BIEL Fund Management Company S.A.;

Deposits received under securities repurchase agreements

Itaú Unibanco S.A. - Grand Cayman, New York, Tokyo and Nassau Branches and Unibanco Grand Cayman Branch;

BorrowingsDerivative financial instruments

Other liabilities

Deposits

Banco Itaú Argentina S.A,Itaú Asset Management S.A.Sociedad Gerente de Fondos Comunes de Inversión, Itrust Servicios Financieros S.A. and Itaú Sociedad de Bolsa S.A.

Afinco Americas Madeira, SGPS, Soc. Unipessoal Ltda., Zux Cayman Company Ltd., Zux SGPS, Lda., Agate SARL, Topaz Holding Ltd., Itaú USA Inc, Itaú International Investment LLC, Albarus S.A., Banco Del Paraná S.A., Amethyst Holding Ltd., Garnet Corporation, Itaú International Holding Limited (new company’s name of ItaúSecurities Holding), Spinel Corporation, Tanzanite Corporation, Itaú Asia Securities Ltd., Líbero Trading International Ltd., IPI - Itaúsa Portugal Investimentos, SGPS Lda. (49%), Itaú USA Securities, Inc., Itaú Middle East Securities Limited, Unipart B2B Investments, S.L., Tarjetas Unisoluciones S.A. de Capital Variable, Proserv -Promociones Y Servicios S.A. de C. V., only on 06/30/2010, Itau UK Securities Ltd and Itaú Japan Asset Management Ltd;

Deferred incomeMinority interest in subsidiariesStockholders’ equity

TotalStatement of income

Net income (loss)

Interbanco S.A;

Information on foreign consolidated presents balances net of eliminations from consolidation.

NOTE 18 - INFORMATION ON FOREIGN SUBSIDIARIES

Foreign branches (1) Consolidated Itaú Argentina (2 ) Itaú Europa Consolidated (3) Consolidated Cayman ( 4) Other foreign companies (6) Foreign consolidated (7)

Funds from acceptances and issuance of securities

NOTE 19 – RISK MANAGEMENT

Risk management is considered an essential tool for optimizing the use of capital and selecting the best business opportunities, in order to obtain the best risk and return ratio for its stockholders, being performed by ITAÚ UNIBANCO HOLDING (the parent company of ITAÚ UNIBANCO) through its Management Committees. The risk appetite management is centralized in one of these committees, being responsible for releasing general policies and the consolidated risk assessment, whereas the operational management is carried out by committees specific to each type of risk that establish parameters to be followed by the business areas, which in turn are monitored independently by the control area. This process is continuous, permanently reviewed and supports the Group’s strategies. Further details on the risk control process can be found on the website (www.itau-unibanco.com.br/ir), in the following route: Corporate Governance/Risk Management. I - Market Risk

Possibility of incurring losses arising from the variation in the market values of positions held by a financial institution, as well as from its financial margin, including risks of transactions subject to variations in foreign exchange and interest rates, and share and commodities prices.

The risk control process starts with the setting of limits, approved by the Financial Risk Management Committee, responsible for the market risk management, based on the risk appetite and financial capacity of each main unit. The market risk is controlled by the centralized risk control area, which carries out daily measurement, assessment and reporting activities by means of control units set in the Legal Entities. Additionally, it carries out the monitoring, assessment and consolidated reporting of market risk information, aiming at providing input for the Management Committee’s follow-up and compliance with the Brazilian regulatory body. The market risk control and management process is submitted to periodic reviews aimed at keeping it aligned with the best market practices and adhering to the continuous improvement processes at ITAÚ UNIBANCO HOLDING.

Value at Risk (VaR)

The risk assessment process quantifies the exposure to and the appetite for risk using the risk limits based on statistical criteria (VaR Statistical: level of confidence at 99% - is a statistical measure that estimates the expected potential maximum economic loss under regular market conditions, taking into consideration the time period and confidence level), Stress simulations (VaR Stress – is a measure that estimates the loss under extreme market conditions based on stress scenarios) and allocated economic capital. The transactions of commercial bank activities and strategic positions are managed using assessments of economic risk and simulations of accounting exposures. Directional trading operations (operations aimed at finding the best market options, in order to take advantage of imperfections in the definition of prices and rates, in relation to the company's expectations), performed by proprietary desks, are mainly controlled by VaR Stress / VaR Statistical measures and loss prevention limits. The limits and exposure to market risks are relatively low as compared to the company’s stockholders’ equity, according to the diversified management of risks. In June 2009 the Total VaR Global of ITAÚ UNIBANCO HOLDING was R$ 86.2 million (R$ 76.5 million in March 2010). Sensitivity of portfolio in relation to market risk factors In compliance with CVM Instruction No. 475 of December 17, 2008, Itaú Unibanco Holding carried out a sensitivity analysis by market risk factors considered relevant to which the group was exposed. Each market risk factor was subject to a sensitivity level, with shock applications in approximately 25% (scenario II) and approximately 50% (scenario III), and the biggest losses arising, by risk factor, in each scenario, were stated with impact on result, net of tax effects, by providing a vision of the ITAÚ UNIBANCO HOLDING exposure in derivatives under exceptional scenarios.

In accordance with the operations classification criteria set forth in BACEN Resolution No. 3,464/07 and Circular No. 3,354/07 and in the New Capital Accord – Basel II, the analysis was fully applied to the trading and banking portfolios, which exposures will have significant impacts on the company’s current result. The outcome of the sensitivity analysis, with correlation effects among the risk factors in the trading portfolio and net of tax effects, points out to a mark-to-market sensitivity of R$ 218 million and R$ 436 million for those scenarios with variations of 25% and 50%, respectively. In the consolidated portfolio (trading + banking), sensitivity is R$ 313 million and R$ 625 million for those scenarios with variations of 25% and 50%, respectively. The sensitivity analysis shown above do not predict the dynamics of the operation of the risk and treasury areas, because once loss related to positions is found, risk mitigating measures are quickly taken, minimizing the possibility of significant losses. The method, parameters and assumptions are in the Management Discussion and Analysis Report (www.itauunibanco.com.br/ri). ITAÚ UNIBANCO HOLDING’s Market Risk Management Policy, based on BACEN’s guidelines and the Basel Committee’s concepts, is a set of principles that drive its strategy towards control and management of market risk of all Business Units and Legal Entities of the Group. It is on the website (www.itau-unibanco.com.br/ri) in the route: Corporate Governance/Regulations and Policies/Operational Risk Management Policy. II - Credit Risk Possibility of incurring losses in connection with the breach by the borrower or counterparty of the respective agreed-upon financial obligations, devaluation of loan agreement due to downgrading of the borrower’s risk rating, reduction in gains or compensation, advantages given upon renegotiation and recovery costs. ITAÚ UNIBANCO HOLDING’s management is performed with the objective of maximizing the risk and return ratio of its assets, maintaining the credit portfolio quality at levels appropriate to the market segments in which it is operating. The strategy is aimed at creating value to its stockholders at levels higher than the minimum return value adjusted to risk. ITAÚ UNIBANCO HOLDING establishes its credit policy based on internal factors, such as the client rating criteria and the portfolio development analysis, the registered default levels, the incurred return rates, the portfolio quality and the allocated economic capital; and external factors, related to the economic environment in Brazil and abroad, including market share, interest rates, market default indicators, inflation, consumption increase/decrease. ITAÚ UNIBANCO HOLDING’s centralized process for making decisions and establishing a credit policy guarantees the synchrony of credit actions and optimization of business opportunities. In retail, decisions are made based on scoring models that are continuously followed up by evaluating the result of their application in groups to which credits were granted. In wholesale, the several committees are subordinated to the Management Committee, responsible for the credit risk management through a structure of approval levels that ensures the detailed observation of transaction risk, as well as the necessary timing and flexibility in its approval. To protect the institution against losses arising from loan operations, ITAÚ UNIBANCO HOLDING determines a provision level commensurate with the risk incurred in each operation through analyses that consider the aspects which determine the client’s credit risk. For each operation, the assessment and rating of the client/economic group, the operation rating and status of the operation default are taken into account. Additionally, ITAÚ UNIBANCO HOLDING recognizes a provision to cover possible additional losses that may arise due to any reversal of the economic cycle. This provision is usually quantified based on the historic behavior of credit portfolios in economic crisis situations (Note 7d).

The set of exposures, probabilities of default and the expected recovery of transactions are included in a capital model that calculates for extreme situations the Group’s capital requirement at a safety level of 99.99%.

III- Operational Risk

Possibility of incurring losses arising from failure, deficiency or inadequacy of internal processes, personnel and systems, or external events. Includes the legal risk, associated with the inadequacy or deficiency in agreements signed by the institution, as well as sanctions for failing to meet legal provisions and compensation for damages to third parties arising from activities performed by the institution. The increasing sophistication of banking business environment and the development of technology make the risk profiles of organizations more complex, clearly outlining this operational risk class, which management is not a new practice, but requires now a specific structure, different from those traditionally adopted for credit and market risks. In line with the principles of CMN Resolution No. 3,380, of June 29, 2006, ITAÚ UNIBANCO HOLDING formulated a policy on operational risk management, approved by its Audit Committee and ratified by its Board of Directors, to be followed by its local and foreign subsidiaries. This policy comprises a set of principles, procedures and tools to enable the company to make permanent adjustments to management in view of the nature and complexity of products, services, activities, processes and systems. The structure formalized in this policy establishes procedures for the identification, assessment, monitoring, control, mitigation and communications related to operational risks, and the roles and responsibilities of the bodies that participate in this structure. The Central Bank of Brazil’s legislation compelling financial institutions to allocate capital for operating risk came into effect as from July 1, 2008. ITAÚ UNIBANCO HOLDING opted for the use of the Alternative Standardized Approach. In addition to this structure, ITAÚ UNIBANCO HOLDING uses the managerial model of economic assessment by business line with the quantification of operational risks incurred through statistical models that enables the recognition of a provision for expected losses and capital allocation for unexpected losses (VaR at a confidence level of 99.9%). The description of the structure for the operational risk management is available on the website (www.itau-unibanco.com.br/ir), in the route: Corporate Governance/ Regulations and Policies/Operating Risk Management Policy.

IV - Liquidity Risk Possibility of occurring imbalances between tradable assets and falling due liabilities - "mismatch" between payments and receipts - which may affect the company’s payment capacity, taking into consideration the different currencies and payment terms and their rights and obligations. For managing cash liquidity in local and foreign currency, the company makes assumptions about future disbursements and receipts, based on statistical and economic and financial models, daily monitored by the control and liquidity management areas. As part of the daily controls, limits for minimum cash and liabilities concentration are established to anticipate actions to ensure comfortable and profitable cash levels.

V - Subscription Risk Risk arising from an adverse economic situation, which is contrary to the insurance company’s expectations when it establishes its subscription policy, and uncertainties existing in the estimate of reserves.

Analogous to Basel II, the International Association of Insurance Supervisors (IAIS) instructs that insurance companies should have a risk management system to supplement the system of minimum capital and solvency margin. ITAÚ UNIBANCO HOLDING has been using models for managing its insurance operations since 2006 and anticipated the capital allocation legislation, SUSEP Resolution No. 178, which privileges institutions that adopt the internal models of risk management. The comprehensiveness of internal models goes beyond the lines set forth by the regulatory body and practically includes the whole universe of insurance-related products.

NOTE 20 – ADDITIONAL INFORMATION c) Insurance policy - ITAÚ UNIBANCO and its subsidiaries, despite the low risk exposure due to a physical

non-concentration of their assets, have the policy to guarantee their assets at amounts considered sufficient to cover possible claims.

b) Investment funds and managed portfolios - ITAÚ UNIBANCO and its subsidiaries manage funds of

privatization, fixed-income, shares, open portfolio shares, investment clubs, its customers' and Group portfolios, domestic and foreign, in the amount of R$ 344,688,727 (R$ 304,608,811 at 06/30/2009), represented by 18,540 funds and managed portfolios (12,304 at 06/30/2009).

c) Funds from Consortia - ITAÚ UNIBANCO, through its subsidiaries, manages funds from consortia

amounting to R$ 2,808,021 (R$ 2,116,784 at 06/30/2009) related to Group Liabilities Arising from Contributions, and this is represented by 140,107 active participants (115,649 at 06/30/2009).

d) Fundação Itaú Social - ITAÚ UNIBANCO is the main sponsor of Fundação Itaú Social, the objectives of

which are: 1) managing the “Itaú Social Program”, which aims at coordinating the organization’s role in projects of interest to the community by supporting or developing social, scientific and cultural projects, mainly in the elementary education and health areas; 2) supporting projects or initiatives in progress, supported or sponsored by entities qualified to work in the ”Itaú Social Program”; and 3) providing food and other similar benefits to the employees of ITAÚ UNIBANCO and other companies of the group.

Donations made by the consolidated companies totaled R$ 108 (R$ 241 at 06/30/2009) in the period, and the Foundation’s social net assets totaled R$ 508,464 (R$ 484,092 at 06/30/2009). The income arising from its investments will be used to achieve the Foundation’s social purposes.

e) Instituto Itaú Cultural - IIC - ITAÚ UNIBANCO is a supporter of Instituto Itaú Cultural – IIC, an entity formed

to grant incentives, promote and preserve Brazil’s cultural heritage. During the period, the consolidated companies donated to IIC the amount of R$ 20,917 (R$ 21,560 from January 1 to June 30, 2009).

f) Instituto Unibanco - ITAÚ UNIBANCO and its subsidiaries sponsor Instituto Unibanco, an institution whose

objective is to support projects on social assistance, particularly education, culture, promotion of integration to labor market, and environmental protection, directly or supplementary, through the civil society’s institutions.

g) Instituto Unibanco de Cinema - ITAÚ UNIBANCO and its subsidiaries sponsor Instituto Unibanco de Cinema, an entity whose objective is (i) the fostering of culture in general; and (ii) providing access of low-income population to cinematography, videography and similar productions, for which it shall maintain movie theaters owned or managed by itself, and theaters to screen art films, videos, video-laser discs and other related activities, as well as to screen and divulge films of great importance, especially those produced in Brazil. During the period from January 1 to June 30, 2010, the consolidated companies did not make any donations (R$ 608 from January 1 to June 30, 2009).

h) Associação Classe “A” - ITAÚ UNIBANCO and its subsidiaries sponsor Associação Classe “A”, an entity

whose objective is the provision of social services for the welfare of beneficiaries, in the way and conditions established by its Internal Rules, and according to the funds available. These services may include, among others, the promotion of cultural, educational, sports, entertainment and health care activities. During the period from January 1 to June 30, 2010, the consolidated companies did not make any donations (R$ 300 from January 1 to June 30, 2009).

i) Instituto Assistencial Pedro di Perna - ITAÚ UNIBANCO and its subsidiaries sponsor Instituto Assistencial

Pedro di Perna, an entity whose objective is the provision of social services, stimulate sport activities, and promote recreation, aimed at the welfare of its members, in the way and conditions established by its Internal Rules, and according to the funds available.

j)

01/01 to 06/30/2010

01/01 to 06/30/2009

- 207,977137,372 -

(211,200) (109,819) - 4,006,181

Itaú Unibanco x Redecard - (506,483) - 4,512,664

Non-operating equity in earnings (Note 12j) - (176,071)(73,828) 3,928,268

(*) The gross amount of disposals is recorded in non-operating income.

Exclusion of nonrecurring effects, net of tax effects

Sale of investments (*)

Total

Program for Cash or Installment Payment of Federal Taxes - Law No. 11,941/09 (Note 11d)Provision for contingencies - economic plansAmortization of goodwill

Reversal of goodwill from corporate restructuring (Note 12h)

k)

Prior disclosure ReclassificationsReclassified

balances

563,948,231 35,277 563,983,508

79,308,947 35,277 79,344,224

Sundry 42,337,597 35,277 42,372,874 TOTAL ASSETS 573,746,624 35,277 573,781,901

535,692,040 35,277 535,727,317

1,580,316 (2,374) 1,577,942

Internal transfer of funds 1,554,781 (2,374) 1,552,407

108,094,706 37,651 108,132,357

Tax and social security 19,543,263 (60,546) 19,482,717

Sundry 15,801,216 98,197 15,899,413 573,746,624 35,277 573,781,901

38,911,049 (12,123) 38,898,926

14,368,007 (12,123) 14,355,884

20,562,640 (12,123) 20,550,517

13,324,583 (12,123) 13,312,460

(4,402,059) (853,120) (5,255,179)

(4,421,170) (865,243) (5,286,413)

83,728 68,173 151,901

1,399,785 (125,033) 1,274,752

(2,197,746) 68,982 (2,128,764)

8,922,524 (865,243) 8,057,281

9,095,426 (865,243) 8,230,183

(4,155,709) 315,952 (3,839,757)

(4,041,493) 332,717 (3,708,776)

(114,216) (16,765) (130,981)

(618,578) 549,291 (69,287)

(549,291) 549,291 - 6,374,511 - 6,374,511

Related to temporary differences

Equity in earnings of affiliates Other operating revenues Other operating expenses

INCOME BEFORE TAXES ON INCOME AND PROFIT SHARINGINCOME TAX AND SOCIAL CONTRIBUTION Due on operations for the period

GROSS INCOME FROM FINANCIAL OPERATIONS

OPERATING INCOME

Personnel expenses

INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES

OTHER OPERATING REVENUES (EXPENSES)

OTHER LIABILITIES

OTHER RECEIVABLES

INCOME FROM FINANCIAL OPERATIONSSecurities and derivative financial instruments

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

Reclassifications for comparison purposes – The Company reclassified the balances as of June 30, 2009, for financial statementscomparisons purposes, in view of the regrouping of the following headings: In the Balance Sheet, the reclassification of InterbranchAccounts – Internal Transfer of Funds; Other Liabilities – Tax and Social Securities to Sundry. In Statement of Income, thereclassification of Profit Sharing to Personnel Expenses and Income Tax and Social Contribution; the reclassification of Securities toDerivative Financial Instruments; the reclassification of Dividends Received from Securities to Other Operating Revenues.

CURRENT ASSETS AND LONG-TERM RECEIVABLES

CURRENT AND LONG-TERM LIABILITIES

INTERBRANCH ACCOUNTS

NET INCOME

PROFIT SHARINGEmployees - Law No. 10,101 of 12/19/2000

Report of Independent Auditors To Directors and Stockholders Itaú Unibanco S.A. 1 We have audited the accompanying consolidated balance sheets of Itaú Unibanco S.A. and its subsidiary

companies (consolidated) as of June 30, 2010 and 2009, and the related consolidated statements of income and of cash flows, as well as the statements of changes in stockholders’ equity of the parent company corresponding to the six-month periods ended June 30, 2010 and 2009. Our responsibility is to express an opinion on these financial statements.

2 We conducted our audits in accordance with approved Brazilian auditing standards, which require that we

perform the audit to obtain reasonable assurance about whether the financial statements are fairly presented in all material respects. Accordingly, our work included, among other procedures: (a) planning our audit taking into consideration the significance of balances, the volume of transactions and the accounting and internal controls of the Bank, (b) examining, on a test basis, evidence and records supporting the amounts and disclosures in the financial statements and (c) assessing the accounting principles used and the significant estimates made by Bank management, as well as evaluating the overall financial statement presentation.

3 In our opinion, the financial statements audited by us present fairly, in all material respects, the financial

position of Itaú Unibanco S.A. and its subsidiary companies at June 30, 2010 and 2009, and the consolidated results of their operations and cash flows for the six-month periods then ended, as well as the changes in stockholders’ equity of the parent company corresponding to the six-month periods ended June 30, 2010 and 2009, in accordance with accounting practices adopted in Brazil, applicable to financial institutions regulated by the Brazilian Central Bank.

São Paulo, August 30, 2010 PricewaterhouseCoopers Paulo Sergio Miron Auditores Independentes Contador CRC 1SP173647/O-5 CRC 2SP000160/O-5