Banco Itaú S.A. Roberto Egydio Setubal CEO Conference Call 4 th Quarter of 2002

1 Income Statement 2002 Financial Margin Provisions for Loan Losses Service Fee Income Administrative Expenses Recurrent Income Extraordinary Result (*) Net Income 3 rd Q./02 2,803 (682) 1,042 (1,880) 640 (0) 639 9,748 (2,566) 4,277 (6,981) 3,080 (703) 2,377 4 th Q./02 3,051 (941) 1,202 (1,735) 1,369 (679) 689 (*) The effects of the consolidation of BBA appear in the Extraordinary Result ,337 (1,445) 3,699 (6,430) 2, ,389 Total Assets99,01495,943 81,416 R$ Million Stockholders’ Equity8,5609,0367,5789,036

2 Consolidated Financial Ratios (%) (*) (*) The effects of the consolidation of BBA appear in the balance sheet and in the Extraordinary Result (total goodwill amortization).

3 Asset Evolution R$ Million 111,141 Itaú Itaú + BBA CAGR = 23.0% CAGR = 25.3% 15.8%

4 Credit Operations Credit Operations and Guarantees R$ Million 37,020 31,506 Including BBA

5 R$ Million Large Companies Small and medium size Companies Individuals Total 18,864 3,376 12,041 34,282 Credit Operations by Customer Profile Var Dec/02 x Dec/ % 33.4% 5.4% 32.5% Itaú+BBA 28,219 4,503 12,692 45,414 Credit Operations Dec. 31, 02 Itaú Dec. 31, 01

6 Non Accrual and Coverage Ratios Coverage Ratio (%) (2) Total Non Accrual Individuals Non Accrual Companies Non Accrual (2) Provision for Loan Losses / Non Accrual Non Accrual Ratio (%) (3) Not compulting BBA: 200% (1) Not compulting BBA: 4.55% (3) (1)

7 Provision for Loan Losses R$ Million Minimum Provision Additional Provision Total Provision

8 Provision for Loan Losses Portfolio more than 14 days overdue (B) Total Provision (A) R$ Million (696)(222)(23)(118)(214)(230)75607 Difference {(A)-(B)}: + Conservative Approach + Quality of the Portfolio Non Accrual (%)

9 Securities Constituted Provision to Market Value Securities Trading Securities Available for Sale Securities Held up to their Maturity Derivative Financial Instruments Total Constituted Provision to Market Value In Equity Cost 52 - (682) (630) 8,853 34% 13,481 52% 1,072 4% 2,288 9% 25, % - (199) - (199) 8,801 13,680 1,072 2,969 26,522 R$ Million December 31, 2002 Minimum Allowance Required (829) Additional Allowance (*) (760) Necessary Provision to Cover Available for Sale Securities 199 Exceeding Provision (561) (*) Additional provision aims to cover risks of current and future fluctuation in the prices of securities available for sale, reclassified to stockholders’ equity, and to neutralize a possible deterioration in the amount of the assets given instabilities and uncertainties of the local and international markets, considering the high volatility scenarios seen in the course of last year, including in the case of an appreciation of the Brazilian Real to R$ 3.20 to the U.S. dollar.

10 Securities Gains - Itaú R$ Million Dec 31, 02 (843) 241 (602) - Minimum Required Provision (1) Provision to Derivative Financial Instruments – Liabilities(2) Total Minimum Required Provision (3 = 1+2) Result of Securities Selling (4) I. Portfolio Valuation (5 = 3+4) Sep 30, 02 (2,926) 880 (2,046) - Variation 2,083 (639) 1,444 (772) 672 (760) 208 Additional Provision (A) Necessary provision to cover Available for Sale Securities (B) (552) II. Exceeding Provision (C = A+B) (2,336) 1,441 (895) 1,576 (1,233) 343 ( I + II ) TOTAL1,015

11 Service Fees Total1,0421,202 Mutual Funds Management Fees Collection Current Account Services Tax Collection Interbank Fees Credit Operations Credit Cards Other 3 rd Q./024 th Q./ R$ Million 4, , ,

12 Insurance Premiums, Pension Plans Contributions and Premium Bonds Revenues Changes in Technical Provisions Selling expenses Insurance Claims, Pension Plans Benefits and Premium Bonds Redemption Other operating income/(expenses) Insurance, Capitalization and Pension Plans rd Q./02 R$ Million 4 th Q./02 3,194 (1,342) (310) (979) (24) 2,536 (886) (277) (981) (318) (74) (238) (6) 1,059 (531) (84) (269) (5) 125 Operational Margin Partial Result of Insurance, Cap. and P. Plans % 50.1% Combined Ratio Claim Ratio 94.0% 51.4% 98.5% 58.7% 90.2% 50.9% Technical Provisions – Result (Market Interest Only) Administrative Expenses 61 (103) 81 (109) 300 (437) 263 (437)

13 Administrative Expenses R$ Million (*) Includes Banco BEG (acquired in the end of 2001) administrative expenses. 4 th Q./ , ,735 Personnel Expenses Other Administrative Expenses Sub-Total Reorganization Total 3 rd Q./ , , (*) 2,456 3,809 6, , ,424 3,679 6, ,430

14 % Efficiency Ratio¹ In % 58.0% 59.5% 55.0% 49.3%

15 Extraordinary Result Goodwill Amortization Fiscal Effects TOTAL 640 (1,343) (703) Itaú Consolidated R$ Million

16 Financial Instruments - Market Value (1) In Result Market Value In Equity Recorded Value Unrealized Income / (Loss) (2) (3) (1)With Itaú and BBA (2)Does not consider the corresponding fiscal effects. (3)Includes unrealized gains to minority interest amounting to R$ 116,966 million. Total Unrealized Interbank Funds Applied Securities and Derivatives Additional Provision Provision – Available for Sale Securities Reclassification of Additional Provision Loan Operations Investment in BPI Time and Interbank Deposits and Funds from Acceptance / Issuance of Securities Subordinated Debts Treasury Shares Others 1,666 6,965 25,693 30, ,306 5, ,666 1,694 6,963 25,693 30, ,322 5, ,837 R$ Million December 31, (168) - (82) (255) (82)

17 Association Itaú - BBA Concluded:  Approved by Brazilian Central Bank on December 26, 2002  All documents have been assigned on February 26, 2003  Operation financially concluded on February 26, 2003 Transfer of 190 employees from Itaú Operation started on March 10, 2003

18 Relevant Data 2000 Active Clients (million) Points of Sale (units) Branches and CSBs Automated Teller Machines Transactions (million) Internet ATMs ,184 13, ,995 12, ,192 17,

19 Assets under Management Mutual Fund Management Fees Mutual Funds Managed Portfolio R$ Billion R$ Million CAGR = 18.9% CAGR = 28.4% Effect of BBA: + R$ 6.9 Billion

20 Stockholders’ Equity, Net Income and Market Capitalization R$ Million 4 th Quarter 2002 Net Income: R$ 689 Million (*) The effects of the consolidation of BBA appear in the balance sheet and in the Extraordinary Result (total goodwill amortization).

21 Corporate Reorganization Highlights – 2002 Banco Itaú-BBA S.A. Acquisition of Banco Fiat S.A. Download

22 Corporate Reorganization Highlights – 2002 Banco Itaú-BBA S.A. Acquisition of Banco Fiat S.A. Download

23 Corporate Reorganization The companies and the various segments of the financial businesses are now to be sheltered under the corporate umbrella of Banco Itaú Holding Financeira S.A. (ITAÚ HOLDING), a financial institution incorporating the shares of Banco Itaú S.A. Banco Itaú S.A. will become a wholly owned subsidiary of the new holding company and will concentrate all the operations related to the retail market, middle market, private bank, mutual funds, financing and brokerage. Banco Itaú-BBA S.A. will also become a wholly owned subsidiary of Itaú Holding and will operate the corporate and investment banking operations. ITAÚ HOLDING will be a multiple bank under the supervision of the Central Bank of Brazil and will act primarily as a financial holding, by centralizing the areas of risk management, audit and treasury of the financial conglomerate.

24 Provide a greater autonomy to the wholesale bank operations; Provide more transparency to the financial statements; Maximize capital allocation and utilization among the various segments. Strengthen our segmentation strategy and maximize the opportunity arisen from the association with BBA; Decentralize management, enhancing growth of the business, but keeping a centralized control in Itaú Holding; In the future other areas may also be segmented to acquire greater autonomy. Objectives: Strategy: Corporate Reorganization

25 1.Announced to the market through announcement of material fact released on November 5 th, 2002; Latest Developments and Current Situation: 2.Approved by the Extraordinary General Meeting of Shareholders on November 21 st, 2002; 3.Approved by the Central Bank of Brazil on February 27 th, 2003; 4.Currently pending approval by the CVM - Brazilian Securities and Exchange Commission. Corporate Reorganization

26 Trading of the Shares: Until the effective date of substitution of Itaú’s shares by ITAÚ HOLDING’s shares, trading of Banco Itaú S.A.’s shares will continue normally in all markets (Bovespa in Brazil, NYSE in the US and BCBA in Argentina); The effective date of the substitution and trading of Itaú Holding’s shares will be defined promptly after the CVM approves the transaction; ITAU HOLDING’s shares will be traded under the same ticker codes as those currently used by Banco Itaú S.A.: ITAU4 and ITAU3 in Bovespa, ITU in NYSE (ADRs) and ITAU4 in BCBA (CEDEARs); ITAÚ HOLDING’s shares will remain components of the same listing and index segments as is currently the case with Banco Itaú S.A.’s shares, namely the Bovespa Index (Ibovespa), the Brazil Index (IBX), the Brazil Index 50 (IBX-50) and the Differentiated Corporate Governance Share Index (IGC). Effects to Itaú’s Stockholders

27 Substitution Ratio and Participation in Capital: 1.The exchange of book entry shares will occur on the basis of one share in ITAÚ HOLDING for each Banco Itaú S.A. share, regardless of whether the shares are common or preferred. 2.ITAÚ HOLDING will have the same capital structure of Itaú, that is, the number of stocks representing the capital of the shareholders will remain the same. 3.Therefore, the number of shares held by stockholders in the capital stock of ITAÚ HOLDING will remain the same, as well as their participation in the capital. Effects to Itaú’s Stockholders

28 Statutory Rights and Dividends: There will be no alteration in the rights of stockholders, since they will receive shares of ITAÚ HOLDING of the same type and characteristics as of Itaú. ITAÚ HOLDING’s bylaws confer the same rights provided by Banco Itaú S.A.’s bylaws, such as:  stockholders’ right to a minimum mandatory dividend of 25% of net income;  preferred stockholders’ right to a priority dividend;  in the event of the sale of the company, the right of preferred stockholders to be included in a public share offering at a price equivalent to 80% of the value paid for the controlling block (Tag Along). Dividends will continue to be paid normally by Banco Itaú until the effectiveness of the reorganization, and, after that, will follow the same policy of monthly dividends distributed under the form of interest on own capital. Effects to Itaú’s Stockholders

29 Management and Corporate Governance: ITAÚ HOLDING’s Administrative Council will comprise the same members as those sitting on Banco Itaú S.A.’s Administrative Council. The same committees linked to Banco Itaú’s Administrative Council – as well as its Fiscal Council – will also remain unchanged. ITAÚ HOLDING will adhere to Bovespa’s Level 1 Corporate Governance classification just like Itaú and Itaúsa had done before. ITAÚ HOLDING’s Executive Board will be comprised of 8 members, all of whom already sit on Banco Itaú S.A.’s Executive Board. Effects to Itaú’s Stockholders

30 Financial Holding Company Status: Banco Itaú S.A. is filing the appropriate documentation with the FED - United States Federal Reserve Board - in order to transfer its FHC - Foreign Holding Company - status to ITAÚ HOLDING. Ethics Code and Trading / Disclosure Policies: ITAÚ HOLDING has submitted to the CVM its Disclosure and Trading policies. These policies will be the same as those previously adopted by Banco Itaú S.A. ITAÚ HOLDING has approved the Code of Ethics it intends to adopt. Effects to Itaú’s Stockholders

31 We reaffirm our firm commitment to practice the same philosophy of administration which has marked Banco Itaú. The ethical conduct in the administration of the business, the transparency, the best practices in Corporate Governance, the strict focus in the financial services operation, the continuous search for profitability, results and performance and the creation of value to our shareholders are undisputed and inherent concepts of Banco Itaú Holding Financeira S.A. Our Commitment

32 Corporate Reorganization Highlights – 2002 Banco Itaú-BBA S.A. Acquisition of Banco Fiat S.A. Download

33 Objective of the Association Investment in BBA  Successful Bank  History of posting high returns  Strong Presence in the Wholesale Segment Itaú’s Strategy Internal Business Segmentation

34 Deposits Total Liabilities+Stockholders’ Equity Current and Long-Term Liabilities Balance Sheets – BBA Consolidated Issuances + Repurchase Agreem. of Securities Current Assets and Long-Term Receivables Cash and Cash Equivalents Securities and Derivatives Interbank and Interbranch Accounts Loan and Leasing Operations Other Receivables Permanent Assets December 31, Total Assets Borrowings and On-Lending Borrowings Derivatives and Others Stockholders’ Equity Interbank and Interbranch Acc. + Others 16,615 5,222 3, ,452 5,774 4, ,126 1, ,567 2,741 1,864 5,042 15,041 4,062 2, ,381 1,452 5, ,905 3, ,504 3,236 1,398 4,819 13,654 3,898 3, ,825 1,286 6, ,172 2, ,946 2,343 1,242 3,953 12,080 3,677 2, ,178 1,147 4, ,453 2, ,229 2,377 1,125 3,733 Values in R$ Million

35 Income Statement – BBA Consolidated Income from Financial Operations Expenses from Financial Operations Banking Service Fees Personnel + Adm. Expenses Other Income / (Expenses) 4,665 (3,812) 100 (292) (68) 2,249 (1,573) 70 (249) (65) 2,148 (1,276) 61 (250) (56) 3,086 (2,390) 75 (186) (51) Net Income Operating Income Values in R$ Million December 31, ROE ROA 23.0% 2.3% 19.7% 1.7% 22.6% 1.9% 40.9% 3.5% Non-operating Income (33)(8) (7)(2) Income Tax and Social Contribution (26)(67) (241)46 Profit Sharing + Minority Interest (106)(80) (96)(118)

36 + Investment in BBA ITAÚ Retail Corporate Asset Management / Private Bank Financing (Vehicles), etc. BBA Corporate Private Bank Fund Portfolio / Brokerage Financing ITAÚ Will keep focusing retail operations Private Bank (Includes BBA) Funds Portfolio (Includes BBA) Financing (Includes BBA) Brokerage The largest wholesale bank in the country Corporate Investment Bank ITAÚ-BBA New Bank

37 R$ Million Assets Deposits Managed Funds and Portfolios Capital Base Corporate Vehicles Consumer Finance Loans Others BIS Ratio (%) 21,761 1,647 4,802 8,811 95,943 34,662 52,282 13,724 ITAÚ ,198 4,335 6,885 - BBA 6, ,141 38,997 59,167 16,573 Total 28,219 2,632 5,061 9, % 12.5% 13.2% 20.8% Change 29.7% 59.8% 5.4% 7.8% - Highlights Largest Capital Base of Brazil December 31, 2002 Investment in BBA

38 Banco Itaú-BBA S.A. Operational Autonomy and Shared Control Operates as an entity with operational autonomy and differentiated team management. Itaú-BBA has shared control between Itaú and BBA’s executives, the latter which will control 50% of the voting capital of the bank. Roberto Egydio Setubal was elected Chairman of Itaú-BBA’s Board. BBA’s executives are the front managers of Itaú-BBA in close connection and integration to Itaú´s management. Itaú’s executives were incorporated to BBA’s team. Fernão Carlos Botelho Bracher is the CEO of Itaú-BBA and also a member of Itaú Holding´s Board of Directors.

% 46.46% Banco Itaú Holding Financeira S.A. Itaúsa - Investimentos Itaú S.A. Free Float Banco Itaú S.A % Banco Itaú-BBA S.A % Executives from BBA 4.25% Shared Control – ITAÚ-BBA

40 New Company (1/3 ONs; 2/3 PNs) Itaú-BBA (½ ONs; ½ PNs) Executives of BBABanco Itaú 50% ONs 16.67% 51% ONs 50% ONs 100% PNs 83,33% 49% ONs 100% PNs Participation (Indirect) of the Executives of BBA in Itaú BBA ONs: (16.67% x 51%) = 8.5% PNs: 0 Total: 4.25% Participation (Direct + Indirect) of Itaú in Itaú BBA: ONs: 49% + (83.33% x 51%] = 91.5% PNs: = 100% Total: 95.75% Shared Control – ITAÚ-BBA

41 Price of the Transaction Cash685 Subordinated Debt Securities – issued in R$ and indexed to CDI (5 years), payable at the final date 650 Banco Itaú S.A.’s preferred shares544 Subordinated Debt Securities – issue of redeemable preferred shares of Itau Bank (Grand Cayman), in US$ and indexed to Libor % p.a. (12 years) 1,399 Total3,268 R$ Million Forms of Payment:

42 Price of the Transaction Cash685 Subordinated Debt Securities – issued in R$ and indexed to CDI (5 years), payable at the final date 650 Banco Itaú S.A.’s preferred shares544 Subordinated Debt Securities – issue of redeemable preferred shares of Itau Bank (Grand Cayman), in US$ and indexed to Libor % p.a. (12 years) 1,399 Total3,268 R$ Million Forms of Payment: Goodwill Fully Amortized in the Consolidated Balance Sheet

43 1.Announced to the market through material fact released on November 5 th, 2002; Latest Developments and Current Situation: 2.Approved by the Extraordinary General Meeting of Shareholders on November 21 st, 2002; 3.Approved by the Central Bank of Brazil on December 26 th, 2002; 4.The transaction was financially concluded on February 26 th, 2003; Banco Itaú-BBA S.A. 5.Beginning on March 10, 2003, customers included in the Corporate segment of ITAÚ and BBA are serviced through a single relationship channel. The new ITAÚ-BBA team is comprised of 180 employees transferred from ITAÚ integrated with some 420 employees from BBA; 6.Finaustria Companhia de Crédito, Financiamento e Investimento’s consumer credit portfolio as well as the private bank, brokerage house and asset management operations are already under ITAÚ’s management.

44 Corporate Reorganization Highlights – 2002 Banco Itaú-BBA S.A. Acquisition of Banco Fiat S.A. Download

45 Banco Fiat S.A. Retail Financing Dealer and Supplier Financing Object of the Acquisition Current Situation Financing Leasing Consortium

46 Banco Fiat S.A. Banco Fidis de Investimento S.A % Retail Financing Financing Leasing Consortium Dealer and Supplier Financing Object of the Acquisition Situation after the Acquisition

47 Benefits for Itaú 1.FIAT brand is the market leader in sales of new vehicles in Brazil; 2.Banco FIAT is the leader in the vehicles financing segment in Brasil, financing 40% of the total sales of the new FIAT vehicles; 3.A major boost to consortium activity, begun in September 2002 through Itauconsórcio; 4.Banco FIAT represents a platform for cross-selling opportunities, through the possibility of selling additional products and services to the Fiat brand customers; 5.High quality customers base, with low default ratios; 6.Banco FIAT is present in ALL FIAT´s dealer branches in Brazil, which enhances our relationship and enables us to provide our recognized expertise in technology and quality of additional services to the dealers and to the Fiat brand customers.

48 Car Consortium Contribution of Banco Fiat Total Assets111,1412,619113,7602.4% BIS Ratio (%)18.4%-17.6%- ITAÚ + BBABanco FiatTotalEvolution Car Financing and Vehicle Leasing2,6322,1444, % Contributions receivable619991,0601,648% N. of active consortium customers (Thousand) 3,85393,20797,060 2,419% Estimated market share0.5%11.6%12.1%- Highlights R$ MillionDecember 31, 2002

49 Agreement with FIAT Financing and leasing of new vehicles in all promotions organized by Fiat to the consumer market; Sales of quotas in the consortium with the Fiat brand; Supply of financial services to Banco Fiat S.A’s actual and future customers – cross-selling ; Fiat’s recommendation of Banco Fiat S.A. to its dealer network for the purposes of channeling vehicle finance business through the Bank’s intermediary. Exclusivity of Banco FIAT for the next 10 years in Brazil: All the operations under FIAT brand Use of the base of customers and dealers:

50 Price Fiat will indicate a member to Banco Fiat S.A.´s Board of Directors Total Price: R$ 897 million Goodwill: R$ 462 million Goodwill: 1.06 X SE* Strong Partnership = Greater Commercial Relationship No capital increase (no dilution for Itaú´s shareholders) * Stockholders’ Equity

51 R$ Million Internal Rate of Return Stockholders’ Equity Goodwill Total Stockholders’ Equity Multiple2.06 Internal Rate of Return of the Transaction20.55%

52 R$ Million Stockholders’ Equity (acquisition) Net income for the next 10 years Value of the business Acquisition Value 435 2,197 2,632 1, Economic-Financial Analysis Nominal Value Present Value* Gain considering the present value for the next 10 years: R$ 401 million Estimated Impact in the Earnings per Share: average increase of 1.1% p.a. for the next 10 years * Taken at the Interbank Rate net of tax effects

53 Website: Contacts

Banco Itaú S.A. Roberto Egydio Setubal CEO Conference Call 4 th Quarter of 2002