Transcript Banco Itaú S.A. Conference Call about 4th Quarter 2001 Results Consolidated Net Income Growth 2,389 1,869 1,918 2,354 1,841 721 17.2% 1,518 1,12818.9% 31.6% 27.7% 31.5% Consolidated Net Income Consolidated Recurring Income ROE %

1
Banco Itaú S.A.
Conference Call about
4th Quarter 2001
Results
2
Consolidated Net Income Growth
2,389
1,869
1,918
2,354
1,841
939
721
17.2%
1997
1,518
1,128
880
18.9%
31.6%
27.7%
31.5%
1998
1999
2000
2001
Consolidated Net Income
Consolidated Recurring Income
ROE %
Consolidated Net Income Growth per
Thousand Shares
R$ / Thousand Shares
20.00
CAGR: 37.2%
16.00
Extraordinary Income
12.00
8.00
15.85
2.98
15.99
3
21.41
0.32
21.09
16.66
12.87
6.04
7.46
4.00
-0.67
0.00
1997
-4.00
1998
1999
2000
2001
4
Consolidated Stockholders’ Equity
Growth
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
R$ Million
December, 2001
Market Capitalization
7,578
R$ 19,582 Million
5,907
4,198
6,642
4,651
Jan/97 to Dec/01
Dividends R$ 2.6 Billion
Capital Increase
0
97
98
99
00
01
5
Statements of Income
R$ Million
(Except where showed)
Financial Margin
Provisions for Loan Losses
Service Fee Income
Administrative Expenses
Recurrent Income
Extraordinary Results
Net Income
Net Income per Thousand Shares (R$)
ROE Recurrent (%)
ROA(%)
Total Assets
2001
2000
6,707
(1,445)
4,190
(6,179)
2,353
36
2,389
21.41
31.1%
2.9%
81,807
5,311
(770)
3,465
(5,183)
1,918
(77)
1,841
15.99
28.9%
2.6%
69,555
Var. (%)
26.3
87.7
20.9
19.2
22.7
-31.2
29.8
33.9
17.6
6
Efficiency Ratio
64.2%
1997
58.3%
58.0%
57.8%
1998
1999
2000
54.7%
2001
7
Expansion of Customer Base
Million
10.0
9.0
8.0
0.5
7.0
1.0
6.0
1.4
1.8
5.0
1.1
4.0
4.6
4.9
Dec-97
Dec-98
0.1
1.0
7.2
6.0
5.5
3.0
2.0
1.0
0.0
Itaú *
Dec-99
Banerj & Bemge
Dec-00
Beg
(*) includes: Itaú, Personnalité and Itaú Buen Ayre
Dec-01
Banestado
0.5
8
Growth in Nº of Points of Sale
13,777
3,000
10,771
2,500
2,000
8,876
11,715
12,064
12,000
2,259
2,118
10,000
1,765
1,763
14,000
8,000
1,500
1,000
1,244
726
835
780
877
925
6,000
4,000
500
2,000
0
0
1997
1998
Branches
1999
CSBs
2000
ATMs
2001
9
Credit Operations
34,282
36,000
32,000
27,253
28,000
29,615
24,000
20,000
19,596
16,916
16,000
12,000
16,077
14,414
14,058
1997
1998
23,674
16,890
8,000
4,000
Credit Operations
1999
2000
2001
Credit Operations and Guarantees
ma
r/9
Ju 7
nSe 97
pDe 97
cMa 97
r-9
Ju 8
nSe 98
pDe 98
cMa 98
r-9
Ju 9
nSe 99
pDe 99
cMa 99
r-0
Ju 0
nSe 00
pDe 00
cMa 00
r-0
Ju 1
nSe 01
pDe 01
c01
Assets under Management
10
Mutual Funds and
Portfolio under Management
R$ Billion
56
53
34
44
42
37 40
47
26 27 28 26
18 17
16
15 14 15
13 15
11
Income Statement
R$ Million
(Except where showed)
4th Q./01
3rd Q./01
Financial Margin
Provisions for Loan Losses
Service Fee Income
Administrative Expenses
Recurrent Income
Extraordinary Results
Net Income
1,717
(435)
1,148
(1,603)
491
(258)
234
1,955
(397)
1,053
(1,682)
630
69
699
Total Assets
81,807
81,749
Var. (%)
-12.2
9.6
9.0
-47
-22.1
-473.9
-66.5
Recurrent Consolidated Statements of –
R$ Million
4th Quarter of 2001
4th Q./01
Net Income for the Year
(-) Net Income up to 3rd Quarter
Net Income for the 4th Quarter
(=) Extraordinary Income for 4th Quarter
BEG Acquisition Effects
FUNBEP Provision Reversal
Other Effects
Fourth Quarter Recurring Net Income (a)
Main Events Which Influenced Income in the Fourth Quarter, Net of Tax Effects (b)
Effects on foreign investments of the appreciation of the Real in relation to the U.S.
dollar from R$ 2.6713 (09.30.2001) to R$ 2.3204 (12.31.2001)
Reversal of provision for exchange rate fluctuations set up in the third quarter,
considering a floating rate in relation to the U.S. dollar of R$ 2.50
Realization of gains on marketable securities
Reversal of excess provision for actuarial liability
Other events, mainly reversals/allocation of provisions
Recurring income from aforementioned events (a – b)
2.389
2.156
234
(257)
(378)
89
32
491
48
(599)
310
242
66
29
443
12
13
Credit Operations
Credit Operations by Customer Profile
R$ Million
Var Dec/01 Var Dec/01
Dec 31,01 Sep 30,00 Dec 31,00
x Sep/001 x Dec/00
Large Companies
Small and medium size
Companies
Individuals
Credit Cards
Subtotal
Housing
Subtotal
Total
Individuals
Companies
18,864
18,956
14,723
-0.5%
28.1%
3,152
6,669
2,772
31,457
2,767
6,462
2,364
30,550
2,609
4,486
2,130
23,948
13.9%
3.2%
17.2%
3.0%
20.8%
48.7%
30.1%
31.4%
2,600
224
2,718
218
2,979
326
-4.3%
-2.8%
-12.7%
-31.2%
2,825
34,282
2,936
33,485
3,305
27,253
-3.8%
2.4%
-14.5%
25.8%
14
Credit Operations
R$ Million
Risk
Levels
Portfolio
Provision Balance
Coverage
Individuals Companies Individuals Companies Individuals Companies
AA – A
2,792
12,420
14
21
1%
0%
B-D
7,554
4,501
198
93
3%
2%
E-H
1,690
658
1,143
385
68%
59%
Total
12,036
17,579
1,355
499
11%
3%
15
Credit Operations
R$ Million
2001
2000
Variation
Individuals Companies Individuals Companies Individuals Companies
Credit Operat.
Income
3,729
3,311
2,310
2,337
1,419
974
Provision
Expenses
1,190
255
587
183
603
72
Net Contribution
2,539
3,056
1,723
2,154
816
902
Non Accrual and Coverage Ratios
Non Accrual Ratio
10.0
9.93
16
Coverage Ratio (*)
11.10
8.0
6.0
4.0
4.45 4.21 4.25 4.39
1.21
2.0
0.0
5.01
1.50
Dec/00 Mar/01 Jun/01 Sep/01 Dec/01
Total Non Accrual
Individuals Non Accrual
Companies Non Accrual
193% 190% 189% 186% 173%
Dec/00 Mar/01 Jun/01 Sep/01 Dec/01
(*) Provision for Loan Losses /
Non Accrual
17
Individuals Credit *
Default of 15-90 days / Total Portfolio (%)
5.0 5.1 5.0
4.7 4.8
(*) Includes: Personnal and Vehicles Acquisition Credit
(1) Source: BACEN
1
-0
De
c
Se
p
-0
1
Market (1)
Itaú
1
4.0
4.6 4.4
Ma
r-0
-0
0
3.6 3.6 3.8
De
c
0
-0
Se
p
Ju
n-
00
3.5 3.3 3.4 3.5
3.9
6.5
6.9
5.8 5.8 5.8
01
4.8 4.9 4.8 4.8
6.0
n-
5.3
5.8
Ju
6.0 5.9
6.3 6.3 6.2 6.4
6.8 7.0
7.2 7.2
7.4
6.3
The Sudameris Exclusive Negotiation
Agreement
Scope:
 Includes: Brazil, Paris, Miami, Cayman, Montecarlo and Chile
 Colombia, Paraguay, Uruguay and Panama
 Excludes: Argentina and Peru
Payment:
 50% - Internally Generated Funds
 50% - Subordinated Debt to be Issued Abroad
Price:
 Stockholders’ Equity with Adjustments of December 31 of 2001
from Banque Sudameris
 US$ 800 million for the Sudameris Brazil Goodwill
18
19
Highlights - 2001
R$ Million
Net Income
ROE (%)
Total Assets
Credit Operations
Funding and Resources under
Management
Banking Service Fees
Branches Network (Brazil)
% of Credit Portfolio Risk AA,
A, B and C
Efficiency Ratio (%)
Employees
Sudameris Br.
Itaú
Itaú +
Sudameris Br.
178
13.9
18,716
8,359
2,389
31.5
81,807
34,282
100,523
42,641
13,154
322
292
55,796
4,190
2,259
68,950
4,512
2,551
87.0
63.5
6,531
87.3
54.7
45,409
-
20
Itaú Buen Ayre – Effect of “Pesification”
Parity:Real/Dollar 2.3204
Estimated Consolidated Effect
Itaú Buen Ayre equity at 12/31/01
Itaú Buen Ayre equity after Devaluation and “Pesification”
Expected Effect on Brazilian Consolidated Results (A)
Provisions already constituted by Itaú Brazil (B)
Additional Provision after Pesification Effect (A + B)
R$ Million
346
224
(122)
200
78
21
Itaú Buen Ayre
Credit Portfolio Sensitivity
Portfolio
Minimum
Risk
R$ Million
Maximum
Risk
Individuals
Companies - Subsidiaries of multinationals
with operations in Argentina
Companies - Others
170
43
119
200
88
5
18
30
35
Total
458
65
184
Total Allowance for loan losses
Excess allowance for loan losses after the
“Pesification” effect
(45)
(45)
(78)
(78)
Shortage (surplus)
(58)
62
Management may allocate any amount that may be necessary to cover the abovementioned deficit from the surplus of avaliable provisions of ITAÚ CONSOLIDATED
that were set up for reasons of market volatility, totalling R$ 1,265 million.
Financial Holding Company
22
•Banco Itaú has been granted Financial Holding Company status by The Federal
Reserve.
•This classification is attributed to 660 banks in the whole world.
•Only 27 are not North American.
•Analysis of important criteria
high level of capitalization
superior quality of management
•New range of opportunities in the US market
•Improve the perception that the US investors have
Banco Itaú is permitted to undertake commercial banking operations and to operate
in the US insurance and capital markets under the same conditions as local
institutions.
Broker-Dealer: 2nd Semester 2002
Banco Itaú launches Level II ADRs on
the NYSE
The ADRs will be traded under the symbol “ITU”
•Each ADR represents 500 Banco Itaú’s preferred shares
•The depositary bank is The Bank of New York and the custodian is Banco Itaú itself.
Growth of Daily Average Volume of Shares Traded
40,000
35,000
US$ Thousand
30,000
25,000
20,000
Bovespa
OTC
NYSE
15,000
10,000
5,000
0
1 Year prior
Launching until Level
II Launching
ANOLevel I Level I NÍVEL1
NÍVEL
2
Launching
Level II Launching
until March 1st
23
Opportunities
• Consolidation of its Acquisitions (Banestado and BEG)
- Sudameris
• Rationalization of Costs
• Increase in Insurance and Pension Plans Business
• Growth in Small and Medium Size Companies
• Improvement in Personal Credit
• Acquisition of Public Sector Banks being Privatized
- Other Opportunities
24
25
Banco Itaú S.A.
Conference Call about
4th Quarter
2001Results