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Transcript of Banco Itaú Holding Financeira S.A. London April 2005 Presentation to: Annual ING LatAm & EMEA...
Banco Itaú Holding Financeira S.A.
London
April 2005
Presentation to:
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Silvio de CarvalhoExecutive Director
2Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Agenda
Brazilian Economy
Brazilian Banking System
Highlights
Strategy and In-depth Results
Performance of the Shares
3Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Brazilian Macroeconomic Scenario
High volatility Lower volatility
High interest rates Declining interest rates
Brazil risk Stable risk
Low growthModerate and sustained
growth
Economic Instability Political Stability
A Change of Perspective
Pre- 2002 Post- 2003
4Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Sustained Stability
Control of inflation through monetary policy
Adjustment in the external accounts
Fiscal Austerity
Measures taken for Generating Growth
Gradual decline expected in interest rates (SELIC)
Continuing trade balance surplus
Primary Surplus
Change in the public debt profile: reduction in foreign currency exposure
Enhanced government payment capacity
Other initiatives: Social Security Reform, Reform of the Judiciary System and Tax Reform, the Bankruptcy Law, Political Reform, Trade Unions Reform, new rules for home mortgage finance, new regulatory framework for the electricity sector (regulatory agencies)
5Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Exchange rate: remains constant in real terms, taking into account the difference between Brazil’s CPI (IPCA) inflation and US PPI inflation
Inflation expectations: 5.8% in 2005 and 5.0% in 2006 (Focus Survey on March 18,2005)
Interest rate path: compatible with limiting the aggregate demand acceleration in order to bring inflation back to the announced objective
Primary budget surplus: 4.25% of GDP in 2005 and 2006
GDP linear growth trend: 3.0% in 2005 and 3.5% in 2006
Commodities’ prices remain constant in the forecasting horizon
World trade real growth: 9% in 2005 and 8% in 2006
Baseline scenario 2005-2006
6Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Agenda
Brazilian Economy
Brazilian Banking System
Highlights
Strategy and In-depth Results
Performance of the Shares
7Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Brazilian Banking System
Macro Characteristics Micro Scenario
Huge fixed costs Cost reduction / efficiency Strongly capitalized Room for growth in credit Satisfactory level of provisioning Conservative approach
Advanced risk management Advanced banking supervision; preparation for Basel II
Importance of banking service fees Specific for each segment
Profitable Target: to keep profitability in lower margins scenario
Oriented to services Intensive use of technology, focused
on self-service and Internet All bills are paid in the banks
Huge transaction volumes
High spreads Falling due to decline in interest rates
Dimension Differentiated needs
High reserve requirements High impact over spreads
8Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Declining Interest Rates x Increasing Loan Demand: New Revenue Dynamics
Growing Fee Earnings and Tighter Cost Control To Offset Lower Treasury Gains
Focus on Higher-Yielding Consumer Finance and SME Lending
Efforts of Client Acquisition and Gains of Scale
Government Still Attracts Large Portions of the System’s Liquidity; Gradual Replacement of Bonds By Loans
Public Sector Banks Still Dominant: 45% of Deposits
More Aggressive Competition, Not Price Wars
Current Scenario
9Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
1. Citigroup2. Crédit Agricole Group 3. HSBC Holdings4. Bank of America Corp.5. JP Morgan Chase & Co.6. Mizuho Financial Group7. Mitsubishi Tokyo8. Royal Bank of Scotland9. Sumitomo Mitsui10. BNP Paribas20. ABN AMRO Bank109. Bradesco113. Bank of Taiwan114. Banco Itaú116. Standard Bank Group117. Banco do Brasil171. Unibanco
December 2003
Assets
1,2641,1051,034
736771
1,285975806950989668617041818024
US$Billion
2nd
4th
5th
15th
13th
1st
8th
10th
9th
7th
18th
139th
125th
197th
115th
117th
268th
Rank
BIS
12.0 %10.5 %12.0 %11.9 %11.8 %11.4 %13.0 %11.8 %11.4 %12.9 %11.7 %19.9 %14.6 %
19.8 %14.8 %13.7 %18.6 %
Index
6755554443383735343223544442
SE(1)
US$ Billion
ROA
%
167th
633rd
401st
154th
382th
638th
536th
361st
755th
569th
510th
309th
816th
17th
283rd
169th
84th
Rank (*)
Source: The Banker Top 1000 - July/04 (1) Stockholder´ Equity
2.1 %0.7 %1.2 %2.2 %1.3 %0.7 %0.9 %1.4 %0.4 %0.8 %0.9 %1.5 %0.3 %4.7 %1.6 %2.1 %2.8 %
10Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Capital (Tier One) / Assets (%)
Source: THE BANKER - Top 1000 – July 2004
9.2%
14.2%
12.3%11.4%11.7%
9.1%9.9%
9.1%10.2%
12.0%11.9%11.1%
9.1%7.8%
4.3% 4.4% 4.5% 4.7% 4.7% 4.6% 4.6% 4.5% 4.7% 4.9% 4.7% 4.6% 4.5% 4.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
90 91 92 93 94 95 96 97 98 99 00 01 02 03
Brazilian Banks 1,000 Largest Banks in the World
11Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
1. Citigroup2. Bank of America Corp.3. HSBC4. JP Morgan Chase & Co.5. RBS Group†6. Wells Fargo & Co.7. UBS AG8. Wachovia Corp.9. Santander10. Barclays13. Morgan Stanley19. Merrill Lynch & Co.20. US Bancorp21. Credit Suisse Group22. Goldman Sachs23. Lloyds TSB47. Hang Seng Bank49. Bank of New York Co. Inc.56. Banco Itaú Holding Financeira S.A. 65. Kookmin Bank67. Bradesco97. Banco do Brasil S.A.139. Unibanco
BanksMarket Cap.
251,782188,517177,236133,058108,009103,82998,23785,24279,85770,94465,20357,16557,03855,76455,41454,43826,00023,96120,27716,14415,6719,8105,238
US$ Million
United StatesUnited StatesUnited KingdomUnited StatesUnited KingdomUnited StatesSwitzerlandUnited StatesSpainUnited KingdomUnited StatesUnited StatesUnited StatesSwitzerlandUnited StatesUnited KingdomHong kongUnited StatesBrasilKoreaBrasilBrasilBrasil
Country
Source : UBS Global Banks Valuations 03/08/05
Itaú is the 2nd largest bank
by Market Cap. in
Emerging Markets
12Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Agenda
Brazilian Economy
Brazilian Banking System
Highlights
Strategy and In-depth Results
Performance of the Shares
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
69.681.8
130.3118.8111.1
2000 2001 2002 2003 2004
Assets (R$ Billion)
27.334.3
45.4 44.6
53.3
2000 2001 2002 2003 2004
Credit Operations (R$ Billion)
6.67.6
9.0
11.914.0
2000 2001 2002 2003 2004
Stockholders’ Equity (R$ Billion)
7.3 8.110.0
14.2
17.1
2000 2001 2002 2003 2004
Technical Provisions – Insurance, Pension Plans and Capitalization (R$ Billion)
Highlights
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
1,8412,389 2,377
3,152
3,776
2000 2001 2002 2003 2004
Net Income (R$ Million)
5,9967,056
8,425 8,770 9,014
2000 2001 2002 2003 2004
Administrative Expenses (R$ Million)
5,642 6,2757,777
10,129
12,398
2000 2001 2002 2003 2004
Banking Service Fees (R$ Million)
4,5415,892
7,250
9,22410,220
2000 2001 2002 2003 2004
Net Interest Margin (R$ Million)
Highlights
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
27.7%31.5%
26.3% 26.5% 27.0%
2000 2001 2002 2003 2004
ROE (%)
2.6%2.9%
2.1%
2.7% 2.9%
2000 2001 2002 2003 2004
ROA (%)
14.4%16.9%
18.4% 19.8% 20.6%
2000 2001 2002 2003 2004
BIS Ratio (%)
67.2%62.1% 58.2% 54.5% 52.4%
2000 2001 2002 2003 2004
Efficiency Ratio (%)
Highlights
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
2,9953,184 3,190 3,172 3,073
2000 2001 2002 2003 2004
Branches+CSBs
1,4271,998
2,5983,157
3,624
2000 2001 2002 2003 2004
Internet Banking Clients (In million)
11,72513,469
17,92620,021 21,150
2000 2001 2002 2003 2004
ATMs
47,524 45,409 43,215 42,450 45,316
2000 2001 2002 2003 2004
Employees
Highlights
17Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Agenda
Brazilian Economy
Brazilian Banking System
Highlights
Strategy and In-depth Results
Performance of the Shares
18
Banco Itaú Holding Financeira S.A.
Annual ING LatAm & EMEA Financial Conference
Highlights
Growth of Credit Portfolio by Client Type (highlights):
4th Quarter/04 -Individuals 19.7% and Small and Medium Sized Companies 15.7%.
2004 -Individuals 43.1% and Small and Medium Sized Companies 70.8%Net Interest Margin*
4th Quarter/04 = 13.6% p.a. 3rd Quarter/04 = 12.4% p.a.
2004 = 13.2% p.a. 2003 = 13.9% p.a.
Results:
4th Quarter/04 – Net Income of R$ 1,030 million with ROE 32.9% p.a.;
2004 - Net Income of R$ 3,776 million with ROE 27.0% p.a.;
* Excluding the nonrecurring items of 4th Quarter of 2004
Growth of Credit Portfolio (including endorsements and sureties):
Total: 4th Quarter/04 = 4.3% Excluding Corporate Clients: 4th Quarter/04 = 14.8%
2004 = 19.5% 2004 = 43.8%
19
Banco Itaú Holding Financeira S.A.
Annual ING LatAm & EMEA Financial Conference
Technical Provisions of Pension Plans:
Balance at Dec/04 of R$ 8.6 billion – Growth of 56.4% in 2004.
Full Amortization of Goodwill: (R$ Million)
Without Tax Effects With Tax Effects
CBD (3rd Q./04) 381 347
Credicard (4th Q./04) 721 656
Orbitall (4th Q./04) 233 212Intercap - Sales promoter (4th Q./04) 65 59
TOTAL 1,400 1,274
Solvency - Nonperforming Loans Ratio:
4th Quarter/04 = 2.9% 3rd Quarter/04 = 3.2%
2004 = 2.9% 2003 = 4.1%
Highlights
20Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Exposure – Loans and Securities
Loans
Public Securities
Private Securities
Total
Sep 30, 04Dec 31, 04Var Dec04/
Sep04Dec 31, 03
R$ Million
Var Dec04 /Dec03
(*) Rural Loans and Mortgage – Loans linked to the availability of Demand deposits and Savings deposits.
53,275 51,059 44,581 4.3% 19.5%
7,486 9,369 14,306 -20.1% -47.7%
12,145 11,216 8,564 8.3% 41.8%
72,906 71,644 67,451 1.8% 8.1%
21Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Credit Operations
16,890
47,407
19,596
27,253
34,282
44,581
53,275
14,058
23,674
29,615
38,65938,419
45,414
16,916
0
10000
20000
30000
40000
50000
60000
1998 1999 2000 2001 2002 2003 2004
Credit Operations Credit Operations+Guarantees
R$ Million
CAGR: 21.1%
CAGR: 22.5%
22Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
9%9%
34%29%
16%
11%
41%51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004
Restricted Loans Individuals Small and Medium Sized Companies Corporate Loans
Change in the mix of the Credit Portfolio
23Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Nonperforming Loans Ratio (%)
2.93.23.5
4.04.1
7.37.3
5.66.5
6.0
2.2 1.9 1.81.5
0.9
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Dec-03 Mar-04 Jun-04 Sep-04 Dec-04
Nonperforming Loans Ratio – GlobalNonperforming Loans Ratio – IndividualsNonperforming Loans Ratio – Businesses
Coverage Ratio (*)
198% 202% 204%210% 220%
0%
50%
100%
150%
200%
250%
Dec-03 Mar-04 Jun-04 Sep-04 Dec-04
(*) Provision for Loan Losses / Total Nonperforming Loans
Nonperforming Loans Ratio and Coverage Ratio
We are not expecting an ongoing improvement in these indicators, because of the focus on credit products with higher margins, but, at the same time, with a higher credit risk.
24Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
R$ MillionService Fees
4th Q/04 3rd Q/04
Asset Management (*)
Current Account Services
Credit Cards
Sureties and Credits
Granted
Collection Services
Other
Total
2004
(*) Mutual Funds and Consortium.
2003Var 4Q04
-3Q04Variation
04-03
376
327
371
266
302
158
1,799
358
303
282
234
180
151
1,508
17
24
89
32
122
7
291
1,411
1,230
1,162
916
866
580
6,165
1,320
1,002
965
653
699
482
5,121
91
228
197
263
167
98
1,044
25Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Total Unrealized
Interbank Deposits
Securities and Derivatives
Additional provision
Adjustment – Securities Held to Maturity
Credit Operations
Investment on BPI
Time and Interbank Deposits and Funds from acceptance and issuance of securities abroad
Securitization of Payment Orders Abroad
Subordinated Debt and Treasury Shares
Unrealized Income/(Loss) (1) (2) Stockholders’ Equity
12/31/04 09/30/04
(1) Tax effects not considered.(2) Includes unrealized minority interest gains in Equity of R$ 271 million at December/04, R$ 284 million at September/04 and R$
257 million at December/03.
Financial Instruments – Market ValueR$ Million
12/31/03
Stockholders’ Equity
Stockholders’ Equity
10
782
600
182
309
691
39
133
354
10
688
545
143
319
627
33
74
297
2,319 2,048
14
620
400
220
248
660
(41)
93
480
2,074
26Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Diversification of the income sourcesNot dependent only from interest rates
829
(555)
3,502
2004
3,776
Banco Itaú S.A.
Banco Itaú BBA S.A.
Corporation
Total
Net IncomeR$ Million
22.0%
(14.7%)
92.7%
%
100%
750
(335)
2,737
2003
3,152
23.8%
(10.6%)
86.8%
%
100%
27Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Banco
Itaú
Net Income
Tier I Allocated Capital
ROE (%)
Credit Portfolio (*)
Total Assets
2004 2003
(*) Including endorsements and sureties.
R$ Million
Pro Forma
Corpo-
ration
Corpo-
ration
Note: The Consolidated figures do not represent the sum of the parts because certain intercompany transactions were eliminated only at the Consolidated level.
Conso-
lidated
Conso-
lidated
Banco
Itaú BBA
Banco
Itaú
Banco
Itaú BBA
2,737
7,550
36.2%
20,739
94,641
3,502
7,843
44.7%
29,736
109,983
829
3,194
25.9%
17,671
34,488
(555)
2,934
-18.9%
-
6,597
3,776
13.971
27.0%
47,407
130,339
750
3,213
23.4%
17,919
30,490
(335)
1,117
-30.0%
-
5,438
3,152
11,879
26.5%
38,659
118,738
Banco Itaú S.A.
28Annual ING LatAm & EMEA Financial Conference
2004
68.0%
3.6%
12.9%
15.5%
Banco Itaú - BankingCredit CardsInsurance, Pension Plans and CapitalizationMutual Funds and Managed Portfolio
Diversification of income sourcesNot dependent only on interest rates
Consolidated Net Income4th Q/04 3rd Q/04
Variation4Q/04 – 3Q/04
Banco Itaú - Banking 1,123 573 550
Credit Cards 175 122 53
Ins., Pension Pl. and Cap. 101 113 (12)
Funds and Managed Port. 38 30 8
Total 1,437 837 600
2004 2003Variation
2004 - 2003
Banco Itaú - Banking 2,384 1,604 780
Credit Cards 543 540 3
Ins., Pension Pl. and Cap. 451 465 (14)
Funds and Managed Port. 125 128 (3)
Total 3,502 2,737 765
Banco Itaú S.A.
29Annual ING LatAm & EMEA Financial Conference
Credit Cards R$ Million (Except where indicated)
Participation in the Net Income of Orbitall and Redecard
Nº of Cards - Itaucard (thousands)
Nº of Cards - Credicard (thousands) (*)
Nº of Cards - Total (thousands)
2004 2003 Variation
7,085
3,595
10,680
12,956
6,519
19,475
390
90
480
5,780
2,246
8,026
10,603
4,787
15,390
400
99
499
1,305
1,349
2,654
2,353
1,732
4,085
(10)
(9)
(19)
22.6%
60.0%
33.1%
22.2%
36.2%
26.5%
-2.5%
-9.1%
-3.8%
(*) Corresponds to the share of Credicard owed by Itaú – 50% at 2004 and 33% at 2003.
63 41 22 53.7%
Turnover - Itaucard
Turnover - Credicard (*)
Turnover - Total
Net Income - Itaucard
Net Income - Credicard (*)
Net Income - Total
Banco Itaú S.A.
30Annual ING LatAm & EMEA Financial Conference
4.05.5 6.1
7.0 7.78.6
0.90.9
1.01.0
1.01.0
1.0
1.11.2
1.21.2
1.31.4
1.4
3.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04
Technical Provisions - Pension Plans Technical Provisions - Capitalization
Technical Provisions - Insurance
5.46.1
7.7 8.3
9.3
Technical Provisions – Pension Plans: growth of 43% from Dec. 03 to Dec. 04
R$ Billion
10.011.0
Insurance, Pension Plans and Capitalization
Banco Itaú S.A.
31Annual ING LatAm & EMEA Financial Conference
Var 4ºT04-3ºT04
3º Tri/04 4º Tri/04
Result of Ins., Pension Plans and Cap.
Combined Ratio
Claim Ratio
•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)Operating Margin
Financial Income
Administrative and Tax Expenses*
Income Tax and Social Contribution
Other
R$ Million
Insurance, Pension Plans and Capitalization
1,475
(636)
(100)
(591)
54
1,686
(843)
(103)
(579)
41
115
(169)
(23)
(24)
115
(146)
(39)
(20)
113
201 202
101
92.3% 93.5%
51% 55%
14%
33%
3%
-2%
-24%
0%
0%
16%
-41%
21%
-10%
*Except for ISS, PIS and COFINS
2004 2003 Var.2004 - 2003
5,008
(2,578)
(358)
(1,508)
136
6,233
(2,957)
(395)
(2,251)
177
485
(616)
(141)
(84)
623
(623)
(166)
(70)
465
807 701
451
94.1% 97.2%
53% 54%
24%
15%
11%
49%
30%
15%
-22%
-1%
-15%
19%
-3%
Banco Itaú S.A.
32Annual ING LatAm & EMEA Financial Conference
7.710.0
11.0
Dec-03 Sep-04 Dec-04
81.193.8
99.8
Dec-03 Sep-04 Dec-04
Resources Managed
Growth of 23.0% in the volume of Funds and Portfolios under Management and 43.4% in the volume of Technical Provisions in relation to Dec/2003
R$ Billion
Technical Provisions of Insurance, Pension Plans and Capitalization
Volume of Mutual Funds and Portfolios under Management
Banco Itaú BBA
33Annual ING LatAm & EMEA Financial Conference
4th Q/04 3rd Q/04
Net Interest MarginResult from Loan LossesService FeesAdministrative and Tax Expenses*Tax Income and Social ContributionOtherNet IncomeTier I Allocated CapitalROE (%)
2003
R$ MillionPro Forma
2004Variation
04-03
3912783
(133)(147)
(25)196
3,24526.4%
4643184
(159)(151)
(27)242
3,19433.9%
1,403213306
(622)(416)
(55)829
3,19425.9%
1,989(513)
270(613)(410)
27750
3,21323.4%
(586)726
36(9)(6)
(82)79
(19)
*Except for ISS, PIS and COFINS
Banco Itaú BBA
34Annual ING LatAm & EMEA Financial Conference
Strategy Itaú BBA: wholesale bank integrated into a financial conglomerate; Credit perspective for the corporate segment in Brazil: declining spreads, increase in
the competition, limited client base. Currently 51% of all our revenues are non-credit related;
Challenge: to maintain current profitability levels in the next years considering lower margins in credit;
Our strategy: compensate lower gains in credit with an increase in the distribution of non-credit related products and services to our clients through:
Cross-selling – continue to take advantage of the synergy with Itaú, by increasing the selling of structured treasury operations such as hedging and also simpler products such as payroll and collection;
Investment banking – segment likely to expand in the next 5 years (we expect that by the end of this period Brazil becomes an investment grade country).
Itaú BBA is well-positioned in investment banking – leader in fixed income issuances and reinforcing our variable income team in order to build a strong investment banking.
Investment banking currently stands for 5% of Itaú BBA´s revenues. In the next 5 to 6 years our goal is to increase this participation to 20%.
35
Banco Itaú Holding Financeira S.A.
Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding in 2005
1. Focus in increasing the credit portfolio to Individuals and to Small and Medium Sized Companies;
2. Consolidation of initiatives related to consumer loans:
(Taií, CBD, Lojas Americanas, Credicard…);
3. Costs constant in real terms, which will lead to an improvement in the efficiency ratio (at the same basis);
4. New Segment – Disclosure, starting in next quarter, of a new segment to reflect the performance of business areas related to consumer loans.
36Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Credit for Individuals
FIC50% CBD50% Itaú
FAI50% LASA50% Itaú
Own Stores
100% Itaú
Payroll Credit
50% of
Fináustria Itaucred Veículos Banco Fiat Intercap
Vehicles
Itaucred
37Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Taií
New Brand Name (Itaú-based).
Focus on lower income
consumers.
Proprietary platform.
Uses the Itaú ATM network.
Diversifies credit-related
revenues.
Responsive and efficient.
Expansion of Focus on
direct consumer credit
Long term partnership: 20
years, and renewal option
Operating Management under the responsibility of Itaú
Exclusivity in exploitation
of financial products and
services to retailers’
customers
Retail partnershipsCBD and LASA
38Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Estimated ExpansionPoints of Sale
3FIC (CBD) 250
0FAI (LASA) 170
Taií – Own stores 30 150
33Subtotal 570
Currently YE 2005Stores
New Itaú Branches 100
Total 670
39Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Financial Products
3.3 millionOwn Credit Cards (Private Label)
Currently
FIC (CBD)
FAI (LASA) 186 thousand
480 thousandCredit Cards
FIC (CBD)
FAI (LASA) -
-Personal Loan Contracts
FIC (CBD)
FAI (LASA) 137 thousand
580 thousandConsumer Credit Contracts
FIC (CBD)
FAI (LASA) 32 thousand
4.7 millionTotal
In Quantities
40Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
5,780 5,951 6,261 6,639 7,085
2,245 2,308 2,413 2,4383,596
Dec-03 Mar-04 Jun-04 Sep-04 Dec-04
Itaucard Credicard
8,026 8,2598,674 9,077
10,680
In Thousand
Market Share:
20.3%
Increase in Participation on CredicardCredit Card Base
41Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
Agenda
Brazilian Economy
Brazilian Banking System
Highlights
Strategy and In-depth Results
Performance of the Shares
42Annual ING LatAm & EMEA Financial Conference
Banco Itaú Holding Financeira S.A.
1.00 1.243.03 2.90
5.11 5.467.24 7.45
9.7212.11
4.956.04
7.46
15.85
21.41 21.36
27.66
33.33
0.983.26 2.88
15.99
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
22.00
24.00
26.00
28.00
30.00
32.00
34.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Evolution of Earnings per Share and Dividends per Share (*)
CAGR = 28.6%
R$
(*) In the previous years per lot of thousand shares, as in 2004 a reverse split of shares was carried out.
CAGR = 26.2%
Dividends per Share (*)Earnings per Share (*)
43
Banco Itaú Holding Financeira S.A.
Annual ING LatAm & EMEA Financial Conference
0
200
400
600
800
1,000
1,200
94 95 96 97 98 99 00 01 02 03 04
Itaú (1)Itaú (2)
Bovespa
US$
100
800
192
1,145
Russian Crisis
Real Devaluation
Mexican Crisis
Asian Crisis
Argentine Crisis
Attack to WTC
Itaú(1) Itaú(2) Ibov.
10 years 27.60% 23.12% 6.75%
5 years 20.05% 15.75% 0.65%
2004 64.36% 58.79% 28.23%
Annual Average Appreciation in US$
(1) With dividends reinvestment.(2) Without dividends reinvestment.
Election Period
Preferred Shares Appreciation – in US$Evolution of US$ 100 Invested from Dec. 94 to Dec. 04