Conference Call about the Results of 3 rd Quarter of 2005 November 1, 2005.

Conference Call about the Results of 3rd Quarter of 2005

November 1, 2005

2

Banco Itaú Holding Financeira S.A.

Highlights

3. Additional Provisions: • Growth of the exceeding provision for Loan Losses of R$ 50 million, totaling R$ 1.2

billion;

• Maintenance of Additional Provision for Securities Portfolio of R$ 400 million;

1. Results: • 3rd Q/05: Net Income R$ 1,352 million with increase of 1.4% q-o-q; ROE annualized

40.5%;

• Jan/05 - Sep/05: Net Income R$ 3,827 million with increase of 39.4% comparing to Jan/04 – Sep/04; ROE annualized 34.8%;

4. Delinquency: Nonperforming Loans Ratio in 3.3%;

2. Growth of credit portfolio of 5.1% in the quarter.• Personal Loans: 10.1% in quarter.

• Vehicles: 15.3% in quarter.

5. Solvency Ratio:• Maintenance of the high ratio of 17.6%, even after buyback of preferred shares totaling

R$ 522 million on the quarter.

3


R$ Million (Except where indicated)

Highlights

3rd Q/05 2nd Q/05 VariationJan/05 - Sep/05

Jan/04 - Sep/04

Variation

Net Income 1,352 1,333 1.4% 3,827 2,745 39.4%

Earnings per share (R$) 12.14 11.86 2.4% 34.35 24.24 41.7%

Stockholders' Equity 15,229 15,027 1.3% 15,229 13,471 13.1%

ROE Annualized (%) 40.5% 40.5% 0.0 b.p. 34.8% 28.1% 6.8 b.p.

Market Capitalization 59,321 48,580 22.1% 59,321 35,957 65.0%

Solvency Ratio (%) 17.6% 18.3% -0.7 b.p. 17.6% 19.4% -1.8 b.p.

Efficiency Ratio (%) 50.5% 50.8% -0.3 b.p. 50.4% 56.6% -6.2 b.p.

NPL Ratio (%) 3.3% 3.0% 0.2 b.p. 3.3% 3.2% 0.1 b.p.

4


Evolution of Managerial NIM (%)

12.4%13.5%

11.6%11.0%

12.6%13.6%

12.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1st Q/04 2nd Q/04 3rd Q/04 4th Q/04 1st Q/05 2nd Q/05 3rd Q/05

(*)

(*) After non recurring items adjusts totaling R$ 612 million described in Management Discussion and Analysis of 4 th Q/04.

5


R$ Million

Itaú Holding Pro Forma


Jan/04 - Sep/04

Variation

Managerial Financial Margin 3,331 3,305 0.8% 9,621 7,238 32.9%

• Banking Operations 3,104 2,956 5.0% 8,665 6,447 34.4%

• Treasury 48 182 -73.5% 465 384 21.3%

• Management of Foreign Exchange Risk from Investments Abroad - net of tax effects

178 166 7.1% 491 407 20.5%

Result from Loan Losses (784) (491) 59.6% (1,868) (661) 182.8%

Service Fees 1,971 1,852 6.4% 5,617 4,366 28.6%

Non-Interest Expenses (2,606) (2,573) 1.3% (7,550) (6,542) 15.4%

Net Income 1,352 1,333 1.4% 3,827 2,745 39.4%

Tier I Allocated Capital 15,229 15,027 1.3% 15,229 13,471 13.1%


6


Breakdown of Loans and Securities Portfolio

(*) Rural and Mortgage Loans – Loans linked to the availability of Demand and Savings deposits.

Sep 30, 05 Jun 30, 05 Dec 31, 04Var Sep/05

-Jun/05Var Sep/05

-Dec/04

Individuals 25,593 22,836 18,272 12.1% 40.1% • Credit Card 5,926 5,359 5,150 10.6% 15.1%

• Personal Loans 10,211 9,276 6,926 10.1% 47.4%

• Vehicles 9,456 8,200 6,196 15.3% 52.6%Businesses 31,745 31,565 30,480 0.6% 4.1%

• Small Businesses and Middle Market

11,494 11,147 9,718 3.1% 18.3%

• Corporate 20,251 20,418 20,763 -0.8% -2.5%

Restricted Loans (*) 4,278 4,247 4,523 0.7% -5.4%

Total - Loan Portfolio 61,616 58,647 53,275 5.1% 15.7%

Public Securities - Domestic 6,794 7,321 7,486 -7.2% -9.2%

Private Securities 11,517 10,668 12,145 8.0% -5.2%

Total - Securities 18,312 17,989 19,631 1.8% -6.7%

Total 79,928 76,636 72,906 4.3% 9.6%

R$ Million

Note: After a thorough reassessment of the customers profile and potential certain accounts were transferred between classifications. To allow a better comparison between periods, the new customer categorization was also considered for prior periods.

7


24.5% 28.5% 29.9%41.5%

9.0%10.2%

18.4%

18.6%

8.7%9.0%

9.1%

56.3% 52.3%42.5%

32.9%

6.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sep-02 Sep-03 Sep-04 Sep-05

Individuals Small Businesses and Middle MarketRestricted Loans Corporate

Composition of the Credit Portfolio

8


Contribution of Credit Portfolio


Jan/04 - Sep/04

Variation

Managerial Financial Margin - Banking Operations (A)

3,104 2,956 5.0% 8,665 6,447 34.4%

Banking Service Fees with Operations of Credit and Credit Cards (B)

770 732 5.2% 2,187 1,363 60.5%

Taxes Expenses for PIS and COFINS (C) (180) (171) 5.1% (505) (363) 39.0%

Banking Product (D = A + B + C) 3,694 3,516 5.1% 10,347 7,446 39.0%

Adjustment 1 - Results from Loan and Lease Losses (E)

(784) (491) 59.6% (1,868) (661) 182.8%

Adjustment 2 - Revision of Classification - Operations with Colateral(F)

- (135) - (135) - -

Adjustment 3 - Exceeding Provision (G) 50 - - 200 94 112.8%

Adjusted Results from Loan and Lease Losses (H = E + F + G)

(734) (626) 17.2% (1,803) (567) 218.2%

Adjusted Banking Product (I = D + H) 2,961 2,890 2.4% 8,544 6,880 24.2%

R$ Million

9


Nonperforming Loans Ratio (%)

3.3

3.02.92.93.2

6.0 5.6

5.35.6

5.2

1.5

0.90.8 1.1

1.3

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Sep-04 Dec-04 Mar-05 Jun-05 Sep-05

Nonperforming Loans Ratio– GlobalNonperforming Loans Ratio – IndividualsNonperforming Loans Ratio – Companies

Coverage Ratio (*)

200%203%221%220%

210%

0%

50%

100%

150%

200%

250%

Sep-04 Dec-04 Mar-05 Jun-05 Sep-05

(*) Provision for Loan Losses / Total Nonperforming Loans(Loans overdue for more than 60 days)

Nonperforming Loans Ratio and Coverage Ratio

10


Service Fees

(1) Asset Management and Consortium.


Jan/04 - Sep/04

Variation

Resources Management (1) 445 415 7.1% 1,258 1,036 21.4%

Current Account Services 351 355 -1.1% 1,054 904 16.6%

Credit Cards 470 459 2.4% 1,365 791 72.6%

Credit Operations and Guarantees Provided

320 297 7.8% 888 649 36.8%

Collection Services 216 193 11.9% 619 565 9.5%

Other 169 134 26.3% 431 422 2.2%

Total 1,971 1,852 6.4% 5,614 4,366 28.6%

R$ Million

11


Non-Interest Expenses


Jan/04 - Sep/04

Variation

Personnel Expenses (1) 1,062 971 9.3% 2,990 2,410 24.1%

Other Administrative Expenses 1,245 1,179 5.6% 3,524 3,079 14.5%

Other Operating Expenses 220 305 -27.9% 764 888 -13.9%

Tax Expenses (CPMF / Others) (2) 79 117 -32.3% 272 166 63.6%

Total 2,605 2,572 1.3% 7,550 6,542 15.4%

(-) Itaucred (3) (459) (356) 28.8% (1,111) (589) 88.6%

(-) Orbitall (129) (159) -18.6% (434) (179) 142.3%

Adjusted Total 2,018 2,057 -1.9% 6,005 5,774 4.0%

R$ Million

(1) Includes R$ 93 million on 3rd Q/05 due to collective labor agreement.

(2) Does not include PIS, COFINS and ISS.

(3) Includes vehicles, credit cards of non-account holders and Taií.

12


Efficiency Ratio

58.9%54.3% 56.8%

48.0% 49.8% 50.8% 50.5%

1stQ/04 2ndQ/04 3rdQ/04 4thQ/04 1stQ/05 2ndQ/05 3rdQ/05

(Personnel Expenses + Other Administrative Expenses + Other Operating Expenses + Tax Expenses except PIS/COFINS/ISS )

(Managerial Financial Margin (*) + Banking Service Fees + Partial Result of Insurance, Capitalization and Pension Plans + Other Operating Income - Tax Expenses of PIS/COFINS/ISS)

Efficiency Ratio =

(*) For better details about the Managerial Financial Margin, consult the Itau Holding´s Management Discussion and Analysis

13


Financial Instruments – Market Value

(1) Tax effects not considered.(2) Includes unrealized minority interest gains in Equity of R$ 332 million in September/05, R$ 287 million in June/05 and R$ 310

million in September/04.

09/30/05 06/30/05 09/30/04Interbank Deposits 15 11 10

Securities and Derivatives 566 575 782

Credit Operations 242 195 309

Investment on BPI 768 649 691

Securitization of Payment Orders Abroad (5) 129 133

Subordinated Debt and Treasury Shares 268 425 354

Other Liabilities (8) 8 87

Unrealized Total 1,846 1,991 2,366

Unrealized Income / (Loss) (1) (2)Stockholders' Equity

R$ Million

14


Itaú

ItaucredItaú BBAItaubanco

Banking

Credit Cards (Account

Holders)Insurance,

Pension Plans and

CapitalizationMutual Funds and Managed

Portfolio

Corporation

Corporate Operations

Vehicles

Credit Cards (Non-Account

Holders)

Taií, FIC (CBD) and FAI (LASA)

Segmentation (Pro forma)

Note: The structure of the segment Itaucred reflects fundamentally the

operations performed through channels aimed at non-account holders.

15


Highlights of Pro Forma Segments

Itaubanco Itaú BBA Itaucred Corporação Itaú (1)

Net Income in the Quarter 738 304 150 160 1,352

Tier I Allocated Capital 7,437 3,868 1,517 2,407 15,229

ROE in the Quarter (Annualized %) 46.0% 35.3% 45.7% 29.4% 40.5%

Loan Portfolio (2) 25,339 22,134 14,143 - 61,616

Total Assets 117,632 43,765 13,845 4,718 144,671

Net Income in the Quarter 704 322 226 81 1,333

Tier I Allocated Capital 7,422 3,554 1,309 2,741 15,027

ROE in the Quarter (Annualized %) 43.7% 41.5% 88.9% 12.4% 40.5%

Loan Portfolio (2) 24,567 22,090 11,990 - 58,647

Total Assets 117,397 38,677 11,713 5,781 144,545

Sep 30, 05

Jun 30, 05

(1) Does not represent the sum of the parts because certain segments transactions were eliminated only at the Consolidated level.

(2) Including Endorsements and Sureties.

R$ Million

Itaubanco

16

Itaubanco Pro FormaR$ Million


Jan/04 - Sep/04

Variation

Managerial Financial Margin 2,132 2,080 2.5% 6,212 5,164 20.3%

• Banking Operations 2,001 1,991 0.5% 5,733 4,602 24.6%

• Treasury 4 (28) -115.6% 132 267 -50.5%


127 117 8.6% 347 295 17.6%

Result from Loan Losses (735) (518) 41.9% (1,733) (714) 142.6%

Service Fees 1,653 1,562 5.8% 4,759 3,811 24.9%

Non-Interest Expenses (1,992) (2,028) -1.8% (5,953) (5,506) 8.1%

Net Income 738 704 4.8% 2,216 1,888 17.3%



Itaubanco

17

Net Income Pro Forma

R$ Million

Diversification of Income sources


Jan/04 - Sep/04

Variation

Itaubanco - Banking 488 413 17.9% 1,368 1,307 4.7%

• Banking Operations 358 315 13.5% 934 836 11.8%

• Treasury 3 (18) -115.6% 87 176 -50.5% • Management of Foreign Exchange Risk from Investments Abroad - net of tax effects

127 117 8.6% 347 295 17.6%

Credit Card - Account Holders 96 114 -15.1% 320 144 121.2%

Insurance, Pension and Capitalization 114 141 -18.8% 387 351 10.3%Portfolio under management and Mutual Funds

40 37 9.4% 141 86 63.8%

Net Income 738 704 4.8% 2,216 1,888 17.3%

Itaubanco

18

Credit Cards – Account Holders Pro FormaR$ Million

3rd Q/05 2

nd Q/05 VariationJan/05 - Sep/05

Jan/04 - Sep/04

Variation

Managerial Financial Margin 247 234 5.2% 690 491 40.5%

Result from Loan Losses (88) (50) 75.7% (175) (46) 280.2%

Service Fees 376 364 3.3% 1,074 513 109.5%

Non-Interest Expenses (350) (329) 6.5% (1,005) (653) 53.9%

Net Income 96 114 -15.1% 320 144 121.2%

Tier I Allocated Capital 557 505 10.2% 557 424 31.3%

ROE Annualized (%) 89.5% 125.2% -35.7 b.p. 83.1% 47.9% 35.3 b.p.

Number of cards (thousand) 8,259 7,970 3.6% 8,259 6,639 24.4%

Revenues 4,236 3,986 6.3% 11,858 8,942 32.6%

Itaubanco

19

Insurance, Pension Plans and Capitalization Pro Forma

3rd Q/05 2

nd Q/05 VariationJan/05 - Sep/05

Jan/04 - Sep/04

Variation

Earned Premiums 562 535 5.1% 1,626 1,430 13.7%

Results of Pension Plans and Capitalization 69 59 18.4% 183 174 5.1%

Retained Claims (328) (314) 4.4% (937) (830) 12.8%

Selling Expenses (132) (108) 22.8% (348) (292) 19.1%

Financial Result 122 135 -9.5% 381 370 2.9%

Non-Interest Expenses (156) (143) 8.9% (443) (447) -0.9%

Net Income 114 141 -18.9% 387 351 10.1%

Combined Ratio (%) 96.5% 94.6% 2.0 b.p. 96.5% 93.7% 2.9 b.p.

Claim Ratio (%) 56.1% 54.4% 1.7 b.p. 56.1% 55.4% 0.7 b.p.

Tier I Allocated Capital 1,181 1,431 -17.5% 1,181 1,184 -0.3%


R$ Million

Itaubanco

20

Strategies and Priorities

• Specialization, diversification and high quality of products and services rendered.

• Streamlining of processes generating reduction of expenses;

• Growth of Insurance, Pension Plans and Capitalization operations;

• Cross-Selling;

• Focus in the credit cycle aimed at the sustainable growth;

Itaú BBA

21

R$ Million

Itau BBA Pro Forma


Jan/04 - Sep/04

Variation

Managerial Financial Margin 338 501 -32.6% 1,183 870 36.0%

• Banking Operations 240 238 0.7% 696 684 1.8%

• Treasury 47 214 -78.0% 343 73 366.4%


51 49 3.6% 144 112 28.3%

Result from Loan Losses 104 28 266.2% 200 183 8.9%

Service Fees 100 96 3.7% 275 223 23.6%

Non-Interest Expenses (141) (176) -20.0% (447) (434) 2.9%

Net Income 304 322 -5.7% 880 587 49.8%



Itaú BBA

22


•Cross-Selling: explore synergies with Itaú, improving banking services offering such as payroll management and collection.

•Investment Banking: maintain the leadership in the local fixed income capital market, increase participation in the primary equity capital market, and intensify our focus in M&A operations, aiming to be the leader among local investment banks.

•International Area: support the internationalization process of Brazilian companies, offering products and services through Itaú’s conglomerate offshore structure.

Itaucred

23

Itaucred Pro Forma• Operations performed through channels aimed at Non-Account Holders.

R$ Million


Jan/04 - Sep/04

Variation

Managerial Financial Margin 628 521 20.6% 1,589 730 117.7%

Result from Loan Losses (153) (2) 8567.5% (274) (129) 111.9%

Service Fees 221 194 14.0% 588 334 75.8%

Non-Interest Expenses (459) (356) 29.1% (1,111) (590) 88.1%

Net Income 150 226 -33.6% 492 179 175.2%

• Vehicles 153 181 -15.1% 407 124 228.9%

• Credit Cards - Non-Account Holders 36 48 -25.4% 133 68 95.3%

• Taií (40) (3) 1058.6% (47) (13) 270.1%

Tier I Allocated Capital 1,517 1,309 15.9% 1,517 877 73.1%


Itaucred

24

• Reach of new clients, in new segments;

• Cross-Selling;

• Focus in the credit cycle aimed at the sustainable growth;


• Vehicles: Continue to grow market share by developing new segments and with presence in new markets;

• TAIÍ: Emphasis on personal and consumer credit to low income people and offer of banking products to non-account holders.

25


R$Net Income and Earnings per share

776 807 854 876 949 9201.030

1.141

1.333 1.352

7147,05 7,49 7,68 8,38 9,10 10,04

11,86 12,14

8,136,796,26

0

200

400

600

800

1.000

1.200

1.400

1.600

1stQ/03 2ndQ/03 3rdQ/03 4thQ/03 1stQ/04 2ndQ/04 3rdQ/04 4thQ/04 1stQ/05 2ndQ/05 3rdQ/05

0

2

4

6

8

10

12

14

16

18

20

Earnings per shareNet Income

R$ million10.8%

16.8%

1.4%

10.3% 18.1%

2.4%

3rd Q/05 2nd Q/05 1st Q/05Jan/05-Sep/05

Buyback quantity (thousand) (a) 1,118 1,253 25 2,396

Value of buybacks (R$ million) (b) 522 559 10 1,091

Outstanding shares (thousand) (c) 111,400 112,453 113,677 111,400

Participation % (a) / (c) 1.0% 1.1% 0.0% 2.2%

Average cost (R$ per Share) (b) / (a) 466.59 446.35 389.71 455.21

Note: Stock quotes and quantities do not reflect the 900% split of the common and preferred shares traded at Bovespa on October 3,

neither the 400% split of the ADRs traded at NYSE on October 6.

Conference Call about the Results of 3rd Quarter of 2005

November 1, 2005

Conference Call about the Results of 3 rd Quarter of 2005 November 1, 2005.

Documents

Transcript of Conference Call about the Results of 3 rd Quarter of 2005 November 1, 2005.