Banco Itaú Holding Financeira S.A.
YE 2003 Results
February 19, 2004 - 3:00 p.m.
Alfredo Egydio SetubalInvestor Relations Director
Silvio de CarvalhoExecutive Director
Video Conference Presentation to:
2
Banco Itaú Holding Financeira S.A.
Banco Itaú S.A.Banco Itaú-BBA S.A.
Important FactsBanco Itaú Holding Financeira
3
Banco Itaú Holding Financeira Highlights
854
7.49
11,879
31.8%
2,754
30,453
19.8%
49.5%
4.1%
Net Income
Net Income per 1,000 shares
Stockholders’ Equity
ROE (%)
Net Interest Margin
Market Capitalization
BIS Ratio (%)
Efficiency Ratio (%)
NPL (%)
3rd Q./03
807
7.05
11,464
31.3%
2,765
25,691
21.5%
47.6%
4.7%
3,152
27.66
11,879
26.5%
10,998
30,453
19.8%
46.1%
4.1%
2,377
21.36
9,036
26.3%
9,511
17,743
18.4%
50.0%
4.2%
4th Q./03 2003 2002
R$ Million (Except where indicated)
4
Banco Itaú Holding Financeira Financial Ratios
2.6 2.9 2.1 2.7
26.5
18.4
27.731.5
26.3
19.816.9
14.4
0
5
10
15
20
25
30
35
40
45
50
55
60
Dec-00 Dec-01 Dec-02 Dec-03
Net Income / Assets (ROA)Net Income / Equity (ROE)BIS Ratio
5
58.4 56.6 56.359.7
55.7 56.3 55.0 54.4 56.1 55.7
50.4
41.5 40.8
46.7 47.6 49.5
Banco Itaú Holding Financeira Efficiency Ratio (%)
59.5%
55.0%
47.9%
54.1%
Not considering the 4th Q./02 and 1st Q./03, since we consider this criteria indicates better the recurrent efficiency.
6
Banco Itaú Holding Financeira Asset Evolution
18,25924,445
32,068
46,357 48,995 51,911
69,555
81,807
118,738111,141
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03
R$ Million
7
14,05816,890
23,674
29,615
38,659
16,07719,596
27,253
44,594
38,41934,282
45,414
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1998 1999 2000 2001 2002 2003
Credit Operations Credit Operations and Guarantees
R$ Million
Banco Itaú Holding Financeira Credit Operations
8
R$ Million
Corporate
Small and Medium Sized
Companies
Individuals
Mortgage Loans
Total
28,219
4,376
10,467
2,352
45,414
Var Dec/03
x Sep/03
0.3%
22.1%
7.5%
-3.2%
4.4%
Dec 31, 03
24,115
5,317
13,083
2,067
44,581
Dec 31, 02
Banco Itaú Holding Financeira Credit Operations (*)
(*) Endorsements and Sureties included.
Sep 30, 03
24,036
4,353
12,175
2,135
42,699
Var Dec/03
x Dec/02
-14.5%
21.5%
25.0%
-12.1%
-1.8%
9
Banco Itaú Holding Financeira Credit Operations by Currency (*)
R$ 29.1 R$ 31.2 R$ 31.2 R$ 30.2 R$ 32.3
R$ 16.3 R$ 15.2 R$ 13.4 R$ 12.5 R$ 12.2
0.05.0
10.015.020.025.030.035.040.045.050.0
Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
Local Currency Foreign Currency
R$ 45.4 R$ 46.4 R$ 44.6R$ 42.7
R$ 44.4
In Billion
(US$ 4.6) (US$ 4.5) (US$ 4.7)(US$ 4.3) (US$ 4.2)
(*) Endorsements and Sureties included.
10
1,406 1,5101,692
1,853 1,9532,196
2,5152,332 2,285 2,234 2,378 2,257
630680
680715
715
715
747841 843 848
913906
3,172 3,128 3,0823,290 3,163
2,0362,190
2,3722,568
2,668
3,262
2,911
Mar.01 Jun.01 Sep.01 Dec.01 Mar.02 Jun.02 Sep.02 Dec.02 Mar.03 Jun.03 Sep.03 Dec.03
Banco Itaú Holding FinanceiraProvision for Loan Losses
R$ Million
Minimum Provision
Additional Provision
Total Provision
11
Banco Itaú Holding Financeira Nonperforming Loans and Coverage Ratio
Coverage Ratio (*)Coverage Ratio (*)
Nonperforming Loans Ratio – TotalNonperforming Loans Ratio – Individuals
Nonperforming Loans Ratio – Businesses
(*) Provision Balance / Total Nonperforming Loans
Nonperforming Loans Ratio (%)Nonperforming Loans Ratio (%)
4.17 4.164.65 4.71
4.14
10.66
8.467.34
8.948.25
1.461.99 2.35 2.53 2.15
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
198% 189%173%
189% 198%
Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
12
R$ Million
2003
1,26952
3271,002
159213546933107565
5,121
2002
1,0310
29691217219945893071
397
4,466
Mutual Fund Management FeesConsortium AdministrationCollectionChecking Account ServicesTax CollectionInterbank FeesCredit Operation FeesCredit CardIncome from Guarantees ProvidedOtherTotal
Variation %
23.0%
10.3%9.9%
-7.1%6.7%
19.3%0.3%
51.5%42.3%
14.7%
Banco Itaú Holding FinanceiraBanking Service Fees
13
R$ Million
Personnel Expenses
Other Administrative Expenses
Reorganization
Total without BBA and Fiat
BBA and Fiat
Total
2003
2,577
4,316
430
7,322
478
7,800
Banco Itaú Holding FinanceiraAdministrative Expenses
2002
2,488
4,040
716
7,244
7,244
Variation
89
276
(286)
78
556
14
Banco Itaú Holding FinanceiraFinancial Instruments – Market Value
Total Unrealized
Interbank Deposits
Securities and Derivatives
Reclassification of Additional Provision Additional Provision Adjustment of Securities Available for Sale Adjustment of Securities Held to MaturityCredit Operations
Investments (basically in BPI)
Time and interbank deposits and funds from
acceptance and Issuance of securities abroad
Securitization of payment orders abroad
Subordinated Debt and Treasury shares
R$ Million
Unrealized Income / (Loss) (1) (2)Income Equity
December/2003
2,677
2,048
10
1,556
-545758253319
627
33
74
58
10
688
-545
-143319
627
33
74
297
Income EquityDecember/2002
1,765 1,794
3
543
-760
(168)(49)(89)
285
1,673
170
682
3
456
(255)760
-(49)(89)
285
173
170
797
(1) Tax effects not considered.(2) Includes unrealized gains to minority interest amounting to R$ 307,036 (R$ 156,751 at 12/31/2002) on income and R$ 257,229 (R$ 116,966 at 12/31/2002) on stockholders' equity.
15
. The following slides show the pro forma information about Banco Itaú
and Banco Itaú BBA operations.
. In 2003, it was considered as if the integration process between Itaú
BBA and the corporate segment of Itaú occurred in the beginning of the
year.
. In the year of 2002, it was considered the sum of net income and other
accounts of Itaú BBA to the corporate segment of Banco Itaú, as well as
the required capital allocation.
. The balances and incomes of credit operations, private bank and asset
management of Itaú BBA in 2002 and 2003 were allocated to Banco Itaú.
Banco Itaú Holding FinanceiraPro Forma
16
Banco Itaú Holding FinanceiraPro Forma
Banco Itaú
2,420
8,619
28.1%
22,113
100,516
Banco Itaú-BBA
732
3,260
22.5%
22,468
29,693
R$ Million
Net Income
Stockholders’ Equity
ROE (%)
Credit Operations (*)
Total Assets
Banco Itaú
2,214
7,986
27.7%
19,629
81,763
Banco Itaú-BBA
591
2,903
20.4%
25,786
33,114
2003 2002
(*) Endorsements and Sureties included.
17
Banco Itaú Holding Financeira S.A.
Banco Itaú S.A.Banco Itaú-BBA S.A.
Important FactsBanco Itaú Holding Financeira
18
Banco Itaú Pro Forma
2003
9,021
(1,115)
4,895
(7,438)
(1,232)
(1,711)
2,420
8,619
28.1%
2002
9,195
(2,091)
4,324
(7,108)
(476)
(1,630)
2,214
7,986
27.7%
R$ Million
Financial Margin
Result from Loan Losses
Banking Service Fees
Administrative Expenses
Income Tax and Social Contribution
Other
Net Income
Stockholders’ Equity
ROE (%)
4th Q./03
2,369
(269)
1,289
(2,015)
(259)
(400)
715
8,619
37.5%
3rd Q./03
2,279
(315)
1,261
(1,935)
(319)
(331)
640
8,243
34.9%
19
Credit Cards21%
Mutual Funds and Managed
Portfolios9%
Insurance, Capitalization and Pension
Plans16%
Banco Itaú - Banking
54%
Banco Itaú Pro FormaConsolidated Net Income
Diversification of income sources Not only restricted to interest rates
Banco Itaú - Banking
49%Insurance,
Capitalization and Pension
Plans19%
Mutual Funds and Managed
Portfolios8%
Credit Cards24%
44thth Quarter 2003 Quarter 2003 20032003
20
Banco Itaú – Pro Forma Credit Operations (*) R$ Million
Corporate
Small and Medium Sized
Companies
Individuals
Mortgage Loans
Total
2,433
4,376
10,467
2,353
19,629
Var Dec/03
x Sep/03
19.6%
22.2%
7.5%
-3.2%
10.3%
Dec 31, 03
1,647
5,317
13,083
2,066
22,113
Dec 31, 02
(*) Endorsements and Sureties included.
Sep 30, 03
1,377
4,353
12,175
2,135
20,040
Var Dec/03
x Sep/02
-32.3%
21.5%
25.0%
-12.2%
12.7%
21
Banco Itaú – Credit Cards
Number of Credit Cards (thousand)
Turnover
Itaucard Net Income
Participation in Net Income of
Credicard
2003
5,780
10,603
442
140
2002
5,579
8,795
103
176
R$ Million
Variation
201
1,808
339
(36)
3.6%
20.6%
329.1%
-20.5%
22
Banco Itaú - Technical Provisions of Insurance, Capitalization and Pension Plans
2,825 3,3523,991
4,907923
906902
927
977
1,0211,077
1,1341,168
1,236
2,459
569
Dec-02 Mar-03 Jun-03 Sep-03 Dec-03
Technical Provisions - Pension Plans AGF
Technical Provisions - Capitalization Technical Provisions - Insurance
R$ Million
7,689
4,4034,808
5,388
6,086
• Growth of 75% in 2003• 2nd Largest in Pension Plans Market
23
Banco Itaú - Insurance, Capitalization and Pension Plans
2003 20023rd Q./034th Q./03
138Result of Ins., Cap. and Pension Plans 458 256102
97.6%Combined Ratio 97.2% 95.4%94.7%54.6%Claim Ratio 54.5% 52.9%52.8%
5,008
(2,578)
(358)
(1,508)
80
• 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)
3,311
(1,385)
(306)
(1,121)
40
1,253
(638)
(92)
(395)
27
1,622
(968)
(93)
(412)
34
156Operating Margin 646 540184
691
(643)
(241)
5
Financial Income
Administrative Expenses
Income Tax and Social Contribution
Other
391
(534)
(136)
(5)
207
(157)
(71)
3
176
(201)
(56)
(1)
R$ Million
24
Banco Itaú – Mutual Funds and Managed Portfolios
59,2 62,967,1
71,878,8
dez/02 mar/03 jun/03 set/03 dez/03
Assets under ManagementAssets under Management
R$ Billion
29
4236
50 52
4th Q./02 1st Q./03 2nd Q./03 3rd Q./03 4th Q./03
R$ MillionNet IncomeNet Income
Growth of 33% in volume of Mutual Funds and Managed Portfolios in relation to 2002
25
Banco Itaú 2004• Growth in Small and Medium Sized Companies Credit Portfolio – higher than the market average
• Growth in Individuals Credit Portfolio – close to the market average
• Expectation of lower default and lower margin
• Emphasis on Insurance, Capitalization and Pension Plans segment – growth higher than the market average
• Strict cost control
26
Banco Itaú Holding Financeira S.A.
Banco Itaú S.A.Banco Itaú-BBA
S.A.
Important FactsBanco Itaú Holding Financeira
27
Banco Itaú-BBA Pro Forma
4th Q./03
357
(172)
54
(92)
59
(67)
139
3,260
18.2%
3rd Q./03
486
(172)
62
(92)
(58)
(59)
167
3,221
22.4%
R$ Million
Financial Margin
Result from Loan Losses
Banking Service Fees
Administrative Expenses
Income Tax and Social Contribution
Other
Net Income
Stockholders’ Equity
ROE (%)
2003
1,977
(523)
226
(362)
(354)
(232)
732
3,260
22.5%
2002
1,353
(401)
248
(400)
(96)
(113)
591
2,903
20.4%
28
Banco Itaú-BBA Pro FormaNonperforming Loans
R$ Million
Dec 31, 03
211
17.864
1,2%
Nonperforming Loans
Credit Operations
NPL Ratio (%)
Sep 30, 03
198
18.124
1,1%
Variation
13
(260)
0,1%
Itaú BBA has a high quality credit portfolio with 93.8% of volume classified as “AA”, “A” and “B”.
29
Banco Itaú BBA 2004
• Maximization of synergies identified by the association, through the use of businesses opportunities.
• Increase of operations in Capital Markets.
• Increase the offer of structured products/derivatives focused on the needs of each corporate customer.
30
Banco Itaú-BBA S.A.
Banco Itaú Holding Financeira S.A.
Banco Itaú S.A.
Important FactsBanco Itaú Holding Financeira
31
Banco Itaú Holding FinanceiraImportant Facts
• Cancellation of listed company registration of Banestado, Bemge and Beg.
• Election of Tereza Grossi to the Board of Directors as the Financial Expert of the Audit Committee (to be approved in the next General Ordinary Shareholders Meeting).
• Stock Grouping approved by the Administrative Council:
• Bovespa – 1000 shares to 1 share
• Nyse –2 ADRs to 1 ADR
• Acquisition of AGF.
32
Banco Itaú Holding FinanceiraAGF Operation
(*) Not consolidated in December 31, 2003.
TotalLife Insurance Portfolio
AGF Vida e Previdência
R$ Million (Except where indicated)
GoodwillEquityBusiness Value
107123
13243
AGF Vida e PrevidênciaBanco AGF (*)Life Insurance PortfolioTOTAL
54123
-177
53
6326086212
740
Total AssetsTechnical ReservesNumber of Pension Plan Clients (Thousand)Number of Life Insurance Policy (Thousand)Insured Lives (Thousand)
-39
-12
740
63256962
--
33
4,956,04
7,47
15,86 15,99
21,41 21,36
27,67
1996 1997 1998 1999 2000 2001 2002 2003
CAGR = 27.9%
R$
Banco Itaú Holding FinanceiraEvolution of Net Income per Thousand Shares
Banco Itaú Holding Financeira S.A.
YE 2003 Results
February 19, 2004 - 3:00 p.m.
Alfredo Egydio SetubalInvestor Relations Director
Silvio de CarvalhoExecutive Director
Video Conference Presentation to:
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