Itaucred

1

Conference Call of the Results of the Conference Call of the Results of the

3rd Quarter/20073rd Quarter/2007

November 07, 2007

2

Highlights

2. The loan portfolio grew 8.8% in the quarter and 26.9% in the last 12 months:• Credit Cards: 6.8% in the 3rd Qtr/07 and 18.7% in the last 12 months;• Vehicles: 14.7% in the 3rd Qtr/07 and 62.1% in the last 12 months;• Small and Mid-Sized Companies: 9.8% in the 3rd Qtr/07 and 26.4% in the last 12 months.

1. Results:• 3rd Qtr/07: Net Income of R$ 2,428 million an increase of 14.8% compared to 2nd Qtr./07;

annualized ROE of 35.6% (Net Income of R$ 6,444 million for the nine months ended in Sep 30, 2007; annualized ROE of 33.3%);

• 3rd Qtr/07: Recurring Net Income of R$ 1,569 million, an 18.2% decrease; annualized ROE of 23.0% (Recurring Net Income of R$ 5,389 million for the nine months ended in Sep 30, 2007; annualized ROE of 27.9%).

4. Non-Recurring Events: • The sell of part of our shareholding in Redecard resulted in a positive impact of R$ 1.0 billion, after

taxes, in the 3rd Qtr/07.

5. Nonperforming Loans Ratio: Nonperforming loans ratio of 4.7%, representing a reduction compared to the prior quarter.

6. BIS Ratio: BIS ratio of 15.3%. Considering BACEN Circular Letter 3,367, which will be effective as from 4th Quarter of 2007, the BIS ratio in September 30, 2007 would be 18.5%.

3. Managerial Financial Margin:• The treasury performance under the highly volatility scenario prevalent in the period resulted in a loss

of R$ 64 million (R$ 40 million, after taxes) in the quarter.

3

Current Account Opening

Units

122,535130,694

143,594152,867 153,844

180,894

126,981

72,242

124,338130,331

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

mar-03 sep-03 mar-04 sep-04 mar-05 sep-05 mar-06 sep-06 mar-07 sep-07

4

Non Recurring Effects 1

1 For further details, please consult Itaú Holding’s Management Discussion and Analysis report – page 4.

R$ Million

  3rd Q./07 2nd Q./07Jan –

Sep./07Jan –

Sep./06

Net Income 2,428 2,115 6,444 3,029

Non Recurring Effects (859) (196) (1,055) 1,539

Managerial Financial Margin - 124 124 (645)

Result from Loan Losses - 400 400 149

Non-interest Expenses 303 96 398 118

Tax Expenses for ISS, PIS and Cofins - - - 16

Non-operating Results (1,552) (850) (2,402) (46)

Effects of BkB acquisition - - - 1,909

Minority Interests (24) (77) (101) (48)

Tax effects on non-recurring effects 415 111 526 85

Recurring Net Income 1,569 1,919 5,389 4,568

5

Highlights

  3rd Q/07 2nd Q/07 VarianceJan –

Sep./07Jan –

Sep./06Variance

Net Income 2,428 2,115 14.8% 6,444 3,029 112.7%

Recurring Net Income 1,569 1,919 -18.2% 5,389 4,568 18.0%

Recurring Net Income per share (R$) 1.31 1.60 -18.2% 4.49 4.07 10.4%

Stockholders’ Equity 28,003 26,546 5.5% 28,003 21,693 29.1%

Recurring ROE (Average Equity) annualized (%)

23.0% 29.8 % -6.8b.p. 27.9% 34.1% -6.2b.p.

Market Capitalization 110,747 103,219 7.3% 110,747 76,453 44.9%

Solvency Ratio (%) 15.3% 17.6% -230b.p. 15.3% 16.8% -150b.p.

Efficiency Ratio (%) (*) 47.1% 45.8% 130b.p. 45.6% 47.5% -190b.p.

Nonperforming Loans Ratio (%) 4.7% 5.1% -40b.p. 4.7% 5.2% -50b.p.

R$ Million

(*) If Treasury had performed in this quarter like the average of the last quarters - R$ 200 million – the efficiency ratio would be 45.2%.

6

Itaú Holding Pro Forma

3rd Q/07 2nd Q/07 VarianceJan –

Sep./07Jan –

Sep./06Variance

Managerial Financial Margin 4,825 5,250 -8.1% 15,059 12,211 23.3%

• Banking Operations 4,635 4,417 5.0% 13,421 11,163 20.0%

• Treasury (1) (64) 571 -111.2% 875 627 39.5%

• Management of Foreign Exchange Risk from Investments Abroad

253 262 -3.3% 763 420 81.5%

Banking Service Fees 2,529 2,550 -0.8% 7,500 6,641 12.9%

Managerial Financial Margin plus Banking Service Fees

7,354 7,800 -5.7% 22,559 18,852 19.7%

Result of Loan Losses (2) (1,330) (1,217) 9.3% (3,813) (3,827) -0.4%

Non Interest Expenses (3) (3,447) (3,524) -2.2% (10,251) (8,975) 14.2%

Recurring Net Income 1,569 1,919 -18.2% 5,389 4,568 18.0%

R$ Million

(1) It does not include the result of R$ 88 million which would be recognized if the liabilities were marked-to-market.(2) Credit transactions increased 8.8% in the quarter.(3) Include the effects of R$ 51 million of Collective Labor Agreement.

7

Net Interest Margin (NIM) x SELIC

13.3% 14.0% 13.5% 12.7% 12.5%11.3% 11.4%

16.5%15.3%

14.3%13.3% 12.8%

12.0%11.3%

1st Q./06 2nd Q./06 3rd Q./06 4th Q./06 1st Q./07 2nd Q./07 3rd Q./07

NIM SELIC

8

Loans by Type of Customer

  Sep 30,07 Jun 30, 07 Dec 31, 06 Sep 30,06Variance sep/07-jun/07

Variancesep/07-dec/06

Variancesep/07-sep/06

Individuals 49,174 45,035 40,358 37,463 9.2% 21.8% 31.3%

• Credit Cards 9,466 8,867 9,188 7,976 6.8% 3.0% 18.7%

• Personal Credit 14,149 13,886 13,156 13,721 1.9% 7.6% 3.1%

• Vehicles 25,558 22,282 18,014 15,766 14.7% 41.9% 62.1%

Company Loans 50,880 46,885 46,552 45,825 8.5% 9.3% 11.0%

• Corporate 31,247 28,982 30,312 30,294 7.8% 3.1% 3.1%

• Small and Medium Sized 19,633 17,903 16,240 15,532 9.8% 20.9% 26.4%

Mandatory Credit 1 5,853 5,711 5,896 5,740 2.5% -0.7% 2.0%

Argentina, Chile and Uruguay 8,164 7,190 842 841 13.6% 869.9% 871.1%

Total Loans 114,071 104,821 93,648 89,869 8.8% 21.8% 26.9%

1 Rural and Mortgage Loans – linked with the balances of Demand and Savings Deposits, respectively.

R$ Million

9

Loans by Type of Customer

12,77718,272

28,372

40,35849,174

27,768 30,480 34,095

46,55250,880

44,58153,275

67,756

93,648

114,071

dec-03 dec-04 dec-05 dec-06 sep-07

Individuals Companies Total

CAGR = 28.5%

CAGR = 17.5%

CAGR = 43.2%

R$ Million

10

Nonperforming Loans and Coverage Ratios

Nonperforming Loans Ratio Coverage Ratio (*)

NPL RatioNPL Ratio- IndividualsNPL Ratio- Companies

(*) Provision for loan losses / Credits overdue for more than 60 days, which are not accrued.

161%162%166%168%169%

sep/07jun/07mar/07dec/06sep/06

1.7%2.3%2.1%2.1% 2.2%

4.7%5.1%5.0%5.2% 5.3%

7.3%7.5%7.8%8.1%8.3%

Sep/06 Dec/06 Mar/07 Jun/07 Sep/07

11

Nonperforming Loans (NPL) by Segment

  

Sep 30, 07Jun 30, 07

Mar 31, 07

NPLCredit

PortfolioNPL

RatioNPL Ratio NPL Ratio

Itaubanco 2,553 42,162 6.1% 6.5% 6.8%Banking 2,264 37,005 6.1% 6.6% 6.9%Credit Cards – Account Holders 289 5,157 5.6% 5.8% 5.7%

Itaú BBA 16 26,024 0.1% 0.3% 0.1%Itaucred 2,301 35,647 6.5% 6.4% 6.1%Vehicles 1,572 27,571 5.7% 5.4% 5.1%Credit Cards – Non Account Holders 241 3,827 6.3% 7.0% 6.5%

Taií – FIT/FIC/FAI 475 1,796 26.5% 24.4% 28.7%Taií – Payroll Credit 13 2,453 0.5% 0.7% 0.5%Total 4,870 103,832 4.7% 5.1% 5.0%

R$ Million

12

Funding

   Sep 30, 07 Jun 30, 07 Sep 30,06

Variance (%)

Sep./07-Jun./07

Sep./07-Sep./06

Deposits 1 109,442 105,055 80,949 4.2% 35.2%

Investment Funds 181,469 180,121 166,822 0.7% 8.8%

Managed Portfolios 2 23,873 21,008 10,044 13.6% 137.7%

Technical Provisions Regarding to Insurance, Pension Plans and Capitalization

22,466 21,510 17,534 4.4% 28.1%

Subtotal – Clients 337,250 327,694 275,348 2.9% 22.5%

Funds from Acceptances and Securities Issued 7,327 7,899 7,568 -7.2% -3.2%

On-lendings 5,684 5,443 5,496 4.4% 3.4%

Repurchase Agreement – Third Part Portfolio 19,250 9,860 5,477 95.2% 251.5%

Subtotal - Market 32,261 23,202 18,541 39.0% 74.0%

Total 369,511 350,896 293,890 5.3% 25.7%

R$ Million

1 Includes Repurchase Agreement – Own Issue Securities.

2 On Jun 30, 07, includes the acquisition of two companies from Bank of America: BankBoston International (Miami) and Bank of America Trust

Company Ltd (Bahamas).

13

Funding

132,192161,746

200,482

288,367337,250

13,910

14,055

13,786

21,232

32,261

146,102

175,802

214,268

309,598

369,511

dec-03 dec-04 dec-05 dec-06 sep-07

Customers Market

R$ Million

CAGR = 28.1%

CAGR = 25.1%

CAGR = 28.4%

Total

14

Banking Service Fees

3rd Q/07 2nd Q/07 VarianceJan –

Sep./07Jan –

Sep./06Variance

Asset Management 1 521 504 3.5% 1,508 1,504 0.3%

Current Account Services 373 406 -8.4% 1,184 1,139 3.9%

Credit Cards 581 556 4.5% 1,682 1,433 17.4%

Loan Operations and Guarantees Provided

580 545 6.4% 1,622 1,203 34.8%

Collection Services 237 229 3.3% 688 659 4.4%

Other 238 232 2.2% 649 452 43.5%

Subtotal 2,529 2,472 2.3% 7,333 6,390 14.8%

Redecard Banking Service Fees 2 - 35 - 67 94 -29.0%

Serasa Banking Service Fees 3 - 42 - 100 157 -36.0%

Total 2,529 2,550 -0.8% 7,500 6,641 12.9%

R$ Million

1 Funds and Consortia Management Fees

2 We adjusted Redecard Banking Service Fees to reflect the participation change from 31.9% to 23.2% that occurred in July, 2007. Thus, the amount of R$ 35 million corresponds to the reduction of 870 b.p. in the 2nd Q./07.

3 Serasa results started to be recognized under the equity method of accounting.

15

Non Interest Expenses 1

3rd Q/07 2nd Q/07 VarianceJan –

Sep./07Jan –

Sep./06Variance

Personnel Expenses (1,375) (1,341) 2.6% (3,968) (3,574) 11.0%

Other Administrative Expenses (1,570) (1,624) -3.3% (4,734) (4,153) 14.0%

Other Operating Expenses (388) (460) -15.7% (1,225) (973) 25.9%

Tax Expenses (CPMF and Others) 2 (114) (100) 13.9% (325) (275) 18.2%

Total (3,447) (3,524) -2.2% (10,251) (8,975) 14.2%

1 Includes the effect of R$ 51 million due to Collective Labor Agreement

2 It does not include PIS, Cofins and ISS

R$ Million

16

Financial Instruments – Market Value

Unrealized Profits /(Losses)  1

 

At the Stockholders’ Equity

Sep 30, 07 Jun 30, 07 Sep 30,06

Interbank deposits 19 32 18

Securities and derivative financial instruments 210 220 153

Loan, lease and other credit operations 223 293 80

Redecard Participation 5,188 - -

Serasa Participation 352 - -

Investment in BPI 1,401 1,584 1,526

Parent company 826 934 899

Minority stockholders 575 650 626

Securitization of foreign payment orders (18) (13) (5)

Subordinated debt (64) (134) 21

Other liabilities 957 801 473

Total unrealized 8,268 2,782 2,265

R$ Million

1 It does not consider corresponding tax effects.

17

Segmentation (Pro forma)

ItaucredItaubanco

Banking

Credit Cards – Account Holders

Insurance, Capitalization and

Pension Plans

Investment Funds and Managed

Portfolio

Corporation

Itaú

Itaú BBA

Corporate Operations

&

Investment Banking

Vehicles

Credit Card – Non Account Holders

Taií: FIT, FIC (CBD), FAI (LASA) and Payroll Credit

NB: The organization chart of Itaucred segment reflects, chiefly, the transactions

carried out through channels intended for non current account holders.

18

Highlights of Pro Forma Segments

Itaubanco Itaú BBA Itaucred Corporation Itaú 1

3rd Quarter of 2007

Recurring Net Income 833 321 333 83 1,569

Allocated Capital Tier I 14,106 6,442 3,315 4,140 28,003

RAROC in the Quarter (% p.y.) 25.1% 21.6% 40.2% 7.0% 23.0%

Total Assets 245,703 105,852 35,125 8,113 298,484

2nd Quarter of 2007

Recurring Net Income 1,255 302 310 52 1,919

Allocated Capital Tier I 12,454 5,425 3,313 5,354 26,546

RAROC in the Quarter (% p.y.) 40.8% 23.8% 39.6% 3.9% 29.8%

Total Assets 207,752 85,110 30,951 9,966 255,418

R$ Million

1 It does not represent the sum of the parts, because there are transactions between the segments eliminated in the consolidated figures only.

19

Net Income

1,425 1,397

1,902 1,919

1,569

2,428

1,5921,579 1,628

1,352

2,115

1,280

1,460

1,498

71

1,902

1,4251,352

0

500

1,000

1,500

2,000

2,500

3,000

3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06 1Q/07 2Q/07 3Q/07

Net Income Recurring Net Income

R$ Million

20

APIMEC Meetings 2007

APIMEC Meetings 2007Itaúsa and Banco Itaú Holding Financeira

From 11:00 am to 1:30 pm – Presentations of Itaúsa and Subsidiaries Investor Relations Officers;

From 3:00 pm to 6:00 pm – Presentation of Banco Itaú Holding Financeira CEO and Executives Directors.

More information on: www.itausa.com.br and www.itauir.com

Date: December 5th, 2007 – Wednesday Where: Buffet Rosa Rosarum - São Paulo

RSVP: 0800 722 8880

Itaucred

21

Conference Call of the Results of the Conference Call of the Results of the

3rd Quarter/20073rd Quarter/2007

November 07, 2007