2Consolidated Net Income Growth
1,869
9391,128
721 880
1,841
2,389
1,518
1,918 2,354
17.2% 18.9%
31.6% 27.7% 31.5%
1997 1998 1999 2000 2001
Consolidated Net IncomeConsolidated Recurring IncomeROE %
3Consolidated Net Income Growth per Thousand Shares
12.87
16.662.98
-0.67
7.466.04
-4.00
0.00
4.00
8.00
12.00
16.00
20.00
1997 1998 1999 2000 2001
R$ / Thousand Shares
15.85 15.99
Extraordinary Income
21.410.32
21.09CAGR: 37.2%
4Consolidated Stockholders’ Equity Growth
4,198
7,5786,642
5,907
4,651
01,000
2,0003,000
4,0005,000
6,0007,000
8,000
97 98 99 00 01
R$ MillionDecember, 2001Market CapitalizationR$ 19,582 Million
Jan/97 to Dec/01Dividends R$ 2.6 BillionCapital Increase 0
5Statements of Income
R$ Million (Except where showed)
2001
Total Assets
2000 Var. (%)
Financial Margin
Provisions for Loan Losses
Service Fee Income
Administrative Expenses
Recurrent Income
Extraordinary Results
Net Income
81,807 69,555 17.6
6,707(1,445)
4,190(6,179)
2,35336
2,389
5,311(770)3,465
(5,183)1,918
(77)1,841
26.387.720.919.222.7
-31.229.8
Net Income per Thousand Shares (R$)
ROE Recurrent (%)
ROA(%)
21.4131.1%2.9%
15.9928.9%2.6%
33.9
7
4.6 4.95.5
6.07.2
1.11.8 1.4
1.01.0
0.50.1
0.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Dec-97 Dec-98 Dec-99 Dec-00 Dec-01
Itaú * Banerj & Bemge Beg Banestado
Expansion of Customer Base12/31/01
Banco Itaú: 7,0 Banerj: 0,8 Bemge: 0,2 Banestado: 0,1 Beg 0,5 Itaú Buen Ayre: 0,2 TOTAL 8,7
Million
(*) includes: Itaú, Personnalité and Itaú Buen Ayre
8Growth in Nº of Points of Sale
1,244
1,763 1,765
2,1182,259
726 835 780 877 925
8,876
10,77111,715 12,064
13,777
0
500
1,000
1,500
2,000
2,500
3,000
1997 1998 1999 2000 20010
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Branches CSBs ATMs
9Credit Operations
Credit Operations Credit Operations and Guarantees
14,05816,890
23,67416,077
19,596
27,253
29,615
14,414
16,916
34,282
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
36,000
1997 1998 1999 2000 2001
11Income Statement
Financial Margin
Provisions for Loan Losses
Service Fee Income
Administrative Expenses
Recurrent Income
Extraordinary Results
Net Income
Total Assets
3rd Q./01
81,749
4th Q./01
1,717
(435)
1,148
(1,603)
491
(258)
234
81,807
Var. (%)
1,955
(397)
1,053
(1,682)
630
69
699
-12.2
9.6
9.0
-47
-22.1
-473.9
-66.5
R$ Million (Except where showed)
12Recurrent Consolidated Statements of – 4th Quarter of 2001 R$ Million
4th Q./012.3892.156
234(257)(378)
8932
49148
(599)
3102426629
443
Net Income for the Year(-) Net Income up to 3rd QuarterNet Income for the 4th Quarter(=) Extraordinary Income for 4th Quarter BEG Acquisition Effects FUNBEP Provision Reversal Other EffectsFourth 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 provisionsRecurring income from aforementioned events (a – b)
13
R$ Million
Large CompaniesSmall and medium sizeCompaniesIndividualsCredit Cards
Subtotal
HousingIndividualsCompanies
Subtotal
Total
Dec 31,01
18,864
3,1526,6692,772
31,457
2,600224
2,825
34,282
Dec 31,00
14,723
2,6094,4862,130
23,948
2,979326
3,305
27,253
Credit Operations by Customer Profile
Var Dec/01x Dec/00
28.1%
20.8%48.7%30.1%31.4%
-12.7%-31.2%
-14.5%
25.8%
Credit Operations
Sep 30,00
18,956
2,7676,4622,364
30,550
2,718218
2,936
33,485
Var Dec/01x Sep/001
-0.5%
13.9%3.2%
17.2%3.0%
-4.3%-2.8%
-3.8%
2.4%
14Credit Operations
RiskLevels Individuals Companies
AA – A
B - D
E - H
2,792
7,554
1,690
12,420
4,501
658
14
198
1,143
21
93
385
1%
3%
68%
0%
2%
59%
Total 12,036 17,579 1,355 499 11% 3%
Portfolio Provision Balance CoverageIndividuals CompaniesIndividuals Companies
R$ Million
15Credit Operations
Individuals Companies
Credit Operat.
Income
Provision
Expenses
Net Contribution
2001 2000 VariationIndividuals CompaniesIndividuals Companies
R$ Million
3,729
1,190
3,311
255
2,310
587
2,337
183
1,419
603
974
72
2,539 3,056 1,723 2,154 816 902
16Non Accrual and Coverage Ratios
Coverage Ratio (*)
4.45 4.21 5.014.394.25
9.9311.10
1.501.21
0.0
2.0
4.0
6.0
8.0
10.0
Dec/00 Mar/01 Jun/01 Sep/01 Dec/01
193% 190% 189% 186% 173%
Dec/00 Mar/01 Jun/01 Sep/01 Dec/01
Total Non Accrual
Individuals Non Accrual
Companies Non Accrual
(*) Provision for Loan Losses / Non Accrual
Non Accrual Ratio
17
4.8 4.9 4.8 4.8
6.0 5.95.3
5.8 6.06.3 6.3 6.2 6.4
6.8 7.06.5
7.2 7.26.9
7.4
3.5 3.3 3.4 3.53.9
3.6 3.6 3.84.0
4.6 4.45.0 5.1 5.0
4.7 4.8
5.8 5.8 5.86.3
Market (1)Itaú
Individuals Credit *Default of 15-90 days / Total Portfolio (%)
(*) Includes: Personnal and Vehicles Acquisition Credit (1) Source: BACEN
18The 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
19Highlights - 2001
R$ MillionItaúSudameris Br.
Net Income 2,389178ROE (%) 31.513.9Total Assets 81,80718,716Credit Operations 34,2828,359Funding and Resources under Management 55,79613,154Banking Service Fees 4,190322Branches Network (Brazil) 2,259292% of Credit Portfolio Risk AA, A, B and C 87.387.0Efficiency Ratio (%) 54.763.5Employees 45,4096,531
Itaú +Sudameris Br.
--
100,52342,641
68,9504,5122,551
-
--
20Itaú Buen Ayre – Effect of “Pesification”
Estimated Consolidated Effect
Provisions already constituted by Itaú Brazil (B) 200
Itaú Buen Ayre equity at 12/31/01 346Itaú Buen Ayre equity after Devaluation and “Pesification” 224Expected Effect on Brazilian Consolidated Results (A) (122)
Additional Provision after Pesification Effect (A + B) 78
Parity:Real/Dollar 2.3204
R$ Million
21Itaú Buen AyreCredit Portfolio Sensitivity
R$ Million
Management may allocate any amount that may be necessary to cover the above-mentioned deficit from the surplus of avaliable provisions of ITAÚ CONSOLIDATED
that were set up for reasons of market volatility, totalling R$ 1,265 million.
PortfolioMinimum
RiskMaximum
Risk
IndividualsCompanies - Subsidiaries of multinationals with operations in ArgentinaCompanies - Others
170
20088
43
518
119
3035
Total 458 65 184
Total Allowance for loan lossesExcess allowance for loan losses after the “Pesification” effect
(45)
(78)
(45)
(78)
Shortage (surplus) (58) 62
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
•New range of opportunities in the US market
•Improve the perception that the US investors have
Financial Holding Company
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.
high level of capitalization
superior quality of management
Broker-Dealer: 2nd Semester 2002
23
Growth of Daily Average Volume of Shares Traded
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
ANO NÍVEL1 NÍVEL 2
Bovespa
OTCNYSE
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.
US$ Thousand
1 Year prior Level I Launching
Level I Launching until Level II Launching
Level II Launching until March 1st
24Opportunities
• 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