Conference Call about the Results of 3 rd Quarter 2003 Banco Ita Holding Financeira S.A. November 5 th, 2003 1 Highlights R$ Million (Except were indicated) 3 rd Q./ , % 2,747 23, % 46.8% 4.71% Net Income Stockholders Equity ROE (%) Net Interest Margin Market Capitalization Solvency Ratio (%) Efficiency Ratio (%) NPL (%) 2 nd Q./ , % 2,479 21, % 45.8% 4.65% Variation 4.0% 6.4% -80 b.p. 10.8% 10.4% 300 b.p. 100 b.p. 6 b.p. 2 Statement of Income Net Interest Margin Provision for Loan Losses Credits Recovered Banking Service Fees Administrative Expenses Net Income Total Assets 3 rd Q./03 2,747 (659) 173 1,301 (1,952) ,982 2 nd Q./03 2,479 (484) 136 1,229 (1,797) ,799 Var. (%) 10.8% 36.2% 27.2% 5.9% 8.6% 4.0% 11.4% * Reclassifications in the 2 nd quarter results were made for comparison purposes without effects on net income. R$ Million (Except were indicated) 3 ROE Annualized ROE over 30% for the 5 th consecutive quarter 4 Consolidated Net Income Diversification of income sources Not restricted only to interest rates 5 Banking Ita 3 rd Q./03 1,704 (275) 855 (1,484) (112) (381) nd Q./03 1,521 (284) 825 (1,350) (154) (338) 220 Variation (134) 43 (43) 88 R$ Million Net Interest Margin Result from Loan Losses Banking Service Fees Administrative Expenses Income Tax and Social Contribution Other Net Income The above table shows the Pro-Forma Statement of Income of the Ita Banking Segment, considered as if the corporate reorganization currently under way had been concluded. The allocation of the operations was done in a purely informative manner, with the objective of showing roughly how the operation of this segment would look. Adjustments are still to be carried out. 6 Banking Ita-BBA 3 rd Q./ (175) 61 (93) (81) (45) nd Q./ (34) 45 (99) (223) (28) 187 Variation (3) (141) (17) 3 R$ Million Net Interest Margin Result from Loan Losses Banking Service Fees Administrative Expenses Income Tax and Social Contribution Other Net Income The above table shows the Pro-Forma Statement of Income of the Ita BBA Banking Segment, considered as if the corporate reorganization currently under way had been concluded. The allocation of the operations was done in a purely informative manner, with the objective of showing roughly how the operation of this segment would look. Adjustments are still to be carried out. 7 Consolidated Net Income Credit Cards Segment Average Income of R$ 140 million per Quarter R$ Million Jan-Sep/03 Income of R$ 446 million growth of 165% in relation to 2002 8 Insurance, Capitalization and Pension Plans Variation3 rd Q./03 R$ Million 2 nd Q./03 15 (26) (16) 3 (20) 84 (20) 21 Earned Premiums Result of Capitalization Pension Plans Retained Claims Selling Expenses Administrative Expenses Financial Income Income Tax and Social Contribution Other (245) (92) (143) 207 (76) (229) (95) (123) 124 (56) %Combined Ratio (*)99.3% 54.6%Claim Ratio (*)53.9% 147 Net Income41106 (*) Do not includes Health Insurance companies. 9 Technical Provisions of Insurance, Capitalization and Pension Plans R$ Million 3,765 4,403 4,808 5,388 6,086 Growth of 62% in relation to September, 2002 10 Investment Funds and Managed Portfolio Assets Under Management R$ Billion R$ Million Net Income 11 Securities Total Trading Securities Available for Sale Securities Held to Maturity Securities Derivatives Assets R$ Million 30,409 Market Value 10,961 15,849 2,092 1,506 29,676 Cost 10,912 15,169 2,092 1,502 Sep. 30, ,051 Market Value 9,312 14, ,825 25,415 Cost 9,298 13, ,734 Jun. 30, ,570 Market Value 8,844 14,522 1,016 2,188 26,513 Cost 8,830 14,261 1,016 2,406 Mar. 31, Mark to Market Adjustment Stockholders Equity (A) 545 1,224 1, Additional Provision (B) Unrealized Results (A) + (B) 12 Credit Operations Credit Operations and Guarantees R$ Million (*) September 30, ,927 31,323 09/30/2003 Ita Holding without BBA and FIAT Credit Operations Credit Operations + Guarantees 28,302 33,080 06/30/2003 13 Credit Operations (*) By Currency Foreign Currency Local Currency Total Sep 30, 03 12,503 30,196 42,699 (*) Includes Endorsements and Sureties Jun 30, 03 13,412 31,174 44,586 Sep 30, 02 14,234 25,453 39,687 Variation % Sep/03 Jun/ % -9.4 % -4.2 % Variation % Sep/03 Sep/ % % 7.6 % R$ Million By Segment Corporate Small and Medium Sized Companies Individuals Credit Cards Real State Finance Individuals Businesses TOTAL Sep 30, 03 24,036 4,353 9,454 2,721 2, ,699 Jun 30, 03 25,830 4,077 9,672 2,809 2, ,586 Sep 30, 02 23,921 3,573 6,875 2,844 2, ,687 Variation % Sep/03 Jun/ % 6.8 % -2.2 % -3.1 % -2.4 % % -4.2 % Variation % Sep/03 Sep/ % 21.8 % 37.5 % -4.3 % % % 7.6 % R$ Million 14 Provision for Loan Losses R$ Million Minimum Provision Additional Provision Total Provision 15 Nonperforming Loans and Coverage Ratio Coverage Ratio (*) Nonperforming Loans Ratio Global Nonperforming Loans Ratio Individuals Nonperforming Loans Ratio Businesses (*) Provision for Loan Losses / Total Nonperforming Loans Nonperforming Loans Ratio (%) 16 Banking Service Fees R$ Million 3 rd Q./ ,301 2 nd Q./ ,229 Mutual Funds Management Fees Collection Current Account Services Tax Collection Interbank Fees Credit Operations Credit Cards Income from Guarantees Provided Income from Administration of Consortium Other Total Variation % 12.0% 15.6% 0.0% -2.6% 3.9% 1.5% -4.0% 0.0% 6.3% 24.2% 5.9% 17 Administrative Expenses R$ Million 3 rd Q./ ,102 1,952 2 nd Q./ ,064 1,797 Personnel Expenses Remuneration Social Charges Social Benefits / Training Reorganization Collective Labor Agreement Bonuses Other Administrative Expenses Total Variation % 16.1% 9.0% 9.9% 4.4% 8.3% 3.6% 8.6% 12.6% Collective Labor Agreement 2003/2004 18 Efficiency Ratio (*) (*) Accumulated in the last 12 months. Intense efforts to optimize operating expenses and improve efficiency Efficiency Ratio Accumulated (*) Efficiency Ratio 19 Unrealized Result Not including excess allowance for loan losses of R$ 913 million in Sep/03 R$ Million % Real Plan Russian Crisis Real Devaluation US$ Mexican Crisis Asian Crisis Argentine Crisis Atack to WTC Ita (1) Ita (2) Ibov. 10 years 24.70%20.49%7.34% 5 years 16.29%12.58%-2.04% %103.24% Annual Average Appreciation in US$ (1)With reinvestment of dividends (2)Without reinvestment of dividends Preferred Shares Appreciation Evolution of US$ 100 Invested from Nov to November 4, 2003 21 Banking Panel: 2:30 pm with Ita Holdings executives Date: November 17, 2003 Time: 10:30 am to 5:00 pm Place: New York Subject: What trends are shaping the Brazilian Economy? What does the future holds for investors in Brazilian companies? Participants: Over 20 leading Brazilian listed companies and Brazilian Government authorities. Sponsoring Entities: