february 22, 2006 conference call about the results of 4 th quarter of 2005

February 22, 2006

Conference Call about the Results of 4th Quarter of 2005

2

Banco Itaú Holding Financeira S.A.

Highlights

3. Additional Provisions: Increase of the Exceeding Provisions for Loan Losses of R$ 370 million (R$ 170 million

in the quarter), totaling R$ 1,370 million; Reduction of R$ 30 million of Additional Provisions for Securities Portfolio totaling R$

370 million (reduction in 4th Q/05);

1. Results: 4th Q./05: Net Income of R$ 1,425 million with increase of 5.4% q-o-q; ROE annualized

42.5%; 2005: Net Income of R$ 5,251 million with increase of 39.1% y-o-y; ROE annualized

35.3%;

4. Non-performing Loans Ratio: 3.5% (Loans overdue for more than 60 days / Total Loans)

2. Growth of credit portfolio of 27.2% y-o-y and 10.0% q-o-q. Credit Cards: 40.1% y-o-y and 21.8% q-o-q. Vehicles: 80.1% y-o-y and 18.0% q-o-q.

5. Solvency Ratio (BIS Ratio): • High level of BIS ratio - 17.0%.

3


Perspectives of Banco Itaú Holding for 2005 stated in conference call on 2004 results.

1. Focus on increasing the credit portfolio to Individuals and to Small and Medium Sized Companies;

4


Growth of 27.2% of the credit portfolio y-o-y.• Individuals: 57.0% y-o-y.• Small Business and Middle Market: 31.6% y-o-y.

Breakdown of the Credit Portfolio

3

23.0% 28.7% 34.3%42.3%

9.6%

15.5%18.2%

18.9%

9.5%

9.1%

8.5%

57.8%46.8%

39.0%32.1%

6.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec/02 Dec/03 Dec/04 Dec/05

Individuals Small Business and Middle Market Restricted Loans Corporate

5




2. Consolidation of initiatives related to consumer loans;

6


5,002

9,73411,5121,328 1,345

2,439

2,555

2,779

3,301491

777

860

1,035

1,139

1,220

4,773 5,392 6,2728,395

7,381

2,351

1,241

92

432

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

3/31/2004 6/30/2004 9/30/2004 12/31/2004 3/31/2005 6/30/2005 9/30/2005 12/31/2005

Vehicles Credit Cards Taií Payroll Loans

Itaucred

Growth of 84.5% y-o-y of Net Income pro forma of Itaucred y-o-y, totaling R$ 525 million.

Credit Portfolio Own Stores

5

7





3. Costs constant in real terms, which will lead to an improvement in the efficiency ratio (on the same basis);

8


4th Q/05 3rd Q/05 Variation 2005 2004 Variation

Personnel Expenses (1) 1,046 1,062 -1.5% 4,034 3,320 21.5%

Other Administrative Expenses 1,422 1,245 14.2% 4,946 4,308 14.8%

Other Operating Expenses 377 220 71.3% 1,141 1,164 -2.0%

Tax Expenses (CPMF / Others) (2) 65 79 -18.2% 337 241 39.4%

Total 2,909 2,606 11.6% 10,457 9,033 15.8%

(-) Itaucred (3) (357) (331) 8.0% (1,097) (462) 137.5%

(-) Orbitall (198) (129) 53.5% (632) (270) 134.3%

Adjusted Total 2,354 2,146 9.7% 8,728 8,302 5.1%

R$ Million

(*) Based in managerial data.

(1) In 3rd Q/05 includes R$ 93 million related to the collective convention of work. (2) Do not includes PIS, COFINS and ISS.

(3) Includes non account holders credit cards holders and Taií.

Non-Interest Expenses*

Elevated efficiency ratio at 50.3% 2005 compared to 53.9% in the prior year.

7

9





4. Keeping the current growth expectations, we visualize that the present levels of ROE will continue steady;


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28.8%

33.1%

29.7% 29.2%

35.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001 2002 2003 2004 2005

ROE Evolution (%) *

Growth of 610 b.p. y-o-y

(*) This quarter, we have improved the calculation for the return on equity (ROE) and introduced the concept of Annualized Return on Average Equity, where the closing balance of equity has been replaced by its average balance. The average quarterly balance is obtained by the arithmetic average between the balance of the last day of the current quarter and that of the previous quarter. The average balance accumulated for the year is obtained by the arithmetic average of the balances of the last day of the last five quarters ( (Dec + Mar + Jun + Sep + Dec) / 5 ).

9

11






5. New Segment – starting in next quarter, disclosure of a new segment to reflect the performance of business areas related to consumer loans;


12






5. New Segment –starting in next quarter, disclosure of a new segment to reflect the performance of business areas related to consumer loans;

6. Perspectives of increasing of the non-performing loans ratio, due to the strategy of targeting operations with higher margins and higher risks.


13


3.53.3

3.02.92.9

5.6 5.65.8

5.2 5.3

0.9 0.81.1

1.3 1.3

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

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

NPL Ratio – Global NPL Ratio – Individuals

NPL Ratio – Business

192%200%203%

221%220%

0%

50%

100%

150%

200%

250%

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

Non-performing Loans Ratio and Coverage Ratio

NPL Ratio (*) Coverage (*)

(*) Provision for Loan Losses / Total Non-performing Loans(Loans overdue for more than 60 days)

(*) Loans overdue for more than 60 days

14






5. New Segment – Disclosure, starting in next quarter, of a new segment to reflect the performance of business areas related to consumer loans;

6. Perspectives of increasing of the non-performing loans ratio, due to the strategy of targeting operations with higher margins and higher risks.


15


R$ Million

Itaú Holding (pro forma)

(*) Evolution considerably influenced by the acquisition of Orbitall and Credicard. Impact of R$ 30 million between the 3rd and the 4th quarters of 2005 and of R$ 545 million between the years of 2004 and 2005.


Managerial Financial Margin 3,650 3,331 9.6% 13,272 10,634 24.8%

• Banking Operations 3,351 3,104 8.0% 12,017 9,231 30.2%

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

299 227 32.0% 1,254 1,403 -10.6%

Result from Loan Losses (971) (784) 24.0% (2,840) (935) 203.7%

Service Fees (*) 2,121 1,971 7.6% 7,738 6,166 25.5%

Non-Interest Expenses (2,909) (2,606) 11.6% (10,459) (9,034) 15.8%

Extraordinary Result - - 0.0% (192) (1,094) -82.5%

Net Income 1,425 1,352 5.4% 5,251 3,776 39.1%

Average Equity 15,394 15,128 1.8% 14,883 12,917 15.2%

ROE Annualized (%) 42.5% 40.8% 1.7 p.p. 35.3% 29.2% 6.1 p.p.

16


Dec 31, 05 Sep 30, 05 Dec 31, 04Dec 05 - Sep05

Dec 05 - Dec04

Individuals 28,691 25,593 18,272 12.1% 57.0% • Credit Card 7,216 5,926 5,150 21.8% 40.1%

• Personal Loans 10,320 10,211 6,926 1.1% 49.0%

• Vehicles 11,155 9,456 6,196 18.0% 80.1%Businesses 34,524 31,745 30,480 8.8% 13.3%

• Small Businesses and Middle Market 12,784 11,494 9,718 11.2% 31.6%

• Corporate 21,740 20,251 20,763 7.4% 4.7%

Restricted Loans (*) 4,541 4,278 4,523 6.2% 0.4%

Total - Loan Portfolio 67,756 61,616 53,275 10.0% 27.2%

R$ Million

Credit Portfolio

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

17



Dec 05 - Dec04


• Personal Loans 10,320 10,211 6,926 1.1% 49.0%


• Small Businesses and Middle Market 12,784 11,494 9,718 11.2% 31.6%

• Corporate 21,740 20,251 20,763 7.4% 4.7%



R$ Million


Credit Portfolio

18



Dec 05 - Dec04


• Personal Loans 10,320 10,211 6,926 1.1% 49.0%


• Small Businesses and Middle Market

12,784 11,494 9,718 11.2% 31.6%

• Corporate 21,740 20,251 20,763 7.4% 4.7%



R$ Million


Credit Portfolio

19



Banking Product (1) 4,042 3,694 9.4% 14,390 10,180 41.4%

Adjusted Results from Loan and Lease

Losses (2) (801) (734) 9.3% (2,605) (841) 209.7%

Adjusted Banking Product 3,240 2,960 9.5% 11,785 9,339 26.2%

Average of Credit Operations (3) 56,124 52,252 7.4% 51,702 40,932 26.3%

Adjusted Banking Product / Average of Credit Operations annualized

23.1% 22.7% 0.4 p.p. 22.8% 22.8% 0.0 p.p.

R$ Million

Contribution of Credit Portfolio

(1) Managerial Financial Margin + Banking Service Fees with operations of credit and credit cards – Taxes Expenses for PIS and COFINS.(2) Results from Loan and Lease Losses + Revision of classification (operations with real estate security) + Excess provision.(3) Average balance of credit portfolio net of non-performing operations.

20


R$ Million

(1) Asset Management and Consortium.

Service Fees


Management of Resources (1) 430 445 -3.2% 1,688 1,411 19.6%

Current Account Services 375 351 6.9% 1,429 1,230 16.1%

Credit Cards 539 470 14.7% 1,904 1,162 63.9%

Credit Operations and Guarantees Provided

371 320 16.0% 1,259 916 37.5%

Collection Services 220 216 1.8% 839 866 -3.2%

Other 185 169 9.5% 618 580 6.6%

Total 2,121 1,971 7.6% 7,737 6,165 25.5%

21


53.9%50.3%

2004 2005

44.0% 40.7%

58.9%54.3% 56.8%

48.0% 49.8% 50.8% 50.5% 50.1%

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

46.6% 43.8% 47.0%

39.9% 41.2% 40.3%40.6%40.9%

Efficiency Ratio– International

Efficiency Ratio

19

The blue bars indicate the efficiency ratio calculated using the international methodology.

The dashed red line indicates the efficiency ratio calculated by most of Brazilian banks.

21

Efficiency Ratio– National

22


Net Income 4th Q/05 3rd Q/05 Variation 2005 2004 Variation

Consolidated 1,425 1,352 5.4% 5,251 3,776 39.1%

R$ MillionNet Income per segment (pro forma)

23


Itaú

ItaucredItaú BBAItaubanco

Banking

Credit Cards (Account Holders)

Insurance, Pension Plans and

Capitalization

Mutual Funds and Managed Portfolio

Corporation

Corporate Operations

&

Investment Banking

Vehicles

Credit Cards (Non-Account Holders)

Taií

Segmentation (pro forma)

24



Itaubanco 888 785 13.1% 3,179 3,218 -1.2%

Itaú BBA 379 287 32.2% 1,242 829 49.9%

Itaucred 92 120 -23.6% 525 285 84.5%

Corporation 66 160 -58.7% 305 (555) 154.9%

Consolidated 1,425 1,352 5.4% 5,251 3,776 39.1%


25



Itaubanco

Itaubanco - Banking 536 534 0.3% 1,954 2,428 -19.5%

- Banking Operations 1,646 1,624 1.4% 6,288 5,450 15.4%

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

55 131 -58.5% 534 1,016 -47.5%

- Exceeding Provision (45) 23 -296.9% (154) (94) 63.7%

Credit Card - Account Holders 144 96 49.5% 489 213 129.3%

Insurance, Pension and Capitalization 160 114 40.1% 547 451 21.1%

Portfolio under management and Mutual Funds

48 40 18.9% 189 125 51.4%

Net Income Itaubanco 888 785 13.1% 3,179 3,218 -1.2%

Itaú BBA 379 287 32.2% 1,242 829 49.9%

Itaucred 92 120 -23.6% 525 285 84.5%

Corporation 66 160 -58.7% 305 (555) 154.9%

Consolidated 1,425 1,352 5.4% 5,251 3,776 39.1%

*

*

(*) To cover the expense for full amortization of goodwill from investments made in 2004 (accounted as extraordinary results at Corporation), we recognized in the income of period, the surplus of securities (accounted as net interest margin at Itaubanco).


26



Itaubanco 888 785 13.1% 3,179 3,218 -1.2%

Itaú BBA

Managerial Financial Margin 554 340 63.0% 1,740 1,249 39.4%

- Banking Operations 304 241 26.0% 1,004 923 8.8%

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

250 98 153.6% 737 326 125.9%

Result from Loan Losses 127 77 65.0% 298 210 42.1%

Service Fees 108 100 8.5% 383 307 25.0%

Non-Interest Expenses (234) (141) 66.6% (681) (622) 9.4%

Net Income Itaú BBA 379 287 32.2% 1,242 829 49.9%

Itaucred 92 120 -23.6% 525 285 84.5%

Corporation 66 160 -58.7% 305 (555) 154.9%

Consolidated 1,425 1,352 5.4% 5,251 3,776 39.1%


27



Itaubanco 888 785 13.1% 3,179 3,218 -1.2%

Itaú BBA 379 287 32.2% 1,242 829 49.9%

Itaucred

Vehicles 95 127 -25.0% 397 198 100.5%

- Excess Provisions (93) (46) 104.4% (267) - N/A

Credit Cards - Non-Account Holders 55 32 74.0% 234 97 140.0%

- Excess Provisions (1) (6) -83.4% 68 - N/A

Taií (59) (39) 52.2% (106) (11) 883.4%

- Excess Provisions (12) 1 -889.7% (12) - N/A

Net Income Itaucred 92 120 -23.6% 525 285 84.5%

Corporation 66 160 -58.7% 305 (555) 154.9%

Consolidated 1,425 1,352 5.4% 5,251 3,776 39.1%


28


R$

3,1523,776

5,251

2,377

3.33

4.76

2.77

2.14

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

Net Income per shareNet Income

R$ million

Note1: On october 3 was made a 900% split of the common and preferred shares traded at Bovespa and on october 6 was made a 400% split of the ADRs traded at

NYSE.

Note2: The values of the Net Income per share was adjusted to better analyzes.

Net Income and Net Income per Share.

19.8%

39.1%

20.7%

42.9%

29.0%

32.6%

29


0

100

200

300

400

500

600

700

800

900

1.000

1.100

1.200

1.300

95 96 97 98 99 00 01 02 03 04 05

Itaú (1)

Itaú (2)

Bovespa

In US$

100

863

323323

1,245Itaú(1) Itaú(2) Ibov.

10 years 28.69% 24.05% 12.45%

5 years 24.93% 20.52% 12.87%

12 months 64.86% 60.01% 44.83%

Annual Average Appreciation in US$

(*) December, 29

Preferred Shares AppreciationEvolution of US$ 100 invested from Dec/95 to Dec/05*

Asian Crisis

Russian Crisis

Real Devaluation Argentine

Crisis

Attack to WTC

Brazilian Election Period

(1) With dividends reinvestment (2) Without dividends reinvestment

30


• Organic growth of classic business lines;• Expansion of Insurance, Capitalization and Pension Plan business

areas;• Maintenance of Efficiency Ratio (same basis);• Growth of 25% in credit portfolio; • Expectation of moderate growth of non-performing loans ratio as a

consequence of targeting operations with higher margins and higher

risks (personal loans and credit cards).

2006

Itaubanco

31


• Focus on Investment Banking and banking services segments;• Continuous improvement of market risk management.

2006

Itaú BBA

32


• Growth of vehicle financing, developing new segments and presence

in regions less penetrated;• Consolidation and growth of partnerships with CBD (FIC) and Lojas

Americanas (FAI);• Growth of number of Taií´s Outlets (FIT)• New products launch at FIC, FIT and FAI;• Growth of operations with non-account holders;• Credicard / Orbitall integration on Itaú with operation gains;• Growth of 30% in credit operations;• Expectation of moderate growth of non-performing loans ratio as a

consequence of targeting operations with higher margins and higher

risks (personal loans and credit cards).

2006

Itaucred

33


Itaú Holding

• Disclosure of the impacts of operational risks, in compliance with

Basel II.

2006

February 22, 2006

Conference Call about the Results of 4th Quarter of 2005

february 22, 2006 conference call about the results of 4 th quarter of 2005

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