Conference Call Results of the 1st Quarter/2006 May 10, 2006

Conference Call

Results of the

1st Quarter/2006

May 10, 2006

2

Banco Itaú Holding Financeira S.A.

Highlights

3. Additional provisions: R$ 130 million increase in the excess provision for loan losses in the quarter, reaching the

balance of R$ 1.5 billion; R$ 90 million reversal of additional provision for securities in the quarter, remaining the

balance of R$ 280 million.

1. Results: Net Income of R$ 1,460 million in the 1st Qtr/06, a 2.5% increase in comparison to the previous

quarter and a 27.9% increase in comparison to the 1st Qtr/05; annualized ROE of 36.3%. Earnings per Share reached R$ 1.32 in 1st Qtr/06, growing 32.0% in comparison to 1st Qtr/05.

4. Nonperforming Loans Ratio: Nonperforming loans ratio of 4.0%.

2. 6.3% growth in the loan portfolio in the quarter: Personal Loans: 11.0% in the quarter and 35.3% in the last 12 months; Vehicles: 13.9% in the quarter and 71.3% in the last 12 months;

5. BIS Ratio: • Maintenance of the high level of 16.9%.

3


R$ Million (except where indicated)

Highlights

1st Qtr/06 4th Qtr/05 Variation 1st Qtr/05

Net Income 1,460 1,425 2.5% 1,141

Earnings per share (R$) 1.32 1.29 2.3% 1.00

Stockholders' Equity 16,619 15,560 6.8% 14,629

Annualized ROE (%) (Linear) 36.3% 37.0% -70 b.p. 31.9%

Market Capitalization 70,895 62,156 14.1% 49,449

BIS Ratio (%) 16.9% 17.0% -10 b.p. 18.3%

Efficiency Ratio (%) 45.4% 50.1% -470 b.p. 49.8%

Nonperforming Loans Ratio (%) 4.0% 3.5% 50 b.p. 2.9%

4


12.6%

15.1%

11.0%

12.9%13.6%

14.3%13.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

3rd Qtr/04 4th Qtr/04 1st Qtr/05 2nd Qtr/05 3rd Qtr/05 4th Qtr/05 1st Qtr/06

Evolution of the Net Interest Margin (%)

(*)

(*) After adjustments for extraordinary items in the amount of R$ 612 million described in the Management Discussion and Analysis report for the 4th Qtr/04.

5


R$ MillionItaú Holding Pro Forma 1st Qtr/06 4th Qtr/05 Variation 1st Qtr/05

Managerial Financial Margin 4,073 3,650 11.6% 2,986

• Banking Operations 3,628 3,351 8.3% 2,607

• Treasury 296 134 120.5% 233

• Management of FX Risk from Investments Abroad

149 165 -9.9% 146

Result of Loan Losses (1,287) (971) 32.5% (594)

Banking Service Fees 2,121 2,121 0.0% 1,794

Non-Interest Expenses (2,782) (2,909) -4.4% (2,371)

Net Income 1,460 1,425 2.5% 1,141

Average Stockholders' Equity 16,089 15,394 4.5% 14,300

Annualized ROE (%) 36.3% 37.0% -0.7 p.p. 31.9%

6


Loans by Type of Customer R$ Million

(*) Farming and agribusiness Credit and Mortgage Loans – Linked to available funds from Demand and Savings Deposits.

Mar 31, 06 Dec 31, 05 Mar 31, 05Var.

Mar/06 - Dec/05

Var. Mar/06 - Mar/05

Individuals 30,813 28,471 20,770 8.2% 48.4%

• Credit Cards 6,904 7,216 5,033 -4.3% 37.2%

• Personal Loans 11,457 10,320 8,467 11.0% 35.3%

• Vehicles 12,451 10,936 7,270 13.9% 71.3%

Businesses 36,703 34,744 31,905 5.6% 15.0%

• Small and Medium Sized Companies

13,741 12,784 10,496 7.5% 30.9%

• Corporate 22,962 21,960 21,408 4.6% 7.3%

Mandatory Loans (*) 4,529 4,541 4,338 -0.3% 4.4%

Total Loans 72,046 67,756 57,012 6.3% 26.4%

7


Composition of the Loan Portfolio

28.5% 28.3% 29.9% 34.3% 36.4% 38.9% 41.5% 42.0% 42.8%

17.5% 17.7% 18.4%18.2% 18.4% 19.0% 18.7% 18.9% 19.1%8.3% 8.4% 9.1%

7.6% 7.2% 6.9% 6.7% 6.3%

45.6% 45.6% 42.5% 39.0% 37.6% 34.8% 32.9% 32.4% 31.9%

8.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

Individuals Small and Medium-Sized CompaniesMandatory Loans Corporate

8


Contribution from the Change in the Mix of the Loan Portfolio

R$ Million

(*) Average balance of the loan portfolio, net of loans overdue for more than 60 days, which do not generate revenue .

1st Qtr/06 4th Qtr/05 1st Qtr/05

Managerial Financial Margin – Banking Operations (A) 3,628 3,351 2,607

Service Fees with Loans and Credit Cards (B) 847 888 684

Tax Expenses for PIS and COFINS (C)

(208)

(197)

(153)

Banking Product (D = A + B + C) 4,267 4,042 3,138

Adjustment 1 – Result of Loan Losses (E)

(1,287)

(971)

(594)

Adjustment 2 – Excess Provision (F) 130 170 150

Adjusted Result of Loan Losses (G = E + F)

(1,157)

(801)

(444)

Adjusted Banking Product (H = D + G) 3,111 3,240 2,694

Average Loans (*) (I) 59,942 56,124 47,754

Annualized Adjusted Banking Product / Average Loans (H/I)

20.8% 23.1% 22.6%

9


Coverage Ratio (*)

181%192%

200%203%221%220%

210%204%202%

0%

50%

100%

150%

200%

250%

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Nonperforming Loans and Coverage Ratios

(*) Balance of Provision for Loans Losses / Balance of Loans overdue for more than 60 days and that do not generate income.

Nonperforming Loans Ratio (%)

3.5

4.0

5.8

6.5

1.11.3 1.3

1.5

4.0

3.53.2

2.9 2.9 3.03.3

5.66.0

5.35.25.6

6.5

7.3

0.80.9

1.51.81.9

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Nonperforming Loans Ratio - OverallNonperforming Loans Ratio - IndividualsNonperforming Loans Ratio - Businesses

10


R$ Million

Banking Service Fees

(1) Investment Funds and Consortiums.


Asset Management (1) 449 430 4.3% 398

Current Account Services 386 375 2.9% 349

Credit Cards 487 539 -9.7% 437

Loans and Guarantees Issued 388 371 4.3% 271

Collection Services 224 220 1.7% 209

Other 189 185 1.9% 131

Total 2,121 2,121 0.0% 1,794

11


Non-Interest Expenses

(1) Not including PIS, Cofins and ISS.


Personnel Expenses 1,132 1,046 8.2% 955

Other Administrative Expenses 1,230 1,422 -13.5% 1,101

Other Operating Expenses 338 377 -10.2% 239

Tax Expenses (CPMF / Others) (1) 82 65 26.5% 76

Total 2,782 2,909 -4.4% 2,371

R$ Million

12


Efficiency Ratio

(*) For further details about the Managerial Financial Margin, please consult Itaú Holding’s Management Discussion and Analysis report.

Non-Interest Expenses (Personnel Expenses + Other Administrative Expenses +Other Operating Expenses + Tax Expenses for CPMF and Other Taxes)

(Managerial Financial Margin (*) + Banking Service Fees + Results from Insurance, Pension Plans and Capitalization Operations +Other Operating Income + Tax Expenses for PIS/COFINS/ISS)

EfficiencyRatio

54.3%56.8%

48.0% 49.8% 50.8% 50.5% 50.1%45.4%

58.9%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

53.9%

50.3%

13


(1) Does not take into consideration the corresponding tax effects.

Financial Instruments – Market Value

R$ Million

Unrealized Profits/(Losses) (1)In Stockholders' Equity

3/31/06 12/31/05 3/31/05

Interbank Deposits 34 27 4

Securities and Derivatives 466 538 555

Loans 275 153 216

Investment in BPI 1,381 824 765

Securitization of Foreign Payment Orders 3 (3) 91

Subordinated Debt (41) (57) 74

Other Liabilities 347 293 441

Total Unrealized 2,465 1,774 2,147

14


Itaú

ItaucredItaú BBAItaubanco

Banking

Cards – Current Account Holders

Insurance, Pension Plans

and Capitalization

Investment Funds and

Managed Portfolio

Corporation

Corporate Operations

&

Investment Banking

Vehicles

Cards – Non Current Account

Holders

Taií, FIC (CBD) and FAI (LASA)

Segmentation (Pro Forma)

NB: The organization chart of the Itaucred segment basically reflects the transactions carried out in channels intended for non current account holders.

15


R$ MillionHighlights of the Pro Forma Segments

(1) Does not represent the sum of the parts, because there are transactions between the segments that were eliminated only in the consolidated figures.

(2) Includes endorsements and sureties.

Itaubanco Itaú BBA Itaucred Corporation Itaú (1)

March 31, 2006

Net Income of the Quarter 824 390 130 115 1,460

Tier I Allocated Capital 9,371 4,354 2,028 865 16,619

RAROC in the Quarter (% p.a.) 38.9% 36.0% 28.0% 32.9% 36.3%

Loan Portfolio (2) 28,479 24,921 18,646 - 72,046

Total Assets 127,221 43,163 17,653 3,023 163,204

December 31, 2005

Net Income of the Quarter 888 379 92 66 1,425

Tier I Allocated Capital 7,603 4,328 1,688 1,941 15,560

RAROC in the Quarter (% p.a.) 47.2% 37.0% 22.9% 12.2% 37.0%

Loan Portfolio (2) 26,878 24,067 16,811 - 67,756

Total Assets 115,808 43,256 15,955 4,497 151,241

Itaubanco

16

R$ Million

Itaubanco Pro Forma


Managerial Financial Margin 2,529 2,135 18.5% 1,994

• Banking Operations 2,414 2,080 16.0% 1,736

• Treasury 11 (67) -116.3% 156


104 121 -13.9% 103

Result of Loan Losses (928) (671) 38.4% (434)

Banking Service Fees 1,721 1,741 -1.1% 1,544

Non-Interest Expenses (2,097) (2,120) -1.1% (1,933)

Net Income 824 888 -7.1% 801

Tier I Allocated Capital 9,371 7,603 23.3% 7,588

Annualized RAROC (%) 38.9% 47.2% -840 b.p. 44.3%

Itaubanco

17

Diversified profit sources

Pro Forma Net Income by SubsegmentR$ Million


Itaubanco - Banking 454 536 -15.4% 469

• Banking Operations 342 459 -25.4% 263

• Treasury 7 (44) -116.3% 103


104 121 -13.9% 103

Credit Cards – Current Account Holders 165 144 14.5% 135

Insurance, Pension Plans and Capitalization

158 160 -1.5% 132

Investment Funds and Managed Portfolio 48 48 1.4% 65

Net Income 824 888 -7.1% 801

Itaubanco

18

Credit Cards – Current Account Holders - Pro Forma

R$ Million (except where indicated)


Managerial Financial Margin 283 279 1.5% 209


Banking Service Fees 356 408 -12.7% 339

Non-Interest Expenses (261) (344) -24.1% (318)

Net Income 165 144 14.5% 135

Tier I Allocated Capital 552 661 -16.5% 457

Annualized RAROC (%) 108.9% 94.7% 1420 b.p. 122.9%

Number of Cards (thousands) 8,603 8,510 1.1% 7,518

Billing 4,310 4,986 -13.6% 3,636

Itaubanco

19

R$ Million

Insurance, Pension Plans and Capitalization - Pro Forma


Earned Premiums 630 594 6.2% 529

Results from Pension Plans and Capitalization

60 71 -15.0% 55

Retained Claims (360) (323) 11.3% (295)

Marketing Expenses (148) (132) 12.6% (108)



Net Income 158 160 -1.6% 132

Combined Ratio (%) 91.2% 92.2% -100 b.p. 90.9%

Claim Level (%) 57.9% 53.2% 460 b.p. 51.2%



Itaú BBA

20

R$ Million

Itaú BBA - Pro Forma



• Banking Operations 281 304 -7.4% 219

• Treasury 285 206 38.7% 82


44 44 1.2% 43

Result of Loan Losses 13 127 -89.8% 56

Banking Service Fees 131 108 20.8% 79


Net Income 390 379 2.9% 247



Itaucred

21

R$ Million

Itaucred - Pro Forma• Transactions carried out in channels intended for non current account holders customers.


Financial Margin 820 732 12.0% 445


Banking Service Fees 270 276 -2.0% 172


Net Income 130 92 41.8% 96

• Vehicles 115 95 20.7% 9

• Credit Cards – Non Current Account Holders

50 55 -9.1% 98

• Taií (35) (59) -40.2% (11)


Annualized RAROC (%) 28.0% 22.9% 510 b.p. 37.0%

22


R$

Net Income and Earnings per Share

776 807 854 876949 920

1,0301,141

1,333 1,352 1,425 1,460

714

0.71 0.75 0.77 0.84 0.91 1.001.19 1.21 1.29 1.32

0.810.680.63

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

Earnings per ShareNet Income

R$ Million

27.9%

NB: The earnings per share was adjusted to reflect the 900% stock split carried out in Oct/05.

32.0%

23


Acquisition of the Operations of BankBoston in Latin America

Itaú and Itaúsa announced the signature on 05/01/2006 of an agreement with Bank of America involving the acquisition of BankBoston in Brazil and the exclusive rights to acquire other operations in Latin America.

Payment through the issuance of 68,518 thousand new non-voting Itaú shares, equal to an approximate 5.8% share of Itaú’s total capital.

Based on the non-voting shares average price on 04/28/2006, these newly-issued shares would be valued at R$ 4.5 billion, and a goodwill of R$ 2.2 billion (net of tax effects). The goodwill write-offs should not impact dividends/interest on own capital distributions to the shareholders base.

The key drivers for the acquisition agreement were: Leadership in assets under management, custody and in the high net worth individual and large corporate sectors; Economies of scale in the large corporate and middle market segment; Acquisition of a premium credit card client base; Opportunity to expand into foreign markets in which Itaú does not currently have a presence.

24


Reinforcement in Corporate Governance

Expansion of the Compensation Committee through the creation of

the Appointments and Compensation Committee, which will, in

addition to provide guidance on the policy of compensation for the

directors of the subsidiaries, analyze and propose names for

appointment to the Executive Board, make known situations of

potential conflict of interests and propose criteria for evaluating the

activities of the Board of Directors;

Election of the fifth independent member of the Board: Dr. Gustavo

Loyola, former chairman of the Brazilian Central Bank;

Approval of an age limit (75 years) to members of the Board;

Approved the Internal Charter of the Board of Directors, which

establishes rules of functioning, functions, self-evaluation and others.

Conference Call

Results of the

1st Quarter/2006

May 10, 2006

Documents

Conference Call Results of the 1st Quarter/2006 May 10, 2006