3 rd Annual Brazil Conference NYC May 21, 2008

Transcription

1 3 rd Annual Brazil Conference NYC May 21, 2008 Itaú Securities Roberto Setubal CEO Ouvidora Corporativa Itaú 0 0 Key Economic Indicators Base scenario External cr Period GDP 3.8% 5.4% 4.8% 3.8% 4.7% 3 Potential GDP 4.5% 5.0% 4.5% 4.5% 4.3% 4 Average Selic 15.3% 12.1% 12.3% 12.9% 12.6% 13 CPI (IPCA) inflation 3.1% 4.5% 5.2% 4.1% 6.1% 4 Consumption 4.6% 6.5% 4.8% 4.3% 4.0% 3 Investment 11.2% 13.8% 12.5% 7.9% 9.1% 3 Investment-GDP ratio 17.0% 18.3% 20.3% 21.1% 20.1% 20 Trade Balance (US$ billion) Nominal exchange rate Ouvidora Corporativa Itaú 1 1 1

2 Ownership Structure Mar/2008 ESA Family: 34.14% Common Shares: 60.78% Preferred Shares: 17.57% Itaúsa Free Float: 65.86% Common Shares: 39.22% Preferred Shares: 82.43% Bank of America: 7.49% Common Shares: 3.31% Preferred Shares: 12.09% (36,935 shareholders) Free Float: 47.35% Common Shares: 10.34% Total: % Common Shares: % Preferred Shares: 87.91% Banco Itaú (70,296 shareholders) Other Companies Itaubanco Itaú BBA Itaucred Creation of Shareholder Value CAGR(96-07) = 24.5% Market Value 62.6 US$ Billion (*) 08 Ouvidora Corporativa Itaú 3 (*) On May 16,

3 Banco Itaú Market Value May 1 St Industrial and Commercial Bank of China 2. China Construction Bank 3. HSBC Group 4. Bank of America 5. JP Morgan Chase & Co. 6. Santander 7. Citigroup 8. Bank of China 9. Mitsubishi UFJ Holdings 10. UniCredit 11. Wells Fargo & Co. 12. Intesa San Paolo 13. BNP Paribas 14. BBVA 15. Goldman Sachs 16. China Merchants Bank 17. USB AG US$ Billion May 1 St Sberbank 19. Bradesco 20. Bank of Communications 21. RBS Group 22. Credit Suisse 23. Sumitomo 24. Itaú Holding 25. Mizuho Financial Group 26. Deutsche Bank 27. RBC Financial Group 28. Barclays 29. US Bancorp 30. Wachovia Corp. 31. American Express 32. Credit Agricole 33. Morgan Stanley 34. Bank of New York Mellon 35. Merrill Lynch & Co. Source: UBS Investment Research, May 1 st US$ Billion Highlights Assets (R$ billion) 27.1% Stockholders Equity (R$ billion) CAGR: 25.0% CAGR: 24.1% 17.2% mar/07 mar/ mar/07 mar/08 Credit Operations (R$ billion) 36.2% CAGR: 24.9% CAGR: 22.6% Deposits and Assets under Management (R$ billion) 20.0% mar/07 mar/ mar/07 mar/08 Deposits Funds and Managed Portfolio 5 3

4 Highlights Financial Margin (R$ billion) Banking Services Fees Insurance, Pension and Cap. Results (R$ billion) CAGR: 19.3% CAGR: 16.6% Q/07 1Q/ % % Q/07 1Q/08 Non-interest Expenses (R$ billion) Net Profit (R$ billion) CAGR: 11.5% CAGR: 21.2% % % Q/07 1Q/ Q/07 1Q/08 6 Highlights Branches CSBs (1) 4.3% ATMs (2) CAGR: 1.7% CAGR: 9.2% 3.3% 3,533 3,383 3,528 3,386 3,184 3,192 3,172 3,073 3,174 21,150 22,036 23,096 23,739 20,021 17,926 13,777 23,101 23, Q/07 1Q/ Q/07 1Q/08 Total Clients (thousands) 10.1% Employees 6.4% CAGR: 13.9% CAGR: 6.3% 66,442 21,866 23,908 18,031 13,758 14,670 10,883 11,878 24,501 22,252 59,921 65,089 45,409 51,036 43,215 42,450 45,316 62, Q/07 1Q/ Q/07 1Q/08 (1) Customer Site Branches. (2) Automated Teller Machine. 7 4

5 Highlights Branch Network (in Brazil) Market Share 13.9% 12.0% dec/01 feb/08 Balance (Mar/08) 2,594 Branches Current Account Holders (1) 11.9% dec/ % mar/ Current Account Holders (in Million) Loans 7.8% dec/ % feb/ R$ Billion AUM 10.5% dec/ % feb/ R$ Billion (1) Was opened 1,598 thousand current accounts in 2005, 1,710 thousand in 2006 and 1,815 thousand in Highlights in (%) Efficiency Average ROE BIS Ratio ROA Average T/08 (*) (*) Annualized 9 5

6 Net Interest Margin (NIM)(*) x SELIC 16.5% 15.3% 14.3% Variation 1Q06 x 1Q08: SELIC = -31.5% NIM = -17.3% 13.3% 12.8% 12.0% 11.3% 11.3% 11.3% 13.3% 14.0% 13.5% 12.7% 12.5% 11.3% 11.4% 11.1% 11.0% 1Q/06 2Q/06 3Q/06 4Q/06 1Q/07 2Q/07 3Q/07 4Q/07 1Q/08 Ouvidora NIM Corporativa Selic Itaú 10 (*) Treasury Results are not included. 10 Recurring Net Income In R$ Billion 1stQ/08 1stQ/07 Variation R$ Billion 2004 Managerial Financial Income % Customer Operations % Market Operations (1) (22.3)% Services Fee Income (2) % Result from Insurance, Pension Plans and Capitalization before Retained Claims % Banking Product % Result from Loan Losses (1.6) (1.3) 25.0% (5.1) (5.3) (2.8) (1.0) Non-Interest Expenses (3,5) (3.3) 6.2% (14.0) (12.3) (10.4) (9.0) Recurring Net Income 2, % (1) Considers: Treasury Management of forex risk on overseas investments. (2) Include other Income of R$ 0.1 billion in 1Q/08 and R$ 0.2 billion in 1Q/07 Ouvidora Corporativa Itaú

7 11% 9% 7% 5% 3% 1% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Banco Itaú Investments in Technology 2,323 R$ Million CAGR (02-07) = 9.6% 1,858 1,977 1,251 1,331 1,180 1,225 1,473 1,599 1, (1) Hardware Software Total (1) Forecast for Efficiency Ratio 58.2% 54.5% 53.9% 7.6% 7.3% 50.3% 47.6% 46.2% 6.9% 6.9% 5.9% 43.3% 4,7% 4.5% (*) st Q/08 Recurring Non-interest Expenses / Total Assets (*) 1 st Quarter 2008 annualized. Efficiency Ratio 13 7

8 Loans by Type of Customer R$ billion Mar/08 Mar/07 Var.% M08/M07 Individuals % Credit Cards % Personal Credit Vehicles % 65.0% Company Loans % Corporate % Small and Medium Sized % Directed Loans (*) Mortgage Loans Rural Credit % 19.7% 20.0% Argentina, Chile and Uruguay % Total % 1 Rural and Mortgage Loans Loans linked to outstanding demand and savings account deposits, respectively. Ouvidora Corporativa Itaú Loans by Type of Customer R$ Billion CAGR = 23.5% CAGR = 14.7% CAGR = 39.7% Dec/02 Dec/03 Dec/04 Dec/05 Dec/06 Dec/07 Mar/08 Individuals Companies Total 15 8

9 Non-Performing Loans and Coverage Ratios Non-performing Loans Ratio Coverage Ratio (*) 8.1% 7.8% 7.5% 7.3% 6.9% 7.0% 5.3% 5.0% 5.1% 4.7% 4.4% 4.3% 168% 166% 162% 161% 157% 149% 2.2% 2.1% 2.3% 1.7% 1.6% 1.4% dec/06 mar/07 jun/07 sep/07 dec/07 mar/08 dec/06 mar/07 jun/07 sep/07 dec/07 mar/08 NPL Ratio - Total NPL Ratio - Individuals NPL Ratio - Companies (*) Provision for loan losses / Credits overdue more than 60 days, which are not accrued. Ouvidora Corporativa Itaú Provision for Loan Losses and Credit Portfolio 8.4% 8.3% 7.6% 6.9% 6.5% 1,504 1,476 1,631 1,565 1, % 1.6% 1.6% 1.4% 1.5% 1st Qtr/07 2nd Qtr/07 3rd Qtr/07 4th Qtr/07 1st Qtr/08 Recurring Expenses for Provision for Loan Losses (R$ million) Recurring Expenses for Provision for Loan Losses / Credit Portfolio Provision for Loan Losses / Credit Portfolio Ouvidora Corporativa Itaú

10 Funding and Managed Resources Demand Deposits Average Balance Saving Accounts Time Deposits Mortgage notes / Debentures (repurchase agreements) (1) Total Account Holders Institutional Customers (2) Total Funding Customers Investment Funds Managed Portfolios Technical Provisions of Insurance, Pension Plans and Capitalization (3) Total - Customers Interbank Deposits Foreign borrowings through securities On-lendings Mar 31, 08 23,500 28,379 26,206 42, ,976 13, , ,158 38,310 25, ,262 1,576 3,554 7,076 Dec 31, 07 23,218 27,981 20,986 35, ,532 14, , ,552 34,825 23, ,239 1,616 3,452 6,117 Mar 31, 07 18,124 23,233 14,834 27,253 83,444 18, , ,836 11,434 20, ,109 2,307 3,913 5,348 Mar/08- Dec/07 1.2% Variance (%) 1.4% 24.9% 21.3% 12.5% -5.6% 10.4% 0.3% 10.0% 5.5% 5.0% -2.5% 3.0% 15.7% R$ Million Mar/08- Mar/ % 22.1% 76.7% 57.4% 45.0% -25.1% 32.4% 4.8% 235.0% 24.9% 23.7% -31.7% -9.2% 32.3% (4) Total Resources 393, , , % 23.1% Ouvidora Corporativa Itaú Financial Instruments Market Value R$ Million At the Stockholders Equity Unrealized Income /(Losses) (*) Mar 31,08 Dec 31,07 Mar 31,07 Interbank deposits Securities and derivatives Loan, lease and other credit operations Stake in Redecard 4,374 4,326 - Stake in Serasa Stake in Bovespa Stake in BM&F Stake in VISA Stake in BPI , ,645 Parent company Minority stockholders Securitization of foreign payment orders 11 - (24) Subordinated debts (63) (63) (105) Other liabilities Total unrealized 7,163 8,489 2,458 (*) It does not consider corresponding tax effects. Ouvidora Corporativa Itaú

11 RAROC* per segment (pro forma) RAROC 1Q/2008 4Q/2007 Variation Itaubanco 34.0% 30.8% 3.2 p.p. Itaucred 39.0% 39.3% -0.3 p.p. Itaú BBA 26.5% 18.3% 8.2 p.p. Corporation Consolidated (*) Return on Average Tier 1 Allocated Capital. 7.8% 27.2% 9.6% -1.8 p.p. 25.1% 2.1 p.p. Recurring Net Income by segment 1Q/08 R$ million 1,979 1, Itaubanco Ouvidora Corporativa Itaucred Itaú Itaú BBA Corporation Consolidated Net Income x Recurring Net Income 8,474 CAGR = 26.7% 6,195 7,179 CAGR = 25.1% 5,443 4,870 5,251 3,717 3,080 4,309 3,776 1,918 2,353 3,152 1,518 2,389 2, ,128 1,869 1, Net Income (R$ Million) Net Income per Share (R$) Recurring Net Income (R$ Million) Recurring Net Income per Share (R$) 21 11

12 Equity Operations Segment - Banco Itaú BBA S.A. Fixed Income Operations 3rd place by volume and # of transactions in 2005, 2006 and nd place by volume and # of transactions in ,672 1st place in volume and in # of transactions on 2004, 2005, 2006, 2007 and , , , , , ,217 3,005 2, YTD # of Transactions Volume (R$ million) Source: Offering Memoranda with 100% of credit to bookrunners. As of March 31, M&A Transactions YTD ABS Transactions # of Transactions Volume (R$ million) 2nd place by # of transactions in 2006 Assisted 3 of 5 most important transactions in st place in volume on 2005, 2006, 2007 and 2008 and in # of transactions on 2005, 2006 and , YTD # of Transactions Source: Thomson Financial. As of March 31, YTD # of Transactions Volume (R$ million) Source: Anbid. As of March 31, Ranking March st 2 nd 3 rd 4 th Net Income Bank s Net Income Insurance s Net Income ROE Stockholders Equity Assets Securities Total Loans Personal Loans Corporate Loans Total Resources Demand Savings Deposits Time Deposits AUM Ouvidora Corporativa Itaú

13 Ranking March st 2 nd 3 rd 4 th Branches ATMs Credit Cards (Billing) Account Holders (BACEN) Financial Volume - Collection Technical Provision SUSEP Insurance Pension Plans Capitalization Ouvidora Corporativa Itaú Forecasts for 2008 Credits to Individuals to increase by 30% Vehicle Financing to increase by 40% Credits to SME to increase by 35% (*) Mortgage Loans to increase by 50% Increase in Banking Service Revenues by 8% Efficiency Ratio to remain at current levels Delinquency Ratio to remain at current levels Investments of US$ 100 million: 2 new broker dealers (Tokyo and Dubai) and 3 new representative officers (Singapore, Beijing and Abu Dhabi) (*) New Guidance (Previous 25%) Ouvidora Corporativa Itaú

14 Average Daily Negotiated Volume * BOVESPA * Until April 30, NYSE TOTAL BOVESPA NYSE TOTAL Apr R$ Million BOVESPA São Paulo Stock Exchange NYSE New York Stock Exchange 26 Preferred Shares Appreciation in US$ Evolution of US$ 100 invested from May16, 1998 to May 16, ,000 1,800 1,600 1,400 1,200 1, years 5 years Russian Crisis Annual Average Appreciation in US$ 12 months Real Depreciation Itaú(1) Itaú(2) Ibov % 57.89% 35.20% Argentina Crisis WTC Attack 25.63% 53.11% 31.43% Brazilian Election Period 16.63% 58.35% 67.62% Increase on FED Rates Subprime 1, (1) With dividends reinvestment (2) Without dividends reinvestment (3) São Paulo Stock Exchange 27 14

15 3 rd Annual Brazil Conference NYC May 21, 2008 Itaú Securities Roberto Setubal CEO Ouvidora Corporativa Itaú