Quarterly Management Discussion & Analysis (MDA300905.pdf)

Analysis of the Consolidated PerformanceThe coverage ratio of the balance of allowances for loan Non Performing LoansR$ Millionlosses over the balance of transactions that have ceasedto accrue revenues reached 200.4% at September 30, 2005.Total Non Performing Loans (a) 1,824 1,593 1,491Abnormal Portfolio (*)R$ MillionAbnormal Portfolio 3,624 3,185 2,956Total Allowance (3,656) (3,242) (3,288)Excess of Allowance 32 57 332(*) Abnormal Portfolio is the total of installments overdue for more than 15 days.Provision for Loan and Lease Losse (3,656) (3,242) (3,288)Credit Portfolio (b) 55,573 52,348 50,980NPL Ratio [ (a) / (b) ] x 100 3.3% 3.0% 2.9%(a) Loans overdue for more than 60 days and without generation of revenues on the accrualmethod.(b) Endorsements and Sureties not included.Coverage Ratio (*)189%198%202%204%210%220%221%203%200%Sep 30, 03 Dec 31, 03 Mar 31, 04 Jun 30, 04 Sep 30, 04 Dec 31, 04 Mar 31, 05(*) Provision for Loan and Lease Losses / Total Non Performing LoansJun 30, 05Sep 30, 05Movements of Credit PortfolioR$ MillionNew Contracts 8,227 14,433 22,660 7,136 13,787 20,923Accrual/ Movements (1,461) (1,931) (3,392) (1,381) (2,355) (3,737)Settlement (3,501) (11,886) (15,387) (3,040) (12,062) (15,101)Write-off (575) (81) (656) (657) (60) (717)Movements of Provision for Loan LossesR$ MillionNew ContractsRisk Level TransferRevision of Classification - Operations with CollateralAccrual/ MovementsSettlementExceeding AllowanceTotalWrite-offExchange Variation on the Provision Balance Abroad16 Management Discussion and AnalysisBanco Itaú Holding Financeira S.A.