Quarterly Management Discussion & Analysis (MDA300905.pdf)

Activities AbroadActivities AbroadBanco Itaú Holding Financeira occupies a prominentplace amongst the private capital economic groupswith a presence abroad.This presence is borne out by strategically located unitsin the Americas, Europe and Asia, which afford itimportant synergy in financing foreign trade, in placingEurobonds, in providing more sophisticated financialoperations (Structured Notes), and in private bankingat Banco Itaú Europa Luxemburgo.At September 30, 2005, Itaú's consolidated investmentsabroad totaled R$ 6,096 million (US$ 2,743 million),including non-financial business.Highlights - Units AbroadR$ MillionAssets 6,799 9,049 Higher profit from the realization of the appreciation ofStockholder's Equity 1,805 1,886 securities and from financial derivative instruments, partiallyIncome accumulated in the Financial Year (20) (58) offset by contra-entries in Brazil.Income in the Quarter 39 (78)Quarterly annualized ROA 2.3% -3.4%Quarterly annualized ROE 8.9% -15.5%Assets 2,906 2,926 Lower profit from securities and financial derivativeStockholder's Equity 1,272 1,318 instruments.Income accumulated in the Financial Year 62 42Income in the Quarter 20 35Quarterly annualized ROA 2.7% 4.9%Quarterly annualized ROE 6.3% 11.1%Assets 1,221 1,296 Higher profit coming from the reduction of administrativeStockholder's Equity 218 231 costs.Income accumulated in the Financial Year 1 0Income in the Quarter 1 (2)Quarterly annualized ROA 0.3% -0.7%Quarterly annualized ROE 1.9% -3.8%Assets 7,386 7,684Stockholder's Equity 1,049 1,103Income accumulated in the Financial Year 96 84Income in the Quarter 12 14Quarterly annualized ROA 0.7% 0.7%Quarterly annualized ROE 4.7% 5.0%Recurring income.Assets 9,200 8,998 Higher profit due to the renegotiation of credit transactionsStockholder's Equity 1,750 1,792 with a company from the electricity sector, trading andIncome accumulated in the Financial Year 72 27 appreciation of securities and financial derivative instrumentsIncome in the Quarter 45 (43) that are part of the strategy with counterparties in Brazil.Quarterly annualized ROA 2.0% -1.9%Quarterly annualized ROE 10.7% -9.2%(1) BBA-Creditanstalt Bank Ltd., Banco Itaú-BBA S.A. - Nassau Branch, BBA Representaciones S.A., Banco BBA-Creditanstalt S.A. - Sucursal Uruguai, Nevada Woods S.A., Karen International Ltd., MundostarS.A., AKBAR - Marketing e Serviços Ltda., BBA Overseas Ltd and BBA Icatu Securities, INC.45 Management Discussion and AnalysisBanco Itaú Holding Financeira S.A.