Quarterly Management Discussion & Analysis (MDA300905.pdf)

Executive SummaryConsolidated Statement of IncomeR$ Million• Banking Operations 3,104 - - 3,104• Treasury 48 - - 48• Management of Foreign Exchange Risk from Investments Abroad -net of tax effects 427 35 (284) 178Provision for Loan and Lease Losses (1,070) (4) - (1,074)Credits Recoveries and Renegotiated 291 - - 291Banking Service Fees 1,971 - - 1,971Result from Operations of Insurance, Capitalization and Pension Plans 183 - - 183Non-Interest Expenses (2,595) (11) - (2,606)Tax Expenses for ISS, PIS and COFINS (408) - 36 (372)Equity in the Earnings of Associated Companies (15) 32 - 17Other Operating Income 44 1 - 45Non-Operating Income 4 1 - 552 (248)(4) 248- -- -20 (48) - (28)- -Reconciliation with Managerial Financial Margin from Management of Foreign Exchange Risk from Investments Abroad (table in the previous page): R$ 427 million + R$ 35 million = R$ 462 million.R$ Million• Banking Operations 2,956 - - 2,956• Treasury 182 - - 182• Management of Foreign Exchange Risk from Investments Abroad -net of tax effects 594 94 (522) 166 -Provision for Loan and Lease Losses (671) (10) - (681)Credits Recoveries and Renegotiated 190 -- 190--(934) 45 66 (823)Banking Service Fees 1,851 1 - 1,852Result from Operations of Insurance, Capitalization and Pension Plans 192 - - 192Non-Interest Expenses (2,540) (33) - (2,573)Tax Expenses for ISS, PIS and COFINS (421) - 66 (356)Equity in the Earnings of Associated Companies (121) 112 - (9)Other Operating Income 106 (35) - 71 -Non-Operating IncomeReconciliation with Managerial Financial Margin from Management of Foreign Exchange Risk from Investments Abroad (table in the previous page): R$ 594 million + R$ 94 million = R$ 689 million.5 Management Discussion and AnalysisBanco Itaú Holding Financeira S.A.