Unassociated Document

The shares of Itaú Unibanco Holding, including those issued in exchange for shares of Unibanco and Unibanco Holdings, commenced trading under the same symbol on March 31, 2009. In May 2009, the trading symbols were standardized to “ITUB” on all the stock exchanges where Itaú Unibanco Holding’s securities are listed. At the extraordinary shareholders’ meeting held on November 28, 2008, our shareholders approved the change of our corporate name from Banco Itaú Holding Financeira S.A. to Itaú Unibanco Banco Múltiplo S.A. At the extraordinary shareholders’ meeting held on April 24, 2009, our shareholders approved a further change of our corporate name to Itaú Unibanco Holding S.A. Finally, at the extraordinary shareholders’ meeting held on April 30, 2009, the shareholders of Itaú Unibanco approved the change of the corporate name of Banco Itaú S.A. to Itaú Unibanco S.A.

As of December 31, 2009, we were the largest bank in Brazil based on market capitalization according to Bloomberg.

Since the Association, we have been working on the integration of the operations of the two banks. The main integration initiatives in 2009 included:

• the adoption of a new corporate governance structure by the board of directors

• the integration of the corporate, investment banking, brokerage, asset management, vehicle lending, private banking and treasury divisions, which have been operating on an unified basis since the first quarter of 2009

• the interconnection of ATMs

• reporting under a single annual report and the adoption of unified corporate governance policies and risk management.

In addition, in the second half of 2009, we began the integration process of Unibanco branches under the “Itaú” brand and we expect to complete this process by the end of 2010.

Recent Developments

In April 2010, Itaú Unibanco issued subordinated notes worth US$1 billion at the fixed rate of 6.20% per annum maturing in 2020. The notes were offered only to qualified institutional investors in the U.S. and to non-U.S. investors outside the United States, and may not be offered or sold in the secondary market and/or U.S. territory due to offering and trading restrictions. This financing aims at the expansion of our capital base, thus enabling a higher growth of loan and financing operations.

Statistical Disclosure by Bank Holding Companies

See “Item 4B. Business Overview – Selected Statistical Information” for additional information relating to our business.

Capital Expenditures and Divestitures

In 2007, we sold equity interests held in (i) Serasa S.A., or Serasa, (ii) Redecard, (iii) Bovespa Holding S.A., or Bovespa Holding, and (iv) Bolsa de Mercadorias e Futuros – BM&F S.A., or BM&F, which are summarized below.

Serasa

In June 2007, we disposed of part of our interest in the capital stock of Serasa to Experian Brasil Aquisições Ltda., or Experian Brasil, a Brazilian subsidiary of Experian Solutions, Inc. Serasa is a leading provider in Brazil of analytical and information products and services for credit and business support. The disposition corresponded to 1,321,371 shares comprising 35.5% of the total shares of Serasa. On the same date, we and another bank (Bradesco group) formed BIU Participações S.A., or BIU, for the purpose of holding the Serasa shares owned by us and the other bank. On October 11, 2007, BIU sold an additional 11,025 shares of Serasa to Experian Brasil. We received approximately R$1,230 million as a result of both transactions. As of December 31, 2009, Itaú Unibanco indirectly owned, through BIU, 16.1% of the total capital stock of Serasa and the right to appoint two members to Serasa’s board of directors.

Redecard

In July 2007, Banco Itaucard S.A. and Unibanco Participações Societárias S.A. sold approximately 107.6 million common shares (16.4% of the total capital) of Redecard, generating revenue of R$1,967 million after taxes. Subsequently, on March 2009 we obtained control of Redecard.

Bovespa Holding

In October 2007, in connection with the initial public offering of Bovespa Holding, Itaú Unibanco and Itaú BBA sold 11.4 million shares of Bovespa Holding and Unicard Banco Múltiplo S.A., or Unicard, sold 23.3 million shares of Bovespa Holding for R$23.00 per share. The transaction generated income after taxes of R$164 million for Itaú Unibanco Holding and R$320 million for Unibanco Holdings. Since the merger of BM&F with Bovespa Holding in 2008, the name of Bovespa Holding has been BM&FBOVESPA. As of December 31, 2009, we held 3.0% of the capital stock of BM&FBOVESPA.

BM&F

In November 2007, in connection with the initial public offering of BM&F, Itaubank Distribuidora de Títulos e Valores Mobiliários S.A., or Itaubank Distribuidora, Itaú Corretora de Valores S.A., or Itaú Corretora, Itaú Unibanco and Itaú BBA sold 10.4 million shares of BM&F and Unicard sold 4.5 million shares of BM&F for R$20.00 per share. In addition, prior to the initial public offering of BM&F, Itaubank Distribuidora, Itaú Corretora, Itaú Unibanco and Itaú BBA sold 3.4 million shares for R$11.00 per share to GA Latin America Investments LLC and Unicard sold 1.5 million shares for R$11.00 per share to General Atlantic Private Equity Group. These transactions generated income after taxes of R$150 million for Banco Itaú Holding and R$62 million for Unibanco Holdings. Since the merger of BM&F with Bovespa Holding in 2008, the name of BM&F has been BM&FBOVESPA.

In 2009, we sold equity interests held in (i) Unibanco Saúde Seguradora S.A., and (ii) Allianz Seguros S.A.

Unibanco Saúde Seguradora S.A.

On December 16, 2009, Itaú Seguros S.A., or Itaú Seguros, and Itaú Unibanco entered into an agreement with a subsidiary of Tempo Participações S.A. for the sale of all the shares of Unibanco Saúde Seguradora S.A., held by Itaú Seguros and Itaú Unibanco, for R$55 million. Depending on the performance of Unibanco Saúde Seguradora S.A. in the 12-month period after the closing date of the transaction, Itaú Seguros and Itaú Unibanco may be entitled to an additional payment of up to R$45 million. The Brazilian antitrust authorities approved the transaction in December 2009. The National Agency of Supplemental Health (Agência Nacional de Saúde Suplementar), or ANS, approved the transaction on April 1, 2010. The closing of the transaction occurred on April 29, 2010.

Allianz Seguros S.A.

On December 29, 2009, Allianz South America Holding B.V. entered into an agreement with Itaú Unibanco Holding for the purchase for R$109 million of the 14.03% indirect interest that Itaú Unibanco Holding held in Allianz Seguros S.A. The transaction was closed on January 14, 2010 and approved by the antitrust authority in March 2010. We notified SUSEP of the transaction.

See “Item 5B. Liquidity and Capital Resources–Capital–Capital Expenditures” for a discussion of our capital expenditures for the last three fiscal years.

4B. Business Overview

Our principal categories of operations are banking, which includes commercial bank through Itaú Unibanco and corporate and investment banking through Banco Itaú BBA S.A., or Itaú BBA, consumer credit to non accounts holders and our corporate and treasure activities. We provide a wide variety of credit and non-credit products and services directed towards individuals, small and middle-market companies and large corporations.

As of December 31, 2009, we were:

the largest private bank in Brazil based on market capitalization according to Bloomberg

the largest private manager of pension fund assets in Brazil, based on assets under management, according to ANBIMA

the largest mutual fund manager among private banks in Brazil based on our assets under management, according to ANBIMA

the largest manager of private bank client assets, according to ANBIMA

the largest leasing company in Brazil (measured by of present value of lease operations), according to ABEL

the largest provider of securities services to third parties in Brazil, according to ANBIMA

one of the largest insurance groups in Brazil based on direct premiums, excluding health insurance and VGBL, a type of private retirement plan, according to SUSEP.

In addition, the brand name “Itaú” was rated the second most valuable brand name in Brazil by Brand Finance and Brand Analytics in 2009. The “Itaú” brand was also included in the 2009 Brands Yearbook: The 100 Most Prestigious Firms in Brazil, organized by Brazilian magazine Época Negócios . We were also one of Brazil’s Most Admired Companies, and the winner of bank category, in the Carta Capital magazine survey. We were also awarded Latin America’s Best Managed Company, and Best Company in Corporate Governance, by Brazil-Euromoney.

Our Ownership Structure

We are a financial holding company controlled by Itaú Unibanco Participações S.A., IUPAR, a holding company jointly controlled by (i) Itaúsa, which is a holding company controlled by members of the Egydio de Souza Aranha family, and (ii) Companhia E. Johnston de Participações, which is a holding company controlled by the former controlling shareholders of Unibanco, the Moreira Salles family. Itaúsa also owns directly 36.2% of the shares of our common stock. See “Item 7A. Major Shareholders.” Prior to the Association we were controlled by Itaúsa. The Egydio de Souza Aranha family beneficially owns 60.9% of shares of common stock and 17.8% of shares of preferred stock of Itaúsa. The shares of common stock and preferred stock of Itaúsa are traded on the BM&FBOVESPA.

Organization of the Itaú Unibanco Group

The following chart is a simplified overview of the direct and indirect ownership structure of the Itaú Unibanco Group as of December 31, 2009:

Notes:

Ownership percentages above refer to the total of direct and indirect participations. All of the above companies are based in Brazil, except Banco Itaú Argentina S.A. (located in Argentina), Banco Itaú Europa, S.A. (located in Portugal), Banco Itaú Chile S.A. (located in Chile) and Banco Itaú Uruguay S.A. (located in Uruguay).

Operations

The table below presents revenues in U.S. GAAP for our segments for each of the years ended December 31, 2009, 2008 and 2007. According to note 32 to the consolidated financial statements, we now disclose four operational segments: Commercial Bank, Itaú BBA, Consumer Credit, and Corporation and Treasury.

(in millions of R$)
	2009		2008		2007
Commercial Bank (1)		37,473		25,359		20,355
Interest income from loans and leases		30,154		18,391		14,559
Fee and commission income		7,319		6,967		5,796
Itaú BBA		4,956		4,783		2,134
Interest income from loans and leases		4,352		4,395		1,779
Fee and commission income		603		388		355
Consumer Credit		19,632		10,126		8,241
Interest income from loans and leases		14,075		8,540		6,560
Fee and commission income		5,557		1,586		1,681

(1) Including retail for all years presented. Information for the years ended December 31, 2009, 2008 and 2007 includes revenues from corporate banking activities which have not yet been transferred to Itaú BBA.

We mainly carry out our business activities in Brazil. We do not break down our revenues by geographic market within Brazil. Our revenues consisting of interest income from loans and leases, fee and commission income and insurance premiums, income on private retirement plans and capitalization plans are divided between revenues earned in Brazil and abroad. The information in the table below is presented after eliminations on consolidation.

(in millions of R$)
	2009		2008		2007
Interest income from loan and leases		48,582		31,327		22,898
Brazil		45,261		25,924		19,643
Abroad		3,320		5,403		3,255
Fee and commission income		13,479		8,941		7,832
Brazil		12,853		8,337		7,485
Abroad		627		604		347
Insurance premiums, income on private retirement plans and on capitalization plans		8,132		3,917		3,500
Brazil		8,091		3,912		3,500
Abroad		41		5		-

The table below presents revenues abroad by business categories for each of the years ended December 31, 2009, 2008 and 2007:

(in millions of R$)
	2009		2008		2007
Commercial Bank		3,200		5,417		2,585
Argentina		282		379		205
Chile		610		1,112		597
Uruguay		252		1,694		724
Other companies abroad (1)		2,056		2,232		1,059
Itaú BBA		675		481		953
Other companies abroad (1)		675		481		953
Itaú Unibanco - Credit Card		112		114		63
Argentina		19		22		11
Uruguay		79		92		52
Chile		14		-		-

(1) Includes Banco Itaú Europa International, or BIEI, Itaú Unibanco’s Grand Cayman, New York, Tokyo and Nassau branches, Itaú BBA’s Nassau branch, Itaú BBA’s Uruguai branch, Itaú Unibanco Holding’s Grand Cayman branch, the Unibanco Grand Cayman Branch, BIEL Holdings AG, IPI—Itaúsa Portugal Investimentos, SGPS Lda. Itaú Europa Luxembourg Advisory Holding Company S.A., Itaúsa Europa, Itaú Europa, SGPS, Lda., Itaúsa Portugal —SGPS S.A., Banco Itaú Europa., BIE Bahamas., Banco Itaú Europa Luxembourg, Banco Itaú Europa Fund Management Company S.A., BIEL Fund Management Company S.A., BIE Cayman, BIEI, IES, Unibanco — União de Bancos Brasileiros (Luxembourg) S.A., Itaú Madeira Investimentos, SGPS, Ltda, BIE Directors, Ltd, BIE Nominees, Lda, Brazcomp 1 Limited, Fin Trade, Kennedy Director International Services S.A., Federal Director International Services S.A., Bay State Corporation Limited, Cape Ann Corporation Limited; BFB Overseas N.V., BFB Overseas Cayman, Ltd., Itau Bank Ltd., ITB Holding Ltd., Jasper International Investment LLC, Unibanco Cayman Bank Ltd., Unicorp Bank & Trust Ltd., Unibanco Securities, Inc., UBB Holding Company, Inc., Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd, Rosefield Finance Ltd., Interbanco, Afinco Americas Madeira, SGPS, Soc. Unipessoal Ltda., Itaú Asset Management S.A., Sociedad Gerente de Fondos Comunes de Inversión, Zux Cayman Company Ltd., Zux SGPS, Lda,, Agate SARL, Topaz Holding Ltd., Itaú USA Inc., Itaú International Investment LLC, ITrust Servicios Financieros S.A., Albarus S.A., BancoDel Paraná S.A., Amethyst Holding Ltd., Garnet Corporation, Itaú Securities Holding (new name of Zircon Corporation), Spinel Corporation, Tanzanite Corporation, Itaú Sociedad de Bolsa S.A., Peroba Ltd., Mundostar S.A., Karen International Ltd., Nevada Woods S.A., Itaú Asia Securities Ltd., Líbero Trading International Ltd., Itaú USA Securities, Inc., Itaú Middle East Securities Limited, Unipart B2B Investments, S.L., Tarjetas Unisoluciones S. A. de Capital Variable, Proserv— Promociones Y Servicios S.A. de C. V. and Itau UK Securities Ltd.

Itaú Unibanco Holding

Overview

We provide a broad range of banking services to a diversified customers’ base of individuals and corporate customers. We provide these services on an integrated basis through Itaú Unibanco and Itaú BBA.

Within banking and financing operations, we have created three different distribution channels, each focused on a different type of customer. These areas are:

•

Retail Banking, through Itaú Unibanco, comprising different specialized customer service areas

•

Retail banking (individuals and very small businesses)

•

Personnalité (high income individual banking)

•

Private bank (wealthy individuals)

•

Small business banking (UPJ, or Unidade de Pessoa Jurídica)

•

Middle-market banking (medium-sized businesses)

•

Corporate clients and investment banking, through Itaú BBA

•

Consumer credit to non-account holders customers

These specialized areas enable us to provide our customers with customized banking products and services, which we believe enhance our competitive position in each of these areas.

Itaú Unibanco

We provide services mainly in the following areas:

•

Retail banking

•

Public sector

•

Personnalité

•

Private bank

•

Very small business banking

•

Small business banking

•

Middle-market banking

•

Credit cards

•

Real estate financing

•

Asset management

•

Corporate social responsibility

•

Securities services for third parties

•

Brokerage

•

Insurance, private retirement plans and capitalization products

Retail Banking

Our core business is retail banking, which serves individuals with monthly income below R$7,000. As of December 31, 2009, we had over 13.7 million customers and 4,465 branches and customer site branches under the “Itaú” and “Unibanco” brands. Our retail banking operations are present in all Brazilian states and in cities that altogether represented more than 80.0% of Brazil’s individual domestic consumption as of December 31, 2009. Our strategy is to offer higher quality banking products to our retail banking customers.

In the second half of 2009, we began the project of converting “Unibanco” brand branches to the “Itaú” brand. We converted approximately 50 branches during 2009. As of December 31, 2009, there were 950 remaining branches under the “Unibanco” brand. During 2010, we will intensify the conversion process and intend to convert approximately 160 branches per month starting in June 2010.

We classify our retail clients in accordance with their income and profile:

Itaú retail customers, who earn less than R$4,000 per month;

Itaú Uniclass customers, who earn more than R$4,000 and less than R$7,000 per month; and

Specialized account managers provide services to Itaú Uniclass customers who have access to certain customized products. We created this segment after the Association and we expect Itaú Uniclass to be present in some of our retail branches across Brazil and increase the number of our customers.

For the year ended December 31, 2009, credit products represented 67.0% of our consolidated revenue from retail banking, while investments represented 24.0% and services and other fee-based products represented 9.0%.

Very Small Business Banking

At the end of 2005, we set up 150 offices in the city of São Paulo to provide specialized services to companies with annual revenues below R$500,000. In 2006, we expanded our services to over 80 locations throughout the interior of the State of São Paulo, followed by 94 additional offices in the State of Rio de Janeiro. In 2007, we expanded our services into the States of Minas Gerais and Paraná. In 2008 and 2009, we continued this expansion and set up additional offices focused on very small business banking.

Our very small business banking office managers are trained to offer customized solutions and provide detailed advice on all products and services to very small companies. Our strategy is to capture the market opportunity of this customer base by meeting the needs of these companies and their owners, particularly with respect to the management of cash flow and credit facilities.

Since the Association, we have been consolidating offices and customer service in the very small business banking segment. As of December 31, 2009, we had over 430 very small business banking offices located throughout Brazil and approximately 1,700 managers working for over 537,000 small business customers. In 2010, we expect to continue to consolidate our very small business banking operations and to increase the number of managers.

The credit facilities we provide to very small businesses increased by approximately 92.8% in 2009. Loans to very small businesses totaled R$5,444 million as of December 31, 2009.

Public Sector

Our public sector business operates in all areas of the public sector, including federal, state and municipal levels of government (in the executive, legislative and judicial branches). As of December 31, 2009, we have 2,500 public sector customers. To service these customers, we use platforms that are separate from the retail banking branches, with teams of specially trained managers who offer customized solutions in tax collection, foreign exchange services, administration of public agency assets, payments to suppliers, payroll for civil and military servants and retirement. Based on these platforms, we have a significant amount of business with public sector clients, particularly in those Brazilian states where we acquired previously state-owned financial institutions.

Itaú Personnalité

Through Itaú Personnalité, we were one of the first banks in Brazil to provide personalized services to high-income individuals.

Itaú Personnalité’s value proposition consists of offering (i) an advisory service by its managers, who understand the specific needs of these customers; and (ii) a large portfolio of exclusive products and services, which are available through a dedicated and network of located in the main Brazilian cities. Composed of distinctive and specifically designed branches. Through this dedicated network of 167 branches, Itaú Personnalité’s customer base reached approximately 534,000 individuals as of December 31, 2009. Itaú Personnalité customers also have access to Itaú Unibanco network branches and ATMs throughout the country.

Since its establishment in 1996, Itaú Personnalité has been expanding its market share in the high-income individuals market. In 2006, as a result of the acquisition of BankBoston Brazil by Itaú, Itaú Personnalité consolidated its leadership in the high-income individuals market.

As a repositioning strategy, in September 2009, Itaú Personnalité raised its client target to high-income individuals who earn more than R$7,000 per month or have investments in excess of R$80,000.

Private Bank

Itaú Private Bank is a leading Brazilian bank in the global private banking industry, providing financial advisory services to approximately 22,200 Latin American customers as of December 31, 2009. Our 620 employees are focused on offering financial consulting services to customers with at least US$200,000 in investment assets. In addition, we provide our customers with a full range of traditional banking products and services.

Financial advisory services are provided by teams of experienced relationship managers located in Brazil, Miami, Argentina, Uruguay, Chile and Paraguay, and supported by investment specialists, who recommend the most appropriate solutions for each individual risk profile. Our private banking client base is composed of clients from Brazil, Argentina, Venezuela, Chile, Uruguay, Ecuador, Paraguay, Mexico, and other Latin American countries.

We serve our customers’ needs for offshore wealth management solutions in three major jurisdictions through independent institutions: in the United States through Banco Itaú Europa International, or BIEI, and Itaú Europa Securities, or IES; in Luxembourg through Banco Itaú Europa Luxembourg (“BIEL”); and in the Caribbean, through BIE Bank & Trust in the Bahamas, or BIE Bahamas, and Unicorp Bank & Trust in Cayman, or UBT Cayman.

We manage individual portfolios on a non-discretionary basis, subject to guidelines agreed upon with each customer. Portfolios managed by Itaú Private Bank may also invest in mutual funds managed by other financial institutions which have more flexibility in making investment decisions. Fees earned from our private banking customers are, in most cases, a function of the assets under management.

As of December 31, 2009, our private banking activity for Latin American clients had assets under management equivalent to R$ 97,548.0 million, including R$13,945.2 million in BIEL, R$6,809.6 million in BIEI and IES and R$2,128.6 million in BIE Bahamas and UBT Cayman.

Private Banker International recognized Itaú Private Bank as “The Outstanding Private Bank - The Americas,” for 2008 during the global financial crisis and in 2009 Itaú Private Bank was named the “The Outstanding Private Bank - Latin America”, which shows consistent recognition of our strong performance in our target market. According to the 2010 Annual Private Banking and Wealth Management Survey, coordinated by Euromoney magazine, Itaú Private Bank was recognized as offering “The Best Private Banking Overall Services” in Brazil for the second consecutive year. In the latest ranking published in the February 2010 edition of Euromoney magazine, Itaú Private Bank was also named “Best Private Banking Services Overall” in Chile and Top 5 “Best Private Banking Services Overall” in Latin America. Itaú Private Bank also remains the only private bank in Brazil to be among the finalist organizations in the Brazilian National Quality Award ( Prêmio Nacional de Qualidade 2007 ).

Small Business Banking

We have structured our relationships with small business customers through the use of specialized offices since 2001. As of December 31, 2009, we had 277 offices located nationwide in Brazil and nearly 1,600 managers who worked for over 260,000 companies with annual revenues from R$500,000 to R$6 million. In 2010, we expect to continue to consolidate our small business banking operations and to expand our offices geographically.

All our managers are certified by ANBIMA, and throughout the year they receive training to offer the best solutions for each customer profile. Our customers rely on our ability to provide products, terms and rates customized to their needs.

Loans to small businesses totaled R$18,330 million as of December 31, 2009.

Middle - Market Banking

We believe the Association has strengthened our middle-market banking position. We selected the best products and services of each bank to offer to our customers and dedicated managers to serve our customers to meet their needs.

As of December 31, 2009, we have approximately 104,000 middle-market corporate customers that represented a broad range of Brazilian companies located in over 75 cities in Brazil. Our middle-market customers are generally companies with annual revenues from R$6 million to R$150 million.

We offer a full range of financial products and services to middle-market customers, including deposit accounts, investment options, insurance, private retirement plans and credit products. Credit products include investment capital loans, working capital loans, inventory financing, trade financing, foreign currency services, equipment leasing services, letters of credit and guarantees. We also carry out financial transactions on behalf of middle-market customers, including interbank transactions, open market transactions and futures, swaps, hedging and arbitrage transactions. We also offer our middle-market customers collection services and electronic payment services. We are able to provide these services for virtually any kind of payment, including Internet office banking. We charge collection fees and fees for making payments, such as payroll, on behalf of our customers.

As of December 31, 2009, we had over 1,300 managers specializing in middle-market customers and we intend to increase this number in 2010. At December 31, 2009, these managers worked from one of the 213 specialized offices located at key branches and we intend to further increase the number of these specified offices in 2010.

Consistent with customary lending practices in Brazil, our loan portfolio to our middle-market customers is composed predominantly of short-term products, defined as having a maturity of less than 12 months. Loans to middle-market businesses totaled R$37,219 million as of December 31, 2009.

Credit Cards

We are the leading company in the Brazilian credit card market, based on transaction volume as of December 31, 2009. Our credit card brands “Itaucard” and “Hipercard,” offer a wide range of products to 23.4 million customers as of December 31, 2009, including both account holders customers and non-account holders customers. In the year ended December 31, 2009, the transaction volume of credit cards was R$84,938 million, a 17.8% increase from the prior year. The results of customer transactions by non-account holders customers are reported in the consumer credit division.

Our main challenges in the credit card business are to continually increase our cardholder base and improve our portfolio profitability. To this end, our credit card division focuses on the development of new products, the enhancement of partnerships, cross-selling of banking and insurance products and sales through a variety of channels.

To enhance market opportunities in the credit card segment, we entered into partnerships with Marisa S.A. and Vivo S.A. and C&C Casa e Construção Ltda. For further information on these partnerships, see “—Commercial Agreements, Associations and Partnerships.”

Real Estate Financing

As of December 31, 2009, we had approximately R$10,939 million in outstanding real estate loans. Given our expectation of growth over the next several years in the mortgage market in Brazil, we are investing in the operational platform in order to reduce costs and improve quality for our customers. We are also developing our distribution channels for mortgage loans by focusing on our branch network and developing our relationships with real estate brokers. According to Brazilian regulations, financial institutions are required to allocate at least 65% of their savings accounts balances to fund mortgage financing, of which 80% must be used to finance properties with value lower than R$500,000 and must have annual interest rates lower than 12%.

We use different distribution channels to reach our customers, including our Itaú Personnalité branches and real estate brokers. Itaú Unibanco Holding has partnerships with two of the largest real estate brokers in Brazil: Lopes and Coelho da Fonseca. These long-term partnerships provide us with exclusive real estate financing origination at a large number of locations throughout Brazil.

Asset Management

According to ANBIMA, as of December 31, 2009, we were the largest mutual fund manager among private banks in Brazil based on our assets under management. As of that date, we had total net assets under management of R$297,987 million on behalf of approximately 1.5 million customers. We also provide portfolio management services for pension funds, corporations, private bank customers and foreign investors. According to ANBIMA, as of December 31, 2009, we were the largest manager of private bank clients’ assets and the largest private manager of pension fund assets in Brazil, based on our assets under management. As of December 31, 2009, we had R$176,363 million of assets under management for pension funds, corporations and private bank customers.

Our fees are based on the average net asset value of the funds under management, which we calculate on a daily basis. Fees generally average approximately 2.74% per year for funds from individuals and 0.2% to 0.5% per year for funds from companies. Fees for portfolio management services are privately negotiated and vary depending on the size and investment parameters of the funds under management.

As of December 31, 2009, we offered and managed about 1,478 mutual funds, which are mostly fixed-income and money market funds. For individual customers, we offered 157 funds to our retail customers and approximately 300 funds to our Itaú Personnalité customers. Private banking customers may invest in over 600 funds, including those offered by other institutions. Itaú BBA’s capital markets group also provides tailor-made mutual funds to institutional, corporate and private banking customers.

In November 2009, Fitch Ratings, one of the largest international rating agencies in Brazil, maintained its M1 (bra) rating (the highest rating granted to an asset manager) of our asset management area. We have been in the top rating category since July 2003.

Corporate Social Responsibility

The Itaú Social Excellence Fund ( Fundo Itaú Excelência Social or FIES, launched in 2004, is a socially responsible investment fund, investing in the shares of companies with superior corporate social responsibility practices with the goal of obtaining higher long-term returns than those offered by the main Brazilian financial market indices. In addition to analyzing the risks and returns of companies, fund managers take into account three fundamental criteria in relation to companies: corporate social activities; environmental protection practices and good corporate governance practices. Every year the fund manager donates part of its accumulated asset management fees to social projects in the following categories: environmental education, employment education and childhood education.

As of December 31, 2009, FIES had net assets of R$365 million, and the fund donated more than R$3.3 million in 2009, which corresponded to 50% of the management fee from July 1, 2008 to June 30, 2009. The 19 projects chosen to receive this donation were divided into two investment categories, with 16 non-governmental organizations receiving R$100,000 each and three non-governmental organizations receiving R$150,000 each, and almost R$1.3 million spent on consulting. The projects are selected by the fund advisory council, which is composed by market leaders and specialists in corporate social responsibility.

Securities Services for Third Parties

We provide securities services for third parties in the Brazilian capital markets, where we act as custodian, transfer agent and registered holder. In December 2009, we were ranked the top provider of securities services in Brazil to third parties by ANBIMA.

As of December 31, 2009, Itaú Unibanco held assets of R$685,360 million in connection with securities services for third parties, representing 28.5% of the Brazilian market based on assets held. Our broad range of products relates to both domestic and international custody. Our services include acting as transfer agent, providing services relating to debentures and promissory notes, custody and control services for mutual funds, pension funds and portfolios, providing trustee services and non-resident investor services, and acting as custodian for depositary receipt programs.

In 2009, we acted as custodian and transfer agent for 438 companies and as the registered holder with respect to 145 transactions. As of December 31, 2009, our specialized staff reached 659 employees managing portfolios for mutual funds, institutional investors and private portfolios.

Brokerage

Itaú Corretora has been providing brokerage services since 1965, with operations on BM&FBOVESPA. We also provide brokerage services to international customers through our broker-dealer operations in New York, through our London branch, and through our broker-dealers in Hong Kong and Dubai.

For the year ended December 31, 2009, Itaú Corretora was ranked third on the BM&FBOVESPA in equity trading volume and third among brokers controlled by large commercial banks in Brazil in commodities and futures trading volume.

Insurance, Private Retirement and Capitalization Products

Insurance

As of December 31, 2009, according to SUSEP, we were one of the largest insurance groups in Brazil based on direct premiums, excluding health insurance and VGBL, a private retirement plan providing annuity benefits. For regulatory purposes VGBL is considered life insurance. For the year ended December 31, 2009, our direct premiums totaled approximately R$6,715 million.

Our main lines of insurance are life insurance (excluding VGBL; see “Private Retirement Plans”), property and casualty insurance and vehicle insurance, which accounted for 31.4%, 27.5% and 27.3% of direct premiums, respectively, for the year ended December 31, 2009. Our policies are sold through our banking operations, independent local brokers, multinational brokers and other channels. We reinsure a portion of the risks we underwrite, particularly large marine property and casualty risks that exceed the retention limits we have established within regulatory limits. Risks that exceed the retention limit must be ceded to licensed Brazilian reinsurers in accordance with complementary Law No. 126 published on January 15, 2007 and the SUSEP regulations published on December 17, 2007.

Our strategy to increase our level of penetration in the Brazilian insurance market depends on the markets in which we operate. In the high risk market, we intend to enhance our market share through independent local brokers and multinational brokerage firms. For individuals and small and medium company markets, we focus on operations within our banking client base banc assurance operations, to increase customer penetration. We are working on improving banc assurance operations in property and casualty insurance for small and medium companies. Our customer relationship management has implemented several advances and the development of specific products for different segments allows more efficient use of each marketing channel (our branches, telemarketing, Internet, ATMs and bank teller terminals).

In November 2008, Unibanco entered into an agreement with American International Group, Inc., or AIG, regarding the exchange of shares that Unibanco and AIG respectively held in certain Brazilian insurance companies, as follows: (i) Unibanco acquired, for US$820.0 million, the shares held by AIG in Unibanco AIG Seguros S.A., which changed its name to Unibanco Seguros S.A., or Unibanco Seguros; and (ii) AIG acquired, for US$15.0 million, the shares held by Unibanco in AIG Brasil Companhia de Seguros S.A., or AIG Seguros. Upon the completion of the exchange, Unibanco Seguros, Unibanco AIG Vida e Previdência S.A. and Unibanco AIG Saúde Seguradora S.A., which used to be Unibanco Seguros’ wholly owned subsidiaries, became our wholly owned subsidiaries.

In August 2009, Itaú Unibanco Holding and Porto Seguro S.A., Porto Seguro, entered into an operating agreement that provides for the offering and distribution, on an exclusive basis, of homeowner and automobile insurance products to customers of Itaú Unibanco Holding in Brazil and Uruguay (the “Porto Seguro Alliance”). In connection with the Porto Seguro Alliance, Itaú Unibanco Holding transferred all the assets and liabilities related to its then current portfolio of homeowner and automobile insurance to Itaú Seguros de Auto e Residência S.A., ISAR, all of the shares of which were subsequently transferred to Porto Seguro. In exchange, Porto Seguro issued shares representing 30.0% of its capital stock to Itaú Unibanco Holding and/or its affiliates. The controlling shareholders of Porto Seguro and Itaú Unibanco Holding established a new company named Porto Seguro Itaú Unibanco Participações S.A., or PSIUPAR, and transferred their shares of Porto Seguro to PSIUPAR. The controlling shareholders of Porto Seguro remained controlling shareholders of PSIUPAR, which became the parent company of Porto Seguro. Itaú Unibanco Holding is entitled to nominate two members of the board of directors of each of Porto Seguro and PSIUPAR. ISAR, which is directly controlled by Porto Seguro and indirectly controlled by PSIUPAR, will be managed by Porto Seguro and will utilize the trademarks Porto Seguro, Itaú Unibanco and Azul. In August 2009, Itaú Unibanco (through Itaú Seguros S.A.) had 3.4 million automobiles and 1.2 million homes insured, which were subsequently transferred to ISAR. In October 2009, SUSEP granted prior authorization for the corporate acts related to the Porto Seguro Alliance. The approval by the Brazilian antitrust authorities for the transaction is still pending.

In November 2009, Itaú Seguros S.A., or Itaú Seguros, and XL Swiss Holdings Ltd., or XL Swiss, a company controlled by XL Capital Ltd., or XL Capital, signed an agreement providing for the acquisition by Itaú Seguros of all of XL Swiss’s shares in Itaú XL Seguros Corporativos S.A., or Itaú XL. Itaú XL will be wholly owned by Itaú Unibanco Holding. After completion of the sale, Itaú Seguros will provide, under a separate agreement, insurance coverage to XL Capital’s clients in Brazil and XL Capital’s Global Programs clients with operations in Brazil. The transaction is pending approval by the Brazilian insurance regulator, SUSEP and has not yet closed.

In December 2009, Allianz South America Holding B.V. entered into an agreement with Itaú Unibanco Holding for the purchase of the 14.025% indirect interest that Itaú Unibanco Holding held in Allianz Seguros S.A. for R$109 million. The transaction was completed in January 2010, approved by the Brazilian antitrust authorities on March 3, 2010 and SUSEP was notified of the transaction. The transaction did not have a significant impact on our net income for 2009.

Private Retirement Plans

As of December 31, 2009, balances under private retirement plans (including VGBL) totaled R$43,435 million, an increase of 25.0% compared to December 31, 2008. As of December 31, 2009, we were the second largest private retirement plan manager in Brazil based on total liabilities according to SUSEP. As of December 31, 2009, we had R$43,636 million in assets related to our private retirement liabilities (including VGBL). We concentrate our activities on managing open private retirement plans, which experienced strong growth in 2009.

Capitalization Products

Capitalization products are savings account products that generally require a customer to deposit a fixed sum with us which will be returned at the end of an agreed-upon term date, with accrued interest. In return, the customer automatically entered into periodic drawings that gives him the opportunity to win a significant money prize. As of December 31, 2009, we had 9.7 million capitalization titles outstanding with guaranteeing assets of R$2,300 million. We distribute these products through our retail network, Itaú Personnalité and Itaú Uniclass branches, electronic channels and ATMs. These products are sold by our subsidiary, Cia. Itaú de Capitalização S.A. During 2009, R$1,786 million of capitalization products were sold and we distributed over R$41.1 million in money prize to 6,085 customers.

Itaú BBA

Itaú BBA is responsible for our corporate and investment banking activities. Itaú BBA offers a complete portfolio of products and services to most of the largest companies and conglomerates in Brazil through a team of highly qualified professionals. Itaú BBA services approximately 2,400 companies and conglomerates. Itaú BBA’s activities range from typical operations of a commercial bank to capital markets operations and advisory services for mergers and acquisitions. These activities are fully integrated, which enables Itaú BBA to achieve a performance tailored to its clients’ needs. As of December 31, 2009, our corporate loan portfolio reached R$90,830 million. During 2009, this portfolio was affected mainly by the appreciation of the real and weaker economic conditions when compared to 2008. In investment banking, the fixed income department was responsible for the issuance of debentures and promissory notes that totaled R$17,849 million and securitization transactions that amounted to R$1,378 million in Brazil in 2009. According to ANBIMA, Itaú BBA was the leader in distribution of fixed income in 2009 with a 24.2% market share, thus maintaining the bank’s historic leadership in the domestic fixed income market. In the international debt markets, Itaú BBA acted as joint bookrunner in the issuance of seven deals in the amount of US$4,950 million, of debt securities in 2009, earning the second place in Bloomberg’s rankings of underwrites of Brazilian-based corporate debt issuances based on number of transactions.

With respect to equity issuances, Itaú BBA coordinated public offerings that totaled R$14,229 million in 2009, and occupied the third position in ANBIMA’s origination rankings in Brazil, with 13.7% of the market share in Brazil in 2009. Itaú BBA’s investment banking division also started to manage the wholesale brokerage business in 2009 and is implementing several initiatives to increase its presence in the markets it operates in.

In addition, Itaú BBA advised on merger and acquisition transactions with a total volume of 24 deals in the amount of R$19,964 million, in 2009, ranking second in Brazil based on the number of merger and acquisition deals according to Thomson Reuters.

Itaú BBA is active in BNDES on-lending to finance large-scale projects, which is aimed at strengthening domestic infrastructure and increasing the productive capacity of various industrial sectors. In consolidated terms, total loans granted under BNDES on-lending represented more than R$4,889 million for various projects and financings in 2009, corresponding to an increase of 44.0% in 2009 compared to 2008. As an integral part of its risk management and sustainability policies, the on-lending of funds to large-scale projects is in compliance with Itaú Unibanco’s social and environmental risk policy. Itaú Unibanco is the current leader in the ranking of Latin American banks which adopt the best corporate governance practices drawn up by the consultancy Management & Excellence and Latin Finance magazine. All lending categorized as project finance, as defined under Basel II, is also in compliance with the Equator Principles, which Itaú BBA adopted in 2004, being the first financial institution from an emerging market to adopt the Equator Principles. The Equator Principles were announced launched in 2003 and became the benchmark within the financial sector for addressing environmental and social risks in project financing. By February 2010, 68 financial institutions had adopted the Equator Principles, and therefore had voluntarily committed themselves to incorporating these principles in projects worth US$10 million or more. The Equator Principles were revised in 2006 and were extended to advisory services in structuring projects. Itaú Unibanco plays a leading role in the Equator Principles Steering Committee and Working Groups, having occupied the position of Chair of the Steering Committee from September 2008 until March 2010.

Itaú BBA focuses on the following products and initiatives in the international area: (1) câmbio pronto (whereby a foreign exchange purchase in reais or sale in foreign currency is completed in two business days), which exceeded US$88.677 million in volume in 2009; and (2) structuring long-term, bilateral and syndicated financing. In addition, in 2009 Itaú BBA continued to offer a large number of lines of credit for foreign trade, having a total of approximately US$6,797 million in lines of credit drawn from corresponding banks as of December 31, 2009.

In 2009, Itaú BBA received the award of Investment Bank of the Year in Latin America, according to The Banker magazine and the Best Local Investment Bank accolade from Latin Finance.

In December 2008, Itaú Unibanco acquired the remaining 4.25% of Itaú BBA’s total shares from certain Itaú BBA managers and employees who were minority shareholders. Itaú Unibanco holds approximately 100% of the capital stock of Itaú BBA.

International Operations

Banco Itaú Argentina

Argentina is the third largest economy in Latin America, Brazil’s main trading partner and one of the countries with highest GDP per capita of the continent. The pace of increase in banking penetration shows that the Argentine financial system has ample growth potential.

Banco Itaú Argentina’s core business is retail banking, with approximately 250,000 customers in the Argentine middle and upper-income segment as of December 31, 2009. Compared with 2008, this represents a 5.9% increase in the number of customers.

As of December 31, 2009, Banco Itaú Argentina had assets of R$2.1 billion, loan and leasing operations of R$1.1 billion, deposits totaling R$1.6 billion and shareholders’ equity of R$172 million.

As of the same date, Banco Itaú Argentina had one of the largest branch networks in Argentina consisting of 81 branches, one of the largest ATM networks in Argentina consisting of 164 ATMs, and 23 customer site branches.

Itaú Chile Operations

Banco Itaú Chile started its official activities on February 26, 2007, when Bank of America Corporation, or BAC, transferred the operations of BankBoston Chile and BankBoston Uruguay to us. This acquisition increased our presence in Latin America and expanded the scope of our operations. In addition, Itaú Chile Inversiones Servicios y Administración S.A. provides services related to collection, securitization and insurance.

As of December 31, 2009, our consolidated Chilean operations had R$10.7 billion in assets, R$8.3 billion in loans and leases, R$7.0 billion in deposits and R$1.3 billion in shareholders’ equity. According to the Chilean banking and financial institutions regulator ( Superintendencia de Bancos e Instituciones Financieras ), or, SBIF, as of that same date, Banco Itaú Chile ranked eighth in the Chilean loans and leases market with a 3.2% market share and ranked sixth in number of demand deposit accounts in the private sector, with approximately 89,094 accounts.

Banco Itaú Chile offers several products such as factoring, leasing, corporate finance, mutual funds, insurance brokerage and trading, which are offered through different entities and different lines of business.

The retail segment focuses on the upper-income segment that, as of December 31, 2009, accounted for 59.6% of Banco Itaú Chile’s total revenues. As of December 31, 2009, Banco Itaú Chile had 48 ATMs and 70 branches, of which 65.7% were located in Santiago.

Banco Itaú Chile’s commercial banking segment offers a wide range of products to improve customer experience by building a competitive advantage based on service quality, products and processes for targeted customers (companies with annual revenues of between R$4 million and R$180 million).

Banco Itaú Chile’s global corporate banking segment offers local and international corporate finance capabilities such as syndications, private placements and securitizations. It also provides trade financing and global treasury services complementing Banco Itaú Chile’s marketing strategy. Treasury products such as foreign exchange and derivatives are a key part of this strategy.

Itaú Uruguay Operations

Banco Itaú Uruguay is one of the leading financial institutions in Uruguay. Local operations also include the main credit card issuer, OCA S.A., or OCA, and the pension fund management company Unión Capital AFAP S.A., or Unión Capital. Banco Itaú Uruguay’s strategy is to serve a broad range of customers through customized banking solutions. As of December 31, 2009, Itaú Uruguay had R$3.1 billion in assets, ranking second in terms of asset volume among private banks in Uruguay, according to the Uruguayan Central Bank ( Banco Central del Uruguay ), or BCU, R$1.3 billion in loans and leases, R$2.3 billion in deposits and R$279 million in shareholders’ equity.

The retail banking business is focused on individuals and small business customers, with approximately 130,000 customers as of December 31, 2009. The core branch network is located in the metropolitan area of Montevideo with 15 branches. In addition, Banco Itaú Uruguay has branches in Punta del Este, Tucuarembó and Salto. Banco Itaú Uruguay has a leading position in the debit card segment of private banks in Uruguay with 17.4% market share out of 489,000 cards as of December 31, 2009, according to BANRED, and a distinguished role as a credit card issuer (mainly Visa), with a 23.1% market share as of December 31, 2009 in terms of purchases made in Uruguay (according to Visanet Compañía Uruguaya de Medios de Procesamiento S.A.). Retail products and services focus on the middle and upper-income segments, and also include current and savings accounts, payroll payment, self-service areas and ATMs in all branches, and phone and Internet banking.

The wholesale banking division is focused on multinational companies, financial institutions, large- and medium-sized corporations and the public sector. It provides lending, cash management, treasury, trade and investment services. Additionally, the private banking unit provides a dedicated regional service (for both resident and non-resident customers), offering a full portfolio of local and international financial market products.

OCA is the main credit card issuer in Uruguay, with a 41.0% market share based on the aggregate amount of credit card domestic transactions as of December 31, 2009, and an approximately 50.0% market share in terms of number of transactions processed. OCA performs the three main credit card operations: customer acquisition, issuance of cards and transaction processing. Credit cards and consumer loans are the main products offered by OCA to its approximately 347,000 customers, through a network of 20 branches, as of December 31, 2009.

Unión Capital is a pension fund management company which has been operating in Uruguay since 1996, when the current Uruguayan pension system was created. As of December 31, 2009, it had 194,739 customers, managed approximately US$858 million in pension funds, with a market share of approximately 16.8%, according to the BCU.

Interbanco S.A. (Paraguay)

Interbanco S.A., or Interbanco, was set up in Paraguay in 1978 and has become one of the largest banks in the Paraguayan financial market. Interbanco was acquired by Unibanco in 1995.

Interbanco has experienced significant growth since 1999, expanding the variety and enhancing the excellence of its services across the whole country. As of December 31, 2009, Interbanco had 19 branches, approximately 220,000 customers and 166 ATMs.

Its main sources of income are consumer banking products, primarily credit cards. Interbanco has launched innovative products and services under the brand “ 24IN,” and provides its customers several products and services, such as International Debit Card Cirrus Maestro and the Internet Banking Service Interhome Banking and also offers banking customer information through mobile phones with the Click Banking service. As of December 31, 2009, Interbanco had R$1.9 billion in assets, R$975 million in loans and leases, R$1.6 billion in deposits and R$247 million in shareholders’ equity. The structure of Interbanco products and services operates under: corporate banking (small- and medium-sized businesses, agribusiness, large companies, institutional clients) and consumer banking (individuals and wage payment). Under corporate banking, Interbanco has a well-established presence in the agribusiness segment, which has presented attractive levels of profitability since 2002 and credit performance in Paraguay. Under consumer banking, the main marketing channel is payment services, allowing us to offer pre-approved products to all customers who receive their wages through Interbanco.

Banco Itaú Europa

Banco Itaú Europa is a Portuguese-chartered bank controlled by Itaú Unibanco Holding. Banco Itaú Europa focuses mainly on two lines of business:

Corporate banking: providing international corporate banking, international capital markets operations, foreign trade financing and other financial services to support investments and other economic relations between Latin America and Europe through its operations in Lisbon, Madrid, Frankfurt, Paris and London; and

Private banking: delivering offshore and international private banking products and services to our Latin American customer base, through its subsidiaries (BIEL and BIEI in Miami).

As of December 31, 2009, Banco Itaú Europa had US$7,283 million in assets, US$2,899 million in loans and leases, US$2,318 million in deposits and US$1,263 million in shareholders’ equity (including minority interests).

Banco Itaú Europa’s corporate banking business offers several products, such as credit, derivatives and advisory services for European companies with Latin American subsidiaries.

The private banking business provides financial and asset management services to Latin American customers with a minimum of US$250,000 in investments, putting at their disposal a diversified and specialized range of investment funds, dealing in and managing securities and other financial instruments, trusts and investment companies on behalf of customers. The private banking business has clients in Argentina, Brazil, Chile, Mexico, Uruguay, Venezuela and others. Assets under management of the private banking business amounted to US$9,974 million as of December 31, 2009.

All of our transactions with Banco Itaú Europa and its subsidiaries are on an arm’s-length basis. Banco Itaú Europa’s senior unsecured debt is rated Baa1 by Moody’s and BBB+ by Fitch.

Other International Operations

In November 2008, Itaú Unibanco Holding entered into an agreement with Itaúsa for the acquisition of a 77.8% interest and a 80.0% voting interest in Itaúsa Export, and of a 12.13% voting interest of Itaúsa Europa, a subsidiary of Itaúsa Export, for approximately R$1,136.0 million. As a result of the acquisition and subsequent corporate events, Itaú Unibanco Holding now holds indirectly 100% of the total and voting interest of Itaúsa Europa and Itaúsa Export. Itaúsa Export is a holding company domiciled in Brazil which holds a controlling interest in Itaúsa Europa. Itaúsa Europa is a holding company domiciled in Portugal. Itaúsa Export’s and Itaúsa Europa’s business activities are carried out by their indirect subsidiaries and include corporate banking, international cash management services and private banking. The acquisition by Itaú Unibanco Holding of all of the stock of Itaúsa Export and Itaúsa Europa was a condition precedent to the Association.

Our other international operations have the following objectives:

(1) Support our customers in cross-border financial transactions and services:

The international areas of Itaú Unibanco Holding are active in providing our customers with a variety of financial products such as trade financing, loans from multilateral credit agencies, off-shore loans, international cash management services, foreign exchange, letters of credit, guarantees required in international bidding processes, derivatives for hedging or proprietary trading purposes, structured transactions, and international capital markets offerings.

Our international units include: Itaú BBA, Nassau branch (focused on corporate banking business); Itaú Unibanco, New York branch, Itaú Unibanco, Nassau branch and Itaú Unibanco, Cayman Islands branch (focused on middle-market customers); Interbanco S.A. (Paraguay), Banco Itaú Argentina, Banco Itaú Chile and Banco Itaú Uruguay (focused on retail customers, international corporate banking and middle-market); and Itaú Unibanco, Tokyo branch (focused on Brazilian retail customers living in Japan).

(2) Manage proprietary portfolios and raise funds through the issuance of securities in the international market.

Funds raising through the issuance of securities, certificates of deposit, commercial paper and trade notes can be executed by Itaú Unibanco’s branches located in the Cayman Islands, Nassau, Bahamas and New York, Itaú Bank Ltd., or Itaú Bank, a banking subsidiary incorporated in the Cayman Islands, or Banco Itaú BBA’s Nassau branch. Itaú Unibanco’s Cayman Islands branch has issued subordinated debt which is treated as Tier 2 Capital. For a description of Tier 1 and Tier 2 Capital, see “—Regulation and Supervision—Regulation by the Central Bank—Capital Adequacy and Leverage/Regulatory Capital Requirements.”

The proprietary portfolios are mainly held by Itaú Bank and Itaú Unibanco Cayman Islands branch. These offices also enhance our ability to manage our international liquidity. Itaú BBA’s proprietary positions abroad are booked in the Itaú BBA, Nassau branch.

Through our international operations, we establish and monitor trade-related lines of credit from foreign banks and maintain correspondent banking relationships with money center and regional banks throughout the world and oversee our other foreign currency-raising activities.

(3) Participate in the international capital markets as dealers:

There are international fixed income and equity desks in Brazil (Itaú BBA), New York (Itaú USA Securities Inc.), London (Itaú UK Securities Ltd.), Argentina (Banco Itaú Argentina), Hong Kong and Tokyo (Itaú Asia Securities Ltd.). Our international fixed income and equity teams offer to institutional investor Latin America securities.

(4) In addition, we are also present and servicing our clients in Asia, especially in China, through Itaú BBA’s representative office in Shanghai.

Trade Financing

As of December 31, 2009, our trade finance portfolio accounted for US$8,601 million, of which US$7,501 million was export-related (both pre-export and post-export financing). Our export financing to larger corporate customers is generally unsecured, but some transactions require complex guarantees, particularly those structured to be syndicated. Our import financing business accounted for US$1,099 million as of December 31, 2009. For the year ended December 31, 2009, our total volume of foreign exchange transactions related to exports was approximately US$17,138 million and our total volume of foreign exchange transactions related to imports was approximately US$14,556 million.

Vehicle Financing

As of December 31, 2009, our portfolio of vehicle financing, leasing and consortium lending consisted of approximately 3.7 million contracts, of which approximately 70.0% were non-account holders customers. The personal loan portfolio relating to vehicle financing and leasing grew 4.3% to R$51,285 million in 2009 as compared to 2008, representing a market share in Brazil of approximately 33.5% as of December 31, 2009. Our strong performance and the Association have impacted our leadership market share.

The vehicle financing sector in Brazil is dominated by banks and finance companies that are affiliated with vehicle manufacturers. According to ABEL, the Brazilian association of leasing companies, as of December 31, 2009, we were the largest leasing company in Brazil in terms of present value of lease operations.

We lease and finance vehicles through 13,270 dealers. Sales are made through computer terminals installed in the dealerships that are connected to our computer network. Each vehicle financing application is reviewed based on credit scoring and dealer scoring systems. The dealer scoring system analyzes the credit quality and amount of business provided by each vehicle dealer. We usually grant credit approvals within 11 minutes, depending on the credit history of the customer. Approximately 81% of our credit approvals in 2009 were made instantaneously because we have developed scoring models that permit pre-approvals for our customers, which provide us with a very efficient tool and high credit approval performance. Currently, all of the applications are processed through the Internet, conferring more security and agility to the process of concession of credit, for the dealers, customers and us.

The division for the financing of trucks corresponded to approximately 5.8% of vehicle financing and leasing in 2009.

We also have a division responsible for the financing of motorcycles. The financial volume of transactions relating to motorcycles until December increased 19.05%, compared to December 2008.

In March 2009, Itaú Unibanco Holding entered into a partnership with MMC Automotores do Brasil Ltda. and SVB Automotores do Brasil Ltda. for exclusive financing of their brands. The financial volume of related transactions in 2009 reached R$370 million. The agreement includes that Itaú Unibanco Holding will provide loans to Mitsubishi and Suzuki dealers and that dealers will offer our products and services to their customers.

Redecard

Redecard S.A., or Redecard, is a multibrand credit card provider in Brazil, also responsible for the capturing, transmission, processing and settlement of credit, debit and benefit card transactions. We hold 50% plus one share of Redecard’s capital stock. On March 30, 2009, Itaú Unibanco purchased 24,082,760 common shares of Redecard for R$590.0 million, giving rise to a goodwill amounting to R$14.4 million. In view of this transaction, we have control over Redecard and its results are fully consolidated in our consolidated financial statements since its acquisition.

Commercial Agreements, Associations and Partnerships

Itaú Unibanco Holding has commercial agreements, associations and partnership agreements with over 300 retailers in the Brazilian market, serving more than 17.3 million customers as of December 31, 2009. The consumer credit portfolios with respect to customers of those retailers amounted to R$7,941 million as of December 31, 2009.

Itaú Unibanco has developed a strong presence in the consumer finance sector through our strategic alliances with main retailers in Brazil such as Magazine Luiza S.A., or Magazine Luiza, Marisa S.A., Companhia Brasileira de Distribuição, or CBD, Vivo S.A. and Telemig Celular S.A., Lojas Americanas S.A. and Ipiranga (Ultrapar Participações S.A.). Since 2001, when we established the first partnerships, these alliances have supported consumer finance through several products, such as co-branded credit cards, private label cards, personal loans and insurance.

In November 2009, Itaú Unibanco Holding entered into an agreement to extend through December 31, 2029 its joint venture with Magazine Luiza, pursuant to which Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento, or Luizacred, offers and sells consumer credit financial services and products to Magazine Luiza’s customers. Itaú Unibanco Holding paid R$250.0 million to extend its exclusive rights to distribute credit products through Luizacred at all physical and virtual Magazine Luiza stores, in addition to its call centers, internet and direct mailing. Each of Magazine Luiza and Itaú Unibanco Holding holds 50.0% of Luizacred’s capital stock.

In August 2009, CBD, which operates under the brand “Pão de Açucar,” and Itaú Unibanco concluded their negotiations concerning Financeira Itaú CBD S.A., or FIC, leading to: (i) the release of Itaú Unibanco’s exclusivity obligation to CBD in exchange for a R$550.0 million payment to CBD; and (ii) the extension of the exclusivity term granted by CBD to FIC through August 2029 in exchange for a R$50.0 million payment. The association provides for the sale of financial services and products in stores of all types that are directly or indirectly operated or owned by CBD, including supermarkets, convenience stores, electronic appliance stores, retail and wholesale stores, gas stations, drugstores, and e-commerce.

In March 2009, Banco Itaucard, a subsidiary of Itaú Unibanco Holding, and Vivo S.A. and Telemig Celular S.A., a subsidiary of Vivo S.A. (together, “Vivo”), a leading Brazilian mobile telecommunication services provider, entered into a partnership agreement pursuant to which we were granted the right to distribute and sell co-branded credit cards and certain other financial and insurance products and services to Vivo’s clients in Brazil for ten years.

In December 2008, Itaú Unibanco, Marisa S.A. and Credi-21 Participações Ltda., or Credi-21, (Marisa S.A. and Credi-21, together “Marisa”) entered into a partnership agreement pursuant to which Itaú Unibanco and its affiliates were granted a ten-year exclusive right to offer and sell financial products and services, namely co-branded credit cards, personal loans and other types of consumer credit financial products through Marisa’s sales network (physical and online stores). Marisa is the largest Brazilian department store chain specializing in women’s clothing. Its business and operational strategies focus on medium- and low-income women with ages ranging from 20 to 35 years. Both parties have combined the strengths of their business operations, which comprise valuable brands, clientele, market share and great penetration in their respective segments. The deal was structured as a profit-sharing agreement, under which each party is entitled to 50.0% of the results of the partnership operation. The partnership represented an investment of approximately R$120.0 million by Itaú Unibanco, R$65.0 million of which was paid in exchange for the exclusivity right and for the access to Marisa’s customer base for the period of the agreement, and payment of up to R$55.0 million, which is linked to certain sales targets over a five-year period.

Personal Loans

Itaú Unibanco fully closed its proprietary network dedicated to selling personal loans to low-income consumers. Itaú Unibanco intends to increase its low-income costumer base by selling credit cards to non-account holders customers, mainly through the partnerships developed with major retailers, airlines and fuel distribution companies. For further information on these partnerships, see “—Commercial Agreements, Associations and Partnerships.”

Marketing and Distribution Channels

We provide integrated financial services and products to our customers through a variety of marketing and distribution channels. Our distribution network consists principally of branches, ATMs and customer site branches, or CSBs, which are banking service centers located on corporate customers’ premises.

The following table provides information relating to our branch network, customer site branches and ATMs as of December 31, 2009 in Brazil and abroad:

	Branches		CSBs		ATMs
Itaú Unibanco Holding		3,550		915		29,522
Itaú Personnalité		165		3		344
Itaú BBA		9		-		-
Total in Brazil		3,724		918		29,866
Itaú Unibanco abroad (excluding Latin America)		4		-		-
Argentina		81		23		164
Chile		70		-		48
Uruguay		38		1		32
Paraguay		19		6		166
Total		3,936		948		30,276

The following table provides information relating to the geographic distribution of our distribution network throughout Brazil as of December 31, 2009:

Region	Branches		CSBs		ATMs
South		633		125		4,179
Southeast		2,499		653		21,694
Center-west		282		62		1,663
Northeast		242		45		1,788
North		68		33		542
Total in Brazil		3,724		918		29,866

Branches

As of December 31, 2009, we had a network of 3,724 full service branches throughout Brazil. We had branches in municipalities representing 92.4% of Brazil’s gross domestic products, or GDP as of December 31, 2009. As of December 31, 2009, 81.3% of our branches were located in the States of São Paulo, Rio de Janeiro and Minas Gerais in the Southeast region, Paraná in the South, and Goiás in the Center-west, which collectively accounted for 63.7% of Brazil’s GDP (according to information published by the Central Bank on the breakdown of national GDP by state for 2006). The branch network serves as a distribution network for all of the products and services we offer to our customers, such as credit cards, insurance plans and private retirement plans.

Customer Site Branches

As of December 31, 2009, we operated 918 CSBs throughout Brazil. The range of services provided at the CSBs may be the same as those provided at a full service branch, or more limited according to the size of a particular corporate customer and its needs. CSBs represent a low-cost alternative to opening full service branches. In addition, we believe CSBs provide us with an opportunity to target new retail customers while servicing corporate customers and personnel.

ATMs

As of December 31, 2009, we operated 29,866 ATMs throughout Brazil. Our ATM network handles approximately 125 million transactions per month. Our customers may conduct almost all account, related operations through ATMs. ATMs are low cost alternatives to employee-based services and give us points of service at costs significantly lower than branches. We also have arrangements with other network operators such as the brands “Cirrus” and “Maestro” to allow our clients to use simplified services through their networks.

Other Distribution Channels

We also offer customers the ability to obtain information as to the status of their accounts, investment funds and credit lines through various electronic channels, which allow us to conduct our retail operations at a lower transaction cost. These channels include:

c all centers, with a monthly volume of approximately 43.3 million transactions. This distribution channel corresponded to 3.0% of total products sold by the retail banking segment in 2009;

home and office computer banking system, with a monthly volume of approximately 167.7 million transactions. This distribution channel corresponded to 5.0% of total products sold by the retail bank in 2009;

Point-of-Sale/Redeshop, a network which allows customers to use a direct debit card to purchase goods at the merchant’s point-of-sale, with approximately 45.6 million transactions per month; and

various other channels, such as e-mail, cellular phone and wireless application protocol links, drive-through facilities and courier services.

Risk Management

On August 29, 2007, the CMN enacted Resolution No. 3,490, which provides for the criteria to determine the required equity, effective as of July 1, 2008. Since the date of effectiveness, the calculation of our regulatory capital for risk coverage has considered the factors described below:

PEPR: the regulatory capital required to cover the risk-weighted exposures, or credit risk

PCAM: the regulatory capital required to cover the market risk in exposures to gold, f oreign exchange and foreign assets and liabilities subject to exchange variation

PJUR: the regulatory capital required to cover the market risk in fixed interest rate, foreign exchange coupon, price and other indices

PCOM: the regulatory capital required to cover the market risk in commodities;

PACS: the regulatory capital required to cover the market risk in stock

POPR: the regulatory capital required to cover the operational risk.

This is an attempt to more closely adjust Brazilian standards to the principles and rules provided in Basel II, which include:

Extension of the minimum regulatory capital requirements for coverage of the various risks based on internal models of financial institutions

Improvement of banking surveillance

Significant expansion of the existing disclosure requirements.

Basel II contains a new methodology to calculate the minimum regulatory capital requirements for financial institutions and takes into account the particular risk factors of each of them.

We have always been driven by the concern of identifying, measuring and monitoring risks. We calculate our regulatory capital in such a way as to exceed all potential losses based on advanced managerial models. Accordingly, a major part of the Basel II requirements has already been incorporated in our risk control tools or is in the process of being included. Our efforts are concentrated on Basel II’s Pillar 1 rules related to credit, market and operational risks and we intend to use advanced approaches (Advanced Internal Rating-Based (AIRB) for credit risk, Advanced Measurement Approach (AMA) for operational risk and Internal Models Approach (IMA) for market risk).

As part of the risk control tools, we developed and improved proprietary risk management systems that are in compliance with the Central Bank’s regulations and with international practices and procedures. These models are based on the following elements:

•

Economic, financial and statistical analyses, which enable the evaluation of the effects of adverse events on our liquidity, credit and market positions;

•

Market risks using value at risk, or VaR, to evaluate risk in the structural portfolio, and stress tests using independent scenarios, to evaluate our whole exposure in extreme situations;

•

Credit risks tools which typically involve credit and behavior scoring for retail portfolios, subject to mass processes and proprietary rating models for corporate customers, with uniform individual approaches. We also use portfolio management models to quantify and allocate economic capital;

•

Operational risks which are in the process of being identified and already have an important amount evaluated on a current basis through the use of internal data bases and statistical models that monitor the frequency and the severity of internal events of losses to quantify the risks and allocate economic capital;

•

Daily monitoring of positions in relation to pre-established market risk limits; and

•

Simulations of alternatives for protection due to liquidity losses and contingency plans for crisis situations in different scenarios.

In addition, we have established committees responsible for risk management, structured as follows:

•

Risk policies superior committee, responsible for establishing general risk policies, setting up aggregated risk limits based on the allocation of capital and other parameters as it deems suitable, discussing the most important aspects to maximize the risk-return ratio and ensuring a consistent risk management within Itaú Unibanco,

•

Credit superior committee, responsible for establishing overall credit risk policy and making major credit risk decisions,

•

Financial risk superior committee, responsible for establishing policies and limits for market and liquidity risks, and monitoring positions on a consolidated basis, and

•

Audit and operational risk management superior committee, responsible for monitoring operational risk controls and compliance systems.

In order to further comply with the new requirements of the more advanced risk models provided for in Basel II, we established internal specific committees composed of executives from all areas of Itaú Unibanco Holding. We prepared an action plan at the end of 2004 and, to this date, we have carried out activities as planned. In 2005, we focused on the construction of a historical database for probabilities of default (PD), models and historical databases for loss given default (LGD) and operational losses. In 2006, the implementation project continued with models for exposure at default (EAD), inclusion of credit risk mitigations and analysis of database validation processes. We also worked on a framework of documentation. In 2007, we started to develop stress test models for some portfolios and to implement a system to consolidate information and compute the capital ratio, in addition to adjusting controls for compliance with the requirements set forth by Resolution No. 3,380 on operating risks. In 2008 we created a department responsible for internal models validation, with an independent structure from the other models development departments. In addition to this new department, we are also working on the implementation of a system responsible for consolidating information related to Basel II capital calculation.

In the first half of 2009, we promoted through the Basel II project the unification of concepts, procedures and efforts to ensure that we adopted risk management best practices after the Association.

We also reassessed the separation of the business, management and controls areas to enhance their independence and promote more balanced decisions regarding risks involved, pursuant to the requirements of CMN Resolution No. 3,721.

We believe that the changes to be implemented will result in lower allocated capital and, as a result, will establish grounds for an increase in the volume of credit operations resulting from the same capital base.

Title of each share:		Name of each exchange on which registered:
Preferred Share, without par value		New York Stock Exchange*
American Depositary Shares (as evidenced by		New York Stock Exchange
American Depositary Receipts), each
representing 1(one) Share of Preferred Stock

Item 3A. Selected Financial Data	page 10
Item 4A. History and Development of the Company	page 21
Item 4B. Business Overview	pages 28, 70 and 76
Item 5A. Operating Results	page 83
Item 5B. Liquidity and Capital Resources	page 100
Item 10E. Taxation	page 147

		Page
PART I

ITEM 1	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS	6

ITEM 2	OFFER STATISTICS AND EXPECTED TIMETABLE	6

ITEM 3	KEY INFORMATION	6

3A.	Selected Financial Data	6
3B.	Capitalization and Indebtedness	12
3C.	Reasons for the Offer and Use of Proceeds	12
3D.	Risk Factors	12

ITEM 4	INFORMATION ON THE COMPANY	1 9

4A.	History and Development of the Company	19
4B.	Business Overview	21
4C.	Organizational Structure	83
4D.	Property, Plants and Equipment	83

ITEM 4A	UNRESOLVED STAFF COMMENTS	83

ITEM 5	OPERATING AND FINANCIAL REVIEW AND PROSPECTS	83

5A.	Operating Results	83
5B.	Liquidity and Capital Resources	99
5C.	Research and Development, Patents and Licenses, Etc.	106
5D.	Trend Information	106
5E.	Off-Balance Sheet Arrangements	106
5F.	Tabular Disclosure of Contractual Obligations	107

ITEM 6	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES	107

6A.	Directors and Senior Management	107
6B.	Compensation	113
6C.	Board Practices	115
6D.	Employees	119
6E.	Share Ownership	121

ITEM 7	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS	122

7A.	Major Shareholders	122
7B.	Related Party Transactions	124
7C.	Interests of Experts and Counsel	127

ITEM 8	FINANCIAL INFORMATION	127

8A.	Consolidated Financial Statements and Other Financial Information	127
8B.	Significant Changes	130

ITEM 9	THE OFFER AND LISTING	130

9A.	Offer and Listing Details	130
9B.	Plan of Distribution	132
9C.	Markets	132
9D.	Selling Shareholders	137
9E.	Dilution	138
9F.	Expenses of the Issue	138

ITEM 10	ADDITIONAL INFORMATION	138

10A.	Share Capital	138
10B.	Memorandum and Articles of Association	138
10C.	Material Contracts	146

10D.	Exchange Controls	146
10E.	Taxation	147
10F.	Dividends and Paying Agents	153
10G.	Statement by Experts	154
10H.	Documents on Display	154
10I.	Subsidiary Information	154

ITEM 11	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	155

ITEM 12	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES	164

12A.	Debt Securities	164
12B.	Warrants and Rights	164
12C.	Other Securities	164
12D.	American Depositary Shares	164

PART II

ITEM 13	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	166

ITEM 14	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	166

ITEM 15	CONTROLS AND PROCEDURES	167

ITEM 16	[RESERVED]	167

16A.	Audit Committee Financial Expert	167
16B.	Code of Ethics	168
16C.	Principal Accountant Fees and Services	168
16D.	Exemptions from the Listing Standards for Audit Committees	169
16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	169
16F.	Change in Registrant’s Certifying Accountant	169
16G.	Corporate Governance	170

PART III

ITEM 17	FINANCIAL STATEMENTS	173

ITEM 18	FINANCIAL STATEMENTS	173

ITEM 19	EXHIBITS	174

	For the Year Ended December 31,
	2009			2008			2007			2006			2005
				(in millions of R$)
Net interest income		40,691			21,141			21,332			17,043			12,610
Allowance for loan and lease losses		(15,372	)		(9,361	)		(5,542	)		(5,147	)		(2,637	)
Net interest income after allowance for loan and lease losses		25,319			11,780			15,790			11,896			9,973
Fee and commission income		13,479			8,941			7,832			6,788			5,705
Equity in earnings of unconsolidated companies, net		(9	)		474			476			566			583
Insurance premiums, income on private retirement plans and on capitalization plans		8,132			3,917			3,500			3,479			2,681
Other non-interest income (1)		18,834			2,443			5,207			3,781			2,988
Operating expenses (2)		(20,590	)		(12,579	)		(11,177	)		(10,051	)		(7,684	)
Insurance claims, changes in reserves for insurance operations, for private retirement plans and acquisition costs		(6,452	)		(3,301	)		(2,509	)		(2,663	)		(2,233	)
Other non-interest expenses (3)		(15,253	)		(8,131	)		(7,341	)		(5,347	)		(4,567	)
Net income before taxes on income, net income attributable to noncontrolling interest, extraordinary item and cumulative effect of a change in an accounting principle		23,461			3,544			11,778			8,449			7,446
Taxes on income		(8,849	)		1,334			(4,147	)		(2,434	)		(1,941	)
Extraordinary item (recognition in income of excess of net assets acquired over purchase price), net of tax effect		-			-			29			-			-
Cumulative effect of a change in accounting principle, net of tax effect		-			-			-			-			3
Net income		14,612			4,878			7,660			6,015			5,508
Net income attributable to noncontrolling interest		(527	)		(29	)		2			22			(55	)
Net income attributable to Itaú Unibanco		14,085			4,849			7,662			6,037			5,453

	As of December, 31
	2009			2008			2007			2006			2005
							(in millions of R$)
Cash and due from banks (1)		5,355			3,492			3,187			2,851			1,776
Interest-bearing deposits in other banks		89,085			49,677			38,288			26,236			19,833
Securities purchased under resale agreements		56,714			44,783			21,309			8,668			6,389
Central Bank compulsory deposits		13,869			11,314			17,214			15,136			13,277
Trading assets, at fair value		73,529			66,483			40,524			28,095			16,478
Available-for-sale securities, at fair value		41,263			28,445			18,825			13,560			8,369
Held-to-maturity securities, at amortized cost		1,762			1,325			1,428			1,589			1,428
Loans and leases		245,736			169,700			116,459			83,759			55,382
Allowance for loans and lease losses		(19,968	)		(12,202	)		(7,473	)		(6,426	)		(3,933	)
Investments in unconsolidated companies		4,321			2,398			1,859			1,350			2,621
Premises and equipments, net		4,572			2,965			2,755			2,884			2,486
Goodwill and intangible assets, net		37,280			7,099			7,583			6,613			3,402
Other assets		45,570			25,896			17,848			15,850			11,925
Total assets		599,088			401,375			279,806			200,167			139,433

Average interest-earning assets (2)		453,883			287,667			200,127			145,387			103,248
Average non-interest-earning assets (2)		60,812			46,662			41,587			28,688			29,603
Average total assets (2)		514,695			334,329			241,714			174,074			132,851

	Exchange Rate of Brazilian Currency per US$ 1.00
Year	Low		High		Average (1)		Year-End
2005		2.1633		2.7621		2.4125		2.3407
2006		2.0586		2.3711		2.1679		2.1380
2007		1.7325		2.1556		1.9300		1.7713
2008		1.5593		2.5004		1.8335		2.3370
2009		1.7024		2.4218		1.9905		1.7412

	Exchange Rate of Brazilian Currency per US$ 1.00
Month	Low		High		Average (1)		Year-End
November 2009		1.7024		1.7588		1.7262		1.7505
December 2009		1.7096		1.7879		1.7503		1.7412
January 2010		1.7227		1.8748		1.7798		1.8748
February 2010		1.8046		1.8773		1.8416		1.8110
March 2010		1.7637		1.8231		1.7858		1.7810
April 2010		1.7306		1.7806		1.7566		1.7306
May 2010 (through May 4)		1.7315		1.7557		1.7436		1.7557

	2009				2008
	millions of R$		% of total funding		millions of R$		% of total funding
Deposits		190,908		48.2		150,802		51.6
Demand deposits		24,887		6.3		23,041		7.9
Other deposits		997		0.3		1,065		0.4
Savings deposits		48,222		12.2		31,896		10.9
Time deposits		114,810		28.9		92,758		31.7
Deposits from banks		1,992		0.5		2,042		0.7
Securities sold under repurchase agreements		66,174		16.7		49,492		16.9
Short-term borrowings		80,725		20.4		54,277		18.6
Trade finance borrowings		6,093		1.5		9,166		3.1
Local onlendings		215		0.1		122		0.1
Euronotes		414		0.1		576		0.2
Commercial Paper		-		-		60		-
Fixed rate notes		408		0.1		133		0.1
Mortgage notes		7,854		2.0		3,035		1.0
Securities issued and sold to customers under repurchase agreements		65,520		16.5		40,977		14.0
Other short-term borrowings		221		0.1		208		0.1
Long-term debt		58,976		14.7		37,672		12.9
Local onlendings		21,867		5.5		7,271		2.5
Euronotes		1,534		0.4		2,209		0.8
Fixed rate notes		148		-		278		0.1
Mortgage notes		971		0.2		669		0.2
Trade financing borrowings		5,907		1.5		7,361		2.5
Debentures		2,764		0.7		2,093		0.7
Subordinated debt		22,725		5.7		15,030		5.1
Debt under securitization of diversified payments right		-		-		1,424		0.5
Other long-term debt		3,060		0.7		1,337		0.5
Total		396,783		100.0		292,243		100.0

(in millions of R$)
	2009
	0-30 days		31-180 days		181-365 days		Over 365 days		Total
Non-interest bearing deposits		25,884		-		-		-		25,884
Demand deposits		24,887								24,887
Other deposits		997								997
Interest bearing deposits		65,238		16,167		14,785		68,834		165,024
Savings deposits		48,222		-				-		48,222
Time deposits		16,446		15,437		14,242		68,685		114,810
Deposits from banks		570		730		543		149		1,992
Total		91,122		16,167		14,785		68,834		190,908

	2009			2008
Retail		34.7	%		22.9	%
Personnalité		16.1	%		27.2	%
Middle market		34.7	%		40.5	%
Corporate		14.5	%		9.4	%
Total		100.0	%		100.0	%

	December 31, 2009(*)
	R$billion		%
Banco do Brasil(**)		692.0		20.0
Itaú Unibanco Holding		585.6		17.0
Bradesco		444.4		12.9
BNDES		386.6		11.2
CEF		341.8		9.9
Santander		334.1		9.7
HSBC		100.1		3.9
Banco Votorantim		86.9		2.5
Safra		71.1		2.1
Citibank		40.8		1.2
Banrisul		29.3		0.8
BTG Pactual		21.9		0.6
Credit Suisse		21.3		0.6
Deutsche		20.7		0.6
Others		275.4		8.0
Total		3,452.0		100.0

(in millions of R$, except percentages)
	2009								2008								2007
Assets	Average balance			Interest		Average yield/rate (%)			Average balance			Interest		Average yield/rate (%)			Average balance			Interest		Average yield/rate (%)
Interest-earning assets		453,883			72,567		16.0	%		287,667			47,649		16.6	%		200,127			34,603		17.3	%
Interest-bearing deposits in other banks		54,046			3,533		6.5	%		30,555			3,028		9.9	%		26,866			2,852		10.6	%
Securities purchased under resale agreements		59,916			8,673		14.5	%		39,182			5,369		13.7	%		19,268			2,375		12.3	%
Central Bank compulsory deposits		7,816			519		6.6	%		11,747			1,051		8.9	%		10,203			909		8.9	%
Trading assets and securities:		121,215			11,260		9.3	%		73,135			6,874		9.4	%		57,474			5,569		9.7	%
Trading assets, at fair value		78,933			7,087		9.0	%		49,917			4,141		8.3	%		38,133			3,418		9.0	%
Available for sale securities, at fair value		40,605			3,996		9.8	%		22,367			2,536		11.3	%		17,951			1,992		11.1	%
Held-to-maturity securities, at amortized cost		1,677			177		10.5	%		852			198		23.2	%		1,390			159		11.4	%
Loans and leases		210,890			48,582		23.0	%		133,047			31,326		23.5	%		86,316			22,898		26.5	%
Non-interest-earning assets		60,812								46,662								41,587
Cash and due from banks		6,235								4,092								4,041
Central Bank compulsory deposits		5,087								4,543								5,074
Non-accrual loans		10,919								6,270								5,022
Allowance for loan and lease losses		(21,186	)							(8,486	)							(7,224	)
Premises and equipments, net		3,393								2,383								2,094
Investments in unconsolidated companies		3,890								3,209								1,640
Goodwill and intangible assets, net		21,583								7,172								7,303
Other assets		30,891								27,479								23,638
Total assets		514,695								334,329								241,714

(in millions of R$)
	Increase/(decrease) due to changes in:
	2009/2008									2008/2007
	Volume			Yield/rate			Net change			Volume			Yield/rate			Net change
Interest-earning assets:		26,878			(1,960	)		24,918			15,934			(2,888	)		13,045
Interest-bearing deposits in other banks		1,779			(1,274	)		505			374			(198	)		176
Securities purchased under resale agreements		2,986			318			3,304			2,702			292			2,994
Central Bank compulsory deposits		(300	)		(232	)		(532	)		138			4			142
Trading assets and securities:		4,467			(82	)		4,385			1,477			(171	)		1,305
Trading assets		2,581			366			2,946			993			(270	)		723
Available for sale securities		1,833			(373	)		1,460			500			44			544
Held-to-maturity securities		125			(146	)		(21	)		(79	)		118			39
Loans and leases		17,946			(691	)		17,256			11,243			(2,815	)		8,428
Interest-bearing liabilities:		13,702			(8,334	)		5,368			8,013			5,225			13,237
Interest-bearing deposits:		6,354			(813	)		5,541			2,418			305			2,723
Saving deposits		699			(229	)		470			278			99			377
Deposits from banks		155			(55	)		100			(223	)		188			(34	)
Time deposits		5,725			(753	)		4,971			2,518			(138	)		2,380
Securities sold under repurchase agreements		2,501			(1,813	)		688			3,215			(179	)		3,036
Borrowings:		3,905			(6,463	)		(2,557	)		2,005			5,691			7,696
Short-term borrowings		1,433			(3,855	)		(2,423	)		1,725			2,683			4,408
Long-term debt		2,493			(2,627	)		(135	)		366			2,923			3,289
Investment contracts		942			755			1,696			375			(593	)		(218	)

(in millions of R$, except percentages)
	2009			% of total			2008			% of total			2007			% of total
Trading assets, at fair value		73,529			100.0	%		66,483			100.0	%		40,524			100.0	%
Investment funds		39,347			53.5	%		24,458			36.8	%		20,321			50.1	%
Brazilian federal government securities		23,985			32.6	%		27,145			40.8	%		10,222			25.2	%
Brazilian external debt bonds		222			0.3	%		383			0.6	%		240			0.6	%
Government securities - abroad		1,058			1.5	%		1,988			2.8	%		3,365			8.3	%
Argentina		179			0.2	%		64			0.1	%		37			0.1	%
United States		748			1.2	%		1,038			1.6	%		286			0.7	%
Mexico		10			0.0	%		6			0.0	%		69			0.2	%
Russia		-			0.0	%		-			0.0	%		275			0.7	%
Denmark		-			0.0	%		-			0.0	%		196			0.5	%
Spain		-			0.0	%		418			0.6	%		847			2.1	%
Korea		-			0.0	%		291			0.4	%		1,582			3.9	%
Chile		77			0.1	%		164			0.2	%		71			0.2	%
Uruguay		30			0.0	%		6			0.0	%		-			0.0	%
Others		14			0.0	%		1			0.0	%		2			0.0	%
Corporate debt securities		2,226			3.0	%		2,030			3.1	%		2,110			5.3	%
Marketable equity securities		1,142			1.6	%		456			0.7	%		393			1.0	%
Derivative financial instruments		5,549			7.5	%		10,023			15.1	%		3,873			9.5	%
Trading assets as a percentage of total assets		18.21	%					16.47	%					14.99	%
Securities available for sale, at fair value		41,263			100.0	%		28,445			100.0	%		18,825			100.0	%
Investment funds		1,259			2.9	%		992			3.4	%		973			5.0	%
Brazilian federal government securities		14,443			35.0	%		5,579			19.6	%		2,145			11.4	%
Brazilian external debt bonds		1,980			4.8	%		965			3.5	%		278			1.5	%
Government securities - abroad		7,243			17.7	%		8,733			30.7	%		7,697			40.9	%
Portugal		26			0.1	%		301			1.1	%		240			1.3	%
Argentina		-			0.0	%		1			0.0	%		53			0.3	%
United States		17			0.1	%		25			0.1	%		-			0.0	%
Norway		-			0.0	%		345			1.2	%		189			1.0	%
Italy		-			0.0	%		-			0.0	%		70			0.4	%
Austria		213			0.5	%		1,460			5.1	%		2,108			11.2	%
Denmark		1,971			4.8	%		2,193			7.7	%		174			0.9	%
Spain		1,093			2.6	%		2,830			9.9	%		2,284			12.1	%
Korea		1,757			4.3	%		1,021			3.6	%		2,159			11.5	%
Chile		1,274			3.1	%		483			1.7	%		355			1.9	%
Paraguay		417			1.0	%		-			0.0	%		-			0.0	%
Uruguay		475			1.2	%		74			0.3	%		65			0.3	%
Corporate debt securities		14,966			29.8	%		11,490			40.6	%		5,294			28.3	%
Marketable equity securities		1,372			9.8	%		686			2.2	%		2,438			12.9	%

Securities available for sale as a percentage of total assets		10.22	%					7.05	%					6.2	%
Held-to-maturity securities, at amortized cost		1,762			100.0	%		1,325			100.0	%		1,428			100.0	%
Brazilian federal government securities		1,273			72.2	%		637			48.1	%		822			57.6	%
Brazilian external debt bonds		238			13.5	%		321			24.2	%		307			21.5	%
Government securities - abroad		17			1.0	%		22			1.7	%		19			1.3	%
Corporate debt securities		234			13.3	%		345			26.0	%		280			19.6	%

Held-to-maturity securities, as a percentage of total assets		0.44	%					0.33	%					0.53	%

	For the Year Ended December 31,
	2009		2008		2007		2006		2005
			(in R$, except number of shares)
Basic earnings per share (1)(2):
Common		3.25		1.49		2.32		1.93		1.76
Preferred		3.25		1.49		2.32		1.93		1.77
Diluted earnings per share (1)(2):
Common		3.24		1.48		2.31		1.92		1.75
Preferred		3.24		1.48		2.31		1.92		1.75
Dividends and interest on shareholders’ equity per share (1)(3):
Common		0.92		1.16		0.68		0.71		0.60
Preferred		0.92		1.16		0.68		0.71		0.60
Weighted average number of shares outstanding (per share) (4):
Common		2,192,530,134		1,708,760,440		1,708,796,764		1,654,094,971		1,664,771,024
Preferred		2,143,753,894		1,554,841,088		1,589,475,999		1,470,348,594		1,424,813,917

(in millions of R$)
	Amortized cost		Fair value
Trading assets		72,968		73,529
Investment funds		39,316		39,347
Brazilian federal government securities		23,945		23,985
Brazilian external debt bonds		221		222
Government securities - abroad		1,045		1,058
Argentina		179		179
United States		735		748
Mexico		10		10
Chile		77		77
Uruguay		30		30
Others		14		14
Corporate debt securities		2,219		2,226
Marketable equity securities		908		1,142
Derivative financial instruments		5,314		5,549
Securities available for sale		40,637		41,263
Investment funds		1,247		1,259
Brazilian federal government securities		14,324		14,443
Brazilian external debt bonds		2,060		1,980
Government securities - abroad		7,261		7,243
Portugal		26		26
United States		17		17
Austria		212		213
Denmark		1,995		1,971
Spain		1,090		1,093
Korea		1,750		1,757
Chile		1,278		1,274
Paraguay		417		417
Uruguay		476		475
Corporate debt securities		14,852		14,966
Marketable equity securities		893		1,372
Held-to-maturity securities		1,762		2,124
Brazilian federal government securities		1,273		1,572
Brazilian government external debt securities		238		280
Other governments external debt securities		17		17
Corporate debt securities		234		255

	Maturity
	No stated maturity					Due in 1 year or less					Due after 1 year to 5 years					Due after 5 years to 10 years					Due after 10 years					Total
	Average yield
	R$		Average yield %			R$		Average yield %			R$		Average yield %			R$		Average yield %			R$		Average yield %			R$		Average yield %
Trading assets		40,490					14,342					16,003					1,692					1,002					73,529
Investment funds (1)		39,347		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		39,347		0.00	%
Brazilian federal government securities		-		0.00	%		9,960		3.64	%		12,285		2.70	%		811		2.03	%		929		9.14	%		23,985		17.51	%
Brazilian external debt bonds		-		0.00	%		156		9.96	%		54		10.10	%		11		9.25	%		1		0.00	%		222		29.31	%
Government securities - abroad		1					196					374					480					7					1,058
Argentina		-		0.00	%		66		11.00	%		79		4.18	%		31		7.00	%		3		0.00	%		179		22.18	%
United States		-		0.00	%		21		2.71	%		284		2.15	%		443		4.00	%		-		0.00	%		748		8.86	%
Mexico		-		0.00	%		6		0.00	%		1		0.00	%		2		0.00	%		1		0.00	%		10		0.00	%
Chile		-		0.00	%		77		4.66	%		-		0.00	%		-		0.00	%		-		0.00	%		77		4.66	%
Uruguay		-		0.00	%		24		9.18	%		3		0.00	%		2		0.00	%		1		0.00	%		30		9.18	%
Others		1		0.00	%		2		0.00	%		7		0.00	%		2		0.00	%		2		0.00	%		14		0.00	%
Corporate debt securities		-		0.00	%		574		9.14	%		1,387		1.81	%		217		8.21	%		48		7.92	%		2,226		27.08	%
Marketable equity securities (1)		1,142		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		1,142		0.00	%
Derivative financial instruments (1)		-		0.00	%		3,456		8.35	%		1,903		12.95	%		173		8.81	%		17		0.00	%		5,549		30.11	%
Securities available for sale		5,310					15,013					13,638					2,706					4,596					41,263
Investment funds (1)		1,256		0.00	%		-		0.00	%		-		0.00	%		3		0.00	%		-		0.00	%		1,259		0.00	%
Brazilian federal government securities		-		0.00	%		3,226		7.19	%		9,263		7.39	%		241		6.73	%		1,713		5.19	%		14,443		26.50	%
Brazilian external debt bonds		-		0.00	%		122		11.31	%		741		9.09	%		43		8.00	%		1,074		10.21	%		1,980		38.61	%
Government securities - abroad		-					6,659					581					3					-					7,243
Portugal		-		0.00	%		26		5.85	%		-		0.00	%		-		0.00	%		-		0.00	%		26		5.85	%
United States		-		0.00	%		-		0.00	%		17		5.00	%		-		0.00	%		-		0.00	%		17		5.00	%
Austria		-		0.00	%		213		14.00	%		-		0.00	%		-		0.00	%		-		0.00	%		213		14.00	%
Denmark		-		0.00	%		1,545		34.95	%		426		8.20	%		-		0.00	%		-		0.00	%		1,971		43.15	%
Spain		-		0.00	%		1,093		10.63	%		-		0.00	%		-		0.00	%		-		0.00	%		1,093		10.63	%
Korea		-		0.00	%		1,757		12.23	%		-		0.00	%		-		0.00	%		-		0.00	%		1,757		12.23	%
Chile		-		0.00	%		1,214		6.29	%		58		0.00	%		2		0.00	%		-		0.00	%		1,274		6.29	%
Paraguay		-		0.00	%		350		18.78	%		67		12.19	%		-		0.00	%		-		0.00	%		417		30.97	%
Uruguay		-		0.00	%		461		8.03	%		13		0.00	%		1		0.00	%		-		0.00	%		475		8.03	%
Corporate debt securities		2,682		0.00	%		5,006		5.53	%		3,053		8.23	%		2,416		10.00	%		1,809		11.28	%		14,966		35.04	%
Marketable equity securities (1)		1,372		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		-		0.00	%		1,372		0.00	%
Held-to-maturity securities, at amortizad cost		-					41					614					63					1,044					1,762
Brazilian federal government securities		-		0.00	%		19		6.00	%		164		6.00	%		52		0.00	%		1,038		0.00	%		1,273		12.00	%
Brazilian external debt bonds		-		0.00	%		-		0.00	%		238		5.01	%		-		0.00	%		-		0.00	%		238		5.01	%
Government securities - abroad		-		0.00	%		-		0.00	%		-		0.00	%		11		0.00	%		6		0.00	%		17		0.00	%
Corporate debt securities		-		0.00	%		22		5.01	%		212		5.78	%		-		0.00	%		-		0.00	%		234		10.79	%

Denominated in Brazilian currency	67,748	33,073	1,264	102,085
Denominated in Brazilian currency and indexed by foreign currency (1)	474	1,685	60	2,219
Denominated in foreign currency (1)	5,307	6,505	438	12,250
At 2008
Denominated in Brazilian currency	60,983	21,562	599	83,144
Denominated in Brazilian currency and indexed by foreign currency (1)	58	1,347	108	1,513
Denominated in foreign currency (1)	5,441	5,536	618	11,595
At 2007
Denominated in Brazilian currency	37,793	15,384	788	53,965
Denominated in Brazilian currency and indexed by foreign currency (1)	81	439	103	623
Denominated in foreign currency (1)	2,650	3,002	537	6,189

(in millions of R$)
Type of loan and lease	Due in 30 days or less		Due in 31-90 days		Due in 91-180 days		Due in 181- 360 days		Due in one year to three years		Due after three years		No stated maturity
Commercial:
Industrial and others		15,389		17,944		11,216		14,681		24,780		12,432		3,800
Import financing		155		438		405		390		276		179		-
Export financing		586		1,013		1,141		1,263		1,533		1,031		-
Real estate loans		252		1,432		505		1,017		2,205		5,456		-
Lease financing		2,155		3,824		5,411		10,327		22,752		913		4
Government		8		14		414		192		582		394		6
Individuals:
Overdraft		-		-		-		-		-		-		3,162
Financing and others		1,774		2,921		3,695		6,073		13,101		3,665		8
Credit card		-		-		-		-		-		-		26,350
Agricultural		343		719		1,374		1,581		486		553		-
Total (1)		20,662		28,305		24,161		35,524		65,715		24,623		33,330

(in millions of R$)
Type of loan and lease	30 days or less		31-90 days		91-180 days		181-360 days		One year or more		Total gross loans		Allowance for loan losses			Total net
Commercial:
Industrial and other		849		746		1,025		1,617		26		104,505		(3,334	)		101,171
Import financing		21		17		8		6		-		1,895		(11	)		1,884
Export financing		32		48		128		48		-		6,823		(127	)		6,696
Real estate loans		15		21		18		13		5		10,939		(209	)		10,730
Lease financing		426		398		393		495		132		47,230		(2,521	)		44,709
Government		-		-		-		1		-		1,611		-			1,611
Individuals:
Overdraft		102		144		274		436		1		4,119		(1,319	)		2,800
Financing and other		398		333		346		381		6		32,701		(6,382	)		26,319
Credit card		963		743		975		1,719		31		30,781		(5,309	)		25,472
Agricultural		33		5		5		32		1		5,132		(756	)		4,376
Total (1)		2,839		2,455		3,172		4,748		202		245,736		(19,968	)		225,768

(in millions of R$)
	Due in 30 days or less		Due in 31-90 days		Due in 91-180 days		Due in 181-360 days		Due in one year to three years		Due after three years		No stated maturity
Interest rate of loans to customers by maturity:
Variable rates		6,619		9,906		7,495		10,264		20,629		18,851		13,533
Fixed rates		14,043		18,399		16,666		25,260		45,086		5,772		19,797
Total (1)		20,662		28,305		24,161		35,524		65,715		24,623		33,330

	(in millions of R$)
Due from banks		345
Interest-bearing deposits in other banks		5,722
Securities purchased under resale agreements		137
Central Bank compulsory deposits		1,308
Trading assets		1,782
Available-for-sale securities		2,782
Loans and leases		15,813
Total outstanding		27,889

(in millions of R$)
	Due in three months or less		Due after three months to six months		Due after six months to one year		After one year		Total
Non-interest-bearing deposits		25,884		-		-		-		25,884
Demand deposits		24,887								24,887
Other deposits		997								997
Interest-bearing deposits:		74,095		7,310		14,785		68,834		165,024
Savings deposits		48,222		-						48,222
Time deposits		25,001		6,881		14,243		68,685		114,810
Deposits from banks		872		429		542		149		1,992
Total		99,979		7,310		14,785		68,834		190,908

(in millions of R$)
Maturity within three months			14,878
Maturity after three months to six months			3,901
Maturity after six months to twelve months			9,517
Maturity after twelve months			58,519
Total time deposits in excess of US$100,000			86,815

(in millions of R$, except percentages)
	Full consolidation
	2009			2008			2007
Tier 1 Capital		57,706			52,156			29,611
Tier 2 Capital		12,837			15,926			7,721
Tier 1 plus Tier 2 Capital		70,543			68,082			37,332
Adjustments		(28	)		(87	)		(237	)
Our regulatory capital (1)		70,515			67,995			37,095
Minimum regulatory capital required (2)		46,513			45,819			22,850
Excess over minimum regulatory capital required		24,002			22,176			14,245
Total risk-weighted assets		422,840			416,540			207,726
Our regulatory capital to risk-weighted assets ratio		16.7	%		16.3	%		17.9	%

	As of and for the year ended December 31,
	2009			2008		2007		2006
Real GDP growth % (1)		(0.2	)		5.1		6.1		4.0
Inflation rate % (2)		(1.4	)		9.1		7.9		3.8
Inflation rate % (3)		4.3			5.9		4.5		3.1
Exchange rate variation %(R$ /US$) (4)		-25.5			31.9		-17.2		-8.7
TR – a reference interest rate % (5)		0.20			2.27		0.85		1.99
CDI (interbank interest rate) % (6)		8.61			13.46		11.11		13.14
SELIC – overnight interest rate % (5)		8.65			13.66		11.18		13.19

	Year Ended December 31,
	2009			2008
	(in millions of R$)

Interest income		72,567			47,649
Interest expense		(31,876	)		(26,508	)
Net interest income		40,691			21,141
Provision for loan and lease losses		(15,372	)		(9,361	)
Net interest income after provision for loan and lease losses		25,319			11,780
Non-interest income		40,436			15,775
Non-interest expense		(42,294	)		(24,011	)
Income before taxes and extraordinary item		23,461			3,544
Taxes on income		(8,849	)		1,334
Net income		14,612			4,878
Less: Net Income attributable to noncontrolling interest		(527	)		(29	)
Net income Attributable to Itaú Unibanco		14,085			4,849

	As of December 31,
	(in millions of R$ , except for percentages)
	2009				2008
Total of loans and leases		245,736	88.3	%		169,700	92.6	%
Guarantees granted		32,441	11.7	%		13,513	7.4	%
Total of loans and leases (including guarantees granted)		278,177	100.0	%		183,213	100.0	%

	As of December 31,
	(in millions of R$ except for percentages)
	2009				2008				Variation (%)
Loans to individuals		103,306	37.1	%		70,589	38.5	%		32,716		46.3	%
Credit card		30,115	10.8	%		13,624	7.4	%		16,491		121.0	%
Personal credit		21,458	7.7	%		15,616	8.5	%		5,842		37.4	%
Vehicles		51,732	18.6	%		41,349	22.6	%		10,383		25.1	%
Loans to companies		149,521	53.8	%		91,936	50.2	%		57,585		62.6	%
Micro-, small- and medium-sized companies		60,880	21.9	%		36,926	20.2	%		23,954		64.9	%
Large companies		88,641	31.9	%		55,010	30.0	%		33,630		61.1	%
Regulatorily required loans *		13,643	4.9	%		8,412	4.6	%		5,231		62.2	%
Argentina / Chile / Uruguay/ Paraguay		11,708	4.2	%		12,275	6.7	%		(567	)	-4.6	%
Total of loans and leases (including guarantees granted)		278,177	100.0	%		183,213	100.0	%		94,964		51.8	%

	Year Ended December, 31.
	2009			2008
	(in millions of R$)
Non-interest income
Fee and commission income		13,479			8,941
Trading income (loss)		9,284			(2,843	)
Net gain (loss) on sale of available-for-sale securities		211			(114	)
Net gain on foreign currency transactions		2,619			1,059
Net gain (loss) on transactions of foreign subsidiaries		(3,390	)		1,938
Equity in earning of unconsolidated companies, net		(9	)		474
Insurance premiums, income on private retirement plans and on capitalization plans		8,132			3,917
Other non-interest income		10,110			2,403
Total non-interest income		40,436			15,775

	For the years ended December 31,
	2009					2008					2007
	Average balance		% of total			Average balance		% of total			Average balance		% of total
Interest-bearing liabilities		382,880		84.5	%		230,083		77.1	%		151,391		72.5	%
Interest-bearing deposits		159,296		35.2	%		74,390		24.9	%		45,287		21.7	%
Savings deposits		40,998		9.0	%		29,509		9.9	%		25,256		12.1	%
Deposits from banks		2,605		0.6	%		1,461		0.5	%		3,588		1.7	%
Time deposits		115,693		25.5	%		43,421		14.5	%		16,443		7.9	%

Securities sold under repurchase agreements		65,939		14.6	%		45,234		15.2	%		22,880		11.0	%
Borrowings:		124,953		27.6	%		89,589		30.0	%		67,005		32.1	%
Short-term borrowings		70,861		15.6	%		58,252		19.5	%		41,199		19.7	%
Long-term debt		54,093		11.9	%		31,337		10.5	%		25,805		12.4	%
Investment contracts		32,691		7.2	%		20,870		7.0	%		16,220		7.8	%
Non-interest-bearing liabilities		70,272		15.5	%		68,394		22.9	%		57,431		27.5	%
Non-interest bearing deposits		23,799		5.3	%		21,198		7.1	%		18,364		8.8	%
Other non-interest bearing liabilities		46,474		10.3	%		47,196		15.8	%		39,067		18.7	%
Total liabilities		453,152		100.0	%		298,477		100.0	%		208,822		100.0	%

(in millions of R$, except percentages)
	Up to 30 days			31-90 days			91-180 days			181-365 days			1-3 years			Over 3 years			Total
Total interest-earning assets		203,915			44,724			44,465			56,196			89,075			83,583			521,958
Interest-bearing deposits in other banks		62,548			5,833			7,921			5,353			4,274			3,156			89,085
Securities purchased under resale agreements and federal funds sold		48,699			4,632			3,383			-			-			-			56,714
Central Bank compulsory deposits		13,869			-			-			-			-			-			13,869
Trading assets		47,203			1,221			1,391			5,017			8,510			10,187			73,529
Securities available-for-sale		8,090			2,267			4,437			5,529			9,961			10,979			41,263
Securities held-to-maturity		5			11			-			25			413			1,308			1,762
Loans and leases		23,501			30,760			27,333			40,272			65,917			57,953			245,736
Total interest-bearing liabilities		236,191			13,999			15,338			21,978			72,644			51,812			408,962
Savings deposits		48,222			-			-			-			-			-			48,222
Time deposits		16,446			8,556			6,881			14,242			43,822			24,863			114,810
Deposits from banks		570			301			429			543			84			65			1,992
Securities sold under repurchase agreements and federal funds purchased		60,617			131			427			526			1,780			2,693			66,174
Short- and long-term borrowings		69,273			5,011			7,601			6,667			26,958			24,191			139,701
Investment contracts		38,063			-			-			-			-			-			38,063
Asset/liability gap		(29,276	)		30,725			29,127			34,218			16,431			31,771			112,996
Cumulative gap		(29,276	)		1,449			30,576			64,794			81,225			112,996
Ratio of cumulative gap to total interest-earning assets		(5.6	%)		0.3	%		5.9	%		12.4	%		15.6	%		21.6	%

(in millions of R$, except percentages)
	As of December 31, 2009
	R$		Denominated in foreign currency			Indexed to foreign currency			Total			Percentage of amounts denominated in and indexed to foreign currency of total
Assets:	534,418			53,563			11,107			599,088			10.8	%
Cash and due from banks and restricted cash	4,952			346			57			5,355			7.5	%
Interest - Bearing Deposits in Other Banks	75,534			13,054			497			89,085			15.2	%
Securities Purchased under resale agreements	56,321			392			-			56,714			0.7	%
Central Bank Compulsory Deposits	12,561			1,308			-			13,869			9.4	%
Securities (2)	102,085			12,250			2,219			116,554			12.4	%
Loans and leases	212,572			24,966			8,198			245,736			13.5	%
Allowance for loan losses	(19,290	)		(677	)		-			(19,968	)		3.4	%
Investments in affiliates and other investments	3,789			532			-			4,321			12.3	%
Premises and equipment, net	4,452			120			-			4,572			2.6	%
Goodwill, net	15,059			(348	)		-			14,711			-2.4	%
Intangibles assets, net	22,143			426			-			22,569			1.9	%
Other assets (1)	44,242			1,202			127			45,570			2.9	%
Percentage of total assets	89.2	%		8.9	%		1.9	%		100.0	%
Liabilities and Stockholders’ Equity:	542,112			51,831			5,289			599,088			9.5	%
Non-interest bearing deposits	17,766			7,892			227			25,885			31.4	%
Interest - Bearing Deposits	143,809			21,215			-			165,024			12.9	%
Securities sold under repurchase agreements	64,894			1,280			-			66,174			1.9	%
Short-Term borrowings	73,738			6,045			941			80,725			8.7	%
Long-Term borrowings	45,503			12,721			753			58,976			22.8	%
Insurance claims reserve and reserve for private retirement plans	13,385			6			96			13,487			0.8	%
Investment contracts	38,063			-			-			38,063			0.0	%
Other liabilities (1)	62,774			2,673			3,273			68,720			8.7	%
Nonocontrolling interest	12,757			-			-			12,757			0.0	%
Stockholders’ equity	69,422			-			-			69,277			0.0	%
Percentage of total liabilities and stockholders’ equity	90.5	%		8.7	%		0.9	%		100.0	%

(in millions of R$)
	Notional amounts
	R$			Denominated in or linked to Foreign Currency			Total
Derivative financial instruments
Swap contracts
Buy (Sale) commitments, net		4,641			(4,641	)		-
Forward contracts
Buy (Sale) commitments, net		598			(1,509	)		(911	)
Future contracts
Buy (Sale) commitments, net		(12,588	)		(15,779	)		(28,367	)
Option contracts
Buy (Sale) commitments, net		121,514			15,792			137,306

(in millions of R$)
	Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 year		3-5 year		More than 5 years
Long-term debt obligations		58,976		7,827		26,958		15,071		9,120
Operating and capital (finance) lease obligations		3,392		-		1,919		727		746
Guarantees and stand by letters of credit		32,441		12,686		2,873		13,945		2,937
Total		94,809		20,513		31,750		29,743		12,803