MANAGEMENT REPORT – 1ST HALF OF 2011

To our Stockholders

We present the Management Report and financial statements of Itaú Unibanco Holding S.A. (Itaú Unibanco) and its subsidiaries for the first half of 2011, in accordance with the regulations established by the Brazilian Corporate Law, the National Monetary Council (CMN), the Central Bank of Brazil (BACEN), the Brazilian Securities and Exchange Commission (CVM), the Superintendency of Private Insurance (SUSEP), and the National Council of Private Insurance (CNSP).

Highlights

Itaú Unibanco was elected the World’s Most Sustainable Bank in the 2011 FT/IFC Sustainable Finance Awards, granted by the British newspaper Financial Times and the International Finance Corporation (IFC), the financial institution of the World Bank. In 2009 and 2010, Itaú Unibanco had already received the Most Sustainable Bank award in the Latin America and Emerging Markets categories. The FT/IFC Sustainable Finance Awards is one of the most significant acknowledgements in the world in the sustainable area and has been electing financial institutions dedicated to this issue for five years.

In April 2011, Itaú Unibanco Holding entered into an Agreement for Purchase and Sale of Shares with Carrefour Brazil in order to acquire 49% of Banco Carrefour for R$ 725 million. Banco Carrefour is the entity responsible for the offer and distribution, on an exclusive basis, of finance, insurance and pension plan products and services, in the distribution channels of Carrefour Brazil operated under the “Carrefour” brand in Brazil (electronic channels and 163 hypermarkets and supermarkets), currently with a base of 7.7 million accounts and loan portfolio (gross amount) of R$ 2.3 billion at December 31, 2010. The completion of the transaction depends on the approval of the Central Bank of Brazil.

For the eighth consecutive time, Itaú brand was recognized as the most valuable in Brazil by Interbrand consulting company, a pioneer in the development of the brand valuation method, being valued at R$ 24.3 billion. The value is 18% higher than that measured in 2010, when it was valued at R$ 20.7 billion, and 130% higher than in 2008 (R$ 10.6 billion), year of merger between Itaú and Unibanco. In order to place a value on each brand, Interbrand assesses companies from the perspective of financial performance, as well as placing a value on its intangible assets by measuring its capacity of obtaining the preference of consumers, and the probability of expected future earnings. From such perspective, the brand is understood as a fundamental asset in the set of financial information, attributes and corporate values. In May of this year, the Itaú brand has also been included for the first time in the BrandZ ranking, which reveals the 100 most valuable brands in the world. The annual ranking, conducted by the research agency Millward Brown, is published in the Financial Times, and ranked Itaú as the 90th most valuable brand in the world, a growth of 29% in its brand value.

In the period from January 1 to July 15, 2011, commencement date of the blackout period, when the repurchase of shares is prohibited in view of the disclosure of the financial statements for the first half, the Bank acquired 22,500,000 preferred shares at the average price of R$ 34.94 supported by its program approved on November 1, 2010. This information was announced to the market on July 20, 2011, in accordance with the “Operating Rules for the Trading of Own Shares as Treasury Stock” and the best corporate governance practices.

Economic Environment

The first half of 2011 was marked by high volatility in the international market. The fiscal deterioration in Greece, with possibility of contamination of other countries, brought back the risk of a new world financial crisis, with negative impact on growth. Greece’s debt will be restructured according to the announced agreement between the leaders of the Eurozone. The major issue will be response of markets and the Eurozone in relation to other countries with fiscal troubles. In the United States, the political pressures to reduce the fiscal debt are also considerable. In addition to fiscal issues, the return of doubts about the international growth rate, particularly of the United States and China, has also exerted a negative influence over the international scenario.

In the domestic scenario, the economic activity continued to slowdown. The GDP for the second quarter will post an increase of 1% as compared to the first quarter of 2011, showing a little slowdown in relation to the 1.33% for the previous quarter. Loans to individuals showed a slower growth for the first half and is also at a level lower than that posted for the end of 2010, before the macroprudential measures of the government.  The expectations of consumers and business people remain less optimistic. Discretionary government spending has shown a slowdown, contributing to an activity scenario that is less dynamic. The industrial production posted a cumulative growth of 2.8% from December 2010 to May 2011, a slowdown in relation to the 4.3% growth for the same period of 2010. This slowdown reflects a reduction in the activity because of increased imports and slower demand acceleration.

The consumer price index posted a growth of 3.87% for the first half, above the 3.09% posted for the same period of 2010. In this process, we highlight the high inflation forecasts, booming labor market and inflationary inertia. High commodity prices have also contributed to increased consumer prices.

In the first half, the Central Bank started a process for increasing the interest rate to curb the rise in inflation, by successively increasing the country's base rate (SELIC) until reaching 12.50% in July, as compared to 10.75% at the end of 2010.

In the insurance market, a 12.4% increase in revenue from direct premiums in real terms until May was noted, as compared to the same period of 2010. This growth was caused mainly due to the substantial increase in property and personal insurance in view of the growth in family income. In the pension plan market, increase exceeded by 1.7% the amounts accumulated in the same period of 2010, of which we highlight the expansion of 8.7% in PGBL funds, in actual terms.  In the credit and debit cards market, revenue per card posted an increase of 5.4% in actual terms in the first half of 2011, in addition to a 10% increase in the number of cards.

The credit market showed a very modest growth over the first half of 2011, with a limited recovery after the macroprudential measures adopted by the government at the end of 2010. The total credit as a percentage of the GDP reached 46.9% in May, as compared to 46.4% in December 2010. The average default rose to 5.1% in May, as compared to 4.5% in the closing of 2010, caused by the increase in interest rates and reduction in the average term of operations. The credit growth shall continue to be modest in the second half, with the slowdown of the economy.

Main Results

Following are the main results of Itaú Unibanco for the first half of 2011. The Complete Financial Statements and the Management’s Discussion & Analysis Report of Itaú Unibanco, which present further details on the results for the period, are available on the Itaú Unibanco website at www.itau-unibanco.com/ir.

	Jan to Jun/11			Jan to Jun/10			Change (%)
Income – R$ billion (1)
Gross income from financial operations		24.3			20.7			17.6	%
Expenses for allowance for loan losses		(9.5	)		(7.8	)		22.2	%
Income from recovery of credits written off as loss		2.6			1.8			43.4	%
Income from services, income from bank charges and income from insurance, pension plan and capitalization		10.4			9.3			10.9	%
Personnel, administrative and other operating expenses		(15.2	)		(13.8	)		10.0	%
Income tax and social contribution		(3.3	)		(2.0	)		64.2	%
Recurring net income		7.0			6.5			7.6	%
Net income		7.1			6.4			11.5	%
Results per share – R$
Recurring net income (2)		1.53			1.43			7.3	%
Net income (2)		1.57			1.41			11.2	%
Book value (2)		14.57			12.15			20.0	%
Dividends and interest on capital (net of taxes)		0.3020			0.4241			-28.8	%
Price of preferred share (PN) (3)		36.36			33.00			10.2	%
Market capitalization – R$ billion (4)		164.9			149.6			10.2	%

										Change (%)
	Jun 2011			Dec 2010			Jun 2010			Jun/10 to Jun/11			Dec/10 to Jun/11
Balance Sheet - R$ billion
Total assets		792.5			750.3			647.5			22.4	%		5.6	%
Total loans (including endorsements and sureties)		360.1			333.4			294.4			22.3	%		8.0	%
Free, raised and managed own assets		1,067.4			1,008.5			901.7			18.4	%		5.8	%
Subordinated debt		37.2			33.8			28.3			31.7	%		10.1	%
Stockholders’ equity		66.1			60.9			55.1			20.0	%		8.5	%
Referential equity (financial system consolidated)		83.0			80.7			69.5			19.4	%		2.9	%
Financial ratios (%)
Recurring return on average equity		21.9	%		23.5	%		24.4	%	-2.5 p.p			-1.6 p.p
Return on average equity		22.4	%		24.1	%		24.2	%	-1.8 p.p			-1.7 p.p
Return on average assets		1.8	%		2.0	%		2.0	%	-0.1 p.p			-0.2 p.p
Efficiency ratio (5)		48.0	%		49.1	%		46.8	%	1.2 p.p			-0.8 p.p
Basel ratio (financial system consolidated)		15.8	%		15.8	%		15.7	%	0.1 p.p			0.0 p.p
Fixed assets ratio (financial system consolidated)		48.6	%		37.3	%		39.0	%	9.6 p.p			11.3 p.p

(1) Excludes the non-recurring effects of each period;

(2) Calculated based on the weighted average number of shares;

(3) Calculated based on the average quotation of preferred shares on the last day of the period;

(4) Calculated based on the average quotation of preferred shares on the last day of the period (quotation of average PN multiplied by the number of outstanding shares at the end of the period);

(5) Calculated based on international criteria defined in the Management's Discussion & Analysis Report.

Business Performance

We present below the main achievements of Itaú Unibanco in the first half of 2011.

Net income for the first half of 2011 reached R$ 7.1 billion, with annualized return of 22.4% on average equity (24.2% for the first half of 2010). Recurring net income was R$ 7.0 billion, with annualized return of 21.9%. Itaú Unibanco paid or provided for its own taxes and contributions in the total amount of R$ 7.9 billion for the first half of 2011. The Bank also withheld and passed on taxes in the amount of R$ 5.9 billion, which were directly levied on financial operations.

Consolidated assets totaled R$ 792.5 billion and consolidated stockholders’ equity totaled R$ 66.1 billion at June 30, 2011.

The loan portfolio, including endorsements and sureties, reached R$ 360.1 billion, an decrease of 8.0% as compared to December 31, 2010, and the following is noteworthy:

Individuals Segment:

· In Brazil, loans to individuals segment reached R$ 135.9 billion, 8.7% higher than the amount recorded at December 31, 2010;

· In the first half of 2011, the real estate portfolio reached R$ 11.0 billion, an increase of 36.2% as compared to the end of 2010;

· Products such as Credit Card, Personal Loan and Payroll Advance Loan post growth of 4.6%, 30.6% and 18.0% respectively, as compared to the result at December 31, 2010.

· Leader in the vehicle acquisition financing segment, Itaú Unibanco reached a balance of R$ 60.1 billion in the loan portfolio at June 30, 2011, keeping the same level of December 31, 2010. New granting in the vehicle financing and leasing segment totaled R$ 13.3 billion. Itaú Unibanco consolidated its lease, finance and Finame operations for heavy vehicles, reaching a balance of R$ 7.9 billion at June 30, 2011.

Corporate Segment:

· The very small, small and middle market company segment, which serves companies with annual revenue of up to R$ 150 million, posted at June 30, 2011 a balance for its loan portfolio, including endorsements and sureties, of R$ 89.7 billion, a 7.9% increase as compared to December 31, 2010. This growth is the result of the expansion strategy in the segment and the economic upturn noted in this period.

· Itaú BBA continued with its strategy of expanding the relationship with its clients by offering a full and diversified range of credit facilities, particularly Non-Mandatory Loans in Foreign Currency and Real Estate Loans. Noteworthy is the performance of the Non-Mandatory Loans in Foreign Currency that posted a 12.6% growth as compared to December 2010, favored by the competitiveness of foreign prices.  In the Real Estate Loans area, there was a large increase in the financing portfolio for development companies, in the Entrepreneur Plan modality. This modality grew 10.3% as compared to December 2010.

· Itaú Unibanco and BNDES (Brazilian Social and Economic Development Bank) entered into a master agreement (agreement that standardizes subsequent operations) that expands the partnership to stimulate Brazilian exports to Latin America.  As from July, clients of Banco Itaú Chile have access to a credit line based on the rules of Exim Post Shipment (BNDES Exim Automático) to finance sales abroad of capital goods manufactured in Brazil. The initiative started in Argentina, which started having access to this line in August 2010. The intention is to expand credit to all countries of the region where Itaú operates. In addition to Argentina and Chile, Paraguay and Uruguay are also included. The institution is the first one to have this type of master agreement in the Chilean market.

Itaú Unibanco, the leader in the consumer credit segment in Brazil, by means of Itaucard, Hipercard, and partnerships, offers a wide range of products to accountholders and non-accountholder clients, originated in proprietary channels and through partnerships with companies that have outstanding performance in the markets they are engaged. In the months from January through June 2011, the transacted amount reached R$ 72.1 billion, a 20.1% increase in relation to the period from January to June 2010.

Total default rate, considering the balance of transactions overdue for over 90 days, reached 4.5% in June 2011, posting a slight decline of 0.3% as compared to December 2010. The default rate of the portfolio of credit to individuals reached 5.8% in the half, keeping the same level of the end of 2010. The default rate of the portfolio of credit to companies reached 3.5% at the end of June 2011, posting a 0.6% increase as compared to December 31, 2010.

Free, raised and managed assets totaled R$ 1.1 trillion at June 30, 2011, an increase of 5.8% as compared to December 31, 2010.

Basel ratio was 15.8% at the end of June, based on the financial system consolidated. In this first half, the bank performed new placements of subordinated debt, as follows: (i) US$ 250 million maturing in January 2021 and coupon of 5.75% p.a., supplementing the amount in effect of this debt by US$ 1,250 million, and (ii) US$ 500 million maturing in December 2021 and coupon of 6.20% p.a.

The market value at Stock Exchanges of Itaú Unibanco, calculated considering the average quotation of preferred shares outstanding at the last trading session of the period, reached R$ 164.9 billion at the end of the first half of 2011. According to the company Bloomberg, Itaú Unibanco ranked tenth among banks in the world in this period, having market value as parameter.

The insurance, pension plan and capitalization operations revenue from premium, pension contributions and capitalization certificates reached R$ 9.0 billion in the first half of 2011, and technical provisions for insurance, pension plan and capitalization totaled R$ 65.5 billion at the end of June 2011. The Individual Life and Extended Guarantee products are outstanding in the individuals segment, whereas Group Life and Corporate Solutions are noteworthy in the corporate segment.

In the Investment Banking area – Fixed Income, Itaú BBA took part in operations of debentures, promissory notes and securitization that totaled R$ 6.8 billion in the first half of 2011. In the Brazilian Financial and Capital Markets Association (ANBIMA) ranking, Itaú BBA continued in the first position regarding distribution of fixed income with a market share of 43.1%. In international issues of fixed income, Itaú BBA acted as the joint bookrunner of offers, with a total volume of US$ 13.1 billion, reaching the second place in the ranking of issues by Brazilian companies by May, according to the last ANBIMA ranking available for foreign market.

In variable income, Itaú BBA coordinated 12 out of the 14 public offerings, which totaled R$ 10.1 billion, which accounted for 86% of total transactions and 93% of the financial volume issued, consolidating the first position in this market for the half. It also provided financial advisory to 11 merger and acquisitions operations and closed the half ranked second in the Thomson Reuters ranking for number of transactions, thus accumulating a total volume of transactions of R$ 8.1 billion in the first half of 2011.

In the first half of 2011, Itaú Corretora intermediated at BM&Bovespa a volume of R$ 105.8 billion with individual, institutional investors, corporate and foreign customers, with a 6.7% market share.

People

Itaú Unibanco employed approximately 108 thousand people at the end of June 2011, including approximately 6 thousand employees in foreign units. Aiming at promoting the recognition of its professionals, Itaú Unibanco reallocated internally 5,866 employees in the first half of 2011.
 

The employee’s fixed compensation plus charges and benefits totaled R$ 6.6 billion in the first half. Welfare benefits granted to employees and their dependants totaled R$ 762.2 million. Additionally, over R$ 117.0 million were invested in training programs during the period.

Itaú Unibanco was chosen for the fifth time as one of the 10 companies most wanted by young university and recently graduated students.  The "Empresa dos Sonhos dos Jovens" (dream companies to work by youngsters) award was created by Cia. de Talentos, a consulting firm specialized in interns and trainees programs in Brazil and Latin America. This year, Itaú achieved its best position – the 6th in the ranking - climbing one position in relation to 2009 and 2010, being the only financial institution among the 10 companies.

Sustainability

The Tatuapé Administrative Center was awarded the ISO 14001 certification, and international standardization for environmental management that establishes specific requirements for management of environmental impacts and people’s safety. The certification is one step ahead in constructing a bank which vision is to be the leader in sustainable performance and client satisfaction. The project for implementation of ISO 14001 started in August 2010 and went through a number of phases, from the development of an Environmental Management System to the structuring of processes and documents to assure operational efficiency and minimize environmental impacts.

Itaú Unibanco raised the highest volume for a Latin American bank, which was passed on by the Inter American Investment Corporation (IIC), a member of the BID group focused on financing small and middle-market companies. Thus, US$ 280 million came to Brazil through IIC, a financial institution that grants sustainable credit and which purpose is the financing of small and middle-market companies that adopt good business practices and have social and environmental responsibility.

Social and Cultural Investments

Itaú Unibanco’s social and cultural investments reached the approximate amount of R$ 90.2 million in the first half of 2011, and noteworthy were the investments in education and culture that reached the amount of R$ 64.4 million.

Fundação Itaú Social was the only Brazilian institution invited to take part in the Innovation Fair of the annual meeting of the UN Economic and Social Council held in Geneva, from July 4 to 7, attended by 600 participants from all over the world. Education – the topic chosen for this year - stimulated the discussion of experiences that can sustain and speed up the fulfillment of the Millennium Development Goals and the Education For All agenda, commitments assumed by the UN. The Foundation presented the “Olimpíada de Língua Portuguesa Escrevendo o Futuro” (Portuguese language olympiad - writing the future) program and Itaú Unicef Award to the UN general secretary, Ban Ki-moon.

In the first half of 2011, the results of the first validation cycle of the three-year program “Jovem de Futuro” (youth with a future), implemented by Instituto Unibanco in public high schools, in the cities of Porto Alegre (RS) and Belo Horizonte (MG), were disclosed. The schools in Porto Alegre achieved the project goal in two courses – increasing by 25 points the performance average of third-year students in 2010 as compared to 2008. The schools in Belo Horizonte had a major progress.  In June, all schools that took part in the “Jovem do Futuro” program in São Paulo, Vale do Paraíba and Porto Alegre mobilized parents, students and teachers for the “SuperAção na Escola” (super action at school) competition.  Each school organized activities, such as cleaning classrooms, painting courts, gardening, and donating books, with the involvement of the local community.

Itaú Cultural was visited by over 91 thousand people and the Institute’s website registered 6.3 million hits in the first half of 2011. In February, the “Rumos Itaú Cultural” (directions) program issued the 2011 call notices for the following categories: Visual Arts, Education, Culture and Arts, and Cultural Journalism. The “Artes Visuais, Arte e Tecnologia, Teatro e Literatura” (visual arts, arts and technology, theater and literature) encyclopedias recorded a total of 4.3 million hits. The first large annual exhibit, Leonilson - Sob o Peso dos Meus Amores (under the weight of my love), was visited by 57 thousand people. Additionally, there were 150 national and international events, such as the exhibition Brasiliana Fauna Y Flora, held in Chile from April to May. The institute’s brochures, DVDs and magazines were launched, and 11,736 units were distributed free of charge to researchers, and cultural and educational institutions all over Brazil.

Coleção Brasiliana Itaú (Itaú Brasiliana collection) was visited by over 164 thousand people in São Paulo, Belo Horizonte, Rio de Janeiro and Fortaleza, and the exhibit with about 300 items including paintings, water color paints, drawings, pictures, maps and books on the History of Brazil is being shown since July 13 in Brasília, in the National Museum of Conjunto Cultural da República.

Awards and Recognition

Major awards and recognitions granted to Itaú Unibanco Holding S.A. in the first half of 2011:

· The World’s Most Sustainable Bank in the 2011 FT/IFC Sustainable Finance Awards, granted by the British newspaper Financial Times and by IFC (International Finance Corporation), the financial division of the World Bank;

· Best Regional Bank (Latin America) and Best Country Bank (Brazil), by Euromoney magazine. Elected for the fourth time as the main Latin American bank and for the 13th time as the best bank in the Brazilian market. In other editions of the award, the bank has already been acknowledged in the categories Private Banking (Brazil and Americas), Award of Excellence (Brazil), Best Managed LATAM Company and Best Cash Management (Brazil and South America);

· Banker of the Year (Roberto Setubal), by Euromoney Awards for Excellence, granted by Euromoney magazine, one of the world’s most important publications in the financial sector. This is the first time that the Chief Executive Officer of an institution from the emerging market receives the award;

· Best FX in Brazil in the Best Foreign Exchange Banks 2011 award, by Global Finance.

· The Most Admired HRs in Brazil – in 2010, Itaú was also selected to make up the list of the 20 companies most admired for their HRs.

Independent Auditors – CVM Instruction No. 381

Procedures adopted by the Company

The policy adopted by Itaú Unibanco Holding S.A., its subsidiaries and parent company, to engage non-audit related services from our independent auditors is based on the applicable regulations and internationally accepted principles that preserve the auditor’s independence. These principles include the following: (a) an auditor cannot audit his or her own work, (b) an auditor cannot function in the role of management in companies where he or she provides external audit services; and (c) an auditor cannot promote the interests of its client.

During the period from January to June 2011, the independent auditors and related parties did not provide non-audit related services in excess of 5% of total external audit fees.

According to CVM Instruction No. 381, we list below the engaged services and related dates:

· February 2, 2011 – Service agreement related to the analysis of the accounting recording process by the Treasury flow desk of the Itaú Unibanco Financial Group  - Itaú Unibanco Holding S.A – Brazil;

· February 10, 2011 – Service agreement for the limited assurance of the data of the inventory of greenhouse gas emission – Itaú Unibanco Holding S.A. – Brazil;

· March 17, 2011 – Advisory service agreement related to tax effects generated in Banco Itaú Chile – Banco Itaú Chile S.A - Chile;

· March 28, 2011 – Attendance in the training in the QI/FATCA course - Module 3 Critical Customer Groups – Banco Itaú Europa  Luxembourg S.A. -  Luxembourg;

· April 5, 2011 – Professional service agreement related to the improvement of knowledge of our internal audits in the practices and recommendations for the performance of the internal audit activity (THE IIA The Institute of Internal Audit) – Redecard S.A. – Brazil;

· April 14, 2011 – Service agreement for analysis and presentation of alternatives for certain aspects related to the infrastructure project investment system in Uruguay, based on the best international practices – Unión Capital AFAP S.A – Uruguay;

· May 18, 2011 – Advisory service agreement for the International Asset Management project to obtain the GIPS (Global Investment Performance Standards) certification for investment funds - Itaú USA Asset Management Inc. – United States of America;

· June 9, 2011 – Licenses for using an electronic library of international accounting standards (Comperio) – Itaú Unibanco S.A. – Brazil and Banco Itaú Europa International – United States of America.

Summary of the Independent Auditors’ justification - PricewaterhouseCoopers

The provision of the above described non-audit related professional services do not affect the independence or the objectivity of the external audit of Itaú Unibanco, parent and its subsidiary/affiliated companies. The policy adopted for providing non-audit related services to Itaú Unibanco is based on principles that preserve the independence of Independent Auditors, all of which were considered in the provision of the referred services.

Circular No. 3,068/01 - BACEN

Itaú Unibanco hereby represents to have the financial capacity and the intention to hold to maturity securities classified under the line “held-to-maturity securities” in the balance sheet, in the amount of R$ 3.1 billion, corresponding to only 1.7% of total securities held.

ACKNOWLEDGEMENTS

We thank our employees for their determination and skills which have been essential to reaching consistent and differentiated results, and our stockholders and clients for their trust.

 (Approved at the Board of Directors' Meeting of August 1, 2011).

ITAÚ UNIBANCO HOLDING S.A.

BOARD OF DIRECTORS	EXECUTIVE BOARD
Chairman	Chief Executive Officer
PEDRO MOREIRA SALLES	ROBERTO EGYDIO SETUBAL
Vice-Chairmen	Executive Vice-Presidents
ALFREDO EGYDIO ARRUDA VILLELA FILHO	ALFREDO EGYDIO SETUBAL (*)
ROBERTO EGYDIO SETUBAL	CANDIDO BOTELHO BRACHER
Members	Executive Directors
ALCIDES LOPES TÁPIAS	CAIO IBRAHIM DAVID
ALFREDO EGYDIO SETUBAL	CLAUDIA POLITANSKI
CANDIDO BOTELHO BRACHER	MARCOS DE BARROS LISBOA
FERNANDO ROBERTO MOREIRA SALLES	RICARDO BALDIN
FRANCISCO EDUARDO DE ALMEIDA PINTO	SÉRGIO RIBEIRO DA COSTA WERLANG
GUSTAVO JORGE LABOISSIÈRE LOYOLA
HENRI PENCHAS
ISRAEL VAINBOIM
PEDRO LUIZ BODIN DE MORAES	Directors
RICARDO VILLELA MARINO	CARLOS EDUARDO DE SOUZA LARA
	EDUARDO HIROYUKI MIYAKI
	JACKSON RICARDO GOMES
AUDIT COMMITTEE	MARCO ANTONIO ANTUNES
President	ROGÉRIO PAULO CALDERÓN PERES
GUSTAVO JORGE LABOISSIÈRE LOYOLA
Members
ALKIMAR RIBEIRO MOURA	(*) Investor Relations Officer
EDUARDO AUGUSTO DE ALMEIDA GUIMARÃES
GUY ALMEIDA ANDRADE
FISCAL COUNCIL
President
IRAN SIQUEIRA LIMA
Members
ALBERTO SOZIN FURUGUEM	Accountant
ARTEMIO BERTHOLINI	CARLOS ANDRÉ HERMESINDO DA SILVA
	CRC - 1SP281528/O-1

ITAÚ UNIBANCO S.A.

Chief Executive Officer and General Manager	Directors (continued)
ROBERTO EGYDIO SETUBAL	FERNANDO DELLA TORRE CHAGAS
	FERNANDO JOSÉ COSTA TELES
Executive Vice-Presidents	GILBERTO TRAZZI CANTERAS
ALEXANDRE DE BARROS	HENRIQUE PINTO ECHENIQUE (****)
ALFREDO EGYDIO SETUBAL	HENRIQUE RUTHER
JOSÉ CASTRO ARAÚJO RUDGE	IBRAHIM JOSÉ JAMOUR (*)
JOSÉ ROBERTO HAYM	JACKSON RICARDO GOMES
LUÍS OTAVIO MATIAS	JASON PETER CRAUFORD
MÁRCIO DE ANDRADE SCHETTINI	JEAN MARTIN SIGRIST JÚNIOR
MARCO AMBROGIO CRESPI BONOMI	JOÃO ANTONIO DANTAS BEZERRA LEITE
MARCOS DE BARROS LISBOA	JOÃO LUIZ DE MEDEIROS
RICARDO VILLELA MARINO	JORGE LUIZ VIEGAS RAMALHO
SÉRGIO RIBEIRO DA COSTA WERLANG	JOSÉ VIRGILIO VITA NETO (*)
	LEILA CRISTIANE BARBOZA BRAGA DE MELO
Executive Directors	LINDA AGARINAKAMURA
CAIO IBRAHIM DAVID	LUÍS EDUARDO GROSS SIQUEIRA CUNHA
CARLOS EDUARDO MONICO	LUIS TADEU MANTOVANI SASSI
CELSO SCARAMUZZA	LUIZ ANTONIO NOGUEIRA DE FRANÇA
CLAUDIA POLITANSKI	LUIZ EDUARDO LOUREIRO VELOSO
DEMOSTHENES MADUREIRA DE PINHO NETO	LUIZ FERNANDO OLIVEIRA BARRICHELO
FERNANDO MARSELLA CHACON RUIZ	LUIZ SEVERIANO RIBEIRO (*)
LUIS ANTONIO RODRIGUES	MARCELO BOOCK
NATALÍSIO DE ALMEIDA JÚNIOR	MARCELO LUIS ORTICELLI
OSVALDO DO NASCIMENTO	MARCO ANTONIO ANTUNES
	MARCO ANTONIO SUDANO
Directors	MARCOS ANTÔNIO VAZ DE MAGALHÃES
ADRIANO BRITO DA COSTA LIMA	MARCOS AUGUSTO CAETANO DA SILVA FILHO
ALBERTO FERNANDES (*)	MARCOS SILVA MASSUKADO
ANA CARLA ABRÃO COSTA (*)	MARCOS VANDERLEI BELINI FERREIRA
ANDRÉ SAPOZNIK	MARIO LUIZ AMABILE
ANDRÉA MATTEUCCI PINOTTI CORDEIRO	MAURO MORELLI
ANTONIO CARLOS AZZI JÚNIOR	NATACHA LITVINOV (*)
ANTONIO CARLOS RICHECKI RIBEIRO	OSMAR MARCHINI
ARNALDO PEREIRA PINTO	OSVALDO JOSÉ DAL FABBRO
AURÉLIO JOSÉ DA SILVA PORTELLA	PAULO EIKIEVICIUS CORCHAKI
CARLOS AUGUSTO DE OLIVEIRA	PAULO MEIRELLES DE OLIVEIRA SANTOS
CARLOS EDUARDO DE CASTRO	RENATA HELENA DE OLIVEIRA TUBINI
CARLOS EDUARDO DE SOUZA LARA	RENÊ MARCELO GONÇALVES
CARLOS EDUARDO MACCARIELLO	RICARDO LIMA SOARES
CARLOS EDUARDO PEREIRA TEIXEIRA (*)	RICARDO ORLANDO
CARLOS HENRIQUE DONEGÁ AIDAR	RICARDO RIBEIRO MANDACARU GUERRA
CARLOS ORESTES VANZO (*)	RICARDO URQUIJO LAZCANO (**)
CESAR PADOVAN	ROBERTO FERNANDO VICENTE (*)
CÍCERO MARCUS DE ARAÚJO	ROBERTO MASSARU NISHIKAWA
CLÁUDIO CESAR SANCHES	RODOLFO HENRIQUE FISCHER
CLAUDIO JOSÉ COUTINHO ARROMATTE	ROGERIO CARVALHO BRAGA
COSMO FALCO	ROGÉRIO PAULO CALDERÓN PERES
CRISTIANE MAGALHÃES TEIXEIRA PORTELLA	ROMILDO GONÇALVES VALENTE
CRISTINA CESTARI SPADA	ROONEY SILVA
DANIEL LUIZ GLEIZER	SERGIO GUILLINET FAJERMAN
EDILSON PEREIRA JARDIM (***)	SERGIO SOUZA FERNANDES JÚNIOR
EDUARDO ALMEIDA PRADO	VILMAR LIMA CARREIRO
EDUARDO HIROYUKI MIYAKI	WAGNER BETTINI SANCHES (*)
ERNESTO ANTUNES DE CARVALHO
FABIO DI PACE MENEZES (*)

(*) Elected on 04/29/2011 - Awaiting BACEN approval

(**) Elected on 05/23/2011 - Awaiting BACEN approval

(***) Elected on 06/20/2011 - Awaiting BACEN approval

(****) Elected on 07/01/2011 - Awaiting BACEN approval

BANCO ITAÚ BBA S.A.

BOARD OF DIRECTORS	Directors
	ADRIANO LIMA BORGES
Chairman	ALBERTO ZOFFMANN DO ESPÍRITO SANTO
ROBERTO EGYDIO SETUBAL	ALEXANDRE ENRICO SILVA FIGLIOLINO
	ÁLVARO DE ALVARENGA FREIRE PIMENTEL
Vice-Chairmen	ANDRÉ CARVALHO WHYTE GAILEY
FERNÃO CARLOS BOTELHO BRACHER	ANDRÉ FERRARI
PEDRO MOREIRA SALLES	ANTONIO JOSÉ CALHEIROS RIBEIRO FERREIRA
	ANTONIO SANCHEZ JUNIOR
Members	EDUARDO CARDOSO ARMONIA
ALFREDO EGYDIO SETUBAL	EDUARDO CORSETTI
ANTONIO CARLOS BARBOSA DE OLIVEIRA	EMERSON SAVI JUNQUEIRA
CANDIDO BOTELHO BRACHER	FABIO MASSASHI OKUMURA
EDUARDO MAZZILLI DE VASSIMON	FERNANDO HENRIQUE MEIRA DE CASTRO
HENRI PENCHAS	FLAVIO DELFINO JUNIOR
JOÃO DIONÍSIO FILGUEIRA BARRETO AMOÊDO	GILBERTO FRUSSA
SÉRGIO RIBEIRO DA COSTA WERLANG	GUILHERME DE ALENCAR AMADO
	GUSTAVO HENRIQUE PENHA TAVARES
EXECUTIVE BOARD	HENRIQUE RUTHER
Chief Executive Officer	ILAN GOLDFAJN
CANDIDO BOTELHO BRACHER	JOÃO CARLOS DE GÊNOVA
	JOÃO MARCOS PEQUENO DE BIASE
Managing Vice-Presidents	JORGE BEDRAN JETTAR
ALBERTO FERNANDES	JOSÉ AUGUSTO DURAND
DANIEL LUIZ GLEIZER	JOSÉ IRINEU NUNES BRAGA
JEAN-MARC ROBERT NOGUEIRA BAPTISTA ETLIN	LILIAN SALA PULZATTO KIEFER
RODOLFO HENRIQUE FISCHER	MARCELLO PECCININI DE CHIARO
	MARCELO ARIEL ROSENHEK
Executive Directors	MARCELO DA COSTA LOURENÇO
ALEXANDRE JADALLAH AOUDE	MARCO ANTONIO SUDANO
ANDRÉ LUÍS TEIXEIRA RODRIGUES	MARCOS AUGUSTO CAETANO DA SILVA FILHO
ELAINE CRISTINA ZANATTA RODRIGUES VASQUINHO	MARIO ANTONIO BERTONCINI
FERNANDO FONTES IUNES	MÁRIO LÚCIO GURGEL PIRES
MILTON MALUHY FILHO	MÁRIO LUÍS BRUGNETTI
	PAULO DE PAULA ABREU
	PAULO ROBERTO SCHIAVON DE ANDRADE
	RODERICK SINCLAIR GREENLEES

BANCO ITAUCRED FINANCIAMENTOS S.A.	ITAÚ  SEGUROS S.A.
Chief Executive Officer	Chief Executive Officer
LUÍS OTÁVIO MATIAS	ROBERTO EGYDIO SETUBAL
Executive Vice-President	Superintendent Director
MÁRCIO DE ANDRADE SCHETTINI	MARCOS DE BARROS LISBOA
Directors	Executive Directors
	ANDRÉ HORTA RUTOWITSCH
CARLOS EDUARDO DE SOUZA LARA	ANTONIO EDUARDO MÁRQUEZ DE FIGUEIREDO TRINDADE
CLÁUDIO JOSÉ COUTINHO ARROMATTE	JOSÉ CASTRO ARAÚJO RUDGE
EVANIR COUTINHO USSIER
FÁBIO MASSASHI OKUMURA	Managing Directors
FERNANDO JOSÉ COSTA TELES	LUIZ FERNANDO BUTORI REIS SANTOS
FLÁVIO KITAHARA SOUSA	MARCO ANTONIO ANTUNES
JACKSON RICARDO GOMES	NORBERTO GIL FERREIRA CAMARGO
JASON PETER CRAUFORD
LUÍS FERNANDO STAUB
LUIZ OTAVIO PINHO DO AMARAL
MARCO ANTONIO ANTUNES
MARCOS ANTÔNIO VAZ DE MAGALHÃES
MARCOS VANDERLEI BELINI FERREIRA

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

ASSETS	NOTE	06/30/2011			06/30/2010
CURRENT ASSETS			593,858,585			489,649,501
CASH AND CASH EQUIVALENTS			15,185,816			12,130,949
INTERBANK INVESTMENTS	4b and 6		97,992,589			115,001,100
Money market			80,082,541			98,319,017
Money market – Assets Guaranteeing Technical Provisions - SUSEP	11b		3,018,248			3,431,152
Interbank deposits			14,891,800			13,250,931
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		149,272,899			103,679,277
Own portfolio			33,247,887			27,441,512
Subject to repurchase commitments			37,384,358			14,237,803
Pledged in guarantee			5,452,745			6,005,425
Securities under resale agreements with free movement.			4,155,787			-
Deposited with the Central Bank			2,171,856			3,048,874
Derivative financial instruments			6,753,124			4,532,167
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas	11b		51,123,685			41,190,644
Assets guaranteeing technical provisions – other securities	11b		8,983,457			7,222,852
INTERBANK ACCOUNTS			95,554,586			61,617,219
Pending settlement			3,662,129			3,544,512
Central Bank deposits			91,838,986			57,983,140
National Housing System (SFH)			1,386			9,525
Correspondents			52,085			80,042
INTERBRANCH ACCOUNTS			59,469			42,988
LOAN, LEASE AND OTHER CREDIT OPERATIONS	8		168,613,770			144,344,597
Operations with credit granting characteristics	4e		182,805,437			157,273,001
(Allowance for loan losses)	4f		(14,191,667	)		(12,928,404	)
OTHER RECEIVABLES			65,167,881			50,076,002
Foreign exchange portfolio	9		23,584,207			17,787,960
Income receivable			1,120,697			791,580
Transactions with credit card issuers	4e		13,964,728			8,984,815
Receivables from insurance and reinsurance operations	4nI and 11b		3,502,312			3,279,776
Negotiation and intermediation of securities			2,830,083			1,972,426
Sundry	13a		20,165,854			17,259,445
OTHER ASSETS	4g		2,011,575			2,757,369
Assets held for sale			126,392			280,541
(Valuation allowance)			(57,144	)		(86,244	)
Unearned premiums of reinsurance	4nI		512,059			574,551
Prepaid expenses	4g and 13b		1,430,268			1,988,521
LONG-TERM RECEIVABLES			187,694,704			147,332,331
INTERBANK INVESTMENTS	4b and 6		452,721			481,504
Money market			7,837			49,233
Money market – Assets Guaranteeing Technical Provisions - SUSEP	11b		56,886			-
Interbank deposits			387,998			432,271
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		31,460,046			23,100,715
Own portfolio			22,160,677			13,355,125
Subject to repurchase commitments			3,896,090			3,986,284
Pledged in guarantee			1,733,712			1,840,355
Deposited with the Central Bank			-			553,172
Derivative financial instruments			3,669,567			3,365,779
INTERBANK ACCOUNTS - National Housing System (SFH)			630,767			543,896
LOAN, LEASE AND OTHER CREDIT OPERATIONS	8		124,575,264			94,689,358
Operations with credit granting characteristics	4e		134,158,172			104,383,530
(Allowance for loan losses)	4f		(9,582,908	)		(9,694,172	)
OTHER RECEIVABLES			29,075,511			27,259,124
Foreign exchange portfolio	9		1,285,289			449,775
Sundry	13a		27,790,222			26,809,349
OTHER ASSETS – Prepaid expenses	4g and 13b		1,500,395			1,257,734
PERMANENT ASSETS			10,947,101			10,503,339
INVESTMENTS	4h and 15a Il		2,974,371			3,258,955
Investments in affiliates			1,858,411			2,155,891
Other investments			1,301,373			1,277,190
(Allowance for loan losses)			(185,413	)		(174,126	)
REAL ESTATE IN USE	4i and 15b		4,781,365			4,215,845
Real estate in use			3,250,273			3,254,496
Other fixed assets			8,224,260			7,178,791
(Accumulated depreciation)			(6,693,168	)		(6,217,442	)
OPERATING LEASE ASSETS	4j		-			4,969
Leased assets			-			18,553
(Accumulated depreciation)			-			(13,584	)
GOODWILL	4k and 15b		67,617			24,288
INTANGIBLE ASSETS	4l and 15b		3,123,748			2,999,282
Acquisition of rights to credit payroll			2,388,708			2,440,325
Other intangible assets			2,986,021			2,294,412
(Accumulated amortization)			(2,250,981	)		(1,735,455	)
TOTAL ASSETS			792,500,390			647,485,171

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

LIABILITIES	NOTE	06/30/2011			06/30/2010
CURRENT LIABILITIES			420,719,899			332,269,240
DEPOSITS	4b and 10b		146,885,096			124,121,006
Demand deposits			24,463,040			25,286,290
Savings deposits			60,008,457			51,851,801
Interbank deposits			2,478,203			2,140,422
Time deposits			59,935,396			43,724,906
Other deposits			-			1,117,587
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS	4b and 10c		109,051,417			92,126,231
Own portfolio			66,678,601			48,645,421
Third-party portfolio			37,625,123			42,292,329
Free portfolio			4,747,693			1,188,481
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES	4b and 10d		17,297,060			11,333,012
Real estate, mortgage, credit and similar notes			11,415,215			9,432,382
Debentures			28,764			508,233
Foreign borrowings through securities			5,853,081			1,392,397
INTERBANK ACCOUNTS			4,362,618			4,362,011
Pending settlement			3,349,747			3,212,224
Correspondents			1,012,871			1,149,787
INTERBRANCH ACCOUNTS			4,156,136			2,765,334
Third-party funds in transit			4,142,518			2,739,713
Internal transfer of funds			13,618			25,621
BORROWINGS AND ONLENDING	4b and 10e		26,726,437			16,003,962
Borrowings			16,140,001			9,587,682
Onlending			10,586,436			6,416,280
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		4,293,789			4,086,702
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION	4n II and 11a		8,829,007			8,580,742
OTHER LIABILITIES			99,118,339			68,890,240
Collection and payment of taxes and contributions			9,385,463			3,738,066
Foreign exchange portfolio	9		24,176,802			18,341,791
Social and statutory	16b II		2,750,679			3,381,371
Tax and social security contributions	4o, 4p and 14c		6,597,730			7,223,978
Negotiation and intermediation of securities			3,422,761			2,864,919
Credit card operations	4e		32,120,531			24,158,864
Subordinated debt	10f		9,150,889			63,731
Sundry	13c		11,513,484			9,117,520
LONG-TERM LIABILITIES			301,559,674			255,956,933
DEPOSITS	4b and 10b		62,029,119			65,549,653
Interbank deposits			323,987			131,141
Time deposits			61,705,132			65,418,512
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS	4b and 10c		88,812,400			65,152,934
Own portfolio			77,181,975			52,359,794
Third-party portfolio			-			164,309
Free portfolio			11,630,425			12,628,831
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES	4b and 10d		14,999,696			7,553,580
Real estate, mortgage, credit and similar notes			8,103,847			522,381
Debentures			1,012,948			2,122,630
Foreign borrowings through securities			5,882,901			4,908,569
BORROWINGS AND ONLENDING	4b and 10e		26,220,511			22,001,231
Borrowings			2,529,933			3,668,148
Onlending			23,690,578			18,333,083
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		2,593,652			2,762,457
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION	4n II and 11a		56,695,083			45,672,699
OTHER LIABILITIES			50,209,213			47,264,379
Foreign exchange portfolio	9		1,281,625			451,165
Tax and social security contributions	4o, 4p and 14c		12,688,013			12,415,008
Negotiation and intermediation of securities			-			605
Credit card operations			-			13,623
Subordinated debt	10f		28,059,604			28,191,548
Sundry	13c		8,179,971			6,192,430
DEFERRED INCOME	4q		828,714			585,533
MINORITY INTEREST IN SUBSIDIARIES	16e		3,309,307			3,599,504
STOCKHOLDERS’ EQUITY	16		66,082,796			55,073,961
Capital			45,000,000			45,000,000
Capital reserves			619,298			565,460
Revenue reserves			21,543,542			10,236,287
Asset valuation adjustment	4c, 4d and 7d		(32,044	)		147,952
(Treasury shares)			(1,048,000	)		(875,738	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			792,500,390			647,485,171

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Income (Note 2a)

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
INCOME FROM FINANCIAL OPERATIONS			45,809,941			36,927,166
Loan, lease and other credit operations			27,955,714			24,686,973
Securities and derivative financial instruments			10,694,696			8,339,662
Financial income from insurance, pension plan and capitalization operations	11c		2,595,447			1,678,168
Foreign exchange operations			117,777			955,114
Compulsory deposits			4,446,307			1,267,249
EXPENSES OF FINANCIAL OPERATIONS			(21,494,173	)		(16,258,420	)
Money market			(18,623,205	)		(13,839,491	)
Financial expenses on technical provisions for pension plan and capitalization	11c		(2,314,834	)		(1,490,851	)
Borrowings and onlending			(556,134	)		(928,078	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES			24,315,768			20,668,746
RESULT OF ALLOWANCE FOR LOAN LOSSES	8d I		(6,887,565	)		(5,979,903	)
Expenses for allowance for loan losses			(9,487,170	)		(7,764,528	)
Income from recovery of credits written off as loss			2,599,605			1,784,625
GROSS INCOME FROM FINANCIAL OPERATIONS			17,428,203			14,688,843
OTHER OPERATING REVENUES (EXPENSES)			(7,386,471	)		(5,723,123	)
Banking service fees	13d		7,528,702			6,691,337
Asset management			1,274,773			1,195,141
Current account services			332,429			268,691
Credit cards			3,495,937			3,067,133
Sureties and credits granted			835,835			699,318
Receipt services			630,931			639,361
Other			958,797			821,693
Income from bank charges	13e		1,610,994			1,536,669
Result from insurance, pension plan and capitalization operations	11c		1,214,338			1,111,944
Personnel expenses	13f		(6,578,061	)		(5,896,300	)
Other administrative expenses	13g		(6,682,373	)		(6,119,916	)
Tax expenses	4p and 14a II		(2,159,626	)		(1,916,907	)
Equity in earnings of affiliates and other investments	15a lll		(43,069	)		196,447
Other operating revenues	13h		222,777			656,258
Other operating expenses	13i		(2,500,153	)		(1,982,655	)
OPERATING INCOME			10,041,732			8,965,720
NON-OPERATING INCOME			127,492			19,541
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING			10,169,224			8,985,261
INCOME TAX AND SOCIAL CONTRIBUTION	4p and 14a I		(2,541,931	)		(2,016,279	)
Due on operations for the period			(3,878,915	)		(2,838,226	)
Related to temporary differences			1,336,984			821,947
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976			(106,524	)		(116,005	)
MINORITY INTEREST IN SUBSIDIARIES	16e		(388,261	)		(453,835	)
NET INCOME			7,132,508			6,399,142
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES			4,543,679,632			4,531,690,313
NET INCOME PER SHARE – R$			1.57			1.41
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 06/30)			14.57			12.15
EXCLUSION OF NONRECURRING EFFECTS	2a and 22k		(177,819	)		66,488
NET INCOME WITHOUT NONRECURRING EFFECTS			6,954,689			6,465,630
NET INCOME PER SHARE – R$			1.53			1.43

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Cash Flows

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
ADJUSTED NET INCOME			20,533,583			16,602,669
Net income			7,132,508			6,399,142
Adjustments to net income:			13,401,075			10,203,527
Granted options recognized			80,112			56,134
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)			463,741			270,731
Effects of changes in exchange rates on cash and cash equivalents			227,963			77,762
Allowance for loan losses			9,487,170			7,764,528
Results from operations with subordinated debt			1,556,948			1,308,434
Financial expenses on technical provisions for pension plan and capitalization			2,314,834			1,490,851
Depreciation and amortization	15b		1,067,762			1,035,275
Adjustment to legal liabilities – tax and social security			340,121			(8,777	)
Adjustment to provision for contingent liabilities			54,552			815,962
Deferred taxes			(1,336,984	)		(821,947	)
Equity in earnings of affiliates and other investments	15a lll		43,069			(196,447	)
Income from available-for-sale securities			(852,769	)		(1,687,140	)
Income from held-to-maturity securities			(184,035	)		(236,195	)
(Income) loss from sale of investments			(198,420	)		(156,055	)
(Income) loss from sale of foreclosed assets			1,369			18,841
(Income) loss from sale of fixed assets			(51,614	)		2,790
(Gain) loss from rescission of operations of intangible assets			(802	)		(54,480	)
Minority interest			388,261			453,835
Other			(203	)		69,425
CHANGE IN ASSETS AND LIABILITIES			(32,744,206	)		(31,170,926	)
(Increase) decrease in interbank investments			(27,697,648	)		12,764,348
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)			2,442,177			(8,940,623	)
(Increase) decrease in compulsory deposits with the Central Bank of Brazil			(6,062,516	)		(44,114,386	)
(Increase) decrease in interbank and interbranch accounts (assets/liabilities)			1,191,916			533,645
(Increase) decrease in loan, lease and other credit operations			(29,660,640	)		(26,393,866	)
(Increase) decrease in other receivables and other assets			361,449			2,100,142
(Increase) decrease in foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)			719,412			734,910
(Decrease) increase in deposits			6,226,157			(1,045,371	)
(Decrease) increase in deposits received under securities repurchase agreements			(1,792,536	)		25,335,602
(Decrease) increase in funds for issuance of securities			6,705,038			1,594,316
(Decrease) increase in borrowings and onlending			5,608,983			3,369,380
(Decrease) increase in credit card operations (assets/liabilities)			(658,106	)		(363,817	)
(Decrease) increase in technical provision for insurance, pension plan and capitalization			3,208,188			1,617,803
(Decrease) increase in collection and payment of taxes and contributions			8,691,105			3,269,761
(Decrease) increase in other liabilities			78,124			(76,737	)
(Decrease) increase in deferred income			62,849			132,951
Payment of income tax and social contribution			(2,168,158	)		(1,688,984	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			(12,210,623	)		(14,568,257	)
Interest on capital / dividends received from affiliated companies			15,466			60,608
Funds received from sale of available-for-sale securities			21,521,238			9,866,693
Funds received from redemption of held-to-maturity securities			335,516			104,760
Disposal of assets not for own use			69,476			101,647
Disposal of investments			284,316			194,942
Sale of fixed assets			113,630			25,532
Termination of intangible asset agreements			5,623			122,834
Purchase of available-for-sale securities			(16,645,181	)		(6,161,247	)
Purchase of held-to-maturity securities			(123,000	)		(467,647	)
Purchase of investments			(10,868	)		(13,854	)
Purchase of fixed assets			(704,774	)		(696,258	)
Purchase of intangible assets			(732,543	)		(163,644	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES			4,128,899			2,974,366
Increase in subordinated debt			6,223,825			4,977,014
Decrease in subordinated debt			(4,400,151	)		(68,385	)
Change in minority interest			(591,698	)		(216,582	)
Granting of stock options			154,669			116,722
Purchase of treasury shares			(557,991	)		-
Dividends and interest on capital paid			(3,040,750	)		(2,871,179	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			(2,212,096	)		1,937,590
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(10,293,820	)		(9,656,301	)
Cash and cash equivalents at the beginning of the period			39,148,018			66,121,111
Effects of changes in exchange rates on cash and cash equivalents			(227,963	)		(77,762	)
Cash and cash equivalents at the end of the period	4a and 5		28,626,235			56,387,048

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Added Value

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
INCOME			49,626,679			40,963,012
Financial operations			45,809,941			36,927,166
Banking services			9,139,696			8,228,006
Result from insurance, pension plan and capitalization operations			1,214,338			1,111,944
Result of loan losses	8d		(6,887,565	)		(5,979,903	)
Other			350,269			675,799
EXPENSES			(23,994,326	)		(18,241,075	)
Financial operations			(21,494,173	)		(16,258,420	)
Other			(2,500,153	)		(1,982,655	)
INPUTS PURCHASED FROM THIRD PARTIES			(5,553,400	)		(5,066,931	)
Materials, energy and others	13g		(219,011	)		(187,570	)
Third-party services	13g		(1,525,930	)		(1,297,352	)
Other			(3,808,459	)		(3,582,009	)
Data processing and telecommunications	13g		(1,737,794	)		(1,461,137	)
Advertising, promotions and publication	13g		(436,949	)		(517,623	)
Installations			(573,641	)		(647,983	)
Transportation	13g		(282,752	)		(277,303	)
Security	13g		(240,169	)		(210,537	)
Travel expenses	13g		(86,492	)		(69,056	)
Other			(450,662	)		(398,370	)
GROSS ADDED VALUE			20,078,953			17,655,006
DEPRECIATION AND AMORTIZATION	13g		(682,146	)		(646,573	)
NET ADDED VALUE PRODUCED BY THE COMPANY			19,396,807			17,008,433
ADDED VALUE RECEIVED FROM TRANSFER	15a lll		(43,069	)		196,447
TOTAL ADDED VALUE TO BE DISTRIBUTED			19,353,738			17,204,880
DISTRIBUTION OF ADDED VALUE			19,353,738			17,204,880
Personnel			5,935,412			5,278,026
Compensation			4,746,383			4,111,949
Benefits			879,191			886,086
FGTS – government severance pay fund			309,838			279,991
Taxes, fees and contributions			5,450,730			4,667,465
Federal			5,094,363			4,373,392
State			980			1,185
Municipal			355,387			292,888
Return on third parties’ assets - Rent			446,827			406,412
Return on own assets			7,520,769			6,852,977
Dividends and Interest on capital			1,554,351			2,204,825
Retained earnings (loss) for the period			5,578,157			4,194,317
Minority interest in retained earnings			388,261			453,835

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Balance Sheet

(In thousands of Reais)

ASSETS	NOTE	06/30/2011			06/30/2010
CURRENT ASSETS			1,238,759			1,177,574
CASH AND CASH EQUIVALENTS			4,938			233
INTERBANK INVESTMENTS – Interbank deposits	4b and 6		22,341			154,682
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		6,147			32,053
Own portfolio			670			27,122
Pledged in guarantee			5,477			4,931
OTHER RECEIVABLES			1,199,118			981,624
Income receivable	15a I		425,266			170,702
Sundry	13a		773,852			810,922
OTHER ASSETS – Prepaid expenses	4g		6,215			8,982
LONG-TERM RECEIVABLES			30,851,238			12,360,262
INTERBANK INVESTMENTS – Interbank deposits	4b and 6		30,522,153			12,181,570
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		6,740			6,069
Own portfolio			14			13
Pledged in guarantee			6,726			6,056
OTHER RECEIVABLES - Sundry	13a		322,345			172,623
PERMANENT ASSETS			53,488,409			60,245,101
INVESTMENTS			53,488,132			60,244,779
Investments in subsidiaries	4h and 15a I		53,487,725			60,244,372
Other			407			407
REAL ESTATE IN USE	4i		277			322
TOTAL ASSETS			85,578,406			73,782,937
LIABILITIES
CURRENT LIABILITIES			1,679,198			2,033,859
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES	4b and 10d		5,542			-
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		-			2,143
OTHER LIABILITIES			1,673,656			2,031,716
Social and statutory	16b II		1,360,398			1,997,901
Tax and social security contributions	14c		102,243			809
Subordinated debt	10f		71,334			23,580
Sundry	13c		139,681			9,426
LONG-TERM LIABILITIES			9,413,050			5,365,177
DEPOSITS - Interbank deposits	4b and 10b		4,012,223			3,177,246
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES	4b and 10d		500,000			-
OTHER LIABILITIES			4,900,827			2,187,931
Tax and social security contributions	14c		636,664			397,554
Subordinated debt	10f		4,252,638			1,784,461
Sundry	13c		11,525			5,916
STOCKHOLDERS’ EQUITY	16		74,486,158			66,383,901
Capital			45,000,000			45,000,000
Capital reserves			619,298			565,460
Revenue reserves			29,946,904			21,546,227
Asset valuation adjustment	4c, 4d and 7d		(32,044	)		147,952
(Treasury shares)			(1,048,000	)		(875,738	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			85,578,406			73,782,937

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Income

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
INCOME FROM FINANCIAL OPERATIONS			1,005,165			433,089
Securities and derivative financial instruments			1,005,165			433,089
EXPENSES OF FINANCIAL OPERATIONS			(325,642	)		(126,897	)
Money market			(325,642	)		(126,897	)
GROSS INCOME FROM FINANCIAL OPERATIONS			679,523			306,192
OTHER OPERATING REVENUES (EXPENSES)			4,494,682			4,064,944
Personnel expenses			(92,716	)		(72,641	)
Other administrative expenses			(23,293	)		(28,542	)
Tax expenses	14a II		(131,241	)		(15,075	)
Equity in earnings of subsidiaries	15a I		4,754,970			4,222,122
Other operating revenues (expenses)			(13,038	)		(40,920	)
OPERATING INCOME			5,174,205			4,371,136
NON-OPERATING INCOME			9,116			7,120
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING			5,183,321			4,378,256
INCOME TAX AND SOCIAL CONTRIBUTION	4p		588,034			517,310
Due on operations for the period			4,413			(14,650	)
Related to temporary differences			583,621			531,960
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976			(1,730	)		(3,676	)
NET INCOME			5,769,625			4,891,890
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES			4,543,679,632			4,531,690,313
NET INCOME PER SHARE – R$			1.27			1.08
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 06/30)			16.43			14.64
EXCLUSION OF NONRECURRING EFFECTS	2a and 22k		(177,819	)		66,488
NET INCOME WITHOUT NONRECURRING EFFECTS			5,591,806			4,958,378
NET INCOME PER SHARE – R$			1.23			1.09

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Changes in Stockholders’ Equity (Note 16)

(In thousands of Reais)

	Capital		Capital reserves			Revenue reserves			Asset valuation adjustment (Note 7d)			Retained earnings			(Treasury shares)			Total
BALANCES AT 01/01/2010		45,000,000		640,759			18,771,151			120,031			-			(1,031,327	)		63,500,614
Granting of stock options – exercised options		-		(45,061	)		6,194			-			-			155,589			116,722
Granting of options recognized		-		(30,238	)		86,372			-			-			-			56,134
Change in adjustment to market value		-		-			(3,935	)		27,921			-			-			23,986
Addition to interest on capital and dividends paid on 03/01/2010 - Year 2009		-		-			(620	)		-			-			-			(620	)
Net income		-		-			-			-			4,891,890			-			4,891,890
Appropriations:																			-
Legal reserve		-		-			244,595			-			(244,595	)		-			-
Statutory reserves		-		-			2,442,470			-			(2,442,470	)		-			-
Dividends and Interest on capital		-		-			-			-			(2,204,825	)		-			(2,204,825	)
BALANCES AT 06/30/2010		45,000,000		565,460			21,546,227			147,952			-			(875,738	)		66,383,901
CHANGES IN THE PERIOD		-		(75,299	)		2,775,076			27,921			-			155,589			2,883,287
BALANCES AT 01/01/2011		45,000,000		594,734			25,661,505			17,128			-			(628,577	)		70,644,790
Granting of stock options – exercised options		-		(55,548	)		71,649			-			-			(419,423	)		(403,322	)
Purchase of treasury shares		-		-			-			-			-			(557,991	)		(557,991	)
Granting of stock options – exercised options		-		(55,548	)		71,649			-			-			138,568			154,669
Granting of options recognized		-		80,112			-			-			-			-			80,112
Change in adjustment to market value		-		-			-			(49,172	)		-			-			(49,172	)
Addition to interest on capital and paid on 03/17/2011 - Year 2010		-		-			(1,524	)		-			-			-			(1,524	)
Net income		-		-			-			-			5,769,625			-			5,769,625
Appropriations:																			-
Legal reserve		-		-			288,481			-			(288,481	)		-			-
Statutory reserves		-		-			3,926,793			-			(3,926,793	)		-			-
Dividends and Interest on capital		-		-			-			-			(1,554,351	)		-			(1,554,351	)
BALANCES AT 06/30/2011		45,000,000		619,298			29,946,904			(32,044	)		-			(1,048,000	)		74,486,158
CHANGES IN THE PERIOD		-		24,564			4,285,399			(49,172	)		-			(419,423	)		3,841,368

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Cash Flows

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
ADJUSTED NET INCOME (LOSS)			418,680			309,134
Net income			5,769,625			4,891,890
Adjustments to net income:			(5,350,945	)		(4,582,756	)
Granting of options recognized			80,112			56,134
Results from operations with subordinated debt			(122,123	)		89,625
Deferred taxes			(583,621	)		(531,960	)
Equity in earnings of subsidiaries	15a I		(4,754,970	)		(4,222,122	)
Amortization of goodwill			28,873			28,872
Effects of changes in exchange rates on cash and cash equivalents			734			(3,366	)
Other			50			61
CHANGE IN ASSETS AND LIABILITIES			580,252			359,946
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)			23,733			(8,785	)
(Increase) decrease in other receivables and other assets			222,595			348,915
Increase (decrease) in other liabilities			333,924			19,816
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			998,932			669,080
Interest on capital/Dividends received			12,999,560			3,473,530
(Increase) decrease in interbank investments			(16,345,311	)		(5,256,609	)
(Purchase) sale of investments			3,862,494			-
(Purchase) sale of fixed assets			(19	)		(27	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES			516,724			(1,783,106	)
Increase (decrease) in deposits			668,215			2,278,022
Increase in subordinated debt			1,170,825			1,718,416
Decrease in subordinated debt			(77,510	)		-
Granting of stock options			154,669			116,722
Purchase of treasury shares			(557,991	)		-
Dividends and interest on capital paid			(3,040,750	)		(2,871,179	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			(1,682,542	)		1,241,981
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(166,886	)		127,955
Cash and cash equivalents at the beginning of the period			194,899			23,594
Effects of changes in exchange rates on cash and cash equivalents			(734	)		3,366
Cash and cash equivalents at the end of the period	4a and 5		27,279			154,915

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Added Value

(In thousands of Reais)

	NOTE	01/01 to 06/30/2011			01/01 to 06/30/2010
INCOME			1,585,035			931,612
Financial operations			1,005,165			433,089
Other			579,870			498,523
EXPENSES			(325,642	)		(126,897	)
Financial operations			(325,642	)		(126,897	)
INPUTS PURCHASED FROM THIRD PARTIES			(23,052	)		(28,027	)
Third-party services			(10,052	)		(10,104	)
Advertising, promotions and publication			(228	)		(538	)
Expenses for financial system services			(2,956	)		(3,014	)
Insurance			(3,135	)		(2,949	)
Other			(6,681	)		(11,422	)
GROSS ADDED VALUE			1,236,341			776,688
DEPRECIATION AND AMORTIZATION			(47	)		(61	)
NET ADDED VALUE PRODUCED BY THE COMPANY			1,236,294			776,627
ADDED VALUE RECEIVED FROM TRANSFER	15a l		4,754,970			4,222,122
TOTAL ADDED VALUE TO BE DISTRIBUTED			5,991,264			4,998,749
DISTRIBUTION OF ADDED VALUE			5,991,264			4,998,749
Personnel			92,423			74,707
Compensation			90,443			72,466
Benefits			1,230			1,548
FGTS – government severance pay fund			750			693
Taxes, fees and contributions			129,022			31,698
Federal			128,998			31,637
Municipal			24			61
Return on third parties’ assets - Rent			194			454
Return on own assets			5,769,625			4,891,890
Dividends and Interest on capital			1,554,351			2,204,825
Retained earnings (loss) for the year			4,215,274			2,687,065

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

NOTES TO THE FINANCIAL STATEMENTS

FROM JANUARY 1 TO JUNE 30, 2011 AND 2010

(In thousands of Reais)

NOTE 1 - OPERATIONS

Itaú Unibanco Holding S.A. (ITAÚ UNIBANCO HOLDING) is a publicly-held company which, together with its subsidiary and affiliated companies, operates in Brazil and abroad, with all types of banking activities, through its commercial, investment, real estate loan, finance and investment credit, and lease portfolios, including foreign exchange operations, and other complementary activities, with emphasis on Insurance, Private Pension Plans, Capitalization, Securities Brokerage and Administration of Credit Cards, Consortia, Investment Funds and Managed Portfolios.

NOTE 2 – PRESENTATION OF THE FINANCIAL STATEMENTS

a) Presentation of the Financial Statements

The financial statements of ITAÚ UNIBANCO HOLDING and of its subsidiaries (ITAÚ UNIBANCO HOLDING CONSOLIDATED) have been prepared in accordance with accounting principles established by the Brazilian Corporate Law, including the amendments introduced by Laws No. 11,638, of December 28, 2007, and No. 11,941, of May 27, 2009, in conformity, when applicable, with instructions issued by the Central Bank of Brazil (BACEN), the National Monetary Council (CMN), the Brazilian Securities and Exchange Commission (CVM) and the Superintendency of Private Insurance (SUSEP), and National Council of Private Insurance (CNSP), which include the use of estimates necessary to calculate accounting provisions.

In order to enable the proper analysis of the net income, the heading “Net income without nonrecurring effects” is presented below the Consolidated Statement of Income, and this effect is highlighted in a heading called “Exclusion of nonrecurring effects” (Note 22k).

As set forth in the sole paragraph of article 7 of BACEN Circular No. 3,068, of November 8, 2001, securities classified as trading securities (Note 4c) are presented in the Balance Sheet under Current Assets regardless of their maturity dates.

Lease Operations are presented, at present value, in the Balance Sheet, and the related income and expenses, which represent the financial result of these operations, are presented, grouped together, under loan, lease and other credit operations in the Statement of Income. Advances on exchange contracts are reclassified from Other Liabilities – Foreign Exchange Portfolio. The foreign exchange result is presented on an adjusted basis, with the reclassification of expenses and income, in order to represent exclusively the impact of variations and differences of rates on the balance sheet accounts denominated in foreign currencies.

b) Consolidation

As set forth in paragraph 1, article 2, of BACEN Circular Letter No. 2,804, of February 11, 1998, the financial statements of ITAÚ UNIBANCO HOLDING comprise the consolidation of its foreign branches and subsidiaries.

Intercompany transactions and balances and results have been eliminated on consolidation. The investments held by consolidated companies in Exclusive Investment Funds are consolidated. The investments in these fund portfolios are classified by type of transaction and were distributed by type of security, in the same categories in which these securities had been originally allocated. The effects of the Foreign Exchange Variation on investments abroad are classified in the heading Securities and Derivative Financial Instruments in the Statement of Income.
 

The difference of Net Income and Stockholders’ Equity between ITAÚ UNIBANCO HOLDING and ITAÚ UNIBANCO HOLDING CONSOLIDATED (Note 16d) results from the adoption of different criteria for the amortization of goodwill originated on purchase of investments, net of the respective deferred tax assets.

In ITAÚ UNIBANCO HOLDING, the goodwill recorded in subsidiaries, mainly originated from the ITAÚ UNIBANCO merger, is being amortized based on the expected future profitability and appraisal reports or upon realization of the investment, according to the rules and guidance of CMN and BACEN.

In ITAÚ UNIBANCO HOLDING CONSOLIDATED this goodwill was fully amortized up to December 31, 2009 in the periods when the investments were made, in order to: a) permit better comparability with previous periods’ consolidated financial statements; and b) permit measuring Net Income and Stockholders’ Equity based on conservative criteria.

From January 1, 2010, the goodwill originated from the purchase of investments is no longer fully amortized in the consolidated financial statements, for purposes of compatibility of the current accounting practices with the international financial reporting standards (Note 4k).

In 2011, there was a change in the basis for consolidating certain companies, particularly for the Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento, with the change from full to partial consolidation, and Porto Seguro S.A., which is now stated under the equity method, including for comparative purposes.

The consolidated financial statements comprise ITAÚ UNIBANCO HOLDING and its direct and indirect subsidiaries, among which we highlight:

		Incorporation	Interest %
		country	06/30/2011		06/30/2010
Afinco Americas Madeira, SGPS, Sociedade Unipessoal, Ltda.		Portugal		100.00		100.00
Banco Dibens S.A.		Brazil		100.00		100.00
Banco Fiat S.A.		Brazil		99.99		99.99
Banco Itaú Argentina S.A.		Argentina		99.99		99.99
Banco Itaú BBA S.A.		Brazil		99.99		99.99
Banco Itaú Chile		Chile		99.99		99.99
Banco Itaú Europa Luxembourg S.A.		Luxembourg		99.99		99.99
Banco Itaú BBA International, S.A.	(1)	Portugal		99.99		99.99
Banco Itaú Uruguay S.A.		Uruguay		100.00		100.00
Banco Itaucard S.A.		Brazil		100.00		99.99
Banco Itaucred Financiamentos S.A.		Brazil		100.00		99.99
Banco Itauleasing S.A.		Brazil		100.00		99.99
BIU Participações S.A.		Brazil		66.15		66.15
Cia. Itaú de Capitalização		Brazil		99.99		99.99
Dibens Leasing S.A. - Arrendamento Mercantil		Brazil		100.00		100.00
FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento	(2)	Brazil		50.00		50.00
Fiat Administradora de Consórcios Ltda.		Brazil		99.99		99.99
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento	(2)	Brazil		50.00		50.00
Hipercard Banco Múltiplo S.A.		Brazil		100.00		99.99
Itaú Administradora de Consórcios Ltda.		Brazil		99.99		99.99
Itau Bank, Ltd.	(3)	Cayman Islands		100.00		100.00
Itaú Corretora de Valores S.A.		Brazil		100.00		99.99
Itaú Seguros S.A.		Brazil		100.00		100.00
Itaú Unibanco S.A.		Brazil		100.00		100.00
Itaú Vida e Previdência  S.A.		Brazil		100.00		100.00
Itaú Unibanco Seguros Corporativos S.A.		Brazil		100.00		100.00
Itaúsa Export S.A.		Brazil		100.00		100.00
Luizacred S.A. Soc. Créd. Financiamento Investimento	(2)	Brazil		50.00		50.00
OCA Casa Financiera S.A.		Uruguay		100.00		100.00
Orbitall Serviços e Processamento de Informações Comerciais S.A.		Brazil		100.00		99.99
Redecard S.A.	(4)	Brazil		50.00		50.00
Unibanco Cayman Bank Ltd.		Cayman Islands		100.00		100.00
Unibanco Participações Societárias S.A.		Brazil		51.00		51.00

(1) New company name of Banco Itaú Europa S.A.;

(2) Company with shared control included proportionally in consolidation;

(3) It does not include Redeemable Preferred Shares (Note 10f)

(4) Fully consolidated company whose share capital is 50% plus 17 shares.

NOTE 3 - REQUIREMENTS OF CAPITAL AND FIXED ASSET LIMITS

a) Basel and Fixed Asset Ratios

The main indicators at June 30, 2011, according to present regulation, are as follows:

 

	Financial system			Economic-financial
	consolidated (1)			consolidated (2)
Referential equity (3)		83,008,666			84,717,133
Basel ratio		15.8	%		16.1	%
Tier I		12.5	%		12.8	%
Tier II		3.3	%		3.3	%
Fixed assets ratio (4)		48.6	%		14.5	%
Excess capital in relation to fixed assets		1,123,152			30,035,452

(1) Consolidated financial statements including financial companies only;

(2) Consolidated financial statements comprising all direct and indirect subsidiary companies, including insurance, pension plan and capitalization companies, and other non-financial companies, as provided for in CMN Resolution No. 2,723 of June 1, 2000, amended by CMN Resolution No. 2,743, of June 28, 2000;

(3) The CMN, through Resolution No. 3,444, of February 28, 2007, determined the Referential Equity (PR), for purposes of calculating operating limits, as being the sum of both Tier I and Tier II levels, following the international experience, each of them comprising items from stockholders' equity, as well as subordinated debt and hybrid capital and debt instruments.

(4) The difference between the fixed asset ratio of the financial system consolidated and the economic-financial consolidated arises from the inclusion of non-financial subsidiary companies, which provide high liquidity and low level of fixed asset ratio, with a consequent decrease in the fixed asset ratio of the economic and financial consolidated amounts, enabling, when necessary, the distribution of funds to the financial companies.

An issue of subordinated debt is pending approval from the Central Bank of Brazil in order to comprise the Tier II of Referential Equity, which at June 30, 2011 represents the amount of R$ 2,387,136. Should we consider these issues, the Basel ratios would stand at 16.3% and 16.6% for the financial system and the economic-financial consolidated, respectively.

Management considers the current Basel ratio (15.8%, based on financial system consolidated) to be adequate, taking into account the following:

a) It exceeds by 4.8 percent the minimum required by the authorities (11.0%); and

b) In view of the realizable values of assets (Note 18), the additional provision (exceeding the minimum required) (Note 8c) and unrecorded deferred tax assets (Note 14b IV), the ratio would increase to 17.4%.

CMN Resolution No. 3,490, of August 29, 2007, provides for the criteria for computation of the Required Referential Equity (PRE). For calculation of the risk portions, the procedures of Circular No. 3,360, of September 12, 2007 for credit risk, of Circulars Nos. 3,361, 3,362, 3,363, 3,364, 3,366 and 3,368, of September 12, 2007, No. 3,388, of June 4, 2008, and 3,389, of June 25, 2008, and Circular Letters Nos. 3,309 and 3,310, of April 15, 2008 for market risk, and Circulars No. 3,383 , of April 30, 2008 and 3,476, of December 28, 2009 and Circular Letters Nos. 3,315 and 3,316, of April 30, 2008, for operational risk were followed. For the operational risk portion, ITAÚ UNIBANCO HOLDING opted for the use of the Alternative Standardized Approach.

Circular No. 3,498, of June 28, 2010, changes the provisions mentioned in Circulars No. 3,361, 3,362, 3,363, 3,364 and 3,366, of September 12, 2007, and No. 3,389, of June 25, 2008, which set forth the procedures for calculation of portions related to market risk. Clarification on the methodologies to be adopted was disclosed in Circular Letters Nos. 3,498 and 3,499, of April 8, 2011. The new calculation method will be adopted gradually from January 1, 2012, taking into account that it shall be fully employed from June 30, 2012. Should the new rules already be applicable, the ratios would be reduced by about 1.6%.

The Referential Equity used for calculation of ratios and composition of risk exposures at June 30, 2011, are as follows:

	Financial system consolidated					Economic-financial consolidated
Stockholders' Equity Itaú Unibanco Holding S.A. (Consolidated)		66,082,796					66,082,796
Minority interest in subsidiaries		1,028,230					2,761,757
Consolidated stockholders’ equity (BACEN)		67,111,026					68,844,553
Revaluation reserves excluded from Tier I		-					-
Deferred tax assets excluded from Tier I		(587,602	)				(610,480	)
Deferred permanent assets excluded from Tier I		(320,521	)				(322,703	)
Adjustments to market value – securities and derivative Financial Instruments excluded from Tier I		32,043					32,046
Preferred shares with clause of redemption excluded from Tier I		(616,299	)				(616,299	)
Tier I		65,618,647					67,327,117
Subordinated debt		17,144,590					17,144,590
Preferred shares with clause of redemption		369,779					369,779
Revaluation reserves		-					-
Adjustment to market value -securities and derivative financial instruments		(32,043	)				(32,046	)
Tier II		17,482,326					17,482,323
Tier I + Tier II		83,100,973					84,809,440
Exclusions:
Funding instruments issued by financial institutions		(92,307	)				(92,307	)
Referential equity		83,008,666					84,717,133
Risk exposure:
Exposure weighted by credit risk (EPR)		484,707,582					481,288,845
Portion required for credit risk coverage (PEPR)		53,317,834		92.3	%		52,941,773		91.7	%
a) Per weighting factor (FPR):
FPR at 20%		223,810		0.4	%		378,809		0.7	%
FPR at 35%		10,218		0.0	%		10,219		0.0	%
FPR at 50%		2,358,485		4.1	%		3,841,299		6.7	%
FPR at 75%		14,506,564		25.1	%		14,125,882		24.5	%
FPR at 100%		34,912,108		60.4	%		33,196,555		57.5	%
FPR at 300%		1,007,338		1.7	%		1,084,748		1.9	%
Derivatives – potential future gain		299,311		0.5	%		304,261		0.5	%
b) Per type:
Securities		2,947,696		5.1	%		3,089,930		5.4	%
Loan operations - Retail		11,812,053		20.5	%		11,554,071		20.0	%
Loan operations – Non-retail		16,427,378		28.4	%		16,441,162		28.5	%
Joint obligations - Retail		6,827		0.0	%		6,829		0.0	%
Joint obligations – Non-Retail		4,602,459		8.0	%		4,608,789		8.0	%
Loan commitments - Retail		2,687,684		4.7	%		2,564,984		4.4	%
Loan commitments – Non-retail		1,501,845		2.6	%		1,501,884		2.6	%
Other exposures		13,331,892		23.1	%		13,174,124		22.8	%
Portion required for operational risk coverage (POPR)		3,073,029		5.3	%		3,435,078		6.0	%
Retail		521,157		0.9	%		521,157		0.9	%
Commercial		865,912		1.5	%		865,912		1.5	%
Corporate finance		73,971		0.1	%		73,971		0.1	%
Negotiation and sales		1,013,408		1.8	%		1,013,408		1.8	%
Payments and settlements		264,247		0.5	%		264,247		0.5	%
Financial agent services		119,246		0.2	%		119,246		0.2	%
Asset management		193,532		0.3	%		193,532		0.3	%
Retail brokerage		21,115		0.0	%		21,115		0.0	%
Business plans		441		0.0	%		441		0.0	%
Conef additional		-		0.0	%		362,049		0.6	%
Portion required for market risk coverage:		1,365,131		2.4	%		1,335,092		2.3	%
Gold, foreign currency and operations subject to foreign exchange variation (PCAM)		-		0.0	%		-		0.0	%
Operations subject to interest rate variation (PJUR)		1,172,993		2.0	%		1,142,954		2.0	%
Fixed rate denominated in Real (PJUR1)		162,651		0.3	%		162,647		0.3	%
Foreign currency coupon (PJUR2)		477,149		0.8	%		447,114		0.8	%
Price index coupon (PJUR3)		415,320		0.7	%		415,320		0.7	%
Interest rate coupon (PJUR 4)		117,873		0.2	%		117,873		0.2	%
Operations subject to commodity price variation (PCOM)		129,868		0.2	%		129,868		0.2	%
Operations subject to stock price variation (PACS)		62,270		0.1	%		62,270		0.1	%
Required Referential Equity		57,755,994		100.0	%		57,711,943		100.0	%
Excess capital in relation to Required Referential Equity		25,252,672		43.7	%		27,005,190		46.8	%
Total exposure weighted by risk [EPR + (1/0.11 X (POPR + PCAM + PJUR + PCOM + PACS)		525,054,487					524,654,029
Ratio (%)		15.8					16.1
Referential equity calculated for covering the interest rate risk of operations not classified into the trading portfolio (RBAN)		537,642					545,981

During this period, the effects of the changes in legislation and balances were as follows:

	Financial system consolidated									Economic-financial consolidated
Changes in the Basel Ratio	Referential equity			Weighted exposure			Effect			Referential equity			Weighted exposure			Effect
Ratio at 12/31/2010		78,670,791			497,468,330			15.8	%		80,718,514			522,952,010			15.4	%
Result for the period		7,138,559						1.4	%		7,493,079						1.5	%
Interest on capital and dividends		(1,555,875	)					-0.3	%		(1,555,875	)					-0.3	%
Granting of options recognized		80,112						0.0	%		80,112						0.0	%
Granting of stock options – exercised options in the period		154,668						0.0	%		154,668						0.0	%
Asset valuation adjustment		(49,172	)					0.0	%		(49,172	)					0.0	%
Subordinated debt and redeemable preferred shares		(1,120,293	)					-0.2	%		(1,120,293	)					-0.2	%
Treasury shares		(557,992	)					-0.1	%		(557,992	)					-0.1	%
Deferred assets excluded from Tier I of referential equity		(65,779	)		(65,779	)		0.0	%		(67,036	)		(67,036	)		0.0	%
Other changes in referential equity		313,647						0.1	%		(378,872	)					-0.1	%
Changes in risk exposure					27,651,936			-0.9	%					1,769,055			-0.1	%
Ratio at 06/30/2011		83,008,666			525,054,487			15.8	%		84,717,133			524,654,029			16.1	%

b) Capital for Insurance Activity

CNSP – Conselho Nacional de Seguros Privados, following the worldwide trend towards the strengthening of the insurance market, disclosed the Resolution No. 227 of December 6, 2010 (which revoked Resolutions No. 178 of December 28, 2007, and No. 200 of December 16, 2008), and Circular No. 411 of December 22, 2010. The regulations provide for the rules on regulatory capital required for authorization and operation of insurance companies and rules for the allocation of capital from subscription risk for several insurance lines. In January 2011, CNSP Resolution No. 228 of December 6, 2010 came into effect, providing for the criteria for establishment of additional capital based on the credit risk of the supervised companies.

The adjusted stockholders’ equity of ITAU UNIBANCO HOLDING companies exclusively engaged in insurance activities is higher than the required regulatory capital.

NOTE 4 – SUMMARY OF THE MAIN ACCOUNTING PRACTICES

a) Cash and cash equivalents - For purposes of Consolidated Statement of Cash Flows, it includes cash and current accounts in banks (considered in the heading cash and cash equivalents), interbank deposits and securities purchased under agreements to resell – funded position that have original maturities of up to 90 days or less.

b) Interbank investments, remunerated restricted credits – Brazilian Central Bank, remunerated deposits, deposits received under securities repurchase agreements, funds from acceptance and issuance of securities, borrowings and onlending, subordinated debt and other receivables and payables – Transactions subject to monetary correction and foreign exchange variation and operations with fixed charges are recorded at present value, net of the transaction costs incurred, calculated “pro rata die” based on the effective rate of transactions, according to CVM Resolution No. 649 of December 16, 2010.

c) Securities - Recorded at cost of acquisition restated by the index and/or effective interest rate and presented in the Balance Sheet, according to BACEN Circular No. 3,068, of November 8, 2001. Securities are classified into the following categories:

· Trading securities – acquired to be actively and frequently traded, and adjusted to market value, with a contra-entry to the results for the period;

· Available-for-sale securities – securities that can be negotiated but are not acquired to be actively and frequently traded. They are adjusted to their market value with a contra-entry to an account disclosed in stockholders’ equity;

· Held-to-maturity securities – securities, except for non-redeemable shares, for which the bank has the financial condition and intends or is required to hold them in the portfolio up to their maturity, are recorded at cost of acquisition, or market value, whenever these are transferred from another category. The securities are adjusted up to their maturity date, not being adjusted to market value

Gains and losses on available-for-sale securities, when realized, are recognized at the trading date in the statement of income, with a contra-entry to a specific stockholders’ equity account.

Decreases in the market value of available-for-sale and held-to-maturity securities below their related costs, resulting from non-temporary reasons, are recorded in results as realized losses.

d) Derivative financial instruments - these are classified on the date of their acquisition, according to management's intention of using them either as a hedge or not, according to BACEN Circular No. 3,082, of January 30, 2002. Transactions involving financial instruments, carried out upon the client’s request, for their own account, or which do not comply with the hedging criteria (mainly derivatives used to manage the overall risk exposure), are stated at market value, including realized and unrealized gains and losses, which are recorded directly in the statement of income.

The derivatives used for protection against risk exposure or to modify the characteristics of financial assets and liabilities, which have changes in market value highly associated with those of the items being protected at the beginning and throughout the duration of the contract, and which are found effective to reduce the risk related to the exposure being protected, are classified as a hedge, in accordance with their nature:

· Market Risk Hedge – financial assets and liabilities, as well as their related financial instruments, are accounted for at their market value plus realized and unrealized gains and losses, which are recorded directly in the statement of income;

· Cash Flow Hedge - the effective amount of the hedge of financial assets and liabilities, as well as their related financial instruments, are accounted for at their market value plus realized and unrealized gains and losses, net of tax effects, when applicable, and recorded in a specific account in stockholders’ equity. The ineffective portion of hedge is recorded directly in the statement of income.

e) Loan, lease and other credit operations (Operations with credit granting characteristics) – these transactions are recorded at present value and calculated “pro rata die” based on the variation of the contracted index and interest rate, and are recorded on the accrual basis until the 60th day overdue in financial companies, according to the estimate for receipt. After the 60th day, income is recognized upon the effective receipt of installments. Credit card operations include receivables arising from the purchases made by cardholders.  The funds related to these amounts are recorded in Other Liabilities – Credit Card Operations, which also include funds arising from other credits related to transactions with credit card issuers.

f) Allowance for loan losses - the balance of the allowance for loan losses was recorded based on the credit risk analysis, at an amount considered sufficient to cover loan losses according to the rules determined by CMN Resolution No. 2,682 of December 21, 1999, among which are:

· Provisions are recorded from the date loans are granted, based on the client’s risk rating and on the periodic quality evaluation of clients and industries, and not only in the event of default;

· Based exclusively on delinquency, write-offs of credit operations against loss may be carried out 360 days after the due date of the credit or 540 days for operations that mature after a period of 36 months.

g) Other assets - these assets are mainly comprised by assets held for sale relating to real estate available for sale, own real estate not in use and real estate received as payment in kind, which are adjusted to market value through the set-up of a provision, according to current regulations, reinsurance unearned premiums (Note 4n I); and prepaid expenses, corresponding to disbursements, the benefit of which will occur in future periods.

h) Investments - in subsidiary and affiliated companies, investments are accounted for under the equity method. The consolidated financial statements of foreign branches and subsidiaries are adapted to comply with Brazilian accounting practices and converted into Reais. Other investments are recorded at cost and adjusted to market value by setting up a provision in accordance with current standards.

i) Fixed assets - These assets are stated at cost of acquisition or construction, less accumulated depreciation, adjusted to market value until December 31, 2007, when applicable. For insurance, pension plan and capitalization operations, property and equipment are adjusted to market value supported by appraisal reports. They correspond to rights related to tangible assets intended for maintenance of the company’s operations or exercised for such purpose, including assets arising from transactions that transfer to the company their benefits, risks and controls. The items acquired through Lease contracts are recorded according to CVM Resolution No. 554, of November 12, 2008, as contra-entry to Lease obligations. Depreciation is calculated using the straight-line method, based on monetarily restated cost, at the following annual rates.

Real estate in use	4		%	to	8		%
Leasehold improvements	from 10%
Installations, furniture, equipment and security, transportation and communication systems		10	%	to		25	%
EDP systems		20	%	to		50	%

j) Operating leases – leased assets are stated at cost of acquisition less accumulated depreciation. The depreciation of leased assets is recognized under the straight-line method, based on their usual lives, taking into account that the useful life shall be decreased by 30% should it meet the conditions provided for by Ordinance No. 113 of February 26, 1998 issued by the Ministry of Finance. Receivables are recorded in lease receivable at the contractual amount, with contra-entry to unearned income accounts.  The recognition in income will occur on the due date of the installments.

k) Goodwill – corresponds to the amount paid in excess for the purchase of investments arising from the expected future profitability. It does not have a defined useful life and is annually tested for impairment of assets.

l) Intangible assets – correspond to rights acquired whose subjects are intangible assets intended for maintenance of the company or which are exercised for such purpose, according to the CMN Resolution No. 3,642, of November 26, 2008. They are composed of rights acquired to credit payrolls and partnership agreements, amortized over the agreement terms, and software and customer portfolios, amortized over a term varying from five to ten years.

m) Impairment of assets – a loss is recognized when there are clear evidences that assets are stated at a non-recoverable value. This procedure is adopted annually, at the end of each year.

n) Insurance, pension plan and capitalization operations - Insurance premiums, acceptance coinsurance and selling expenses are accounted for in accordance with the insurance effectiveness term, through the recognition and reversal of the provision for unearned premiums and deferred selling expenses. Interest arising from fractioning of insurance premiums is accounted for as incurred. Revenues from social security contributions, gross revenue from capitalization certificates and respective technical provisions are recognized upon receipt.

I - Credits from operations and other assets related to insurance and reinsurance operations:

· Insurance premiums receivable - Refer to installments of insurance premiums receivable, current and past due, in accordance with insurance policies issued;

· Reinsurance recoverable amounts – Refer to claims paid to the insured party pending recovery from Reinsurer, installments of unsettled claims and incurred but not reported claims - Reinsurance (IBNR), classified in assets in accordance with the criteria established by CNSP Resolution No. 162, of December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No. 379, of December 12, 2008;

· Reinsurance unearned premiums – Recognized to determine the portion of reinsurance unearned premiums, calculated “pro rata die”, and for risks of policies not issued computed based on estimates, based on the actuarial technical study and in compliance with the criteria established by CNSP Resolution No. 162, of December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No. 379, of December 19, 2008.

II - Technical provisions of insurance, pension plan and capitalization – technical provisions are recognized according to the technical notes approved by SUSEP and criteria established by CNSP Resolution No. 162 of December 26, 2006 and the amendments introduced by CNSP Resolution No. 181, of December 19, 2007, and CNSP Resolution No. 195, of December 16, 2008.

II.I - Insurance:

· Provision for unearned premiums – recognized to determine unearned premiums relating to the risk coverage period, calculated “pro rata die”, and relating to risks not yet issued, calculated based on estimates, according to an actuarial technical study.

· Provision for premium deficiency – recognized according to the Technical Actuarial Note in case of insufficient Provision for unearned premiums;

· Provision for unsettled claims - recognized based on claims of loss in an amount sufficient to cover future commitments, awaiting judicial decision, which amounts are determined by court appointed experts and legal advisors that make assessments based on the insured amounts and technical regulations, taking into consideration the likelihood of unfavorable outcome to the insurance company.

· Provision for claims incurred but not reported (IBNR) – recognized for the estimated amount of claims occurred for risks assumed in the portfolio but not reported.

II.II - Pension Plan and Individual life with living benefits – correspond to liabilities assumed such as retirement plans, disability, pension and annuity:

· Mathematical provisions for benefits to be granted and benefits granted – correspond to commitments assumed with participants, but for which benefits are not yet due, and to those receiving the benefits, respectively;

· Provision for insufficient contribution – recognized in case of insufficient mathematical provisions;

· Provision for events incurred but not reported (IBNR) – recognized at the estimated amount of events occurred but not reported;

· Provision for financial surplus – recognized by the difference between the contributions adjusted daily by the Investment Portfolio and the funds guaranteeing them, according to the plan's regulation;

II.III-  Capitalization:

· Mathematical provision for redemptions – represents capitalization certificates received to be redeemed;

· Provision for raffle contingencies – recognized according to the methodology provided for in the Technical Actuarial Note to cover the Provision for raffles in the event of insufficient funds.

o) Contingent assets and liabilities and legal liabilities – tax and social security - assessed, recognized and disclosed according to the provisions set forth in CMN Resolution No. 3,823 of December 16, 2009, and BACEN Circular Letter No. 3,429 of February 11, 2010.

I - Contingent assets and liabilities

Refer to potential rights and obligations arising from past events, the occurrence of which is dependent upon future events.

· Contingent assets - not recognized, except upon evidence ensuring a high reliability level of realization, usually represented by claims awarded a final and unappealable judgment and confirmation of the recoverability of the claim through receipt of amounts or offset against another liability;

· Contingent liabilities - basically arise from administrative proceedings and lawsuits, inherent in the normal course of business, filed by third parties, former employees and governmental bodies, in connection with civil, labor, tax and social security lawsuits and other risks. These contingencies are calculated based on conservative practices, being usually recorded based on the opinion of legal advisors and considering the probability that financial resources shall be required for settling the obligation, the amount of which may be estimated with sufficient certainty. Contingencies are classified either as probable, for which provisions are recognized; possible, which are disclosed but not recognized; and remote, for which recognition or disclosure are not required. Any contingent amounts are measured through the use of models and criteria which allow their adequate measurement, in spite of the uncertainty of their term and amounts.

Escrow deposits are restated in accordance with the current legislation.

Contingencies guaranteed by indemnity clauses in privatization processes and with liquidity are only recognized upon judicial notification with simultaneous recognition of receivables, without any effect on results.

II - Legal liabilities – tax and social security

Represented by amounts payable related to tax liabilities, the legality or constitutionality of which are subject to judicial defense, recognized at the full amount under discussion.

Liabilities and related escrow deposits are adjusted in accordance with the current legislation.

p) Taxes - these provisions are calculated according to current legislation at the rates shown below, using the related calculation bases.

Income tax		15.00	%
Additional income tax		10.00	%
Social contribution (1)		15.00	%
PIS (2)		0.65	%
COFINS (2)		4.00	%
ISS	up to 5.00		%

(1) As from May 1, 2008, for financial subsidiaries and equivalent companies, the rate was changed from 9% to 15%, as provided for in articles 17 and 41 of Law No. 11,727, of June 24, 2008. For non-financial and pension plan subsidiaries, the rate remained at 9%;

(2) For non-financial subsidiaries that fall into the non-cumulative calculation system, the PIS rate is 1.65% and COFINS rate is 7.6%.

The changes introduced by Laws No. 11,638 and No. 11,941 (articles 37 and 38), which modified the criterion for recognizing revenues, costs and expenses, computed to determine the net income for the year, did not produce effects for purposes of determining the taxable income of companies that opt for the Transition Tax Regime (RTT), so for tax purposes the rules effective on December 31, 2007 were followed. The tax effect arising from the adoption of such rules is recorded, for accounting purposes, in the corresponding deferred assets and liabilities.

q) Deferred income – this refers to unexpired interest received in advance that is recognized in income as earned, and the negative goodwill on acquisition of investments arising from expected future losses, which has not been absorbed in the consolidation process.

NOTE 5 - CASH AND CASH EQUIVALENTS

For purposes of Statement of Cash Flows, cash and cash equivalents of ITAÚ UNIBANCO HOLDING CONSOLIDATED are composed of the following:

	06/30/2011		06/30/2010
Cash and cash equivalents		15,185,816		12,130,949
Interbank deposits		2,657,416		5,778,719
Securities purchased under agreements to resell – Funded position		10,783,003		38,477,380
TOTAL		28,626,235		56,387,048

In ITAÚ UNIBANCO HOLDING it is composed of the following:

	06/30/2011		06/30/2010
Cash and cash equivalents		4,938		233
Securities purchased under agreements to resell – Funded position		22,341		154,682
TOTAL		27,279		154,915

NOTE 6 - INTERBANK INVESTMENTS

	06/30/2011												06/30/2010
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Money market		34,233,437		45,813,331		35,773		7,837		80,090,378		81.4		98,368,250		85.2
Funded position (*)		14,674,061		15,449,299		35,773		7,837		30,166,970		30.7		42,101,703		36.5
Financed position		18,409,795		21,926,271		-		-		40,336,066		41.0		47,144,089		40.8
With free movement		8,215,825		21,779,220		-		-		29,995,045		30.5		19,254,060		16.7
Without free movement		10,193,970		147,051		-		-		10,341,021		10.5		27,890,029		24.1
Short position		1,149,581		8,437,761		-		-		9,587,342		9.7		9,122,458		7.9
Money market – Assets Guaranteeing Technical Provisions - SUSEP		2,650,833		107,757		259,658		56,886		3,075,134		3.1		3,431,152		3.0
Interbank deposits		9,626,823		3,597,867		1,667,110		387,998		15,279,798		15.5		13,683,202		11.8
TOTAL		46,511,093		49,518,955		1,962,541		452,721		98,445,310				115,482,604
% per maturity term		47.2		50.3		2.0		0.5
TOTAL - 06/30/2010		82,916,643		29,906,041		2,178,416		481,504		115,482,604
% per maturity term		71.8		25.9		1.9		0.4

(*) Includes R$ 12,142,686 (R$ 8,713,444 at 06/30/2010) related to money market with free movement, in which securities are basically restricted to guarantee transactions at the BM&FBovespa S.A. – Bolsa de Valores, Mercadorias e Futuros (Securities, Commodities and Futures Exchange) and the Central Bank of Brazil (BACEN).

In ITAÚ UNIBANCO HOLDING, portfolio is composed of Money market – funded position falling due in up to 30 days amounting to R$ 22,341 (R$ 154,682 at June 30, 2010) and Interbank deposits over 365 days amounting to R$ 30,522,153 (R$ 12,181,570 at June 30, 2010).

NOTE 7 – SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS AND LIABILITIES)

See below the composition by Securities and Derivatives type, maturity and portfolio already adjusted to their respective market values.

a) Summary per maturity

	06/30/2011																																06/30/2010
				Provision for adjustment to market value reflected on:
	Cost			Results			Stockholders’ equity			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		80,296,105			(54,008	)		134,974			80,377,071			44.5		9,997,033			1,291,755			2,184,601			4,070,928			18,339,635			44,493,119			44,302,478
Financial Treasury Bills		31,289,613			(1,813	)		5			31,287,805			17.3		-			1,224,325			1,281,037			218,099			3,139,748			25,424,596			16,513,728
National Treasury Bills		21,244,989			(7,938	)		(1,964	)		21,235,087			11.7		9,898,920			-			156,991			276,500			10,122,743			779,933			4,464,868
National Treasury Notes		22,068,301			(64,748	)		65,410			22,068,963			12.2		5,518			11,082			516,341			3,458,982			4,933,197			13,143,843			19,022,499
National Treasury/Securitization		310,768			196			(12,824	)		298,140			0.2		664			2,566			3,433			18,625			6,203			266,649			650,057
Brazilian External Debt Bonds		5,314,214			20,295			84,221			5,418,730			3.0		25,434			52,617			226,799			98,722			137,480			4,877,678			3,585,329
Investments in non-exclusive funds		66,497			-			-			66,497			0.0		66,497			-			-			-			-			-			64,126
Other		1,723			-			126			1,849			0.0		-			1,165			-			-			264			420			1,871
GOVERNMENT SECURITIES - ABROAD		7,403,606			21,715			(24,735	)		7,400,586			4.1		835,443			495,508			1,617,602			2,945,465			53,484			1,453,084			6,263,810
Argentina		204,614			1,846			-			206,460			0.1		8,635			21,234			33,104			110,127			305			33,055			223,888
Central Bank		24,487			144			-			24,631			0.0		-			-			5			3			4			24,619			72,318
National Treasury		180,127			1,702			-			181,829			0.1		8,635			21,234			33,099			110,124			301			8,436			151,570
Denmark		3,269,607			-			1			3,269,608			1.8		-			166,346			1,326,475			1,776,787			-			-			788,241
Spain		781,531			-			-			781,531			0.4		363,281			-			-			418,250			-			-			440,531
Korea		294,972			-			-			294,972			0.2		-			-			-			294,972			-			-			2,090,211
Chile		646,926			(35	)		(1,782	)		645,109			0.4		218,214			202,064			155,293			41,859			12,294			15,385			1,182,305
Paraguay		414,930			-			(27,714	)		387,216			0.2		69,848			62,751			52,066			154,520			28,819			19,212			368,361
Uruguay		403,670			(28	)		264			403,906			0.2		149,824			23,162			46,866			147,152			11,437			25,465			773,547
United States		1,118,270			18,384			43			1,136,697			0.6		-			19,823			3,784			1,560			-			1,111,530			390,624
Mexico		238,521			1,424			4,408			244,353			0.1		2,137			83			-			215			472			241,446			1,421
Other		30,565			124			45			30,734			0.0		23,504			45			14			23			157			6,991			4,681
CORPORATE SECURITIES		31,061,422			85,018			262,472			31,408,912			17.4		5,866,999			1,217,966			1,604,593			1,666,071			4,269,702			16,783,581			27,125,114
Eurobonds and other		5,513,098			15,385			81,634			5,610,117			3.1		607,892			289,493			204,327			347,325			1,283,549			2,877,531			4,957,237
Bank deposit certificates		3,293,875			-			(117	)		3,293,758			1.8		40,076			228,823			776,714			671,830			1,555,604			20,711			2,669,569
Shares		3,048,736			35,060			23,733			3,107,529			1.7		3,107,529			-			-			-			-			-			3,824,992
Debentures		8,026,351			846			42,521			8,069,718			4.5		18,684			520,420			81,540			193,681			383,324			6,872,069			6,061,175
Promissory Notes		672,693			-			64			672,757			0.4		137,656			107,742			427,359			-			-			-			3,111,936
Quotas of funds		1,877,869			32,039			7,322			1,917,230			1.1		1,913,232			-			-			-			-			3,998			1,341,928
Fixed income		814,357			(1,388	)		(41	)		812,928			0.4		808,930			-			-			-			-			3,998			386,960
Credit rights		866,154			-			-			866,154			0.5		866,154			-			-			-			-			-			739,852
Variable income		197,358			33,427			7,363			238,148			0.1		238,148			-			-			-			-			-			215,116
Securitized real estate loans		7,732,287			1,688			107,369			7,841,344			4.3		41,930			71,488			114,653			288,807			446,779			6,877,687			5,119,553
Other		896,513			-			(54	)		896,459			0.5		-			-			-			164,428			600,446			131,585			38,724
PGBL/VGBL FUND QUOTAS (1)		51,123,685			-			-			51,123,685			28.3		51,123,685			-			-			-			-			-			41,190,644
SUBTOTAL - SECURITIES		169,884,818			52,725			372,711			170,310,254			94.2		67,823,160			3,005,229			5,406,796			8,682,464			22,662,821			62,729,784			118,882,046
Trading securities		129,334,383			52,725			-			129,387,108			70.5		63,363,844			1,545,293			2,008,256			4,867,589			19,590,715			38,011,411			78,531,076
Available-for-sale securities		37,408,960			-			372,711			37,781,671			22.0		4,377,176			1,411,195			3,398,540			3,742,709			2,945,359			21,906,692			37,322,037
Held-to-maturity securities (2)		3,141,475			-			-			3,141,475			1.7		82,140			48,741			-			72,166			126,747			2,811,681			3,028,933
DERIVATIVE FINANCIAL INSTRUMENTS		10,034,491			388,200			-			10,422,691			5.8		1,495,202			2,936,181			1,284,908			1,036,833			878,322			2,791,245			7,897,946
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		179,919,309			440,925			372,711			180,732,945			100		69,318,362			5,941,410			6,691,704			9,719,297			23,541,143			65,521,029			126,779,992
																38.4	%		3.2	%		3.7	%		5.4	%		13.0	%		36.3	%
DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)		(6,987,169	)		120,910			(21,182	)		(6,887,441	)		-		(661,429	)		(1,620,832	)		(1,153,313	)		(858,215	)		(1,077,769	)		(1,515,883	)		(6,849,159	)

(1) The PGBL and VGBL plans securities portfolios, the ownership and embedded risks of which are the customer’s responsibility, are recorded as securities – trading securities, with a contra-entry to long-term liabilities in Pension Plan Technical Provisions account, as determined by SUSEP.

(2) Unrecorded positive adjustment to market value in the amount of R$ 565,693 (R$ 542,111 at 06/30/2010), according to Note 7e.

b) Summary by portfolio

	06/30/2011
			Restricted to
	Own portfolio		Repurchase agreements		Pledging of guarantees (1)		Free movement		Central Bank (2)		Derivative financial instruments		Assets guaranteeing technical provisions (Note 11b)		Total
GOVERNMENT SECURITIES - DOMESTIC		25,098,751		38,960,579		5,638,765		4,155,787		2,156,034		-		4,367,155		80,377,071
Financial Treasury Bills		5,476,973		21,109,316		3,055,438		953,948		144,897		-		547,233		31,287,805
National Treasury Bills		7,837,205		9,751,938		400,812		3,197,904		-		-		47,228		21,235,087
National Treasury Notes		8,954,091		5,144,591		2,182,515		3,935		2,011,137		-		3,772,694		22,068,963
National Treasury/Securitization		298,140		-		-		-		-		-		-		298,140
Brazilian External Debt Bonds		2,463,996		2,954,734		-		-		-		-		-		5,418,730
Investments in non-exclusive funds		66,497		-		-		-		-		-		-		66,497
Other		1,849		-		-		-		-		-		-		1,849
GOVERNMENT SECURITIES - ABROAD		5,358,442		814,875		1,202,191		-		15,822		-		9,256		7,400,586
Argentina		31,172		175,288		-		-		-		-		-		206,460
Central Bank		23,749		882		-		-		-		-		-		24,631
National Treasury		7,423		174,406		-		-		-		-		-		181,829
Denmark		2,086,534		-		1,183,074		-		-		-		-		3,269,608
Spain		781,531		-		-		-		-		-		-		781,531
Korea		294,972		-		-		-		-		-		-		294,972
Chile		592,022		27,974		35		-		15,822		-		9,256		645,109
Paraguay		387,216		-		-		-		-		-		-		387,216
Uruguay		403,792		114		-		-		-		-		-		403,906
United States		624,760		492,855		19,082		-		-		-		-		1,136,697
Mexico		125,709		118,644		-		-		-		-		-		244,353
Other		30,734		-		-		-		-		-		-		30,734
CORPORATE SECURITIES		24,951,371		1,504,994		345,501		-		-		-		4,607,046		31,408,912
Eurobonds and other		4,195,821		1,412,065		2		-		-		-		2,229		5,610,117
Bank deposit certificates		446,565		92,929		10,785		-		-		-		2,743,479		3,293,758
Shares		3,087,462		-		7,804		-		-		-		12,263		3,107,529
Debentures		6,817,401		-		306,095		-		-		-		946,222		8,069,718
Promissory Notes		672,757		-		-		-		-		-		-		672,757
Quotas of funds		1,544,230		-		20,815		-		-		-		352,185		1,917,230
Fixed income		445,206		-		20,815		-		-		-		346,907		812,928
Credit rights		860,876		-		-		-		-		-		5,278		866,154
Variable income		238,148		-		-		-		-		-		-		238,148
Securitized real estate loans		7,822,877		-		-		-		-		-		18,467		7,841,344
Other		364,258		-		-		-		-		-		532,201		896,459
PGBL/VGBL FUND QUOTAS		-		-		-		-		-		-		51,123,685		51,123,685
SUBTOTAL - SECURITIES		55,408,564		41,280,448		7,186,457		4,155,787		2,171,856		-		60,107,142		170,310,254
Trading securities		25,484,255		37,565,433		4,154,166		4,155,557		2,011,136		-		56,016,561		129,387,108
Available-for-sale securities		29,805,772		3,463,561		3,006,875		230		160,720		-		1,344,513		37,781,671
Held-to-maturity securities		118,537		251,454		25,416		-		-		-		2,746,068		3,141,475
DERIVATIVE FINANCIAL INSTRUMENTS		-		-		-		-		-		10,422,691		-		10,422,691
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		55,408,564		41,280,448		7,186,457		4,155,787		2,171,856		10,422,691		60,107,142		180,732,945
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) – 06/30/2010		40,796,637		18,224,087		7,845,778		2		3,602,046		7,897,946		48,413,496		126,779,992

(1) Represent securities deposited with Contingent Liabilities (Note 12b), Stock Exchanges and the Clearing Houses for the Custody and Financial Settlement of Securities.

(2) Represent securities in compulsory deposits.

c) Trading securities

See below the composition of the portfolio of trading securities by type, stated at cost and market value and by maturity term.

	06/30/2011																											06/30/2010
	Cost		Adjustment to market value (in results)			Market value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		67,625,662		(54,008	)		67,571,654		51.6		9,993,587			1,216,567			1,209,144			3,960,747			17,356,222			33,835,387			28,838,087
Financial Treasury Bills		27,195,041		(1,813	)		27,193,228		21.0		-			1,200,591			305,995			201,429			2,714,442			22,770,771			9,624,773
National Treasury Bills		21,244,990		(7,938	)		21,237,052		16.4		9,898,919			-			156,992			276,500			10,124,707			779,934			4,416,249
National Treasury Notes		17,226,396		(64,748	)		17,161,648		13.3		5,412			10,639			515,925			3,437,637			4,463,436			8,728,599			13,972,065
National Treasury/Securitization		40,909		196			41,105		-		658			2,566			3,433			18,625			6,203			9,620			394,583
Brazilian External Debt Bonds		1,851,829		20,295			1,872,124		0.8		22,101			2,771			226,799			26,556			47,434			1,546,463			366,291
Investments in non-exclusive funds		66,497		-			66,497		0.1		66,497			-			-			-			-			-			64,126
GOVERNMENT SECURITIES - ABROAD		1,487,117		21,714			1,508,831		1.2		10,956			94,473			38,015			117,370			6,671			1,241,346			671,738
Argentina		204,614		1,846			206,460		0.1		8,635			21,235			33,101			110,127			305			33,057			223,454
Central Bank		24,487		144			24,631		-		-			-			5			3			4			24,619			72,318
National Treasury		180,127		1,702			181,829		0.1		8,635			21,235			33,096			110,124			301			8,438			151,136
Chile		65,974		(35	)		65,939		0.1		1			65,899			-			-			39			-			114
Uruguay		15,428		(29	)		15,399		-		317			2,503			1,116			5,445			5,698			320			69,880
United States		1,103,199		18,384			1,121,583		0.9		-			4,709			3,784			1,560			-			1,111,530			372,402
Mexico		90,968		1,424			92,392		0.1		1,953			83			-			215			472			89,669			1,421
Other		6,934		124			7,058		-		50			44			14			23			157			6,770			4,467
CORPORATE SECURITIES		9,097,919		85,019			9,182,938		7.3		2,235,616			234,253			761,097			789,472			2,227,822			2,934,678			7,830,607
Eurobonds and other		1,554,312		15,386			1,569,698		1.2		552			(638	)		32,010			11,323			132,660			1,393,791			1,404,472
Bank deposit certificates		2,768,924		-			2,768,924		2.2		19,008			177,371			685,458			583,669			1,303,418			-			2,444,804
Shares		969,089		35,060			1,004,149		0.8		1,004,149			-			-			-			-			-			1,329,539
Debentures		1,428,717		846			1,429,563		1.1		17,322			57,244			43,220			193,681			196,036			922,060			1,539,185
Quotas of funds		1,162,406		32,039			1,194,445		1.0		1,194,445			-			-			-			-			-			552,720
Fixed income		797,345		(1,388	)		795,957		0.6		795,957			-			-			-			-			-			356,758
Credit rights		199,020		-			199,020		0.2		199,020			-			-			-			-			-			24,985
Variable income		166,041		33,427			199,468		0.2		199,468			-			-			-			-			-			170,977
Securitized real estate loans		620,169		1,688			621,857		0.5		140			276			409			799			1,406			618,827			559,887
Other		594,302		-			594,302		0.5		-			-			-						594,302			-			-
PGBL/VGBL FUND QUOTAS		51,123,685		-			51,123,685		40.1		51,123,685			-			-			-			-			-			41,190,644
Total		129,334,383		52,725			129,387,108		100.20		63,363,844			1,545,293			2,008,256			4,867,589			19,590,715			38,011,411			78,531,076
% per maturity term											49.7	%		1.2	%		1.6	%		3.8	%		14.8	%		28.9	%
Total 06/30/2010		78,390,514		140,562			78,531,076		100.00		44,499,354			4,081,892			1,149,226			4,308,233			5,075,084			19,417,287
% per maturity term											56.6	%		5.2	%		1.5	%		5.5	%		6.5	%		24.7	%

At June 30, 2011, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities – Financial Treasury Bills amounting to R$ 6,147 (R$ 5,534 at 06/30/2010) with maturity over 365 days.

d) Available-for-sale securities

See below the composition of the portfolio of available-for-sale securities by type, stated at cost and market value and by maturity term.

	06/30/2011																											06/30/2010
	Cost		Adjustments to market value (in Stockholders’ equity)			Market value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		9,701,785		133,287			9,835,072		27.8		3,446			26,640			975,460			38,015			893,368			7,898,143			12,696,797
Financial Treasury Bills		4,094,572		5			4,094,577		10.3		-			23,733			975,043			16,670			425,306			2,653,825			6,888,955
National Treasury Bills		-		-			-		1.9		-			-			-			-			-			-			48,619
National Treasury Notes		2,084,485		63,446			2,147,931		6.1		107			440			417			21,345			467,798			1,657,824			2,528,001
National Treasury Notes/Securitization		269,859		(12,824	)		257,035		0.6		6			-			-			-			-			257,029			255,474
Brazilian External Debt Bonds		3,251,146		82,534			3,333,680		8.8		3,333			1,302			-			-			-			3,329,045			2,973,877
Other		1,723		126			1,849		0.0		-			1,165			-			-			264			420			1,871
GOVERNMENT SECURITIES - ABROAD		5,901,315		(24,735	)		5,876,580		14.8		824,260			400,840			1,579,584			2,828,095			46,812			196,989			5,574,557
Denmark		3,269,607		1			3,269,608		8.2		-			166,346			1,326,475			1,776,787			-			-			788,241
Spain		781,531		-			781,531		2.0		363,281			-			-			418,250			-			-			440,531
Korea		294,972		-			294,972		0.7		-			-			-			294,972			-			-			2,090,211
Chile		580,952		(1,782	)		579,170		1.5		218,213			136,166			155,293			41,859			12,254			15,385			1,182,191
Paraguay		414,930		(27,714	)		387,216		1.0		69,848			62,751			52,066			154,520			28,819			19,212			368,361
Uruguay		373,076		264			373,340		0.9		149,280			20,462			45,750			141,707			5,739			10,402			686,152
United States		15,071		43			15,114		0.0		-			15,114			-			-			-			-			18,222
Mexico		147,553		4,408			151,961		0.4		184			-			-			-			-			151,777			-
Other		23,623		45			23,668		0.1		23,454			1			-			-			-			213			648
CORPORATE SECURITIES		21,805,860		264,159			22,070,019		55.6		3,549,470			983,715			843,496			876,599			2,005,179			13,811,560			19,050,683
Eurobonds and other		3,837,844		83,321			3,921,165		9.9		525,427			290,133			172,317			336,002			1,150,889			1,446,397			3,364,175
Bank deposit certificates		524,951		(117	)		524,834		1.3		21,068			51,452			91,256			88,161			252,186			20,711			224,765
Shares		2,079,647		23,733			2,103,380		5.3		2,103,380			-			-			-			-			-			2,495,453
Debentures		6,565,490		42,521			6,608,011		16.7		1,362			463,176			38,320			-			155,144			5,950,009			4,472,756
Promissory Notes		672,693		64			672,757		1.7		137,656			107,742			427,359			-			-			-			3,111,936
Quotas of funds		715,463		7,322			722,785		1.8		718,787			-			-			-			-			3,998			789,180
Fixed income		17,012		(41	)		16,971		0.0		12,973			-			-			-			-			3,998			30,174
Credit rights		667,134		-			667,134		1.7		667,134			-			-			-			-			-			714,867
Variable income		31,317		7,363			38,680		0.1		38,680			-			-			-			-			-			44,139
Securitized real estate loans		7,107,561		107,369			7,214,930		18.2		41,790			71,212			114,244			288,008			440,816			6,258,860			4,553,694
Other		302,211		(54	)		302,157		0.8		-			-			-			164,428			6,144			131,585			38,724
TOTAL		37,408,960		372,711			37,781,671		100.0		4,377,176			1,411,195			3,398,540			3,742,709			2,945,359			21,906,692			37,322,037
Adjustments of securities reclassified in prior years to the held-to-maturity category				11,215							11.0	%		3.6	%		8.6	%		9.4	%		9.4	%		58.0	%
Accounting adjustment - Hedge - Circular No. 3,082				35,137
Deferred taxes				(165,127	)
MINORITY INTEREST IN SUBSIDIARIES				(2,265	)
Adjustment of securities of unconsolidated affiliates				(283,715	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 06/30/2011				(32,044	)
TOTAL 06/30/2010		36,784,345		537,692			37,322,037		100.0		4,513,341			4,293,616			4,993,968			6,631,926			2,600,177			14,289,009
Adjustments of securities reclassified in prior years to the held-to-maturity category				14,358							12.0	%		11.5	%		13.4	%		17.8	%		7.0	%		38.3	%
Accounting adjustment - Hedge - Circular No. 3,082				(96,084	)
Deferred taxes				(171,351	)
Minority interest in subsidiaries				(1,305	)
Adjustment of securities of unconsolidated affiliates				(135,358	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 06/30/2010				147,952

At June 30, 2011, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities in the amount of R$ 6,740 (R$ 32,587 at June 30, 2010) of which the National Treasury Notes amount  to R$ 26,519 with maturity until 365 days and Financial Treasury Bills in the amount of R$ 6,069 with maturity over 365 days.

e)  Held-to-maturity securities

See below the composition of the portfolio of held-to-maturity securities by type, stated at cost and by maturity term. In the carrying value, not considered in results, are the amounts of R$ 11,215 (R$ 14,358 at 06/30/2010) included at June 30, 2011, relating to market adjustment of the reclassified securities at December 31, 2003. Securities classified under this type, if stated at market value, would present a positive adjustment of R$ 565,693 (R$ 542,111 at 06/30/2010) at June 30, 2011.

	06/30/2011																						06/30/2010
	Carrying value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 -  720			Over 720 days			Carrying value
GOVERNMENT SECURITIES - DOMESTIC		2,968,659		94.6		-			48,544			-			72,166			90,046			2,757,903			2,767,594
National Treasury Notes (*)		2,757,420		87.9		-			-			-			-			-			2,757,420			2,522,433
Brazilian External Debt Bonds		211,239		6.7		-			48,544			-			72,166			90,046			483			245,161
GOVERNMENT SECURITIES - ABROAD		15,174		0.5		226			197			-			-			-			14,751			17,515
Uruguay		15,166		0.5		226			197			-			-			-			14,743			17,515
Other		8		-		-			-			-			-			-			8			-
CORPORATE SECURITIES		157,642		4.9		81,914			-			-			-			36,701			39,027			243,824
Eurobonds and other		120,941		3.8		81,914			-			-			-			-			39,027			188,590
Debentures (1)		32,144		1.0		-			-			-			-			32,144			-			49,234
Quotas of funds		-		-		-			-			-			-			-			-			28
Securitized real estate loans (*)		4,557		0.1		-			-			-			-			4,557			-			5,972
Total		3,141,475		100.0		82,140			48,741			-			72,166			126,747			2,811,681			3,028,933
% per maturity term						2.6	%		1.6	%		0.0	%		2.3	%		4.0	%		89.5	%
TOTAL – 06/30/2010		3,028,933		100.0		11,188			10,227			18,774			142,994			249,770			2,595,980
% per maturity term						0.4	%		0.3	%		0.6	%		4.7	%		8.2	%		85.7	%

(*)  Includes investments of Itaú Vida e Previdência S.A. in the amount of R$ 1,999,679 (R$ 1,819,018 at June 30, 2010).

f) Realized and unrealized gain of securities portfolio

	01/01 to 06/30/2011			01/01 to 06/30/2010
Gain (loss) - Trading securities		(845,818	)		(75,370	)
Gain (loss) – Available-for-sale securities		225,537			347,640
Total realized gain		(620,281	)		272,270
Adjustment to market value of trading securities		(199,620	)		(184,433	)
Total		(819,901	)		87,837

g) Reclassification of securities (article 5 of BACEN Circular No. 3,068, of 11/08/2001)

Management sets forth guidelines to classify securities. The classification of the current portfolio of securities, as well as the securities purchased in the period, is periodically and systematically evaluated based on such guidelines.

As set forth in Article 5 of BACEN Circular No. 3,068, of November 8, 2008, the revaluation regarding the classification of securities can only be made upon preparation of trial balances for six-month periods. In addition, the transfer from “held-to-maturity” to the other categories can only occur in view of an isolated, unusual, nonrecurring and unexpected reason, which has occurred after the classification date.

No reclassifications or changes to the existing guidelines have been made in the period.

h) Derivative financial instruments

The globalization of the markets in recent years has resulted in a high level of sophistication in the financial products used. As a result of this process, there has been an increasing demand for derivative financial instruments to manage market risks, mainly arising from fluctuations in interest and exchange rates, commodities and other asset prices. Accordingly, ITAU UNIBANCO HOLDING and its subsidiaries operate in the derivative markets for meeting the growing needs of their clients, as well as carrying out their risk management policy. Such policy is based on the use of derivative instruments to minimize the risks resulting from commercial and financial operations.

The derivative financial instruments’ business with clients is carried out after the approval of credit limits. The process of limit approval takes into consideration potential stress scenarios.

Knowing the client, the sector in which it operates and its risk appetite profile, in addition to providing information on the risks involved in the transaction and the negotiated conditions, ensures transparency in the relationship between the parties and the supply of a product that better meet the needs of the client.

The derivative transactions carried out by ITAÚ UNIBANCO HOLDING and its subsidiaries with clients are neutralized in order to eliminate market risks.

Most derivative contracts traded by the institution with clients in Brazil are swap, forward, option and futures contracts, which are registered at the BM&FBOVESPA or at the CETIP S.A. OTC Clearing House (CETIP). Overseas transactions are carried out with futures, forwards, options and swaps with registration mainly in the Chicago, New York and London Exchanges.  It should be emphasized that there are over-the-counter operations, but their risks are low as compared to the institutions’ total. Noteworthy is also the fact that there are no structured operations based on subprime assets and all operations are based on risk factors traded at stock exchanges.

The main risk factors of the derivatives, assumed at June 30, 2011, were related to the foreign exchange rate, interest rate, commodities, U.S. dollar coupon, Reference Rate coupon, Libor and variable income. The management of these and other market risk factors is supported by sophisticated statistical and deterministic models. Based on this management model, the institution, with the use of transactions involving derivatives, has been able to optimize the risk-return ratios, even under highly volatile situations.

Most derivatives included in the institution’s portfolio are traded at stock exchanges. The prices disclosed by stock exchanges are used for these derivatives, except in cases in which the low representativeness of price due to liquidity of a specific contract is identified. Derivatives typically priced like this are futures contracts. Likewise, there are other instruments whose quotations (fair prices) are directly disclosed by independent institutions and which are priced based on this direct information. A great part of the Brazilian government securities, highly-liquid international (public and private) securities and shares fit into this situation.

For derivatives whose prices are not directly disclosed by stock exchanges, fair prices are obtained by pricing models which use market information, deducted based on prices disclosed for higher liquidity assets. Interest and market volatility curves which provide entry data for the models are extracted from those prices. Over-the-counter derivatives, forward contracts and securities without much liquidity are in this situation.

The total value of margins pledged in guarantee was R$ 4,118,400 (R$ 5,858,459 at June 30, 2010) and was basically composed of government securities.

I - Derivatives by index

	Memorandum account Notional amount				Balance sheet account receivable / (received)(payable) / paid			Adjustment to market value (in results / stockholders’ equity)			Market value
	06/30/2011		06/30/2010		06/30/2011			06/30/2011			06/30/2011			06/30/2010
Futures contracts		375,969,757		306,053,850		53,861			(41,753	)		12,108			56,271
Purchase commitments		116,410,464		111,732,715		(63,254	)		(341	)		(63,595	)		(36,233	)
Foreign currency		11,344,141		2,587,609		(25,149	)		(1,727	)		(26,876	)		(5,814	)
Mercado Interfinanceiro		91,194,586		80,396,517		(9,571	)		110			(9,461	)		2,500
Indices		13,106,870		28,336,523		(28,529	)		1,629			(26,900	)		(33,587	)
Securities		406,431		143,499		-			(1,868	)		(1,868	)		-
Other		358,436		268,567		(5	)		1,515			1,510			668
Commitments to sell		259,559,293		194,321,135		117,115			(41,412	)		75,703			92,504
Foreign currency		21,621,832		18,479,108		12,710			(33,493	)		(20,783	)		(1,423	)
Interbank market		209,915,377		150,864,457		28,127			(76	)		28,051			15,049
Indices		23,711,622		20,736,675		77,203			(3,497	)		73,706			80,033
Securities		1,803,421		7,112		-			364			364			-
Other		2,507,041		4,233,783		(925	)		(4,710	)		(5,635	)		(1,155	)
Swap contracts						1,016,390			316,239			1,332,629			168,475
Asset position		75,513,881		63,362,829		3,163,491			342,447			3,505,938			2,394,211
Foreign currency		5,164,447		8,470,890		39,239			1,999			41,238			116,784
Interbank market		37,449,092		30,941,360		1,978,019			92,455			2,070,474			1,029,292
Fixed rate		11,952,797		7,993,783		237,933			155,024			392,957			390,812
Floating rate		873,254		1,296,859		13,301			5,444			18,745			197
Indices		19,369,832		14,557,937		893,604			86,754			980,358			854,555
Securities		100,995		5,854		18			47			65			2,468
Other		603,464		96,146		1,377			724			2,101			103
Liability position		74,497,491		63,355,372		(2,147,101	)		(26,208	)		(2,173,309	)		(2,225,736	)
Foreign currency		9,322,841		12,998,915		(338,840	)		6,424			(332,416	)		(284,197	)
Interbank market		20,238,218		21,930,759		(418,180	)		6,548			(411,632	)		(579,722	)
Fixed rate		12,883,412		5,367,524		(146,405	)		(175,782	)		(322,187	)		(390,421	)
Floating rate		3,237,936		3,124,134		(222	)		(267	)		(489	)		(15,248	)
Indices		27,040,577		19,831,478		(1,044,425	)		38,697			(1,005,728	)		(950,713	)
Securities		100,426		-		-			-			-			-
Other		1,674,081		102,562		(199,029	)		98,172			(100,857	)		(5,435	)
Option contracts		2,777,953,317		2,796,966,849		685,040			261,058			946,098			138,030
Purchase commitments – long position		1,065,312,933		726,390,047		999,121			(270,916	)		728,205			839,004
Foreign currency		16,377,483		25,712,970		257,666			(36,896	)		220,770			388,851
Interbank market		912,374,218		555,900,411		440,920			(98,567	)		342,353			255,361
Floating rate		262,022		193,084		1,630			(857	)		773			850
Indices		134,560,670		143,006,015		117,394			(59,579	)		57,815			132,599
Securities		1,427,457		1,091,554		167,869			(82,167	)		85,702			45,025
Other		311,083		486,013		13,642			7,150			20,792			16,318
Commitments to sell – long position		570,657,573		903,984,640		1,548,022			398,900			1,946,922			865,994
Foreign currency		13,253,878		18,628,045		626,031			221,026			847,057			194,398
Interbank market		471,021,224		754,252,957		70,104			(43,608	)		26,496			41,901
Fixed rate		1,568		-		64			69			133			-
Floating rate		239,052		108,396		505			(111	)		394			653
Indices		81,560,691		127,516,924		69,115			(25,293	)		43,822			96,805
Securities		3,849,843		1,320,454		773,898			243,495			1,017,393			515,140
Other		731,317		2,157,864		8,305			3,322			11,627			17,097
Purchase commitments – short position		681,175,675		459,953,731		(1,089,674	)		298,562			(791,112	)		(875,165	)
Foreign currency		10,260,501		22,929,450		(236,288	)		41,889			(194,399	)		(418,349	)
Interbank market		572,762,025		268,124,091		(460,371	)		135,515			(324,856	)		(57,075	)
Indices		96,204,957		167,516,543		(340,858	)		119,762			(221,096	)		(337,330	)
Securities		1,752,495		1,174,784		(45,192	)		1,187			(44,005	)		(53,094	)
Other		195,697		208,863		(6,965	)		209			(6,756	)		(9,317	)
Commitments to sell – short position		460,807,136		706,638,431		(772,429	)		(165,488	)		(937,917	)		(691,803	)
Foreign currency		11,784,147		21,028,895		(525,128	)		(133,810	)		(658,938	)		(359,277	)
Interbank market		350,572,124		580,914,795		(98,975	)		40,577			(58,398	)		(84,680	)
Fixed rate		1,568		-		(64	)		(69	)		(133	)		(11,833	)
Indices		95,982,615		103,295,414		(59,180	)		20,059			(39,121	)		(50,921	)
Securities		2,249,901		1,261,592		(78,866	)		(98,477	)		(177,343	)		(175,224	)
Other		216,781		137,735		(10,216	)		6,232			(3,984	)		(9,868	)
Forward contracts		14,852,331		2,494,759		1,103,600			12,994			1,116,594			507,102
Purchases receivable		332,298		883,956		223,487			(252	)		223,235			886,544
Foreign currency		48,948		-		5,422			(696	)		4,726			-
Fixed rate		162,478		179,089		162,388			88			162,476			181,800
Floating rate		53,576		704,867		53,734			-			53,734			704,744
Other		67,296		-		1,943			356			2,299			-
Purchases payable		7,263,225		-		(787,182	)		20,460			(766,722	)		(886,544	)
Foreign currency		6,933,793		-		(553,156	)		18,552			(534,604	)		-
Interbank market		137,970		-		-			(1	)		(1	)		-
Fixed rate		-		-		(164,830	)		(88	)		(164,918	)		(181,800	)
Floating rate		-		-		(53,734	)		-			(53,734	)		(704,744	)
Other		191,462		-		(15,462	)		1,997			(13,465	)		-
Sales receivable		7,145,949		1,610,803		2,122,632			(7,565	)		2,115,067			1,611,183
Foreign currency		5,240,303		-		265,496			(5,378	)		260,118			-
Interbank market		1,242		-		1,225			(1	)		1,224			-
Fixed rate		166,514		628,617		166,527			87			166,614			641,552
Floating rate		266,948		462,838		267,030			-			267,030			462,529
Other		1,470,942		519,348		1,422,354			(2,273	)		1,420,081			507,102
Sales deliverable		110,859		-		(455,337	)		351			(454,986	)		(1,104,081	)
Foreign currency		54,704		-		(6,696	)		435			(6,261	)		-
Fixed rate		-		-		(164,085	)		(87	)		(164,172	)		(641,552	)
Floating rate		-		-		(267,030	)		-			(267,030	)		(462,529	)
Other		56,155		-		(17,526	)		3			(17,523	)		-

	Memorandum account/ Notional amount				Balance sheet account receivable / (received) (payable)/ paid			Adjustments to market value (in results/ stockholders' equity)			Market value
	06/30/2011		06/30/2010		06/30/2011			06/30/2011			06/30/2011			06/30/2010
Credit derivatives		6,972,241		4,055,100		549,321			27,710			577,031			(136,245	)
Asset position		4,001,819		923,119		661,336			12,607			673,943			35,456
Foreign currency		21,196		33,232		188			862			1,050			1,831
Fixed rate		3,763,707		849,134		661,069			11,783			672,852			32,149
Floating rate		-		-		-			(2,717	)		(2,717	)		-
Securities		216,916		19,397		79			2,679			2,758			1,053
Other		-		21,356		-			-			-			423
Liability position		2,970,422		3,131,981		(112,015	)		15,103			(96,912	)		(171,701	)
Foreign currency		20,796		-		(179	)		(827	)		(1,006	)		(1,762	)
Interbank market		-		-		-			-			-			(2	)
Fixed rate		2,721,192		3,050,355		(111,427	)		18,282			(93,145	)		(168,386	)
Indices		-		1,914		-			-			-			-
Securities		228,434		29,712		(409	)		(2,352	)		(2,761	)		(1,129	)
Other		-		50,000		-			-			-			(422	)
Forwards operations		21,033,076		13,623,705		(596,448	)		(6,761	)		(603,209	)		(22,896	)
Asset position		7,516,001		6,923,889		796,878			-			796,878			193,380
Foreign currency		6,412,011		6,050,795		212,410			-			212,410			171,699
Interbank market		15,102		-		292			-			292			-
Fixed rate		611,971		231,311		575,735			-			575,735			12,587
Floating rate		476,917		550,358		8,441			-			8,441			7,788
Indices		-		82,656		-			-			-			1,306
Other		-		8,769		-			-			-			-
Liability position		13,517,075		6,699,816		(1,393,326	)		(6,761	)		(1,400,087	)		(216,276	)
Foreign currency		13,250,493		6,110,406		(813,963	)		-			(813,963	)		(202,669	)
Interbank market		10,561		7,207		(55	)		-			(55	)		(338	)
Fixed rate		-		84,088		(576,057	)		(6,761	)		(582,818	)		(4,880	)
Floating rate		256,021		360,300		(3,251	)		-			(3,251	)		(3,903	)
Indices		-		137,815		-			-			-			(4,486	)
Swap with target flow		-		70,895		-			-			-			(403	)
Asset position		-		48,375		-			-			-			40
Foreign currency		-		32,797		-			-			-			40
Interbank market		-		15,576		-			-			-			-
Fixed rate		-		2		-			-			-			-
Liability position		-		22,520		-			-			-			(443	)
Foreign currency		-		2		-			-			-			-
Interbank market		-		15,715		-			-			-			(443	)
Fixed rate		-		6,803		-			-			-			-
Target flow of Swap – Foreign currency		-		2,731,227		-			-			-			59,745
Asset position		-		2,082,687		-			-			-			175,101
Liability position		-		648,540		-			-			-			(115,356	)
Other derivative financial instruments		3,512,344		12,971,098		235,558			(81,559	)		153,999			278,708
Asset position		3,020,203		6,247,943		465,663			(45,268	)		420,395			840,762
Foreign currency		273,201		3,154,009		185,233			10,806			196,039			306,797
Interbank market		-		173,431		-			-			-			1,306
Fixed rate		-		657,187		-			-			-			353,810
Floating rate		-		24,458		-			-			-			(1,304	)
Other		2,747,002		2,238,858		280,430			(56,074	)		224,356			180,153
Liability position		492,141		6,723,155		(230,105	)		(36,291	)		(266,396	)		(562,054	)
Foreign currency		391,618		5,940,081		(161,463	)		(36,291	)		(197,754	)		(514,331	)
Interbank market		-		646,038		-			-			-			(13,706	)
Fixed rate		-		7,042		-			-			-			(1,558	)
Other		100,523		129,994		(68,642	)		-			(68,642	)		(32,459	)
				ASSETS		10,034,491			388,200			10,422,691			7,897,946
				LIABILITIES		(6,987,169	)		99,728			(6,887,441	)		(6,849,159	)
				TOTAL		3,047,322			487,928			3,535,250			1,048,787

Derivative contracts mature as follows (in days):
Clearing	0 - 30		31 - 180		181 - 365		Over 365		06/30/2011		06/30/2010
Futures		139,078,045		131,564,347		55,941,328		49,386,037		375,969,757		306,053,850
Swaps		4,136,332		15,021,277		11,035,144		42,157,637		72,350,390		61,471,501
Options		1,492,078,840		793,804,818		476,939,138		15,130,521		2,777,953,317		2,796,966,849
Forwards		2,045,722		6,588,379		4,517,695		1,700,535		14,852,331		2,494,759
Credit derivatives		84,299		1,124,508		566,147		5,197,287		6,972,241		4,055,100
Forwards		6,277,632		8,689,969		3,318,057		2,747,418		21,033,076		13,623,705
Swaps with target flow		-		-		-		-		-		21,883
Target flow of swap		-		-		-		-		-		2,731,227
Other		11,145		537,929		248,233		2,715,037		3,512,344		12,971,098

At June 30, 2011, ITAÚ UNIBANCO HOLDING FINANCEIRA did not have derivative operations in the swap with target flow and target forward.

II- Derivatives by counterparty

See below the composition of the Derivative Financial Instruments portfolio (assets and liabilities) by type of instrument, stated at cost, market value, and maturity term.

	06/30/2011																													06/30/2010
	Cost			Adjustment to market value (in results / stockholders’ equity)			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
ASSETS
Futures		53,861			(41,753	)		12,108			0.3		(7,502	)		33,341			(7,883	)		3,077			107			(9,032	)		56,271
BM&F Bovespa		51,267			(31,848	)		19,419			0.3		(8,277	)		44,090			(8,725	)		3,382			(2,019	)		(9,032	)		50,217
Financial institutions		-			(4,783	)		(4,783	)		-		-			(4,783	)		-			-			-			-			6,054
Companies		2,594			(5,122	)		(2,528	)		-		775			(5,966	)		842			(305	)		2,126			-			-
Option premiums		2,547,143			127,984			2,675,127			25.7		756,552			455,214			319,367			431,743			73,541			638,710			1,704,998
BM&F Bovespa		1,655,191			(198,213	)		1,456,978			14.0		680,612			322,905			277,954			170,663			4,844			-			797,836
Financial institutions		304,449			260,681			565,130			5.4		74,218			125,902			38,402			259,180			64,946			2,482			371,095
Companies		587,503			65,516			653,019			6.3		1,722			6,407			3,011			1,900			3,751			636,228			535,429
Individuals		-			-			-			-		-			-			-			-			-			-			638
Forwards		2,346,119			(7,817	)		2,338,302			22.4		353,289			1,132,753			248,276			91,316			129,900			382,768			2,497,727
BM&F Bovespa		1,422,333			(1,758	)		1,420,575			13.6		217,598			1,090,382			99,538			13,057			-			-			507,102
Financial institutions		116,903			(3,226	)		113,677			1.1		96,368			711			1,666			14,932			-			-			969,275
Companies		806,883			(2,833	)		804,050			7.7		39,323			41,660			147,072			63,327			129,900			382,768			1,021,350
Swaps – Adjustment receivable		3,163,491			342,447			3,505,938			33.6		277,652			369,809			545,288			447,638			621,785			1,243,766			2,394,211
BM&F Bovespa		253,154			32,308			285,462			2.7		20,816			2,207			39,917			46,531			36,664			139,327			308,148
Financial institutions		506,325			15,640			521,965			5.0		53,910			90,514			51,381			24,742			69,567			231,851			599,055
Companies		2,411,007			244,901			2,655,908			25.5		197,133			258,847			429,801			379,607			518,994			871,526			1,444,565
Individuals		(6,995	)		49,598			42,603			0.4		5,793			18,241			24,189			(3,242	)		(3,440	)		1,062			42,443
Credit derivatives		661,336			12,607			673,943			6.4		71,949			182,478			126,414			194			623			292,285			35,456
Financial institutions		485,913			7,657			493,570			4.7		71,949			182,478			126,414			194			623			111,912			35,456
Companies		175,423			4,950			180,373			1.7		-			-			-			-			-			180,373			-
Forwards		796,878			-			796,878			7.6		43,253			616,901			52,830			52,347			8,768			22,779			193,380
Financial institutions		689,343			-			689,343			6.6		32,342			590,164			22,323			38,418			292			5,804			122,756
Companies		106,701			-			106,701			1.0		10,169			26,706			30,507			13,868			8,476			16,975			69,527
Individuals		834			-			834			-		742			31			-			61			-			-			1,097
Swaps with target flow - Companies		-			-			-			-		-			-			-			-			-			-			175,141
Swaps		-			-			-			-		-			-			-			-			-			-			40
Target flow of Swap – Companies		-			-			-			-		-			-			-			-			-			-			175,101
Other – Financial institutions		465,663			(45,268	)		420,395			4.0		9			145,685			616			10,518			43,598			219,969			840,762
BM&F Bovespa		-			-			-			-		-			-			-			-			-			-			222
Financial institutions		465,663			(45,268	)		420,395			4.0		9			145,685			616			10,518			43,598			219,969			716,822
Companies		-			-			-			-		-			-			-			-			-			-			123,230
Individuals		-			-			-			-		-			-			-			-			-			-			488
Total		10,034,491			388,200			10,422,691			100.0		1,495,202			2,936,181			1,284,908			1,036,833			878,322			2,791,245			7,897,946
% per maturity term													14.3	%		28.2	%		12.3	%		9.9	%		8.4	%		26.8	%
Total at June 30, 2010		7,979,834			(81,888	)		7,897,946			100.0		1,735,512			1,135,859			831,264			829,532			1,052,112			2,313,667
% per maturity term													22.0	%		14.4	%		10.5	%		10.5	%		13.3	%		29.3	%

	06/30/2011																													06/30/2010
	Cost			Adjustment to market value (in results / stockholders' equity)			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
LIABILITIES
Option premiums		(1,862,103	)		133,074			(1,729,029	)		25.1		(364,573	)		(580,057	)		(241,904	)		(322,882	)		(201,808	)		(17,805	)		(1,566,968	)
BM&F Bovespa		(1,523,728	)		221,307			(1,302,421	)		18.9		(335,012	)		(537,044	)		(178,693	)		(110,526	)		(141,146	)		-			(855,702	)
Financial institutions		(311,858	)		(88,194	)		(400,052	)		5.8		(27,795	)		(41,396	)		(60,323	)		(200,477	)		(54,060	)		(16,001	)		(560,901	)
Companies		(26,517	)		(39	)		(26,556	)		0.4		(1,766	)		(1,617	)		(2,888	)		(11,879	)		(6,602	)		(1,804	)		(149,603	)
Individuals		-			-			-			-		-			-			-			-			-			-			(762	)
Forwards		(1,242,519	)		20,811			(1,221,708	)		17.7		(109,370	)		(104,807	)		(240,079	)		(178,756	)		(195,409	)		(393,287	)		(1,990,625	)
BM&F Bovespa		-			(1	)		(1	)		-		-			-			-			(1	)		-			-			-
Financial institutions		(68,142	)		(910	)		(69,052	)		1.0		(49,028	)		(1,390	)		(1,806	)		(12,936	)		(3,535	)		(357	)		(969,275	)
Companies		(1,174,049	)		21,776			(1,152,273	)		16.7		(60,342	)		(103,035	)		(238,273	)		(165,819	)		(191,874	)		(392,930	)		(1,021,350	)
Individuals		(328	)		(54	)		(382	)		-		-			(382	)		-			-			-			-			-
Swaps - difference payable		(2,147,101	)		(26,208	)		(2,173,309	)		31.6		(107,912	)		(75,740	)		(501,816	)		(183,346	)		(519,591	)		(784,904	)		(2,225,736	)
BM&F Bovespa		(446,012	)		56,671			(389,341	)		5.7		(8,125	)		(4,512	)		(57,884	)		(41,169	)		(124,638	)		(153,013	)		(428,288	)
Financial institutions		(314,173	)		(55,897	)		(370,070	)		5.4		(44,368	)		(5,853	)		(26,588	)		(11,933	)		(71,458	)		(209,870	)		(784,399	)
Companies		(1,369,047	)		(24,456	)		(1,393,503	)		20.2		(55,096	)		(63,876	)		(413,046	)		(120,429	)		(319,325	)		(421,731	)		(991,037	)
Individuals		(17,869	)		(2,526	)		(20,395	)		0.3		(323	)		(1,499	)		(4,298	)		(9,815	)		(4,170	)		(290	)		(22,012	)
Credit derivatives		(112,015	)		15,103			(96,912	)		1.4		(5,663	)		(3,329	)		(795	)		(421	)		(1,960	)		(84,744	)		(171,701	)
Financial institutions		(112,015	)		15,103			(96,912	)		1.4		(5,663	)		(3,329	)		(795	)		(421	)		(1,960	)		(84,744	)		(171,689	)
Companies		-			-			-			-		-			-			-			-			-			-			(12	)
Forwards		(1,393,326	)		(6,761	)		(1,400,087	)		20.3		(72,990	)		(774,769	)		(161,530	)		(171,960	)		(114,010	)		(104,828	)		(216,276	)
Financial institutions		(1,289,307	)		(6,761	)		(1,296,068	)		18.8		(69,181	)		(699,516	)		(154,041	)		(159,568	)		(108,934	)		(104,828	)		(126,068	)
Companies		(104,013	)		-			(104,013	)		1.5		(3,809	)		(75,251	)		(7,489	)		(12,388	)		(5,076	)		-			(89,631	)
Individuals		(6	)		-			(6	)		-		-			(2	)		-			(4	)		-			-			(577	)
Swaps with target flow		-			-			-			-		-			-			-			-			-			-			(115,799	)
Swaps		-			-			-			-		-			-			-			-			-			-			(443	)
Companies		-			-			-			-		-			-			-			-			-			-			(443	)
Target flow of swap - foreign currency		-			-			-			-		-			-			-			-			-			-			(115,356	)
Financial institutions		-			-			-			-		-			-			-			-			-			-			(1,516	)
Companies		-			-			-			-		-			-			-			-			-			-			(113,840	)
Other		(230,105	)		(36,291	)		(266,396	)		3.9		(921	)		(82,130	)		(7,189	)		(850	)		(44,991	)		(130,315	)		(562,054	)
BM&F Bovespa		-			-			-			-		-			-			-			-			-			-			(270	)
Financial institutions		(230,105	)		(36,291	)		(266,396	)		3.9		(921	)		(82,130	)		(7,189	)		(850	)		(44,991	)		(130,315	)		(215,378	)
Companies		-			-			-			-		-			-			-			-			-			-			(345,254	)
Individuals		-			-			-			-		-			-			-			-			-			-			(1,152	)
Total		(6,987,169	)		99,728			(6,887,441	)		100.0		(661,429	)		(1,620,832	)		(1,153,313	)		(858,215	)		(1,077,769	)		(1,515,883	)		(6,849,159	)
% per maturity term													9.6	%		23.5	%		16.7	%		12.5	%		15.6	%		22.0	%
Total at June 30, 2010		(6,837,510	)		(11,649	)		(6,849,159	)		100.0		(1,474,927	)		(411,015	)		(1,018,982	)		(1,181,778	)		(923,307	)		(1,839,150	)
% per maturity term													21.5	%		6.0	%		14.9	%		17.3	%		13.5	%		26.8	%

III - Derivatives by notional amount

See below the composition of the Derivative Financial Instruments portfolio by type of instrument, stated at their notional amounts, per trading location (organized or over-the-counter market) and counterparties.

	06/30/2011
	Futures		Swaps		Options		Forwards		Credit derivatives		Forwards		Swap with target flow		Target flow of swap		Other
BM&F Bovespa		348,988,478		15,038,141		2,746,227,292		1,585,289		-		-		-		-		-
Over-the-counter market		26,981,279		57,312,249		31,726,025		13,267,042		6,972,241		21,033,076		-		-		3,512,344
Financial institutions		3,423,682		11,778,511		25,210,515		1,446,028		6,194,423		17,293,947		-		-		3,512,344
Companies		23,557,597		42,770,478		6,515,510		11,807,892		777,818		3,699,521		-		-		-
Individuals		-		2,763,260		-		13,122		-		39,608		-		-		-
Total		375,969,757		72,350,390		2,777,953,317		14,852,331		6,972,241		21,033,076		-		-		3,512,344
Total – 06/30/2010		306,053,850		61,524,201		2,796,966,849		2,494,759		4,055,100		13,623,705		21,883		2,731,227		12,971,098

IV - Credit derivatives

See below the composition of Credit Derivatives (assets and liabilities) portfolio stated at notional amount, and effect on calculation of Required Referential Equity.

	Credit risk amount
	06/30/2011			06/30/2010
Transferred		(4,001,819	)		(847,626	)
Credit swaps whose underlying assets are:
Securities		(3,348,031	)		(845,712	)
Total return rate swaps whose underlying assets are:
Securities		(653,788	)		(1,914	)
Received		2,970,422			3,207,474
Credit swaps whose underlying assets are:
Securities		2,962,880			3,205,673
Total return rate swaps whose underlying assets are:
Securities		7,542			1,801
Total		(1,031,397	)		2,359,848

During the period, there was no occurrence of credit event related to those set forth in agreements.

According to CMN Resolution No. 3,490, which became effective on July 1, 2008 (Note 3), the effect of the calculation of the Required Referential Equity amounts to R$ 174,587 at June 30, 2011 (R$ 173,734 at June 30, 2010).

V - Accounting hedge

a) The purpose of the hedge relationship of ITAÚ UNIBANCO HOLDING is to protect the cash flows of payment of debt interest (CDB / Redeemable preferred shares) related to its variable interest rate risk (CDI / LIBOR), making the cash flow constant (fixed rate) and regardless of the variations of DI Cetip Over and LIBOR.

To protect the future cash flows of debt against exposure to variable interest rate (CDI), at June 30, 2011 ITAÚ UNIBANCO HOLDING negotiated DI Futures agreements at BM&FBOVESPA with maturity between 2011 and 2017 in the amount of R$ 44,709,254 (R$ 22,445,674 at June 30, 2010). To protect the future cash flows of debt against exposure to variable interest rate (LIBOR), at June 30, 2011 ITAÚ UNIBANCO HOLDING negotiated Swap contracts with maturity in 2015 in the amount of R$ 613,625 (R$ 708,119 at June 30, 2010). These derivative financial instruments gave rise to adjustment to market value net of tax effects recorded in stockholders’ equity of R$ 19,449 (R$ (53,183) at June 30, 2010), of which R$ (31,173 (R$ (37,681) at June 30, 2010) refers to CDB and R$ (11,724) (R$ (15,502) at June 30,) refers to Redeemable Preferred shares. The hedged items total R$ 45,643,500 (R$ 23,153,793 at June 30, 2010), of which R$ 45,029,926 (R$ 22,445,674 at June 30, 2010) are CDB with maturities between 2011 and 2017 and R$ 613,625 (R$ 708,119 at June 30, 2010) are SWAPS of redeemable preferred shares with maturity in 2015.

The gains or losses related to the accounting hedge of cash flows that we expect to recognize in Results in the following 12 months amount to R$ 651,122 (R$ 168,980 at June 30, 2010).

The effectiveness computed for hedge portfolio was in conformity with the provisions of BACEN Circular No. 3,082 of January 30, 2002.

With the purpose of extending liabilities of subordinated CDBs, ITAÚ UNIBANCO HOLDING partially discontinued the Hedge operations of Subordinated CDBs by carrying out a debt roll-over (settlement of prior operation and issue of a new operation), giving rise to an effect in result (income) of R$ 3,210.

b) The swap operations contracted in a negotiation associated with the funding and/or investment in the amount of R$ 47,890 (R$ 302,414 at June 30, 2010) are recorded at amounts restated in accordance with variations occurred in respective ratios (“curve”) and are not valued at their market value, as permitted by BACEN Circular No. 3,150/02.

VI - Realized and unrealized gain of the derivative financial instruments portfolio

	01/01 to 06/30/2011			01/01 to 06/30/2010
Swap		915,109			(247,244	)
Forwards		82,389			9,042
Futures		643,717			123,301
Options		326,342			71,689
Credit derivatives		59,366			7,438
Other		(1,066,293	)		190,699
Foreign exchange variation on investments abroad		(1,215,313	)		264,810
Total		(254,683	)		419,735

i) Changes in adjustment to market value for the period

	01/01 to 06/30/2011			01/01 to 06/30/2010
Opening balance		1,408,206			608,422
Adjustments with impact on:
Results		(442,559	)		(270,729	)
Trading securities		(199,620	)		(184,432	)
Derivative financial instruments		(242,939	)		(86,297	)
STOCKHOLDERS’ EQUITY		4,036			178,947
Available-for-sale		(82,145	)		121,832
Accounting Hedge – Derivative Financial Instruments		86,181			57,115
Futures		87,180			78,212
Swap		(999	)		(21,097	)
Closing balance		969,683			516,640
Adjustment to market value		969,683			516,640
Trading securities		52,725			140,562
Available-for-sale securities		372,711			537,692
Derivative financial instruments		544,247			(161,614	)
Trading securities		509,110			(65,530	)
Accounting hedge		35,137			(96,084	)
Futures		56,319			(68,077	)
Swap		(21,182	)		(28,007	)

For better understanding, the following table shows the unrealized gains of available-for-sale securities and held-to-maturity securities:

	06/30/2011		06/30/2010
Adjustment of available-for-sale securities – stockholders’ equity		372,711		537,692
Adjustment to held-to-maturity securities (*)		576,908		556,469
Total unrealized gain		949,619		1,094,161

(*) Includes the amount of R$ 11,215 (R$ 14,358 at June 30, 2010) regarding the adjustment to market value of securities reclassified up to December 31, 2003, not recognized in net income.

j) Sensitivity analysis (TRADING AND BANKING PORTFOLIOS)

According to the criteria for classification of operations provided for by BACEN Resolution No. 3,464, of June 26, 2007, and Circular No. 3,354, of June 27, 2007, and the New Capital Accord – Basel II, the financial instruments, included all transactions with derivatives, are separated in trading and banking portfolios. The market risk is measured according to this separation.

The sensitivity analyses shown in this report do not consider the response capacity of the risk and treasury areas, because once loss related to positions is found, risk mitigating measures are quickly taken, minimizing the possibility of significant losses. In addition, we point out that the presented results do not necessarily translate into accounting results, because the study's sole purpose is to disclose the exposure to risks and the respective protective actions, taking into account the fair value of financial instruments, irrespective of the accounting practices adopted by the institutions.

The trading portfolio consists of all transactions, including derivatives, which are held with the intention of being traded or to provide hedge to the other financial instruments of this portfolio, which do not subject to trading restrictions. These are transactions aimed at obtaining benefits from price movements, actual or expected in the short term or conduction of arbitrage.

Amount in R$ (000)
Trading portfolio	Exposures	06/30/2011 (*)
Risk factors	Risk of variation in:	Scenarios
			I		II			III
Fixed rate	Fixed rates in reais		(553	)		(13,747	)		(27,335	)
Foreign exchange coupons	Rates of foreign currency coupon		227			(5,632	)		(11,162	)
Foreign currency	Exchange variation		(8,203	)		(205,074	)		(410,148	)
Price indices	Rates of inflation coupon		(538	)		(13,293	)		(26,302	)
Reference rate	Rate of TR coupon		365			(9,206	)		(18,588	)
Shares	Share price		1,244			(31,090	)		(62,180	)
	Total without correlation		(7,458	)		(278,042	)		(555,715	)
	Total with correlation		(5,237	)		(195,255	)		(390,251	)

(*) Amounts net of tax effects

The banking portfolio comprises transactions that do not fit into the trading portfolio. It consists of transactions held with the intention of being traded in the short-term, and their respective hedges, as well as transactions intended for the active management of financial risks, which may or may not be carried out with derivative financial instruments. Accordingly, the derivatives of this portfolio are not used for speculation purposes, not generating significant economic risks to the institution.

Amount in R$ (000)
Trading and Banking portfolio	Exposures	06/30/2011 (*)
Risk factors	Risk of variation in:	Scenarios
			I		II			III
Fixed rate	Fixed rates in reais		(4,727	)		(117,800	)		(234,845	)
Foreign exchange coupons	Rates of foreign currency coupon		(859	)		(21,204	)		(41,862	)
Foreign currency	Exchange variation		(2,224	)		(55,596	)		(111,192	)
Price indices	Rates of inflation coupon		(542	)		(13,536	)		(27,055	)
Reference rate	Rate of TR coupon		(2,304	)		(56,117	)		(109,216	)
Shares	Share price		2,102			(52,555	)		(105,110	)
	Total without correlation		(8,553	)		(316,808	)		(629,280	)
	Total with correlation		(6,007	)		(222,478	)		(441,912	)

(*) Amounts net of tax effects

Scenario I: Addition of 1 base point to the fixed-rate curve, currency coupon, inflation and commodities and interest rate indices, and 1 percentage point in currency and share prices, which is based on market information (BM&F BOVESPA, Anbima, etc).

Scenario II: Shocks at 25%, both up and down, considering the largest resulting losses per risk factor;

Scenario III: Shocks at 50%, both up and down, considering the largest resulting losses per risk factor;

All derivative financial instruments engaged by ITAÚ UNIBANCO HOLDING S.A. are shown in Note 7.

NOTE 8 - LOAN, LEASE AND OTHER CREDIT OPERATIONS

a) Composition of the portfolio with credit granting characteristics

I – By type of operations and risk level

	06/30/2011																				06/30/2010
Risk levels	AA		A		B		C		D		E		F		G		H		Total		Total
Loan operations		83,292,211		97,250,213		23,815,406		13,592,973		12,493,890		2,674,890		2,211,199		1,738,901		7,674,293		244,743,976		186,174,407
Loans and discounted trade receivables		39,419,953		44,181,851		14,137,203		11,365,468		11,164,783		2,078,391		1,884,149		1,531,221		6,927,900		132,690,919		108,878,536
Financing		34,611,676		39,097,068		8,615,454		1,929,384		953,127		425,185		301,909		192,915		636,833		86,763,551		59,213,492
Farming and agribusiness financing		4,471,567		433,999		235,182		26,936		207,753		135,114		3,400		284		35,625		5,549,860		5,014,618
Real estate financing		4,789,015		13,537,295		827,567		271,185		168,227		36,200		21,741		14,481		73,935		19,739,646		13,067,761
Lease operations		4,120,154		20,111,830		3,245,052		1,851,041		1,202,229		374,377		367,674		321,977		944,905		32,539,239		42,863,916
Credit card operations		-		28,412,212		1,344,260		1,387,633		862,147		450,028		434,028		434,261		2,615,586		35,940,155		29,060,983
Advance on exchange contracts (1)		2,412,352		643,604		179,726		28,925		30,512		950		4,948		506		11,617		3,313,140		3,233,029
Other sundry receivables (2)		7,364		39,839		13,062		27,846		4,411		2,970		305,092		1,255		25,260		427,099		324,196
Total operations with credit granting characteristics		89,832,081		146,457,698		28,597,506		16,888,418		14,593,189		3,503,215		3,322,941		2,496,900		11,271,661		316,963,609		261,656,531
Endorsements and sureties (3)																				43,143,815		32,693,668
Total with endorsements and sureties		89,832,081		146,457,698		28,597,506		16,888,418		14,593,189		3,503,215		3,322,941		2,496,900		11,271,661		360,107,424		294,350,199
Total - 06/30/2010		40,714,825		125,416,425		51,659,684		15,005,028		10,216,886		4,068,517		2,682,719		1,837,698		10,054,749		261,656,531

(1) Includes Advances on Exchange Contracts and Income Receivable from Advances Granted, reclassified from Liabilities – Foreign Exchange Portfolio/Other Receivables (Note 2a);

(2) Includes Securities and Credits Receivable, Debtors for Purchase of Assets and Endorsements and Sureties paid;

(3) Recorded in Memorandum Accounts.

II - By maturity and risk level

	06/30/2011																													06/30/2010
	AA		A			B			C			D			E			F			G			H			Total			Total
	OVERDUE OPERATIONS (1) (2)
Falling due installments		-		-			3,307,774			2,536,065			2,199,980			1,318,463			1,110,566			896,942			3,214,736			14,584,526			11,871,944
01 to 30		-		-			155,958			116,839			122,906			60,006			54,478			56,070			207,697			773,954			758,879
31 to 60		-		-			126,776			98,987			97,351			52,809			49,483			42,258			176,083			643,747			645,904
61 to 90		-		-			124,316			110,225			91,305			49,533			48,003			41,148			170,235			634,765			596,905
91 to 180		-		-			353,809			297,533			274,186			149,260			138,893			116,810			486,456			1,816,947			1,530,470
181 to 365		-		-			661,647			515,062			470,486			259,975			245,503			200,508			774,725			3,127,906			2,577,030
Over 365		-		-			1,885,268			1,397,419			1,143,746			746,880			574,206			440,148			1,399,540			7,587,207			5,762,756
Overdue installments		-		-			744,765			799,960			1,267,966			915,436			1,041,870			1,073,466			5,986,787			11,830,250			10,693,952
01 to 14		-		-			26,760			57,882			53,413			30,539			24,890			21,127			86,038			300,649			234,150
15 to 30		-		-			670,319			134,298			245,051			76,392			53,134			46,344			154,864			1,380,402			1,188,727
31 to 60		-		-			47,686			571,084			307,784			158,249			113,443			89,687			285,434			1,573,367			1,288,305
61 to 90		-		-			-			26,845			623,600			159,198			178,354			116,478			311,467			1,415,942			1,179,005
91 to 180		-		-			-			9,851			38,118			467,457			629,003			758,954			1,469,164			3,372,547			3,059,675
181 to 365		-		-			-			-			-			23,601			43,046			40,876			3,457,810			3,565,333			3,551,809
Over 365		-		-			-			-			-			-			-			-			222,010			222,010			192,281
SUBTOTAL		-		-			4,052,539			3,336,025			3,467,946			2,233,899			2,152,436			1,970,408			9,201,523			26,414,776			22,565,896
SPECIFIC ALLOWANCE		-		-			(40,525	)		(100,081	)		(346,795	)		(670,170	)		(1,076,218	)		(1,379,285	)		(9,201,523	)		(12,814,597	)		(11,553,766	)
SUBTOTAL - 06/30/2010		-		-			3,235,887			2,763,842			2,729,215			1,803,792			1,886,541			1,551,531			8,595,088			22,565,896
	NON-OVERDUE OPERATIONS
Falling due installments		89,629,808		145,539,919			24,420,996			13,424,481			10,877,200			1,236,009			1,151,435			515,567			2,023,151			288,818,566			237,436,810
01 to 30		8,856,314		22,666,767			3,814,338			3,551,682			3,287,780			166,917			139,632			83,292			563,662			43,130,384			39,926,451
31 to 60		7,447,257		12,471,453			2,302,526			1,516,710			945,594			67,331			61,239			29,294			225,910			25,067,314			20,229,230
61 to 90		5,435,173		8,791,433			2,033,505			1,489,567			739,912			53,745			24,129			18,305			112,386			18,698,155			15,368,284
91 to 180		12,218,908		15,522,715			2,816,983			1,536,491			1,212,116			138,752			76,366			46,796			230,838			33,799,965			28,324,330
181 to 365		13,054,110		20,196,803			3,919,873			1,870,370			1,624,725			155,707			408,167			77,942			244,086			41,551,783			34,967,741
Over 365		42,618,046		65,890,748			9,533,771			3,459,661			3,067,073			653,557			441,902			259,938			646,269			126,570,965			98,620,774
Overdue up to 14 days		202,273		917,779			123,971			127,912			248,043			33,307			19,070			10,925			46,987			1,730,267			1,653,825
SUBTOTAL		89,832,081		146,457,698			24,544,967			13,552,393			11,125,243			1,269,316			1,170,505			526,492			2,070,138			290,548,833			239,090,635
GENERIC ALLOWANCE		-		(732,288	)		(245,450	)		(406,572	)		(1,112,524	)		(380,795	)		(585,252	)		(368,544	)		(2,070,138	)		(5,901,563	)		(4,964,810	)
SUBTOTAL - 06/30/2010		40,714,825		125,416,425			48,423,797			12,241,186			7,487,671			2,264,725			796,178			286,167			1,459,661			239,090,635
GRAND TOTAL		89,832,081		146,457,698			28,597,506			16,888,418			14,593,189			3,503,215			3,322,941			2,496,900			11,271,661			316,963,609			261,656,531
EXISTING ALLOWANCE		-		(732,288	)		(285,975	)		(534,521	)		(4,376,497	)		(1,751,258	)		(2,325,726	)		(2,496,649	)		(11,271,661	)		(23,774,575	)		(22,622,576	)
Required allowance (3)		-		(732,288	)		(285,975	)		(506,653	)		(1,459,319	)		(1,050,965	)		(1,661,470	)		(1,747,829	)		(11,271,661	)		(18,716,160	)		(16,518,576	)
Additional allowance (4)		-		-			-			(27,868	)		(2,917,178	)		(700,293	)		(664,256	)		(748,820	)		-			(5,058,415	)		(6,104,000	)
GRAND TOTAL 06/30/2010		40,714,825		125,416,425			51,659,684			15,005,028			10,216,886			4,068,517			2,682,719			1,837,698			10,054,749			261,656,531
EXISTING ALLOWANCE		-		(711,149	)		(1,544,626	)		(1,499,003	)		(3,064,045	)		(2,033,853	)		(1,877,636	)		(1,837,515	)		(10,054,749	)		(22,622,576	)
Required allowance (3)		-		(627,082	)		(516,598	)		(450,152	)		(1,021,690	)		(1,220,556	)		(1,341,360	)		(1,286,389	)		(10,054,749	)		(16,518,576	)
Additional allowance (4)		-		(84,067	)		(1,028,028	)		(1,048,851	)		(2,042,355	)		(813,297	)		(536,276	)		(551,126	)		-			(6,104,000	)

(1) Operations with overdue installments for more than 14 days or under responsibility of bankruptcy or in process of bankruptcy companies;

(2) The balance of non-accrual operations amounts to R$ 17,374,356 (R$ 14,544,629 at 06/30/2010);

(3) The policy of not using "AA" ratings for individuals was maintained. As a consequence, all loan operations with clients classified in these segments are charged by recording a provision upon the granting of loan;

(4) According to BACEN's request, it is classified into risk level to show the additional amounts found calculated to maintain the strength necessary for absorbing possible increases in default expected in history of scenarios of losses incurred.

III – By business sector

	06/30/2011		%		06/30/2010		%
PUBLIC SECTOR		1,590,205		0.5		1,468,633		0.6
Generation, transmission and distribution of electric energy		532,643		0.2		684,121		0.3
Chemical and petrochemical		239,607		0.1		299,110		0.1
Other		817,955		0.3		485,402		0.2
PRIVATE SECTOR		315,373,404		99.5		260,187,898		99.4
COMPANIES		172,474,531		54.4		142,170,847		54.3
INDUSTRY AND COMMERCE		92,313,724		29.1		73,372,118		28.0
Food and beverage		15,150,956		4.8		11,371,099		4.3
Autoparts and accessories		4,776,266		1.5		3,019,835		1.2
Agribusiness capital assets		972,988		0.3		762,308		0.3
Industrial capital assets		5,657,693		1.8		4,460,083		1.7
Pulp and paper		2,206,401		0.7		1,990,226		0.8
Distribution of fuels		2,031,825		0.6		1,723,580		0.7
Electrical and electronic		6,973,660		2.2		5,926,531		2.3
Pharmaceuticals		2,551,971		0.8		1,698,810		0.6
Fertilizers, insecticides and crop protection		1,406,900		0.4		1,217,642		0.5
Tobacco		442,158		0.1		545,447		0.2
Import and export		2,402,836		0.8		1,670,363		0.6
Hospital care materials and equipment		1,006,673		0.3		846,848		0.3
Construction material		4,547,933		1.4		3,905,449		1.5
Steel and metallurgy		6,929,562		2.2		5,883,541		2.2
Wood and furniture		2,842,774		0.9		2,418,054		0.9
Chemical and petrochemical		5,838,076		1.8		5,661,127		2.2
Supermarkets		1,270,814		0.4		970,454		0.4
Light and heavy vehicles		6,785,598		2.1		5,466,366		2.1
Clothing		8,513,980		2.7		6,203,257		2.4
Other - Commerce		5,204,544		1.6		4,433,316		1.7
Other - Industry		4,800,116		1.5		3,197,782		1.2
SERVICES		63,315,471		20.0		54,248,546		20.7
Heavy construction (constructors)		3,530,706		1.1		3,225,372		1.2
Financial		4,992,126		1.6		5,865,707		2.2
Generation, transmission and distribution of electric energy		4,927,225		1.6		5,474,449		2.1
Holding company		2,906,897		0.9		2,636,451		1.0
Real estate agents		10,364,269		3.3		8,208,250		3.1
Media		2,800,734		0.9		2,348,263		0.9
Service companies		4,834,122		1.5		3,778,273		1.4
Health care		1,662,220		0.5		1,505,013		0.6
Telecommunications		1,037,181		0.3		990,272		0.4
Transportation		13,646,940		4.3		11,009,075		4.2
Other services		12,613,051		4.0		9,207,421		3.5
PRIMARY SECTOR		13,946,431		4.4		12,795,737		4.9
Agribusiness		12,230,139		3.9		10,963,970		4.2
Mining		1,716,292		0.5		1,831,767		0.7
Other Companies		2,898,905		0.9		1,754,446		0.7
INDIVIDUALS		142,898,873		45.0		118,017,051		45.1
Credit cards		35,405,232		11.2		28,841,919		11.0
Consumer loans/overdraft		33,610,209		10.6		25,469,188		9.7
Real estate financing		13,742,350		4.3		8,613,138		3.3
Vehicles		60,141,082		19.0		55,092,806		21.1
GRAND TOTAL		316,963,609		100.0		261,656,531		100.0

b) Credit concentration

Loan, lease and other credit operations (*)	06/30/2011				06/30/2010
	Risk		% of Total		Risk		% of Total
Largest debtor		2,356,061		0.7		2,304,976		0.8
10 largest debtors		18,474,353		5.1		15,677,359		5.3
20 largest debtors		30,797,931		8.6		25,389,296		8.6
50 largest debtors		51,178,478		14.2		42,482,117		14.3
100 largest debtors		67,945,807		18.9		57,425,095		19.4
Loan, lease and other credit operations and securities of companies and financial institutions (*)	06/30/2011				06/30/2010
	Risk		% of Total		Risk		% of Total
Largest debtor		4,825,640		1.2		5,064,341		1.5
10 largest debtors		28,509,271		7.1		25,854,835		7.8
20 largest debtors		46,537,738		11.6		39,856,746		12.0
50 largest debtors		74,105,201		18.4		61,906,226		18.7
100 largest debtors		96,164,675		23.9		80,550,266		24.3

(*) The amounts include endorsements and sureties.

c) Changes in allowance for loan losses

	01/01 to 06/30/2011			01/01 to 06/30/2010
Opening balance		(22,018,217	)		(23,702,735	)
Net increase for the period		(9,487,170	)		(7,764,528	)
Required by Resolution No. 2,682/99		(8,960,150	)		(7,764,528	)
Additional (3)		(527,020	)		-
Write-Off		7,730,812			8,844,687
Closing balance		(23,774,575	)		(22,622,576	)
Required by Resolution No. 2,682/99		(18,716,160	)		(16,518,576	)
Specific allowance (1)		(12,814,597	)		(11,553,766	)
Generic allowance (2)		(5,901,563	)		(4,964,810	)
Additional allowance (3)		(5,058,415	)		(6,104,000	)

(1) Operations with overdue installments for more than 14 days or under responsibility of bankruptcy or in process of bankruptcy companies;

(2) For operations not covered in the previous item due to the classification of the client or operation;

(3) As from the first half of 2011, it refers to the provision in excess of the minimum required percentage by CMN Resolution No. 2,682 of December 21, 1999, based on the expected loss methodology, adopted in the institution’s credit risk management, which also considers the potential losses in revolving credit.

In 2010, the need for additional allowance for loan losses was reduced in view of the new Basel III guidelines, which determined that the counter-cyclical effects be buffered in the base of capital.

At June 30, 2011, the balance of the allowance in relation to the loan portfolio is equivalent to 7.5% (8.6% at 06/30/2010).

d) Recovery and renegotiation of credits

I - Composition of the result of allowance for loan losses

	01/01 to 06/30/2011			01/01 to 06/30/2010
Expenses for allowance for loan losses		(9,487,170	)		(7,764,528	)
Income from recovery of credits written off as loss		2,599,605			1,784,625
Result of loan losses		(6,887,565	)		(5,979,903	)
II- Renegotiated credits
	06/30/2011			06/30/2010
Renegotiated credits		11,997,248			8,644,464
Allowance for loan losses		(4,616,560	)		(4,273,173	)
(%)		38.5			49.4

e) Restricted operations on assets

We present below information related to the restricted operations on assets, in accordance with CMN Resolution No. 2,921, of January 17, 2002.

	06/30/2011										01/01 to 06/30/2011
	0 - 30		31 - 180		181 - 365		Over 365		Total		Income (expenses)
Restricted operations on assets
Loan operations		394		13,689		103,813		21,856		139,752		(7,155	)
Liabilities - restricted operations on assets
Foreign borrowings through securities		394		13,689		103,813		21,856		139,752		7,168
Net revenue from restricted operations												13

At June 30, 2011, there were no balances in default.

f) Sales operations or transfers of financial assets

In compliance with Resolution No. 3,809, of October 28, 2009, the amount of sales operations or transfers of financial assets where the entity significantly retained the risks and benefits is R$ 31,665, composed exclusively of loan operations and receivables assigned with joint obligation.

g) Credit assignment

In the first half of 2011, credits were assigned without joint obligation, supported by the provisions of CMN Resolution No. 2,836, of May 30, 2001; those related Loan Portfolio with Related Parties amounted to R$ 63,714, without effect on consolidated income; and those with Non-Related Parties amounted to R$ 1,437,960, with an effect of (R$ 78) in income.

NOTE 9 - FOREIGN EXCHANGE PORTFOLIO

	06/30/2011			06/30/2010
ASSETS – OTHER RECEIVABLES		24,869,496			18,237,735
Exchange purchase pending settlement – foreign currency		14,826,053			11,514,878
Bills of exchange and term documents – foreign currency		41			42
Exchange sale rights – local currency		10,489,907			7,167,949
(Advances received) – local currency		(446,505	)		(445,134	)
LIABILITIES – OTHER LIABILITIES (Note 2a)		25,458,427			18,792,956
Exchange sales pending settlement – foreign currency		10,318,969			7,063,187
Liabilities from purchase of foreign currency – local currency		15,135,534			11,724,703
Other		3,924			5,066
MEMORANDUM ACCOUNTS		467,841			691,786
Outstanding import credits – foreign currency		451,342			678,920
Confirmed export credits – foreign currency		16,499			12,866

NOTE 10 – FUNDING AND BORROWINGS AND ONLENDING

a) Summary

	06/30/2011												06/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Deposits		108,032,811		26,323,478		12,528,807		62,029,119		208,914,215		39.4		189,670,659		43.8
Deposits received under securities repurchase agreements		86,818,606		9,859,041		12,373,770		88,812,400		197,863,817		37.3		157,279,165		36.3
Funds from acceptances and issuance of securities		3,514,762		10,153,821		3,628,477		14,999,696		32,296,756		6.1		18,886,592		4.4
Borrowings and onlending		2,818,274		12,462,965		11,445,198		26,220,511		52,946,948		10.0		38,005,193		8.8
Subordinated debt (*)		61,252		891,123		8,201,188		28,673,229		37,826,792		7.1		28,966,446		6.7
TOTAL		201,245,705		59,690,428		48,177,440		220,734,955		529,848,528				432,808,055
% per maturity term		38.0		11.3		9.1		41.7
TOTAL - 06/30/2010		166,951,830		38,893,438		37,805,722		189,157,065		432,808,055
% per maturity term		38.6		9.0		8.7		43.7

(*) Includes R$ 616,299 (R$ 711,167 at June 30, 2010) of Redeemable Preferred Shares classified under Minority Interest in Balance Sheet.

b) Deposits

	06/30/2011												06/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Demand deposits		24,463,040		-		-		-		24,463,040		11.7		25,286,290		13.3
Savings accounts		60,008,457		-		-		-		60,008,457		28.7		51,851,801		27.3
Interbank		905,040		1,344,689		228,474		323,987		2,802,190		1.3		2,271,563		1.2
Time deposits		22,656,274		24,978,789		12,300,333		61,705,132		121,640,528		58.2		109,143,418		57.5
Other deposits		-		-		-		-		-		0.0		1,117,587		0.6
TOTAL		108,032,811		26,323,478		12,528,807		62,029,119		208,914,215				189,670,659
% per maturity term		51.7		12.6		6.0		29.7
TOTAL - 06/30/2010		98,325,633		13,941,734		11,853,639		65,549,653		189,670,659
% per maturity term		51.8		7.4		6.2		34.6

In ITAÚ UNIBANCO’s portfolio is composed of interbank deposits in the amount of R$ 4,012,223 (R$ 3,177,246 at June 30, 2010) with maturity over 365 days.

c) Deposits received under securities repurchase agreements

	06/30/2011												06/30/2010
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Own portfolio		45,054,313		9,356,827		12,267,461		77,181,975		143,860,576		72.7		101,005,215		64.2
Government securities		35,537,737		357,981		25,759		14,101		35,935,578		18.2		14,456,077		9.2
Private securities		-		-		-		-		-		0.0		105,641		0.1
Own issue		4,993,682		8,529,579		12,034,669		76,621,936		102,179,866		51.6		82,625,370		52.5
Foreign		4,522,894		469,267		207,033		545,938		5,745,132		2.9		3,818,127		2.4
Third-party portfolio		37,614,293		10,830		-		-		37,625,123		19.0		42,456,638		27.0
Free portfolio		4,150,000		491,384		106,309		11,630,425		16,378,118		8.3		13,817,312		8.8
TOTAL		86,818,606		9,859,041		12,373,770		88,812,400		197,863,817				157,279,165
% per maturity term		43.9		5.0		6.3		44.8
TOTAL - 06/30/2010		63,663,385		11,702,544		16,760,302		65,152,934		157,279,165
% per maturity term		40.5		7.4		10.7		41.4

d) Funds from acceptance and issuance of securities

	06/30/2011												06/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
FUNDS FROM BILLS:		1,726,718		8,061,206		1,627,291		8,103,847		19,519,062		60.4		9,954,763		52.7
of real estate loans		1,489,338		7,830,971		723,858		1,305,889		11,350,056		35.1		5,895,352		31.2
Financial		-		-		566,328		5,088,981		5,655,309		17.5		515,472		2.8
Bill of credit related to agribusiness		228,798		219,530		320,318		1,492,536		2,261,182		7.0		3,081,868		16.3
Mortgage notes		8,582		10,705		16,787		216,441		252,515		0.8		462,071		2.4
DEBENTURES		-		28,764		-		1,012,948		1,041,712		3.2		2,630,863		13.9
FOREIGN BORROWINGS AND SECURITIES		1,788,044		2,063,851		2,001,186		5,882,901		11,735,982		36.3		6,300,966		33.4
Trade Related – issued abroad - Structure Note Issued		62,229		436,717		637,168		1,115,166		2,251,280		7.0		755,933		4.0
Non-Trade Related – Issued abroad		1,725,815		1,627,134		1,364,018		4,767,735		9,484,702		29.4		5,545,033		29.4
Brazil Risk Note Programme		29,122		350,818		224,391		2,519,560		3,123,891		9.7		2,591,714		13.7
Euro Certificates of Deposits		1,210,577		1,171,026		640,330		24,686		3,046,619		9.4		368,959		2.0
Euro Medium Term Note Programme		462,796		31,564		390,677		254,612		1,139,649		3.5		523,769		2.8
Structure Note Issued		10,922		4,403		2,305		1,074,051		1,091,681		3.4		-		-
Eurobonds		6,327		17,250		60		751,885		775,522		2.4		560,035		3.0
Fixed Rate Notes		5,761		51,268		36,762		127,529		221,320		0.7		1,097,458		5.8
Medium Term Note		310		805		69,493		15,412		86,020		0.3		155,512		0.8
Other		-		-		-		-		-		-	247,586			1.3
TOTAL		3,514,762		10,153,821		3,628,477		14,999,696		32,296,756				18,886,592
% per maturity term		10.9		31.4		11.2		46.5
TOTAL - 06/30/2010		2,845,345		6,500,654		1,987,014		7,553,580		18,886,592
% per maturity term		15.1		34.4		10.5		40.0

ITAÚ UNIBANCO HOLDING’s portfolio is composed of Brazil Risk Note Programme with maturity from 31 to 180 days amounting to R$ 5,542  and with maturity over 365 days amounting to R$ 500,000, totaling R$ 505,542.

e)       Borrowings and onlending

	06/30/2011												06/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
BORROWINGS		2,058,089		6,841,925		7,239,987		2,529,933		18,669,934		35.3		13,255,830		34.9
Domestic		457,126		168,707		2,098,599		6,560		2,730,992		5.2		1,338,396		3.5
Foreign (*)		1,600,963		6,673,218		5,141,388		2,523,373		15,938,942		30.1		11,917,434		31.4
ONLENDING		760,185		5,621,040		4,205,211		23,690,578		34,277,014		64.7		24,749,363		65.1
Domestic – official institutions		760,185		5,616,639		4,200,898		23,203,965		33,781,687		63.8		24,470,495		64.4
BNDES		234,858		1,196,999		1,305,274		6,916,283		9,653,414		18.2		9,732,667		25.6
FINAME		517,101		4,360,975		2,801,853		16,076,326		23,756,255		44.9		14,394,086		37.9
Other		8,226		58,665		93,771		211,356		372,018		0.7		343,742		0.9
Foreign		-		4,401		4,313		486,613		495,327		0.9		278,868		0.7
TOTAL		2,818,274		12,462,965		11,445,198		26,220,511		52,946,948				38,005,193
% per maturity term		5.3		23.5		21.6		49.5
TOTAL - 06/30/2010		2,103,971		6,697,893		7,202,098		22,001,231		38,005,193
% per maturity term		5.5		17.6		19.0		57.9

(*)       Foreign borrowings are basically represented by foreign exchange transactions related to export pre-financing and import financing.

f) Subordinated debt

Funding obtained through issuance of subordinated debt, in accordance with the conditions determined by CMN Resolution No. 3,444, of 02/28/2007, and amendments established by CMN Resolution No. 3,532, of 01/31/2008, is as follows:

	06/30/2011																06/30/2010
	0-30		31-180			181-365		Over 365			Total			%			Total			%
CDB		-		-			8,198,392		14,997,446			23,195,838			61.3			24,482,092			84.5
Financial Treasury Bills		-		-			-		7,769,867			7,769,867			20.5			-			-
Euronotes		49,557		885,812			-		4,273,498			5,208,867			13.8			2,760,367			9.4
Bonds		-		2,861			2,796		269,789			275,446			0.7			132,301			0.5
Eurobonds		11,695		-			-		780,550			792,245			2.1			914,246			3.2
(-) Transaction costs incurred (Note 4b)		-		(224	)		-		(31,546	)		(31,770	)		(0.1	)		(33,727	)		(0.1	)
TOTAL OTHER LIABILITIES		61,252		888,449			8,201,188		28,059,604			37,210,493						28,255,279
Redeemable preferred shares		-		2,674			-		613,625			616,299			1.6			711,167			2.5
GRAND TOTAL		61,252		891,123			8,201,188		28,673,229			37,826,792						28,966,446
% per maturity term		0.2		2.4			21.7		75.8
TOTAL - 06/30/2010		13,496		50,613			2,670		28,899,667			28,966,446
% per maturity term		-		0.2			-		99.8

Description
Name of security	Issue	Maturity	Return p.a.			Principal R$
Subordinated euronotes	2nd half of 2001	August 2011		10.00	%		457,465
Subordinated euronotes	August 2001	August 2011		4.25	%		625,008
Subordinated CDB	March 2007	April 2012	103.5% of CDI				3,913,184
Subordinated CDB	May 2007	May 2012	104% of CDI				1,301,065
Subordinated CDB	July 2007	July 2012	CDI + 0.38%				422,000
Subordinated CDB	August 2007	August 2012	CDI + 0.38%				200,000
Subordinated CDB	October 2007	October 2012	IGPM + 7.31%				160,850
Subordinated CDB	October 2007	October 2012	IGPM + 7.35%				130,000
Subordinated CDB	October 2007	October 2012	103.8% of CDI				93,000
Subordinated CDB	October 2007	October 2012	CDI + 0.45%				400,000
Subordinated CDB	November 2007	November 2012	CDI + 0.35%				2,410
Subordinated CDB	December 2002	December 2012	102.5% of CDI				200,000
Subordinated CDB	January 2008	February 2013	CDI + 0.50%				153,430
Subordinated CDB	February 2008	February 2013	CDI + 0.50%				998,853
Subordinated CDB	1st quarter 2008	1st quarter 2013	CDI + 0.60%				633,742
Subordinated CDB	2nd quarter 2008	2nd quarter 2013	106% of CDI				29,000
Subordinated CDB	2nd quarter 2008	2nd quarter 2013	107% of CDI				19,401
Subordinated CDB	November 2003	November 2013	102% of CDI				40,000
Subordinated CDB	May 2007	May 2014	CDI + 0.35%				1,804,500
Subordinated CDB	August 2007	August 2014	CDI + 0.46%				50,000
Subordinated CDB	October 2007	October 2014	IGPM + 7.35%				33,200
Subordinated CDB	November 2008	October 2014	112% of CDI				1,000,000
Subordinated CDB	December 2007	December 2014	CDI + 0.60%				10,000
Preferred shares	December 2002	March 2015		3.04	%		1,388,841
Subordinated CDB	January 2010	November 2015	113% of CDI				50,000
Subordinated bonds	December 2005	December 2015		1.42	%		193,834
Subordinated CDB	3rd quarter 2008	3rd quarter 2015	119.8% of CDI				400,000
Subordinated CDB	January 2010	January 2016	114% of CDI				500,000
Subordinated CDB	1st quarter 2010	1st quarter 2016	110% of CDI				82,880
Subordinated CDB	1st quarter 2010	1st quarter 2016	111% of CDI				33,400
Subordinated CDB	1st quarter 2010	1st quarter 2016	113% of CDI				2,102,988
Subordinated CDB	March 2010	March 2016	IPCA + 7.33%				122,500
Subordinated financial bills	August 2010	August 2016	100% of CDI + 1.36%				364,700
Subordinated financial bills	August 2010	August 2016	112% of CDI				500
Subordinated financial bills	August 2010	August 2016	100% of CDI + 1.36%				300
Subordinated financial bills	September 2010	September 2016	112.5% of CDI				15,600
Subordinated financial bills	October 2010	October 2016	112% of CDI				50,000
Subordinated financial bills	3rd quarter 2010	3rd  quarter 2015	112% of CDI				1,857,900
Subordinated CDB (1)	December 2006	December 2016	CDI + 0.47%				465,835
Subordinated financial bills	December 2010	December 2016	100% of IPCA + 7.00%				30,000
Subordinated CDB	March 2010	March 2017	IPCA + 7.45%				366,830
Subordinated financial bills	March 2011	March 2017	112% of CDI				1,145,000
Subordinated financial bills	March 2011	March 2017	100% of CDI + 1.52%				856,000
Subordinated financial bills	March 2011	March 2017	100% of CDI + 1.45%				186,000
Subordinated financial bills	March 2011	March 2017	100% of CDI + 1.52%				352,000
Subordinated financial bills	March 2011	March 2017	100% of IPCA + 7.71%				63,000
Subordinated financial bills	April 2011	March 2017	100% of CDI + 1.52%				51,000
Subordinated financial bills	April 2011	March 2017	100% of CDI + 1.45%				1,000
Subordinated financial bills	April 2011	April 2017	100% of IPCA + 7.00%				5,000
Subordinated financial bills	April 2011	April 2017	100% of CDI + 1.43%				60,000
Subordinated financial bills	April 2011	April 2017	100% of CDI + 1.44%				31,000
Subordinated financial bills	May 2011	May 2017	100% of IPCA + 7.61%				50,000
Subordinated financial bills	May 2011	May 2017	112% of CDI				804,000
Subordinated financial bills	May 2011	May 2017	100% of CDI + 1.41%				500,000
Subordinated financial bills	May 2011	May 2017	100% of CDI + 1.48%				704,000
Subordinated financial bills	May 2011	May 2017	100% of CDI + 1.42%				78,000
Subordinated financial bills	May 2011	May 2017	100% of CDI + 1.40%				20,000
Subordinated financial bills	June 2011	June 2017	100% of CDI + 1.40%				22,000
Subordinated financial bills	June 2011	June 2017	112% of CDI				11,000
Subordinated financial bills	June 2011	June 2017	100% of IPCA + 7.42%				27,000
Subordinated financial bills	June 2011	June 2017	100% of IPCA + 7.07%				15,000
Subordinated financial bills	September 2010	September 2017	100% of IPCA + 7.20%				160,000
Subordinated financial bills	September 2010	September 2017	100% of IPCA + 7.0%				20,000
Subordinated financial bills	October 2010	October 2017	100% of IPCA + 6.95%				20,000
Subordinated financial bills	October 2010	October 2017	100% of IPCA + 6.97%				6,000
Subordinated financial bills	February 2011	February 2018	100% of IPCA + 7.00%				42,000
Subordinated financial bills	June 2011	June 2018	100% of IPCA + 7.53%				5,000
Subordinated financial bills	June 2011	June 2018	100% of IPCA + 7.70%				25,000
Subordinated euronotes	April 2010	April 2020		6.20	%		1,730,600
Subordinated euronotes	September 2010	January 2021		5.75	%		1,694,200
Subordinated euronotes	January 2011	January 2021		5.75	%		418,350
Subordinated euronotes	June 2011	December 2021		6.20	%		780,550
Subordinated bonds	April 2008	April 2033		3.50	%		73,361
Subordinated bonds	October 2008	October 2033		4.50	%		67,766
Eurobonds -Perpetual Non-cumulative Junior Subordinated Securities (2)	July 2005	Not determined		8.70	%		1,195,250

(1)  Subordinated CDBs may be redeemed from November 2011;

(2)  The debt may be fully redeemed only at the option of the issuer from July 29, 2010 or at each subsequent payment.

ITAÚ UNIBANCO HOLDING’s portfolio is composed of Subordinated Euronotes with maturity from 0 to 30 days in the amount of R$ 49,557, from 91 to 180 in the amount of R$ 21,777 (R$ 23,580 at June 30, 2010), and over 365 days in the amount of R$ 4,252,638 (R$ 1,784,461 at June 30, 2010), totaling R$ 4,323,972 (R$ 1,808,041 at June 30, 2010).

NOTE 11 - INSURANCE, PENSION PLAN AND CAPITALIZATION OPERATIONS

a) Composition of the technical provisions per segment

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	06/30/2011		06/30/2010		06/30/2011		06/30/2010		06/30/2011		06/30/2010		06/30/2011		06/30/2010
Mathematical provision of benefits to be granted and benefits granted		19,971		31,287		55,344,077		45,056,428		-		-		55,364,048		45,087,715
Unearned premiums		2,823,931		2,442,031		-		-		-		-		2,823,931		2,442,031
Unsettled claims		2,252,802		2,099,297		-		-		-		-		2,252,802		2,099,297
Financial surplus		1,504		1,772		469,201		443,380		-		-		470,705		445,152
IBNR		697,614		640,960		10,842		12,665		-		-		708,456		653,625
Premium deficiency		286,566		255,870		-		-		-		-		286,566		255,870
Insufficient contribution		319		130		645,950		519,202		-		-		646,269		519,332
Mathematical provision for redemptions		-		-		-		-		2,706,382		2,352,450		2,706,382		2,352,450
Raffle contingency		-		-		-		-		27,052		23,881		27,052		23,881
Other		18,913		65,420		184,893		282,982		34,073		25,686		237,879		374,088
TOTAL		6,101,620		5,536,767		56,654,963		46,314,657		2,767,507		2,402,017		65,524,090		54,253,441

b) Assets Guaranteeing Technical Provisions - SUSEP

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	06/30/2011		06/30/2010		06/30/2011		06/30/2010		06/30/2011		06/30/2010		06/30/2011		06/30/2010
Interbank investments – money market		972,123		1,361,225		1,087,394		1,004,823		1,015,617		1,065,104		3,075,134		3,431,152
Securities and derivative financial instruments		2,467,794		1,722,832		55,847,049		45,310,735		1,792,299		1,379,929		60,107,142		48,413,496
PGBL/VGBL fund quotas (1)		-		-		51,123,685		41,190,644		-		-		51,123,685		41,190,644
Government securities - domestic		-		-		35,605,229		29,110,336		-		-		35,605,229		29,110,336
National Treasury Bills		-		-		21,749,971		10,250,261		-		-		21,749,971		10,250,261
National Treasury Notes		-		-		11,930,052		17,428,873		-		-		11,930,052		17,428,873
Financial Treasury Bills		-		-		1,925,206		1,431,202		-		-		1,925,206		1,431,202
Corporate securities		-		-		15,335,261		10,584,749		-		-		15,335,261		10,584,749
Bank deposit certificates		-		-		6,348,369		5,143,516		-		-		6,348,369		5,143,516
Debentures		-		-		4,575,039		3,357,850		-		-		4,575,039		3,357,850
Shares		-		-		1,939,574		1,123,951		-		-		1,939,574		1,123,951
Promissory Notes		-		-		12,292		2,627		-		-		12,292		2,627
Financial Treasury Bills		-		-		2,458,453		955,448		-		-		2,458,453		955,448
Securitized real estate loans		-		-		1,534		1,357		-		-		1,534		1,357
PGBL/VGBL fund quotas		-		-		58,337		1,419,979		-		-		58,337		1,419,979
Derivative financial instruments		-		-		54,635		46,256		-		-		54,635		46,256
Accounts receivable / (payable)		-		-		70,223		29,324		-		-		70,223		29,324
Other assets		2,467,794		1,722,832		4,723,364		4,120,091		1,792,299		1,379,929		8,983,457		7,222,852
Government		774,851		872,886		3,522,078		3,097,876		79,482		44,663		4,376,411		4,015,425
Private		1,692,943		849,946		1,201,286		1,022,215		1,712,817		1,335,266		4,607,046		3,207,427
Receivables from insurance and reinsurance operations (2)		2,700,935		2,520,921		-		-		-		-		2,700,935		2,520,921
Credit rights		957,168		739,848		-		-		-		-		957,168		739,848
Reinsurance		1,743,767		1,781,073		-		-		-		-		1,743,767		1,781,073
Escrow deposits for loss		39,574		37,662		-		-		-		-		39,574		37,662
TOTAL		6,180,426		5,642,640		56,934,443		46,315,558		2,807,916		2,445,033		65,922,785		54,403,231

(1) The PGBL and VGBL plans securities portfolios, the ownership and embedded risks of which are the customer’s responsibility, are recorded as securities – trading securities, with a contra-entry to long-term liabilities in Pension Plan Technical Provisions account, as determined by SUSEP.

(2) Recorded under Other receivables and Other assets.

c) Financial and operating income per segment

	INSURANCE						PENSION PLAN						CAPITALIZATION						TOTAL
	01/01 to 06/30/2011			01/01 to 06/30/2010			01/01 to 06/30/2011			01/01 to 06/30/2010			01/01 to 06/30/2011			01/01 to 06/30/2010			01/01 to 06/30/2011			01/01 to 06/30/2010
Financial income		127,688			91,411			90,309			62,570			62,616			33,336			280,613			187,317
Financial income		168,956			109,666			2,271,738			1,466,439			154,753			102,063			2,595,447			1,678,168
Financial expenses		(41,268	)		(18,255	)		(2,181,429	)		(1,403,869	)		(92,137	)		(68,727	)		(2,314,834	)		(1,490,851	)
Operating income		965,507			860,948			13,851			28,666			234,980			222,330			1,214,338			1,111,944
Premiums and contributions		2,707,934			2,459,591			5,382,450			3,832,635			926,125			843,627			9,016,509			7,135,853
Changes in technical provisions		(367,671	)		(158,544	)		(5,354,504	)		(3,784,339	)		(10,153	)		29,656			(5,732,328	)		(3,913,227	)
Expenses for claims, benefits, redemptions and raffles		(805,140	)		(853,037	)		(12,396	)		(16,480	)		(678,893	)		(644,906	)		(1,496,429	)		(1,514,423	)
Selling expenses		(480,487	)		(484,818	)		(1,483	)		(3,572	)		(1,829	)		(5,983	)		(483,799	)		(494,373	)
Other revenues and expenses		(89,129	)		(102,244	)		(216	)		422			(270	)		(64	)		(89,615	)		(101,886	)
Financial and operating income		1,093,195			952,359			104,160			91,236			297,596			255,666			1,494,951			1,299,261

NOTE 12 - CONTINGENT ASSETS AND LIABILITIES AND LEGAL LIABILITIES – TAX AND SOCIAL SECURITY

In the ordinary course of its businesses, ITAÚ UNIBANCO HOLDING CONSOLIDATED is involved in contingencies that may be classified as follows.

a) Contingent Assets: there are no contingent assets recorded.

b) Contingent Liabilities: the criteria to quantify contingencies are adequate in relation to the specific characteristics of civil, labor and tax lawsuits portfolios, as well as other risks.

- Civil lawsuits

Collective lawsuits (related to claims considered similar and which each individual amount is not considered significant): contingencies are determined on a monthly basis and the expected amount of losses is accrued according to statistical references that take into account the type of lawsuit and the characteristics of the legal body (Small Claims Court or Regular Court).

Individual lawsuits (related to claims with unusual characteristics or involving significant amounts): determined from time to time, based on the amount claimed and the likelihood of loss, which, in turn, is estimated according to the “de facto” and “de jure” characteristics related to such lawsuit. The amounts of losses which likelihood of loss is considered probable are accrued.

Contingencies usually arise from revision of contracts and compensation for property damage and pain and suffering; most of these lawsuits are filed in the Small Claims Court and therefore limited to 40 minimum monthly wages. The bank is also party to specific lawsuits over the charging of understated inflation adjustment to savings accounts in connection with economic plans.

The case law at the Federal Supreme Court is favorable to banks in relation to an economic phenomenon similar to savings, as in the case of adjustment to time deposits and contracts in general. Additionally, the Superior Court of Justice has recently decided that the term for filing public civil actions over understated inflation is five years. In view of such decision, some of the lawsuits may be dismissed because they were filed after the five-year period.

In the accounting books no amount is recognized in relation to Civil Lawsuits which likelihood of loss is considered possible, which total estimated risk is R$ 771,882, the main natures of these lawsuits are as follows.

- Labor claims

Collective lawsuits (related to claims considered similar and which each individual amount is not considered significant): the expected amount of loss is determined and accrued monthly by the moving average of payments in relation to lawsuits settled in the last 12 months, plus the average cost of fees. These are adjusted to the amounts deposited as guarantee for their execution when realized.

Individual lawsuits (related to claims with unusual characteristics or involving significant amounts): determined from time to time, based on the amount claimed and the likelihood of loss, which, in turn, is estimated according to the “de facto” and “de jure” characteristics related to such lawsuit. The amounts of losses which likelihood of loss is considered probable are accrued.

Contingencies are related to lawsuits in which alleged labor rights based on labor legislation specific to the related profession, such as overtime, salary equalization, reinstatement, transfer allowance, pension plan supplement and other, are discussed.

- Other risks

These are quantified and accrued mainly based on the evaluation of rural credit transactions with joint liability and FCVS (salary variations compensation fund) credits assigned to Banco Nacional.

The table below shows the changes in the respective provisions for contingent liabilities and the respective escrow deposits balances:

	01/01 to 06/30/2011												01/01 to 06/30/2010
	Civil			Labor			Other			Total			Total
Opening balance		2,973,630			3,985,877			173,140			7,132,647			5,734,330
(-) Contingencies guaranteed by indemnity clauses (Note 4o I)		(308,810	)		(1,112,816	)		-			(1,421,626	)		(671,889	)
Subtotal		2,664,820			2,873,061			173,140			5,711,021			5,062,441
Restatement/Charges		51,251			51,696						102,947			103,515
Changes in the period reflected in results (Notes 13f and 13i)		673,843			394,847			(10,532	)		1,058,158			905,073
Increase (*)		878,593			476,735			3,223			1,358,551			1,034,507
Reversal		(204,750	)		(81,888	)		(13,755	)		(300,393	)		(129,434	)
Payment		(554,394	)		(327,678	)		-			(882,072	)		(615,658	)
Subtotal		2,835,520			2,991,926			162,608			5,990,054			5,455,371
(+) Contingencies guaranteed by indemnity clauses (Note 4o I)		223,633			1,089,677			-			1,313,310			687,552
Closing balance (Note 13c)		3,059,153			4,081,603			162,608			7,303,364			6,142,923
Closing balance at 06/30/2010 (Note 13c)		2,667,527			3,279,403			195,993			6,142,923
Escrow deposits at 06/30/2011 (Note 13a)		1,770,426			1,608,501			-			3,378,927
Escrow deposits at 06/30/2010 (Note 13a)		1,338,588			1,548,492			-			2,887,080

(*) Civil provisions include the provision for economic plans amounting to R$ 265,467 (R$ 200,392 from January 1 to June 30, 2010) (Note 22k).

- Tax and social security lawsuits

Contingencies are equivalent to the principal amount of taxes involved in tax, administrative or judicial challenges, subject to tax assessment notices, plus interest and, when applicable, fines and charges. The amount is accrued when it involves a legal liability, regardless of the likelihood of loss, that is, a favorable outcome to the institution is dependent upon the recognition of the unconstitutionality of the applicable law in force. In other cases, the Bank recognizes a provision whenever the likelihood of loss is probable.

The table below shows the changes in the provisions and respective escrow deposits for Tax and Social Security lawsuits balances:

PROVISIONS	01/01 to 06/30/2011									01/01 to 06/30/2010
	Legal obligation			Contingencies			Total			Total
Opening balance		5,091,341			2,165,412			7,256,753			7,718,852
(-) Contingencies guaranteed by indemnity clauses		-			(44,474	)		(44,474	)		(35,331	)
Subtotal		5,091,341			2,120,938			7,212,279			7,683,521
Restatement/charges		251,298			29,489			280,787			173,884
Changes in the period reflected in results		301,646			174,865			476,511			106,836
Increase		326,725			208,379			535,104			580,254
Reversal (*)		(25,079	)		(33,514	)		(58,593	)		(473,418	)
Payment (*)		(9,099	)		(33,888	)		(42,987	)		(1,942,414	)
Subtotal		5,635,186			2,291,404			7,926,590			6,021,827
(+) Contingencies guaranteed by indemnity clauses		-			12,296			12,296			45,041
Closing balance (Note 13c)		5,635,186			2,303,699			7,938,885			6,066,868
Closing balance at June 30, 2010 (Notes 13c and 14c)		4,555,917			1,510,951			6,066,868

(*) ITAÚ UNIBANCO HOLDING and its subsidiaries adhered to the Program for Cash or Installment Payment of Federal Taxes, established by Law No. 11,941, of May 27, 2009. In the first half of 2010 the program included the debits administered by the Federal Reserve Service of Brazil , and the main proposition included in this program was the increase in the PIS and COFINS calculation basis, as set forth by paragraph 1 of article 3 of Law No. 9,718, of November 27, 1998.

	01/01 to 06/30/2011									01/01 to 06/30/2010
Escrow Deposits	Legal obligation			Contingencies			Total			Total
Opening balance		3,660,986			1,021,951			4,682,937			5,076,824
Appropriation of income		159,704			55,369			215,073			134,294
Changes in the period		44,021			90,098			134,119			(882,730	)
Deposited		71,204			91,937			163,141			192,649
Withdrawals		(19,378	)		(1,071	)		(20,449	)		(1,071,981	)
Conversion into income		(7,805	)		(768	)		(8,573	)		(3,398	)
Closing balance		3,864,711			1,167,418			5,032,129			4,328,388
Closing balance at June 30, 2010		3,585,357			743,031			4,328,388

The main discussions related to Legal Obligations are described as follows:

· PIS and COFINS – Calculation basis – R$ 2,566,641: we defend the levy of contributions on revenue, understood as the revenue from sales of assets and services. The escrow deposit balance totals R$ 1,003,625.

· CSLL – Isonomy – R$ 1,075,521, as the law increased the CSLL rate for financial and insurance companies to 15%, we discuss the lack of constitutional support for this measure and, due to the principle of isonomy, we defend the levy at the regular rate of 9%. The escrow deposit balance totals R$ 210,907.

· IRPJ and CSLL –Taxation of profits earned abroad – R$ 475,091: We discuss the calculation basis for levy of these taxes on profits earned abroad and the non-applicability of Regulatory Instruction SRF No. 213-02 in which it exceeds the suitability of the legal text. The escrow deposit balance totals R$ 475,091.

· PIS – R$ 374,085 - Principles of anteriority over 90 days and non-retroactivity: we request the rejection of Constitutional Amendments No. 10/96 and 17/97 in view of the principle of anteriority and non-retroactivity, aiming at making payments based on Supplementary Law No. 07/70. The corresponding escrow deposit totals R$ 99,383.

In the accounting books no amount is recognized in relation to Tax and Social Security Lawsuits which likelihood of loss is considered possible, which total estimated risk is R$ 5,137,669; the main natures of these lawsuits are as follows:

· IRPJ, CSLL, PIS and COFINS – request for offset dismissed - R$ 843,291: cases in which the liquidity and the offset credit certainty are discussed.

· INSS – Non-compensatory amounts – R$ 657,907: we defend the non-taxation of these amounts, mainly profit sharing, transportation vouchers and sole bonus.

· ISS – Banking Institutions – R$ 519,418: these are banking operations, which revenue may not be interpreted as price per service rendered and/or arise from activities not listed under a Supplementary Law.

· IRPJ/CSLL - Losses and discounts on receipt of credits – R$ 519,022: we defend that these are necessary operating expenses and deductible for the losses in loan operations and discounts upon their renegotiation and recovery, as provided for the Law.

· IRPJ, CSLL, PIS and COFINS – Usufruct of quotas and shares - R$ 362,611: we discuss the adequate accounting and tax treatment for the amount received due to the onerous recognition of usufruct.

· IRPJ/CSLL - Interest on capital - R$ 342,905: we defend the deductibility of interest on capital declared to stockholders based on the Brazilian long-term interest rate (TJLP) levied on the stockholders’ equity for the year and for prior years.

c) Receivables - Reimbursement of contingencies

The Receivables balance arising from reimbursements of contingencies totals R$ 1,663,164 (R$ 1,099,886 at June 30, 2010) (Note 13a), basically represented by the guarantee in the Banco Banerj S.A. privatization process occurred in 1997, in which the State of Rio de Janeiro created a fund to guarantee the equity recomposition of Civil, Labor and Tax Contingencies.

d) Guarantee of voluntary resources

These are pledged in guarantee of voluntary resources related to contingent liability and are restricted, deposited or recorded in the amounts below:

	06/30/2011		06/30/2010
Securities (basically Financial Treasury Bills – Note 7b)		1,534,731		1,196,906
Deposits in guarantee		3,339,365		3,166,260

According to the opinion of the legal advisors, ITAÚ UNIBANCO HOLDING and its subsidiary companies are not involved in any other administrative proceedings or legal lawsuits that may significantly impact the results of its operations. The combined evaluation of all existing provisions for all contingent liabilities and legal liabilities, which are recognized through the adoption of statistical models for claims involving small amounts, and individual evaluation by internal and external legal advisors of other cases, showed that the accrued amounts are sufficient, as provided for CMN Resolution No. 3,823, of December 16, 2009, and BACEN Circular Letter No. 3,429, of February 11, 2010.

NOTE 13 - BREAKDOWN OF ACCOUNTS

a)       Other sundry receivables

	06/30/2011			06/30/2010
Deferred tax assets (Note 14b I)		25,697,623			26,815,060
Social contribution for offset (Note 14b I)		818,673			846,758
Taxes and contributions for offset		2,824,388			2,875,342
Escrow deposits for legal liabilities and tax and social security contingencies (Note 12b)		8,371,494			7,494,648
Escrow deposits for legal liabilities – civil and labor (Note 12b)		3,378,927			2,887,080
Escrow deposits for foreign fund raising program		1,608,438			539,460
Receivables from reimbursement of contingent liabilities (Note 12c)		1,663,164			1,099,886
Sundry domestic debtors		1,022,663			791,686
Sundry foreign debtors		119,185			137,440
Retirement plan assets (Note 19)		1,620,015			-
Recoverable payments		56,774			36,889
Salary advances		210,328			187,659
Amounts receivable from related companies		79,900			18,771
Operations without credit granting characteristics		341,076			239,683
Securities and credits receivable		646,797			570,548
(Allowance for loan losses)		(305,721	)		(330,865	)
Other		143,428			98,432
Total		47,956,076			44,068,794

At ITAÚ UNIBANCO HOLDING, Other Sundry Receivables are basically composed of Taxes and Contributions for Offset of R$ 249,750 (R$ 271,289 at June 30, 2010) and Deferred Tax Assets of R$ 810,727 (R$ 680,839 at June 30, 2010) (Note 14b I).

b) Prepaid expenses

	06/30/2011		06/30/2010
Commissions		1,756,609		1,616,296
Related to vehicle financing		804,296		1,116,546
Related to insurance and pension plan		122,466		283,601
Restricted to commissions/partnership agreements		579,718		327,523
Other		250,129		216,149
Fundo Garantidor de Crédito (*)		433,153		620,313
Advertising		404,697		403,432
Other		336,204		278,691
Total		2,930,663		3,246,255

(*) Refers to spontaneous payment, equivalent to the prepayment of installments of the contribution to the Fundo Garantidor de Crédito (Brazilian deposit guarantee fund), according to BACEN Circular No. 3,416, of 10/24/2008.

c)  Other sundry liabilities

	06/30/2011		06/30/2010
Provisions for contingent liabilities (Note 12b)		9,607,063		7,724,039
Provisions for sundry payments		2,001,849		1,928,741
Personnel provision		1,267,493		1,117,981
Sundry creditors - local		1,077,947		570,146
Sundry creditors - foreign		717,939		241,893
Liabilities for official agreements and rendering of payment services		1,636,215		441,467
Related to insurance operations		987,603		985,849
Liabilities for purchase of assets and rights		42,926		67,632
Creditors of funds to be released		1,071,404		588,116
Funds from consortia participants		80,298		76,852
Provision for Retirement Plan Benefits (Note 19)		230,005		135,098
Provision for integration expenditures with ITAÚ UNIBANCO merger (1)		-		520,721
Provision for health insurance (2)		615,097		601,316
Expenses for lease interests (Note 4i)		280,575		84,644
Other		77,044		225,455
Total		19,693,455		15,309,950

(1) Provision set up at 12/31/2008 to cover expenditures on communication with customers, adequacy of systems and personnel;

(2) Provision set up to cover possible future deficits up to the total discontinuance of the portfolio, arising from the difference of adjustments to monthly installments, authorized annually by the regulatory body, and the actual variation of hospital costs that affect the compensation of claims (Note 13i).

In ITAÚ UNIBANCO HOLDING, Other Sundry Liabilities is basically composed of Liabilities for Share-Based Instruments.

d)   Banking service fees

	01/01 to 06/30/2011		01/01 to 06/30/2010
Asset management		1,274,773		1,195,141
Funds management fees		1,222,660		1,171,641
Consortia management fee		52,113		23,499
Current account services		332,429		268,691
Credit cards		3,495,937		3,067,133
Annual fees		554,124		488,522
Other services		2,941,813		2,578,611
Relationship with stores		2,751,426		2,403,781
Credit card processing		190,387		174,830
Sureties and credits granted		835,835		699,318
Loan operations		493,550		419,637
Guarantees provided		342,285		279,681
Receipt services		630,931		639,361
Collection fees		490,705		516,592
Collection services		140,226		122,769
Other		958,797		821,693
Brokerage		249,152		265,122
Custody services and management of portfolio		104,296		90,866
Economic and financial advisory		179,272		133,759
Foreign exchange services		39,226		36,019
Other services		386,851		295,927
Total		7,528,702		6,691,337

e)       Income from bank charges

	01/01 to 06/30/2011		01/01 to 06/30/2010
Loan operations/registration		770,124		636,398
Deposit account		73,125		86,775
Transfer of funds		62,994		60,390
Service package fees and other		704,751		753,106
Total		1,610,994		1,536,669

f)       Personnel expenses

	01/01 to 06/30/2011			01/01 to 06/30/2010
Compensation		(4,145,035	)		(3,806,057	)
Charges		(985,931	)		(964,114	)
Welfare benefits		(762,155	)		(797,716	)
Training		(117,036	)		(88,370	)
Labor claims and termination of employees (Note 12b)		(567,904	)		(240,043	)
Total		(6,578,061	)		(5,896,300	)

g)       Other administrative expenses

	01/01 to 06/30/2011			01/01 to 06/30/2010
Data processing and telecommunications		(1,737,794	)		(1,461,137	)
Depreciation and amortization		(682,146	)		(646,573	)
Installations		(1,020,468	)		(1,054,395	)
Third-party services		(1,525,930	)		(1,297,352	)
Financial system services		(216,435	)		(190,750	)
Advertising, promotions and publication		(436,949	)		(517,623	)
Transportation		(282,752	)		(277,303	)
Materials		(219,011	)		(187,570	)
Security		(240,169	)		(210,537	)
Travel expenses		(86,492	)		(69,056	)
Other		(234,227	)		(207,620	)
Total		(6,682,373	)		(6,119,916	)

h)      Other operating revenues

	01/01 to 06/30/2011		01/01 to 06/30/2010
Reversal of operating provisions		58,000		352,269
Contingent assets and liabilities and legal liabilities – tax and social security (Note 12b)		143		332,052
Other		57,857		20,217
Recovery of charges and expenses		46,984		32,668
Other		117,793		271,320
Total		222,777		656,258

i)      Other operating expenses

	01/01 to 06/30/2011			01/01 to 06/30/2010
Provision for contingencies (Note 12b)		(813,955	)		(659,797	)
Civil lawsuits		(673,843	)		(659,317	)
Tax and social security contributions		(150,644	)		-
Other		10,532			(480	)
Selling - Credit cards		(940,073	)		(684,140	)
Claims		(285,171	)		(269,965	)
Provision for health insurance (Note 13c)		(8,733	)		(5,325	)
Refund of interbank costs		(99,721	)		(89,181	)
Other		(352,500	)		(274,247	)
Total		(2,500,153	)		(1,982,655	)

NOTE 14 - TAXES

a) Composition of expenses for taxes and contributions

I - We show below the Income Tax and Social Contribution due on the operations for the period and on temporary differences arising from additions and exclusions:

Due on operations for the period	01/01 to 06/30/2011			01/01 to 06/30/2010
Income before income tax and social contribution		10,169,224			8,985,261
Charges (income tax and social contribution) at the rates in effect (Note 4p)		(4,067,690	)		(3,594,105	)
Increase/decrease to income tax and social contribution charges arising from:
Permanent (additions) exclusions		1,037,693			1,290,848
Investments in affiliates		(45,199	)		60,458
Foreign exchange variation on investments abroad		(479,834	)		91,389
Interest on capital		838,346			751,493
Dividends, interest on external debt bonds and tax incentives		191,099			166,620
Other (*)		533,281			220,888
Temporary (additions) exclusions		(781,333	)		321,376
Allowance for loan losses		(925,937	)		(1,475,988	)
Excess (insufficiency) of depreciation of leased assets		(166,855	)		709,893
Adjustment to market value of trading securities and derivative financial instruments and adjustments from operations in futures markets		(92,175	)		(138,450	)
Interest on capital		(151,129	)		(59,914	)
Legal liabilities – tax and social security, contingent liabilities and restatement of escrow deposits		(233,200	)		675,416
Realization of goodwill on purchase of investments		858,307			827,713
Integration expenditures with ITAÚ UNIBANCO merger		-			129,483
Other		(70,344	)		(346,777	)
(Increase) offset of tax losses/social contribution loss carryforwards		(67,585	)		(856,345	)
Expenses for income tax and social contribution		(3,878,915	)		(2,838,226	)
Related to temporary differences
Increase (reversal) for the period		848,918			534,969
Increase (reversal) for prior periods		488,066			286,978
Income (expenses) from deferred taxes		1,336,984			821,947
Total income tax and social contribution		(2,541,931	)		(2,016,279	)

(*) It includes the effect arising from the Program for Cash or Installment Payment of Federal Taxes – Law No. 11,941/09 (Note 22k).

II - Composition of tax expenses:

	01/01 to 06/30/2011			01/01 to 06/30/2010
PIS and COFINS		(1,687,153	)		(1,401,446	)
ISS		(319,851	)		(365,295	)
Other		(152,622	)		(150,166	)
Total (Note 4p)		(2,159,626	)		(1,916,907	)

At ITAÚ UNIBANCO HOLDING tax expenses are basically composed of PIS and COFINS in the amount of R$ 131,210 (R$ 15,007 from 01/01 to 06/30/2010).

III- Tax effects on foreign exchange management of investments abroad

In order to minimize the effects on income in connection with the foreign exchange variation on investments abroad, net of respective tax effects, ITAÚ UNIBANCO HOLDING carries out derivative transactions in foreign currency (hedge), as mentioned in Note 22b.

Results of these transactions are considered in the calculation base of income tax and social contribution, according to their nature, while the foreign exchange variation on investments abroad is not included therein, pursuant to tax legislation in force.

b) Deferred taxes

I - The deferred tax asset balance and its changes, segregated based on its origin and disbursements incurred, are represented as follows:

	PROVISIONS				DEFERRED TAX ASSETS
	06/30/2010		06/30/2011		12/31/2010		Realization / Reversal			Increase		06/30/2011		06/30/2010
Reflected in income and expense accounts
Related to income tax and social contribution loss carryforwards						2,998,746		(746,497	)		1,049,060		3,301,309		4,031,726
Related to disbursed provisions						14,186,050		(2,958,344	)		3,164,887		14,392,593		14,831,204
Allowance for loan losses						8,859,857		(2,148,619	)		3,124,110		9,835,348		8,615,252
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)						38,789		(38,789	)		19,830		19,830		213,664
Allowance for real estate						97,538		(14,279	)		-		83,259		100,395
Goodwill on purchase of investments						5,042,680		(732,113	)		-		4,310,567		5,722,817
Other						147,186		(24,544	)		20,947		143,589		179,076
Related to non-disbursed provisions (*)		22,545,853		21,629,129		7,428,041		(1,601,704	)		2,157,022		7,983,359		7,906,378
Related to the operation		16,441,853		16,570,714		5,887,367		(1,601,704	)		1,977,835		6,263,498		5,831,018
Legal liabilities – tax and social security		2,254,256		2,306,251		1,313,554		(55,084	)		48,616		1,307,086		1,224,927
Provision for contingent liabilities		7,721,774		7,006,405		2,417,799		(464,856	)		730,129		2,683,072		2,400,173
Civil lawsuits		2,668,275		2,804,771		1,038,062		(164,496	)		234,419		1,107,985		994,199
Labor claims		2,349,996		2,568,049		883,981		(253,172	)		340,854		971,663		850,898
Tax and social security contributions		2,618,848		1,567,130		462,671		(39,908	)		154,856		577,619		470,674
Other		84,655		66,455		33,085		(7,280	)		-		25,805		84,402
Adjustments of operations carried out in futures settlement market		149,244		24,731		54,693		(49,500	)		2,300		7,493		120,634
Provision related to health insurance operations		601,316		615,097		242,546		-			3,493		246,039		240,526
Other non-deductible provisions		5,715,263		6,618,230		1,858,775		(1,032,264	)		1,193,297		2,019,808		1,844,758
Related to provisions exceeding the minimum required not disbursed – allowance for loan losses		6,104,000		5,058,415		1,540,674		-			179,187		1,719,861		2,075,360
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)						116,468		(96,106	)		-		20,362		45,752
Total		22,545,853		21,629,129		24,729,304		(5,402,650	)		6,370,969		25,697,623		26,815,060
Social contribution for offset arising from Option provided for in article 8 of Provisional Measure No. 2,158-35 of 08/24/2001						847,216		(28,543	)		-		818,673		846,758

(*)  From a financial point of view, rather than recording the provision of R$ 21,629,129 (R$ 22,545,853 at June 30, 2010) and deferred tax assets of R$ 7,983,359 (R$ 7,906,378 at June 30, 2010), only the net provisions of the corresponding tax effects should be considered, which would reduce the total deferred tax assets from R$ 25,697,623 (R$ 26,815,060  at June 30, 2010) to R$ 17,714,264 (R$ 18,908,682 at June 30, 2010).

At ITAÚ UNIBANCO HOLDING, the deferred tax assets totaled R$ 810,727 (R$ 680,839 at June 30, 2010) and are basically represented by legal losses of R$ 411,987 (R$ 564,499 at June 30, 2010) and provision for legal liabilities – tax and social security of R$ 266,691 (R$ 130,969 at June 30, 2010), which expected realization is dependent upon the progress of the lawsuit.

II - Provision for Deferred Income Tax and Social Contribution balance and its changes are shown as follows:

	12/31/2010		Realization / Reversal			Increase		06/30/2011		06/30/2010
Reflected in income and expense accounts		10,119,317		(1,642,378	)		1,504,522		9,981,461		9,295,007
Depreciation in excess – leasing		8,295,516		(1,180,302	)		1,013,447		8,128,661		8,238,919
Restatement of escrow deposits and contingent liabilities		804,109		(53,464	)		141,606		892,251		744,296
Adjustment to market value of trading securities and derivative financial instruments		340,340		(340,340	)		184,075		184,075		143,095
Provision for Pension Plan Benefits		458,093		-			122,560		580,653		-
Adjustments of operations carried out in futures settlement market		56,993		(1,435	)		12,196		67,754		58,058
Taxation of results abroad – capital gains		42,477		-			8,392		50,869		35,309
Other		121,789		(66,837	)		22,246		77,198		75,330
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		260,511		(98,237	)		24,379		186,653		171,581
Total		10,379,828		(1,740,615	)		1,528,901		10,168,114		9,466,588

At ITAÚ UNIBANCO, the Provision for deferred income tax and social contributions totals R$ 3,366 (R$ 2,797 at June 30, 2010), basically represented by Restatement of escrow deposits and contingent liabilities.

III - The estimate of realization and present value of deferred tax assets and social contribution for offset, arising from Provisional Measure No. 2,158-35 of August 24, 2001 and from the Provision for Deferred Income Tax and Social Contribution existing at June 30, 2011, in accordance with the expected generation of future taxable income, based on the history of profitability and technical feasibility studies, are:

	Deferred tax assets
	Temporary differences		Tax loss/social contribution loss carryforwards		Total		Social contribution for offset		Provision for deferred income tax and social contribution			Net deferred taxes
2011		6,724,798		933,223		7,658,021		131,809		(1,831,362	)		5,958,468
2012		4,275,040		1,621,141		5,896,181		244,146		(2,251,623	)		3,888,704
2013		4,044,274		636,895		4,681,169		350,966		(2,554,638	)		2,477,497
2014		2,367,506		56,167		2,423,673		65,295		(1,664,636	)		824,332
2015		2,669,872		34,197		2,704,069		8,819		(1,111,142	)		1,601,746
Over 2015		2,314,824		19,686		2,334,510		17,638		(754,713	)		1,597,435
Total		22,396,314		3,301,309		25,697,623		818,673		(10,168,114	)		16,348,182
Present value (*)		19,756,429		3,058,445		22,814,874		738,352		(8,927,140	)		14,626,086

(*) The average funding rate, net of tax effects, was used to determine the present value.

The projections of future taxable income include estimates related to macroeconomic variables, exchange rates, interest rates, volume of financial operations and services fees and others which can vary in relation to actual data and amounts.

Net income in the financial statements is not directly related to taxable income for income tax and social contribution, due to differences existing between accounting criteria and tax legislation, besides corporate aspects. Accordingly, we recommend that the trend of the realization of deferred tax assets arising from temporary differences, income tax and social contribution loss carryforwards be not used as an indication of future net income.

IV -  In view of the unconstitutionality lawsuit related to the increase in the social contribution rate, established by Articles 17 and 41 of Law No. 11,727 of June 24, 2008, filed on June 26, 2008 by the National Confederation of the Financial System (CONSIF), deferred tax assets were recorded up to the amount added to the Tax Liabilities, while the amount of R$ 1,343,737 is unrecorded (R$ 2,069,205 at June 30, 2010).

c) Tax and social security contributions

	6/30/2011		6/30/2010
Taxes and contributions on income payable		2,310,931		1,274,043
Taxes and contributions payable (*)		1,171,512		4,342,438
Provision for deferred income tax and social contribution (Note 14b II)		10,168,114		9,466,588
Legal liabilities – tax and social security		5,635,186		4,555,917
Total		19,285,743		19,638,986

(*) At June 30, 2011 the amounts subject to installment payment under the Program for Cash or Installment Payment of Federal Taxes, introduced by Law No. 11,941, of May 27, 2009, were settled.

At ITAÚ UNIBANCO HOLDING, the balance of Tax and Social Security Contributions totals R$ 738,907 (R$ 398,363 at June 30, 2010) and is basically comprised of Legal Liabilities - Tax and Social Security of R$ 633,739 (R$ 394,765 at June 30, 2010), whose nature refers to PIS and COFINS - Revenue x Gross revenue. we request either the levy of taxes only on the revenue understood as income from sale of assets and services or the levy of PIS Repique (calculated on income tax payable) (at 5% of income tax due), in lieu of the levy on total revenues recorded, by alleging the unconstitutionality of paragraph 1 of article 3 of Law No. 9,718/98.

d)  Taxes paid or provided for and withheld from third parties

The amount of taxes paid or provided for is basically levied on income, revenue and payroll. In relation to the amounts withheld and collected from third parties, the Company takes into consideration the interest on capital paid and on the service provision, in addition to that levied on financial operation.

	06/30/2011		06/30/2010
Taxes paid or provided for		7,875,483		5,879,985
Taxes withheld and collected from third parties		5,907,572		3,936,249
Total		13,783,055		9,816,234

NOTE 15 – PERMANENT ASSETS

a)  Investments

I -  Change of investments

Companies		Balances at 12/31/2010		Amortization of goodwill			Dividends paid/provided for (1)			Equity in earnings of subsidiaries and affiliated companies (2)			Adjustments in marketable securities of subsidiaries and affiliates and Other			Corporate restructuring			Balances at 06/30/2011		Balances at 06/30/2010		Equity in earnings of subsidiaries and affiliates from 01/01 to 06/30/2010
Domestic			61,007,900		(3,168	)		(10,356,986	)		4,746,938			(48,186	)		(4,020,244	)		51,326,254		58,168,932		4,064,495
Itaú Unibanco S.A.	(3a)(4a)(5a)(6)		45,678,429		(3,168	)		(4,794,871	)		2,973,957			(6,568	)		-			43,847,779		44,501,662		2,629,696
Banco ITAÚ BBA S.A.	(4b)(5b)		6,265,960		-			(2,284,436	)		614,225			(33,178	)		-			4,562,571		5,261,151		325,942
Itaú-BBA Participações S.A.			1,750,799		-			(615,564	)		165,312			(8,940	)		-			1,291,607		1,444,315		86,806
Banco Itaucard S.A.	(4c)(5c)(7)		2,907,164		-			(2,662,115	)		860,825			1,417			-			1,107,291		2,614,919		804,209
Itaú Corretora de Valores S. A.	(7)		472,033		-			-			44,965			8			-			517,006		500,810		118,553
Itauseg Participações S.A.	(8)		3,933,515		-			-			87,654			(925	)		(4,020,244	)		-		3,846,075		99,289
Foreign			2,022,024		(25,705	)		-			8,032			(630	)		157,750			2,161,471		2,075,440		157,627
Itaú Chile Holding, INC.	(3b)		1,686,391		(22,621	)		-			2,568			(470	)		157,750			1,823,618		1,720,701		124,204
Banco Itaú Uruguay S.A.	(3c)		225,982		(2,356	)		-			(6,207	)		(160	)		-			217,259		233,930		17,852
OCA S.A.	(3d)		75,184		(626	)		-			12,177			-			-			86,735		85,187		13,769
OCA Casa Financeira S.A.	(3e)		32,168		(91	)		-			(528	)		-			-			31,549		33,306		1,858
ACO Ltda.	(3f)		2,299		(11	)		-			22			-			-			2,310		2,316		(56	)
GRAND TOTAL			63,029,924		(28,873	)		(10,356,986	)		4,754,970			(48,816	)		(3,862,494	)		53,487,725		60,244,372		4,222,122

(1) Income receivable includes Dividends receivable;

(2) At June 30, 2011, includes foreign exchange variation in the amount of R$ (90,826);

(3) At June 30, 2011, includes goodwill in the amounts of: (a) R$ 46,462; (b) R$ 248,828; (c) R$ 25,916; (d) R$ 6,887; (e) R$ 1,000; (f) R$ 117;

(4) At June 30, 2011, includes Adjustments of unrealized results in the results of operations and in investments, respectively, in the amounts of: (a) R$ 943 and R$ (7,383); (b) R$ 88 and R$ 0; (c) R$ 25,509 and R$ (74,862);

(5) At June 30, 2011, includes adjustments to standardize procedures under the scope of the investor in the results of operations and investments, respectively  in the amounts of: (a) R$ (8,855) and R$ (1,816); (b) R$ 6,554 and R$ (70,616); and

(c) R$ (8,452) and R$ (30);

(6) At June 30, 2011, includes installment of dividends provided for in the amount of R$ 49,145;

(7) The investment and the equity in earnings reflect the different interest in preferred shares, profit sharing and dividends;

(8) Investment sold to Banco Itaucard S.A. on April 11, 2011.

								Number of shares/quotas owned by ITAÚ UNIBANCO						Equity share			Equity share in
Companies	Capital		Stockholders’ equity		Net income  for the period			Common		Preferred		Quotas		in voting capital (%)			Capital  (%)
Domestic
Itaú Unibanco S.A.		39,676,320		43,761,374		2,981,868			2,081,169,523		2,014,258,290		-		100.00	%		100.00	%
Banco Itaú BBA S.A.		4,224,086		5,881,643		771,303			3,041,104		5,284,526		-		57.55	%		78.77	%
Itaú-BBA Participações S.A.		838,401		1,291,606		165,312			170,647		341,294		-		100.00	%		100.00	%
Banco Itaucard S.A.		15,553,776		17,288,854		933,128			3,592,433,657		1,277,933,118		-		1.51	%		2.04	%
Itaú Corretora de Valores S. A.		1,046,841		1,658,022		49,769			-		811,503		-		-			1.94	%
Foreign
Itaú Chile Holding, INC.		436,263		1,574,791		97,552			100		-		-		100.00	%		100.00	%
Banco Itaú Uruguay S.A.		139,860		191,345		(8,973	)		1,639,430,739		-		-		100.00	%		100.00	%
OCA S.A.		12,815		79,847		11,280			1,502,176,740		-		-		100.00	%		100.00	%
OCA Casa Financeira S.A.		16,538		30,549		(960	)		646		-		-		100.00	%		100.00	%
ACO Ltda.		11		2,211		(8	)		-		-		131		99.24	%		99.24	%

II -  Composition of investments

	06/30/2011			06/30/2010
Investment in affiliates		1,858,411			2,155,891
Domestic		1,428,109			1,428,957
Serasa S.A.		266,181			251,118
Porto Seguro Itaú Unibanco Participações S.A.		1,121,598			1,018,700
Tecnologia Bancária S.A.		40,247			41,467
Other		83			117,672
Foreign		430,302			726,934
Banco BPI, S.A. (BPI) (*)		429,864			726,934
Other		438			-
Other investments		1,301,373			1,277,190
Investments through tax incentives		160,575			161,444
Equity securities		10,837			9,165
Shares and quotas		383,695			349,232
Interest in Instituto de Resseguros do Brasil - IRB		227,170			227,170
Other		519,096			530,179
(Allowance for loan losses)		(185,413	)		(174,126	)
Total		2,974,371			3,258,955

(*) At June 30, 2011 such investment was adjusted in the amount of R$ 236,152 to recognize its market value based on the share price.

III -  Equity in earnings of affiliates and other investments

	01/01 to 06/30/2011			01/01 to 06/30/2010
Investment in affiliates - Domestic		97,197			114,217
Investment in affiliates – Foreign (Note 14a II)		(210,193	)		36,927
Dividends received from Other investments		70,700			52,432
Other		(773	)		(7,129	)
Total		(43,069	)		196,447

b) Fixed assets, goodwill and intangible assets

			CHANGES											06/30/2011					06/30/2010
	NET BALANCE AT 12/31/2010		ACQUISITIONS		DISPOSALS			DEPRECIATION/ AMORTIZATION EXPENSES (3)			OTHER			COST		ACCUMULATED DEPRECIATION/ AMORTIZATION			NET BOOK AMOUNT		NET BOOK AMOUNT
REAL ESTATE IN USE		4,723,791		704,774		(62,016	)		(568,994	)		(16,191	)		11,474,533		(6,693,168	)		4,781,365		4,215,845
REAL ESTATE IN USE (1)		1,769,522		22,677		(17,743	)		(48,638	)		(15,168	)		3,250,273		(1,539,623	)		1,710,650		1,777,427
Land		971,170		300		(13,273	)		-			3,785			961,982		-			961,982		967,849
Buildings		798,352		22,377		(4,470	)		(48,638	)		(18,953	)		2,288,291		(1,539,623	)		748,668		809,578
OTHER FIXED ASSETS		2,954,269		682,097		(44,273	)		(520,356	)		(1,023	)		8,224,260		(5,153,545	)		3,070,715		2,438,418
Improvements		625,257		93,662		(38	)		(107,367	)		5,274			1,138,766		(521,978	)		616,788		536,375
Installations		266,520		74,290		(393	)		(24,563	)		6,758			850,365		(527,753	)		322,612		366,899
Furniture and equipment		428,408		69,640		(13,035	)		(31,287	)		(18,412	)		865,874		(430,560	)		435,314		356,132
EDP systems		1,404,459		424,944		(26,673	)		(331,782	)		5,403			4,835,578		(3,359,227	)		1,476,351		969,847
Other (communication, security and transportation)		229,625		19,561		(4,134	)		(25,357	)		(46	)		533,676		(314,027	)		219,649		209,165
GOODWILL (Notes 2a, b and 4k)		67,617		-		-			-			-			67,617		-			67,617		24,288
INTANGIBLE ASSETS		2,933,858		732,543		(4,821	)		(498,768	)		(39,064	)		5,374,729		(2,250,981	)		3,123,748		2,999,282
RIGHTS FOR ACQUISITION OF PAYROLLS (2)		1,129,854		83,419		(4,821	)		(312,539	)		(18,076	)		2,388,708		(1,510,871	)		877,837		1,326,034
OTHER INTANGIBLE ASSETS		1,804,004		649,124		-			(186,229	)		(20,988	)		2,986,021		(740,110	)		2,245,911		1,673,247
Association for the promotion and offer of financial products and services (4)		1,115,272		32,261		-			(60,577	)		(5,953	)		1,165,218		(84,215	)		1,081,003		1,038,569
Expenditures on acquisition of software		532,148		316,863		-			(99,561	)		(6,380	)		1,273,930		(530,860	)		743,070		444,964
Other intangible assets		156,584		300,000		-			(26,091	)		(8,655	)		546,873		(125,035	)		421,838		189,714
GRAND TOTAL		7,725,266		1,437,317		(66,837	)		(1,067,762	)		(55,255	)		16,916,879		(8,944,149	)		7,972,730		7,239,415

(1) Includes amounts pledged in guarantee of voluntary deposits (Note 12b);

(2) Represents the recording of amounts paid for acquisition of rights to provide services of payment of salaries, proceeds, retirement and pension benefits, and similar benefits;

(3) Amortization expenses of the rights for acquisition of payrolls and partnerships are disclosed in the expenses on financial operations;

(4) Includes in the Other column the amount of R$ 16,379 thousand determined in the first half of 2011 related to the recoverable amount, according to BACEN Resolution No. 3,566, of May 29, 2001 (Note 13i).

NOTE 16 – STOCKHOLDERS’ EQUITY

a) Shares

Capital comprises 4,570,936,219 book-entry shares with no par value, of which 2,289,286,475 are common and 2,281,649,744 are preferred shares without voting rights, but with tag-along rights, in the event of the public offer of common shares, at a price equal to 80% of the amount paid per share with voting rights in the controlling stake, as well as a dividend at least equal to that of the common shares. Capital stock amounts to R$ 45,000,000 (R$ 45,000,000 at June 30, 2010), of which R$ 31,689,731 (R$ 31,606,165 at June 30, 2010) refers to stockholders domiciled in the country and R$ 13,310,269 (R$ 13,393,835 at June 30, 2010) refers to stockholders domiciled abroad.

The table below shows the change in shares of capital stock and treasury shares during the period:

	NUMBER
	Common		Preferred			Total			Amount
Shares of capital stock at 12/31/2010 and 06/30/2011		2,289,286,475		2,281,649,744			4,570,936,219
Treasury shares at December 31, 2010 (*)		2,202		26,566,015			26,568,217			(628,577	)
Purchase of shares		-		15,500,000			15,500,000			(557,991	)
Exercised options - Granting of stock options – Simple and Bonus options		-		(3,622,788	)		(3,622,788	)		75,377
Disposals – stock option plan		-		(2,178,337	)		(2,178,337	)		63,191
Treasury shares at June 30, 2011 (*)		2,202		36,264,890			36,267,092			(1,048,000	)
Outstanding shares at June 30, 2011		2,289,284,273		2,245,384,854			4,534,669,127
Outstanding shares at June 30, 2010		2,289,284,273		2,244,637,429			4,533,921,702

(*) Own shares, purchased based on authorization of the Board of Directors, to be held in Treasury for subsequent cancellation of replacement in the market.

We detail below the costs of shares purchased in the period, as well as the average cost of treasury shares and their market price at June 30, 2011:

Cost/Market value	Common		Preferred
Minimum		-		34.69
Weighted average		-		36.00
Maximum		-		37.40
Treasury shares
Average cost		9.65		28.90
Market value		30.80		36.45

b) Dividends

Stockholders are entitled to a mandatory dividend of not less than 25% of annual net income, which is adjusted according to the rules set forth in Brazilian Corporate Law. Both types of shares participate equally, after common shares have received dividends equal to the annual minimum priority dividend of R$ 0.022 per share to be paid to preferred shares.

The calculation of the monthly advance of mandatory minimum dividend is based on the share position on the last day of the prior month, taking into consideration that the payment is made on the first business day of the subsequent month, in the amount of R$ 0.012 per share. The value per share will be maintained according to resolution adopted at the A/ESM held on April 24, 2009, so that total amounts monthly paid by the Company to stockholders will be increased by 10%, from October 1, 2009, date the bonus shares are included in the share position.

I - Calculation

Net income	5,769,625
Adjustments:
(-) Legal reserve	(288,481	)
Dividend calculation basis	5,481,144
Mandatory minimum dividends paid/provided for	1,370,286		25.0	%

II – Payments/Provision of interest on capital and dividends

	Gross		WTF			Net
Paid/Prepaid		272,780		-			272,780
Dividends - 05 monthly installments of R$ 0.012 per share paid from February to June 2011		272,780		-			272,780
Provided for (*)		1,281,571		(184,065	)		1,097,506
Dividends - 1 monthly installment of R$ 0.012 per share, paid on July 1, 2011		54,474		-			54,474
Interest on capital - R$ 0.2706 per share		1,227,097		(184,065	)		1,043,032
Total from 01/01 to 06/30/2011 - R$ 0,3020 net per share		1,554,351		(184,065	)		1,370,286
Total from 01/01 to 06/30/2010 - R$ 0.4241 net per share		2,204,825		(281,793	)		1,923,032

(*) Recorded in Other Liabilities – Social and Statutory.

c) Capital and revenue reserves

	06/30/2011		06/30/2010
CAPITAL RESERVES		619,298		565,460
Premium on subscription of shares		283,512		283,512
Granted options recognized – Law No. 11,638		334,681		280,843
Reserves from tax incentives and restatement of equity securities and other		1,105		1,105
REVENUE RESERVES		29,946,904		21,546,227
Legal		3,541,997		2,984,510
Statutory:		26,404,907		18,203,786
Dividends equalization (1)		7,903,045		6,082,584
Working capital increase (2)		8,084,973		4,881,992
Increase in capital of investees (3)		10,416,889		7,239,210
Unrealized profits (4)		-		357,931

(1) Reserve for Dividends Equalization – its purpose is to guarantee funds for the payment of advances of dividends, including interest on capital, to maintain the flow of the stockholders’ compensation;

(2) Reserve for Working Capital Increase – its purpose is to guarantee funds for the company’s operations;

(3) Reserve for Increase in Capital of Investees – its purpose is to guarantee the preferred subscription right in the capital increases of investees;

(4) Refers to the excess portion of mandatory minimum dividend in relation to realized portion of net income for 2008, composed of in accordance with article 197 of Brazilian Corporate Law.

d) Reconciliation of net income and stockholders’ equity (Note 2b)

	Net income				Stockholders’ equity
	01/01 to 06/30/2011		01/01 to 06/30/2010		06/30/2011			06/30/2010
ITAÚ UNIBANCO HOLDING		5,769,625		4,891,890		74,486,158			66,383,901
Amortization of goodwill		1,362,883		1,504,915		(8,403,362	)		(11,309,940	)
Unrealized income (loss) and Other		-		2,337		-			-
ITAÚ UNIBANCO HOLDING CONSOLIDATED		7,132,508		6,399,142		66,082,796			55,073,961

e)        Minority interest in subsidiaries

	Stockholders’ equity				Results
	06/30/2011		06/30/2010		01/01 to 06/30/2011			01/01 to 06/30/2010
Unibanco Participações Societárias S.A.		1,234,866		1,158,167		(44,489	)		(44,982	)
Itau Bank, Ltd. (1)		616,299		711,167		-			-
Redecard S.A.		683,207		708,570		(302,220	)		(363,421	)
Biu Participações S.A.		113,680		96,311		(10,881	)		(12,439	)
Itaú Gestão de Ativos S.A.		60,701		59,142		(590	)		894
Biogeração de Energia S.A.		24,188		28,141		889			(321	)
Investimentos Bemge S.A.		18,075		16,924		(591	)		(483	)
Investment funds		547,550		735,048		(27,690	)		(31,313	)
Other		10,741		86,034		(2,689	)		(1,770	)
Total		3,309,307		3,599,504		(388,261	)		(453,835	)

(*) Represented by redeemable preferred shares issued on December 31, 2002 by Itau Bank Ltd., in the amount of US$ 393,072 thousand, with maturity on March 31, 2015 and semiannual dividends calculated based on LIBOR plus 1.25% p.a.

f) Stock Option Plan

I – Purpose and Guidelines of the Plan

The Group has a stock option plan for its executives. This program aims at involving the management members in the medium and long-term corporate development process, by granting simple stock options or partner options, personal, not pledgeable or transferable, which entitle to the subscription of one authorized capital share or, at the discretion of the management, one treasury share which has been acquired for replacement purposes.

Such options may only be granted in years in which there are sufficient profits to enable the distribution of mandatory dividends to stockholders and at a quantity that does not exceed the limit of 0.5% of the total shares held by the stockholders at the base date of the year-end balance sheet. The ITAÚ UNIBANCO HOLDING’s Personnel Committee is responsible for defining the total quantity, the beneficiaries, the type of option, the life of the option under each series, and the vesting period for exercising the options and the period the acquired shares are unavailable due to the exercise of the options. The executive officers and Board of Directors members of ITAÚ UNIBANCO HOLDING and of its subsidiaries and employees may participate in this program, based on assessment of potential and performance.

Currently, ITAÚ UNIBANCO HOLDING settles the benefits under this PLAN by delivering its own shares, which are held in treasury until the effective exercise of the options by the beneficiaries.

II - Characteristics of the Programs

II.I – Simple Options

Prior Programs

Before the merger, Itaú and Unibanco each had Stock Option Plans (Prior Programs). The eligible beneficiaries of the program were granted simple options, depending upon the individual employee performance. The exercise price is calculated based on the average prices of preferred shares at the BM&FBOVESPA trading sessions over the period of at least one (1) and at the most three (3) months prior to the option issue date; alternatively, subject to the positive or negative adjustment of up to 20%, and restated until the last business day of the month prior to the option exercise date based either on the IGP-M or IPCA, in its absence, based on the index determined by the Committee. Options are no longer granted under this model.

Post-Merger Program

The eligible beneficiaries of the program, simple options are granted, dependent upon the individual employee performance. The exercise price is calculated based on the average prices of preferred shares at the BM&FBOVESPA over the period of at least one (1) and at the most three (3) months related to the last exercise months to which the options refer. The exercise price is adjusted based on the IGPM or, in its absence, based on the index determined by the committee.

The vesting period is from one (1) to seven (7) years, counted from the issue date.

II.II – Partners Plan

Executives selected to participate in the program may invest a percentage of their bonus to acquire shares or they have the right to receive shares (“Share-Based Instrument”). Title to the shares acquired, as well as the share-based instruments should be held by the executives for a period of 3 to 5 years and they are subject to market fluctuation. At the time they acquire own shares and/or share-based instruments, Partner Options are granted in accordance with the classification of executives. Vesting periods of Partner Options or share-based instruments is from 1 to 7 years. Share-based instruments and Partner shares are converted into own shares of ITAÚ UNIBANCO HOLDING in the ratio of one share for each instrument after the respective vesting period, with no payment of amounts in legal tender during the exercise.

The acquisition price of own shares and Share-Based Instruments is established every six months and it is  equivalent to the average preferred share quotation at the BM&FBOVESPA trading sessions in the 30 days prior to the determination of said price.

Title to the shares received after the vesting period of the Partner Options should be held for periods from 5 to 8 years, counted from the own shares acquisition date.

Summary of Changes in the Plan

				Restated	Exercised options		Number of shares
Granting		Vesting period	Exercise	exercise	Weighted average	Weighted average	Prior balance				To be exercised	To be exercised
No.	date	until	until	price (R$1)	exercise price	market price	12/31/2010	Granted	Exercised	Cancelled	at 06/30/2011	at 06/30/2010
Simple Options
10th	02/16/2004	12/31/2008	12/31/2011	13.22	12.89	38.60	712,942	-	273,943	-	438,999	1,579,067
27th	02/01/2005	05/05/2009	01/31/2011	16.52	17.90	39.15	12,650	-	12,650	-	-	12,650
11th	02/21/2005	12/31/2009	12/31/2012	18.60	18.27	37.05	2,877,600	-	1,362,125	-	1,515,475	4,273,630
11th	08/01/2005	12/31/2009	12/31/2012	18.60	18.27	37.05	27,500	-	27,500	-	-	27,500
11th	08/06/2007	12/31/2009	12/31/2012	18.60	-	-	11,357	-	-	-	11,357	11,357
27th	02/01/2005	02/01/2010	01/31/2011	16.52	17.90	39.15	16,389	-	16,389	-	-	203,402
34th	03/21/2007	03/21/2010	03/20/2011	35.94	-	-	75,901	-	-	75,901	-	75,901
35th	03/22/2007	03/22/2010	03/21/2011	35.31	-	-	29,518	-	-	29,518	-	29,518
30th	07/04/2006	07/04/2010	07/03/2011	28.48	-	-	52,710	-	-	-	52,710	52,710
29th	09/19/2005	09/19/2010	09/18/2011	21.59	-	-	12,650	-	12,650	-	-	25,300
12th	02/21/2006	12/31/2010	12/31/2013	27.68	27.20	37.51	8,025,250	-	938,725	-	7,086,525	9,300,284
12th	08/06/2007	12/31/2010	12/31/2013	27.68	-	-	15,867	-	-	-	15,867	15,867
16th	08/10/2009	12/31/2010	12/31/2014	31.47	-	-	874,167	-	-	-	874,167	874,167
34th	03/21/2007	03/21/2011	03/20/2012	35.94	-	-	75,901	-	-	-	75,901	75,901
35th	03/22/2007	03/22/2011	03/21/2012	35.89	-	-	29,518	-	-	-	29,518	29,518
36th	05/14/2008	05/14/2011	05/13/2012	44.66	-	-	25,301	-	-	-	25,301	25,301
Total options to be exercised					20.79	37.22	12,875,221	-	2,643,982	105,419	10,125,820	16,612,073
30th	07/04/2006	07/04/2011	07/03/2012	28.48	-	-	52,707	-	-	-	52,707	52,707
33rd	08/30/2006	08/30/2011	08/29/2012	31.54	-	-	21,083	-	-	-	21,083	21,083
13th	02/14/2007	12/31/2011	12/31/2014	35.24	34.82	36.93	8,546,975	-	507,375	106,425	7,933,175	9,177,025
13th	08/06/2007	12/31/2011	12/31/2014	35.24	-	-	30,649	-	-	-	30,649	30,649
13th	10/28/2009	12/31/2011	12/31/2014	35.24	-	-	45,954	-	-	-	45,954	45,954
34th	03/21/2007	03/21/2012	03/20/2013	35.94	-	-	75,901	-	-	-	75,901	75,901
35th	03/22/2007	03/22/2012	03/21/2013	35.89	-	-	29,514	-	-	-	29,514	29,514
36th	05/14/2008	05/14/2012	05/13/2013	44.66	-	-	25,300	-	-	-	25,300	25,300
17th	09/23/2009	09/23/2012	12/31/2014	36.36	-	-	29,551	-	-	-	29,551	29,551
14th	02/11/2008	12/31/2012	12/31/2015	40.63	-	-	10,846,487	-	-	1,427,659	9,418,828	11,485,485
14th	05/05/2008	12/31/2012	12/31/2015	40.63	-	-	20,625	-	-	-	20,625	20,625
14th	10/28/2009	12/31/2012	12/31/2015	40.63	-	-	45,954	-	-	-	45,954	45,954
36th	05/14/2008	05/14/2013	05/13/2014	44.66	-	-	25,300	-	-	-	25,300	25,300
15th	03/03/2009	12/31/2013	12/31/2016	26.57	26.46	36.57	15,067,330	-	94,850	83,490	14,888,990	16,749,610
15th	10/28/2009	12/31/2013	12/31/2016	26.57	-	-	45,954	-	-	-	45,954	45,954
18th	04/17/2010	12/31/2014	12/31/2017	43.16	-	-	6,126,609	-	-	74,386	6,052,223	6,258,877
18th	05/11/2010	12/31/2014	12/31/2017	43.16	-	-	1,206,340	-	-	12,082	1,194,258	1,290,289
37th	04/19/2011	12/31/2015	12/31/2018	42.16	-	-	-	9,863,110	-	-	9,863,110	-
Total options outstanding					33.50	36.87	42,242,233	9,863,110	602,225	1,704,042	49,799,076	45,409,778
Total simple options					23.15	37.16	55,117,454	9,863,110	3,246,207	1,809,461	59,924,896	62,021,851
Partner options
04th	03/03/2008	03/03/2011	-	-	-	37.22	416,487	-	376,581	-	39,906	420,451
Total options to be exercised						37.22	416,487	-	376,581	-	39,906	420,451
05th	09/03/2008	09/03/2011	-	-	-	-	490,624	-	-	11,687	478,937	497,496
06th	03/06/2009	03/06/2012	-	-	-	-	740,362	-	-	21,339	719,023	754,840
07th	06/19/2009	03/06/2012	-	-	-	-	79,446	-	-	-	79,446	79,446
01st	09/03/2007	09/03/2012	-	-	-	-	329,181	-	-	12,577	316,604	339,717
03rd	02/29/2008	09/03/2012	-	-	-	-	33,474	-	-	-	33,474	33,474
04th	03/03/2008	03/03/2013	-	-	-	-	415,930	-	-	16,016	399,914	419,893
08th	08/17/2010	08/16/2013	-	-	-	-	376,916	-	-	33,483	343,433	-
09th	08/30/2010	08/16/2013	-	-	-	-	359,991	-	-	30,280	329,711	-
11th	09/30/2010	08/16/2013	-	-	-	-	17,717	-	-	-	17,717	-
05th	09/03/2008	09/03/2013	-	-	-	-	490,126	-	-	22,255	467,871	496,998
10th	09/30/2010	09/29/2013	-	-	-	-	1,940,987	-	-	61,009	1,879,978	-
12th	02/28/2011	02/28/2014	-	-	-	-	-	1,585,541	-	10,121	1,575,420	-
06th	03/06/2009	03/06/2014	-	-	-	-	739,608	-	-	35,004	704,604	754,086
07th	06/19/2009	03/06/2014	-	-	-	-	79,445	-	-	-	79,445	79,445
08th	08/17/2010	08/16/2015	-	-	-	-	376,876	-	-	33,483	343,393	-
09th	08/30/2010	08/16/2015	-	-	-	-	359,962	-	-	30,810	329,152	-
11th	09/30/2010	08/16/2015	-	-	-	-	17,712	-	-	-	17,712	-
10th	09/30/2010	09/29/2015	-	-	-	-	1,940,951	-	-	62,161	1,878,790	-
12th	02/28/2011	02/28/2016	-	-	-	-	-	1,585,497	-	10,360	1,575,137	-
Total options outstanding					-	-	8,789,308	3,171,038	-	390,585	11,569,761	3,455,395
Total partner options					-	37.22	9,205,795	3,171,038	376,581	390,585	11,609,667	3,875,846
TOTAL SIMPLE/PARTNER OPTIONS					23.15	37.16	64,323,249	13,034,148	3,622,788	2,200,046	71,534,563	65,897,697

III – Fair Value and Economic Assumptions for Cost Recognition

ITAÚ UNIBANCO HOLDING recognizes, at the granting date, the fair value of options through the Binomial method for simple options and the Black & Scholes method for bonus options. Economic assumptions used are as follows:

Exercise price: for the option exercise price, the exercise price previously agreed-upon at the option issue is adopted, adjusted by the IGP-M variation;

Price of the Underlying Asset: the share price of Itaú Unibanco Holding (ITUB4) used for calculation is the closing price at BOVESPA on the calculation base date;

Expected dividends: the average annual return rate for the last three years of the dividends paid, plus interest on capital of the ITUB4 share;

Risk-free interest rate: the applied risk-free rate is the IGP-M coupon rate at the expiration date of the option plan;

Expected volatility: calculated based on the standard deviation from the history of the last 84 monthly returns of closing prices of the ITUB4 share, released by BOVESPA, adjusted by the IGP-M variation.

				Price of
				the
Granting		Vesting	Exercise	underlying		Fair		Expected			Risk-free			Expected
No.	Date	period	period until	asset		value		dividends			interest rate			volatility
Simple Options
37th	04/19/2011	12/31/2015	12/31/2018		37.26		11.02		2.97	%		5.80	%		30.53	%
Bonus Options (*)
12th	02/28/2011	02/28/2014	-		37.00		33.85		2.97	%		-			-
12th	02/28/2011	02/28/2014	-		37.00		31.83		2.97	%		-			-

(*) The fair value of bonus option is measured based on the fair value of Itaú Unibanco share at the granting date.

IV - Accounting Effects Arising from Options

The exercise of stock options, pursuant to the Plan’s regulation, resulted in the sale of preferred shares held in treasury thus far. The accounting entries related to the plan are recorded during the vesting period, at the deferral of the fair value of options granted with effect on Income, and during the exercise of options, at the amount received from the option exercise price, reflected in Stockholders’ Equity.

The effect of Income for the period from January 1 to June 30, 2011 was R$ 80,112 (R$ 56,134 from January 1 to June 30, 2010), as contra-entry to Capital Reserve – Granted Options Recognized – Law No. 11,638 (Note 16 c).

In the Stockholders’ Equity, the effect was as follows:

Amount received for the sale of shares – exercised options	154,669
(-) Cost of treasury shares sold	(138,568	)
(+) Write-off of cost recognized of exercised options	55,548
Effect on sale (*)	71,649

(*) Recorded in revenue reserves.

NOTE 17 – RELATED PARTIES

a) Transactions between related parties are disclosed in compliance with CVM Resolution No. 642, of October 7, 2010, and CMN Resolution No. 3,750 of June 30, 2009. These transactions are carried out at amounts, terms and average rates in accordance with normal market practices during the period, as well as under reciprocal conditions.

Transactions between companies included in consolidation were eliminated from the consolidated financial statements and take into consideration the lack of risk.

The unconsolidated related parties are the following:

· ITAÚSA, the main parent company of ITAÚ UNIBANCO HOLDING, its controlling companies and non-financial subsidiaries, especially: Itautec S.A., Duratex S.A., Elekeiroz S.A. and Itaúsa Empreendimentos S.A.;

· Fundação Itaubanco, FUNBEP – Fundo de Pensão Multipatrocinado, Caixa de Previdência dos Funcionários do BEG (PREBEG), Fundação Bemgeprev, Itaubank Sociedade de Previdência Privada, UBB – Prev Previdência Complementar, and Fundação Banorte Manuel Baptista da Silva de Seguridade Social, closed-end private pension entities, that administer supplementary retirement plans sponsored by ITAÚ UNIBANCO HOLDING and/or its subsidiaries; and

· Fundação Itaú Social, Instituto Itaú Cultural, Instituto Unibanco, Instituto Assistencial Pedro Di Perna, Instituto Unibanco de Cinema, and Associação Clube “A”,  entities sponsored by ITAÚ UNIBANCO and subsidiaries to act in their respective areas of interest, as described in Notes 22e and 22j.

· Investments in Porto Seguro Itaú Unibanco Participações S.A..

Additionally, there are operations with jointly controlled entities, particularly Banco Investcred Unibanco S.A., Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento, Luizacred S.A. Soc. Créd. Financiamento Investimento, FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento, FIC Promotora de Vendas Ltda. and Ponto Frio Leasing S.A. Arrendamento Mercantil.

The transactions with these related parties are basically characterized by:

	ITAÚ UNIBANCO HOLDING												ITAÚ UNIBANCO HOLDING CONSOLIDATED
	ASSETS/(LIABILITIES)						REVENUE/(EXPENSES)						ASSETS/(LIABILITIES)						REVENUE/(EXPENSES)
	06/30/2011			06/30/2010			01/01 to 06/30/2011			01/01 to 06/30/2010			06/30/2011			06/30/2010			01/01 to 06/30/2011			01/01 to 06/30/2010
Interbank investments		25,628,076			10,427,662			877,312			398,568			1,737,534			-			88,104			-
Itaú Unibanco S.A.		25,628,076			10,427,662			877,312			398,568			-			-			-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			490,880			-			25,056			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			334,748			-			15,646			-
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-			911,761			-			47,394			-
Other		-			-			-			-			145			-			8			-
Derivative financial instruments		-			(2,143	)		(312	)		(880	)		-			-			-			-
Itaú Unibanco S.A.		-			(2,143	)		(312	)		(880	)		-			-			-			-
Deposits		(4,012,223	)		(3,177,246	)		(188,615	)		(103,022	)		(6,578	)		-			(569	)		-
Itaú Unibanco S.A.		(4,012,223	)		(3,177,246	)		(188,615	)		(103,022	)		-			-			-			-
Ponto Frio Leasing S.A. Arrendamento Mercantil		-			-			-			-			(5,266	)		-			(557	)		-
Banco Investcred Unibanco S.A.		-			-			-			-			(1,312	)		-			(12	)		-
Repurchase agreements		-			-			-			-			(97,256	)		(68,354	)		(5,244	)		(1,711	)
Itaúsa Empreendimentos S.A.		-			-			-			-			(56,648	)		(49,883	)		-			(1,109	)
Duratex S.A.		-			-			-			-			(5,585	)		(5,588	)		(1,004	)		-
Elekeiroz S.A.		-			-			-			-			-			(12,631	)		(1,317	)		(602	)
Itautec S.A.		-			-			-			-			(9,856	)		-			-			-
FIC Promotora de Venda Ltda.		-			-			-			-			(8,251	)		-			(364	)		-
Facilita Promotora S.A.		-			-			-			-			(6,515	)		-			(302	)		-
Olimpia Promoção e Serviços S.A.		-			-			-			-			(3,349	)		-			(265	)		-
Banco Investcred Unibanco S.A.		-			-			-			-			(7,052	)		-			(675	)		-
Porto Seguro S.A.		-			-			-			-			-			-			(8	)		-
Other		-			-			-			-			-			(252	)		(1,309	)		-
Amounts receivable from (payable to) related companies		(3,925	)		(352	)		-			16			(63,150	)		(59,174	)		-			135,790
Itaú Unibanco S.A.		(3,557	)		-			-			16			-			-			-			-
Itaú Corretora de Valores S. A.		(368	)		(352	)		-			-			-			-			-			-
Itaúsa Investimentos S.A.		-			-			-			-			67,081			63,234			-			135,790
Porto Seguro S.A.		-			-			-			-			(927	)		-			-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			(2,016	)		-			-			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			(740	)		-			-			-
Olimpia Promoção e Serviços S.A.		-			-			-			-			(167	)		-			-			-
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-			(13,802	)		-			-			-
Fundação Itaubanco		-			-			-			-			1,098			1,086			-			-
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			278			199			-			-
Caixa de Prev.dos Func. do Banco Beg - PREBEG		-			-			-			-			(9,563	)		(11,407	)		-			-
Fundação BEMGEPREV		-			-			-			-			(3,207	)		(13,271	)		-			-
UBB Prev Previdência Complementar		-			-			-			-			(19,194	)		(15,267	)		-			-
Fundação Banorte Manuel Baptista da Silva de Seguridade Social		-			-			-			-			(81,123	)		(83,748	)		-			-
Other		-			-			-			-			(868	)		-			-			-
Banking service fees (expenses)		-			-			(2,277	)		-			-			-			27,688			10,713
Itaú Corretora de Valores S. A.		-			-			(2,277	)		-			-			-			-			-
Fundação Itaubanco		-			-			-			-			-			-			10,233			6,207
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			2,337			1,309
UBB Prev Previdência Complementar		-			-			-			-			-			-			662			2,042
Itaúsa Investimentos S.A.		-			-			-			-			-			-			333			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			-			-			840			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			-			-			436			-
Olímpia Promoção e Serviços S.A.		-			-			-			-			-			-			810			-
Porto Seguro S.A.		-			-			-			-			-			-			10,569			-
Other		-			-			-			-			-			-			1,468			1,155
Rent revenues/(expenses)		-			-			(113	)		-			-			-			(18,601	)		(15,249	)
Itaúsa Investimentos S.A.		-			-			(8	)		-			-			-			(697	)		-
Itaú Seguros S.A.		-			-			(80	)		-			-			-			-			-
Fundação Itaubanco		-			-			-			-			-			-			(12,831	)		(11,658	)
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			(4,251	)		(3,211	)
Other		-			-			(25	)		-			-			-			(822	)		(380	)
Donation expenses		-			-			-			-			-			-			(27,190	)		(21,025	)
Instituto Itaú Cultural		-			-			-			-			-			-			(27,000	)		(20,917	)
Fundação Itaú Social		-			-			-			-			-			-			(190	)		(108	)
Data processing expenses		-			-			(28	)		-			-			-			(147,279	)		(135,744	)
Itautec S.A.		-			-			(28	)		-			-			-			(147,279	)		(135,744	)
Non-Operating Income		-			-			-			-			-			-			48,088			-
Itaúsa Investimentos S.A.		-			-			-			-			-			-			48,088			-

In addition to the aforementioned operations, ITAÚ UNIBANCO HOLDING and non-consolidated related parties, as an integral part of the Agreement for Apportionment of Common Costs of Itaú Unibanco, recorded in Other Administrative Expenses, the amount of R$ 4,602 (R$ 8,591 from 01/01 to 06/30/2010) in view of the use of common structure.

In accordance with the rules in effect, financial institutions cannot grant loans or advances to the following:

a) any individual or company that controls the Institution or any entity under common control, or to any officer, director, fiscal council member or direct relative of such individuals;

b) any entity controlled by the Institution; or

c) any entity of which the bank directly or indirectly holds at least 10% of capital stock.

Therefore, no loans or advances are made to any subsidiaries, executive officers, Board of Directors members or their relatives.

Itaú Unibanco Holding made regular donations to Fundação Itaú Social, a philanthropic foundation which objectives are: to create "Programa Itaú Social", aimed at coordinating activities that are of the community’s interest, support and develop social, scientific and cultural projects, mainly in the elementary education and health areas; support projects or initiatives in progress, maintained or sponsored by entities qualified to work, according to "Programa Itaú Social". In addition, Itaú Unibanco is the founding partner and supporter of Instituto Itaú Cultural (IIC), an entity which objective is to promote and preserve the Brazilian cultural heritage.

b) Compensation of the Management Key Personnel

The fees attributed in the period to ITAÚ UNIBANCO HOLDING management members are as follows:

	06/30/2011		06/30/2010
Compensation		157,134		125,134
Board of Directors		2,899		1,659
Management members		154,235		123,475
Profit sharing		106,524		116,347
Board of Directors		1,000		2,500
Management members		105,524		113,847
Contributions to pension plans		3,618		1,520
Board of Directors		82		376
Management members		3,536		1,144
Stock option plan – Management members		69,340		56,134
Total		336,616		299,135

Information related to the granting of stock option plan, benefits to employees and post-employment benefits are detailed in Notes 16f IV and 19, respectively.

NOTE 18 - MARKET VALUE

The financial statements are prepared in accordance with accounting principles which assume the normal continuity of the operations of ITAÚ UNIBANCO HOLDING and its subsidiaries.

The book value of each financial instrument, whether included or not in the balance sheet, when compared to the value that might be obtained in an active market, or in the absence of such market, using the net present value of future cash flows adjusted based on the current market interest, is approximately equal to the market value, or does not have a market quotation available, except for the instruments in the table below:

									Unrealized income (loss) (3)
	BOOK VALUE				MARKET				Results						Stockholders’ equity
	06/30/2011		06/30/2011		06/30/2010		06/30/2011		06/30/2010			06/30/2011			06/30/2010			06/30/2010
Interbank deposits		15,279,798		13,683,202		15,284,062		13,700,908		4,264			17,706			4,264			17,706
Securities and derivative financial instruments		180,732,945		126,779,992		181,298,638		127,352,103		949,619			1,094,161			565,693			572,111
Adjustment of available-for-sale securities										372,711			537,692			-			-
Adjustment of held-to-maturity securities										576,908			556,469			565,693			572,111
Loan, lease and other credit operations		293,189,034		239,033,955		293,297,580		239,398,399		108,546			364,444			108,546			364,444
Investments
BM&FBovespa		58,107		58,107		465,066		522,242		406,959			464,135			406,959			464,135
BPI		429,864		726,934		429,864		573,225		-			(153,709	)		-			(153,709	)
Cetip S.A.		30,333		34,682		362,470		313,547		332,137			278,865			332,137			278,865
Redecard S.A.		683,628		709,014		7,914,135		8,580,377		7,230,507			7,871,363			7,230,507			7,871,363
Serasa S.A.		266,181		251,118		646,851		641,753		380,670			390,635			380,670			390,635
Parent company		176,093		166,128		556,763		556,763		380,670			390,635			380,670			390,635
Minority stockholders (1)		90,088		84,990		90,088		84,990		-			-			-			-
Fundings and borrowings (2)		175,409,408		143,557,403		175,498,515		143,587,503		(89,107	)		(30,100	)		(89,107	)		(30,100	)
Subordinated debt (Note 10f)		37,826,792		28,966,446		38,025,424		29,219,997		(198,632	)		(253,551	)		(198,632	)		(253,551	)
Treasury shares		1,048,000		875,738		1,321,923		1,202,957		-			-			273,923			327,219
Total unrealized										9,124,963			10,043,949			9,014,960			9,849,118

(1) The investment held by minority stockholders does not affect the result of ITAÚ UNIBANCO HOLDING;

(2) Funding is represented by interbank and time deposits and funds from acceptance and issuance of securities;

(3) It does not consider the corresponding tax effects.

To obtain the market values for these financial instruments, the following criteria were adopted:

· Interbank investments were determined based on their nominal amounts, monetarily restated to maturity dates and discounted to present value using future market interest rates and swap market rates for fixed-rate securities and using market interest rates for fixed-rate securities, achieved at the closing of BM&F at the balance sheet date, for floating-rate securities;

· Securities and derivative financial instruments, according to the rules established by Circulars No. 3,068 and 3,082 of November 8, 2001 and January 30, 2002, respectively, issued by the Central Bank of Brazil (BACEN), are recorded at their market value, except for those classified as Held to Maturity. Government securities allocated in this category have their market value calculated based on the rates obtained in the market, and validated through the comparison with information provided by the National Association of Financial Market Institutions (ANDIMA). Private securities included in this category have their market value calculated using a criterion similar to the one adopted for Investments in Interbank Deposits, as described above;

· Loans with maturity over 90 days, when available, were calculated based on their net present value of future cash flows discounted at market interest rates effective on the balance sheet date, taking into account the effects of hedges as well (swap contracts);

· Investments - in BPI, Redecard S.A., BM&FBovespa and Visa Inc. are determined based on stock market quotations, and in Serasa S.A. are determined based on the last transaction prices;

· Time and interbank deposits and funds from acceptance and issuance of securities and foreign borrowings through securities, when available, were calculated based on their present value determined by future cash flows discounted at market rates obtained at the closing of BM&F on the balance sheet date;

· Subordinated debt, based on the net present value of future fixed or floating cash flows in foreign currency, net of the interest rates practiced in the market on the balance sheet date and considering the credit risk of the issuer. The floating cash flows are estimated as from the interest curves of the indexation market places;

· Treasury shares are valued according to the average quotation available on the last trading day of the month or, if this is not available, according to the most recent quotation on prior trading days, published in the daily bulletin of each Stock Exchange.

NOTE 19 – BENEFITS TO EMPLOYEES

Pursuant to CVM Resolution No. 600, dated October 7, 2009, we present the policies adopted by ITAÚ UNIBANCO HOLDING and its subsidiaries regarding benefits to employees, as well as the accounting procedures adopted:

ITAÚ UNIBANCO HOLDING and some of its subsidiaries sponsor defined benefit and variable contribution plans, which basic purpose is granting benefits that, in general, provide a life annuity benefit, and may be converted into survivorship annuities, according to the plan's regulation. They also sponsor defined contribution plans, the benefit of which is calculated based on the accumulated balance at the eligibility date, according to the plan's regulation, which does not require actuarial calculation.

Employees hired until July 31, 2002, who come from Itaú, and until February 27, 2009, who come from Unibanco, are beneficiaries of the above-mentioned plans. As regards the employees hired after these dates, they have the option to voluntarily participate in a defined contribution plan (PGBL), managed by Itaú Vida e Previdência S.A.

a) Description of the Plans

The plans’ assets are invested in separate funds, with the exclusive purpose of providing benefits to eligible employees, and they are maintained independently from ITAÚ UNIBANCO HOLDING. These funds are maintained by closed-end private pension entities with independent legal structures, as detailed below:

Entity	Benefit plan
Fundação Itaubanco	Supplementary retirement plan – PAC (1)
	Franprev benefit plan - PBF (1)
	002 benefit plan - PB002 (1)
	Itaulam basic plan - PBI (1)
	Itaulam Supplementary Plan - PSI (2)
	Itaubanco CD Plan (3) (4)
Fundação BEMGEPREV	Supplementary Retirement Plan – Flexible Premium Annuity (ACMV) (1)
Funbep Fundo de Pensão Multipatrocinado	Funbep I Benefit Plan (1)
	Funbep II Benefit Plan (2)
Caixa de Previdência dos Funcionários do Banco Beg - Prebeg	Prebeg Benefit Plan (1)
Itaú Fundo Multipatrocinado	Itaú Defined Benefit Plan (1)
	Itaú Defined Contribution Plan (2)
Múltipla - Multiempresas de Previdência Complementar	Redecard Basic Retirement Plan (1)
	Redecard Supplementary Retirement Plan (2)
Itaubank Sociedade de Previdência Privada	Itaubank Retirement Plan (3)
UBB-PREV - Previdência Complementar	Unibanco Pension Plan (3)
	Basic Plan (1)
	IJMS Plan (1)
Banorte Fundação Manoel Baptista da Silva de Seguridade Social	Benefit Plan II (1)

(1)      Defined benefit plan;

(2)      Variable contribution plan;

(3)      Defined contribution plan;

(4)      The Itaubanco Defined Contribution Plan was set up as a result of the partial spin-off of the Supplementary retirement plan - PAC, and is being offered to former participants of the latter, which is not receiving supplementary retirement by the PAC. The participants who have not joined the Itaubanco Defined Contribution Plan, as well as those contributing to the PAC, will remain in this latter, without any continuity, and will have their vested rights guaranteed.  As set forth in the Itaubanco Defined Contribution Plan regulation, the transaction and novation period ended on May 8, 2010.

b) Defined benefit plan

I - Main assumptions used in actuarial valuation of Retirement Plans

	2011	2010
Discount rate (1)	9.72% p.a.	10,24% p.a.
Expected return rate on assets	12,32 % p.a.	12,32% p.a.
Mortality table (2)	AT-2000	AT-2000
Turnover (3)	Itaú Exp. 2003/2004	Itaú Exp. 2003/2004
Future salary growth	7,12 % p.a.	7,12% p.a.
Growth of the pension fund and social security benefits	4.00 % p.a.	4,00% p.a.
Inflation	4.00 % p.a.	4,00% p.a.
Actuarial method (4)	Projected Unit Credit	Projected Unit Credit

(1) Upon determination for amounts at the 01/01/2010 base date, the discount rate of 10.24% p.a was adopted.

(2) The mortality tables adopted correspond to those disclosed by SOA – Society of Actuaries, the North-American Entity which corresponds to IBA – Brazilian Institute of Actuarial Science, which reflects a 10% increase in the probabilities of survival as compared to the respective basic tables;

The life expectancy in years by the AT-2000 mortality table for participants of 55 years of age is 27 and 31 years for men and women, respectively.

(3) The turnover assumption is based on the effective experience of ITAÚ UNIBANCO HOLDING, resulting in the average of 1.2 % p.a. based on the 2003/2004 experience;

(4) Using the Projected Unit Credit, the mathematical reserve is determined by the current projected benefit amount multiplied by the ratio between the length of service in the company at the assessment date and the length of service that will be reached at the date when the benefit is granted. The cost is determined taking into account the current projected benefit amount distributed over the years that each participant is employed.

The basic difference between the assumptions above and those adopted upon determination of the actuarial liability of defined benefit plans, for purposes of recording in the balance sheet of the closed-end private pension entities that manage them, is the actuarial method. For this purpose, the Bank adopts the aggregate method, by which the mathematical reserve is defined based on the difference between the present value of the projected benefit and the present value of future contributions, subject to the methodology defined in the respective actuarial technical note.

II –Management of defined benefit plan assets

The purpose of the management of the funds from the closed-end private pension entities is the long-term balance between social security assets and liabilities by exceeding the actuarial goals.

As regards the assets guaranteeing mathematical reserves, management should ensure the payment capacity of benefits in the long-term by preventing the risk of mismatching assets and liabilities by pension plan.

At June 30, 2011, the allocation of plan assets and the allocation target for 2011, by type of asset, are as follows:

					% Allocation
Types	At 06/30/20011		At 06/30/20010		06/30/2011			06/30/2010			2011 Target
Fixed income securities		10,197,681		8,138,305		87.58	%		80.00	%	53% to 100%
Variable income securities		1,050,561		1,658,768		9.03	%		16.31	%	0% to 25%
Structured investments		13,695		14,267		0.12	%		0.14	%	0% to 10%
Foreign investments		3,961		4,622		0.03	%		0.05	%	0% to 3%
Real estate		349,281		333,100		3.00	%		3.27	%	0% to 4%
Loans to participants		24,477		23,828		0.21	%		0.23	%	0% to 5%
Other realizable amounts		3,785		-		0.03	%		0.00	%	0% to 3%
Total		11,643,441		10,172,890		100.00	%		100.00	%

The defined benefit plan assets include shares of ITAÚ UNIBANCO HOLDING, its main parent company (ITAÚSA) and of subsidiaries of the latter, with a fair value of R$ 478,186 (R$ 886,785 at 06/30/2010), and real estate rented to Group companies, with a fair value of R$  299,073 (R$ 311,209 at 06/30/2010).

The expected income from defined benefit plan assets are based on projections of returns for each of the portfolios detailed above. For the fixed-income segment, the adopted  interest rates were taken from long-term securities included in the portfolios, and the interest rates practiced in the market at the closing of the balance sheet. For the variable-income segment, the 12-month expected returns of the market for this segment were adopted.  For the real estate segment, the cash inflows of expected rental payments for the following 12 months were adopted.  For all segments, the basis adopted was the portfolio positions at the balance sheet date.

III- Net amount recognized in the balance sheet

We present below the calculation of the net amount recognized in the balance sheet:

	06/30/2011			06/30/2010
1 - Net assets of the plans		11,643,441			10,172,890
2 - Actuarial liabilities		(10,106,711	)		(8,828,220	)
3- Surplus (1-2)		1,536,730			1,344,670
4- Asset restriction (*)		(1,215,740	)		(1,043,042	)
5 - Net amount recognized in the balance sheet (3-4)		320,990			301,628
Amount recognized in Assets		443,570			432,045
Amount recognized in Liabilities		(122,580	)		(130,417	)

(*) Corresponds to the excess of present value of the available economic benefit, in conformity with item 58 of CVM Resolution No. 600.

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated to 01/01/2010 were recognized in Stockholders’ equity, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period from 01/01 to 06/30/2011 were recognized in Results under “General and administrative expenses”.

IV - Change in net assets, actuarial liabilities, and surplus

	06/30/2011									06/30/2010
	Net assets			Actuarial liabilities			Surplus			Net assets			Actuarial liabilities			Surplus
Present value – beginning of the period		11,167,828			(9,815,180	)		1,352,648			14,757,268			(11,180,214	)		3,577,054
Effects of the partial spin-off of PAC (1);		-			-			-			(5,147,142	)		2,709,982			(2,437,160	)
Inclusion of Redecard plan		60,817			(55,897	)		4,920			-			-			-
Expected return on assets (3)		673,037			-			673,037			741,601			-			741,601
Cost of current service		-			(47,152	)		(47,152	)		-			(43,628	)		(43,628	)
Cost of interest		-			(467,086	)		(467,086	)		-			(500,523	)		(500,523	)
Benefits paid		(280,220	)		280,220			-			(261,921	)		261,921			-
Contributions of sponsor		15,869			-			15,869			13,056			-			13,056
Contributions of participants		4,507			-			4,507			16,672			-			16,672
Actuarial gain/(loss) (2) (3)		1,603			(1,616	)		(13	)		53,356			(75,758	)		(22,402	)
Present value – end of the period		11,643,441			(10,106,711	)		1,536,730			10,172,890			(8,828,220	)		1,344,670

(1) Corresponds to the effect of the partial spin-off of the PAC and creation of the Itaubanco Defined Contribution Plan, which migration process resulted in the reduction and partial settlement of PAC payables. The reduction which implied a decrease in payables and thus in actuarial liabilities, made on December 31, 2009, is already adjusted in the opening balance (January 1, 2010). At March 31, 2010, the PAC participants who opted for the voluntary migration to the Itaubanco CD Plan had all of their amounts payable settled by PAC through the initial contribution of the assets previously held by PAC for individual accounts corresponding to the Itaubanco CD plan. PAC is no longer respnsible for any retirement benefit at the PAC level related to these participants. After the partial termination of PAC, assets were transferred from PAC to Itaubanco CD plan

(2) Gains recorded in Net Assets correspond to the income earned above the expected return rate of assets.

(3) The actual return on assets amounted to R$ 674,640 (R$ 794,957 at 06/30/2010).

V- Total expenses recognized in income for the year

Total expenses recognized in defined benefit plans include components, as follows:

	06/30/2011			06/30/2010
Cost of current service		(47,152	)		(43,628	)
Cost of interest		(467,086	)		(500,523	)
Expected return on the plan assets		673,037			741,601
Effects of the partial spin-off of PAC		-			(2,437,160	)
Effect on asset restriction		(107,062	)		1,990,397
(Gain) loss for the year		(13	)		(22,402	)
Contributions of participants		4,507			16,672
V- Total expenses recognized in income for the year		56,231			(255,043	)

During the period, contributions made totaled R$ 15,869 (R$ 13,056 at June 30, 2010). The contribution rate increase is based on the beneficiary's salary.

In 2011, the expected contribution to retirement plans sponsored by ITAÚ UNIBANCO HOLDING is R$ 37,155.

c) Defined contribution plans

The defined contribution plans have pension funds set up by the portion of sponsors’ contributions not included in the participant’s accounts balance and by the loss of eligibility to a plan benefit, as well as by resources from the migration from the defined benefit plans. The fund will be used for future contributions to the individual participants' accounts, according to the rules of the respective benefit plan regulation.

At June 30, 2011, the amount recognized in assets is R$ 1,176,445.

Total revenue recognized in defined benefit plans includes the following components:

	06/30/2011			06/30/2010
Effects of the partial spin-off of PAC		-			1,476,743
Contributions		(73,601	)		(43,684	)
Actuarial gain/(loss)		(1,380	)		208
Effect on asset restriction		82,259			(457,893	)
Total revenue recognized in income for the year		7,278			975,374

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated to 01/01/2010 were recognized in Stockholders’ equity from January 1 to June 30, 2011, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period were recognized in Results under “General and administrative expenses”.

During the period, contributions to the defined contribution plans, including PGBL, totaled R$ 93,022 (R$ 63.377 at June 30, 2010), of which R$ 73,601 (R$ 43,684 at June 30, 2010) were from pension funds.

d) Other Post-employment benefits

ITAÚ UNIBANCO HOLDING and its subsidiaries do not offer other post-employment benefits, except in those cases arising from maintenance obligations according to the acquisition agreements signed by Itaú Unibanco Holding, under the terms and conditions established, in which health plans are totally or partially sponsored for retired workers and beneficiaries.

I- Changes

Based on the reported prepared by independent actuary, the changes in obligations for these other projected benefits and the amounts recognized in the balance sheet, under liabilities, of Itaú Unibanco Holding, are as follows:

	06/30/2011			06/30/2010
At the beginning of the year		(105,335	)		(100,280	)
Cost of interest		(4,984	)		(4,999	)
Benefits paid		2,894			2,792
At the end of the year		(107,425	)		(102,487	)

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated to 01/01/2010 were recognized in Stockholders’ equity from January 1 to June 30, 2011, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period were recognized in Results under “General and administrative expenses”.

II- Assumptions and sensibilities 1%

For calculation of benefits obligations projected beyond the assumptions used for the defined benefit plans (Note 28b l), the 8.16%p.a. increase in medical costs assumption is adopted.

Assumptions related to rates related to medical assistance costs have a significant impact on the amounts recognized in income. A change of one percentage point in the medical assistance cost rates would have the effects as follows:

	1.0% increase		1.0% decrease
Effects on service cost and cost of interest		1,477		(1,137	)
Effects on present value of obligation		14,121		11,394

NOTE 20 – INFORMATION ON FOREIGN SUBSIDIARIES

	Foreign branches (1)						Itaú Argentina Consolidated (2)						Itaú Europa Consolidated (3)						Cayman Consolidated (4)						Chile Consolidated (5)						Uruguay Consolidated (6)						Banco Itaú Paraguay						Other foreign companies (7)						Foreign consolidated (8)
	06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010			06/30/2011			06/30/2010
ASSETS
Current assets and long-term receivables
Cash and cash equivalents		1,674,585			1,539,904			123,214			99,597			1,238,075			1,559,726			1,881,379			3,472,983			415,955			450,849			644,798			457,163			208,716			181,243			1,098,536			866,169			4,490,368			5,300,966
Interbank investments		11,615,897			5,518,095			290,204			171,786			609,264			2,585,893			5,019,371			4,597,858			15,371			74,736			663,184			603,569			63,383			114,979			331,543			-			11,888,204			7,070,436
Securities		32,927,582			18,071,555			187,132			201,140			1,833,636			1,387,600			5,175,125			4,712,516			1,454,562			1,568,605			399,100			765,049			391,058			368,901			518			2,120			41,048,559			24,585,015
Loan, lease and other credit operations		24,806,786			23,825,357			1,549,490			1,354,480			5,878,232			5,199,406			266,604			276,524			9,623,291			7,738,026			1,525,316			1,206,232			1,617,680			1,107,095			5,331			19,163			45,197,040			40,632,755
Foreign exchange portfolio		21,774,115			15,789,907			49,822			73,217			1,652,684			5,759,870			716,470			562,791			190,026			579,028			1,570			39,789			59,656			49,046			-			-			24,038,963			16,860,285
Other assets		1,449,128			767,739			359,002			372,861			356,339			175,411			2,009,086			869,618			353,318			342,974			492,045			392,270			443,743			349,962			175,744			111,955			5,593,741			3,379,946
Permanent assets
Investments		25,614			-			1,944			2,068			214,101			372,949			37,301			40,333			661			1,009			535			361			806			782			226,341			381,032			468,548			733,585
BPI (Note 14a II)		-			-			-			-			210,633			370,736			-			-			-			-			438			-			-			-			219,231			356,197			429,864			726,933
Other investments		25,614			-			1,944			2,068			3,468			2,213			37,301			40,333			661			1,009			97			361			806			782			7,110			24,835			38,684			6,652
Fixed and intangible assets		15,018			24,951			84,313			59,877			162,134			197,991			2,318			1,491			204,126			183,708			22,212			19,976			20,363			16,136			38,064			22,225			548,548			526,403
Total		94,288,725			65,537,508			2,645,121			2,335,026			11,944,465			17,238,846			15,107,654			14,534,114			12,257,310			10,938,935			3,748,760			3,484,409			2,805,405			2,188,144			1,876,077			1,402,664			133,273,971			99,089,391
LIABILITIES
Current and long-term liabilities
Deposits		30,374,901			21,140,788			1,858,919			1,792,613			4,546,587			7,295,520			1,793,132			1,637,165			7,403,330			7,280,394			2,943,964			2,719,046			2,047,962			1,720,352			28,527			5			42,750,127			33,093,430
Demand deposits		4,745,219			6,097,634			482,415			447,792			2,131,430			2,886,952			846,523			1,198,859			1,311,443			1,405,683			1,665,274			1,462,183			744,497			595,601			-			-			9,092,468			9,312,369
Savings deposits		-			-			535,319			460,635			-			-			-			-			-			-			987,713			854,899			880,874			788,005			-			-			2,403,906			2,103,540
Interbank deposits		8,895			2,734,387			82,350			52,683			1,492,981			2,146,102			-			222,892			-			12			7,421			20,706			-			79,485			28,527			-			1,214,166			1,049,051
Time deposits		25,620,787			12,308,767			758,835			831,503			922,176			2,262,466			946,609			215,414			6,091,887			5,874,699			283,556			381,258			422,591			257,261			-			5			30,039,587			20,628,470
Deposits received under securities repurchase agreements		5,913,154			3,949,102			186,768			66,204			-			-			1,927,262			869,641			136,028			218,412			-			-			-			-			-			-			6,865,570			4,427,263
Funds from acceptance and issuance of securities		4,951,718			1,132,460			-			-			2,993,602			1,714,162			2,723,132			2,555,866			1,005,227			312,559			-			-			-			-			-			-			11,673,671			5,711,954
Borrowings and onlending		11,856,699			7,864,850			89,932			34,732			636,575			618,655			51,873			64,843			969,924			664,790			42,886			3,202			134,643			24,159			-			35,736			13,783,520			9,274,746
Derivative financial instruments		2,394,514			1,297,685			942			427			375,001			181,189			1,141,482			1,082,961			117,600			71,602			2,312			311			-			-			-			-			2,711,731			1,408,094
Foreign exchange portfolio		21,699,682			15,788,035			49,871			72,763			1,654,456			5,767,561			704,046			558,915			191,114			575,245			1,570			38,445			52,933			49,138			-			-			23,948,292			16,856,739
Other liabilities		7,115,825			4,549,366			228,590			209,998			388,433			270,430			891,262			863,577			858,431			389,003			449,245			408,736			168,536			102,044			126,030			74,147			10,134,711			6,789,475
Deferred income		41,665			4,505			-			-			21,274			11,888			140			292			720			178			4,832			-			87			108			1,859			3,221			70,577			20,193
Minority interest in subsidiaries		-			-			32,276			821			60			37			-			30			146			121			-			-			-			-			4			9			241			269
Stockholders' equity
Capital and reserves		9,009,392			9,146,546			208,761			161,480			1,392,507			1,321,057			5,949,038			6,957,232			1,477,238			1,347,574			302,613			271,489			336,364			245,483			1,777,365			1,316,062			20,446,736			20,703,465
Result for the period		931,175			664,171			(10,938	)		(4,012	)		(64,030	)		58,347			(73,713	)		(56,408	)		97,552			79,057			1,338			43,180			64,880			46,860			(57,708	)		(26,516	)		888,795			803,763
Total		94,288,725			65,537,508			2,645,121			2,335,026			11,944,465			17,238,846			15,107,654			14,534,114			12,257,310			10,938,935			3,748,760			3,484,409			2,805,405			2,188,144			1,876,077			1,402,664			133,273,971			99,089,391
Statement of income
Income from financial operations		1,538,317			825,867			136,759			123,510			218,574			72,013			60,135			26,052			434,392			335,383			52,931			92,569			119,572			84,376			37,507			(64,354	)		2,563,632			1,460,650
Expenses of financial operations		(673,932	)		(151,484	)		(38,564	)		(35,204	)		(173,774	)		(7,635	)		(120,456	)		(65,860	)		(201,241	)		(105,475	)		(5,815	)		(5,134	)		(24,161	)		(15,605	)		(1,786	)		(1,000	)		(1,189,571	)		(360,277	)
Result of loan losses		55,217			(4,918	)		(8,039	)		(9,434	)		(1,420	)		13,799			-			-			(24,857	)		(63,622	)		(10,492	)		(8,719	)		(7,788	)		(4,241	)		(1,154	)		(19,163	)		1,467			(96,297	)
Gross income from financial operations		919,602			669,465			90,156			78,872			43,380			78,177			(60,321	)		(39,808	)		208,294			166,286			36,624			78,716			87,623			64,530			34,567			(84,517	)		1,375,528			1,004,076
Other operating revenues (expenses)		11,662			(4,837	)		(100,455	)		(89,778	)		(86,612	)		1,563			(12,506	)		(16,024	)		(87,622	)		(69,839	)		(22,284	)		(19,997	)		(14,934	)		(13,107	)		(76,040	)		74,099			(404,630	)		(131,324	)
Operating income		931,264			664,628			(10,299	)		(10,906	)		(43,232	)		79,740			(72,827	)		(55,832	)		120,672			96,447			14,340			58,719			72,689			51,423			(41,473	)		(10,418	)		970,898			872,752
Non-operating income		(12	)		(454	)		570			7,032			-			(93	)		159			-			(1,009	)		(380	)		49			(12	)		(268	)		1,231			501			(98	)		(739	)		7,225
Income before taxes on income and profit sharing		931,252			664,174			(9,729	)		(3,874	)		(43,232	)		79,647			(72,668	)		(55,832	)		119,663			96,067			14,389			58,707			72,421			52,654			(40,972	)		(10,516	)		970,159			879,977
Income tax		(77	)		(3	)		-			-			(18,516	)		(21,299	)		-			-			(22,098	)		(17,002	)		(13,051	)		(15,527	)		(7,541	)		(5,794	)		(16,738	)		(16,001	)		(78,022	)		(75,626	)
Statutory participation in income		-			-			-			-			(2,280	)		-			(1,045	)		(575	)		-			-			-			-			-			-			-			-			(3,325	)		(575	)
Minority interest in subsidiaries		-			-			(1,209	)		(138	)		(2	)		(1	)		-			(1	)		(13	)		(8	)		-			-			-			-			2			1			(17	)		(13	)
Net income (loss)		931,175			664,171			(10,938	)		(4,012	)		(64,030	)		58,347			(73,713	)		(56,408	)		97,552			79,057			1,338			43,180			64,880			46,860			(57,708	)		(26,516	)		888,795			803,763

(1) Itaú Unibanco S.A. - Grand Cayman, New York, Tokyo and Nassau Branches, Banco Itaú-BBA S.A. - Nassau Branch,  Uruguay Brach, Itaú Unibanco Holding S.A. - Grand Cayman Branch and Unibanco  Grand Cayman Branch;

(2) Banco Itaú Argentina S.A,Itaú Asset Management S.A.Sociedad Gerente de Fondos Comunes de Inversión, Itrust Servicios Inmobiliarios S.A.C.I and Itaú Sociedad de Bolsa S.A.

(3) IPI - Itaúsa Portugal Investimentos, SGPS Lda. (49%),  Itaúsa Europa - Investimentos, SGPS, Lda., Itaú Europa, SGPS, Lda., Itaúsa Portugal - SGPS, S.A., Banco Itau BBA International, S.A , Itau BBA International (Cayman) Ltd., Banco Itaú Europa Luxembourg S.A., BIE Cayman, Ltd., Banco Itaú Europa International, Bie Bank & Trust Bahamas Ltd.,  Itaú Europa Securities Inc., Itaú Madeira Investimentos, SGPS Ltda, BIE Directors Ltd, BIE Nominees, Lda,  Kennedy Director International Services S.A., Federal Director International Services, S.A., Bay State Corporation Limited and Cape Ann Corporation Limited; only at  06/30/2011, Banco Itau Suisse S.A; only at  06/30/2010, BIEL Holdings AG and Fin Trade.

(4) Itau Bank Ltd., BFB Overseas Cayman, Ltd., ITB Holding Ltd., Jasper International Investiment LLC, Unibanco Cayman Bank Ltd., Unicorp Bank & Trust Ltd., Unibanco Securities, Inc, Itau USA Asset Management, Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd., Rosefield Finance Ltd. e UBT Finance S.A.; only at 06/30/2010, BFB Overseas N.V.

(5) Itaú Chile Holdings, Inc., BICSA Holdings LTD., Banco Itaú Chile S.A., Itaú Chile Inversiones, Servicios Y Administración S.A., Itaú Chile Corredor de Bolsa Ltda., Itaú Chile Corredora de Seguros Ltda., Itaú Chile Administradora General de Fondos S.A., Itaú Chile Securitizadora S.A., Recuperadora de Créditos Ltda and Itaú Chile Compañia de Seguros de Vida S.A.

(6) ACO Ltda., Banco Itaú Uruguay S.A., OCA Casa Financiera S.A., OCA S.A and  Unión Capital AFAP S.A;

(7) Afinco Americas Madeira, SGPS, Soc. Unipessoal Ltda., Zux Cayman Company Ltd., Topaz Holding Ltd., United Corporate Services Inc (new company name of  Itaú USA Inc), Itaú International Investment LLC,  Albarus S.A., Banco Del Paraná S.A., Garnet Corporation, Itau Global Asset Management, Mundostar S.A., Karen International Ltd., Nevada Woods S.A., Itaú Asia Securities Ltd., Líbero Trading International Ltd., IPI - Itaúsa Portugal Investimentos, SGPS Lda. (51%), Itaú BBA USA Securities Inc., Itaú Middle East Limited (new company name of 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,Itau BBA UK Securities Limited, Itaú Japan Asset Management Ltd.; only at 06/30/2011, Itaú Beijing Investment Consultancy Limited; only at 06/30/2010, Zux SGPS, Lda., Agate SARL, Amethyst Holding Ltd., Spinel Corporation and Tanzanite Corporation.

(8) Foreign consolidated information presents balances net of elimination from consolidation.

NOTE 21 – RISK MANAGEMENT

The purpose of risk identification is to map the risk events of internal and external nature that may affect the strategies of support and business units and the fulfillment of their objectives, with possibility of impact on income, capital and liquidity of the Bank.

Risk management is considered by Itaú Unibanco Holding an essential tool for optimizing the use of capital and selecting the best business opportunities, in order to obtain the best risk-return ratio.

At Itaú Unibanco Holding, Risk Management is the process in which:

· Existing and potential risks of a transaction are identified;

· Risk limits consistent with the Board of Directors’ guidelines and the bank’s business strategies are established;

· Policies, procedures and methodologies consistent with the pre-approved risk limits are approved;

· The bank’s risk portfolio is managed considering the best risk-return ratio;

· The economic capital is allocated consistently with the incurred risks.

The nature of this process interweaves the whole institution, and senior management, through committees, defines the global objectives that are passed on as goals and limits to the risk management business units. Control units, in turn, support senior management, providing accounts of the results of the risk consolidated monitoring. This process is continuous, permanently reviewed and supports the Group’s strategies.

The control structure of Market, Credit, Liquidity, Operational and Underwriting risks is centralized at Itaú Unibanco Holding aiming at assuring that the various control units of the group follow the established policies and procedures. The identification, consolidation and monitoring of risks are carried out so as to provide information for the decision-making of the senior management committees. Further details on the risk control process can be found on the Investor Relations website (www.itau-unibanco.com.br/ri), in the following route Corporate Governance/Risk Management – Circular 3,477.

I – Market Risk

Market risk is the possibility of incurring losses arising from the changes in the market values of positions held by a financial institution, including the risks of transactions subject to changes in foreign exchange and interest rates, shares and commodity prices.

The market risk management is the process through which the institution plans, monitors and controls the risks of changes in the market prices of financial instruments, aiming at optimizing the risk-return ratio, by using an appropriate structure of management limits, models and tools.

The scope of the market risk control carried out by Itaú Unibanco Holding is extended to all the financial instruments included in the portfolios of companies under its responsibility. In this sense, Itaú Unibanco’s Market Risk Management Policy is in line with the principles of CMN Resolution No. 3,464 of June 26, 2007, being a set of principles that drive the institution’s strategy towards control and management of market risk of all business units and legal entities of the Group.

The document that outlines the guidelines set out by this internal policy on market risk control can be read on the website www.itau-unibanco.com.br/ri, in the section Corporate Governance, Rules and Policies, Public Access Report – Market Risk.

The control of market risk is carried out by an area independent from business ones, and is responsible for carrying out daily measurement, assessment and report activities by way of control units set in the legal entities. It also performs the monitoring, assessment and consolidated reporting of market risk information, aiming at providing feedback for the follow up of the superior committees and complying with the regulatory bodies in Brazil and abroad.

The market risk control and management process is submitted to periodic reviews aimed at keeping it aligned with the best market practices and adhering to the continuous improvement processes at Itaú Unibanco Holding.

The risk management process starts with the setting of limits, which are approved by the Superior Institutional Treasury Committee (CSTI). The market risk limits are structured in accordance with the guidelines established by the Superior Risk Policies  Committee (CSRisc), based on the evaluation of the projection of balance sheet results, the size of the net worth and risk profile of each legal entity, and are defined within risk measures used in the management.

In addition to the use of the established limits, the other market risk control measures are also reported to these committees.

The market risk analyses are conducted based on the following metrics:

· Statistical Value at Risk (VaR): Statistical measure that estimates the expected maximum potential economic loss under regular market conditions, taking into consideration the defined time period and confidence level;

· Losses in Stress Scenarios: simulation technique to assess the behavior of assets and liabilities of a portfolio when several risk factors are taken to extreme market situations (based on prospective  scenarios);

· Stop Loss Alert: effective losses added to the maximum potential loss in optimistic and pessimistic scenarios;

· Unrealized Income (RaR): assessment of the difference between the appropriated interest amount and the market value, in a usual scenario and stressed scenarios, reflecting accounting asymmetries. This is the risk measure used to managerially assess the risk of the banking portfolio.

In addition to the risk measures, sensitivity and loss control measures are also analyzed. Among them, the following is included:

· Gap analysis: graphic representation by risk factor of cash flows expressed at market value, allocated at the maturity dates;

· Sensitivity (DV1): impact on the market value of cash flows, when submitted to an increase in 1 basis point per year in the current interest rates; and

· Stop Loss: the maximum loss that a portfolio classified into trading portfolio may reach.

The limits and exposure to market risks are relatively low as compared to the company’s stockholders’ equity. In June 2011 the Total VaR Global of ITAÚ UNIBANCO HOLDING was R$ 79 million (R$ 134 million in March 2011).

Sensitivity of the portfolio to changes in market risk factors

In compliance with CVM Instruction No. 475 of December 17, 2008, ITAÚ UNIBANCO HOLDING carried out sensitivity analysis by market risk factors considered relevant to which the group was exposed (Note 7j). Each market risk factor was subject to a sensitivity level, with shock applications of 25% and 50%, both for growth and fall. The biggest losses arising, by risk factor, in each scenario, were stated with impact on result, net of tax effects, by providing a vision of the ITAÚ UNIBANCO HOLDING exposure in derivatives under exceptional scenarios.

In accordance with the operations classification criteria set forth in BACEN Resolution No. 3,464 of June 26, 2007 and Circular No. 3,354 of June 27, 2007, and the New Capital Accord – Basel II, the financial instruments, including all transactions with derivatives, are separated in Trading and Banking portfolios. The market risk measurement is made according to this separation.

 The outcome of the sensitivity analysis, with correlation effects among the risk factors in the trading portfolio and net of tax effects, points out to a mark-to-market sensitivity of R$ 195 million and R$ 390 million for those scenarios with variations of 25% and 50%, respectively. In the consolidated portfolio (trading + banking), sensitivity is R$ 222 million and R$ 441 million, respectively.

The sensitivity analyses shown are a static evaluation of the portfolio exposure and, therefore, do not consider the management’s quick response capacity (treasury and control areas), which triggers risk mitigating measures, whenever a situation of high loss or risk is identified, minimizing the sensitivity towards significant losses. In addition, we point out that the presented results are not necessarily translated into accounting results, because the study's sole purpose is to disclose the exposure to risks and the respective protective actions, taking into account the fair value of financial instruments, irrespective of the accounting practices adopted by the institutions.

The method, parameter and assumptions of this analysis are presented on the Investor Relations website (www.itau-unibanco.com.br/ri) in the route: Corporate Governance / Risk Management – Circular 3,477.

II – Credit Risk

Credit risk is the possibility of incurring losses in connection with the breach by the borrower or counterparty of the respective agreed-upon financial obligations, devaluation of loan agreement due to downgrading of the borrower’s risk rating, reduction in gains or compensation, advantages given upon renegotiation and recovery costs.

In line with the principles of CMN Resolution No. 3,721 of April 30, 2009, Itaú Unibanco Holding has a structure for and a policy on credit risk management approved by its Board of Directors, applicable to the companies and subsidiaries in Brazil and abroad.

The document that outlines the guidelines set out by this internal policy on credit risk control can be read on the website www.itau-unibanco.com.br/ri, in the section Corporate Governance, Rules and Policies, Public Access Report – Credit Risk.

 The objective of Itaú Unibanco Holding’s credit risk management is to maximize the risk and return ratio of its assets, maintaining the credit portfolio quality at levels appropriate to the market segments in which it is operating. The strategy is aimed at creating value to its stockholders at levels higher than the minimum return value adjusted to the risk of each business.

Itaú Unibanco Holding establishes its credit policy based on internal factors, such as the client rating criteria, performance of and changes in portfolio, default levels, return rates, and the allocated economic capital; and external factors, related to the economic environment in Brazil and abroad, including market share, interest rates, market default indicators, inflation, and changes in consumption.

Itaú Unibanco Holding’s centralized process for making decisions and establishing a credit policy guarantees the synchrony of credit actions and optimization of business opportunities. In retail, decisions are made based on scoring models that are continuously followed up by an independent structure, evaluating the result of their application in groups to which credits were granted. In wholesale, the credit proposals are analyzed on a case by case basis, through an approval-level mechanism that ensures the detailed observation of transaction risk, as well as the necessary timing and flexibility of their approval.

To protect the institution against losses arising from loan operations, Itaú Unibanco Holding considers all aspects that determine the client’s credit risk to define the provision level commensurate with the risk incurred in each operation. For each operation, the assessment and rating of the client or economic group, the operation rating, and the possible existence of past due amounts are taken into account.

Itaú Unibanco Holding recognizes a provision additional to that required by the monetary authority, aiming at ensuring a provision level compatible with the expected loss, calculated based on parameters for capital calculation (Note 8c). This provision is usually quantified in view of the past performance of loan portfolios, based on exposure, probability of default and expected recovery of transactions.

III – Operational Risk

The operational risk is the possibility of incurring losses arising from failure, deficiency or inadequacy of internal processes, personnel and systems, or external events. It includes the legal risk, associated with the inadequacy or deficiency in agreements signed by the institution, as well as sanctions for failing to meet legal provisions and compensation for damages to third parties arising from activities performed by the institution.

The increasing sophistication of the banking environment and businesses and the development of technology make the risk profiles of organizations more complex, clearly outlining this risk class, which management is not a new practice, but that now requires a specific structure, different from those traditionally adopted for credit and market risks.

In line with the principles of CMN Resolution No. 3,380, of June 29, 2006, Itaú Unibanco Holding formulated a policy on operational risk management, approved by its Audit Committee and ratified by its Board of Directors, applicable to the companies and subsidiaries in Brazil and abroad.

The policy comprises a set of principles, procedures and tools to enable the company to make permanent adjustments to management in view of the nature and complexity of products, services, activities, processes and systems.

The structure formalized in this policy establishes procedures for the identification, assessment, monitoring, control, mitigation and communications related to operational risks, and the roles and responsibilities of the bodies that participate in this structure.

The Central Bank of Brazil's legislation compelling financial institutions to allocate capital for operational risk came into effect as from July 1, 2008. Itaú Unibanco Holding opted for the use of the Alternative Standardized Approach.

The description of the structure for the operational risk management is available on the Investor Relations website(www.itau-unibanco.com.br/ri), in the route: Corporate Governance/Rules and Policies/Public Access Report – Operational Risk.

IV – Liquidity Risk

Liquidity risk is the possibility of occurring imbalances between tradable assets and falling due liabilities – “mismatching” between payments and receipts - which may affect the institution’s payment capacity, taking into consideration the different currencies and payment terms and their rights and obligations.

For managing cash liquidity in local and foreign currency, the company makes assumptions about future disbursements and receipts, based on statistical and economic and financial models, daily monitored by the control and liquidity management areas. As part of the daily controls, limits for cash and liabilities concentration are established to anticipate actions to ensure comfortable and profitable cash levels.

V - Underwriting Risk

Underwriting risk is the risk arising from an adverse economic situation, which is contrary to the insurance company’s expectations when it establishes its underwriting policy, and uncertainties existing in the estimate of reserves.

Analogous to Basel II, the International Association of Insurance Supervisors (IAIS) instructs that insurance companies should have a risk management system to supplement the system of minimum capital and solvency margin.

Itaú Unibanco has been using models for managing its insurance operations since 2006. The models are built and adjusted by a specialized team responsible for analyzing and controlling the risks associated to underwriting of the insurance company’s products based on mathematical models that capture these risks for the adequate allocation of managerial capital.

NOTE 22 – ADDITIONAL INFORMATION

a) Insurance policy - ITAÚ UNIBANCO HOLDING and its subsidiaries, despite the low risk exposure due to a physical non-concentration of their assets, have the policy to guarantee its valuables and assets at amounts considered sufficient to cover possible claims.

b) Foreign currency – the balances in Reais linked to the foreign currency were:

	06/30/2011			06/30/2010
Permanent foreign investments		21,335,531			21,507,228
Net amount of other assets and liabilities indexed to foreign currency, including derivatives		(37,178,584	)		(38,991,747	)
Net foreign exchange position		(15,843,053	)		(17,484,519	)

The net foreign exchange position, considering the tax effects on the net balance of other assets and liabilities indexed to foreign currency, reflects the low exposure to exchange variations.

c) Investment funds and managed portfolios - ITAÚ UNIBANCO HOLDING, through its subsidiaries, manages the following types of funds: privatization, fixed income, shares, open portfolio shares, investment clubs, customer portfolios and group portfolios, domestic and foreign, classified in memorandum accounts, distributed as follows:

	Amount				Amount (*)				Number of funds
	06/30/2011		06/30/2010		06/30/2011		06/30/2010		06/30/2011		06/30/2010
Investment funds		289,075,135		262,227,652		289,075,135		262,227,652		3,127		1,776
Fixed income		258,081,200		240,765,502		258,081,200		240,765,502		2,262		1,480
Shares		30,993,935		21,462,150		30,993,935		21,462,150		865		296
Managed portfolios		156,299,714		137,417,081		90,316,782		82,461,075		15,143		16,764
Customers		89,793,979		75,159,247		74,618,429		67,965,201		15,075		16,684
Itaú Group		66,505,735		62,257,834		15,698,353		14,495,874		68		80
TOTAL		445,374,849		399,644,733		379,391,917		344,688,727		18,270		18,540

(*)    It refers to the distribution after elimination of double-counting of managed portfolios in investment funds.

d) Funds of consortia

	06/30/2011		06/30/2010
Monthly estimate of installments receivable from participants		62,454		45,493
Group liabilities by installments		4,469,451		2,808,021
Participants – assets to be delivered		4,186,454		2,612,324
Funds available for participants		408,814		305,945
(In units)
Number of managed groups		717		656
Number of current participants		190,721		140,107
Number of assets to be delivered to participants		120,906		83,681

e) Fundação Itaú Social - ITAÚ UNIBANCO HOLDING and its subsidiaries are the main sponsors of Fundação Itaú Social, the objectives of which are: 1) managing the “Itaú Social Program”, which aims at coordinating the organization’s role in projects of interest to the community by supporting or developing social, scientific and cultural projects, mainly in the elementary education and health areas; 2) supporting projects or initiatives in progress, supported or sponsored by entities qualified to work in the “Programa Itaú Social” (Itaú Social Program); and 3) providing food and other similar benefits to the employees of ITAÚ UNIBANCO HOLDING and other companies of the group.

Donations made by the consolidated companyies totaled R$ 190 (R$ 108 at June 30, 2010) in the period, and the Foundation’s social net assets totaled R$ 2,666,259 (R$ 508,464 at June 30, 2010). The income arising from its investments will be used to achieve the Foundation's social purposes.

f) Instituto Itaú Cultural – IIC - ITAÚ UNIBANCO HOLDING and its subsidiaries are supporters of Instituto Itaú Cultural - IIC, an entity formed to grant incentives, promote and preserve Brazil’s cultural heritage. During the period, the consolidated companies donated the amount of R$ 27,000 (R$ 20,917 from January 1 to June 30, 2010).

g) Instituto Unibanco - ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Instituto Unibanco, an entity whose objective is to support projects on social assistance, particularly education, culture, promotion of integration to labor market, and environmental protection, directly and/or supplementarily, through the civil society’s institutions.

h) Instituto Unibanco de Cinema  - ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Instituto Unibanco de Cinema, an entity whose objective is (i) the fostering of culture in general; and (ii) providing access of low-income population to cinematography, videography and similar productions, for which it shall maintain movie theaters owned or managed by itself, and theaters to screen films, videos, video-laser discs and other related activities, as well as to screen and divulge films of great importance, especially those produced in Brazil. During the period from January 1 to June 30, 2011 and 2010, the consolidated companies did not make any donation.

i) Associação Clube “A” - ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Associação Clube “A”, an entity whose objective is the provision of social services for the welfare of beneficiaries, in the way and conditions established by its Internal Rules, and according to the funds available. These services may include, among others, the promotion of cultural, educational, sports, entertainment and health care activities. During the period from January 1 to June 30, 2011 and 2010, the consolidated companies did not make any donation.

j) Instituto Assistencial Pedro di Perna - ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Instituto Assistencial Pedro di Perna, an entity whose objective is the provision of social services, stimulate sport activities, and promote recreation, aimed at the welfare of its members, in the way and conditions established by its Internal Rules, and according to the funds available.

k) Exclusions of nonrecurring effects net of tax effects – Holding and Holding Consolidated

	01/01 to 06/30/2011			01/01 to  06/30/2010
Program for Settlement or Installment Payment of Federal Taxes - Law No. 11,941/09 (Notes 12b and 14)		508,993			144,712
Provision for contingencies - economic plans		(175,314	)		(211,200	)
Market value based on the share price - BPI (Note15a II)		(155,860	)		-
Total		177,819			(66,488	)

l) Reclassifications for comparison purposes – The Company carried out reclassifications in the balances of June 30, 2010, for financial statements comparison purposes, in view of the change in the percentage used for financial statements consolidation purposes (Note 2b), and regrouping of the following headings: in the Balance Sheet, the reclassification of the Reward Program from Other Liabilities – Credit Card Operations to Deferred Income. In the Statement of Income, the reclassification of Provision for Tax and Social Security from Other Operating Expenses to Other Operating Revenues and the reclassification of the Reward Program from Other Operating Expenses to Banking Service Fees, in compliance with CVM Resolution No. 597, of September 15, 2009.

	Prior disclosure			Reclassification/ deconsolidation			Adjusted balances
CURRENT ASSETS AND LONG-TERM RECEIVABLES		641,589,840			(4,608,008	)		636,981,832
CASH AND CASH EQUIVALENTS		12,415,203			(284,254	)		12,130,949
INTERBANK INVESTMENTS		115,116,869			365,735			115,482,604
Money market		98,372,955			(4,705	)		98,368,250
Interbank deposits		13,312,762			370,440			13,683,202
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		128,824,584			(2,044,592	)		126,779,992
Own portfolio		41,421,094			(624,457	)		40,796,637
Derivative financial instruments		7,901,374			(3,428	)		7,897,946
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas		41,436,196			(245,552	)		41,190,644
Assets guaranteeing technical provisions - other securities		8,394,007			(1,171,155	)		7,222,852
INTERBANK ACCOUNTS		62,171,119			(4	)		62,161,115
Central bank deposits		57,983,144			(4	)		57,983,140
INTERBRANCH ACCOUNTS		43,241			(253	)		42,988
LOAN, LEASE AND OTHER CREDIT OPERATIONS		240,598,812			(1,564,857	)		239,033,955
Operations with credit granting characteristics		263,498,372			(1,841,841	)		261,656,531
(Allowance for loan losses)		(22,899,560	)		276,984			(22,622,576	)
OTHER RECEIVABLES		78,530,850			(1,195,724	)		77,335,126
Income receivable		787,184			4,396			791,580
Receivables from insurance and reinsurance operations		3,818,722			(538,946	)		3,279,776
Sundry		44,729,968			(661,174	)		44,068,794
OTHER ASSETS		3,899,162			115,941			4,015,103
Assets held for sale		313,054			(32,513	)		280,541
Prepaid expenses		3,097,801			148,454			3,246,255
PERMANENT ASSETS		9,993,150			510,189			10,503,339
INVESTMENTS		2,132,170			1,126,785			3,258,955
Investments in affiliates		1,022,352			1,133,539			2,155,891
Other investments		1,287,680			(10,490	)		1,277,190
(Allowance for loan losses)		(177,862	)		3,736			(174,126	)
REAL ESTATE IN USE		4,478,173			(262,328	)		4,215,845
Real estate in use		4,377,102			(1,122,606	)		3,254,496
Other fixed assets		6,481,756			697,035			7,178,791
(Accumulated depreciation)		(6,380,685	)		163,243			(6,217,442	)
GOODWILL		-			24,288			24,288
INTANGIBLE ASSETS		3,377,838			(378,556	)		2,999,282
Other intangible assets		2,701,221			(406,809	)		2,294,412
(Accumulated amortization)		(1,763,708	)		28,253			(1,735,455	)
TOTAL ASSETS		651,582,990			(4,097,819	)		647,485,171
CURRENT AND LONG-TERM LIABILITIES		592,581,862			(4,355,689	)		588,226,173
DEPOSITS		189,656,779			13,880			189,670,659
Demand deposits		25,280,832			5,458			25,286,290
Interbank deposits		2,307,493			(35,930	)		2,271,563
Time deposits		109,099,066			44,352			109,143,418
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS		157,260,928			18,237			157,279,165
Own portfolio		100,999,897			5,318			101,005,215
Third-party portfolio		42,443,719			12,919			42,456,638
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES		18,904,418			(17,826	)		18,886,592
Real estate, mortgage, credit and similar notes		9,972,589			(17,826	)		9,954,763
INTERBANK ACCOUNTS		4,636,742			(274,731	)		4,362,011
Correspondents		1,424,518			(274,731	)		1,149,787
INTERBRANCH ACCOUNTS		2,765,471			(137	)		2,765,334
Internal transfer of funds		25,758			(137	)		25,621
BORROWINGS AND ONLENDING		38,070,593			(65,400	)		38,005,193
Borrowings		13,321,231			(65,401	)		13,255,830
Onlending		24,749,362			1			24,749,363
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION		56,001,086			(1,747,645	)		54,253,441
OTHER LIABILITIES		118,436,686			(2,282,067	)		116,154,619
Collection and payment of taxes and contributions		3,738,477			(411	)		3,738,066
Social and statutory		3,404,933			(23,562	)		3,381,371
Tax and social security contributions		20,281,101			(642,115	)		19,638,986
Credit card operations		25,527,237			(1,354,750	)		24,172,487
Sundry		15,571,179			(261,229	)		15,309,950
DEFERRED INCOME		186,898			398,635			585,533
MINORITY INTEREST IN SUBSIDIARIES		3,740,269			(140,765	)		3,599,504
TOTAL LIABILITIES		651,582,990			(4,097,819	)		647,485,171

STATEMENT OF INCOME	Prior disclosure			Reclassification/ deconsolidation			Adjusted balances
INCOME FROM FINANCIAL OPERATIONS		37,270,901			(343,735	)		36,927,166
Loan, lease and other credit operations		24,907,026			(220,053	)		24,686,973
Securities and derivative financial instruments		8,373,391			(33,729	)		8,339,662
Financial income from insurance, pension plan and capitalization operations		1,768,115			(89,947	)		1,678,168
Foreign exchange operations		955,113			1			955,114
Compulsory deposits		1,267,256			(7	)		1,267,249
EXPENSES OF FINANCIAL OPERATIONS		(16,291,878	)		33,458			(16,258,420	)
Money market		(13,838,266	)		(1,225	)		(13,839,491	)
Financial expenses on technical provisions for pension plan and capitalization		(1,525,468	)		34,617			(1,490,851	)
Borrowings and onlending		(928,144	)		66			(928,078	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES		20,979,023			(310,277	)		20,668,746
RESULT OF LOAN LOSSES		(6,073,246	)		93,343			(5,979,903	)
Expenses for allowance for loan losses		(7,885,843	)		121,315			(7,764,528	)
Income from recovery of credits written off as loss		1,812,597			(27,972	)		1,784,625
GROSS INCOME FROM FINANCIAL OPERATIONS		14,905,777			(216,934	)		14,688,843
OTHER OPERATING REVENUES (EXPENSES)		(5,821,065	)		97,942			(5,723,123	)
Banking service fees		6,882,354			(191,017	)		6,691,337
Asset management		1,214,261			(19,120	)		1,195,141
Current account services		280,404			(11,713	)		268,691
Credit cards		3,192,172			(125,039	)		3,067,133
Sureties and credit granted		700,110			(792	)		699,318
Receipt services		639,796			(435	)		639,361
Other		855,611			(33,918	)		821,693
Result from insurance, pension plan and capitalization operations		1,366,509			(254,565	)		1,111,944
Personnel expenses		(6,067,944	)		171,644			(5,896,300	)
Other administrative expenses		(6,312,506	)		192,590			(6,119,916	)
Tax expenses		(1,977,645	)		60,738			(1,916,907	)
Equity in earnings of affiliates and other investments		116,418			80,029			196,447
Other operating revenues		704,258			(48,000	)		656,258
Other operating expenses		(2,069,178	)		86,523			(1,982,655	)
OPERATING INCOME		9,084,712			(118,992	)		8,965,720
NON-OPERATING INCOME		17,976			1,565			19,541
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		9,102,688			(117,427	)		8,985,261
IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL INCOME TAX AND SOCIAL CONTRIBUTION		(2,090,336	)		74,057			(2,016,279	)
Due on operations for the period		(2,883,048	)		44,822			(2,838,226	)
Related to temporary differences		792,712			29,235			821,947
PROFIT SHARING		(116,347	)		342			(116,005	)
Management members - Statutory - Law No. 6,404 of 12/15/1976		(116,347	)		342			(116,005	)
MINORITY INTEREST IN SUBSIDIARIES		(496,863	)		43,028			(453,835	)
NET INCOME		6,399,142			-			6,399,142

m) Transaction with Carrefour

On April 14, 2011, Itaú Unibanco Holding and Carrefour Comércio e Indústria Ltda. ("Carrefour Brazil"), entered into an Agreement for the Purchase and Sale of Shares in order to purchase 49% of Banco CSF S.A. ("Banco Carrefour") for R$ 725 million, corresponding to a multiple Price/Profit for 2010 of 11.6. The completion of the transaction depends on the approval of the Central Bank of Brazil.

Auditor’s Report

To the Directors and Stockholders

Itaú Unibanco Holding S.A.

We have audited the accompanying financial statements of Itaú Unibanco S.A. (the “Bank”) standing alone, which comprise the balance sheet as at June 30, 2011 and the statements of income, changes in equity and cash flows for the six-month period then ended, as well as the accompanying consolidated financial statements of Itaú Unibanco S.A. and its subsidiaries (“Consolidated”), which comprise the consolidated balance sheet as at June 30, 2011and the consolidated statements of income and cash flows for the six-month period then ended, and a summary of significant accounting policies  and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN), and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Brazilian and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the  preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of  Itaú Unibanco S.A. and of Itaú Unibanco S.A. and its subsidiaries as at June 30, 2011, and the  financial performance and cash flows, as well as the consolidated financial performance and cash flows, for the six-month period then ended, in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN).

Other matters

Statement of value added

We also have audited the Bank’s and the consolidated statements of value added for the six-month period ended June 30, 2011, the presentation of which is required by the Brazilian corporate legislation for listed companies. These statements were subject to the same audit procedures described above and, in our opinion, are fairly presented, in all material respects, in relation to the financial statements taken as a whole.

São Paulo, August 1, 2011

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

Paulo Sergio Miron

Contador CRC 1SP173647/O-5

ITAÚ UNIBANCO HOLDING S.A.

CNPJ. 60.872.504/0001-23                              A Listed Company                              NIRE. 35300010230

SUMMARY OF THE AUDIT COMMITTEE REPORT

According to its Charter (available on website http://www.itau.com– Investor Relations), the Committee is responsible for the quality and integrity of the financial statements of the Itaú Unibanco Financial Conglomerate, for the compliance with legal and regulatory requirements, for the activities, independence and quality of the services rendered by the independent and the internal auditors, and the quality and effectiveness of the internal controls and risk management systems of the Conglomerate. The assessments made by the Committee are based on information received from management, external auditors, internal auditors, those responsible for risk management and internal controls, and on its own analysis based on direct observation.

Committee Activities

The Committee met fifteen times in the period from March to July 2011, a total of 19 days. In addition, in a session on August 1st, the Committee analyzed the financial statements as of June 30, 2011 as well as examined and approved the Audit Committee Report and this Summary on the activities performed in the semester up to that baseline date.

Risk Management and Internal Controls

During the first half of 2011, the Committee examined, during meetings with the Risk Control Director, aspects related to risk management and control in the Conglomerate, with emphasis on credit, liquidity and market risks. Through meetings with the Operational Risk and Compliance Director, the Committee also monitored the implementation and application of the framework for operational risk management.

The Committee has also been monitoring the efforts of Itaú Unibanco to converge to Basel II recommendations in relation to the development of the Company’s internal risk management models, which should result in better controls in the integrated management of the businesses.

Based on the information brought to its attention, the Audit Committee considers the efforts that have been made to ensure the effectiveness of the existing internal controls and risk management systems to be positive. It also considers that the approach that the Organization has adopted to prepare itself for the use of internal models as required by Basel II is firmly established and properly focused.

Compliance with the Legislation, Regulatory Requirements and the Internal Policies and Procedures.

The Audit Committee considers that the duties and responsibilities, as well as the procedures for assessing and monitoring legal risks are established and continue to be adopted in compliance with the corporate guidelines. Based on the information brought to its attention from the areas in charge, in the work carried out by the Internal Audit and the reports prepared by the external auditors, the Audit Committee concludes that no deficiencies were identified in the compliance with the legislation, regulatory requirements and internal policies and procedures that might pose risks to the continuity of the Organization.

External Audit

The Committee has a regular channel of communication with the external auditors to extensively discuss the results of their work and relevant accounting aspects, thus enabling the Committee’s members to form a well-based opinion as to the integrity of the financial accounting statements and of the financial reports.

The Committee assesses as fully satisfactory the amount and the quality of the information provided by PricewaterhouseCoopers, which supports its opinion on the integrity of the financial statements. The Committee did not identify situations that could affect the objectivity and independence of the external auditors.

Internal Audit

The Audit Committee approves the annual working plan of the Internal Audit and the revised version of this plan for the second half of the year and, on a quarterly basis, monitors its compliance, making itself aware of work performed that was not planned and providing an opinion on the cancellation of works envisaged in the plan.

The Committee evaluates positively the coverage and quality of the work performed by the internal auditors. The results presented during the Committee’s work sessions did not bring to its attention the existence of residual risks that could affect the soundness and the continuity of the Organization.

Consolidated Financial Statements

The Committee analyzed the processes for preparing individual and consolidated balance sheets, notes to the financial statements and financial reports published together with the consolidated financial statements. It discussed this subject with PricewaterhouseCoopers and with Senior Management of the Conglomerate. An evaluation was also made of the relevant accounting practices used by the Itaú Unibanco Financial Conglomerate in the preparation of its financial statements. The Committee verified that they are in conformity with the generally accepted accounting principles applicable to institutions that have authorization to carry out operations from the Banco Central do Brasil or subject to regulation by the Superintendência de Seguros Privados.

At a meeting on March 31 the Committee further recommended to the Board of Directors the approval of the consolidated financial statements of Itaú Unibanco as of December 31, 2010, prepared in accordance with the international accounting standards issued by the IASB.

Recommendations

Regular meetings were held with the Chairman of the Board of Directors and with the Chief Executive Officer of Itaú Unibanco. During those meetings, the Committee had the opportunity to present its opinions and points of view concerning different aspects of its activities.

Conclusion

This Audit Committee, with due consideration to its responsibilities and to the natural limitations of the scope of its activities, recommends to the Board of Directors the approval of the  consolidated financial statements of Itaú Unibanco Holding S.A., as of  June 30, 2011.

São Paulo, August 1st, 2011.

The Audit Committee

Gustavo Jorge Laboissière Loyola – President

Alkimar Ribeiro Moura

Eduardo Augusto de Almeida Guimarães

Guy Almeida Andrade – Financial Expert

ITAÚ UNIBANCO HOLDING S.A.

CNPJ. 60.872.504/0001-23 Public company NIRE. 35300010230

OPINION OF THE FISCAL COUNCIL

The effective members of the Fiscal Council of ITAÚ UNIBANCO HOLDING S.A., having reviewed the financial statements for the period from January to June 2011, have verified the accuracy of all items examined and, in view of the unqualified opinion of PricewaterhouseCoopers Auditores Independentes, understand that they adequately reflect the company’s capital structure, financial position and the activities conducted during the period.

São Paulo, August 1, 2011.

IRAN SIQUEIRA LIMA

President

ALBERTO SOZIN FURUGUEM

Member

ARTEMIO BERTHOLINI

Member