Itaú Unibanco Holding (ITUB) 20-F/A 9 Jun 10 2009 FY Annual report (foreign) (amended) Financial data

Document and Entity Information

Document and Entity Information
	12 Months Ended Dec. 31, 2009 BRL
Document Type	20-F
Amendment Flag	false
Document Period End Date	2009-12-31
Document Fiscal Year Focus	2,009
Document Fiscal Period Focus	FY
Trading Symbol	ITUB
Entity Registrant Name	Itau Unibanco Holding S.A.
Entity Central Index Key	0001132597
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	2,289,284,273

Consolidated Balance Sheet

Consolidated Balance Sheet (BRL )
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008
ASSETS
Cash and due from banks	$5,355		$3,408
Restricted cash			84
Interest-bearing deposits in other banks	89,085		49,677
Securities purchased under resale agreements	56,714		44,783
Central Bank compulsory deposits	13,869		11,314
Trading assets, at fair value	73,529		66,483
Available-for-sale securities, at fair value	41,263		28,445
Held-to-maturity securities, at amortized cost	1,762		1,325
Net loans and leases	225,768		157,498
Loans and leases	245,736		169,700
Allowance for loan and lease losses	(19,968)		(12,202)
Investments in unconsolidated companies	4,321		2,398
Premises and equipment, net	4,572		2,965
Goodwill, net	14,711		423
Intangible assets, net	22,569		6,676
Other assets	45,570		25,896
TOTAL ASSETS	599,088		401,375
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	190,908		150,802
Non-interest bearing deposits	25,884		24,106
Interest-bearing deposits	165,024		126,696
Securities sold under repurchase agreements	66,174		49,492
Short-term borrowings	80,725		54,277
Long-term debt	58,976		37,672
Insurance claims reserves, reserves for private retirement plans and reserves for capitalization	13,487		4,766
Investment contracts	38,063		24,322
Other liabilities	68,721		44,412
Total liabilities	517,054		365,743
Commitments and contingent liabilities (Note 30)
Stockholders' equity of Itau Unibanco :
Common shares - no par value ( 3,300,000,000 authorized at December 31, 2009 and 2008; 2,289,286,475 and 1,708,760,440 issued at December 31, 2009 and 2008, respectively)	21,046	[1]	7,372	[1]
Preferred shares - no par value ( 3,300,000,000 authorized at December 31, 2009 and 2008; 2,281,649,744 and 1,605,988,901 issued at December 31, 2009 and 2008, respectively)	24,208	[1]	9,882	[1]
Treasury shares ( 43,588,307 and 64,639,300 preferred shares at December 31, 2009 and 2008, respectively; 2,202 common shares at December 31, 2009)	(1,031)	[1]	(1,526)	[1]
Additional paid-in capital	12,932		62
Appropriated retained earnings	5,954		16,014
Other accumulated comprehensive income:
Net unrealized gains (losses) on available-for-sale securities, net of taxes	301		203
Cumulative translation adjustment	(146)		921
Defined benefit of pension plans and other post-retirement plans, net of taxes	786		400
Cash flow hedge - Effective portion, net of taxes	(4)		(4)
Unappropriated retained earnings (accumulated losses)	5,231		1,063
Total stockholders' equity of Itau Unibanco	69,277		34,387
Noncontrolling interest	12,757		1,245
Total equity	82,034		35,632
TOTAL LIABILITIES AND EQUITY	$599,088		$401,375
[1]After giving retroactive effect to the bonus of shares in June 2008 and August 2009 (Note 19a)

1_Consolidated Balance Sheet

Consolidated Balance Sheet (Parenthetical)
	Dec. 31, 2009 BRL		Dec. 31, 2008 BRL
Common shares, no par value	$0	[1]	$0	[1]
Common shares, authorized	3,300,000,000	[1]	3,300,000,000	[1]
Common shares, issued	2,289,286,475	[1]	1,708,760,440	[1]
Preferred shares, no par value	$0	[1]	$0	[1]
Preferred shares, authorized	3,300,000,000	[1]	3,300,000,000	[1]
Preferred shares, issued	2,281,649,744	[1]	1,605,988,901	[1]
Preferred shares
Treasury shares, shares	43,588,307	[1]	64,639,300	[1]
Common shares
Treasury shares, shares	2,202	[1]	0	[1]
[1]After giving retroactive effect to the bonus of shares in June 2008 and August 2009 (Note 19a)

Consolidated Statement of Incom

Consolidated Statement of Income (BRL )
In Millions, except Share data	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
INTEREST INCOME	$72,567		$47,649		$34,603
Interest on loans and leases	48,582		31,326		22,898
Interest on deposits in banks	3,534		3,028		2,852
Interest on Central Bank compulsory deposits	519		1,051		909
Interest on securities purchased under resale agreements	8,673		5,369		2,375
Interest on trading assets	7,086		4,141		3,418
Interest and dividends on available-for-sale securities	3,996		2,536		1,992
Interest on held-to-maturity securities	177		198		159
INTEREST EXPENSE	(31,876)		(26,508)		(13,271)
Interest on deposits	(11,773)		(6,233)		(3,510)
Interest on securities sold under repurchase agreements	(7,177)		(6,489)		(3,453)
Interest on short-term borrowings	(5,314)		(7,737)		(3,329)
Interest on long-term debt	(4,586)		(4,721)		(1,433)
Interest credit to investment contract account balance	(3,026)		(1,328)		(1,546)
NET INTEREST INCOME	40,691		21,141		21,332
Allowance for loan and lease losses	(15,372)		(9,361)		(5,542)
NET INTEREST INCOME AFTER ALLOWANCE FOR LOAN AND LEASE LOSSES	25,319		11,780		15,790
NON-INTEREST INCOME	40,436		15,775		17,015
Fee and commission income	13,479		8,941		7,832
Trading income (losses)	9,284		(2,843)		1,955
Net gain (loss) on sale of available-for-sale securities	211		(114)		(183)
Net gain (loss) on foreign currency transactions	2,619		1,059		83
Net gain (loss) on transactions of foreign subsidiaries	(3,390)		1,938		(971)
Equity in earnings of unconsolidated companies, net	(9)		474		476
Insurance premiums, income on private retirement plans and capitalization plans	8,132		3,917		3,500
Other non-interest income	10,110		2,403		4,323
NON-INTEREST EXPENSE	(42,294)		(24,011)		(21,027)
Salaries and employee benefits	(10,589)		(6,170)		(5,705)
Administrative expenses	(10,001)		(6,409)		(5,472)
Amortization of intangible assets	(3,663)		(1,201)		(974)
Insurance claims, changes in reserves for insurance operations, for private retirement plans and acquisition costs	(6,452)		(3,301)		(2,509)
Depreciation of premises and equipment	(1,250)		(756)		(675)
Other non-interest expenses	(10,339)		(6,174)		(5,692)
NET INCOME BEFORE TAXES AND EXTRAORDINARY ITEM	23,461		3,544		11,778
TAXES ON INCOME
Current	(5,477)		(1,681)		(2,587)
Deferred	(3,372)		3,015		(1,560)
TOTAL TAXES ON INCOME	(8,849)		1,334		(4,147)
NET INCOME BEFORE EXTRAORDINARY ITEM	14,612		4,878		7,631
Extraordinary item (recognition in net income of excess of net assets acquired over purchase price), net of tax effect					29
NET INCOME	14,612		4,878		7,660
Less: Net Income attributable to noncontrolling interests	(527)		(29)		2
NET INCOME ATTRIBUTABLE TO ITAU UNIBANCO	$14,085		$4,849		$7,662
EARNINGS PER SHARE - BASIC
Common	3.25	[1]	1.49	[1]	2.32	[1]
Preferred	3.25	[1]	1.49	[1]	2.32	[1]
EARNINGS PER SHARE - DILUTED
Common	3.24	[1]	1.48	[1]	2.31	[1]
Preferred	3.24	[1]	1.48	[1]	2.31	[1]
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC
Common	2,192,530,134	[1]	1,708,760,440	[1]	1,708,796,764	[1]
Preferred	2,143,753,894	[1]	1,554,841,088	[1]	1,589,475,999	[1]
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED
Common	2,192,530,134	[1]	1,708,760,440	[1]	1,708,796,764	[1]
Preferred	2,149,890,063	[1]	1,569,079,278	[1]	1,609,800,069	[1]
[1]After giving retroactive effect to the bonus of shares in June 2008 and August 2009 (Note 19a)

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (BRL )
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$14,612	$4,878	$7,660
Change in unrealized gains and losses on available-for-sale securities (net of tax effect of R$ (380), R$ 602 and R$ (430) for the years ended December 31, 2009, 2008 and 2007, respectively)	98	(408)	862
Cash flow hedge - effective portion (net of tax effect of R$ 1 for the year ended December 31, 2008)		(4)
Cumulative translation adjustment on foreign subsidiaries and equity investees (no tax effect)	(1,067)	737	(304)
Defined benefit of pension plans and other post-retirement plans, net of taxes of R$ (257), R$ 865 and R$ (368) for the years ended December 31, 2009, 2008 and 2007, respectively.	386	(1,297)	713
Total comprehensive income	14,029	3,906	8,931
Comprehensive income attributable to noncontrolling interest	(527)	(29)	2
Comprehensive income attributable to Itau Unibanco	$13,502	$3,877	$8,933

2_Consolidated Statement of Com

Consolidated Statement of Comprehensive Income (Parenthetical) (BRL )
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Change in unrealized gains and losses on available-for-sale securities, tax effect	($380)	$602	($430)
Cash flow hedge -effective portion, tax effect		1
Defined benefit of pension plans and other post-retirement plans, taxes	($257)	$865	($368)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (BRL )
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities
Net income	$14,612	$4,878	$7,660
Adjustment to reconcile net income to net cash provided by operating activities
Provision for loan and lease losses	15,372	9,361	5,542
Loss on sale of foreclosed assets, net	9		9
Amortization of intangible assets	3,663	1,201	974
Depreciation of premises and equipment	1,250	756	675
Equity in earnings of unconsolidated companies, net	9	(474)	(476)
Gain on exchange of equity interest in Psiupar (Note 3.1.c)	(936)
Gain on remeasurement of interest in Redecard S.A. (Note 3.1.b)	(4,530)
Bargain purchase gain (Note 3.1.a)	(830)
Gain on sale of other unconsolidated companies	(69)	(279)
Stock based compensation (reversal)	618	(181)	339
Deferred tax	3,372	(3,015)	1,560
Net (gain) loss on sale of available-for-sale securities	(211)	114	183
Impairment on available-for-sale securities	56	53	4
Other adjustments to net income	485	(136)	9
Net (gain) loss on sale of premises and equipment	(4)	6	(92)
Dividends received from investments in unconsolidated companies	63	246	297
Changes in assets and liabilities
Trading account assets (increase) decrease	16,704	(24,446)	(11,110)
Other assets and liabilities (increase) decrease	7,589	(765)	(768)
Net cash provided by (used in) operating activities	56,783	(12,681)	2,044
Investing activities
Net (increase) decrease in Central Bank compulsory deposits	(462)	5,900	(2,141)
Net (increase) decrease in securities purchased under resale agreements which are not in cash and cash equivalents	(11,930)	(23,343)	(12,519)
Purchase of available-for-sale securities	(7,624)	(26,367)	(13,318)
Proceeds from sale and redemption of available-for-sale securities	13,905	19,728	11,176
Purchase of held-to-maturity securities	(1,133)
Proceeds from matured held-to-maturity securities	56	254	26
Net increase in loans and leases	(13,832)	(54,791)	(31,502)
Acquisition of subsidiaries, net of cash and cash equivalents received			1,637
Cash and cash equivalents received on acquisition of Unibanco and Unibanco Holdings (Note 3.1.a)	17,262
Cash used for acquisition of intangible assets		(352)	(488)
Cash payment for contractual rights to provide payroll and other services to government entities and other entities	(793)	(243)	(113)
Purchase of premises and equipment	(1,701)	(976)	(800)
Proceeds from sale of premises and equipment	187	181	399
Proceeds from sale of foreclosed assets	302	69	52
Purchase of unconsolidated companies	(5)	(301)	(354)
Purchase of other investments recorded at cost		(17)	(31)
Proceeds from sale of unconsolidated companies	642	329	2,572
Net cash used in investing activities	(5,541)	(80,328)	(45,404)
Financing activities
Net increase (decrease) in deposits	(13,339)	66,954	15,199
Net increase in investment contracts	8,600	3,010	2,831
Net increase (decrease) in securities sold under repurchase agreements	(16,848)	26,224	12,102
Net increase in short-term borrowings	16,627	4,995	15,500
Borrowings from long-term debt	11,623	13,045	18,718
Repayment of long-term debt	(16,952)	(10,428)	(9,700)
Acquisition of Itausa Export S.A. (Note 3.2.a)		(587)
Capital increase by the parent company in Itausa Export S.A. (Note 3.2.a)			122
Acquisition of treasury stock	(7)	(1,618)	(261)
Proceeds from exercise of stock options by grantees	278	107	125
Dividends and interest on stockholders' equity paid	(3,782)	(2,910)	(2,280)
Noncontrolling interest	(22)	44	(80)
Net cash provided by (used in) financing activities	(13,822)	98,836	52,276
Net increase in cash and cash equivalents	37,420	5,827	8,916
Cash and cash equivalents
At the beginning of the year	28,036	22,209	13,293
At the end of the year	65,456	28,036	22,209
Supplemental cash flow disclosure
Cash paid for interest	(20,839)	(15,015)	(10,673)
Cash paid for taxes on income	(4,277)	(2,602)	(2,770)
Non-cash transactions
Loans transferred to foreclosed assets	219	34	24
Dividends and interest on stockholders' equity declared but not paid	2,539	2,399	2,124
Exchange of equity interest in Psiupar (Note 3.1.c)	1,886
Available-for-sale securities transferred to trading assets			52
Redecard S.A. [Member]
Changes in assets and liabilities
Gain on sale of shares			(1,544)
Investing activities
Acquisition of controlling interest in business, net of cash and cash equivalents received	(415)
Serasa S.A. [Member]
Changes in assets and liabilities
Gain on sale of shares			(743)
Bovespa Holding S.A and Bolsa de Mercadorias & Futuros [Member]
Changes in assets and liabilities
Gain on sale of shares			(475)
Visa [Member]
Changes in assets and liabilities
Gain on sale of shares	(345)
Allianz [Member]
Changes in assets and liabilities
Gain on sale of shares	(25)
BBA HE Participacoes S.A. [Member]
Investing activities
Acquisition of controlling interest in business, net of cash and cash equivalents received		(399)
Bank Boston [Member]
Non-cash transactions
Shares issued in connection with acquisition			1,120
Unibanco and Unibanco Holdings [Member]
Non-cash transactions
Shares issued in connection with acquisition	24,659
Itausa Export S.A. [Member]
Non-cash transactions
Shares issued in connection with acquisition	$95	$102

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders' Equity (BRL )
In Millions, except Share data	Preferred shares		Common shares		Treasury stock	Additional paid-in capital	Appropriated retained earnings	Net unrealized gains (losses) on available-for-sale securities, net of taxes	Cash flow hedge - effective portion	Cumulative translation adjustment	Defined benefit of pension plans and other post-retirement plans	Unappropriated retained earnings	Total stockholders' equity of Itau Unibanco	Noncontroling interest	Total
Balance at the beginning of the year at Dec. 31, 2006	1,637,613,901	[1]	1,666,399,405	[2]
Balance at the beginning of the year at Dec. 31, 2006	54,398,135	[1]	13,740,989	[2]
Balance at the beginning of the year at Dec. 31, 2006	$8,560		$4,575		($1,123)	$599	$13,639	($251)		$488	$984	$719		$1,430
Capital stock
Issuance of shares (Note 3.2.c and 3.2.d)		[1]	56,476,299	[2]
Exchange of shares of Itau Unibanco S.A held by Itausa for shares of Itau Unibanco Holding (Note 3.2.a)		[1]
Treasury stock
Stock purchased by grantees of our Stock Option Plan (Note 26)	(12,882,458)	[1]		[2]
Acquisition of treasury stock	8,913,300	[1]	374,275	[2]
Less: Net Income attributable to noncontrolling interests														(2)	2
Stock based compensation recognized for the year (Note 26)						262
Issuance of shares in connection with acquisition of Bank Boston operations in Uruguay and Chile (Notes 3.2.c and 3.2.d)			1,373
Net income for the year attributable to Itau Unibanco												7,662			7,662
Stock purchased by grantees of our Stock Option Plan (Note 26)					211
Defined benefit of pension plans and other post-retirement plans, net of tax effect											713				713
Translation of adjustment during the year, without tax effect										(304)					(304)
Change in net unrealized gains and losses during the year, net of taxes								862							862
Difference between purchase price and average cost of treasury stock sold						(87)
Capital increase by the parent company in Itausa Export S.A.						122
Acquisition of treasury stock					(261)
Difference between fair value of shares issued in acquisitions statutory amount of increase in capital						(253)
Distribution of dividends and interest on stockholders' equity												(2,235)
Other														(74)
Transfer of retained earnings to reserves							5,544					(5,544)
Distributed earnings (interest on stockholders' equity)
Preferred shares															0.68	[1]
Common shares															0.68	[1]
Balance at the end of the year (A) at Dec. 31, 2007	1,637,613,901	[1]	1,722,875,704	[1],[2]
Balance at the end of the year (B) at Dec. 31, 2007	50,428,978	[1]	14,115,264	[1],[2]
Outstanding capital at the end of the year - C = A - B at Dec. 31, 2007	1,587,184,924	[1]	1,708,760,440	[2]
Balance at the end of the year at Dec. 31, 2007	8,560		5,948		(1,173)	643	19,183	611		184	1,697	602	36,255	1,354	37,609
Capital stock
Issuance of shares (Note 3.2.c and 3.2.d)		[1]
Exchange of shares of Itau Unibanco S.A held by Itausa for shares of Itau Unibanco Holding (Note 3.2.a)		[1]
Cancellation of treasury stock	(31,625,000)	[1],[2]	(14,115,264)	[1],[2]
Treasury stock
Stock purchased by grantees of our Stock Option Plan (Note 26)	(11,718,850)	[1]		[1]
Acquisition of treasury stock	57,554,172	[1]
Cancellation of treasury stock	(31,625,000)	[1],[2]	(14,115,264)	[1],[2]
Less: Net Income attributable to noncontrolling interests														29	(29)
Stock based compensation recognized for the year (Note 26)						248
Net income for the year attributable to Itau Unibanco												4,849			4,849
Transfer for increase in capital stock through reserves							(2,746)
Stock purchased by grantees of our Stock Option Plan (Note 26)					254
Defined benefit of pension plans and other post-retirement plans, net of tax effect											(1,297)				(1,297)
Translation of adjustment during the year, without tax effect										737					737
Change in cash flow hedge during the year									(4)						(4)
Change in net unrealized gains and losses during the year, net of taxes								(408)							(408)
Acquisition of shares of non-controlling interest in Itau BBA Participacues (Note 3.2.b)														(307)
Exchange of shares of Itau Unibanco for shares of Itau Unibanco Holding (Note 3.2.a)														102
Difference between purchase price and average cost of treasury stock sold						(146)
Cancellation of treasury stock					1,011		(1,011)
Acquisition of treasury stock					(1,618)
Cash paid and shares of subsidiary issued in the acquisition of interest in Itausa Export S.A. (Note 3.2.d)						(683)
Distribution of dividends and interest on stockholders' equity												(3,800)
Capitalization of reserves	1,322		1,424
Other														67
Transfer of retained earnings to reserves							588					(588)
Distributed earnings (interest on stockholders' equity)
Preferred shares															1.16	[1]
Common shares															1.16	[1]
Balance at the end of the year (A) at Dec. 31, 2008	1,605,988,901	[1]	1,708,760,440	[1]
Balance at the end of the year (B) at Dec. 31, 2008	64,639,300	[1]
Outstanding capital at the end of the year - C = A - B at Dec. 31, 2008	1,541,349,601	[1]	1,708,760,440	[1]
Balance at the end of the year at Dec. 31, 2008	9,882		7,372		(1,526)	62	16,014	203	(4)	921	400	1,063	34,387	1,245	35,632
Capital stock
Issuance of shares (Note 3.2.c and 3.2.d)
Issuance of shares of Itau Unibanco for acquisition of Unibanco and Unibanco Holdings (Note 3.1.a)	675,660,843	[2]	557,475,607	[2]
Exchange of shares of Itau Unibanco S.A held by Itausa for shares of Itau Unibanco Holding (Note 3.2.a)			23,050,428
Treasury stock
Stock purchased by grantees of our Stock Option Plan (Note 26)	(21,236,440)
Acquisition of treasury stock	185,447		2,202
Less: Net Income attributable to noncontrolling interests														527	(527)
Stock based compensation recognized for the year (Note 26)						370
Net income for the year attributable to Itau Unibanco												14,085			14,085
Transfer for increase in capital stock through reserves							(16,000)
Stock purchased by grantees of our Stock Option Plan (Note 26)					502
Defined benefit of pension plans and other post-retirement plans, net of tax effect											386				386
Translation of adjustment during the year, without tax effect										(1,067)					(1,067)
Change in net unrealized gains and losses during the year, net of taxes								98							98
Acquisition of stock options of the Unibanco						13
Exchange of shares of Itau Unibanco for shares of Itau Unibanco Holding (Note 3.2.a)														(105)
Difference between purchase price and average cost of treasury stock sold						(224)
Acquisition of Shares of Redecard (Note 3.1.b)														9,590
Acquisition of treasury stock					(7)
Noncontrolling interests on subsidiaries of Unibanco (Note 3.1.a)														1,503
Constitution of RT Enterprise CP														425
Cash paid and shares of subsidiary issued in the acquisition of interest in Itausa Export S.A. (Note 3.2.d)			95
Difference between fair value of shares issued in acquisitions statutory amount of increase in capital						12,711
Issuance of shares of Itau Unibanco for acquisition of Unibanco and Unibanco Holdings (Note 3.1.a)	6,454		5,451
Distribution of dividends and interest on stockholders' equity												(3,977)		(343)
Capitalization of reserves	7,872		8,128
Other														(85)
Transfer of retained earnings to reserves							5,940					(5,940)
Distributed earnings (interest on stockholders' equity)
Preferred shares															0.92	[1]
Common shares															0.92	[1]
Balance at the end of the year (A) at Dec. 31, 2009	2,281,649,744		2,289,286,475
Balance at the end of the year (B) at Dec. 31, 2009	43,588,307		2,202
Outstanding capital at the end of the year - C = A - B at Dec. 31, 2009	2,238,061,437		2,289,284,273
Balance at the end of the year at Dec. 31, 2009	$24,208		$21,046		($1,031)	$12,932	$5,954	$301	($4)	($146)	$786	$5,231	$69,277	$12,757	$82,034
[1]After giving retroactive effect to the bonus of shares in June 2008 and August 2009 (Note 19a)
[2]See Note 19a

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF CONSOLIDATION.
	12 Months Ended Dec. 31, 2009 BRL
DESCRIPTION OF BUSINESS AND BASIS OF CONSOLIDATION.	NOTE 1 DESCRIPTION OF BUSINESS AND BASIS OF CONSOLIDATION. a) Description of business Ita Unibanco Holding S.A. ("we" or "Ita Unibanco Holding" refer to Ita Unibanco Holding S.A. and our subsidiaries and affiliates) is a publicly-traded company, organized and existing under the laws of Brazil. The head office of Ita Unibanco Holding is located in So Paulo, Brazil. Ita Unibanco Holding provides, directly or through its subsidiaries, a wide range of credit and other financial services to a diverse customer base of individuals and companies in Brazil and outside Brazil, Brazilian related and non-related customers, through our international branches, subsidiaries and affiliates. Such services are offered in Brazil to retail customers through the branch network of Banco Ita Unibanco S.A. (current denomination of Banco Ita S.A.) (Ita Unibanco) and to wholesale customers through Banco Ita BBA S.A. (Ita BBA) and overseas through branches in New York, Grand Cayman, Japan, and Bahamas, and through subsidiaries in Argentina, Chile, Uruguay, Paraguay, Cayman Islands, and in Europe (Portugal and Luxembourg). We are a financial holding company controlled by Ita Unibanco Participaes S.A. (IUPAR), a holding company that has 51% of the shares of our common stock and that is jointly controlled by (i) Itasa, which is a holding company controlled by the members of the Egydio de Souza Aranha Family, and (ii) E. Johnston, a holding company controlled by the Moreira Salles Family.Itasa also owns directly 36.2% of the shares of our common stock. As further described in Note 32 and as result of the business combination with Unibanco Holdings S.A. (Unibanco Holdings) and its subsidiary Unibanco Unio de Bancos Brasileiros S.A. (Unibanco) we have modified our segments structure. Ita Unibanco Holdings operations are divided into four segments: (1) Commercial bank, which provides a broad range of banking services to individuals (retail, and under different distribution specialized areas and brands such Uniclass, Personnalit or, Private Bank) and to micro, small and medium-sized companies, including services such asasset management and investor services, insurance, private retirement plans, capitalization plans and credit cards issued to accountholders; (2) Ita BBA, which provides wholesale banking services for large corporations as well as investment banking activities; (3) Consumer credit which basically offer products and services to non-accountholder clients, such vehicle financing and credit card transactions and consumer credit loans and (4) Corporate and Treasury which interest income associated with capital surplus, subordinated debt surplus and the results of certain corporate and treasury activities such as carryforwards of the net balance of tax credits and debits, as well as the net interest income from the trading of financial assets through proprietary positions (desks), management of currency gaps, rates and other risk factors, arbitration opportunities in the foreign and domestic markets, and mark to market of financial assets. b)Consolidation The consolidated financial statements comprise Ita Unibanco Holding (parent company) a

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 BRL
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SIGNIFICANT ACCOUNTING POLICIES The accounting and financial reporting policies of Ita Unibanco Holding in accordancewith accounting principles generally accepted in the United States of America ("US GAAP") which differ in certain significant respects from the accounting principles we apply in the statutory financial statements of Ita Unibanco Holding prepared in accordance with accounting practices adopted in Brazil that include, when applicable, the rules and regulations of theBACEN, the Comisso de Valores Mobilirios ("CVM") - the Brazilian securities commission, the Superintendncia de Seguros Privados ("SUSEP") - the Brazilian insurance regulator, andthe Agncia Nacional de Sade Suplementar (ANS) the Brazilian health market regulator. Financial information included in these financial statements including, but not limited to, shareholders' equity and net income, differ from that included in the statutory accounting records and statutory financial statements as result of adjustments made to reflect the requirements of US GAAP. The preparation of financial statements in conformity with US GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The consolidated financial statements include various estimates and assumptions, including, but not limited to, the adequacy of the allowance for loan and lease losses, estimates of fair value of financial instruments, the amount of valuation allowances on deferred tax assets, the amount of insurance and private retirement plan reserves, the selection of useful lives of certain assets, the determination of the need for and the amount of impairment charges on long-lived assets and the determination of probability and the estimate of contingent losses, as well as the use of significant judgment and interpretation in the application of tax law when determining the amount of taxes payable, including the analysis of uncertain tax positions with respect to taxes on income. The following is a description of the significant accounting policies applied. a)Constant currency restatement Until 1995, the CVM required publicly traded companies subject to its reporting requirements to prepare and publish: the statutory financial information prepared according to Brazilian corporate law (Corporate Law) and as supplemental information, financial statements expressed in currency of constant purchasing power (prepared following the "constant currency method"). This requirement to present financial statements following the constant currency method was eliminated when indexation of financial statements for Brazilian statutory and tax purposes was discontinued on January 1 st , 1996. Until June 30, 1997, Brazil was considereda hyperinflationary economy and, accordingly, for purposes of the accompanying financial statements, all balances and transactions prior to that date have been remeasured at J

BUSINESS DEVELOPMENTS

BUSINESS DEVELOPMENTS
	12 Months Ended Dec. 31, 2009 BRL
BUSINESS DEVELOPMENTS	NOTE 3 BUSINESS DEVELOPMENTS 3.1 During the year ended December 31, 2009 a) Unibanco and Unibanco Holdings On November 3, 2008, the controlling shareholders of Itasa and of Unibanco Holdings entered into an agreement (the Association Agreement) to combine the financial operations of Ita Unibanco, Unibanco Holdings and its subsidiary Unibanco, by which Unibanco Holdings and its subsidiary Unibanco would become wholly owned subsidiaries of Ita Unibanco Holding, in order to establish a leading private financial conglomerate in the Southern Hemisphere. Unibanco Holdings is a holding company whose only relevant activity is to hold a controlling interest in Unibanco. Unibanco was until its acquisition a full-service financial institution providing, directly and indirectly through its subsidiaries, a wide variety of credit and non-credit products and services to all segments of the Brazilian domestic market and to a lesser extent to Brazilian customers for its operations outside Brazil through offices, branches and subsidiaries in Grand Cayman (Cayman Islands); New York (USA); Asuncin (Paraguay); Luxembourg (Luxembourg); and Geneva (Switzerland). Both Unibanco and Unibanco Holdings were publicly listed companies in Brazil and in the United States and they were delisted on April 13, 2009 and April 27, 2009, respectively. The transaction was consummated through the issuance by Ita Unibanco Holding (at that time Banco Ita Holding Financeira S.A.) of 557,475,607 common shares and 675,660,843 preferred shares to the former shareholders of Unibanco and Unibanco Holdings (after giving retroactive effect to the bonus shares in August 2009). The exchange ratio for preferred shares was calculated based on the average quoted market price of the Units (share certificates representing one preferred shares of Unibanco and one preferred share of Unibanco Holdings) and the average quoted market price of the preferred shares of Ita Unibanco Holding in the 45 sessions before November 3, 2008 of the Brazilian Stock Exchange BMF Bovespa. The exchange ratio to exchange common shares of Unibanco and Unibanco Holdings for shares of Ita Unibanco Holding was determined as part of the Association Agreement. The exchange ratio was the same for the controlling and non-controlling shareholders that hold common shares. The exchange ratios are as follows: NumberofsharesofUnibancoandofUnibancoHoldingsexchangedfor1shareofItaUnibanco Common 1.1797=1 Preferred 3.4782=1 Unit 1.7391=1 GlobalDepositaryReceipts 0.17391=1 Consummation of the transaction was conditional to approval of the transaction by the BACEN, which was obtained on February 18, 2009. Shareholders meetings of Unibanco Holdings, Unibanco and Ita Unibanco Holding took place during November 2008 where the transaction was approved and new members of the Board of Directors of Ita Unibanco Holding were appointed. Those shareholders decisions were also conditional to approval of the transaction by the BACEN. Upon approval by the BACEN, the new members of the Board of Directors took office. We considered February 18, 2009 to be the acquisition date for accou

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
	12 Months Ended Dec. 31, 2009 BRL
CASH AND CASH EQUIVALENTS	NOTE 4 - CASH AND CASH EQUIVALENTS For purposes of our consolidated statement of cash flows, Cash and Cash Equivalents comprises the following: 12/31/2009 12/31/2008 Cash and due from banks 5,355 3,408 Interest-bearing deposits in other banks 60,101 24,628 TOTAL 65,456 28,036

CENTRAL BANK COMPULSORY DEPOSIT

CENTRAL BANK COMPULSORY DEPOSITS
	12 Months Ended Dec. 31, 2009 BRL
CENTRAL BANK COMPULSORY DEPOSITS	NOTE 5 CENTRAL BANK COMPULSORY DEPOSITS The central banks of the countries where Ita Unibanco Holding operates require financial institutions, including Ita Unibanco Holding, to deposit certain funds with the Central Bank or, in case of Brazil, to purchase and hold Brazilian federal government securities. The following table presents a summary of the compulsory deposits maintained by type and the amounts of such deposits. 2009 2008 Non-interest bearing 4,042 6,743 Interest-bearing 9,827 4,571 TOTAL 13,869 11,314

TRADING ASSETS

TRADING ASSETS
	12 Months Ended Dec. 31, 2009 BRL
TRADING ASSETS	NOTE 6 TRADING ASSETS Trading assets, stated at fair value, are presented in the following table: 12/31/2009 12/31/2008 Investment funds (1) 39,347 24,458 Brazilian federal government securities 23,985 27,145 Brazilian government external debt securities 222 383 Government debt securities Other countries 1,058 1,988 Argentina 179 64 United States 748 1,038 Mexico 10 6 Spain - 418 Korea - 291 Chile 77 164 Uruguay 30 6 Other 14 1 Corporate debt securities 2,226 2,030 Marketable equity securities 1,142 456 Derivative financial instruments 5,549 10,023 Options 1,819 2,154 Forwards 378 3,406 Swaps - differential receivable 2,900 4,021 Credit derivatives 15 26 Futures - 386 Other derivatives 437 30 TOTAL 73,529 66,483 (1) Includes investment funds with respect to investment contracts (see Note 2 q). Net unrealized gains included in trading assets at December 31, 2009, 2008 and 2007 amounted to R$ 559, R$ 1,414 and R$ 261, respectively. The net change in the unrealized gain or loss on trading assets held in the years ended December 31, 2009, 2008 and 2007, included in trading income gains/(losses), were of R$ (855), R$ 1,153, and R$ (517), respectively.

AVAILABLE-FOR SALE-SECURITIES

AVAILABLE-FOR SALE-SECURITIES
	12 Months Ended Dec. 31, 2009 BRL
AVAILABLE-FOR SALE-SECURITIES	NOTE 7 - AVAILABLE-FOR SALE-SECURITIES The fair values and corresponding amortized cost of available-for-sale securities at December 31 were: 12/31/2009 12/31/2008 Unrealized Unrealized Amortized cost Gains Losses Fair value Amortized cost Gains Losses Fairvalue Investment funds 1,247 13 (1 ) 1,259 971 21 - 992 Brazilian federal government securities 14,324 140 (21 ) 14,443 5,545 53 (19 ) 5,579 Brazilian government external debt securities 2,060 197 (277 ) 1,980 748 217 - 965 Government debt securities Other countries 7,261 25 (43 ) 7,243 8,684 110 (61 ) 8,733 Portugal 26 - - 26 297 4 - 301 Argentina - - - - 1 - - 1 United States 17 - - 17 18 7 - 25 Norway - - - - 347 - (2 ) 345 Austria 212 1 - 213 1,470 - (10 ) 1,460 Denmark 1,995 6 (30 ) 1,971 2,092 95 6 2,193 Spain 1,090 3 - 1,093 2,866 - (36 ) 2,830 Korea 1,750 12 (5 ) 1,757 1,020 4 (3 ) 1,021 Chile 1,278 3 (7 ) 1,274 492 - (9 ) 483 Paraguay 417 - - 417 - - - - Uruguay 476 - (1 ) 475 81 - (7 ) 74 Corporate debt securities 14,852 251 (137 ) 14,966 11,365 329 (204 ) 11,490 Marketable equity securities 893 869 (390 ) 1,372 852 8 (174 ) 686 TOTAL 40,637 1,495 (869 ) 41,263 28,165 738 (458 ) 28,445 The amounts reclassified from Accumulated Other Comprehensive Income correspond to the following amounts: 2009 2008 2007 Gross realized gains during the year upon sale of the security 384 131 231 Gross realized losses during the year upon sale of the security (173 ) (245 ) (414 ) Other-than temporary impairment losses (Note 24b) (56 ) (53 ) (4 ) Realized gain upon exchange of shares of Bovespa Holding S.A.(Note 24a) - 424 - Total 155 257 (187 ) The amortized cost and fair value of available-for-sale securities, by maturity, were as follows: 2009 Amortizedcost Fairvalue Due within one year 15,011 15,013 From 1 to 5 years 13,565 13,638 From 5 to 10 years 2,623 2,706 After 10 years 4,656 4,596 No stated maturity 4,782 5,310 TOTAL

HELD-TO-MATURITY SECURITIES

HELD-TO-MATURITY SECURITIES
	12 Months Ended Dec. 31, 2009 BRL
HELD-TO-MATURITY SECURITIES	NOTE 8 HELD-TO-MATURITY SECURITIES The amortized cost and corresponding fair value of held-to-maturity securities were as follows: 2009 2008 Amortized Unrealized Amortized Unrealized Cost Gains Losses Fairvalue cost Gains Losses Fairvalue Brazilian federal government securities 1,273 299 - 1,572 637 124 - 761 Brazilian government external debt securities 238 42 - 280 321 54 - 375 Government debt securities other countries 17 - - 17 22 - - 22 Corporate debt securities 234 21 - 255 345 15 (2 ) 358 TOTAL 1,762 362 - 2,124 1,325 193 (2 ) 1,516 The amortized cost and fair value of held-to-maturity securities, by maturity, were as follows: 2009 Amortizedcost Fairvalue Due within one year 41 51 from 1 to 5 years 614 682 From 5 to 10 years 63 132 After 10 years 1,044 1,259 TOTAL 1,762 2,124 We have no held-to-maturity securities that have been in a continuous unrealized loss position for over 12 months as of December 31, 2008 and 2007.

LOANS AND LEASES

LOANS AND LEASES
	12 Months Ended Dec. 31, 2009 BRL
LOANS AND LEASES	NOTE 9 - LOANS AND LEASES 2009 2008 Commercial 113,223 78,341 Industrial and others 104,505 64,952 Import financing 1,895 3,643 Export financing 6,823 9,746 Real estate loans, primarily residential housing loans 10,939 6,469 Leases 47,230 41,663 Public sector 1,611 759 Individuals 67,601 38,104 Overdraft 4,119 3,544 Financing 32,701 20,272 Credit card 30,781 14,288 Agricultural 5,132 4,364 TOTAL 245,736 169,700 At December 31, 2009 and 2008, our recorded investment in impaired loans was R$ 14,165 and R$ 7,624 and our non-accrual loans and leases amounted to R$ 15,499 and R$ 7,579, respectively. The average recorded investment in impaired loans for 2009 and 2008 was approximately R$ 10,895 and R$ 5,755, respectively. At December 31, 2009 and 2008, the recorded investment in impaired loans requiring an allowance for loan and lease losses based on individual analysis, per ASC 310-10-50 (Formerly SFAS 114) guidelines, was R$ 1,845 and R$ 1,774, and the related allowance for loan and lease losses was R$ 737 and R$ 138, respectively. In 2009 and 2008, interest income recognized on impaired loans totaled R$ 560 and R$ 556, respectively, and the loans without provision totaled R$ 426 in 2009. We do not recognize interest income during the period the loans are considered non-accrual. The interest income forgone on our non-accrual loans for 2009 and 2008 is R$ 1,564 and R$ 1,265, respectively. Purchased credit-impaired loans In connection with the business combination with Unibanco we acquired certain loans that were deemed to be credit-impaired. Purchased loans corresponding to homogeneous credit portfolios were determined to be credit-impaired based on specific risk characteristics of the loan, including product type, internal scoring, and past due status. We have aggregated those loans into pools with common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. The table below sets forth information about these purchased credit-impaired loans at the acquisition date on February 18, 2009: February18,2009 Contractually required payments receivable (including interest) 4,116 Less: Non-accretable difference (2,882 ) Cash flows expected to be collected representing undiscounted principal and interest at acquisition 1,234 Less: Accretable yield (144 ) Fair value of loans acquired 1,090 We determined the fair value of the purchased credit-impaired loans at the acquisition date by discounting the cash flows expected to be collected at a market observable discount rates.In determining the cash flows expected to be collected, we used assumptions regarding default rates and loss severities. The accretable yield represents the excess of cash flows expected to be collected over the carrying value of the purchased credit-impaired loans. This

ALLOWANCE FOR LOAN AND LEASE LO

ALLOWANCE FOR LOAN AND LEASE LOSSES
	12 Months Ended Dec. 31, 2009 BRL
ALLOWANCE FOR LOAN AND LEASE LOSSES	NOTE 10 - ALLOWANCE FOR LOAN AND LEASE LOSSES The table below summarizes the changes in the allowance for loan and lease losses: 2009 2008 Balance at the beginning of the year 12,202 7,473 Allowance for loan and lease losses 15,372 9,361 Credits charged off (9,490 ) (5,904 ) Recoveries 1,884 1,272 Balance at the end of the year 19,968 12,202

INVESTMENTS IN UNCONSOLIDATED C

INVESTMENTS IN UNCONSOLIDATED COMPANIES
	12 Months Ended Dec. 31, 2009 BRL
INVESTMENTS IN UNCONSOLIDATED COMPANIES	NOTE 11 - INVESTMENTS IN UNCONSOLIDATED COMPANIES a) Composition Ownership%at 12/31/2009 12/31/2009(a) 12/31/2008(a) 12/31/2007(a) Total Voting Stockholders equity Netincome (loss) Investment Equityinearnings (losses) Investment Equityinearnings (losses) Investment Equityinearnings (losses) Investments accounted for under the equity method Banco BPI S.A.(b) 19.03 19.03 5,352 117 1,018 (280 ) 1,569 148 1,189 166 Porto Seguro Ita Unibanco Participaes S.A. (c) 42.93 42.93 2,202 67 1,909 36 - - - - Ita XL Seguros Corporativos S.A. (g) 50.00 50.00 246 44 123 22 107 7 102 13 Maxfcil Participaes S.A. (d) 49.99 49.99 192 26 96 13 - - - - Redecard S.A. (e) - - - - - 147 275 278 120 256 Other(f) - - - - 370 53 247 41 265 41 Subtotal 3,516 (9 ) 2,198 474 1,676 476 Other investments recorded at cost - - - - 805 - 200 - 183 - Total 4,321 (9 ) 2,398 474 1,859 476 (a) Amounts derived from the financial statements prepared in accordance with accounting practices adopted in Brazil in each case adjusted to US GAAP, when applicable. There are no significant restrictions to remit funds to the Bank. (b) Banco BPI S.A. is an equity investee of IPI Itausa Investimentos Ltda (IPI). The shares of IPI are owned 51.00% by Itasa Export S.A. and 49.00% by other subsidiaries of Ita Unibanco Holding. Before the acquisition of shares of Itasa Export S.A. described in Note 3.b we did not consolidated Itasa Export S.A. and in prior periods we recorded equity investments in IPI for the 49.00% owned through our subsidiaries and in Itasa Export. As result of the retroactive restatement described in Note 3.b we consolidate in this financial statements Itasa Export S.A. and IPI and, as a result, we present an equity investment directly in Banco BPI S.A. The amount of investment includes the amount of R$ 392 and R$ 297 at December 31, 2008 and 2007 which corresponds to the difference between the interest in net assets of Banco BPI S.A. and the cost of the investment comprising, differences between the carrying amount of net assets and their estimated fair value and goodwill. During the year ended December 31, 2009 we recorded an impairment charge with respect to this investment of R$ 302. (c) See Note 3.1.c. The amount of the investment includes the amount of R$ 936 at Decembe

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT
	12 Months Ended Dec. 31, 2009 BRL
PREMISES AND EQUIPMENT	NOTE 12 PREMISES AND EQUIPMENT 2009 2008 Annual depreciation rates (%) Gross Land 959 724 Buildings used in operations 2,647 1,936 Installations, furniture, equipment and security and communication systems 1,915 1,019 Data processing equipment 3,918 2,585 Cost of software developed or obtained for internal use 1,298 805 Transportation system 16 31 Assets held for sale 23 16 Other 349 669 TOTAL 11,125 7,785 Accumulated depreciation Buildings used in operations (1,718 ) (1,374 ) 4 Installations, furniture, equipment and security and communication systems (925 ) (573 ) 10 to 25 Data processing equipment (3,073 ) (2,147 ) 20 to50 Cost of software developed or obtained for internal use (630 ) (401 ) 20 to 33 Transportation system (11 ) (13 ) 20 Other (196 ) (312 ) 20 TOTAL (6,553 ) (4,820 ) NET BOOK VALUE 4,572 2,965 Depreciation expense was R$ 1,250, R$ 756 and R$ 675 in the years ended December 31, 2009, 2008 and 2007, respectively, including expenses of R$ 145, R$ 109 and R$ 91 for depreciation of cost of software developed or obtained for internal use. Capitalized interest and accumulated depreciation of capitalized interest amount to R$ 23 and R$ 19, respectively, in 2009 (R$ 23 and R$ 18 in 2008, and R$ 23 and R$ 17 in 2007). Accumulated depreciation of leases amount to R$ 84, R$ 72 and R$ 60 as of December 31, 2009, 2008 and 2007, respectively. The only asset class recorded under leases is buildings used in operations.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS
	12 Months Ended Dec. 31, 2009 BRL
GOODWILL AND INTANGIBLE ASSETS	NOTE 13 GOODWILL AND INTANGIBLE ASSETS In accordance with ASC 350 (Formerly SFAS No. 142), no goodwill amortization was recorded in 2009, 2008 and 2007. The following table presents the movement of aggregate goodwill for the years ended December 31: 2009 2008 Commercial Bank Segment Opening balance - Gross Amount 224 392 Accumulated impairment losses - - Net opening balance 224 392 Effect of exchange rate on goodwill on entities outside Brazil (47 ) 43 Tax benefit on the realization for tax purposes of tax deductible goodwill - (211 ) Closing balance sheet 177 224 Accumulated impairment losses - - Net closing balance 177 224 Ita BBA Segment Opening balance - Gross Amount 36 36 Accumulated impairment losses - - Net opening balance 36 36 Addition as a result of acquisition - 2 Tax benefit on the realization for tax purposes of tax deductible goodwill - (2 ) Closing balance sheet 36 36 Accumulated impairment losses - - Net closing balance 36 36 Consumer Credit Segment Opening balance - Gross Amount 163 207 Accumulated impairment losses - - Net opening balance 163 207 Addition as a result of acquisitions 14,376 - Tax benefit on the realization for tax purposes of tax deductible goodwill (41 ) (44 ) Closing balance sheet 14,498 163 Accumulated impairment losses - - Net closing balance 14,498 163 Total Opening balance - Gross Amount 423 635 Accumulated impairment losses - - Net opening balance 423 635 Addition as a result of acquisitions 14,376 2 Effect of exchange rate on goodwill on entities outside Brazil (47 ) 43 Tax benefit on the realization for tax purposes of tax deductible goodwill (41 ) (257 ) Closing balance sheet 14,711 423 Accumulated impairment losses - - Net closing balance 14,711 423 The changes in intangible assets for the years ended December 31 are presented below: 2009 2008 Exclusiveaccessto customersof retailersandreal estatebrokers Customer reationships (includingCore Deposits) BrandMark Others Total Exclusiveaccessto customersof retailersandreal estatebrokers Customer relationships Others Total Opening balance 1,433 5,101 - 142 6,676 1,230 5,530 188 6,948 Additions as a result of the transactions during the year: 4,270 14,144 1,394 114

OTHER ASSETS

OTHER ASSETS
	12 Months Ended Dec. 31, 2009 BRL
OTHER ASSETS	NOTE 14 OTHER ASSETS 2009 2008 Deferred tax assets (Note 21) 7,092 4,614 Escrow deposits for provision for contingent liabilities classified as probable (Note 30b) 3,219 2,286 Prepaid taxes 5,404 3,438 Escrow deposits for taxes payable and challenged in court (Note 30b) 4,127 3,721 Pension plan prepaid assets (Note 25) 2,743 1,903 Escrow deposits for provision for contingent liabilities classified as possible (Note 30b) 3,234 1,666 Service fees and commissions receivable 3,000 1,619 Redecard - receivables from issuers of credit cards 9,521 - Prepaid expenses 2,003 1,075 Receivables from reimbursement of contingent liabilities (Note 30b) 1,114 940 Other escrow deposits 423 807 Receivable from the government administered fund Fundo para Compensao da Variaes Salariais (FCVS) 533 585 Receivables related to the sale of the Credicard brand - 304 Foreclosed assets, net 218 211 Receivables related to acquisitions 192 163 Escrow account related to strategic partnerships with CBD and LASA 109 148 Deferred policy acquisition costs 299 133 Other 2,339 2,283 TOTAL 45,570 25,896

DEPOSITS

DEPOSITS
	12 Months Ended Dec. 31, 2009 BRL
DEPOSITS	NOTE 15 - DEPOSITS 2009 2008 Non-interest bearing deposits 25,884 24,106 Demand deposits 24,887 23,041 Other deposits 997 1,065 Interest-bearing deposits 165,024 126,696 Savings deposits 48,222 31,896 Time deposits 114,810 92,758 Deposits from banks 1,992 2,042 TOTAL 190,908 150,802 Time deposits with balance in excess of the equivalent to US$ 100,000.00 amount to R$ 86,815 as of December 31, 2009 (R$ 72,733 as of December 31, 2008).

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS
	12 Months Ended Dec. 31, 2009 BRL
SHORT-TERM BORROWINGS	NOTE 16 - SHORT-TERM BORROWINGS 2009 2008 Trade financing borrowings 6,093 9,166 Local onlendings 215 122 Euronotes 414 576 Commercial Paper - 60 Fixed-rate notes 408 133 Mortgage notes 7,854 3,035 Securities issued and sold to customers under repurchase agreements 65,520 40,977 Other short-term borrowings 221 208 TOTAL 80,725 54,277 Trade finance borrowings represent credit lines available to finance imports and exports by Brazilian companies, usually denominated in foreign currency. The following table presents the interest rates in each type of borrowings (p.a.): 2009 2008 Trade financing borrowings 1.00%to13.28% 0.42%to13.70% Local onlendings 1.50%to11.50% 2.30%to13.67% Euronotes 0.23%to10.91% 0.40%to13.62% Commercial Paper - 3,73% Fixed-rate notes 0.95%to8.93% 3.61%to12.94% Mortgage notes 1.28%to8.55% 6.89%to12.88% Under "Securities issued and sold to customers under repurchase agreements" we present our liabilities for transactions in which we sell for cash to customers debt securities issued by our consolidated subsidiaries previously held in treasury and where we commit to repurchase them at any moment after sold to the customer and through a final repurchase date on which they are mandatorily repurchased by us. The repurchase price is computed as the price paid on the date of sale plus interest at rates varying between 65% and 111% of the CDI (Interbank Certificate of Deposits) rate. The final repurchase dates extends through June 2027.

LONG-TERM DEBT

LONG-TERM DEBT
	12 Months Ended Dec. 31, 2009 BRL
LONG-TERM DEBT	NOTE 17 - LONG-TERM DEBT 2009 2008 Local onlendings 21,867 7,271 Euronotes 1,534 2,209 Fixed-rate notes 148 278 Mortgage notes 971 669 Trade finance borrowings 5,907 7,361 Debentures 2,764 2,093 Subordinated debt 22,725 15,030 Debt under securitization of diversified payment rights - 1,424 Other long-term debt (1) 3,060 1,337 TOTAL 58,976 37,672 (1) Including lease obligations in the amounts of R$27 and R$ 38as of December 31, 2009 and 2008, respectively. a)Local onlendings Local onlendings represent amounts borrowed from Brazilian agencies for lending to Brazilian entities principally to finance purchases of premises and equipment. Such amounts are due in monthly installments through 2029 and bear fixed interest rates up to 15.35% per annum, plus variable interest based on the Taxa de Juros de Longo Prazo (federal government long-term interest rate determined on a quarterly basis, or "TJLP"), on the U.S. dollar exchange variation, or on the BNDES basket of currencies. These borrowings are primarily from Banco Nacional de Desenvolvimento Econmico e Social - BNDES (National Economic and Social Development Bank) and Fundo de Financiamento para Aquisio de Mquinas e Equipamentos Industriais - FINAME (National Industrial Finance Authority) in the form of credit lines that are directed by such government agencies through private banks to specific targeted sectors for economic development.Under this arrangement, Ita Unibanco Holding borrows funds from BNDES or FINAME and passes the funds at a spread determined by the Government to the targeted sector of the economy. Onlending is at the risk of Ita Unibanco Holding, and it is generally secured. b)Euronotes Originaltermin Carryingamount(netof repurchases) Maturitydate years Currency Coupon-% 2009 2008 05/18/2009 5 US$ 5.00 - 16 07/02/2009 1 US$ 12.68 - 3 12/21/2009 1 US$ 6.28 - 164 12/21/2009 1 US$ 6.40 - 28 12/21/2009 1 US$ 5.92 - 6 12/21/2009 1 US$ 6.15 - 7 12/21/2009 1 US$ 6.00 - 1 02/09/2010 2 US$ 11.41 3 2 02/10/2010 1 US$ 3.12 2 - 02/22/2010 1 US$ 4.50 2 - 06/21/2010 2 US$ 6.25 3 4 06/21/2010 2 US$ 6.20 6 7 06/22/2010 5 3.50 327 516 07/20/2010 2 US$ 1.55 2 - 08/20/2010 5 US$ 6.39 4 5 10/20/2010 5 US$ 7.08 3 5 10/20/2010 5 US$ 7.29 4 5 10/20/2010 5 US$ 8.00 2 2 10/20/2010 5 US$ 6.98 9 12 10/20/2010 5 US$ 7.0

OTHER LIABILITIES

OTHER LIABILITIES
	12 Months Ended Dec. 31, 2009 BRL
OTHER LIABILITIES	NOTE 18 OTHER LIABILITIES 2009 2008 Payable to merchants for credit card transactions 26,181 9,583 Taxes payable and challenged in court (Note 30b) 6,337 6,155 Derivative liabilities: Swaps 2,344 3,075 Options 2,720 3,405 Forward 547 1,328 Credit derivatives 106 201 Futures 25 - Other 539 - Contingent liabilities (Note 30b) 7,651 5,219 Interest on stockholders' equity payable 2,517 2,401 Collection of third-party taxes, social contributions and other 3,563 2,646 Payable for securities purchased (trade date) 1,720 2,638 Labor liabilities 2,776 1,727 Taxes other than income 3,701 939 Taxes on income 1,467 726 Payable related to acquisitions 548 426 Stock-based compensation (Note 26) 618 334 Accrued pension plan benefits (Note 25) 196 324 Foreign exchange portfolio, net 164 173 Deferred credits related to strategic partnership with CBD and LASA 109 148 Fair value of guarantees granted (Note 29e) 68 37 Other 4,824 2,927 68,721 44,412

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	12 Months Ended Dec. 31, 2009 BRL
STOCKHOLDERS' EQUITY	NOTE 19 STOCKHOLDERS EQUITY a) Capital and stockholders' rights I) Capital Quantity of shares issued 2009 2008 (*) Common shares 2,289,286,475 1,708,760,440 Preferred shares 2,281,649,744 1,605,988,901 TOTAL 4,570,936,219 3,314,749,341 (*) After giving retroactive effect to the bonus of shares in August 2009 At the Annual and Extraordinary Stockholders' Meeting held on August 27, 2007, stockholdersapproved the split of 100% of capital stock by issuing one additional share per each share previously owned. This split was carried out in the Stock Exchanges on October 1, 2007. At the Annual and Extraordinary Stockholders' Meeting held on April 23, 2008, stockholders approved the cancellation of 14,115,264 (*) common shares and 20,625,000 (*) preferred shares held in treasury, and a bonus of 25% over shares by issuing one additional share per each four shares previously owned. Bonus shares were issued on June 2, 2008. At the Extraordinary Stockholders' Meeting held on November 28, 2008 stockholders approved the cancellation of 11,000,000 (*) preferred shares held in treasury. Also at the Extraordinary Stockholders' Meeting held on November 28, 2008, stockholders approved the merger of all shares of Ita Unibanco, after the latter had acquired the shares of Itasa Export, E. Johnston, Unibanco Holdings e Unibanco, for the purpose of turning it into a wholly-owned subsidiary of Ita Unibanco Holding again.As a result, capital was increased by R$ 12,000 by way of the issuance of 1,256,186,878 (*) book entry shares with no par value: 580,526,035 (*) ordinary shares and 675,660,843 (*) preferred shares. BACEN approved the transaction on February 28, 2009. At the Annual and Extraordinary Stockholders' Meeting held on April 24, 2009, stockholders approved a bonus of 10% over shares by issuing one additional share per each four shares previously owned. Bonus shares will be traded after the approval of the related process by BACEN. As a result, capital was increased by 415,539,656 shares. Preferred shares carry no voting rights, but are entitled to a priority minimum non-cumulative annual dividend. Both types of shares participate equally in the distribution of dividends after the common shares have received payments equal to the minimum preferential payment to the preferred shares (R$ 0.022 per share at December 31, 2009, 2008 and 2007). All stockholders are entitled to receive, in total, a minimum mandatory dividend of at least 25% of Ita Unibanco Holding's annual net income as stated in the statutory accounting records adjusted for transfers to and from reserves as required by Brazilian corporate law. II) Treasury stock Pursuant to decisions of the Board of Directors, Ita Unibanco Holding repurchases its own shares to hold in treasury, to issue to grantees under the stock option plan (Note 26), to cancel, or to resell at a later date. Minimum cost, weighted average cost, maximum cost, and quoted market cost (per share after giving effect to the bonus of shares in June, 2008) at December 31, 2009 and 2008, are presented below:

EARNINGS PER SHARE

EARNINGS PER SHARE
	12 Months Ended Dec. 31, 2009 BRL
EARNINGS PER SHARE	NOTE 20 EARNINGS PER SHARE Basic and diluted earnings per share were computed as follows for the years indicated. All information in this note has been retroactively restated to give effect to the split of shares in June 2008 and the bonus of shares in August 2009 2009 2008 2007 Earnings per share - Basic Net income attributable to common and preferred stockholders of Ita Unibanco Net income attributable to Ita Unibanco 14,085 4,849 7,662 Minimum non-cumulative dividend on preferred shares in accordance with our by-laws (48 ) (31 ) (32 ) Subtotal 14,037 4,818 7,630 Undistributed retained earnings to be distributed to common stockholders in an amount per share equal to the minimum dividend payable to preferred stockholders (47 ) (34 ) (34 ) Subtotal 13,990 4,784 7,596 Undistributed retained earnings to be distributed to common and preferred stockholders on a pro-rata basis: To common stockholders 7,074 2,505 3,935 To preferred stockholders 6,916 2,279 3,661 Total net income available to common stockholders 7,121 2,539 3,969 Total net income available to preferred stockholders 6,964 2,310 3,693 Weighted average outstanding shares Common shares 2,192,530,134 1,708,760,440 1,708,796,764 Preferred shares 2,143,753,894 1,554,841,088 1,589,475,999 Earnings per share - in R$ Common shares 3.25 1.49 2.32 Preferred shares 3.25 1.49 2.32 2009 2008 2007 Earnings per share - Diluted Net income attributable to common and preferred stockholders of Ita Unibanco Net income available to preferred stockholders 6,964 2,310 3,693 Dividend on incremental preferred shares 9 9 24 Net income available to preferred stockholders considering incremental preferred shares 6,973 2,319 3,717 Net income available to common stockholders 7,121 2,539 3,969 Dividend on incremental preferred shares (9 ) (9 ) (24 ) Net income available to common stockholders considering incremental preferred shares 7,112 2,530 3,945 Adjusted weighted average shares Common shares 2,192,530,134 1,708,760,440 1,708,796,764 Preferred shares 2,149,890,063 1,569,079,278 1,609,800,069 Preferred shares 2,143,753,894 1,554,841,088 1,589,475,999 Incremental shares from stock options granted under our Stock Option Plan (Note 26) 6,136,169 14,238,190 20,324,070

TAXES ON INCOME

TAXES ON INCOME
	12 Months Ended Dec. 31, 2009 BRL
TAXES ON INCOME	NOTE 21 TAXES ON INCOME Ita Unibanco and each of its subsidiaries file separate corporate income tax returns for each fiscal year. Income taxes in Brazil comprise federal income tax and social contribution on net income, whichis an addition on federal tax. The tax rates applicable to financial institutions in each year were as follows: 2009 2008 2007 Federal income tax 25 25 25 Social contribution on net income (*) 15 15 9 Composite rate 40 40 34 (*)The Provisional Measure 413 of January 3, 2008 and the subsequent Law 11,727, of June 23, 2008 increased the rate for social contruibution on net income from 9% to 15% for financial and financial-equivalent companies effective as from May 1, 2008. The amounts recorded as income tax expense in the consolidated financial statements are reconciled to the statutory rates as follows: 2009 2008 2007 Income before taxes 23,461 3,544 11,778 Equity in earnings of unconsolidated companies, net (9 ) (474 ) (476 ) Calculation basis 23,452 3,070 11,302 Tax expense at statutory rates (9,381 ) (1,228 ) (3,843 ) Nontaxable (deductible) exchange gains (losses) on foreign subsidiaries (1,356 ) 775 (330 ) Nondeductible expenses (86 ) (112 ) (74 ) Nontaxable dividends on companies recorded at cost 101 67 11 Net tax benefit on interest on shareholders' equity 1,474 660 82 (Nondeductible) / taxable stock based compensation (164 ) 105 (115 ) Nontaxable interest on foreign government debt securities 295 381 297 Constitution /(Reversal) of the valuation allowance (1) - 131 (51 ) Effect of increase in social contribution rate - 336 - Other differences 268 219 (124 ) Income tax income (expense) (8,849 ) 1,334 (4,147 ) (1) During the year 2008 we released the valuation allowance corresponding to tax loss carryforwards of one of our insurance subsidiaries as result of tax planning strategies that allow realization of those tax loss carryforwards. The major components of the deferred tax accounts in the consolidated balance sheet are as follows: 2009 2008 Deferred tax assets 26,162 12,441 Provisions not currently deductible: Allowance for loan and lease losses 10,086 5,050 Taxes and social securities 1,875 881 Other provisions 2,249 1,667 Tax loss carryforwards 3,284 3,606 Deferred Tax Asset for excess tax - deductible Goodwill 6,269 - Other temporary differences 2,399 1,237 Deferred tax liabilities 19,070 7,827 Temporary differences related to leases 7,568 6,312 Pension plan prepaid assets 1,097 891 Gain on Redecard Transaction 1,812 - Ot

FEE AND COMMISSION INCOME

FEE AND COMMISSION INCOME
	12 Months Ended Dec. 31, 2009 BRL
FEE AND COMMISSION INCOME	NOTE 22 - FEE AND COMMISSION INCOME 2009 2008 2007 Fees charged on checking accounts services 4,456 3,219 2,551 Credit card fees 4,370 2,072 1,826 Asset management fees 2,188 1,867 1,971 Collection fees 904 597 454 Brokerage commissions 393 376 385 Fees for guarantees provided 507 204 136 Other 661 606 509 TOTAL 13,479 8,941 7,832

ADMINISTRATIVE EXPENSES

ADMINISTRATIVE EXPENSES
	12 Months Ended Dec. 31, 2009 BRL
ADMINISTRATIVE EXPENSES	NOTE 23 - ADMINISTRATIVE EXPENSES 2009 2008 2007 External administrative services 2,571 1,185 1,006 Communication expenses 1,278 821 675 Technology expenses 992 764 688 Banking and brokerage fees 563 593 552 Maintenance and security expenses 951 569 486 Rent expenses 795 394 350 Advertising expenses 514 373 276 Transportation costs 385 282 249 Other marketing expenses 324 259 194 Office and technology supplies 299 231 186 Utilities 266 175 174 Credit card outsourcing processing fees 307 162 114 Traveling expenses 120 97 72 Other 636 504 450 TOTAL 10,001 6,409 5,472

OTHER NON-INTEREST INCOME AND E

OTHER NON-INTEREST INCOME AND EXPENSES
	12 Months Ended Dec. 31, 2009 BRL
OTHER NON-INTEREST INCOME AND EXPENSES	NOTE 24 - OTHER NON-INTEREST INCOME AND EXPENSES a) Other non-interest income 2009 2008 2007 Indexation charges of other assets 1,272 728 501 Gains and losses on sale of foreclosed assets, premises and equipment and investments in unconsolidated companies 476 343 2,891 Gains on sale of unconsolidated companies (1) (2) (3) 370 279 2,762 Gain on sale of BKB real estate - - 92 Others 106 64 37 Gain on exchange of shares of Bovespa Holding S.A (4) 124 424 - Recovery of expenses 334 174 98 Deposits related to comissions 30 1 198 Recission of the service agreement of payroll of States of Minas Gerais civil servants (Note 13) - - 76 Discounts obtained from suppliers 344 1 4 Gain on early payment to merchants - credit cards 525 62 9 Remeasurement of equity interest held in Redecard S.A (Note 3.1.b) 4,530 - - Gain on exchange of equity interest in PSIUPAR (Note 3.1.c) 936 - - Bargain purchase gain on acquisition of Unibanco and Unibanco Holdings (Note 3.1.a) 830 - - Others 833 670 546 TOTAL 10,110 2,403 4,323 (1) Gains on sale of investments in Visa in the amount of R$ 345, and gains on sale of investments in Allianz in the amount of R$25, during 2009. (2) Gains on sale of investments in Mastercard and Visa, during 2008; (3) In 2007, a primary and secondary offering of shares of Redecard S.A and secondary offerings of shares of Bovespa Holding S.A and Bolsa de Mercadorias Futuros- BMF S.A, were carried out , in which Ita Unibanco sold a portion of its interest held in their capital. It also sold to Expirian Brasil Aquisies Ltda., a portion of its interest held in Serasa S.A. The effects of such sales are shown below: Company Dateof transaction Numberof sharessold Salesprice Cost Profit Redecard S.A (3a) 11 and 31.7.2007 53,798,700 1,555 11 1,544 Serasa S.A (3a) 28.6.2007 832,176 778 35 743 Bolsa de Mercadorias Futuros - BMF S.A (3b) 3.12.2007 13,856,195 262 35 227 Bovespa Holding S.A (3b) 26.10.2007 11,422,427 263 15 248 Total 2,858 96 2,762 (3a) The remaining participation is recorded in investments in unconsolidated companies. The increase in the carrying amount of our investment in the unsold shares of Redecard S.A. amounting to R$ 101, and was recognized in gains on sale of investments in 2008; (3b) The remaining participation is recorded in available-for-sale securities at fair value. (Note 3); (4) During 2008, Bovespa Holding S.A (Bovespa Holding) and Bolsa de Mercadorias Futuros - BMF S.A (BMF) entered into a business combination in which BMF was considered the accounting acquirer. In accordance with EITF 91-5 (now ASC 325

PENSION PLANS AND OTHER POST-RE

PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS
	12 Months Ended Dec. 31, 2009 BRL
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS	NOTE 25 PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS Ita Unibanco Holding and certain of its subsidiaries sponsor several defined-benefit and variable-contribution plans all of which provide additional pension payments for life to those provided by the government social security plans, based on salaries of the participants when active and years of service. The plans cover substantially all full-time employees hired up to July 31, 2002 of Ita Unibanco Holding in Brazil and a small number of employees of its subsidiaries and affiliates abroad, as well as qualified employees of certain subsidiaries we acquired. As regards to new employees hired after August 1, 2002, they have the option to voluntarily participate in a defined contribution plan (PGBL), managed by Ita Vida e Previdncia S.A. Contributions to this defined contribution plan were R$ 9, R$ 10 and R$ 8 for the years ended December 31,2009, 2008 and 2007, respectively. We also have contribution plans for employees of subsidiaries acquired and we contributed with less than R$ 1 in 2009, 2008 and 2007. The assets of the plans are invested in separate funds restricted to the only purpose of providing benefits to eligible employees, and held independently from Ita Unibanco Holding. Such funds are held by independent legal entities as detailed below: Benefit plan Independent holder of the plan assets Plano de Aposentadoria Complementar - PAC Fundao Itaubanco Plano de Benefcio Franprev PBF Fundao Itaubanco Plano de Benefcio 002 PB 002 Fundao Itaubanco Plano Bsico Itaulam - PBI Fundao Itaubanco Plano Suplementar Itaulam - PSI (*) Fundao Itaubanco Plano de Aposentadoria Complementar Mvel Vitalcia - ACMV Fundao Bemgeprev Plano de Benefcios Funbep I Funbep Fundo de Penso Multipatrocinado Plano de Benefcios Funbep II (*) Funbep Fundo de Penso Multipatrocinado Plano de Benefcios Prebeg Caixa de Previdncia dos Funcionrios do BEG Plano de Aposentadoria ItauBank (**) ItauBank Sociedade de Previdncia Plano Ita BD Ita Ita Fundo Multipatrocinado Plano Ita CD Ita (*) Ita Fundo Multipatrocinado Plano de Aposentadoria Redecard Bsico (***) Citiprev Entidade Fechada de Previdncia Complementar Plano de Aposentadoria Redecard Suplementar (*) Citiprev Entidade Fechada de Previdncia Complementar Plano de Previdncia Unibanco(**) (***) UBB PREV Previdncia Complementar Plano Bsico (***) UBB PREV Previdncia Complementar Plano IJMS (***) UBB PREV Previdncia Complementar Plano de Benefcios II (***) Banorte Fundao Manoel Baptista da Silva de Seguridade Social (Banorte) (*) Variable contribution benefit plans. (**) Defined contribution benefit plans. (***) Plans for post-retirement benefits of companies acquired. Contributions are made by Ita Unibanco Holding and its subsidiaries and by the participants based on actuarial studies prepared by independent actuaries, except in the case of "PAC", ACMV and PBI plans which are funded exclusively by Ita Unibanco Holding and certain of its subsidia

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION
	12 Months Ended Dec. 31, 2009 BRL
STOCK-BASED COMPENSATION	NOTE 26 - STOCK-BASED COMPENSATION We have been issuing stock options as compensation since 1995. Accordingly, part of our managements variable compensation is in the form of stock options, which we believe reinforces their commitment to our performance. Our shareholders, at the general extraordinary meeting held on April 24, 2009, included members of Board of Directors among the potential beneficiaries of the plan. We believe that this will allow them to benefit from the additional value that their work created for the shares of Ita Unibanco Holding. Our stock option plan is designed to retain the services of members of management and our Board of Directors and to recruit and retain qualified employees. On April 24, 2009, a new program was launched for Ita Unibanco, called Stock Option Plan. From then on, no stock options will be granted in the prior programs. Also on April 24, 2009 awards that were issued to officers of Unibanco and Unibanco Holdings before the business combination completed in 2009 were exchanged for new awards. Under the terms of the applicable legislation we were legally required to exchange those awards for options to acquire or receive shares of Ita Unibanco Holding. The awards issued as replacement awards maintained all the original terms of the original awards except that the awards give the beneficiary to acquire or receive shares of Ita Unibanco Holding instead of shares of Unibanco and Unibanco Holdings. The exchange ratio used to exchange original awards for replacement awards was the same exchange ration used to issue shares of Ita Unibanco to selling shareholders of Unibanco and Unibanco Holdings described in Note 3.1.a. All other remaining terms including, among others, exercise price, index to be used to adjust the exercise price, vesting and exercise periods and vesting conditions were maintained unchanged with respect to the original awards. I - Stock Option Plan New Itau Unibanco Holding Plan This program aims at involving the officers in the medium and long-term corporate development process. The options are personal and not transferable, and entitle to the subscription of one share of authorized capital or, at the discretion of management, one treasury share acquired for replacement purposes. Such options may only be granted in years in which there are sufficient profits to distribute mandatory dividends to shareholders and at a quantity that does not exceed the limit of 0.5% of the total shares held by the shareholders at year-end. The Itau Unibanco Holdings Personnel Committee is responsible for defining the total number of shares to be granted, the eligible officers, the number granted to each officer, the exercise period of the option series, and the vesting and blackout periods for exercising the options. Options may be granted to executive officers and Board of Directors members (officers) of Itau Unibanco Holding and, in exceptional circumstances, to management of subsidiaries or outstanding employees of Itau Unibanco Holding or the aforementioned subsidiaries, and also upon hiring highly qualified individuals. The exercise price of each series is fixed taking into consi

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 BRL
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 27 FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 825-10-50-10 "Disclosures about Fair Value of Financial Instruments" (Formerly SFAS 107), requires disclosure of fair value information of financial instruments, whether or not recognized in the consolidated balance sheet, for which it is practicable to estimate such fair value and defines a financial instrument as cash, evidence of ownership interest in an entity or a contractual obligation or right that will be settled with another financial instrument. SFAS 157 (new ASC 820) sets out additional disclosure requirements which are presented in Note 28. ASC 825-10-50-10 (Formerly SFAS 107) excludes certain financial instruments and all non-financial instruments, including intangible assets, from its disclosure requirements. The following table summarizes the carrying and estimated fair values for financial instruments: Carrying value Estimated fair value 2009 2008 2009 2008 Financial assets Assets for which fair value approximates carrying value 149,467 126,072 149,467 126,072 Interest-bearing deposits in other banks 89,085 49,677 89,128 49,698 Available-for-sale securities 41,263 28,445 41,263 28,445 Held-to-maturity securities 1,762 1,325 2,124 1,516 Loans and leases, net of allowance for loan and lease losses 225,768 157,498 226,135 157,149 Financial liabilities Liabilities for which fair value approximates carrying value 214,126 152,198 214,126 152,198 Interest-bearing deposits 165,024 126,696 164,983 126,708 Long-term debt 58,976 37,672 58,812 37,678 Off-balance sheet financial instruments Commitments to extend credit 1,207 659 349 266 Standby letters of credit card guarantees 31,234 12,854 68 37 The methods and assumptions to estimate the fair value are set forth below: a)Cash and due from banks, including restricted cash, securities purchased under resale agreements and Central Bank compulsory deposits - The carrying amount reported in the consolidated balance sheet for these instruments approximates their fair value. b) Interest-bearing deposits in other banks - We estimated the fair value of interest-bearing deposits in other banks by discounting estimated cash flows using as input interest market rates. c) Trading assets, including derivatives, Available-for-sale securities and Held-to-maturity securities The description of the method and criterion adopted for determining the fair values of these securities and derivatives is included in Note 28. d) Loans and leases - Fair values are estimated for groups of loans with similar financial and risk characteristics using valuation models. The fair value of fixed-rate loans was determined by discounting estimated cash flows using interest rates approximating our current rates for similar loans. For most variable-rate loans, the carryi

FAIR VALUE MEASUREMENTS AND ADD

FAIR VALUE MEASUREMENTS AND ADDITIONAL DISCLOSURES ON FAIR VALUE HIERARCHY
	12 Months Ended Dec. 31, 2009 BRL
FAIR VALUE MEASUREMENTS AND ADDITIONAL DISCLOSURES ON FAIR VALUE HIERARCHY	NOTE 28 FAIR VALUE MEASUREMENTS AND ADDITIONAL DISCLOSURES ON FAIR VALUE HIERARCHY In September 2006, the FASB issued ASC - 820 (formerly SFAS 157) Fair Value Measurements, which is effective for fiscal years beginning after November 15, 2007, with early adoption permitted. Ita Unibanco Holding did not choose to early adopt ASC 820, therefore the effective date for its application was January 1, 2008.ASC - 820 defines fair value, establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, eliminates large position discounts for financial instruments quoted in active markets and expands disclosures about instruments measured at fair value. As described in Note 2.aa ammendments and interpretations of ACS 820 were issued for application as from January 1, 2009 including requirements for additional disclosures and interpretation on certain specific valuation topics. In accordance with ASC - 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and could be measured for a particular asset or liability and, thus, should incorporate its specific characteristics, such as condition, location, and restrictions, if any. In some cases, the fair value measurement will be applied to a standalone asset or liability or a group of related assets and/or liabilities. Ita Unibanco Holding established and documented the process for determining fair values. There is an independent group responsible for approving methodologies and pricing models. The fair value is calculated by two independent areas, one responsible for the valuation of Ita BBAs products and the other responsible for the valuation of all other products of the group. Monthly, an independent model review group reviews valuation models and approves them for use for specific products. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon valuation methodologies generally accepted in the financial services markets and in certain circumstances, internally developed models.The valuation methodologies and internally developed models prioritize the use, as inputs, of market-based or independently sourced market parameters, including yield curves, interest rates, volatility, and foreign exchange rates. We further describe the methodologies used for our securities and derivatives classified as Level 2 or Level 3 subsequently in this footnote. Additionally, valuation adjustments may be required to ensure that financial instruments are recorded at fair value, with these potential adjustments related to counterparty credit quality and Ita Unibanco Holdings own creditworthiness. Valuation adjustments are necessary when the market value does not incorporate the quality of the counterparty credit risk. In the case of financial derivatives a significant portion of Ita Unibanco Holdings derivatives are traded at the BMF and another smaller portion in foreign stoc

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND FINANCIAL INSTRUMENTS RELATED TO CREDIT
	12 Months Ended Dec. 31, 2009 BRL
DERIVATIVE FINANCIAL INSTRUMENTS AND FINANCIAL INSTRUMENTS RELATED TO CREDIT	NOTA 29 DERIVATIVE FINANCIAL INSTRUMENTS AND FINANCIAL INSTRUMENTS RELATED TO CREDIT a) Derivative - General We enter into financial derivative instruments with various counterparts to manage our overall exposures and to assist our customers in managing their own exposures. Futures - Interest rate and foreign currency futures contracts are commitments to buy or sell a financial instrument at a future date, at a contracted price or yield and may be settled in cash or through delivery.The notional amount represents the face value of the underlying instrument. Commodity future contracts are commitments to buy or sell commodities (mainly gold, coffee and orange juice), at a future date, at a contracted price, which are settled in cash. The notional amount represents the quantity of such commodities multiplied by the future price at the date of the agreement. Daily cash settlements of price movements are made for all instruments. Forward - Interest forward agreements are contracts to exchange payments on a specified future date, based on a market change in interest rates from trade date to contract settlement date. Foreign exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed price, on an agreed settlement date. Forwards contracts are commitments to buy or sell a financial instrument on a future date at an agreed-upon price and are settled in cash. Swaps - Interest rate and foreign exchange swap contracts are commitments to settle in cash at a future date or dates, based on differentials between specified financial indices (either two different interest rates in a single currency or two different rates each in a different currency), as applied to a notional principal amount. Swap agreements presented in Other in the table below correspond substantially to inflation rate swap contracts. Options - Option contracts give the purchaser, for a fee, the right, but not the obligation, to buy or sell within a limited time a financial instrument including a flow of interests, foreign currencies, commodities, or equity instruments at a contracted price that may also be settled in cash, based on differentials between specific indices. Credit Derivatives Credit derivatives are instruments which value results to the credit risk associated to the debt issued by a third party (the reference entity) which permits that one party (the purchaser of hedge) transfer the risk to the counterparty (the seller of hedge). The seller of hedge should make payments as set forth in the contract when the reference entity undergoes a credit event, such as bankruptcy, default or debt restructuring. The seller of hedge receives a premium for the hedge, but, on the other hand, assumes the risk of the underlying asset referenced in the contract undergoes a credit event, andthe seller would have to make the payment to the purchaser of hedge, which could be a notional amount of the credit derivative. The market and credit risk associated to these products, as well as operating risks, are similar to those related to other types of financial instruments. Market risk is the ex

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES
	12 Months Ended Dec. 31, 2009 BRL
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 30 COMMITMENTS AND CONTINGENT LIABILITIES a) Assets Under Management Ita Unibanco offers, manages and administers a broad range of investment funds and provides portfolio management services for pension funds, corporations, private banking customers and foreign investors. These assets are not included in our consolidated balance sheet. The investment policy for each fund domiciled in Brazil must be submitted to the Central Bank and to CVM for approval and each fund is regulated as to the type of investments it may make. Portfolio management carried out by Ita Unibanco on behalf of pension plans, corporations, private banking customers and foreign investors is done on the basis of negotiated fees and investment parameters. Fees are generally charged as a percentage of assets under management and vary depending upon the debt/equity composition of the particular portfolio. In addition to the fees earned by Ita Unibanco as manager of the relevant investment fund or portfolio, we earn brokerage fees for transactions carried out in respect of the fund and portfolio assets. b)Contingent gains and losses Ita Unibanco and its subsidiaries are involved in contingencies in the ordinary course of their businesses, as follows: a) Contingent Assets: there are no contingent assets recorded. b) Contingent Liabilities: these are estimated and classified as follows: - Calculation criteria: Civil lawsuits: quantified upon judicial notification, and adjusted monthly: Collective (lawsuits related to claims considered similar and usual and the amounts of which are not considered individually significant): according to the statistical references per group of lawsuits, type of legal body (Small Claims Court or Regular Court) and claimant; or Individual (lawsuits related to claims considered unusual and the amounts of which are considered individually significant): at the amount estimated as probable loss, based on the evidence presented and on the evaluation of legal advisors which considers case law, legal opinions raised, evidence produced in the records and the judicial decisions already issued relating to the risk level of loss of lawsuits. These are adjusted to the amounts deposited as guarantee for their execution or to the definitive execution amount (indisputable amount) when the claim is awarded a final and unappealable judgment. Labor claims: these are calculated upon judicial notification and adjusted to the moving average of payment in lawsuits closed in the last 12 months plus the average cost of fees paid for lawsuits related to claims considered similar and usual and adjusted to the execution amount (indisputable amount) when it is in the stage of being a final and unappealable decision. Tax and social security lawsuits: calculated upon judicial notification of administrative proceedings based on their monthly adjusted amounts. - Contingencies classified as probable: are recognized in the financial statements and comprise: - Civil Lawsuits: demanding compensation for property damage and pain and suffering, such as protest of bills,

REGULATORY MATTERS

REGULATORY MATTERS
	12 Months Ended Dec. 31, 2009 BRL
REGULATORY MATTERS	NOTE 31 REGULATORY MATTERS Ita Unibanco is subject to regulation by the Central Bank which issues directions and instructions regarding currency and credit policies for financial institutions operating in Brazil. The Central Bank also determines minimum capital requirements, fixed assets limits, lending limits, accounting practices and compulsory deposit requirements, and requires banks to comply with regulation based on the Basel Accord as regards to capital adequacy. Furthermore, the SUSEP issues regulations which affect our insurance, private retirement plans and capitalization operations. The Basel Accord requires banks to have a ratio of capital to risk-weighted assets of a minimum of 8%. At least half of total capital must consist of Tier I Capital. Tier I, or core capital, includes equity capital less certain intangibles. Tier II Capital includes, subject to certain limitations, asset revaluation reserves, general loan loss reserves and subordinated debt, and is limited to the amount of Tier I Capital. However, Brazilian banking regulations (a) require a minimum capital ratio of 11%, (b) as fromDecember 2008, permitthe accretion of an additional allowance for loan and lease losses to the minimum percentages set forth by the Central Bank of Brazil ,and that is considered as Tier I Capital, (c) specify different risk-weighted categories, (d) impose the following deductions fromTier I Capital:(i) deferred permanent assets, less goodwill paid on acquisition of investments, (ii) balance of unrealized gains and losses arising from adjustment to market value of securities classified as "available-for-sale securities" and derivative financial instruments used to hedge cash flow, which are considered as Tier II Capital, and (iii) deferred tax assets, which expected realization is after five years from the evaluation date, and (e) they also determined the following deductions from Capital: (i) investments in financial instruments which are part of the Regulatory Capital of other institutions authorized to operate by the Central Bank, (ii) the amount corresponding to offices or interests in a foreign financial institution in relation to which the Central Bank does not have access to information, data and documents sufficient for consolidated supervision purposes, and (iii) possible surplus in fixed assets over the limits imposed by the Central Bank.As from January 2008, the other deferred tax assets cannot represent more than 40% of the Tier I Capital, and this percentage will be gradually reduced until 10% as from January 2011. The surplus shall also be deducted from the Tier I Capital. In December 2009 the Central Bank revoked, as from April 2010, the permission for accretion of the additional allowance for loan losses mentioned in item (b) of the foregoing paragraph. In accordance with Central Bank rules, banks can calculate compliance with the minimum requirement on the financial institutions on a consolidated basis (considering only the institutions regulated by the Central Bank, including branches and investments abroad). Brazilian banks are also required to calculate compliance with the minimum requirement on a full conso

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 BRL
BUSINESS SEGMENT INFORMATION	NOTE 32 BUSINESS SEGMENT INFORMATION In the first quarter 2009, after the acquisition of Unibanco, the segmentation of Ita Unibanco net income was presented using a new model, arising from the restructuring of operating processes in our organization. We now disclose four operational segments: Commercial Bank, Ita BBA, Consumer Credit, and Corporation and Treasury. For comparison purposes, we have also presented all segment financial information for the years ended December 31, 2008 and 2007 based on the current segments basis. We are a banking institution that offers its clients a wide range of financial products and services. Our current business segments are described below: Ita Unibanco Commercial Bank Our Commercial Bank segment provides a broad range of banking services to a diversified client base of individuals and companies, among which are the following: retail clients (individuals and very small companies), high net worth clients, private banking clients, and small and middle-sized companies. The products and services provided by the Commercial Bank include insurance, private retirement and capitalization plans, credit cards, asset management, loans, among others. The segment provides solutions specifically developed to meet the demand of clients, devising marketing strategies appropriate to each of the different profiles and using the most convenient distribution channels. Accordingly, we are constantly seeking to increase the number of products used by clients, diversifying our sources of income. The segment is an important source of funding to our operations and provide significant interest income and banking services. Ita Unibanco - Ita BBA Our segment responsible for banking operations of large companies and investment banking services is named Ita BBA. Ita BBA offers a wide range of products and services to the major economic groups of Brazil. The management model of Ita BBA is focused on the development of close relationships with its clients, gaining a deep knowledge of their needs and providing customized solutions. The investment banking activities comprise the provision of funds to the corporate segment that are raised through fixed and variable income instruments. In addition, it performs activities of mergers and acquisitions. Ita Unibanco Consumer Credit The Consumer Credit segment is responsible for the development of our strategy of increasing the range of financial products and services beyond the universe of clients who are account holders. Thus the consumer credit segment comprises vehicle financing services provided by units other than the branch network, credit cards to clients who are account holders, and credit to the low income population. The business structure of the vehicle financing operation is supported by: new, used, heavy vehicles and motorcycles. The merger of the operations of Ita and Unibanco showed a strong complementarity of businesses, a competitive advantage that we are increasing by intensifying the combined operations, exchanging expertise between teams and seeking a higher operational efficiency. The credit approval process of vehicle operations is base

RELATED PARTIES

RELATED PARTIES
	12 Months Ended Dec. 31, 2009 BRL
RELATED PARTIES	NOTE 33 - RELATED PARTIES Our transactions with companies within the consolidation group are mainly carried out on market terms and completely eliminated on consolidation. a) Transactions with unconsolidated entities We present below the operations between Ita Unibanco and its consolidated subsidiaries with the entities accounted for following the equity method. The transactions between Ita Unibanco Holding and its consolidated subsidiaries and the equity investees are mainly banking transactions carried out at the terms summarized below: 2009 2008 2007 ASSETS Dividends receivable Unibanco Rodobens Administradora de Consrcios Ltda 15 - - LIABILITIES Demand deposits Ita XL Seguros Corporativos S.A. 54 129 - Tecnologia Bancria S.A. 3 - - Unibanco Rodobens Administradora de Consrcios Ltda 43 - - Time deposits Unibanco Rodobens Administradora de Consrcios Ltda 16 - - CNF - Administradora de Consrcios Nacional Ltda 57 - - Deposits received under securities repurchase agreements Olimpia Promoo e Servios S.A. 26 28 - b)Transactions with other entities of the Itasa Group of companies The table below presents balances and transactions between Ita Unibanco Holding and other entities of the Itasa Group. LIABILITIES 2009 2008 2007 Demand deposits ITH Zux Cayman Company Ltd. 41 55 - Duratex S.A. 18 32 - Interest-bearing deposits Elekeiroz S.A. 11 38 22 Annual interest (%) 100,00% of CDI 101,50% of CDI 101,50% of CDI Elekeiroz S.A. - 21 - Annual interest (%) - 102% of CDI - Itasa Empreendimentos S.A. 31 28 - Annual interest (%) 101,10% of CDI 102,30% of CDI - Itasa Empreendimentos S.A. 17 16 - Annual interest (%) 100,80% of CDI 102% of CDI - Duratex S.A. - 39 10 Annual interest (%) - 102,37% of CDI 104,45% of CDI Securities purchased under resale agreements Itasa Empreendimentos S.A. 48 - - Ita Gesto de Ativos S.A. 1 - - Trade notes payable Itautec S.A. (1) 10 7 8 Itasa Investimentos S.A. 73 - - Other Liabilities - Payable to merchants for credit card transactions Redecard S.A. (2) ____________________________________ - 4,564 4,159 TRANSACTIONS (other than interest income and interest expense recognized in the financial transactions above) Service fees and commission income Itasa Investimentos S.A. 2 - - Rent expenses Itasa Investimentos S.A. 1 - - Equipment and

STRATEGIC PARTNERSHIP

STRATEGIC PARTNERSHIP
	12 Months Ended Dec. 31, 2009 BRL
STRATEGIC PARTNERSHIP	NOTA 34 STRATEGIC PARTNERSHIP 34.1 During the year ended December 31,2009 a) Magazine Luiza S.A. (Magazine Luiza) In November 2009, Ita Unibanco Holding S.A. (Ita Unibanco) signed an agreement with Magazine Luiza related to Luizacred S.A. Sociedade de Crdito, Financiamento e Investimento (Luizacred), a financial institution, which offers consumers finance and credit cards to the clients of Magazine Luiza. Ita Unibanco and Magazine Luiza hold 50% interest each in the total and voting capital of Luizacred. Ita Unibanco and Magazine Luiza agreed to extend the period of exclusivity, granted by Magazine Luiza to Luizacred, to December 31, 2029, pursuant to a payment of R$ 250. The amount of R$ 250 paid to Magazine Luiza was recorded in Intangible Assets and will be amortized over the estimated useful life of 20 years, the term of the agreement. b) Companhia Brasileira de Distribuio (CBD) In August 2009, Ita Unibanco Holding S.A. (Ita Unibanco) signed an agreement with CBD related to Financeira Ita CBD S.A. Crdito, Financiamento e Investimento (FIC), a financial institution which holds the exclusive right to offer financial products and service to clients of CBD. Ita Unibanco and CBD hold 50% interest each in the total and voting capital of FIC. Ita Unibanco and CBD resolved to amend the FIC agreement, releasing Ita Unibanco from the exclusivity obligation, pursuant to a payment of R$ 550. The amount of R$ 550 was recorded in the consolidated income statement as Other Non-Interest Expenses. Ita Unibanco and CBD also agreed to extend the exclusivity term granted by CBD to FIC, to exploit the right granted by the FIC agreement terms for 5 years up to August 28, 2029, pursuant to a payment of R$ 50. The amount of R$ 50 paid to CBD was recorded in Intangible Assets and will be amortized over the estimated useful life of 20 years, the term of the agreement. 34.2 Significant strategic partnerships occurred in prior years c) Marisa S.A. (Marisa) In October 2008, Ita Unibanco Holding signed a "partnership agreement" ("agreement") with Marisa, a retail store chain specialized in womans fashion , for the acquisition of the exclusive right to offer, distribute, and market financial products and services to the clients of Marisa. The investment of Ita Unibanco Holding totaled R$ 120 and refers to the acquisition of said exclusive right for a 120-month period. We recorded the amount of R$ 120, paid to Marisa, as an intangible asset to be amortized over its estimated useful life of 120 months, i.e., for the term of the agreement. We allocated this intangible asset to the Banking Services segment of Banco Ita Unibanco. d) Lojas Americanas S.A. and BWU Comrcio e Entretenimento S.A. (jointly referred to as LASA) in relation to Lojas Blockbuster In June 2008, Ita Unibanco Holding signed a partnership agreement" (agreement) with LASA, for the acquisition, through FAI, of the exclusive right to offer, distribute, and market financial products and services to the clients of Lojas Brockbuster, which are fully held by LASA. The investment of Ita Unibanco Ho

COMMITMENTS RELATED TO ITAU BBA

COMMITMENTS RELATED TO ITAU BBA ACQUISITION
	12 Months Ended Dec. 31, 2009 BRL
COMMITMENTS RELATED TO ITAU BBA ACQUISITION	NOTE 35 COMMITMENTS RELATED TO ITA BBA ACQUISITION Ita Unibanco and the individual selling shareholders of Ita BBA assumed certain commitments under the terms of the sale term of the sale and purchase agreement of the Ita BBA group. The key commitments, relate to: (i) a minimum spread over loans transferred at acquisition date in January 2004 and reimbursement of losses on those loans, (ii) an additional payment if treasury results exceed a target amount, (iii) a cash bonus to directors and officers accounted for a compensation if they continue employment for a minimum period and (iv) the selling shareholders committed to reimburse for pre-acquisition contingencies. As of December 31, 2009 and 2008, net assets and liabilities related to the above-mentioned commitments amounted to R$ 356 and 263, respectively, which are presented in Other assets or Other liabilities, as appropriate.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 BRL
SUBSEQUENT EVENTS	NOTA 36 SUBSEQUENT EVENTS a) Ita XL Ita Unibanco and XL Swiss Holdings Ltd. (XL Swiss) entered into an agreement on November 12, 2009 for the acquisition by Ita Unibanco of the interest in Ita XL Seguros Corporativos S.A. (Ita XL) held by XL Swiss. After the consummation of the transaction, Ita XL will be a wholly owned subsidiary of Ita Unibanco. The consummation of the transaction is subject to the approval of the Brazilian Insurance Regulator (SUSEP). b) Itaubanco Defined Contribution Plan During 2010, Ita Unibanco initiated a process to offer to the participants of Plano de Aposentadoria Complementar PAC (a defined benefit plan) to migrate their participation to Itaubanco Defined Contribution Plan. Upon the finalization of this process, the assets and liabilities related to participants that accepted the migration offer will be transferred to the new plan.