Announcement to the Market

Disclosure of results for the second quarter and first half of 2011 according to

International Financial Reporting Standards – IFRS

We present below the differences between our financial statements in BRGAAP1 and in International Financial Reporting Standards - IFRS.

The complete consolidated financial statements under IFRS for the first half of 2011 are available at our website: www.itau-unibanco.com/ir.

Comparison between BRGAAP1 and IFRS

R$ million

Balance Sheet	BRGAAP			Adjustments2			IFRS			BRGAAP			Adjustments2			IFRS
	06/30/2011									12/31/2010
Total Assets		792,500			(31,984	)		760,516			755,113			(27,632	)		727,481
Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial Assets and Derivatives		386,203			1,507			387,710			371,048			(294	)		370,754
Loan Operations		316,964			533			317,497			297,102			(1,615	)		295,487
(-) Allowance for Loan Losses3		(23,775	)		1,877			(21,898	)		(22,292	)		2,298			(19,994	)
Other Financial Assets4		62,283			(24,583	)		37,700			63,171			(22,438	)		40,733
Tax Assets5		29,341			(6,846	)		22,495			29,265			(5,374	)		23,891
Investments in non consolidated Companies, Fixed and Intangible Assets, Assets Held for Sale and Other Assets		21,484			(4,472	)		17,012			16,819			(209	)		16,610

Current Liabilities and Long Term Liabilities		723,108			(33,655	)		689,453			690,503			(30,964	)		659,539
Deposits		208,914			-			208,914			202,738			(50	)		202,688
Deposits Received Under Securities Repurchase Agreements		197,864			-			197,864			199,641			16			199,657
Financial Liabilities Held for Trading, Derivatives, Interbank and Institutional funding		129,342			1,370			130,712			112,555			1,563			114,118
Other Financial Liabilities4		61,363			(24,788	)		36,575			63,546			(22,534	)		41,012
Reserves for Insurance, Private Pension and Capitalization		65,524			23			65,547			61,365			(1,898	)		59,467
Provisions and Other Liabilities		46,450			(3,365	)		43,085			33,191			(2,779	)		30,412
Tax Liabilities5		13,651			(6,895	)		6,756			17,467			(5,282	)		12,185

Total Stockholders’ Equity		69,392			1,671			71,063			64,610			3,332			67,942
Minority Stockholders’ Equity		3,309			(1,845	)		1,464			3,731			(2,054	)		1,677
Controlling Stockholders’ Equity		66,083			3,516			69,599			60,879			5,386			66,265

1 BRGAAP represents the accounting practices adopted in Brazil for financial institutions, according to regulation of the Brazilian Central Bank;

2 Resulted from reclassifications between assets and liabilities and other effects from IFRS adoption;

3 Implementation of the criteria for calculating the Allowance for Loan Losses as defined in IFRS model;

4 Difference in accounting for Foreign Exchange Portfolio, which started to be considered as a net effect of Assets and Liabilities;

5 Difference in accounting for deferred taxes, which are now treated as a net effect of Assets and Liabilities in each of the consolidated companies.

Itaú Unibanco Holding S.A.

Below, the reconciliation of net income and equity, and the conceptual description of the major adjustments.

Reconciliation

R$ million

Adjustments	Equity			Net Income
	06/30/2011			2nd Q/11			1st Q/11			2nd Q/11			1st H/11			1st H/10
BRGAAP - Shares to Attributable to Controlling Stockholders		66,083			3,603			3,530			3,165			7,133			6,399
(a) Allowance for Loan Losses		1,877			(419	)		271			(197	)		(148	)		(595	)
(b) Recognition of total deferred tax assets		1,428			(85	)		(185	)		(203	)		(270	)		(294	)
(c) Pension and health care plans		-			-			-			99			-			27
(d) Adjustment to market value of shares and quotas		805			-			-			-			-			-
(e) Acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A.		880			(8	)		(9	)		(6	)		(17	)		(10	)
(f) Provision for Itaú Unibanco merger expenses		-			-			-			(163	)		-			(323	)
(g) Conversion of subsidiaries and unconsolidated companies abroad		-			6			(40	)		306			(34	)		430
Other adjustments		(97	)		(39	)		26			(32	)		(13	)		333
Income tax and social contribution on Net Income		(1,377	)		264			(120	)		36			144			125
IFRS - Shares Attributable to Controlling Stockholders		69,599			3,322			3,473			3,005			6,795			6,092
IFRS - Shares Attributable to Minority Stockholders		1,464			182			156			207			338			409
IFRS - Shares Attributable to Controlling Stockholders and Minority Stockholders		71,063			3,504			3,629			3,212			7,133			6,501

Differences between IFRS and BRGAAP Financial Statements

(a) On IFRS(IAS39) loan losses allowances must be made when there is objective evidence that loan operations have suffered a reduction in itsvalue (impairment). On BRGAAP, the expected loss model is used6.

(b) Recognition in the consolidated financial statements on BRGAAP of the tax credit related to the Social Contribution on Net Income at the rate of 15% (IAS 12), fully incorporated in the opening balance sheet of 01/01/2010 under IFRS.

(c) All accumulated actuarial gains and losses, until the transition date, were recognized. As of 2011, IFRS and BRGAAP criteria were equalized (IAS 19).

(d) On IFRS(IAS39 and 32)stocksand quotasclassified aspermanent investment were measured at fair value and itsgains and losses were recorded di rectly on Equity, with no impact on the income statement of the period.

(e) On IFRS the effect of accounting at fair value the acquisition of the participation in Porto Seguro Itaú Unibanco Participações S.A. was recognized.

(f) The provision for Itaú Uni banco association wasreversed on the opening balance sheet on IFRSof 01/01/2010 (IAS19 and 37). On BRGAAPthisprovision wascompletely consumed until 12/31/2010.

(g) On the IFRS(IAS21) exchange rate variations of subsidiaries and non consolidated companies abroad, where the functional currency (defined as the currency of the primary economic environment on which each entity operates) differs from the Real, started to be recorded directly on Equity with no impact on the income statement of the period.

6 For more details see the on Complete Financial Statements for the first half of 2011.

For comparison purposes, we present on the table below the net income and the recurring net income according to the IFRS and the BRGAAP.

R$ million

Recurring Net Income	2nd Q/11									1st Q/11
	BRGAAP			IFRS			Variation			BRGAAP			IFRS			Variation

Net Income - Attributable to Controlling Stockholders		3,603			3,322			(281	)		7,133			6,795			(338	)
Exclusion of the Non-Recurring Events7		(286	)		(306	)		(20	)		(178	)		(208	)		(30	)
Program for Settlement or Installment Payment of Federal Taxes- Law No.11,941/09		(509	)		(509	)		-			(509	)		(509	)		-
Market Value Adjustment – BPI		156			142			(14	)		156			142			(14	)
Provision for Contingencies – Economic Plans		67			61			(6	)		175			159			(16	)
Recurring Net Income - Attributable to Controlling Stockholders		3,317			3,016			(301	)		6,955			6,587			(368	)

7 The difference between BRGAAP and IFRS results from the fact that, on IFRS, the Social Contribution on Net Income (CSLL) is not compensated by the tax credits generated by the increase in the CSLL rate from 9% to the current 15%.

São Paulo, August 08, 2011.

Alfredo Egydio Setubal

Investor Relations Officer

Itaú Unibanco Holding S.A.