Announcement to the Market

Disclosure of results for the first quarter of 2012, 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 quarter of 2012 are available at our website: www.itau-unibanco.com/ir.

Comparison between BRGAAP1 and IFRS R$ million

Balance Sheet	BRGAAP			Adjustments and Reclassifications2			IFRS			BRGAAP			Adjustments and Reclassifications2			IFRS
	Mar/31/2012									Dec/31/2011
Total Assets		896,842			(69,219	)		827,623			851,331			(33,195	)		818,136
Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial Assets and Derivatives		432,872			(12,475	)		420,397			412,648			(2,414	)		410,234
Loan Operations		347,369			908			348,277			345,483			781			346,264
(-) Allowance for Loan Losses3		(25,952	)		1,867			(24,085	)		(25,772	)		1,899			(23,873	)
Other Financial Assets4		87,502			(49,108	)		38,394			66,502			(26,248	)		40,254
Tax Assets5		32,128			(6,720	)		25,408			32,409			(6,321	)		26,088
Investments in non consolidated Companies, Fixed and Intangible Assets, Assets Held for Sale and Other Assets		22,923			(3,691	)		19,232			20,061			(892	)		19,169
Current Liabilities and Long Term Liabilities		822,454			(70,985	)		751,469			778,243			(35,443	)		742,800
Deposits		231,345			-			231,345			242,636			-			242,636
Deposits Received Under Securities Repurchase Agreements		212,668			(12,864	)		199,804			188,819			(3,406	)		185,413
Financial Liabilities Held for Trading, Derivatives,		154,015			1,088			155,103			153,941			926			154,867
Interbank and Institutional funding
Other Financial Liabilities4		91,954			(49,093	)		42,861			70,681			(26,562	)		44,119
Reserves for Insurance, Private Pension and Capitalization		77,830			-			77,830			73,754			(12	)		73,742
Provisions and Other Liabilities		42,828			(3,648	)		39,180			34,661			(46	)		34,615
Tax Liabilities5		11,814			(6,468	)		5,346			13,751			(6,343	)		7,408
Total Stockholders’ Equity		74,388			1,766			76,154			73,088			2,248			75,336
Minority Stockholders’ Equity		1,904			(716	)		1,188			1,741			(346	)		1,395
Controlling Stockholders’ Equity		72,484			2,482			74,966			71,347			2,594			73,941

1BRGAAP 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;

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

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

5 Difference in accounting, mainly 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
	Mar/31/12			1st Q/12			4th Q/11			1st Q/11
BRGAAP - Values Attributable to Controlling Stockholders		72,484			3,426			3,681			3,530
(a) Allowance for Loan Losses		1,867			(32	)		(97	)		271
(b) Recognition of total deferred tax assets		860			(142	)		(163	)		(185	)
(c) Adjustment to market value of shares and quotas		492			(6	)		2			-
(d) Acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A.		854			(9	)		(8	)		(9	)
(e) Conversion of subsidiaries and unconsolidated companies abroad		-			29			34			(47	)
(f) Effective interest rate		(688	)		36			319			(12	)
Other adjustments		86			(26	)		6			37
Income tax and social contribution on Net Income		(989	)		10			(123	)		(113	)
IFRS - Values Attributable to Controlling Stockholders		74,966			3,285			3,651			3,472
IFRS - Values Attributable to Minority Stockholders		1,188			194			236			156
IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders		76,154			3,479			3,887			3,628

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 its value (impairment). On BRGAAP, the expected loss model is used 6.

(b)  Recognition in the consolidated financial statements on BRGAAPof the tax credit related to the Social Contribution on Net Income at the rate of 15% (IAS12), fully incorporated in the opening balance sheet of 01/01/2010 under IFRS.

(c)  On IFRS (IAS39 and 32), stocks and quotas classified as permanents investments were measured at fair value and its gains and losses were recorded directly on Equity, with no impact on the income statement of the period.

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

(e)  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.

(f)  On the IFRS (IAS39), the assets and financial liabilities measured at amortized cost are recognized according to the methodology of effective interest rate, which appropriates the revenues and costs directly attributed to the acquisition, issue or disposal for the period of operation. In the second half of 2011, we improved the methodology for the recognition of expenses associated with the process of credit granting as well as with the realization period of revenues from registration fees. On the BRGAAP, the recognition of expenses and revenues from fees occurs at the time of contracting these operations.

6 For more details see our Complete Financial Statements for the first quarter of 2012.

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	1st Q/12
	BRGAAP		IFRS		Variation
Net Income – Attributable to Controlling Stockholders		3,426		3,285		(141	)
Exclusion of the Non-Recurring Events7		118		107		(11	)
Market Value Adjustment – BR		55		50		(5	)
Provision for Contingencies – Economic Plans		63		57		(6	)
Recurring Net Income – Attributable to Controlling Stockholders		3,544		3,392		(152	)

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%.

The tables in this report show the figures in millions. Variations and summations, however, are calculated in units.

São Paulo, May 3, 2012.

Alfredo Egydio Setubal

Investor Relations Officer

Itaú Unibanco Holding S.A.