Announcement to the Market

Disclosure of results for the fourth quarter and for 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. We emphasize that the main difference in the result is due to the portion of tax credit related to the Social Contribution on Net Income at the rate of 15% (IAS 12), which had already been fully incorporated in the opening balance sheet of 01/01/2010 under IFRS. In terms of equity, the main difference relates to the allowance for loan losses, that uses the concept of incurred loss in IFRS and of expected loss in BRGAAP.

The complete consolidated financial statements under IFRS for 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
	Dec 31, 2012									Dec 31, 2011
Total Assets		1,014,425			(57,271	)		957,154			851,331			(33,195	)		818,136
Cash and Cash Equivalents, Reserve Requirements, Interbank Deposits, Securities Under Repurchase Agreements, Financial		536,497			(20,862	)		515,635			412,648			(2,414	)		410,234
Assets and Derivatives 3
Loan Operations		366,285			699			366,984			345,483			781			346,264
(-) Allowance for Loan Losses 4		(27,745	)		2,032			(25,713	)		(25,772	)		1,899			(23,873	)
Other Financial Assets 5		75,852			(31,360	)		44,492			66,502			(26,248	)		40,254
Tax Assets 6		40,215			(7,803	)		32,412			32,409			(6,321	)		26,088
Investments in non consolidated Companies, Fixed and Intangible Assets, Assets Held for Sale and Other Assets		23,321			23			23,344			20,061			(892	)		19,169
Current Liabilities and Long Term Liabilities		939,302			(58,146	)		881,156			778,243			(35,443	)		742,800
Deposits		243,200			-			243,200			242,636			-			242,636
Deposits Received Under Securities Repurchase Agreements 3		288,818			(21,413	)		267,405			188,819			(3,406	)		185,413
Financial Liabilities Held for Trading, Derivatives, Interbank and Institutional funding		179,772			1,040			180,812			153,941			926			154,867
Other Financial Liabilities 5		81,213			(30,958	)		50,255			70,681			(26,562	)		44,119
Reserves for Insurance, Private Pension and Capitalization		93,210			-			93,210			73,754			(12	)		73,742
Provisions and Other Liabilities		39,307			(142	)		39,165			34,661			(46	)		34,615
Tax Liabilities 6		13,782			(6,673	)		7,109			13,751			(6,343	)		7,408
Total Stockholders’ Equity		75,123			875			75,998			73,088			2,248			75,336
Non-controlling interests		903			(807	)		96			1,741			(346	)		1,395
Controlling Stockholders’ Equity 7		74,220			1,682			75,902			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;

3 Resulted from the elimination of transactions between the parent company and exclusive funds (mainly PGBL and VGBL fund quotas), which are consolidated under IFRS;

4Implementation of the criteria for calculating the Allowance for Loan Losses as defined in IFRS model;

5Difference in accounting, mainly for Foreign Exchange Portfolio, which started to be considered as a net effect of Assets and Liabilities;

6 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.

7 Conciliation of Controlling Stockholders’ Equity is presented in the following table.

Itaú Unibanco Holding S.A.

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

Conciliation													R$million
Adjustments	Equity							Net Income
	Dec 31, 2012			4Q/12		3Q/12			4Q/11		2012			2011
BRGAAP - Values Attributable to Controlling Stockholders		74,220		3,492		3,372			3,681		13,594			14,621
(a) Allowance for Loan Losses		1,948		22		76			(97	)	43			(126	)
(b) Recognition of deferred tax assets		-		(525	)	(187	)		(163	)	(977	)		(628	)
(c) Adjustment to market value of shares and quotas		458		-		(1	)		2		(5	)		5
(d) Acquisition of interest in Porto Seguro Itaú Unibanco Participações S.A.		832		(6	)	(7	)		(8	)	(31	)		(34	)
(e) Conversion of subsidiaries and unconsolidated companies abroad		-		(73	)	26			34		(72	)		(131	)
(f) Effective interest rate		(495	)	69		58			319		229			95
Other adjustments		69		(27	)	36			6		(45	)		78
Income tax and social contribution on Net Income		(1,130	)	(33	)	(66	)		(123	)	(102	)		(43	)
IFRS - Values Attributable to Controlling Stockholders		75,902		2,919		3,309			3,651		12,634			13,837
IFRS - Values Attributable to Minority Stockholders		96		12		144			236		557			773
IFRS - Values Attributable to Controlling Stockholders and Minority Stockholders		75,998		2,931		3,453			3,887		13,191			14,610

Differences between IFRS and BRGAAP Financial Statements

(a)  On IFRS (IAS 39), loan losses allowances must be made when there is objective evidence that loan operations have suffered a reduction in their value (Incurred Loss). On BRGAAP, the expected loss model is used 8.

(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), which had already been fully incorporated in the opening balance sheet of 01/01/2010 under IFRS. The difference between the IFRS and BRGAAP financial statements was adjusted in the 4Q12. From the 1Q13, this difference will no longer exist.

(c)  On IFRS (IAS 39 and 32), stocks and quotas classified as permanent investments were measured at fair value and their 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 (IAS 21), exchange rate variations of subsidiaries and non consolidated companies abroad, where the functional currency (defined as the currency of the primary economic environment in which each entity operates) differs from the Real, are recorded directly on Equity with no impact on the income statement of the period.

(f)  On the IFRS (IAS 39), 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. On BRGAAP, the recognition of expenses and revenues from fees occurs at the time of contracting these operations.

8 For more details see our Complete Financial Statements for 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	4Q/12									2012
	BRGAAP			IFRS			Variation			BRGAAP			IFRS			Variation
Net Income - Attributable to Controlling Stockholders		3,492			2,919			(573	)		13,594			12,634			(960	)
Exclusion of the Non-Recurring Events9		10			361			351			449			759			310
Realization of Assets10		(837	)		(837	)		-			(837	)		(837	)		-
Increase in the Social Contribution Rate9		(351	)		-			351			(351	)		-			351
Provisions11		741			741			-			875			862			(13	)
Tax and Social Security Contributions		253			253			-			253			253			-
Civil Lawsuits		145			145			-			145			145			-
Economic Plans		194			194			-			328			315			(13	)
Labor Claims		105			105			-			105			105			-
Other		44			44			-			44			44			-
Total interest Sale of the Banco Português de Investimento		-			-			-			205			186			(19	)
Market Value Adjustment – BPI		-			-			-			100			91			(9	)
Allowance for loan losses11		229			229			-			229			229			-
Reward Program - Credit Cards12		185			185			-			185			185			-
Other		43			43			-			43			43			-
Recurring Net Income - Attributable to Controlling Stockholders		3,502			3,280			(222	)		14,043			13,393			(650	)

9 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 difference between the IFRS and BRGAAP financial statements was adjusted in the 4Q12. From the 1Q13, this difference will no longer exist.

10 This amount is mainly composed of the result from the sale of Itaú Unibanco’s interest in Serasa to Experian, as announced to the market on October 23, 2012.

11 The criteria were improved and determined the recognition of these provisions.

12 Reformulation of benefit.

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

São Paulo, March 4, 2013.

Alfredo Egydio Setubal

Investor Relations Officer

Itaú Unibanco Holding S.A.