ITAÚ UNIBANCO HOLDING S.A.

RESULTS FOR THE PERIOD FROM JANUARY TO SEPTEMBER 2010

We present below the main achievements of Itaú Unibanco Holding S.A. (Itaú Unibanco) in the period from January to September 2010.

1. Net income for the period from January to September 2010 amounted to R$ 9.4 billion, with annualized return of 23.3% on average equity. Recurring net income was R$ 9.6 billion, with annualized return of 23.8%. Consolidated stockholders’ equity totaled R$ 57.2 billion at the end of September 2010.

2. Itaú Unibanco paid or provided for taxes and contributions in the amount of R$ 9.4 billion in the period from January to September 2010. The Bank also withheld and passed on taxes, which were directly levied on financial operations, in the amount of R$ 5.7 billion.

3. Consolidated assets totaled R$ 686.2 billion at September 30. The loan portfolio, including endorsements and sureties, reached R$ 313.2 billion, an increase of 16.6% as compared to the balance at September 30, 2009. In Brazil, the balance of loans to individuals reached R$ 118.8 billion, with a growth of 15.9% as compared to the same period of 2009. The balance of the large company portfolio reached R$ 104.4 billion, whereas the very small, small and middle-market company portfolio reached R$ 76.4 billion, a growth of 30.0% as compared to the same period of 2009. In relation to the previously mentioned items, the real estate loan portfolio showed an outstanding performance, having reached R$ 12.0 billion, a growth of 52.7% as compared to the same period of 2009.

4. Free, raised and managed assets totaled R$ 941.9 billion, an increase of 13.1% as compared to September 30, 2009. The Basel ratio stood at 15.3% at the end of September 2010, based on economic-financial consolidated.

5. Itaú Unibanco’s preferred shares rose 12.7%, as compared to the quotation of September 30, 2009. The market value at Stock Exchanges of Itaú Unibanco, calculated considering the average quotation of preferred shares outstanding at the last trading session of the period, reached R$ 182.2 billion at the end of September. According to the company Bloomberg, Itaú Unibanco ranked tenth among banks in the world at September 30, 2010, having market value as parameter.

6. Itaú BBA took part in operations of debentures and promissory notes that totaled R$ 12.1 billion, and of securitization that totaled R$ 2.3 billion in the first nine months of 2010. In the Brazilian Financial and Capital Markets Association (ANBIMA) ranking, it occupied the first position regarding distribution of fixed income in September 2010, with a market share of 20.0%, and the second position in international issues, where it acted as joint bookrunner of offerings with total volume of US$ 11.6 billion. Noteworthy in the period was the offering of Brazilian sovereign bonds carried out by Itaú BBA, which became the first Brazilian bank to lead the funding for the National Treasury through Global 2041, with a total volume of US$ 500 million. In capital markets, in the first nine months it coordinated ten public offerings that totaled R$ 130.8 billion, consolidating its leadership position among the market leaders. In September 2010, it acted as coordinator in 61% of transactions, which accounted for 91% of the financial volume issued in this year, and it also provided financial advisory services to 26 merger and acquisition operations, closing the period in the second position of Thomson ranking in number of transactions.

7. Itaú Unibanco completed on October 24, 2010, before two years have passed after the merger, the integration of the whole base of points of service throughout Brazil. In total, 998 branches and 245 banking service stations of Unibanco were fully redesigned and integrated to 3,900 points of Itaú, thus creating a network of approximately five thousand units in the whole country, all of which with the Itaú brand.

8. Itaú Unibanco employed approximately 107 thousand people at the end of September, including approximately 6 thousand employees in foreign units. The employee’s fixed compensation plus charges and benefits totaled R$ 8.8 billion for the period from January to September 2010. Welfare benefits granted to employees and their dependants totaled R$ 1.3 billion. In addition, approximately R$ 147 million were invested in education, training and development programs.

9. For the eleventh consecutive year, Itaú Unibanco is the only Latin American financial institution in the Dow Jones Sustainability Index (DJSI) portfolio since it was created. In the 2010/2011 review, it achieved top score (100%) in the “Human Capital Development” criterion, and had a score above the average of the sector in all of the reviewed items.

10. In the period, social and cultural investments of Itaú Unibanco reached R$ 137 million, of which we highlight the investments in education and culture.

The complete financial statements and the Management’s Discussion & Analysis Report of Itaú Unibanco, which present further details on the results for the period, are available on the Itaú Unibanco website: www.itau-unibanco.com.br/ri.

São Paulo, November 1, 2010.

Pedro Moreira Salles

Chairman of the Board of Directors

MANAGEMENT REPORT – January to September 2010

To our Stockholders:

We present the Management Report and financial statements of Itaú Unibanco Holding S.A. (Itaú Unibanco) and its subsidiaries for the period from January to September 2010, in accordance with the regulations established by the Brazilian Corporate Law, the National Monetary Council (CMN), the Central Bank of Brazil (BACEN), the Brazilian Securities and Exchange Commission (CVM), the Superintendency of Private Insurance (SUSEP), and the National Council of Private Insurance (CNSP).

Highlights

Two years have not yet elapsed since the biggest merger in the Brazilian financial system, and Itaú Unibanco completed on October 24, 2010 the integration of all of its points of service throughout Brazil. In total, 998 branches and 245 banking service stations of Unibanco were fully redesigned and integrated into 3,900 points of Itaú, thus creating a network of approximately five thousand units in the whole country, all of which with the Itaú brand.

Itaú Unibanco is one of the 318 companies from 27 countries that make up the Dow Jones Sustainability Index (DJSI), the main business sustainability index in the world. It is the only financial institution of Latin America included in the portfolio for 11 consecutive years, i.e., since its creation. In the 2010/2011 review, Itaú Unibanco achieved top score (100%) in the “Human Capital Development” criterion, and a score above the average of the sector in all of the assessed items. Redecard S.A., a company controlled by Itaú Unibanco Holding S.A., and Itaúsa – Investimentos Itaú S.A. are also in the index.

Itaú Unibanco was authorized by the Swiss government to open its first unit in that country. Banco Itaú Suisse, located in Zurich, provides services to clients that seize opportunities for global investments. They count on the expertise and structure of the biggest private bank of the Southern Hemisphere and partnerships with top-level local financial institutions.

A business and cooperation agreement was signed with China Unionpay Co. Ltd. (CUP), to enable the clients of he Chinese bank to carry out withdrawals in over 30 thousand ATMs of Itaú Unibanco. Headquartered in Shanghai, CUP has over 400 associate institutions and is present in over 90 countries. Redecard entered into an agreement in order to enable the merchants of its network in the country to accept the 2.2 billion debit and credit cards operated by CUP.

Main Results

Following are the main results of Itaú Unibanco for the period from January to September 2010, and the complete financial statements and the Management’s Discussion & Analysis Report of Itaú Unibanco, which present further details on the results for the period, are available on the Itaú Unibanco website (www.itau-unibanco.com.br/ri).

	Jan to Set/10			Jan to Set/09			Change (%)			3rd Q/10			2nd Q/10			Change (%)
Income – R$ billion (1)
Gross income from financial operations		33.0			35.2			-6.3	%		3.2			3.0			6.8	%
Expenses for allowance for loan losses		(12.0	)		(12.4	)		-3.5	%		4.1			4.0			1.2	%
Income from recovery of credits written off as loss		2.9			1.4			104.6	%		1.8			0.8			114.3	%
Income from services and income from insurance, pension plan and capitalization		14.9			12.7			17.3	%		5.1			5.0			2.3	%
Personnel, administrative and other operating expenses		(22.2	)		(20.4	)		8.7	%		(8.0	)		(7.5	)		5.4	%
Income tax and social contribution		(4.0	)		(5.8	)					(1.9	)		(1.0	)
Recurring net income		9.6			7.7			25.4	%		3.2			3.3			-4.2	%
Net income		9.4			6.9			37.6	%		3.0			3.2			-4.1	%
Results per share – R$
Recurring net income (2)		2.12			1.70			24.8	%		0.70			0.73			-4.3	%
Net income (2)		2.08			1.52			37.1	%		0.67			0.70			-4.2	%
Book value (2)		12.60			10.80			16.7	%		12.60			12.15			3.8	%
Dividends and interest on capital (net of taxes)		0.64			0.53			19.2	%		0.64			0.42			50.0	%
Price of preferred share (PN) (3)		40.13			35.60			12.7	%		40.13			33.00			21.6	%
Market capitalization – R$ billion (4)		182.2			161.0			13.1	%		182.2			149.6			21.8	%
Balance Sheet - R$ billion
Total assets		686.2			612.4			12.1	%		686.2			651.6			5.3	%
Total loans (including endorsements and sureties)		313.2			268.7			16.6	%		313.2			296.2			5.7	%
Free, raised and managed own assets		941.9			832.6			13.1	%		941.9			904.2			4.2	%
Subordinated debt		33.0			22.8			45.0	%		33.0			28.3			16.9	%
Stockholders’ equity		57.2			48.9			17.1	%		57.2			55.1			3.9	%
Referential equity (economic-financial consolidated)		75.1			68.6			9.4	%		75.1			71.5			4.9	%
Financial ratios (%)
Recurring return on average equity		23.8	%		22.2	%					22.5	%		24.4	%
Return on average equity		23.3	%		19.8	%					21.6	%		23.4	%
Return on average assets		1.9	%		1.5	%					1.8	%		2.0	%
Efficiency ratio (5)		46.9	%		45.5	%					49.2	%		47.3	%
Basel ratio (financial system consolidated)		15.3	%		16.3	%					15.3	%		15.7	%
Fixed assets ratio (financial system consolidated)		37.8	%		31.7	%					37.8	%		39.0	%

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

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

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

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

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

BUSINESS PERFORMANCE

We present below the main achievements of Itaú Unibanco in the period from January to September 2010.

Net income for the first nine months of the year reached R$ 9.4 billion, with annualized return of 23.3% on average equity (19.8% for the same period of 2009). Recurring net income was R$ 9.6 billion, with annualized return of 23.8%. Itaú Unibanco paid or provided for its own taxes and contributions in the amount of R$ 9.4 billion for the same period of 2010. The Bank also withheld and passed on taxes in the amount of R$ 5.7 billion, which were directly levied on financial operations.

Total consolidated assets reached R$ 686.2 billion at September 30, 2010.

Consolidated stockholders’ equity totaled R$ 57.2 billion at the end of September 2010. The loan portfolio, including endorsements and sureties, reached R$ 313.2 billion, an increase of 16.6% as compared to the balance at September 30, 2009. In Brazil, the balance of loans to individuals totaled R$ 118.8 billion. In the large company segment, the portfolio balance totaled R$ 104.4 billion, and the very small, small and middle-market company portfolio reached R$ 76.4 billion, whereas the real estate loan portfolio reached R$ 12.0 billion at September 30, 2010, with a 52.7% increase in comparison with September 30, 2009.

Free, raised and managed assets totaled R$ 941.9 billion, an increase of 13.1% as compared to September 30, 2009.

Basel ratio stood at 15.3% at the end of September 2010, based on economic-financial consolidated.

Itaú Unibanco’s preferred shares rose 21.6% as compared to the quotation of June 30, 2010, and 12.7% as compared to the quotation of September 30, 2009. The market value at Stock Exchanges of Itaú Unibanco, calculated considering the average quotation of preferred shares outstanding in the last trading session of the period, reached R$ 182.2 billion at the end of September. According to the company Bloomberg, Itaú Unibanco ranked tenth among banks in the world at September 30, 2010, having market value as parameter.

In the credit card market, Itaú Unibanco, the leader in the consumer credit segment in Brazil, by means of Itaucard, Unicard and Hipercard, offers a wide range of products to 40 million account-holders and non-account holders clients, originated in proprietary channels and through partnerships with companies that have outstanding performance in the markets they are engaged. From January through September, the transacted amount reached R$ 92.2 billion, a 26.9% increase in relation to the same period of the previous year.

Insurance, pension plan and capitalization operations reached R$ 10.8 billion in the period from January to September 2010 in premium income. Technical provisions for these segments totaled R$ 58.5 billion at September 30, 2010.

The vehicle segment of Itaú Unibanco remains by far in the leading position in this market and posted a good performance in the period from January to September 2010, reaching a portfolio balance of R$ 57.3 billion, 13.2% higher than the same period of the prior year.

In the investment banking area, Itaú BBA took part in operations of debentures and promissory notes that totaled R$ 12.1 billion, and of securitization that totaled R$ 2.3 billion in the first nine months of 2010. In the Brazilian Financial and Capital Markets Association (ANBIMA) ranking of fixed-income distribution, Itaú BBA was the first position in September 2010, with a market share of 20.0%. In the fixed-income international issues, Itaú BBA acted as joint bookrunner of offerings, with a total volume of US$ 11.6 billion, reaching the second position in this ranking until September 2010. Noteworthy in the period was the offering of Brazilian sovereign bonds carried out by Itaú BBA, which became the first Brazilian bank to lead the funding for the National Treasury through Global 2041, with a total volume of US$ 500 million. In capital markets, Itaú BBA coordinated in the first nine months of 2010 ten public offerings that totaled R$ 130.8 billion, consolidating its leadership position among the market leaders. In September 2010, Itaú BBA acted as global coordinator in the offering of Petrobras shares, the biggest public offering of shares in the world, which total funding reached R$ 120 billion. With the addition of this offering, Itaú BBA acted as coordinator in 61% of transactions, which represented 91% of the financial volume issued in this year. In this same period, Itaú BBA also provided financial advisory services to 26 merger and acquisition operations. With the completion of these operations, Itaú BBA closed the period occupying the second position in the Thomson ranking in number of transactions.

People

Training programs received investments of over R$ 147 million in the period from January to September 2010, an increase of about 85% in relation to the previous period, with the completion of almost 500 thousand courses by collaborators in attendance and computer-based training programs.

Approximately 14,500 new collaborators were hired until September 2010 and about 5,500 collaborators were reallocated through internal recruitment. As formulated in the Policy on Diversity, 242 people with special needs were hired. In the following months, approximately 540 vacancies will be filled.

Sustainability

Launched on October 18, the new sustainability website introduced innovations in layout and contents. Its proposal is to operate as a new platform of relationship with the organization’s audiences, with a more interactive basis. Most of its contents focus on the theme of sustainability on an educative approach, highlighting the following sections: Virtual Library, Online Courses, and Sustainability in Practice. By reproducing a virtual city in the homepage, the new website takes sustainability to the daily life of people. The provision of quality service, creation of value and transparency are the assumptions of the new website (www.itau.com.br/sustentabilidade).

Social and cultural investments

In the period from January to September 2010, Itaú Unibanco’s social and cultural investments reached the approximate amount of R$ 137 million.

The Olimpíada de Língua Portuguesa Escrevendo o Futuro (Portuguese Language Olympiad – writing the future), which phase of text creation by students of the 60 thousand enrolled schools was carried out from March to July, is going through the phase of selecting students and teachers who will participate in practical workshops in four cities, according to the literary genre in which they are enrolled.

Instituto Unibanco promoted the solidarity competition “SuperAção na Escola” (super action at school), which encourages improvements through the mobilization of the entire community, and gathering approximately 21 thousand people in 20 schools in the city of Belo Horizonte, in August.

Itaú Cultural was visited by over 70,000 people in its headquarters. The Visual Arts, Art & Technology, Theater and Literature encyclopedias recorded approximately 1.5 million hits. A total of 65 events were held, of which we highlight the Emoção Art.ficial 5.0 (Art.ficial emotion 5.0) exhibition, visited by 57,832 people. Until September, 5,400 cultural products were distributed, with emphasis on books, DVDs and arts catalogs. In that same month Itaú Cultural signed a contract with six new TV partners, totaling 77 partners in the period from January to September 2010.

Awards and Recognition

Major awards and recognitions granted to Itaú Unibanco Holding S.A.:

· Best Bank in Brazil for the 12th time, and Best Bank in Latin America, according to the Awards for Excellence of Euromoney magazine. Itaú BBA was acknowledged as the Best Bank in Cash Management in Brazil.

· First bank of Brazil in the Top 1000 World Banks ranking, according to The Banker magazine.

· Received the IR Magazine Awards Brazil 2010 in two categories: Grand Prix of the Best Investors Relations Program of Large Cap Companies and Best Performance in IR by a CEO or CFO with Roberto Setubal.

· First place in the banking sector and also the best in Financial Sustainability management in the sector. The award is granted by Isto É Dinheiro magazine in partnership with Trevisan consulting company.

· First in the list of the 50 largest banks in Brazil based on stockholders’ equity in the Melhores e Maiores (Best and Largest) of Exame magazine. Itaúsa ranked first in the list of the 200 major business groups in the country.

· The team of analysts of Itaú Corretora was elected the best in Brazil by the Institutional Investor magazine. Itaú Corretora had 14 analysts in the ranking, with outstanding performance in all of the 13 sectors reviewed.

· For the second time, Itaú Unibanco was considered one of the 100 Great Place to Work in Brazil, according to the survey conducted by the Great Place to Work Institute and Época Magazine. The same institute ranked Itaú Unibanco among the 50 best companies for executives to work.

· For the fourth consecutive year, Itaú Unibanco led the ranking of the most transparent companies of Ibovespa, prepared by Management & Excellence (M&E).

· Elected one of the leading companies in policies on climate of the Prêmio Época Mudanças Climáticas 2010 (climate change Época award), which acknowledged the companies working harder to control and reduce greenhouse gas emissions.

· Acknowledged for the second time as the most sustainable financial institution of all emerging markets and Latin America, according to the British newspaper Financial Times and the International Finance Corporation (IFC), the World Bank’s financial division for the private sector.

Independent Auditors – CVM Instruction No. 381

Procedures adopted by the Company

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

During the period from January to September 2010, the independent auditors and related parties did not provide non-audit related services in excess of 5% of total external audit fees.

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

· February 5, 2010 – Service agreement for the limited assurance of the data of the inventory of greenhouse gas emissions – Itaú Unibanco Banco Múltiplo S.A. – Brazil;

· March 3, 2010– Licenses for using an electronic library of international accounting standards (Comperio) – Itaú Unibanco Holding S.A. – Brazil;

· June 2, 2010 – Participation in the “Mercado de Seguros” (insurance market) seminar: new accounting and actuarial dynamics of the market in 2010 – Itaú Unibanco Holding S.A. – Brazil;

· June 23, 2010 – License for using an electronic library of international accounting standards (Comperio) – Banco Itaú Europa International – Miami;

· July 12, 2010 – Service agreement related to tax advisory regarding the US legislation and review of the Schedule O Form - Itaú Unibanco Holding S.A – Brazil;

· August 6, 2010 – Service agreement for reviewing aspects related to the Business Continuity Program.– Banco Itaú BBA S.A. – Brazil;

· August 11, 2010 – Service agreement related to the examination of the differences between the performance of activities as subsidiary and as a Bank – Banco Itaú Europa International – Miami;

· August 17, 2010 – Participation in the 10th Annual IFRS Presentation – Advanced Level – Itaú Unibanco S.A. – Brazil.

Summary of the Independent Auditors’ justification - PricewaterhouseCoopers

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

Circular No. 3,068/01 of BACEN

Itaú Unibanco hereby represents to have the financial capacity and the intention to hold to maturity securities classified under the line “held-to-maturity securities” in the balance sheet, in the amount of R$ 3.1 billion, corresponding to only 2.2% of total securities held.

ACKNOWLEDGEMENTS

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

  (Approved at the Board of Directors' Meeting of November 1, 2010).

ITAÚ UNIBANCO HOLDING S.A.
BOARD OF DIRECTORS	EXECUTIVE BOARD
Chairman	Chief Executive Officer
PEDRO MOREIRA SALLES	ROBERTO EGYDIO SETUBAL
Vice-Chairmen	Executive Vice-Presidents
ALFREDO EGYDIO ARRUDA VILLELA FILHO	ALFREDO EGYDIO SETUBAL (*)
ROBERTO EGYDIO SETUBAL	CANDIDO BOTELHO BRACHER
Members	Executive Directors
ALCIDES LOPES TÁPIAS	CAIO IBRAHIM DAVID
ALFREDO EGYDIO SETUBAL	CLAUDIA POLITANSKI
CANDIDO BOTELHO BRACHER	MARCOS DE BARROS LISBOA
FERNANDO ROBERTO MOREIRA SALLES	RICARDO BALDIN
FRANCISCO EDUARDO DE ALMEIDA PINTO	SÉRGIO RIBEIRO DA COSTA WERLANG
GUSTAVO JORGE LABOISSIÈRE LOYOLA
HENRI PENCHAS
ISRAEL VAINBOIM
PEDRO LUIZ BODIN DE MORAES	Directors
RICARDO VILLELA MARINO	JACKSON RICARDO GOMES
	JOSÉ EDUARDO LIMA DE PAULA ARAUJO
	MARCO ANTONIO ANTUNES
AUDIT COMMITTEE	WAGNER ROBERTO PUGLIESE
President
GUSTAVO JORGE LABOISSIÈRE LOYOLA
Members
ALCIDES LOPES TÁPIAS	(*) Investor Relations Director
ALKIMAR RIBEIRO MOURA
EDUARDO AUGUSTO DE ALMEIDA GUIMARÃES
GUY ALMEIDA ANDRADE
FISCAL COUNCIL
President
IRAN SIQUEIRA LIMA
Members
ALBERTO SOZIN FURUGUEM	Accountant
ARTEMIO BERTHOLINI	ADRIANA CRISTINA GARCIA TRAPP
	CRC - 1SP213412/O-0

ITAÚ UNIBANCO S.A.
Chief Executive Officer and General Manager	Directors (Continued)
ROBERTO EGYDIO SETUBAL	GILBERTO TRAZZI CANTERAS
	HENRIQUE RUTHER
Executive Vice-Presidents	JACKSON RICARDO GOMES
ALEXANDRE DE BARROS	JASON PETER CRAUFORD
ALFREDO EGYDIO SETUBAL	JEAN MARTIN SIGRIST JÚNIOR
GERALDO JOSÉ CARBONE	JOÃO ANTONIO DANTAS BEZERRA LEITE
JOSÉ CASTRO ARAÚJO RUDGE	JOÃO LUIZ DE MEDEIROS
MÁRCIO DE ANDRADE SCHETTINI	JORGE LUIZ VIEGAS RAMALHO
MARCO AMBROGIO CRESPI BONOMI	LAVÍNIA MORAES DE ALMEIDA NOGUEIRA JUNQUEIRA
MARCOS DE BARROS LISBOA	LEILA CRISTIANE BARBOZA BRAGA DE MELO
RICARDO VILLELA MARINO	LINDA AGARINAKAMURA
RUY VILLELA MORAES ABREU	LUÍS ANTONIO RODRIGUES
SÉRGIO RIBEIRO DA COSTA WERLANG	LUÍS EDUARDO GROSS SIQUEIRA CUNHA
	LUIS TADEU MANTOVANI SASSI
Executive Directors	LUIZ ANTONIO FERNANDES CALDAS MORONE
CAIO IBRAHIM DAVID	LUIZ ANTONIO NOGUEIRA DE FRANÇA
CELSO SCARAMUZZA	LUIZ EDUARDO LOUREIRO VELOSO
CLAUDIA POLITANSKI	LUIZ FERNANDO OLIVEIRA BARRICHELO
DEMOSTHENES MADUREIRA DE PINHO NETO	LUIZ MARCELO ALVES DE MORAES
FERNANDO MARSELLA CHACON RUIZ	MANOEL ANTONIO GRANADO
IVO LUIZ DE SÁ FREIRE VIEITAS JUNIOR	MARCELO BOOCK
JOÃO JACÓ HAZARABEDIAN	MARCELO LUIS ORTICELLI
JOSÉ ROBERTO HAYM	MARCO ANTONIO ANTUNES
LUÍS OTAVIO MATIAS	MARCO ANTONIO SUDANO
OSVALDO DO NASCIMENTO	MARCOS ANTÔNIO VAZ DE MAGALHÃES
RICARDO BALDIN	MARCOS AUGUSTO CAETANO DA SILVA FILHO
SANDRA NUNES DA CUNHA BOTEGUIM	MARCOS BRAGA DAINESI
	MARCOS SILVA MASSUKADO
Directors	MARCOS VANDERLEI BELINI FERREIRA
ADRIANO BRITO DA COSTA LIMA	MARIO LUIZ AMABILE
ANDRÉ SAPOZNIK	MAURÍCIO FERREIRA DE SOUZA
ANDRÉA MATTEUCCI PINOTTI CORDEIRO	MAURO MORELLI
ANTONIO CARLOS AZZI JÚNIOR	NATALÍSIO DE ALMEIDA JÚNIOR
ANTONIO CARLOS RICHECKI RIBEIRO	OLIVIO MORI JÚNIOR
ANTONIO SIVALDI ROBERTI FILHO	OSMAR MARCHINI
ARNALDO PEREIRA PINTO	OSVALDO JOSÉ DAL FABBRO
AURÉLIO JOSÉ DA SILVA PORTELLA	PAULO EIKIEVICIUS CORCHAKI
CARLOS AUGUSTO DE OLIVEIRA	PAULO MEIRELLES DE OLIVEIRA SANTOS
CARLOS EDUARDO DE CASTRO	PEDRO PAULO DE ALMEIDA CARNEIRO CUNHA
CARLOS EDUARDO DE SOUZA LARA	PLÍNIO CARDOSO DA COSTA PATRÃO
CARLOS EDUARDO MACCARIELLO	RENATA HELENA DE OLIVEIRA TUBINI
CARLOS EDUARDO MONICO	RENÊ MARCELO GONÇALVES
CARLOS HENRIQUE DONEGÁ AIDAR	RICARDO LIMA SOARES
CARLOS HENRIQUE ZANVETTOR	RICARDO ORLANDO
CECÍLIA MARIA ARELLANO MISZPUTEN	RICARDO RIBEIRO MANDACARU GUERRA
CESAR PADOVAN	RICARDO TERENZI NEUENSCHWANDER
CÍCERO MARCUS DE ARAÚJO	ROBERTO LAMY
CLÁUDIO CESAR SANCHES	ROBERTO MASSARU NISHIKAWA
CLAUDIO JOSÉ COUTINHO ARROMATTE	ROGERIO CARVALHO BRAGA
COSMO FALCO	ROGÉRIO PAULO CALDERÓN PERES
CRISTIANE MAGALHÃES TEIXEIRA PORTELLA	ROMILDO GONÇALVES VALENTE
CRISTINA CESTARI SPADA	ROONEY SILVA
DANIEL LUIZ GLEIZER	SERGIO GUILLINET FAJERMAN
EDUARDO ALMEIDA PRADO	SERGIO SOUZA FERNANDES JÚNIOR
EDUARDO HIROYUKI MIYAKI	VILMAR LIMA CARREIRO
ERNESTO ANTUNES DE CARVALHO
FERNANDO DELLA TORRE CHAGAS
FERNANDO JOSÉ COSTA TELES

BANCO ITAÚ BBA S.A.
BOARD OF DIRECTORS	Directors
	ADRIANO LIMA BORGES
Chairman	ALBERTO ZOFFMANN DO ESPÍRITO SANTO
ROBERTO EGYDIO SETUBAL	ALEXANDRE ENRICO SILVA FIGLIOLINO
	ALMIR VIGNOTO
Vice-Chairmen	ÁLVARO DE ALVARENGA FREIRE PIMENTEL
FERNÃO CARLOS BOTELHO BRACHER	ANDRÉ FERRARI
PEDRO MOREIRA SALLES	ANDRÉ LUIZ HELMEISTER
	ANTONIO JOSÉ CALHEIROS RIBEIRO FERREIRA
Members	ANTONIO SANCHEZ JUNIOR
ALFREDO EGYDIO SETUBAL	EDUARDO CARDOSO ARMONIA
ANTONIO CARLOS BARBOSA DE OLIVEIRA	EDUARDO CORSETTI
CANDIDO BOTELHO BRACHER	EMERSON SAVI JUNQUEIRA
EDUARDO MAZZILLI DE VASSIMON	FABIO MASSASHI OKUMURA
HENRI PENCHAS	GILBERTO FRUSSA
JOÃO DIONÍSIO FILGUEIRA BARRETO AMOÊDO	GUILHERME DE ALENCAR AMADO
SÉRGIO RIBEIRO DA COSTA WERLANG	GUSTAVO HENRIQUE PENHA TAVARES
	HENRIQUE RUTHER
EXECUTIVE BOARD	ILAN GOLDFAJN
Chief Executive Officer	JOÃO CARLOS DE GÊNOVA
CANDIDO BOTELHO BRACHER	JOÃO MARCOS PEQUENO DE BIASE
	JORGE BEDRAN JETTAR
Managing Vice-Presidents	JOSÉ AUGUSTO DURAND
ALBERTO FERNANDES	JOSÉ IRINEU NUNES BRAGA
DANIEL LUIZ GLEIZER	LILIAN SALA PULZATTO KIEFER
JEAN-MARC ROBERT NOGUEIRA BAPTISTA ETLIN	LUÍS ALBERTO PIMENTA GARCIA
RODOLFO HENRIQUE FISCHER	LUIZ MARCELO ALVES DE MORAES
	MARCELO MAZIERO
Executive Directors	MARCO ANTONIO SUDANO
ALEXANDRE JADALLAH AOUDE	MARCOS AUGUSTO CAETANO DA SILVA FILHO
ANDRÉ EMILIO KOK NETO	MARIO ANTONIO BERTONCINI
ANDRÉ LUÍS TEIXEIRA RODRIGUES	MÁRIO LÚCIO GURGEL PIRES
ELAINE CRISTINA ZANATTA RODRIGUES VASQUINHO	MÁRIO LUÍS BRUGNETTI
FERNANDO FONTES IUNES	PASCHOAL PIPOLO BAPTISTA
MILTON MALUHY FILHO	PAULO DE PAULA ABREU
NICOLAU FERREIRA CHACUR	PAULO ROBERTO SCHIAVON DE ANDRADE
	PEDRO REZENDE MARINHO NUNES
	RODRIGO PASTOR FACEIRO LIMA
BANCO ITAUCRED FINANCIAMENTOS S.A.	ITAÚ  SEGUROS S.A.
Chief Executive Officer	Chief Executive Officer
MARCO AMBROGIO CRESPI BONOMI	ROBERTO EGYDIO SETUBAL
Executive Vice-President	Superintendent Director
MÁRCIO DE ANDRADE SCHETTINI	JOSÉ CASTRO ARAÚJO RUDGE
Directors	Executive Directors
ADRIENNE PATRICE GUEDES DAIBERT	ANDRÉ HORTA RUTOWITSCH
CARLOS EDUARDO DE SOUZA LARA (*)	ANTONIO EDUARDO MÁRQUEZ DE FIGUEIREDO TRINDADE
CARLOS HENRIQUE ZANVETTOR
CLÁUDIO JOSÉ COUTINHO ARROMATTE
EVANIR COUTINHO USSIER	Managing Directors
FÁBIO MASSASHI OKUMURA	LUIZ FERNANDO BUTORI REIS SANTOS
FERNANDO JOSÉ COSTA TELES	MARCO ANTONIO ANTUNES
FLÁVIO KITAHARA SOUSA	MARCOS DE BARROS LISBOA
JACKSON RICARDO GOMES	NORBERTO GIL FERREIRA CAMARGO
JASON PETER CRAUFORD
LUÍS FERNANDO STAUB
LUÍS OTÁVIO MATIAS
LUIZ OTAVIO PINHO DO AMARAL
MARCO ANTONIO ANTUNES
MARCOS VANDERLEI BELINI FERREIRA
ROBERTO LAMY

(*) Elected at the ESM of September 30, 2010. Awaiting approval from BACEN.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

ASSETS	09/30/2010			09/30/2009
CURRENT ASSETS		502,876,792			460,563,720
CASH AND CASH EQUIVALENTS		11,063,416			10,325,257
INTERBANK INVESTMENTS (Notes 4b and 6)		111,816,439			133,856,473
Money market		95,757,805			117,443,167
Money market – Assets Guaranteeing Technical Provisions – SUSEP (Note 11b)		3,397,239			666,155
Interbank deposits		12,661,395			15,747,151
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4c, 4d and 7)		110,184,583			96,521,784
Own portfolio		32,120,828			29,792,900
Subject to repurchase commitments		10,578,242			6,516,093
Pledged in guarantee		8,121,431			8,097,453
Deposited with the Central Bank		2,254,705			5,271,926
Derivative financial instruments		7,443,791			6,580,080
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas (Note 11b)		43,621,488			36,403,697
Assets guaranteeing technical provisions – other securities (Note 11b)		6,044,098			3,859,635
INTERBANK ACCOUNTS		65,607,849			16,955,733
Pending settlement		3,439,138			3,413,787
Central Bank deposits		62,090,097			13,383,914
National Housing System (SFH)		8,775			70,260
Correspondents		69,839			82,505
Interbank onlending		-			5,267
INTERBRANCH ACCOUNTS		73,019			50,926
LOAN, LEASE AND OTHER CREDIT OPERATIONS (Note 8)		150,494,689			137,121,238
Operations with credit granting characteristics (Note 4e)		163,803,876			151,641,187
(Allowance for loan losses) (Note 4f)		(13,309,187	)		(14,519,949	)
OTHER RECEIVABLES		51,114,342			62,655,037
Foreign exchange portfolio (Note 9)		20,183,399			33,368,298
Income receivable		938,156			651,284
Transactions with credit card issuers (Note 4e)		11,824,070			7,918,689
Receivables from insurance and reinsurance operations (Notes 4nl and 11b)		3,775,196			3,317,136
Negotiation and intermediation of securities		2,549,953			2,447,821
Sundry (Note 13a)		11,843,568			14,951,809
OTHER ASSETS (Note 4g)		2,522,455			3,077,272
Assets held for sale		196,132			407,275
(Valuation allowance)		(74,294	)		(104,852	)
Unearned premiums of reinsurance (Note 4nl)		563,900			645,531
Prepaid expenses (Note 13b)		1,836,717			2,129,318
LONG-TERM RECEIVABLES		173,096,297			141,876,364
INTERBANK INVESTMENTS (Notes 4b and 6)		666,968			4,107,734
Money market		40,170			1,101,257
Money market – Assets Guaranteeing Technical Provisions – SUSEP (Note 11b)		136,050			2,156,948
Interbank deposits		490,748			849,529
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4c, 4d and 7)		31,694,235			26,054,528
Own portfolio		21,181,454			11,373,391
Subject to repurchase commitments		3,955,759			2,210,081
Pledged in guarantee		474,861			1,959,772
Deposited with the Central Bank		86,793			4,197,841
Derivative financial instruments		3,456,844			1,904,502
Assets guaranteeing technical provisions – other securities (Note 11b)		2,538,524			4,408,941
INTERBANK ACCOUNTS - National Housing System (SFH)		561,839			474,568
LOAN, LEASE AND OTHER CREDIT OPERATIONS (Note 8)		105,256,300			75,909,821
Operations with credit granting characteristics (Note 4e)		115,230,940			85,458,145
(Allowance for loan losses) (Note 4f)		(9,974,640	)		(9,548,324	)
OTHER RECEIVABLES		33,927,377			33,782,734
Foreign exchange portfolio (Note 9)		387,150			2,354,347
Sundry (Note 13a)		33,540,227			31,428,387
OTHER ASSETS – Prepaid expenses (Notes 4g and 13b)		989,578			1,546,979
PERMANENT ASSETS		10,275,355			9,958,850
INVESTMENTS (Notes 4h and 15a II)		2,226,272			2,283,674
Investments in affiliates		1,084,678			1,364,672
Other investments		1,320,280			1,091,652
(Allowance for loan losses)		(178,686	)		(172,650	)
FIXED ASSETS (Notes 4i and 15b)		4,697,805			4,072,414
Real estate in use		4,451,695			4,373,680
Other fixed assets		6,830,232			6,535,196
(Accumulated depreciation)		(6,584,122	)		(6,836,462	)
OPERATING LEASE ASSETS (Note 4j)		4,241			15,231
Leased assets		18,553			32,794
(Accumulated depreciation)		(14,312	)		(17,563	)
GOODWILL (Notes 4k and 15b)		74,467			-
INTANGIBLE ASSETS (Notes 4l and 15b)		3,272,570			3,587,531
Acquisition of rights to credit payroll		2,459,345			2,588,114
Other intangible assets		2,691,118			2,291,588
(Accumulated amortization)		(1,877,893	)		(1,292,171	)
TOTAL ASSETS		686,248,444			612,398,934

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

LIABILITIES	09/30/2010			09/30/2009
CURRENT LIABILITIES		355,045,699			329,393,311
DEPOSITS (Notes 4b and 10b)		128,965,187			114,758,316
Demand deposits		28,055,643			22,707,717
Savings deposits		54,874,272			44,146,423
Interbank deposits		1,202,209			2,017,954
Time deposits		43,836,288			44,851,975
Other deposits		996,775			1,034,247
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS (Notes 4b and 10c)		87,383,466			86,178,324
Own portfolio		47,160,396			32,371,661
Third-party portfolio		39,331,135			53,635,480
Free portfolio		891,935			171,183
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES (Notes 4b and 10d)		15,325,610			10,970,048
Real estate, mortgage, credit and similar notes		10,421,550			8,298,962
Debentures		1,522,670			156,775
Foreign borrowings through securities		3,381,390			2,514,311
INTERBANK ACCOUNTS		4,459,842			4,049,463
Pending settlement		3,059,156			2,991,610
Correspondents		1,400,686			1,057,853
INTERBRANCH ACCOUNTS		3,821,153			2,999,373
Third-party funds in transit		3,766,515			2,848,971
Internal transfer of funds		54,638			150,402
BORROWINGS AND ONLENDING (Notes 4b and 10e)		18,474,040			14,465,005
Borrowings		11,565,391			8,492,236
Onlending		6,908,649			5,972,769
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 7h)		6,013,572			5,562,134
TECHNICAL PROVISIONS FOR INSURANCE, PENSION PLAN AND CAPITALIZATION (Notes 4n II and 11a)		10,247,038			8,803,153
OTHER LIABILITIES		80,355,791			81,607,495
Collection and payment of taxes and contributions		3,706,816			3,377,497
Foreign exchange portfolio (Note 9)		20,632,545			34,376,024
Social and statutory (Note 16b II)		3,199,582			2,639,059
Tax and social security contributions (Notes 4o, 4p and 14c)		8,695,368			6,693,219
Negotiation and intermediation of securities		3,048,026			1,569,977
Credit card operations (Note 4e)		29,237,982			21,045,977
Subordinated debt (Note 10f)		963,023			1,174,634
Sundry (Note 13c)		10,872,449			10,731,108
LONG-TERM LIABILITIES		270,082,941			230,469,394
DEPOSITS (Notes 4b and 10b)		65,951,463			74,331,076
Interbank deposits		90,515			213,737
Time deposits		65,860,948			74,117,339
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS (Notes 4b and 10c)		68,252,613			40,486,132
Own portfolio		57,577,240			36,499,025
Third-party portfolio		123,614			340
Free portfolio		10,551,759			3,986,767
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES (Notes 4b and 10d)		8,053,711			7,567,557
Real estate, mortgage, credit and similar notes		1,033,738			875,639
Debentures		1,106,433			2,731,931
Foreign borrowings through securities		5,913,540			3,959,987
BORROWINGS AND ONLENDING (Notes 4b and 10e)		24,785,011			18,343,079
Borrowings		2,831,609			3,654,410
Onlending		21,953,402			14,688,669
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 7h)		3,063,328			1,896,269
TECHNICAL PROVISIONS FOR INSURANCE, PENSION PLAN AND CAPITALIZATION (Notes 4n II and 11a)		48,242,485			41,174,501
OTHER LIABILITIES		51,734,330			46,670,780
Foreign exchange portfolio (Note 9)		766,188			2,345,964
Tax and social security contributions (Notes 4o, 4p and 14c)		12,637,200			16,667,342
Credit card operations (Note 4e)		9,039			12,345
Subordinated debt (Note 10f)		32,054,473			21,597,977
Sundry (Note 13c)		6,267,430			6,047,152
DEFERRED INCOME (Note 4q)		236,560			231,773
MINORITY INTEREST IN SUBSIDIARIES (Note 16e)		3,658,172			3,442,862
STOCKHOLDERS’ EQUITY (Note 16)		57,225,072			48,861,594
Capital		45,000,000			45,000,000
Capital reserves		578,390			631,512
Revenue reserves		12,210,816			4,096,766
Asset valuation adjustment (Notes 4c, 4d and 7d)		156,846			246,828
(Treasury shares)		(720,980	)		(1,113,512	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		686,248,444			612,398,934

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Income (Note 2a)

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
INCOME FROM FINANCIAL OPERATIONS		58,399,028			58,331,333
Loan, lease and other credit operations		37,905,017			35,434,728
Securities and derivative financial instruments		13,697,814			18,929,553
Financial income from insurance, pension plan and capitalization operations (Note 11c)		3,345,086			3,549,287
Foreign exchange operations		833,829			(94,334	)
Compulsory deposits		2,617,282			512,099
EXPENSES OF FINANCIAL OPERATIONS		(25,447,708	)		(23,176,914	)
Money market		(21,916,832	)		(20,176,640	)
Financial expenses on technical provisions for pension plan and capitalization (Note 11c)		(2,898,334	)		(3,089,433	)
Borrowings and onlending		(632,542	)		89,159
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES		32,951,320			35,154,419
RESULT OF LOAN LOSSES (Note 8d I)		(9,008,144	)		(10,942,336	)
Expenses for allowance for loan losses		(11,954,420	)		(12,382,541	)
Income from recovery of credits written off as loss		2,946,276			1,440,205
GROSS INCOME FROM FINANCIAL OPERATIONS		23,943,176			24,212,083
OTHER OPERATING REVENUES (EXPENSES)		(9,691,126	)		(11,339,163	)
Banking service fees (Note 13d)		10,496,088			8,966,016
Asset management		1,868,658			1,629,437
Current account services		441,433			335,799
Credit cards		4,898,373			4,233,125
Sureties and credits granted		1,069,946			950,175
Receipt services		975,589			885,651
Other		1,242,089			931,829
Income from bank charges (Note 13e)		2,374,095			2,029,971
Result from insurance, pension plan and capitalization operations (Note 11c)		2,051,389			1,721,411
Personnel expenses (Note 13f)		(9,414,166	)		(8,848,513	)
Other administrative expenses (Note 13g)		(10,050,867	)		(8,430,816	)
Tax expenses (Notes 4p and 14a II)		(3,065,836	)		(3,036,917	)
Equity in earnings of affiliates and other investments (Note 15a lII)		180,481			180,369
Other operating revenues (Note 13h)		798,510			573,251
Other operating expenses (Note 13i)		(3,060,820	)		(4,493,935	)
OPERATING INCOME		14,252,050			12,872,920
NON-OPERATING INCOME (Note 13j)		21,334			389,671
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		14,273,384			13,262,591
INCOME TAX AND SOCIAL CONTRIBUTION (Notes 4p and 14a I)		(3,958,488	)		(5,619,665	)
Due on operations for the period		(3,996,672	)		(6,210,205	)
Related to temporary differences		38,184			590,540
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976		(168,500	)		(166,343	)
MINORITY INTEREST IN SUBSIDIARIES (Note 16e)		(713,235	)		(622,763	)
NET INCOME		9,433,161			6,853,820
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES		4,533,375,494			4,515,095,972
NET INCOME PER SHARE – R$		2.08			1.52
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)		12.60			10.80
EXCLUSION OF NONRECURRING EFFECTS (Notes 2a and 22k)		190,437			823,407
NET INCOME WITHOUT NONRECURRING EFFECTS		9,623,598			7,677,227
NET INCOME PER SHARE – R$		2.12			1.70

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Cash Flows

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
ADJUSTED NET INCOME		25,736,657			29,048,166
Net income		9,433,161			6,853,820
Adjustments to net income:		16,303,496			22,194,346
Granted options recognized		82,494			85,644
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)		(302,188	)		(2,573,210	)
Effects of changes in exchange rates on cash and cash equivalents		441,005			2,778,897
Allowance for loan losses		11,954,420			12,382,541
Results from operations with subordinated debt		1,833,246			833,532
Results from securitization of foreign payment orders		-			(309,741	)
Financial expenses on technical provisions for pension plan and capitalization		2,898,334			3,089,433
Depreciation and amortization (Note 15b)		1,669,292			1,640,143
Adjustment to legal liabilities – tax and social security		98,898			1,809,860
Adjustment to provision for contingent liabilities		(762,828	)		(305,323	)
Deferred taxes		(38,184	)		(590,540	)
Equity in earnings of affiliates and other investments (Note 15a III)		(180,481	)		(180,369	)
Income from available-for-sale securities		(1,894,680	)		1,800,901
Income from held-to-maturity securities		(125,938	)		508,736
Amortization of goodwill		-			556,576
(Income) loss from sale of investments		(160,205	)		(365,914	)
Minority interest		713,235			622,763
Other		77,076			410,417
CHANGE IN ASSETS AND LIABILITIES		(42,539,714	)		(5,171,670	)
(Increase) decrease in interbank investments		13,197,646			9,740,732
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)		(16,360,120	)		7,917,651
(Increase) decrease in compulsory deposits with the Central Bank of Brazil		(48,221,338	)		23,833
(Increase) decrease in interbank and interbranch accounts (assets/liabilities)		1,752,071			803,321
(Increase) decrease in loan, lease and other credit operations		(45,903,066	)		(4,541,461	)
(Increase) decrease in other receivables and other assets		3,169,906			2,932,181
(Increase) decrease in foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)		612,848			605,584
(Decrease) increase in deposits		4,144,481			(17,100,006	)
(Decrease) increase in deposits received under securities repurchase agreements		23,701,546			2,305,994
(Decrease) increase in funds for issuance of securities		6,059,702			(1,058,040	)
(Decrease) increase in borrowings and onlending		8,566,880			(9,930,073	)
(Decrease) increase in credit card operations (assets/liabilities)		768,169			(871,608	)
(Decrease) increase in securitization of foreign payment orders		-			(3,518,992	)
(Decrease) increase in technical provision for insurance, pension plan and capitalization		2,827,414			3,890,507
(Decrease) increase in collection and payment of taxes and contributions		3,233,845			2,711,712
(Decrease) increase in other liabilities		2,049,735			3,883,964
(Decrease) increase in deferred income		42,826			668
Payment of income tax and social contribution		(2,182,259	)		(2,967,637	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(16,803,057	)		23,876,496
Interest on capital / dividends received from affiliated companies		85,374			63,152
Funds received from sale of available-for-sale securities		11,151,067			11,310,223
Funds received from redemption of held-to-maturity securities		532			47,471
Disposal of assets not for own use		263,673			191,477
Disposal of investments		189,189			384,145
Payment of income tax and social contribution from sale of investments		(56,511	)		(124,411	)
Acquisition of minority interest in Itaú XL Seguros Corporativos S.A. (Note 2a)		(157,299	)		-
Acquisition of minority interest in Previtec – Previdência e Tecnologia Ltda. (Note 2a)		(32,000	)		-
Sale of fixed assets		52,456			49,790
Write-offs of intangible assets		70,931			-
Purchase of available-for-sale securities		(9,878,320	)		(9,460,025	)
Purchase of held-to-maturity securities		(514,403	)		-
Net cash and cash equivalents of assets and liabilities arising from the purchase of Redecard S.A.		-			(485,994	)
Purchase of investments		(22,585	)		(32,080	)
Purchase of fixed assets		(1,344,097	)		(700,408	)
Purchase of intangible assets		(321,832	)		(318,444	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES		(513,825	)		924,896
Increase (decrease) in subordinated debt		9,146,034			(525,537	)
Change in minority interest		(585,491	)		(458,314	)
Granting of stock options		303,927			218,010
Purchase of treasury shares		-			(21	)
Dividends and interest on capital paid		(4,152,051	)		(3,619,572	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		4,712,419			(4,385,434	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(12,604,463	)		20,415,958
Cash and cash equivalents at the beginning of the period		65,917,455			37,182,300
Effects of changes in exchange rates on cash and cash equivalents		(441,005	)		(2,778,897	)
Cash and cash equivalents at the end of the period (Notes 4a and 5)		52,871,987			54,819,361

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Added Value

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
INCOME		65,495,840			61,368,738
Financial operations		58,399,028			58,331,333
Banking services		12,870,183			10,995,987
Result from insurance, pension plan and capitalization operations		2,051,389			1,721,411
Result of allowance for loan losses (Note 8d)		(9,008,144	)		(10,942,336	)
Other		1,183,384			1,262,343
EXPENSES		(28,508,528	)		(27,670,849	)
Financial operations		(25,447,708	)		(23,176,914	)
Other		(3,060,820	)		(4,493,935	)
INPUTS PURCHASED FROM THIRD PARTIES		(8,363,896	)		(6,794,750	)
Materials, energy and others		(336,585	)		(211,438	)
Third-party services		(2,137,807	)		(2,138,417	)
Other		(5,889,504	)		(4,444,895	)
Data processing and telecommunications (Note 13g)		(2,358,942	)		(1,851,804	)
Advertising, promotions and publication (Note 13g)		(819,823	)		(641,529	)
Installations		(1,178,689	)		(714,419	)
Transportation (Note 13g)		(459,466	)		(280,324	)
Security (Note 13g)		(326,537	)		(280,042	)
Travel expenses (Note 13g)		(115,016	)		(87,280	)
Other		(631,031	)		(589,497	)
GROSS ADDED VALUE		28,623,416			26,903,139
DEPRECIATION AND AMORTIZATION (Note 13g)		(1,053,361	)		(990,457	)
NET ADDED VALUE PRODUCED BY THE COMPANY		27,570,055			25,912,682
ADDED VALUE RECEIVED FROM TRANSFER (Note 15 a III)		105,394			147,071
TOTAL ADDED VALUE TO BE DISTRIBUTED		27,675,449			26,059,753
DISTRIBUTION OF ADDED VALUE		27,675,449			26,059,753
Personnel		8,720,466			8,165,019
Compensation		6,954,310			6,715,770
Benefits		1,330,910			1,075,005
FGTS – government severance pay fund		435,246			374,244
Taxes, fees and contributions		8,174,977			9,772,542
Federal		7,697,053			9,335,596
State		842			25,471
Municipal		477,082			411,475
Return on third parties' assets - Rent		633,610			645,609
Return on own assets		10,146,396			7,476,583
Dividends and Interest on capital		3,310,811			2,630,440
Retained earnings (loss) for the period		6,122,350			4,223,380
Minority interest in retained earnings		713,235			622,763

ITAÚ UNIBANCO HOLDING S.A.

Balance Sheet

 (In thousands of Reais)

ASSETS	09/30/2010			09/30/2009
CURRENT ASSETS		1,663,874			7,817,727
CASH AND CASH EQUIVALENTS		312			197
INTERBANK INVESTMENTS (Notes 4b and 6)		336,729			6,830,527
Money market		336,729			142,686
Interbank deposits		-			6,687,841
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4c, 4d and 7)		32,351			5,198
Own portfolio		27,290			566
Pledged in guarantee		5,061			4,632
OTHER RECEIVABLES		1,289,584			979,057
Income receivable (Note 15a I)		188,792			30,432
Sundry (Note 13a)		1,100,792			948,625
OTHER ASSETS – Prepaid expenses (Note 4g)		4,898			2,748
LONG-TERM RECEIVABLES		13,129,213			105,244
INTERBANK INVESTMENTS – Interbank deposits (Notes 4b and 6)		13,098,967			-
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4c, 4d and 7)		6,227			24,749
Own portfolio		13			24,749
Pledged in guarantee		6,214			-
OTHER RECEIVABLES - Sundry (Note 13a)		24,019			80,495
PERMANENT ASSETS		62,031,310			57,436,916
INVESTMENTS		62,031,006			57,436,526
Investments in subsidiaries (Notes 4h and 15a I)		62,030,599			57,436,119
Other		407			407
FIXED ASSETS (Note 4i)		304			390
TOTAL ASSETS		76,824,397			65,359,887
LIABILITIES
CURRENT LIABILITIES		1,892,970			1,519,525
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 7h)		2,596			51
OTHER LIABILITIES		1,890,374			1,519,474
Social and statutory (Note 16b II)		1,828,452			1,473,205
Tax and social security contributions (Note 14c)		3,963			34,323
Subordinated debt (Note 10f)		50,600			-
Sundry (Note 13c)		7,359			11,946
LONG-TERM LIABILITIES		7,103,554			1,184,072
DEPOSITS – Interbank deposits (Notes 4b and 10b)		3,260,392			880,795
DERIVATIVE FINANCIAL INSTRUMENTS (Notes 4d and 7h)		-			831
OTHER LIABILITIES		3,843,162			302,446
Tax and social security contributions (Note 14c)		412,183			302,443
Subordinated debt (Note 10f)		3,364,059			-
Sundry (Note 13c)		66,920			3
STOCKHOLDERS’ EQUITY (Note 16)		67,827,873			62,656,290
Capital		45,000,000			45,000,000
Capital reserves		578,390			631,512
Revenue reserves		22,813,617			17,891,462
Asset valuation adjustment (Notes 4c, 4d and 7d)		156,846			246,828
(Treasury shares)		(720,980	)		(1,113,512	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		76,824,397			65,359,887

ITAÚ UNIBANCO HOLDING S.A.

Statement of Income

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
INCOME FROM FINANCIAL OPERATIONS		714,255			305,566
Securities and derivative financial instruments		714,255			305,566
EXPENSES OF FINANCIAL OPERATIONS		(237,467	)		(51,227	)
Money market		(237,467	)		(51,227	)
GROSS INCOME FROM FINANCIAL OPERATIONS		476,788			254,339
OTHER OPERATING REVENUES (EXPENSES)		5,947,991			4,433,968
Personnel expenses		(106,970	)		(167,316	)
Other administrative expenses		(44,766	)		(34,769	)
Tax expenses (Note 14a II)		(23,887	)		(14,757	)
Equity in earnings of subsidiaries (Note 15a I)		6,179,174			4,694,570
Other operating revenues (expenses)		(55,560	)		(43,760	)
OPERATING INCOME		6,424,779			4,688,307
NON-OPERATING INCOME		9,207			9,639
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		6,433,986			4,697,946
INCOME TAX AND SOCIAL CONTRIBUTION (Note 4p)		789,730			776,955
Due on operations for the period		(14,776	)		4,695
Related to temporary differences		804,506			772,260
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976		(4,947	)		(3,278	)
NET INCOME		7,218,769			5,471,623
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES		4,533,375,494			4,515,095,972
NET INCOME PER SHARE – R$		1.59			1.21
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)		14.94			13.85
EXCLUSION OF NONRECURRING EFFECTS (Notes 2a and 22k)		190,437			316,924
NET INCOME WITHOUT NONRECURRING EFFECTS		7,409,206			5,788,547
NET INCOME PER SHARE – R$		1.63			1.28

ITAÚ UNIBANCO HOLDING S.A.

Statement of Changes in Stockholders’ Equity (Note 16)

(In thousands of Reais)

	Capital		Capital reserves			Revenue reserves			Asset valuation adjustment (Note 7d)			Retained earnings			(Treasury shares)			Total
BALANCES AT 01/01/2009		29,000,000		597,706			31,192,635			(423,717	)		-			(1,525,695	)		58,840,929
Capitalization through Reserves – A/ESM of 04/24/2009		16,000,000		-			(16,000,000	)		-			-			-			-
Treasury shares		-		(133,764	)		(60,430	)		-			-			412,183			217,989
Purchase of treasury shares		-		-			-			-			-			(21	)		(21	)
Granting of stock options – exercised options		-		(133,764	)		(60,430	)		-			-			412,204			218,010
Granting of options recognized		-		167,570			(81,926	)		-			-			-			85,644
Change in adjustment to market value		-		-			-			670,545			-			-			670,545
Reversal of interest on capital and dividends paid on 03/17 and 04/08/2009 - Year 2008		-		-			104			-			-			-			104
Net income		-		-			-			-			5,471,623			-			5,471,623
Appropriations:
Legal reserve		-		-			273,581			-			(273,581	)		-			-
Statutory reserves		-		-			2,567,498			-			(2,567,498	)		-			-
Dividends and Interest on capital		-		-			-			-			(2,630,544	)		-			(2,630,544	)
BALANCES AT 09/30/2009		45,000,000		631,512			17,891,462			246,828			-			(1,113,512	)		62,656,290
CHANGES IN THE PERIOD		16,000,000		33,806			(13,301,173	)		670,545			-			412,183			3,815,361
BALANCES AT 01/01/2010		45,000,000		640,759			18,771,151			120,031			-			(1,031,327	)		63,500,614
Granting of stock options – exercised options		-		(58,490	)		52,070			-			-			310,347			303,927
Granting of options recognized		-		(3,879	)		86,373			-			-			-			82,494
Change in adjustment to market value		-		-			(3,935	)		36,815			-			-			32,880
Addition to interest on capital and dividends paid on 03/01/2010 - Year 2009		-		-			(620	)		-			-			-			(620	)
Net income		-		-			-			-			7,218,769			-			7,218,769
Appropriations:
Legal reserve		-		-			360,939			-			(360,939	)		-			-
Statutory reserves		-		-			3,547,639			-			(3,547,639	)		-			-
Dividends and Interest on capital		-		-			-			-			(3,310,191	)		-			(3,310,191	)
BALANCES AT 09/30/2010		45,000,000		578,390			22,813,617			156,846			-			(720,980	)		67,827,873
CHANGES IN THE PERIOD		-		(62,369	)		4,042,466			36,815			-			310,347			4,327,259

ITAÚ UNIBANCO HOLDING S.A.

Statement of Cash Flows

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
ADJUSTED NET INCOME (LOSS)		363,605			165,026
Net income		7,218,769			5,471,623
Adjustments to net income:		(6,855,164	)		(5,306,597	)
Granting of options recognized		82,494			85,644
Deferred taxes		(804,506	)		(772,260	)
Equity in earnings of subsidiaries (Note 15a I)		(6,179,174	)		(4,694,570	)
Amortization of goodwill		43,308			43,308
Effects of changes in exchange rates on cash and cash equivalents		2,628			31,145
Other		86			136
CHANGE IN ASSETS AND LIABILITIES		577,842			165,211
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)		(9,155	)		(6,877	)
(Increase) decrease in other receivables and other assets		484,403			203,983
Increase (decrease) in other liabilities		102,594			(31,895	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		941,447			330,237
Interest on capital/Dividends received		3,620,965			8,917,342
(Increase) decrease in interbank investments		(6,174,006	)		(6,378,518	)
(Purchase) sale of fixed assets		(34	)		25
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES		(2,553,075	)		2,538,849
Increase (decrease) in deposits		2,361,168			534,798
Increase (decrease) in subordinated debt		3,414,659			-
Granting of stock options		303,927			218,010
Purchase of treasury shares		-			(21	)
Dividends and interest on capital paid		(4,152,051	)		(3,619,572	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,927,703			(2,866,785	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		316,075			2,301
Cash and cash equivalents at the beginning of the period		23,594			171,727
Effects of changes in exchange rates on cash and cash equivalents		(2,628	)		(31,145	)
Cash and cash equivalents at the end of the period (Notes 4a and 5)		337,041			142,883

ITAÚ UNIBANCO HOLDING S.A.

Statement of Added Value

(In thousands of Reais)

	01/01 to 09/30/2010			01/01 to 09/30/2009
INCOME		1,619,104			1,185,726
Financial operations		714,255			305,566
Other		904,849			880,160
EXPENSES		(237,467	)		(51,227	)
INPUTS PURCHASED FROM THIRD PARTIES		(44,106	)		(33,812	)
Third-party services		(16,728	)		(12,786	)
Advertising, promotions and publications		(879	)		(2,290	)
Expenses for financial system services		(4,589	)		(4,873	)
Insurance		(4,413	)		(2,942	)
Other		(17,497	)		(10,921	)
GROSS ADDED VALUE		1,337,531			1,100,687
DEPRECIATION AND AMORTIZATION		(86	)		(150	)
NET ADDED VALUE PRODUCED BY THE COMPANY		1,337,445			1,100,537
ADDED VALUE RECEIVED FROM TRANSFER (Note 15 a I)		6,179,174			4,694,570
TOTAL ADDED VALUE TO BE DISTRIBUTED		7,516,619			5,795,107
DISTRIBUTION OF ADDED VALUE		7,516,619			5,795,107
Personnel		109,030			160,367
Compensation		106,188			152,428
Benefits		1,792			5,797
FGTS – government severance pay fund		1,050			2,142
Taxes, fees and contributions		188,246			162,310
Federal		188,185			162,204
Municipal		61			106
Return on third parties' assets - Rent		574			807
Return on own assets		7,218,769			5,471,623
Dividends and Interest on capital		3,310,811			2,630,440
Retained earnings (loss) for the period		3,907,958			2,841,183

ITAÚ UNIBANCO HOLDING S.A.

NOTES TO THE FINANCIAL STATEMENTS

FROM JANUARY 1 TO SEPTEMBER 30, 2010 AND 2009

(In thousands of Reais)

NOTE 1 - OPERATIONS

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

NOTE 2 – PRESENTATION OF THE FINANCIAL STATEMENTS

a) Presentation of the Financial Statements

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

On May 12, 2010 SUSEP approved the contract signed on November 12, 2009 related to the acquisition by ITAÚ UNIBANCO HOLDING of a minority interest in the subsidiary company Itaú XL Seguros Corporativos S.A. for the amount of R$ 157,299, giving rise to a goodwill of R$ 24,700. The transaction was approved on October 6, 2010 by SUSEP.

On September 20, 2010, ITAÚ UNIBANCO HOLDING purchased 50% of the quotas in the companies SFR Software and Análise de Sistemas LTDA and Previtec – Previdência e Tecnologia LTDA, according to the purchase agreement, for the amount of R$ 47,000, giving rise to a goodwill of R$ 42,530, and these companies became wholly-owned subsidiaries.

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

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

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

b) Convergence into international accounting standards

The CMN Resolution No. 3,786, of September 24, 2009, and BACEN Circular No. 3,472, of October 23, 2009, established that from December 31, 2010 the financial institutions shall prepare and annually report their consolidated financial statements adopting the international financial reporting standards according to the pronouncements issued by the International Accounting Standard Board (IASB), translated into the Portuguese language by a Brazilian company registered with the International Accounting Standards Committee Foundation (IASC Foundation).

The accounting pronouncements issued by the Accounting Pronouncements Committee (CPC) and the respective international standards of IASB that will be adopted in the consolidated financial statements until the end of 2010 and may impact the stockholders’ equity and or results are as follows:

· CPC 2 (IAS 21) - Effects on changes in foreign exchange rates and conversion of financial statements: Effect on results from January 1 to September 30, 2010 (without effect on stockholders' equity) for allocation of foreign exchange variation in the stockholders' equity related to controlled companies using functional currency other than Real, basically represented by the Itaú Europa, Chile, Argentina, Uruguay and Paraguay units (Note 20).

· CPC 11 (IFRS 4) – Insurance contracts: Management does not expect significant effects;

· CPC 15 (IFRS 3) – Business combinations: in the period from January 1 to September 30, 2010, there was not any transaction that could exert significant effects;

· CPC 24 (IAS 10) – Subsequent events: dividends and interest on capital declared after the accounting period to which the financial statements refer, if these are above the minimum mandatory dividend they shall be reversed with effect on stockholders' equity (Note 16b I);

· CPC 32 (IAS 12) – Taxes on income: recognition of a credit in the stockholders’ equity of the opening balance sheet of an amount of deferred tax assets not recorded according to Note 14b IV;

· CPC 33 (IAS 19) – Employee benefits: recognition of a credit in the stockholders’ equity of the opening balance sheet of the surplus of benefit plans according to Note 19c;

· CPC 38 (IAS 39) – Financial instruments: recognition and measurement – loss on recoverable amount and loss for not receiving financial assets: review of the procedures adopted for setting up the Allowance for Loan losses. The management does not expect an amount above that recorded in the allowance.

The other pronouncements shall basically impact the information disclosure format.

c) Consolidation

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

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

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

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

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

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

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

		Incorporation	Interest %
		country	09/30/2010		09/30/2009
Afinco Americas Madeira, SGPS, Sociedade Unipessoal, Ltda.		Portugal		100.00		100.00
Banco Dibens S.A.		Brazil		100.00		100.00
Banco Fiat S.A.		Brazil		99.99		99.99
Banco Itaú Argentina S.A.		Argentina		99.99		99.99
Banco Itaú BBA S.A.		Brazil		99.99		99.99
Banco Itaú Chile S.A.		Chile		99.99		99.99
Banco Itaú Europa Luxembourg S.A.		Luxembourg		99.99		99.98
Banco Itaú Europa S.A.		Portugal		99.99		99.99
Banco Itaú Uruguay S.A.		Uruguay		100.00		100.00
Banco Itaucard S.A.		Brazil		99.99		99.99
Banco Itaucred Financiamentos S.A.		Brazil		99.99		99.99
Banco Itauleasing S.A.		Brazil		99.99		99.99
BIU Participações S.A.	(1)	Brazil		66.15		66.15
Cia. Itaú de Capitalização		Brazil		99.99		99.99
Dibens Leasing S.A. - Arrendamento Mercantil		Brazil		100.00		100.00
FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento	(2)	Brazil		50.00		50.00
Fiat Administradora de Consórcios Ltda.		Brazil		99.99		99.99
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento	(3)	Brazil		50.00		50.00
Hipercard Banco Múltiplo S.A.		Brazil		99.99		99.99
Itaú Administradora de Consórcios Ltda.		Brazil		99.99		99.99
Itau Bank, Ltd.	(4)	Cayman Islands		100.00		100.00
Itaú Corretora de Valores S.A.		Brazil		99.99		99.99
Itaú Seguros S.A.		Brazil		100.00		100.00
Itaú Unibanco S.A.		Brazil		100.00		100.00
Itaú Vida e Previdência  S.A.		Brazil		100.00		100.00
Itaú XL Seguros Corporativos S.A. (Note 2a)		Brazil		100.00		50.00
Itaúsa Export S.A.		Brazil		100.00		100.00
Oca Casa Financiera S.A.		Uruguay		100.00		100.00
Orbitall Serviços e Processamento de Informações Comerciais S.A.		Brazil		99.99		99.99
Porto Seguro S.A.	(5)	Brazil		30.00		-
Redecard S.A.	(6)	Brazil		50.00		50.00
Unibanco Cayman Bank Ltd.		Cayman Islands		100.00		100.00
Unibanco Participações Societárias S.A.		Brazil		51.00		50.99

(1) Fully consolidated company from September 30, 2009;

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

(3) Company with shared control, fully included in consolidation, as authorized by CVM, in view of the business management by ITAÚ UNIBANCO HOLDING;

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

(5) Company controlled by Porto Seguro Itaú Unibanco Participações S.A. included proportionally in consolidation from December 31, 2009;

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

NOTE 3 – REQUIREMENTS OF CAPITAL AND FIXED ASSET LIMITS

a) Basel and Fixed Asset Ratios

The main indicators at September 30, 2010, according to present regulation, are as follows:

	Financial system			Economic-financial
	Consolidated (1)			Consolidated (2)
Referential equity (3)		73,134,853			75,083,908
Basel ratio		15.5	%		15.3	%
Tier I		11.9	%		11.9	%
Tier II		3.6	%		3.4	%
Fixed assets ratio (4)		37.8	%		15.8	%
Excess capital in relation to fixed assets		8,915,316			25,709,479

(1) Consolidated financial statements including financial companies only;

(2) Consolidated financial statements comprising all subsidiary companies, including insurance, pension plan and capitalization companies, and those in which control is based on the sum of interests held by the institution, its managers, parent company and related companies, notwithstanding their percentage, as well as those directly or indirectly acquired, through investment funds;

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

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

An issue of subordinated debt is pending approval from the Central Bank of Brazil in order to comprise the Tier II of Referential Equity, which at September 30, 2010 represents the amount of R$ 1,694,438. Should we consider this issue, the Basel ratios would stand at 15.8% and 15.6% for the financial system and the economic-financial consolidated, respectively.

Management considers the current Basel ratio (15.3%, based on economic-financial consolidated) to be adequate, taking into account the following:

a) It exceeds by 4.3 percent the minimum required by the authorities (11.0%); and

b) In view of the realizable values of assets (Note 18), the additional provision exceeding the minimum required (Note 8c) and unrecorded deferred tax assets (Note 14b IV), the ratio would increase to 17.5%.

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

From January 1, 2010, the operational risk portion started being considered at its full amount, pursuant to Circular No. 3.383.

CMN Resolution No. 3,825, of December 16, 2009, revoked, to take effect from April 1, 2010, Resolution No. 3,674, of December 30, 2008, which enabled fully adding to Tier I the amount of the additional provision to the minimum percentages required by Resolution No. 2,682 of December 21, 1999.

Circular No. 3,476, of December 28, 2009, sets forth that, for the Economic-Financial Consolidated, from June 30, 2010, an addition should be included in the Operational Risk Portion (POPR), through the use of a ratio based on the equity in earnings of subsidiary and affiliated companies.

Circular No. 3,498, of June 28, 2010, changes the provisions mentioned in Circulars No. 3,361, 3,362, 3,363, 3,364 and 3,366, of September 12, 2007, and No. 3,389, of June 25, 2008, which set forth the procedures for calculation of portions related to market risk. The new calculation method will be adopted gradually from January 1, 2012, taking into account that it shall be fully employed from June 30, 2012. Should the new rules already be applicable, the ratios would be reduced by about 0.9%.

The Referential Equity used for calculation of ratios and composition of risk exposures at September 30, 2010, are as follows:

	Financial system consolidated					Economic-financial consolidated
Stockholders' Equity Itaú Unibanco Holding S.A. (Consolidated)		57,225,072					57,225,072
Minority interest in subsidiaries		934,791					2,912,727
Consolidated stockholders’ equity (BACEN)		58,159,863					60,137,799
Revaluation reserves excluded from Tier I		(6	)				(7	)
Deferred tax assets excluded from Tier I		(548,978	)				(573,855	)
Deferred permanent assets excluded from Tier I		(417,457	)				(421,461	)
Adjustments to market value – securities and derivative financial Instruments excluded from Tier I		(156,847	)				(157,040	)
Preferred shares with clause of redemption excluded from Tier I		(665,974	)				(665,974	)
Tier I		56,370,601					58,319,462
Subordinated debt		16,203,019					16,203,019
Preferred shares with clause of redemption		532,779					532,779
Revaluation reserves		6					7
Adjustment to market value -securities and derivative financial instruments		156,847					157,040
Tier II		16,892,651					16,892,845
Tier I + Tier II		73,263,252					75,212,307
Exclusions:
Funding instruments issued by financial institutions		(128,399	)				(128,399	)
Referential equity		73,134,853					75,083,908
Risk exposure:
Exposure weighted by credit risk (EPR)		436,754,318					449,521,318
Portion required for credit risk coverage (PEPR)		48,042,975		92.3	%		49,447,345		91.9	%
FPR at 20%		261,602		0.5	%		281,300		0.5	%
FPR at 35%		12,502		0.0	%		12,502		0.0	%
FPR at 50%		2,237,403		4.3	%		2,834,433		5.3	%
FPR at 75%		12,358,175		23.7	%		12,210,289		22.7	%
FPR at 100%		31,624,433		60.8	%		32,492,073		60.4	%
FPR at 300%		1,324,179		2.5	%		1,391,862		2.6	%
Derivatives – potential future gain		224,681		0.4	%		224,886		0.4	%
Portion required for operational risk coverage (POPR)		2,745,478		5.3	%		3,129,288		5.8	%
Retail		468,830		0.9	%		468,830		0.9	%
Commercial		812,183		1.6	%		812,183		1.5	%
Corporate finance		77,531		0.1	%		77,531		0.1	%
Negotiation and sales		793,059		1.5	%		793,059		1.5	%
Payments and settlements		259,124		0.5	%		259,124		0.5	%
Financial agent services		112,659		0.2	%		112,659		0.2	%
Asset management		199,118		0.4	%		199,118		0.4	%
Retail brokerage		22,086		0.0	%		22,086		0.0	%
Business plans		888		0.0	%		888		0.0	%
Economic-financial consolidated (CONEF) addition		-		0.0	%		383,810		0.7	%
Portion required for market risk coverage:		1,250,357		2.4	%		1,252,671		2.3	%
Gold, foreign currency and operations subject to foreign exchange variation (PCAM)		-		0.0	%		-		0.0	%
Operations subject to interest rate variation (PJUR)		863,773		1.7	%		866,087		1.6	%
Fixed rate denominated in Real (PJUR1)		140,574		0.3	%		139,435		0.3	%
Foreign currency coupon (PJUR2)		245,644		0.5	%		249,097		0.5	%
Price index coupon (PJUR3)		343,061		0.7	%		343,061		0.6	%
Interest rate coupon (PJUR 4)		134,494		0.3	%		134,494		0.2	%
Operations subject to commodity price variation (PCOM)		127,650		0.2	%		127,650		0.2	%
Operations subject to stock price variation (PACS)		258,934		0.5	%		258,934		0.5	%
Required Referential Equity		52,038,810		100.0	%		53,829,304		100.0	%
Excess capital in relation to Required Referential Equity		21,096,043		40.5	%		21,254,604		39.5	%
Total exposure weighted by risk [EPR + (1/0.11 X (POPR + PCAM + PJUR + PCOM + PACS)		473,080,094					489,357,307
Ratio (%)		15.5					15.3
Referential equity calculated for covering the interest rate risk of operations not classified into the trading portfolio (RBAN)		1,313,626					1,456,789

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

	Financial system consolidated									Economic-financial consolidated
Changes in the Basel Ratio	Referential equity			Weighted exposure			Effect			Referential equity			Weighted exposure			Effect
Ratio at 12/31/2009		68,432,521			402,713,393			17.0	%		70,514,408			422,840,336			16.7	%
Result for the period		9,499,718						2.4	%		10,106,082						2.4	%
Interest on capital and dividends		(3,310,811	)					-0.8	%		(3,310,811	)					-0.8	%
Additional allowance for loan losses – added to the Tier I of Referential Equity		(6,107,459	)		(6,107,459	)		-1.2	%		(6,104,000	)		(6,104,000	)		-1.2	%
Granting of options recognized		82,492						0.0	%		82,492						0.0	%
Granting of stock options – exercised options in the period		301,162						0.1	%		301,162						0.1	%
Asset valuation adjustment		32,880						0.0	%		32,880						0.0	%
Subordinated debt and redeemable preferred shares		4,018,833						1.0	%		4,018,833						1.0	%
Deferred assets excluded from Tier I of referential equity		69,224			69,224			0.0	%		70,301			70,301			0.0	%
Other changes in referential equity		116,293						0.0	%		(627,439	)					-0.2	%
Changes in risk exposure					76,404,936			-3.0	%					72,550,670			-2.7	%
Ratio at 09/30/2010		73,134,853			473,080,094			15.5	%		75,083,908			489,357,307			15.3	%

b) Capital for Insurance Activity

SUSEP, following the worldwide trend towards the strengthening of the insurance market, disclosed on December 26, 2006 the Resolutions Nos. 155 and 158, amended by Resolutions No. 178, of December 28, 2007, and No. 200, of December 16, 2008, and Circular No. 355, of December 14, 2007. The regulations provide for the rules on regulatory capital required for authorization and operation of insurance companies and rules for the allocation of capital from subscription risk for several insurance lines.

Noteworthy is the fact that the adjusted stockholders’ equity of ITAU UNIBANCO HOLDING companies exclusively engaged in insurance activities is higher than the required regulatory capital. At September 30, 2010, the required regulatory capital amounted to R$ 800,749 for an existing adjusted stockholders’ equity of R$ 3,232,630.

NOTE 4 – SUMMARY OF THE MAIN ACCOUNTING PRACTICES

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

b) Interbank investments, remunerated restricted credits – Brazilian Central Bank, remunerated deposits, deposits received under securities repurchase agreements, funds from acceptance and issuance of securities, borrowings and onlendings, subordinated debt and other receivables and payables –Transactions subject to monetary correction and foreign exchange variation and operations with fixed charges are recorded at present value, net of the transaction costs incurred, calculated “pro rata die” based on the effective rate of transactions, according to CVM Resolution No. 556 of November 12, 2008.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

m) Impairment of assets – a loss is recognized when there are clear evidences that assets are stated at a non-recoverable value. From 2008, this procedure started to be adopted annually, at the end of each year.

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

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

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

· Reinsurance recoverable amounts – Refer to claims paid to the insured party pending recovery from Reinsurer, installments of unsettled claims and incurred but not reported claims - Reinsurance (IBNR), classified in assets in accordance with the criteria established by CNSP Resolution No. 162, of December 26, 2006, as amended by CNSP Resolution No. 195, of December 16, 2008, and SUSEP Circular No. 379, of December 19, 2008.

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

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

II.I - Insurance:

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

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

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

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

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

 

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

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

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

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

· Provision for financial variation – recognized according to the methodology provided for in the Technical Actuarial Note in order to guarantee that the financial assets are sufficient to cover mathematical provisions.

II.III- Capitalization:

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

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

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

I - Contingent assets and liabilities

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

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

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

Escrow deposits are restated in accordance with the current legislation.

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

II - Legal liabilities – tax and social security

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

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

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

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

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

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

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

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

NOTE 5 - CASH AND CASH EQUIVALENTS

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

	09/30/2010		09/30/2009
Cash and cash equivalents		11,063,416		10,325,257
Interbank deposits		6,646,897		3,387,723
Securities purchased under agreements to resell – Funded position		35,161,674		41,106,381
TOTAL		52,871,987		54,819,361

In ITAÚ UNIBANCO HOLDING it is composed of the following:

	09/30/2010		09/30/2009
Cash and cash equivalents		312		197
Securities purchased under agreements to resell – Funded position		336,729		142,686
TOTAL		337,041		142,883

NOTE 6 - INTERBANK INVESTMENTS

	09/30/2010												09/30/2009
	0-30		31-180		181-365		Over365		TOTAL		%		TOTAL		%
Money market		70,188,916		24,318,439		1,250,450		40,170		95,797,975		85.2		118,544,424		85.9
Funded position (*)		35,921,274		7,785,734		1,250,450		40,170		44,997,628		40.0		60,475,139		43.8
Financed position		33,360,238		9,094,356		-		-		42,454,594		37.8		54,678,211		39.6
With free movement		6,577,016		7,613,827		-		-		14,190,843		12.6		5,295,928		3.8
Without free movement		26,783,222		1,480,529		-		-		28,263,751		25.2		49,382,283		35.8
Short position		907,404		7,438,349		-		-		8,345,753		7.4		3,391,074		2.5
Money market – Assets Guaranteeing Technical Provisions - SUSEP		1,546,754		383,775		1,466,710		136,050		3,533,289		3.1		2,823,103		2.0
Interbank deposits		6,958,410		2,960,086		2,742,899		490,748		13,152,143		11.7		16,596,680		12.0
TOTAL		78,694,080		27,662,300		5,460,059		666,968		112,483,407				137,964,207
% per maturity term		70.0		24.5		4.9		0.6
TOTAL – 09/30/2009		97,574,657		32,028,573		4,253,243		4,107,734		137,964,207
% per maturity term		70.7		23.2		3.1		3.0

(*) Includes R$ 7,986,934 (R$ 12,239,299 at 09/30/2009) related to money market with free movement, in which securities are basically restricted to guarantee transactions at BM&FBovespa S.A. - Bolsa de Valores, Mercadorias e Futuros (Securities, Commodities and Futures Exchange) and the Central Bank of Brazil (BACEN).

In ITAÚ HOLDING at 09/30/2010, portfolio is composed of Money market – funded position falling due in up to 30 days amounting to R$ 336,729 (R$ 142,686 at 09/30/2009) and Interbank deposits over 365 days amounting to R$ 13,098,967 (R$ 6,687,841 at 09/30/2009 maturing from 31 to 180 days).

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

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

a) Summary per maturity

	09/30/2010																																09/30/2009
				Provision for adjustment to market value with impact on:
	Cost			Results			Stockholders' equity			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		51,006,424			112,120			466,889			51,585,433			36.3		971,439			914,620			5,923,476			5,625,710			11,501,736			26,648,452			45,011,157
Financial Treasury Bills		16,586,592			(1,372	)		(3,197	)		16,582,023			11.7		245,807			411,629			2,954,010			217,756			4,397,550			8,355,271			16,520,984
National Treasury Bills		5,165,424			815			33			5,166,272			3.6		322,970			-			2,338,713			504,019			1,883,756			116,814			14,632,708
National Treasury Bills		23,338,210			91,636			110,620			23,540,466			16.6		9,698			14,412			473,009			4,733,559			4,935,214			13,374,574			10,509,060
National Treasury/Securitization		342,515			506			(14,711	)		328,310			0.2		1,746			3,998			14,838			8,041			23,670			276,017			541,071
Brazilian External Debt Bonds		5,569,895			20,523			374,121			5,964,539			4.2		389,503			484,581			142,906			161,257			261,302			4,524,990			2,775,752
Investment in Non-exclusive Funds		1,715			-			-			1,715			0,0		1,715			-			-			-			-			-			991
Other		2,073			12			23			2,108			0,0		-			-			-			1,078			244			786			30,591
GOVERNMENT SECURITIES - ABROAD		7,700,060			46,090			(154,600	)		7,591,550			5.3		294,319			2,816,268			1,525,136			1,074,391			1,444,087			437,349			9,447,332
Portugal		-			-			-			-			-		-			-			-			-			-			-			27,415
Austria		-			-			-			-			-		-			-			-			-			-			-			452,754
Argentina		273,030			1,392			-			274,422			0.1		13,607			56,790			95,352			42,591			34,369			31,713			196,327
Central Bank		66,757			(1,485	)		-			65,272			0,0		-			-			49,233			-			14,744			1,295			71,397
National Treasury		206,273			2,877			-			209,150			0.1		13,607			56,790			46,119			42,591			19,625			30,418			124,930
Denmark		1,605,389			-			(71,768	)		1,533,621			1.1		-			169,733			-			420,932			942,956			-			1,850,965
Spain		871,226			-			(35,404	)		835,822			0.6		-			82,891			-			339,585			413,346			-			1,874,129
Korea		2,089,210			-			(45,917	)		2,043,293			1.4		-			1,801,037			242,256			-			-			-			1,503,323
Chile		1,386,722			(509	)		(3,993	)		1,382,220			1.0		192,932			347,389			657,258			119,333			32,737			32,571			1,463,372
Paraguay		267,123			-			1			267,124			0.2		21,142			33,966			81,482			78,725			329			51,480			282,159
Uruguay		852,232			346			2,170			854,748			0.6		66,585			270,914			443,032			55,863			1,041			17,313			457,112
United States		315,651			44,633			306			360,590			0.3		-			53,491			1,553			16,674			-			288,872			1,081,852
Norway		-			-			-			-			-		-			-			-			-			-			-			101,593
Mexico		12,663			47			-			12,710			0,0		-			7			4,039			-			462			8,202			8,580
Italy		-			-			-			-			-		-			-			-			-			-			-			132,584
Other		26,814			181			5			27,000			0,0		53			50			164			688			18,847			7,198			15,167
CORPORATE SECURITIES		27,504,679			282,566			392,467			28,179,712			19.8		6,104,598			1,239,331			846,537			1,409,927			2,804,813			15,774,506			23,229,544
Eurobonds and other		5,236,393			42,529			175,664			5,454,586			3.8		130,573			207,871			77,343			306,568			364,963			4,367,268			2,340,982
Bank Deposit Certificates		2,624,441			(1	)		565			2,625,005			1.9		11,578			169,346			538,904			205,717			714,403			985,057			2,296,518
Shares		3,654,212			189,938			34,381			3,878,531			2.7		3,878,531			-			-			-			-			-			3,647,694
Debentures		6,989,108			927			32,918			7,022,953			4.9		705,432			79,116			33,230			763,795			1,511,970			3,929,410			5,979,485
Promissory Notes		999,852			-			535			1,000,387			0.7		98,134			750,724			151,529			-			-			-			2,786,385
Quotas of funds		1,220,461			35,157			13,376			1,268,994			0.9		1,265,145			-			-			-			-			3,849			2,148,538
Fixed Income		330,937			(541	)		6,943			337,339			0.2		333,490			-			-			-			-			3,849			886,516
Credit Rights		680,112			-			-			680,112			0.5		680,112			-			-			-			-			-			804,381
Variable Income		209,412			35,698			6,433			251,543			0.2		251,543			-			-			-			-			-			457,641
Securitized real estate loans		6,748,822			14,016			135,020			6,897,858			4.9		15,205			32,274			45,528			133,847			190,362			6,480,642			4,011,005
Other		31,390			-			8			31,398			0,0		-			-			3			-			23,115			8,280			18,937
PGBL/VGBL FUND QUOTAS (1)		43,621,488			-			-			43,621,488			30.7		43,621,488			-			-			-			-			-			36,403,697
SUBTOTAL - SECURITIES		129,832,651			440,776			704,756			130,978,183			92.3		50,991,844			4,970,219			8,295,149			8,110,028			15,750,636			42,860,307			114,091,730
Trading securities		86,968,172			440,776			-			87,408,948			61.6		46,550,026			640,731			4,235,723			5,608,916			10,908,253			19,465,299			68,826,687
Available-for-sale securities		39,794,819			-			704,756			40,499,575			28.5		4,427,055			4,321,447			3,919,168			2,363,382			4,754,336			20,714,187			42,406,388
Held-to-maturity securities (2)		3,069,660			-			-			3,069,660			2.2		14,763			8,041			140,258			137,730			88,047			2,680,821			2,858,655
DERIVATIVE FINANCIAL INSTRUMENTS		10,162,922			737,713			-			10,900,635			7.9		2,929,395			1,704,574			2,088,192			721,630			1,091,427			2,365,417			8,484,582
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		139,995,573			1,178,489			704,756			141,878,818			100.0		53,921,239			6,674,793			10,383,341			8,831,658			16,842,063			45,225,724			122,576,312
																38.0	%		4.7	%		7.3	%		6.2	%		11.9	%		31.9	%
DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)		(8,491,695	)		(530,540	)		(54,665	)		(9,076,900	)		100.0		(2,618,571	)		(1,258,208	)		(1,219,864	)		(916,929	)		(1,057,770	)		(2,005,558	)		(7,458,403	)

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

(2) Unrecorded positive adjustment to market value in the amount of R$ 595,030 (R$ 403,366 at 09/30/2009), according to Note 7e.

b) Summary by portfolio

	09/30/2010
			Restricted to								Assets
	Own portfolio		Repurchase agreements		Pledging of guarantees (1)		Central Bank (2)		Derivative financial instruments		guaranteeing technical provisions (Note 11b)		Total
GOVERNMENT SECURITIES - DOMESTIC		23,778,235		12,053,093		7,780,285		2,341,498		-		5,632,322		51,585,433
Financial Treasury Bills		6,716,955		3,580,537		4,655,416		10,223		-		1,618,892		16,582,023
National Treasury Bills		2,521,239		1,342,090		313,641		495,848		-		493,454		5,166,272
National Treasury Notes		11,589,879		4,020,531		2,574,653		1,835,427		-		3,519,976		23,540,466
National Treasury/Securitization		328,310		-		-		-		-		-		328,310
Brazilian External Debt Bonds		2,618,029		3,109,935		236,575		-		-		-		5,964,539
Investments in Non-exclusive Funds		1,715		-		-		-		-		-		1,715
Other		2,108		-		-		-		-		-		2,108
GOVERNMENT SECURITIES - ABROAD		6,331,915		446,025		807,832		-		-		5,778		7,591,550
Argentina		225,719		48,703		-		-		-		-		274,422
Central Bank		16,569		48,703		-		-		-		-		65,272
National Treasury		209,150		-		-		-		-		-		209,150
Denmark		1,533,621		-		-		-		-		-		1,533,621
Spain		835,822		-		-		-		-		-		835,822
Korea		1,254,175		-		789,118		-		-		-		2,043,293
Chile		1,341,303		35,139		-		-		-		5,778		1,382,220
Paraguay		267,124		-		-		-		-		-		267,124
Uruguay		854,748		-		-		-		-		-		854,748
United States		2,223		339,653		18,714		-		-		-		360,590
Mexico		8,890		3,820		-		-		-		-		12,710
Other		8,290		18,710		-		-		-		-		27,000
CORPORATE SECURITIES		23,192,132		2,034,883		8,175		-		-		2,944,522		28,179,712
Eurobonds and others		3,681,176		1,771,462		1,948		-		-		-		5,454,586
Bank Deposit Certificates		645,191		88,907		2,085		-		-		1,888,822		2,625,005
Shares		3,809,613		66,074		2,844		-		-		-		3,878,531
Debentures		5,891,299		108,440		-		-		-		1,023,214		7,022,953
Promissory Notes		1,000,387		-		-		-		-		-		1,000,387
Quotas of funds		1,258,845		-		1,298		-		-		8,851		1,268,994
Fixed income		334,647		-		1,298		-		-		1,394		337,339
Credit rights		672,655		-		-		-		-		7,457		680,112
Variable income		251,543		-		-		-		-		-		251,543
Securitized real estate loans		6,874,223		-		-		-		-		23,635		6,897,858
Other		31,398		-		-		-		-		-		31,398
PGBL/VGBL FUND QUOTAS		-		-		-		-		-		43,621,488		43,621,488
SUBTOTAL - SECURITIES		53,302,282		14,534,001		8,596,292		2,341,498		-		52,204,110		130,978,183
Trading securities		24,334,578		8,530,125		4,164,671		2,227,647		-		48,151,927		87,408,948
Available-for-sale securities		28,826,519		5,698,223		4,400,080		113,851		-		1,460,902		40,499,575
Held-to-maturity securities		141,185		305,653		31,541		-		-		2,591,281		3,069,660
DERIVATIVE FINANCIAL INSTRUMENTS		-		-		-		-		10,900,635		-		10,900,635
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		53,302,282		14,534,001		8,596,292		2,341,498		10,900,635		52,204,110		141,878,818
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) – 09/30/2009		41,166,291		8,726,174		10,057,225		9,469,767		8,484,582		44,672,273		122,576,312

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

(2) Represent securities in compulsory deposits.

c) Trading securities

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

	09/30/2010																											09/30/2009
	Cost		Adjustment to market value (in results)			Market value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		34,831,993		112,120			34,944,113		40.1		909,493			363,810			3,466,313			5,165,585			9,830,529			15,208,383			24,865,477
Financial Treasury Bills		10,371,182		(1,372	)		10,369,810		11.9		245,807			342,910			868,355			171,839			2,830,019			5,910,880			9,144,836
National Treasury Bills		5,115,395		815			5,116,210		5.9		322,970			-			2,288,651			504,019			1,883,756			116,814			10,805,244
National Treasury Notes		17,916,287		91,636			18,007,923		20.6		9,192			13,688			157,579			4,372,810			4,908,580			8,546,074			4,337,661
National Treasury/Securitization		64,707		506			65,213		0.1		1,746			3,998			14,838			8,041			23,670			12,920			284,479
Brazilian External Debt Bonds		1,362,323		20,523			1,382,846		1.6		328,063			3,214			136,890			108,876			184,504			621,299			291,195
Investments in Non-exclusive Funds		1,715		-			1,715		0,0		1,715			-			-			-			-			-			991
Other		384		12			396		0,0		-			-			-			-			-			396			1,071
GOVERNMENT SECURITIES - ABROAD		807,197		46,090			853,287		0.9		54,988			115,641			231,968			60,048			54,718			335,924			1,520,897
Argentina		272,620		1,392			274,012		0.3		13,607			56,790			95,352			42,591			34,369			31,303			195,754
Central Bank		66,757		(1,485	)		65,272		0.1		-			-			49,233			-			14,744			1,295			71,397
National Treasury		205,863		2,877			208,740		0.2		13,607			56,790			46,119			42,591			19,625			30,008			124,357
Chile		180,190		(509	)		179,681		0.2		41,240			4,137			126,995			6,918			-			391			229,684
Uruguay		15,919		346			16,265		0,0		88			1,166			3,967			9,851			1,040			153			8,291
United States		299,181		44,633			343,814		0.4		-			53,491			1,451			-			-			288,872			1,063,637
Mexico		12,663		47			12,710		0,0		-			7			4,039			-			462			8,202			8,580
Other		26,624		181			26,805		0,0		53			50			164			688			18,847			7,003			14,951
CORPORATE SECURITIES		7,707,494		282,566			7,990,060		9.1		1,964,057			161,280			537,442			383,283			1,023,006			3,920,992			6,036,616
Eurobonds and others		1,892,442		42,529			1,934,971		2.2		30,466			23,577			41,305			11,436			110,025			1,718,162			476,243
Bank Deposit Certificates		2,051,228		(1	)		2,051,227		2.3		-			69,161			464,645			167,699			605,611			744,111			2,154,082
Shares		1,190,825		189,938			1,380,763		1.6		1,380,763			-			-			-			-			-			987,910
Debentures		1,511,263		927			1,512,190		1.8		30,854			68,277			31,101			203,389			305,937			872,632			1,473,755
Promissory Notes		-		-			-		-		-			-			-			-			-			-			18,211
Quotas of funds		486,683		35,157			521,840		0.5		521,840			-			-			-			-			-			886,258
Fixed income		303,841		(541	)		303,300		0.3		303,300			-			-			-			-			-			729,159
Credit rights		7,615		-			7,615		0,0		7,615			-			-			-			-			-			77,259
Variable income		175,227		35,698			210,925		0.2		210,925			-			-			-			-			-			79,840
Securitized real estate loans		575,053		14,016			589,069		0.7		134			265			391			759			1,433			586,087			40,157
PGBL/VGBL FUND QUOTAS		43,621,488		-			43,621,488		49.9		43,621,488			-			-			-			-			-			36,403,697
Total		86,968,172		440,776			87,408,948		100.0		46,550,026			640,731			4,235,723			5,608,916			10,908,253			19,465,299			68,826,687
% per maturity term											53.3	%		0.7	%		4.8	%		6.4	%		12.5	%		22.3	%
Total – 09/30/2009		68,496,050		330,637			68,826,687		100.0		41,025,062			930,209			6,612,395			3,194,402			5,133,382			11,931,237
% per maturity term											59.6	%		1.4	%		9.6	%		4.6	%		7.5	%		17.3	%

At September 30, 2010, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities – Financial Treasury Bills amounting to R$ 5,679 (R$ 5.198 at 09/30/2009) with maturity over 365 days.

d) Available-for-sale securities

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

	09/30/2010																											09/30/2009
	Cost		Adjustment to market value (in stockholders' equity)			Market value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		13,349,895		466,889			13,816,784		34.0		61,946			547,945			2,321,195			408,580			1,594,429			8,882,689			17,562,670
Financial Treasury Bills		6,215,410		(3,197	)		6,212,213		15.3		-			68,719			2,085,655			45,917			1,567,531			2,444,391			7,376,148
National Treasury Bills		50,029		33			50,062		0.1		-			-			50,062			-			-			-			3,827,464
National Treasury Bills		2,826,734		110,620			2,937,354		7.3		506			724			179,462			360,749			26,634			2,369,279			3,830,454
National Treasury/Securitization		277,808		(14,711	)		263,097		0.6		-			-			-			-			-			263,097			256,592
Brazilian External Debt Bonds		3,978,225		374,121			4,352,346		10.7		61,440			478,502			6,016			836			20			3,805,532			2,242,492
Other		1,689		23			1,712		0,0		-			-			-			1,078			244			390			29,520
GOVERNMENT SECURITIES - ABROAD		6,876,712		(154,600	)		6,722,112		16.6		239,331			2,700,627			1,293,026			1,014,343			1,389,369			85,416			7,909,471
Portugal		-		-			-		-		-			-			-			-			-			-			27,415
Austria		-		-			-		-		-			-			-			-			-			-			452,754
Argentina - National Treasury		410		-			410		0,0		-			-			-			-			-			410			573
Denmark		1,605,389		(71,768	)		1,533,621		3.8		-			169,733			-			420,932			942,956			-			1,850,965
Spain		871,226		(35,404	)		835,822		2.1		-			82,891			-			339,585			413,346			-			1,874,129
Korea		2,089,210		(45,917	)		2,043,293		5.0		-			1,801,037			242,256			-			-			-			1,503,323
Chile		1,206,532		(3,993	)		1,202,539		3.0		151,692			343,252			530,263			112,415			32,737			32,180			1,233,688
Paraguay		267,123		1			267,124		0.7		21,142			33,966			81,482			78,725			329			51,480			282,159
Uruguay		820,162		2,170			822,332		2.0		66,497			269,748			438,923			46,012			1			1,151			431,857
United States		16,470		306			16,776		0,0		-			-			102			16,674			-			-			18,215
Norway		-		-			-		-		-			-			-			-			-			-			101,593
Italy		-		-			-		-		-			-			-			-			-			-			132,584
Other		190		5			195		0,0		-			-			-			-			-			195			216
CORPORATE SECURITIES		19,568,212		392,467			19,960,679		49.4		4,125,778			1,072,875			304,947			940,459			1,770,538			11,746,082			16,934,247
Eurobonds and other		3,169,437		175,664			3,345,101		8.3		100,107			184,294			34,019			208,947			254,938			2,562,796			1,655,431
Bank Deposit Certificates		573,213		565			573,778		1.4		11,578			100,185			74,259			38,018			108,792			240,946			142,436
Shares		2,463,387		34,381			2,497,768		6.2		2,497,768			-			-			-			-			-			2,659,775
Debentures		5,429,617		32,918			5,462,535		13.5		659,831			5,663			-			560,406			1,194,764			3,041,871			4,463,982
Promissory Notes		999,852		535			1,000,387		2.5		98,134			750,724			151,529			-			-			-			2,768,174
Quotas of funds		733,762		13,376			747,138		1.9		743,289			-			-			-			-			3,849			1,262,279
Fixed income		27,080		6,943			34,023		0.1		30,174			-			-			-			-			3,849			157,357
Credit rights		672,497		-			672,497		1.7		672,497			-			-			-			-			-			727,122
Variable income		34,185		6,433			40,618		0.1		40,618			-			-			-			-			-			377,800
Securitized real estate loans		6,167,554		135,020			6,302,574		15.5		15,071			32,009			45,137			133,088			188,929			5,888,340			3,963,412
Other		31,390		8			31,398		0.1		-			-			3			-			23,115			8,280			18,758
TOTAL		39,794,819		704,756			40,499,575		100.0		4,427,055			4,321,447			3,919,168			2,363,382			4,754,336			20,714,187			42,406,388
Adjustment of securities reclassified in prior years to the held-to-maturity category				13,449							10.9	%		10.7	%		9.8	%		5.8	%		11.7	%		51.1	%
Accounting adjustment - hedge - Circular No. 3082				(144,650	)
Deferred taxes				(210,091	)
Minority interest in subsidiaries				(3,529	)
Adjustment of securities of unconsolidated affiliates				(203,089	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2010				156,846
TOTAL – 09/30/2009		41,692,904		713,484			42,406,388		100.0		7,240,060			4,090,072			4,326,419			5,410,713			6,013,380			15,325,744
Adjustment of securities reclassified in prior years to the held-to-maturity category				16,604							17.1	%		9.6	%		10.2	%		12.8	%		14.2	%		36.1	%
Accounting adjustment - hedge - Circular No. 3082				(277,129	)
Deferred taxes				(170,370	)
Minority interest in subsidiaries				17,005
Adjustment of securities of unconsolidated affiliates				(52,766	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2009				246,828

At September 30, 2010, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities in the amount of R$ R$ 32,899 (24,749 at 09/30/2009), of which the National Treasury Notes amount to R$ 26,672 (R$ 24,749 at 09/30/2009) with maturity between 181 and 365 days, and R$ 6,227 in Financial Treasury Bills, with maturity over 365 days.

e)   Held-to-maturity securities

See below the composition of the portfolio of held-to-maturity securities by type, stated at cost and by maturity term. In the carrying value, not considered in results, are the amounts of R$ 13,449 (R$ 16,604 at 09/30/2009) included at 09/30/2009, relating to market adjustment of the reclassified securities at December 31, 2003. Securitities classified under this type, if stated at market value, would present a positive adjustment of R$ 595,030 (R$ 403,366 at 09/30/2009) at September 30, 2010.

	09/30/2010																						09/30/2009
	Carrying value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Carrying value
GOVERNMENT SECURITIES - DOMESTIC		2,824,536		92.0		-			2,865			135,968			51,545			76,778			2,557,380			2,583,010
National Treasury Notes (*)		2,595,189		84.5		-			-			135,968			-			-			2,459,221			2,340,945
Brazilian External Debt Bonds		229,347		7.5		-			2,865			-			51,545			76,778			98,159			242,065
GOVERNMENT SECURITIES - DOMESTIC - URUGUAY		16,151		0.5		-			-			142			-			-			16,009			16,964
CORPORATE SECURITIES		228,973		7.5		14,763			5,176			4,148			86,185			11,269			107,432			258,681
Eurobonds and other		174,514		5.7		-			-			2,019			86,185			-			86,310			209,308
Debentures		48,228		1.6		14,747			5,176			2,129			-			11,269			14,907			41,748
Quotas of funds - Fixed income		16		0,0		16			-			-			-			-			-			1
Securitized real estate loans (*)		6,215		0.2		-			-			-			-			-			6,215			7,436
Other		-		-		-			-			-			-			-			-			188
Total		3,069,660		100.0		14,763			8,041			140,258			137,730			88,047			2,680,821			2,858,655
% per maturity term						0.4	%		0.3	%		4.6	%		4.5	%		2.9	%		87.3	%
Total 09/30/2009		2,858,655		100.0		119			3,406			11,546			32,682			298,093			2,512,809
% per maturity term						0.0	%		0.2	%		0.4	%		1.1	%		10.4	%		87.9	%

(*)  Includes investments of Itaú Vida e Previdência S.A. in the amount of R$ 1.890.766 (R$ 1.259.140 at 09/30/2009).

f)    Realized and unrealized gain of securities portfolio

	01/01 to 09/30/2010		01/01 to 09/30/2009
Gain (loss) - Trading securities		64,236		1,022,505
Gain (loss) – Available-for-sale securities		361,524		324,296
Total realized gain		425,760		1,346,801
Adjustment to market value of trading securities		115,782		(120,691	)
Total		541,542		1,226,110

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

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

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

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

h) Derivative financial instruments

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

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

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

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

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

The main risk factors of the derivatives, assumed at September 30, 2010, were related to the foreign exchange rate, interest rate, commodities, U.S. dollar coupon, Reference Rate coupon, Libor and variable income. The management of these and other market risk factors is supported by sophisticated statistical and deterministic models. Based on this management model, the institution, with the use of transactions involving derivatives, has been able to optimize the risk-return ratios, even under highly volatile situations.

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

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

The total value of margins pledged in guarantee was R$ 8,470,678 (R$ 15,513,710 at September 30, 2009) and was basically composed of government securities.

I -   Derivatives by index

	Memorandum account Notional amount				Balance sheet account receivable / (received)(payable) / paid			Adjustment to market value (in results / stockholders’ equity)			Market value
	09/30/2010		09/30/2009		09/30/2010			09/30/2010			09/30/2010			09/30/2009
Futures contracts		337,880,058		196,897,503		29,520			(11,368	)		18,152			117,394
Purchase commitments		85,324,326		94,894,623		(89,173	)		23,807			(65,366	)		(41,116	)
Foreign currency		10,730,486		4,206,487		(44,481	)		489			(43,992	)		(2,927	)
Interbank market		54,968,183		83,382,343		(1,377	)		7,550			6,173			(1,279	)
Indices		16,675,882		6,669,056		(43,313	)		1,670			(41,643	)		(28,433	)
Securities		2,471,584		578,393		-			(36	)		(36	)		(3	)
Other		478,191		58,344		(2	)		14,134			14,132			(8,474	)
Commitments to sell		252,555,732		102,002,880		118,693			(35,175	)		83,518			158,510
Foreign currency		8,559,005		14,091,703		15,385			(28,747	)		(13,362	)		10,984
Interbank market		83,742,062		62,176,146		7,267			34			7,301			7,536
Fixed rate		1,372,302		-		-			(6	)		(6	)		-
Indices		152,264,118		23,445,816		95,776			(2,749	)		93,027			129,141
Securities		4,570,500		-		-			(16	)		(16	)		-
Other		2,047,745		2,289,215		265			(3,691	)		(3,426	)		10,849
Swap contracts						126,481			12,665			139,146			977,152
Asset position		66,205,809		81,227,999		2,146,926			789,187			2,936,113			3,280,613
Foreign currency		8,816,913		8,526,966		20,325			84,855			105,180			182,137
Interbank market		31,891,490		33,826,515		1,208,368			(4,892	)		1,203,476			1,913,347
Fixed rate		10,297,232		19,346,183		253,531			362,015			615,546			358,839
Floating rate		1,182,195		6,757,409		-			-			-			589
Indices		13,925,411		11,999,961		661,300			346,695			1,007,995			818,542
Securities		3,021		14,131		1,388			35			1,423			5,801
Other		89,547		756,834		2,014			479			2,493			1,358
Liability position		66,079,328		80,207,810		(2,020,445	)		(776,522	)		(2,796,967	)		(2,303,461	)
Foreign currency		15,272,578		12,107,980		(292,013	)		(35,226	)		(327,239	)		(288,395	)
Interbank market		21,300,719		21,077,109		(922,062	)		97,205			(824,857	)		(733,833	)
Fixed rate		6,374,622		17,617,625		(125,107	)		(493,268	)		(618,375	)		(481,453	)
Floating rate		4,543,072		13,846,479		(6,481	)		752			(5,729	)		(10,166	)
Indices		18,401,779		14,702,797		(657,514	)		(343,217	)		(1,000,731	)		(783,938	)
Other		186,558		855,820		(17,268	)		(2,768	)		(20,036	)		(5,676	)
Option contracts		2,411,886,301		1,377,138,277		217,120			196,597			413,717			15,330
Purchase commitments – long position		648,922,728		453,889,168		1,137,214			(239,331	)		897,883			882,986
Foreign currency		31,362,772		25,179,137		545,486			(86,073	)		459,413			209,362
Interbank market		477,894,656		293,226,233		308,276			(139,729	)		168,547			200,308
Floating rate		236,604		33,322		1,372			(699	)		673			84
Indices		137,486,076		134,536,543		177,209			(56,710	)		120,499			375,094
Securities		1,187,999		803,095		76,176			29,766			105,942			85,470
Other		754,621		110,838		28,695			14,114			42,809			12,668
Commitments to sell – long position		711,215,929		267,943,787		1,240,373			214,173			1,454,546			1,420,935
Foreign currency		18,023,990		16,541,202		506,111			140,522			646,633			516,158
Interbank market		587,135,669		154,907,306		138,339			47,145			185,484			159,177
Floating rate		92,673		-		272			189			461			-
Indices		103,827,378		94,960,017		97,875			(22,788	)		75,087			340,589
Securities		1,747,618		1,308,084		485,875			56,367			542,242			376,883
Other		388,601		227,178		11,901			(7,262	)		4,639			28,128
Purchase commitments – short position		425,663,770		341,033,653		(1,293,594	)		350,303			(943,291	)		(924,806	)
Foreign currency		30,609,686		24,681,121		(729,281	)		249,095			(480,186	)		(262,658	)
Interbank market		294,626,032		191,828,427		(111,975	)		76,546			(35,429	)		(196,589	)
Indices		98,929,463		123,504,765		(377,069	)		37,325			(339,744	)		(437,024	)
Securities		1,065,316		916,226		(43,835	)		(4,991	)		(48,826	)		(21,832	)
Other		433,273		103,114		(31,434	)		(7,672	)		(39,106	)		(6,703	)
Commitments to sell – short position		626,083,874		314,271,669		(866,873	)		(128,548	)		(995,421	)		(1,363,785	)
Foreign currency		24,409,149		21,162,428		(501,561	)		(72,841	)		(574,402	)		(878,505	)
Interbank market		497,015,060		189,577,854		(169,039	)		(111,837	)		(280,876	)		(141,926	)
Indices		103,150,600		103,184,048		(85,863	)		12,373			(73,490	)		(320,303	)
Securities		1,324,912		191,508		(94,474	)		33,161			(61,313	)		(1,918	)
Other		184,153		155,831		(15,936	)		10,596			(5,340	)		(21,133	)
Forward contracts		4,198,059		1,563,600		954,994			1,201			956,195			542
Purchases receivable		1,720,959		297,902		1,622,896			(100	)		1,622,796			297,694
Foreign currency		79,187		-		(18,342	)		-			(18,342	)		-
Fixed rate		1,189,787		174,691		1,189,196			16			1,189,212			174,726
Floating rate		451,985		123,006		452,042			(116	)		451,926			122,957
Other		-		205		-			-			-			11
Purchases payable		-		885		(1,641,238	)		100			(1,641,138	)		(297,740	)
Fixed rate		-		-		(1,189,196	)		(16	)		(1,189,212	)		(174,726	)
Floating rate		-		-		(452,042	)		116			(451,926	)		(122,957	)
Other		-		885		-			-			-			(57	)
Sales receivable		2,477,100		1,264,813		2,379,725			812			2,380,537			1,264,454
Foreign currency		79,187		-		-			-			-			-
Fixed rate		1,235,286		1,190,661		1,235,645			(308	)		1,235,337			1,190,389
Floating rate		170,663		73,546		170,744			(81	)		170,663			73,477
Other		991,964		606		973,336			1,201			974,537			588
Sales deliverable		-		-		(1,406,389	)		389			(1,406,000	)		(1,263,866	)
Fixed rate		-		-		(1,235,645	)		308			(1,235,337	)		(1,190,389	)
Floating rate		-		-		(170,744	)		81			(170,663	)		(73,477	)
Credit derivatives		5,077,756		5,641,746		76,026			(7,445	)		68,581			(101,436	)
Asset position		1,928,965		3,185,191		224,118			(10,293	)		213,825			22,782
Foreign currency		27,957		197,430		71			613			684			3,118
Fixed rate		1,730,688		2,954,838		224,103			(12,446	)		211,657			17,947
Securities		149,481		10,365		(62	)		1,285			1,223			623
Other		20,839		22,558		6			255			261			1,094
Liability position		3,148,791		2,456,555		(148,092	)		2,848			(145,244	)		(124,218	)
Foreign currency		27,526		-		(66	)		(570	)		(636	)		(3,004	)
Fixed rate		2,936,818		2,406,555		(147,908	)		4,737			(143,171	)		(119,088	)
Securities		163,608		-		(109	)		(1,064	)		(1,173	)		(580	)
Other		20,839		50,000		(9	)		(255	)		(264	)		(1,546	)

	Memorandum account Notional amount				Balance sheet account receivable / (received)(payable) / paid			Adjustment to market value (in results / stockholders’ equity)			Market value
	09/30/2010		09/30/2009		09/30/2010			09/30/2010			09/30/2010			09/30/2009
Forwards operations		20,416,765		12,710,194		96,487			1,433			97,920			(45,893	)
Asset position		7,825,333		6,871,820		582,432			1,451			583,883			305,175
Foreing currency		6,282,153		6,172,672		223,002			-			223,002			272,243
Fixed rate		1,022,677		239,509		350,120			2,322			352,442			28,465
Floating rate		517,578		432,967		8,871			(871	)		8,000			3,496
Indices		-		26,672		-			-			-			971
Other		2,925		-		439			-			439			-
Liability position		12,591,432		5,838,374		(485,945	)		(18	)		(485,963	)		(351,068	)
Foreing currency		12,231,422		5,231,692		(474,585	)		(18	)		(474,603	)		(334,895	)
Interbank market		15,915		1,632		(499	)		-			(499	)		(143	)
Fixed rate		59,141		112,516		(6,292	)		-			(6,292	)		(13,506	)
Floating rate		277,849		465,862		(3,301	)		-			(3,301	)		(1,773	)
Indices		1,571		26,672		(90	)		-			(90	)		(751	)
Other		5,534		-		(1,178	)		-			(1,178	)		-
Swap with target flow		286,262		2,617,827		(11,792	)		(2,110	)		(13,902	)		(41,770	)
Asset position		137,235		1,314,275		-			-			-			47,211
Foreing currency		-		606,589		-			-			-			1,278
Interbank market		137,235		602,491		-			-			-			45,933
Fixed rate		-		105,195		-			-			-			-
Liability position		149,027		1,303,552		(11,792	)		(2,110	)		(13,902	)		(88,981	)
Foreing currency		149,027		983,649		(11,792	)		(2,110	)		(13,902	)		(59,138	)
Interbank market		-		290,990		-			-			-			(29,288	)
Fixed rate		-		28,913		-			-			-			(555	)
Target flow of swap – foreign currency		1,313,749		3,746,618		130,165			241			130,406			48,589
Asset position		1,313,749		2,800,384		130,165			241			130,406			196,275
Foreing currency		1,313,749		2,795,090		130,165			241			130,406			196,275
Indices		-		5,294		-			-			-			-
Liability position – Foreign currency		-		946,234		-			-			-			(147,686	)
Other derivative financial instruments (*)		16,245,467		12,757,277		52,226			(38,706	)		13,520			56,271
Asset position		10,387,039		7,570,264		669,553			(7,059	)		662,494			649,063
Foreing currency		7,421,868		4,939,085		414,327			21,241			435,568			578,167
Interbank market		-		745,908		-			-			-			302
Fixed rate		-		593		-			-			-			167
Other		2,965,171		1,884,678		255,226			(28,300	)		226,926			70,427
Liability position		5,858,428		5,187,013		(617,327	)		(31,647	)		(648,974	)		(592,792	)
Foreing currency		5,371,352		4,318,202		(597,895	)		(8,240	)		(606,135	)		(495,977	)
Interbank market		-		765,525		-			-			-			(268	)
Fixed rate		446		100,596		(485	)		1			(484	)		(96,397	)
Other		486,630		2,690		(18,947	)		(23,408	)		(42,355	)		(150	)
			ASSETS			10,162,922			737,713			10,900,635			8,484,582
			LIABILITIES			(8,491,695	)		(585,205	)		(9,076,900	)		(7,458,403	)
			TOTAL			1,671,227			152,508			1,823,735			1,026,179

Derivative contracts mature as follows (in days):

Clearing	0 - 30		31 - 180		181 - 365		Over 365		09/30/2010		09/30/2009
Futures		47,378,091		220,781,213		17,361,605		52,359,149		337,880,058		196,897,503
Swaps		5,522,914		18,019,065		9,552,512		30,964,392		64,058,883		78,540,063
Options		871,612,897		1,301,489,093		211,641,906		27,142,405		2,411,886,301		1,377,138,277
Forwards		2,208,064		870,905		15,226		1,103,864		4,198,059		1,563,600
Credit derivatives		81,152		664,226		659,787		3,672,591		5,077,756		5,641,746
Forwards		7,280,725		9,163,778		2,762,790		1,209,472		20,416,765		12,710,194
Swaps with target flow		6,016		131,219		-		-		137,235		1,218,751
Target flow of swap		6,452		1,294,427		12,870		-		1,313,749		3,746,618
Other		2,225,707		6,747,758		3,430,002		3,842,000		16,245,467		12,757,277

At September 30, 2010, ITAÚ UNIBANCO HOLDING had derivative operations in the swap with target flow and target forward with 2 clients; these products not being totally exposed to an exchange rate of R$ 1.69 per dollar, for settlement at maturity. These clients have AA, A or B risk rating.

II -  Derivatives by counterparty

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

	09/30/2010																												09/30/2009
	Cost		Adjustment to market value (in results / stockholders’ equity)			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
ASSETS
Futures		29,520		(11,368	)		18,152			0.2		(9,216	)		44,133			1,054			9,360			(19,546	)		(7,633	)		117,394
BM&F Bovespa		29,520		(9,922	)		19,598			0.2		(9,216	)		45,677			667			9,324			(19,221	)		(7,633	)		107,072
Financial institutions		-		(1,446	)		(1,446	)		0,0		-			(1,544	)		387			36			(325	)		-			(306	)
Companies		-		-			-			-		-			-			-			-			-			-			10,628
Option premiums		2,377,587		(25,158	)		2,352,429			21.8		369,354			216,517			1,026,690			171,144			31,805			536,919			2,303,921
BM&F Bovespa		1,443,557		(139,957	)		1,303,600			12.2		294,898			73,394			876,850			43,089			15,369			-			1,629,125
Financial institutions		383,503		42,489			425,992			3.9		31,665			135,847			114,634			121,439			15,935			6,472			233,490
Companies		549,810		72,098			621,908			5.7		42,280			6,858			35,206			6,616			501			530,447			441,306
Individuals		717		212			929			0,0		511			418			-			-			-			-			-
Forwards		4,002,621		712			4,003,333			36.7		2,207,519			765,610			70,126			15,165			152,476			792,437			1,562,148
BM&F Bovespa		973,337		1,200			974,537			8.9		119,546			783,952			70,126			913			-			-			588
Financial institutions		2,070,120		(489	)		2,069,631			19.0		2,087,973			(18,342	)		-			-			-			-			332,743
Companies		959,164		1			959,165			8.8		-			-			-			14,252			152,476			792,437			1,228,806
Individuals		-		-			-			-		-			-			-			-			-			-			11
Swaps – Adjustment receivable		2,146,926		789,187			2,936,113			26.9		139,238			308,816			513,275			287,511			903,955			783,318			3,280,613
BM&F Bovespa		187,964		103,656			291,620			2.7		552			8,391			8,669			28,972			113,219			131,817			275,414
Financial institutions		492,155		368,115			860,270			7.9		63,862			121,800			294,581			77,007			171,743			131,277			969,342
Companies		1,452,697		315,782			1,768,479			16.2		73,771			176,956			202,139			180,535			616,077			519,001			2,025,860
Individuals		14,110		1,634			15,744			0.1		1,053			1,669			7,886			997			2,916			1,223			9,997
Credit derivatives		224,118		(10,293	)		213,825			1.9		95,179			42,183			72,360			826			861			2,416			22,782
Financial institutions		17,256		(3,969	)		13,287			0.1		903			4,405			3,876			826			861			2,416			22,782
Companies		206,862		(6,324	)		200,538			1.8		94,276			37,778			68,484			-			-			-			-
Forwards		582,432		1,451			583,883			5.3		69,760			265,439			193,011			43,073			5,408			7,192			305,175
Financial institutions		511,921		1,449			513,370			4.7		55,199			248,391			166,252			33,723			4,275			5,530			223,819
Companies		70,014		2			70,016			0.6		14,391			16,780			26,716			9,334			1,133			1,662			81,250
Individuals		497		-			497			0,0		170			268			43			16			-			-			106
Swaps with target flow		130,165		241			130,406			1.2		-			4			130,234			168			-			-			243,486
Swaps – companies		-		-			-			-		-			-			-			-			-			-			47,211
Target flow of Swap – Companies		130,165		241			130,406			1.2		-			4			130,234			168			-			-			196,275
Other		669,553		(7,059	)		662,494			6.0		57,561			61,872			81,442			194,383			16,468			250,768			649,063
BM&F Bovespa		-		286			286			0,0		286			-			-			-			-			-			301
Financial institutions		440,674		(23,788	)		416,886			3.8		7,721			5,137			6,480			140,307			6,882			250,359			201,843
Companies		227,672		16,538			244,210			2.2		49,554			55,623			74,962			54,076			9,586			409			446,919
Individuals		1,207		(95	)		1,112			0,0		-			1,112			-			-			-			-			-
TOTAL		10,162,922		737,713			10,900,635			100.0		2,929,395			1,704,574			2,088,192			721,630			1,091,427			2,365,417			8,484,582
% per maturity term												26.9	%		15.6	%		19.2	%		6.6	%		10.0	%		21.7	%
Total – 09/30/2009		7,868,729		615,853			8,484,582			100.0		2,313,244			1,303,992			1,648,058			1,314,786			661,634			1,242,868
% per maturity term												27.3	%		15.4	%		19.4	%		15.5	%		7.8	%		14.6	%

	09/30/2010																													09/30/2009
	Cost			Adjustment to market value (in results / stockholders' equity)			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
LIABILITIES
Option premiums		(2,160,467	)		221,755			(1,938,712	)		21.4		(248,422	)		(270,557	)		(924,209	)		(361,303	)		(130,135	)		(4,086	)		(2,288,591	)
BM&F Bovespa		(1,561,725	)		153,336			(1,408,389	)		15.5		(224,205	)		(139,992	)		(757,255	)		(184,393	)		(102,216	)		(328	)		(1,772,048	)
Financial institutions		(499,684	)		40,468			(459,216	)		5.1		(22,117	)		(109,296	)		(129,815	)		(172,704	)		(21,678	)		(3,606	)		(465,632	)
Companies		(96,755	)		27,915			(68,840	)		0.8		(2,100	)		(21,149	)		(37,139	)		(2,059	)		(6,241	)		(152	)		(50,911	)
Individuals		(2,303	)		36			(2,267	)		0,0		-			(120	)		-			(2,147	)		-			-			-
Forwards		(3,047,627	)		489			(3,047,138	)		33.6		(2,087,973	)		-			-			(14,252	)		(152,476	)		(792,437	)		(1,561,606	)
Financial institutions		(2,088,463	)		490			(2,087,973	)		23.0		(2,087,973	)		-			-			-			-			-			(332,743	)
Companies		(959,164	)		(1	)		(959,165	)		10.6		-			-			-			(14,252	)		(152,476	)		(792,437	)		(1,228,806	)
Individuals		-			-			-			-		-			-			-			-			-			-			(57	)
Swaps – difference payable		(2,020,445	)		(776,522	)		(2,796,967	)		30.8		(118,673	)		(762,894	)		(95,712	)		(193,295	)		(667,487	)		(958,906	)		(2,303,461	)
BM&F Bovespa		(287,503	)		(172,575	)		(460,078	)		5.1		(13,674	)		(9,630	)		(36,663	)		(41,923	)		(172,142	)		(186,046	)		(346,365	)
Financial institutions		(415,871	)		(577,437	)		(993,308	)		10.9		(41,263	)		(34,722	)		4,520			(90,631	)		(214,311	)		(616,901	)		(875,547	)
Companies		(1,253,570	)		(52,001	)		(1,305,571	)		14.4		(63,511	)		(717,145	)		(52,757	)		(44,917	)		(272,102	)		(155,139	)		(1,028,862	)
Individuals		(63,501	)		25,491			(38,010	)		0.4		(225	)		(1,397	)		(10,812	)		(15,824	)		(8,932	)		(820	)		(52,687	)
Credit derivatives		(148,092	)		2,848			(145,244	)		1.6		(819	)		(7,579	)		(10,530	)		(1,589	)		(3,048	)		(121,679	)		(124,218	)
Financial institutions		(148,070	)		2,829			(145,241	)		1.6		(819	)		(7,579	)		(10,527	)		(1,589	)		(3,048	)		(121,679	)		(124,182	)
Companies		(22	)		19			(3	)		0,0		-			-			(3	)		-			-			-			(36	)
Forwards		(485,945	)		(18	)		(485,963	)		5.3		(111,080	)		(114,296	)		(98,959	)		(118,656	)		(25,944	)		(17,028	)		(351,068	)
BM&F Bovespa		(7	)		-			(7	)		0,0		-			-			(7	)		-			-			-			-
Financial institutions		(364,426	)		-			(364,426	)		4.0		(68,399	)		(89,362	)		(76,268	)		(93,760	)		(21,509	)		(15,128	)		(108,501	)
Companies		(120,797	)		(18	)		(120,815	)		1.3		(42,681	)		(24,911	)		(22,684	)		(24,645	)		(4,354	)		(1,540	)		(241,579	)
Individuals		(715	)		-			(715	)		0,0		-			(23	)		-			(251	)		(81	)		(360	)		(988	)
Swaps with target flow		(11,792	)		(2,110	)		(13,902	)		0.2		(93	)		-			(13,809	)		-			-			-			(236,667	)
Swaps		(11,792	)		(2,110	)		(13,902	)		0.2		(93	)		-			(13,809	)		-			-			-			(88,981	)
Companies		(7	)		(86	)		(93	)		0,0		(93	)		-			-			-			-			-			(88,981	)
Individuals		(11,785	)		(2,024	)		(13,809	)		0.2		-			-			(13,809	)		-			-			-			-
Target flow of swap – foreign currency		-			-			-			-		-			-			-			-			-			-			(147,686	)
Financial institutions		-			-			-			-		-			-			-			-			-			-			(32,994	)
Companies		-			-			-			-		-			-			-			-			-			-			(114,692	)
Other		(617,327	)		(31,647	)		(648,974	)		7.1		(51,511	)		(102,882	)		(76,645	)		(227,834	)		(78,680	)		(111,422	)		(592,792	)
BM&F Bovespa		-			(293	)		(293	)		0,0		(105	)		(188	)		-			-			-			-			(422	)
Financial institutions		(205,098	)		(57,463	)		(262,561	)		2.9		(1,411	)		(20,852	)		(19,253	)		(110,697	)		(4,699	)		(105,649	)		(113,458	)
Companies		(411,744	)		26,108			(385,636	)		4.2		(49,546	)		(81,842	)		(57,357	)		(117,137	)		(73,981	)		(5,773	)		(418,867	)
Individuals		(485	)		1			(484	)		0,0		(449	)		-			(35	)		-			-			-			(60,045	)
TOTAL		(8,491,695	)		(585,205	)		(9,076,900	)		100.0		(2,618,571	)		(1,258,208	)		(1,219,864	)		(916,929	)		(1,057,770	)		(2,005,558	)		(7,458,403	)
% per maturity term													28.8	%		13.9	%		13.4	%		10.1	%		11.7	%		22.1	%
Total – 09/30/2009		(6,704,725	)		(753,678	)		(7,458,403	)		100.0		(2,222,490	)		(1,228,773	)		(1,255,194	)		(855,677	)		(813,505	)		(1,082,764	)
% per maturity term													29.8	%		16.5	%		16.8	%		11.5	%		10.9	%		14.5	%

In ITAÚ UNIBANCO HOLDING recorded at market value swap contracts involving foreign currency, interbank market and indices totaling R$ (2,596) in liability position (R$ (881) at 09/30//2009), distributed as follows: R$ (2,596) from 31 to 180 days (R$ (25) at 09/30//2009), (R$ (25) at 09/30//2009) from 181 to 365 day,  and (R$ (831) over 365 days at 09/30//2009).

III-Derivatives by notional amount

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

	09/30/2010
	Futures		Swaps		Options		Forwards		Credit derivatives		Forwards		Swap with target flow		Target flow of swap		Other
BM&F Bovespa		196,407,502		13,233,042		2,371,167,129		991,966		-		4,115		-		-		54,125
Over-the-counter market		141,472,556		50,825,841		40,719,172		3,206,093		5,077,756		20,412,650		137,235		1,313,749		16,191,342
Financial institutions		141,472,556		22,934,285		36,310,642		2,246,346		4,311,978		16,158,290		-		-		4,218,958
Companies		-		26,816,110		4,293,809		959,747		765,778		4,225,023		6,016		1,313,749		11,967,447
Individuals		-		1,075,446		114,721		-		-		29,337		131,219		-		4,937
Total		337,880,058		64,058,883		2,411,886,301		4,198,059		5,077,756		20,416,765		137,235		1,313,749		16,245,467
Total – 09/30/2009		196,897,503		78,540,063		1,377,138,277		1,563,600		5,641,746		12,710,194		1,218,751		3,746,618		12,757,277

IV - Credit derivatives

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

	Credit Risk Amount
	09/30/2010			09/30/2009
Transferred		(2,018,605	)		(2,331,167	)
Credit swaps whose underlying assets are:
Securities		(2,018,605	)		(1,165,992	)
Total return swaps whose underlying assets are:
Securities		-			(1,165,175	)
Received		3,059,153			2,686,908
Credit swaps whose underlying assets are:
Securities		3,050,968			2,686,908
Total return swaps whose underlying assets are:
Securities		8,185			-
Total		1,040,548			355,741

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

According to CMN Resolution No. 3,490, which became effective on July 1, 2008 (Note 3), the effect of the calculation of the Required Referential Equity amounts to R$ 170,950 at September 30, 2010  (R$ 139,366 at September 30, 2009).

V - Accounting hedge

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

To protect the future cash flows of debt against exposure to variable interest rate (CDI), at September 30, 2009 ITAÚSA CONSOLIDATED negotiated DI Futures agreements at BM&FBOVESPA with maturity between 2009 and 2017 in the amount of R$ 23,729,450 (R$ 10,099,463 at 09/302009). To protect the future cash flows of debt against exposure to variable interest rate (LIBOR), at September 30, 2009 ITAÚ UNIBANCO HOLDING negotiated SWAP contracts with maturity in 2015 in the amount of R$ 665,943 (R$ 698,921 at 09/30/2009). These derivative financial instruments gave rise to adjustment to market value net of tax effects recorded in stockholders’ equity of (R$ 80,064) (R$ (170,867) at 09/30/2009), of which (R$ (49,807) R$ (158,850) at 09/30/2009), refers to CDB and R$ (30,257) (R$ 12,017 at 09/30/2009) refers to Redeemable Preferred shares. The hedged items total R$ 24,927,277 (R$ 10,366,649 at 09/30/2009), of which R$ 24,261,334 (R$ 9,667,728 at 09/30/2009) are CDB with maturities between 2010 and 2017 and R$ 665,943 (R$ 698,921 at 09/30/2009) are SWAPS of redeemable preferred shares with maturity in 2015.

The gains or losses related to the accounting hedge of cash flows that we expect be reclassified from Stockholders’ Equity into Results in the following 12 months amount to R$ 81,845 (R$ 116,567 at 09/30/2009).

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

b) The swap operations contracted in a negotiation associated with the funding and/or investment in the amount of R$ 179,615 (R$ 603,612 at 09/30/2009) are recorded at amounts restated in accordance with variations occurred in respective ratios (“curve”) and are not valued at their market value, as permitted by BACEN Circular No. 3,150/02.

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

	01/01 to 09/30/2010			01/01 to 09/30/2009
Swap		116,370			1,836,657
Forwards		25,173			(524,939	)
Futures		1,078,011			6,497,700
Options		375,630			425,248
Credit derivatives		48,542			75,691
Foreign exchange variation on investments abroad		(770,682	)		(4,659,887	)
Other		(222,612	)		(158,306	)
Total		650,432			3,492,164

i)  Changes in adjustment to market value for the period

	01/01 to 09/30/2010			01/01 to 09/30/2009
Opening balance		608,422			(2,799,446	)
Adjustments with impact on:
Results		302,188			2,573,210
Trading securities		115,782			(120,691	)
Derivative financial instruments		186,406			2,693,901
Stockholders’ equity		297,445			855,403
Available-for-sale		288,896			872,841
Accounting hedge - Derivative financial instruments		8,549			(17,438	)
Futures		56,304			(17,438	)
Swap		(47,755	)		-
Closing balance		1,208,055			629,167
Adjustment to market value		1,208,055			629,167
Trading securities		440,776			330,637
Available-for-sale securities		704,756			713,484
Derivative financial instruments		62,523			(414,954	)
Trading securities		207,173			(137,825	)
Accounting hedge		(144,650	)		(277,129	)
Futures		(89,985	)		(258,925	)
Swap		(54,665	)		(18,204	)

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

	09/30/2010		09/30/2009
Adjustment of available-for-sale securities – stockholders’ equity		704,756		713,484
Adjustment to held-to-maturity securities (*)		608,479		419,970
Total unrealized gain		1,313,235		1,133,454

(*) Includes the amount of R$ 13,449 (R$ 16,604 at 09/30/2009) regarding the adjustment to market value of securities reclassified up to December 31, 2003, not recognized in net income.

j)   Sensitivity analysis (TRADING AND BANKING PORTFOLIOS)

According to the criteria for classification of operations provided for by BACEN Resolution No. 3,464/07 and Circular No. 3,354/07, and the New Capital Accord – Basel II, the financial instruments of ITAÚ UNIBANCO HOLDING S.A., included all transactions with derivatives, are separated in Trading and Banking portfolios.

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

The trading portfolio consists of all transactions, including those with derivatives, held with the intention of being traded or to provide hedge to the other financial instruments of this strategy. These are transactions for resale, obtaining benefits from price movements, actual or expected or conduction of arbitrage. This portfolio has strict limits set by the risk areas and is daily controlled.

		Amounts in R$ (000)
Tradíngportfolio		09/30/2010(*)
		Scenarios
Riskfactors	Riskofvariationin:	I			II			III
Fixed rate	Fixed rate in reais		(500	)		(12,426	)		(24,721	)
Foreign exchange coupons	Rates of foreign exchange coupon		40			(734	)		(936	)
Foreign currency	Exchange variation		3,781			(94,515	)		(189,030	)
Price indices	Rates of price indices coupon		(535	)		(13,230	)		(26,178	)
Long-term interest rate	Rates of TJLP coupon		85			(2,150	)		(4,249	)
Reference rate	Rates of TR coupon		325			(8,200	)		(16,510	)
Variable income	Share price		7,820			(195,505	)		(391,010	)
	Total without correlation		11,016			(326,760	)		(652,634	)
	Total with correlation		7,158			(212,329	)		(424,081	)

(*) Amounts net of tax effects.

The banking portfolio comprises transactions that do not fit into the trading portfolio concept and are typically banking transactions of the institution’s business lines and their respective hedges, which may or not be carried our with derivative financial instruments. Accordingly, the derivatives of this portfolio are not used for speculation purposes, not generating significant economic risks to the institution.

		Amounts in R$ (000)
Trading and Banking portfolio  Exposures		09/30/2010(*)
		Scenarios
Riskfactors	Riskofvariationin:	I			II			III
Fixed rate	Fixed rate in reais		(3,418	)		(85,153	)		(169,721	)
Foreign exchange coupons	Rates of foreign exchange coupon		1,765			(45,542	)		(94,037	)
Foreign currency	Exchange variation		6,252			(156,301	)		(312,603	)
Price indices	Rates of price indices coupon		(1,335	)		(33,076	)		(65,548	)
Long-term interest rate	Rates of TJLP coupon		83			(2,194	)		(4,337	)
Reference rate	Rates of TR coupon		65			(13,805	)		(27,710	)
Variable income	Share price		8,241			(206,036	)		(412,072	)
	Total without correlation		11,653			(542,107	)		(1,086,027	)
	Total with correlation		7,572			(352,261	)		(705,701	)

(*) Amounts net of tax effects.

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

Scenario II: Shocks at approximately 25% in the portfolio of September 30, 2009, considering the largest resulting losses per risk factor;

Scenario III: Shocks at approximately 50% in the portfolio of September 30, 2009, considering the largest resulting losses per risk factor.

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

NOTE 8 - LOAN, LEASE AND OTHER CREDIT OPERATIONS

a) Composition of the portfolio with credit granting characteristics

I – By type of operations and risk level

	09/30/2010																				09/30/2009
Risk levels	AA		A		B		C		D		E		F		G		H		Total		Total
Loan operations		41,963,399		94,542,765		35,688,901		11,272,827		7,043,276		3,395,479		1,983,783		1,223,791		6,498,740		203,612,961		157,378,959
Loans and discounted trade receivables		21,016,528		43,397,467		23,045,745		8,943,489		6,405,406		2,864,931		1,776,130		1,072,200		5,925,149		114,447,045		99,193,601
Financing		15,714,663		39,007,254		10,851,171		2,020,652		428,766		299,785		170,840		115,263		472,877		69,081,271		43,258,031
Farming and agribusiness financing		1,876,662		2,172,762		939,980		61,508		79,468		99,791		3,560		1,889		32,937		5,268,557		4,928,730
Real estate financing		3,355,546		9,965,282		852,005		247,178		129,636		130,972		33,253		34,439		67,777		14,816,088		9,998,597
Lease operations		1,851,909		27,575,715		5,162,249		2,487,070		989,716		485,877		357,931		307,908		1,129,845		40,348,220		48,428,264
Credit card operations		-		11,841,741		10,659,719		2,437,064		2,239,708		672,888		417,659		360,489		2,615,923		31,245,191		26,013,935
Advance on exchange contracts (1)		776,916		1,428,159		740,977		176,145		52,023		39,941		39,266		110		18,819		3,272,356		4,936,287
Other sundry receivables (2)		15,045		81,349		342,294		16,804		12,421		1,980		1,340		1,682		83,173		556,088		341,887
Total operations with credit granting characteristics		44,607,269		135,469,729		52,594,140		16,389,910		10,337,144		4,596,165		2,799,979		1,893,980		10,346,500		279,034,816		237,099,332
Endorsements and sureties (3)																				34,154,632		31,594,253
Total with endorsements and sureties		44,607,269		135,469,729		52,594,140		16,389,910		10,337,144		4,596,165		2,799,979		1,893,980		10,346,500		313,189,448		268,693,585
Total – 09/30/2009		35,269,634		111,687,620		45,737,598		14,762,212		8,963,073		4,533,960		2,640,263		1,920,021		11,584,951		237,099,332

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

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

(3) Recorded in Memorandum Accounts.

II - By maturity and risk level

	09/30/2010																													09/30/2009
	AA		A			B			C			D			E			F			G			H			Total			Total
	OVERDUE OPERATIONS (1) (2)
Falling due installments		-		-			2,488,274			2,104,619			1,565,649			1,170,668			1,047,634			579,860			2,523,714			11,480,418			11,900,857
01 to 30		-		-			111,317			103,038			90,745			62,008			48,862			38,673			184,382			639,025			708,580
31 to 60		-		-			95,874			92,006			76,598			54,731			43,214			32,454			147,061			541,938			598,557
61 to 90		-		-			100,859			93,165			77,346			56,642			42,869			32,823			146,153			549,857			603,332
91 to 180		-		-			299,994			260,944			211,386			152,654			115,153			89,920			394,772			1,524,823			1,661,010
181 to 365		-		-			495,599			452,962			335,958			255,257			187,759			145,574			602,586			2,475,695			2,705,580
Over 365		-		-			1,384,631			1,102,504			773,616			589,376			609,777			240,416			1,048,760			5,749,080			5,623,798
Overdue installments		-		-			438,779			586,837			1,091,278			982,737			839,809			822,996			5,626,873			10,389,309			12,395,886
01 to 14		-		-			21,771			49,811			35,691			44,424			21,746			14,663			70,052			258,158			254,060
15 to 30		-		-			379,206			143,718			315,539			81,362			48,384			33,038			152,218			1,153,465			1,350,830
31 to 60		-		-			37,802			363,001			326,110			176,146			93,069			59,335			265,336			1,320,799			1,475,529
61 to 90		-		-			-			21,089			377,523			133,810			121,400			69,344			260,969			984,135			1,256,282
91 to 180		-		-			-			9,218			36,415			509,099			503,596			588,128			1,189,281			2,835,737			3,476,641
181 to 365		-		-			-			-			-			37,896			51,614			58,488			3,478,549			3,626,547			4,403,816
Over 365		-		-			-			-			-			-			-			-			210,468			210,468			178,728
SUBTOTAL		-		-			2,927,053			2,691,456			2,656,927			2,153,405			1,887,443			1,402,856			8,150,587			21,869,727			24,296,743
SPECIFIC ALLOWANCE		-		-			(29,270	)		(80,743	)		(265,693	)		(646,022	)		(943,722	)		(981,999	)		(8,150,587	)		(11,098,036	)		(12,817,853	)
SUBTOTAL - 09/30/2009		-		-			3,455,047			2,828,396			2,549,248			2,339,349			1,805,541			1,600,703			9,718,459			24,296,743
	NON-OVERDUE OPERATIONS
Falling due installments		44,510,069		134,932,404			49,189,044			13,504,429			7,458,156			2,388,437			891,119			483,514			2,144,847			255,502,019			211,011,876
01 to 30		5,121,493		15,221,893			11,992,163			4,104,743			2,248,401			441,149			225,379			169,222			565,877			40,090,320			39,264,099
31 to 60		2,909,133		10,470,576			5,521,951			1,443,533			745,372			150,852			76,903			31,412			237,805			21,587,537			18,693,193
61 to 90		3,085,473		7,464,526			4,168,153			1,215,620			514,429			118,139			41,034			22,403			123,098			16,752,875			15,229,477
91 to 180		5,150,002		15,206,368			6,506,714			1,457,168			843,447			277,775			117,147			30,236			243,866			29,832,723			25,250,492
181 to 365		5,733,085		21,239,168			7,245,772			1,710,864			1,010,627			329,004			141,125			40,390			306,669			37,756,704			32,740,268
Over 365		22,510,883		65,329,873			13,754,291			3,572,501			2,095,880			1,071,518			289,531			189,851			667,532			109,481,860			79,834,347
Overdue up to 14 days		97,200		537,325			478,043			194,025			222,061			54,323			21,417			7,610			51,066			1,663,070			1,790,713
SUBTOTAL		44,607,269		135,469,729			49,667,087			13,698,454			7,680,217			2,442,760			912,536			491,124			2,195,913			257,165,089			212,802,589
GENERIC ALLOWANCE		-		(677,349	)		(496,671	)		(410,954	)		(768,021	)		(732,828	)		(456,268	)		(343,787	)		(2,195,913	)		(6,081,791	)		(5,146,420	)
SUBTOTAL - 09/30/2009		35,269,634		111,687,620			42,282,551			11,933,816			6,413,825			2,194,611			834,722			319,318			1,866,492			212,802,589
GRAND TOTAL		44,607,269		135,469,729			52,594,140			16,389,910			10,337,144			4,596,165			2,799,979			1,893,980			10,346,500			279,034,816			237,099,332
EXISTING ALLOWANCE		-		(677,349	)		(1,371,397	)		(1,637,352	)		(3,100,109	)		(2,297,623	)		(1,959,706	)		(1,893,791	)		(10,346,500	)		(23,283,827	)		(24,068,273	)
Minimum allowance required (3)		-		(677,349	)		(525,941	)		(491,697	)		(1,033,714	)		(1,378,850	)		(1,399,990	)		(1,325,786	)		(10,346,500	)		(17,179,827	)		(17,964,273	)
Additional allowance (4)		-		-			(845,456	)		(1,145,655	)		(2,066,395	)		(918,773	)		(559,716	)		(568,005	)		-			(6,104,000	)		(6,104,000	)
GRAND TOTAL  09/30/2009		35,269,634		111,687,620			45,737,598			14,762,212			8,963,073			4,533,960			2,640,263			1,920,021			11,584,951			237,099,332
EXISTING ALLOWANCE		-		(918,721	)		(1,367,554	)		(1,474,745	)		(2,688,025	)		(2,266,527	)		(1,847,921	)		(1,919,829	)		(11,584,951	)		(24,068,273	)
Minimum allowance required (3)		-		(558,438	)		(457,376	)		(442,866	)		(896,307	)		(1,360,188	)		(1,320,132	)		(1,344,015	)		(11,584,951	)		(17,964,273	)
Additional allowance (4)		-		(360,283	)		(910,178	)		(1,031,879	)		(1,791,718	)		(906,339	)		(527,789	)		(575,814	)		-			(6,104,000	)

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

(2) The balance of non-accrual operations amounts to R$ 14,231,336 (R$ 16,639,451 at 09/30/2009);

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

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

III – By business sector

	09/30/2010		%		09/30/2009		%
PUBLIC SECTOR		1,423,049		0.5		1,486,427		0.6
Generation, transmission and distribution of electric energy		649,446		0.2		876,812		0.4
Chemical and petrochemical		301,988		0.1		166,320		0.1
Other		471,615		0.2		443,295		0.2
PRIVATE SECTOR		277,611,767		99.5		235,612,905		99.4
COMPANIES		152,795,579		54.8		128,043,302		54.0
INDUSTRY AND COMMERCE		79,315,418		28.4		67,598,779		28.5
Food and beverage		13,405,968		4.8		10,722,940		4.5
Autoparts and accessories		3,568,298		1.3		2,531,191		1.1
Agribusiness capital assets		793,234		0.3		671,833		0.3
Industrial capital assets		4,694,063		1.7		3,771,061		1.6
Pulp and paper		2,261,346		0.8		1,807,861		0.8
Distribution of fuels		1,777,394		0.6		1,578,025		0.7
Electrical and electronic		6,345,096		2.3		5,427,479		2.3
Pharmaceuticals		1,806,438		0.6		1,567,394		0.7
Fertilizers, insecticides and crop protection		1,244,590		0.4		1,409,618		0.6
Tobacco		473,006		0.2		534,234		0.2
Import and export		1,700,023		0.6		1,559,009		0.7
Hospital care materials and equipment		878,414		0.3		680,852		0.3
Construction material		4,220,424		1.5		3,278,437		1.4
Steel and metallurgy		6,224,427		2.2		6,360,202		2.7
Wood and furniture		2,581,537		0.9		2,335,818		1.0
Chemical and petrochemical		5,590,130		2.0		5,110,302		2.2
Supermarkets		1,004,776		0.4		1,006,068		0.4
Light and heavy vehicles		5,793,034		2.1		5,458,407		2.3
Clothing		6,962,277		2.5		5,438,869		2.3
Other - Commerce		4,642,321		1.7		3,478,940		1.5
Other - Industry		3,348,622		1.2		2,870,239		1.2
SERVICES		57,543,933		20.6		46,090,886		19.4
Heavy construction (constructors)		3,297,010		1.2		2,952,008		1.2
Financial		5,827,962		2.1		3,732,047		1.6
Generation, transmission and distribution of electric energy		5,367,663		1.9		5,675,134		2.4
Holding company		3,188,169		1.1		2,962,751		1.2
Real estate agents		8,912,495		3.2		6,393,073		2.7
Media		2,510,269		0.9		2,291,268		1.0
Service companies		4,046,874		1.5		2,970,850		1.3
Health care		1,549,605		0.6		1,244,393		0.5
Telecommunications		792,166		0.3		1,208,221		0.5
Transportation		11,602,885		4.2		9,737,555		4.1
Other services		10,448,835		3.7		6,923,586		2.9
PRIMARY SECTOR		13,742,510		4.9		13,175,718		5.6
Agribusiness		11,458,928		4.1		11,368,652		4.8
Mining		2,283,582		0.8		1,807,066		0.8
OTHER COMPANIES		2,193,718		0.8		1,177,919		0.5
INDIVIDUALS		124,816,188		44.6		107,569,603		45.4
Credit cards		30,992,638		11.1		25,775,281		10.9
Consumer loans/overdraft		27,001,263		9.7		24,054,243		10.1
Real estate financing		9,555,098		3.4		7,069,546		3.0
Vehicles		57,267,189		20.5		50,670,533		21.4
GRAND TOTAL		279,034,816		100.0		237,099,332		100.0

b) Credit concentration

	09/30/2010				09/30/2009
Loan, lease and other credit operations (*)	Risk		% of Total		Risk		% of Total
Largest debtor		2,112,908		0.7		2,408,762		0.9
20 largest debtors		27,499,407		9.0		24,765,087		9.2
50 largest debtors		45,665,894		15.1		41,078,059		15.3
100 largest debtors		60,646,167		19.9		55,778,926		20.8

	09/30/2010				09/30/2009
Loan, lease and other credit operations and securities of companies and financial institutions (*)	Risk		% of Total		Risk		% of Total
Largest debtor		4,283,282		1.2		3,847,132		1.3
20 largest debtors		43,126,619		12.2		37,121,470		12.4
50 largest debtors		68,220,263		19.5		59,741,281		19.9
100 largest debtors		87,911,733		25.1		80,244,351		26.7

(*) The amounts include endorsements and sureties.

c) Changes in allowance for loan losses

	01/01 to 09/30/2010			01/01 to 09/30/2009
Opening balance		(24,051,873	)		(19,972,155	)
Net increase for the period		(11,954,420	)		(12,382,541	)
Required by Resolution No. 2,682/99		(11,954,420	)		(14,069,541	)
Additional (3)		-			1,687,000
Write-Off		12,722,466			8,286,423
Closing balance		(23,283,827	)		(24,068,273	)
Specific allowance (1)		(11,098,036	)		(12,817,853	)
Generic allowance (2)		(6,081,791	)		(5,146,420	)
Additional allowance (3)		(6,104,000	)		(6,104,000	)

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

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

(3) Refers to the provision in excess of the minimum required by CMN Resolution No.2,682, of December 12, 1999, recognized within the prudential criteria adopted by management in accordance with good banking practice, in order to enable the absorption of possible increases in default arising from a strong reversal of the economic cycle.

As from December 31, 2008, considering the economic scenario and the uncertainties related to it, the criteria for recognition of the additional allowance for loan losses were revised, including the portion related to risks associated to a more pessimistic scenario. Over 2009, the effects of the crisis were partially consummated, giving rise to an increase in the required regulatory allowance  and reduction in the additional allowances for loan losses regarding the portfolio.

At September 30, 2010, the balance of the allowance in relation to the loan portfolio is equivalent to 8.3% (10.2% at 09/30/2009).

d)  Recovery and renegotiation of credits

I - Composition of the result of allowance for loan losses

	01/01 to 09/30/2010			01/01 to 09/30/2009
Expenses for allowance for loan losses		(11,954,420	)		(12,382,541	)
Income from recovery of credits written off as loss		2,946,276			1,440,205
Result of allowance for loan losses		(9,008,144	)		(10,942,336	)

II - Renegotiated credits

	09/30/2010			09/30/2009
Renegotiated credits		8,514,497			7,277,785
Allowance for loan losses		(4,048,779	)		(3,855,718	)
(%)		47.6			53.0

e) Restricted operations on assets

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

	09/30/2010						01/01 to 09/30/2010
		31 - 180	Over 365		Total		Income (expenses)
Restricted operations on assets
Loan operations		814		156,753		157,567		596
Liabilities - restricted operations on assets
Foreign borrowings through securities		806		156,753		157,559		597
Net revenue from restricted operations								1,193

At 09/30/2010, there were no balances in default.

f) Sales operations or transfers of financial assets

In compliance with Resolution No. 3,809, of October 28, 2009, the amount of sales operations or transfers of financial assets where the entity significantly retained the risks and benefits is R$ 38,560, composed exclusively of loan operations and receivables assigned with joint obligation.

NOTE 9 - FOREIGN EXCHANGE PORTFOLIO

	09/30/2010			09/30/2009
ASSETS – OTHER RECEIVABLES		20,570,549			35,722,645
Exchange purchase pending settlement – foreign currency		10,578,019			21,138,359
Bills of exchange and term documents – foreign currency		507			952
Exchange sale rights – local currency		10,474,794			14,906,180
(Advances received) – local currency		(482,771	)		(322,846	)
LIABILITIES – OTHER LIABILITIES (Note 2a)		21,398,733			36,721,988
Exchange sales pending settlement – foreign currency		10,406,177			15,819,821
Liabilities from purchase of foreign currency – local currency		10,987,996			20,897,773
Other		4,560			4,394
MEMORANDUM ACCOUNTS		500,428			381,844
Outstanding import credits – foreign currency		474,912			342,561
Confirmed export credits – foreign currency		25,516			39,283

NOTE 10 – FUNDING AND BORROWINGS AND ONLENDING

a) Summary

	09/30/2010												09/30/2009
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Deposits		101,225,589		13,923,586		13,816,012		65,951,463		194,916,650		43.2		189,089,392		48.5
Deposits received under securities repurchase agreements		56,429,962		16,980,704		13,972,800		68,252,613		155,636,079		34.5		126,664,456		32.4
Funds from acceptances and issuance of securities		4,651,467		8,585,692		2,088,451		8,053,711		23,379,321		5.2		18,537,605		4.7
Borrowings and onlending		2,373,856		7,271,064		8,829,120		24,785,011		43,259,051		9.6		32,808,084		8.4
Subordinated debt (2)		61,127		9,110		892,817		32,720,415		33,683,469		7.5		23,471,568		6.0
TOTAL		164,742,001		46,770,156		39,599,200		199,763,213		450,874,570				390,571,105
% per maturity term		36.5		10.4		8.8		44.3
TOTAL – 09/30/2009		155,182,245		42,686,709		29,677,409		163,024,742		390,571,105
% per maturity term		39.7		10.9		7.6		41.8

(1) Funds obtained abroad through the sales to Brazilian Diversified Payment Rights Finance Company of rights related to the payment orders receivable abroad;

(2) Includes R$ 665,973 (R$ 698,957 at 09/30/2009) of Redeemable Preferred Shares classified under Minority Interest in Balance Sheet.

b) Deposits

	09/30/2010												09/30/2009
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Demand deposits		28,055,643		-		-		-		28,055,643		14.4		22,707,717		12.0
Savings accounts		54,874,272		-		-		-		54,874,272		28.2		44,146,423		23.3
Interbank		426,577		486,765		288,867		90,515		1,292,724		0.7		2,231,691		1.2
Time deposits		16,872,322		13,436,821		13,527,145		65,860,948		109,697,236		56.3		118,969,314		63.0
Other deposits		996,775		-		-		-		996,775		0.5		1,034,247		0.5
TOTAL		101,225,589		13,923,586		13,816,012		65,951,463		194,916,650				189,089,392
% per maturity term		51.9		7.1		7.1		33.8
TOTAL – 09/30/2009		87,280,017		15,823,478		11,654,821		74,331,076		189,089,392
% per maturity term		46.1		8.4		6.2		39.3

At September 30, 2010, ITAÚ UNIBANCO’s portfolio is composed of interbank deposits in the amount of R$ 3,260,392 (R$ 880,795 at September 30, 2009) with maturity over 365 days.

c) Deposits received under securities repurchase agreements

	09/30/2010												09/30/2009
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Own portfolio		16,981,230		16,444,853		13,734,313		57,577,240		104,737,636		67.3		68,870,686		54.4
Government securities		8,468,726		330,512		9,072		4,511		8,812,821		5.7		6,029,555		4.8
Private securities		-		-		108,596		-		108,596		0.1		-		0.0
Own issue		2,778,280		16,069,319		13,608,054		57,336,553		89,792,206		57.6		59,952,498		47.3
Foreign		5,734,224		45,022		8,591		236,176		6,024,013		3.9		2,888,633		2.3
Third-party portfolio		39,308,732		-		22,403		123,614		39,454,749		25.4		53,635,820		42.3
Free portfolio		140,000		535,851		216,084		10,551,759		11,443,694		7.4		4,157,950		3.3
TOTAL		56,429,962		16,980,704		13,972,800		68,252,613		155,636,079				126,664,456
% per maturity term		36.3		10.9		9.0		43.8
TOTAL – 09/30/2009		63,797,223		11,450,865		10,930,236		40,486,132		126,664,456
% per maturity term		50.4		9.0		8.6		32.0

d) Funds from acceptance and issuance of securities

	09/30/2010												09/30/2009
	0-30		31-180		181-365		Over 365		Total		%		Total		%
FUNDS FROM BILLS:		2,598,361		7,180,484		642,705		1,033,738		11,455,288		49.0		9,174,601		49.5
Bills of real estate loans		809,927		6,279,969		126,982		94,600		7,311,478		31.3		6,225,168		33.6
Bills of credit related to agribusiness		1,768,790		871,333		489,401		116,101		3,245,625		13.9		2,439,966		13.2
Financial bills		-		-		-		555,074		555,074		2.4		-		-
Mortgage notes		10,258		12,514		26,322		267,963		317,057		1.3		509,467		2.7
Bills of exchange		9,386		16,668		-		-		26,054		0.1		-		-
DEBENTURES		1,149,147		322,133		51,390		1,106,433		2,629,103		11.2		2,888,706		15.6
FOREIGN BORROWINGS AND SECURITIES		903,959		1,083,075		1,394,356		5,913,540		9,294,930		39.8		6,474,298		34.9
Trade Related – Issued abroad - Structure Note Issued		78,015		410,107		396,810		744,270		1,629,202		7.0		771,287		4.1
Non-Trade Related		825,944		672,968		997,546		5,169,270		7,665,728		32.8		5,703,011		30.8
Issued abroad		825,944		672,968		997,546		5,169,270		7,665,728		32.8		5,703,011		30.8
Brazil Risk Note Programme		87,928		269,873		345,090		3,128,539		3,831,430		16.4		2,419,223		13.1
Fixed Rate Notes		515,050		28,763		564,759		444,260		1,552,832		6.6		1,086,052		5.9
Euro Medium Term Note Programme		16		515		19,953		505,185		525,669		2.3		1,014,266		5.5
Eurobonds		5,185		6,549		-		701,226		712,960		3.0		121,844		0.7
Euro Certificates of Deposits		209,599		365,824		63,394		26,290		665,107		2.9		654,922		3.5
Medium Term Note		268		991		41		142,801		144,101		0.6		194,121		1.0
Structure Note Issued		7,898		453		3,214		220,969		232,534		1.0		-		-
Other		-		-		1,095		-		1,095		0.0		212,583		1.1
TOTAL		4,651,467		8,585,692		2,088,451		8,053,711		23,379,321				18,537,605
% per maturity term		19.9		36.7		8.9		34.4
TOTAL – 09/30/2009		2,131,716		7,024,990		1,813,342		7,567,557		18,537,605
% per maturity term		11.5		37.9		9.8		40.8

e)  Borrowings and onlending

	09/30/2010												09/30/2009
	0-30		31-180		181-365		Over 365		Total		%		Total		%
BORROWINGS		1,761,687		4,441,338		5,362,366		2,831,609		14,397,000		33.3		12,146,646		37.0
Domestic		634,480		765,747		371,169		56,094		1,827,490		4.2		738,198		2.2
Foreign (*)		1,127,207		3,675,591		4,991,197		2,775,515		12,569,510		29.1		11,408,448		34.8
ONLENDING		612,169		2,829,726		3,466,754		21,953,402		28,862,051		66.7		20,661,438		63.0
Domestic – official institutions		612,169		2,823,833		3,461,809		21,884,366		28,782,177		66.5		20,391,819		62.2
BNDES		244,333		1,019,410		1,322,800		7,555,065		10,141,608		23.4		9,608,599		29.3
FINAME		362,082		1,700,308		2,077,134		14,006,488		18,146,012		41.9		10,207,460		31.1
Other		5,754		104,115		61,875		322,813		494,557		1.1		575,760		1.8
Foreign		-		5,893		4,945		69,036		79,874		0.2		269,619		0.8
TOTAL		2,373,856		7,271,064		8,829,120		24,785,011		43,259,051				32,808,084
% per maturity term		5.5		16.8		20.4		57.3
TOTAL – 09/30/2009		1,959,968		7,226,063		5,278,974		18,343,079		32,808,084
% per maturity term		6.0		22.0		16.1		55.9

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

f) Subordinated debt

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

	09/30/2010														09/30/2009
	0-30		31-180	181-365		Over 365			Total			%			Total			%
CDB		-	-	-			25,158,257			25,158,257			74.7			20,867,529			88.9
Financial bills		-	-	-			2,395,186			2,395,186			7.1			-			-
Euronotes		48,435	9,110	893,608			3,386,473			4,337,626			12.9			899,943			3.8
Bonds		-	-	-			303,598			303,598			0.9			128,567			0.5
Eurobonds		12,692	-	-			847,100			859,792			2.6			902,371			3.8
(-) Transaction costs incurred (Note 4b)		-	-	(822	)		(36,141	)		(36,963	)		(0.1	)		(25,799	)		(0.1	)
TOTAL OTHER LIABILITIES		61,127	9,110	892,786			32,054,473			33,017,496						22,772,611
Redeemable preferred shares		-	-	31.0			665,942			665,973			2.0			698,957			3.1
GRAND TOTAL		61,127	9,110	892,817			32,720,415			33,683,469						23,471,568
% per maturity term		0.2	0.0	2.7			97.1
TOTAL – 09/30/2009		13,321	1,161,313	36			22,296,898			23,471,568
% per maturity term		0.1	4.9	0.0			95.0

Description
Name of security	Issue	Maturity	Return p.a.			Principal R$
Subordinated euronotes	2nd half of 2001	August 2011		10.00	%		457,465
Subordinated euronotes	August 2001	August 2011		4.25	%		625,008
Subordinated CDB	March 2007	April 2012	103.5% of CDI				5,000,000
Subordinated CDB	May 2007	May 2012	104% of CDI				1,406,000
Subordinated CDB	July 2007	July 2012	CDI + 0.38%				422,000
Subordinated CDB	August 2007	August 2012	CDI + 0.38%				200,000
Subordinated CDB	October 2007	October 2012	IGPM + 7.31%				160,850
Subordinated CDB	October 2007	October 2012	IGPM + 7.35%				130,000
Subordinated CDB	October 2007	October 2012	103.8% of CDI				93,000
Subordinated CDB	October 2007	October 2012	CDI + 0.45%				450,000
Subordinated CDB	November 2007	November 2012	CDI + 0.35%				300,000
Subordinated CDB	December 2002	December 2012	102.5% of CDI				200,000
Subordinated CDB	December 2002	December 2012	102% of CDI				20,000
Subordinated CDB	January 2008	February 2013	CDI + 0.50%				880,000
Subordinated CDB	February 2008	February 2013	CDI + 0.50%				1,256,000
Subordinated CDB	1st quarter 2008	1st quarter 2013	CDI + 0.60%				817,310
Subordinated CDB	2nd quarter 2008	2nd quarter 2013	106% of CDI				29,000
Subordinated CDB	2nd quarter 2008	2nd quarter 2013	107% of CDI				19,401
Subordinated CDB	November 2003	November 2013	102% of CDI				40,000
Subordinated CDB	May 2007	May 2014	CDI + 0.35%				1,804,500
Subordinated CDB	August 2007	August 2014	CDI + 0.46%				50,000
Subordinated CDB	October 2007	October 2014	IGPM + 7.35%				33,200
Subordinated CDB	November 2008	October 2014	112% of CDI				1,000,000
Subordinated CDB	December 2007	December 2014	CDI + 0.60%				10,000
Preferred shares	December 2002	March 2015		3.04	%		1,388,841
Subordinated CDB	January 2010	November 2015	113% of CDI				50,000
Subordinated CDB	December 2005	December 2015		1.42	%		193,834
Subordinated CDB	3rd quarter 2008	3rd quarter 2015	119.8% of CDI				400,000
Subordinated CDB	January 2010	January 2016	114% of CDI				500,000
Subordinated CDB	1st quarter 2010	1st quarter 2016	110% of CDI				82,880
Subordinated CDB	1st quarter 2010	1st quarter 2016	111% of CDI				33,400
Subordinated CDB	1st quarter 2010	1st quarter 2016	113% of CDI				2,102,988
Subordinated CDB	March 2010	March 2016	IPCA + 7.33%				122,500
Subordinated financial bills	August 2010	August 2016	100% of CDI + 1.36%				365,000
Subordinated financial bills	September 2010	September 2016	112.5% of CDI				15,600
Subordinated CDB (1)	December 2006	December 2016	CDI + 0.47%				500,000
Subordinated financial bills	3rd quarter 2010	3rd quarter 2016	112% of CDI				1,808,400
Subordinated CDB	March 2010	March 2017	IPCA + 7.45%				366,830
Subordinated financial bills	September 2010	September 2017	IPCA + 7.2%				160,000
Subordinated financial bills	September 2010	September 2017	IPCA + 7.0%				20,000
Subordinated euronotes	April 2010	April 2020		6.20	%		1,730,600
Subordinated euronotes	September 2010	January 2021		5.75	%		1,694,200
Subordinated bonds	April 2008	April 2033		3.50	%		73,361
Subordinated bonds	October 2008	October 2033		4.50	%		67,766
Eurobonds -Perpetual Non-cumulative Junior Subordinated Securities (2)	July 2005	Not determined		8.70	%		1,195,250

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

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

At September 30, 2010, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Subordinated Euronotes with maturity from 0 to 30 days in the amount of R$ 48,435, from 91 to 180 in the amount of R$ 2,165, and over 365 days in the amount of R$ 3,364,059, totaling R$ 3,414,659.

NOTE 11 - INSURANCE, PENSION PLAN AND CAPITALIZATION OPERATIONS

a) Composition of the technical provisions

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	09/30/2010		09/30/2009		09/30/2010		09/30/2009		09/30/2010		09/30/2009		09/30/2010		09/30/2009
Mathematical provision of benefits to be granted and benefits granted		31,994		33,614		47,688,627		40,106,418		-		-		47,720,621		40,140,032
Unearned premiums		3,443,351		3,258,870		-		-		-		-		3,443,351		3,258,870
Unsettled claims		2,445,063		2,217,895		-		-		-		-		2,445,063		2,217,895
Financial surplus		1,749		2,214		473,874		446,323		-		-		475,623		448,537
IBNR		705,732		732,646		12,960		12,557		-		-		718,692		745,203
Financial variation		458		494		124,492		110,475		-		-		124,950		110,969
Premium deficiency		263,453		167,342		-		-		-		-		263,453		167,342
Insufficient contribution		-		-		548,756		438,884		-		-		548,756		438,884
Mathematical provision for redemptions		-		-		-		-		2,433,861		2,133,720		2,433,861		2,133,720
Raffle contingency		-		-		-		-		21,709		36,489		21,709		36,489
Other		75,831		71,695		189,336		184,123		28,277		23,895		293,444		279,713
TOTAL		6,967,631		6,484,770		49,038,045		41,298,780		2,483,847		2,194,104		58,489,523		49,977,654

b) Assets Guaranteeing Technical Provisions - SUSEP

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	09/30/2010		09/30/2009		09/30/2010		09/30/2009		09/30/2010		09/30/2009		09/30/2010		09/30/2009
Interbank investments – money market		1,421,155		986,616		947,414		1,003,502		1,164,720		832,985		3,533,289		2,823,103
Securities and derivative financial instruments		2,700,305		2,959,487		48,143,031		40,311,622		1,360,774		1,401,164		52,204,110		44,672,273
PGBL/VGBL fund quotas (1)		-		-		43,621,488		36,403,697		-		-		43,621,488		36,403,697
Government securities - Domestic		-		-		31,435,519		23,444,190		-		-		31,435,519		23,444,190
National Treasury Bills		-		-		15,993,240		3,664,771		-		-		15,993,240		3,664,771
National Treasury Notes		-		-		13,336,217		7,951,760		-		-		13,336,217		7,951,760
Financial Treasury Bills		-		-		2,106,062		11,827,659		-		-		2,106,062		11,827,659
Corporate securities		-		-		11,818,124		12,447,524		-		-		11,818,124		12,447,524
Bank Deposit Certificates		-		-		5,203,676		7,549,666		-		-		5,203,676		7,549,666
Debentures		-		-		4,537,451		2,986,661		-		-		4,537,451		2,986,661
Shares		-		-		1,941,823		1,508,461		-		-		1,941,823		1,508,461
Quotas of funds		-		-		131,078		384,849		-		-		131,078		384,849
Promissory Notes		-		-		2,656		17,887		-		-		2,656		17,887
Securitized real estate loans		-		-		1,440		-		-		-		1,440		-
PGBL/VGBL fund quotas		-		-		276,852		74,612		-		-		276,852		74,612
Derivative financial instruments		-		-		15,324		396,746		-		-		15,324		396,746
Accounts receivable / (payable)		-		-		75,669		40,625		-		-		75,669		40,625
Other assets		2,700,305		2,959,487		4,521,543		3,907,925		1,360,774		1,401,164		8,582,622		8,268,576
Government		1,905,335		2,285,508		3,584,073		3,001,287		148,692		739,727		5,638,100		6,026,522
Private		794,970		673,979		937,470		906,638		1,212,082		661,437		2,944,522		2,242,054
Receivables from insurance and reinsurance operations (2)		2,942,542		2,437,747		-		-				-		2,942,542		2,437,747
Credit rights		1,207,524		952,351		-		-				-		1,207,524		952,351
Reinsurance		1,735,018		1,485,396		-		-				-		1,735,018		1,485,396
Escrow deposits for loss		44,706		109,796		-		-				-		44,706		109,796
TOTAL		7,108,708		6,493,646		49,090,445		41,315,124		2,525,494		2,234,149		58,724,647		50,042,919

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

(2) Recorded under Other receivables and Other assets.

c) Results of Operations

	INSURANCE						PENSION PLAN						CAPITALIZATION						TOTAL
	01/01 to 09/30/2010			01/01 to 09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009
Income from financial operations		174,093			161,923			209,926			252,419			62,733			45,512			446,752			459,854
Financial income from insurance, pension plan and capitalization operations		218,041			245,036			2,955,551			3,159,018			171,494			145,233			3,345,086			3,549,287
Financial expenses from insurance, pension plan and capitalization operations		(43,948	)		(83,113	)		(2,745,625	)		(2,906,599	)		(108,761	)		(99,721	)		(2,898,334	)		(3,089,433	)
Result from insurance, pension plan and capitalization operations		1,691,084			950,222			31,947			440,171			328,358			331,018			2,051,389			1,721,411
Premiums and contributions		5,373,172			4,728,653			5,930,201			6,469,521			1,276,598			1,201,215			12,579,971			12,399,389
Changes in technical provisions		(310,168	)		(132,855	)		(5,870,968	)		(5,975,240	)		(911,529	)		(820,652	)		(7,092,665	)		(6,928,747	)
Expenses for claims		(2,181,314	)		(2,448,237	)		-			-			-			-			(2,181,314	)		(2,448,237	)
Selling expenses		(1,038,711	)		(990,252	)		(4,829	)		(7,270	)		(5,612	)		(22,730	)		(1,049,152	)		(1,020,252	)
Expenses for benefits and raffles		-			-			(26,271	)		(34,936	)		(31,023	)		(26,836	)		(57,294	)		(61,772	)
Other revenues and expenses		(151,895	)		(207,087	)		3,814			(11,904	)		(76	)		21			(148,157	)		(218,970	)
TOTAL		1,865,177			1,112,145			241,873			692,590			391,091			376,530			2,498,141			2,181,265

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

ITAÚ UNIBANCO HOLDING CONSOLIDATED is involved in contingencies in the ordinary course of its 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 or individual execution when the claim is awarded a final and unappealable judgment regarding lawsuits filed by the Public Attorney’s Office or consumer protection associations, and monthly reviewed:

- Collective (lawsuits related to claims considered similar and usual and the amounts of which are not considered 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 significant): at the claimed indemnity amount, 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 to be 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 monthly by the moving average of payment of 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 amounts deposited in guarantee; to the execution amount (indisputable amount) when it is awarded a final and unappealable decision; or based on the individual analysis of the potential amount of probable loss for lawsuits with significant amounts.

Tax and social security lawsuits: calculated upon judicial notification of administrative proceedings based on their monthly adjusted amounts.

Other Risks: calculated mainly based on the assessment of credit risk on joint obligations.

- Contingencies classified as probable: are recognized in the accounting books and comprise

- Civil lawsuits: demanding compensation for property damage and pain and suffering, such as protest of bills, return of checks, and inclusion of information in the credit protection registry, most of these actions being filed in the Small Claims Court and therefore limited to 40 minimum monthly wages; The bank is also party to specific lawsuits over the charging of understated inflation adjustment to savings accounts in connection with economic plans. The case law at the Federal Supreme Court is favorable to banks in relation to an economic phenomenon similar to savings, as in the case of adjustment to time deposits and contracts in general. Additionally, the Superior Court of Justice has recently decided that the term for filing public civil actions over understated inflation is five years. In view of such decision, some of the lawsuits may be dismissed because they were filed after the five-year period.

- Labor claims: seeking the recovery of alleged labor rights based on labor legislation specific to the related profession, such as overtime, salary equalization, reinstatement, transfer allowance, pension plan supplement and other;

- Tax and social security lawsuits: represented mainly by lawsuits and administrative proceedings involving federal and municipal taxes;

- Other Risks represented basically by the joint obligation for securitized rural loans.

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

	01/01 to 09/30/2010														01/01 to 09/30/2009
Change in provision for contingent liabilities	Civil			Labor			Tax and social security			Other		Total			Total
Opening balance		2,409,698			3,163,601			1,457,508			257,672		7,288,479			7,731,425
(-) Contingencies guaranteed by indemnity clauses (Note 4o I)		(98,628	)		(573,261	)		(35,331	)		-		(707,220	)		(692,451	)
Subtotal		2,311,070			2,590,340			1,422,177			257,672		6,581,259			7,038,974
Restatement/Charges		128,199			53,923			19,078			-		201,200			346,711
Changes in the period reflected in results (Notes 13f and 13i)		926,865			364,052			156,449			2,639		1,450,005			1,467,591
Increase (*)		1,200,576			421,748			296,946			2,639		1,921,909			1,791,306
Reversal		(273,711	)		(57,696	)		(140,497	)		-		(471,904	)		(323,715	)
Payment		(718,278	)		(288,041	)		(97,306	)		-		(1,103,625	)		(1,120,948	)
Subtotal		2,647,856			2,720,274			1,500,398			260,311		7,128,839			7,732,328
(+) Contingencies guaranteed by indemnity clauses (Note 4o I)		119,290			552,815			51,009			-		723,114			763,858
Closing balance (Note 13c)		2,767,146			3,273,089			1,551,407			260,311		7,851,953			8,496,186
Closing balance at 09/30/2009 (Note 13c)		2,484,325			3,097,143			2,658,351			256,367		8,496,186
Escrow deposits at 09/30/2010 (Note 13a)		1,438,542			1,541,080			861,389			-		3,841,011
Escrow deposits at 09/30/2009 (Note 13a)		1,017,249			1,403,107			937,621			-		3,357,977

(*) Civil provisions include the provision for economic plans amounting to R$ 507,802 (R$ 250,874 from January 1 to September 30, 2009) (Note 22k).

- Contingencies classified as possible: not recognized in the accounting books and comprise Civil lawsuits amounting to R$ 402,334 and Tax and Social Security Lawsuits amounting to R$ 4,597,502. The principal characteristics of these lawsuits are described below:

· IRPJ, CSLL, PIS and COFINS – request for offset dismissed - R$ 496,679: cases in which the liquidity and the offset credit certainty are discussed.

· ISS – Banking Institutions – R$ 482,540: we understand that the banking operation cannot be interpreted as a service and/or is not listed under Supplementary Law No. 116/03 or Decree-law No. 406/68.

· IRPJ/CSLL - losses on receipt of credits and discounts granted upon credit renegotiation – R$ 448,133: we defend the deduction as an operating expense and necessary for the financial activity.

· IRPJ, CSLL, PIS and COFINS – Usufruct of quotas and shares - R$ 349,243:we discuss the adequate accounting and tax treatment for the amount received due to the onerous recognition of usufruct.

· IRPJ/CSLL – Taxation of profits abroad – R$ 299,020: we discuss the criteria for determination of calculation basis and taxable event.

· IRPJ – Allowance for loan losses – R$ 279,676: we request the application of the 1.5% rate for measuring the expense in view of the non-retroactivity of the Federal Revenue Service Regulatory Instruction No. 80/93.

· IRPJ/CSLL – Goodwill - R$ 236,661: we defend the deductibility of goodwill incurred upon acquisition of merged companies.

· INSS – Non-compensatory amounts – R$ 230,498: we defend the non-taxation of these amounts, mainly transportation vouchers and sole bonus.

· IRPJ/CSLL – Interest on capital – R$ 218,183: we defend the deductibility of interest on capital declared to stockholders based on the Brazilian long-term interest rate (TJLP) levied on the stockholders’ equity for the year and for prior years.

· IRPJ/CSLL - Expenses on acquisition of customer portfolio – R$ 178,116:we defend its deduction as a required operating expense.

· ISS – Lease operation R$ 147,910: we discuss the place of service provision and the calculation basis amount.

In ITAÚ UNIBANCO HOLDING CONSOLIDATED, the following are in guarantee of voluntary resources restricted, deposited or recorded in the amounts below:

	09/30/2010		09/30/2009
Securities		1,430,050		834,732
Deposits in guarantee		3,286,141		3,484,817
Permanent assets (*)		725,093		771,371

(*) As per article 32 of Law No. 10,522,  of July 19, 2002. On April 4, 2007, in the unconstitutionality lawsuit No. 1.976, the Federal Supreme Court ruled unconstitutional the requirement of guarantees for considering voluntary appeals. The company is requesting the cancellation of the pledging of guarantees to the Federal Revenue Service.

The Receivables balance arising from reimbursements of contingencies totals R$ 1,106,278 (R$ 1,024,929 at 09/30/2009) (Note 13a), basically represented by the guarantee in the Banco Banerj S.A. privatization process occurred in 1997, in which the State of Rio de Janeiro created a fund to guarantee the equity recomposition of Civil, Labor and Tax Contingencies.

c) Legal Liabilities – Tax and Social Security and Escrow Deposits for Filing Legal Processes – recognized at the full amount being questioned and respective escrow deposits, as follows:

	01/01 to			01/01 to
Change in legal liabilities	09/30/2010			09/30/2009
Opening balance		6,821,027			9,082,558
Charges on taxes		272,879			673,065
Changes in the period reflected in results		88,539			2,097,356
Increase		435,697			2,226,192
Reversal (*)		(347,158	)		(128,836	)
Payment (*)		(1,917,790	)		(184,032	)
Closing balance (Note 14c)		5,264,654			11,668,947

(*) From 01/01 to 09/30/2010 refers basically to the effects arising from the adhesion to the Cash or Installment Payment of Federal Taxes (Note 12d).

	01/01 to			01/01 to
Change in escrow deposits	09/30/2010			09/30/2009
Opening balance		3,695,827			4,422,972
Appropriation of income		179,436			403,185
Changes in the period		103,619			188,550
Deposited		109,331			390,532
Withdrawals		(2,735	)		(17,188	)
Conversion into income		(2,977	)		(184,794	)
Closing balance (Note 13a)		3,978,882			5,014,707

The main natures of processes are described as follows:

· PIS and COFINS – R$ 2,669,311 – Revenue x Gross revenue: We request either the levy of taxes only on the revenue understood as income from sale of assets and services or the levy of PIS Repique (calculated on income tax payable) (at 5% of income tax due), in lieu of the levy on total revenues recorded, by alleging the unconstitutionality of paragraph 1 of article 3 of Law No. 9,718/98. The balance of the corresponding deposit in guarantee totals R$ 1,231,303.

· CSLL – R$ 652,362 – Principle of equality: We request the levy of tax of 9%, in lieu of 15%, for financial and insurance companies, by alleging the unconstitutionality of article 41 of Law No. 11.727/08. The corresponding escrow deposit totals R$ 157,360.

· IRPJ and CSLL – R$ 461,236 - Taxation of profits earned abroad: we defend the exemption of the positive equity in earnings from foreign investments. The corresponding escrow deposit totals R$ 448,664.

· PIS – R$ 351,452 – Principles of anteriority, anteriority over 90 days and non-retroactivity: We request the rejection of Constitutional Amendments No. 10/96 and 17/97 in view of the principle of anteriority and non-retroactivity, aiming at making payments based on Supplementary Law No. 07/70. The corresponding escrow deposit totals R$ 60,607.

· INSS – R$ 254,277 – Service providers that are individuals and management members: We request the non-levy of taxes on payment to service providers that are individuals and management members, set forth by Supplementary Law No. 84/96, by alleging its unconstitutionality. The corresponding escrow deposit totals R$ 230,038.

d) Program for Cash or Installment Payment of Federal Taxes - Law No. 11,941/09

ITAÚ UNIBANCO HOLDING and its subsidiaries adhered to the Program for Cash or Installment Payment of Federal Taxes, established by Law No. 11,941, of May 27, 2009. The program included the debits administered by the Federal Revenue Service of Brazil and the General Attorney’s Office of the National Treasury past due before November 30, 2008. The main proposition included in this program was the increase in the PIS and COFINS calculation basis, as set forth by paragraph 1 of article 3 of Law No. 9,718 of November 27, 1998, classified as Legal Liability. The net effect in Income was R$ 144,712, recorded in Other Operating Income (Note 22k).

NOTE 13 - BREAKDOWN OF ACCOUNTS

a) Other sundry receivables

	09/30/2010			09/30/2009
Deferred tax assets (Note 14b I)		26,573,620			27,426,884
Social contribution for offset (Note 14b I)		851,633			955,427
Taxes and contributions for offset		2,259,943			2,974,685
Escrow deposits in guarantee of provision for contingent liabilities (Note 12b)		7,127,152			6,842,794
Escrow deposits for legal liabilities – tax and social security (Note 12c)		3,978,882			5,014,707
Escrow deposits for foreign fund raising program		1,932,880			349,000
Receivables from reimbursement of contingent liabilities (Note 12b)		1,106,278			1,024,929
Sundry domestic debtors		861,725			768,652
Sundry foreign debtors		91,287			119,123
Recoverable payments		35,357			34,953
Salary advances		187,083			177,765
Amounts receivable from related companies		6,562			50,657
Operations without credit granting characteristics		219,795			498,110
Securities and credits receivable		547,006			805,534
(Allowance for loan losses)		(327,211	)		(307,424	)
Other		151,598			142,510
Total		45,383,795			46,380,196

At ITAÚ UNIBANCO HOLDING, Other Sundry Receivables are basically composed of Taxes and Contributions for Offset of R$ 122,637 (R$ 146,329 at 09/30/2009) and Deferred Tax Assets of R$ 953,492 (R$ 836,564 at 09/30/2009) (Note 14b I).

b) Prepaid expenses

	09/30/2010		09/30/2009
Commissions		1,676,982		2,280,357
Related to vehicle financing		981,497		1,622,283
Related to insurance and pension plan		467,368		515,968
Other		228,117		142,106
Credit Guarantee Fund (*)		573,546		760,702
Advertising		331,100		384,314
Other		244,667		250,924
Total		2,826,295		3,676,297

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

c) Other sundry liabilities

	09/30/2010		09/30/2009
Provisions for contingent liabilities (Note 12b)		7,851,953		8,496,186
Provisions for sundry payments		2,082,527		1,947,971
Personnel provision		1,437,445		1,273,277
Sundry creditors - local		845,072		765,496
Sundry creditors - foreign		610,562		208,288
Liabilities for official agreements and rendering of payment services		1,204,901		447,230
Related to insurance operations		994,966		1,110,943
Liabilities for purchase of assets and rights		55,435		13,182
Creditors of funds to be released		609,824		316,156
Funds from consortia participants		80,249		144,613
Provision to cover actuarial deficit (Note 19c)		135,987		121,674
Provision for integration expenditures with ITAÚ UNIBANCO merger (1)		312,335		978,978
Provision for health insurance (2)		603,841		540,808
Expenses for lease interests (Note 4i)		163,635		122,889
Other		151,147		290,569
Total		17,139,879		16,778,260

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

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

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

d) Banking service fees

	01/01 to 09/30/2010		01/01 to 09/30/2009
Asset management		1,868,658		1,629,437
Funds management fees		1,799,678		1,601,481
Consortia management fee		68,980		27,956
Current account services		441,433		335,799
Credit cards		4,898,373		4,233,125
Annual fees		749,582		644,831
Other services		4,148,791		3,588,294
Relationship with stores		3,795,637		3,292,224
Credit card processing		353,154		296,070
Sureties and credits granted		1,069,946		950,175
Loan operations		647,700		571,434
Guarantees provided		422,246		378,741
Receipt services		975,589		885,651
Collection fees		790,854		731,381
Collection services		184,735		154,270
Other		1,242,089		931,829
Brokerage		354,918		221,006
Custody services and management of portfolio		134,593		114,848
Economic and financial advisory		194,153		118,501
Foreign exchange services		51,427		50,045
Other services		506,998		427,429
Total		10,496,088		8,966,016

e) Income from bank charges

	01/01 to 09/30/2010		01/01 to 09/30/2009
Loan operations/registration		995,081		760,911
Deposit account		132,305		117,986
Transfer of funds		91,802		84,726
Service package fees and other		1,154,907		1,066,348
Total		2,374,095		2,029,971

f) Personnel expenses

	01/01 to 09/30/2010			01/01 to 09/30/2009
Compensation		(6,114,510	)		(5,849,772	)
Charges		(1,535,991	)		(1,397,762	)
Welfare benefits		(1,248,648	)		(1,056,313	)
Training		(146,810	)		(79,427	)
Labor claims and termination of employees (Note 12b)		(368,207	)		(465,239	)
Total		(9,414,166	)		(8,848,513	)

g) Other administrative expenses

	01/01 to 09/30/2010			01/01 to 09/30/2009
Data processing and telecommunications		(2,358,942	)		(1,851,804	)
Depreciation and amortization		(1,053,361	)		(990,457	)
Installations		(1,812,299	)		(1,360,028	)
Third-party services		(2,137,807	)		(2,138,417	)
Financial system services		(276,036	)		(260,860	)
Advertising, promotions and publications		(819,823	)		(641,529	)
Transportation		(459,466	)		(280,324	)
Materials		(336,585	)		(211,438	)
Security		(326,537	)		(280,042	)
Travel		(115,016	)		(87,280	)
Other		(354,995	)		(328,637	)
Total		(10,050,867	)		(8,430,816	)

h) Other operating revenues

	01/01 to 09/30/2010		01/01 to 09/30/2009
Reversal of operating provisions		439,307		191,703
Contingent assets and liabilities and legal liabilities – tax and social security (Notes 12b, c and d)		390,104		128,836
Other		49,203		62,867
Recovery of charges and expenses		55,608		223,940
Other		303,595		157,608
Total		798,510		573,251

i) Other operating expenses

	01/01 to 09/30/2010			01/01 to 09/30/2009
Provision for contingencies (Note 12b)		(984,791	)		(1,011,467	)
Civil		(926,865	)		(944,073	)
Tax and social security		(55,287	)		(62,262	)
Other		(2,639	)		(5,132	)
Selling - Credit cards		(1,110,841	)		(1,083,781	)
Claims		(405,146	)		(413,516	)
Joint venture (*)		-			(550,000	)
Amortization of goodwill on investments (Notes 2k)		-			(556,576	)
Provision for health insurance (Note 13c)		(7,850	)		(10,173	)
Refund of interbank costs		(139,920	)		(168,432	)
Other		(412,272	)		(699,990	)
Total		(3,060,820	)		(4,493,935	)

(*) Amount paid on August 28, 2009 to Companhia Brasileira de Distribuição S.A., in order to exclude the obligation of exclusivity of ITAÚ UNIBANCO in the joint venture agreement related to Financeira Itaú CDB S.A. Crédito, Financiamento e Investimento (Note 22k).

j) Non-operating income – from 01/01 to 09/30/2009 is basically composed of Sale of Visa Inc and Visa Net shares.

NOTE 14 - TAXES

a) Composition of expenses for taxes and contributions

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

Due on operations for the period	01/01 to 09/30/2010			01/01 to 09/30/2009
Income before income tax and social contribution		14,273,384			13,262,591
Charges (income tax and social contribution) at the rates in effect (Note 4p)		(5,709,354	)		(5,305,036	)
Increase/decrease to income tax and social contribution charges arising from:
Permanent additions (exclusions)		1,388,748			(578,472	)
Investments in affiliates		72,192			51,153
Foreign exchange variation on investments abroad		(345,559	)		(1,906,153	)
Interest on capital		1,139,226			1,118,381
Dividends, interest on external debt bonds and tax incentives		243,041			370,970
Other		279,848			(212,823	)
Temporary (additions) exclusions		1,137,919			500,651
Allowance for loan losses		(1,353,461	)		(2,112,519	)
Excess (insufficiency) of depreciation of leased assets		671,107			2,294,691
Adjustment to market value of trading securities and derivative financial instruments and adjustments from operations in futures markets		12,288			165,538
Legal liabilities – tax and social security, contingent liabilities and restatement of escrow deposits		694,121			(585,363	)
Realization of goodwill on purchase of investments		1,255,253			982,394
Integration expenditures with ITAÚ UNIBANCO merger		213,494			141,536
Other		(354,883	)		(385,626	)
(Increase) offset of tax losses/social contribution loss carryforwards		(813,985	)		(827,348	)
Expenses for income tax and social contribution		(3,996,672	)		(6,210,205	)
Related to temporary differences
Increase (reversal) for the period		(323,934	)		326,697
Prior periods increase (reversal)		362,118			263,843
Income (expenses) from deferred taxes		38,184			590,540
Total income tax and social contribution		(3,958,488	)		(5,619,665	)

II - Composition of tax expenses:

	01/01 to 09/30/2010			01/01 to 09/30/2009
PIS and COFINS		(2,260,105	)		(2,413,205	)
ISS		(569,102	)		(363,813	)
Other		(236,629	)		(259,899	)
Total (Note 4p)		(3,065,836	)		(3,036,917	)

At ITAÚ UNIBANCO HOLDING tax expenses are basically composed of PIS and COFINS in the amount of R$ 23,813 (R$ 14,623 from 01/01 to 09/30/2009).

III- Tax effects on foreign exchange management of investments abroad

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

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

b) Deferred taxes

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

	PROVISIONS				DEFERRED TAX ASSETS
	09/30/2010		09/30/2009		12/31/2009		Realization / Reversal			Increase		09/30/2010		09/30/2009
Reflected in income and expense accounts						25,911,438		(5,980,777	)		6,480,254		26,410,915		27,339,252
Related to income tax and social contribution loss carryforwards						2,989,576		(332,163	)		1,519,463		4,176,876		3,658,757
Related to disbursed provisions						8,985,851		(2,840,142	)		3,474,657		9,620,366		8,348,603
Allowance for loan losses						7,827,348		(2,524,736	)		3,230,706		8,533,318		7,156,709
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)						104,543		(104,543	)		101,318		101,318		172,052
Allowance for real estate						81,012		(15,700	)		49,546		114,858		73,549
Goodwill on purchase of investments						771,874		(143,893	)		69,129		697,110		731,319
Other						201,074		(51,270	)		23,958		173,762		214,974
Related to non-disbursed provisions (*)		35,613,237		45,482,066		13,936,011		(2,808,472	)		1,486,134		12,613,673		15,331,892
Related to the operation		29,509,237		39,378,066		11,860,651		(2,808,472	)		1,486,134		10,538,313		13,113,884
Legal liabilities – tax and social security		2,665,151		7,621,644		1,989,617		(660,937	)		18,582		1,347,262		2,415,394
Provision for contingent liabilities		6,569,569		7,355,899		2,344,558		(424,632	)		522,422		2,442,348		2,715,904
Civil		2,647,856		2,311,990		899,984		(284,740	)		413,208		1,028,452		903,373
Labor		2,278,537		2,215,595		843,564		(27,466	)		37,249		853,347		835,734
Tax and social security		1,500,398		2,562,528		495,553		(62,719	)		71,965		504,799		871,260
Other		142,778		265,786		105,457		(49,707	)		-		55,750		105,537
Adjustments from operations in futures settlement market		164,844		55,800		28,628		(411	)		36,241		64,458		15,346
Goodwill on purchase of investments		13,868,124		17,441,924		5,721,535		(1,006,373	)		-		4,715,162		5,930,254
Provision for integration expenditures with ITAÚ UNIBANCO merger		367,544		978,978		286,806		(161,841	)		-		124,965		332,852
Provision related to health insurance operations		603,841		540,808		238,396		-			3,141		241,537		216,323
Other non-deductible provisions		5,270,164		5,383,013		1,251,111		(554,278	)		905,748		1,602,581		1,487,811
Related to additional provisions exceeding the minimum required not disbursed – allowance for loan losses		6,104,000		6,104,000		2,075,360		-			-		2,075,360		2,218,008
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		436,756		219,080		72,677		(22,521	)		112,549		162,705		87,632
Total		36,049,993		45,701,146		25,984,115		(6,003,298	)		6,592,803		26,573,620		27,426,884
Social contribution for offset arising from Option foreseen in article 8 of Provisional Measure No. 2,158-35 of 08/24/2001		-				933,723		(82,090	)		-		851,633		955,427

(*) From a financial point of view, rather than recording the provision of R$ 35,613,237 (R$ 45,482,066 at 09/30/2009) and deferred tax assets of R$ 12,613,673 (R$ 15,331,892 at 09/30/2009), only the net provisions of the corresponding tax effects should be considered, which would reduce the total deferred tax assets from R$ 26,573,620 (R$ 27,426,884 at 09/30/2009) to R$ 13,959,947 (R$ 12,094,992 at 09/30/2009).

At ITAÚ UNIBANCO HOLDING, the deferred tax assets totaled R$ 953,492 (R$ 836,564 at 09/30/2009) and are basically represented by tax losses and social contribution loss carryforwards of R$ 795,195 (R$ 768,911 at 09/30/2009), which expected realization is up to one year.

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

	12/31/2009		Realization / Reversal			Increase		09/30/2010		09/30/2009
Reflected in income and expense accounts		8,552,838		(68,773	)		959,786		9,443,851		8,099,693
Depreciation in excess – leasing		7,567,878		-			759,170		8,327,047		7,172,323
Restatement of escrow deposits and contingent liabilities		665,918		-			98,061		763,979		658,268
Adjustment to market value of securities and derivative financial instruments		144,540		-			39,349		183,888		73,861
Adjustments from operations in futures settlement market		42,463		(21,188	)		-		21,275		89,788
Taxation of results abroad – capital gains		35,911		-			7,371		43,282		31,230
Other		96,129		(47,585	)		55,836		104,380		74,223
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		141,521		-			189,553		331,074		254,501
Total		8,694,359		(68,773	)		1,149,339		9,774,925		8,354,194

III- The estimate of realization and present value of deferred tax assets and social contribution for offset, arising from Provisional Measure No. 2,158-35 of August 24, 2001 and from the Provision for Deferred Income Tax and Social Contribution existing at September 30, 2010, in accordance with the expected generation of future taxable income, based on the history of profitability and technical feasibility studies, are:

	Deferred tax assets								Provision for
	Temporary differences		Tax loss/social contribution loss carryforwards		Total		Social contribution for offset		deferred income tax and social contribution			Net deferred taxes
2010		4,295,227		-		4,295,227		21,963		(748,981	)		3,568,209
2011		4,997,768		637,546		5,635,314		153,464		(1,575,230	)		4,213,548
2012		4,596,799		996,073		5,592,872		239,564		(2,238,353	)		3,594,083
2013		3,419,341		535,734		3,955,075		119,910		(2,580,769	)		1,494,216
2014		2,118,661		381,147		2,499,808		119,686		(1,781,648	)		837,846
Over 2014		2,968,948		1,626,376		4,595,324		197,046		(849,944	)		3,942,426
Total		22,396,744		4,176,876		26,573,620		851,633		(9,774,925	)		17,650,328
Present value (*)		20,104,921		3,385,068		23,489,989		734,982		(8,535,207	)		15,689,764

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

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

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

IV - In view of the unconstitutionality lawsuit related to the increase in the social contribution rate, established by Articles 17 and 41 of Law No. 11,727 of June 24, 2008, filed on June 26, 2008 by the National Confederation of the Financial System (CONSIF), deferred tax assets were recorded up to the amount added to the Tax Liabilities, while the amount of R$ 2,022,654 (R$ 2,372,366 at 09/30/2009) is unrecorded.

c) Tax and social security contributions

	09/30/2010		09/30/2009
Taxes and contributions on income payable		1,548,914		2,486,836
Taxes and contributions payable		4,744,075		850,584
Provision for deferred income tax and social contribution (Note 14b II)		9,774,925		8,354,194
Legal liabilities – tax and social security (Note 12c)		5,264,654		11,668,947
Total		21,332,568		23,360,561

At ITAÚ UNIBANCO HOLDING, the balance of Tax and Social Security Contributions totals R$ 416,146 (R$ 336,766 at 09/30/2009) and is basically comprised of Legal Liabilities  - Tax and Social Security of R$ 412,191 (R$ 301,068 at 09/30/2009), whose nature refers Revenue x Gross revenue: We request either the levy of taxes only on the revenue understood as income from sale of assets and services or the levy of PIS Repique (calculated on income tax payable) (at 5% of income tax due), in lieu of the levy on total revenues recorded, by alleging the unconstitutionality of paragraph 1 of article 3 of Law No. 9,718/98.

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

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

	09/30/2010		09/30/2009
Taxes paid or provided for		9,420,430		11,456,439
Taxes withheld and collected from third parties		5,712,085		5,694,710
Total		15,132,515		17,151,149

NOTE 15 – PERMANENT ASSETS

a) Investments

I - Change of investments

Companies		Balances at 12/31/2009		Amortization of goodwill			Dividends receivable (3)			Equity in earnings of subsidiaries			Adjustments in marketable securities of subsidiaries and Other			Balances at 09/30/2010		Balances at 09/30/2009		Equity in earnings of subsidiaries from 01/01 to 09/30/2009
Domestic			54,439,465		(4,752	)		(501,764	)		6,060,203			33,003			60,026,155		55,460,331		5,015,599
Itaú Unibanco S.A.	(1a)(5a)(5d)(6a)(7a)		42,161,903		(4,752	)		(457,459	)		3,636,577			(7,457	)		45,328,812		42,420,997		3,257,098
Banco Itaú BBA S.A.	(5b)(5e)(6b)(7b)		4,940,599		-			(3,804	)		693,914			34,449			5,665,158		5,073,233		1,210,357
Itauseg Participações S.A.	(7c)(8)		3,745,886		-			-			159,105			(2,177	)		3,902,814		3,748,117		249,134
Banco Itaucard  S.A.	(2)(5c)(5f)(6c)(7d)(8)		1,810,386		-			-			1,253,200			(1,089	)		3,062,497		2,452,444		29,005
Itaú BBA Participações S.A.			1,398,437		-			(40,501	)		185,216			9,282			1,552,434		1,400,209		322,696
Itaú Corretora de Valores S.A.	(2)(7e)(8)		382,254		-			-			132,191			(5	)		514,440		365,331		(52,691	)
Foreign			1,940,723		(38,556	)		(18,090	)		118,971			1,396			2,004,444		1,975,788		(321,029	)
Itaú Chile Holdings, Inc.	(1b)		1,618,072		(33,931	)		-			91,780			(329	)		1,675,592		1,637,151		(295,169	)
Banco Itaú Uruguay S.A.	(1c)		216,686		(3,534	)		-			12,144			1,725			227,021		219,904		(16,103	)
Oca S.A.	(1d)		72,044		(939	)		(18,090	)		14,612			-			67,627		85,494		(5,047	)
Oca Casa Financiera S.A.	(1e)		31,539		(136	)		-			523			-			31,926		30,881		(4,460	)
Aco Ltda.	(1f)		2,382		(16	)		-			(88	)		-			2,278		2,358		(250	)
GRAND TOTAL			56,380,188		(43,308	)		(519,854	)		6,179,174			34,399			62,030,599		57,436,119		4,694,570

(1) Includes goodwill in the amounts of: (a) R$ 51,214; (b) R$ 282,760; (c) R$ 29,449; (d) R$ 7,826; (e) R$ 10,137 and (f) R$ 133;

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

(3) Income receivable includes Dividends receivable;

(4) Includes foreign exchange variation in the amounts of: (a) R$ (52,890) and (b) R$ (430,208);

(5) Includes Unrealized results of operations in the amounts of: (a) R$ (1,478), (b) R$ 1,069 and (c) R$ 38,563 in investments in the amounts of: (d) R$ (4,599), (e) R$ (194) and (f) R$ (113,222);

(6) Investments and Equity in earnings reflect adjustments, in order to standardize procedures under the scope of the investor, in the amounts of: (a) R$ 7,689 and R$ (13,412), (b) R$ (80,167) and R$ 8,980 and (c) R$ 4,916 and R$ (14,486);

(7) Includes installments of dividends provided in the amounts of: (a) R$ 474,064, (b) R$ 75,812, (c) R$ 1,194, (d) R$ 241,036 and (e) R$ 29,580;

(8) Equity in earnings does not reflect the current interest in results of subsidiary company, due to variation in interest for the period.

			Stockholders’		Net income (loss) for		Number of shares owned by ITAÚ UNIBANCO HOLDING						Statutory participation in income Voting capital		Equity share in capital
Companies	Capital		equity		the period		Common		Preferred		Quotas		(%)		(%)
Domestic
Itaú Unibanco S.A.		39,676,320		44,800,444		3,651,468		2,081,169,523		2,014,258,290		-		100.00		100.00
Banco Itaú BBA S.A.		4,224,086		7,197,465		868,139		3,041,104		5,284,526		-		57.55		78.77
Itauseg Participações S.A.		8,682,908		11,133,718		358,683		1,582,676,636		-		-		35.04		35.04
Banco Itaucard S.A.		15,553,776		18,996,252		1,542,253		3,592,433,657		1,277,933,118		-		1.50		2.04
Itaú BBA Participações S.A.		797,900		1,552,435		185,216		170,647		341,294		-		100.00		100.00
Itaú Corretora de Valores S.A.		1,046,841		1,619,968		145,750		-		811,503		-		-		1.94
Foreign
Itaú Chile Holdings, Inc.		304,039		1,392,832		126,970		100		-		-		100.00		100.00
Banco Itaú Uruguay S.A.		137,843		197,572		23,329		1,639,430,739		-		-		100.00		100.00
Oca S.A.		12,630		59,799		19,152		1,502,176,740		-		-		100.00		100.00
Oca Casa Financiera S.A.		16,300		30,789		2,363		646		-		-		100.00		100.00
Aco Ltda.		11		2,162		48		-		-		131		99.24		99.24

II - Composition of investments

	09/30/2010			09/30/2009
Investment in affiliates		1,084,678			1,364,672
Domestic		358,727			438,079
Allianz Seguros S.A.		-			151,325
Serasa S.A.		244,817			257,885
Other		113,910			28,869
Foreign - BPI		725,951			926,593
Other investments		1,320,280			1,091,652
Investments through tax incentives		159,809			161,030
Equity securities		9,579			8,099
Shares and quotas		381,418			145,526
Interest in Instituto de Resseguros do Brasil - IRB		229,699			227,170
Other		539,775			549,826
(Allowance for loan losses)		(178,686	)		(172,650	)
Total		2,226,272			2,283,674

III- Equity in earnings of affiliates and other investments

	01/01 to 09/30/2010			01/01 to 09/30/2009
Investment in affiliates - Domestic		47,782			69,678
Investment in affiliates - Foreign		63,949			58,204
Dividends received from Other investments		75,087			33,298
Other		(6,337	)		19,189
Total		180,481			180,369

b) Fixed assets, goodwill and intangible assets

			CHANGES											09/30/2010							09/30/2009
	NET BALANCE AT 12/31/2009		ACQUISITIONS		DISPOSALS			DEPRECIATION/ AMORTIZATION EXPENSES (3)			OTHER			COST		ACCUMULATED DEPRECIATION/ AMORTIZATION			NET BOOK AMOUNT		NET BOOK AMOUNT
REAL ESTATE IN USE		4,353,175		1,344,097		(52,456	)		(907,382	)		(39,629	)		11,281,927		(6,584,122	)		4,697,805		4,072,414
REAL ESTATE IN USE (1)		2,371,981		295,303		(4,245	)		(233,174	)		45,795			4,451,695		(1,976,035	)		2,475,660		2,288,651
Land		935,492		93,495		(1,868	)		-			(916	)		1,026,203		-			1,026,203		821,949
Buildings		844,565		82,940		(566	)		(77,397	)		31,808			2,388,991		(1,507,641	)		881,350		660,322
Improvements		591,924		118,868		(1,811	)		(155,777	)		14,903			1,036,501		(468,394	)		568,107		806,380
OTHER FIXED ASSETS		1,981,194		1,048,794		(48,211	)		(674,208	)		(85,424	)		6,830,232		(4,608,087	)		2,222,145		1,783,763
Installations		379,576		147,409		(3,944	)		(173,012	)		12,137			893,257		(531,091	)		362,166		200,669
Furniture and equipment		400,549		172,720		(1,773	)		(34,986	)		(161,093	)		757,323		(381,906	)		375,417		386,143
EDP systems		968,429		664,767		(30,347	)		(430,816	)		68,580			4,570,437		(3,329,824	)		1,240,613		979,294
Other (communication, security and transportation)		232,640		63,898		(12,147	)		(35,394	)		(5,048	)		609,215		(365,266	)		243,949		217,657
GOODWILL (Notes 2a, b and 4k)		-		74,467		-			-			-			74,467		-			74,467		-
INTANGIBLE ASSETS		3,748,220		321,832		(70,931	)		(761,910	)		35,359			5,150,463		(1,877,893	)		3,272,570		3,587,531
RIGHTS FOR ACQUISITION OF PAYROLLS (2)		1,684,190		120,718		(70,931	)		(496,345	)		-			2,459,345		(1,221,713	)		1,237,632		1,856,805
OTHER INTANGIBLE ASSETS		2,064,030		201,114		-			(265,565	)		35,359			2,691,118		(656,180	)		2,034,938		1,730,726
Association for the promotion and offer of financial products and services		1,388,050		69,909		-			(119,586	)		1,255			1,382,136		(42,508	)		1,339,628		1,135,790
Expenditures on acquisition of software		477,691		130,457		-			(124,011	)		43,250			1,030,600		(503,213	)		527,387		391,300
Right to manage investment funds		190,505		-		-			(21,477	)		(4,432	)		265,449		(100,853	)		164,596		201,626
Other intangible assets		7,784		748		-			(491	)		(4,714	)		12,933		(9,606	)		3,327		2,010
GRAND TOTAL		8,101,395		1,740,396		(123,387	)		(1,669,292	)		(4,270	)		16,506,857		(8,462,015	)		8,044,842		7,659,945

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

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

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

NOTE 16 – STOCKHOLDERS’ EQUITY

a) Shares

Capital comprises 4,570,936,219 book-entry shares with no par value, of which 2,289,286,475 are common and 2,281,649,744 are preferred shares without voting rights, but with tag-along rights, in the event of the public offer of common shares, at a price equal to 80% of the amount paid per share with voting rights in the controlling stake, as well as a dividend at least equal to that of the common shares. Capital stock amounts to R$ 45,000,000 (R$ 45,000,000 at 09/30/2009), of which R$ 31,376,430 (R$ 36,147,186 at 09/30/2009) refers to stockholders domiciled in the country and R$ 13,623,570 (R$ 8,852,814 at 09/30/2009) refers to stockholders domiciled abroad.

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

	NUMBER
	Common		Preferred			Total			Amount
Shares of capital stock at 12/31/2009 and 09/30/2010		2,289,286,475		2,281,649,744			4,570,936,219
Treasury shares at December 31, 2009 (*)		2,202		43,588,307			43,590,509			(1,031,327	)
Exercised options - Granting of stock options – Simple and Bonus options		-		(9,473,815	)		(9,473,815	)		224,152
Disposals – stock option plan		-		(3,643,051	)		(3,643,051	)		86,195
Treasury shares at September 30, 2010 (*)		2,202		30,471,441			30,473,643			(720,980	)
Outstanding shares at 09/30/2010		2,289,284,273		2,251,178,303			4,540,462,576
Outstanding shares at 09/30/2009		2,289,284,273		2,234,474,318			4,523,758,591

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

We detail below the average cost of treasury shares and their market price at 09/30/2010:

Cost/Market value	Common		Preferred
Treasury shares
Average cost		9.65		23.66
Market value		30.85		40.47

b) Dividends

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

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

  I - Calculation

Net income	7,218,769
Adjustments:
(-) Legal reserve	(360,939	)
Dividend calculation basis	6,857,830
Mandatory minimum dividends	1,714,457
Dividends paid/provided for	2,887,079		42.1	%

  II – Payments/Provision of interest on capital and dividends

	Gross		WTS			Net
Paid / Prepaid		1,552,667		(167,648	)		1,385,019
Dividends - 8 monthly installments of R$ 0.012 per share paid from February to September 2010		435,011		-			435,011
Interest on capital  - R$ 0.2465 per share, paid on 08/20/2010		1,117,656		(167,648	)		950,008
Provided for (1)		1,757,524		(255,464	)		1,502,060
Dividends - 1 monthly installment of R$ 0.012 per share, paid on 10/01/2010		54,427		-			54,427
Interest on capital - R$ 0.3751 per share		1,703,097		(255,464	)		1,447,633
Total from 01/01 to 09/30/2010 - R$ 0.6363 net per share		3,310,191		(423,112	)		2,887,079
Total from 01/01 to 09/30/2009 - R$ 0.5336 net per share (2)		2,630,544		(327,377	)		2,303,167

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

(2) For better comparability, outstanding shares in the period of 06/30/2009 were adjusted by the bonus carried out on 08/28/2009.

c) Capital and revenue reserves

	09/30/2010		09/30/2009
CAPITAL RESERVES		578,390		631,512
Premium on subscription of shares		283,512		283,512
Granted options recognized – Law No. 11,638		293,773		346,895
Reserves from tax incentives and restatement of equity securities and other		1,105		1,105
REVENUE RESERVES		22,813,617		17,891,462
Legal		3,100,854		2,628,151
Statutory:		19,354,832		13,263,311
Dividends equalization (1)		6,083,105		4,607,446
Working capital increase (2)		5,369,356		3,447,900
Increase in capital of investees (3)		7,902,371		5,207,965
Unrealized profits (4)		357,931		2,000,000

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

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

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

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

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

	Net income				Stockholders’ equity
	01/01 to 09/30/2010		01/01 to 09/30/2009		09/30/2010			09/30/2009
ITAÚ UNIBANCO HOLDING		7,218,769		5,471,623		67,827,873			62,656,290
Amortization of goodwill		2,212,054		1,382,117		(10,602,801	)		(13,792,331	)
Unrealized income (loss)		2,338		80		-			(2,365	)
ITAÚ UNIBANCO HOLDING CONSOLIDATED		9,433,161		6,853,820		57,225,072			48,861,594

e) Minority interest in subsidiaries

	Stockholders’ equity				Results
	09/30/2010		09/30/2009		01/01 to 09/30/2010			01/01 to 09/30/2009
Unibanco Participações Societárias S.A.		1,186,183		1,109,300		(72,967	)		(49,128	)
Itau Bank, Ltd. (*)		665,974		698,957		-			-
Redecard S.A.		538,693		527,301		(525,423	)		(504,284	)
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		216,246		104,092		(49,152	)		(2,475	)
Itaú XL Seguros Corporativos S.A.(Note 2a)		-		122,218		(6,773	)		(18,281	)
Biu Participações S.A.		99,472		83,360		(15,600	)		(19,888	)
Itaú Gestão de Ativos S.A.		59,719		60,967		317			(1,148	)
Biogeração de Energia S.A.		27,369		28,796		464			(4,615	)
Investimentos Bemge S.A.		17,200		16,739		(762	)		(801	)
Três "B" Empreendimentos e Participações Ltda.		-		75,045		-			(7,503	)
Investment funds		745,443		607,979		(40,314	)		(14,861	)
Other		101,873		8,108		(3,025	)		221
Total		3,658,172		3,442,862		(713,235	)		(622,763	)

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

f) Stock Option Plan

I – Purpose and Guidelines of the Plan

Before the merger, Itaú and Unibanco had a Stock Option Plan. On April 24, 2009, Itaú’s plan was restructured, and a new program was launched for Itaú Unibanco, called Stock Option Plan – “PLAN”. From then on, no stock plan has been granted in the prior programs (Itaú Plan and Unibanco Plan), which exercise prices are adjusted until the month prior to the option exercise date based on the IGP-M or IPCA, according to series, until they are either exercised, cancelled or expire.

This program aims at involving the management members in the medium and long-term corporate development process, through the granting of simple or bonus shares, personal, not pledged or transferable, which entitle to the subscription of one authorized capital share or, at the discretion of the management, one treasury share which is acquired for replacement purposes.

Such options may only be granted in years in which there are sufficient profits to distribute mandatory dividends to stockholders and at a quantity that does not exceed the limit of 0.5% of the total shares held by the stockholders at the base date of the year-end balance sheet. The ITAÚ UNIBANCO HOLDING’s Personnel Committee is responsible for defining the total number of options to be granted, the eligible beneficiaries, the type of option, the validity of the option series, and the vesting and blackout periods for exercising the options. Options may be granted to directors and Board of Directors members of ITAÚ UNIBANCO HOLDING and to the management members of controlled companies (“MANAGEMENT MEMBERS”) or employees based on assessment of potential and performance.

ITAÚ UNIBANCO HOLDING carries out the settlement of this PLAN by delivering its own shares held in treasury until the effective exercise of the options by the beneficiaries.

II – Characteristics of the Plan

II.I – Simple Options

The exercise price will be calculated based on the average prices of preferred shares at the BM&FBOVESPA trading sessions over the period of at least one (1) and at the most three (3) months prior to the option issue date, being permitted a positive or negative adjustment of up to 20%, and restated until the last business day of the month prior to the option exercise date based on the IGP-M or, in its absence, on the index stipulated by the Committee.

The vesting period will be from one (1) to seven (7) years, counted from the issuance date.

II.II – Bonus Options

The exercise price will be the performance of a positive covenant supported by the beneficiary’s obligation to invest in the shares of ITAÚ UNIBANCO HOLDING or instrument based on such shares, a part or the total amount of the bonus received in relation to the previous year, and keep the ownership of these shares unchanged and without any type of liens from the option granting date until the option exercise date.

The purchase price of shares will be established every six months and it shall be equivalent to the average share quotation at the BM&FBOVESPA in the 30 days prior to the determination of said price.

The vesting period will be from one (1) to seven (7) years, counted from the share purchase date.

Summary of Changes in the Plan

		Vesting			Restated		Exercised options				Number of shares
Granting		period	Exercise		Exercise		Exercise price		Market value		Prior balance								To be exercised
Nº	Date	until	Deadline		Price (R$1)		Weighted average		Weighted average		12/31/2009		Granted		Exercised		Cancelled		at 09/30/2010
Simple Options
9th	03/10/2003	12/31/2007	12/31/2010			-		7.84		38.54		570,500		-		570,500		-		-
9th	05/02/2005	12/31/2007	12/31/2010			8.11		-		-		6,187		-		-		-		6,187
10th	02/16/2004	12/31/2008	12/31/2011			12.26		12.12		39.15		1,886,792		-		1,089,975		-		796,817
11th	02/21/2005	12/31/2009	12/31/2012			17.25		16.49		38.87		7,082,200		-		3,355,155		-		3,727,045
11th	08/01/2005	12/31/2009	12/31/2012			17.25		-		-		27,500		-		-		-		27,500
11th	08/06/2007	12/31/2009	12/31/2012			17.25		-		-		11,357		-		-		-		11,357
12th	02/21/2006	12/31/2010	12/31/2013			25.66		25.33		38.21		9,579,384		-		806,100		-		8,773,284
12th	08/06/2007	12/31/2010	12/31/2013			25.66		-		-		15,867		-		-		-		15,867
13th	02/14/2007	12/31/2011	12/31/2014			32.66		31.61		38.07		10,220,925		-		1,240,250		-		8,980,675
13th	08/06/2007	12/31/2011	12/31/2014			32.66		-		-		30,649		-		-		-		30,649
13th	10/28/2009	12/31/2011	12/31/2014			32.66		-		-		45,954		-		-		-		45,954
14th	02/11/2008	12/31/2012	12/31/2015			37.67		-		-		11,485,485		-		-		-		11,485,485
14th	05/05/2008	12/31/2012	12/31/2015			37.67		-		-		20,625		-		-		-		20,625
14th	10/28/2009	12/31/2012	12/31/2015			37.67		-		-		45,954		-		-		-		45,954
15th	03/03/2009	12/31/2013	12/31/2016			24.64		24.36		37.77		16,829,780		-		359,020		-		16,470,760
15th	10/28/2009	12/31/2013	12/31/2016			24.64		-		-		45,954		-		-		-		45,954
16th	09/02/2003	09/02/2008	02/25/2010			-		7.77		36.03		38,263		-		38,263		-		-
16th	08/10/2009	12/31/2010	12/31/2014			29.18		-		-		874,167		-		-		-		874,167
17th	09/23/2009	09/23/2012	12/31/2014			33.71		-		-		29,551		-		-		-		29,551
18th	04/17/2010	12/31/2014	12/31/2017			40.02		-		-		-		6,258,877		-		39,565		6,219,312
18th	05/11/2010	12/31/2014	12/31/2017			40.02		-		-		-		1,290,289		-		48,904		1,241,385
24th	07/19/2004	01/13/2009	05/05/2010			-		12.58		39.59		29,516		-		29,516		-		-
25th	08/04/2004	01/13/2009	05/05/2010			-		6.76		39.65		329,506		-		329,506		-		-
27th	02/01/2005	02/01/2009	05/05/2010			-		15.76		36.92		206,342		-		206,342		-		-
27th	02/01/2005	05/05/2009	01/31/2011			16.06		-		-		12,650		-		-		-		12,650
27th	02/01/2005	02/01/2010	01/31/2011			16.06		15.76		36.92		1,068,901		-		988,670		52,710		27,521
29th	09/19/2005	09/19/2009	09/18/2010			-		20.14		38.33		12,650		-		12,650		-		-
29th	09/19/2005	09/19/2010	09/18/2011			20.38		20.14		38.33		25,300		-		12,650		-		12,650
30th	07/04/2006	07/04/2009	07/03/2010			-		26.73		32.50		52,710		-		52,710		-		-
30th	07/04/2006	07/04/2010	07/03/2011			26.89		-		-		52,710		-		-		-		52,710
30th	07/04/2006	07/04/2011	07/03/2012			26.89		-		-		52,707		-		-		-		52,707
33rd	08/30/2006	08/30/2009	08/29/2010			-		29.62		38.45		21,084		-		21,084		-		-
33rd	08/30/2006	08/30/2010	08/29/2011			-		29.62		38.45		21,084		-		21,084		-		-
33rd	08/30/2006	08/30/2011	08/29/2012			29.78		-		-		21,083		-		-		-		21,083
34th	03/21/2007	03/21/2010	03/20/2011			33.93		-		-		75,901		-		-		-		75,901
34th	03/21/2007	03/21/2011	03/20/2012			33.93		-		-		75,901		-		-		-		75,901
34th	03/21/2007	03/21/2012	03/20/2013			33.93		-		-		75,901		-		-		-		75,901
35th	03/22/2007	03/22/2010	03/21/2011			33.89		-		-		29,518		-		-		-		29,518
35th	03/22/2007	03/22/2011	03/21/2012			33.89		-		-		29,518		-		-		-		29,518
35th	03/22/2007	03/22/2012	03/21/2013			33.89		-		-		29,514		-		-		-		29,514
36th	05/14/2008	05/14/2011	05/13/2012			42.16		-		-		25,301		-		-		-		25,301
36th	05/14/2008	05/14/2012	05/13/2013			42.16		-		-		25,300		-		-		-		25,300
36th	05/14/2008	05/14/2013	05/13/2014			42.16		-		-		25,300		-		-		-		25,300
TOTAL								18.21		38.40		61,145,491		7,549,166		9,133,475		141,179		59,420,003
Bonus Options
1st	09/03/2007	09/03/2010		-		-		-		37.85		342,502		-		340,340		2,162		-
1st	09/03/2007	09/03/2012		-		-		-		-		342,479		-		-		7,572		334,907
3rd	02/29/2008	09/03/2010		-		-		-		-		33,474		-		-		33,474		-
3rd	02/29/2008	09/03/2012		-		-		-		-		33,474		-		-		-		33,474
4th	03/03/2008	03/03/2011		-		-		-		-		423,212		-		-		6,725		416,487
4th	03/03/2008	03/03/2013		-		-		-		-		423,190		-		-		7,260		415,930
5th	09/03/2008	09/03/2011		-		-		-		-		502,189		-		-		8,819		493,370
5th	09/03/2008	09/03/2013		-		-		-		-		502,164		-		-		9,292		492,872
6th	03/06/2009	03/06/2012		-		-		-		-		769,830		-		-		23,561		746,269
6th	03/06/2009	03/06/2014		-		-		-		-		769,807		-		-		24,292		745,515
7th	06/19/2009	03/06/2012		-		-		-		-		79,446		-		-		-		79,446
7th	06/19/2009	03/06/2014		-		-		-		-		79,445		-		-		-		79,445
8th	08/17/2010	08/16/2013		-		-		-		-		-		384,961		-		-		384,961
8th	08/17/2010	08/16/2015		-		-		-		-		-		384,920		-		-		384,920
9th	08/30/2010	08/16/2013		-		-		-		-		-		359,991		-		-		359,991
9th	08/30/2010	08/16/2015		-		-		-		-		-		359,962		-		-		359,962
10th	09/30/2010	09/29/2013		-		-		-		-		-		1,940,987		-		-		1,940,987
10th	09/30/2010	09/29/2015		-		-		-		-		-		1,940,951		-		-		1,940,951
11th	09/30/2010	08/16/2013		-		-		-		-		-		17,717		-		-		17,717
11th	09/30/2010	08/16/2015		-		-		-		-		-		17,712		-		-		17,712
TOTAL								-		37.85		4,301,212		5,407,201		340,340		123,157		9,244,916
TOTAL SIMPLE AND BONUS OPTIONS								18.21		38.38		65,446,703		12,956,367		9,473,815		264,336		68,664,919

III – Fair Value and Economic Assumptions for Cost Recognition

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

Granting		Vesting	Exercise				Expected			Risk-free			Expected
Nº	Date	period	period until		Fair value		Dividends			interest rate			volatility
Simple Options
18th	04/17/2010	12/31/2014	12/31/2017			12.22		3.13	%		5.94	%		29.87	%
18th	5/11/2010	12/31/2014	12/31/2017			11.45		3.13	%		5.98	%		29.94	%
Bonus Options
8th	08/17/2010	08/16/2013		-		34.72		3.13	%		-			-
8th	08/17/2010	08/16/2015		-		32.62		3.13	%		-			-
9th	08/30/2010	08/16/2013		-		33.49		3.13	%		-			-
9th	08/30/2010	08/16/2015		-		31.46		3.13	%		-			-
10th	09/30/2010	09/29/2013		-		36.85		3.13	%		-			-
10th	09/30/2010	09/29/2015		-		34.61		3.13	%		-			-
11th	09/30/2010	08/16/2013		-		36.99		3.13	%		-			-
11th	09/30/2010	08/16/2015		-		34.74		3.13	%		-			-

IV - Accounting Effects Arising from Itaú and Unibanco Options

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

The effect on Income for the period from January 1 to September 30, 2010 amounted to R$ 82,494 (R$ 85,644 from January 1 to September 30, 2009), as contra-entry to Capital Reserve - Granted Options Recognized - Law No. 11,638 (Note 16c).

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

Amount received for the sale of shares – exercised options	303,927
(-) Cost of treasury shares sold	(310,347	)
(+) Write-off of cost recognized of exercised options	58,490
Effect on sale (*)	52,070

(*) Recorded in revenue reserves.

NOTE 17 – RELATED PARTIES

a) Transactions between related parties are disclosed in compliance with CVM Resolution No. 560, of December 11, 2008, and CMN Resolution No. 3,750 of June 30, 2009. These transactions are carried out at amounts, terms and average rates in accordance with normal market practices during the period, as well as under reciprocal conditions.

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

The unconsolidated related parties are the following:

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

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

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

The transactions with these related parties are basically characterized by:

	ITAÚ UNIBANCO HOLDING												ITAÚ UNIBANCO HOLDING CONSOLIDATED
	ASSETS/ (LIABILITIES)						REVENUE (EXPENSES)						ASSETS/ (LIABILITIES)						REVENUE (EXPENSES)
	09/30/2010			09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009			09/30/2010			09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009
Interbank investments		9,926,802			6,731,450			661,261			332,318			-			-			-			-
Itaú Unibanco S.A.		9,926,802			6,731,450			661,261			332,318			-			-			-			-
Derivative financial instruments		(2,596	)		(881	)		(1,389	)		575			-			639			-			-
Itaú Unibanco S.A.		(2,596	)		(881	)		(1,389	)		575			-			-			-			-
Itautec S.A.		-			-			-			-			-			639			-			-
Deposits		(3,260,392	)		-			(186,792	)		-			(114,423	)		(122,900	)		-			(5,015	)
Itaú Unibanco S.A.		(3,260,392	)		-			(186,792	)		-			-			-			-			-
Duratex S.A.		-			-			-			-			(10,624	)		(22,084	)
Elekeiroz S.A.		-			-			-			-			(13,120	)		(11,785	)					(1,561	)
ITH Zux Cayman Company Ltd.		-			-			-			-			(39,481	)		(41,422	)		-			-
Itaúsa Empreendimentos S.A.		-			-			-			-			(51,198	)		(47,609	)		-			(3,454	)
Repurchase agreements		-			(880,795	)		-			(51,227	)		(18,031	)		(64,719	)		-			(13,132	)
Itaú Unibanco S.A.		-			(880,795	)		-			(51,227	)		-			-			-			-
Intrag Part Administração e Participações Ltda.		-			-			-			-			-			(23,977	)		-			(1,734	)
Duratex S.A.		-			-			-			-			(8,931	)		(30,586	)		-			(1,951	)
Elekeiroz S.A.		-			-			-			-			-			(9,015	)		-			(7,554	)
Itautec S.A.		-			-			-			-			(9,100	)		-			-			(1,893	)
Other		-			-			-			-			-			(1,141	)		-			-
Amounts receivable from (payable to)  related companies		(341	)		1,155			-			(3,548	)		(52,919	)		(17,955	)		133,495			108,987
Itaú Unibanco S.A.		-			1,570			-			25			-			-			-			-
Itaú Corretora de Valores S. A.		(341	)		(415	)		-			(3,573	)		-			-			-			-
Itaúsa Investimentos S.A.		-			-			-			-			60,939			78,580			133,495			108,987
Fundação BEMGEPREV		-			-			-			-			(13,472	)		8			-			-
UBB Prev Previdência Complementar		-			-			-			-			(15,973	)		(13,909	)		-			-
Fundação Banorte Manuel Baptista da Silva de Seguridade Social		-			-			-			-			(84,984	)		(82,819	)		-			-
Other		-			-			-			-			571			185			-			-
Banking service fees		-			-			-			-			-			-			9,390			8,059
Fundação Itaubanco		-			-			-			-			-			-			2,015			2,930
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			2,076			1,789
UBB Prev Previdência Complementar		-			-			-			-			-			-			2,967			2,247
Other		-			-			-			-			-			-			2,332			1,093
Rent expenses		-			-			(317	)		(733	)		-			-			(23,604	)		(23,758	)
Fundação Itaubanco		-			-			-			-			-			-			(15,898	)		(18,336	)
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			(4,266	)		(4,901	)
Other		-			-			(317	)		(733	)		-			-			(3,440	)		(521	)
Donation expenses		-			-			-			-			-			-			(37,511	)		(40,795	)
Instituto Itaú Cultural		-			-			-			-			-			-			(36,917	)		(30,360	)
Fundação Itaú Social		-			-			-			-			-			-			(194	)		(378	)
Instituto Unibanco de Cinema		-			-			-			-			-			-			-			(9,632	)
Associação Clube "A"		-			-			-			-			-			-			(400	)		(425	)
Data processing expenses		-			-			-			-			-			-			(212,112	)		(193,335	)
Itautec S.A.		-			-			-			-			-			-			(212,112	)		(193,335	)

In addition to the aforementioned operations, ITAÚ UNIBANCO HOLDING and non-consolidated related parties, as an integral part of the Agreement for Apportionment of Common Costs of the Itaú Unibanco group, recorded, in Other Administrative Expenses, the amount of R$ 13,943 (R$ 7,197 from 01/01 to 09/30/2009) in view of the use of the common structure.

b)   Compensation of the Management Key Personnel

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

	09/30/2010		09/30/2009
Compensation		188,200		215,549
Board of Directors		2,480		10,700
Management members		185,720		204,849
Profit sharing		168,500		166,343
Board of Directors		2,500		3,096
Management members		166,000		163,247
Contributions to pension plans		7,148		21,048
Board of Directors		455		945
Management members		6,693		20,103
Stock option plan – Management members		80,192		85,140
Total		444,040		488,080

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

NOTE 18 - MARKET VALUE

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

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

										Unrealized income (loss) (3)
	BOOK VALUE				MARKET					Results						Stockholders’ equity
	09/30/2010		09/30/2009			09/30/2010		09/30/2009		09/30/2010			09/30/2009			09/30/2010			09/30/2009
Interbank deposits		13,152,143		16,596,680			13,166,430		16,663,406		14,287			66,726			14,287			66,726
Securities and derivative financial instruments		141,878,818		122,576,312			142,473,848		122,979,678		1,313,235			1,133,454			595,030			403,366
Adjustment of available-for-sale securities											704,756			713,484			-			-
Adjustment of held-to-maturity securities											608,479			419,970			595,030			403,366
Loan, lease and other credit operations		255,750,989		213,031,059			256,539,233		213,428,817		788,244			397,758			788,244			397,758
Investments
BM&FBovespa		58,107		74,572			637,045		783,872		578,938			709,300			578,938			709,300
BPI		725,951		926,593			613,373		1,065,638		(112,578	)		139,045			(112,578	)		139,045
Cetip S.A.		34,682		-			368,269		-		333,587			-			333,587			-
Redecard S.A.		539,030		526,719			8,832,740		9,169,226		8,293,710			8,642,507			8,293,710			8,642,507
Serasa S.A.		244,817		257,885			639,621		650,798		394,804			392,913			394,804			392,913
Parent company		161,959		170,604			556,763		563,517		394,804			392,913			394,804			392,913
Minority stockholders (1)		82,858		87,281			82,858		87,281		-			-			-			-
Funding and borrowings (2)		148,766,281		151,885,256			149,000,900		151,974,846		(234,619	)		(89,590	)		(234,619	)		(89,590	)
Subordinated debt (Note 10f)		33,683,469		23,471,568			33,812,224		23,584,436		(128,755	)		(112,868	)		(128,755	)		(112,868	)
Treasury shares		720,980		1,113,512			1,233,247		1,684,226		-			-			512,267			570,714
Total unrealized											11,240,853			11,279,245			11,034,915			11,119,871

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

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

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

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

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

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

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

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

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

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

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

NOTE 19 – BENEFITS TO EMPLOYEES

Under the terms of CVM Resolution No. 371, dated December 13, 2000, we present the policies adopted by ITAÚ UNIBANCO HOLDING and its subsidiaries regarding benefits to employees, as well as the accounting procedures adopted:

a) Supplementary retirement benefits

ITAÚ UNIBANCO HOLDING and its subsidiary companies sponsor the following supplementary retirement plans:

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

(1) Defined benefit plan;

(2) Variable contribution plan;

(3) Defined contribution plan;

(4) The Itaubanco Defined Contribution Plan was set up as a result of the partial spin-off of the Supplementary retirement plan - PAC, and is being offered to former participants of the latter, including former employees still contributing to the plan and those employees who have opted for this plan, or when this option is presumed in view of the deferred proportional benefit, which is not receiving supplementary retirement by the PAC. Those participants who have not joined the Itaubanco Defined Contribution Plan, as well as those contributing to the PAC, will remain in this latter, without any continuity, and will have their vested rights guaranteed.  As set forth in the Itaubanco Defined Contribution Plan regulation, the transaction and novation period ended on May 8, 2010. Accordingly, the effects arising from the partial spin-off of the PAC are presented in Note 19d.

The basic purpose of the defined benefit and variable contribution plans is to grant a benefit that, in general, provide a life annuity benefit, and may be converted into survivorship annuities, according to the plan's regulation. In case of defined contribution plan, the benefit is calculated based on the accumulated balance at the eligibility date, according to the plan’s regulation, which does not require actuarial calculation.

All of these plans are closed to new participants. As regards the new employees hired after the closing, they have the option to participate in a defined contribution plan (PGBL) managed by Itaú Vida e Previdência S.A.

During the period, the contributions made totaled R$ 51,971 (R$ 35,247 from January 1 to September 30, 2009). The contribution rate increases based on the beneficiary’s salary.

b) Post-employment benefits

ITAÚ UNIBANCO HOLDING subsidiaries do not offer other post-employment benefits, except in those cases arising from maintenance obligations according to the acquisition agreements signed by ITAÚ UNIBANCO, under the terms and conditions established, in which health plans are totally or partially sponsored for retired workers and beneficiaries. During the period, the contributions made totaled R$ 3,935 (R$ 4,323 from January 1 to September 30, 2009). The contribution rate increases based on the beneficiary’s age.

c)   Net amount of assets and actuarial liabilities of the benefit plans

The net assets and actuarial liabilities, which consider the actuarial obligations, calculated in conformity with the criteria established by CVM Resolution No. 371 of December 13, 2000, are summarized below:

	09/30/2010 (1)			09/30/2009
Net assets of the plans		10,450,063			13,829,203
Actuarial liabilities		(9,089,888	)		(12,011,119	)
Surplus (2)		1,360,175			1,818,084

(1) Includes the effects of the partial spin-off of PAC (Note 19 a);

(2) According to paragraph 49g of the attachment to CVM Resolution No. 371 of December 13, 2000, the net asset was not recognized.

In addition to the reserves recorded by the plans, the sponsors record provisions in the amount of R$ 135,987 (R$ 121,674 at September 30, 2009) (Note 13c) to cover possible insufficient actuarial liabilities.

d)   Change in net assets, actuarial liabilities, and surplus

	01/01to09/30/2010									01/01to09/30/2009
	Assets			Actuarial liabilities			Surplus			Assets			Actuarial liabilities			Surplus
Present value – beginning of the period		14,536,891			(12,090,146	)		2,446,745			12,775,978			(11,223,791	)		1,552,187
Adjustments in the period (1)								-			-			(127,661	)		(127,661	)
Effects of the partial spin-off of PAC (3);		(5,143,981	)		3,576,321			(1,567,660	)		-			-			-
Inclusion of Itaú Defined Benefit Plan (Credicard Itaú/Orbitall)		130,671			(123,330	)		7,341			-			-			-
Expected return on assets / Cost Current service + Interest		1,039,700			(855,716	)		183,984			1,157,681			(1,063,789	)		93,892
Benefits paid		(402,983	)		402,983			-			(404,122	)		404,122			-
Contributions of sponsors/participants		50,650			-			50,650			79,690			-			79,690
Gains /(losses) in the period (2)		239,115			-			239,115			219,976			-			219,976
Present value – end of the period		10,450,063			(9,089,888	)		1,360,175			13,829,203			(12,011,119	)		1,818,084

(1)   Effect corresponding to the reclassification of the option of former employees;

(2)   Losses in assets correspond to the actual earnings obtained below the expected return rate of assets.

(3) Arising from the partial spin-off of Pac, with the resulting set-up of Itaubanco Defined Contribution Plan, according to Note 19a. Under Itaubanco Defined Contribution Plan, a Pension Fund was set up in the amount of R$ 1.540.202 to ensure the maintenance of future contributions to participants of that plan.

e)   Main assumptions used in actuarial valuation

	Itaú Unibanco Holding	Redecard
Discount rate	10.24% p.a.	11.45% p.a.
Expected return rate on assets	12.32 % p.a.	12.92 % p.a.
Mortality table (1)	AT-2000	AT-2000
Turnover (2)	Itaú Exp. 2003/2004	Exp. Towers Watson
Future salary growth	7.12 % p.a.	6,50 % p.a.
Growth of the pension fund and social security benefits	4.00 % p.a.	4.50 % p.a.
Inflation	4.00 % p.a.	4.50 % p.a.
Actuarial method	Projected Unit Credit (3)	Projected Unit Credit (3)

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

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

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

NOTE 20 – INFORMATION ON FOREIGN SUBSIDIARIES

	Foreign branches (1)						Itaú Argentina Consolidated (2)						Itaú Europa Consolidated (3)						Cayman Consolidated (4)						Chile Consolidated (5)						Uruguay Consolidated (6)						Banco Itaú Paraguay (7)						Other foreign companies (8)						Foreign consolidated (9)
	09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009			09/30/2010			09/30/2009
Assets
Current assets and long-term receivables
Cash and cash equivalents		1,183,248			1,022,460			111,374			89,813			1,488,384			2,051,800			2,883,370			2,312,314			353,917			358,275			446,614			456,094			158,695			128,942			1,705,101			195,857			4,533,963			4,873,173
INTERBANK INVESTMENTS		8,173,749			12,651,128			160,539			158,305			2,408,771			2,208,345			3,784,826			3,526,684			38,899			3,864			598,609			376,575			61,719			224,696			10,139			106,115			9,244,032			14,689,628
Securities		23,348,788			18,492,493			217,922			221,525			1,448,330			1,611,048			5,821,801			3,975,853			1,748,280			1,796,581			848,010			447,348			269,225			285,412			1,278			177,158			31,740,441			24,487,254
Loan, lease and other credit operations		22,293,563			8,937,956			1,337,190			1,088,284			5,260,225			5,288,203			593,637			261,987			8,615,629			6,714,789			1,200,782			1,056,557			1,280,063			766,649			3,021			-			40,156,579			23,995,861
Foreign exchange portfolio		18,789,211			3,371,710			53,957			26,010			1,847,018			27,068,313			623,379			550,709			449,259			116,715			19,989			23,831			56,887			18,848			-			388,693			21,306,222			30,242,912
Other assets		1,009,586			1,325,285			336,817			361,768			212,712			235,201			2,520,408			793,664			290,583			231,043			372,677			586,711			335,368			313,424			142,957			94,556			5,173,095			3,908,428
Permanent assets
Investments		714,137			-			2,346			1,997			372,339			477,908			38,812			39,107			1,087			955			351			326			732			508			386,884			493,463			766,508			935,940
BPI		-			-			-			-			370,235			472,563			-			-			-			-			-			-			-			-			355,716			454,031			725,951			926,594
Other investments		714,137			-			2,346			1,997			2,104			5,345			38,812			39,107			1,087			955			351			326			732			508			31,168			39,432			40,557			9,346
Fixed and intangible assets		22,188			28,002			53,982			63,638			182,615			214,036			2,201			170			201,837			149,356			20,121			22,958			14,648			15,011			19,281			4,420			516,914			497,653
Total		75,534,470			45,829,034			2,274,127			2,011,340			13,220,394			39,154,854			16,268,434			11,460,488			11,699,491			9,371,578			3,507,153			2,970,400			2,177,337			1,753,490			2,268,661			1,460,262			113,437,754			103,630,849
Liabilities
Current and long-term receivables
Deposits		22,504,545			17,256,615			1,744,432			1,522,101			6,248,228			6,979,171			1,628,653			1,860,591			7,085,322			6,134,721			2,709,817			2,317,106			1,612,810			1,428,502			18			37			34,165,269			30,510,790
Demand deposits		7,573,842			3,254,429			469,999			400,405			2,621,268			2,664,051			1,043,086			1,271,611			1,273,840			1,088,116			1,490,834			1,201,207			561,895			426,979			-			-			10,642,566			8,010,460
Savings deposits		-			-			461,805			364,484			-			-			-			-			-			-			838,648			713,030			795,189			673,317			-			-			2,095,642			1,750,830
Interbank deposits		2,556,857			1,226,482			58,874			5,323			1,464,557			1,251,907			256,473			338,396			6			12			9,617			38,428			-			87,591			-			-			222,421			582,199
Time deposits		12,373,846			12,775,704			753,754			751,889			2,162,403			3,063,213			329,094			250,584			5,811,476			5,046,593			370,718			364,441			255,726			240,615			18			37			21,204,640			20,167,301
Deposits received under securities repurchase agreements		5,958,351			2,273,013			87,301			94,068			-			-			1,397,069			840,239			121,906			257,047			-			-			-			-			-						6,546,028			2,966,808
Funds from acceptances and issuance of securities		2,178,411			1,928,813			-			-			2,478,028			2,026,701			3,095,879			2,346,329			1,013,984			365,759			-			-			-			-			-						8,746,068			6,554,266
Borrowings and onlending		8,837,395			8,826,996			34,879			12,011			647,856			916,341			55,748			23,821			589,873			748,898			33,725			6,081			106,558			4,852			375,792			57,311			10,306,614			10,402,692
DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)		1,592,617			958,617			480			663			220,337			251,460			1,234,578			788,055			198,889			112,065			6,503			-			-			-			-			-			1,904,760			1,014,383
Foreign exchange portfolio		18,784,176			3,380,787			53,935			26,019			1,798,913			27,051,215			623,670			552,299			447,183			124,900			22,200			25,991			57,618			17,978			-			396,855			21,254,217			30,254,129
Other liabilities		5,984,129			2,290,505			203,679			182,335			380,442			182,208			1,045,703			982,416			847,131			318,552			444,586			327,343			115,456			93,885			137,268			84,925			9,060,928			4,372,401
Deferred income		7,400			2,023			-			-			15,942			13,136			244			386			2,236			380			-			-			66			82			1,852						27,738			16,008
Minority interest in subsidiaries		-			-			821			829			37			95			28			-			134			108			-			-			-			-			8			10			274			280
Stockholders’ equity
Capital and reserves		8,777,581			8,136,814			150,772			171,827			1,353,807			1,729,930			7,203,278			4,042,269			1,265,863			1,221,548			245,430			292,616			229,869			149,615			1,714,990			884,043			20,193,749			16,546,363
Result for the period		909,865			774,851			(2,172	)		1,487			76,804			4,597			(16,416	)		24,083			126,970			87,600			44,892			1,263			54,960			58,576			38,733			37,081			1,232,109			992,729
Total		75,534,470			45,829,034			2,274,127			2,011,340			13,220,394			39,154,854			16,268,434			11,460,488			11,699,491			9,371,578			3,507,153			2,970,400			2,177,337			1,753,490			2,268,661			1,460,262			113,437,754			103,630,849
Statement of Income
Income from financial operations		1,407,962			1,911,848			177,259			206,178			248,650			569,709			161,121			173,905			530,990			460,498			111,109			63,223			123,311			117,684			(11,785	)		(8,860	)		2,722,537			3,300,367
Expenses on financial operations		(435,301	)		(945,020	)		(51,004	)		(61,067	)		(168,036	)		(475,377	)		(158,809	)		(175,218	)		(176,140	)		(139,970	)		(7,945	)		(9,524	)		(22,251	)		(25,305	)		(4,879	)		(1,469	)		(982,857	)		(1,764,396	)
Result of allowance for loan losses		(65,046	)		(151,891	)		(10,466	)		(21,413	)		16,739			(6,388	)		-			-			(75,735	)		(117,670	)		(11,269	)		(2,190	)		(6,303	)		(10,634	)		(2,779	)		-			(154,859	)		(310,186	)
Gross income from financial operations		907,615			814,937			115,789			123,698			97,353			87,944			2,312			(1,313	)		279,115			202,858			91,895			51,509			94,757			81,745			(19,443	)		(10,329	)		1,584,821			1,225,785
Other operating revenues/expenses		14,351			(10,445	)		(124,994	)		(112,719	)		21,285			(60,832	)		(17,669	)		36,702			(120,672	)		(94,523	)		(28,964	)		(51,039	)		(31,613	)		(17,825	)		73,467			61,164			(231,944	)		(120,724	)
Operating income		921,966			804,492			(9,205	)		10,979			118,638			27,112			(15,357	)		35,389			158,443			108,335			62,931			470			63,144			63,920			54,024			50,835			1,352,877			1,105,061
Non-operating income		(11,981	)		3,136			7,217			721			(149	)		(438	)		-			136			(5,331	)		(1,019	)		(29	)		7,741			314			1,018			(735	)		(197	)		(10,696	)		10,627
Income before taxes on income and profit sharing		909,985			807,628			(1,988	)		11,700			118,489			26,674			(15,357	)		35,525			153,112			107,316			62,902			8,211			63,458			64,938			53,289			50,638			1,342,181			1,115,688
Income tax		(120	)		(32,777	)		-			(10,070	)		(38,775	)		(16,530	)		-			(357	)		(26,128	)		(19,706	)		(18,010	)		(6,948	)		(8,498	)		(6,362	)		(14,557	)		(7,038	)		(106,087	)		(99,787	)
Statutory participation in income		-			-			-			-			(2,911	)		(5,548	)		(1,061	)		(11,085	)		-			-			-			-			-			-			-			(6,521	)		(3,972	)		(23,155	)
Minority interest in subsidiaries		-			-			(184	)		(143	)		1			1			2			-			(14	)		(10	)		-			-			-			-			1			2			(13	)		(17	)
Net income (loss)		909,865			774,851			(2,172	)		1,487			76,804			4,597			(16,416	)		24,083			126,970			87,600			44,892			1,263			54,960			58,576			38,733			37,081			1,232,109			992,729

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

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

(3)   BIEL Holdings AG, IPI - Itaúsa Portugal Investimentos, SGPS Lda. (51%), Itaú Europa Luxembourg Advisory Holding Company S.A.,Itaúsa Europa - Investimentos, SGPS, Lda., Itaú Europa, SGPS, Lda., Itaúsa Portugal - SGPS, S.A.,Banco Itaú Europa, S.A., BIE - Bank & Trust, Ltd., Banco Itaú Europa Luxembourg S.A., BIE Cayman, Ltd., Banco Itaú Europa International, Bie Bank & Trust Bahamas Ltd.,  Itaú Europa Securities Inc., Itaú Madeira Investimentos, SGPS, Ltda, BIE Directors, Ltd, BIE Nominees, Lda,  Fin Trade, Kennedy Director International Services S.A., Federal Director International Services, S.A., Bay State Corporation Limited and Cape Ann Corporation Limited; only at 09/30/2010, Banco Itau Suisse S.A. and only at 09/30/2009,  Brazcomp Limited, Banco Itaú Europa Fund Management Company, S.A and BIEL Fund Management Company S.A. , ;

(4)   BFB Overseas N.V., BFB Overseas Cayman, Ltd., Itau Bank Ltd., ITB Holding Ltd., Jasper International Investiment LLC, Unibanco Cayman Bank Ltd., Unicorp Bank & Trust Ltd., Unibanco Securities, Inc,   UBB Holding Company, Inc., Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd., Rosefield Finance Ltd. and only at 09/30/2010, UBT Finance S.A. and UBB Delaware I LLC ;

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

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

(7)   New company’s name of Interbanco S.A., approved by Banco Central Del Paraguay on 04/28/2010.

(8)   Afinco Americas Madeira, SGPS, Soc. Unipessoal Ltda., Zux Cayman Company Ltd., Zux SGPS, Lda., Agate SARL, Topaz Holding Ltd., Itaú USA Inc, Itaú International Investment LLC,  Albarus S.A., Banco Del Paraná S.A., Amethyst Holding Ltd., Garnet Corporation, Itaú International Holding Limited, Spinel Corporation, Tanzanite Corporation, Mundostar S.A., Karen International Ltd.,  Nevada Woods S.A., Itaú Asia Securities Ltd., Líbero Trading International Ltd., IPI - Itaúsa Portugal Investimentos, SGPS Lda. (49%), Itaú USA Securities, Inc., Itaú Middle East Securities Limited, Unipart B2B Investments, S.L., Tarjetas Unisoluciones S. A. de Capital Variable,  Proserv - Promociones Y Servicios S.A. de C. V, Itau UK Securities Ltd and, only at 09/30/2010,  Itaú Japan Asset Management Ltd and Itaú Beijing Investment Consultancy Limited;

(9)   Foreign consolidated information presents balances net of eliminations from consolidation.

NOTE 21 – RISK MANAGEMENT

Risk management is considered an essential tool for optimizing the use of capital and selecting the best business opportunities, in order to obtain the best risk and return ratio for its stockholders, being performed by ITAÚ UNIBANCO HOLDING through its Management Committees. The risk appetite management is centralized in one of these committees, being responsible for releasing general policies and the consolidated risk assessment, whereas the operational management is carried out by committees specific to each type of risk that establish parameters to be followed by the business areas, which in turn are independently monitored by the control area.

This process is continuous, permanently reviewed and supports the Group’s strategies.

Further details on the risk control process can be found on the website (www.itau-unibanco.com.br/ri), in the following route Corporate Governance/Risk Management.

I - Market Risk

Possibility of incurring losses arising from the variation in the market values of positions held by a financial institution, as well as from its financial margin, including risks of transactions subject to foreign exchange and interest rates, and share and commodities prices.

The risk control process starts with the setting of limits, approved by the Management Committee responsible for the market risk management, based on the risk appetite and financial capacity of each main unit. The market risk is controlled by the centralized risk control area, which carries out daily measurement, assessment and report activities by way of control units set in the Legal Entities.

Additionally, it carries out the consolidated monitoring, assessment and report of market risk information, aiming at providing input for the Management Committee’s follow-up and compliance with the Brazilian regulatory body.

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

Value at Risk (VaR)

The risk assessment process quantifies the exposure to and the appetite for risk using the risk limits based on statistical criteria (VaR Statistical: level of confidence at 99% - is a statistical measure that estimates the expected maximum potential economic loss under regular market conditions, taking into consideration the time period and confidence level), Stress simulations (Var Stress – is a measure that estimates the loss under extreme market conditions based on stress scenarios) and allocated economic capital.

The transactions of commercial bank activities and strategic positions are managed using assessments of economic risk and simulations of accounting exposures. Directional trading operations (operations aimed at finding the best market options, in order to take advantage of imperfections in the definition of prices and rates, in relation to the company's expectations), performed by proprietary desks, are mainly controlled by VaR Stress measures and loss prevention limits.

The limits and exposure to market risks are relatively low as compared to the company’s stockholders’ equity, according to the diversified management of risks. In September 2010 the Total VaR Global of ITAÚ UNIBANCO HOLDING was R$ 119.5 million (R$ 86.2 million in June 2010).

Susceptibility of portfolio in relation to market risk factors

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

In accordance with the operations classification criteria set forth in BACEN Resolution No. 3,464/07 and Circular No. 3,354/07 and in the New Capital Accord – Basel II, the analysis was fully applied to the trading and banking portfolios, which exposures will have significant impacts on the company’s current result.

The outcome of the sensitivity analysis, with correlation effects among the risk factors in the trading portfolio and net of tax effects, points out to a mark-to-market sensitivity of R$ 212 million and R$ 424 million for those scenarios with variations of 25% and 50%, respectively. In the consolidated portfolio (trading + banking), sensitivity is R$ 352 million and R$ 705 million for those scenarios with variations of 25% and 50%, respectively.

The sensitivity analyses shown in this report do not predict the dynamics of the operation of the risk and treasury areas, because once loss related to positions is found, risk mitigating measures are quickly taken, minimizing the possibility of significant losses.

The method, parameters and assumptions are in the Management Discussion and Analysis Report (www.itau-unibanco.com.br/ri).

ITAÚ UNIBANCO HOLDING’s Market Risk Management Policy, based on BACEN’s guidelines and the Basel Committee’s concepts, is a set of principles that drive its strategy towards control and management of market risk of all Business Units and Legal Entities of the Group. It is on the website (www.itau-unibanco.com.br/ri) in the route: Corporate Governance/Regulations and Policies/Operational Risk Management Policy.

II – Credit Risk

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

ITAÚ UNIBANCO HOLDING’s management is performed with the objective of maximizing the risk and return ratio of its assets, maintaining the credit portfolio quality at levels appropriate to the market segments in which it is operating. The strategy is aimed at creating value to its stockholders at levels higher than the minimum return value adjusted to risk.

ITAÚ UNIBANCO HOLDING establishes its credit policy based on internal factors, such as the client rating criteria and the portfolio development analysis, the registered default levels, the incurred return rates, the portfolio quality and the allocated economic capital; and external factors, related to the economic environment in Brazil and abroad, including market share, interest rates, market default indicators, inflation, consumption increase/decrease.

ITAÚ UNIBANCO HOLDING’s centralized process for making decisions and establishing a credit policy guarantees the synchrony of credit actions and optimization of business opportunities. In retail, decisions are made based on scoring models that are continuously followed up by evaluating the result of their application in groups to which credits were granted. In wholesale, the several committees are subordinated to the Management Committee responsible for the credit risk management through a structure of approval levels that ensures the detailed observation of transaction risk, as well as the necessary timing and flexibility of its approval.

To protect the institution against losses arising from loan operations, ITAÚ UNIBANCO HOLDING determines a provision level commensurate with the risk incurred in each operation through analyses that consider the aspects which determine the client’s credit risk. For each operation, the assessment and rating of the client/economic group, the operation rating, and status of the operation default are taken into account.

Additionally, ITAÚ UNIBANCO HOLDING recognizes a provision to cover possible additional losses that may arise due to any reversal of the economic cycle. This provision is usually quantified based on the historic behavior of credit portfolios in economic crisis situations (Note 8c).

 

The set of exposures, probabilities of default and the expected recovery of transactions are included in a capital model that calculates for extreme situations the Group’s capital requirement at a safety level of 99.99%.

III – Operational risk

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

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

In line with the principles of CMN Resolution No. 3,380, of June 29, 2006, ITAÚ UNIBANCO HOLDING formulated a policy on operational risk management, approved by its Audit Committee and ratified by its Board of Directors, to be followed by its local and foreign subsidiaries.

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

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

The Central Bank of Brazil's legislation compelling financial institutions to allocate capital for operational risk came into effect as from July 1, 2008.  ITAÚ UNIBANCO HOLDING opted for the use of the Alternative Standardized Approach and intends to start using the Advanced Measurement Approach in conformity with BACEN regulatory schedule related to the adoption of the advanced method.

In addition to statutory capital and with the purpose of preparing for the implementation of the advanced method, Itaú Unibanco Holding S. A. uses managerial models integrated to Management and also statistical models based on distribution of losses for the economic evaluation by business lines, thus enabling the allocation of capital for unexpected losses.

The description of the structure for the operational risk management is available on the website (www.itau-unibanco.com.br/ri), in the route: Corporate Governance/Regulations and Policies/Operational Risk Management Policy.

IV – Liquidity Risk

Possibility of occurring imbalances between tradable assets and falling due liabilities - "mismatching" between payments and receipts - which may affect the institution’s payment capacity, taking into consideration the different currencies and payment terms of their rights and obligations.

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

V - Subscription Risk

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

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

ITAÚ UNIBANCO HOLDING has been using models for managing its insurance operations since 2006 and anticipated the capital allocation legislation, SUSEP Resolution No. 178, which privileges institutions to adopt the internal models of risk management. The comprehensiveness of internal models goes beyond the lines set forth by the regulatory body, and practically includes the whole universe of insurance-related products.

NOTE 22 – ADDITIONAL INFORMATION

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

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

	09/30/2010			09/30/2009
Permanent foreign investments		21,425,858			17,539,092
Net amount of other assets and liabilities indexed to foreign currency, including derivatives		(36,793,638	)		(31,361,012	)
Net foreign exchange position		(15,367,780	)		(13,821,920	)

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

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

	Amount				Amount (*)				Number of funds
	09/30/2010		09/30/2009		09/30/2010		09/30/2009		09/30/2010		09/30/2009
Investment funds		271,630,527		249,097,384		271,630,527		249,097,384		1,603		1,626
Fixed income		246,470,926		221,461,429		246,470,926		221,461,429		1,362		1,329
Shares		25,159,601		27,635,955		25,159,601		27,635,955		241		297
Managed portfolios		147,500,285		116,879,501		85,864,460		61,248,464		16,781		11,536
Customers		79,850,022		55,514,586		70,295,110		48,421,433		16,705		11,454
Itaú Group		67,650,263		61,364,915		15,569,350		12,827,031		76		82
TOTAL		419,130,812		365,976,885		357,494,987		310,345,848		18,384		13,162

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

d) Funds of consortia

	09/30/2010		09/30/2009
Monthly estimate of installments receivable from participants		48,930		37,651
Group liabilities by installments		3,187,153		2,240,157
Participants – assets to be delivered		2,972,975		2,082,671
Funds available for participants		319,611		257,280
(In units)
Number of managed groups		664		649
Number of current participants		150,512		119,787
Number of assets to be delivered to participants		91,648		69,017

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

Donations made by the consolidated companies totaled R$ 194 (R$ 378 at 09/30/2009) in the period, and the Foundation’s social net assets totaled R$ 538,238 (R$ 481,634 at 09/30/2009). The income arising from its investments will be used to achieve the Foundation’s social purposes.

f) Instituto Itaú Cultural – IIC - ITAÚ UNIBANCO HOLDING and its subsidiaries are supporters of Instituto Itaú Cultural - IIC, an entity formed to grant incentives, promote and preserve Brazil’s cultural heritage.During the period, the consolidated companies donated the amount of R$ 36,917 (R$ 30,360 from January 1 to September 30, 2009).

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

h) ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Instituto Unibanco de Cinema, an entity whose objective is (i) the fostering of culture in general; and (ii) providing access of low-income population to cinematography, videography and similar productions, for which it shall maintain movie theaters owned or managed by itself, and theaters to screen art films, videos, video-laser discs and other related activities, as well as to screen and divulge films of great importance, especially those produced in Brazil.During the period from January 1 to September 30, 2010, the consolidated companies did not make any donation (R$ 9,632 from January 1 to September 30, 2009).

i) Associação Clube “A” - ITAÚ UNIBANCO HOLDING and is subsidiaries sponsor Associação Clube “A”, an entity whose objective is the provision of social services for the welfare of beneficiaries, in the way and conditions established by its Internal Rules, and according to the funds available.These services may include, among others, the promotion of cultural, educational, sports, entertainment and health care activities.During the period, the consolidated companies donated the amount of R$ 400 (R$ 425 from January 1 to September 30, 2009).

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

k) Exclusions of nonrecurring effects net of tax effects

	ITAÚ UNIBANCO HOLDING						ITAÚ UNIBANCO HOLDING CONSOLIDATED
	01/01 to 09/30/2010			01/01 to 09/30/2009			01/01 to 09/30/2010			01/01 to 09/30/2009
Sale of investments		-			211,652			-			211,652
Program for Settlement or Installment Payment of Federal Taxes - Law No. 11,941/09 (Note 12d)		144,712			-			144,712			-
Associação Itaú Unibanco x CBD joint venture		-			(363,000	)		-			(363,000	)
Provision for contingencies – economic plans		(335,149	)		(165,576	)		(335,149	)		(165,576	)
Amortization of goodwill (*)		-			-			-			(506,483	)
TOTAL		(190,437	)		(316,924	)		(190,437	)		(823,407	)

(*) From 01/01 to 09/30/2009, refers basically to REDECARD operation.

l) Reclassifications for comparison purposes – The Company reclassified the balances as of September 30, 2009, for financial statements comparisons purposes, in view of the regrouping of the following headings: in the Balance Sheet, the reclassification of Other Liabilities – Tax and Social Security Contributions to Sundry; in the Statement of Income, the reclassification of Profit Sharing to Personnel Expenses and Income Tax and Social Contribution; and the reclassification of Dividends Received from Other Investments from Other Operating Revenues (Expenses) and Results from Securities and Derivative Financial Instruments to Equity in Earnings of Affiliates and Other Investments.

	Prior disclosure			Reclassification			Reclassified balances
CURRENT AND LONG-TERM LIABILITIES		559,862,705			-			559,862,705
OTHER LIABILITIES		128,278,275			-			128,278,275
Tax and social security		23,456,384			(95,823	)		23,360,561
Sundry		16,682,437			95,823			16,778,260
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		612,398,934			-			612,398,934
STATEMENT OF INCOME
INCOME FROM FINANCIAL OPERATIONS		58,364,631			(33,298	)		58,331,333
Securities and derivative financial instruments		18,962,851			(33,298	)		18,929,553
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES		35,187,717			(33,298	)		35,154,419
GROSS INCOME FROM FINANCIAL OPERATIONS		24,245,381			(33,298	)		24,212,083
OTHER OPERATING REVENUES (EXPENSES)		(9,758,146	)		(1,581,017	)		(11,339,163	)
Personnel expenses		(7,234,198	)		(1,614,315	)		(8,848,513	)
Equity in earnings of affiliates and other investments		147,071			33,298			180,369
OPERATING INCOME		14,487,235			(1,614,315	)		12,872,920
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		14,876,906			(1,614,315	)		13,262,591
INCOME TAX AND SOCIAL CONTRIBUTION		(6,162,325	)		542,660			(5,619,665	)
Due on operations for the period		(6,770,364	)		560,159			(6,210,205	)
Related to temporary differences		608,039			(17,499	)		590,540
PROFIT SHARING		(1,237,998	)		1,071,655			(166,343	)
Employees - Law No. 10,101 of 12/19/2000		(1,071,655	)		1,071,655			-
NET INCOME		6,853,820			-			6,853,820

Report of Independent Auditors

To the Board of Directors and Stockholders

Itaú Unibanco Holding S.A.

1 We have carried out limited reviews of the balance sheets of Itaú Unibanco Holding S.A. (Bank) and Itaú Unibanco Holding S.A. and its subsidiary companies (consolidated) as of September 31, 2010 and 2009, and the related statements of income, of changes in stockholders´ equity, of cash flows and of added value, as well as the consolidated statements of income, of cash flows and of added value for the three-month periods then ended. These financial statements are the responsibility of the Bank´s management. Our responsibility is to issue a report on these financial statements.

2 Our reviews were conducted in accordance with specific standards established by the Institute of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting Council (CFC), and mainly comprised: (a) inquiries of and discussions with management responsible for the accounting, financial and operating areas of the Bank and its subsidiaries with regard to the main criteria adopted for the preparation of the financial statements and (b) a review of the significant information and of the subsequent events which have, or could have, significant effects on the financial position and operations of the Bank and its subsidiaries.

3 Based on our limited reviews, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be stated in accordance with accounting practices adopted in Brazil applicable to financial institutions regulated by the Brazilian Central Bank.

São Paulo, November 1, 2010

PricewaterhouseCoopers	Paulo Sergio Miron
Auditores Independentes	Contador CRC 1SP173647/O-5
CRC 2SP000160/O-5

ITAÚ UNIBANCO HOLDING S.A.

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

OPINION OF THE FISCAL COUNCIL

The effective members of the Fiscal Council of ITAÚ UNIBANCO HOLDING S.A., having reviewed the financial statements for the period from January to September 2010, have verified the accuracy of all items examined and, in view of the unqualified opinion of PricewaterhouseCoopers Auditores Independentes, understand that they adequately reflect the company’s capital structure, financial position and the activities conducted during the period.

São Paulo, November 1, 2010.

IRAN SIQUEIRA LIMA

President

ALBERTO SOZIN FURUGUEM

Member

ARTEMIO BERTHOLINI

Member