MANAGEMENT REPORT – January to September 2011

To our Stockholders:

We present the Management Report and the financial statements of Itaú Unibanco Holding S.A. (Itaú Unibanco) and its subsidiaries for the period from January to September 2011, prepared 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

Itaú Unibanco was selected, for the twelfth consecutive year, to make up the Dow Jones Sustainability WorldIndex(DJSI), the world’s main sustainability index, in its 2011/2012 review, being the sole Latin American bank to comprise such index since its inception. The new portfolio comprises 342 companies from 30 countries in the Americas, Europe, Asia, and Africa, of which 8 only are Brazilian companies. In this year's edition, Itaú Unibanco achieved the highest rate (100%) in the banking sector for the “Human Capital Development” and “Business Risks / Project Finance”  requirements, and achieved the highest score (98%) in the “Anti-crime and Anti-fraud Actions / Policies.” Itaúsa – Investimentos Itaú S.A., classified for the fifth consecutive year as leader of the financial services sector, and Redecard S.A. (for the third consecutive year), subsidiary of Itaú Unibanco Holding S.A., are also components in this review of the index.

In this quarter, following the complete integration of all Itaú Unibanco branches completed in 2010, the bank carries on reshaping its service network based on a new model of client relationship, and expects to have 500 units remodeled by the end of 2011. In that context, the Itaú Uniclass services started being expanded to all clients in the retail net network that concentrate their financial relationship with the bank. New differentials have been implemented to meet the needs of those clients: dedicated account managers, exclusive tellers at more than 1,300 branches, higher credit limits, investment advice, and over-the-phone management services before or after business hours.

In Chile, Itaú Unibanco has successfully acquired the high net worth client portfolio of HSBC bank. The transaction included the purchase of HSBC’s Advance and Premier segments, and ranks Itaú as the lead bank in that country's high net worth clients segment. The transaction contemplated the acquisition of four branches located in Santiago and their executive managers and employees who are now members of the Itaú Unibanco staff. Total assets exceed US$ 20 million and the number of clients exceeds 4 thousand. With this acquisition, the bank now owns 84 branches in Chile, with Itaú's share in the Chilean high net worth clients segment being 18%.

In addition, Itaú Unibanco in Chile and Munita, Cruzat & Claro (MCC) entered into an agreement to establish a new company to make joint efforts to develop the private banking business in that country. The new company will be a subsidiary of Itaú Unibanco managed by MCC, a company with over 28 years of expertise in the Chilean market.

In 2011, in the period up to October 14, 2011, commencement date of the blackout period, when the repurchase of shares is prohibited in view of the disclosure of the financial statements for the first nine months, the Bank acquired 40,970,900 preferred shares at the average price of R$ 31.69. In the quarter, 25,470,900 shares were acquired at the average price of R$ 29.14, within the scope of a share repurchase program, renewed for an additional year at the Board of Directors’ meeting of October 31, 2011.

Itaú Unibanco ranked ninth among world’s banks at the end of third quarter of 2011, having the market value (R$ 131.3 billion) as parameter, according to Bloomberg.

Main Results

Following are the main results of Itaú Unibanco for the period from January to September 2011, 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). www.itau-unibanco.com.br/ri.

	Jan to Sep/11			Jan to Sep/10			Change (%)			3rd Quarter/11			2nd Quarter/11			Change (%)
Income – R$ billion (1)
Gross income from financial operations		34.5			33.0			4.5	%		7.6			11.2			-32.3	%
Expenses for allowance for loan losses		(14.5	)		(12.0	)		20.9	%		(5.0	)		(5.1	)		-2.7	%
Income from recovery of credits written off as loss		3.9			2.9			35.0	%		3.9			2.6			50.6	%
Income from services, income from bank charges and income from insurance, pension plan and capitalization		15.9			14.9			6.3	%		5.5			5.3			3.6	%
Personnel, administrative and other operating expenses		(23.4	)		(22.2	)		5.3	%		(8.2	)		(7.6	)		8.7	%
Income tax and social contribution		(2.3	)		(4.0	)		-43.1	%		1.1			(1.8	)		0.0	%
Recurring net income		10.9			9.6			13.2	%		3.9			3.3			18.8	%
Net income		10.9			9.4			16.0	%		3.8			3.6			5.7	%
Results per share – R$
Recurring net income (2)		2.41			2.12			13.6	%		0.87			0.73			19.0	%
Net income (2)		2.41			2.08			15.9	%		0.84			0.79			5.9	%
Book value (2)		15.04			12.62			19.2	%		15.12			14.57			3.7	%
Dividends and interest on capital (net of taxes)		0.4668			0.6363			-26.6	%		0.4668			0.3020			54.6	%
Price of preferred share (PN) (3)		29.09			40.13			-27.5	%		29.09			36.36			-20.0	%
Market capitalization – R$ billion (4)		131.3			182.2			-28.0	%		131.3			164.9			-20.4	%

										Change (%)
	Sep 30 2011			Dec 31 2010			Sep 30 2010			Sep 30/10 to Sep 30/11			Dec 31/10 to Sep 30/11
Balance Sheet - R$ billion
Total assets		837.0			751.4			683.0			22.6	%		11.4	%
Total loans (including endorsements and sureties)		382.2			335.5			311.3			22.8	%		13.9	%
Free, raised and managed own assets		1,117.1			1,009.6			940.3			18.8	%		10.6	%
Subordinated debt		37.6			33.8			33.0			14.0	%		11.3	%
Stockholders’ equity		68.2			60.9			57.2			19.2	%		12.0	%
Referential equity (financial system consolidated)		88.1			78.7			73.1			20.5	%		12.0	%
Financial ratios (%)
Recurring return on average equity		22.4	%		23.5	%		23.8	%	-1,3 p.p			-0,3 p.p
Return on average equity		22.5	%		24.1	%		23.3	%	-0,7 p.p			-1,3 p.p
Return on average assets		1.9	%		2.0	%		2.0	%	-0,1 p.p			-0,1 p.p
Efficiency ratio (5)		47.8	%		49.1	%		48.1	%	-0,3 p.p			-1,0 p.p
Basel ratio (financial system consolidated)		15.1	%		15.8	%		15.5	%	-0,4 p.p			-0,3 p.p
Fixed assets ratio (financial system consolidated)		49.8	%		37.3	%		37.8	%	12,0 p.p			0,5 p.p

(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

Net income for 2011 reached R$ 11 billion, with annualized return of 22.5% on average equity (23.3% for the same period of prior year). Recurring net income was R$ 10.9 billion, with annualized return of 22.4%. Itaú Unibanco paid or provided for its own taxes and contributions in the total amount of R$ 12.0 billion for the period of January to September 2011. The Bank also withheld and passed on taxes in the amount of R$ 8.4 billion, which were directly levied on financial operations.

Consolidated assets totaled R$ 837.0 billion and consolidated stockholders’ equity totaled R$ 68.2 billion at September 30, 2011.

Free, raised and managed assets totaled R$ 1.1 trillion at September 30, 2011, an increase of 10.6% when compared to December 31, 2010.

Loan Portfolio and Default:

At September 30, 2011, loan portfolio, including endorsements and sureties, reached R$ 382.2 billion, an increase of 13.9% as compared to December 31, 2010, and the following are noteworthy:

Individuals Segment:

· In Brazil, loans to individuals segment reached R$ 141.5 billion, 13.1% higher than the amount recorded at December 31, 2010.

· The real estate portfolio reached R$ 12.6 billion, an increase of 56.2% as compared to the end of 2010.

· Products such as credit card, personal loan and payroll advance loan posted growth of 7.7%, 48.8% and 21.2% respectively, when compared to the result at December 31, 2010. Leader in the consumer credit segment in Brazil, Itaú Unibanco, by means of Itaucard, Hipercard, and partnerships, offers a wide range of products to accountholders and non-accountholder clients, originated in proprietary channels and through partnerships with companies that have outstanding performance in the markets they are engaged. In the months from January through September 2011, the transacted amount reached R$ 111.4 billion, a 20.9% increase in relation to the December 31, 2010.

· Leader in the vehicle financing segment, Itaú Unibanco reached a balance of R$ 60.0 billion, in the loan portfolio at September 30, 2011. New granting in the vehicle financing and lease segment totaled R$ 20.1 billion. Lease, finance and Finame operations for heavy vehicles reached a balance of R$ 8.2 billion at September 30, 2011.

Corporate Segment:

· At September 30, 2011, the loan and joint obligations portfolio of Itaú BBA, a segment that operates with companies with revenue over R$ 150 million, reached R$ 134.4 billion, a 18.6% increase as compared to December 2010 and 9.7% as compared to the last quarter. Foreign trade financing posted an increase of 43.1% increase when compared to December 2010 and of 27.3% when compared to the previous quarter. In the Onlending area, a 8.2% growth was posted in the BNDES credit facilities as compared to December 2010.

· The very small, small and middle market company segment, which serves companies with annual revenue of up to R$ 150 million, posted at September 30, 2011, a balance for its loan portfolio, including endorsements and sureties, of R$ 86.9 billion, a 10.6% increase as compared to December 31, 2010. The growth in the third quarter arose from the middle market company segment.

· Itaú Unibanco and BNDES (Brazilian Social and Economic Development Bank) entered into a master agreement that expands the partnership to stimulate Brazilian exports to Latin America. This initiative started in Argentina, and as from July clients of Banco Itaú Chile have access to a credit line based on the rules of Exim Post Shipment (BNDES Exim Automático) to finance sales abroad of capital goods manufactured in Brazil.

· In Chile, Argentina, Uruguay and Paraguay, credit operations to companies amount to R$ 12,604 million, a 42.2% growth when compared to December 2010.

Total default rate, considering the balance of transactions overdue for over 90 days reached 4.7% in September 2011, posting an increase of 0.5% as compared to December 2011. The 31-to-90 day default rate reached 2.6% for total loan portfolio. This rate reached 4.2% for the portfolio of credit to individuals and 1.3% for the portfolio of credit to companies at the end of September 2011.

Business Units:

The insurance, pension plan and capitalization operations revenue from premiums, pension contributions and capitalization certificates reached R$ 13.7 billion in the period from January to September 2011, and technical provisions totaled R$ 70.1 billion at the end of September 2011, considering the foreign operations.

Itaú Unibanco holds 30% of capital of Porto Seguro, which contributed with R$ 118.4 million to the bank’s net income. Noteworthy is the significant share in the automobile and residence insurance lines, with 27.6% and 27.9%, respectively.

Redecard posted net income of R$ 343.6 million in the third quarter of 2011, a 29% increase in financial volume when compared to the third quarter of 2010. Net income for the period amounted to R$ 947.5 million, a 31% increase in financial volume in relation to the same period of 2010.

In the Investment Banking area – Variable Income, Itaú BBA was the underwriter of 18 out of 22 public offerings, which totaled R$ 13.2 billion and accounted for 82% of total transactions and 87% of the financial volume issued, consolidating its leading position in this market, in accordance with the Brazilian Financial and Capital Markets Association (ANBIMA) ranking. It also provided financial advisory to 21 merger and acquisitions operations and closed the period in the first position in the Thomson ranking for volume, thus accumulating a total of R$ 20.5 billion in 2011.

In Fixed Income area, Itaú BBA took part, in the first nine months of 2011, in operations of debentures, promissory notes and securitization that totaled R$ 9.6 billion. In the ANBIMA ranking for distribution of fixed income, Itaú BBA continued in the first position, with a 35% market share. In international issues of fixed income, Itaú BBA acted as the joint bookrunner of offerings, with a total volume of US$ 13.7 billion, reaching the 3rd place in the ANBIMA ranking of Capital Markets International Issues for September 2011.

In the period from January to September 2011, Itaú Corretora intermediated at BM&Bovespa a volume of R$ 149.4 billion with individual, institutional investors, corporate and foreign customers. Itaú Corretora was ranked fourth among the brokerage companies, with a 6.1% market share.

Capital Strength:

Itaú Unibanco Holding is assigned a rating by international risk rating agencies, which reflects its operational performance, strength and quality of its management, in addition to assessing the issuer's capacity to honor its financial commitments.

The Based on such assessment, Itaú Unibanco Holding S.A. received the best ratings of the Brazilian Market, obtaining a recent improvement from Baa2 to Baa1 rating assigned by Moody’s to long-term deposits in foreign currency.

Basel ratio was 15.1% at the end of September 2011, based on the financial system, showing the strength of the bank’s capital basis. In this quarter, we repurchased Subordinated CDBs in the amount of R$ 1.3 billion and raised additional R$ 0.5 billion in new issues of subordinated financial bills representing a significant increase in the bank's capital basis.

People

Itaú Unibanco employed approximately 106 thousand people at the end of September 2011, including approximately 6 thousand employees in foreign units. By September 2011, 11,017 employees had been hired through external recruiting, of which 899 were interns, aiming at meeting the business expansion and turnover  requirements. Aiming at promoting the recognition of its professionals, Itaú Unibanco reallocated internally 5,381 employees up to September 2011, through internal vacancies and 1,013 employees relocated by means of the Relocation Center in this period.

The employee’s fixed compensation plus charges and benefits totaled R$ 8.8 billion for the third quarter. Welfare benefits granted to employees and their dependants totaled R$ 1,5 billion. Additionally, over R$ 183 million were invested in training programs during the period.

In this period, Itaú Unibanco was considered one of the 150 Great Places to Work, of the Você S/A./Exame magazine (partnership with Fundação Instituto de Administração) and 100 Great Places to Work of Época magazine (partnership with Great Place to Work). In addition, it was a Highlight in HR in the survey conducted by Você S.A./Exame magazine and the second most wanted by professionals, besides being the one with the highest number of new hires, according to Época magazine.

Sustainability

Itaú Unibanco was awarded The World’s Most Sustainable Bank in the 2011 FT/IFC Sustainable Finance Awards, by the British newspaper Financial Times and IFC (International Finance Corporation), the financial division of the World Bank. The bank was also recognized as the Most Sustainable of the Americas, competing with institutions from Argentina and Mexico.

Itaú was awarded the Época Award for Climate Changes in the Services category. The award is granted to the top twenty institutional investors in environmental preservation and sustainability in Brazil.

Financial Education to employees, clients and non-clients was one of the bank’s priorities in 2011. By means of about 100 lectures given in companies, trade fairs and events, we educated on the Responsible Use of Money with institutional rather than commercial approach, to almost 9 thousand people, both clients and non-clients.

Additionally, 904 volunteers of Fundação Itaú Social were trained to put on the workshop on the responsible use of money, which addresses concepts of financial education and family budget for young people who disseminate such concepts to their families and friends.

Fundos Itaú Ecomudança (fixed income fund), options for investors concerned about the future of the next generations, allocate up to 30% of their administration fees to not-for-profit organizations engaged in efforts to reduce the greenhouse gas emissions.

Social and Cultural Investments

Itaú Unibanco’s social and cultural investments amounted to approximately R$ 152.4 million in the third quarter of 2011, and noteworthy were the investments in education and culture that reached R$ 100.3 million.

In September 2011, Fundação Itaú Social launched in a national campaign to encourage reading among children up to six years old. The initiative is one of “Itaú Criança” (Itaú Child) program actions, which purpose is to contribute to high-quality education, fundamental right of children and adolescents. Four thousand “Bibliotecas Itaú Criança” (Itaú Child libraries) including 100 titles carefully selected for children, teenagers and adults, totaling 400 thousand books to be distributed to the organizations where these actions are to take place.

 In August 2011, the actions in preparation for the transfer of the “Jovem do Futuro” (youth with a future) program operated by Instituto Unibanco (IU) to the education systems of six Brazilian states were first taken. A partnership was established between IU and the Ministry of Education (MEC) and the Department of Strategic Affairs of the Presidency of the Republic (SAE) within the scope of that transfer process. MEC incorporated the “Jovem de Futuro” content into its Innovative Middle School Education program, converting it into federal public policy and establishing an official channel of financial support to the benefited schools.

Itaú Cultural was chosen by the Department of Culture of the Municipality of São Paulo, in a public invitation process, to be the new manager of the Auditorium Ibirapuera, one of the main cultural venues of the capital of São Paulo, with annual investments of approximately R$ 10 million.

Coleção Brasiliana Itaú (Itaú Brasiliana collection), visited by over 164 thousand people in São Paulo, Belo Horizonte, Rio de Janeiro, Fortaleza and Brasília has been exhibited since October 13 in Curitiba, at the Oscar Niemeyer Museum. This collection has approximately 300 items, including paintings, watercolors, drawings, pictures, maps and books related to the history of Brazil.

Awards and Recognition

Major awards and recognitions granted to Itaú Unibanco Holding S.A. in the period from January to September 2011:

· IR Magazine Brazil Awards 2011, granted by IR Magazine, a global publication about investor relations. Itaú Unibanco won in the Brazilian Grand prix category as the best investor relations program, considering companies with market capitalization over R$ 3 billion;

· Itaú Unibanco leads the ranking "The 25 Best Banks in Latin America", published yearly by the AméricaEconomia magazine;

· Top of Mind in the banks category, in accordance with a survey conducted by ABA (Brazilian Advertisers Association) in partnership with Consultoria TopBrands. Itaú Unibanco was recognized for the third consecutive year;

· Top 1000 World Banks ranking, according to The Banker British magazine. Itaú Unibanco ranked first among the Brazilian financial institutions. In the global bank general rank, Itaú occupies the 34th position. In addition, it ranked twelfth in the list of the world’s most profitable banks;

· Os Melhores da Dinheiro (The Best of Dinheiro) sponsored by Isto É Dinheiro magazine, elects the companies excelling in each sector every year. Itaú Unibanco received the award in the Best Corporate Governance category in the banking sector;

· Best Investment Bank for Brazil, granted to Itaú BBA by Latin Finance, one of the most important Brazilian publications about corporate finance in Latin America. This award assesses and recognizes the excellence of financial institutions in banking services, products and investments;

· Institutional Investor magazine elected Itaú BBA’s team, for the second consecutive year, as the best research team in Brazil and the fifth best in Latin America, and for the first time as the best sales team in Latin America;

· Prêmio Intangíveis Brasil (PIB - Brazil Intangibles Award), according to Grupo Padrão / DOM Strategy Partners, Itaú Unibanco was the winner in the Corporate Governance category.

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 2011, 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 2, 2011 – Service agreement related to the analysis of the accounting recording process by the Treasury flow desk of the Itaú Unibanco Financial Group - Itaú Unibanco Holding S.A – Brazil;

· February 10, 2011 – Service agreement for the limited assurance of the data of the inventory of greenhouse gas emission – Itaú Unibanco Holding – Brazil;

· March 17, 2011 – Advisory service agreement related to tax effects generated in Banco Itaú Chile – Banco Itaú Chile S.A;

· March 28, 2011 – Attendance in the training in the QI/FATCA course - Module 3 Critical Customer Groups – Banco Itaú Europa Luxembourg S.A - Luxembourg;

· April 5, 2011 – Professional service agreement related to the improvement of knowledge of our internal auditors regarding the practices and recommendations for the performance of the internal audit activity (THE IIA The Institute of Internal Audit) – Redecard S.A – Brasil

· May 13, 2011 – Attendance in the training course Finance: Consolidation of Accounts – Banco Itaú BBA International S.A. – Portugal;

· May 18, 2011 – Consulting service agreement in the Asset Management International project to obtain the GIPS (Global Investment Performance Standards) certification for investment funds – Itaú USA Asset Management Inc. – United States of America;

· June 9 and July 11, 2011 - License for using an electronic library of international accounting standards (Comperio) – Banco Itaú Europa International – United States of America; Itaú Unibanco S.A and Itaú Unibanco Holding S.A.– Brazil;

· August 1, 2011 – Agreement for the acquisition of macroeconomic projection reports and presentations on the progress of the national, regional and global economy offered by Club Económico - Banco Itaú Paraguay S.A. – Paraguay;

· August 2, 2011 – Service agreement related to the assessment of the BSA/AML and OFAC program of the New York branch of Itaú Unibanco S.A. – Itaú Unibanco S.A. – New York;

· August 11, 2011 – Agreement for the extension of review services of aspects related to the Business Continuity Program of Banco Itaú BBA – Banco Itaú BBA S.A. – Brazil;

· August 30, 2011 – Participation in the salary survey named Encuesta Financiera de Remuneraciones y Beneficios - Banco Itaú Paraguay S.A. – Paraguay;

· September 6, 2011 – Service agreement for the review of documents to be submitted to the Financial Services Authority – FSA – to open its subsidiary in the United Kingdom – Banco Itaú BBA International S.A. – Portugal;

· September 15, 2011 – Service agreement related to the assessment of regulatory aspects of transfer of Banco Itaú Suisse’s trading desk. – Banco Itaú Suisse S.A. Switzerland.

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 – 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 1.6% 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 their trust.

(Approved at the Board of Directors' Meeting of October 31, 2011).

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			CARLOS EDUARDO DE SOUZA LARA
					EDUARDO HIROYUKI MIYAKI
					EMERSON MACEDO BORTOLOTO
AUDIT COMMITTEE					JACKSON RICARDO GOMES
	President				MARCO ANTONIO ANTUNES
		GUSTAVO JORGE LABOISSIÈRE LOYOLA			ROGÉRIO PAULO CALDERÓN PERES
	Members
		ALKIMAR RIBEIRO MOURA		(*) Investor Relations Officer
		EDUARDO AUGUSTO DE ALMEIDA GUIMARÃES
		GUY ALMEIDA ANDRADE
FISCAL COUNCIL
	President
		IRAN SIQUEIRA LIMA
	Members
		ALBERTO SOZIN FURUGUEM			Accountant
		ARTEMIO BERTHOLINI			CARLOS ANDRÉ HERMESINDO DA SILVA
					CRC - 1SP281528/O-1

ITAÚ UNIBANCO S.A.
Chief Executive Officer and General Manager		Directors (continued)
	ROBERTO EGYDIO SETUBAL		FABIO DI PACE MENEZES
			FERNANDO DELLA TORRE CHAGAS
Executive Vice-Presidents			FERNANDO JOSÉ COSTA TELES
	ALEXANDRE DE BARROS		GILBERTO TRAZZI CANTERAS
	ALFREDO EGYDIO SETUBAL		HENRIQUE PINTO ECHENIQUE
	JOSÉ CASTRO ARAÚJO RUDGE		HENRIQUE RUTHER
	JOSÉ ROBERTO HAYM		IBRAHIM JOSÉ JAMOUR
	LUÍS OTAVIO MATIAS		JACKSON RICARDO GOMES
	MÁRCIO DE ANDRADE SCHETTINI		JASON PETER CRAUFORD
	MARCO AMBROGIO CRESPI BONOMI		JEAN MARTIN SIGRIST JÚNIOR
	MARCOS DE BARROS LISBOA		JOÃO ANTONIO DANTAS BEZERRA LEITE
	RICARDO VILLELA MARINO		JOÃO LUIZ DE MEDEIROS
	SÉRGIO RIBEIRO DA COSTA WERLANG		JORGE LUIZ VIEGAS RAMALHO
			JOSÉ VIRGILIO VITA NETO
Executive Directors			LEILA CRISTIANE BARBOZA BRAGA DE MELO
	CAIO IBRAHIM DAVID		LINDA AGARINAKAMURA
	CARLOS EDUARDO MONICO		LUÍS EDUARDO GROSS SIQUEIRA CUNHA
	CELSO SCARAMUZZA		LUIS TADEU MANTOVANI SASSI
	CLAUDIA POLITANSKI		LUIZ ANTONIO NOGUEIRA DE FRANÇA
	DEMOSTHENES MADUREIRA DE PINHO NETO		LUIZ EDUARDO LOUREIRO VELOSO
	FERNANDO MARSELLA CHACON RUIZ		LUIZ FERNANDO OLIVEIRA BARRICHELO
	LUIS ANTONIO RODRIGUES		LUIZ SEVERIANO RIBEIRO
	NATALÍSIO DE ALMEIDA JÚNIOR		MARCELO BOOCK
	OSVALDO DO NASCIMENTO		MARCELO LUIS ORTICELLI
			MARCO ANTONIO ANTUNES
Directors			MARCO ANTONIO SUDANO
	ADRIANO BRITO DA COSTA LIMA		MARCOS ANTÔNIO VAZ DE MAGALHÃES
	ALBERTO FERNANDES		MARCOS AUGUSTO CAETANO DA SILVA FILHO
	ANA CARLA ABRÃO COSTA		MARCOS SILVA MASSUKADO
	ANDRÉ SAPOZNIK		MARCOS VANDERLEI BELINI FERREIRA
	ANDRÉA MATTEUCCI PINOTTI CORDEIRO		MARIO LUIZ AMABILE
	ANTONIO CARLOS AZZI JÚNIOR		NATACHA LITVINOV
	ANTONIO CARLOS RICHECKI RIBEIRO		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		RENATA HELENA DE OLIVEIRA TUBINI
	CARLOS EDUARDO DE SOUZA LARA		RENÊ MARCELO GONÇALVES
	CARLOS EDUARDO MACCARIELLO		RICARDO LIMA SOARES
	CARLOS EDUARDO PEREIRA TEIXEIRA		RICARDO ORLANDO
	CARLOS HENRIQUE DONEGÁ AIDAR		RICARDO RIBEIRO MANDACARU GUERRA
	CARLOS ORESTES VANZO		RICARDO URQUIJO LAZCANO
	CESAR PADOVAN		ROBERTO FERNANDO VICENTE
	CÍCERO MARCUS DE ARAÚJO		ROBERTO MASSARU NISHIKAWA
	CLÁUDIO CESAR SANCHES		RODOLFO HENRIQUE FISCHER
	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
	EDILSON PEREIRA JARDIM		SERGIO SOUZA FERNANDES JÚNIOR
	ERNESTO ANTUNES DE CARVALHO		VILMAR LIMA CARREIRO
			WAGNER BETTINI SANCHES

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
				ÁLVARO DE ALVARENGA FREIRE PIMENTEL
	Vice-Chairmen			ANDRÉ CARVALHO WHYTE GAILEY
		FERNÃO CARLOS BOTELHO BRACHER		ANDRÉ DEL BEL CURY (*)
		PEDRO MOREIRA SALLES		ANDRÉ FERRARI
				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		FERNANDO HENRIQUE MEIRA DE CASTRO
		JOÃO DIONÍSIO FILGUEIRA BARRETO AMOÊDO		FLAVIO DELFINO JUNIOR
		SÉRGIO RIBEIRO DA COSTA WERLANG		GILBERTO FRUSSA
				GUILHERME DE ALENCAR AMADO
EXECUTIVE BOARD				GUSTAVO HENRIQUE PENHA TAVARES
	Chief Executive Officer			HENRIQUE RUTHER
		CANDIDO BOTELHO BRACHER		ILAN GOLDFAJN
				JOÃO CARLOS DE GÊNOVA
	Managing Vice-Presidents			JOÃO MARCOS PEQUENO DE BIASE
		ALBERTO FERNANDES		JORGE BEDRAN JETTAR
		DANIEL LUIZ GLEIZER		JOSÉ AUGUSTO DURAND
		JEAN-MARC ROBERT NOGUEIRA BAPTISTA ETLIN		JOSÉ IRINEU NUNES BRAGA
		RODOLFO HENRIQUE FISCHER		LILIAN SALA PULZATTO KIEFER
				MARCELLO PECCININI DE CHIARO
	Executive Directors			MARCELO ARIEL ROSENHEK
		ALEXANDRE JADALLAH AOUDE		MARCELO DA COSTA LOURENÇO
		ANDRÉ LUÍS TEIXEIRA RODRIGUES		MARCO ANTONIO SUDANO
		ELAINE CRISTINA ZANATTA RODRIGUES VASQUINHO		MARCOS AUGUSTO CAETANO DA SILVA FILHO
		FERNANDO FONTES IUNES		MÁRIO LÚCIO GURGEL PIRES
		MARCELO TREVISAN MARANGON		MÁRIO LUÍS BRUGNETTI
		MILTON MALUHY FILHO		PAULO DE PAULA ABREU
				PAULO ROBERTO SCHIAVON DE ANDRADE
				RODERICK SINCLAIR GREENLEES
				SOLANGE PAIVA VIEIRA
				(*) Elected at the Board of Director's Meeting of  09/21/2011 - Awaiting BACEN approval
BANCO ITAUCRED FINANCIAMENTOS S.A.			ITAÚ  SEGUROS S.A.
	Chief Executive Office		Chief Executive Officer
		LUÍS OTÁVIO MATIAS		ROBERTO EGYDIO SETUBAL
	Executive Vice-President		Superintendent Director
		MÁRCIO DE ANDRADE SCHETTINI		MARCOS DE BARROS LISBOA
	Directors		Executive Directors
		CARLOS EDUARDO DE SOUZA LARA		ANDRÉ HORTA RUTOWITSCH
		CLÁUDIO JOSÉ COUTINHO ARROMATTE		ANTONIO EDUARDO MÁRQUEZ DE FIGUEIREDO TRINDADE
		EVANIR COUTINHO USSIER		JOSÉ CASTRO ARAÚJO RUDGE
		FÁBIO MASSASHI OKUMURA
		FERNANDO JOSÉ COSTA TELES	Managing Directors
		FLÁVIO KITAHARA SOUSA		LUIZ FERNANDO BUTORI REIS SANTOS
		JACKSON RICARDO GOMES		MARCO ANTONIO ANTUNES
		JASON PETER CRAUFORD		NORBERTO GIL FERREIRA CAMARGO
		LUÍS FERNANDO STAUB
		MARCO ANTONIO ANTUNES
		MARCOS ANTÔNIO VAZ DE MAGALHÃES
		MARCOS VANDERLEI BELINI FERREIRA

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

ASSETS	NOTE	09/30/2011			09/30/2010
CURRENT ASSETS			623,106,858			499,307,373
CASH AND CASH EQUIVALENTS			11,509,343			10,805,360
INTERBANK INVESTMENTS	4b and 6		98,414,594			112,210,729
Money market			74,361,027			95,757,308
Money market – Assets Guaranteeing Technical Provisions - SUSEP	11b		3,326,861			3,397,239
Interbank deposits			20,726,706			13,056,182
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		150,164,831			108,172,610
Own portfolio			40,465,820			34,329,694
Subject to repurchase commitments			27,437,426			9,371,827
Pledged in guarantee			7,727,318			6,618,887
Securities under resale agreements with free movement			2,494			-
Deposited with the Central Bank			3,067,191			2,244,483
Derivative financial instruments			9,273,318			7,438,080
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas	11b		54,090,499			43,352,422
Assets guaranteeing technical provisions – other securities	11b		8,100,765			4,817,217
INTERBANK ACCOUNTS			101,137,487			65,607,846
Pending settlement			3,631,417			3,439,138
Central Bank deposits			97,409,077			62,090,094
National Housing System (SFH)			392			8,775
Correspondents			66,679			69,839
Interbank onlending			29,922			-
INTERBRANCH ACCOUNTS			78,356			71,581
LOAN, LEASE AND OTHER CREDIT OPERATIONS	8		176,072,265			148,928,543
Operations with credit granting characteristics	4e		190,802,388			161,976,817
(Allowance for loan losses)	4f		(14,730,123	)		(13,048,274	)
OTHER RECEIVABLES			82,518,418			49,818,624
Foreign exchange portfolio	9		39,069,675			20,183,399
Income receivable			1,233,949			945,013
Transactions with credit card issuers	4e		14,117,272			11,824,070
Receivables from insurance and reinsurance operations	4nI and 11b		3,769,044			3,173,520
Negotiation and intermediation of securities			2,594,693			2,549,953
Sundry	13a		21,733,785			11,142,669
OTHER ASSETS	4g		3,211,564			3,692,080
Assets held for sale			126,955			168,860
(Valuation allowance)			(52,203	)		(74,294	)
Unearned premiums of reinsurance	4nI		593,043			563,900
Prepaid expenses	4g and 13b		2,543,769			3,033,614
LONG-TERM RECEIVABLES			202,687,396			172,890,460
INTERBANK INVESTMENTS	4b and 6		1,104,035			668,763
Money market			5			36,551
Money market – Assets Guaranteeing Technical Provisions - SUSEP	11b		-			136,050
Interbank deposits			1,104,030			496,162
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		35,419,373			31,517,483
Own portfolio			20,521,095			18,285,522
Subject to repurchase commitments			7,811,728			5,162,173
Pledged in guarantee			1,587,168			1,977,405
Títulos Objeto de Operações Compromissadas com Livre Movimentação			-			-
Deposited with the Central Bank			-			97,015
Derivative financial instruments			4,587,035			3,456,844
Assets guaranteeing technical provisions – other securities	11b		912,347			2,538,524
INTERBANK ACCOUNTS - National Housing System (SFH)			660,151			561,839
LOAN, LEASE AND OTHER CREDIT OPERATIONS	8		134,487,893			105,227,880
Operations with credit granting characteristics	4e		144,476,298			115,197,929
(Allowance for loan losses)	4f		(9,988,405	)		(9,970,049	)
OTHER RECEIVABLES			29,484,644			33,926,547
Foreign exchange portfolio	9		1,204,141			387,150
Sundry	13a		28,280,503			33,539,397
OTHER ASSETS – Prepaid expenses	4g and 13b		1,531,300			987,948
PERMANENT ASSETS			11,200,050			10,752,191
INVESTMENTS	4h and 15a Il		2,897,961			3,344,667
Investments in affiliates			1,797,668			2,209,888
Other investments			1,295,877			1,309,729
(Allowance for loan losses)			(195,584	)		(174,950	)
REAL ESTATE IN USE	4i and 15b		4,920,687			4,420,175
Real estate in use			3,272,255			3,278,799
Other fixed assets			8,580,621			7,560,197
(Accumulated depreciation)			(6,932,189	)		(6,418,821	)
OPERATING LEASE ASSETS	4j		-			4,241
Leased assets			-			18,553
(Accumulated depreciation)			-			(14,312	)
GOODWILL	4k and 15b		95,087			74,467
INTANGIBLE ASSETS	4l and 15b		3,286,315			2,908,641
Acquisition of rights to credit payroll			2,469,891			2,459,345
Other intangible assets			3,196,846			2,297,606
(Accumulated amortization)			(2,380,422	)		(1,848,310	)
TOTAL ASSETS			836,994,304			682,950,024

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

LIABILITIES	NOTE	09/30/2011			09/30/2010
CURRENT LIABILITIES			444,730,858			351,634,547
DEPOSITS	4b and 10b		155,075,923			128,937,260
Demand deposits			26,069,204			28,062,884
Savings deposits			63,334,088			54,874,272
Interbank deposits			1,834,838			1,167,041
Time deposits			63,837,793			43,836,288
Other deposits			-			996,775
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS	4b and 10c		99,009,345			87,394,805
Own portfolio			61,186,174			47,160,396
Third-party portfolio			36,047,478			39,342,474
Free portfolio			1,775,693			891,935
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES	4b and 10d		21,397,491			15,299,556
Real estate, mortgage, credit and similar notes			14,486,823			10,395,496
Debentures			61,008			1,522,670
Foreign borrowings through securities			6,849,660			3,381,390
INTERBANK ACCOUNTS			4,610,250			4,207,331
Pending settlement			3,464,153			3,059,156
Correspondents			1,146,097			1,148,175
INTERBRANCH ACCOUNTS			4,013,370			3,821,148
Third-party funds in transit			4,012,581			3,766,515
Internal transfer of funds			789			54,633
BORROWINGS AND ONLENDING	4b and 10e		30,860,511			18,458,059
Borrowings			18,206,749			11,549,410
Onlending			12,653,762			6,908,649
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		7,784,931			6,013,572
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION	4n II and 11a		10,497,508			9,474,248
OTHER LIABILITIES			111,481,529			78,028,568
Collection and payment of taxes and contributions			4,635,777			3,706,486
Foreign exchange portfolio	9		38,536,542			20,632,545
Social and statutory	16b II		2,276,523			3,164,468
Tax and social security contributions	4o, 4p and 14c		8,128,513			8,017,505
Negotiation and intermediation of securities			3,197,918			3,048,026
Credit card operations	4e		33,009,258			27,931,718
Subordinated debt	10f		8,782,333			963,023
Sundry	13c		12,914,665			10,564,797
LONG-TERM LIABILITIES			321,191,486			270,025,227
DEPOSITS	4b and 10b		65,599,408			65,951,463
Interbank deposits			322,500			90,515
Time deposits			65,276,908			65,860,948
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS	4b and 10c		96,559,948			68,258,713
Own portfolio			84,931,761			57,583,340
Third-party portfolio			-			123,614
Free portfolio			11,628,187			10,551,759
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES	4b and 10d		19,567,731			8,053,711
Real estate, mortgage, credit and similar notes			11,013,838			1,033,738
Debentures			1,053,441			1,106,433
Foreign borrowings through securities			7,500,452			5,913,540
BORROWINGS AND ONLENDING	4b and 10e		27,011,632			24,736,731
Borrowings			3,592,093			2,783,329
Onlending			23,419,539			21,953,402
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		3,425,611			3,063,328
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION	4n II and 11a		59,672,187			48,242,485
OTHER LIABILITIES			49,354,969			51,718,796
Foreign exchange portfolio	9		1,222,095			766,188
Tax and social security contributions	4o, 4p and 14c		12,319,640			12,635,337
Credit card operations			-			9,039
Subordinated debt	10f		28,855,366			32,054,473
Sundry	13c		6,957,868			6,253,759
DEFERRED INCOME	4q		862,055			631,027
MINORITY INTEREST IN SUBSIDIARIES	16e		2,004,192			3,434,151
STOCKHOLDERS’ EQUITY	16		68,205,713			57,225,072
Capital			45,000,000			45,000,000
Capital reserves			640,515			578,390
Revenue reserves			24,520,164			12,210,816
Asset valuation adjustment	4c, 4d and 7d		(250,829	)		156,846
(Treasury shares)			(1,704,137	)		(720,980	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			836,994,304			682,950,024

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Income (Note 2a)

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
INCOME FROM FINANCIAL OPERATIONS			75,153,793			57,875,763
Loan, lease and other credit operations			43,818,804			37,576,176
Securities and derivative financial instruments			19,834,091			13,653,794
Financial income from insurance, pension plan and capitalization operations	11c		4,139,521			3,194,686
Foreign exchange operations			384,266			833,831
Compulsory deposits			6,977,111			2,617,276
EXPENSES OF FINANCIAL OPERATIONS			(40,658,540	)		(25,389,937	)
Money market			(35,165,276	)		(21,916,853	)
Financial expenses on technical provisions for pension plan and capitalization	11c		(3,640,425	)		(2,840,650	)
Borrowings and onlending			(1,852,839	)		(632,434	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES			34,495,253			32,485,826
RESULT OF ALLOWANCE FOR LOAN LOSSES	8d I		(10,544,131	)		(8,875,880	)
Expenses for allowance for loan losses			(14,458,717	)		(11,774,937	)
Income from recovery of credits written off as loss			3,914,586			2,899,057
GROSS INCOME FROM FINANCIAL OPERATIONS			23,951,122			23,609,946
OTHER OPERATING REVENUES (EXPENSES)			(11,041,987	)		(9,528,060	)
Banking service fees	13d		10,209,777			9,070,027
Asset management			1,945,688			1,839,122
Current account services			498,753			423,122
Credit cards			4,428,217			3,919,858
Sureties and credits granted			1,280,228			1,068,698
Receipt services			988,124			975,322
Other			1,068,767			843,905
Income from bank charges	13e		3,750,327			3,537,251
Result from insurance, pension plan and capitalization operations	11c		1,895,564			1,643,496
Personnel expenses	13f		(10,048,610	)		(9,135,887	)
Other administrative expenses	13g		(10,266,329	)		(9,745,576	)
Tax expenses	4p and 14a II		(3,005,351	)		(2,976,944	)
Equity in earnings of affiliates and other investments	15a lll		(36,666	)		321,007
Other operating revenues	13h		303,769			719,087
Other operating expenses	13i		(3,844,468	)		(2,960,521	)
OPERATING INCOME			12,909,135			14,081,886
NON-OPERATING INCOME			189,378			21,921
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING			13,098,513			14,103,807
INCOME TAX AND SOCIAL CONTRIBUTION	4p and 14a I		(1,416,624	)		(3,840,212	)
Due on operations for the period			(5,383,745	)		(3,882,470	)
Related to temporary differences			3,967,121			42,258
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976			(163,356	)		(168,158	)
MINORITY INTEREST IN SUBSIDIARIES	16e		(578,652	)		(662,276	)
NET INCOME			10,939,881			9,433,161
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES			4,534,808,116			4,533,375,494
NET INCOME PER SHARE – R$			2.41			2.08
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)			15.04			12.62
EXCLUSION OF NONRECURRING EFFECTS	2a and 22k		(45,263	)		190,437
NET INCOME WITHOUT NONRECURRING EFFECTS			10,894,618			9,623,598
NET INCOME PER SHARE – R$			2.41			2.12

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Cash Flows

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
ADJUSTED NET INCOME			25,928,486			24,378,383
Net income			10,939,881			9,433,161
Adjustments to net income:			14,988,605			14,945,222
Granted options recognized			121,902			82,494
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)			644,804			(240,613	)
Effects of changes in exchange rates on cash and cash equivalents			(1,927,488	)		441,005
Allowance for loan losses			14,458,717			11,774,937
Results from operations with subordinated debt			3,292,494			1,833,246
Results from operations with debentures			137,235			188,156
Financial expenses on technical provisions for pension plan and capitalization			3,640,425			2,840,650
Depreciation and amortization	15b		1,617,310			1,612,817
Adjustment to legal liabilities – tax and social security			486,145			(1,705,694	)
Adjustment to provision for contingent liabilities			(201,799	)		487,383
Deferred taxes			(3,967,121	)		(42,258	)
Equity in earnings of affiliates and other investments	15a lll		36,666			(321,007	)
Income from available-for-sale securities			(3,052,056	)		(2,269,417	)
Income from held-to-maturity securities			(324,038	)		(318,405	)
(Income) loss from sale of investments			(351,820	)		(158,917	)
(Income) loss from sale of foreclosed assets			2,871			104,122
(Gain) loss from sale fixed assets			(89,418	)		6,225
(Gain) Loss from rescission of operations of intangible assets			(1,080	)		(55,087	)
Minority interest			578,652			662,276
Other			(113,796	)		23,309
CHANGE IN ASSETS AND LIABILITIES			(31,275,011	)		(41,595,898	)
(Increase) decrease in interbank investments			(23,076,805	)		13,234,271
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)			5,139,575			(15,972,808	)
(Increase) decrease in compulsory deposits with the Central Bank of Brazil			(11,632,607	)		(48,221,339	)
(Increase) decrease in interbank and interbranch accounts (assets/liabilities)			1,235,701			1,504,569
(Increase) decrease in loan, lease and other credit operations			(52,018,047	)		(45,545,545	)
(Increase) decrease in other receivables and other assets			1,514,098			(554,330	)
(Increase) decrease in foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)			(374,151	)		612,848
(Decrease) increase in deposits			17,987,273			4,172,693
(Decrease) increase in deposits received under securities repurchase agreements			(4,087,060	)		23,709,955
(Decrease) increase in funds for issuance of securities			15,643,148			6,196,165
(Decrease) increase in borrowings and onlending			10,534,178			8,558,977
(Decrease) increase in credit card operations (assets/liabilities)			78,077			565,198
(Decrease) increase in technical provision for insurance, pension plan and capitalization			5,076,611			3,848,203
(Decrease) increase in collection and payment of taxes and contributions			3,941,419			3,238,181
(Decrease) increase in other liabilities			1,594,499			5,005,187
(Decrease) increase in deferred income			96,190			178,445
Payment of income tax and social contribution			(2,927,110	)		(2,126,568	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			(5,346,525	)		(17,217,515	)
Interest on capital / dividends received from affiliated companies			48,415			74,757
Funds received from sale of available-for-sale securities			27,383,609			11,521,905
Funds received from redemption of held-to-maturity securities			557,674			192,999
Disposal of assets not for own use			88,918			172,279
Disposal of investments			456,638			208,944
Sale of fixed assets			195,881			31,601
Termination of intangible asset agreements			31,418			126,018
Purchase of available-for-sale securities			(23,940,213	)		(10,035,754	)
Purchase of held-to-maturity securities			(123,000	)		(514,403	)
Purchase of investments			(15,810	)		(74,894	)
Purchase of fixed assets			(1,126,106	)		(1,292,444	)
Purchase of intangible assets			(1,168,144	)		(329,533	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES			2,389,280			81,475
Increase in subordinated debt			8,350,300			9,202,460
Decrease in subordinated debt			(7,834,966	)		(56,426	)
Decrease in debentures			(406,879	)		(323,330	)
Change in minority interest			(1,472,676	)		114,456
Granting of stock options			233,269			303,927
Purchase of treasury shares			(1,302,638	)		-
Dividends and interest on capital paid to minority interests			(614,687	)		(704,832	)
Dividends and interest on capital paid			(4,426,060	)		(4,152,051	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			(7,474,337	)		4,384,204
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(10,431,582	)		(12,751,836	)
Cash and cash equivalents at the beginning of the period			39,148,018			66,121,111
Effects of changes in exchange rates on cash and cash equivalents			1,927,488			(441,005	)
Cash and cash equivalents at the end of the period	4a and 5		30,643,924			52,928,270

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Added Value

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
INCOME			80,958,477			63,991,665
Financial operations			75,153,793			57,875,763
Banking services			13,960,104			12,607,278
Result from insurance, pension plan and capitalization operations			1,895,564			1,643,496
Result of loan losses	8d		(10,544,131	)		(8,875,880	)
Other			493,147			741,008
EXPENSES			(44,503,008	)		(28,350,458	)
Financial operations			(40,658,540	)		(25,389,937	)
Other			(3,844,468	)		(2,960,521	)
INPUTS PURCHASED FROM THIRD PARTIES			(8,539,901	)		(8,089,281	)
Materials, energy and others	13g		(334,720	)		(323,328	)
Third-party services	13g		(2,363,375	)		(2,036,954	)
Other			(5,841,806	)		(5,728,999	)
Data processing and telecommunications	13g		(2,603,358	)		(2,296,571	)
Advertising, promotions and publication	13g		(701,384	)		(795,033	)
Installations			(922,834	)		(1,141,583	)
Transportation	13g		(430,117	)		(440,434	)
Security	13g		(358,527	)		(324,688	)
Travel expenses	13g		(135,020	)		(113,709	)
Other			(690,566	)		(616,981	)
GROSS ADDED VALUE			27,915,568			27,551,926
DEPRECIATION AND AMORTIZATION	13g		(1,045,359	)		(1,032,992	)
NET ADDED VALUE PRODUCED BY THE COMPANY			26,870,209			26,518,934
ADDED VALUE RECEIVED FROM TRANSFER	15a lll		(36,666	)		321,007
TOTAL ADDED VALUE TO BE DISTRIBUTED			26,833,543			26,839,941
DISTRIBUTION OF ADDED VALUE			26,833,543			26,839,941
Personnel			9,069,190			8,147,290
Compensation			7,222,766			6,362,847
Benefits			1,377,921			1,351,831
FGTS – government severance pay fund			468,503			432,612
Taxes, fees and contributions			5,564,751			7,973,911
Federal			5,027,517			7,507,943
State			1,408			1,205
Municipal			535,826			464,763
Return on third parties’ assets - Rent			681,069			623,303
Return on own assets			11,518,533			10,095,437
Dividends and Interest on capital			2,395,766			3,310,191
Retained earnings (loss) for the period			8,544,115			6,122,970
Minority interest in retained earnings			578,652			662,276

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Balance Sheet

(In thousands of Reais)

ASSETS	NOTE	09/30/2011			09/30/2010
CURRENT ASSETS			1,434,784			1,663,874
CASH AND CASH EQUIVALENTS			6,750			312
Interbank investments – Interbank deposits	4b and 6		39,082			336,729
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		13,276			32,351
Own portfolio			7,633			27,290
Pledged in guarantee			5,643			5,061
OTHER RECEIVABLES			1,372,890			1,289,584
Income receivable	15a I		359,021			188,792
Sundry	13a		1,013,869			1,100,792
OTHER ASSETS – Prepaid expenses	4g		2,786			4,898
LONG-TERM RECEIVABLES			31,044,046			13,129,213
INTERBANK INVESTMENTS – Interbank deposits	4b and 6		30,927,946			13,098,967
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS	4c, 4d and 7		-			6,227
Own portfolio			-			13
Pledged in guarantee			-			6,214
OTHER RECEIVABLES - Sundry	13a		116,100			24,019
PERMANENT ASSETS			55,520,568			62,031,310
INVESTMENTS			55,520,307			62,031,006
Investments in subsidiaries	4h and 15a I		55,520,307			62,030,599
Other			-			407
REAL ESTATE IN USE	4i		261			304
TOTAL ASSETS			87,999,398			76,824,397
LIABILITIES
CURRENT LIABILITIES			1,130,348			1,892,970
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES	4b and 10d		18,667			-
DERIVATIVE FINANCIAL INSTRUMENTS	4d and 7h		-			2,596
OTHER LIABILITIES			1,111,681			1,890,374
Social and statutory	16b II		819,522			1,828,452
Tax and social security contributions	4o, 4p and 14c		113,594			3,963
Subordinated debt	10f		94,530			50,600
Sundry	13c		84,035			7,359
LONG-TERM LIABILITIES			10,953,093			7,103,554
DEPOSITS - Interbank deposits	4b and 10b		4,705,826			3,260,392
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES	4b and 10d		500,000			-
OTHER LIABILITIES			5,747,267			3,843,162
Tax and social security contributions	4o, 4p and 14c		679,530			412,183
Subordinated debt	10f		5,052,295			3,364,059
Sundry	13c		15,442			66,920
STOCKHOLDERS’ EQUITY	16		75,915,957			67,827,873
Capital			45,000,000			45,000,000
Capital reserves			640,515			578,390
Revenue reserves			32,230,408			22,813,617
Asset valuation adjustment	4c, 4d and 7d		(250,829	)		156,846
(Treasury shares)			(1,704,137	)		(720,980	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			87,999,398			76,824,397

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Income

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
INCOME FROM FINANCIAL OPERATIONS			1,852,055			714,255
Securities and derivative financial instruments			1,852,055			714,255
EXPENSES OF FINANCIAL OPERATIONS			(537,892	)		(237,467	)
Money market			(537,892	)		(237,467	)
GROSS INCOME FROM FINANCIAL OPERATIONS			1,314,163			476,788
OTHER OPERATING REVENUES (EXPENSES)			6,766,300			5,947,991
Personnel expenses			(122,635	)		(106,970	)
Other administrative expenses			(34,109	)		(44,766	)
Tax expenses	14a II		(173,102	)		(23,887	)
Equity in earnings of subsidiaries	15a I		7,124,073			6,179,174
Other operating revenues (expenses)			(27,927	)		(55,560	)
OPERATING INCOME			8,080,463			6,424,779
NON-OPERATING INCOME			25,991			9,207
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING			8,106,454			6,433,986
INCOME TAX AND SOCIAL CONTRIBUTION	4p		779,573			789,730
Due on operations for the period			4,372			(14,776	)
Related to temporary differences			775,201			804,506
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976			(2,146	)		(4,947	)
NET INCOME			8,883,881			7,218,769
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES			4,534,808,116			4,533,375,494
NET INCOME PER SHARE – R$			1.96			1.59
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)			16.82			14.94
EXCLUSION OF NONRECURRING EFFECTS	2a and 22k		(45,263	)		190,437
NET INCOME WITHOUT NONRECURRING EFFECTS			8,838,618			7,409,206
NET INCOME PER SHARE – R$			1.95			1.63

The accompanying notes are an integral part of these financial statements.

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 01/01/2010		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
BALANCES AT 01/01/2011		45,000,000		594,734			25,661,505			17,128			-			(628,577	)		70,644,790
Purchase of treasury shares		-		-			-			-			-			(1,302,638	)		(1,302,638	)
Granting of stock options – exercised options		-		(76,121	)		82,312			-			-			227,078			233,269
Granting of options recognized		-		121,902			-			-			-			-			121,902
Change in adjustment to market value		-		-			-			(267,957	)		-			-			(267,957	)
Addition to interest on capital and paid on 03/17/2011 - Year 2010		-		-			(1,524	)		-			-			-			(1,524	)
Net income		-		-			-			-			8,883,881			-			8,883,881
Appropriations:																			-
Legal reserve		-		-			444,194			-			(444,194	)		-			-
Statutory reserves		-		-			6,043,921			-			(6,043,921	)		-			-
Dividends and Interest on capital		-		-			-			-			(2,395,766	)		-			(2,395,766	)
BALANCES AT 09/30/2011		45,000,000		640,515			32,230,408			(250,829	)		-			(1,704,137	)		75,915,957
CHANGES IN THE PERIOD		-		45,781			6,568,903			(267,957	)		-			(1,075,560	)		5,271,167

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Cash Flows

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
ADJUSTED NET INCOME (LOSS)			1,698,142			389,864
Net income			8,883,881			7,218,769
Adjustments to net income:			(7,185,739	)		(6,828,905	)
Granting of options recognized			121,902			82,494
Results from operations with subordinated debt			562,034			26,259
Deferred taxes			(775,201	)		(804,506	)
Equity in earnings of subsidiaries	15a I		(7,124,073	)		(6,179,174	)
Amortization of goodwill			43,308			43,308
(Income) loss from sale of investments			(12,456	)		-
Effects of changes in exchange rates on cash and cash equivalents			(1,323	)		2,628
Other			70			86
CHANGE IN ASSETS AND LIABILITIES			760,367			577,842
(Increase) decrease in securities and derivative financial instruments (assets/liabilities)			24,308			(9,155	)
(Increase) decrease in other receivables and other assets			383,504			484,404
(Increase) decrease in funds for issuance of securities			13,125			-
Increase (decrease) in other liabilities			339,430			102,593
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			2,458,509			967,706
Interest on capital/Dividends received			13,169,557			3,620,965
(Increase) decrease in interbank investments			(16,751,104	)		(6,174,006	)
Purchase  (sale of investments)			3,874,270			-
(Purchase) sale of fixed assets			(23	)		(34	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES			292,700			(2,553,075	)
Increase (decrease) in deposits			1,361,818			2,361,168
Increase in subordinated debt			1,390,801			3,388,400
Decrease in subordinated debt			(158,789	)		-
Granting of stock options			233,269			303,927
Purchase of treasury shares			(1,302,638	)		-
Dividends and interest on capital paid			(4,426,060	)		(4,152,051	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			(2,901,599	)		1,901,444
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(150,390	)		316,075
Cash and cash equivalents at the beginning of the period			194,899			23,594
Effects of changes in exchange rates on cash and cash equivalents			1,323			(2,628	)
Cash and cash equivalents at the end of the period	4a and 5		45,832			337,041

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

Statement of Added Value

(In thousands of Reais)

	NOTE	01/01 to 09/30/2011			01/01 to 09/30/2010
INCOME			2,625,532			1,472,898
Financial operations			1,852,055			714,255
Other			773,477			758,643
EXPENSES			(537,892	)		(237,467	)
Financial operations			(537,892	)		(237,467	)
INPUTS PURCHASED FROM THIRD PARTIES			(33,768	)		(44,106	)
Third-party services			(14,525	)		(16,728	)
Advertising, promotions and publication			(550	)		(879	)
Expenses for financial system services			(4,847	)		(4,589	)
Insurance			(4,145	)		(4,413	)
Other			(9,701	)		(17,497	)
GROSS ADDED VALUE			2,053,872			1,191,325
DEPRECIATION AND AMORTIZATION			(70	)		(86	)
NET ADDED VALUE PRODUCED BY THE COMPANY			2,053,802			1,191,239
ADDED VALUE RECEIVED FROM TRANSFER	15a l		7,124,073			6,179,174
TOTAL ADDED VALUE TO BE DISTRIBUTED			9,177,875			7,370,413
DISTRIBUTION OF ADDED VALUE			9,177,875			7,370,413
Personnel			121,971			109,363
Compensation			119,402			106,190
Benefits			1,579			2,124
FGTS – government severance pay fund			990			1,049
Taxes, fees and contributions			171,752			41,707
Federal			171,726			41,646
Municipal			26			61
Return on third parties’ assets - Rent			271			574
Return on own assets			8,883,881			7,218,769
Dividends/Interest on capital			2,395,766			3,310,191
Retained earnings (loss) for the period			6,488,115			3,908,578

The accompanying notes are an integral part of these financial statements.

ITAÚ UNIBANCO HOLDING S.A.

NOTES TO THE FINANCIAL STATEMENTS

FROM JANUARY 1 TO SEPTEMBER 30, 2011 AND 2010

(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, 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 Superintendence of Private Insurance (SUSEP), and National Council of Private Insurance (CNSP), which include the use of estimates necessary to calculate accounting provisions.

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 from credit operations. 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) 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).

In 2011, there was a change in the basis for consolidating certain companies, particularly for the Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento, with the change from full to partial consolidation, and Porto Seguro S.A., which is now stated under the equity method, including for comparative purposes.

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

		Incorporation	Interest %
		country	09/30/2011		09/30/2010
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		100.00		99.99
Banco Itaú Argentina S.A.		Argentina		100.00		99.99
Banco ITAÚ BBA S.A.		Brazil		100.00		99.99
Banco Itaú Chile		Chile		99.99		99.99
Banco Itaú Europa Luxembourg S.A.		Luxembourg		99.99		99.99
Banco Itaú BBA International, S.A.	(1)	Portugal		99.99		99.99
Banco Itaú Uruguay S.A.		Uruguay		100.00		100.00
Banco Itaucard S.A.		Brazil		100.00		99.99
Banco Itaucred Financiamentos S.A.		Brazil		99.99		99.99
Banco Itauleasing S.A.		Brazil		100.00		99.99
BIU Participações S.A.		Brazil		66.16		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	(2)	Brazil		50.00		50.00
Hipercard Banco Múltiplo S.A.		Brazil		100.00		99.99
Itaú Administradora de Consórcios Ltda.		Brazil		99.99		99.99
Itau Bank, Ltd.	(3)	Cayman Islands		100.00		100.00
Itaú Corretora de Valores S.A.		Brazil		100.00		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
Itaúsa Export S.A.		Brazil		100.00		100.00
Luizacred S.A. Soc. Créd. Financiamento Investimento	(2)	Brazil		50.00		50.00
OCA Casa Financiera S.A.		Uruguay		100.00		100.00
Orbitall Serviços e Processamento de Informações Comerciais S.A.		Brazil		100.00		99.99
Redecard S.A.	(4)	Brazil		50.00		50.00
Unibanco Cayman Bank Ltd.		Cayman Islands		100.00		100.00
Unibanco Participações Societárias S.A. (Note 16e)		Brazil		100.00		51.00

(1) New company name of Banco Itaú Europa S.A.;

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

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

(4) 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, 2011, according to present regulation, are as follows:

	Financial system			Economic-financial
	consolidated (1)			consolidated (2)
Referential equity (3)		88,138,085			88,501,755
Basel ratio		15.1	%		15.5	%
Tier I		11.6	%		12.0	%
Tier II		3.5	%		3.5	%
Fixed assets ratio (4)		49.8	%		14.0	%
Excess capital in relation to fixed assets		196,904			31,839,943

(1) Consolidated financial statements including financial companies only;

(2) Consolidated financial statements comprising all direct and indirect subsidiary companies, including insurance, pension plan, capitalization companies and other non-financial companies, as provided for in CMN Resolution No. 2,723 of June 1, 2000, amended by CMN Resolution No. 2,743, of June 28, 2000.

(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.

Issues of subordinated debt are pending approval from the Central Bank of Brazil in order to comprise the Tier II of Referential Equity, which at September 30, 2011, represent the amount of R$ 1,186,500. Should we consider these issues, the Basel ratios would stood at 15.3% and 15.7% for the financial system and the economic-financial consolidated, respectively.

Management considers the current Basel ratio (15.1%, based on financial system consolidated) to be adequate, taking into account the following:

a) It exceeds by 4.1 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 16.6%.

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, 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, Circulars No.  3,383, of April 30, 2008 and 3,476, of December 28, 2009 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.

Circular No. 3,498, of June 28, 2010, changes the provisions mentioned in Circulars Nos 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. Clarification on the methodologies to be adopted was disclosed in Circular Letters Nos. 3,498 and 3,499, of April 8, 2011. 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 approximately 1.0%.

The Referential Equity used for calculation of ratios and composition of risk exposures at September 30, 2011, are as follows:

	Financial system consolidated					Economic-financial consolidated
Stockholders' Equity Itaú Unibanco Holding S.A. (Consolidated)		68,205,713					68,205,713
Minority interest in subsidiaries		1,153,523					1,541,475
Consolidated stockholders’ equity (BACEN)		69,359,236					69,747,188
Revaluation reserves excluded from Tier I		-					-
Deferred tax assets excluded from Tier I		(586,841	)				(609,718	)
Deferred permanent assets excluded from Tier I		(317,372	)				(318,777	)
Adjustment to market value - securities and derivative financial instruments excluded from Tier I		250,828					250,322
Preferred shares with clause of redemption excluded from Tier I		(728,949	)				(728,949	)
Tier I		67,976,902					68,340,066
Subordinated debt		19,999,996					19,999,996
Preferred shares with clause of redemption		437,369					437,369
Revaluation reserves		-					-
Adjustment to market value - securities and derivative financial instruments		(250,828	)				(250,322	)
Tier II		20,186,537					20,187,043
Tier I + Tier II		88,163,439					88,527,109
Exclusions:
Funding instruments issued by financial institutions		(25,354	)				(25,354	)
Referential equity		88,138,085					88,501,755
Risk exposure:
Exposure weighted by credit risk (EPR)		543,604,127					528,665,445
Portion required for credit risk coverage (PEPR)		59,796,454		93.1	%		58,153,199		92.4	%
a) Per weighting factor (FPR):
FPR at 20%		241,137		0.4	%		394,054		0.6	%
FPR at 35%		152,354		0.2	%		152,363		0.2	%
FPR at 50%		3,190,458		5.0	%		4,125,486		6.6	%
FPR at 75%		12,328,652		19.2	%		11,939,223		19.0	%
FPR at 100%		37,661,774		58.7	%		35,232,087		56.0	%
FPR at 150%		4,191,522		6.5	%		4,193,171		6.7	%
FPR at 300%		1,595,045		2.5	%		1,676,356		2.7	%
Derivatives – potential future gain		435,512		0.7	%		440,459		0.7	%
b) Per type:
Securities		2,730,954		4.3	%		2,857,650		4.5	%
Loan operations - Retail		13,667,785		21.3	%		13,402,630		21.3	%
Loan operations – Non-retail		18,029,390		28.1	%		18,044,914		28.7	%
Joint obligations - Retail		6,886		0.0	%		6,886		0.0	%
Joint obligations – Non-Retail		5,023,620		7.8	%		5,020,182		8.0	%
Loan commitments - Retail		2,785,238		4.3	%		2,660,931		4.2	%
Loan commitments – Non-retail		1,574,653		2.5	%		1,574,807		2.5	%
Other exposures		15,977,928		24.9	%		14,585,199		23.2	%
Portion required for operational risk coverage (POPR)		3,460,219		5.4	%		3,851,446		6.1	%
Retail		562,006		0.9	%		562,006		0.9	%
Commercial		920,872		1.4	%		920,872		1.5	%
Corporate finance		82,110		0.1	%		82,110		0.1	%
Negotiation and sales		1,288,706		2.0	%		1,288,706		2.0	%
Payments and settlements		268,814		0.4	%		268,814		0.4	%
Financial agent services		128,146		0.2	%		128,146		0.2	%
Asset management		190,583		0.3	%		190,583		0.3	%
Retail brokerage		18,982		0.0	%		18,982		0.0	%
Business plans		-		0.0	%		-		0.0	%
Conef additional		-		0.0	%		391,227		0.6	%
Portion required for market risk coverage:		949,213		1.5	%		952,376		1.5	%
Gold, foreign currency and operations subject to foreign exchange variation (PCAM)		-		0.0	%		-		0.0	%
Operations subject to interest rate variation (PJUR)		823,588		1.3	%		826,751		1.3	%
Fixed rate denominated in Real (PJUR1)		172,095		0.3	%		172,809		0.3	%
Foreign currency coupon (PJUR2)		291,319		0.5	%		293,768		0.5	%
Price index coupon (PJUR3)		242,366		0.4	%		242,366		0.4	%
Interest rate coupon (PJUR 4)		117,808		0.2	%		117,808		0.2	%
Operations subject to commodity price variation (PCOM)		95,577		0.1	%		95,577		0.2	%
Operations subject to stock price variation (PACS)		30,048		0.0	%		30,048		0.0	%
Required Referential Equity		64,205,886		100.0	%		62,957,021		100.0	%
Excess capital in relation to Required Referential Equity		23,932,199		37.3	%		25,544,734		40.6	%
Total exposure weighted by risk [EPR + (1/0.11 X (POPR + PCAM + PJUR + PCOM + PACS)		583,689,873					572,336,550
Ratio (%)		15.1					15.5
Referential equity calculated for covering the interest rate risk of operations not classified into the trading portfolio (RBAN)		1,446,068					1,698,230

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 12/31/2010		78,670,791			497,468,330			15.8	%		80,718,514			522,952,010			15.4	%
Result for the period		10,958,573			-			2.2	%		11,480,819			-			2.2	%
Interest on capital and dividends		(2,397,290	)		-			-0.5	%		(2,397,290	)		-			-0.4	%
Granting of options recognized		121,902			-			0.0	%		121,902			-			0.0	%
Granting of stock options – exercised options in the period		233,269			-			0.1	%		233,269			-			0.1	%
Asset valuation adjustment		(267,957	)		-			-0.1	%		(267,957	)		-			-0.1	%
Subordinated debt and redeemable preferred shares		1,802,703			-			0.4	%		1,802,703			-			0.4	%
Treasury shares		(1,302,640	)		-			-0.3	%		(1,302,640	)		-			-0.3	%
Deferred assets excluded from Tier I of referential equity		(68,928	)		(68,928	)		0.0	%		(70,963	)		(70,963	)		0.0	%
Other changes in referential equity		387,662			-			0.1	%		(1,816,602	)		-			-0.3	%
Changes in risk exposure		-			86,290,471			-2.6	%		-			49,455,503			-1.5	%
Ratio at 09/30/2011		88,138,085			583,689,873			15.1	%		88,501,755			572,336,550			15.5	%

b) Capital for Insurance Activity

CNSP – Conselho Nacional de Seguros Privados, following the worldwide trend towards the strengthening of the insurance market, disclosed the Resolution No. 227 of December 6, 2010 (which revoked Resolutions No. 178 of December 28, 2007, and No. 200 of December 16, 2008), and Circular No. 411 of December 22, 2010. 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. In January 2011, CNSP Resolution No. 228 of December 6, 2010 came into effect, providing for the criteria for establishment of additional capital based on the credit risk of the supervised companies.

The adjusted stockholders’ equity of ITAU UNIBANCO HOLDING companies exclusively engaged in insurance activities is higher than the required regulatory capital.

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. 649 of December 16, 2010.

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, according to the estimate for receipt. 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 of 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 – investments in subsidiary and affiliated companies 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.

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 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 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 evidence that assets are stated at a non-recoverable value. This procedure is adopted semiannually.

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 – technical 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.

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 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	até 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 pension plan 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:

	09/30/2011		09/30/2010
Cash and cash equivalents		11,509,343		10,805,360
Interbank deposits		13,817,194		6,961,236
Securities purchased under agreements to resell - Funded position		5,317,387		35,161,674
TOTAL		30,643,924		52,928,270
In ITAÚ UNIBANCO HOLDING it is composed of the following:
	09/30/2011		09/30/2010
Cash and cash equivalents		6,750		312
Securities purchased under agreements to resell - Funded position		39,082		336,729
TOTAL		45,832		337,041

NOTE 6 - INTERBANK INVESTMENTS

	09/30/2011												09/30/2010
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Money Market		27,550,689		46,775,785		34,553		5		74,361,032		74.7		95,793,859		84.9
Funded position (*)		8,301,613		16,624,335		34,553		4		24,960,505		25.1		44,993,512		39.9
Financed position		18,098,590		19,048,534		-		1		37,147,125		37.3		42,454,594		37.6
With Free Movement		3,991,328		18,750,400		-		-		22,741,728		22.8		14,190,843		12.6
Without Free Movement		14,107,262		298,134		-		1		14,405,397		14.5		28,263,751		25.0
Short Position		1,150,486		11,102,916		-		-		12,253,402		12.3		8,345,753		7.4
Money Market - Assets Guaranteeing Technical Provisions  -  SUSEP		2,947,749		154,145		224,967		-		3,326,861		3.3		3,533,289		3.1
Interbank deposits		14,144,544		3,051,446		3,530,716		1,104,030		21,830,736		22.0		13,552,344		12.0
TOTAL		44,642,982		49,981,376		3,790,236		1,104,035		99,518,629				112,879,492
% per maturity term		44.9		50.2		3.8		1.1
TOTAL - 09/30/2010		78,898,722		27,832,987		5,479,020		668,763		112,879,492
% per maturity term		69.9		24.7		4.8		0.6

(*) Includes R$ 14,108,226 (R$ 7,986,934 at 09/30/2010) related to Money Market with free movement, in which securities are basically restricted guarantee transactions at the BM&F Bovespa S.A. - Bolsa de Valores, Mercadorias e Futuros (Securities, Commodities and Futures Exchange) and the Central Bank of Brazil (BACEN).

In ITAÚ UNIBANCO HOLDING, the portfolio is composed of Money Market - Funded Position falling due in up to 30 days amounting to R$ 39,082 (R$ 336,729 at September 30, 2010), and Interbank Deposits over 365 days amounting to R$ 30,927,946 (R$ 13,098,967 at September 30, 2010).

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

	09/30/2011																											09/30/2010
				Provision for adjustment to
				market value reflected on:
							Stockholders'																		Over 720
	Cost			Results			equity			Market value			%		0 - 30		31 - 90		91 - 180		181 - 365		366 - 720		days			Market value
GOVERNMENT SECURITIES - DOMESTIC		78,864,059			548,301			195,267			79,607,627			42.6	1,758,190		1,610,969		2,636,279		13,175,371		12,915,802			47,511,016			50,007,979
Financial Treasury Bills		32,045,315			(1,610	)		(97	)		32,043,608			17.0	-		1,544,989		1,320,852		2,680,308		3,091,588			23,405,871			15,720,250
National Treasury Bills		16,562,343			180,453			1,280			16,744,076			9.0	1,470,410		-		-		9,592,997		3,244,268			2,436,401			4,672,818
National Treasury Notes		23,253,248			337,482			134,858			23,725,588			12.8	8,199		57,829		1,182,993		888,592		6,394,051			15,193,924			23,227,753
National Treasury/Securitization		306,282			521			(6,921	)		299,882			0.2	1,414		2,133		14,628		6,975		5,367			269,365			328,310
Brazilian External Debt Bonds		6,623,622			31,455			66,095			6,721,172			3.6	205,582		6,018		117,806		6,224		180,087			6,205,455			5,964,539
Investments in non-exclusive funds		72,585			-			-			72,585			0.0	72,585		-		-		-		-			-			92,201
Other		664			-			52			716			0.0	-		-		-		275		441			-			2,108
GOVERNMENT SECURITIES - ABROAD		6,393,362			8,026			(16,459	)		6,384,929			3.6	352,330		1,790,495		2,775,500		747,540		89,453			629,611			7,591,550
Argentina		159,892			(4,011	)		-			155,881			0.1	-		18,046		47,449		68,984		645			20,757			274,422
Central Bank		8,710			(1,412	)		-			7,298			0.0	-		-		-		209		328			6,761			65,272
National Treasury		151,182			(2,599	)		-			148,583			0.1	-		18,046		47,449		68,775		317			13,996			209,150
Denmark		3,275,980			-			-			3,275,980			1.8	-		1,493,090		1,437,978		344,912		-			-			1,533,621
Spain		418,250			-			(8,365	)		409,885			0.2	-		-		409,885		-		-			-			835,822
Korea		294,211			-			-			294,211			0.2	-		-		85,250		208,961		-			-			2,043,293
Chile		843,625			81			6,954			850,660			0.5	211,374		154,311		425,265		33,499		6,062			20,149			1,382,220
Paraguay		507,871			-			(18,150	)		489,721			0.3	120,076		96,943		212,658		375		39,194			20,475			267,124
Uruguay		297,759			(137	)		(287	)		297,335			0.2	20,830		26,992		114,554		90,809		43,473			677			854,748
United States		276,932			12,170			-			289,102			0.2	-		1,113		2,401		-		-			285,588			360,590
Mexico		244,850			198			3,254			248,302			0.1	50		-		2,529		-		-			245,723			12,710
Other		73,992			(275	)		135			73,852			0.0	-		-		37,531		-		79			36,242			27,000
CORPORATE SECURITIES		31,359,586			(69,096	)		350,306			31,640,796			17.0	4,837,399		1,429,213		1,327,641		1,510,251		4,903,273			17,633,019			27,843,218
Eurobonds and other		5,253,959			(68,199	)		31,721			5,217,481			2.8	34,303		264,546		246,838		201,057		1,483,205			2,987,532			5,454,586
Bank deposit certificates		1,755,205			(1	)		(13	)		1,755,191			0.9	44,108		409,784		69,795		398,863		645,314			187,327			2,429,836
Shares		2,973,115			(30,481	)		926			2,943,560			1.6	2,943,560		-		-		-		-			-			3,858,171
Debentures		8,846,152			1,092			61,050			8,908,294			4.8	16,372		226,407		368,445		622,750		757,686			6,916,634			7,022,948
Promissory notes		803,970			-			311			804,281			0.4	-		437,466		366,815		-		-			-			1,000,387
Quotas of funds		1,756,551			7,066			6,945			1,770,562			0.9	1,766,503		-		-		-		-			4,059			1,148,034
Fixed income		597,658			(8,059	)		(41	)		589,558			0.4	585,499		-		-		-		-			4,059			216,379
Credit rights		925,737			-			-			925,737			0.4	925,737		-		-		-		-			-			680,112
Variable income		233,156			15,125			6,986			255,267			0.1	255,267		-		-		-		-			-			251,543
Securitized real estate loans		7,620,255			21,427			248,391			7,890,073			4.3	32,553		91,010		112,710		275,308		708,781			6,669,711			6,897,858
Financial bills		2,041,077			-			-			2,041,077			1.1	-		-		-		-		1,298,645			742,432			-
Other		309,302			-			975			310,277			0.2	-		-		163,038		12,273		9,642			125,324			31,398
PGBL/VGBL - FUND QUOTAS (1)		54,090,499			-			-			54,090,499			29.2	54,090,499		-		-		-		-			-			43,352,422
SUBTOTAL - SECURITIES		170,707,506			487,231			529,114			171,723,851			92.5	61,038,418		4,830,677		6,739,420		15,433,162		17,908,528			65,773,646			128,795,169
Trading securities		126,647,112			487,231			-			127,134,343			68.5	57,558,730		1,085,420		2,991,328		12,649,029		10,859,613			41,990,223			85,418,149
Available-for-sale securities		41,001,074			-			529,114			41,530,188			22.4	3,479,688		3,745,257		3,664,548		2,756,193		6,896,204			20,988,298			40,307,360
Held-to-maturity securities (2)		3,059,320			-			-			3,059,320			1.6	-		-		83,544		27,940		152,711			2,795,125			3,069,660
DERIVATIVE FINANCIAL INSTRUMENTS		11,486,782			2,373,571			-			13,860,353			7.5	1,410,820		2,273,624		3,091,019		2,497,855		1,062,155			3,524,880			10,894,924
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		182,194,288			2,860,802			529,114			185,584,204			100.0	62,449,238		7,104,301		9,830,439		17,931,017		18,970,683			69,298,526			139,690,093
															33.7	%	3.8	%	5.3	%	9.7	%	10.2	%		37.3	%
DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)		(8,651,322	)		(2,508,434	)		(50,786	)		(11,210,542	)			(1,002,342	)	(1,942,047	)	(2,389,485	)	(2,451,057	)	(889,202	)		(2,536,409	)		(9,076,900	)

(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$ 594,679 (R$ 595,030 at 09/30/2010), according to Note 7e.

b) Summary by portfolio

	09/30/2011
													Assets
													guaranteeing
			Restricted to								Derivative		technical
			Repurchase		Pledging of						financial		provisions (Note
	Own portfolio		agreements		guarantees (1)		Free movement		Central Bank		instruments		11b)		Total
GOVERNMENT SECURITIES - DOMESTIC	31,172,608		33,152,893		7,550,637		99,567		3,052,615		-			4,579,307	79,607,627
Financial Treasury Bills		16,824,476		9,025,460		3,714,787		99,567		1,824,100	-			555,218	32,043,608
National Treasury Bills		6,538,071		9,817,591		388,414		-		-		-		-		16,744,076
National Treasury Notes		5,743,958		9,281,590		3,447,436		-		1,228,515		-		4,024,089		23,725,588
National Treasury/Securitization		299,882		-		-		-		-		-		-		299,882
Brazilian External Debt Bonds		1,692,920		5,028,252		-		-		-		-		-		6,721,172
Investments in non-exclusive funds		72,585		-		-		-		-		-		-		72,585
Other		716		-		-		-		-		-		-		716
GOVERNMENT SECURITIES - ABROAD		4,733,642		175,658		1,452,789		-		14,576		-		8,264		6,384,929
Argentina		155,881		-		-		-		-		-		-		155,881
Central Bank		7,298		-		-		-		-		-		-		7,298
National Treasury		148,583		-		-		-		-		-		-		148,583
Denmark		1,827,155		-		1,448,825		-		-		-		-		3,275,980
Spain		409,885		-		-		-		-		-		-		409,885
Korea		294,211		-		-		-		-		-		-		294,211
Chile		826,823		-		997		-		14,576		-		8,264		850,660
Paraguay		489,721		-		-		-		-		-		-		489,721
Uruguay		297,335		-		-		-		-		-		-		297,335
United States		286,135		-		2,967		-		-		-		-		289,102
Mexico		72,644		175,658		-		-		-		-		-		248,302
Other		73,852		-		-		-		-		-		-		73,852
CORPORATE SECURITIES		25,080,665		1,823,530		311,060		-		-		-		4,425,541		31,640,796
Eurobonds and other		3,490,384		1,723,084		-		-		-		-		4,013		5,217,481
Bank deposit certificates		316,322		100,446		9,579		-		-		-		1,328,844		1,755,191
Shares		2,936,340		-		7,220		-		-		-		-		2,943,560
Debentures		7,738,154		-		275,473		-		-		-		894,667		8,908,294
Promissory Notes		759,698		-		-		-		-		-		44,583		804,281
Quotas of funds		1,385,848		-		18,788		-		-		-		365,926		1,770,562
Fixed income		209,310		-		18,788		-		-		-		361,460		589,558
Credit rights		921,271		-		-		-		-		-		4,466		925,737
Variable income		255,267		-		-		-		-		-		-		255,267
Securitized real estate loans		7,871,887		-		-		-		-		-		18,186		7,890,073
Financial bills		271,755		-		-		-		-		-		1,769,322		2,041,077
Other		310,277		-		-		-		-		-		-		310,277
PGBL/VGBL FUND QUOTAS		-		-		-		-		-		-		54,090,499		54,090,499
SUBTOTAL - SECURITIES		60,986,915		35,152,081		9,314,486		99,567		3,067,191		-		63,103,611		171,723,851
Trading securities		31,760,467		27,089,043		6,068,460		2,494		3,052,615		-		59,161,264		127,134,343
Available-for-sale securities		29,117,957		7,891,775		3,222,281		97,073		14,576		-		1,186,526		41,530,188
Held-to-maturity securities		108,491		171,263		23,745		-		-		-		2,755,821		3,059,320
DERIVATIVE FINANCIAL INSTRUMENTS		-		-		-		-		-		13,860,353		-		13,860,353
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		60,986,915		35,152,081		9,314,486		99,567		3,067,191		13,860,353		63,103,611		185,584,204
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) – 09/30/2010		52,615,216		14,534,001		8,525,759		70,533		2,341,498		10,894,924		50,708,162		139,690,093

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

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.

	09/30/2011																						09/30/2010
			Adjustment
			to market
			value (in																	Over 720
	Cost		results)			Market value		%		0 - 30		31 - 90		91 - 180		181 - 365		366 - 720		days			Market value
GOVERNMENT SECURITIES - DOMESTIC		62,921,684		548,302			63,469,986		50.0	1,756,425		456,970		2,509,818		12,092,732		8,598,283			38,055,758			33,446,844
Financial Treasury Bills		27,701,396		(1,610	)		27,699,786		21.8	-		391,296		1,303,680		2,361,432		956,619			22,686,759			9,588,222
National Treasury Bills		15,579,896		180,453			15,760,349		12.4	1,470,410		-		-		8,830,237		3,023,301			2,436,401			4,622,756
National Treasury Notes		17,523,982		337,483			17,861,465		14.0	7,997		57,523		1,162,152		887,864		4,546,349			11,199,580			17,695,210
National Treasury/Securitization		38,438		521			38,959		0.0	1,414		2,133		14,628		6,975		5,367			8,442			65,213
Brazilian External Debt Bonds		2,005,387		31,455			2,036,842		1.7	204,019		6,018		29,358		6,224		66,647			1,724,576			1,382,846
Investments in non-exclusive funds		72,585		-			72,585		0.1	72,585		-		-		-		-			-			92,201
Other		-		-			-		-	-		-		-		-		-			-			396
GOVERNMENT SECURITIES - ABROAD		557,465		8,026			565,491		0.4	3,723		20,417		54,332		80,040		11,300			395,679			853,287
Argentina		159,892		(4,011	)		155,881		0.1	-		18,046		47,449		68,984		645			20,757			274,012
Central Bank		8,710		(1,412	)		7,298		0.0	-		-		-		209		328			6,761			65,272
National Treasury		151,182		(2,599	)		148,583		0.1	-		18,046		47,449		68,775		317			13,996			208,740
Chile		9,510		81			9,591		0.0	3,594		-		2,356		3,594		47			-			179,681
Uruguay		20,814		(137	)		20,677		0.0	79		1,258		1,270		7,462		10,608			-			16,265
United States		276,932		12,170			289,102		0.2	-		1,113		2,401		-		-			285,588			343,814
Mexico		72,446		198			72,644		0.1	50		-		689		-		-			71,905			12,710
Other		17,871		(275	)		17,596		0.0	-		-		167		-		-			17,429			26,805
CORPORATE SECURITIES		9,077,464		(69,097	)		9,008,367		7.2	1,708,083		608,033		427,178		476,257		2,250,030			3,538,786			7,765,596
Eurobonds and other		1,500,506		(68,200	)		1,432,306		1.1	2,974		39,335		7,303		2,726		243,985			1,135,983			1,934,971
Bank deposit certificates		1,399,565		(1	)		1,399,564		1.1	10,298		350,757		-		288,210		594,723			155,576			1,965,505
Shares		735,623		(30,481	)		705,142		0.6	705,142		-		-		-		-			-			1,360,403
Debentures		1,729,869		1,092			1,730,961		1.4	-		217,941		368,445		185,321		112,677			846,577			1,512,185
Promissory Notes		51,430		-			51,430		0.0	-		-		51,430		-		-			-			-
Quotas of funds		982,603		7,066			989,669		0.9	989,669		-		-		-		-			-			403,463
Fixed income		580,891		(8,059	)		572,832		0.5	572,832		-		-		-		-			-			184,923
Credit rights		204,476		-			204,476		0.2	204,476		-		-		-		-			-			7,615
Variable income		197,236		15,125			212,361		0.2	212,361		-		-		-		-			-			210,925
Securitized real estate loans		636,791		21,427			658,218		0.5	-		-		-		-		-			658,218			589,069
Financial bills		2,041,077		-			2,041,077		1.6	-		-		-		-		1,298,645			742,432			-
PGBL/VGBL FUND QUOTAS		54,090,499		-			54,090,499		42.4	54,090,499		-		-		-		-			-			43,352,422
Total		126,647,112		487,231			127,134,343		100.0	57,558,730		1,085,420		2,991,328		12,649,029		10,859,613			41,990,223			85,418,149
% per maturity term										45.3	%	0.9	%	2.4	%	9.9	%	8.5	%		33.0	%
Total 09/30/2010		84,977,374		440,775			85,418,149		100.0	45,987,395		640,731		4,171,262		5,581,885		9,571,577			19,465,299
% per maturity term										53.8	%	0.8	%	4.9	%	6.5	%	11.2	%		22.8	%

At September 30, 2011, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities – Financial Treasury Bills amounting to R$ 6,332  (R$ 5,679 at 09/30/2010 with maturity over 365 days) with maturity of 181 to 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.

	09/30/2011																											09/30/2010
	Cost		Adjustments 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		12,982,472		195,267			13,177,739		31.7		1,765			1,153,999			43,148			1,082,639			4,174,728			6,721,460			13,736,599
Financial Treasury Bills		4,343,919		(97	)		4,343,822		10.5		-			1,153,693			17,172			318,876			2,134,969			719,112			6,132,028
National Treasury Bills		982,447		1,280			983,727		2.4		-			-			-			762,760			220,967			-			50,062
National Treasury Notes		2,962,726		134,858			3,097,584		7.5		202			306			20,841			728			1,814,962			1,260,545			2,937,354
National Treasury/Securitization		267,844		(6,921	)		260,923		0.5		-			-			-			-			-			260,923			263,097
Brazilian External Debt Bonds		4,424,872		66,095			4,490,967		10.8		1,563			-			5,135			-			3,389			4,480,880			4,352,346
Other		664		52			716		0.0		-			-			-			275			441			-			1,712
GOVERNMENT SECURITIES - ABROAD		5,835,888		(16,459	)		5,819,429		14.0		348,607			1,770,078			2,721,168			667,500			78,153			233,923			6,722,112
Argentina		-		-			-		-		-			-			-			-			-			-			410
Denmark		3,275,980		-			3,275,980		7.9		-			1,493,090			1,437,978			344,912			-			-			1,533,621
Spain		418,250		(8,365	)		409,885		1.0		-			-			409,885			-			-			-			835,822
Korea		294,211		-			294,211		0.7		-			-			85,250			208,961			-			-			2,043,293
Chile		834,115		6,954			841,069		2.0		207,780			154,311			422,909			29,905			6,015			20,149			1,202,539
Paraguay		507,871		(18,150	)		489,721		1.2		120,076			96,943			212,658			375			39,194			20,475			267,124
Uruguay		276,945		(287	)		276,658		0.7		20,751			25,734			113,284			83,347			32,865			677			822,332
United States		-		-			-		0.0		-			-			-			-			-			-			16,776
Mexico		172,404		3,254			175,658		0.4		-			-			1,840			-			-			173,818			-
Other		56,112		135			56,247		0.1		-			-			37,364			-			79			18,804			195
CORPORATE SECURITIES		22,182,714		350,306			22,533,020		54.3		3,129,316			821,180			900,232			1,006,054			2,643,323			14,032,915			19,848,649
Eurobonds and other		3,688,507		31,721			3,720,228		9.0		31,329			225,211			239,304			198,331			1,235,822			1,790,231			3,345,101
Bank deposit certificates		355,640		(13	)		355,627		0.8		33,810			59,027			69,795			110,653			50,591			31,751			464,331
Shares		2,237,492		926			2,238,418		5.4		2,238,418			-			-			-			-			-			2,497,768
Debentures		7,086,484		61,050			7,147,534		17.2		16,372			8,466			-			409,489			643,150			6,070,057			5,462,535
Promissory Notes		752,540		311			752,851		1.8		-			437,466			315,385			-			-			-			1,000,387
Quotas of funds		773,948		6,945			780,893		1.9		776,834			-			-			-			-			4,059			744,555
Fixed income		16,767		(41	)		16,726		0.1		12,667			-			-			-			-			4,059			31,440
Credit rights		721,261		-			721,261		1.7		721,261			-			-			-			-			-			672,497
Variable income		35,920		6,986			42,906		0.1		42,906			-			-			-			-			-			40,618
Securitized real estate loans		6,978,801		248,391			7,227,192		17.5		32,553			91,010			112,710			275,308			704,118			6,011,493			6,302,574
Other		309,302		975			310,277		0.7		-			-			163,038			12,273			9,642			125,324			31,398
TOTAL		41,001,074		529,114			41,530,188		100.0		3,479,688			3,745,257			3,664,548			2,756,193			6,896,204			20,988,298			40,307,360
Adjustments of securities reclassified in prior years to the held-to-maturity category				11,017							8.5	%		9.0	%		8.8	%		6.6	%		16.6	%		50.5	%
Accounting adjustment - Hedge - Circular No. 3,082				(350,179	)
Deferred taxes				(89,417	)
Minority interest in subsidiaries				(98,263	)
Adjustment of securities of unconsolidated affiliates				(253,101	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2011				(250,829	)
TOTAL 09/30/2010		39,602,935		704,425			40,307,360		100.0		4,424,474			4,318,707			3,914,405			2,358,004			4,577,583			20,714,187
Adjustments of securities reclassified in prior years to the held-to-maturity category				13,449							11.0	%		10.7	%		9.7	%		5.9	%		11.4	%		51.3	%
Accounting adjustment - Hedge - Circular No. 3,082				(144,649	)
Deferred taxes				(210,090	)
Minority interest in subsidiaries				(3,200	)
Adjustment of securities of unconsolidated affiliates				(203,089	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2010				156,846

At September 30, 2011, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Government Securities in the amount of R$ 6,944 with maturity between 181 to 365 days (R$ 32,899 at September 30, 2010, of which the National Treasury Notes amount to R$ 26,672 with maturity between 181 and 365 days, and the Financial Treasury Bills amount to R$ 6,227 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. Included in the carrying value, not considered in results, are the amounts of R$ 11,017 at September 30, 2011 (R$ 13,449 at September 30, 2010), relating to market adjustment of the reclassified securities at December 31, 2003. Securities classified under this category, if stated at market value, would present a positive adjustment of R$ 594,679  at September 30, 2011 (R$ 595,030 at September 30, 2010).

	09/30/2011																						09/30/2010
	Carrying value		%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Carrying value
GOVERNMENT SECURITIES - DOMESTIC		2,959,903		96.7		-			-			83,313			-			142,791			2,733,799			2,824,537
National Treasury Notes (*)		2,766,539		90.4		-			-			-			-			32,740			2,733,799			2,595,190
Brazilian External Debt Bonds		193,364		6.3		-			-			83,313			-			110,051			-			229,347
GOVERNMENT SECURITIES - ABROAD		9		0.0		-			-			-			-			-			9			16,151
CORPORATE SECURITIES		99,408		3.3		-			-			231			27,940			9,920			61,317			228,972
Eurobonds and other		64,946		2.1		-			-			231			-			3,398			61,317			174,513
Debentures (1)		29,799		1.0		-			-			-			27,940			1,859			-			48,228
Quotas of funds		-		-		-			-			-			-			-			-			16
Securitized real estate loans (*)		4,663		0.2		-			-			-			-			4,663			-			6,215
Total		3,059,320		100.0		-			-			83,544			27,940			152,711			2,795,125			3,069,660
% per maturity term						0.0	%		0.0	%		2.7	%		0.9	%		5.0	%		91.4	%
Total 09/30/2010		3,069,660		100.0		14,763			8,041			140,258			137,730			88,047			2,680,821
% per maturity term						0.5	%		0.3	%		4.6	%		4.5	%		2.9	%		87.3	%

(*)  Includes investments of Itaú Vida e Previdência S.A. in the amount of R$ 2,004,943 (R$ 1,890,766 at September 30, 2010).

f) Realized and unrealized gain of securities portfolio

	01/01 to 09/30/2011			01/01 to 09/30/2010
Gain (loss) - Trading securities		(1,414,149	)		64,236
Gain (loss) – Available-for-sale securities		148,486			361,524
Total realized gain		(1,265,663	)		425,760
Adjustment to market value of trading securities		234,886			115,782
Total		(1,030,777	)		541,542

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.

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, 2011, 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 liquidity 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$ 6,060,918 (R$ 6,263,447 at September 30, 2010) 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
	09/30/2011		09/30/2010		09/30/2011			09/30/2011			09/30/2011			09/30/2010
Futures contracts		286,657,893		337,880,058		(346,918	)		(70,663	)		(417,581	)		18,152
Purchase commitments		73,037,478		85,324,326		188,551			(19,392	)		169,159			(65,366	)
Foreign currency		6,168,464		10,730,486		6,446			5,350			11,796			(43,992	)
Interbank market		46,656,671		54,968,183		41,555			(423	)		41,132			6,173
Indices		17,298,263		16,675,882		140,626			933			141,559			(41,643	)
Securities		2,734,464		2,471,584		-			(6,085	)		(6,085	)		(36	)
Other		179,616		478,191		(76	)		(19,167	)		(19,243	)		14,132
Commitments to sell		213,620,415		252,555,732		(535,469	)		(51,271	)		(586,740	)		83,518
Foreign currency		32,146,532		8,559,005		(54,307	)		(68,054	)		(122,361	)		(13,362	)
Interbank market		146,394,930		83,742,062		(27,554	)		(687	)		(28,241	)		7,301
Fixed rate		-		1,372,302		-			-			-			(6	)
Indices		29,742,091		152,264,118		(455,322	)		578			(454,744	)		93,027
Securities		4,382,173		4,570,500		-			(10	)		(10	)		(16	)
Other		954,689		2,047,745		1,714			16,902			18,616			(3,426	)
Swap contracts						98,640			(185,770	)		(87,130	)		133,435
Asset position		86,547,799		66,123,700		2,551,022			795,777			3,346,799			2,930,402
Foreign currency		8,814,365		8,734,804		635,712			86,909			722,621			99,469
Interbank market		38,743,234		31,891,490		830,397			32,170			862,567			1,203,476
Fixed rate		14,410,300		10,297,232		269,827			240,972			510,799			615,546
Floating rate		2,054,494		1,182,195		3,009			(462	)		2,547			-
Indices		22,027,135		13,925,411		765,282			431,925			1,197,207			1,007,995
Securities		68,297		3,021		33,680			(10,486	)		23,194			1,423
Other		429,974		89,547		13,115			14,749			27,864			2,493
Liability position		86,449,155		66,002,932		(2,452,382	)		(981,547	)		(3,433,929	)		(2,796,967	)
Foreign currency		11,121,620		15,272,578		(988,921	)		(49,645	)		(1,038,566	)		(327,239	)
Interbank market		22,607,354		21,224,323		(139,181	)		25,320			(113,861	)		(824,857	)
Fixed rate		17,109,592		6,374,622		(304,233	)		(338,480	)		(642,713	)		(618,375	)
Floating rate		5,165,634		4,543,072		(107,527	)		(11,626	)		(119,153	)		(5,729	)
Indices		28,995,231		18,401,779		(893,586	)		(603,296	)		(1,496,882	)		(1,000,731	)
Securities		38,030		-		-			-			-			-
Other		1,411,694		186,558		(18,934	)		(3,820	)		(22,754	)		(20,036	)
Option contracts		1,638,428,821		2,411,886,301		1,187,533			(481,607	)		705,926			413,717
Purchase commitments – long position		479,738,503		648,922,728		1,313,702			(160,160	)		1,153,542			897,883
Foreign currency		15,052,951		31,362,772		920,399			95,159			1,015,558			459,413
Interbank market		39,892,289		477,894,656		52,469			(47,272	)		5,197			168,547
Floating rate		298,642		236,604		1,401			(1,059	)		342			673
Indices		421,835,630		137,486,076		218,538			(148,284	)		70,254			120,499
Securities		1,870,464		1,187,999		101,640			(49,715	)		51,925			105,942
Other		788,527		754,621		19,255			(8,989	)		10,266			42,809
Commitments to sell – long position		430,846,896		711,215,929		2,211,925			1,126,400			3,338,325			1,454,546
Foreign currency		6,020,312		18,023,990		99,498			135,777			235,275			646,633
Interbank market		28,848,104		587,135,669		434,441			107,075			541,516			185,484
Fixed rate		1,847		-		75			944			1,019			-
Floating rate		248,249		92,673		600			(127	)		473			461
Indices		383,546,099		103,827,378		894,064			192,715			1,086,779			75,087
Securities		3,846,409		1,747,618		764,928			669,729			1,434,657			542,242
Other		8,335,876		388,601		18,319			20,287			38,606			4,639
Purchase commitments – short position		338,996,888		425,663,770		(911,247	)		(61,223	)		(972,470	)		(943,291	)
Foreign currency		8,699,943		30,609,686		(360,830	)		(429,730	)		(790,560	)		(480,186	)
Interbank market		21,480,383		294,626,032		(55,022	)		36,892			(18,130	)		(35,429	)
Indices		306,634,263		98,929,463		(437,751	)		325,040			(112,711	)		(339,744	)
Securities		1,642,133		1,065,316		(42,286	)		(3,065	)		(45,351	)		(48,826	)
Other		540,166		433,273		(15,358	)		9,640			(5,718	)		(39,106	)
Commitments to sell – short position		388,846,534		626,083,874		(1,426,847	)		(1,386,624	)		(2,813,471	)		(995,421	)
Foreign currency		9,916,498		24,409,149		(307,083	)		(142,742	)		(449,825	)		(574,402	)
Interbank market		31,783,736		497,015,060		(329,638	)		(290,572	)		(620,210	)		(280,876	)
Fixed rate		1,847		-		(75	)		(944	)		(1,019	)		-
Indices		344,320,848		103,150,600		(667,372	)		(406,655	)		(1,074,027	)		(73,490	)
Securities		2,628,139		1,324,912		(113,720	)		(544,317	)		(658,037	)		(61,313	)
Other		195,466		184,153		(8,959	)		(1,394	)		(10,353	)		(5,340	)
Forward contracts		20,365,774		4,198,059		798,475			27,539			826,014			956,195
Purchases receivable		10,816,794		1,720,959		2,367,976			51,592			2,419,568			1,622,796
Foreign currency		9,163,199		79,187		910,038			52,331			962,369			(18,342	)
Interbank market		168,320		-		-			-			-			-
Fixed rate		769,001		1,189,787		768,489			30			768,519			1,189,212
Floating rate		688,783		451,985		687,713			-			687,713			451,926
Other		27,491		-		1,736			(769	)		967			-
Purchases payable		1,769,789		-		(1,573,176	)		7,929			(1,565,247	)		(1,641,138	)
Foreign currency		1,215,308		-		(99,556	)		12,287			(87,269	)		-
Interbank market		417,452		-		-			(25	)		(25	)		-
Fixed rate		-		-		(768,489	)		(30	)		(768,519	)		(1,189,212	)
Floating rate		-		-		(687,713	)		-			(687,713	)		(451,926	)
Other		137,029		-		(17,418	)		(4,303	)		(21,721	)		-
Sales receivable		1,370,417		2,477,100		898,631			2,830			901,461			2,380,537
Foreign currency		303,998		79,187		10,142			(550	)		9,592			-
Interbank market		94,353		-		315			5			320			-
Fixed rate		66,306		1,235,286		66,282			(270	)		66,012			1,235,337
Floating rate		258,626		170,663		258,252			-			258,252			170,663
Other		647,134		991,964		563,640			3,645			567,285			974,537
Sales deliverable		6,408,774		-		(894,956	)		(34,812	)		(929,768	)		(1,406,000	)
Foreign currency		6,052,716		-		(575,435	)		(36,231	)		(611,666	)		-
Interbank market		324,375		-		-			-			-			-
Fixed rate		-		-		(48,056	)		(10	)		(48,066	)		(1,235,337	)
Floating rate		-		-		(258,252	)		-			(258,252	)		(170,663	)
Other		31,683		-		(13,213	)		1,429			(11,784	)		-

	Memorandum account/ Notional amount				Balance sheet account receivable / (received) (payable) / paid			Adjustements to market value (in results / stockholders' equity)			Market value
	09/30/2011		09/30/2010		09/30/2011			09/30/2011			09/30/2011			09/30/2010
Credit derivatives		4,101,028		5,077,756		682,456			215,100			897,556			68,581
Asset position		3,023,379		1,928,965		703,560			231,989			935,549			213,825
Foreign currency		65,683		27,957		52			800			852			684
Fixed rate		2,660,410		1,730,688		703,704			225,134			928,838			211,657
Floating rate		-		-		-			(3,206	)		(3,206	)		-
Securities		297,286		149,481		(196	)		9,261			9,065			1,223
Other		-		20,839		-			-			-			261
Liability position		1,077,649		3,148,791		(21,104	)		(16,889	)		(37,993	)		(145,244	)
Foreign currency		65,766		27,526		(46	)		(769	)		(815	)		(636	)
Fixed rate		715,242		2,936,818		(21,181	)		(6,927	)		(28,108	)		(143,171	)
Securities		296,641		163,608		123			(9,193	)		(9,070	)		(1,173	)
Other		-		20,839		-			-			-			(264	)
Forwards operations		29,264,080		20,416,765		235,481			36,364			271,845			97,920
Asset position		16,615,463		7,825,333		1,037,751			15,695			1,053,446			583,883
Foreign currency		16,210,205		6,282,153		824,349			15,695			840,044			223,002
Interbank market		18,005		-		142			-			142			-
Fixed rate		-		1,022,677		206,984			-			206,984			352,442
Floating rate		371,807		517,578		6,276			-			6,276			8,000
Other		15,446		2,925		-			-			-			439
Liability position		12,648,617		12,591,432		(798,663	)		20,669			(777,994	)		(485,963	)
Foreign currency		12,367,924		12,231,422		(590,019	)		22,137			(567,882	)		(474,603	)
Interbank market		12,591		15,915		(448	)		-			(448	)		(499	)
Fixed rate		199,489		59,141		(206,979	)		(1,468	)		(208,447	)		(6,292	)
Floating rate		68,613		277,849		(1,217	)		-			(1,217	)		(3,301	)
Indices		-		1,571		-			-			-			(90	)
Other		-		5,534		-			-			-			(1,178	)
Swap with target flow		-		286,262		-			-			-			(13,902	)
Asset position – Interbank market		-		137,235		-			-			-			-
Liability position - Foreign currency		-		149,027		-			-			-			(13,902	)
Target flow of swap – Asset position - Foreign currency		-		1,313,749		-			-			-			130,406
Other derivative financial instruments (*)		6,415,486		16,245,467		168,965			280,607			449,572			13,520
Asset position		3,697,317		10,387,039		402,218			309,445			711,663			662,494
Foreign currency		411,836		7,421,868		67,896			245,981			313,877			435,568
Fixed rate		268,888		-		13,410			10,436			23,846			-
Other		3,016,593		2,965,171		320,912			53,028			373,940			226,926
Liability position		2,718,169		5,858,428		(233,253	)		(28,838	)		(262,091	)		(648,974	)
Foreign currency		310,281		5,371,352		(95,007	)		8,757			(86,250	)		(606,135	)
Fixed rate		2,300,012		446		(91,905	)		(37,595	)		(129,500	)		(484	)
Other		107,876		486,630		(46,341	)		-			(46,341	)		(42,355	)
			ASSETS			11,486,782			2,373,571			13,860,353			10,894,924
			LIABILITIES			(8,651,322	)		(2,559,220	)		(11,210,542	)		(9,076,900	)
			TOTAL			2,835,460			(185,649	)		2,649,811			1,818,024
Derivative contracts mature as follows (in days):
Clearing		0 - 30		31 - 180		181 - 365		Over 365			09/30/2011			09/30/2010
Futures		75,956,293		106,084,264		30,179,813			74,437,523			286,657,893			337,880,058
Swaps		2,876,550		23,363,314		16,600,607			41,156,302			83,996,773			63,938,770
Options		703,763,281		859,094,073		68,399,024			7,172,443			1,638,428,821			2,411,886,301
Forwards		3,571,288		7,949,146		6,358,944			2,486,396			20,365,774			4,198,059
Credit derivatives		137,226		1,043,111		713,712			2,206,979			4,101,028			5,077,756
Forwards		6,681,750		14,616,880		3,973,615			3,991,835			29,264,080			20,416,765
Swaps with target flow		-		-		-			-			-			137,235
Target flow of swap		-		-		-			-			-			1,313,749
Other		50,903		572,969		399,071			5,392,543			6,415,486			16,245,467

At September 30, 2011, ITAÚ UNIBANCO HOLDING FINANCEIRA did not have derivative operations in the swap with target flow and target forward.

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.

	09/30/2011																						09/30/2010
	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		-		-			-		-	-		-		-		-		-			-			18,152
BM&F Bovespa		-		-			-		-	-		-		-		-		-			-			19,598
Financial institutions		-		-			-		-	-		-		-		-		-			-			(1,446	)
Option premiums		3,525,626		966,243			4,491,869		32.4	434,416		390,152		1,934,109		816,618		222,909			693,665			2,352,429
BM&F Bovespa		2,542,862		216,797			2,759,659		19.9	302,246		267,600		1,696,407		429,667		63,739			-			1,303,600
Financial institutions		231,108		230,094			461,202		3.3	91,579		104,010		71,052		140,242		50,273			4,046			425,992
Companies		751,653		519,353			1,271,006		9.2	40,591		18,540		166,650		246,709		108,897			689,619			621,908
Individuals		3		(1	)		2		0.0	-		2		-		-		-			-			929
Forwards		3,266,607		54,424			3,321,031		23.9	431,815		511,658		253,192		1,043,095		126,237			955,034			4,003,333
BM&F Bovespa		554,500		4			554,504		4.0	200,661		293,909		18,417		41,517		-			-			974,537
Financial institutions		204,547		7,292			211,839		1.5	121,703		810		82,459		3,423		3,444			-			2,069,631
Companies		2,507,560		47,128			2,554,688		18.4	109,451		216,939		152,316		998,155		122,793			955,034			959,165
Swaps – Adjustment receivable		2,551,022		795,777			3,346,799		24.2	84,527		602,253		544,145		534,603		517,583			1,063,688			2,930,402
BM&F Bovespa		265,883		149,479			415,362		3.0	42		54,710		42,618		97,645		31,516			188,831			291,620
Financial institutions		188,506		138,560			327,066		2.4	43,820		48,988		38,498		47,708		34,876			113,176			860,270
Companies		2,072,236		508,254			2,580,490		18.6	26,363		492,094		460,732		389,025		451,045			761,231			1,762,768
Individuals		24,397		(516	)		23,881		0.2	14,302		6,461		2,297		225		146			450			15,744
Credit derivatives		703,561		231,988			935,549		6.7	53,700		268,893		151,151		3,101		2,107			456,597			213,825
Financial institutions		509,585		32,353			541,938		3.9	53,700		268,807		151,151		736		531			67,013			13,287
Companies		193,976		199,635			393,611		2.8	-		86		-		2,365		1,576			389,584			200,538
Forwards		1,037,748		15,694			1,053,442		7.6	178,455		489,574		176,470		84,580		58,999			65,364			583,883
Financial institutions		900,116		-			900,116		6.5	153,601		447,199		156,036		60,348		27,804			55,128			513,370
Companies		135,543		15,028			150,571		1.1	24,154		40,445		20,363		24,195		31,178			10,236			70,016
Individuals		2,089		666			2,755		0.0	700		1,930		71		37		17			-			497
Swaps with target flow - Companies		-		-			-		-	-		-		-		-		-			-			130,406
Other – Financial institutions		402,218		309,445			711,663		5.1	227,907		11,094		31,952		15,858		134,320			290,532			662,494
BM&F Bovespa		-		223,903			223,903		1.6	223,903		-		-		-		-			-			286
Financial institutions		281,840		63,464			345,304		2.5	11		120		521		2,002		100,701			241,949			416,886
Companies		120,378		22,078			142,456		1.0	3,993		10,974		31,431		13,856		33,619			48,583			244,210
Individuals		-		-			-		-	-		-		-		-		-			-			1,112
Total		11,486,782		2,373,571			13,860,353		100.0	1,410,820		2,273,624		3,091,019		2,497,855		1,062,155			3,524,880			10,894,924
% per maturity term										10.2	%	16.4	%	22.3	%	18.0	%	7.7	%		25.4	%
Total at September 30, 2010		10,157,211		737,713			10,894,924		100.0	2,929,395		1,704,574		2,088,192		715,919		1,091,427			2,365,417
% per maturity term										26.9	%	15.7	%	19.2	%	6.5	%	10.0	%		21.7	%

	09/30/2011																								09/30/2010
	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
Futures		(346,918	)		(70,663	)		(417,581	)		3.6	(798	)	(297,294	)	(82,649	)	947		5,557			(43,344	)		-
BM&F Bovespa		(346,918	)		(65,859	)		(412,777	)		3.6	(798	)	(294,948	)	(77,999	)	(1,033	)	5,345			(43,344	)		-
Financial institutions		-			(3,209	)		(3,209	)		0.0	-		(3,209	)	-		-		-			-			-
Companies		-			(1,595	)		(1,595	)		0.0	-		863		(4,650	)	1,980		212			-			-
Option premiums		(2,338,094	)		(1,447,847	)		(3,785,941	)		33.8	(406,823	)	(494,239	)	(1,796,325	)	(904,890	)	(163,593	)		(20,071	)		(1,938,712	)
BM&F Bovespa		(1,783,523	)		(817,395	)		(2,600,918	)		23.2	(338,172	)	(293,281	)	(1,459,078	)	(477,239	)	(33,148	)		-			(1,408,389	)
Financial institutions		(450,151	)		(545,567	)		(995,718	)		8.9	(63,198	)	(192,975	)	(299,565	)	(344,137	)	(79,794	)		(16,049	)		(459,216	)
Companies		(104,412	)		(84,887	)		(189,299	)		1.7	(5,453	)	(7,977	)	(37,682	)	(83,514	)	(50,651	)		(4,022	)		(68,840	)
Individuals		(8	)		2			(6	)		0.0	-		(6	)	-		-		-			-			(2,267	)
Forwards		(2,468,132	)		(26,882	)		(2,495,014	)		22.3	(302,554	)	(128,870	)	(149,217	)	(893,878	)	(73,998	)		(946,497	)		(3,047,138	)
BM&F Bovespa		-			(25	)		(25	)		0.0	-		-		(6	)	(19	)	-			-			-
Financial institutions		(214,936	)		(7,205	)		(222,141	)		2.0	(143,748	)	(4,680	)	(37,853	)	(35,686	)	(88	)		(86	)		(2,087,973	)
Companies		(2,253,196	)		(19,652	)		(2,272,848	)		20.3	(158,806	)	(124,190	)	(111,358	)	(858,173	)	(73,910	)		(946,411	)		(959,165	)
Swaps – difference payable		(2,452,381	)		(981,547	)		(3,433,928	)		30.7	(137,368	)	(612,751	)	(258,619	)	(602,072	)	(519,336	)		(1,303,782	)		(2,796,967	)
BM&F Bovespa		(365,081	)		(254,862	)		(619,943	)		5.5	(972	)	(62,735	)	(19,567	)	(152,873	)	(122,198	)		(261,598	)		(460,078	)
Financial institutions		(472,125	)		(296,532	)		(768,657	)		6.9	(77,889	)	(97,691	)	(83,910	)	(70,177	)	(90,871	)		(348,119	)		(993,308	)
Companies		(1,575,170	)		(430,321	)		(2,005,491	)		17.9	(57,105	)	(449,970	)	(151,706	)	(360,237	)	(293,422	)		(693,051	)		(1,305,571	)
Individuals		(40,005	)		168			(39,837	)		0.4	(1,402	)	(2,355	)	(3,436	)	(18,785	)	(12,845	)		(1,014	)		(38,010	)
Credit derivatives		(21,104	)		(16,889	)		(37,993	)		0.3	(80	)	(17,030	)	(1,645	)	(2,769	)	(1,776	)		(14,693	)		(145,244	)
Financial institutions		(6,253	)		(9,559	)		(15,812	)		0.1	(36	)	(5,449	)	(1,470	)	(2,311	)	(1,654	)		(4,892	)		(145,241	)
Companies		(14,851	)		(7,330	)		(22,181	)		0.2	(44	)	(11,581	)	(175	)	(458	)	(122	)		(9,801	)		(3	)
Forwards		(798,663	)		20,669			(777,994	)		7.0	(154,571	)	(388,986	)	(100,874	)	(47,667	)	(42,773	)		(43,123	)		(485,963	)
BM&F Bovespa		-			-			-			-	-		-		-		-		-			-			(7	)
Financial institutions		(642,439	)		(1,467	)		(643,906	)		5.8	(136,155	)	(355,007	)	(70,584	)	(20,004	)	(29,636	)		(32,520	)		(364,426	)
Companies		(155,455	)		22,240			(133,215	)		1.2	(17,905	)	(33,740	)	(30,234	)	(27,596	)	(13,137	)		(10,603	)		(120,815	)
Individuals		(769	)		(104	)		(873	)		0.0	(511	)	(239	)	(56	)	(67	)	-			-			(715	)
Swaps with target flow		-			-			-			-	-		-		-		-		-			-			(13,902	)
Companies		-			-			-			-	-		-		-		-		-			-			(93	)
Individuals		-			-			-			-	-		-		-		-		-			-			(13,809	)
Other		(233,253	)		(28,838	)		(262,091	)		2.3	(148	)	(2,877	)	(156	)	(728	)	(91,731	)		(166,451	)		(648,974	)
BM&F Bovespa		-			-			-			0.0			-		-		-		-			-			(293	)
Financial institutions		(165,572	)		(42,590	)		(208,162	)		1.8	(116	)	9		(156	)	(631	)	(83,517	)		(123,751	)		(262,561	)
Companies		(67,681	)		13,752			(53,929	)		0.5	(32	)	(2,886	)	-		(97	)	(8,214	)		(42,700	)		(385,636	)
Individuals		-			-			-			-	-		-		-		-		-			-			(484	)
Total		(8,658,545	)		(2,551,997	)		(11,210,542	)		100.0	(1,002,342	)	(1,942,047	)	(2,389,485	)	(2,451,057	)	(887,650	)		(2,537,961	)		(9,076,900	)
% per maturity term												9.0	%	17.3	%	21.3	%	21.9	%	7.9	%		22.6	%
Total – 09/30/2010		(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	)
% per maturity term												28.8	%	13.9	%	13.4	%	10.1	%	11.7	%		22.1	%

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.

	09/30/2011
	Futures		Swaps		Options		Forwards		Credit derivatives		Forwards		Swap with target flow		Target flow of swap		Other
BM&F Bovespa		255,595,058		14,805,367		1,598,072,511		1,568,022		-		-		-		-		-
Over-the-counter market		31,062,835		69,191,406		40,356,310		18,797,752		4,101,028		29,264,080		-		-		6,415,486
Financial institutions		3,914,090		18,406,384		28,358,155		1,467,104		2,409,571		23,845,595		-		-		5,112,779
Companies		27,148,745		48,783,390		11,997,542		17,330,648		1,691,457		5,358,803		-		-		1,302,707
Individuals		-		2,001,632		613		-		-		59,682		-		-		-
Total		286,657,893		83,996,773		1,638,428,821		20,365,774		4,101,028		29,264,080		-		-		6,415,486
Total 09/30/2010		337,880,058		63,938,770		2,411,886,301		4,198,059		5,077,756		20,416,765		137,235		1,313,749		16,245,467

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
	09/30/2011			09/30/2010
Transferred		(3,023,379	)		(2,018,605	)
Credit swaps whose underlying assets are:
Securities		(2,154,036	)		(2,018,605	)
Total return rate swaps whose underlying assets are:
Securities		(869,343	)		-
Received		1,077,649			3,059,153
Credit swaps whose underlying assets are:
Securities		1,068,690			3,050,968
Total return rate swaps whose underlying assets are:
Securities		8,959			8,185
Total		(1,945,730	)		1,040,548

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$ 72,196 at September 30, 2011 (R$ 170,950 at September 30, 2010).

V -  Accounting Hedge

a) The purpose of the hedge relationship of ITAÚ UNIBANCO HOLDING is to protect the cash flows 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, 2011 ITAÚ UNIBANCO HOLDING negotiated DI Futures agreements at BM&FBOVESPA with maturity between 2011 and 2017 in the amount of R$ 41,104,979 (R$ 23,729,450 at September 30, 2010). To protect the future cash flows of debt against exposure to variable interest rate (LIBOR), at September 30, 2011 ITAÚ UNIBANCO HOLDING negotiated Swap contracts with maturity in 2015 in the amount of R$ 728,913 (R$ 665,943 at September 30, 2010). These derivative financial instruments gave rise to adjustment to market value net of tax effects recorded in stockholders’ equity of R$ (193.824) (R$ (80,064) at September 30, 2010), of which R$ (165,714) (R$ (49,807) at September 30, 2010) refers to CDB and R$ (28,110) (R$ (30,257) at September 30, 2010) refers to Redeemable Preferred shares. The hedged items total R$ 41,452,788 (R$ 24,927,277 at September 30, 2010), of which R$ 40,723,875 (R$ 24,261,334 at September 30, 2010) are CDB with maturities between 2011 and 2017 and R$ 728,913 (R$ 665,943 at September 30, 2010) 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$ (5,505) (R$ 81,845 at September 30, 2010).

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

With the purpose of extending liabilities of subordinated CDBs, ITAÚ UNIBANCO HOLDING partially discontinued the Hedge operations of Subordinated CDB by carrying out a debt roll-over (settlement of prior operation and issue of a new operation), giving rise to an effect in result (income) of R$ 3,210.

b) The swap operations contracted in a negotiation associated with the funding and/or investment in the amount of R$ 45,645 (R$ 179,615 at September 30, 2010) 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 09/30/2011			01/01 to 09/30/2010
Swap		1,544,667			116,370
Forwards		(109,658	)		25,173
Futures		(1,424,724	)		1,078,011
Options		395,463			375,630
Credit derivatives		117,439			48,542
Other		(941,369	)		(222,612	)
Foreign exchange variation on investments abroad		2,528,218			(770,682	)
Total		2,110,036			650,432

i)   Changes in adjustment to market value for the period

	01/01 to 09/30/2011			01/01 to 09/30/2010
Opening balance		1,408,206			608,422
Adjustments with impact on:
Results		(652,026	)		240,613
Trading securities		234,886			115,782
Derivative financial instruments		(886,912	)		124,831
Stockholders’ equity		(224,877	)		304,355
Available-for-sale		74,258			288,896
Accounting Hedge – Derivative Financial Instruments		(299,135	)		15,459
Futures		(268,532	)		75,165
Swap		(30,603	)		(59,706	)
Closing balance		531,303			1,153,390
Adjustment to market value		531,303			1,153,390
Trading securities		487,231			440,775
Available-for-sale securities		529,114			704,756
Derivative financial instruments		(485,042	)		7,859
Trading securities		(134,863	)		152,508
Accounting hedge		(350,179	)		(144,649	)
Futures		(299,393	)		(89,984	)
Swap		(50,786	)		(54,665	)

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

	09/30/2011		09/30/2010
Adjustment of available-for-sale securities – stockholders’ equity		529,114		704,756
Adjustment to held-to-maturity securities (*)		605,696		608,479
Total unrealized gain		1,134,810		1,313,235

(*) Includes the amount of R$ 11,017 (R$ 13,449 at September 30, 2010) 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)

In compliance with CVM Instruction No. 475 of December 17, 2008, Itaú Unibanco carried out a sensitivity analysis by market risk factors considered relevant to which the group was exposed. Each market risk factor was subject to a sensitivity level, with shock applications of 25% and 50%, both for growth and fall. 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 exposure under exceptional scenarios.

In accordance with the operations classification criteria set forth in CMN Resolution No. 3,464 of June 26, 2007 and BACEN Circular No. 3,354 of June 27, 2007, and the New Capital Accord – Basel II, the financial instruments, including all transactions with derivatives, are segregated into Trading and Banking portfolios. The market risk measurement is made according to this segregation.

The sensitivity analyses shown in this report are an evaluation of an instant position of the portfolio exposure and, therefore, do not consider the management’s quick response capacity (treasury and control areas), which triggers risk mitigating measures, whenever a situation of high loss or risk is identified by minimizing the sensitivity towards 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 method, parameters and assumptions are in the Investors Relations website (www.itauunibanco.com.br/ri) in the route: Corporate Governance / Risk Management – Circular 3,477.

The trading portfolio consists of all transactions, including derivatives, which are held with the intention of being traded in the short term and intended for hedging other financial instruments of this portfolio or locking of the arbitrage results.

Amount in R$ (000)
Tradíng portfolio Exposures		09/30/2011 (*)
		Scenarios
Risk factors	Risk of variation in:	I			II			III
Fixed rate	Fixed rates in reais		1,035			(25,839	)		(51,581	)
Foreign exchange coupons	Rates of foreign currency coupon		(1	)		27			108
Foreign currency	Exchange variation		(3,034	)		(75,854	)		(151,708	)
Price indices	Rates of inflation coupon		(426	)		(10,516	)		(20,755	)
Reference rate	Rate of TR coupon		403			(10,167	)		(20,521	)
Shares	Share price		478			(11,939	)		(23,879	)
	Total without correlation		(1,546	)		(134,289	)		(268,336	)
	Total with correlation		(1,126	)		(97,857	)		(195,539	)

(*) Amounts net of tax effects

The banking portfolio comprises transactions that do not fit into the trading portfolio.  It consists of transactions held with the intention of being traded in the medium and long terms, and their respective hedges, as well as transactions intended for the active management of financial risks, which may or may not be carried out with derivative financial instruments.

Amount in R$ (000)
Trading and Banking portfolio Exposures		09/30/2011 (*)
		Scenarios
Risk factors	Risk of variation in:	I			II			III
Fixed rate	Fixed rates in reais		(1,639	)		(40,794	)		(81,229	)
Foreign exchange coupons	Rates of foreign currency coupon		(1,394	)		(34,496	)		(68,246	)
Foreign currency	Exchange variation		2,626			(65,655	)		(131,310	)
Price indices	Rates of inflation coupon		(855	)		(21,243	)		(42,217	)
Reference rate	Rate of TR coupon		(3,282	)		(80,130	)		(156,405	)
Shares	Share price		606			(15,145	)		(30,289	)
	Total without correlation		(3,938	)		(257,463	)		(509,697	)
	Total with correlation		(2,870	)		(187,616	)		(371,421	)

(*) Amounts net of tax effects

The following scenarios are used to measure the sensitivity:

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 are based on market information (BM&F BOVESPA, Andima, etc).

Scenario II: Shocks at 25 base points in fixed-rate curves, currency coupon, inflation and interest rate indices, and 25 percentage points in currency and share prices, both for growth and fall, considering the largest resulting losses per risk factor.

Scenario III: Shocks at 50 base points in fixed-rate curves, currency coupon, inflation and interest rate indices, and 50 percentage points in currency and share prices, both for growth and fall, considering the largest resulting losses per risk factor.

All derivative financial instruments contracted by Itaú Unibanco are shown in the item Derivative Financial Instruments in this note.

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

	9/30/2011																				9/30/2010
Risk levels	AA		A		B		C		D		E		F		G		H		Total		Total
Loan operations		101,692,689		96,001,385		25,251,736		13,685,110		12,106,840		2,891,159		2,356,598		1,800,177		8,574,849		264,360,543		203,205,496
Loans and discounted trade receivables		43,693,829		48,901,047		14,946,969		11,233,043		10,639,790		2,216,668		1,975,081		1,538,531		7,760,413		142,905,371		114,338,268
Financing		39,424,102		39,807,038		9,174,189		2,232,614		1,104,348		538,380		362,152		237,408		757,616		93,637,847		68,782,583
Farming and agribusiness financing		4,685,802		586,584		188,999		20,911		211,281		112,064		1,020		972		30,403		5,838,036		5,268,557
Real estate financing		13,888,956		6,706,716		941,579		198,542		151,421		24,047		18,345		23,266		26,417		21,979,289		14,816,088
Lease operations		4,816,917		17,143,151		3,527,782		1,530,603		904,274		390,187		302,602		286,242		785,058		29,686,816		40,348,220
Credit card operations		-		28,759,937		1,553,686		1,703,305		778,848		484,397		419,015		415,119		2,929,706		37,044,013		29,792,586
Advance on exchange contracts (1)		3,058,590		719,555		203,727		23,649		39,149		5,301		7,122		480		8,816		4,066,389		3,272,356
Other sundry receivables (2)		11,048		36,484		7,462		24,891		11,305		4,664		2,179		3,017		19,875		120,925		556,088
Total operations with credit granting characteristics		109,579,244		142,660,512		30,544,393		16,967,558		13,840,416		3,775,708		3,087,516		2,505,035		12,318,304		335,278,686		277,174,746
Endorsements and sureties (3)																				46,957,352		34,154,632
Total with endorsements and sureties		109,579,244		142,660,512		30,544,393		16,967,558		13,840,416		3,775,708		3,087,516		2,505,035		12,318,304		382,236,038		311,329,378
Total - 09/30/2010		44,602,632		134,818,694		52,258,349		15,920,213		10,230,175		4,547,395		2,767,377		1,869,317		10,160,594		277,174,746

(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

	9/30/2011																													9/30/2010
	AA		A			B			C			D			E			F			G			H			Total			Total
	OVERDUE OPERATIONS (1) (2)
Falling due installments		-		-			3,440,601			3,044,521			2,446,972			1,440,857			1,140,785			976,185			3,674,955			16,164,876			11,451,038
01 to 30		-		-			232,073			228,659			169,942			75,387			58,776			52,618			349,565			1,167,020			629,545
31 to 60		-		-			121,573			100,205			91,237			57,054			49,063			43,595			193,910			656,637			539,550
61 to 90		-		-			121,529			102,376			91,673			58,478			48,135			43,397			199,820			665,408			546,899
91 to 180		-		-			339,920			297,636			260,830			159,727			135,378			120,876			502,565			1,816,932			1,518,310
181 to 365		-		-			626,461			542,385			477,916			290,202			239,573			211,523			831,130			3,219,190			2,469,795
Over 365		-		-			1,999,045			1,773,260			1,355,374			800,009			609,860			504,176			1,597,965			8,639,689			5,746,939
Overdue installments		-		-			645,492			714,807			1,010,353			975,012			1,009,739			1,013,489			6,409,043			11,777,935			10,136,643
01 to 14		-		-			26,534			64,352			53,401			30,458			24,015			21,527			92,611			312,898			257,749
15 to 30		-		-			568,220			127,255			211,259			76,072			39,600			32,117			151,833			1,206,356			1,125,797
31 to 60		-		-			50,738			475,042			256,568			160,922			108,278			67,203			274,852			1,393,603			1,295,689
61 to 90		-		-			-			34,025			442,492			160,978			134,879			92,976			288,027			1,153,377			961,761
91 to 180		-		-			-			14,133			46,633			518,523			667,058			755,695			1,396,722			3,398,764			2,771,945
181 to 365		-		-			-			-			-			28,059			35,909			43,971			3,988,215			4,096,154			3,515,640
Over 365		-		-			-			-			-			-			-			-			216,783			216,783			208,062
SUBTOTAL		-		-			4,086,093			3,759,328			3,457,325			2,415,869			2,150,524			1,989,674			10,083,998			27,942,811			21,587,681
SPECIFIC ALLOWANCE		-		-			(40,860	)		(112,779	)		(345,733	)		(724,761	)		(1,075,262	)		(1,392,772	)		(10,083,998	)		(13,776,165	)		(10,914,643	)
SUBTOTAL – 09/30/2010		-		-			2,909,944			2,667,608			2,628,671			2,130,351			1,865,880			1,382,084			8,016,820			21,601,358
	NON-OVERDUE OPERATIONS
Falling due installments		109,353,559		141,769,611			26,347,504			13,075,127			10,163,966			1,331,510			918,791			505,275			2,195,019			305,660,362			253,951,656
01 to 30		8,630,088		23,865,032			4,802,604			4,682,681			3,263,587			193,568			85,206			70,587			595,814			46,189,167			39,346,248
31 to 60		9,010,182		12,863,448			1,899,772			1,036,722			640,995			58,045			84,936			37,164			235,682			25,866,946			21,407,037
61 to 90		7,682,929		8,131,986			1,601,650			737,527			491,270			67,065			27,324			22,294			122,468			18,884,513			16,620,205
91 to 180		11,673,039		15,932,250			2,889,715			1,433,472			988,342			123,488			79,214			47,512			233,517			33,400,549			29,577,927
181 to 365		16,797,463		20,542,785			4,144,722			1,772,777			1,584,320			159,454			145,143			76,002			259,912			45,482,578			37,549,249
Over 365		55,559,858		60,434,110			11,009,041			3,411,948			3,195,452			729,890			496,968			251,716			747,626			135,836,609			109,450,990
Overdue up to 14 days		225,685		890,901			110,796			133,103			219,125			28,329			18,201			10,086			39,287			1,675,513			1,635,409
SUBTOTAL		109,579,244		142,660,512			26,458,300			13,208,230			10,383,091			1,359,839			936,992			515,361			2,234,306			307,335,875			255,587,065
GENERIC ALLOWANCE		-		(713,302	)		(264,583	)		(396,247	)		(1,038,309	)		(407,952	)		(468,496	)		(360,753	)		(2,234,306	)		(5,883,948	)		(5,999,680	)
SUBTOTAL - 09/30/2010		44,602,632		134,818,694			49,348,405			13,252,605			7,601,504			2,417,044			901,497			487,233			2,143,774			255,573,388
GRAND TOTAL		109,579,244		142,660,512			30,544,393			16,967,558			13,840,416			3,775,708			3,087,516			2,505,035			12,318,304			335,278,686			277,174,746
EXISTING ALLOWANCE		-		(713,302	)		(305,443	)		(677,523	)		(4,150,741	)		(1,887,477	)		(2,160,953	)		(2,504,785	)		(12,318,304	)		(24,718,528	)		(23,018,323	)
Minimum allowance required (3)		-		(713,302	)		(305,443	)		(509,026	)		(1,384,042	)		(1,132,713	)		(1,543,758	)		(1,753,525	)		(12,318,304	)		(19,660,113	)		(16,914,323	)
Additional allowance (4)		-		-			-			(168,497	)		(2,766,699	)		(754,764	)		(617,195	)		(751,260	)		-			(5,058,415	)		(6,104,000	)
GRAND TOTAL 09/30/2010		44,602,632		134,818,694			52,258,349			15,920,213			10,230,175			4,547,395			2,767,377			1,869,317			10,160,594			277,174,746
PROVISÃO EXISTENTE		-		(674,093	)		(1,445,917	)		(1,590,429	)		(3,068,029	)		(2,273,243	)		(1,936,888	)		(1,869,130	)		(10,160,594	)		(23,018,323	)
Minimum allowance required (3)		-		(674,093	)		(522,583	)		(477,606	)		(1,023,017	)		(1,364,219	)		(1,383,689	)		(1,308,522	)		(10,160,594	)		(16,914,323	)
Additional allowance (4)		-		-			(923,334	)		(1,112,823	)		(2,045,012	)		(909,024	)		(553,199	)		(560,608	)		-			(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$ 18,849,520 (R$ 14,019,353 at 9/30/2010);

(3) The policy of not using "AA" ratings 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

	09/30/2011		%		09/30/2010		%
PUBLIC SECTOR		1,741,160		0.5		1,423,036		0.5
Generation, transmission and distribution of electric energy		457,506		0.1		649,446		0.2
Chemical and petrochemical		272,089		0.1		301,988		0.1
Other		1,011,565		0.3		471,602		0.2
PRIVATE SECTOR		333,537,526		99.5		275,751,710		99.5
COMPANIES		184,583,343		55.1		152,478,755		55.0
INDUSTRY AND COMMERCE		98,759,298		29.5		79,315,291		28.6
Food and beverage		16,795,436		5.0		13,405,932		4.8
Autoparts and accessories		4,892,242		1.5		3,568,297		1.3
Agribusiness capital assets		982,287		0.3		793,234		0.3
Industrial capital assets		5,408,552		1.6		4,694,056		1.7
Pulp and paper		2,398,579		0.7		2,261,327		0.8
Distribution of fuels		2,100,988		0.6		1,777,394		0.6
Electrical and electronic		6,932,282		2.1		6,345,086		2.3
Pharmaceuticals		2,517,679		0.8		1,806,423		0.7
Fertilizers, insecticides and crop protection		1,548,925		0.5		1,244,590		0.4
Tobacco		300,050		0.1		473,006		0.2
Import and export		2,106,479		0.6		1,700,010		0.6
Hospital care materials and equipment		1,004,637		0.3		878,414		0.3
Construction material		5,323,564		1.6		4,220,421		1.5
Steel and metallurgy		7,365,750		2.2		6,224,427		2.2
Wood and furniture		2,895,173		0.9		2,581,524		0.9
Chemical and petrochemical		6,606,801		2.0		5,590,130		2.0
Supermarkets		1,470,649		0.4		1,004,776		0.4
Light and heavy vehicles		7,270,310		2.2		5,793,026		2.1
Clothing		9,215,549		2.7		6,962,275		2.5
Other - Commerce		6,247,452		1.9		4,642,321		1.7
Other - Industry		5,375,914		1.6		3,348,622		1.2
SERVICES		69,426,857		20.7		57,543,772		20.8
Heavy construction (constructors)		3,777,420		1.1		3,297,008		1.2
Financial		5,389,879		1.6		5,827,931		2.1
Generation, transmission and distribution of electric energy		5,289,919		1.6		5,367,663		1.9
Holding company		3,105,142		0.9		3,188,164		1.2
Real estate agents		11,032,566		3.3		8,912,489		3.2
Media		3,169,461		0.9		2,510,249		0.9
Service companies		4,675,763		1.4		4,046,811		1.5
Health care		1,751,842		0.5		1,549,600		0.6
Telecommunications		1,117,281		0.3		792,158		0.3
Transportation		15,583,850		4.6		11,602,883		4.2
Other services		14,533,734		4.3		10,448,816		3.8
PRIMARY SECTOR		15,473,467		4.6		13,742,508		5.0
Agribusiness		13,543,453		4.0		11,458,928		4.1
Mining		1,930,014		0.6		2,283,580		0.8
Other companies		923,721		0.3		1,877,184		0.7
INDIVIDUALS		148,954,183		44.3		123,272,955		44.5
Credit cards		36,551,880		10.9		29,497,432		10.6
Consumer loans/overdraft		36,679,740		10.9		26,953,236		9.7
Real estate financing		15,714,668		4.7		9,555,098		3.4
Vehicles		60,007,895		17.9		57,267,189		20.7
GRAND TOTAL		335,278,686		100.0		277,174,746		100.0

b) Credit concentration

	9/30/2011				9/30/2010
Loan, lease and other credit operations (*)	Risk		% of  Total		Risk		% of Total
Largest debtor		2,719,973		0.7		2,112,908		0.7
10 largest debtors		20,279,406		5.3		16,941,764		5.5
20 largest debtors		33,844,521		8.9		27,499,407		9.0
50 largest debtors		55,362,851		14.5		45,665,894		15.1
100 largest debtors		73,252,442		19.2		60,646,167		19.9

	9/30/2011				9/30/2010
Loan, lease and other credit operations and securities of companies and financial institutions (*)	Risk		% of Total		Risk		% of Total
Largest debtor		5,513,780		1.3		4,283,282		1.2
10 largest debtors		31,495,562		7.4		27,502,914		7.8
20 largest debtors		50,146,147		11.7		43,126,619		12.2
50 largest debtors		79,071,076		18.5		68,220,263		19.4
100 largest debtors		103,282,020		24.1		87,911,733		25.0

(*) The amounts include endorsements and sureties.

c) Changes in allowance for loan losses

	01/01 to 09/30/2011			01/01 to 09/30/2010
Opening balance		(22,018,217	)		(23,702,735	)
Net increase for the period		(14,458,717	)		(11,774,937	)
Minimum required by Resolution No. 2,682/99		(14,458,717	)		(11,774,937	)
Write-Off		11,758,406			12,459,349
Closing balance		(24,718,528	)		(23,018,323	)
Required by Resolution No. 2,682/99		(19,660,113	)		(16,914,323	)
Specific allowance (1)		(13,776,165	)		(10,914,643	)
Generic allowance (2)		(5,883,948	)		(5,999,680	)
Additional allowance (3)		(5,058,415	)		(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)  As from the first half of 2011, it refers to the provision in excess of the minimum required percentage by CMN Resolution No. 2,682, of December 21, 1999, based on the expected loss methodology adopted in the institution's credit risk management, which also considers the potential losses in revolving credits.

In 2010, the need for additional allowance for loan losses was reduced in view of the new Basel III guidelines, which determined that the counter-cyclical effects be buffered in the base of capital.

At September 30, 2011, the balance of the allowance in relation to the loan portfolio is equivalent to 7.4% (8.3% at 9/30/2010).

d)  Recovery and renegotiation of credits

I -  Composition of the result of allowance for loan losses

	01/01 to 9/30/2011			01/01 to 9/30/2010
Expenses for allowance for loan losses		(14,458,717	)		(11,774,937	)
Income from recovery of credits written off as loss		3,914,586			2,899,057
Result of allowance for loan losses		(10,544,131	)		(8,875,880	)

II -  Renegotiated credits

	9/30/2011			9/30/2010
Renegotiated credits		13,085,142			8,451,288
Allowance for loan losses		(5,522,952	)		(4,013,326	)
(%)		42.2			47.5

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.

	09/30/2011						01/01 to 09/30/2011
	31 - 180		181 - 365		Total		Income (expenses)
Restricted operations on assets
Loan operations		94,205		71,394		165,599		20,358
Liabilities - restricted operations on assets
Foreign borrowings through securities		94,185		71,394		165,579		(20,326	)
Net revenue from restricted operations								32

At September 2011, 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$ 30,661 composed exclusively of loan operations and receivables assigned with joint obligation.

g) Credit assignment

By the third quarter of 2011, credits were assigned without joint obligation, supported by the provisions of CMN resolution No. 2,836, of May 30, 2001; with the Related Parties amounting to R$288,776, without effect on the consolidated income; and those with Non-Related Parties amounting to R$ 1,864,067, with an effect of (R$ 70) in income.

NOTE 9 - FOREIGN EXCHANGE PORTFOLIO

	9/30/2011			9/30/2010
ASSETS – OTHER RECEIVABLES		40,273,816			20,570,549
Exchange purchase pending settlement – foreign currency		21,883,533			10,578,019
Bills of exchange and term documents – foreign currency		-			507
Exchange sale rights – local currency		18,623,314			10,474,794
(Advances received) – local currency		(233,031	)		(482,771	)
LIABILITIES – OTHER LIABILITIES (Note 2a)		39,758,637			21,398,733
Exchange sales pending settlement – foreign currency		18,406,320			10,406,177
Liabilities from purchase of foreign currency – local currency		21,348,264			10,987,996
Other		4,053			4,560
MEMORANDUM ACCOUNTS		612,592			500,428
Outstanding import credits – foreign currency		587,469			474,912
Confirmed export credits – foreign currency		25,123			25,516

NOTE 10 – FUNDING AND BORROWINGS AND ONLENDING

a) Summary

	9/30/2011												9/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Deposits		118,615,296		25,545,979		10,914,648		65,599,408		220,675,331		39.9		194,888,723		43.2
Deposits received under securities repurchase agreements		71,981,422		12,968,985		14,058,938		96,559,948		195,569,293		35.3		155,653,518		34.5
Funds from acceptance and issuance of securities		2,346,895		12,722,600		6,327,996		19,567,731		40,965,222		7.4		23,353,267		5.2
Borrowings and onlending		2,604,656		15,248,184		13,007,671		27,011,632		57,872,143		10.5		43,194,790		9.6
Subordinated debt (*)		56,123		41,515		8,684,731		29,584,279		38,366,648		6.9		33,683,469		7.5
TOTAL		195,604,392		66,527,263		52,993,984		238,322,998		553,448,637				450,773,767
% per maturity term		35.3		12.0		9.6		43.1
TOTAL - 9/30/2010		164,714,641		46,746,769		39,591,324		199,721,033		450,773,767
% per maturity term		36.5		10.4		8.8		44.3

(*) Includes R$ 728,949 (R$ 665,973 at 9/30/2010) of Redeemable Preferred Shares classified under Minority Interest in the Balance Sheet.

b) Deposits

	9/30/2011												9/30/2010
	0-30		31-180		181-365		Over 365		Total		%		Total		%
Demand deposits		26,069,204		-		-		-		26,069,204		11.8		28,062,884		14.4
Savings accounts		63,334,088		-		-		-		63,334,088		28.7		54,874,272		28.2
Interbank		581,431		966,585		286,822		322,500		2,157,338		1.0		1,257,556		0.6
Time deposits		28,630,573		24,579,394		10,627,826		65,276,908		129,114,701		58.5		109,697,236		56.3
Other deposits		-		-		-		-		-		0.0		996,775		0.5
TOTAL		118,615,296		25,545,979		10,914,648		65,599,408		220,675,331				194,888,723
% per maturity term		53.8		11.6		4.9		29.7
TOTAL - 9/30/2010		101,197,662		13,923,586		13,816,012		65,951,463		194,888,723
% per maturity term		52.0		7.1		7.1		33.8

ITAÚ UNIBANCO's portfolio is composed of interbank deposits in the amount of  R$ 4,705,826 (R$ 3,260,392 at 9/30/2010) with maturity over 365 days.

c) Deposits received under securities repurchase agreements

	9/30/2011												9/30/2010
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Own portfolio		35,933,944		12,934,149		12,318,081		84,931,761		146,117,935		74.7		104,743,736		67.2
Government securities		27,476,535		323,174		64,051		39,723		27,903,483		14.3		8,812,821		5.7
Private securities		-		-		-		-		-		0.0		108,596		0.1
Own issue		1,703,955		12,569,160		12,048,773		84,243,297		110,565,185		56.5		89,798,306		57.6
Foreign		6,753,454		41,815		205,257		648,741		7,649,267		3.9		6,024,013		3.8
Third-party portfolio		36,047,478		-		-		-		36,047,478		18.4		39,466,088		25.4
Free portfolio		-		34,836		1,740,857		11,628,187		13,403,880		6.9		11,443,694		7.4
TOTAL		71,981,422		12,968,985		14,058,938		96,559,948		195,569,293				155,653,518
% per maturity term		36.8		6.6		7.2		49.4
TOTAL - 9/30/2010		56,441,301		16,980,704		13,972,800		68,258,713		155,653,518
% per maturity term		36.3		10.9		9.0		43.8

d) Funds from acceptance and issuance of securities

	9/30/2011									9/30/2010
	0-30	31-180	181-365	Over 365		Total		%		Total		%
FUNDS FROM BILLS:	1,775,142	9,837,357	2,874,324		11,013,838		25,500,661		62.2		11,429,234		48.9
of real estate loans	1,262,420	9,218,310	1,915,098		1,356,872		13,752,700		33.6		7,311,478		31.3
Financial	-	-	595,663		7,666,318		8,261,981		20.2		555,074		2.4
Bill of credit related to agribusiness	503,875	607,913	346,037		1,773,537		3,231,362		7.9		3,245,625		13.9
Mortgage notes	8,847	11,134	17,526		217,111		254,618		0.6		317,057		1.4
DEBENTURES	61,008	-	-		1,053,441		1,114,449		2.7		2,629,103		11.3
FOREIGN BORROWINGS AND SECURITIES	510,745	2,885,243	3,453,672		7,500,452		14,350,112		35.0		9,294,930		39.8
Trade Related – issued abroad	3,404	14,596	17,667		936,810		972,477		2.4		1,629,202		7.0
Bonds	3,404	14,596	17,667		936,810		972,477		2.4		-		-
Structure Note Issued	-	-	-		-		-		-		1,629,202		7.0
Non-Trade Related – Issued abroad	507,341	2,870,647	3,436,005		6,563,642		13,377,635		32.7		7,665,728		32.8
Euro Certificates of Deposits	347,203	1,990,703	2,240,197		132,921		4,711,024		11.5		665,107		2.8
Structure Note Issued	90,080	592,568	829,619		2,995,336		4,507,603		11.0		232,534		1.0
Brazil Risk Note Programme	21,118	226,097	284,026		2,734,916		3,266,157		8.0		3,831,430		16.4
Fixed Rate Notes	15,861	18,261	29,604		370,046		433,772		1.1		1,552,832		6.6
Euro Medium Term Note Programme	8,310	6,409	658		275,724		291,101		0.7		525,669		2.3
Medium Term Note	24,769	36,219	51,609		45,173		157,770		0.4		144,101		0.6
Eurobonds	-	390	292		9,526		10,208		0.0		712,960		3.1
Other	-	-	-		-		-		-		1,095		0.0
TOTAL	2,346,895	12,722,600	6,327,996		19,567,731		40,965,222				23,353,267
% per maturity term	5.7	31.1	15.4		47.8
TOTAL – 9/30/2010	4,642,081	8,569,024	2,088,451		8,053,711		23,353,267
% per maturity term	19.9	36.7	8.9		34.5

ITAÚ UNIBANCO HOLDING’s portfolio is composed of Brazil Risk Note Programme with maturity from 31 to 180 days amounting to R$ 16,577 and with maturity over 365 days amounting to R$ 500,000, totaling R$ 516,577.

e)  Borrowings and onlending

	9/30/2011										9/30/2010
		0-30	31-180	181-365	Over 365		Total		%		Total		%
BORROWINGS		1,731,329	9,398,300	7,077,120		3,592,093		21,798,842		37.7		14,332,739		33.2
Domestic		314,258	2,298,916	860		7,002		2,621,036		4.5		1,763,229		4.1
Foreign (*)		1,417,071	7,099,384	7,076,260		3,585,091		19,177,806		33.1		12,569,510		29.1
ONLENDING		873,327	5,849,884	5,930,551		23,419,539		36,073,301		62.3		28,862,051		66.8
Domestic – official institutions		873,327	5,844,829	5,926,238		22,853,162		35,497,556		61.3		28,782,177		66.6
BNDES		302,249	1,127,072	1,324,289		7,114,463		9,868,073		17.1		10,141,608		23.5
FINAME		523,469	4,601,959	4,543,963		15,504,023		25,173,414		43.5		18,146,012		42.0
Other		47,609	115,798	57,986		234,676		456,069		0.8		494,557		1.1
Foreign		-	5,055	4,313		566,377		575,745		1.0		79,874		0.2
TOTAL		2,604,656	15,248,184	13,007,671		27,011,632		57,872,143				43,194,790
% per maturity term		4.5	26.3	22.5		46.7
TOTAL - 9/30/2010		2,372,470	7,264,345	8,821,244		24,736,731		43,194,790
% per maturity term		5.5	16.8	20.4		57.3

(*)  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:

	9/30/2011													9/30/2010
		0-30	31-180	181-365	Over 365			Total			%			Total			%
CDB		-	-	8,681,659		13,885,203			22,566,862			58.8			25,158,257			74.7
Financial Treasury Bills		-	-	-		9,623,543			9,623,543			25.1			2,395,186			7.1
Euronotes		53,015	41,515	-		5,077,023			5,171,553			13.5			4,337,626			12.8
Bonds		3,108	-	3,036		294,325			300,469			0.8			303,598			0.9
Eurobonds		-	-	-		-			-			-			859,792			2.6
(-) Transaction costs incurred (Note 4b)		-	-	-		(24,728	)		(24,728	)		(0.1	)		(36,963	)		(0.1	)
TOTAL OTHER LIABILITIES		56,123	41,515	8,684,695		28,855,366			37,637,699						33,017,496
Redeemable preferred shares		-	-	36		728,913			728,949			1.9			665,973			2.0
GRAND TOTAL		56,123	41,515	8,684,731		29,584,279			38,366,648						33,683,469
% per maturity term		0.1	0.1	22.6		77.1
TOTAL – 9/30/2010		61,127	9,110	892,817		32,720,415			33,683,469
% per maturity term		0.2	0.0	2.7		97.1

Description
Name of security	Issue	Maturity	Return p.a.			Principal R$
Subordinated CDB
	2007	2012	103,5% to 104% of CDI				4,969,704
			CDI + 0,35% to 0,45%				731,836
			IGPM + 7,31 to 7,35%				278,350
	2002	2012	102,5% of CDI				200,000
	2008	2013	CDI + 0,50% to 0,60%				1,508,200
			106% to 107% of CDI				48,401
	2003	2013	102% of CDI				40,000
	2007	2014	CDI + 0,35% to 0,60%				1,864,500
	2008	2014	112% of CDI				1,000,000
	2007	2014	IGPM + 7,35%				33,200
	2010	2015	113% to 119,8% of CDI				450,000
	2006	2016	CDI + 0,47% (1)				465,835
	2010	2016	110% to 114% of CDI				2,769,268
	2010	2016	IPCA + 7,33%				122,500
	2010	2017	IPCA + 7,45%				366,830
			TOTAL				14,848,624
Subordinated financial bills
	2010	2016	CDI + 1,35% to 1,36%				365,000
	2010	2016	112% to 112,5% of CDI				1,874,000
	2010	2016	100% of IPCA + 7%				30,000
	2010	2017	IPCA + 6,95% to 7,2%				206,000
	2011	2017	108% a 112% of CDI				2,871,500
	2011	2017	IPCA + 6,38% to 7,8%				314,000
	2011	2017	IGPM + 7% to 7,6%				55,000
	2011	2017	CDI + 1,29% to 1,52%				3,640,000
	2011	2018	IGPM + 7%				42,000
	2011	2018	IPCA + 7,53% to 7,7%				30,000
	2011	2019	109,7% of CDI				1,000
	2011	2021	109,25% to 110,5% of CDI				6,000
			TOTAL				9,434,500
Subordinated Euronotes
	2010	2020		6.2	%		1,730,600
	2010	2021		5.75	%		1,694,200
	2011	2021	4,25% to 10%				1,198,900
			TOTAL				4,623,700
Subordinated Bonos
	2005	2015		1.42	%		193,834
	2008	2033	3,5% to 4,5%				141,127
			TOTAL				334,961
Preferred shares
	2002	2015		3.04	%		1,388,841

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

In ITAÚ UNIBANCO HOLDING’s portfolio is composed of subordinated euronotes with maturity of up to 30 days in the amount of R$ 53,015 (R$ 48,435 at September 30,2010), with maturity from 31 to 180 days in the amount to R$ 41,515 (R$ 2,165 at September 30,2010) and over 365 days in the amount of R$ 5,052,295 (R$ 3,364,059 at September 30, 2010), totaling R$ 5,146,825 ( R$ 3,414,659 at September 30, 2010).

NOTE 11 - INSURANCE, PENSION PLAN AND CAPITALIZATION OPERATIONS

a) Composition of the technical provisions per segment

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	9/30/2011		9/30/2010		9/30/2011		9/30/2010		9/30/2011		9/30/2010		9/30/2011		9/30/2010
Mathematical provision of benefits to be granted and benefits granted		16,247		30,937		58,314,187		47,277,808		-		-		58,330,434		47,308,745
Unearned premiums		2,969,533		2,526,869		-		-		-		-		2,969,533		2,526,869
Unsettled claims		2,477,419		2,090,185		-		-		-		-		2,477,419		2,090,185
Financial surplus		1,519		1,749		470,686		453,559		-		-		472,205		455,308
IBNR		710,019		652,658		10,533		12,700		-		-		720,552		665,358
Premium deficiency		298,750		263,113		-		-		-		-		298,750		263,113
Insufficient contribution		-		254		660,860		535,201		-		-		660,860		535,455
Mathematical provision for redemptions		-		-		-		-		2,762,113		2,433,861		2,762,113		2,433,861
Raffle contingency		-		-		-		-		26,921		21,709		26,921		21,709
Other		1,236,214		1,083,689		180,611		304,164		34,083		28,277		1,450,908		1,416,130
TOTAL		7,709,701		6,649,454		59,636,877		48,583,432		2,823,117		2,483,847		70,169,695		57,716,733

b) Assets Guaranteeing Technical Provisions - SUSEP

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	9/30/2011		9/30/2010		9/30/2011		9/30/2010		9/30/2011		9/30/2010		9/30/2011		9/30/2010
Interbank investments – money market		885,427		1,421,155		1,163,496		947,414		1,277,938		1,164,720		3,326,861		3,533,289
Securities and derivative financial instruments		2,630,046		1,658,268		58,862,052		47,689,121		1,611,513		1,360,774		63,103,611		50,708,163
PGBL/VGBL FUND QUOTAS (1)		-		-		54,090,499		43,352,422		-		-		54,090,499		43,352,422
Government securities - domestic		-		-		37,681,147		31,435,519		-		-		37,681,147		31,435,519
National Treasury Bills		-		-		17,776,775		15,993,240		-		-		17,776,775		15,993,240
National Treasury Notes		-		-		16,376,179		13,336,217		-		-		16,376,179		13,336,217
Financial Treasury Bills		-		-		3,528,193		2,106,062		-		-		3,528,193		2,106,062
Corporate securities		-		-		16,294,674		11,818,124		-		-		16,294,674		11,818,124
Bank deposit certificates		-		-		6,880,718		5,203,676		-		-		6,880,718		5,203,676
Debentures		-		-		4,902,961		4,537,451		-		-		4,902,961		4,537,451
Shares		-		-		1,649,728		1,941,823		-		-		1,649,728		1,941,823
Fund quotas		-		-		-		131,078		-		-		-		131,078
Promissory Notes		-		-		-		2,656		-		-		-		2,656
Credit note		-		-		141,717		-		-		-		141,717		-
Financial Treasury Bills		-		-		2,718,112		-		-		-		2,718,112		-
Securitized real estate loans		-		-		1,438		1,440		-		-		1,438		1,440
PGBL/VGBL fund quotas		-		-		45,383		7,786		-		-		45,383		7,786
Derivative financial instruments		-		-		32,371		15,324		-		-		32,371		15,324
Accounts receivable / (payable)		-		-		36,924		75,669		-		-		36,924		75,669
Other assets		2,630,046		1,658,268		4,771,553		4,336,699		1,611,513		1,360,774		9,013,112		7,355,741
Government		812,981		863,298		3,613,083		3,399,229		161,507		148,692		4,587,571		4,411,219
Private		1,817,065		794,970		1,158,470		937,470		1,450,006		1,212,082		4,425,541		2,944,522
Receivables from insurance and reinsurance operations (2)		4,295,183		3,997,060		-		-		-		-		4,295,183		3,997,060
Credit rights		1,090,837		1,207,524		-		-		-		-		1,090,837		1,207,524
Extended guarantee		1,217,753		1,054,518		-		-		-		-		1,217,753		1,054,518
Reinsurance		1,986,593		1,735,018		-		-		-		-		1,986,593		1,735,018
Escrow deposits for loss		26,360		44,706		-		-		-		-		26,360		44,706
TOTAL		7,837,016		7,121,189		60,025,548		48,636,535		2,889,451		2,525,494		70,752,015		58,283,218

(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) Financial and operating income per segment

	INSURANCE						PENSION PLAN						CAPITALIZATION						TOTAL
	01/01 to 09/30/2011			01/01 to 09/30/2010			01/01 to 09/30/2011			01/01 to 09/30/2010			01/01 to 09/30/2011			01/01 to 09/30/2010			01/01 to 09/30/2011			01/01 to 09/30/2010
Financial income from insurance, pension plan and capitalization operations		223,056			174,093		167,043			117,210			108,997			62,733			499,096			354,036
Financial income		272,529			218,041			3,616,675			2,805,151			250,317			171,494			4,139,521			3,194,686
Financial expenses		(49,473	)		(43,948	)		(3,449,632	)		(2,687,941	)		(141,320	)		(108,761	)		(3,640,425	)		(2,840,650	)
Operating income from insurance, pension plan and capitalization operations		1,511,795			1,285,323			21,473			29,815			362,296			328,358			1,895,564			1,643,496
Premiums and contributions		4,080,279			3,646,691			8,289,022			5,930,201			1,402,831			1,276,598			13,772,132			10,853,490
Changes in technical provisions		(508,207	)		(212,144	)		(8,253,384	)		(5,870,968	)		(10,320	)		12,663			(8,771,911	)		(6,070,449	)
Expenses for claims, benefits, redemptions and raffles		(1,190,014	)		(1,246,162	)		(11,920	)		(26,271	)		(1,026,283	)		(955,215	)		(2,228,217	)		(2,227,648	)
Selling expenses		(731,573	)		(710,446	)		(1,823	)		(4,829	)		(3,806	)		(5,612	)		(737,202	)		(720,887	)
Other operating revenues and expenses		(138,690	)		(192,616	)		(422	)		1,682			(126	)		(76	)		(139,238	)		(191,010	)
Total result from insurance, pension plan and capitalization operations		1,734,851			1,459,416			188,516			147,025			471,293			391,091			2,394,660			1,997,532

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

In the ordinary course of its businesses, ITAÚ UNIBANCO HOLDING CONSOLIDATED is involved in contingencies that may be classified as follows.

a) Contingent Assets: there are no contingent assets recorded.

b) Contingent Liabilities: The criteria to quantify contingencies are adequate in relation to the specific characteristics of civil, labor and tax lawsuits portfolios, as well as other risks.

- Civil lawsuits

Collective lawsuits (related to claims considered similar and which each individual amount is not considered significant): contingencies are determined on a monthly basis and the expected amount of losses is accrued according to statistical references that take into account the type of lawsuit and the characteristics of the legal body (Small Claims Court or Regular Court).

Individual lawsuits (related to claims with unusual characteristics or involving significant amounts): determined from time to time, based on the amount claimed and the likelihood of loss, which, in turn, is estimated according to the “de facto” and “de jure” characteristics related to such lawsuit. The amounts of losses which likelihood of loss is considered probable are accrued.

Contingencies usually arise from revision of contracts and compensation for property damage and pain and suffering; most of these lawsuits are 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.

In the accounting books no amount is recognized in relation to Civil Lawsuits which likelihood of loss is considered possible, which total estimated risk is R$ 711,947; the main natures of these lawsuits are as follows:

- Labor claims

Collective lawsuits (related to claims considered similar and which each individual amount is not considered significant). The expected amount of loss is determined and accrued monthly by the moving average of payments in relation to lawsuits settled in the last 12 months, plus the average cost of fees. These are adjusted to the amounts deposited as guarantee for their execution when realized.

Individual lawsuits (related to claims with unusual characteristics or involving significant amounts): determined from time to time, based on the amount claimed and the likelihood of loss, which, in turn, is estimated according to the “de facto” and “de jure” characteristics related to such lawsuit. The amounts of losses which likelihood of loss is considered probable are accrued.

Contingencies are related to lawsuits in which 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, are discussed.

- Other Risks

These are quantified and accrued mainly based on the evaluation of rural credit transactions with joint liability and FCVS (salary variations compensation fund) credits assigned to Banco Nacional.

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

	01/01 to 9/30/2011												01/01 to 9/30/2010
	Civil			Labor			Other			Total			Total
Opening balance		2,973,630			3,985,877			173,140			7,132,647			5,734,330
(-) Contingencies guaranteed by indemnity clauses (Note 4o I)		(308,810	)		(1,112,816	)		-			(1,421,626	)		(671,889	)
Subtotal		2,664,820			2,873,061			173,140			5,711,021			5,062,441
Restatement/Charges		62,833			81,052			-			143,885			182,294
Changes in the period reflected in results (Notes 13f and 13i)		1,116,991			551,359			(6,957	)		1,661,393			1,276,875
Increase (*)		1,437,646			683,929			-			2,121,575			1,605,788
Reversal		(320,655	)		(132,570	)		(6,957	)		(460,182	)		(328,913	)
Payment		(877,119	)		(497,753	)		-			(1,374,872	)		(993,822	)
Subtotal		2,967,525			3,007,719			166,183			6,141,427			5,527,788
(+) Contingencies guaranteed by indemnity clauses (Note 4o I)		137,450			1,063,333			-			1,200,783			672,106
Closing balance (Note 13c)		3,104,975			4,071,052			166,183			7,342,210			6,199,894
Closing balance at 09/30/ 2010 (Note 13c)		2,748,266			3,263,858			187,770			6,199,894
Escrow deposits at 9/30/2010 (Note 13a)		1,932,510			1,653,248			-			3,585,758
Escrow deposits at 9/30/2009 (Note 13a)		1,428,066			1,536,117			-			2,964,183

(*) Civil provisions include the provision for economic plans amounting to R$ 230,739 (R$ 402,334 from January 1 to September 30, 2010) (Note 22k).

- Tax and social security lawsuits

Contingencies are equivalent to the principal amount of taxes involved in tax, administrative or judicial challenges, subject to tax assessment notices, plus interest and, when applicable, fines and charges. The amount is accrued when it involves a legal liability, regardless of the likelihood of loss, that is, a favorable outcome to the institution is dependent upon the recognition of the unconstitutionality of the applicable law in force. In other cases, the Bank recognizes a provision whenever the likelihood of loss is probable.

The table below shows the changes in the provisions and respective escrow deposits for Tax and Social Security lawsuits balances:

PROVISIONS	01/01 to 09/30/2011									01/01 to 09/30/2010
	Legal obligation			Contingencies			TOTAL			TOTAL
Opening balance		5,091,341			2,165,412			7,256,753			7,718,852
(-) Contingencies guaranteed by indemnity clauses		-			(44,473	)		(44,473	)		(35,331	)
Subtotal		5,091,341			2,120,939			7,212,280			7,683,521
Restatement/Charges		349,330			49,191			398,521			230,976
Changes in the period reflected in results		448,741			270,436			719,177			234,498
Increase		474,077			325,346			799,423			722,433
Reversal (*)		(25,336	)		(54,910	)		(80,246	)		(487,935	)
Payment (*)		(17,041	)		(90,850	)		(107,891	)		(1,945,952	)
Subtotal		5,872,371			2,349,716			8,222,087			6,203,043
(+) Contingencies guaranteed by indemnity clauses		-			10,781			10,781			51,009
Closing balance (Note 13c)		5,872,371			2,360,497			8,232,868			6,254,052
Closing balance at September 30, 2010 (Notes 13c and 14c)		4,720,184			1,533,868			6,254,052			-

(*) 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. In the first half of 2010, the program included the debits administered by the Federal Reserve Service of Brazil and 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 9,718, of November 27, 1998.

	01/01 to 09/30/2011									01/01 to 09/30/2010
Escrow deposits	Legal Obligation			Contingencies			Total			Total
Opening balance		3,660,985			1,022,898			4,683,883			5,076,824
Appropriation of income		219,060			77,820			296,881			195,373
Changes in the period		75,825			96,143			171,968			(825,999	)
Deposited		106,570			98,534			205,104			264,394
Withdrawals		(22,030	)		(1,615	)		(23,645	)		(1,075,756	)
Conversion into income		(8,715	)		(776	)		(9,491	)		(14,638	)
Closing balance		3,955,871			1,196,861			5,152,732			4,446,197
Closing balance at 09/30/2010		3,584,861			861,336			4,446,197

The main discussions related to Legal Obligations are described as follows:

· PIS and COFINS – Calculation basis – R$ 2,683,707: we defend the levy of contributions on revenue, understood as the revenue from sales of assets and services. The escrow deposit balance totals R$ 1,024,512.

· CSLL – Isonomy – R$ 1,174,671, as the law increased the CSLL rate for financial and insurance companies to 15%, we discuss the lack of constitutional support for this measure and, due to the principle of isonomy, we defend the levy at the regular rate of 9%. The escrow deposit balance totals R$ 223,949.

· IRPJ and CSLL –Taxation of profits earned abroad – R$ 483,090: We discuss the calculation basis for levy of these taxes on profits earned abroad and the non-applicability of Regulatory Instruction SRF No. 213-01 in which it exceeds the suitability of the legal text. The escrow deposit balance totals R$ 483,090.

· PIS – R$ 371,492 - Principles of 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$ 126,421.

· INSS x Surcharge – R$ 154,407 – Reject the 2.5% surcharge on the social security contribution for the financial institutions and the like. The corresponding escrow deposit totals R$ 154,407.

No amounts involved in Tax and Social Security Lawsuits considered to be as possible loss, which total estimated risk is R$ 5,671,888, are recognized in the accounting books, the main nature of which are described, as follows:

· IRPJ, CSLL, PIS and COFINS – request for offset dismissed - R$ 1,017,872: cases in which the liquidity and the offset credit certainty are discussed.

· INSS – Non-compensatory amounts – R$ 611.292: we defend the non-taxation of these amounts, mainly profit sharing, transportation vouchers and sole bonus.

· IRPJ/CSLL - Losses and discounts on receipt of credits – R$ 526,413: deductibility of effective losses as operating expense – credit assignment and renegotiation.

· ISS – Banking Institutions – R$ 435,493: these are banking operations, which revenue may not be interpreted as price per service rendered and/or arise from activities not listed under Supplementary Law.

· IRPJ, CSLL, PIS and COFINS – Usufruct of quotas and shares - R$ 367,682: we discuss the adequate accountig and tax treatment for the amount received due to the onerous recognition of usufruct.

· IRPJ/CSLL - Interest on capital - R$ 350,894: 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.

 

c) Receivables - Reimbursement of contingencies

The Receivables balance arising from reimbursements of contingencies totals R$ 1,555,100 (R$ 1,106,278  at 9/30/2010) (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.
 

d) Guarantee of voluntary resources

These are pledged in guarantee of voluntary resources related to contingent liability and are restricted, deposited or recorded in the amounts below:

	09/30/2011		09/30/2010
Securities (basically Financial Treasury Bills - Note 7b)		1,499,418		1,430,050
Deposits in guarantee		3,404,911		3,393,463

According to the opinion of the legal advisors, ITAÚ UNIBANCO HOLDING and its subsidiary companies are not involved in any other administrative proceedings or legal lawsuits that may significantly impact the results of its operations. The combined evaluation of all existing provisions for all contingent liabilities and legal liabilities, which are recognized through the adoption of statistical models for claims involving small amounts, and individual evaluation by internal and external legal advisors of other cases, showed that the accrued amounts are sufficient, as provided for CMN Resolution No. 3,823, of December 16, 2009, and BACEN Circular Letter No. 3,429, of February 12, 2010.

NOTE 13 - BREAKDOWN OF ACCOUNTS

a) Other sundry receivables

	09/30/2011			09/30/2010
Deferred tax assets (Note 14b I)		28,701,443			26,313,284
Social contribution for offset (Note 14b I)		813,854			851,633
Taxes and contributions for offset		2,929,973			2,215,711
Escrow deposits for legal liabilities and tax and social security contingencies (Note 12b)		8,557,643			7,839,660
Escrow deposits for legal liabilities – civil and labor (Note 12b)		3,585,758			2,964,183
Escrow deposits for foreign fund raising program		602,644			1,932,880
Receivables from reimbursement of contingent liabilities (Note 12c)		1,555,100			1,106,278
Sundry domestic debtors		1,009,147			833,981
Sundry foreign debtors		83,865			91,287
Retirement plan assets (Note 19)		1,615,379			-
Recoverable payments		34,730			35,281
Salary advances		196,869			185,434
Amounts receivable from related companies		20,894			7,493
Operations without credit granting characteristics		188,833			173,852
Securities and credits receivable		492,679			497,336
(Allowance for loan losses)		(303,846	)		(323,484	)
Other		118,156			131,109
TOTAL		50,014,288			44,682,066

(*) Effects aring from commitment to employees benefits calculated according to CVM Resolution No. 600, of October 7, 2009.

At ITAÚ UNIBANCO HOLDING, Other Sundry Receivables are basically composed of Taxes and Contributions for Offset of R$ 90,711 (R$ 122,637  at September 30, 2010) and Deferred Tax Assets of R$ 1,002,579 (R$ 953,492 at September 30, 2010) (Note 14b I).

b) Prepaid expenses

	09/30/2011		09/30/2010
Commissions		3,103,433		2,875,378
Related to vehicle financing		909,444		981,496
Related to insurance and pension plan		1,327,093		1,339,826
Restricted to commissions/partnership agreements		586,317		325,939
Other		280,579		228,117
Fundo Garantidor de Crédito (*)		386,380		573,546
Advertising		315,475		330,627
Other		269,781		242,011
TOTAL		4,075,069		4,021,562

(*) 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

	09/30/2011		09/30/2010
Provisions for contingent liabilities (Note 12b)		9,702,707		7,803,559
Provisions for sundry payments		1,895,662		2,042,837
Personnel provision		1,581,511		1,407,930
Sundry creditors - local		994,753		797,698
Sundry creditors - foreign		617,938		610,562
Liabilities for official agreements and rendering of payment services		1,463,606		1,204,901
Related to insurance operations		1,143,946		844,608
Liabilities for purchase of assets and rights		20,245		55,435
Creditors of funds to be released		1,158,093		609,824
Funds from consortia participants		82,314		78,035
Provision for Retirement Plan Benefits (Note 19)		231,417		135,987
Provision for integration expenditures with ITAÚ UNIBANCO merger (1)		-		312,335
Provision for health insurance (2)		619,066		603,841
Expenses for lease interests (Note 4i)		298,562		163,635
Other		62,713		147,369
TOTAL		19,872,533		16,818,556

(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 is basically composed of Liabilities for Share-Based Instruments.

d) Banking service fees

	01/01 to 09/30/2011		01/01 to 09/30/2010
Asset management		1,945,688		1,839,122
Funds management fees		1,874,206		1,799,575
Consortia management fee		71,482		39,547
Current account services		498,753		423,122
Credit cards		4,428,217		3,919,858
Relationship with stores		4,126,295		3,653,903
Credit card processing		301,922		265,955
Sureties and credits granted		1,280,228		1,068,698
Loan operations		742,548		646,453
Guarantees provided		537,680		422,245
Receipt services		988,124		975,322
Collection fees		773,160		790,587
Collection services		214,964		184,735
Other		1,068,767		843,905
Custody services and management of portfolio		160,733		134,592
Economic and financial advisory		264,092		194,153
Foreign exchange services		60,309		51,427
Other services		583,633		463,733
TOTAL		10,209,777		9,070,027

 

e) Income from bank charges

	01/01 to 09/30/2011		01/01 to 09/30/2010
Loan operations/registration		1,149,192		995,081
Credit cards – annual fees and other services (*)		958,850		808,238
Deposit account		108,246		132,305
Transfer of funds		96,673		91,802
Income from securities brokerage (*)		344,951		354,918
Service package fees and other		1,092,415		1,154,907
Total		3,750,327		3,537,251

(*) In compliance with BACEN Circular Letter nº 3.490.

f) Personnel expenses

	01/01 to 09/30/2011			01/01 to 09/30/2010
Compensation		(4,655,154	)		(4,375,216	)
Charges		(1,503,715	)		(1,497,998	)
Welfare benefits		(1,194,770	)		(1,207,523	)
Training		(183,151	)		(144,308	)
Labor claims and termination of employees (Note 12b)		(800,426	)		(361,478	)
Total		(8,337,216	)		(7,586,523	)
Employees’ profit sharing		(1,711,394	)		(1,549,364	)
Total with Employees’ profit sharing		(10,048,610	)		(9,135,887	)

g) Other administrative expenses

	01/01 to 09/30/2011			01/01 to 09/30/2010
Data processing and telecommunications		(2,603,358	)		(2,296,571	)
Depreciation and amortization		(1,045,359	)		(1,032,992	)
Installations		(1,603,903	)		(1,764,886	)
Third-party services		(2,363,375	)		(2,036,954	)
Financial system services		(324,562	)		(282,363	)
Advertising, promotions and publication		(701,384	)		(795,033	)
Transportation		(430,117	)		(440,434	)
Materials		(334,720	)		(323,328	)
Security		(358,527	)		(324,688	)
Travel expenses		(135,020	)		(113,709	)
Other		(366,004	)		(334,618	)
TOTAL		(10,266,329	)		(9,745,576	)

h) Other operating revenues

	01/01 to 09/30/2011		01/01 to 09/30/2010
Reversal of operating provisions		68,441		379,711
Contingent assets and liabilities and legal liabilities – tax and social security (Notes 12b)		-		332,185
Other		68,441		47,526
Recovery of charges and expenses		59,598		52,148
Other		175,730		287,228
TOTAL		303,769		719,087

i) Other operating expenses

	01/01 to 09/30/2011			01/01 to 09/30/2010
Provision for contingencies (Note 12b)		(1,291,935	)		(918,059	)
Civil lawsuits		(1,116,991	)		(915,420	)
Tax and social security contributions		(181,901	)		-
Other		6,957			(2,639	)
Selling - Credit cards		(1,238,920	)		(1,095,950	)
Claims		(489,224	)		(393,001	)
Provision for health insurance (Note 13c)		(12,702	)		(7,850	)
Refund of interbank costs		(150,347	)		(139,920	)
Other		(661,340	)		(405,741	)
TOTAL		(3,844,468	)		(2,960,521	)

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 09/30/2011			01/01 to 09/30/2010
Income before income tax and social contribution		13,098,513			14,103,807
Charges (income tax and social contribution) at the rates in effect (Note 4p)		(5,239,405	)		(5,641,523	)
Increase/decrease to income tax and social contribution charges arising from:
Permanent additions (exclusions)		3,242,547			1,442,482
Investments in affiliates		56,198			128,403
Foreign exchange variation on investments abroad		1,020,832			(345,559	)
Interest on capital		1,267,101			1,139,226
Dividends, interest on external debt bonds and tax incentives		264,352			242,606
Other (*)		634,064			277,806
Temporary (additions) exclusions		(2,210,413	)		1,125,979
Allowance for loan losses		(1,477,817	)		(1,360,759	)
Excess (insufficiency) of depreciation of leased assets)		(895,527	)		671,107
Adjustment to market value of trading securities and derivative financial instruments and adjustments from operations in futures markets		(388,837	)		12,288
Interest on capital		(280,825	)		(585	)
Legal liabilities – tax and social security, contingent liabilities and restatement of escrow deposits		(296,083	)		674,464
Realization of goodwill on purchase of investments		1,281,212			1,245,576
Other		(152,536	)		(116,112	)
(Increase) offset of tax losses/social contribution loss carryforwards		(1,176,474	)		(809,408	)
Expenses for income tax and social contribution		(5,383,745	)		(3,882,470	)
Related to temporary differences
Increase (reversal) for the period		3,386,886			(316,570	)
Increase (reversal) for prior periods		580,235			358,828
Income (expenses) from deferred taxes		3,967,121			42,258
Total income tax and social contribution		(1,416,624	)		(3,840,212	)

(*) It includes the effect arising from the Program for Cash or Installment Payment for Federal Taxes – Law No. 11,941/09 (Note 22k).

II - Composition of tax expenses:

	01/01 to 09/30/2011			01/01 to 09/30/2010
PIS and COFINS		(2,274,846	)		(2,179,464	)
ISS		(481,735	)		(416,927	)
Other		(248,770	)		(380,553	)
Total (Note 4p)		(3,005,351	)		(2,976,944	)

At ITAÚ UNIBANCO HOLDING tax expenses are basically composed of PIS and COFINS in the amount of R$ 172,337 (R$ 23,813 from 01/01 to 09/30/2010).

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 base 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		09/30/2011		12/31/2010		Realization /  Reversal			Increase		09/30/2011		09/30/2010
Reflected in income and expense accounts
Related to income tax and social contribution loss carryforwards						2,998,746		(1,000,525	)		2,934,747		4,932,967		4,176,876
Related to disbursed provisions						14,186,050		(4,363,296	)		5,322,654		15,145,408		14,226,918
Allowance for loan losses						8,859,857		(3,182,163	)		4,915,517		10,593,210		8,483,944
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)						38,789		(38,789	)		386,571		386,571		93,634
Allowance for real estate						97,538		(21,346	)		1,146		77,339		114,858
Goodwill on purchase of investments						5,042,680		(1,087,361	)		-		3,955,319		5,360,720
Other						147,186		(33,637	)		19,421		132,970		173,762
Related to non-disbursed provisions (*)		22,343,014		23,291,092		7,428,040		(1,845,164	)		2,896,640		8,479,516		7,758,319
Related to the operation		16,239,014		18,232,677		5,887,366		(1,845,164	)		2,717,452		6,759,654		5,682,959
Legal liabilities – tax and social security		2,254,255		2,415,521		1,313,554		(49,047	)		87,476		1,351,983		1,187,853
Provision for contingent liabilities		7,721,774		7,201,098		2,417,799		(702,188	)		1,039,009		2,754,620		2,442,347
Civil lawsuits		2,668,275		2,936,054		1,038,062		(243,413	)		365,871		1,160,520		1,028,452
Labor claims		2,349,996		2,549,722		883,981		(399,441	)		479,032		963,572		853,347
Tax and social security contributions		2,618,848		1,663,606		462,671		(46,158	)		194,105		610,618		504,799
Other		84,655		51,716		33,085		(13,176	)		-		19,909		55,749
Adjustments of operations carried out in futures settlement market		149,244		546,968		54,693		(16,302	)		165,221		203,612		61,919
Provision related to health insurance operations		603,841		619,066		242,546		-			5,081		247,626		241,537
Other non-deductible provisions		5,509,900		7,450,023		1,858,775		(1,077,628	)		1,420,666		2,201,814		1,749,303
Related to provisions exceeding the minimum required not disbursed – allowance for loan losses		6,104,000		5,058,415		1,540,674		-			179,187		1,719,861		2,075,360
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		415,257		406,135		116,468		(63,291	)		90,375		143,552		151,171
Total		22,758,271		23,697,227		24,729,304		(7,272,276	)		11,244,415		28,701,443		26,313,284
Social contribution for offset arising from Option foreseen in article 8 of Provisional Measure No. 2,158-35 of 08/24/2001						847,216		(33,362	)		-		813,854		851,633

(*) From a financial point of view, rather than recording the provision of R$ 23,291,092 (R$ 22,343,014 at September 30, 2010) and deferred tax assets of R$ 8,479,516 (R$ 7,758,319 at September 30, 2010), only the net provisions of the corresponding tax effects should be considered, which would reduce the total deferred tax assets from R$ 28,701,443 (R$ 26,313,284 at September 30, 2010) to R$ 20,221,928 (R$ 18,554,965 at September 30, 2010).

At ITAÚ UNIBANCO HOLDING, the deferred tax assets totaled R$ 1,002,579 (R$ 953,492 at September 30, 2010) and are basically represented by legal losses of R$ 629,864 (R$ 936,094 at September 30, 2010) and provision for legal liabilities, tax and social security of R$ 289,610 (R$ 137,935 at September 30, 2010), which expected realization is dependent upon the progress of the lawsuit.

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

	12/31/2010		Realization / Reversal			Increase		09/30/2011		09/30/2011
Reflected in income and expense accounts		10,119,317		(2,279,551	)		2,178,962		10,018,728		9,435,007
Depreciation in excess – leasing		8,295,516		(1,770,416	)		1,361,321		7,886,421		8,327,047
Restatement of escrow deposits and contingent liabilities		804,109		(71,470	)		211,579		944,218		667,554
Adjustment to market value of securities and derivative financial instruments		340,340		(340,340	)		447,394		447,394		159,545
Provision for Pension Plan Benefits		458,093		-			122,560		580,653		-
Adjustments of operations carried out in futures settlement market		56,993		(32,881	)		-		24,112		9,493
Taxation of results abroad – capital gains		42,477		-			12,086		54,563		43,282
Other		121,789		(64,444	)		24,022		81,366		228,086
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		260,511		(25,898	)		-		234,613		321,397
Total		10,379,828		(2,305,450	)		2,178,962		10,253,340		9,756,404

At  ITAÚ UNIBANCO, the Provision for deferred income tax and social contributions totals R$ 3,689 (R$ 2,961 at September 30, 2010), basically represented by Restatement of escrow deposits and contingent liabilities.

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, 2011, 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
2011		6,688,412		935,880		7,624,292		25,630		(1,676,286	)		5,973,636
2012		4,792,826		2,033,228		6,826,054		319,816		(2,461,542	)		4,684,328
2013		4,343,629		1,445,942		5,789,571		274,575		(2,555,450	)		3,508,696
2014		2,285,355		471,436		2,756,791		193,833		(1,523,712	)		1,426,912
2015		2,098,696		33,473		2,132,169		-		(764,974	)		1,367,195
Over 2015		3,559,559		13,007		3,572,566		-		(1,271,376	)		2,301,190
Total		23,768,476		4,932,967		28,701,443		813,854		(10,253,340	)		19,261,957
Present value (*)		21,132,196		4,557,910		25,690,106		735,076		(9,083,862	)		17,341,320

(*) 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$ 1,168,093 is unrecorded (R$ 2,022,654 at September 30, 2010).

c) Tax and social security contributions

	9/30/2011		9/30/2010
Taxes and contributions on income payable		2,839,404		1,548,453
Taxes and contributions payable (*)		1,483,038		4,627,800
Provision for deferred income tax and social contribution (Note 14b II)		10,253,340		9,756,404
Legal liabilities – tax and social security		5,872,371		4,720,185
Total		20,448,153		20,652,842

(*) At June 30, 2011, the amounts subject to installment payment under the Program for Cash or Installment Payment of Federal Taxes, introduced by Law No. 11,941 of May 27, 2009 were settled.

At ITAÚ UNIBANCO HOLDING the balance of Tax and Social Security Contributions totals R$ 793,124 (R$ 416,146 at September 30, 2010) and is basically comprised of Legal Liabilities - Tax and Social Security of R$ 679,530 (R$ 412,191 at September 30, 2010) whose nature refers to PIS and COFINS – 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 takes into consideration the interest on capital paid and on the service provision, in addition to that levied on financial operation.

	9/30/2011		9/30/2010
Taxes paid or provided for		12,000,085		9,284,950
Taxes withheld and collected from third parties		8,374,448		5,712,084
Total		20,374,533		14,997,034

NOTE 15 – PERMANENT ASSETS

a)  Investments

I -   Change of investments

Companies		Balances at 12/31/2010		Amortization of goodwill			Dividends paid/provided for (1)			Equity in earnings of  subsidiaries and affiliates (2)		Adjustments in marketable securities of subsidiaries and affiliates and Other			Corporate restructuring			Balances at 09/30/2011		Balances at 09/30/2010		Equity in earnings of subsidiaries and affiliates from 01/01 to 09/30/2010
Domestic			61,007,900		(4,752	)		(10,438,175	)		6,739,193		(275,488	)		(4,019,157	)		53,009,521		60,026,155		6,060,203
Itaú Unibanco S.A.	(3a)(4a)(5a)(6)		45,678,429		(4,752	)		(4,942,306	)		4,348,156		(299,343	)		-			44,780,184		45,328,812		3,636,577
Banco ITAÚ BBA S.A.	(4b)(5b)(7a)(8)(10)		6,265,960		-			(2,284,436	)		1,163,397		41,105			1,339,614			6,525,640		5,665,158		693,914
Banco Itaucard S.A.	(4c)(5c)(9)		2,907,164		-			(2,662,115	)		673,937		1,426			-			920,412		3,062,497		1,253,200
Itaú Corretora de Valores S. A.	(9)		472,033		-			-			200,903		8			-			672,944		514,440		132,191
Itaú-BBA Participações S.A.	(10)		1,750,799		-			(549,318	)		265,146		(16,672	)		(1,339,614	)		110,341		1,552,434		185,216
Itauseg Participações S.A.	(11)		3,933,515		-			-			87,654		(2,012	)		(4,019,157	)		-		3,902,814		159,105
Foreign			2,022,024		(38,556	)		(22,563	)		384,880		7,251			157,750			2,510,786		2,004,444		118,971
Itaú Chile Holding, INC.	(3b)(7b)		1,686,391		(33,931	)		-			298,787		7,774			157,750			2,116,771		1,675,592		91,780
Banco Itaú Uruguay S.A.	(3c)		225,982		(3,534	)		-			43,743		(523	)		-			265,668		227,021		12,144
OCA S.A.	(3d)		75,184		(939	)		(22,563	)		36,456		(1	)		-			88,137		67,627		14,612
OCA Casa Financiera S.A.	(3e)		32,168		(136	)		-			5,591		-			-			37,623		31,926		523
ACO Ltda.	(3f)		2,299		(16	)		-			303		1			-			2,587		2,278		(88	)
GRAND TOTAL			63,029,924		(43,308	)		(10,460,738	)		7,124,073		(268,237	)		(3,861,407	)		55,520,307		62,030,599		6,179,174

(1) Dividends approved and not paid are recorded as Dividends receivable;

(2) At September 30, 2011, includes foreign exchange variation in the amount of R$ 238,137;

(3) At September 30, 2011, includes goodwill in the amounts of: (a) R$ 44,878; (b) R$ 237,518; (c) R$ 24,742; (d) R$ 6,574; (e) R$ 955; (f) R$ 112;

(4) At September 30, 2011, includes Adjustments of unrealized results in the results of operations and in investments, respectively, in the amounts of: (a) R$ 1,415 and R$ (6,911); (b) R$ 88 and R$ 0; (c) R$ 38,065 and R$ (62,305);

(5) At September 30, 2011, includes adjustments to standardize procedures under the scope of the investor in the results of operations and investments, in the amounts of: (a) R$ (9,204) and R$ (2,173); (b) R$ 10,294 and R$ (66,875); and

(c) R$ (8,569) and R$ (4,896);

(6) At September 30, 2011, includes installment of dividends provided for in the amount of R$ 49,145;

(7) At September 30, 2011, Equity in earnings includes adjustment of securities arising from variation in interest during the period in the amount of: (a) R$ (20,740) and (b) R$ 4;

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

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

(10) At September 30, 2011, the reduction of capital of Itaú BBA Participações S.A. was determined, delivering the respective investment in Banco Itaú BBA S.A. to the parent company  ITAÚ UNIBANCO;

(11) Investment sold to Banco Itaucard S.A. on April 11, 2011.

					Net income		Number of shares/quotas owned by ITAÚ UNIBANCO						Equity share in		Equity share in Capital
Companies	Capital		Stockholders’ equity		for the period		Common		Preferred		Quotas		voting capital (%)		(%)
Domestic
Itaú Unibanco S.A.		39,676,320		44,695,245		4,355,945		2,081,169,523		2,014,258,290		-		100.00		100.00
Banco ITAÚ BBA S.A.		4,224,086		6,592,515		1,415,621		5,284,526		5,284,526		-		99.99		99.99
Banco Itaucard S.A.		15,553,776		17,068,804		712,691		3,592,433,657		1,277,933,118		-		1.51		2.04
Itaú Corretora de Valores S. A.		1,046,841		1,830,620		222,369		-		811,503		-		-		1.94
Itaú-BBA Participações S.A.		25,196		110,341		265,146		12,953		25,906		-		100.00		100.00
Foreign														-		-
Itaú Chile Holding, INC.		518,228		1,879,253		97,256		100		-		-		100.00		100.00
Banco Itaú Uruguay S.A.		153,926		240,926		20,307		1,639,430,739		-		-		100.00		100.00
OCA S.A.		14,104		81,563		27,175		1,502,176,740		-		-		100.00		100.00
OCA Casa Financiera S.A.		18,201		36,668		1,953		646		-		-		100.00		100.00
ACO Ltda.		12		2,494		48		-		-		131		99.24		99.24

II - Composition of investments

	09/30/2011			09/30/2010
Investment in affiliates		1,797,668			2,209,888
Domestic		1,478,864			1,483,937
Serasa S.A.		268,122			244,817
Porto Seguro Itaú Unibanco Participações S.A.		1,172,525			1,079,458
Tecnologia Bancária S.A.		38,135			41,898
Other		82			117,764
Foreign		318,804			725,951
Banco BPI, S.A. (BPI) (*)		317,775			725,951
Other		1,029			-
Other investments		1,295,877			1,309,729
Investments through tax incentives		160,575			159,808
Equity securities		11,253			9,579
Shares and quotas		375,449			380,374
Interest in Instituto de Resseguros do Brasil - IRB		227,170			227,170
Other		521,430			532,798
(Allowance for losses)		(195,584	)		(174,950	)
Total		2,897,961			3,344,667

(*) At September 30, 2011, such investment was adjusted in the amount of R$ 353,477 to recognize its market value based on the share price.

III- Equity in earnings of affiliates and other investments

	01/01 to 09/30/2011			01/01 to 09/30/2010
Investment in affiliates - Domestic		187,441			188,707
Investment in affiliates – Foreign (Note 15a II)		(318,660	)		63,948
Dividends received from Other investments		104,840			74,898
Other		(10,287	)		(6,546	)
Total		(36,666	)		321,007

b) Fixed assets, goodwill and intangible assets

I) Fixed assets

					CHANGES
	Annual depreciation / amortization rates (%)	Balance at 01/01/2011			Acquisitions		Depreciation and amortization expenses			Impairment		Disposals			Exchange variation			Other			Balance at 09/30/2011			Balance at 09/30/2010
REAL ESTATE IN USE
REAL ESTATE IN USE (1)(2)			1,769,522			30,709		(72,216	)		-		(51,556	)		13,465			19,020			1,708,944			1,779,733
Land			971,170			372		-			-		(13,273	)		493			3,604			962,366			972,407
Buildings			798,352			30,337		(72,216	)		-		(38,283	)		12,972			15,416			746,578			807,326
Cost			2,320,571			30,337		-			-		(64,773	)		10,141			13,614			2,309,890			2,306,391
Accumulated depreciation	4		(1,522,219	)		-		(72,216	)		-		26,490			2,831			1,802			(1,563,312	)		(1,499,065	)
OTHER FIXED ASSETS (2)			2,954,269			1,095,397		(800,419	)		-		(54,907	)		(2,240	)		19,643			3,211,743			2,640,442
Improvements			625,257			127,443		(174,350	)		-		(65	)		1,158			18,918			598,361			563,934
Cost			1,108,895			127,443		-			-		(94,193	)		5,057			17,907			1,165,109			1,029,162
Accumulated depreciation	10		(483,638	)		-		(174,350	)		-		94,128			(3,899	)		1,011			(566,748	)		(465,228	)
Installations			266,520			107,404		(37,580	)		-		(690	)		5,323			(814	)		340,163			323,914
Cost			769,685			107,404		-			-		(11,904	)		3,012			9,988			878,185			839,577
Accumulated depreciation	10 to 20		(503,165	)		-		(37,580	)		-		11,214			2,311			(10,802	)		(538,022	)		(515,663	)
Furniture and equipment			428,408			139,632		(47,318	)		-		(14,554	)		(22,096	)		(10,013	)		474,059			365,015
Cost			843,615			139,632		-			-		(33,965	)		(10,705	)		(10,440	)		928,137			737,823
Accumulated depreciation	10 to 20		(415,207	)		-		(47,318	)		-		19,411			(11,391	)		427			(454,078	)		(372,808	)
EDP systems (3)			1,404,459			663,498		(501,946	)		-		(35,239	)		13,337			11,747			1,555,856			1,169,315
Cost			4,746,283			663,498		-			-		(393,605	)		24,821			(1,853	)		5,039,144			4,417,749
Accumulated depreciation	20 to 50		(3,341,824	)		-		(501,946	)		-		358,366			(11,484	)		13,600			(3,483,288	)		(3,248,434	)
Other (communication, security and transportation)			229,625			57,420		(39,225	)		-		(4,359	)		38			(195	)		243,304			218,264
Cost			530,420			57,420		-			-		(17,610	)		209			(394	)		570,045			535,887
Accumulated depreciation	10 to 20		(300,795	)		-		(39,225	)		-		13,251			(171	)		199			(326,741	)		(317,623	)
TOTAL REAL ESTATE IN USE			4,723,791			1,126,106		(872,635	)		-		(106,463	)		11,225			38,663			4,920,687			4,420,175
Cost			11,290,639			1,126,106		-			-		(629,323	)		33,028			32,426			11,852,876			10,838,996
Accumulated depreciation			(6,566,848	)		-		(872,635	)		-		522,860			(21,803	)		6,237			(6,932,189	)		(6,418,821	)

(1) Inclui valores arrolados em recursos voluntários (Nota 12b);

(2) Fixed assets under construction in the amount of R$ 86,055 thousand, totaling R$ 33,807 relating to Real estate in use, totaling R$ 13,470 relating to Improvements and totaling R$ 41,778 relating to Equipment;

(3) Includes lease contracts, mainly related to data processing equipment, which are accounted for as finance lease. Pursuant to this method, assets and liabilities are accounted for in the financial statements, and assets are depreciated consistently with the depreciation criteria we usually adopt for own assets. These contracts amount to R$ 266,417 thousand at September 30, 2011.

II) Goodwill

			CHANGES
	Balance at 01/01/2011		Acquisitions		Other			Balance at 09/30/2011		Balance at 09/30/2010
GOODWILL (Notes 2a, b and 4k) (*)		67,617		52,169		(24,699	)		95,087		74,467

(*) At August 1, 2011, ITAÚ UNIBANCO HOLDING acquired 50% plus 1 share of capital of MCC Securities Inc. (Cayman Islands) for R$ 50,748, of which R$ 48,415 for the equity interest and R$ 2,333 for the exclusivity right to act on the sale of MCC Securities’ business. The transaction gave rise to a goodwill of R$ 52,169, and this interest was proportionally consolidated in the financial statements of ITAÚ UNIBANCO HOLDING.

III) Intangible assets

					CHANGES
	Annual depreciation / amortization rates (%) (1)	Balance at 01/01/2011			Acquisitions		Depreciation and amortization expenses (2)			Impairment (5)			Disposals			Exchange variation			Other			Balance at 09/30/2011			Balance at 09/30/2010
INTANGIBLE ASSETS
RIGHTS FOR ACQUISITION OF PAYROLL (3)			1,129,854			208,117		(466,357	)		(12,154	)		(4,821	)		-			(5,921	)		848,718			1,237,632
Cost			2,414,697			208,117		-			(12,154	)		(130,451	)		-			(10,318	)		2,469,891			2,459,345
Accumulated amortization (4)			(1,284,843	)		-		(466,357	)		-			125,630			-			4,397			(1,621,173	)		(1,221,713	)
OTHER INTANGIBLE ASSETS			1,804,004			907,858		(278,318	)		(4,225	)		(25,517	)		17,893			15,902			2,437,597			1,671,008
Association for the promotion and offer of financial products and services			1,115,272			31,129		(83,719	)		(4,225	)		(25,517	)		1,196			2,840			1,036,976			1,012,434
Cost			1,171,228			31,129		-			(4,225	)		(76,318	)		1,376			9,768			1,132,958			1,054,942
Accumulated amortization (4)			(55,956	)		-		(83,719	)		-			50,801			(180	)		(6,928	)		(95,982	)		(42,508	)
Expenditures on acquisition of software			532,148			576,729		(152,269	)		-			-			2,324			(11,637	)		947,295			492,748
Cost			1,014,958			576,729		-			-			(109,105	)		7,332			(35,783	)		1,454,131			966,678
Accumulated amortization	20		(482,810	)		-		(152,269	)		-			109,105			(5,008	)		24,146			(506,836	)		(473,930	)
Other intangible assets			156,584			300,000		(42,330	)		-			-			14,373			24,699			453,326			165,826
Cost			270,790			300,000		-			-			(5,789	)		20,057			24,699			609,757			275,986
Accumulated amortization	10 to 20		(114,206	)		-		(42,330	)		-			5,789			(5,684	)		-			(156,431	)		(110,160	)
TOTAL INTANGIBLE ASSETS			2,933,858			1,115,975		(744,675	)		(16,379	)		(30,338	)		17,893			9,981			3,286,315			2,908,641
Cost			4,871,673			1,115,975		-			(16,379	)		(321,663	)		28,765			(11,634	)		5,666,737			4,756,951
Accumulated amortization			(1,937,815	)		-		(744,675	)		-			291,325			(10,872	)		21,615			(2,380,422	)		(1,848,310	)

(1) All intangible assets have defined useful lives;

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

(3) 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;

(4) The amortization term is according to agreement term;

(5) Pursuant to BACEN Resolution No. 3,566, of May 29, 2001 (Note 13i);

NOTE 16 – STOCKHOLDERS’ EQUITY

a) Shares

At the Extraordinary Stockholders' Meeting held on April 25, 2011 homologated by the Brazilian Central Bank on August 22, 2011, the stockholders approved a 1-to-100 reverse stock split and simultaneously a 100-to-1 stock split. Said operation required cancellation of 75 common shares and 44 preferred shares, all of which are book-entry shares of Company’s own issue and existing in treasury, with no capital reduction.

Capital comprises 4,570,936,100 book-entry shares with no par value, of which 2,289,286,400 are common and 2,281,649,700 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 September 30, 2010), of which R$ 31,660,339 (R$ 31,376,430 at September 30, 2010) refers to stockholders domiciled in the country and R$ 13,339,661 (R$ 13,623,570 at September 30, 2010) 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
Residents in Brazil at 12/31/2010		2,286,135,621			918,287,035			3,204,422,656
Residents abroad at 12/31/2010		3,150,854			1,363,362,709			1,366,513,563
Shares of capital stock at 12/31/2010		2,289,286,475			2,281,649,744			4,570,936,219
Cancellation of Shares – ESM of 04/25/2011 – Approved at 08/22/2011		(75	)		(44	)		(119	)
Shares of capital stock at 09/30/2011		2,289,286,400			2,281,649,700			4,570,936,100
Residents in Brazil at 09/30/2011		2,284,100,928			931,840,984			3,215,941,912
Residents abroad at 09/30/2011		5,185,472			1,349,808,716			1,354,994,188
Treasury shares at 12/31/2010 (*)		2,202			26,566,015			26,568,217			(628,577	)
Purchase of shares		-			40,970,900			40,970,900			(1,302,638	)
Exercised options - Granting of stock options – Simple and Bonus options		-			(4,582,258	)		(4,582,258	)		87,241
Disposals – stock option plan		-			(4,263,226	)		(4,263,226	)		139,837
(-) Cancellation of Shares – ESM of 04/25/2011		(75	)		(44	)		(119	)		-
Treasury shares at 09/30/2011 (*)		2,127			58,691,387			58,693,514			(1,704,137	)
Outstanding shares at 09/30/2011		2,289,284,273			2,222,958,313			4,512,242,586
Outstanding shares at 09/30/2010		2,289,284,273			2,251,178,303			4,540,462,576

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

We detail below the costs of shares purchased in the period, as well as the average cost of treasury shares and their market price at September 30, 2011:

Cost/Market value	Common		Preferred
Minimum		-		26.20
Weighted average		-		31.79
Maximum		-		37.40
Treasury shares
Average cost		9.98		29.03
Market value		25.50		29.05

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	8,883,881
Adjustments:
(-) Legal reserve	(444,194	)
Dividend calculation basis	8,439,687
Mandatory minimum dividends paid/provided for	2,109,922		25.0	%

II – Payments/Provision for interest on capital and dividends

	Gross		WTF			Net
Paid / Prepaid		1,658,090		(183,313	)		1,474,777
Dividends - 08 monthly installments of R$ 0.012 per share paid from February to September 2011		436,001		-			436,001
Interest on capital - R$ 0.2706  per share, paid on August 22, 2011		1,222,089		(183,313	)		1,038,776
Provided for (*)		737,676		(102,531	)		635,145
Dividends - 01 monthly installment of R$ 0.012 per share, paid on October 1, 2011		54,134		-			54,134
Interest on capital - R$ 0.1515 per share		683,542		(102,531	)		581,011
Total from 01/01 to 09/30/2011 - R$ 0.4668 net per share		2,395,766		(285,844	)		2,109,922
Total from 01/01 to 09/30/2010 - R$ 0.6363 net per share		3,310,191		(423,112	)		2,887,079

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

c) Capital and revenue reserves

	09/30/2011		09/30/2010
CAPITAL RESERVES		640,515		578,390
Premium on subscription of shares		283,512		283,512
Granted options recognized – Law No. 11,638		355,898		293,773
Reserves from tax incentives and restatement of equity securities and other		1,105		1,105
REVENUE RESERVES		32,230,408		22,813,617
Legal		3,697,710		3,100,854
Statutory:		28,532,698		19,354,832
Dividends equalization (1)		8,540,903		6,083,105
Working capital increase (2)		8,687,344		5,369,356
Increase in capital of investees (3)		11,304,451		7,902,371
Unrealized profits (4)		-		357,931

(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 2b)

	Net income				Stockholders’ equity
	01/01 to 09/30/2011		01/01 to 09/30/2010		09/30/2011			09/30/2010
ITAÚ UNIBANCO HOLDING		8,883,881		7,218,769		75,915,957			67,827,873
Amortization of goodwill		2,056,000		2,212,054		(7,710,244	)		(10,602,801	)
Unrealized income (loss) and other		-		2,338		-			-
ITAÚ UNIBANCO HOLDING CONSOLIDATED		10,939,881		9,433,161		68,205,713			57,225,072

e) Minority interest in subsidiaries

	Stockholders’ equity				Results
	09/30/2011		09/30/2010		01/01 to 09/30/2011			01/01 to 09/30/2010
Itau Bank, Ltd. (1)		728,949		665,974		-			-
Redecard S.A.		581,920		538,693		(473,593	)		(525,423	)
Biu Participações S.A.		116,205		99,472		(24,696	)		(15,600	)
Itaú Gestão de Ativos S.A.		62,110		59,720		(1,999	)		317
Biogeração de Energia S.A.		22,933		27,369		912			464
Investimentos Bemge S.A.		18,411		17,201		(926	)		(762	)
Unibanco Participações Societárias S.A. (2)		-		1,186,183		(36,476	)		(72,967	)
Investment funds		462,718		752,374		(37,715	)		(44,570	)
Other		10,946		87,165		(4,159	)		(3,735	)
Total		2,004,192		3,434,151		(578,652	)		(662,276	)

(1) 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..

(2) At July 28, 2011, ITAU UNIBANCO HOLDING acquired the minority interest in the subsidiary Unibanco Participações Societárias for R$ 1,226,847.

f) Stock Option Plan

I – Purpose and Guidelines of the Plan

The Group has a stock option plan for its executives. This program aims at involving the management members in the medium and long-term corporate development process, by granting simple stock options or partner options, personal, not pledgeable or transferable, which entitle to the subscription of one authorized capital share or, at the discretion of the management, one treasury share which has been acquired for replacement purposes.

Such options may only be granted in years in which there are sufficient profits to enable the distribution of  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 quantity, the beneficiaries, the type of option, the life of the option under each series, and the vesting period for exercising the options and the period the acquired shares are unavailable due to the exercise of the options. The executive officers and Board of Directors members of ITAÚ UNIBANCO HOLDING and of its subsidiaries and employees may participate in this program, based on assessment of potential and performance.

Currently, ITAÚ UNIBANCO HOLDING settles the benefits under this PLAN by delivering its own shares, which are held in treasury until the effective exercise of the options by the beneficiaries.

II - Characteristics of the Programs

II.I – Simple Options

Prior Programs

Before the merger, Itaú and Unibanco each had Stock Option Plans (Prior Programs). The eligible beneficiaries of the program were granted simple options, depending upon the individual employee performance. The exercise price is 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; alternatively, subject to the 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 either on the IGP-M or IPCA, in its absence, based on the index determined by the Committee. Options are no longer granted under this model.

Post-Merger Program

The eligible beneficiaries of the program are granted simple options, dependent upon the individual employee performance. The exercise price is calculated based on the average prices of preferred shares at the BM&FBOVESPA over the period of at least one (1) and at the most three (3) months related to the last exercise months to which the options refer. The exercise price is adjusted based on the IGPM or, in its absence, based on the index determined by the committee.

The vesting period is from one (1) to seven (7) years, counted from the issue date.

II.II – Partners Plan

Executives selected to participate in the program may invest a percentage of their bonus to acquire shares or they have the right to receive shares (“Share-Based Instrument”). Title to the shares acquired, as well as the share-based instruments, should be held by the executives for a period of 3 to 5 years and they are subject to market fluctuation. At the time they acquire own shares and/or share-based instruments, Partner Options are granted in accordance with the classification of executives. Vesting period of Partner Options or share-based instruments is from 1 to 7 years. Share-based instruments and Partner Options are converted into own shares of ITAÚ UNIBANCO HOLDING in the ratio of one share for each instrument after the respective vesting period, with no payment of amounts in legal tender during the exercise.

The acquisition price of own shares and Share-Based Instruments is established every six months and it is equivalent to the average preferred share quotation at the BM&FBOVESPA trading sessions in the 30 days prior to the determination of said price.

Title to the shares received after the vesting period of the Partner Options should be held, without any liens or encumbrances, for periods from 5 to 8 years, counted from the date of acquisition of own shares.

Summary of Changes in the Plan

					Restated		Exercised options				Number of shares
Granting		Vesting period	Exercise		exercise		Weighted average		Weighted average		Prior balance								To be exercised		To be exercised
No.	Date	until	until		price (R$1)		exercise price		market price		12/31/2010		Granted		Exercised		Cancelled		at 09/30/2011		at 09/30/2010
Simple Options
10th	02/16/2004	12/31/2008	12/31/2011			13.22		12.89		38.60		712,942		-		273,943		-		438,999		796,817
27th	02/01/2005	05/05/2009	01/31/2011			16.52		23.79		37.67		12,650		-		12,650		-		-		12,650
11th	02/21/2005	12/31/2009	12/31/2012			18.60		18.32		35.10		2,877,600		-		1,682,625		27,500		1,167,475		3,727,045
11th	08/01/2005	12/31/2009	12/31/2012			18.60		18.32		35.10		27,500		-		27,500		-		-		27,500
11th	08/06/2007	12/31/2009	12/31/2012			18.60		-		-		11,357		-		-		-		11,357		11,357
27th	02/01/2005	02/01/2010	01/31/2011			16.52		23.79		37.67		16,389		-		16,389		-		-		27,521
34th	03/21/2007	03/21/2010	03/20/2011			35.94		-		-		75,901		-		-		75,901		-		75,901
35th	03/22/2007	03/22/2010	03/21/2011			35.31		-		-		29,518		-		-		29,518		-		29,518
30th	07/04/2006	07/04/2010	07/03/2011			28.48		28.45		36.48		52,710		-		52,710		-		-		52,710
29th	09/19/2005	09/19/2010	09/18/2011			21.59		21.30		38.45		12,650		-		12,650		-		-		12,650
12th	02/21/2006	12/31/2010	12/31/2013			27.68		27.27		36.51		8,025,250		-		1,076,225		60,500		6,888,525		8,773,284
12th	08/06/2007	12/31/2010	12/31/2013			27.68		-		-		15,867		-		-		-		15,867		15,867
16th	08/10/2009	12/31/2010	12/31/2014			31.47		-		-		874,167		-		-		-		874,167		874,167
34th	03/21/2007	03/21/2011	03/20/2012			35.94		-		-		75,901		-		-		-		75,901		75,901
35th	03/22/2007	03/22/2011	03/21/2012			35.89		-		-		29,518		-		-		-		29,518		29,518
36th	05/14/2008	05/14/2011	05/13/2012			44.66		-		-		25,301		-		-		-		25,301		25,301
30th	07/04/2006	07/04/2011	07/03/2012			28.48		-		-		52,707		-		-		-		52,707		52,707
33rd	08/30/2006	08/30/2011	08/29/2012			31.54		-		-		21,083		-		-		-		21,083		21,083
Total options to be exercised								20.57		35.18		12,949,011		-		3,154,692		193,419		9,600,900		14,641,497
13th	02/14/2007	12/31/2011	12/31/2014			35.24		34.82		36.93		8,546,975		-		507,375		182,875		7,856,725		8,980,675
13th	08/06/2007	12/31/2011	12/31/2014			35.24		-		-		30,649		-		-		-		30,649		30,649
13th	10/28/2009	12/31/2011	12/31/2014			35.24		-		-		45,954		-		-		-		45,954		45,954
34th	03/21/2007	03/21/2012	03/20/2013			35.94		-		-		75,901		-		-		-		75,901		75,901
35th	03/22/2007	03/22/2012	03/21/2013			35.89		-		-		29,514		-		-		-		29,514		29,514
36th	05/14/2008	05/14/2012	05/13/2013			44.66		-		-		25,300		-		-		-		25,300		25,300
17th	09/23/2009	09/23/2012	12/31/2014			36.36		-		-		29,551		-		-		-		29,551		29,551
14th	02/11/2008	12/31/2012	12/31/2015			40.63		-		-		10,846,487		-		-		1,513,321		9,333,166		11,485,485
14th	05/05/2008	12/31/2012	12/31/2015			40.63		-		-		20,625		-		-		-		20,625		20,625
14th	10/28/2009	12/31/2012	12/31/2015			40.63		-		-		45,954		-		-		-		45,954		45,954
36th	05/14/2008	05/14/2013	05/13/2014			44.66		-		-		25,300		-		-		-		25,300		25,300
15th	03/03/2009	12/31/2013	12/31/2016			26.57		26.49		35.12		15,067,330		-		117,750		147,620		14,801,960		16,470,760
15th	10/28/2009	12/31/2013	12/31/2016			26.57		-		-		45,954		-		-		-		45,954		45,954
18th	04/17/2010	12/31/2014	12/31/2017			43.16		-		-		6,126,609		-		-		74,386		6,052,223		6,219,312
18th	05/11/2010	12/31/2014	12/31/2017			43.16		-		-		1,206,340		-		-		42,421		1,163,919		1,241,385
37th	04/19/2011	12/31/2015	12/31/2018			42.16		-		-		-		9,810,523		-		-		9,810,523		-
Total options outstanding								33.25		36.59		42,168,443		9,810,523		625,125		1,960,623		49,393,218		44,772,319
Total simple options								22.67		35.41		55,117,454		9,810,523		3,779,817		2,154,042		58,994,118		59,413,816
Partner options
04th	03/03/2008	03/03/2011		-		-		-		37.22		416,487		-		376,581		-		39,906		416,487
05th	09/03/2008	09/03/2011		-		-		-		28.80		490,624		-		425,860		12,729		52,035		493,370
Total options to be exercised										37.22		907,111		-		802,441		12,729		91,941		909,857
06th	03/06/2009	03/06/2012		-		-		-		-		740,362		-		-		21,339		719,023		746,269
07th	06/19/2009	03/06/2012		-		-		-		-		79,446		-		-		-		79,446		79,446
01st	09/03/2007	09/03/2012		-		-		-		-		329,181		-		-		19,673		309,508		334,907
03rd	02/29/2008	09/03/2012		-		-		-		-		33,474		-		-		-		33,474		33,474
04th	03/03/2008	03/03/2013		-		-		-		-		415,930		-		-		27,498		388,432		415,930
08th	08/17/2010	08/16/2013		-		-		-		-		376,916		-		-		37,530		339,386		384,961
09th	08/30/2010	08/16/2013		-		-		-		-		359,991		-		-		30,280		329,711		359,991
11th	09/30/2010	08/16/2013		-		-		-		-		17,717		-		-		-		17,717		17,717
05th	09/03/2008	09/03/2013		-		-		-		-		490,126		-		-		40,684		449,442		492,872
10th	09/30/2010	09/29/2013		-		-		-		-		1,940,987		-		-		79,810		1,861,177		1,940,987
12th	02/28/2011	02/28/2014		-		-		-		-		-		1,585,541		-		27,511		1,558,030		-
06th	03/06/2009	03/06/2014		-		-		-		-		739,608		-		-		35,004		704,604		745,515
07th	06/19/2009	03/06/2014		-		-		-		-		79,445		-		-		-		79,445		79,445
13th	08/19/2011	08/19/2014		-		-		-		-		-		706,397		-		-		706,397
08th	08/17/2010	08/16/2015		-		-		-		-		376,876		-		-		38,574		338,302		384,920
09th	08/30/2010	08/16/2015		-		-		-		-		359,962		-		-		30,810		329,152		359,962
11th	09/30/2010	08/16/2015		-		-		-		-		17,712		-		-		-		17,712		17,712
10th	09/30/2010	09/29/2015		-		-		-		-		1,940,951		-		-		85,007		1,855,944		1,940,951
12th	02/28/2011	02/28/2016		-		-		-		-		-		1,585,497		-		29,332		1,556,165		-
13th	08/19/2011	08/19/2016		-		-		-		-		-		706,338		-		-		706,338		-
Total options outstanding								-		-		8,298,684		4,583,773		-		503,052		12,379,405		8,335,059
Total partner options								-		37.22		9,205,795		4,583,773		802,441		515,781		12,471,346		9,244,916
TOTAL SIMPLE/PARTNER OPTIONS								22.67		32.27		64,323,249		14,394,296		4,582,258		2,669,823		71,465,464		68,658,732

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:

Exercise price: for the option exercise price, the exercise price previously agreed upon at the option issue is adopted, adjusted by the IGP-M variation;

Price of the Underlying Asset: the share price of Itaú Unibanco Holding (ITUB4) used for calculation is the closing price at BOVESPA on the calculation base date;

Expected dividends: the average annual return rate for the last three years of the dividends paid, plus interest on capital of the ITUB4 share;

Risk-free interest rate: the applied risk-free rate is the IGP-M coupon rate at the expiration date of the option plan;

Expected volatility: calculated based on the standard deviation from the history of the last 84 monthly returns of closing prices of the ITUB4 share, released by BOVESPA, adjusted by the IGP-M variation.

Granting		Vesting	Exercise		Price of the underlying		Fair		Expected			Risk-free			Expected
No.	Date	period	period until		asset		value		dividends			interest rate			volatility
Simple Options
37th	4/19/2011	12/31/2015	12/31/2018			37.26		11.02		2.97	%		5.80	%		30.53	%
Bonus Options (*)
12th	2/28/2011	2/28/2014		-		37.00		33.85		2.97	%		-			-
12th	2/28/2011	2/28/2016		-		37.00		31.83		2.97	%		-			-
13th	8/19/2011	8/19/2014				26.65		24.39		2.97	%		-			-
13th	8/19/2011	8/19/2016				26.65		22.98		2.97	%		-			-

(*) The fair value of bonus option is measured based on the fair value of Itaú Unibanco share at the granting date.

IV - Accounting Effects Arising from 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 of Income for the period from January 1 to September 30, 2011 was R$ 121,902 (R$ 82,494 from January 1 to September 30, 2010), as contra-entry to Capital Reserve – Granted Options Recognized – Law No. 11,638 (Note 16 c).

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

Amount received for the sale of shares – exercised options	233,269
(-) Cost of treasury shares sold	(227,078	)
(+) Write-off of cost recognized of exercised options	76,121
Effect on sale (*)	82,312

(*) Recorded in revenue reserves.

NOTE 17 – RELATED PARTIES

a) Transactions between related parties are disclosed in compliance with CVM Resolution No. 642, of October 7, 2010, 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.

· Investments in Porto Seguro Itaú Unibanco Participações S.A..

Additionally, there are operations with jointly controlled entities, particularly Banco Investcred Unibanco S.A., Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento, Luizacred S.A. Soc. Créd. Financiamento Investimento, FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento, FIC Promotora de Vendas Ltda. and Ponto Frio Leasing S.A. Arrendamento Mercantil.

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)
	09/30/2011			09/30/2010			01/01 to 09/30/2011			01/01 to 09/30/2010			09/30/2011			09/30/2010			01/01 to 09/30/2011			01/01 to 09/30/2010
Interbank investments		25,197,755			9,926,802			1,632,733			661,261			1,705,356			1,238,753			141,921			78,901
Itaú Unibanco S.A.		25,197,755			9,926,802			1,632,733			661,261			-			-			-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			531,189			383,919			40,426			24,805
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			246,103			190,934			24,717			12,740
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-			928,064			647,740			76,778			41,327
Other		-			-			-			-			-			16,160			-			29
Derivative financial instruments		-			(2,596	)		(183	)		(1,388	)		-			-			-			-
Itaú Unibanco S.A.		-			(2,596	)		(183	)		(1,388	)		-			-			-			-
Deposits		(4,705,826	)		(3,260,392	)		(319,318	)		(186,168	)		(67,686	)		(117,101	)		-			-
Itaú Unibanco S.A.		(4,705,826	)		(3,260,392	)		(319,318	)		(186,168	)		-			-			-			-
Duratex S.A.		-			-			-			-			(55,604	)		(10,624	)		-			-
Elekeiroz S.A.		-			-			-			-			(8,818	)		(13,120	)		-			-
Itautec S.A.		-			-			-			-			(2,084	)		(1,924	)		-			-
Porto Seguro S.A.		-			-			-			-			(625	)		(293	)		-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			(244	)		(303	)		-			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			(296	)		(158	)		-			-
ITH Zux Cayman Company Ltd.		-			-			-			-			-			(39,481	)		-			-
Itaúsa Empreendimentos S.A.		-			-			-			-			-			(51,198	)		-			-
Banco Investcred Unibanco S.A.		-			-			-			-			(15	)		-			-			-
Repurchase agreements		-			-			-			-			(194,441	)		(114,007	)		(10,953	)		(4,600	)
Itaúsa Empreendimentos S.A.		-			-			-			-			(58,357	)		(51,198	)		-			-
Duratex S.A.		-			-			-			-			(24,544	)		(8,931	)		(1,024	)		(625	)
Elekeiroz S.A.		-			-			-			-			-			-			(144	)		(694	)
Itautec S.A.		-			-			-			-			(13,763	)		(9,100	)		-			-
FIC Promotora de Venda Ltda.		-			-			-			-			(10,239	)		(6,100	)		(604	)		(293	)
Facilita Promotora S.A.		-			-			-			-			(7,918	)		(5,613	)		(513	)		(319	)
Olimpia Promoção e Serviços S.A.		-			-			-			-			(3,756	)		(21,726	)		(372	)		(1,629	)
Banco Investcred Unibanco S.A.		-			-			-			-			(13,782	)		(11,339	)		(1,034	)		(814	)
Maxfácil Participações S.A		-			-			-			-			(62,082	)		-			(4,992	)		-
Other		-			-			-			-			-			-			(2,270	)		(226	)
Amounts receivable from (payable to) related companies		(3,984	)		(342	)		-			(985	)		(111,261	)		(58,058	)		-			-
Itaú Unibanco S.A.		(3,557	)		-			-			-			-			-			-			-
Itaú Corretora de Valores S. A.		(427	)		(342	)		-			-			-			-			-			-
Itaúsa Investimentos Itaú S.A.		-			-			-			-			58			60,939			-			-
Porto Seguro S.A.		-			-			-			-			7,400			7,013			-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			(539	)		631			-			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			(1,063	)		(1,372	)		-			-
Olimpia Promoção e Serviços S.A.		-			-			-			-			(144	)		(151	)		-			-
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-			(3,710	)		(11,815	)		-			-
Fundação Itaubanco		-			-			-			-			1,176			162			-			-
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			275			389			-			-
Caixa de Prev.dos Func. do Banco Beg - PREBEG		-			-			-			-			(9,042	)		4			-			-
Fundação BEMGEPREV		-			-			-			-			(3,267	)		(13,472	)		-			-
UBB Prev Previdência Complementar		-			-			-			-			(19,577	)		(15,973	)		-			-
Fundação Banorte Manuel Baptista da Silva de Seguridade Social		-			-			-			-			(82,841	)		(84,984	)		-			-
Other		-			-			-			(985	)		13			571			-			-
Banking service fees (expenses)		-			-			(3,588	)		(3,467	)		-			-			(104,221	)		156,842
Fundação Itaubanco		-			-			-			-			-			-			-			2,015
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			-			2,076
UBB Prev Previdência Complementar		-			-			-			-			-			-			-			2,967
Itaúsa Investimentos S.A.		-			-			-			-			-			-			(7,924	)		133,495
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-			-			-			(79,774	)		1,464
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-			-			-			(32,725	)		1,103
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-			-			-			36,000			-
Porto Seguro S.A.		-			-			-			-			-			-			(18,488	)		11,390
Other		-			-			(3,588	)		(3,467	)		-			-			(1,310	)		2,332
Rent revenues (expenses)		-			-			(160	)		(341	)		-			-			(27,077	)		(23,604	)
Fundação Itaubanco		-			-			-			-			-			-			(19,771	)		(15,898	)
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-			-			-			(6,347	)		(4,266	)
Other		-			-			(160	)		(341	)		-			-			(959	)		(3,440	)
Donation expenses		-			-			-			-			-			-			(47,295	)		(37,511	)
Instituto Itaú Cultural		-			-			-			-			-			-			(43,000	)		(36,917	)
Fundação Itaú Social		-			-			-			-			-			-			(280	)		(194	)
Associação Clube "A"		-			-			-			-			-			-			-			(400	)
Instituto Unibanco de Cinema		-			-			-			-			-			-			(4,015	)		-
Data processing expenses		-			-			-			-			-			-			(232,621	)		(212,112	)
Itautec S.A.		-			-			-			-			-			-			(232,621	)		(212,112	)
Non-operating income		-			-			-			-			-			-			48,088			-
Itaúsa Investimentos S.A.		-			-			-			-			-			-			48,088			-

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 Itaú Unibanco, recorded in Other Administrative Expenses, the amount of R$ 6,147 (R$ 13,943 from 01/01 to 09/30/2010) in view of the use of common structure.

In accordance with the rules in effect, the financial institutions cannot grant loans or advances to the following:

a) any individual or company that controls the Institution or any entity under common control, or to any officer, director, fiscal council member or direct relative of such individuals;

b) any entity controlled by the Institution; or

c) any entity of which the bank directly or indirectly holds at least 10% of capital stock.

Therefore, no loans or advances are made to any subsidiaries, executive officers, Board of Directors members or their relatives.

Itaú Unibanco Holding made regular donations to Fundação Itaú Social, a philanthropic foundation which objectives are: to create "Programa Itaú Social", aimed at coordinating activities that are of the community’s interest, support and develop social, scientific and cultural projects, mainly in the elementary education and health areas; support projects or initiatives in progress, maintained or sponsored by entities qualified to work, according to "Programa Itaú Social". In addition, Itaú Unibanco is the founding partner and sponsor of Instituto Itaú Cultural - IIC, an entity which objective is to promote and preserve the Brazilian cultural heritage.

b) Compensation of the Management Key Personnel

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

	09/30/2011		09/30/2010
Compensation		230,481		188,200
Board of Directors		3,196		2,480
Management members		227,285		185,720
Profit sharing		163,356		168,500
Board of Directors		1,000		2,500
Management members		162,356		166,000
Contributions to pension plans		4,416		7,148
Board of Directors		122		455
Management members		4,294		6,693
Stock option plan – Management members		95,509		80,192
Total		493,762		444,040

Information related to the granting of stock option plan, benefits to employees and post-employment benefits are detailed in Notes 16f IV and 19, 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
	09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011			09/30/2010			09/30/2011			09/30/2010
Interbank deposits		21,830,736		13,552,344		21,861,106		13,566,631		30,370			14,287			30,370			14,287
Securities and derivative financial instruments		185,584,204		139,690,093		186,178,883		140,285,123		1,134,810			1,312,904			594,679			595,030
Adjustment of available-for-sale securities										529,114			704,425			-			-
Adjustment of held-to-maturity securities										605,696			608,479			594,679			595,030
Loan, lease and other credit operations		310,560,158		254,156,423		310,790,972		254,944,667		230,814			788,244			230,814			788,244
Investments
BM&FBovespa		58,107		58,107		395,734		637,045		337,627			578,938			337,627			578,938
BPI		317,775		725,951		317,775		613,373		-			(112,578	)		-			(112,578	)
Cetip S.A.		17,188		34,682		202,229		368,269		185,041			333,587			185,041			333,587
Redecard S.A.		582,280		539,030		8,614,025		8,832,740		8,031,745			8,293,710			8,031,745			8,293,710
Serasa S.A.		268,122		244,817		647,508		639,621		379,386			394,804			379,386			394,804
Parent company		177,377		161,959		556,763		556,763		379,386			394,804			379,386			394,804
Minority stockholders (1)		90,745		82,858		90,745		82,858		-			-			-			-
Fundings and borrowings (2)		194,036,103		148,640,798		194,239,512		148,875,417		(203,409	)		(234,619	)		(203,409	)		(234,619	)
Subordinated debt (Note 10f)		38,366,648		33,683,469		38,511,494		33,812,224		(144,846	)		(128,755	)		(144,846	)		(128,755	)
Treasury shares		1,704,137		720,980		1,705,387		1,233,247		-			-			1,250			512,267
Total unrealized										9,981,538			11,240,522			9,442,657			11,034,915

(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, funds from acceptance and issuance of securities and borowings;

(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

Pursuant to CVM Resolution No. 600, dated October 7, 2009, we present the policies adopted by ITAÚ UNIBANCO HOLDING and its subsidiaries regarding benefits to employees, as well as the accounting procedures adopted:

ITAÚ UNIBANCO HOLDING and some of its subsidiaries sponsor defined benefit and variable contribution plans, which basic purpose is granting benefits that, in general, provide a life annuity benefit, and may be converted into survivorship annuities, according to the plan's regulation. They also sponsor defined contribution plans, the benefit of which is calculated based on the accumulated balance at the eligibility date, according to the plan's regulation, which does not require actuarial calculation.

Employees hired until July 31, 2002, who come from Itaú, and until February 27, 2009, who come from Unibanco, are beneficiaries of the above-mentioned plans. As regards the employees hired after these dates, they have the option to voluntarily participate in a defined contribution plan (PGBL), managed by Itaú Vida e Previdência S.A.

a) Description of the Plans

The plans’ assets are invested in separate funds, with the exclusive purpose of providing benefits to eligible employees, and they are maintained independently from ITAÚ UNIBANCO HOLDING. These funds are maintained by closed-end private pension entities with independent legal structures, as detailed below:

Entity	Benefit plan
Fundação Itaubanco	Supplementary retirement plan – PAC (1)
	Franprev benefit plan - PBF (1)
	002 benefit plan - PB002 (1)
	Itaulam basic plan - PBI (1)
	Itaulam Supplementary Plan - PSI (2)
	Itaubanco CD Plan (3) (4)
Fundação BEMGEPREV	Supplementary Retirement Plan – Flexible Premium Annuity (ACMV) (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 Pension Plan (3)
	Basic Plan (1)
	IJMS Plan (1)
Banorte Fundação Manoel Baptista da Silva de Seguridade Social	Benefit Plan II (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, which are not receiving supplementary retirement by the PAC. The 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.

b) Defined benefit plan

I - Main assumptions used in actuarial valuation of Retirement Plans

	2011	2010
Discount rate (1)	9.72% p.a.	10.24% p.a.
Expected return rate on assets	12.32 % p.a.	12.32% p.a.
Mortality table (2)	AT-2000	AT-2000
Turnover (3)	Itaú Exp. 2003/2004	Itaú Exp. 2003/2004
Future salary growth	7.12 % p.a.	7.12% p.a.
Growth of the pension fund and social security benefits	4.00 % p.a.	4.00% p.a.
Inflation	4.00 % p.a.	4.00% p.a.
Actuarial method (4)	Projected Unit Credit	Projected Unit Credit

(1) Upon determination for amounts at the 01/01/2010 base date, the discount rate of 10.24% p.a was adopted.

(2) 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;

The life expectancy in years by the AT-2000 mortality table for participants of 55 years of age is 27 and 31 years for men and women, respectively.

(3) 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;

(4) 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.

The basic difference between the assumptions above and those adopted upon determination of the actuarial liability of defined benefit plans, for purposes of recording in the balance sheet of the closed-end private pension entities that manage them, is the actuarial method. For this purpose, the Bank adopts the aggregate method, by which the mathematical reserve is defined based on the difference between the present value of the projected benefit and the present value of future contributions, subject to the methodology defined in the respective actuarial technical note.

II –Management of defined benefit plan assets

The purpose of the management of the funds from the closed-end private pension entities is the long-term balance between social security assets and liabilities by exceeding the actuarial goals.

As regards the assets guaranteeing mathematical reserves, management should ensure the payment capacity of benefits in the long-term by preventing the risk of mismatching assets and liabilities by pension plan.

At September 30, 2011 the allocation of plan assets and the allocation target for 2011, by type of asset, are as follows:

					% Allocation
Types	At 09/30/2011		At 09/30/2010		09/30/2011			09/30/2010			2011 Target
Fixed income securities		10,224,817		8,375,753		87.82	%		78.32	%	53% to 100%
Variable income securities		992,687		1,926,602		8.53	%		18.02	%	0% to 25%
Structured investments		12,751		14,270		0.11	%		0.13	%	0% to 10%
Foreign investments		-		4,564		0.00	%		0.04	%	0% to 3%
Real estate		345,363		350,277		2.97	%		3.28	%	0% to 4%
Loans to participants		23,014		22,954		0.20	%		0.21	%	0% to 5%
Other realizable amounts		44,809		-		0.37	%		0.00	%	0% to 3%
Total		11,643,441		10,694,420		100.00	%		100.00	%

The defined benefit plan assets include shares of ITAÚ UNIBANCO HOLDING, its main parent company (ITAÚSA) and of subsidiaries of the latter, with a fair value of R$ 505,297 (R$ 1,010,496 at 09/30/2010), and real estate rented to Group companies, with a fair value of R$ 296,931 (R$ 306,886 at 09/30/2010).

The expected income from defined benefit plan assets is based on projections of returns for each of the segments detailed above. For the fixed-income segment, the adopted interest rates were taken from long-term securities included in the portfolios, and the interest rates practiced in the market at the closing of the balance sheet. For the variable-income segment, the 12-month expected returns of the market for this segment were adopted. For the real estate segment, the cash inflows of expected rental payments for the following 12 months were adopted. For all segments, the basis adopted was the portfolio positions at the balance sheet date.

III- Net amount recognized in the balance sheet

We present below the calculation of the net amount recognized in the balance sheet:

	09/30/2011			09/30/2010
1 - Net assets of the plans		11,643,441			10,694,420
2 - Actuarial liabilities		(10,106,711	)		(8,930,220	)
3- Surplus (1-2)		1,536,730			1,764,200
4- Asset restriction (*)		(1,215,740	)		(1,334,219	)
5 - Net amount recognized in the balance sheet (3-4)		320,990			429,981
Amount recognized in Assets		443,570			557,921
Amount recognized in Liabilities		(122,580	)		(127,940	)

(*) Corresponds to the excess of present value of the available economic benefit, in conformity with item 58 of CVM Resolution No. 600.

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated to 01/01/2010 were recognized in Stockholders’ equity, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period from 01/01 to 09/30/2011 were recognized in Results under “General and administrative expenses”.

IV - Change in net assets, actuarial liabilities, and surplus

	09/30/2011									09/30/2010
	Net assets			Actuarial liabilities			Surplus			Net assets			Actuarial liabilities			Surplus
Present value – beginning of the period		11,167,828			(9,815,180	)		1,352,648			14,757,268			(11,180,214	)		3,577,054
Effects of the partial spin-off of PAC (1);		-			-			-			(5,147,142	)		2,709,982			(2,437,160	)
Inclusion of Redecard plan		60,817			(55,897	)		4,920			-			-			-
Expected return on assets (3)		771,356			-			771,356			1,038,020			-			1,038,020
Cost of current service		-			(70,729	)		(70,729	)		-			(63,837	)		(63,837	)
Cost of interest		-			(700,627	)		(700,627	)		-			(718,636	)		(718,636	)
Benefits paid		(421,701	)		421,701			-			(398,243	)		398,243			-
Contributions of sponsor		22,713			-			22,713			19,961			-			19,961
Contributions of participants		6,645			-			6,645			24,864			-			24,864
Actuarial gain/(loss) (2) (3)		35,783			114,021			149,804			399,692			(75,758	)		323,934
Present value – end of the period		11,643,441			(10,106,711	)		1,536,730			10,694,420			(8,930,220	)		1,764,200

(1) Corresponds to the effect of the partial spin-off of the PAC and creation of the Itaubanco Defined Contribution Plan, which migration process resulted in the reduction and partial settlement of PAC payables. The reduction which implied a decrease in payables and thus in actuarial liabilities, made on December 31, 2009, is already adjusted in the opening balance (January 1, 2010). At March 31, 2010, the PAC participants who opted for the voluntary migration to the Itaubanco CD Plan had all of their amounts payable settled by PAC through the initial contribution of the assets previously held by PAC for individual accounts corresponding to the Itaubanco CD Plan. PAC is no longer responsible for any retirement benefit at the PAC level related to these participants. After the partial termination of PAC, assets were transferred from PAC to Itaubanco CD Plan.

(2) Gains recorded in Net Assets correspond to the income earned above the expected return rate of assets.

(3) The actual return on assets amounted to R$ 807,132 (R$1,437,712 at 09/30/2010).

V- Total expenses recognized in income for the year

Total expenses recognized in defined benefit plans include components, as follows:

	09/30/2011			09/30/2010
Cost of current service		(70,729	)		(63,837	)
Cost of interest		(700,627	)		(718,636	)
Expected return on the plan assets		771,356			1,038,020
Effects of the partial spin-off of PAC		-			(2,437,160	)
Effect on asset restriction		(107,062	)		1,699,220
(Gain) loss for the year		149,804			323,934
Contributions of participants		6,645			24,864
Total expenses recognized in income for the year		49,387			(133,595	)

During the period, contributions made totaled R$ 22,713 (R$ 19,961 at 09/30/2010). The contribution rate increase is based on the beneficiary’s salary.

In 2011, the expected contribution to retirement plans sponsored by ITAÚ UNIBANCO HOLDING is R$ 37,155.

c) Defined contribution plans

The defined contribution plans have pension funds set up by the portion of sponsors’ contributions not included in the participant’s accounts balance and by the loss of eligibility to a plan benefit, as well as by resources from the migration from the defined benefit plans. The fund will be used for future contributions to the individual participants' accounts, according to the rules of the respective benefit plan regulation.

At September 30, 2011, the amount recognized in assets is R$ 1,171,809 (R$ 1,094,627 at September 30, 2010).

Total revenue recognized in defined contribution plans includes the following components:

	09/30/2011			09/30/2010
Effects of the partial spin-off of PAC		-			1,476,743
Contributions		(99,837	)		(76,167	)
Actuarial gain/(loss)		20,220			119,439
Effect on asset restriction		82,259			(553,085	)
Total revenue recognized in income for the year		2,642			966,930

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated until 01/01/2010 were recognized in Stockholders’ equity, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period from 01/01 to 09/30/2011 were recognized in Results under “General and administrative expenses”.

During the period, contributions to the defined contribution plans, including PGBL, totaled R$ 128,033 (R$ 99,837 at September 30, 2011), of which R$ 108,177 (R$ 76,167 at September 30, 2010) were from pension funds.

d ) Other Post-employment benefits

Itaú Unibanco Holding and its 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 Holding, under the terms and conditions established, in which health plans are totally or partially sponsored for retired workers and beneficiaries.

I- Changes

Based on the report prepared by independent actuary, the changes in obligations for these other projected benefits and the amounts recognized in the balance sheet, under liabilities, of Itaú Unibanco Holding, are as follows:

	09/30/2011			09/30/2010
At the beginning of the year		(105,335	)		(100,280	)
Cost of interest		(7,476	)		(7,496	)
Benefits paid		4,239			3,935
Actuarial gain/(loss)		1,147			(1	)
At the end of the year		(107,425	)		(103,842	)

In conformity with the exemption set forth in CVM Resolution No. 647, gains and losses accumulated until 01/01/2010 were recognized in Stockholders’ equity, net of tax effects and, taking into account the subsidiary company’s adjustments, the actuarial gains and losses for the period from 01/01 to 09/30/2011 were recognized in Results under “General and administrative expenses”.

II- Assumptions and sensitivities 1%

For calculation of benefits obligations projected beyond the assumptions used for the defined benefit plans (Note 18b l), the 8.16% p.a. increase in medical costs assumption is adopted.

Assumptions for rates related to medical assistance costs have a significant impact on the amounts recognized in income. A change of one percentage point in the medical assistance cost rates would have the effects as follows:

	1.0% increase		1.0% decrease
Effects on service cost and cost of interest		1,477		(1,137	)
Effects on present value of obligation		14,121		(11,394	)

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				Other foreign companies (7)				Foreign consolidated (8)
	09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010
ASSETS
Current assets and long-term receivables
Cash and cash equivalents	2,318,241		1,183,248		158,992		111,374		1,964,259		1,488,384		3,637,635		2,883,370		653,619		353,917		856,270		446,614		344,445		158,695		885,576		1,705,101		6,069,404		4,533,963
Interbank investments	18,789,431		8,173,749		246,413		160,539		1,021,853		2,408,771		6,298,526		3,784,826		3,393		38,899		865,983		598,609		31,521		61,719		839,647		10,139		19,074,741		9,244,032
Securities	42,267,534		23,348,788		159,079		217,922		1,819,148		1,448,330		4,621,626		5,821,801		1,821,636		1,748,280		309,602		848,010		492,008		269,225		9,452		1,278		50,765,259		31,740,441
Loan, lease and other credit operations	27,206,884		22,293,563		2,021,487		1,337,190		7,055,436		5,260,225		283,689		593,637		11,287,654		8,615,629		1,935,514		1,200,782		2,110,738		1,280,063		5,642		3,021		51,819,464		40,156,579
Foreign exchange portfolio	32,692,272		18,789,211		27,415		53,957		2,404,693		1,847,018		693,007		623,379		348,868		449,259		7,359		19,989		99,949		56,887		-		-		34,958,843		21,306,222
Other assets	1,628,381		1,009,586		461,363		336,817		220,920		212,712		1,141,761		2,520,408		409,616		290,583		632,274		372,677		531,809		335,368		114,937		142,957		4,905,838		5,173,095
Permanent assets
Investments	21,733		714,137		3,201		2,346		159,581		372,339		45,288		38,812		1,576		1,087		1,053		351		922		732		168,359		386,884		354,974		766,508
BPI (Note 15a II)	-		-		-		-		155,709		370,235		-		-		-		-				-		-		-		162,065		355,716		317,774		725,951
Other investments	21,733		714,137		3,201		2,346		3,872		2,104		45,288		38,812		1,576		1,087		1,053		351		922		732		6,294		31,168		37,200		40,557
Fixed and intangible assets	17,608		22,188		102,209		53,982		179,755		182,615		2,618		2,201		270,686		201,837		25,960		20,121		22,925		14,648		39,178		19,281		660,940		516,914
Total	124,942,084		75,534,470		3,180,159		2,274,127		14,825,645		13,220,394		16,724,150		16,268,434		14,797,048		11,699,491		4,634,015		3,507,153		3,634,317		2,177,337		2,062,791		2,268,661		168,609,463		113,437,754
LIABILITIES
Current and long-term liabilities
Deposits	41,544,416		22,504,545		2,363,354		1,744,432		6,070,018		6,248,228		2,372,347		1,628,653		8,912,251		7,085,322		3,700,577		2,709,817		2,623,930		1,612,810		-		18		54,812,872		34,165,269
Demand deposits	6,679,898		7,573,842		577,792		469,999		2,721,819		2,621,268		1,048,074		1,043,086		1,597,620		1,273,840		2,102,730		1,490,834		878,753		561,895		-		-		10,849,027		10,642,566
Savings deposits	-		-		657,398		461,805		-		-		-		-		-		-		1,265,966		838,648		1,156,369		795,189		-		-		3,079,732		2,095,642
Interbank deposits	2,214		2,556,857		76,891		58,874		1,667,839		1,464,557		-		256,473		6		6		9,110		9,617		-		-		-		-		1,139,679		222,421
Time deposits	34,862,304		12,373,846		1,051,273		753,754		1,680,360		2,162,403		1,324,273		329,094		7,314,625		5,811,476		322,771		370,718		588,808		255,726		-		18		39,744,434		21,204,640
Deposits received under securities repurchase agreements	8,414,344		5,958,351		81,119		87,301		-		-		1,676,686		1,397,069		108,539		121,906		-		-		-		-		-		-		9,206,434		6,546,028
Funds from acceptance and issuance of securities	6,812,903		2,178,411		-		-		3,017,885		2,478,028		2,950,553		3,095,879		1,227,095		1,013,984		-		-		-		-		-		-		14,004,426		8,746,068
Borrowings and onlending	14,270,037		8,837,395		109,471		34,879		574,433		647,856		53,227		55,748		1,234,766		589,873		39,761		33,725		247,002		106,558		31,691		375,792		16,529,753		10,306,614
Derivative financial instruments	2,368,038		1,592,617		4,479		480		846,187		220,337		831,821		1,234,578		302,958		198,889		794		6,503		-		-		-		-		3,698,694		1,904,760
Foreign exchange portfolio	32,777,979		18,784,176		27,409		53,935		2,409,869		1,798,913		675,542		623,670		348,190		447,183		7,348		22,200		96,215		57,618		-		-		35,027,835		21,254,217
Other liabilities	6,425,303		5,984,129		247,514		203,679		468,990		380,442		1,061,412		1,045,703		775,646		847,131		520,935		444,586		235,448		115,456		112,092		137,268		9,556,314		9,060,928
Deferred income	49,936		7,400		-		-		23,809		15,942		132		244		7,318		2,236		2,945		-		108		66		2,045		1,852		86,294		27,738
Minority interest in subsidiaries	-		-		45,170		821		63		37		-		28		163		134		-		-		-		-		4		8		260		274
Stockholders' equity
Capital and reserves	10,858,053		8,777,581		280,228		150,772		1,499,562		1,353,807		7,078,513		7,203,278		1,781,997		1,265,863		312,172		245,430		327,439		229,869		2,064,990		1,714,990		24,195,475		20,193,749
Result for the period	1,421,075		909,865		21,415		(2,172	)	(85,171	)	76,804		23,917		(16,416	)	98,125		126,970		49,483		44,892		104,175		54,960		(148,031	)	38,733		1,491,106		1,232,109
Total	124,942,084		75,534,470		3,180,159		2,274,127		14,825,645		13,220,394		16,724,150		16,268,434		14,797,048		11,699,491		4,634,015		3,507,153		3,634,317		2,177,337		2,062,791		2,268,661		168,609,463		113,437,754
Statement of income
Income from financial operations	1,656,803		1,407,962		222,532		177,259		203,177		248,650		229,588		161,121		627,731		530,990		130,277		111,109		199,932		123,311		21,216		(11,785	)	3,196,069		2,722,537
Expenses of financial operations	(391,303	)	(435,301	)	(62,939	)	(51,004	)	(80,477	)	(168,036	)	(153,172	)	(158,809	)	(315,044	)	(176,140	)	(9,199	)	(7,945	)	(40,608	)	(22,251	)	(2,627	)	(4,879	)	(970,138	)	(982,857	)
Result of loan losses	164,185		(65,046	)	(12,920	)	(10,466	)	2,717		16,739		-		-		(61,668	)	(75,735	)	(17,263	)	(11,269	)	(15,948	)	(6,303	)	(2,879	)	(2,779	)	56,224		(154,859	)
Gross income from financial operations	1,429,685		907,615		146,673		115,789		125,417		97,353		76,416		2,312		251,019		279,115		103,815		91,895		143,376		94,757		15,710		(19,443	)	2,282,155		1,584,821
Other operating revenues (expenses)	(1,023	)	14,351		(152,355	)	(124,994	)	(173,746	)	21,285		(51,170	)	(17,669	)	(134,187	)	(120,672	)	(32,104	)	(28,964	)	(25,144	)	(31,613	)	(145,256	)	73,467		(705,641	)	(231,944	)
Operating income	1,428,662		921,966		(5,682	)	(9,205	)	(48,329	)	118,638		25,246		(15,357	)	116,832		158,443		71,711		62,931		118,232		63,144		(129,546	)	54,024		1,576,514		1,352,877
Non-operating income	(7,499	)	(11,981	)	40,202		7,217		3,432		(149	)	239		-		570		(5,331	)	91		(29	)	(1,586	)	314		1,128		(735	)	35,420		(10,696	)
Income before taxes on income and profit sharing	1,421,163		909,985		34,520		(1,988	)	(44,897	)	118,489		25,485		(15,357	)	117,402		153,112		71,802		62,902		116,646		63,458		(128,418	)	53,289		1,611,934		1,342,181
Income tax	(88	)	(120	)	(5,211	)	-		(36,845	)	(38,775	)	-		-		(19,257	)	(26,128	)	(22,319	)	(18,010	)	(12,471	)	(8,498	)	(19,615	)	(14,557	)	(115,806	)	(106,087	)
Statutory participation in income	-		-		-		-		(3,429	)	(2,911	)	(1,568	)	(1,061	)	-		-		-		-		-		-		-		-		(4,997	)	(3,972	)
Minority interest in subsidiaries	-		-		(7,894	)	(184	)	-		1		-		2		(20	)	(14	)	-		-		-		-		2		1		(25	)	(13	)
Net income (loss)	1,421,075		909,865		21,415		(2,172	)	(85,171	)	76,804		23,917		(16,416	)	98,125		126,970		49,483		44,892		104,175		54,960		(148,031	)	38,733		1,491,106		1,232,109

(1) Itaú Unibanco S.A. - Grand Cayman, New York, Tokyo and Nassau Branches, Banco Itaú-BBA S.A. - Nassau Branch, Uruguay Brach, 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 Inmobiliarios S.A.C.I and Itaú Sociedad de Bolsa S.A.

(3) IPI - Itaúsa Portugal Investimentos, SGPS Lda. (49%),  Itaúsa Europa - Investimentos, SGPS, Lda., Itaú Europa, SGPS, Lda., Itaúsa Portugal - SGPS, S.A., Banco Itau BBA International, S.A , Itau BBA International (Cayman) Ltd., Banco Itaú Europa Luxembourg S.A., BIE Cayman, Ltd., Banco Itaú Europa International, Itaú Bank & Trust Bahamas Ltd. (new company name of Bie Bank & Trust Bahamas Ltd.),  Itaú Europa Securities Inc., BIE Directors Ltd, BIE Nominees, Lda,  Kennedy Director International Services S.A., Federal Director International Services, S.A., Bay State Corporation Limited and Cape Ann Corporation Limited; Banco Itau Suisse S.A; only at 09/30/2010, BIEL Holdings AG, Fin Trade, Itaú Europa Luxembourg Advisory Hold. Company S.A, BIEL Fund Management Company S.A. and Itaú Madeira Investimentos SGPS Ltda.

(4) Itau Bank Ltd., ITB Holding Ltd., Jasper International Investiment LLC, Unibanco Cayman Bank Ltd., Itaú Bank & Trust Cayman Ltd. (new company name of Unicorp Bank & Trust Ltd.), Unibanco Securities, Inc, Itau USA Asset Management, Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd., Rosefield Finance Ltd. and UBT Finance S.A.; only at 09/30/2010, BFB Overseas N.V, BFB Overseas Cayman, Ltd.,  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, only at 09/ 30/2011 MCC Asesorias Limitada and MCC SEcurites INC.

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

(7) Afinco Americas Madeira, SGPS, Soc. Unipessoal Ltda., Zux Cayman Company Ltd., Topaz Holding Ltd., United Corporate Services Inc (new company name of Itaú USA Inc), Itaú International Investment LLC,  Albarus S.A., Banco Del Paraná S.A., Garnet Corporation, Itau Global Asset Management, Mundostar S.A., Karen International Ltd., Nevada Woods S.A., Itaú Asia Securities Ltd., Líbero Trading International Ltd., IPI - Itaúsa Portugal Investimentos, SGPS Lda. (51%), Itaú BBA USA Securities Inc., Itaú Middle East Limited ( new company name of 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 BBA UK Securities Limited, Itaú Japan Asset Management Ltd.  Itaú (Beijing) Investment Consultancy Limited; only at 09/30/2011: Itaú UK Asset Management Limited and Itaú BBA SAS; only at 09/30/2010: Zux SGPS Lda., Agate SARL, Amethyst Holding Ltd., Spinel Corporation and Tanzanite Corporation.

(8) Foreign consolidated information presents balances net of elimination from consolidation

NOTE 21 – RISK MANAGEMENT

The purpose of risk identification is to map the risk events of internal and external nature that may affect the strategies of support and business units and the fulfillment of their objectives, with possibility of impact on income, capital and liquidity of the Bank.

Risk control is considered by Itaú Unibanco Holding an essential tool for optimizing the use of capital and selecting the best business opportunities, in order to obtain the best risk-return ratio.

At Itaú Unibanco Holding, Risk Management is the process in which:

· The existing and potential risks from the bank operations are identified and measured;

· Policies, procedures and methodologies for risk management and control consistent with the Board of Directors’ guidelines and the bank’s strategies are approved;

· The bank’s risk portfolio is managed considering the best risk-return ratio.

This process interweaves the whole institution, with full involvement of top management that through committees, defines the global objectives that are measured as goals and limits to the risk management units. Control units, in turn, support the bank’s management by monitoring and analyzing risk.

Itaú Unibanco’s risk management organizational structure is in accordance with the Basel Accord’s recommendations. The control structure of Market, Credit, Liquidity, Operational and Subscription risks is centralized at Itaú Unibanco aiming at assuring that the conglomerate risks are being managed in accordance with established policies and procedures. The purpose of centralizing control is to provide top management with an overview of conglomerate’s risk exposure, so as to optimize and speed up corporate decision-making.

The purpose of that structure is to follow up the regulatory requirements issued by the conglomerate’s lead institution. Itaú Unibanco manages proprietary IT systems to fully meet the applicable rules on capital reserve in connection with the capital portions, pursuant to determinations and models issued by BACEN. It also coordinates actions to check for adherence to qualitative and quantitative requirements established by the relevant authorities for compliance with the minimum mandatory capital requirement. Further information on risk management can be found on the Investor Relations website www.itau-unibanco.com.br/ri, under section Corporate Governance/ Risk Management – Circular 3,477.

I – Market Risk

Market risk is the possibility of incurring losses arising from the changes in the market values of positions held by a financial institution, including the risks of transactions subject to changes in foreign exchange and interest rates, shares and commodity prices.

The market risk management is the process through which the institution, monitors and controls the risks of changes in the market prices of financial instruments, aiming at optimizing the risk-return ratio, by using an appropriate structure of management limits, models and tools.

The scope of the market risk control carried out by Itaú Unibanco Holding is extended to all the financial instruments included in the portfolios of companies under its responsibility. In this sense, the Itaú Unibanco’s Market Risk Management Policy is in line with the principles of Resolution No. 3,464 of June 26, 2007 issued by the National Monetary Council (CMN) being a set of principles that drive the institution’s strategy towards control and management of market risk of all business units and legal entities of the Group.

The document that details the guidelines set out by this internal policy on market risk control can be read on the website www.itau-unibanco.com.br/ri, in the section Corporate Governance, Rules and Policies, Public Access Report – Market Risk.

The control of market risk is carried out by an area independent from business ones, and is responsible for carrying out daily measurement, assessment and report activities by way of control units set in the legal entities of Itaú Unibanco group. The independent area also performs the monitoring, assessment and consolidated reporting of market risk information, aiming at providing feedback for the follow up of the superior committees and complying with the regulatory bodies in Brazil and abroad.

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.

The market risk limits are structured in accordance with the guidelines established by the Superior Risk Policies Committee (CSRisc), based on the evaluation of the projection of balance sheet results, the size of the net worth and risk profile of each legal entity, and are defined within risk measures used in the management. These limits are submitted to the approval of the Superior Institutional Treasury Board (CSTI).

In addition to the use of the established limits, the other market risk control measures are also reported to these committees.

Itaú Unibanco uses risk limits characterized as higher limits or internal limits. Higher limits are those defined by CSRisc and CSTI and they are monitored by the market risk control area and reported to higher committees. Internal limits are defined by control units’ committees and monitored by the respective local risk control areas; however, these limits are subject to adherence to higher limits. Both limits are monitored on a daily basis.

The market risk analyses are conducted based on the following metrics:

· Statistical Value at Risk (VaR): Statistical measure that estimates the expected maximum potential economic loss under regular market conditions, taking into consideration the defined time period and confidence level;

· Losses in Stress Scenarios: simulation technique to assess the behavior of assets and liabilities of a portfolio when several risk factors are taken to extreme market situations (based on prospective  scenarios);

· Stop Loss Alert: effective losses added to the maximum potential loss in optimistic and pessimistic scenarios;

· Unrealized Income (RaR): assessment of the difference between the appropriated interest amount and the market value on a certain date, in an usual scenario and stressed scenarios, reflecting accounting asymmetries and expected realization of result. This is a risk measure used to managerially assess the risk of the banking portfolio.

In addition to the aforementioned risk measures, sensitivity and loss control measures are also analyzed. Among them, the following is included:

· Mismatching (gap) analysis: graphic representation by risk factor of cash flows expressed at market value, allocated at the maturity dates;

· Sensitivity (DV1): impact on the market value of cash flows, when submitted to an increase in 1 basis point per year in the future interest curve; and

· Stop Loss: the maximum acceptable loss limit that a certain is authorized to reach.

The limits and exposure to market risks are relatively low as compared to the company’s stockholders’ equity. In September 2011, Itaú Unibanco recorded a Total VaR Global of R$ 163 million (R$ 79 million in June 2011).

II – Credit Risk

Credit risk is the 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.

In line with the principles of CMN Resolution No. 3,721 of April 30, 2009, Itaú Unibanco Holding  has a structure for and policy on credit risk management, approved by its Board of Directors, applicable to the companies and subsidiaries in Brazil and abroad.

The document that outlines the guidelines set out by this internal policy on credit risk control can be read on the website www.itau-unibanco.com.br/ri, in the section Corporate Governance, Rules and Policies, Relatório de Acesso Público - Risco de Crédito.

The objective of Itaú Unibanco’s credit risk management is to maximize 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 the risk of each business.

Itaú Unibanco 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’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 an independent structure, evaluating the result of their application in groups to which credits were granted. In wholesale, the credit proposals are analyzed on a case by case basis, through an approval-level mechanism that ensures the detailed observation of transaction risk, as well as the necessary timing and flexibility of their approval.

To protect the institution against losses arising from loan operations, Itaú Unibanco considers all aspects that determine the client’s credit risk to define the provision level commensurate with the risk incurred in each operation. For each operation, the assessment and rating of the client or economic group, the operation rating, and the possible existence of past due amounts are taken into account.

Itaú Unibanco recognizes a provision additional to that required by BACEN, aiming at ensuring a provision level compatible with the expected loss model adopted by the institution’s credit risk management, based on internal models. This allowance is usually quantified in view of the past performance of loan portfolios, based on exposure, probabilities of default and expected recovery of transactions.

III – Operational Risk

The operational risk is the possibility of incurring losses arising from failure, deficiency or inadequacy or internal processes, personnel and systems, or external events. It includes the legal risk, associated with the inadequacy of 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. That definition does not include the strategic risk and reputation risk.

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 formulated a policy on operational risk management, approved by its Board of Directors, applicable to the companies and subsidiaries in Brazil and abroad.

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. A summarized version of such policy is available on the websitewww.itau-unibanco.com.br/ri, under section Corporate Governance, Rules and Policies, Public Access Report – Operational Risk.

The BACEN'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.

IV – Liquidity Risk

Liquidity risk is the occurrence of 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 and their rights and obligations.

Management of liquidity risk seeks to adopt best practices to avoid having insufficient cash available and to avoid difficulties in meeting obligations due.

Itaú Unibanco has a structure dedicated to monitoring, controlling and analyzing liquidity risk, through models of variable projections that affect cash flows and the level of reserves in local and foreign currencies.

Additionally, the institution establishes guidelines and limits whose compliance is periodically analyzed in technical committees and whose purpose is providing safety margin in addition to the minimum projected needs and the strategy and contingency plans for crisis situations. Liquidity management policies and associated limits are established based on prospective scenarios that are regularly reviewed and in top management definitions.

V - Underwriting Risk

Underwriting risk is the risk arising from an adverse economic situation, which is contrary to the insurance company’s expectations when it establishes its underwriting 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.

Centralized control of underwriting risk is conducted by the risk control area that is separate from the business units and internal audit department. That area’s role is to design internal models for measuring underwriting risk and create the conditions necessary to validate and control these models. Another role of the risk control area is to examine changes in policies and follow up the performance of insurance, pension plans and capitalization portfolios.

 

NOTE 22 – ADDITIONAL INFORMATION

a) 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 the foreign currency were:

	9/30/2011			9/30/2010
Permanent foreign investments		25,686,576			21,425,858
Net amount of other assets and liabilities indexed to foreign currency, including derivatives		(45,630,403	)		(36,793,638	)
Net foreign exchange position		(19,943,827	)		(15,367,780	)

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
	09/30/2011		09/30/2010		09/30/2011		09/30/2010		09/30/2011		09/30/2010
Investment funds		299,943,197		271,630,527		299,943,197		271,630,527		3,146		1,603
Fixed income		272,337,080		246,470,926		272,337,080		246,470,926		2,278		1,362
Shares		27,606,117		25,159,601		27,606,117		25,159,601		868		241
Managed portfolios		154,154,281		147,500,285		90,867,869		85,864,460		15,235		16,781
Customers		92,862,662		79,850,022		79,309,333		70,295,110		15,166		16,705
Itaú Group		61,291,619		67,650,263		11,558,536		15,569,350		69		76
TOTAL		454,097,478		419,130,812		390,811,066		357,494,987		18,381		18,384

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

d) Funds of consortia

	09/30/2011		09/30/2010
Monthly estimate of installments receivable from participants		68,664		48,930
Group liabilities by installments		5,384,859		3,187,153
Participants – assets to be delivered		5,061,196		2,972,975
Funds available for participants		424,627		319,611
(In units)
Number of managed groups		720		664
Number of current participants		195,043		150,512
Number of assets to be delivered to participants		118,696		91,648

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 ”Programa Itaú Social” (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$ 280 (R$ 194 at September 30, 2010) in the period, and the Foundation’s social net assets totaled R$ 2,914,369 (R$ 538,238 at September 30, 2010). 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$ 43,000 (R$ 36,917 from January 1 to September 30, 2010).

g) Instituto Unibanco - ITAÚ UNIBANCO HOLDING and its subsidiaries sponsor Instituto Unibanco, an entity 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) Instituto Unibanco de Cinema  - 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 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, 2011 and 2010, the consolidated companies did not make any donation.

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 from January 1 to September 30, 2011, the consolidated companies did not make any donation (R$ 400 from January 1 to September 30, 2010).

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 – Holding and Holding Consolidated

	01/01 to 09/30/2011			01/01 to 09/30/2010
Program for Settlement or Installment Payment of Federal Taxes - Law No. 11,941/09 (Notes 12b and 14)		508,993			144,712
Provision for contingencies – economic plans		(230,435	)		(335,149	)
Market value based on the share price – BPI (Note 15a II)		(233,295	)		-
Total		45,263			(190,437	)

l) Reclassifications for comparison purposes – The Company carried out two reclassifications in the balances of September 30, 2010, for financial statements comparison purposes, in view of the change in the percentage used for financial statements consolidation purposes (Note 2b), regrouping of the following headings: in the Balance Sheet, the reclassification of the Reward Program from Other Liabilities – Credit Card Operations to Deferred Income, and the reclassifications of Technical Provision for Insurance, Pension Plan and Capitalization to Other Receivables – Receivables from Insurance and Reinsurance Operations. In Statement of Income, the reclassification of Provision for Tax and Social Security from Other Operating Expenses to Other Operating Revenues, the reclassification of the Reward Program from Other Operating Expenses to Banking Service Fees, in compliance with CVM Resolution No. 597, of September 15, 2009 and the reclassifications of Income from Credits Cards and Securities Brokerage of Banking Service Fees from Income from Bank Charges.

	Prior disclosure			Reclassification/ deconsolidation			Adjusted balances
CURRENT ASSETS AND LONG-TERM RECEIVABLES		675,973,089			(3,775,256	)		672,197,833
CASH AND CASH EQUIVALENTS		11,063,416			(258,056	)		10,805,360
INTERBANK INVESTMENTS		112,483,407			396,085			112,879,492
Money market		95,797,975			(4,116	)		95,793,859
Interbank deposits		13,152,143			400,201			13,552,344
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		141,878,818			(2,188,725	)		139,690,093
Own portfolio		53,302,282			(687,066	)		52,615,216
Subject to repurchase commitments		14,534,001			(1	)		14,534,000
Derivative financial instruments		10,900,635			(5,711	)		10,894,924
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas		43,621,488			(269,066	)		43,352,422
Assets guaranteeing technical provisions – other securities		8,582,622			(1,226,881	)		7,355,741
INTERBANK ACCOUNTS		66,169,688			(3	)		66,169,685
Central Bank deposits		62,090,097			(3	)		62,090,094
INTERBRANCH ACCOUNTS		73,019			(1,438	)		71,581
LOAN, LEASE AND OTHER CREDIT OPERATIONS		255,750,989			(1,594,566	)		254,156,423
Operations with credit granting characteristics		279,034,816			(1,860,070	)		277,174,746
(Allowance for loan losses)		(23,283,827	)		265,504			(23,018,323	)
OTHER RECEIVABLES		85,041,719			(1,296,548	)		83,745,171
Income receivable		938,156			6,857			945,013
Receivables from insurance and reinsurance operations		3,775,196			(601,676	)		3,173,520
Sundry		45,383,795			(701,729	)		44,682,066
OTHER ASSETS		3,512,033			1,167,995			4,680,028
Assets held for sale		196,132			(27,272	)		168,860
Prepaid expenses		2,826,295			1,195,267			4,021,562
PERMANENT ASSETS		10,275,355			476,836			10,752,191
INVESTMENTS		2,226,272			1,118,395			3,344,667
Investments in affiliates		1,084,678			1,125,210			2,209,888
Other investments		1,320,280			(10,551	)		1,309,729
(Allowance for loan losses)		(178,686	)		3,736			(174,950	)
REAL ESTATE IN USE		4,697,805			(277,630	)		4,420,175
Real estate in use		4,451,695			(1,172,896	)		3,278,799
Other fixed assets		6,830,232			729,965			7,560,197
(Accumulated depreciation)		(6,584,122	)		165,301			(6,418,821	)
INTANGIBLE ASSETS		3,272,570			(363,929	)		2,908,641
Other intangible assets		2,691,118			(393,512	)		2,297,606
(Accumulated amortization)		(1,877,893	)		29,583			(1,848,310	)
TOTAL ASSETS		686,248,444			(3,298,420	)		682,950,024
CURRENT AND LONG-TERM LIABILITIES		625,128,640			(3,468,866	)		621,659,774
DEPOSITS		194,916,650			(27,927	)		194,888,723
Demand deposits		28,055,643			7,241			28,062,884
Interbank deposits		1,292,724			(35,168	)		1,257,556
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS		155,636,079			17,439			155,653,518
Own portfolio		104,737,636			6,100			104,743,736
Third-party portfolio		39,454,749			11,339			39,466,088
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES		23,379,321			(26,054	)		23,353,267
Real estate, mortgage, credit and similar notes		11,455,288			(26,054	)		11,429,234
INTERBANK ACCOUNTS		4,459,842			(252,511	)		4,207,331
Correspondents		1,400,686			(252,511	)		1,148,175
INTERBRANCH ACCOUNTS		3,821,153			(5	)		3,821,148
Internal transfer of funds		54,638			(5	)		54,633
BORROWINGS AND ONLENDING		43,259,051			(64,261	)		43,194,790
BORROWINGS		14,397,000			(64,261	)		14,332,739
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION		58,489,523			(772,790	)		57,716,733
OTHER LIABILITIES		132,090,121			(2,342,757	)		129,747,364
Collection and payment of taxes and contributions		3,706,816			(330	)		3,706,486
Social and statutory		3,199,582			(35,114	)		3,164,468
Tax and social security		21,332,568			(679,726	)		20,652,842
Credit card operations		29,247,021			(1,306,264	)		27,940,757
Sundry		17,139,879			(321,323	)		16,818,556
DEFERRED INCOME		236,560			394,467			631,027
MINORITY INTEREST IN SUBSIDIARIES		3,658,172			(224,021	)		3,434,151
TOTAL LIABILITIES		686,248,444			(3,298,420	)		682,950,024

STATEMENT OF INCOME	Prior disclosure			Reclassification/ deconsolidation			Adjusted balances
INCOME FROM FINANCIAL OPERATIONS		58,399,028			(523,265	)		57,875,763
Loan, lease and other credit operations		37,905,017			(328,841	)		37,576,176
Securities and derivative financial instruments		13,697,814			(44,020	)		13,653,794
Financial income from insurance, pension plan and capitalization operations		3,345,086			(150,400	)		3,194,686
Foreign exchange operations		833,829			2			833,831
Compulsory deposits		2,617,282			(6	)		2,617,276
EXPENSES OF FINANCIAL OPERATIONS		(25,447,708	)		57,771			(25,389,937	)
Money market		(21,916,832	)		(21	)		(21,916,853	)
Financial expenses on technical provisions for pension plan and capitalization		(2,898,334	)		57,684			(2,840,650	)
Borrowings and onlending		(632,542	)		108			(632,434	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES		32,951,320			(465,494	)		32,485,826
RESULT OF LOAN LOSSES		(9,008,144	)		132,264			(8,875,880	)
Expenses for allowance for loan losses		(11,954,420	)		179,483			(11,774,937	)
Income from recovery of credits written off as loss		2,946,276			(47,219	)		2,899,057
GROSS INCOME FROM FINANCIAL OPERATIONS		23,943,176			(333,230	)		23,609,946
OTHER OPERATING REVENUES (EXPENSES)		(9,691,126	)		163,066			(9,528,060	)
Banking service fees		10,496,088			(1,426,061	)		9,070,027
Asset management		1,868,658			(29,536	)		1,839,122
Current account services		441,433			(18,311	)		423,122
Credit cards		4,898,373			(978,515	)		3,919,858
Sureties and credits granted		1,069,946			(1,248	)		1,068,698
Receipt services		975,589			(267	)		975,322
Other		1,242,089			(398,184	)		843,905
Income from bank charges		2,374,095			1,163,156			3,537,251
Result from insurance, pension plan and capitalization operations		2,051,389			(407,893	)		1,643,496
Personnel expenses		(9,414,166	)		278,279			(9,135,887	)
Other administrative expenses		(10,050,867	)		305,291			(9,745,576	)
Tax expenses		(3,065,836	)		88,892			(2,976,944	)
Equity in earnings of affiliates and other investments		180,481			140,526			321,007
Other operating revenues		798,510			(79,423	)		719,087
Other operating expenses		(3,060,820	)		100,299			(2,960,521	)
OPERATING INCOME		14,252,050			(170,164	)		14,081,886
NON-OPERATING INCOME		21,334			587			21,921
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		14,273,384			(169,577	)		14,103,807
INCOME TAX AND SOCIAL CONTRIBUTION		(3,958,488	)		118,276			(3,840,212	)
Due on operations for the period		(3,996,672	)		114,202			(3,882,470	)
Related to temporary differences		38,184			4,074			42,258
PROFIT SHARING		(168,500	)		342			(168,158	)
Management members - Statutory - Law No. 6,404 of 12/15/1976		(168,500	)		342			(168,158	)
MINORITY INTEREST IN SUBSIDIARIES		(713,235	)		50,959			(662,276	)
NET INCOME		9,433,161			-			9,433,161

m) Transaction with Carrefour

On April 14, 2011, Itaú Unibanco Holding and Carrefour Comércio e Indústria Ltda. ("Carrefour Brazil"), entered into an Agreement for the Purchase and Sale of Shares in order to purchase 49% of Banco CSF S.A. ("Banco Carrefour") for R$ 725 million, corresponding to a multiple Price/Profit for 2010 of 11.6. The completion of the transaction depends on the approval from the Central Bank of Brazil.

Report on Review

To the Directors and Stockholders

Itaú Unibanco Holding S.A.

Introduction

We have reviewed the accompanying interim financial statements of Itaú Unibanco Holding S.A. (the “Bank”) standing alone, which comprise the balance sheet as at September 30, 2011 and the related statements of income, changes in equity and cash flows for the nine-month period then ended, as well as the accompanying consolidated interim financial statements of Itaú Unibanco Holding S.A. and its subsidiaries (“Consolidated”), which comprise the consolidated balance sheet as at September 30, 2011and the related consolidated statements of income and cash flows for the nine-month period then ended, and a summary of significant accounting policies  and other explanatory information.

Management is responsible for the preparation and fair presentation of these interim financial statements in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN). Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Review Engagements (ISRE 2410- Review of Interim Financial Information Performed by the Independent Auditor of the Entity). A review of interim financial statements consists of  making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the standing alone interim Financial Statements

Based on our review, nothing has come to our attention that causes us to believe that the standing alone interim financial statements of Itaú Unibanco Holding S.A. (the “Bank”) referred to above are not presented fairly, in all material respects,  in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN).

Conclusion on the Consolidated interim Financial Statements

Based on our review, nothing has come to our attention that causes us to believe that the Consolidated interim financial statements of Itaú Unibanco Holding S.A. and subsidiaries (“Consolidated”) referred to the first paragraph are not presented fairly, in all material respects,  in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN).

Other matters

Interim statement of value added

We also have reviewed the interim statements of value added of Itaú Unibanco Holding S.A. and Itaú Unibanco Holding S.A. and subsidiaries for the nine-month period ended September 30, 2011, presented as supplementary information. These statements have been submitted to the same review procedures described in the second paragraph above and, based on our review, nothing has come to our attention that causes us to believe that these statements are not prepared consistently, in all material respects, with the interim financial statements taken as a whole.

São Paulo, October 31, 2011

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

Paulo Sergio Miron

Contador CRC 1SP173647/O-5

ITAÚ UNIBANCO HOLDING S.A.

CNPJ. 60.872.504/0001-23 A Listed 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 2011, 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, October 31, 2011.

IRAN SIQUEIRA LIMA

President

ALBERTO SOZIN FURUGUEM

Member

ARTEMIO BERTHOLINI

Member