EX-99.1 2 v326669_ex99-1.htm EXHIBIT 99.1

1.1

MANAGEMENT REPORT – January to September 2012

To our Stockholders:

We present the Management Report and the Interim Financial Statements of Itaú Unibanco Holding S.A. (Itaú Unibanco) and its subsidiaries for the period from January to September 2012, 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).

1) Highlights

1.1)

Corporate Events: Public Tender Offer (the “TO”) of Redecard S.A.

We highlight the main events related to Redecard “TO”:

In the Auction of September 24, 2012, we purchased 298,989,137 common shares issued by Redecard, representing 44.4% of its respective capital;

Both in environment of private trading and in auctions at BM&FBovespa, we purchased, by September 30, additional 100 shares of Redecard and in October, additional 23,987,343 common shares at the amount offered, with the accretion of SELIC variation for the period;

With the aforementioned purchases, we now hold 659,461,936 common shares, equivalent to a 98.0% interest;

All purchases of shares made as from September 24 and up to the date of this report are equivalent to the investment of R$ 11.3 billion;

On October 18, 2012, the Brazilian Securities and Exchange Commission (CVM) cancelled the Redecard’s register as a publicly-held company;

The bank expects to consummate the purchase of 100% of non-controlling interest by the end of 2012.

Redecard will continue as an independent company, operating in partnerships with other banks, with increased flexibility in pricing and synergies arising from integration. In addition, the combined use of infrastructures of Redecard and Itaú Unibanco will bring greater flexibility and will expedite the operations both for payment products offered to clients and offered to merchants.

1.2)

Investments in Technology

At the end of September, we announced the investment of R$ 10.4 billion in technology, innovation and services to be made in the period from 2012 to 2015, of which:

- R$ 2.7 billion in data processing systems;

- R$ 0.8 billion for acquisition of software;

- R$ 4.6 billion in system development; and

- R$ 2.3 billion in our Data Center in Mogi Mirim (under construction), one the largest technological centers in the world, with capacity to support the expansion of operations for the next three decades. The completion of the first phase is scheduled for 2014, and is expected to generate about 700 direct jobs, in addition to significantly contributing to the development of the economy, trade and qualification of labor in the region.

The amount of R$ 10.4 billion represents one of the largest private investments to favor the growth of the Brazilian economy, aiming at increasing efficiency, continuously improving the quality of services provided and the response time to customers.

1.2

1.3)

New Concept of Branch and Service

On an innovative way and making use of cutting-edge technology resources, we opened the concept branch in Villa Lobos mall (São Paulo – Capital city) in August, with a differentiated layout inspired in the visual concept of a store, providing more interaction between our managers and clients, in a more appealing, comfortable and safe environment. Itaú’s concept branch located in malls also operates in different working hours, i.e., from 12 noon 8 p.m.

1.4)

Other Highlights

Dow Jones Sustainability World Index (DJSI) - We were selected for the 13^th consecutive time to take part in the DJSI, the main sustainability index in the world, in its 2012/2013 edition.

We are the only Latin American bank to be in this index since its creation. The new portfolio is composed of 340 companies of 30 countries, of which only 9 Brazilian companies, three of which are related to the group, namely: Itaúsa, Duratex and Redecard.

In this edition, we reached the maximum rate (100%) of the banking sector in the criteria “Development of Human Capital”, “Engagement with Strategic Audiences” and “Anti-crime and fraud policies/ actions”, in addition to being assigned a score higher than the sector average in all assessment items.

Launch of the New Credit Card – In a pioneer action, we launched the Itaucard 2.0 credit card in August, with the lowest interest rates in the market, between 3.99% and 5.99%, in accordance with the client segment.

Aware that the Brazilian credit card market is growing at a fast pace and becoming increasingly more important as a banking instrument, we are constantly studying methods to improve our products and finding ways to reduce interest rates. In view of this challenge, we analyzed a number of credit card models in the international market and have we conducted, since 2010, a number of surveys and tests to get to this new credit card model.

Since its launch, 300 thousand clients have requested the card, which is offered as a "multiple card", with debit and credit functions.

Facebook - Our fan page reached over 2.7 million fans, and:

We have the fan page with the highest number of followers in the financial sector in the world, in accordance to a survey conducted in September 2012 by Social Bakers; and

Considering all Brazilian brands in all segments, we are the 8th largest fan page in Brazil.

Market Value on Stock Exchange – On September 30, 2012, we ranked as the 16th largest bank of the world under the market value criterion (R$ 138.4 billion), according to the Bloomberg ranking, despite of the Real depreciation, since the ranking is calculated in US dollars.

Standard & Poor´s Ratings – In July, Standard & Poor´s rating agency disseminated the reassessment of the risk ratings for Brazilian banks, and the rates attributed to Itaú Unibanco Holding improved regarding our capacity to pay short-term liabilities: Foreign Currency Funding (Short Term) from A-3 to A-2, and National Currency Funding (Short Term) from A-3 to A-2.

BMG - The Council for Economic Defense (CADE) approved the association between Itaú Unibanco and Banco BMG. Itaú will hold 70% and BMG 30% of the association, with the purpose of maximizing the performance of the institutions in the payroll advance loan market.

1.5)

Subsequent event

We inform the sale to Experian of our total interest in Serasa. Experian shall pay R$ 1.7 billion to Itaú Unibanco, in cash, for 601,403 SERASA’s shares, representing 16.14% of the company's capital. The result before taxes for the bank, arising from this sale, is estimated at R$ 1.5 billion in the fourth quarter of 2012.

1.3

2) Information and Indicators

The table below shows our main information and indicators. The complete interim financial statements and the Management’s Discussion & Analysis Report, which present further details on the results for the period, are available on the Itaú Unibanco website: www.itau-unibanco.com.br/ri, section Financial Information, option Financial Statements, click in BRGAAP and choose 2012.

	Jan to Sep/12			Jan to Sep/11			Change (%)			3rd Q/12			2nd Q/12			Change (%)

Statement of Income for the Period – R$ billion (1)
Gross income from financial operations		38.3			34.5			11.3	%		12.7			11.9			6.5	%
Expenses for allowance for loan losses		(18.0	)		(14.5	)		24.2	%		(5.9	)		(6.0	)		-0.8	%
Income from recovery of credits written off as loss		3.5			3.9			-11.2	%		1.2			1.1			2.9	%
Income from services, income from bank charges, and income from insurance, pension plan and capitalization		17.2			15.9			8.7	%		5.7			5.8			-1.6	%
Personnel, administrative and other operating expenses		(23.9	)		(23.4	)		2.4	%		(8.0	)		(7.9	)		1.9	%
Tax expenses		(3.3	)		(3.0	)		10.4	%		(1.1	)		(1.0	)		9.5	%
Income tax and social contribution		(2.8	)		(2.3	)		22.3	%		(1.0	)		(1.8	)		-44.8	%
Recurring net income		10.5			10.9			-3.2	%		3.4			3.6			-4.8	%
Net income		10.1			10.9			-7.7	%		3.4			3.3			2.1	%
Total dividends and interest on capital (net of taxes)		2.0			2.1			-7.2	%		0.5			0.8			-34.7	%

Shares – R$
Recurring net income per share (2)		2.33			2.41			-3.3	%		0.76			0.79			-4.8	%
Net income per share (2)		2.24			2.41			-7.3	%		0.75			0.73			2.1	%
Book value per share (2)		17.48			15.12			15.6	%		17.48			16.74			4.4	%
Number of outstanding shares – In thousands		4,518,244			4,512,243			0.1	%		4,518,244			4,517,639			0.0	%
Dividends and interest on capital per share (net of taxes)		0.4336			0.4668			-7.1	%		0.1138			0.1744			-34.7	%
Price of preferred share (PN) (3)		30.63			29.09			5.3	%		30.63			28.05			9.2	%
Price of preferred share (PN)/Net income		10.3			9.0			13.6	%		10.3			9.6			7.1	%
Price of preferred share (PN)/Stockholders’ equity		1.8			1.9			-8.9	%		1.8			1.7			4.6	%
Market capitalization – R$ billion (4)(5)		138.4			131.3			5.4	%		138.4			126.7			9.2	%

										Change (%)
	Sep 30 2012			Dec 31 2011 (6)			Sep 30 2011			Dec 31/11 to Sep 30/12			Sep 30/11 to Sep 30/12
Balance Sheet - R$ billion
Total assets		960.2			851.3			837.0			12.8	%		14.7	%
Loan portfolio with endorsements and sureties		417.6			397.0			382.2			5.2	%		9.3	%
Free, raised and managed own assets		1,261.8			1,144.5			1,116.6			10.3	%		13.0	%
Subordinated debt		48.5			39.0			37.6			24.6	%		29.0	%
Stockholders’ equity		79.0			71.3			68.2			10.7	%		15.8	%
Referential equity (Financial Conglomerate)		110.9			92.6			88.1			19.8	%		25.8	%
Performance Indices (%)
Recurring return on average equity – annualized		19.0	%		22.3	%		22.4	%		-3.3 p.p			-3.4 p.p
Return on average equity – annualized		18.2	%		22.3	%		22.5	%		-4.1 p.p			-4.3 p.p
Return on average assets - annualized		1.5	%		1.8	%		1.8	%		-0.3 p.p			-0.3 p.p
Recurring return on average assets - annualized		1.6	%		1.8	%		1.8	%		-0.2 p.p			-0.2 p.p
Efficiency ratio (7)		45.0	%		47.3	%		47.4	%		-2.3 p.p			-2.4 p.p
Basel ratio (financial conglomerate)		17.4	%		16.0	%		15.1	%		1.4 p.p			2.3 p.p
Fixed assets ratio (Financial Conglomerate)		45.5	%		48.6	%		49.8	%		-3.1 p.p			-4.3 p.p
Significant Data
Employees of Conglomerate		97,030			104,542			105,969			-7.2	%		-8.4	%
Employees Brazil		90,427			98,258			99,820			-8.0	%		-9.4	%
Employees Abroad		6,603			6,284			6,149			5.1	%		7.4	%
Number of service centers		32,833			33,753			34,178			-2.7	%		-3.9	%
Number of branches (units)		4,115			4,072			4,005			1.1	%		2.7	%
Number of service centers (units)		901			912			943			-1.2	%		-4.5	%
Number of ATMs (units)		27,817			28,769			29,230			-3.3	%		-4.8	%

(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) R$ 130.6 billion considering the closing quotation of common and preferred (ON and PN) shares multiplied by total outstanding shares of each type of shares;

(6) The performance indices refer to the period between January 1, 2011 and December 31, 2011;

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

1.4

3) Performance

3.1) Income

Net income for the period from January to September 2012 amounted to R$ 10.1 billion, with annualized return of 18.2% on average equity (22.5% in the same period of the previous year). Recurring net income was R$ 10.5 billion, with annualized return of 19.0%. The increase of 11.3% in income from financial operations (before allowance for loan losses) and 8.7% in income from services and bank charges, and income from insurance, pension plan and capitalization operations, as compared to the same period of 2011, added to the control over personnel and administrative expenses, that increase only 2.4% in the period, contributed to the result.

The efficiency ratio reached 45.0% accumulated up to September 2012, as compared to 47.4% achieved in the same period of 2011. The reduction of 240 bps is the result of the efforts of our Efficiency Project started in 2010. In this context, expenses not related to interest posted an increase of 2.7% in the first nine months of 2012 in relation to the same period of 2011, and for comparison purposes, inflation for the first nine months of the year was 3.77% (IPCA).

3.2) Assets

Total consolidated assets reached R$ 960.2 billion and consolidated stockholders’ equity totaled R$ 79.0 billion at September 30, 2012, with growth of 14.7% and 15.8% in the last 12 months, respectively, and 12.8% and 10.7% from January to September.

The diversification of our business is reflected in the composition of our funding and loan portfolio, reducing risks to specific segments, which may be more impacted by the volatility in economy, as follows:

Loan Portfolio and Default

At September 30, 2012, the balance of loan portfolio, including endorsements and sureties, reached R$ 417.6 billion, an increase of 5.2% and 9.3% as compared to December 31 and September 30, 2011, respectively. In conformity with the table below:

	R$ million
							Variation
	Sep 30, 12		Dec 31, 11		Sep 30, 11		Sep/12 – Dec/11			Sep/12 – Sep/11
Individuals		155,377		153,988		147,420		0.9	%		5.4	%
Credit Card		36,699		38,961		35,586		-5.8	%		3.1	%
Personal Loans + Own Payroll Loans		38,231		35,069		33,282		9.0	%		14.9	%
Vehicles		54,046		60,093		60,008		-10.1	%		-9.9	%
Mortgage Loans		16,687		13,450		12,599		24.1	%		32.4	%
Argentina/Chile/Uruguay/Paraguay		9,715		6,415		5,945		51.4	%		63.4	%
Companies		262,225		243,024		234,817		7.9	%		11.7	%
Corporate		155,038		138,384		133,181		12.0	%		16.4	%
Very Small, Small and Middle Market		89,448		90,378		88,479		-1.0	%		1.1	%
Argentina/Chile/Uruguay/Paraguay		17,739		14,263		13,157		24.4	%		34.8	%
Total with Endorsements and Sureties		417,603		397,012		382,236		5.2	%		9.3	%

1.5

Individuals – In Brazil, our Loan Portfolio to Individuals reached R$ 155.4 billion at September 30, 2012, 0.9% higher than that posted at December 31, 2011, as an effect of the change in the portfolio composition to mitigate risk. Highlights:

Mortgage Loans portfolio reached a growth of 24.1% as compared to the end of December 2011. The offer of Mortgage Loan is promoted by the network of branches, development companies and real estate agencies, as well as through partnerships with Lopes (LPS Brasil – Consultoria de Imóveis S.A.) and Coelho da Fonseca Empreendimentos Ltda., among others.

Products such as Personal Loans and Payroll Advance Loans posted a significant growth.

We are leaders in the Vehicle Financing and Credit Card segments, with balances at September 30, 2012 of R$ 54.0 billion and R$ 36.7 billion, respectively, with a reduction of 10.1% and 5.8% in the year.

Corporate Segment – In Brazil, our portfolio of Loan Operations to Companies reached R$ 262.2 billion at September 30, 2012, posting a growth in relation to December 31, 2011 and September 30, 2011. In the Very Small, Small and Middle Market Company segment, we serve companies with annual revenue of up to R$ 150 million, which are supported by a dedicated structure, with specific products and services. Through Itaú BBA, we serve around 2,500 of the largest corporate groups in Brazil, with a loan portfolio composed of loans in national and foreign currency, mandatory loans (BNDES Onlending, Rural Credit and Mortgage Loans) and guarantees.

In other countries, our loan portfolio for Mercosur operations (Argentina, Chile, Uruguay and Paraguay) posted a significant growth in the individual and corporate segments.

Default - Total default rate, considering the balance of operations overdue for over 90 days reached 5.1% at September 30, 2012, posting an increase of 20 bps as compared to December 31, 2011, and a improvement of 10 bps increase as compared to June 2012. This ratio reached 7.5% for the portfolio of credit to individuals and 3.3% for portfolio of credit to companies at the end of September 2012. The default rate from 15 to 90 days posted an improvement with a decrease between June and September 2012, showing signs of turning cycles of high delinquency from 7.5 to 7.2% in Individuals, from 2.2% to 1.8% in Companies and, in total, from 4.5% to 4.2%.

3.3) Funding & Funds Under Management

Free, raised and managed assets totaled R$ 1.3 trillion at September 30, 2012, an 13.0% growth as compared to September, 2011. Of this total, 41.2% refer to investment funds, managed portfolios and technical provisions for insurance, pension plan and capitalization, 30.6% to deposits, debentures, and funds from bills, and 28.2% to Own assets and other funding.

The increase in funding (net of Compulsory deposits and Cash and cash equivalents) enabled the improved Loan portfolio and funding ratio, reaching 93.6% at September 30, 2012.

Real Estate Credit Bills (LCI) – Funding operations through issues of LCIs increased 12.3% in the first nine months of 2012 as compared to the same period of the previous year.

3.4) Capital Strength

Basel ratio was 17.4% at the end of September, posting an increase of 230 bps, compared to the same period of the previous year, an event that evidences our strength in the capital basis.

Subordinated Notes - In the period from January to September 2012, we issued new subordinated debt level II, which significantly increased our capital basis. In the domestic market, the bank issued a total of R$ 10.1 billion in subordinated financial bills and in the foreign market three new placements, in the amount of US$ 550 million in January, of US$ 1,250 million in March, and US$ 1,375 million in July, totaling US$ 3.2 billion, were carried out. This amount accounts for approximately 29% of total foreign issues in dollar by Brazilian financial institutions in the capital markets, which showed, over the relevant period, the investors’ interest in the issues of Itaú Unibanco Holding.

1.6

4) Business

Commercial Bank - At the end of September 2012, we had 5,016 bank points of service, including regular branches and service centers (Postos de Atendimento Bancário - PAB) distributed in Brazil and abroad.

We kept the focus of Itaú Personnalité on gaining market share in investments and pension plan for the high income segment, and on continuing to expand the exclusive branch network, as we opened 19 new points in the first nine months of 2012, represent a 23.3% increase compared to the same period of the previous year.

With the purpose of providing more convenience and easiness, particularly to our account holders, we changed the service hours of 46 branches in malls that now open from 12 noon to 8 p.m., adjusting the operation of these points to the time of higher flow of people.

In the Private Bank segment, we are the largest bank in Latin America and remain the leader in the Brazilian market, with over 25.0% of market share, according to the Brazilian Financial and Capital Markets Association (ANBIMA), by providing services to over 5,350 economic groups.

In the Assets under Administration segment, in which Privatization Funds, Fixed Income, Equities Funds, Investment Clubs and Clients’ and the Group’s Portfolios are managed in Brazil and abroad, we reached R$ 432.3 billion in managed assets, with 19.3% market share and we rank 2^nd in the global administration ranking, according to ANBIMA.

We are leaders in providing of custody services and bookkeeping of shares. We have a total of R$ 898.3 billion in assets under custody, which represents 25.0% market share, according to ANBIMA, and we provide bookkeeping of shares services to 63.3% of total companies listed on the BM&FBovespa.

Kinea – In August, Kinea completed the funding of another FII (Mortgage Investment Fund) for Development with committed capital of R$ 197 million, focused on high-income clients. In September, the funding of a new set of Private Equity Funds in the amount of the committed capital, of approximately R$ 1 billion, was completed. With such funding, Kinea is among the largest independent managers in Brazil, with R$ 3.6 billion of assets under management.

Insurance, Life, Pension Plan and Capitalization – The operations in these businesses in terms of volume of revenue for premiums, social security contributions and capitalization certificates reached R$ 18.2 billion from January to September 2012 and technical provisions totaled R$ 87.2 billion at the end of September 2012, not including foreign operations.

From January to September, total funding of private pension plans reached R$ 13.5 billion, an increase of 48.2% as compared to the same period of the previous year, mainly influenced by the 56.2% increase in funding from VGBL product. Net funding, which represents total funding less redemptions and external portability, posted a 76.2% increase as compared to the first nine months of 2011.

Porto Seguro - Noteworthy is that we hold 30% of capital of the company, the leading company in residence and automobile insurance segment in Brazil. According to Susep (Superintendency of Private Insurance), in January to August, Porto Seguro held a market share of 25.4% in the automobile insurance segment and 27.0% in the residence insurance segment.

Consumer Credit – We are leaders in the consumer credit segment in Brazil, by means of Itaucard, Hipercard, and partnerships, offering a diversified 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. From January through September 2012, the transacted amount reached R$ 125.2 billion, an 13.3% increase in relation to the same period of 2011.

1.7

Itaú BBA – In the investment banking area, we highlight as follows:

Fixed Income - in the period from January to August 2012, we took part in operations of debentures, promissory notes and securitization, which totaled R$ 12.6 billion. In the ANBIMA ranking of distribution of fixed income from January to August 2012, we reached the first place in volume, with 28.8% market share. In international issues of fixed income, we acted as the joint book runner of offerings, with total volume of US$ 17.3 billion, reaching the first place in the ranking of Issues of Brazilian Companies for September 2012 disseminated by BondRadar.

Mergers and Acquisitions – we provide financial advisory on 50 transactions by September 2012 and achieved the leadership of the Thomson Reuters ranking in volume of operations, accumulating the amount of US$ 14.9 billion.

Itaú Corretora – by September 2012, we were ranked fifth among the brokerage companies, with a 5.5% market volume. In Futures Market, we ended that period with 9.4% market share, ranked fourth among the brokerage companies.

We highlight the following operations in the Wholesale banking activity of Itaú BBA:

The loan portfolio and joint obligations of Itaú BBA reached the amount of R$ 155.0 billion, a 16.4% increase as compared to September 2011. Financing positions in foreign trade posted a growth of 23.9%, as compared to September 2011.

Derivatives – Itaú BBA maintained its leadership in CETIP (Clearing House for Custody and Financial Settlement of Securities) in derivative operations with companies, mainly in operations hedging the exposures to foreign currencies, interest rates and commodities. The volume of contracted operations from January to September 2012 was 6.2% higher than in the same period of prior year.

Project Finance – In the period from January to September 2012, the bank was contracted to work in 60 structuring and/or advisory projects which exceeded R$ 75 billion in investments.

Activities Abroad - In addition to Brazil, we acted in regions such as: Latin America, Europe, North America, Middle East and Asia. In the period from January to September, our business abroad posted recurring net income of R$ 1.5 billion, with total assets of R$ 189.1 billion at September 30, 2012, with the opening of 13 new branches. The Loan portfolio reached R$ 25.6 billion in the first nine months, with a 43.8% increase as compared to the same period of 2011.

We are in the pre-operating phase in the organization of Itaú BBA Colômbia S.A. – Corporación Financiera. For this reason, in July and September 2012, capitalization was carried out in the company organized in Colombia, totaling approximately US$ 200 million. The start-up is scheduled for the last quarter of 2012, after obtaining the operating license from the local regulatory authority.

5) People

Itaú Unibanco had the support of approximately 97 thousand people at the end of September 2012, including approximately 6.6 thousand employees in foreign units. The employees’ fixed compensation plus charges and benefits totaled R$ 6.9 billion in the first nine months of the year. Welfare benefits granted to employees and their dependants totaled R$ 949.0 million. In addition, over R$ 177.4 million were invested in training programs during the period, totaling 1.6 million hours.

6) Sustainability and Corporate Governance

In August, we made available Itaú Unibanco’s new portal on the responsible use of Money, (www.itau.com.br/usoconsciente), an innovative financial education tool which purpose is to help people to make better use of money in different times of their lives. The bank’s clients and non-clients have access to topics addressing, on a simple basis, everyday situations such as: hints to get out of the red; saving without giving up consumption; talking about money within the family, among others, and they can also send questions that will be answered by the institution’s experts.

1.8

Strengthening our commitment to the transparency and communication with the market, during the first nine months of 2012:

we took part in 19 conferences and road shows in Brazil and abroad, which contributed to strengthen our relationship with stockholders, analysts and investors in the Brazilian and international markets;

we held 20 of the 22 meetings scheduled for the 2012 Apimec Cycle for all regions of Brazil. With an innovative language, the presentation of these meetings involves economic aspects of the country and the main information of our institution, such as financial performance, business areas and outlook for the sector. The next two Apimec meetings will occur on November 7 in Rio de Janeiro, and on November 28 in Porto Alegre;

we were present in 11 financial education events (Expo Money) all over Brazil, and a total of 13 fairs is schedule up to the end of 2012.

On September 25, we held for the 17^th consecutive year the Apimec meeting in São Paulo, which was attended by 572 people among stockholders, analysts and other stakeholders, and other 500 people followed the event live on the internet.

7) Social and cultural investments

Social and cultural investments are aimed at anticipating changes, improving learning experiences and focusing on projects and initiatives that lead to transformation in society.

Aware of our responsibility, in the period from January to September 2012 we invested R$ 130.8 million in education, culture and sports actions.

Our main initiatives in the period from January to September were:

Instituto Unibanco: in the third quarter of 2012, Instituto Unibanco held two national qualification programs, gathering approximately 600 people belonging to the seven State Education Departments that develop the Jovem do Futuro (Youth with a Future) Project. Additionally, 27 qualification programs were held in the respective States, with approximately 1,300 school managers, and three qualification programs with 400 students of the Agentes Jovens (Young Agents) program.

Fundação Itaú Social: in August and September, non-government organizations enrolled to apply for funds from Fundo Itaú Excelência Social (Fies – Itaú Social Excellence Fund). In 2012, the Fund will invest R$ 2.4 million in up to 14 NGOs acting in the education area. Each chosen organization will also receive financial support, in addition to technical support, monitoring and qualification of their managers, offered by Fundação Itaú Social.

Itaú Cultural: from January to September 2012, approximately 198 thousand people visited Itaú Cultural. The site of the institute had 9 million accesses, of which 7 million accessed the virtual encyclopedias. In the same period, Auditório Ibirapuera received over 117 thousand visitors, between in-house and off-site presents, and 31 shows were held there. The institution invested over R$ 37.7 million in cultural projects and initiatives, of which R$ 13.2 million (35%) under the Rouanet Law.

8) Awards and Recognition

Institutional Investor Magazine – considering eight awards we were in first place in six: Best Investor Relations nominated by the Sell and Buy Side; Best CEO nominated by the Sell and Buy Side; Best CFO nominated by the Buy Side and Best Investor Relations Professional nominated by the Buy Side.

Ranked first among the Latin American financial institutions in Top 1000 World Banks 2012 (The Banker magazine – Financial Times);

Acknowledged in the Banks Category in the Época Negócios 360^o (Yearly Issue Época Negócios 360^o) (Época Negócios magazine) and The Best of Dinheiro 2012 (Isto É Dinheiro magazine);

1.9

Ranked 1^st in the Maiores e Melhores (Best and Largest) 2012 (Exame magazine) in the list of the 50 largest Brazilian Banks by equity;

1^stplace since 2007 in the Banks category of Top of Mind Internet Award (Datafolha-UOL), a survey that acknowledges professionals and brands that value the online media;

Acknowledged as one of the 10 best ombudsman services in Brazil, in the Ouvidorias Brasil 2012 (Ombudsman Services Brazil 2012) Award;

Business - Itaú BBA was acknowledged for the third time as the Most Innovative Investment Bank in Latam, the most innovative investment bank in Latin America (The Banker - Financial Times), by the fifth consecutive time as the Best Cash Management Brasil (Euromoney magazine), and elected as the Best Investment Bank in Brazil 2012 (Euromoney Awards for Excellence 2012);

People - Itaú Unibanco was considered one of the Great Places to Work (Great Places to Work in partnership with Época magazine), Empresa dos Sonhos dos Jovens (Dream Companies to Work by Youngsters) (Cia. de Talentos), and the Best Companies to Work (Você S.A. Guide) out of 150 companies;

Sustainability - Green Project Awards Brazil for the best mobilization campaign with the Bike Rio project, Época Empresa Verde (Green Company Época) Award (Época magazine), as one of the companies with good environmental practices, and awarded in three categories in the Empresário Amigo do Esporte (Entrepreneur Friend of Sport) Award (Ministry of Sport), and it is one of the four companies that most invested in this sector under the Incentive Law.

9) 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 2012, 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:

January 24, 2012 – vulnerability analysis and application intrusion tests on the internet perimeter;

February 17 and August 2, 2012 – review of aspects related to the business continuity program;

February 23, March 29, July 4 and July 31, 2012 – acquisition of technical material;

February 28, 2012 – consulting services for obtaining GIPS (Global Investment Performance Standards) certification;

March 6, June 12, and August 10, 2012 – attendance at courses open to the public, related to finance and accounting;

April 27 and August 7, 2012 – consulting services in the authorization request to the regulatory body for opening a subsidiary.

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.

1.10

10) 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$ 3.2 billion, corresponding to only 1.4% 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 22, 2012).

2.1

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
ALFREDO EGYDIO SETUBAL	CAIO IBRAHIM DAVID
CANDIDO BOTELHO BRACHER	CLAUDIA POLITANSKI
DEMOSTHENES MADUREIRA DE PINHO NETO	MARCOS DE BARROS LISBOA
GUSTAVO JORGE LABOISSIÈRE LOYOLA	RICARDO BALDIN
HENRI PENCHAS	SÉRGIO RIBEIRO DA COSTA WERLANG
ISRAEL VAINBOIM
NILDEMAR SECCHES
PEDRO LUIZ BODIN DE MORAES	Directors
RICARDO VILLELA MARINO	ALEXSANDRO BROEDEL LOPES
	ANA TEREZA DE LIMA E SILVA PRANDINI
	EDUARDO HIROYUKI MIYAKI
	EMERSON MACEDO BORTOLOTO
AUDIT COMMITTEE	ROBERT GEORGE STRIBLING (**)
President	RODRIGO LUÍS ROSA COUTO
GUSTAVO JORGE LABOISSIÈRE LOYOLA	ROGÉRIO PAULO CALDERÓN PERES

Members
ALKIMAR RIBEIRO MOURA	(*) Investor Relations Director
EDUARDO AUGUSTO DE ALMEIDA GUIMARÃES	(**) Elected at Board Meeting on July 23, 2012. Awaiting BACEN approval.
GUY ALMEIDA ANDRADE
LUIZ ALBERTO FIORE

FISCAL COUNCIL
President
IRAN SIQUEIRA LIMA

Members
ALBERTO SOZIN FURUGUEM	Accountant
LUIZ ALBERTO DE CASTRO FALLEIROS	CARLOS ANDRÉ HERMESINDO DA SILVA
	CRC - 1SP281528/O-1

2.2

ITAÚ UNIBANCO S.A.

Chief Executive Officer and General Manager	Directors (continued)
ROBERTO EGYDIO SETUBAL	FERNANDO JOSÉ COSTA TELES
	FLAVIO AUGUSTO AGUIAR DE SOUZA
Executive Vice-Presidents	FRANCISCO VIEIRA CORDEIRO NETO
ALEXANDRE DE BARROS	GUILHERME MARTINS VASCONCELOS
ALFREDO EGYDIO SETUBAL	HENRIQUE PINTO ECHENIQUE
JOSÉ CASTRO ARAÚJO RUDGE	IBRAHIM JOSÉ JAMHOUR
JOSÉ ROBERTO HAYM	JOÃO ANTONIO DANTAS BEZERRA LEITE
LUÍS OTAVIO MATIAS	JOÃO LUIZ DE MEDEIROS
MÁRCIO DE ANDRADE SCHETTINI	JORGE LUIZ VIEGAS RAMALHO
MARCO AMBROGIO CRESPI BONOMI	JOSÉ FÉLIX VALENCIA RÍOS
MARCOS DE BARROS LISBOA	JOSÉ ISERN
RICARDO VILLELA MARINO	JOSÉ VIRGILIO VITA NETO
SÉRGIO RIBEIRO DA COSTA WERLANG	LEILA CRISTIANE BARBOZA BRAGA DE MELO
	LUÍS EDUARDO GROSS SIQUEIRA CUNHA
Executive Directors	LUIS TADEU MANTOVANI SASSI
ANDRÉ SAPOZNIK	LUIZ ANTONIO NOGUEIRA DE FRANÇA
CAIO IBRAHIM DAVID	LUIZ EDUARDO LOUREIRO VELOSO
CARLOS EDUARDO MONICO	LUIZ FERNANDO BUTORI REIS SANTOS
CELSO SCARAMUZZA	LUIZ SEVERIANO RIBEIRO
CLAUDIA POLITANSKI	MARCELO BOOCK
FERNANDO MARSELLA CHACON RUIZ	MARCELO DA COSTA LOURENÇO
GUSTAVO ADOLFO FUNCIA MURGEL	MARCELO LUIS ORTICELLI
LUIS ANTONIO RODRIGUES	MARCO ANTONIO SUDANO
OSVALDO DO NASCIMENTO	MARCOS ANTÔNIO VAZ DE MAGALHÃES
	MARCOS AUGUSTO CAETANO DA SILVA FILHO
Directors	MARCOS SILVA MASSUKADO
ADILSO MARTINS DE LIMA	MARCOS VANDERLEI BELINI FERREIRA
ADRIANO BRITO DA COSTA LIMA	MARIA IRENE GARCETE DE GAVILAN
ADRIANO CABRAL VOLPINI	MARIO LUIZ AMABILE
ALBERTO FERNANDES	MESSIAS DOS SANTOS ESTEVES
ALEXANDRE JADALLAH AOUDE	MILTON MALUHY FILHO
ALEXSANDRO BROEDEL LOPES	NATACHA LITVINOV
ANA CARLA ABRÃO COSTA	OSVALDO JOSÉ DAL FABBRO
ANA TEREZA DE LIMA E SILVA PRANDINI	PAULO EIKIEVICIUS CORCHAKI
ANDRÉA MATTEUCCI PINOTTI CORDEIRO	PAULO MEIRELLES DE OLIVEIRA SANTOS
CARLOS EDUARDO DE CASTRO	RENATA HELENA DE OLIVEIRA TUBINI
CARLOS EDUARDO MACCARIELLO	RENÊ MARCELO GONÇALVES
CARLOS HENRIQUE DONEGÁ AIDAR	RICARDO LIMA SOARES
CARLOS ORESTES VANZO	RICARDO ORLANDO
CESAR PADOVAN	RICARDO RIBEIRO MANDACARU GUERRA
CÍCERO MARCUS DE ARAÚJO	RICARDO URQUIJO LAZCANO
CINTIA CARBONIERI ARAÚJO	ROBERTO FERNANDO VICENTE
CLAUDIO CÉSAR SANCHES	ROBERTO MASSARU NISHIKAWA
CLAUDIO JOSÉ COUTINHO ARROMATTE	RODRIGO LUIS ROSA CUTO
COSMO FALCO	ROGERIO CARVALHO BRAGA
CRISTIANE MAGALHÃES TEIXEIRA PORTELLA	ROGÉRIO PAULO CALDERÓN PERES
CRISTINA CESTARI SPADA	ROMILDO GONÇALVES VALENTE
DANIEL LUIZ GLEIZER	ROONEY SILVA
EDILSON PEREIRA JARDIM	SERGIO GUILLINET FAJERMAN
ERNESTO ANTUNES DE CARVALHO	SERGIO SOUZA FERNANDES JÚNIOR
FABIO DI PACE MENEZES	VILMAR LIMA CARREIRO
FERNANDO DELLA TORRE CHAGAS	WAGNER BETTINI SANCHES

2.3

BANCO ITAÚ BBA S.A.

BOARD OF DIRECTORS

Chairman	Directors
ROBERTO EGYDIO SETUBAL	ALBERTO ZOFFMANN DO ESPÍRITO SANTO
	ALEXANDRE ENRICO SILVA FIGLIOLINO
Vice-Chairmen	ÁLVARO DE ALVARENGA FREIRE PIMENTEL
ALFREDO EGYDIO SETUBAL	ANDRÉ CARVALHO WHYTE GAILEY
FERNÃO CARLOS BOTELHO BRACHER	ANDRÉ DEL BEL CURY
	ANDRÉ FERRARI
Members	ANTONIO JOSÉ CALHEIROS RIBEIRO FERREIRA
ANTONIO CARLOS BARBOSA DE OLIVEIRA	ANTONIO SANCHEZ JUNIOR
CANDIDO BOTELHO BRACHER	EDUARDO CARDOSO ARMONIA
EDUARDO MAZZILLI DE VASSIMON	EDUARDO CORSETTI
HENRI PENCHAS	EMERSON SAVI JUNQUEIRA
JOÃO DIONÍSIO FILGUEIRA BARRETO AMOÊDO	FABIO MASSASHI OKUMURA
JOSÉ ROBERTO HAYM	FERNANDO HENRIQUE MEIRA DE CASTRO
SÉRGIO RIBEIRO DA COSTA WERLANG	FLÁVIO DELFINO JUNIOR
	GILBERTO FRUSSA
EXECUTIVE BOARD	GUSTAVO HENRIQUE PENHA TAVARES
Chief Executive Officer	ILAN GOLDFAJN
CANDIDO BOTELHO BRACHER	JOÃO CARLOS DE GÊNOVA
	JOÃO MARCOS PEQUENO DE BIASE
Managing Vice-Presidents	JORGE BEDRAN JETTAR
ALBERTO FERNANDES	JOSÉ AUGUSTO DURAND
DANIEL LUIZ GLEIZER	LUIZ FELIPE MONTEIRO ARCURI TREVISAN
JEAN-MARC ROBERT NOGUEIRA BAPTISTA ETLIN	MARCELLO PECCININI DE CHIARO
	MARCELO ARIEL ROSENHEK
	MARCO ANTONIO SUDANO
Executive Directors	MARCOS AUGUSTO CAETANO DA SILVA FILHO
ALEXANDRE JADALLAH AOUDE	MÁRIO LÚCIO GURGEL PIRES
ANDRÉ LUÍS TEIXEIRA RODRIGUES	MÁRIO LUÍS BRUGNETTI
ELAINE CRISTINA ZANATTA RODRIGUES VASQUINHO	PAULO DE PAULA ABREU
FERNANDO FONTES IUNES	RODERICK SINCLAIR GREENLEES
MARCELO TREVISAN MARANGON	RODRIGO PASTOR FACEIRO LIMA
MILTON MALUHY FILHO	THALES FERREIRA SILVA
	VANESSA LOPES REISNER

BANCO ITAUCRED FINANCIAMENTOS S.A.	ITAÚ SEGUROS S.A.

Chief Executive Officer	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
ADRIANO CABRAL VOLPINI	ANDRÉ HORTA RUTOWITSCH
ALEXSANDRO BROEDEL LOPES	ANTONIO EDUARDO MÁRQUEZ DE FIGUEIREDO TRINDADE
ANA TEREZA DE LIMA E SILVA PRANDINI	JOSÉ CASTRO ARAÚJO RUDGE
CLÁUDIO JOSÉ COUTINHO ARROMATTE
EVANIR COUTINHO USSIER	Directors
FÁBIO MASSASHI OKUMURA	ADRIANO CABRAL VOLPINI (*)
FERNANDO JOSÉ COSTA TELES	ANA TEREZA DE LIMA E SILVA PRANDINI (*)
HENRIQUE PINTO ECHENIQUE	ALEXSANDRO BROEDEL LOPES (**)
LUÍS FERNANDO STAUB	HENRIQUE PINTO ECHENIQUE (**)
MARCOS ANTÔNIO VAZ DE MAGALHÃES	MARIO LUIZ AMABILE (**)
MARCOS VANDERLEI BELINI FERREIRA
MARIO LUIZ AMABILE

	(*) Elected at EGM on April 12, 2012. Awaiting Susep approval.
	(**) Elected at EGM on May 31, 2012. Awaiting Susep approval.

3.1

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

ASSETS	NOTE		09/30/2012			09/30/2011
CURRENT ASSETS				706,038,456			623,106,858
CASH AND CASH EQUIVALENTS				13,103,962			11,509,343
INTERBANK INVESTMENTS		4b and 6		162,895,073			98,414,594
Money market				142,631,765			74,361,027
Money market – Assets Guaranteeing Technical Provisions - SUSEP		11b		2,550,201			3,326,861
Interbank deposits				17,713,107			20,726,706
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		4c, 4d and 7		180,685,791			150,164,831
Own portfolio				50,363,127			40,465,820
Subject to repurchase commitments				29,028,595			27,437,426
Pledged in guarantee				6,061,433			7,727,318
Securities under resale agreements with free movement				88,986			2,494
Deposited with the Central Bank				12,591,352			3,067,191
Derivative financial instruments				6,289,799			9,273,318
Assets guaranteeing technical provisions - PGBL/VGBL fund quotas		11b		69,856,629			54,090,499
Assets guaranteeing technical provisions – other securities		11b		6,405,870			8,100,765
INTERBANK ACCOUNTS				68,050,957			101,137,487
Pending settlement				3,642,547			3,631,417
Central Bank deposits				64,359,216			97,409,077
National Housing System (SFH)				1,106			392
Correspondents				32,654			66,679
Interbank onlending				15,434			29,922
INTERBRANCH ACCOUNTS				45,053			78,356
LOAN, LEASE AND OTHER CREDIT OPERATIONS		8		190,369,182			176,072,265
Operations with credit granting characteristics		4e		205,865,976			190,802,388
(Allowance for loan losses)		4f		(15,496,794	)		(14,730,123	)
OTHER RECEIVABLES				87,441,291			82,518,418
Foreign exchange portfolio		9		40,328,553			39,069,675
Income receivable				1,278,004			1,233,949
Transactions with credit card issuers		4e		17,466,525			14,117,272
Receivables from insurance and reinsurance operations		4mI and 11b		3,832,954			3,769,044
Negotiation and intermediation of securities				2,612,552			2,594,693
Sundry		13a		21,922,703			21,733,785
OTHER ASSETS		4g		3,447,147			3,211,564
Assets held for sale				151,515			126,955
(Valuation allowance)				(42,148	)		(52,203	)
Unearned premiums of reinsurance		4mI		703,734			593,043
Prepaid expenses		4g and 13b		2,634,046			2,543,769
LONG-TERM RECEIVABLES				231,030,307			202,687,396
INTERBANK INVESTMENTS		4b and 6		447,218			1,104,035
Money market				5			5
Interbank deposits				447,213			1,104,030
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		4c, 4d and 7		53,870,599			35,419,373
Own portfolio				33,015,876			20,521,095
Subject to repurchase commitments				11,117,179			7,714,655
Pledged in guarantee				611,621			1,587,168
Securities under resale agreements with free movement				-			97,073
Derivative financial instruments				4,755,155			4,587,035
Assets guaranteeing technical provisions – other securities		11b		4,370,768			912,347
INTERBANK ACCOUNTS - National Housing System (SFH)				665,268			660,151
LOAN, LEASE AND OTHER CREDIT OPERATIONS		8		141,758,683			134,487,893
Operations with credit granting characteristics		4e		153,944,316			144,476,298
(Allowance for loan losses)		4f		(12,185,633	)		(9,988,405	)
OTHER RECEIVABLES				32,944,074			29,484,644
Foreign exchange portfolio		9		621,334			1,204,141
Sundry		13a		32,322,740			28,280,503
OTHER ASSETS – Prepaid expenses		4g and 13b		1,344,465			1,531,300
PERMANENT ASSETS				23,147,466			11,200,050
INVESTMENTS		4h and 15a Il		3,324,158			2,897,961
Investments in affiliates				2,365,544			1,797,668
Other investments				1,163,906			1,295,877
(Allowance for losses)				(205,292	)		(195,584	)
REAL ESTATE IN USE		4i and 15b		5,330,113			4,920,687
Real estate in use				3,367,455			3,272,255
Other fixed assets				9,177,275			8,580,621
(Accumulated depreciation)				(7,214,617	)		(6,932,189	)
GOODWILL		4j and 15b		10,068,929			95,087
INTANGIBLE ASSETS		4k and 15b		4,424,266			3,286,315
Acquisition of rights to credit payroll				1,668,789			2,469,891
Other intangible assets				4,812,760			3,196,846
(Accumulated amortization)				(2,057,283	)		(2,380,422	)
TOTAL ASSETS				960,216,229			836,994,304

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

3.2

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Balance Sheet (Note 2a)

(In thousands of Reais)

LIABILITIES	NOTE		09/30/2012			09/30/2011
CURRENT LIABILITIES				518,642,703			445,193,576
DEPOSITS		4b and 10b		159,641,813			155,075,923
Demand deposits				29,817,694			26,069,204
Savings deposits				77,413,953			63,334,088
Interbank deposits				9,261,769			1,834,838
Time deposits				43,148,397			63,837,793
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS		4b and 10c		134,124,016			99,009,345
Own portfolio				67,401,791			61,186,174
Third-party portfolio				66,487,407			36,047,478
Free portfolio				234,818			1,775,693
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES		4b and 10d		32,853,856			21,397,491
Real estate, mortgage, credit and similar notes				23,008,711			14,486,823
Debentures				2,616,549			61,008
Foreign borrowings through securities				7,228,596			6,849,660
INTERBANK ACCOUNTS				4,303,979			4,610,250
Pending settlement				3,167,626			3,464,153
Correspondents				1,136,353			1,146,097
INTERBRANCH ACCOUNTS				4,055,688			4,013,370
Third-party funds in transit				4,048,132			4,012,581
Internal transfer of funds				7,556			789
BORROWINGS AND ONLENDING		4b and 10e		30,292,811			30,860,511
Borrowings				18,623,732			18,206,749
Onlending				11,669,079			12,653,762
DERIVATIVE FINANCIAL INSTRUMENTS		4d and 7h		5,036,698			7,784,931
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION		4m II and 11a		32,066,010			10,497,508
OTHER LIABILITIES				116,267,832			111,944,247
Collection and payment of taxes and contributions				4,517,450			4,635,777
Foreign exchange portfolio		9		40,495,090			38,536,542
Social and statutory		16b II		2,335,915			2,276,523
Tax and social security contributions		4n, 4o and 14c		8,375,074			8,128,513
Negotiation and intermediation of securities				5,099,896			3,197,918
Credit card operations		4e		38,979,670			33,009,258
Subordinated debt		10f		4,631,588			8,782,333
Sundry		13c		11,833,149			13,377,383
LONG-TERM LIABILITIES				360,660,808			321,191,486
DEPOSITS		4b and 10b		72,277,542			65,599,408
Interbank deposits				254,083			322,500
Time deposits				72,023,459			65,276,908
DEPOSITS RECEIVED UNDER SECURITIES REPURCHASE AGREEMENTS		4b and 10c		111,147,697			96,559,948
Own portfolio				94,345,489			84,931,761
Free portfolio				16,802,208			11,628,187
FUNDS FROM ACCEPTANCES AND ISSUANCE OF SECURITIES		4b and 10d		24,190,179			19,567,731
Real estate, mortgage, credit and similar notes				16,814,606			11,013,838
Debentures				-			1,053,441
Foreign borrowings through securities				7,375,573			7,500,452
BORROWINGS AND ONLENDING		4b and 10e		26,560,967			27,011,632
Borrowings				3,370,086			3,592,093
Onlending				23,190,881			23,419,539
DERIVATIVE FINANCIAL INSTRUMENTS		4d and 7h		4,088,688			3,425,611
TECHNICAL PROVISION FOR INSURANCE, PENSION PLAN AND CAPITALIZATION		4n II and 11a		55,215,048			59,672,187
OTHER LIABILITIES				67,180,687			49,354,969
Foreign exchange portfolio		9		629,586			1,222,095
Tax and social security contributions		4n, 4o and 14c		13,041,071			12,319,640
Subordinated debt		10f		43,912,152			28,855,366
Sundry		13c		9,597,878			6,957,868
DEFERRED INCOME		4p		812,922			862,055
MINORITY INTEREST IN SUBSIDIARIES		16e		1,121,285			1,541,474
STOCKHOLDERS’ EQUITY		16		78,978,511			68,205,713
Capital				45,000,000			45,000,000
Capital reserves				812,352			640,515
Revenue reserves				33,503,773			24,520,164
Asset valuation adjustment		4c, 4d and 7d		1,189,720			(250,829	)
(Treasury shares)				(1,527,334	)		(1,704,137	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY				960,216,229			836,994,304

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

3.3

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Income (Note 2a)

(In thousands of Reais)

			01/01 to			01/01 to
	NOTE		09/30/2012			09/30/2011
INCOME FROM FINANCIAL OPERATIONS				76,334,176			75,153,793
Loan, lease and other credit operations				45,900,362			43,818,804
Securities and derivative financial instruments				19,557,163			19,834,091
Financial income from insurance, pension plan and capitalization operations		11c		5,314,080			4,139,521
Foreign exchange operations				1,001,844			384,266
Compulsory deposits				4,560,727			6,977,111
EXPENSES OF FINANCIAL OPERATIONS				(37,989,523	)		(40,696,256	)
Money market				(31,515,987	)		(35,202,992	)
Financial expenses on technical provisions for pension plan and capitalization		11c		(4,803,337	)		(3,640,425	)
Borrowings and onlending				(1,670,199	)		(1,852,839	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES				38,344,653			34,457,537
RESULT OF ALLOWANCE FOR LOAN LOSSES		8d I		(14,482,032	)		(10,544,131	)
Expenses for allowance for loan losses				(17,959,140	)		(14,458,717	)
Income from recovery of credits written off as loss				3,477,108			3,914,586
GROSS INCOME FROM FINANCIAL OPERATIONS				23,862,621			23,913,406
OTHER OPERATING REVENUES (EXPENSES)				(10,278,068	)		(11,041,743	)
Banking service fees		13d		10,767,367			10,209,777
Asset management				2,232,894			1,945,688
Current account services				453,188			498,753
Credit cards				4,748,607			4,428,217
Sureties and credits granted				1,165,739			1,280,228
Receipt services				1,051,608			988,124
Other				1,115,331			1,068,767
Income from bank charges		13e		4,348,110			3,750,327
Result from insurance, pension plan and capitalization operations		11c		2,121,522			1,895,564
Personnel expenses		13f		(10,286,591	)		(10,048,366	)
Other administrative expenses		13g		(10,549,893	)		(10,266,329	)
Tax expenses		4o and 14a II		(3,317,217	)		(3,005,351	)
Equity in earnings of affiliates and other investments		15a lll		189,878			(36,666	)
Other operating revenues		13h		193,633			303,538
Other operating expenses		13i		(3,744,877	)		(3,844,237	)
OPERATING INCOME				13,584,553			12,871,663
NON-OPERATING INCOME				(285,951	)		189,134
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING				13,298,602			13,060,797
INCOME TAX AND SOCIAL CONTRIBUTION		4o and 14a I		(2,531,032	)		(1,416,624	)
Due on operations for the period				(6,769,073	)		(5,234,377	)
Related to temporary differences				4,238,041			3,817,753
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of 12/15/1976				(122,972	)		(163,356	)
MINORITY INTEREST IN SUBSIDIARIES		16e		(542,453	)		(540,936	)
NET INCOME				10,102,145			10,939,881
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES				4,517,937,352			4,534,808,116
NET INCOME PER SHARE – R$				2.24			2.41
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)				17.48			15.12

EXCLUSION OF NONRECURRING EFFECTS		2a and 22k		438,832			(45,263	)
NET INCOME WITHOUT NONRECURRING EFFECTS				10,540,977			10,894,618
NET INCOME PER SHARE – R$				2.33			2.41

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

3.4

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Cash Flows

(In thousands of Reais)

	NOTE		01/01 to 09/30/2012			01/01 to 09/30/2011
ADJUSTED NET INCOME				31,307,156			26,188,624
Net income				10,102,145			10,939,881
Adjustments to net income:				21,205,012			15,248,743
Granted options recognized				151,500			121,902
Adjustment to market value of securities and derivative financial instruments (assets/liabilities)		7i		930,095			644,804
Effects of changes in exchange rates on cash and cash equivalents				(1,246,762	)		(1,927,488	)
Allowance for loan losses				17,959,140			14,458,717
Interest and foreign exchange expense from operations with subordinated debt				3,310,483			3,292,494
Interest expense from operations with debentures				132,004			137,235
Financial expenses on technical provisions for pension plan and capitalization				4,803,337			3,640,425
Depreciation and amortization		15b		1,645,983			1,617,310
Adjustment to legal liabilities – tax and social security				634,853			486,145
Adjustment to provision for contingent liabilities				335,811			(201,799	)
Deferred taxes				(4,238,041	)		(3,817,753	)
Equity in earnings of affiliates and other investments		15a lll		(189,878	)		36,666
Interest and foreign exchange income from available-for-sale securities				(3,706,845	)		(3,052,056	)
Interest and foreign exchange income from held-to-maturity securities				(401,047	)		(324,038	)
(Gain) loss from sale of available-for-sale financial assets		7f		879,625			148,486
(Gain) loss from sale of investments				(235,252	)		(351,820	)
(Gain) loss from sale of foreclosed assets				(15,774	)		2,871
(Gain) loss from sale of fixed assets				6,641			(89,418	)
(Gain) loss from rescission of operations of intangible assets				1,517			(1,080	)
Minority interest				542,453			540,936
Other				(94,831	)		(113,796	)
CHANGE IN ASSETS AND LIABILITIES				18,534,824			(28,034,551	)
(Increase) decrease in Assets				(48,719,246	)		(79,361,604	)
Interbank investments				(28,416,038	)		(23,076,805	)
Securities and derivative financial instruments				(27,246,810	)		5,139,575
Compulsory deposits with the Central Bank of Brazil				(643,477	)		(11,632,607	)
Interbank and interbranch accounts (assets/liabilities)				35,116,322			1,235,701
Loan, lease and other credit operations				(30,427,169	)		(52,018,047	)
Other receivables and other assets				743,097			1,364,730
Foreign exchange portfolio and negotiation and intermediation of securities (assets/liabilities)				2,154,829			(374,151	)
(Decrease) increase in Liabilities				67,254,070			51,327,053
Deposits				(10,717,067	)		17,987,273
Deposits received under securities repurchase agreements				56,453,176			(4,087,060	)
Funds for issuance of securities				3,909,068			15,643,148
Borrowings and onlending				251,718			10,534,178
Credit card operations (assets/liabilities)				(1,256,209	)		78,077
Technical provision for insurance, pension plan and capitalization				8,329,215			5,076,611
Collection and payment of taxes and contributions				3,661,475			3,941,419
Other liabilities				6,645,983			2,057,217
Deferred income				(23,289	)		96,190
Payment of income tax and social contribution				(5,611,052	)		(2,927,110	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES				44,230,929			(4,773,037	)
Interest on capital / dividends received from affiliated companies				15,577			48,415
Funds received from sale of available-for-sale securities				13,507,802			27,235,123
Funds received from redemption of held-to-maturity securities				342,820			557,674
Disposal of assets not for own use				71,676			88,918
Disposal of investments				386,866			456,638
Acquisition of minority interest in Redecard S.A.		2c		(9,978,502	)		-
Sale of fixed assets				214,731			195,881
Termination of intangible asset agreements				(643	)		31,418
Purchase of available-for-sale securities				(26,975,859	)		(23,940,213	)
Purchase of held-to-maturity securities				(205	)		(123,000	)
Purchase of investments				(897,123	)		(15,810	)
Purchase of fixed assets		15b		(1,258,799	)		(1,126,106	)
Purchase of intangible assets		15b		(1,228,698	)		(1,168,144	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES				(25,800,357	)		2,240,794
Increase in subordinated debt				16,579,927			8,350,300
Decrease in subordinated debt				(10,321,154	)		(7,834,966	)
Increase in debentures				1,500,000			-
Decrease in debentures				(54,251	)		(406,879	)
Change in minority interest		16e		348,314			(1,897,678	)
Change in minority interest - Redecard S.A.				(828,650	)		-
Granting of stock options				197,888			233,269
Purchase of treasury shares				(99,045	)		(1,302,638	)
Dividends and interest on capital paid to minority interests				(682,058	)		(614,687	)
Dividends and interest on capital paid				(5,003,160	)		(4,426,060	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES				1,637,811			(7,899,339	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				20,068,382			(10,431,582	)

Cash and cash equivalents at the beginning of the period				37,616,895			39,148,018
Effects of changes in exchange rates on cash and cash equivalents				1,246,762			1,927,488
Cash and cash equivalents at the end of the period		4a and 5		58,932,039			30,643,924

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

3.5

ITAÚ UNIBANCO HOLDING S.A.

Consolidated Statement of Added Value

(In thousands of Reais)

	NOTE		01/01 to 09/30/2012					01/01 to 09/30/2011
INCOME				78,996,825					80,958,002
Financial operations				76,334,176					75,153,793
Banking services				15,115,477					13,960,104
Result from insurance, pension plan and capitalization operations				2,121,522					1,895,564
Result of loan losses		8d		(14,482,032	)				(10,544,131	)
Other				(92,318	)				492,672
EXPENSES				(41,734,400	)				(44,540,493	)
Financial operations				(37,989,523	)				(40,696,256	)
Other				(3,744,877	)				(3,844,237	)
INPUTS PURCHASED FROM THIRD PARTIES				(8,614,088	)				(8,539,901	)
Materials, energy and others		13g		(298,436	)				(334,720	)
Third-party services		13g		(2,423,464	)				(2,363,375	)
Other				(5,892,188	)				(5,841,806	)
Data processing and telecommunications		13g		(2,625,572	)				(2,603,358	)
Advertising, promotions and publication		13g		(674,094	)				(701,384	)
Installations				(955,478	)				(922,834	)
Transportation		13g		(376,322	)				(430,117	)
Security		13g		(384,744	)				(358,527	)
Travel expenses		13g		(139,182	)				(135,020	)
Other				(736,796	)				(690,566	)
GROSS ADDED VALUE				28,648,337					27,877,608
DEPRECIATION AND AMORTIZATION		13g		(1,217,863	)				(1,045,359	)
NET ADDED VALUE PRODUCED BY THE COMPANY				27,430,474					26,832,249
ADDED VALUE RECEIVED FROM TRANSFER		15a lll		189,878					(36,666	)
TOTAL ADDED VALUE TO BE DISTRIBUTED				27,620,352					26,795,583
DISTRIBUTION OF ADDED VALUE				27,620,352					26,795,583
Personnel				9,206,415		33.3	%		9,068,946		33.8	%
Compensation				7,544,363		27.3	%		7,222,522		27.0	%
Benefits				1,126,465		4.1	%		1,377,921		5.1	%
FGTS – government severance pay fund				535,587		1.9	%		468,503		1.7	%
Taxes, fees and contributions				7,051,397		25.5	%		5,564,751		20.8	%
Federal				6,499,197		23.5	%		5,027,517		18.8	%
State				18,290		0.1	%		1,408		0.0	%
Municipal				533,910		1.9	%		535,826		2.0	%
Return on third parties’ assets - Rent				717,942		2.6	%		681,069		2.5	%
Return on own assets				10,644,598		38.5	%		11,480,817		42.8	%
Dividends and interest on capital				2,201,800		8.0	%		2,395,766		8.9	%
Retained earnings (loss) for the period				7,900,345		28.6	%		8,544,115		31.9	%
Minority interest in retained earnings				542,453		2.0	%		540,936		2.0	%

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

3.6

ITAÚ UNIBANCO HOLDING S.A.

Balance Sheet

(In thousands of Reais)

	NOTE		09/30/2012			09/30/2011
ASSETS

CURRENT ASSETS				25,146,990			1,434,784
CASH AND CASH EQUIVALENTS				15,773			6,750
INTERBANK INVESTMENTS		4b and 6		24,007,541			39,082
Money market				134,362			39,082
Interbank deposits				23,873,179			-
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		4c, 4d and 7		23,455			13,276
Own portfolio				23,455			7,633
Pledged in guarantee				-			5,643
OTHER RECEIVABLES				1,096,828			1,372,890
Income receivable		15a I		24,736			359,021
Sundry		13a		1,072,092			1,013,869
OTHER ASSETS – Prepaid expenses		4g		3,393			2,786
LONG-TERM RECEIVABLES				21,226,554			31,044,046
INTERBANK INVESTMENTS – Interbank deposits
		4b and 6		14,571,634			30,927,946
SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS		4c, 4d and 7		6,462,126			-
Own portfolio				6,462,126			-
OTHER RECEIVABLES – Sundry		13a		192,794			116,100
PERMANENT ASSETS				57,202,675			55,520,568
INVESTMENTS				57,202,478			55,520,307
Investments in subsidiaries		4h and 15a I		57,202,478			55,520,307
REAL ESTATE IN USE		4i		197			261
TOTAL ASSETS				103,576,219			87,999,398
LIABILITIES

CURRENT LIABILITIES
				5,974,293			1,130,348
DEPOSITS - Interbank deposits		4b and 10b		5,154,518			-
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES		4b and 10d		18,667			18,667
OTHER LIABILITIES				801,108			1,111,681
Social and statutory		16b II		518,960			819,522
Tax and social security contributions		4n, 4o and 14c		85,773			113,594
Subordinated debt		10f		150,988			94,530
Sundry		13c		45,387			84,035
LONG-TERM LIABILITIES				13,441,549			10,953,093
DEPOSITS - Interbank deposits		4b and 10b		-			4,705,826
FUNDS FROM ACCEPTANCE AND ISSUANCE OF SECURITIES		4b and 10d		500,000			500,000
OTHER LIABILITIES				12,941,549			5,747,267
Tax and social security contributions		4n, 4o and 14c		945,131			679,530
Subordinated debt		10f		11,979,856			5,052,295
Sundry		13c		16,562			15,442
STOCKHOLDERS’ EQUITY		16		84,160,377			75,915,957
Capital				45,000,000			45,000,000
Capital reserves				812,352			640,515
Revenue reserves				38,685,639			32,230,408
Asset valuation adjustment		4c, 4d and 7d		1,189,720			(250,829	)
(Treasury shares)				(1,527,334	)		(1,704,137	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY				103,576,219			87,999,398

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

3.7

ITAÚ UNIBANCO HOLDING S.A.

Statement of Income

(In thousands of Reais)

			01/01 to			01/01 to
	NOTE		09/30/2012			09/30/2011
INCOME FROM FINANCIAL OPERATIONS				2,350,694			1,852,055
Securities and derivative financial instruments				2,350,694			1,852,055
EXPENSES OF FINANCIAL OPERATIONS				(747,201	)		(537,892	)
Money market				(747,201	)		(537,892	)
GROSS INCOME FROM FINANCIAL OPERATIONS				1,603,493			1,314,163
OTHER OPERATING REVENUES (EXPENSES)				5,836,411			6,766,300
Personnel expenses				(153,606	)		(122,635	)
Other administrative expenses				(30,420	)		(34,109	)
Tax expenses		14a II		(162,726	)		(173,102	)
Equity in earnings of subsidiaries		15a I		6,233,593			7,124,073
Other operating revenues (expenses)				(50,430	)		(27,927	)
OPERATING INCOME				7,439,904			8,080,463
NON-OPERATING INCOME				18,383			25,991
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING				7,458,287			8,106,454
INCOME TAX AND SOCIAL CONTRIBUTION		4p		791,970			779,573
Due on operations for the period				52,052			4,372
Related to temporary differences				739,918			775,201
PROFIT SHARING – Management members - Statutory - Law No. 6,404 of
12/15/1976				(2,065	)		(2,146	)
NET INCOME				8,248,192			8,883,881
WEIGHTED AVERAGE OF THE NUMBER OF OUTSTANDING SHARES				4,517,937,352			4,534,808,116
NET INCOME PER SHARE – R$				1.83			1.96
BOOK VALUE PER SHARE - R$ (OUTSTANDING AT 09/30)				18.63			16.82

EXCLUSION OF NONRECURRING EFFECTS		2a and 22k		438,832			(45,263	)
NET INCOME WITHOUT NONRECURRING EFFECTS				8,687,024			8,838,618
NET INCOME PER SHARE – R$				1.92			1.95

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

3.8

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 01/01/2011		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 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
BALANCES AT 01/01/2012		45,000,000		763,413			34,422,444			(139,142	)		-			(1,663,562	)		78,383,153
Purchase of treasury shares		-		-			-			-			-			(99,045	)		(99,045	)
Granting of stock options – exercised options		-		(102,561	)		65,176			-			-			235,273			197,888
Granting of options recognized		-		151,500			-			-			-			-			151,500
Change in adjustment to market value		-		-			-			1,328,862			-			-			1,328,862
Addition to interest on capital paid on 03/13/2012 - Year 2011		-		-			(1,450	)		-			-			-			(1,450	)
Payment of interest on capital on 03/13/2012 – Declared after 12/31/2011		-		-			(1,846,923	)		-			-			-			(1,846,923	)
Net income		-		-			-			-			8,248,192			-			8,248,192
Appropriations:
Legal reserve		-		-			412,410			-			(412,410	)		-			-
Statutory reserves		-		-			5,633,982			-			(5,633,982	)		-			-
Dividends and interest on capital		-		-			-			-			(2,201,800	)		-			(2,201,800	)
BALANCES AT 09/30/2012		45,000,000		812,352			38,685,639			1,189,720			-			(1,527,334	)		84,160,377
CHANGES IN THE PERIOD		-		48,939			4,263,195			1,328,862			-			136,228			5,777,224

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

3.9

Itaú Unibanco Holding S.A.

Statement of Cash Flows

(In thousands of Reais)

			01/01 to			01/01 a
	NOTE		09/30/2012			09/30/2011
ADJUSTED NET INCOME				2,293,992			1,698,142
Net income				8,248,192			8,883,881
Adjustments to net income:				(5,954,200	)		(7,185,739	)
Granting of options recognized				151,500			121,902
Interest and foreign exchange expense from operations with subordinated debt				826,593			562,034
Deferred taxes				(739,918	)		(775,201	)
Equity in earnings of subsidiaries		15a I		(6,233,593	)		(7,124,073	)
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				(2,147	)		(1,323	)
Other				57			70
CHANGE IN ASSETS AND LIABILITIES				567,551			722,934
(Increase) decrease in other receivables and other assets				137,208			383,504
Decrease (increase) in other liabilities				430,343			339,430
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES				2,861,543			2,421,076
Interest on capital/Dividends received				8,762,626			13,169,557
(Increase) decrease in interbank investments				(6,802,463	)		(16,751,104	)
(Increase) decrease in securities and derivative financial instruments
(assets/liabilities)				(6,471,950	)		24,308
(Purchase) sale of investments				(201,451	)		3,874,270
(Purchase) sale of fixed assets				(11	)		(23	)
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES				(4,713,249	)		317,008
Increase (decrease) in deposits				322,074			1,361,818
Increase in subordinated debt				6,447,155			1,390,801
Decrease in subordinated debt				(340,352	)		(158,789	)
(Increase) decrease in funds for issuance of securities				13,125			13,125
Granting of stock options				197,888			233,269
Purchase of treasury shares				(99,045	)		(1,302,638	)
Dividends and interest on capital paid				(5,003,160	)		(4,426,060	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES				1,537,685			(2,888,474	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				(314,021	)		(150,390	)

Cash and cash equivalents at the beginning of the period				462,009			194,899
Effects of changes in exchange rates on cash and cash equivalents				2,147			1,323
Cash and cash equivalents at the end of the period		4a and 5		150,135			45,832

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

3.10

ITAÚ UNIBANCO HOLDING S.A.

Statement of Added Value

(In thousands of Reais)

			01/01 to			01/01 to
	NOTE		09/30/2012			09/30/2011
INCOME				3,111,025			2,632,680
Financial operations				2,350,694			1,852,055
Other				760,331			780,625
EXPENSES				(747,201	)		(537,892	)
Financial operations				(747,201	)		(537,892	)
INPUTS PURCHASED FROM THIRD PARTIES				(30,083	)		(33,768	)
Third-party services				(12,924	)		(14,525	)
Advertising, promotions and publication				(1,726	)		(550	)
Expenses for financial system services				(3,175	)		(4,847	)
Insurance				(3,314	)		(4,145	)
Other				(8,944	)		(9,701	)
GROSS ADDED VALUE				2,333,741			2,061,020
DEPRECIATION AND AMORTIZATION				(57	)		(70	)
NET ADDED VALUE PRODUCED BY THE COMPANY				2,333,684			2,060,950
ADDED VALUE RECEIVED FROM TRANSFER		15a l		6,233,593			7,124,073
TOTAL ADDED VALUE TO BE DISTRIBUTED				8,567,277			9,185,023
DISTRIBUTION OF ADDED VALUE				8,567,277			9,185,023
Personnel				152,617			121,971
Compensation				150,643			119,402
Benefits				1,549			1,579
FGTS – government severance pay fund				425			990
Taxes, fees and contributions				166,188			178,900
Federal				166,172			178,874
Municipal				16			26
Return on third parties’ assets - Rent				280			271
Return on own assets				8,248,192			8,883,881
Dividends and interest on capital				2,201,800			2,395,766
Retained earnings (loss) for the period				6,046,392			6,488,115

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

4.1

ITAÚ UNIBANCO HOLDING S.A.

NOTES TO THE FINANCIAL STATEMENTS

FROM JANUARY 1 TO SEPTEMBER 30, 2012 AND 2011

(In thousands of Reais)

NOTE 1 - OPERATIONS

Itaú Unibanco Holding S.A. (ITAÚ UNIBANCO HOLDING) is a publicly-held company which, together with its subsidiaries 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.

4.2

NOTE 2 – PRESENTATION OF THE FINANCIAL STATEMENTS

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), the Superintendence of Private Insurance (SUSEP), and the 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 to 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.

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.

4.3

In ITAÚ UNIBANCO HOLDING CONSOLIDATED, from January 1, 2010, the goodwill originated from the purchase of investments is no longer fully amortized in the consolidated financial statements (Note 4j). By 12/31/2009, goodwill generated had been fully amortized in the periods investments were made.

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

		Incorporation		Interest in voting capital at						Interest in voting capital at
		country	Activity	09/30/2012			09/30/2011			09/30/2012			09/30/2011
Banco Dibens S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Banco Fiat S.A.		Brazil	Financial institution		100.00	%		100.00	%		99.99	%		99.99	%
Banco Itaú Argentina S.A.		Argentina	Financial institution		100.00	%		100.00	%		99.99	%		99.99	%
Banco Itaú BBA S.A.		Brazil	Financial institution		99.99	%		99.99	%		99.99	%		99.99	%
Banco Itaú Chile		Chile	Financial institution		99.99	%		99.99	%		99.99	%		99.99	%
Banco Itaú Europa Luxembourg S.A.		Luxembourg	Financial institution		99.99	%		99.99	%		99.99	%		99.99	%
Banco Itaú BBA International, S.A.	(1)	Portugal	Financial institution		99.99	%		99.99	%		99.99	%		99.99	%
Banco Itaú Paraguay S.A.		Paraguay	Financial institution		99.99	%		99.99	%		99.99	%		99.99	%
Banco Itaú Uruguay S.A.		Uruguay	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Banco Itaucard S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Banco Itaucred Financiamentos S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Banco Itauleasing S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
BIU Participações S.A.		Brazil	Holding company		66.15	%		66.15	%		66.15	%		66.15	%
Cia. Itaú de Capitalização		Brazil	Capitalization		99.99	%		99.99	%		99.99	%		99.99	%
Dibens Leasing S.A. - Arrendamento Mercantil		Brazil	Leasing		100.00	%		100.00	%		100.00	%		100.00	%
Fiat Administradora de Consórcios Ltda.		Brazil	Consortia administrator		99.99	%		99.99	%		99.99	%		99.99	%
Hipercard Banco Múltiplo S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Administradora de Consórcios Ltda.		Brazil	Consortia administrator		99.99	%		99.99	%		99.99	%		99.99	%
Itaú Ásia Securities Ltd		Hong Kong	Broker		100.00	%		100.00	%		100.00	%		100.00	%
Itau Bank, Ltd.	(2)	Cayman Islands	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Companhia Securitizadora de Créditos Financeiros		Brazil	Securitization		99.99	%		99.99	%		99.98	%		99.99	%
Itaú Corretora de Valores S.A.		Brazil	Broker		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Distribuidora de Títulos e Valores Mobiliários Ltda.		Brazil	Dealer		100.00	%		100.00	%		99.99	%		99.99	%
Itaú Japan Asset Management Limited		Japan	Asset management		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Middle East Limited		Arab Emirates	Broker		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Seguros S.A.		Brazil	Insurance		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Unibanco S.A.		Brazil	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Itaú USA, INC.		United States	Broker		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Vida e Previdência S.A.		Brazil	Pension plan		100.00	%		100.00	%		100.00	%		100.00	%
Itaú Unibanco Serviços e Processamento de Informações Comerciais S.A.	(3)	Brazil	Technology services		100.00	%		100.00	%		100.00	%		100.00	%
Redecard S.A. (Note 2c)		Brazil	Acquirer		94.45	%		50.01	%		94.45	%		50.01	%
Unibanco Cayman Bank Ltd.		Cayman Islands	Financial institution		100.00	%		100.00	%		100.00	%		100.00	%
Unibanco Participações Societárias S.A. (Note 16e)		Brazil	Holding company		99.99	%		100.00	%		99.99	%		100.00	%

Joint ventures
Banco Investcred Unibanco S.A.		Brazil	Financial institution		50.00	%		50.00	%		50.00	%		50.00	%
FAI - Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		Brazil	Consumer finance credit		50.00	%		50.00	%		50.00	%		50.00	%
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		Brazil	Consumer finance credit		50.00	%		50.00	%		50.00	%		50.00	%
Luizacred S.A. Soc. Cred. Financiamento Investimento		Brazil	Consumer finance credit		50.00	%		50.00	%		50.00	%		50.00	%

(1)

New company name of Banco Itaú Europa S.A.;

(2)

Does not include Redeemable Preferred Shares (Note 10f);

(3)

New company name of Orbitall Serviços e Processamento de Informações Comerciais S.A.

4.4

Business Development

BSF Holding S.A. (“Banco Carrefour”)

On April 23, 2012 the Central Bank of Brazil approved the Agreement for Purchase and Sale of Sharer entered into on April 14, 2011 by ITAÚ UNIBANCO HOLDING and Carrefour Comércio e Indústria Ltda (Carrefou Brasil) in order to acquire 49% of BSF Holding S.A. ( Banco Carrefour”), for the amount of R$ 816,255 million, giving rise to a goodwill of R$ 583,081, through the transfer of shares on May 31, 2012.

Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento (“FAI”)

On August 9, 2012, ITAÚ UNIBANCO HOLDING S.A. informed that it will terminate its partnership with LOJAS AMERICANAS S.A. (“LASA”), entered into in 2005, for the offering, distribution and sale, on an exclusive basis by FAI (entity jointly controlled by ITAÚ UNIBANCO HOLDING S.A. and LASA), of financial, insurance and pension plan products and services to customers of LASA and its affiliated companies.

As a consequence of said termination, ITAÚ UNIBANCO HOLDING S.A. and LASA entered into, on this date, a purchase agreement and other covenants under which LASA has agreed (i) to sell to ITAÚ UNIBANCO HOLDING S.A. the total interest it holds in the capital of FAI for the approximate amount of R$ 83 million; and (ii) to acquire the operating rights held by FAI with respect to the offering, distribution and sale, on an exclusive basis, of financial products and services through the distribution channels of LASA and/or its affiliates, at the approximate amount of R$ 112 million. The completion of the transaction depends on the approval of the Cental Bank of Brazil.

Redecard

On September 24, 2012, ITAÚ UNIBANCO HOLDING S.A. completed the auction of the Tender Public Offer (OPA) to cancel Redecard’s listed company register, pursuant to the OPA call notice published on August 23, 2012.

As a result of the auction and acquisition private, ITAÚ UNIBANCO HOLDING S.A. purchased, up to September 30, 2012, through its subsidiary Banestado Participações, Administração e Serviços Ltda., 298,989,237 common shares issued by Redecard, representing 44.4% of its capital, and as of now it holds 635,474,593 common shares, representing 94.4% of its capital. The shares were purchased for the unit price of R$ 35.00, totaling R$ 10,469,234 (including charges and brokerage), giving rise to a goodwill of R$ 9,978,502.

In October 2012, ITAÚ UNIBANCO HOLDING purchased additional 23,987,343 common shares from Redecard for the amount offered in the OPA, plus SELIC variation for the period, increasing its interest in capital to 98.0%. ITAÚ UNIBANCO HOLDING expects to complete the purchase of the remaining minority interest by the end of 2012. It should be noted that the effects of these transactions will be recognized in the financial statements for the 4^th quarter of 2012.

On October 18, 2012, the Securities and Exchange Commission (CVM) cancelled Redecard’s register as a publicly-held company.

Association Agreement with Banco BMG S.A.

On July 9, 2012, ITAÚ UNIBANCO HOLDING entered into the Association Agreement with Banco BMG S.A. (“BMG”), aiming at the offering, distribution and commercialization of payroll advance loans. The completion of the transaction depends on the approval of BACEN.

4.5

NOTE 3 – REQUIREMENTS OF CAPITAL AND FIXED ASSET LIMITS

a) Basel and Fixed Asset Ratios

The main indicators at September 30, 2012, according to present regulation, are as follows:

	Financial conglomerate (1)			Economic-financial consolidated (2)
Referential equity (3)		110,911,619			110,765,664
Basel ratio		17.4	%		17.5	%
Tier I		12.1	%		12.2	%
Tier II		5.3	%		5.3	%
Fixed assets ratio (4)		45.5	%		22.9	%
Excess capital in relation to fixed assets		4,949,410			30,052,695

(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 conglomerate 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-financial consolidated amounts, enabling, when necessary, the distribution of funds to the financial companies.

Issues of subordinated debt, in the amount of R$ 2,420,872 as of September 30, 2012, are pending approval in order to be included in the Tier II. Should we consider these issues, the Basel ratios would be affected by 0.4%.

Management considers the current Basel ratio (17.4%, based on Financial conglomerate) to be adequate, taking into account the following:

It exceeds by 6.4 percent the minimum required by the authorities (11.0%); and

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 18.5%.

CMN Resolution No. 3,490, of August 29, 2007, provides for the criteria for computation of the Required Referential Equity (PRE). For calculation of the risk portions, the procedures of Circular No. 3,360, of September 12, 2007 for credit risk, of Circulars Nos. 3,361, 3,362, 3,363, 3,364, 3,366 and 3,368, of September 12, 2007, 3,388, of June 4, 2008, and 3,389, of June 25, 2008, 3,498, of June 28, 2010 and 3,568, of December 21, 2011, and Circular Letters Nos. 3,310, of April 15, 2008 and 3,498, of April, 2011 for market risk, and Circulars Nos. 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. 3,568, of December 21, 2011, changes the provisions of Circulars Nos. 3,361, of September 12, 2007, 3,388, of June 4, 2008, 3,389, of June 25, 2008, 3,478 of December 24, 2009 and 3,498, of June 28, 2010, which set forth the procedures for calculation of the portion related to market risk. The new calculation method will be adopted gradually from January 1, 2012, taking into account that it shall be fully employed from December 31, 2013. Should the new rules already be applicable, the ratios would be reduced by about 0.2%.

4.6

The Referential Equity used for calculation of ratios and composition of risk exposures at September 30, 2012, are as follows:

	Financial conglomerate					Economic-financial consolidated

Stockholders' Equity ITAÚ UNIBANCO HOLDING S.A. (Consolidated)		78,978,511					78,978,511
Minority interest in subsidiaries		1,266,405					1,121,286
Consolidated stockholders’ equity (BACEN)		80,244,916					80,099,797
Deferred tax assets excluded from Tier I		(594,879	)				(595,434	)
Deferred permanent assets excluded from Tier I		(233,526	)				(233,807	)
Adjustments to market value – securities and derivative financial instruments excluded from Tier I		(1,189,720	)				(1,190,219	)
Preferred shares with clause of redemption excluded from Tier I		(798,296	)				(798,296	)
Tier I		77,428,495					77,282,041
Subordinated debt		32,280,583					32,280,583
Preferred shares with clause of redemption		319,318					319,318
Adjustments to market value -securities and derivative financial instruments		1,189,720					1,190,219
Tier II		33,789,621					33,790,120
Tier I + Tier II		111,218,116					111,072,161
Exclusions:
Funding instruments issued by financial institutions		(306,497	)				(306,497	)
Referential equity		110,911,619					110,765,664
Risk exposure:
Exposure weighted by credit risk (EPR)		576,846,164					566,831,791
Portion required for credit risk coverage (PEPR)		63,453,078		90.6	%		62,351,497		89.7	%
a) Per weighting factor (FPR):
FPR at 20%		263,543		0.4	%		374,683		0.5	%
FPR at 35%		194,392		0.3	%		194,392		0.3	%
FPR at 50%		3,653,049		5.2	%		4,737,241		6.8	%
FPR at 75%		13,132,145		18.7	%		12,749,711		18.3	%
FPR at 100%		42,586,523		60.8	%		40,440,776		58.2	%
FPR at 150%		1,691,849		2.4	%		1,688,755		2.4	%
FPR at 300%		1,571,620		2.2	%		1,802,682		2.6	%
Derivatives – potential future gain		359,957		0.5	%		363,257		0.5	%
b) Per type:
Securities		3,590,543		5.1	%		3,648,448		5.2	%
Loan operations - Retail		10,385,225		14.8	%		10,119,853		14.6	%
Loan operations – Non-retail		23,082,685		33.0	%		23,092,642		33.2	%
Joint obligations - Retail		39,853		0.1	%		39,853		0.1	%
Joint obligations – Non-Retail		6,303,327		9.0	%		6,268,904		9.0	%
Loan commitments - Retail		2,707,067		3.9	%		2,590,005		3.7	%
Loan commitments – Non-retail		1,950,738		2.8	%		1,951,263		2.8	%
Other exposures		15,393,640		22.0	%		14,640,529		21.1	%
Portion required for operational risk coverage (POPR)		3,807,170		5.4	%		4,356,477		6.3	%
Retail		647,884		0.9	%		647,884		0.9	%
Commercial		1,033,097		1.5	%		1,033,097		1.5	%
Corporate finance		102,751		0.1	%		102,751		0.1	%
Negotiation and sales		1,383,436		2.0	%		1,383,436		2.0	%
Payments and settlements		279,503		0.4	%		279,503		0.4	%
Financial agent services		147,923		0.2	%		147,923		0.2	%
Asset management		199,581		0.3	%		199,581		0.3	%
Retail brokerage		12,995		0.0	%		12,995		0.0	%
Business plans		-		0.0	%		-		0.0	%
Conef additional		-		0.0	%		549,307		0.8	%
Portion required for market risk coverage:		2,790,741		4.0	%		2,832,454		4.1	%
Gold, foreign currency and operations subject to foreign exchange variation (PCAM)		-		0.0	%		-		0.0	%
Operations subject to interest rate variation (PJUR)		2,447,156		3.5	%		2,488,869		3.6	%
Fixed rate denominated in Real (PJUR1)		622,614		0.9	%		622,680		0.9	%
Foreign currency coupon (PJUR2)		960,423		1.4	%		954,797		1.4	%
Price index coupon (PJUR3)		617,820		0.9	%		665,093		1.0	%
Interest rate coupon (PJUR 4)		246,299		0.4	%		246,299		0.4	%
Operations subject to commodity price variation (PCOM)		119,828		0.2	%		119,828		0.2	%
Operations subject to stock price variation (PACS)		223,757		0.3	%		223,757		0.3	%
Required Referential Equity		70,050,989		100.0	%		69,540,428		100.0	%

Excess capital in relation to Required Referential Equity		40,860,630		58.3	%		41,225,236		59.3	%
Total exposure weighted by risk [EPR + (1/0.11 X (POPR + PCAM + PJUR + PCOM + PACS)		636,827,171					632,185,707
Ratio (%)		17.4					17.5
Referential equity calculated for covering the interest rate risk of operations not classified into the trading portfolio (RBAN)		3,200,838					3,558,773

4.7

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

	Financial conglomerate									Economic-financial consolidated
Changes in the Basel Ratio	Referential equity			Weighted exposure			Effect			Referential equity			Weighted exposure			Effect

Ratio at 12/31/2011		92,560,637			579,338,319			16.0	%		93,111,393			568,693,094			16.4	%
Net income for the period		10,096,989			-			1.7	%		10,644,598			-			1.9	%
Interest on capital and dividends		(2,203,250	)		-			-0.4	%		(2,203,250	)		-			-0.4	%
Payment of interest on capital and dividends on 03/13/2012 - Declared after 12/31/2011		(1,846,923	)		-			-0.3	%		(1,846,923	)		-			-0.3	%
Granting of options recognized		151,500			-			0.0	%		151,500			-			0.0	%

Granting of stock options – exercised options in the period		197,888			-			0.0	%		197,888			-			0.0	%
Asset valuation adjustment		1,328,862			-			0.2	%		1,328,862			-			0.2	%
Subordinated debt and redeemable preferred shares		10,896,841			-			1.9	%		10,896,841			-			1.9	%
Treasury shares		(99,045	)		-			0.0	%		(99,045	)		-			0.0	%
Deferred assets excluded from Tier I of referential equity		(60,767	)		(60,767	)		0.0	%		(61,604	)		(61,604	)		0.0	%
Other changes in referential equity		(111,113	)		-			0.0	%		(1,354,596	)		-			-0.2	%
Changes in risk exposure		-			57,549,619			-1.7	%		-			63,554,217			-2.0	%
Ratio at 09/30/2012		110,911,619			636,827,171			17.4	%		110,765,664			632,185,707			17.5	%

Capital for Insurance Activity

CNSP – Conselho Nacional de Seguros Privados (National Consel of Private Insurance), following the worldwide trend towards the strengthening of the insurance market, published 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 and pension plan 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 individual adjusted stockholders’ equity of ITAÚ UNIBANCO HOLDING companies exclusively engaged in insurance and pension plan activities is higher than the required regulatory capital. The insurance companies of ITAÚ UNIBANCO HOLDING have capital exceeding the minimum regulatory by R$ 1,631,404 (R$ 2,226,563 at September 30, 2011) in Itaú Seguros S.A. and R$ 488,058 (R$ 1,732,478 at September 30, 2011) in Itaú Vida e Previdência S.A.

4.8

NOTE 4 – SUMMARY OF THE MAIN ACCOUNTING PRACTICES

Cash and cash equivalents - For purposes of Consolidated Statement of Cash Flows, this item 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.

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 onlending, 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.

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 using the accrual method through 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.

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.

4.9

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 the hedge is recorded directly in the statement of income.

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 of 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.

Allowance for loan losses - the balance of the allowance for loan losses was recorded based on a 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.

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 4m I); and prepaid expenses, corresponding to disbursements, the benefit of which will occur in future periods.

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.

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.

Goodwill – corresponds to the amount paid in excess for the purchase of investments and is amortized based on expected future profitability or as realized. It is annually tested for impairment.

4.10

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

Impairment of assets – a loss is recognized when there is clear evidence that assets are stated at a non-recoverable value. This procedure is adopted semiannually.

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 subsequent amendments.

II.I-

Insurance:

Provision for Unearned Premiums – recognized based on premiums issued, calculated “pro rata die”, and represents the portion of premium corresponding to the policy period not yet elapsed; Provision for Unearned Premiums for Risks in Force but Not Yet Issued is recognized based on technical actuarial note, and has the objective of estimating a portion of unearned premiums related to risks assumed by insurance companies and that are in issue process;

Provision for Premium Deficiency – recognized according to the Technical Actuarial Note if a premium deficiency is found;

Provision for unsettled claims - recognized based on claims of loss in an amount sufficient to cover future commitments. To determine the value of accrued claims under awaiting judicial decision, the experts and legal advisors appointed 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.

Other provisions – recognized based on the technical provision for extension of warranty in the extended warranty line, and the calculation is made over the period from the date the insurance contract becomes effective and the risk initial coverage date, the amount to be recognized being equal to the retained commercial premium.

4.11

II.II - Pension Plan and Individual life with living benefits - The mathematical provisions represent amounts of obligations assumed as insurance for living benefits, retirement plans, disability, pension and annuity, and are calculated according to the method of accounting provided for in the contract.

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 premiums or contributions;

Provision for unexpired risks – recognized to include the estimate of outstanding risks which have not expired;

Provision for events incurred but not reported (IBNR) – recognized based on the expected amounts 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 accumulated fund set up;

Other provisions - basically refer to the provision for administrative expenses recognized according to the Actuarial Technical Note to cover expenses arising from the payment of benefits provided for in the plan, in view of the events occurred and to be occurred. It also includes the heading redemptions and/or other unsettled amounts that refer to amounts not yet paid through the balance sheet date.

II.III - Capitalization:

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

Provision for Raffles – Comprises Provision for raffles unrealized and payable. The unrealized provision for raffles is calculated according to the methodology established in the Technical Actuarial Note. The provision for raffles payable relates to certificates winners in raffles and not paid yet.

Other provisions – Comprises Provision for raffle contingencies and administrative provision. The provision for raffle contingencies is recognized according to the methodology established in the Technical Actuarial Note to cover the provision for raffles in the event of insufficient funds and also for distribution of bonus. The administrative provision is recognized to cover administrative expenses of the plan, and it is calculated under the method described in the Technical Actuarial Note.

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.

4.12

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.

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

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

(1)

For ITAÚ UNIBANCO HOLDING and its financial subsidiaries and equivalent companies, the rate corresponds to 15%. For non-financial and pension plan subsidiaries, the rate is 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.

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

4.13

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:

	09/30/2012		09/30/2011
Cash and cash equivalents		13,103,962		11,509,343
Interbank deposits		7,133,667		13,817,194
Securities purchased under agreements to resell – Funded position		38,694,410		5,317,387
TOTAL		58,932,039		30,643,924

In ITAÚ UNIBANCO HOLDING it is composed of the following:

	09/30/2012		09/30/2011
Cash and cash equivalents		15,773		6,750
Securities purchased under agreements to resell – Funded position		134,362		39,082
TOTAL		150,135		45,832

4.14

NOTE 6 - INTERBANK INVESTMENTS

	09/30/2012												09/30/2011
	0 - 30		31 - 180		181 - 365		Over 365		Total		%		Total		%
Money market		109,874,462		32,757,303		-		5		142,631,770		87.3		74,361,032		74.7
Funded position (*)		46,641,958		12,733,056		-		5		59,375,019		36.3		24,960,505		25.1
Financed position		61,830,443		4,656,724		-		-		66,487,167		40.7		37,147,125		37.3
With free movement		143,010		4,656,724		-		-		4,799,734		2.9		22,741,728		22.8
Without free movement		61,687,433		-		-		-		61,687,433		37.8		14,405,397		14.5
Short position		1,402,061		15,367,523		-		-		16,769,584		10.3		12,253,402		12.3

Money market – Assets Guaranteeing Technical Provisions - SUSEP		2,550,201		-		-		-		2,550,201		1.6		3,326,861		3.3
Interbank deposits		8,288,668		3,762,883		5,661,556		447,213		18,160,320		11.1		21,830,736		22.0
TOTAL		120,713,331		36,520,186		5,661,556		447,218		163,342,291				99,518,629
% per maturity term		73.8		22.4		3.5		0.3
TOTAL – 09/30/2011		44,642,982		49,981,376		3,790,236		1,104,035		99,518,629
% per maturity term		44.9		50.2		3.8		1.1

(*)

Includes R$ 8,868,444 (R$ 14,108,226 at 09/30/2011) related to money market with free movement, in which securities are basically restricted to guarantee transactions at the BM&FBovespa 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$ 134,362 (R$ 39,082 at 09/30/2011) and Interbank deposits with maturity of 31 to 180 days amounting to R$ 23,703,002, 181 to 365 days amounting to R$ 170,177, and over 365 days amounting to R$ 14,571,634 (R$ 30,927,946 at 09/30/2011).

4.15

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.

Summary per maturity

	09/30/2012																																09/30/2011
				Provision for adjustment to market value reflected in:
	Cost			Results			Stockholders’ equity			Market value			%		0 - 30			31 - 90			91 - 180			181 - 365			366 - 720			Over 720 days			Market value
GOVERNMENT SECURITIES - DOMESTIC		99,858,644			592,109			1,370,864			101,821,617			43.4		369,667			10,601			1,937,961			9,063,746			20,808,199			69,631,443			79,607,628
Financial Treasury Bills		29,427,749			(5,644	)		(182	)		29,421,923			12.5		-			-			381,421			2,716,343			8,437,742			17,886,417			32,043,608
National Treasury Bills		21,992,789			72,293			-			22,065,082			9.4		97,150			-			659,092			2,797,744			10,656,417			7,854,679			16,744,076
National Treasury Notes		32,228,722			472,249			608,404			33,309,375			14.2		6,539			9,357			706,164			3,402,474			1,579,725			27,605,116			23,725,588
National Treasury/Securitization		308,450			599			10,353			319,402			0.1		13			1,244			89			4,347			2,963			310,746			299,882
Brazilian External Debt Bonds		15,795,876			52,612			752,214			16,600,702			7.1		161,327			-			191,195			142,343			131,352			15,974,485			6,721,173
Investments in non-exclusive funds		104,638			-			-			104,638			0.1		104,638			-			-			-			-			-			72,585
Other		420			-			75			495			0.0		-			-			-			495			-			-			716
GOVERNMENT SECURITIES - ABROAD		7,886,889			14,646			(24,188	)		7,877,347			3.3		820,541			537,763			3,986,244			993,939			135,467			1,403,393			6,384,929
Argentina		138,739			2,157			-			140,896			0.1		-			2,726			1,668			109,170			1,882			25,450			155,881
Denmark		1,721,478			-			-			1,721,478			0.7		-			-			1,445,772			275,706			-			-			3,275,980
Spain		-			-			-			-			-		-			-			-			-			-			-			409,885
Korea		1,672,080			-			-			1,672,080			0.7		-			-			1,246,030			426,050			-			-			294,211
Chile		1,941,216			183			128			1,941,527			0.8		330,155			462,978			1,095,213			4,985			19,152			29,044			850,660
Paraguay		315,748			-			(28,443	)		287,305			0.1		96,856			48,953			59,194			4,460			22,283			55,559			489,721
Uruguay		357,734			65			2,727			360,526			0.2		6,243			22,091			53,861			133,079			91,727			53,525			297,335
United States		816,176			11,393			250			827,819			0.4		387,287			1,015			84,249			-			203			355,065			289,102
France		618,179			251			-			618,430			0.3		-			-			52			-			220			618,158			248,302
Mexico		170,010			444			-			170,454			0.1		-			-			-			-			-			170,454			-
Belgium		67,670			-			468			68,138			0.0		-			-			-			27,182			-			40,956			-
Colombia		26,393			-			635			27,028			0.0		-			-			-			13,307			-			13,721			-
Other		41,466			153			47			41,666			0.0		-			-			205			-			-			41,461			73,852
CORPORATE SECURITIES		42,787,159			83,975			1,084,709			43,955,843			18.8		6,423,591			1,754,110			2,619,697			3,043,328			6,681,498			23,433,619			31,640,795
Eurobonds and others		6,733,913			23,909			229,576			6,987,398			3.0		259,459			856,554			285,910			703,719			353,054			4,528,702			5,217,480
Bank deposit certificates		809,309			2			(300	)		809,011			0.3		18,070			51,249			314,675			201,351			18,880			204,786			1,755,191
Shares		3,268,876			18,395			(101,832	)		3,185,439			1.4		3,185,439			-			-			-			-			-			2,943,560
Debentures		11,795,706			6,196			172,093			11,973,995			5.1		-			5,006			420,521			673,718			2,272,285			8,602,465			8,908,294
Promissory notes		1,680,989			(1	)		31			1,681,019			0.7		378,541			729,027			573,451			-			-			-			804,281
Fund quotas		2,349,188			33,618			4,592			2,387,398			1.0		2,383,166			-			-			-			-			4,232			1,770,562
Fixed income		1,023,534			(687	)		(41	)		1,022,806			0.4		1,018,574			-			-			-			-			4,232			589,558
Credit rights		1,123,205			-			-			1,123,205			0.5		1,123,205			-			-			-			-			-			925,737
Variable income		202,449			34,305			4,633			241,387			0.1		241,387			-			-			-			-			-			255,267
Securitized real estate loans		7,933,370			1,602			759,629			8,694,601			3.7		50,224			58,092			105,700			587,324			622,497			7,270,764			7,890,073
Financial bills		7,189,866			254			(659	)		7,189,461			3.1		-			-			652,000			779,843			3,393,407			2,364,211			2,041,077
Other		1,025,942			-			21,579			1,047,521			0.5		148,692			54,182			267,440			97,373			21,375			458,459			310,277
PGBL/VGBL FUND QUOTAS (1)		69,856,629			-			-			69,856,629			30.1		69,856,629			-			-			-			-			-			54,090,499
SUBTOTAL - SECURITIES		220,389,321			690,730			2,431,385			223,511,436			95.3		77,470,428			2,302,474			8,543,902			13,101,013			27,625,164			94,468,455			171,723,851
Trading securities		156,144,500			690,730			-			156,835,230			66.8		72,903,654			339,744			2,845,008			7,768,649			21,106,806			51,871,369			127,134,343
Available-for-sale securities		61,081,416			-			2,431,385			63,512,801			27.1		4,565,108			1,962,358			5,696,073			5,190,248			6,472,215			39,626,799			41,530,188
Held-to-maturity securities (2)		3,163,405			-			-			3,163,405			1.4		1,666			372			2,821			142,116			46,143			2,970,287			3,059,320
DERIVATIVE FINANCIAL INSTRUMENTS		9,252,503			1,792,451			-			11,044,954			4.7		1,063,938			1,791,957			2,304,428			1,129,476			923,419			3,831,736			13,860,353
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		229,641,824			2,483,181			2,431,385			234,556,390			100.0		78,534,366			4,094,431			10,848,330			14,230,489			28,548,583			98,300,191			185,584,204
																33.5			1.7			4.6			6.1			12.2			41.9
DERIVATIVE FINANCIAL INSTRUMENTS (LIABILITIES)		(6,970,890	)		(2,122,635	)		(31,861	)		(9,125,386	)		100.0		(564,463	)		(764,552	)		(2,215,991	)		(1,491,692	)		(1,046,744	)		(3,041,944	)		(11,210,542	)

(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$ 1,192,772 (R$ 594,679 at 09/30/2011), according to Note 7e.

4.16

Summary by portfolio

	09/30/2012
			Restricted to
	Own portfolio		Repurchase agreements		Pledging of guarantees (*)		Free portfolio		Central Bank		Derivative financial instruments		Assets guaranteeing technical provisions (Note 11b)		Total

GOVERNMENT SECURITIES - DOMESTIC		41,271,329		38,013,935		4,254,947		88,986		12,591,352		-		5,601,068		101,821,617
Financial Treasury Bills		10,948,437		3,863,086		3,973,927		-		10,044,992		-		591,481		29,421,923
National Treasury Bills		15,063,400		6,798,807		25,220		88,986		-		-		88,669		22,065,082
National Treasury Notes		7,795,193		17,791,104		255,800		-		2,546,360		-		4,920,918		33,309,375
National Treasury/Securitization		319,402		-		-		-		-		-		-		319,402
Brazilian External Debt Bonds		7,039,764		9,560,938		-		-		-		-		-		16,600,702
Investments in non-exclusive funds		104,638		-		-		-		-		-		-		104,638
Other		495		-		-		-		-		-		-		495
GOVERNMENT SECURITIES - ABROAD		5,627,488		165,040		2,070,388		-		-		-		14,431		7,877,347
Argentina		21,737		119,159		-		-		-		-		-		140,896
Denmark		762,417		-		959,061		-		-		-		-		1,721,478
Korea		668,070		-		1,004,010		-		-		-		-		1,672,080
Chile		1,908,744		16,437		1,915		-		-		-		14,431		1,941,527
Paraguay		287,305		-		-		-		-		-		-		287,305
Uruguay		339,017		-		21,509		-		-		-		-		360,526
United States		744,131		-		83,688		-		-		-		-		827,819
Mexico		588,986		29,444		-		-		-		-		-		618,430
Colombia		170,454		-		-		-		-		-		-		170,454
Belgium		68,138		-		-		-		-		-		-		68,138
France		27,028		-		-		-		-		-		-		27,028
Other		41,461		-		205		-		-		-		-		41,666
CORPORATE SECURITIES		36,480,186		1,966,799		347,719		-		-		-		5,161,139		43,955,843
Eurobonds and other		5,160,698		1,821,215		5,485		-		-		-		-		6,987,398
Bank deposit certificates		319,017		145,214		-		-		-		-		344,780		809,011
Shares		3,185,439		-		-		-		-		-		-		3,185,439
Debentures		10,666,594		370		342,122		-		-		-		964,909		11,973,995
Promissory notes		1,400,475		-		-		-		-		-		280,544		1,681,019
Fund quotas		1,731,359		-		112		-		-		-		655,927		2,387,398
Fixed income		476,947		-		112		-		-		-		545,747		1,022,806
Credit rights		1,013,025		-		-		-		-		-		110,180		1,123,205
Variable income		241,387		-		-		-		-		-		-		241,387
Securitized real estate loans		8,681,718		-		-		-		-		-		12,883		8,694,601
Financial bills		4,287,365		-		-		-		-		-		2,902,096		7,189,461
Other		1,047,521		-		-		-		-		-		-		1,047,521
PGBL/VGBL FUND QUOTAS		-		-		-		-		-		-		69,856,629		69,856,629
SUBTOTAL - SECURITIES		83,379,003		40,145,774		6,673,054		88,986		12,591,352		-		80,633,267		223,511,436
Trading securities		38,073,737		27,573,867		2,744,634		88,986		12,220,577		-		76,133,429		156,835,230
Available-for-sale securities		45,258,892		12,412,290		3,914,769		-		370,775		-		1,556,075		63,512,801
Held-to-maturity securities		46,374		159,617		13,651		-		-		-		2,943,763		3,163,405
DERIVATIVE FINANCIAL INSTRUMENTS		-		-		-		-		-		11,044,954		-		11,044,954
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS)		83,379,003		40,145,774		6,673,054		88,986		12,591,352		11,044,954		80,633,267		234,556,390
TOTAL SECURITIES AND DERIVATIVE FINANCIAL INSTRUMENTS (ASSETS) – 09/30/2011		60,986,915		35,152,081		9,314,486		99,567		3,067,191		13,860,353		63,103,611		185,584,204

(*)

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

4.17

Trading securities

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

	09/30/2012																					09/30/2011
	Cost		Adjustment to market value (in results)			Market value		%		0 - 30		31 - 90		91 - 180		181 - 365		366 - 720		Over 720 days		Market value

GOVERNMENT SECURITIES - DOMESTIC		75,379,988		592,109			75,972,097		48.5		369,593		10,384		1,730,887		6,795,705		19,989,284		47,076,244		63,469,986
Financial Treasury Bills		26,414,178		(5,644	)		26,408,534		16.8		-		-		251,171		1,059,497		7,700,645		17,397,221		27,699,786
National Treasury Bills		21,992,789		72,293			22,065,082		14.1		97,150		-		659,092		2,797,744		10,656,417		7,854,679		15,760,349
National Treasury Notes		24,810,086		472,249			25,282,335		16.1		6,465		9,140		654,270		2,913,139		1,571,425		20,127,896		17,861,465
National Treasury/Securitization		14,272		599			14,871		0.0		13		1,244		89		4,347		2,963		6,215		38,959
Brazilian External Debt Bonds		2,044,025		52,612			2,096,637		1.3		161,327		-		166,265		20,978		57,834		1,690,233		2,036,842
Investments in non-exclusive funds		104,638		-			104,638		0.1		104,638		-		-		-		-		-		72,585
GOVERNMENT SECURITIES - ABROAD		1,447,871		14,646			1,462,517		0.9		33,623		50,122		59,907		126,605		6,659		1,185,601		565,491
Argentina		138,739		2,157			140,896		0.1		-		2,726		1,668		109,170		1,882		25,450		155,881
Chile		136,143		183			136,326		0.1		27,495		40,432		52,966		-		-		15,433		9,591
Uruguay		38,806		65			38,871		0.0		6,128		5,949		4,660		17,435		4,557		142		20,677
United States		304,931		11,393			316,324		0.2		-		1,015		561		-		-		314,748		289,102
Mexico		618,179		251			618,430		0.4		-		-		52		-		220		618,158		72,644
Colombia		170,010		444			170,454		0.1		-		-		-		-		-		170,454		-
Other		41,063		153			41,216		0.0		-		-		-		-		-		41,216		17,596
CORPORATE SECURITIES		8,627,416		83,975			8,711,391		5.5		1,811,213		279,238		1,054,214		846,339		1,110,863		3,609,524		9,008,367
Eurobonds and other		1,611,055		23,909			1,634,964		1.0		20,226		17,762		135,486		53,820		72,781		1,334,889		1,432,306
Bank deposit certificates		360,232		2			360,234		0.2		-		7,473		181,917		-		-		170,844		1,399,564
Shares		1,069,956		18,395			1,088,351		0.7		1,088,351		-		-		-		-		-		705,142
Debentures		1,357,155		6,196			1,363,351		0.9		-		-		54,369		12,676		367,363		928,943		1,730,961
Promissory notes		305,215		(1	)		305,214		0.2		20,769		254,003		30,442		-		-		-		51,430
Fund quotas		648,249		33,618			681,867		0.4		681,867		-		-		-		-		-		989,669
Fixed income		162,918		(687	)		162,231		0.1		162,231		-		-		-		-		-		572,832
Credit rights		315,597		-			315,597		0.2		315,597		-		-		-		-		-		204,476
Variable income		169,734		34,305			204,039		0.1		204,039		-		-		-		-		-		212,361
Securitized real estate loans		23,261		1,602			24,863		0.0		-		-		-		-		1,204		23,659		658,218
Financial bills		3,252,293		254			3,252,547		2.1		-		-		652,000		779,843		669,515		1,151,189		2,041,077
PGBL/VGBL FUND QUOTAS		70,689,225		-			70,689,225		45.1		70,689,225		-		-		-		-		-		54,090,499
Total		156,144,500		690,730			156,835,230		100.0		72,903,654		339,744		2,845,008		7,768,649		21,106,806		51,871,369		127,134,343
% per maturity term											46.5		0.2		1.8		5.0		13.5		33.0
Total 09/30/2011		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
% per maturity term											45.3		0.9		2.4		9.9		8.5		33.0

At September 30, 2012, ITAÚ UNIBANCO HOLDING’s portfolio is composed of Corporate Securities – Bank deposit certificates amounting to R$ 6,485,581, which R$ 23,455 with maturity of 31 to 180 days and R$ 6,462,126 with maturity over 720 days (R$ 6,332 at 09/30/2011).

4.18

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.

	09/30/2012																					09/30/2011
	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		21,389,261		1,370,864			22,760,125		35.8		74		217		207,074		2,129,690		818,816		19,604,254		13,177,739
Financial Treasury Bills		3,013,571		(182	)		3,013,389		4.7		-		-		130,250		1,656,945		736,998		489,196		4,343,822
National Treasury Bills		-		-			-		0.0		-		-		-		-		-		-		983,727
National Treasury Notes		4,449,151		608,404			5,057,555		8.0		74		217		51,894		470,795		8,300		4,526,275		3,097,584
National Treasury/Securitization		294,178		10,353			304,531		0.5		-		-		-		-		-		304,531		260,923
Brazilian External Debt Bonds		13,631,941		752,214			14,384,155		22.7		-		-		24,930		1,455		73,518		14,284,252		4,490,967
Other		420		75			495		0.0		-		-		-		495		-		-		716
GOVERNMENT SECURITIES - ABROAD		6,419,471		(24,188	)		6,395,283		10.1		786,918		487,641		3,926,132		867,334		128,808		198,450		5,819,429
Denmark		1,721,478		-			1,721,478		2.71		-		-		1,445,772		275,706		-		-		3,275,980
Spain		-		-			-		0.0		-		-		-		-		-		-		409,885
Korea		1,672,080		-			1,672,080		2.63		-		-		1,246,030		426,050		-		-		294,211
Chile		1,805,073		128			1,805,201		2.8		302,660		422,546		1,042,247		4,985		19,152		13,611		841,069
Paraguay		315,748		(28,443	)		287,305		0.5		96,856		48,953		59,194		4,460		22,283		55,559		489,721
Uruguay		299,596		2,727			302,323		0.5		115		16,142		49,201		115,644		87,170		34,051		276,658
United States		511,245		250			511,495		0.8		387,287		-		83,688		-		203		40,317		-
Mexico		-		-			-		0.0		-		-		-		-		-		-		175,658
Belgium		67,670		468			68,138		0.11		-		-		-		27,182		-		40,956		-
France		26,393		635			27,028		0.04		-		-		-		13,307		-		13,721		-
Other		188		47			235		0.0		-		-		-		-		-		235		56,247
CORPORATE SECURITIES		33,272,684		1,084,709			34,357,393		54.1		3,778,116		1,474,500		1,562,867		2,193,224		5,524,591		19,824,095		22,533,020
Eurobonds and other		5,071,383		229,576			5,300,959		8.4		237,567		838,792		150,424		646,134		234,229		3,193,813		3,720,228
Bank deposit certificate		449,077		(300	)		448,777		0.7		18,070		43,776		132,758		201,351		18,880		33,942		355,627
Shares		2,198,920		(101,832	)		2,097,088		3.3		2,097,088		-		-		-		-		-		2,238,418
Debentures		10,438,179		172,093			10,610,272		16.7		-		4,634		366,152		661,042		1,904,922		7,673,522		7,147,534
Promissory notes		1,375,774		31			1,375,805		2.2		357,772		475,024		543,009		-		-		-		752,851
Fund quotas		868,343		4,592			872,935		1.4		868,703		-		-		-		-		4,232		780,893
Fixed income		28,020		(41	)		27,979		0.0		23,747		-		-		-		-		4,232		16,726
Credit rights		807,608		-			807,608		1.3		807,608		-		-		-		-		-		721,261
Variable income		32,715		4,633			37,348		0.1		37,348		-		-		-		-		-		42,906
Securitized real estate loans		7,907,493		759,629			8,667,122		13.7		50,224		58,092		103,084		587,324		621,293		7,247,105		7,227,192
Financial Bills		3,937,573		(659	)		3,936,914		6.2		-		-		-		-		2,723,892		1,213,022		-
Other		1,025,942		21,579			1,047,521		1.65		148,692		54,182		267,440		97,373		21,375		458,459		310,277
TOTAL		61,081,416		2,431,385			63,512,801		100.0		4,565,108		1,962,358		5,696,073		5,190,248		6,472,215		39,626,799		41,530,188
Adjustments of securities reclassified in prior years to the held-to-maturity category				10,042							7.2		3.1		9.0		8.2		10.2		62.4
Accounting adjustment - Hedge - Circular No. 3,082				(424,811	)
Deferred taxes				(827,295	)
Adjustments of securities of unconsolidated affiliates				399
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2012				1,189,720
TOTAL 09/30/2011		41,001,074		529,114			41,530,188		-		3,479,688		3,745,257		3,664,548		2,756,193		6,896,204		20,988,298
Adjustments of securities reclassified in prior years to the held-to-maturity category				11,017							8.4		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	)
Adjustments of securities of unconsolidated affiliates				(253,101	)
ADJUSTMENT TO MARKET VALUE – SECURITIES – 09/30/2012				(250,829	)

At September 30, 2011, ITAÚ UNIBANCO HOLDING’s portfolio was composed of Government Securities in the amount of R$ 6,944 and at September 30, 2012 there are no outstanding operations.

4.19

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 at September 30, 2012, not considered in results, are the amounts of R$ 10,042 (R$ 11,017 at 09/30/2011) relating to the market adjustment of the reclassified securities at December 31, 2003. Securities classified under this type, if stated at market value, would present a positive adjustment of R$ 1,192,772 (R$ 594,679 at 09/30/2011).

	09/30/2012																09/30/2011
	Carrying value		%		0 - 30		31 - 90		91 - 180		181 - 365		366 - 720		Over 720 days		Carrying value

GOVERNMENT SECURITIES - DOMESTIC		3,089,395		97.7		-		-		-		138,450		-		2,950,945		2,959,903

National Treasury Notes (*)		2,969,485		93.9		-		-		-		18,540		-		2,950,945		2,766,539
Brazilian External Debt Bonds		119,910		3.8		-		-		-		119,910		-		-		193,364
GOVERNMENT SECURITIES - ABROAD		19,547		0.6		-		-		205		-		-		19,342		9
Uruguay		19,332		0.6		-		-		-		-		-		19,332		-
Other		215		0.0		-		-		205		-		-		10		9
CORPORATE SECURITIES		54,463		1.7		1,666		372		2,616		3,666		46,143		-		99,408
Eurobonds and other		51,475		1.6		1,666		-		-		3,666		46,143		-		64,946
Debentures (*)		372		0.0		-		372		-		-		-		-		29,799
Securitized real estate loans (*)		2,616		0.1		-		-		2,616		-		-		-		4,663
Total		3,163,405		100.0		1,666		372		2,821		142,116		46,143		2,970,287		3,059,320
% per maturity term						0.0		0.01		0.1		4.5		1.5		93.9
Total 09/30/2011		3,059,320		100.0		-		-		83,544		27,940		152,711		2,795,125
% per maturity term						-		-		2.7		0.9		5.0		91.4

(*)

Includes investments of Itaú Vida e Previdência S.A. in the amount of R$ 2,129,305 (R$ 2,004,943 at 09/30/2011).

Realized and unrealized gain of securities portfolio

	01/01 to 09/30/2012		01/01 to 09/30/2011
Gain (loss) - Trading securities		1,324,846		(1,414,149	)
Gain (loss) – Available-for-sale securities		879,625		148,486
Total realized gain		2,204,471		(1,265,663	)
Adjustment to market value of trading securities		664,032		234,886
Total		2,868,503		(1,030,777	)

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 event, which has occurred after the classification date.

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

4.20

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 meets 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 (onshore), 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, 2012, 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$ 3,416,789 (R$ 6,514,839 at September 30, 2011) and was basically composed of government securities.

4.21

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
	09/30/2012		09/30/2011		09/30/2012			09/30/2012			09/30/2012			09/30/2011
Futures contracts		430,314,716		286,657,893		(23,658	)		(72,013	)		(95,671	)		(417,581	)
Purchase commitments		195,443,460		73,037,478		(16,176	)		461			(15,715	)		169,159
Foreign currency		9,049,308		6,168,464		6,393			437			6,830			11,796
Interbank market		163,059,568		46,656,671		(16,326	)		386			(15,940	)		41,132
Indices		19,035,959		17,298,263		(5,988	)		(418	)		(6,406	)		141,559
Securities		3,860,877		2,734,464		-			56			56			(6,085	)
Commodities		433,258		-		(255	)		-			(255	)		-
Other		4,490		179,616		-			-			-			(19,243	)
Commitments to sell		234,871,256		213,620,415		(7,482	)		(72,474	)		(79,956	)		(586,740	)
Foreign currency		51,634,452		32,146,532		2,204			(73,322	)		(71,118	)		(122,361	)
Interbank market		147,528,216		146,394,930		4,167			399			4,566			(28,241	)
Indices		29,203,325		29,742,091		(12,390	)		577			(11,813	)		(454,744	)
Fixed rates		5,984,049		4,382,173		-			(128	)		(128	)		(10	)
Commodities		518,330		-		(1,463	)		-			(1,463	)		-
Other		2,884		954,689		-			-			-			18,616
Swap contracts		-		-		(395,504	)		(530,666	)		(926,170	)		(87,130	)
Asset position		123,300,649		86,547,799		2,093,302			1,404,002			3,497,304			3,346,799
Foreign currency		13,245,593		8,814,365		622,143			98,905			721,048			722,621
Interbank market		43,896,180		38,743,234		323,850			70,279			394,129			862,567
Fixed rates		33,772,668		14,410,300		389,710			330,927			720,637			510,799
Floating rate		4,060,415		2,054,494		10,983			2,979			13,962			2,547
Indices		27,745,017		22,027,135		699,098			878,170			1,577,268			1,197,207
Securities		576,751		68,297		47,437			19,470			66,907			23,194
Commodities		3,980		-		41			2			43			-
Other		45		429,974		40			3,270			3,310			27,864
Liability position		123,696,153		86,449,155		(2,488,806	)		(1,934,668	)		(4,423,474	)		(3,433,929	)
Foreign currency		18,499,605		11,121,620		(950,431	)		(167,349	)		(1,117,780	)		(1,038,566	)
Interbank market		26,893,936		22,607,354		(86,772	)		(4,800	)		(91,572	)		(113,861	)
Fixed rates		36,746,908		17,109,592		(425,992	)		(541,172	)		(967,164	)		(642,713	)
Floating rate		6,174,979		5,165,634		(64,949	)		(1,466	)		(66,415	)		(119,153	)
Indices		34,788,265		28,995,231		(859,913	)		(1,240,769	)		(2,100,682	)		(1,496,882	)
Securities		510,580		38,030		(100,285	)		21,096			(79,189	)		-
Commodities		52,776		-		(464	)		(208	)		(672	)		-
Other		29,104		1,411,694		-			-			-			(22,754	)
Option contracts		1,402,563,048		1,638,428,821		580,271			5,647			585,918			705,926
Purchase commitments - long position		376,144,694		479,738,503		441,065			(132,133	)		308,932			1,153,542
Foreign currency		18,257,149		15,052,951		242,497			(96,019	)		146,478			1,015,558
Interbank market		60,637,492		39,892,289		49,624			(43,689	)		5,935			5,197
Floating rate		271,663		298,642		1,615			(1,578	)		37			342
Indices		295,681,221		421,835,630		121,836			(37,485	)		84,351			70,254
Securities		644,996		1,870,464		9,005			44,362			53,367			51,925
Commodities		577,074		-		14,205			681			14,886			-
Other		75,099		788,527		2,283			1,595			3,878			10,266
Commitments to sell - long position		373,375,184		430,846,896		1,768,526			265,524			2,034,050			3,338,325
Foreign currency		8,365,688		6,020,312		110,756			(6,734	)		104,022			235,275
Interbank market		43,647,368		28,848,104		123,055			19,383			142,438			541,516
Fixed rates		-		1,847		-			-			-			1,019
Floating rate		951,336		248,249		1,320			(109	)		1,211			473
Indices		315,525,306		383,546,099		580,413			149,676			730,089			1,086,779
Securities		3,208,066		3,846,409		923,319			111,815			1,035,134			1,434,657
Commodities		1,523,149		-		18,805			(11,242	)		7,563			-
Other		154,271		8,335,876		10,858			2,735			13,593			38,606
Purchase commitments - short position		188,042,007		338,996,888		(591,690	)		175,341			(416,349	)		(972,470	)
Foreign currency		8,827,921		8,699,943		(265,100	)		68,894			(196,206	)		(790,560	)
Interbank market		32,185,649		21,480,383		(37,218	)		24,860			(12,358	)		(18,130	)
Indices		146,217,473		306,634,263		(269,154	)		133,757			(135,397	)		(112,711	)
Securities		581,395		1,642,133		(8,757	)		(47,595	)		(56,352	)		(45,351	)
Commodities		154,470		-		(9,178	)		(2,980	)		(12,158	)		-
Other		75,099		540,166		(2,283	)		(1,595	)		(3,878	)		(5,718	)
Commitments to sell - short position		465,001,163		388,846,534		(1,037,630	)		(303,085	)		(1,340,715	)		(2,813,471	)
Foreign currency		6,655,222		9,916,498		(149,846	)		75,726			(74,120	)		(449,825	)
Interbank market		94,627,703		31,783,736		(115,818	)		(93,697	)		(209,515	)		(620,210	)
Fixed rates		-		1,847		-			-			-			(1,019	)
Floating rate		-		-		(136	)		285			149			-
Indices		361,744,748		344,320,848		(564,759	)		(230,732	)		(795,491	)		(1,074,027	)
Securities		1,632,838		2,628,139		(183,537	)		(56,772	)		(240,309	)		(658,037	)
Commodities		186,482		-		(12,919	)		5,083			(7,836	)		-
Other		154,170		195,466		(10,615	)		(2,978	)		(13,593	)		(10,353	)
Forward contracts		14,800,773		20,365,774		1,258,916			(5,545	)		1,253,371			826,014
Purchases receivable		5,214,283		10,816,794		991,018			(20,686	)		970,332			2,419,568
Foreign currency		4,483,203		9,163,199		283,248			(20,732	)		262,516			962,369
Interbank market		-		168,320		-			-			-			-
Fixed rates		277,822		769,001		277,792			-			277,792			768,519
Floating rate		429,495		688,783		429,195			-			429,195			687,713
Securities		8		-		8			-			8			-
Commodities		23,710		-		731			47			778			-
Other		45		27,491		44			(1	)		43			967
Purchases payable		2,864,403		1,769,789		(747,480	)		775			(746,705	)		(1,565,247	)
Foreign currency		2,786,712		1,215,308		(34,432	)		293			(34,139	)		(87,269	)
Interbank market		-		417,452		-			-			-			(25	)
Fixed rates		-		-		(277,792	)		-			(277,792	)		(768,519	)
Floating rate		-		-		(429,195	)		-			(429,195	)		(687,713	)
Securities		-		-		(8	)		-			(8	)		-
Commodities		77,691		-		(6,053	)		482			(5,571	)		-
Other		-		137,029		-			-			-			(21,721	)
Sales receivable		4,067,968		1,370,417		1,612,292			3,853			1,616,145			901,461
Foreign currency		2,420,794		303,998		19,767			2,552			22,319			9,592
Interbank market		8,558		94,353		8,533			(45	)		8,488			320
Fixed rates		284,881		66,306		285,029			(496	)		284,533			66,012
Floating rate		260,059		258,626		260,043			(82	)		259,961			258,252
Indices		2,176		-		2,147			-			2,147			-
Securities		1,044,492		-		1,035,514			(391	)		1,035,123			-
Commodities		47,008		-		1,259			2,315			3,574			-
Other		-		647,134		-			-			-			567,285
Sales deliverable		2,654,119		6,408,774		(596,914	)		10,513			(586,401	)		(929,768	)
Foreign currency		2,578,707		6,052,716		(83,673	)		9,771			(73,902	)		(611,666	)
Interbank market		-		324,375		-			-			-			-
Fixed rates		-		-		(250,558	)		197			(250,361	)		(48,066	)
Floating rate		-		-		(260,043	)		82			(259,961	)		(258,252	)
Securities		-		-		(68	)		1			(67	)		-
Commodities		75,412		-		(2,572	)		462			(2,110	)		-
Other		-		31,683		-			-			-			(11,784	)

4.22

	Memorandum account / Notional amount				Balance sheet account receivable / (received) (payable) / paid			Adjustments to market value (in results / stockholders' equity)			Market value
	09/30/2012		09/30/2011		09/30/2012			09/30/2012			09/30/2012			09/30/2011
Credit derivatives		7,101,978		4,101,028		102,814			62,615			165,429			897,556
Asset position		2,396,780		3,023,379		191,826			62,968			254,794			935,549
Foreign currency		-		65,683		-			-			-			852
Fixed rate		1,176,022		2,660,410		191,624			44,981			236,605			928,838
Floating rate		-		-		-			-			-			(3,206	)
Securities		914,404		297,286		113			15,403			15,516			9,065
Other		306,354		-		89			2,584			2,673			-
Liability position		4,705,198		1,077,649		(89,012	)		(353	)		(89,365	)		(37,993	)
Foreign currency		-		65,766		-			-			-			(815	)
Fixed rate		3,512,938		715,242		(88,794	)		17,603			(71,191	)		(28,108	)
Securities		882,581		296,641		(128	)		(15,208	)		(15,336	)		(9,070	)
Other		309,679		-		(90	)		(2,748	)		(2,838	)		-
Forwards operations		35,958,421		29,264,080		(24,930	)		76,577			51,647			275,452
Asset position		18,693,858		16,615,463		338,886			49,509			388,395			1,053,446
Foreign currency		18,269,420		16,210,205		330,280			49,509			379,789			840,044
Interbank market		-		18,005		-			-			-			142
Fixed rate		-		-		-			-			-			206,984
Floating rate		407,136		371,807		7,587			-			7,587			6,276
Indices		17,302		-		1,019			-			1,019			-
Other		-		15,446		-			-			-			-
Liability position		17,264,563		12,648,617		(363,816	)		27,068			(336,748	)		(777,994	)
Foreign currency		17,249,108		12,367,924		(363,342	)		27,068			(336,274	)		(567,882	)
Interbank market		13,985		12,591		(472	)		-			(472	)		(448	)
Fixed rate		-		199,489		-			-			-			(208,447	)
Floating rate		-		68,613		-			-			-			(1,217	)
Indices		1,470		-		(2	)		-			(2	)		-
Swap with target flow		1,084,705		-		(1,123	)		(31,978	)		(33,101	)		-
Asset position - Interbank market		541,791		-		-			-			-			-
Interbank market		530,730		-		-			-			-			-
Fixed rate		11,061		-		-			-			-			-
Liability position - Interbank market		542,914		-		(1,123	)		(31,978	)		(33,101	)		-
Foreign currency		465,652		-		(775	)		(30,241	)		(31,016	)		-
Interbank market		66,192		-		(339	)		(1,598	)		(1,937	)		-
Fixed rate		11,070		-		(9	)		(139	)		(148	)		-
Target flow of swap - Asset position - Foreign currency		549,661		-		-			38,012			38,012			-
Other derivative financial instruments		6,056,896		6,415,486		784,827			95,306			880,133			449,572
Asset position		5,576,209		3,697,317		1,815,588			121,402			1,936,990			711,663
Foreign currency		709,889		411,836		82,985			136,449			219,434			313,877
Fixed rate		1,662,797		268,888		1,179,636			(2,025	)		1,177,611			23,846
Floating rate		283,725		-		253,781			-			253,781			-
Indices		-		-		-			126			126			-
Securities		2,919,798		-		299,186			(13,148	)		286,038			-
Other		-		3,016,593		-			-			-			373,940
Liability position		480,687		2,718,169		(1,030,761	)		(26,096	)		(1,056,857	)		(262,091	)
Foreign currency		319,013		310,281		(83,242	)		(26,040	)		(109,282	)		(86,250	)
Fixed rate		-		2,300,012		(613,348	)		2,381			(610,967	)		(129,500	)
Floating rate		-		-		(284,377	)		(2,437	)		(286,814	)		-
Securities		161,674		-		(49,794	)		-			(49,794	)		-
Other		-		107,876		-			-			-			(46,341	)
				ASSET		9,252,503			1,792,451			11,044,954			13,860,353
				LIABILITIES		(6,970,890	)		(2,154,496	)		(9,125,386	)		(11,210,542	)
				TOTAL		2,281,613			(362,045	)		1,919,568			2,649,811
Derivative contracts mature as follows (in days):
Memorandum account/notional amount		0 - 30		31 - 180		181 - 365			Over 365			06/30/2012			09/30/2011
Futures		33,145,954		176,825,572		104,533,635			115,809,555			430,314,716			286,657,893
Swaps		5,176,346		31,330,105		26,420,142			58,280,754			121,207,347			83,996,773
Options		95,240,293		1,000,880,314		243,225,686			63,216,755			1,402,563,048			1,638,428,821
Forwards (onshore)		3,243,598		6,462,573		2,913,553			2,181,049			14,800,773			20,365,774
Credit derivatives		-		1,538,882		598,681			4,964,415			7,101,978			4,101,028
Forwards (offshore)		9,135,208		19,885,647		4,018,600			2,918,966			35,958,421			29,264,080
Swaps with target flow		-		-		11,061			530,730			541,791			-
Target flow of swap		-		-		11,035			538,626			549,661			-
Other		143,065		2,659,068		351,800			2,902,963			6,056,896			6,415,486

4.23

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.

	09/30/2012																					09/30/2011
	Cost		Adjustments to market value (in results / stockholders' equity)			Market value		%		0 - 30		31 - 90		91 - 180		181 - 365		366 - 720		Over 720 days		Market value
ASSET
Option premiums		2,209,591		133,391			2,342,982		21.3		107,744		132,080		900,969		238,765		122,329		841,095		4,491,869
BM&F Bovespa		929,967		48,588			978,555		8.9		33,121		75,987		709,836		100,797		58,814		-		2,759,659
Financial institutions		248,251		(5,449	)		242,802		2.2		61,153		45,176		62,242		49,320		19,704		5,207		461,202
Companies		1,031,373		90,252			1,121,625		10.2		13,470		10,917		128,891		88,648		43,811		835,888		1,271,006
Individuals		-		-			-		-		-		-		-		-		-		-		2
Forwards (onshore)		2,603,310		(16,833	)		2,586,477		23.4		663,425		684,372		161,883		339,968		53,467		683,362		3,321,031
BM&F Bovespa		1,046,500		(437	)		1,046,063		9.5		362,948		611,059		70,184		1,813		59		-		554,504
Financial institutions		299,776		(1,531	)		298,245		2.7		260,075		771		37,211		180		8		-		211,839
Companies		1,256,304		(15,117	)		1,241,187		11.2		40,402		72,542		54,467		337,975		53,078		682,723		2,554,688
Individuals		730		252			982		0.0		-		-		21		-		322		639		-
Swaps - Adjustment receivable		2,093,302		1,404,002			3,497,304		31.5		82,910		263,469		381,279		400,152		627,295		1,742,199		3,346,799
BM&F Bovespa		223,891		226,920			450,811		4.1		12,796		14,063		15,020		22,224		130,184		256,524		415,362
Financial institutions		199,087		232,642			431,729		3.9		11,176		64,334		157,797		33,831		25,690		138,901		327,066
Companies		1,633,689		939,085			2,572,774		23.1		58,493		177,849		203,922		338,935		462,577		1,330,998		2,580,490
Individuals		36,635		5,355			41,990		0.4		445		7,223		4,540		5,162		8,844		15,776		23,881
Credit derivatives		191,826		62,968			254,794		2.3		-		1,869		1,011		673		26,306		224,935		935,549
Financial institutions		41,082		2,672			43,754		0.4		-		1,837		984		618		1,182		39,133		541,938
Companies		150,744		60,296			211,040		1.9		-		32		27		55		25,124		185,802		393,611
Forwards (offshore)		338,886		49,509			388,395		3.5		67,525		74,511		68,199		63,604		66,006		48,550		1,053,442
Financial institutions		217,472		(2	)		217,470		2.0		49,407		40,600		41,598		23,186		38,797		23,882		900,116
Companies		121,306		49,364			170,670		1.5		18,117		33,718		26,587		40,371		27,209		24,668		150,571
Individuals		108		147			255		0.0		1		193		14		47		-		-		2,755
Swaps with target flow - Companies		-		38,012			38,012		0.3		-		-		-		203		412		37,397		-
Other - Financial institutions		1,815,588		121,402			1,936,990		17.7		142,334		635,656		791,087		86,111		27,604		254,198		711,663
BM&F Bovespa		-		83,198			83,198		0.8		83,072		90		36		-		-		-		223,903
Financial institutions		1,353,812		(11,395	)		1,342,417		12.2		59,094		606,110		471,687		66,441		8,347		130,738		345,304
Companies		461,776		49,599			511,375		4.7		168		29,456		319,364		19,670		19,257		123,460		142,456
Total		9,252,503		1,792,451			11,044,954		100.0		1,063,938		1,791,957		2,304,428		1,129,476		923,419		3,831,736		13,860,353
% per maturity term											9.6		16.2		20.9		10.2		8.4		34.7
Total at 09/30/2011		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
% per maturity term											10.2		16.4		22.3		18.0		7.7		25.4

4.24

	09/30/2012																													09/30/2011
	Cost			Adjustments 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		(23,658	)		(72,013	)		(95,671	)		1.0		(19,410	)		(6,113	)		(23	)		(14,423	)		(19,201	)		(36,501	)		(417,581	)
BM&F Bovespa		(23,658	)		(71,919	)		(95,577	)		1.0		(19,410	)		(6,064	)		-			(14,423	)		(19,182	)		(36,498	)		(412,777	)
Financial institutions		-			(65	)		(65	)		-		-			(20	)		(23	)		-			(19	)		(3	)		(3,209	)
Companies		-			(29	)		(29	)		-		-			(29	)		-			-			-			-			(1,595	)
Option premiums		(1,629,320	)		(127,744	)		(1,757,064	)		19.2		(97,761	)		(143,016	)		(1,074,911	)		(272,054	)		(119,631	)		(49,691	)		(3,785,941	)
BM&F Bovespa		(1,021,746	)		(139,511	)		(1,161,257	)		12.7		(48,919	)		(109,216	)		(887,030	)		(64,439	)		(51,653	)		-			(2,600,918	)
Financial institutions		(469,007	)		12,672			(456,335	)		5.0		(44,367	)		(25,873	)		(144,652	)		(155,526	)		(45,222	)		(40,695	)		(995,718	)
Companies		(138,567	)		(905	)		(139,472	)		1.5		(4,475	)		(7,927	)		(43,229	)		(52,089	)		(22,756	)		(8,996	)		(189,299	)
Individuals		-			-			0			-		-			-			-			-			-			-			(6	)
Forwards (onshore)		(1,344,394	)		11,288			(1,333,106	)		14.6		(281,615	)		(33,059	)		(14,289	)		(314,126	)		(10,107	)		(679,910	)		(2,495,014	)
BM&F Bovespa		-			-			0			-		-			-			-			-			-			-			(25	)
Financial institutions		(262,150	)		475			(261,675	)		2.9		(260,269	)		(18	)		(9	)		(1,033	)		(283	)		(63	)		(222,141	)
Companies		(1,082,244	)		10,813			(1,071,431	)		11.7		(21,346	)		(33,041	)		(14,280	)		(313,093	)		(9,824	)		(679,847	)		(2,272,848	)
Swaps - difference payable		(2,488,806	)		(1,934,668	)		(4,423,474	)		48.4		(77,387	)		(184,762	)		(436,793	)		(769,509	)		(807,853	)		(2,147,170	)		(3,433,928	)
BM&F Bovespa		(349,112	)		(385,016	)		(734,128	)		8.0		(626	)		(17,353	)		(12,738	)		(151,420	)		(143,501	)		(408,490	)		(619,943	)
Financial institutions		(622,030	)		(512,665	)		(1,134,695	)		12.4		(49,149	)		(80,022	)		(224,539	)		(189,614	)		(119,911	)		(471,460	)		(768,657	)
Companies		(1,479,765	)		(1,027,479	)		(2,507,244	)		27.5		(25,999	)		(76,985	)		(180,691	)		(420,692	)		(537,186	)		(1,265,691	)		(2,005,491	)
Individuals		(37,899	)		(9,508	)		(47,407	)		0.5		(1,613	)		(10,402	)		(18,825	)		(7,783	)		(7,255	)		(1,529	)		(39,837	)
Credit derivatives		(89,012	)		(353	)		(89,365	)		1.0		-			(11,204	)		(1,165	)		(588	)		(5,726	)		(70,682	)		(37,993	)
Financial institutions		(88,707	)		4,724			(83,983	)		0.9		-			(10,736	)		(230	)		-			(4,544	)		(68,473	)		(15,812	)
Companies		(305	)		(5,077	)		(5,382	)		0.1		-			(468	)		(935	)		(588	)		(1,182	)		(2,209	)		(22,181	)
Forwards (offshore)		(363,816	)		27,068			(336,748	)		3.7		(88,196	)		(89,611	)		(77,962	)		(30,634	)		(47,418	)		(2,927	)		(777,994	)
Financial institutions		(258,563	)		5,865			(252,698	)		2.8		(66,405	)		(62,363	)		(64,994	)		(17,912	)		(40,858	)		(166	)		(643,906	)
Companies		(105,077	)		21,236			(83,841	)		0.9		(21,757	)		(27,073	)		(12,968	)		(12,722	)		(6,560	)		(2,761	)		(133,215	)
Individuals		(176	)		(33	)		(209	)		-		(34	)		(175	)		-			-			-			-			(873	)
Swaps with target flow - Companies		(1,123	)		(31,978	)		(33,101	)		0.4		-			-			-			(148	)		(240	)		(32,713	)		-
Other		(1,030,761	)		(26,096	)		(1,056,857	)		11.7		(94	)		(296,787	)		(610,848	)		(90,210	)		(36,568	)		(22,350	)		(262,091	)
Financial institutions		(684,664	)		(1,191	)		(685,855	)		7.5		-			(286,815	)		(304,725	)		(83,043	)		-			(11,272	)		(208,162	)
Companies		(346,097	)		(24,905	)		(371,002	)		4.2		(94	)		(9,972	)		(306,123	)		(7,167	)		(36,568	)		(11,078	)		(53,929	)
Total		(6,970,890	)		(2,154,496	)		(9,125,386	)		100.0		(564,463	)		(764,552	)		(2,215,991	)		(1,491,692	)		(1,046,744	)		(3,041,944	)		(11,210,542	)
% per maturity term													6.2			8.4			24.3			16.3			11.5			33.3
Total at 09/30/2011		(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	)
% per maturity term													9.0			17.3			21.3			21.9			7.9			22.6

4.25

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.

	09/30/2012
	Futures		Swaps		Options		Forwards (onshore)		Credit derivatives		Forwards (offshore)		Swap with target flow		Target flow of swap		Other
BM&F/Bovespa		355,028,951		8,893,557		1,355,950,765		1,055,540		-		-		-		-		-
Overt-the-counter market		75,285,765		112,313,790		46,612,283		13,745,233		7,101,978		35,958,421		541,791		549,661		6,056,896
Financial institutions		21,496,702		50,279,335		36,379,394		876,347		4,888,470		28,944,175		-		-		4,206,881
Companies		53,789,063		53,115,092		10,232,889		12,854,301		2,213,508		6,984,597		541,791		549,661		1,850,015
Individuals		-		8,919,363		-		14,585		-		29,649		-		-		-
Total		430,314,716		121,207,347		1,402,563,048		14,800,773		7,101,978		35,958,421		541,791		549,661		6,056,896
Total 09/30/2011		286,657,893		83,996,773		1,638,428,821		20,365,774		4,101,028		29,264,080		-		-		6,415,486

4.26

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.

	Notional amount
	09/30/2012			09/30/2011
Transferred		2,396,780			3,023,379
Credit swaps whose underlying assets are:
Securities		2,386,970			2,154,036
Total return rate swaps whose underlying assets are:
Securities		9,810			869,343
Received		(4,705,198	)		(1,077,649	)
Credit swaps whose underlying assets are:
Securities		(4,705,198	)		(1,068,690	)
Total return rate swaps whose underlying assets are:
Securities		-			(8,959	)
Total		(2,308,418	)		1,945,730
Effect on the Referential Equity (Note 3)		(98,235	)		(72,196	)

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

4.27

V - Accounting hedge

Cash flow - 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, 2012, ITAÚ UNIBANCO HOLDING negotiated DI Futures agreements at BM&FBOVESPA with maturity between 2012 and 2017 in the amount of R$ 47,998,049 (R$ 41,104,979 at September 30, 2011). To protect the future cash flows of debt against exposure to variable interest rate (LIBOR), at September 30, 2012 ITAÚ UNIBANCO HOLDING negotiated swap contracts with maturity in 2015 in the amount of R$ 798,172 (R$ 728,913 at September 30, 2011). These derivative financial instruments gave rise to adjustment to market value net of tax effects recorded in stockholders’ equity of R$ (262,103) (R$ (193,824) at September 30, 2011), of which R$ (241,075) (R$ (165,714) at September 30, 2011) refers to CDB and R$ (21,028) (R$ (28,110) at September 30, 2011) refers to Redeemable Preferred shares. The hedged items total R$ 47,019,638 (R$ 41,452,788 at September 30, 2011), of which R$ 46,221,466 (R$ 40,723,875 at September 30, 2011) are CDB with maturities between 2012 and 2017 and R$ 798,172 (R$ 728,913 at September 30, 2011) 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 to recognize in Results in the following 12 months amount to R$ (485,579) (R$ (5,505) at September 30, 2011).

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

Market Risk – The hedging strategy against market risk of ITAÚ UNIBANCO HOLDING consists in hedging the exposure to variation in market risk, receipt of interest, which are attributable to changes in interest rates related to recognized assets.

To hedge the variation in market risk in the receipt of interest, ITAÚ´UNIBANCO HOLDING uses interest rate swap contracts, in the amount of R$ 477,305. These Derivative Financial Instruments gave rise to an adjustment to market value of R$ (2,814).

Hedge assets are prefixed items, in the amount of R$ 477,305, expressed in UF (Chilean Unit of Account - CLF), issued in Chile, with maturities between 2012 and 2041. Such items gave rise to an adjustment to market value of R$ (2,783) which represents the effective hedge portion recognized in income.

ITAÚ UNIBANCO HOLDING uses the market risk hedge as follows:

• To hedge against market risk variation in the receipt of interest resulting from variations in the fair value of ICPR rate (Real Promédio Camera Index).

The effectiveness computed for hedge portfolio is in conformity with the provisions of BACEN Circular No. 3.082 of January 30, 2002.

Hedge relationships were designated in 2012 and swaps will mature in 2027. Receipts (payments) of interest flows are expected to occur and will affect the statement of income in monthly periods.

Related operations - the swap operations contracted in a negotiation associated with the funding and/or investment in the amount of R$ 35,239 (R$ 45,645 at September 30, 2011) 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, of September 11, 2002.

4.28

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

	01/01 to 09/30/2012			01/01 to 09/30/2011
Swap		(729,966	)		1,544,667
Forwards (onshore)		53,872			(109,658	)
Futures		(818,550	)		(1,424,724	)
Options		611,046			395,463
Credit derivatives		140,001			117,439
Other		55,258			(941,369	)
Foreign exchange variation on investments abroad		1,519,278			2,528,218
Total		830,939			2,110,036

4.29

Changes in adjustment to market value for the period

	01/01 to 09/30/2012			01/01 to 09/30/2011
Opening balance		(160,343	)		1,408,206
Adjustments with impact on:
Results		930,095			(652,026	)
Trading securities		664,032			234,886
Derivative financial instruments		266,063			(886,912	)
Stockholders’ equity		1,565,505			(224,877	)
Available-for-sale		1,712,787			74,258
Accounting Hedge – Derivative Financial Instruments		(147,282	)		(299,135	)
Futures		(145,559	)		(268,532	)
Swap		(1,723	)		(30,603	)

Closing balance		2,335,257			531,303
Adjustment to market value		2,335,257			531,303
Trading securities		690,730			487,231
Available-for-sale securities		2,431,386			529,114
Derivative financial instruments		(786,859	)		(485,042	)
Trading securities		(362,048	)		(134,863	)
Accounting hedge		(424,811	)		(350,179	)
Futures		(392,950	)		(299,393	)
Swap		(31,861	)		(50,786	)

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

	09/30/2012		09/30/2011
Adjustment of available-for-sale securities – stockholders’ equity		2,431,386		529,114
Adjustment to held-to-maturity securities (*)		1,202,814		605,696
Total unrealized gain		3,634,200		1,134,810

(*)

Includes the amount of R$ 10,042 (R$ 11,017 at 09/30/2011) regarding the adjustment to market value of securities reclassified up to December 31, 2003, not recognized in net income.

4.30

Sensitivity analysis (TRADING AND BANKING PORTFOLIOS)

In compliance with CVM Instruction No. 475 of December 17, 2008, ITAÚ UNIBANCO HOLDING carried out a sensitivity analysis by market risk factors considered relevant to which it 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 HOLDING exposure under exceptional scenarios.

Measurement of market risk segregates operations in trading portfolio and banking portfolio, pursuant to the criteria set forth in the New Capital Accord – Basel II and in the instructions CMN Resolution No. 3,464 of June 26, 2007 and BACEN Circular No. 3,354 of June 27, 2007.

The trading portfolio consists of all transactions, including derivatives, which are held with the intention of trading in the short term or of hedging other financial instruments of this portfolio, and that are not subject to limitations on their marketability. These are transactions designated for obtaining benefits from price movements, actual or expected in the short term or conduction of arbitrage.

The banking portfolio comprises transactions that do not fit into the trading portfolio. Consists in operations designated for active management of financial risks and held not for trading in the short term. Its composition may include derivatives.

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 ITAÚ UNIBANCO HOLDING.

		Amounts in reais thousands
Trading portfolio	Exposures		09/30/2012 (*)
			Scenarios
Risk factors	Risk of variation in:		I			II			III
Fixed rate	Fixed rates in reais			(71	)		(1,734	)		(3,373	)
Foreign exchange	Rates of foreign currency coupon			(191	)		(4,898	)		(9,750	)
Foreign currency	Exchange variation			51			(1,264	)		(2,527	)
Price indices	Rates of price index coupon			(641	)		(15,890	)		(31,527	)
Reference rate	Rate of TR coupon			370			(9,326	)		(18,815	)
Shares	Share price			4,850			(121,247	)		(242,494	)
	Total without correlation			4,367			(154,358	)		(308,486	)
	Total with correlation			3,512			(124,127	)		(248,068	)

(*)

Amounts net of tax effects.

		Amount in reais thousands
Trading and Banking portfolios	Exposures	09/30/2012 (*)
		Scenarios
Risk factors	Risk of variation in:	I			II			III
Fixed rate	Fixed rates in reais		(1,456	)		(36,252	)		(72,224	)
Foreign exchange	Rates of foreign currency coupon		(1,065	)		(26,295	)		(51,897	)
Foreign currency	Exchange variation		2,925			(73,130	)		(146,260	)
Price indices	Rates of price index coupon		(3,375	)		(82,430	)		(160,998	)
Reference rate	Rate of TR coupon		(5,425	)		(132,481	)		(258,608	)
Shares	Share price		6,674			(166,852	)		(333,704	)
	Total without correlation		(1,722	)		(517,441	)		(1,023,689	)
	Total with correlation		(1,384	)		(416,097	)		(823,195	)

(*)

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 commodities and interest rate indices, and 1 percentage point in currency and share prices, which is based on market information (BM&FBOVESPA, 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.

Derivative financial instruments engaged by ITAÚ UNIBANCO HOLDING are shown in the item Derivative Financial Instruments in this note.

4.31

NOTE 8 - LOAN, LEASE AND OTHER CREDIT OPERATIONS

a) Composition of the portfolio with credit granting characteristics

I – By type of operations and risk level

	09/30/2012																				09/30/2011
Risk levels	AA		A		B		C		D		E		F		G		H		Total		Total
Loan operations		115,807,155		97,826,156		33,845,631		17,236,850		10,334,917		3,284,760		2,600,024		2,283,984		11,423,557		294,643,034		264,360,543
Loans and discounted trade receivables		50,141,093		48,475,563		22,812,121		12,547,305		8,590,067		2,451,927		2,040,081		1,829,758		9,613,505		158,501,420		142,905,371
Financing		43,164,169		39,292,686		9,643,086		4,143,783		1,428,381		714,422		538,025		434,773		1,740,713		101,100,038		93,637,847
Farming and agribusiness financing		4,090,520		689,128		652,142		57,267		193,214		87,926		364		236		24,168		5,794,965		5,838,036
Real estate financing		18,411,373		9,368,779		738,282		488,495		123,255		30,485		21,554		19,217		45,171		29,246,611		21,979,289

Lease operations		4,297,118		8,417,451		2,797,090		1,316,074		744,573		324,368		253,370		205,208		779,043		19,134,295		29,686,816

Credit card operations		-		30,276,309		1,608,056		2,058,664		744,079		439,767		351,557		353,793		2,639,359		38,471,584		37,044,013

Advance on exchange contracts (1)		3,467,671		1,072,973		806,319		118,122		26,254		20,747		477		-		7,766		5,520,329		4,066,389

Other sundry receivables (2)		243		1,925,307		5,566		18,227		12,671		3,694		23,876		2,753		48,713		2,041,050		120,925

Total operations with credit granting characteristics		123,572,187		139,518,196		39,062,662		20,747,937		11,862,494		4,073,336		3,229,304		2,845,738		14,898,438		359,810,292		335,278,686
Endorsements and sureties (3)																				57,792,446		46,957,352
Total with endorsements and sureties		123,572,187		139,518,196		39,062,662		20,747,937		11,862,494		4,073,336		3,229,304		2,845,738		14,898,438		417,602,738		382,236,038
TOTAL – 09/30/2011		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

(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.

4.32

II – By maturity and risk level

	09/30/2012																													09/30/2011
	AA		A			B			C			D			E			F			G			H			Total			Total
	OVERDUE OPERATIONS (1) (2)
Falling due installments		-		-			3,306,758			3,600,414			2,945,441			1,808,417			1,377,798			1,254,000			5,711,944			20,004,772			16,164,876
01 to 30		-		-			221,437			232,912			161,623			81,420			60,338			57,054			439,776			1,254,560			1,167,020
31 to 60		-		-			113,282			122,735			102,992			63,768			48,723			47,451			232,574			731,525			656,637
61 to 90		-		-			112,859			125,970			107,336			64,720			50,583			47,199			242,094			750,761			665,408
91 to 180		-		-			323,012			371,270			310,329			189,362			148,006			136,427			678,825			2,157,231			1,816,932
181 to 365		-		-			574,073			667,349			577,793			349,102			268,235			259,691			1,193,430			3,889,673			3,219,190
Over 365		-		-			1,962,095			2,080,178			1,685,368			1,060,045			801,913			706,178			2,925,245			11,221,022			8,639,689

Overdue installments		-		-			660,302			860,200			1,076,961			922,249			853,169			996,447			6,517,300			11,886,628			11,777,935
01 to 14		-		-			26,911			92,869			70,980			38,821			27,369			24,711			124,243			405,904			312,898
15 to 30		-		-			589,957			128,628			153,109			57,280			36,044			31,155			157,193			1,153,366			1,206,356
31 to 60		-		-			43,434			592,009			290,107			155,964			93,631			78,833			306,392			1,560,370			1,393,603
61 to 90		-		-			-			33,846			510,608			162,772			126,535			97,943			363,779			1,295,483			1,153,377
91 to 180		-		-			-			12,848			52,157			478,215			522,437			712,606			1,322,644			3,100,907			3,398,764
181 to 365		-		-			-			-			-			29,197			47,153			51,199			4,119,014			4,246,563			4,096,154
Over 365		-		-			-			-			-			-			-			-			124,035			124,035			216,783
SUBTOTAL		-		-			3,967,060			4,460,614			4,022,402			2,730,666			2,230,967			2,250,447			12,229,244			31,891,400			27,942,811
SPECIFIC ALLOWANCE		-		-			(39,670	)		(133,818	)		(402,240	)		(819,200	)		(1,115,484	)		(1,575,313	)		(12,229,244	)		(16,314,969	)		(13,776,165	)
SUBTOTAL – 09/30/2011		-		-			4,086,093			3,759,328			3,457,325			2,415,869			2,150,524			1,989,674			10,083,998			27,942,811
	NON-OVERDUE OPERATIONS
Falling due installments		122,662,105		138,354,789			34,650,974			15,996,876			7,671,614			1,313,800			983,201			585,114			2,600,555			324,819,028			305,660,362
01 to 30		10,232,924		24,254,792			7,077,097			4,010,212			1,575,705			170,180			121,388			67,527			543,988			48,053,813			46,189,167
31 to 60		10,234,148		12,147,390			3,682,667			1,701,796			685,939			63,387			32,295			26,070			213,931			28,787,623			25,866,946
61 to 90		6,572,780		8,375,050			2,331,409			942,574			329,592			115,113			24,950			21,002			128,436			18,840,906			18,884,513
91 to 180		12,887,964		16,567,062			4,300,710			1,759,201			771,225			115,383			57,549			76,639			257,658			36,793,391			33,400,549
181 to 365		19,988,601		20,155,684			5,072,726			2,506,113			1,210,765			168,426			103,050			86,106			328,530			49,620,001			45,482,578
Over 365		62,745,688		56,854,811			12,186,365			5,076,980			3,098,388			681,311			643,969			307,770			1,128,012			142,723,294			135,836,609

Overdue up to 14 days		910,082		1,163,407			444,628			290,447			168,478			28,870			15,136			10,177			68,639			3,099,864			1,675,513
SUBTOTAL		123,572,187		139,518,196			35,095,602			16,287,323			7,840,092			1,342,670			998,337			595,291			2,669,194			327,918,892			307,335,875
GENERIC ALLOWANCE		-		(697,591	)		(350,956	)		(488,619	)		(784,009	)		(402,801	)		(499,169	)		(416,704	)		(2,669,194	)		(6,309,043	)		(5,883,948	)
SUBTOTAL – 09/30/2011		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
GRAND TOTAL		123,572,187		139,518,196			39,062,662			20,747,937			11,862,494			4,073,336			3,229,304			2,845,738			14,898,438			359,810,292			335,278,686
EXISTING ALLOWANCE		-		(697,591	)		(390,626	)		(996,305	)		(3,557,562	)		(2,036,261	)		(2,260,190	)		(2,845,454	)		(14,898,438	)		(27,682,427	)		(24,718,528	)
Minimum allowance required (3)		-		(697,591	)		(390,626	)		(622,438	)		(1,186,249	)		(1,222,001	)		(1,614,652	)		(1,992,017	)		(14,898,438	)		(22,624,012	)		(19,660,113	)
Additional allowance (4)		-		-			-			(373,867	)		(2,371,313	)		(814,260	)		(645,538	)		(853,437	)		-			(5,058,415	)		(5,058,415	)
GRAND TOTAL 09/30/2011		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
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	)
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	)
Additional allowance (4)		-		-			-			(168,497	)		(2,766,699	)		(754,764	)		(617,195	)		(751,260	)		-			(5,058,415	)

(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$ 22,200,624 (R$ 18,849,520 at 09/30/2011);

(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 calculated to maintain the strength necessary for absorbing possible increases in default expected in history of scenarios of losses incurred.

4.33

III – By business sector

	09/30/2012		%			09/30/2011		%
PUBLIC SECTOR		926,771		0.3	%		1,741,160		0.5	%
Energy		269,838		0.1	%		457,506		0.1	%
Petrochemical and chemical		446,109		0.1	%		272,089		0.1	%
Sundry		210,824		0.1	%		1,011,565		0.3	%
PRIVATE SECTOR		358,883,521		99.7	%		333,537,526		99.5	%
COMPANIES		200,834,820		55.8	%		184,583,344		55.1	%
Sugar and alcohol		7,655,762		2.1	%		6,944,958		2.1	%
Agribusiness and fertilizers		11,233,122		3.1	%		11,388,042		3.4	%
Food and beverage		9,980,001		2.8	%		9,771,547		2.9	%
Banks and other financial institutions		4,352,083		1.2	%		5,355,089		1.6	%
Capital assets		7,200,822		2.0	%		6,664,806		2.0	%
Pulp and paper		2,884,579		0.8	%		2,072,237		0.6	%
Publishing and printing		1,643,991		0.5	%		1,607,793		0.5	%
Electronic and IT		5,057,889		1.4	%		4,757,385		1.4	%
Packaging		1,825,825		0.5	%		1,697,957		0.5	%
Energy and sewage		5,517,196		1.5	%		5,854,335		1.7	%
Education		1,144,439		0.3	%		1,088,102		0.3	%
Pharmaceuticals and cosmetics		3,907,760		1.1	%		3,522,317		1.1	%
Real estate agents		13,141,711		3.7	%		11,032,566		3.3	%
Entertainment and tourism		3,356,340		0.9	%		3,171,751		0.9	%
Wood and furniture		3,168,817		0.9	%		2,895,173		0.9	%
Construction material		5,073,193		1.4	%		5,323,564		1.6	%
Steel and metallurgy		8,074,963		2.2	%		7,365,750		2.2	%
Media		845,037		0.2	%		1,178,116		0.4	%
Mining		2,835,491		0.8	%		1,930,014		0.6	%
Infrastructure work		4,811,868		1.3	%		4,792,144		1.4	%
Oil and gas		2,962,724		0.8	%		2,762,977		0.8	%
Petrochemical and chemical		5,889,323		1.6	%		5,944,812		1.8	%
Health care		1,744,683		0.5	%		1,751,842		0.5	%
Insurance and reinsurance and pension plans		5,727		0.0	%		6,095		0.0	%
Telecommunications		1,094,526		0.3	%		1,117,281		0.3	%
Third sector		112,769		0.0	%		109,862		0.0	%
Trading		2,318,729		0.6	%		2,106,479		0.6	%
Transportation		16,581,251		4.6	%		15,132,702		4.5	%
Domestic appliances		2,671,066		0.7	%		2,013,806		0.6	%
Vehicles and autoparts		12,759,065		3.5	%		12,162,552		3.6	%
Clothing and shoes		5,167,014		1.4	%		5,543,145		1.7	%
Commerce - Sundry		14,337,047		4.0	%		14,064,491		4.2	%
Industry - Sundry		4,848,372		1.3	%		2,915,936		0.9	%
Sundry services		16,995,210		4.7	%		13,905,278		4.1	%
Sundry		9,636,425		2.7	%		6,632,440		2.0	%
INDIVIDUALS		158,048,701		43.9	%		148,954,182		44.4	%
Credit cards		37,508,670		10.4	%		36,551,880		10.9	%
Real estate financing		21,362,662		5.9	%		15,714,668		4.7	%
Consumer loans/overdraft		45,130,996		12.5	%		36,679,462		10.9	%
Vehicles		54,046,373		15.0	%		60,008,172		17.9	%
GRAND TOTAL		359,810,292		100.0	%		335,278,686		100.0	%

4.34

The balances as of September 30, 2011 were reclassified in order to align the sector exposure criteria for disclosure purposes on internal and publicly-available reports. The main impacts are highlighted below:

Prior disclosure	Current disclosure	09/30/2011
Agribusiness	Sugar and alcohol		7,628,227
Agribusiness	Sundry		2,526,112
Agribusiness	Agribusiness and fertilizers		4,485,855
Heavy construction (constructors)	Infrastructure work		5,056,692
Distribution of fuels	Oil and gas		3,346,703
Electrical and electronic	Domestic appliances		2,994,676
Fertilizers and insecticides	Agribusiness and fertilizers		1,880,556
Holding company	Sundry		3,940,518
Import and export	Tradings		2,182,374
Hospital care materials and equipment	Pharmaceuticals and cosmetics		1,049,926
Media	Publishing and printing		1,717,450
Other - Industry	Packaging		1,847,129
Other services	Education		1,308,855
Service companies	Entertainment and tourism		3,373,203
Service companies	Sundry services		2,247,483
Chemical and petrochemical	Oil and gas		1,076,744
Supermarkets	Commerce - Sundry		2,194,749

4.35

b) Credit concentration

	09/30/2012				09/30/2011
			% of				% of
Loan, lease and other credit operations (*)	Risk		Total		Risk		Total
Largest debtor		4,332,994		1.0		2,719,973		0.7
10 largest debtors		26,374,842		6.3		20,279,406		5.3
20 largest debtors		42,361,640		10.1		33,844,521		8.9
50 largest debtors		66,155,639		15.8		55,362,851		14.5
100 largest debtors		86,982,805		20.8		73,252,442		19.2

Loan, lease and other credit operations and securities of companies and	09/30/2012				09/30/2011
financial institutions (*)			% of				% of
	Risk		Total		Risk		Total
Largest debtor		4,962,447		1.1		5,513,780		1.3
10 largest debtors		36,220,393		7.7		31,495,562		7.4
20 largest debtors		58,564,465		12.4		50,146,147		11.7
50 largest debtors		91,801,941		19.4		79,071,076		18.5
100 largest debtors		119,037,368		25.2		103,282,020		24.1

(*) The amounts include endorsements and sureties.

c) Changes in allowance for loan losses

	01/01 to 09/30/2012			01/01 to 09/30/2011
Opening balance		(25,771,727	)		(22,018,217	)
Net increase for the period		(17,959,140	)		(14,458,717	)
Write-Off		16,048,440			11,758,406
Closing balance		(27,682,427	)		(24,718,528	)
Required by Resolution No. 2,682/99		(22,624,012	)		(19,660,113	)
Specific allowance (1)		(16,314,969	)		(13,776,165	)
Generic allowance (2)		(6,309,043	)		(5,883,948	)
Additional allowance (3)		(5,058,415	)		(5,058,415	)

(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 quarter of 2011, 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 credit.

At September 30, 2012, the balance of the allowance in relation to the loan portfolio is equivalent to 7.7% (7.4% at 09/30/2011).

4.36

Recovery and renegotiation of credits

I -

Composition of the result of allowance for loan losses

	01/01 to 09/30/2012			01/01 to 09/30/2011
Expenses for allowance for loan losses		(17,959,140	)		(14,458,717	)
Income from recovery of credits written off as loss		3,477,108			3,914,586
Result of allowance for loan losses		(14,482,032	)		(10,544,131	)

II -

Renegotiated credits

	09/30/2012			09/30/2011
Renegotiated credits		19,523,667			13,085,142
Allowance for loan losses		(8,673,811	)		(5,522,952	)
(%)		44.4			42.2

4.37

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.

	09/30/2012								01/01 to 09/30/2012
	0 - 30		31 - 180		Over 365 days		Total		Income (expenses)
Restricted operations on assets
Loan operations		741		99		118,790		119,630		15,548
Liabilities - restricted operations on assets
Foreign borrowings through securities		741		99		118,790		119,630		(15,548	)
Net revenue from restricted operations										-

At September 30, 2012, there were no balances in default.

4.38

Operations of sale or transfers and acquisitions of financial assets

I. Credit assignments (transfers of receivables) carried out through December 2011 were recorded in accordance with current regulation together with income recognition at the time of the assignment, regardless of the risks and benefits being retained or not.

In compliance with CMN Resolution No. 3,809, of October 28, 2009, the amount of operations assigned with joint obligation, at September 30, 2012 where the entity significantly retained the related risks and benefits is R$ 449,063 (R$ 30,661 at 09/30/2011), composed of real estate financing of R$ 429,700 (R$ 8,602 at 09/30/2011) and farming financing of R$ 19,363 (R$ 22,059 at 09/30/2011).

II. Beginning January 2012, as provided for by CMN Resolution No. 3,533/08 and supplementary regulation, accounting records take into consideration the retention or non-retention of risks and benefits on sale or transfers of financial assets.

ITAÚ UNIBANCO HOLDING carried out operations for sale or transfer of financial assets in which there was a retention of credit risks of financial assets transferred, through the acquisition of subordinated quotas of credit right funds. Therefore, such credits continue to be recorded as credit operations and are represented by the following information at September 30, 2012:

Asset

Liabilities

Nature of operation

Book value

Fair value

Book value

Fair value

Large companies – Working capital

54,657

59,118

54,657

59,118

Sales or transfers of financial assets without risk and benefit retention amount to R$ 1,066,590 with effect on results of R$ (636).

In the period, loan portfolios with assignor’s risk retention the, in the amount of R$ 1,823,049, totaling R$ 3,273,092 at September 30, 2012, were also purchased.

4.39

NOTE 9 - FOREIGN EXCHANGE PORTFOLIO

	09/30/2012			09/30/2011
ASSETS - OTHER RECEIVABLES		40,949,887			40,273,816
Exchange purchase pending settlement – foreign currency		22,941,184			21,883,533
Exchange sale rights – local currency		18,489,047			18,623,314
(Advances received) – local currency		(480,344	)		(233,031	)
LIABILITIES – OTHER LIABILITIES (Note 2a)		41,124,676			39,758,637
Exchange sales pending settlement – foreign currency		18,472,885			18,406,320
Liabilities from purchase of foreign currency – local currency		22,646,922			21,348,264
Other		4,869			4,053
MEMORANDUM ACCOUNTS		1,405,574			612,592
Outstanding import credits – foreign currency		1,337,564			587,469
Confirmed export credits – foreign currency		68,010			25,123

4.40

NOTE 10 – FUNDING AND BORROWINGS AND ONLENDING

a) Summary

	09/30/2012												09/30/2011
	0-30		31-180		181-365		Over 365 days		Total		%		Total		%
Deposits		127,105,134		20,818,387		11,718,292		72,277,542		231,919,355		36.2		220,675,331		39.9
Deposits received under securities repurchase agreements		108,261,853		10,884,385		14,977,778		111,147,697		245,271,713		38.3		195,569,293		35.3
Funds from acceptance and issuance of securities		3,711,197		18,897,422		10,245,237		24,190,179		57,044,035		8.9		40,965,222		7.4
Borrowings and onlending		2,581,440		12,750,347		14,961,024		26,560,967		56,853,778		8.9		57,872,143		10.5
Subordinated debt (*)		1,166,915		3,383,474		81,323		44,710,324		49,342,036		7.7		38,366,648		6.9
TOTAL		242,826,539		66,734,015		51,983,654		278,886,709		640,430,917				553,448,637
% per maturity term		37.9		10.4		8.1		43.5
TOTAL – 09/30/2011		195,604,392		66,527,263		52,993,984		238,322,998		553,448,637
% per maturity term		35.3		12.0		9.6		43.1

(*)

Includes R$ 798,296 (R$ 728,949 at 09/30/2011) of Redeemable Preferred Shares classified under Minority Interest in Balance Sheet.

b) Deposits

	09/30/2012												09/30/2011
	0-30		31-180		181-365		Over 365 days		Total		%		Total		%
Demand deposits		29,817,694		-		-		-		29,817,694		12.9		26,069,204		11.8
Savings accounts		77,413,953		-		-		-		77,413,953		33.4		63,334,088		28.7
Interbank		3,271,012		4,384,747		1,606,010		254,083		9,515,852		4.0		2,157,338		1.0
Time deposits		16,602,475		16,433,640		10,112,282		72,023,459		115,171,856		49.7		129,114,701		58.5
TOTAL		127,105,134		20,818,387		11,718,292		72,277,542		231,919,355				220,675,331
% per maturity term		54.8		9.0		5.1		31.1
TOTAL – 09/30/2011		118,615,296		25,545,979		10,914,648		65,599,408		220,675,331
% per maturity term		53.8		11.6		4.9		29.7

ITAÚ UNIBANCO HOLDING’s portfolio is composed of interbank deposits in the amount of R$ 5,154,518 (R$ 4,705,826 at 09/30/2011 with maturity over 365 days) with maturity of 31 to 180 days.

4.41

c) Deposits received under securities repurchase agreements

	09/30/2012												09/30/2011
	0 - 30		31 - 180		181 - 365		Over 365 days		Total		%		Total		%
Own portfolio		41,699,118		10,884,385		14,818,288		94,345,489		161,747,280		65.9		146,117,935		74.7
Government securities		27,837,501		419,067		18,891		7,963		28,283,422		11.5		27,903,483		14.3
Own issue		2,297,935		10,461,837		14,679,670		94,337,526		121,776,968		49.6		110,565,185		56.5
Foreign		11,563,682		3,481		119,727		-		11,686,890		4.8		7,649,267		3.9
Third-party portfolio		66,487,407		-		-		-		66,487,407		27.2		36,047,478		18.4
Free portfolio		75,328		-		159,490		16,802,208		17,037,026		6.9		13,403,880		6.9
TOTAL		108,261,853		10,884,385		14,977,778		111,147,697		245,271,713				195,569,293
% per maturity term		44.1		4.4		6.1		45.4
TOTAL – 09/30/2011		71,981,422		12,968,985		14,058,938		96,559,948		195,569,293
% per maturity term		36.8		6.6		7.2		49.4

4.42

d) Funds from acceptance and issuance of securities

	09/30/2012												09/30/2011
	0-30		31-180		181-365		Over 365 days		Total		%		Total		%
FUNDS FROM BILLS:		2,033,517		13,980,964		6,994,230		16,814,606		39,823,317		69.8		25,500,661		62.2
of real estate loans		18,761		3,412,203		3,124,849		12,700,349		19,256,162		33.7		8,261,981		20.1
Financial		1,702,257		9,303,933		2,989,384		1,448,873		15,444,447		27.1		13,752,700		33.6
Bill of credit related to agribusiness		302,996		1,260,026		852,380		2,465,217		4,880,619		8.6		3,231,362		7.9
Mortgage notes		9,503		4,802		27,617		200,167		242,089		0.4		254,618		0.6
DEBENTURES		1,574,639		520,914		520,996		-		2,616,549		4.6		1,114,449		2.7
FOREIGN SECURITIES		103,041		4,395,544		2,730,011		7,375,573		14,604,169		25.6		14,350,112		35.1
Trade Related – issued abroad - Structure Note Issued		-		-		-		-		-		-		972,477		2.4
Non-Trade Related – Issued abroad		103,041		4,395,544		2,730,011		7,375,573		14,604,169		25.6		13,377,635		32.7
Brazil Risk Note Programme		29,555		2,796,622		1,945,821		2,537,071		7,309,069		12.8		3,266,157		8.0
Structure Note Issued		55,306		1,205,042		719,155		1,883,957		3,863,460		6.8		4,507,603		11.0
Bonds		4,197		30,109		33,379		1,711,133		1,778,818		3.1		-		-
Fixed Rate Notes		12,823		36,555		5,723		1,193,620		1,248,721		2.2		433,772		1.1
Euro Medium Term Note Programme		-		-		-		-		-		-		291,101		0.7
Euro Certificates of Deposits		-		-		-		-		-		-		4,711,024		11.5
Medium Term Note		-		-		-		-		-		-		157,770		0.4
Eurobonds		986		276,517		3,500		25,483		306,486		0.5		10,208		-
Other		174		50,699		22,433		24,309		97,615		0.2		-		-
TOTAL		3,711,197		18,897,422		10,245,237		24,190,179		57,044,035				40,965,222
% per maturity term		6.5		33.1		18.0		42.4
TOTAL – 09/30/2011		2,346,895		12,722,600		6,327,996		19,567,731		40,965,222
% per maturity term		5.7		31.1		15.4		47.8

ITAÚ UNIBANCO HOLDING’s portfolio is composed of Brazil Risk Note Programme with maturity of 31 days to 180 days in the amount of R$ 18,667 (R$ 18,667 at 09/30/2011) and over 365 days in the amount of R$ 500,000 (R$ 500,000 at 09/30/2011), totaling R$ 518,667 (R$ 518,667 at 09/30/2011).

4.43

e) Borrowings and onlending

	09/30/2012												09/30/2011
	0-30		31-180		181-365		Over 365 days		Total		%		Total		%
BORROWINGS		1,656,372		8,382,261		8,585,099		3,370,086		21,993,818		38.7		21,798,842		37.7
Domestic		221,351		6,512		54,318		131,606		413,787		0.7		2,621,036		4.5
Foreign (*)		1,435,021		8,375,749		8,530,781		3,238,480		21,580,031		38.0		19,177,806		33.1
ONLENDING		925,068		4,368,086		6,375,925		23,190,881		34,859,960		61.3		36,073,301		62.3
Domestic – official institutions		925,068		3,943,092		6,353,148		23,034,561		34,255,869		60.3		35,497,556		61.3
BNDES		256,075		1,005,778		1,170,084		7,871,697		10,303,634		18.1		9,868,073		17.1
FINAME		645,467		2,876,693		5,104,112		14,927,677		23,553,949		41.4		25,173,414		43.5
Other		23,526		60,621		78,952		235,187		398,286		0.7		456,069		0.8
Foreign		-		424,994		22,777		156,320		604,091		1.1		575,745		1.0
TOTAL		2,581,440		12,750,347		14,961,024		26,560,967		56,853,778				57,872,143
% per maturity term		4.5		22.4		26.3		46.7
TOTAL- 09/30/2011		2,604,656		15,248,184		13,007,671		27,011,632		57,872,143
% per maturity term		4.5		26.3		22.5		46.7

(*)

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

4.44

f) Subordinated debt

	09/30/2012															09/30/2011
	0-30		31-180		181-365		Over 365 days			Total			%			Total			%
CDB		1,105,380		3,290,189		77,455		10,900,748			15,373,772			31.2			22,566,862			58.8
Financial Treasury bills		-		-		-		20,712,197			20,712,197			42.0			9,623,543			25.1
Euronotes		57,703		93,285		-		12,024,582			12,175,570			24.7			5,171,553			13.5
Bonds		3,832		-		3,744		319,351			326,927			0.7			300,469			0.8
Eurobonds		-		-		-		-			-			-			-			-
(-) Transaction costs incurred (Note 4b)		-		-		-		(44,726	)		(44,726	)		(0.1	)		(24,728	)		(0.1	)
TOTAL OTHER LIABILITIES		1,166,915		3,383,474		81,199		43,912,152			48,543,740						37,637,699
Redeemable preferred shares		-		-		124		798,172			798,296			1.6			728,949			1.9
GRAND TOTAL (*)		1,166,915		3,383,474		81,323		44,710,324			49,342,036						38,366,648
% per maturity term		2.4		6.9		0.2		90.6
TOTAL- 09/30/2011		56,123		41,515		8,684,731		29,584,279			38,366,648
% per maturity term		0.1		0.1		22.6		77.1

(*)

The amount of R$ 44,980,135 (R$ 35,701,196 at 09/30/2011) is included in the Referential Equity, using the proportionalities set forth in CMN Resolution No. 3,444 of February 28, 2007 and changes made by CMN Resolution No. 3,532 of January 31, 2008.

4.45

Description
Name of security / Currency	Principal Amount (Original Currency)		Issue		Maturity		Return p.a.	Account balance
Subordinated CDB - BRL
		200,000		2002		2012	102,5% of CDI		735,548
		93,000		2007		2012	103,8% of CDI		156,469
		237,380					100% of CDI + 0,35% to 0,45%		400,123
		278,350					IGPM + 7,31		552,807
		1,558,200		2008		2013	100% of CDI + 0,5% to 0,6%		2,550,623
		48,401					106% to 107% of CDI		77,455
		40,000		2003		2013	102% of CDI		118,865
		1,864,500		2007		2014	100% of CDI + 0,35% to 0,6%		3,271,100
		33,200					IGPM + 7,35%		65,947
		1,000,000		2008		2014	112% of CDI		1,525,553
		400,000		2008		2015	119,8% of CDI		643,854
		50,000		2010		2015	113% of CDI		67,293
		465,835		2006		2016	100% of CDI + 0,7% (*)		875,785
		2,719,268		2010		2016	110% to 114% of CDI		3,658,563
		122,500					IPCA + 7,33%		168,308
		366,830		2010		2017	IPCA + 7,45%		505,479
							TOTAL		15,373,772

Subordinated financial bills – BRL
		365,000		2010		2016	100% of CDI + 1,35% to 1,36%		368,272
		1,874,000					112% to 112,5% of CDI		1,890,775
		30,000					IPCA + 7%		37,448
		206,000		2010		2017	IPCA + 6,95% to 7,2%		237,741
		3,223,500		2011		2017	108% to 112% of CDI		3,341,764
		352,400					IPCA + 6,15% to 7,8%		394,299
		138,000					IGPM + 6,55% to 7,6%		158,863
		3,650,000					100% of CDI + 1,29% to 1,52%		3,782,973
		500,000		2012		2017	100% of CDI + 1,12%		515,213
		42,000		2011		2018	IGPM + 7%		48,568
		30,000					IPCA + 7,53% to 7,7%		32,937
		460,645		2012		2018	IPCA + 4,40% to 6,58%		492,196
		2,597,400					100% of CDI + 1,05% to 1,32%		2,657,964
		4,978,027					108% to 113% of CDI		5,121,141
		112,000					PRE + 10,15 to 12,2%		114,621
		2,000		2011		2019	109% to 109,7% of CDI		2,189
		12,000		2012		2019	PRE + 12,2%		12,809
		100,500					IPCA + 4,70% to 6,30%		104,825
		1,000					110% of CDI		1,072
		20,000		2012		2020	IPCA + 6,00% to 6,17%		21,191
		1,000					109% to 111% of CDI		1,073
		6,000		2011		2021	109,25 to 110,5% of CDI		6,719
		1,330,200		2012		2022	IPCA + 5,40% to 5,83%		1,347,464
		20,000					IGPM + 4,63%		20,080
							TOTAL		20,712,197

Subordinated euronotes – USD
		1,000,000		2010		2020	6.2%		2,081,438
		1,000,000		2010		2021	5.75%		2,045,340
		750,000		2011		2021	5,75% to 6,2%		1,479,828
		550,000		2012		2021	6.2%		1,166,069
		2,625,000		2012		2022	5,50% to 5,65%		5,358,169
							TOTAL		12,130,844

Subordinated bonds - EUR		100,000		2005		2015	1.42%		187,050
Subordinated bonds - CLP		41,528,200		2008		2033	3,5% to 4,5%		139,877
							TOTAL		326,927

Preferred shares - USD		393,072		2002		2015	3.04%		798,296

TOTAL									49,342,036

(*)

Subordinated CDBs may be redeemed as from November 2011.

ITAÚ UNIBANCO HOLDING’s portfolio is composed of Subordinated Euronotes with maturity of up to 30 days in the amount of R$ 57,703 (R$ 53,015 at 09/30/2011), with maturity of 31 to 180 days in the amount of R$ 93,285 (R$ 41,515 09/30/2011) and over 365 days in the amount of R$ 11,979,856 (R$ 5,052,295 at 09/30/2011), totaling R$ 12,130,844 (R$ 5,146,825 at 09/30/2011).

4.46

NOTE 11 - INSURANCE, PENSION PLAN AND CAPITALIZATION OPERATIONS

a) Composition of the technical provisions per segment

	INSURANCE				PENSION PLAN				CAPITALIZATION				TOTAL
	09/30/2012		09/30/2011		09/30/2012		09/30/2011		09/30/2012		09/30/2011		09/30/2012		09/30/2011
Unearned premiums		3,367,742		2,969,533		-		-		-		-		3,367,742		2,969,533
Mathematical provision of benefits to be granted and benefits granted		19,312		16,247		74,396,741		58,314,187		-		-		74,416,053		58,330,434
Premium deficiency / Insufficient contribution		357,754		298,750		736,994		660,860		-		-		1,094,748		959,610
Financial surplus		1,455		1,519		494,045		470,686		-		-		495,500		472,205
Mathematical provision for redemptions		-		-		-		-		2,846,938		2,762,113		2,846,938		2,762,113
Provision for raffles		-		-		-		-		16,947		26,921		16,947		26,921
Unsettled claims		2,649,754		2,477,419		-		-		-		-		2,649,754		2,477,419
Claims / Events incurred but not reported (IBNR)		827,812		710,019		11,937		10,533		-		-		839,749		720,552
Other provisions (Note 4m II.I)		1,317,595		1,236,214		199,420		180,611		36,612		34,083		1,553,627		1,450,908
TOTAL		8,541,424		7,709,701		75,839,137		59,636,877		2,900,497		2,823,117		87,281,058		70,169,695

4.47

b) Assets Guaranteeing Technical Provisions - SUSEP

	INSURANCE				PENSION PLAN					CAPITALIZATION				TOTAL
	09/30/2012		09/30/2011		09/30/2012			09/30/2011		09/30/2012		09/30/2011		09/30/2012			09/30/2011
Interbank investments – money market		690,857		885,427		802,895			1,163,496		1,056,449		1,277,938		2,550,201			3,326,861
Securities and derivative financial instruments		3,361,790		2,630,046		75,328,224			58,862,052		1,943,253		1,611,513		80,633,267			63,103,611
PGBL/VGBL FUND QUOTAS (1)		-		-		69,856,629			54,090,499		-		-		69,856,629			54,090,499
Government securities - Domestic		-		-		46,518,109			37,681,147		-		-		46,518,109			37,681,147
National Treasury Bills		-		-		12,143,413			17,776,775		-		-		12,143,413			17,776,775
National Treasury Notes		-		-		29,353,009			16,376,179		-		-		29,353,009			16,376,179
Financial Treasury Bills		-		-		5,021,687			3,528,193		-		-		5,021,687			3,528,193
Corporate securities		-		-		23,015,851			16,294,674		-		-		23,015,851			16,294,674
Bank deposit certificates		-		-		5,122,402			6,880,718		-		-		5,122,402			6,880,718
Debentures		-		-		2,483,517			4,902,961		-		-		2,483,517			4,902,961
Shares		-		-		1,469,220			1,649,728		-		-		1,469,220			1,649,728
Credit note		-		-		806,749			141,717		-		-		806,749			141,717
Financial Treasury bills		-		-		13,128,335			2,718,112		-		-		13,128,335			2,718,112
Securitized real estate loans		-		-		5,628			1,438		-		-		5,628			1,438
PGBL/VGBL fund quotas		-		-		389,174			45,383		-		-		389,174			45,383
Derivative financial instruments		-		-		25,634			32,371		-		-		25,634			32,371
Accounts receivable / (payable)		-		-		(92,139	)		36,924		-		-		(92,139	)		36,924
Other assets		3,361,790		2,630,046		5,471,595			4,771,553		1,943,253		1,611,513		10,776,638			9,013,112
Government		1,122,232		812,981		4,219,841			3,613,083		273,426		161,507		5,615,499			4,587,571
Private		2,239,558		1,817,065		1,251,754			1,158,470		1,669,827		1,450,006		5,161,139			4,425,541
Receivables from insurance and reinsurance operations (2)		4,578,916		4,295,183		-			-		-		-		4,578,916			4,295,183
Credit rights		1,114,637		1,090,837		-			-		-		-		1,114,637			1,090,837
Commercial – Extended guarantee		1,290,864		1,217,753		-			-		-		-		1,290,864			1,217,753
Reinsurance		2,173,415		1,986,593		-			-		-		-		2,173,415			1,986,593
Escrow deposits for loss		-		26,360		-			-		-		-		-			26,360
TOTAL		8,631,563		7,837,016		76,131,119			60,025,548		2,999,702		2,889,451		87,762,384			70,752,015

(1)

(2)

Recorded under Other receivables and Other assets.

4.48

c) Financial and operating income per segment

	INSURANCE						PENSION PLAN						CAPITALIZATION						TOTAL
	01/01 to			01/01 to			01/01 to			01/01 to			01/01 to			01/01 to			01/01 to			01/01 to
	09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011
Financial income from insurance, pension plan and capitalization operations		250,789			223,056			161,185			167,043			98,769			108,997			510,743			499,096
Financial income		277,635			272,529			4,819,833			3,616,675			216,612			250,317			5,314,080			4,139,521
Financial expenses		(26,846	)		(49,473	)		(4,658,648	)		(3,449,632	)		(117,843	)		(141,320	)		(4,803,337	)		(3,640,425	)
Operating income from insurance, pension plan and capitalization operations		1,668,579			1,511,795			75,445			21,473			377,498			362,296			2,121,522			1,895,564
Premiums and contributions		4,314,848			4,080,279			12,396,670			8,289,022			1,503,479			1,402,831			18,214,997			13,772,132
Changes in technical provisions		(304,055	)		(508,207	)		(12,299,414	)		(8,253,384	)		(5,575	)		(10,320	)		(12,609,044	)		(8,771,911	)
Expenses for claims, benefits, redemptions and raffles		(1,539,497	)		(1,190,014	)		(16,457	)		(11,920	)		(1,122,974	)		(1,026,283	)		(2,678,928	)		(2,228,217	)
Selling expenses		(758,216	)		(731,573	)		(2,077	)		(1,823	)		(2,431	)		(3,806	)		(762,724	)		(737,202	)
Other operating revenues and expenses		(44,501	)		(138,690	)		(3,277	)		(422	)		4,999			(126	)		(42,779	)		(139,238	)
Total result from insurance, pension plan and capitalization operations		1,919,368			1,734,851			236,630			188,516			476,267			471,293			2,632,265			2,394,660

4.49

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) Provisions and Contingencies: 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. ITAÚ UNIBANCO CONSOLIDATED 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$ 1,647,949 and main natures of these lawsuits refer to claims form compensation or collections, the individual amounts of which are not significant.

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 according to the statistical share pricing model, plus the average cost of fees. These are adjusted to the amounts deposited as guarantee for their execution when realized.

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;

There are no labor claims falling under the category of possible loss.

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.

4.50

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

	01/01 to 09/30/2012												01/01 to 09/30/2011
	Civil			Labor			Other			Total			Total
Opening balance		3,165,594			4,013,915			165,303			7,344,812			7,132,647
(-) Contingencies guaranteed by indemnity clauses (Note 4n I)		(136,688	)		(929,875	)		-			(1,066,563	)		(1,421,626	)
Subtotal		3,028,906			3,084,040			165,303			6,278,249			5,711,021
Restatement/Charges		101,362			87,191			-			188,553			143,885
Changes in the period reflected in results (Notes 13f and 13i)		1,250,805			896,274			13,684			2,160,763			1,661,393
Increase (*)		1,768,700			936,236			15,664			2,720,600			2,121,575
Reversal		(517,895	)		(39,962	)		(1,980	)		(559,837	)		(460,182	)
Payment		(1,264,746	)		(673,840	)		-			(1,938,586	)		(1,374,872	)
Subtotal		3,116,327			3,393,665			178,987			6,688,979			6,141,427
(+) Contingencies guaranteed by indemnity clauses (Note 4n I)		133,424			835,901			-			969,325			1,200,783
Closing balance (Note 13c)		3,249,751			4,229,566			178,987			7,658,304			7,342,210
Closing balance at 09/30/2011 (Note 13c)		3,104,975			4,071,052			166,183			7,342,210
Escrow deposits at 09/30/2012 (Note 13a)		2,048,533			2,437,948			-			4,486,481
Escrow deposits at 09/30/2011 (Note 13a)		2,015,701			2,437,307			-			4,453,008

(*) Civil provisions include the provision for economic plans amounting to R$ 202,097 (R$ 230,739 from January 1 to September 30, 2011) (Note 22k).

4.51

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 legal obligation, 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:

	01/01 to 09/30/2012									01/01 to 09/30/2011
Provisions	Legal obligation			Contingencies			Total			Total
Opening balance		6,273,013			2,371,539			8,644,552			7,256,753
(-) Contingencies guaranteed by indemnity clauses		-			(57,438	)		(57,438	)		(44,473	)
Subtotal		6,273,013			2,314,101			8,587,114			7,212,280
Restatement/Charges		600,405			97,053			697,458			398,521
Changes in the period reflected in results		423,538			(72,104	)		351,434			719,177
Increase		432,472			140,190			572,662			799,423
Reversal		(8,934	)		(212,294	)		(221,228	)		(80,246	)
Payment		(6,281	)		(68,247	)		(74,528	)		(107,891	)
Subtotal		7,290,675			2,270,803			9,561,478			8,222,087
(+) Contingencies guaranteed by indemnity clauses		-			60,516			60,516			10,781
Closing balance (Note 13c and 14c)		7,290,675			2,331,319			9,621,994			8,232,868
Closing balance at 09/30/2011 (Notes 13c and 14c)		5,872,371			2,360,497			8,232,868			-

4.52

	01/01 to 09/30/2012									01/01 to 09/30/2011
Escrow deposits	Legal obligation			Contingencies			Total			Total
Opening balance		3,979,486			1,198,827			5,178,313			4,683,883
Appropriation of income		212,965			56,661			269,626			296,881
Changes in the period		169,844			10,844			180,688			171,968
Deposited		206,728			23,031			229,759			205,104
Withdrawals		(29,906	)		(11,490	)		(41,396	)		(23,645	)
Conversion into income		(6,978	)		(697	)		(7,675	)		(9,491	)
Closing balance		4,362,295			1,266,332			5,628,627			5,152,732
Relocated to assets pledged in guarantee of contingencies (note 12d)		-			(896,067	)		(896,067	)		-
Closing balance after relocated		4,362,295			370,265			4,732,560			5,152,732
Closing balance at 09/30/2011		3,955,871			1,196,861			5,152,732

4.53

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

PIS and COFINS – Calculation basis – R$ 3,304,741: we defend the levy of contributions on revenue, understood as the revenue from sales of assets and services. The escrow deposit balance totals R$ 1,100,826.

CSLL – Isonomy – R$ 1,883,634: 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$ 367,686.

IRPJ and CSLL –Taxation of profits earned abroad – R$ 510,538: We discuss the calculation basis for levy of these taxes on profits earned abroad and the non-applicability of Regulatory Instruction SRF No. 213-02 in which it exceeds the suitability of the legal text. The escrow deposit balance totals R$ 469,858.

PIS – R$ 382,262 - 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$ 110,138.

4.54

Off-balance sheet contingencies - The amounts related to Tax and Social Security Lawsuits considered to be as possible loss, which total estimated risk is R$ 7,509,653, are the following:

IRPJ, CSLL, PIS and COFINS – request for offset dismissed - R$ 1,435,993: cases in which the liquidity and the offset credit certainty are discussed.

INSS – Non-compensatory amounts – R$ 1,002,880: we defend the non-taxation of these amounts, mainly profit sharing, transportation vouchers and sole bonus.

IRPJ, CSLL - Interest on capital - R$ 870,250: we defend the deductibility of interest on capital declared to stockholders based on the Brazilian long-term interest rate (TJLP) on the stockholders’ equity for the year and for prior years.

IRPJ, CSLL - Losses and discounts on receipt of credits – R$ 449,386: deductibility of effective losses as operating expense – credit assignment and renegotiation.

IRPJ, CSLL – Profit made available abroad R$ 316,809: Application of the Brazilian tax rule (taxable income) – IN 213/2002 and non availability of profit with the simple transfer of capital between the Holding’s investees.

ISS – Banking Institutions – R$ 307,243: these are banking operations, which revenue may not be interpreted as price per service rendered and/or arises from activities not listed under a Supplementary Law.

4.55

Receivables - Reimbursement of contingencies

The Receivables balance arising from reimbursements of contingencies totals R$ 671,220 (R$ 687,851 at 09/30/2011) (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.

Assets pledged as Contingencies

Assets pledged in guarantee for contingencies are related to liability contingencies and restricted or deposited as presented below:

	09/30/2012	09/30/2011
Securities (basically Financial Treasury Bills – Note 7b)	1,427,341	1,499,897
Deposits in guarantee	4,041,708	3,404,911

In general, provisions related to lawsuits of ITAÚ UNIBANCO HOLDING are long term, considering the time required for the termination of these lawsuits in the Brazilian judicial system, reason why estimate for the specific year in which these lawsuits will be terminated have not been prepared nor disclosed.

According to the opinion of its legal advisors, ITAÚ UNIBANCO HOLDING and its subsidiaries are not involved in any other administrative or judicial proceedings that may significantly impact the results of their operations. The combined evaluation of all existing provisions for all contingent liabilities and legal obligations, which are recognized based on statistical models for claims involving small amounts and on individual evaluation by internal and external legal advisors of other cases, showed that the accrued amounts are sufficient, as provided for by CMN Resolution No. 3,823, of December 16, 2009, and BACEN Circular Letter No. 3,429, of February 11, 2010.

4.56

NOTE 13 - BREAKDOWN OF ACCOUNTS

Other sundry receivables

	09/30/2012		09/30/2011
Deferred tax assets (Note 14b I)	31,462,518		28,701,443
Social contribution for offset (Note 14b I)	644,470		813,854
Taxes and contributions for offset	3,209,987		2,929,973
Escrow deposits for legal liabilities and tax and social security contingencies
(Note 12b)	8,774,268		8,557,643
Escrow deposits for legal liabilities – civil and labor (Note 12b)	4,486,481		4,453,008
Escrow deposits for foreign fund raising program	707,106		602,644
Receivables from reimbursement of contingent liabilities (Note 12c)	671,220		687,851
Sundry domestic debtors	1,453,156		1,009,146
Sundry foreign debtors	110,242		83,865
Retirement plan assets (Note 19)	2,141,178		1,615,379
Recoverable payments	38,051		34,729
Salary advances	207,302		196,869
Amounts receivable from related companies	11,924		20,894
Operations without credit granting characteristics	139,668		188,833
Securities and credits receivable	528,951		492,679
(Allowance for loan losses)	(389,283	)	(303,846	)
Other	187,872		118,157
Total	54,245,443		50,014,288

At ITAÚ UNIBANCO HOLDING, Other Sundry Receivables are basically composed of Taxes and Contributions for Offset of R$ 153,185 (R$ 90,711 at 09/30/2011) and Deferred Tax Assets of R$ 1,072,951 (R$ 1,002,579 at 09/30/2011) (Note 14b I).

4.57

Prepaid expenses

	09/30/2012	09/30/2011
Commissions	3,153,775	3,103,433
Related to vehicle financing	931,975	909,444
Related to insurance and pension plan	1,375,098	1,327,093
Restricted to commissions/partnership agreements	535,034	586,317
Other	311,668	280,579
Fundo Garantidor de Crédito (*)	199,180	386,380
Advertising	331,787	315,475
Other	293,769	269,781
Total	3,978,511	4,075,069

(*)

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.

4.58

Other sundry liabilities

	09/30/2012	09/30/2011
Provisions for contingent liabilities (Note 12b)	9,989,623	9,702,707
Provisions for sundry payments	1,901,358	1,895,662
Personnel provision	1,675,180	1,581,511
Sundry creditors - local	1,691,049	994,746
Sundry creditors - foreign	1,927,152	617,938
Liabilities for official agreements and rendering of payment services	554,725	1,463,606
Related to insurance operations	857,563	1,143,946
Liabilities for purchase of assets and rights	3,172	20,245
Creditors of funds to be released	979,472	1,158,093
Funds from consortia participants	84,097	82,314
Provision for Retirement Plan Benefits (Note 19)	348,435	230,005
Provision for health insurance (*)	632,641	619,066
Expenses for lease interests (Note 4i)	212,155	298,562
Other	574,405	526,850
Total	21,431,027	20,335,251

(*)

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).

4.59

Banking service fees

	01/01 to		01/01 to
	09/30/2012		09/30/2011
Asset management		2,232,894		1,945,688
Funds management fees		2,080,720		1,874,206
Consortia management fee		152,174		71,482
Current account services		453,188		498,753
Credit cards		4,748,607		4,428,217
Relationship with stores		4,574,652		4,126,295
Credit card processing		173,955		301,922
Sureties and credits granted		1,165,739		1,280,228
Loan operations		533,235		742,548
Guarantees provided		632,504		537,680
Receipt services		1,051,608		988,124
Collection fees		860,121		773,160
Collection services		191,487		214,964
Other		1,115,331		1,068,767
Custody services and management of portfolio		173,865		160,733
Economic and financial advisory		282,424		264,092
Foreign exchange services		76,830		60,309
Other services		582,212		583,633
Total		10,767,367		10,209,777

4.60

Income from bank charges

	01/01 to		01/01 to
	09/30/2012		09/30/2011
Loan operations/registration		790,546		1,149,192
Credit cards – annual fees and other services (*)		1,352,986		958,850
Deposit account		111,362		108,246
Transfer of funds		115,419		96,673
Income from securities brokerage (*)		254,564		344,951
Service package fees and other		1,723,233		1,092,415
Total		4,348,110		3,750,327

(*)

In compliance with BACEN Circular Letter No. 3,490.

4.61

Personnel expenses

	01/01 to			01/01 to
	09/30/2012			09/30/2011
Compensation		(4,352,081	)		(4,533,008	)
Charges		(1,572,154	)		(1,503,715	)
Welfare benefits		(949,037	)		(1,194,770	)
Training		(177,428	)		(183,151	)
Labor claims and termination of employees (Note 12b)		(1,276,759	)		(800,426	)
Stock Option Plan		(133,040	)		(121,902	)
Total		(8,460,499	)		(8,336,972	)
Employees’ profit sharing		(1,826,092	)		(1,711,394	)
Total with Employees’ profit sharing		(10,286,591	)		(10,048,366	)

Other administrative expenses

	01/01 to			01/01 to
	09/30/2012			09/30/2011
Data processing and telecommunications		(2,625,572	)		(2,603,358	)
Depreciation and amortization		(1,217,863	)		(1,045,359	)
Installations		(1,673,420	)		(1,603,903	)
Third-party services		(2,423,464	)		(2,363,375	)
Financial system services		(357,046	)		(324,562	)
Advertising, promotions and publication		(674,094	)		(701,384	)
Transportation		(376,322	)		(430,117	)
Materials		(298,436	)		(334,720	)
Security		(384,744	)		(358,527	)
Travel expenses		(139,182	)		(135,020	)
Other		(379,750	)		(366,004	)
Total		(10,549,893	)		(10,266,329	)

4.62

Other operating revenue

	01/01 to		01/01 to
	09/30/2012		09/30/2011
Reversal of operating provisions		17,949		68,441
Recovery of charges and expenses		46,146		59,598
Other		129,538		175,499
Total		193,633		303,538

Other operating expenses

	01/01 to			01/01 to
	09/30/2012			09/30/2011
Provision for contingencies (Note 12b)		(1,200,980	)		(1,291,935	)
Civil lawsuits:		(1,250,805	)		(1,116,991	)
Tax and social security contributions		63,509			(181,901	)
Other		(13,684	)		6,957
Selling - Credit cards		(1,213,761	)		(1,238,920	)
Claims		(449,332	)		(489,224	)
Provision for health insurance (Note 13c)		(9,711	)		(12,702	)
Refund of interbank costs		(175,418	)		(150,347	)
Other		(695,675	)		(661,109	)
Total		(3,744,877	)		(3,844,237	)

Non operating income – basically composed of the result of the full disposal of investment in Banco BPI, S.A. in the amount of R$ (302,921) and due to the partial disposal of one interest in Orbitall Serviços e Processamento de Informações Comerciais S.A. in the amount of R$ (17,596).

4.63

NOTE 14 - TAXES

Composition of expenses for taxes and contributions

I -

Statement of calculation with Income Tax and Social Contribution:

	01/01 to			01/01 to
	09/30/2012			09/30/2011
Income before income tax and social contribution		13,298,602			13,060,797
Charges (income tax and social contribution) at the rates in effect (Note 4o)		(5,319,441	)		(5,224,319	)

Increase/decrease to income tax and social contribution charges arising from:
Investments in affiliates		69,601			56,132
Foreign exchange variation on investments abroad		537,865			1,020,832
Interest on capital		1,377,669			1,267,101
Dividends and interest on external debt bonds		163,644			237,529
Other nondeductible expenses net of non taxable income		315,482			946,213
Deferred tax asset recognized from prior periods		324,148			279,888
Total income tax and social contribution		(2,531,032	)		(1,416,624	)

II -

Composition of tax expenses:

	01/01 to			01/01 to
	09/30/2012			09/30/2011
PIS and COFINS		(2,506,234	)		(2,274,846	)
ISS		(477,710	)		(481,735	)
Other		(333,273	)		(248,770	)
Total (Note 4o)		(3,317,217	)		(3,005,351	)

At ITAÚ UNIBANCO HOLDING tax expenses are basically composed of PIS and COFINS in the amount of R$ 162,726 (R$ 173,102 from 01/01 to 09/30/2011).

4.64

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.

4.65

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
							Realization /
	09/30/2011		09/30/2012		12/31/2011		Reversal			Increase		09/30/2012		09/30/2011
Reflected in income and expense accounts						28,159,488		(8,283,311	)		11,405,525		31,281,701		28,557,891
Related to income tax and social contribution loss carryforwards						4,203,850		(1,225,295	)		2,000,022		4,978,577		4,932,967
Related to disbursed provisions						15,837,257		(5,302,631	)		6,991,341		17,525,967		15,145,408
Allowance for loan losses						11,490,145		(3,741,007	)		6,759,137		14,508,275		10,593,210
Adjustment to market value of securities and derivative financial instruments
(assets/liabilities)						527,127		(527,127	)		214,206		214,206		386,571
Allowance for real estate						75,130		(11,651	)		-		63,479		77,339
Goodwill on purchase of investments						3,602,265		(988,045	)		-		2,614,220		3,955,319
Other						142,590		(34,801	)		17,998		125,787		132,970
Related to non-disbursed provisions (*)		23,291,092		23,932,975		8,118,381		(1,755,386	)		2,414,162		8,777,158		8,479,516
Related to the operation		18,232,677		18,874,559		6,398,519		(1,755,386	)		2,414,162		7,057,296		6,759,654
Legal liabilities – tax and social security		2,415,521		2,992,976		1,319,269		(3,985	)		328,466		1,643,750		1,351,983
Provision for contingent liabilities		7,201,098		7,938,544		2,863,876		(588,665	)		701,200		2,976,410		2,754,620
Civil lawsuits:		2,936,054		3,100,465		1,184,829		(379,017	)		416,646		1,222,458		1,160,520
Labor claims		2,549,722		2,845,989		984,208		(148,110	)		238,297		1,074,395		963,572
Tax and social security contributions		1,663,606		1,941,689		675,302		(61,384	)		46,257		660,174		610,618
Other		51,716		50,401		19,537		(154	)		-		19,383		19,909
Adjustments of operations carried out in futures settlement market		546,968		106,858		11,618		(6,512	)		36,351		41,457		203,612
Provision related to health insurance operations		619,066		632,641		249,172		-			3,884		253,056		247,626
Other non-deductible provisions		7,450,023		7,203,540		1,954,584		(1,156,223	)		1,344,262		2,142,623		2,201,814
Related to provisions exceeding the minimum required not disbursed – allowance for loan losses		5,058,415		5,058,415		1,719,862		-			-		1,719,862		1,719,861

Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		406,135		511,020		123,436		-			57,381		180,817		143,552
Total		23,697,227		24,443,995		28,282,924		(8,283,311	)		11,462,905		31,462,518		28,701,443
Social contribution for offset arising from Option established in article 8 of Provisional Measure No. 2,158-35 of 08/24/2001						714,602		(70,132	)		-		644,470		813,854

(*)

From a financial point of view, rather than recording the provision of R$ 23,932,975 (R$ 23,291,092 at 09/30/2011) and deferred tax assets of R$ 8,777,158 (R$ 8,479,516 at 09/30/2011), only the net provisions of the corresponding tax effects should be considered, which would reduce the total deferred tax assets from R$ 31,462,518 (R$ 28,701,443 at 09/30/2011) to R$ 22,685,360 (R$ 20,221,928 at 09/30/2011).

At ITAÚ UNIBANCO HOLDING, the deferred tax assets totaled R$ 1,072,951 (R$ 1,002,579 at 09/30/2011) and are basically represented by legal liabilities – tax and social security of R$ 415,160 (R$ 289,610 at 09/30/2011), which expected realization is dependent upon the progress of the lawsuit, and tax loss of R$ 531,787 (R$ 629,864 at 09/30/2011).

4.66

II -

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

			Realization /
	12/31/2011		Reversal			Increase		09/30/2012		09/30/2011
Reflected in income and expense accounts	9,583,023		(2,519,818		)	1,376,054		8,439,259		10,018,728
Depreciation in excess – leasing		7,560,086		(2,167,083	)		528,878		5,921,881		7,886,421
Restatement of escrow deposits and contingent liabilities		935,240		(172,147	)		285,618		1,048,711		944,218
Provision for Pension Plan Benefits		593,803		-			157,937		751,740		580,653
Adjustment to market value of securities and derivative financial instruments		178,124		(178,124	)		331,713		331,713		447,394
Adjustments of operations carried out in future settlement market		101,510		(1,480	)		14,972		115,002		24,112
Taxation of results abroad – capital gains		63,451		-			29,503		92,954		54,563
Other		150,809		(984	)		27,433		177,258		81,366
Reflected in stockholders’ equity accounts – adjustment to market value of available-for-sale securities (Note 2b)		295,897		(70,903	)		773,136		998,130		234,613
Total		9,878,920		(2,590,721	)		2,149,190		9,437,389		10,253,340

At ITAÚ UNIBANCO HOLDING, the Provision for deferred income tax and social contribution totals R$ 4,441 (R$ 3,689 at 09/30/2011), basically represented by Restatement of escrow deposits and contingent liabilities.

4.67

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, 2012, in accordance with the expected generation of future taxable income, based on the history of profitability and technical feasibility studies, are:

																					Provision for
	Deferred tax assets																				deferred
						Tax loss/social										Social					income tax
	Temporary					contribution loss										contribution for					and social						Net deferred
	differences		%			carryforwards		%			Total		%			offset		%			contribution			%			taxes		%

2012		7,355,211		28	%		761,411		15	%		8,116,622		26	%		2,957		0	%		(1,804,356	)		19	%		6,315,223		28	%
2013		4,533,545		17	%		1,816,907		36	%		6,350,452		20	%		303,710		47	%		(2,295,058	)		24	%		4,359,104		19	%
2014		4,389,130		17	%		1,909,480		38	%		6,298,610		20	%		307,915		48	%		(2,148,262	)		23	%		4,458,263		20	%
2015		2,933,912		11	%		490,779		10	%		3,424,691		11	%		11,350		2	%		(842,472	)		9	%		2,593,569		11	%
2016		2,779,826		10	%		-		0	%		2,779,826		9	%		15,274		2	%		(739,582	)		8	%		2,055,518		9	%
after 2016		4,492,317		17	%		-		0	%		4,492,317		14	%		3,264		1	%		(1,607,659	)		17	%		2,887,922		13	%
Total		26,483,941		100	%		4,978,577		100	%		31,462,518		100	%		644,470		100	%		(9,437,389	)		100	%		22,669,599		100	%

Present value (*)		23,681,876					4,663,985					28,345,861					599,613					(8,431,704	)					20,513,770

(*)

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$ 548,992 is unrecorded (R$ 1,168,093 at 09/30/2011).

4.68

Tax and social security contributions

	09/30/2012		09/30/2011
Taxes and contributions on income payable		3,430,481		2,839,404
Taxes and contributions payable		1,257,600		1,483,038
Provision for deferred income tax and social contribution (Note 14b II)		9,437,389		10,253,340
Legal liabilities – tax and social security (Note 12b)		7,290,675		5,872,371
Total		21,416,145		20,448,153

At ITAÚ UNIBANCO HOLDING, the balance of Tax and Social Security Contributions totals R$ 1,030,904 (R$ 793,124 at 09/30/2011) and is basically comprised of Legal Liabilities - Tax and Social Security of R$ 940,949 (R$ 679,530 at 09/30/2011), 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.

4.69

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 and on the service provision, in addition to that levied on financial operation.

	09/30/2012		09/30/2011
Taxes paid or provided for		12,617,698		12,000,085
Taxes withheld and collected from third parties		9,397,799		8,374,448
Total		22,015,497		20,374,533

4.70

NOTE 15 – PERMANENT ASSETS

Investments

I -

Change of investments

Companies		Balances at 12/31/2011		Amortization of goodwill			Subscriptions / Acquisitions / Sales			Dividends paid/provided for (1)			Equity in earnings of subsidiaries (2)		Adjustments in marketable securities of subsidiaries and Other			Balances at 09/30/2012		Balances at 09/30/2011		Equity in earnings of subsidiaries from 01/01 to 09/30/2011

Domestic			53,724,893		(4,752	)		(44	)		(6,803,886	)		5,809,660		1,331,893			54,057,764		53,009,521		6,739,193
Itaú Unibanco S.A.	(3a)(4a)(5a)(6)(7a)		45,004,168		(4,752	)		-			(4,142,306	)		2,339,118		1,204,507			44,400,735		44,780,184		4,348,156
Banco Itaú BBA S.A.	(5b)		6,768,322		-			-			(1,645,000	)		1,089,095		126,641			6,339,058		6,525,640		1,163,397
Banco Itaucard S.A.	(4b)(5c)(8)		1,211,086		-			-			(1,016,478	)		2,127,733		739			2,323,080		920,412		673,937
Itaú Corretora de Valores S. A.	(8)		693,193		-			-			-			251,591		6			944,790		672,944		200,903
Itaú-BBA Participações S.A.			48,124		-			-			(102	)		2,079		-			50,101		110,341		265,146
Redecard S.A.	(9)		-		-			(44	)		-			44		-			-		-		-
Itauseg Participações S.A.	(10)		-		-			-			-			-		-			-		-		87,654
Foreign			2,583,601		(38,556	)		201,495			(24,198	)		423,933		(1,561	)		3,144,714		2,510,786		384,880
Itaú Chile Holding, INC.	(3b)		2,175,208		(33,931	)		201,495			-			288,969		(3,161	)		2,628,580		2,116,771		298,787
Banco Itaú Uruguay S.A.	(3c)(7b)		269,922		(3,534	)		-			-			91,851		1,600			359,839		265,668		43,743
OCA S.A.	(3d)		98,484		(939	)		-			(24,198	)		38,294		-			111,641		88,137		36,456
OCA Casa Financiera S.A.	(3e)		37,343		(136	)		-			-			4,670		-			41,877		37,623		5,591
ACO Ltda.	(3f)		2,644		(16	)		-			-			149		-			2,777		2,587		303
GRAND TOTAL			56,308,494		(43,308	)		201,451			(6,828,084	)		6,233,593		1,330,332			57,202,478		55,520,307		7,124,073

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

(2) At September 30, 2012, includes foreign exchange variation in the amount of R$ 182,586;

(3) At September 30, 2012, includes goodwill in the amounts of: (a) R$ 38,542; (b) R$ 192,277; (c) R$ 20,026; (d) R$ 5,322; (e) R$ 773; (f) R$ 90;

(4) At September 30, 2012, includes Adjustments of unrealized results in the results of operations and in investments, respectively, in the amounts of: (a) R$ (649,620) and R$ (656,065); (b) R$ 21,851 and R$ (31,458);

(5) At September 30, 2012, includes adjustments to standardize procedures under the scope of the investor in the results of operations and investments, respectively, in the amounts of: (a) R$ (13,169) and R$ (15,662); (b) R$ 8,757 and R$ (54,711); and (c) R$ 265,457 and R$ 404,703;

(6) At September 30, 2012, includes installment of dividends provided for in the amount of R$ 49,145;

(7) At September 30, 2012, equity in earnings of subsidiaries reflects equity in other variations of the stockholders’ equity of the subsidiary in the amount of: (a) R$ 1,585 and (b) R$ (4);

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

(9) Investment purchased on August 31, 2012 from Banco Itaucard S.A. and sold to Banestado Participações Administração e Serviços Ltda. on September 27, 2012;

(10) Investment sold to Banco Itaucard S.A. at 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		44,984,775		3,000,322		2,081,169,523		2,014,258,290		-		100.00		100.00
Banco Itaú BBA S.A.		4,224,086		6,393,769		1,080,338		5,284,526		5,284,526		-		99.99		99.99
Banco Itaucard S.A.		15,553,776		18,243,579		2,035,337		3,592,433,657		1,277,933,118		-		1.51		2.04
Itaú Corretora de Valores S. A.		1,046,841		2,136,694		278,473		-		811,503		-		-		1.94
Itaú-BBA Participações S.A.		25,196		50,101		2,079		12,953		25,906		-		100.00		100.00
Foreign
Itaú Chile Holding, INC.		2,131,800		2,436,303		117,245		100		-		-		100.00		100.00
Banco Itaú Uruguay S.A.		159,287		339,813		84,395		1,639,430,739		-		-		100.00		100.00
OCA S.A.		14,595		106,319		35,833		1,502,176,740		-		-		100.00		100.00
OCA Casa Financiera S.A.		18,835		41,101		3,795		646		-		-		100.00		100.00
ACO Ltda.		13		2,707		84		-		-		131		99.24		99.24

4.71

II -

Composition of investments

	09/30/2012			09/30/2011
Investment in affiliates		2,365,544			1,797,668
Domestic		2,364,623			1,478,864
Serasa S.A.		244,642			268,122
Porto Seguro Itaú Unibanco Participações S.A. (1)		1,254,314			1,172,525
Tecnologia Bancária S.A.(1)		44,059			38,135
BSF Holding S.A . (Note 2a)		821,531			-
Other		77			82
Foreign		921			318,804
Banco BPI, S.A. (BPI) (Note 13j)		-			317,775
Other		921			1,029
Other investments		1,163,906			1,295,877
Investments through tax incentives		170,245			160,575
Equity securities		12,804			11,253
Shares and quotas		277,080			375,449
Interest in Instituto de Resseguros do Brasil - IRB		227,170			227,170
Other		476,607			521,430
(Allowance for loan losses)		(205,292	)		(195,584	)
Total		3,324,158			2,897,961

(1)

For the purpose of accounting for participation in earnings, the position at 08/31/2012 was used, as provided in Circular Letter nº 1,963 of 05/23/1991, of BACEN;

III -

Equity in earnings of affiliates and other investments

	01/01 to			01/01 to
	09/30/2012			09/30/2011
Investment in affiliates – Domestic		196,877			187,441
Investment in affiliates – Foreign (Note 15a II)		(101,525	)		(318,660	)
Dividends received from other investments		88,966			104,840
Other		5,560			(10,287	)
Total		189,878			(36,666	)

4.72

Fixed assets, goodwill and intangible assets

Fixed assets

						CHANGES
	Annual							Depreciation
	depreciation/							and
	amortization		Balance at					amortization									Exchange						Balance at			Balance at
	rates (%)		12/31/2011			Acquisitions		expenses			Impairment			Disposals			variation			Other			09/30/2012			09/30/2011

REAL ESTATE IN USE (1)
REAL ESTATE IN USE (2)(3)				1,869,778			173,088		(62,409	)		-			(172,866	)		10,247			(44,566	)		1,773,272			1,708,943
Land				1,113,371			42,548		-			-			(166,911	)		974			(20,775	)		969,207			962,366
Buildings				756,407			130,540		(62,409	)		-			(5,955	)		9,273			(23,791	)		804,065			746,577
Cost				2,339,809			130,540		-			-			(7,511	)		10,452			(75,042	)		2,398,248			2,309,889
Accumulated depreciation		4		(1,583,402	)		-		(62,409	)		-			1,556			(1,179	)		51,251			(1,594,183	)		(1,563,312	)
OTHER FIXED ASSETS (3)				3,417,220			1,085,711		(933,008	)		10,416			(48,506	)		33,197			(8,189	)		3,556,841			3,211,744
Improvements				637,610			155,694		(193,177	)		-			-			19,556			21,538			641,221			598,362
Cost				1,238,789			155,694		-			-			(172,207	)		21,312			19,740			1,263,328			1,165,110
Accumulated depreciation		10		(601,179	)		-		(193,177	)		-			172,207			(1,756	)		1,798			(622,107	)		(566,748	)
Installations				390,904			140,433		(49,470	)		-			(66	)		7,741			(16,838	)		472,704			340,163
Cost				937,332			140,433		-			-			(9,353	)		5,070			(44,306	)		1,029,176			878,185
Accumulated depreciation		10 to 20		(546,428	)		-		(49,470	)		-			9,287			2,671			27,468			(556,472	)		(538,022	)
Furniture and equipment				487,065			86,765		(56,496	)		11,186			(21,528	)		3,200			(13,539	)		496,653			474,059
Cost				848,022			86,765		-			11,186			(27,788	)		1,041			(9,424	)		909,802			928,137
Accumulated depreciation		10 to 20		(360,957	)		-		(56,496	)		-			6,260			2,159			(4,115	)		(413,149	)		(454,078	)
EDP systems (4)				1,644,858			666,940		(590,093	)		-			(24,853	)		2,049			(3,024	)		1,695,877			1,555,856
Cost				4,988,233			666,940		-			-			(255,170	)		(2,138	)		(6,941	)		5,390,924			5,039,144
Accumulated depreciation		20 to 50		(3,343,375	)		-		(590,093	)		-			230,317			4,187			3,917			(3,695,047	)		(3,483,288	)
Other (communication, security and transportation)				256,783			35,879		(43,772	)		(770	)		(2,059	)		651			3,674			250,386			243,304
Cost				549,504			35,879		-			(770	)		(4,706	)		663			3,475			584,045			570,045
Accumulated depreciation		10 to 20		(292,721	)		-		(43,772	)		-			2,647			(12	)		199			(333,659	)		(326,741	)
TOTAL REAL ESTATE IN USE				5,286,998			1,258,799		(995,417	)		10,416			(221,372	)		43,444			(52,755	)		5,330,113			4,920,687
Cost				12,015,060			1,258,799		-			10,416			(643,646	)		37,374			(133,273	)		12,544,730			11,852,876
Accumulated depreciation				(6,728,062	)		-		(995,417	)		-			422,274			6,070			80,518			(7,214,617	)		(6,932,189	)

(1) There are no contractual commitments for purchase of new fixed assets;

(2) Includes amounts pledged in guarantee of voluntary deposits (Nota 12b);

(3) Includes the amount of R$ 2,086 related to attached real estate; fixed assets under construction in the amount of R$ 256,397, consisting of R$ 157,597 in real estate in use; R$ 57,064 in improvements, and R$ 41,736 in equipment;

(4) 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 usually adopted for own assets. These contracts amount to R$ 199,665 at 09/30/2012.

4.73

II)

Goodwill

CHANGES

Amortization

Balance at

Amortization

Exchange

Balance at

period

12/31/2011

Acquisitions (1)

expenses

Variation

Other

09/30/2012

09/30/2011

GOODWILL (Notes 2b and 4j) (2)

10 years

95,691

9,984,655

(15,540

)

4,123

10,068,929

95,087

(1) On September 30, 2012, goodwill on the Redecard operation in the amount of R$ 9,978,502 was recognized being amortized over the period of 10 years (Note 2c).

(2) 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.

4.74

III)

Intangible assets

					CHANGES
	Annual						Depreciation
	depreciation/						and
	amortization	Balance at					amortization									Exchange						Balance at			Balance at
	rates (%) (2)	12/31/2011			Acquisitions		expenses (3)			Impairment (5)			Disposals			variation			Other			09/30/2012			09/30/2011
INTANGIBLE ASSETS (1)
RIGHTS FOR ACQUISITION OF PAYROLL (4)			751,448			193,547		(282,942	)		-			(574	)		-			(201	)		661,278			848,718
Cost			1,647,548			193,547		-			-			(182,612	)		-			10,306			1,668,789			2,469,891
Accumulated amortization	Up to 9		(896,100	)		-		(282,942	)		-			182,038			-			(10,507	)		(1,007,511	)		(1,621,173	)
OTHER INTANGIBLE ASSETS			3,058,364			1,028,998		(352,084	)		(3,731	)		(300	)		21,335			10,406			3,762,988			2,437,597
Association for the promotion and offer of financial products and services			1,280,818			12,000		(101,513	)		(3,731	)		(261	)		6,273			2,658			1,196,244			1,036,976
Cost			1,391,335			12,000		-			(3,731	)		(56,897	)		6,943			4,413			1,354,063			1,132,958
Accumulated amortization	Up to 5		(110,517	)		-		(101,513	)		-			56,636			(670	)		(1,755	)		(157,819	)		(95,982	)
Expenditures on acquisition of software			1,338,634			1,016,998		(191,083	)		-			(34	)		5,782			7,748			2,178,045			947,295
Cost			1,871,619			1,016,998		-			-			(155,536	)		15,962			75,122			2,824,165			1,454,131
Accumulated amortization	20		(532,985	)		-		(191,083	)		-			155,502			(10,180	)		(67,374	)		(646,120	)		(506,836	)
Other intangible assets			438,912			-		(59,488	)		-			(5	)		9,280			-			388,699			453,326
Cost			613,832			-		-			-			(84	)		20,784			-			634,532			609,757
Accumulated amortization	10 to 20		(174,920	)		-		(59,488	)		-			79			(11,504	)		-			(245,833	)		(156,431	)
TOTAL INTANGIBLE ASSETS			3,809,812			1,222,545		(635,026	)		(3,731	)		(874	)		21,335			10,205			4,424,266			3,286,315
Cost			5,524,334			1,222,545		-			(3,731	)		(395,129	)		43,689			89,841			6,481,549			5,666,737
Accumulated amortization			(1,714,522	)		-		(635,026	)		-			394,255			(22,354	)		(79,636	)		(2,057,283	)		(2,380,422	)

(1) There are no contractual commitments for purchase of new intangible assets;

(2) All intangible assets have defined useful lives, except for goodwill on acquisition;

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

(4) 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;

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

4.75

NOTE 16 – STOCKHOLDERS’ EQUITY

Shares

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 09/30/2011), of which R$ 31,108,373 (R$ 31,660,339 at 09/30/2011) refers to stockholders domiciled in the country and R$ 13,891,627 (R$ 13,339,661 at 09/30/2011) 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 12/31/2011 and 09/30/2012		2,289,286,400			2,281,649,700			4,570,936,100
Residents in Brazil at 09/30/2012		2,281,065,725			878,809,518			3,159,875,243
Residents abroad at 09/30/2012		8,220,675			1,402,840,182			1,411,060,857
Treasury shares at 12/31/2011 (*)		2,100			57,293,971			57,296,071			(1,663,562	)
Purchase of treasury shares		-			3,500,000			3,500,000			(99,045	)
Exercised – Granting of stock options		-			(5,255,038	)		(5,255,038	)		115,526
Disposals – Stock option plan		-			(2,849,016	)		(2,849,016	)		119,747
Treasury shares at 09/30/2012 (*)		2,100			52,689,917			52,692,017			(1,527,334	)
Outstanding shares at 09/30/2012		2,289,284,300			2,228,959,783			4,518,244,083
Outstanding shares at 09/30/2011		2,289,284,273			2,222,958,313			4,512,242,586

(*)

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 average cost of treasury shares and their market price at September 30, 2012:

Cost/Market value	Common		Preferred
Minimum		-		27.25
Weighted average		-		28.30
Maximum		-		28.98
Treasury shares
Average cost		9.65		28.99
Market value		27.25		30.59

4.76

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, and beginning with the payment made in April 2012, it was increased by 25% to R$ 0.015 per share, in accordance with the Board of Directors’ meeting of February 6, 2012.

I -

Calculation

Net income	8,248,192
Adjustments:
(-) Legal reserve	(412,410	)
Dividend calculation basis	7,835,782
Dividend – paid/provided for	1,958,946		25.0	%

– Payments/Provision of interest on capital and dividends

	Gross		WTS			Net
Paid / Prepaid		1,768,205		(187,980	)		1,580,225
Dividends - 2 monthly installments of R$ 0.012 per share paid from February to March 2012		108,332		-			108,332
Dividends - 6 monthly installments of R$ 0.015 per share paid from April to September 2012		406,670		-			406,670
Interest on capital - R$ 0,2774 per share, paid on 08/15/2012		1,253,203		(187,980	)		1,065,223

Declared (Recorded in Other Liabilities – Social and Statutory)		433,595		(54,874	)		378,721
Dividends - 1 monthly installment of R$ 0.015 per share paid on 10/01/2012		67,768		-			67,768

Interest on capital - R$ 0,0810 per share		365,827		(54,874	)		310,953

Total from 01/01 to 09/30/2012 - R$ 0.4336 net per share		2,201,800		(242,854	)		1,958,946
Total from 01/01 to 09/30/2011 - R$ 0.4668 net per share		2,395,766		(285,844	)		2,109,922

4.77

Capital and revenue reserves

	09/30/2012		09/30/2011
CAPITAL RESERVES		812,352		640,515
Premium on subscription of shares		283,512		283,512
Granted options recognized – Law No. 11,638 and Share-based instruments		527,735		355,898
Reserves from tax incentives and restatement of equity securities and other		1,105		1,105
REVENUE RESERVES		38,685,639		32,230,408
Legal		4,260,435		3,697,710
Statutory:		34,425,204		28,532,698
Dividends equalization (1)		10,291,315		8,540,903
Working capital increase (2)		10,381,519		8,687,344
Increase in capital of investees (3)		13,752,370		11,304,451

(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;

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

	Net income				Stockholders’ equity
	01/01 to		01/01 to
		09/30/2012		09/30/2011		09/30/2012		09/30/2011
ITAÚ UNIBANCO HOLDING		8,248,192		8,883,881		84,160,377		75,915,957
Amortization of goodwill		1,853,953		2,056,000		(5,181,866	)	(7,710,244	)
ITAÚ UNIBANCO HOLDING CONSOLIDATED		10,102,145		10,939,881		78,978,511		68,205,713

4.78

Minority interest in subsidiaries

	Stockholders’ equity				Results
	09/30/2012		09/30/2011		01/01 to 09/30/2012			01/01 to 09/30/2011
Unibanco Participações Societárias S.A. (1)		-		-		-			(36,476	)
Itau Bank, Ltd. (2)		798,296		728,949		-			-
Redecard S.A. (Note 2c)		110,381		581,920		(517,427	)		(473,593	)
Biu Participações S.A.		119,716		116,205		(16,066	)		(24,696	)
Itaú Gestão de Ativos S.A.		55,421		62,110		(1,499	)		(1,999	)
Biogeração de Energia S.A.		9,335		22,933		(3,053	)		912
Investimentos Bemge S.A.		19,546		18,411		(809	)		(926	)
Other		8,590		10,946		(3,599	)		(4,158	)
Total		1,121,285		1,541,474		(542,453	)		(540,936	)

(1)

On July 28, 2011, Dibens Leasing S.A. Arrendamento Mercantil, subsidiary of ITAÚ UNIBANCO HOLDING acquired minority interest in subsidiaries of Unibanco Participações Societárias for the amount of R$ 1,226,847.

(2)

Represented by redeemable preferred shares issued on December 31, 2002 by Itau Bank Ltd., in the amount of US$ 393,072, with maturity on March 30, 2015 and semiannual dividends calculated based on LIBOR plus 1.25% p.a..

4.79

Stock Option Plan

I – Purpose and Guidelines of the Plan

The ITAÚ UNIBANCO HOLDING 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, which may range from a minimum of 5 and a maximum of 10 years, 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 only 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 in the last three months of the year prior to the granting date or, alternatively, subject to the positive or negative adjustment of up to 20%. 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 Partners 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 preferred 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.

4.80

Title to the shares received after the vesting period of the Partners 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.

The weighted average fair value of the Share-Based Instruments at the granting date was estimated for the shares purchased in the period ended September 30, 2012 – R$ 36.00 per share (at September 30, 2011 - R$ 37.00 per share).

The fair value of the Share-Based Instruments is the market price quoted at the granting date for preferred shares of ITAÚ UNIBANCO HOLDING less the cash price paid by the beneficiaries. Amount received for the purchase of Share-Based Instruments for the period ended September 30, 2012 - R$ 50,361 (at September 30, 2011 - R$ 48,489).

Summary of Changes in the Plan

				Restated		Exercised options				Number of shares
Granting		Vesting period	Exercise	exercise		Weighted average		Weighted average		Prior balance							*Forfeited () /**			To be exercised		To be exercised
No.	Date	until	until	price (R$ 1)		exercise price		market price		12/31/2011		Granted		Exercised			Cancelled			at 09/30/2012		at 09/30/2011

Simple Options
11th	02/21/2005	12/31/2009	12/31/2012		20.07		19.21		33.91		937,275		-		(419,750	)		-			517,525		1,167,475
11th	08/06/2007	12/31/2009	12/31/2012		20.07		-		-		11,357		-		-			-			11,357		11,357
12th	02/21/2006	12/31/2010	12/31/2013		29.86		28.25		37.00		6,854,365		-		(1,946,485	)		-			4,907,880		6,888,525
12th	08/06/2007	12/31/2010	12/31/2013		29.86		-		-		15,867		-		-			-			15,867		15,867
16th	08/10/2009	12/31/2010	12/31/2014		33.95		-		-		874,167		-		-			-			874,167		874,167
34th	03/21/2007	03/21/2011	03/20/2012		37.27		-		-		75,901		-		-			(75,901	)		-		75,901
35th	03/22/2007	03/22/2011	03/21/2012		37.23		-		-		29,518		-		-			(29,518	)		-		29,518
36th	05/14/2008	05/14/2011	05/13/2012		46.72		-		-		25,301		-		-			(25,301	)		-		25,301
30th	07/04/2006	07/04/2011	07/03/2012		29.90		-		-		52,707		-		-			(52,707	)		-		52,707
33rd	08/30/2006	08/30/2011	08/29/2012		33.36		32.70		38.42		21,083		-		(21,083	)		-			-		21,083
13th	02/14/2007	12/31/2011	12/31/2014		38.02		35.91		38.32		7,732,975		-		(344,650	)		(1,048,200	)		6,340,125		7,856,725
13th	08/06/2007	12/31/2011	12/31/2014		38.02		-		-		30,649		-		-			-			30,649		30,649
13th	10/28/2009	12/31/2011	12/31/2014		38.02		-		-		45,954		-		-			-			45,954		45,954
34th	03/21/2007	03/21/2012	03/20/2013		38.24		-		-		75,901		-		-			-			75,901		75,901
35th	03/22/2007	03/22/2012	03/21/2013		38.19		-		-		29,514		-		-			-			29,514		29,514
36th	05/14/2008	05/14/2012	05/13/2013		47.52		-		-		25,300		-		-			-			25,300		25,300
17th	09/23/2009	09/23/2012	12/31/2014		39.22		-		-		29,551		-		-			-			29,551		29,551
Total options to be exercised							27.86		36.70		16,867,385		-		(2,731,968	)		(1,231,627	)		12,903,790		17,255,495
14th	02/11/2008	12/31/2012	12/31/2015		43.83		-		-		9,266,066		-		-			(1,980,132	)		7,285,934		9,333,166
14th	05/05/2008	12/31/2012	12/31/2015		43.83		-		-		20,625		-		-			-			20,625		20,625
14th	10/28/2009	12/31/2012	12/31/2015		43.83		-		-		45,954		-		-			-			45,954		45,954
36th	05/14/2008	05/14/2013	05/13/2014		47.52		-		-		25,300		-		-			-			25,300		25,300
15th	03/03/2009	12/31/2013	12/31/2016		28.66		27.12		35.16		14,114,940		-		(1,452,840	)		(21,340	)		12,640,760		14,801,960
15th	10/28/2009	12/31/2013	12/31/2016		28.66		-		-		45,954		-		-			-			45,954		45,954
18th	04/17/2010	12/31/2014	12/31/2017		46.56		-		-		6,052,223		-		-			(33,005	)		6,019,218		6,052,223
18th	05/11/2010	12/31/2014	12/31/2017		46.56		-		-		1,163,919		-		-			(36,897	)		1,127,022		1,163,919
37th	04/19/2011	12/31/2015	12/31/2018		45.48		-		-		9,769,432		-		-			(103,186	)		9,666,246		9,810,523
37th	01/13/2012	12/31/2015	12/31/2018		45.48		-		-		-		15,383		-			-			15,383		-
38th	01/13/2012	12/31/2016	12/31/2019		34.02		-		-		-		15,097		-			-			15,097		-
38th	04/27/2012	12/31/2016	12/31/2019		34.02		-		-		-		10,373,657		-			(23,346	)		10,350,311		-
Total options outstanding							27.12		35.16		40,504,413		10,404,137		(1,452,840	)		(2,197,906	)		47,257,804		41,299,624
Total simple options							27.60		36.17		57,371,798		10,404,137		(4,184,808	)		(3,429,533	)		60,161,594		58,555,119

Partners Options
4th	03/03/2008	03/03/2011	-		-		-		-		39,906		-		-			(39,906	)		-		39,906
5th	09/03/2008	09/03/2011	-		-		-		-		46,710		-		-			(46,710	)		-		52,035
6th	03/06/2009	03/06/2012	-		-		-		35.90		719,023		-		(681,490	)		(37,533	)		-		719,023
7th	06/19/2009	03/06/2012	-		-		-		35.90		79,446		-		(79,446	)		-			-		79,446
1st	09/03/2007	09/03/2012	-		-		-		32.05		309,508		-		(309,294	)		(214	)		-		309,508
3rd	02/29/2008	09/03/2012	-		-		-		-		33,474		-		-			-			33,474		33,474
Total options to be exercised									34.79		1,228,067		-		(1,070,230	)		(124,363	)		33,474		1,233,392
4th	03/03/2008	03/03/2013			-		-		-		388,432		-		-			(874	)		387,558		388,432
8th	08/17/2010	08/16/2013			-		-		-		339,632		-		-			(11,120	)		328,512		339,386
9th	08/30/2010	08/16/2013	-		-		-		-		329,711		-		-			(5,285	)		324,426		329,711
11th	09/30/2010	08/16/2013	-		-		-		-		17,717		-		-			-			17,717		17,717
5th	09/03/2008	09/03/2013	-		-		-		-		449,442		-		-			(6,217	)		443,225		449,442
10th	09/30/2010	09/29/2013	-		-		-		-		1,862,409		-		-			(41,009	)		1,821,400		1,861,177
17th	06/14/2012	02/27/2014	-		-		-		-		-		7,791		-			-			7,791		-
12th	02/28/2011	02/28/2014	-		-		-		-		1,558,584		-		-			(25,085	)		1,533,499		1,558,030
6th	03/06/2009	03/06/2014	-		-		-		-		704,604		-		-			(11,390	)		693,214		704,604
7th	06/19/2009	03/06/2014	-		-		-		-		79,445		-		-			-			79,445		79,445
14th	11/04/2011	08/18/2014	-		-		-		-		509		-		-			-			509		-
17th	06/14/2012	08/18/2014	-		-		-		-		-		2,527		-			-			2,527		-
13th	08/19/2011	08/19/2014	-		-		-		-		706,397		-		-			(19,628	)		686,769		706,397
17th	06/14/2012	02/23/2015	-		-		-		-		-		8,187		-			-			8,187		-
15th	02/24/2012	02/24/2015	-		-		-		-		-		1,583,044		-			(6,279	)		1,576,765		-
16th	02/24/2012	02/24/2015	-		-		-		-		-		69,156		-			(4,673	)		64,483		-
8th	08/17/2010	08/16/2015	-		-		-		-		338,923		-		-			(11,508	)		327,415		338,302
9th	08/30/2010	08/16/2015	-		-		-		-		329,152		-		-			(5,464	)		323,688		329,152
11th	09/30/2010	08/16/2015	-		-		-		-		17,712		-		-			-			17,712		17,712
10th	09/30/2010	09/29/2015	-		-		-		-		1,858,518		-		-			(43,042	)		1,815,476		1,855,944
17th	06/14/2012	02/27/2016	-		-		-		-		-		7,790		-			-			7,790		-
12th	02/28/2011	02/28/2016	-		-		-		-		1,557,215		-		-			(26,442	)		1,530,773		1,556,165
14th	11/04/2011	08/18/2016	-		-		-		-		508		-		-			-			508		-
17th	06/14/2012	08/18/2016	-		-		-		-		-		2,527		-			-			2,527		-
13th	08/19/2011	08/19/2016	-		-		-		-		706,338		-		-			(20,011	)		686,327		706,338
17th	06/14/2012	02/23/2017	-		-		-		-		-		8,186		-			-			8,186		-
15th	02/24/2012	02/24/2017	-		-		-		-		-		1,582,979		-			(6,497	)		1,576,482		-
16th	02/24/2012	02/24/2017	-		-		-		-		-		69,151		-			(4,751	)		64,400		-
Total options outstanding							-		-		11,245,248		3,341,338		-			(249,275	)		14,337,311		11,237,954
Total Partners Options							-		37.22		12,473,315		3,341,338		(1,070,230	)		(373,638	)		14,370,785		12,471,346

TOTAL SIMPLE/PARTNERS OPTIONS							27.60		35.89		69,845,113		13,745,475		(5,255,038	)		(3,803,171	)		74,532,379		71,026,465

(*) Refers to the non exercise due to the beneficiary’s option.

4.81

Summary of Changes in the Share-Based Instruments

No.	Vesting period			Prior balance 12/31/2011		New		Converted into shares			Cancelled			Balance at 09/30/2012
1st		08/17/2010	08/16/2012		110,588		-		(109,069	)		(1,519	)		-
1st		08/17/2010	08/16/2013		110,577		-		-			(3,206	)		107,371
1st		08/30/2010	08/16/2012		10,216		-		(10,216	)		-			-
1st		08/30/2010	08/16/2013		10,212		-		-			-			10,212
1st		09/30/2010	08/16/2012		3,971		-		(3,971	)		-			-
1st		09/30/2010	08/16/2013		3,970		-		-			-			3,970
2nd		09/30/2010	09/29/2012		424,163		-		(5,533	)		(11,834	)		406,796
2nd		09/30/2010	09/29/2013		424,154		-		-			(11,834	)		412,320
3rd		02/28/2011	02/27/2011		444,040		-		(444,040	)		-			-
3rd		02/28/2011	02/27/2012		444,030		-		-			(8,679	)		435,351
3rd		02/28/2011	02/27/2013		444,020		-		-			(8,678	)		435,342
4th		02/24/2012	02/24/2013		-		468,852		-			(4,671	)		464,181
4th		02/24/2012	02/24/2014		-		468,836		-			(4,671	)		464,165
4th		02/24/2012	02/24/2015		-		468,821		-			(4,671	)		464,150
Total					2,429,941		1,406,509		(572,829	)		(59,763	)		3,203,858

No.	Vesting period			Balance at 12/31/2010		New		Converted into shares			Cancelled			Balance at 09/30/2011
1st		08/17/2010	08/16/2011		114,980		-		(110,598	)		(4,382	)		-
1st		08/17/2010	08/16/2012		114,969		-		-			(4,381	)		110,588
1st		08/17/2010	08/16/2013		114,958		-		-			(4,381	)		110,577
1st		08/30/2010	08/16/2011		10,221		-		(10,221	)		-			-
1st		08/30/2010	08/16/2012		10,216		-		-			-			10,216
1st		08/30/2010	08/16/2013		10,212		-		-			-			10,212
1st		09/30/2010	08/16/2011		3,972		-		(3,972	)		-			-
1st		09/30/2010	08/16/2012		3,971		-		-			-			3,971
1st		09/30/2010	08/16/2013		3,970		-		-			-			3,970
2nd		09/30/2010	09/29/2011		424,172		-		(424,172	)		-			-
2nd		09/30/2010	09/29/2012		424,163		-		-			-			424,163
2nd		09/30/2010	09/29/2013		424,154		-		-			-			424,154
3rd		02/28/2011	02/27/2011		-		444,040		-			-			444,040
3rd		02/28/2011	02/27/2012		-		444,030		-			-			444,030
3rd		02/28/2011	02/27/2013		-		444,020		-			-			444,020
Total					1,659,958		1,332,090		(548,963	)		(13,144	)		2,429,941

4.82

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 Partners 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 BM&FBOVESPA 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 BM&FBOVESPA, adjusted by the IGP-M variation.

Granting			Vesting period		Exercise		Price of underlying		Fair		Expected			Risk-free			Expected
No.	Date		until		period until		asset		value		dividends			interest rate			volatility

Simple Options
37th		01/13/2012		12/31/2015		12/31/2018		35.50		8.85		2.97	%		5.25	%		30.32	%
38th		01/13/2012		12/31/2016		12/31/2019		35.50		12.45		2.97	%		5.25	%		30.32	%
38th		04/27/2012		12/31/2016		12/31/2019		29.70		7.82		3.02	%		3.91	%		29.93	%

Partners Options (*)
15th		02/24/2012		02/24/2015		-		36.00		32.94		2.97	%		-			-
15th		02/24/2012		02/24/2017		-		36.00		31.04		2.97	%		-			-
16th		02/24/2012		02/24/2015		-		36.00		32.94		2.97	%		-			-
16th		02/24/2012		02/24/2017		-		36.00		31.04		2.97	%		-			-
17th		06/14/2012		08/18/2014		-		29.57		27.69		3.02	%		-			-
17th		06/14/2012		02/27/2014		-		29.57		28.08		3.02	%		-			-
17th		06/14/2012		02/23/2015		-		29.57		27.26		3.02	%		-			-
17th		06/14/2012		08/18/2016		-		29.57		26.06		3.02	%		-			-
17th		06/14/2012		02/27/2016		-		29.57		26.44		3.02	%		-			-
17th		06/14/2012		02/23/2017		-		29.57		25.65		3.02	%		-			-

(*) The fair value of 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, 2012 was R$ (133,040) (R$ (121,902) from January 1 to September 30, 2011), 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:

	09/30/2012			09/30/2011
Amount received for the sale of shares – exercised options		197,888			233,269
(-) Cost of treasury shares sold		(235,273	)		(227,078	)
(+) Write-off of cost recognized of exercised options		102,561			76,121
Effect on sale (*)		65,176			82,312

(*) Recorded in revenue reserves.

4.83

NOTE 17 – RELATED PARTIES

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:

Itaú Unibanco Participações S.A. (IUPAR) and ITAÚSA, parent companies of ITAÚ UNIBANCO HOLDING;.

The non-financial subsidiaries of ITAÚSA, specially: 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., SERASA S.A. and BSF Holding 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.

4.84

The transactions with these related parties are basically characterized by:

	ITAÚ UNIBANCO HOLDING												ITAÚ UNIBANCO HOLDING CONSOLIDATED
	ASSETS/(LIABILITIES)						REVENUE/(EXPENSE)							ASSETS/(LIABILITIES)						REVENUE/(EXPENSES)
							01/01 to			01/01 to										01/01 to			01/01 to
	09/30/2012			09/30/2011			09/30/2012			09/30/2011			Annual rate	09/30/2012			09/30/2011			09/30/2012			09/30/2011
Interbank investments		38,557,254			30,954,821			2,233,198			1,853,756				1,137,373			1,705,356			77,335			141,921
Itaú Unibanco S.A.		32,299,984			25,197,755			1,949,795			1,632,733				-			-			-			-
Agência Grand Cayman		6,257,270			5,757,066			283,403			221,023				-			-			-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-				-			531,189			-			40,426
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-		103% of CDI		171,221			246,103			11,475			24,717
													7,52% to 13,16% pre-fixed
													average 8,31% pre-fixed
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-		103% of CDI		966,152			928,064			65,860			76,778
Other		-			-			-			-				-			-			-			-
Securities and Derivative financial instruments		6,485,581			-			144,258			(183	)			-			-			-			-
Agência Grand Cayman		6,485,581			-			144,258			-				-			-			-			-
Itaú Unibanco S.A.		-			-			-			(183	)			-			-			-			-
Deposits		(5,154,518	)		(4,705,826	)		(322,075	)		(319,318	)			(1,271	)		(67,686	)		(1,724	)		-
Depósitos		(5,154,518	)		(4,705,826	)		(322,075	)		(319,318	)			-			-			-			-
Itaú Unibanco S.A.		-			-			-			-				(1,016	)		(55,604	)		(1,327	)		-
Duratex S.A.		-			-			-			-				-			(8,818	)		(303	)		-
Elekeiroz S.A.		-			-			-			-				-			(2,084	)		-			-
Itautec S.A.		-			-			-			-				-			(625	)		-			-
Porto Seguro S.A.		-			-			-			-				-			(244	)		-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-				(255	)		(296	)		(75	)		-
Ponto Frio Leasing S.A. Arrendamento Mercantil		-			-			-			-				-			(15	)		-			-
Other		-			-			-			-				-			-			(19	)		-
Securities sold under repurchase agreements		-			-			-			-				(291,145	)		(194,441	)		(6,787	)		(10,953	)
Captações no Mercado Aberto		-			-			-			-				(5,273	)		(58,357	)		-			-
Itaúsa Empreendimentos S.A.		-			-			-			-				(199,725	)		(24,544	)		(1,497	)		(1,024	)
Duratex S.A.		-			-			-			-				-			-			(543	)		(144	)
Elekeiroz S.A.		-			-			-			-				(12,417	)		(13,763	)		-			-
Itautec S.A.		-			-			-			-				-			(10,239	)		-			(604	)
FIC Promotora de Venda Ltda.		-			-			-			-		100% of SELIC		(3,797	)		(7,918	)		(130	)		(513	)
Facilita Promotora S.A.		-			-			-			-		100% of SELIC		(1,906	)		(3,756	)		(88	)		(372	)
Olimpia Promoção e Serviços S.A.		-			-			-			-				-			(13,782	)		-			(1,034	)
Banco Investcred Unibanco S.A.		-			-			-			-		100% of SELIC		(68,010	)		(62,082	)		(4,257	)		(4,992	)
Maxfácil Participações S.A		-			-			-			-				-			-			-			-
Other		-			-			-			-				(17	)		-			(272	)		(2,270	)
Amounts receivable from (payable to) related companies		-			(3,984	)		-			-				(121,415	)		(111,261	)		-			-
Valores a Receber (Pagar) Sociedades Ligadas		-			(3,557	)		-			-				-			-			-			-
Itaú Unibanco S.A.		-			(427	)		-			-				-			-			-			-
Itaú Corretora de Valores S. A.		-			-			-			-				56			58			-			-
Itaúsa Investimentos Itaú S.A.		-			-			-			-				8,940			7,400			-			-
Porto Seguro S.A.		-			-			-			-				-			(539	)		-			-
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-				-			-			-			-
FIC Promotora de Venda Ltda.		-			-			-			-				(1,574	)		(1,063	)		-			-
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-				-			-			-			-
Facilita Promotora S.A.		-			-			-			-				(1,108	)		(144	)		-			-
Olimpia Promoção e Serviços S.A.		-			-			-			-				-			-			-			-
Banco Investcred Unibanco S.A.		-			-			-			-				(1,578	)		(3,710	)		-			-
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-				(1,484	)		-			-			-
Maxfácil Participações S.A		-			-			-			-				1,308			1,176			-			-
Fundação Itaubanco		-			-			-			-				259			275			-			-
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-				(6,913	)		(9,042	)		-			-
Caixa de Prev.dos Func. do Banco Beg - PREBEG		-			-			-			-				(8,321	)		(3,267	)		-			-
Fundação BEMGEPREV		-			-			-			-				(24,825	)		(19,577	)		-			-
UBB Prev Previdência Complementar		-			-			-			-				(87,266	)		(82,841	)		-			-
Other		-			-			-			-				1,091			13			-			-
Banking service fees (expenses)		-			-			(2,438	)		(3,588	)			-			-			42,389			(104,221	)
Receitas (Despesas) de Prestação de Serviços		-			-			(2,438	)		-				-			-			-			-
Itaú Corretora de Valores S. A.		-			-			-			-				-			-			18,367			-
Fundação Itaubanco		-			-			-			-				-			-			3,822			-
FUNBEP - Fundo de Pensão Multipatrocinado		-			-			-			-				-			-			1,107			-
UBB Prev Previdência Complementar		-			-			-			-				-			-			1,401			-
Caixa de Prev.dos Func. do Banco Beg - PREBEG		-			-			-			-				-			-			812			(7,924	)
Itaúsa Investimentos S.A.		-			-			-			-				-			-			-			(79,774	)
Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento		-			-			-			-				-			-			288			(32,725	)
FAI Financeira Americanas Itaú S.A. Crédito, Financiamento e Investimento		-			-			-			-				-			-			4			36,000
Luizacred S.A. Sociedade de Crédito, Financiamento e Investimento		-			-			-			-				-			-			(9,298	)		-
Olimpia Promoção e Serviços S.A.		-			-			-			-				-			-			23,671			(18,488	)
Other		-			-			-			(3,588	)			-			-			2,215			(1,310	)
Rent revenues (expenses)		-			-			(193	)		(160	)			-			-			(24,882	)		(27,077	)
Receitas (Despesas) com Aluguéis		-			-			(45	)		-				-			-			-			-
Itaúsa Investimentos S.A.		-			-			(113	)		-				-			-			-			-
Itaú Seguros S.A.		-			-			-			-				-			-			(16,293	)		(19,771	)
Fundação Itaubanco		-			-			-			-				-			-			(7,445	)		(6,347	)
Other		-			-			(35	)		(160	)			-			-			(1,144	)		(959	)
Donation expenses		-			-			-			-				-			-			(48,200	)		(47,295	)
Despesas com Doações		-			-			-			-				-			-			(47,400	)		(43,000	)
Instituto Itaú Cultural		-			-			-			-				-			-			(800	)		-
Associação Clube A		-			-			-			-				-			-			-			(280	)
Fundação Itaú Social		-			-			-			-				-			-			-			(4,015	)
Data processing expenses		-			-			-			-				-			-			(207,462	)		(232,621	)
Despesas de Processamento de Dados		-			-			-			-				-			-			(207,462	)		(232,621	)
Non-Operating Income		-			-			-			-				-			-			-			48,088
Resultado não Operacional		-			-			-			-				-			-			-			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 in the amount of R$ 3,784 (R$ 6,147 from 01/01 to 09/30/2011) 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:

any individual or company that control the Institution or any entity under common control with the institution, or any officer, director, fiscal council member or direct relative of such individuals;

any entity controlled by the Institution; or

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 qualifying 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.

4.85

Compensation of Management Key Personnel

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

	09/30/2012		09/30/2011
Compensation		195,685		230,481
Board of Directors		6,291		3,196
Management members		189,394		227,285
Profit sharing		122,972		163,356
Board of Directors		1,500		1,000
Management members		121,472		162,356
Contributions to pension plans		6,947		4,416
Board of Directors		3		122
Management members		6,944		4,294
Stock option plan – Management members		120,370		95,509
Total		445,974		493,762

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

4.86

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 (comprises investments in affiliates and other investments), 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) (1)
	BOOK VALUE				MARKET				Results						Stockholders’ equity
	09/30/2012		09/30/2011		09/30/2012		09/30/2011		09/30/2012			09/30/2011			09/30/2012			09/30/2011
Interbank deposits		18,160,320		21,830,736		18,198,058		21,861,106		37,738			30,370			37,738			30,370
Securities and derivative financial instruments		234,556,390		185,584,204		235,749,162		186,178,883		3,634,199			1,134,810			1,192,772			594,679
Adjustment of available-for-sale securities										2,431,385			529,114			-			-
Adjustment of held-to-maturity securities										1,202,814			605,696			1,192,772			594,679
Loan, lease and other credit operations		332,127,865		310,560,158		334,134,110		310,790,972		2,006,245			230,814			2,006,245			230,814
Investments (2)
BM&FBovespa		24,755		58,107		227,533		395,734		202,778			337,627			202,778			337,627
BPI (3)		-		317,775		-		317,775		-			-			-			-
Cetip S.A.		291		17,188		12,076		202,229		11,785			185,041			11,785			185,041
Porto Seguro Itaú Unibanco Participações S.A. (4)		1,254,314		1,172,525		2,004,186		1,720,119		749,872			547,594			749,872			547,594
Serasa S.A.		244,642		268,122		1,648,278		1,150,487		1,403,636			882,365			1,403,636			882,365
Parent company		161,843		177,377		1,565,479		1,059,742		1,403,636			882,365			1,403,636			882,365
Minority stockholders (5)		82,799		90,745		82,799		90,745		-			-			-			-
Fundings and borrowings (6)		203,725,561		194,036,103		204,069,729		194,239,512		(344,168	)		(203,409	)		(344,168	)		(203,409	)
Subordinated debt (Note 10f)		49,342,036		38,366,648		50,097,691		38,511,494		(755,655	)		(144,846	)		(755,655	)		(144,846	)
Treasury shares		1,527,334		1,704,137		1,611,842		1,705,387		-			-			84,508			1,250
Total unrealized										6,946,430			3,000,366			4,589,511			2,461,485

(1) This does not consider the corresponding tax effects.

(2) Starting December 2011, Redecard is no longer disclosed since it is an investment in subsidiary.

(3) Unrealized result, considers adjustments to market value of available-for-sale securities.

(4) Parent company of Porto Seguro S.A.

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

(6) Funding is represented by interbank and time deposits, funds from acceptance and issuance of securities and borrowings.

4.87

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&FBOVESPA 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 (ANBIMA). 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 the 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 companies BPI, BM&FBOVESPA, CETIP and Porto Seguro at the share value in stock exchanges and Serasa S.A. based on the historical average of Price/Income ratio of its parent company.

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&FBOVESPA 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 market interest rates effective 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.

4.88

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:

4.89

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 Plan (3)

		Itaubank Retirement Plan (3)

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)

		Redecard Supplementary 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.

4.90

b) Defined benefit plan

I - Main assumptions used in actuarial valuation of Retirement Plans

	2012	2011
Discount rate	9.72% p.a.	9.72% p.a.
Expected return rate on assets	11.32 % p.a.	12.32% p.a.
Mortality table (1)	AT-2000	AT-2000
Turnover (2)	Itaú Exp. 2008/2010	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 (3)	Projected Unit Credit	Projected Unit Credit

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

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.

(2) The turnover assumption is based on the effective experience of ITAÚ UNIBANCO HOLDING, resulting in the average of 2.4% p.a. based on the 2008/2010 experience;

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

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.

4.91

At September 30, 2012 the allocation of plan assets and the allocation target for 2012, by type of asset, are as follows:

					% Allocation
Types	At 09/30/2012		At 09/30/2011		09/30/2012			09/30/2011			2012 Target
Fixed income securities		11,380,887		10,269,626		91.37	%		88.20	%		53% a 100	%
Variable income securities		694,127		992,687		5.57	%		8.53	%		0% a 25	%
Structured investments		14,757		12,751		0.12	%		0.11	%		0% a 10	%
Real estate		340,965		345,363		2.74	%		2.97	%		0% a 6	%
Loans to participants		24,525		23,014		0.20	%		0.20	%		0% a 5	%
Total		12,455,261		11,643,441		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$ 527,629 (R$ 505,297 at 09/30/2011), and real estate rented to Group companies, with a fair value of R$ 293,192 (R$ 296,931 at 09/30/2011).

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, conservative expectations of annual returns 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:

	09/30/2012			09/30/2011
1 - Net assets of the plans		12,455,261			11,643,441
2 - Actuarial liabilities		(10,623,100	)		(10,106,711	)
3- Surplus (1-2)		1,832,161			1,536,730
4- Asset restriction (*)		(1,400,700	)		(1,215,740	)
5 - Net amount recognized in the balance sheet (3-4)		431,461			320,990
Amount recognized in Assets		655,350			443,570
Amount recognized in Liabilities		(223,889	)		(122,580	)

(*) 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 09/30/2012 were recognized in Results under “Personnel expenses”.

4.92

- Change in net assets, actuarial liabilities, and surplus

	09/30/2012									09/30/2011
	Net assets			Actuarial liabilities			Surplus			Net assets			Actuarial liabilities			Surplus
Present value – beginning of the period		11,772,927			(10,413,448	)		1,359,479			11,167,828			(9,815,180	)		1,352,648
Inclusion of Redecard Plan								-			60,817			(55,897	)		4,920
Expected return on assets (2)		976,864						976,864			771,356			-			771,356
Cost of current service		-			(63,321	)		(63,321	)		-			(70,729	)		(70,729	)
Cost of interest		-			(738,716	)		(738,716	)		-			(700,627	)		(700,627	)
Benefits paid		(504,592	)		504,592			-			(421,701	)		421,701			-
Contributions of sponsor		33,676						33,676			22,713			-			22,713
Contributions of participants		11,451						11,451			6,645			-			6,645
Actuarial gain/(loss) (1) (2)		164,935			87,793			252,728			35,783			114,021			149,804
Present value – end of the period		12,455,261			(10,623,100	)		1,832,161			11,643,441			(10,106,711	)		1,536,730

(1) Gains/losses recorded in Net Assets correspond to the income earned above/below the expected return rate of assets.

(2) The actual return on assets amounted to R$ 1,141,799 (R$ 807,132 at 09/30/2011)

The history of actuarial gains and losses is as follows:

	09/30/2012			09/30/2011
Net assets of the plans		12,455,261			11,643,441
Actuarial liabilities		(10,623,100	)		(10,106,711	)
Surplus		1,832,161			1,536,730
Experience adjustments in net assets		164,935			35,783
Experience adjustments in actuarial liabilities		87,793			114,021

V-

Total revenue (expenses) recognized in income for the period

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

	09/30/2012			09/30/2011
Cost of current service		(63,321	)		(70,729	)
Cost of interest		(738,716	)		(700,627	)
Expected return on the plan assets		976,864			771,356
Effect on asset restriction		(138,090	)		(107,062	)
Gain/(loss) for the period		252,728			149,804
Contributions of participants		11,451			6,645
Total revenue (expenses) recognized in income for the period		300,916			49,387

During the period, contributions made totaled R$ 33,676 (R$ 22,713 at September 30, 2011). The contribution rate increases based on the beneficiary’s salary.

In 2012, the expected contribution to retirement plans sponsored by ITAÚ UNIBANCO HOLDING is R$ 38,870.

We present below the estimated benefit payments for the next 10 years:

Period	Estimated payment
2012		645,780
2013		673,231
2014		697,244
2015		721,382
2016		746,311
2017 to 2021		4,118,739

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, 2012 the amount recognized in assets is R$ 1,485,828 (R$ 1,171,809 at 09/30/2011).

4.93

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

	09/30/2012			09/30/2011
Contributions		(102,680	)		(99,837	)
Actuarial gain/(loss)		146,318			20,220
Effect on asset restriction		(996	)		82,259
Total revenue recognized in income for the period		42,642			2,642

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 09/30/2012 were recognized in Results under “Personnel expenses”.

In the period, contributions to the defined contribution plans, including PGBL, totaled R$ 133,805 (R$ 128,033 at 09/30/2011), of which R$ 102,680 (R$ 108,177 at 09/30/2011) arises from pension funds.

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 reported prepared by an 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:

	09/30/2012			09/30/2011
At the beginning of the period		(120,154	)		(105,335	)
Cost of interest		(8,533	)		(7,476	)
Benefits paid		4,141			4,239
Actuarial loss		-			1,147
At the end of the period		(124,546	)		(107,425	)

We present below the estimated benefit payments for the next 10 years:

Period	Estimated payment
2012		6,366
2013		6,852
2014		7,362
2015		7,854
2016		8,363
2017 to 2021		50,248

II-

Assumptions and sensitivities 1%

For calculation of benefits obligations projected beyond the assumptions used for the defined benefit plans (Note 19b 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		1,609		(1,321	)
Effects on present value of obligation		16,559		(13,563	)

4.94

NOTE 20 – INFORMATION ON FOREIGN SUBSIDIARIES

	Foreign branches (1)						Latin America Consolidated (2)						Itaú Europa Consolidated (3)						Cayman Consolidated (4)						Other foreign companies (5)						Foreign consolidated (6)
	09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011			09/30/2012			09/30/2011
Assets
Current assets and long-term receivables
Cash and cash equivalents		2,450,306			2,318,241			2,715,234			2,060,664			313,089			1,964,259			1,249,698			3,637,635			1,471,707			885,576			6,532,264			6,069,404
Interbank investments		10,959,762			18,789,431			1,461,185			1,147,309			2,297,957			1,021,853			7,977,439			6,298,526			345,688			839,647			8,155,451			19,074,741
Securities		53,355,292			42,267,534			4,600,630			2,782,325			2,036,083			1,819,148			6,378,442			4,621,626			33,089			9,452			65,733,185			50,765,259
Loan, lease and other credit operations		33,040,948			27,206,884			25,031,544			17,360,367			7,482,490			7,055,436			97,083			283,689			828			5,642			65,591,968			51,819,464
Foreign exchange portfolio		32,030,420			32,692,272			420,265			483,590			3,636,363			2,404,693			494,140			693,007			-			-			35,995,919			34,958,843
Other assets		1,765,532			1,628,381			3,198,994			2,061,963			286,393			220,920			1,037,628			1,141,761			230,452			114,937			6,387,946			4,905,838
Permanent assets
Investments		23,798			21,733			7,489			6,752			4,074			159,581			57,563			45,288			22,727			168,359			40,826			354,974
BPI (Note 15a II)		-			-			-			-			-			155,709			-			-			-			162,065			-			317,774
Other investments		23,798			21,733			7,489			6,752			4,074			3,872			57,563			45,288			22,727			6,294			40,826			37,200
Fixed and intangible assets		23,914			17,608			550,293			447,373			176,129			179,755			1,370			2,618			17,749			39,178			769,456			660,940
Total		133,649,972			124,942,084			37,985,634			26,350,343			16,232,578			14,825,645			17,293,363			16,724,150			2,122,240			2,062,791			189,207,015			168,609,463

LIABILITIES
Current and long-term liabilities
Deposits		38,283,618			41,544,416			25,823,927			17,600,111			5,884,682			6,070,018			4,966,378			2,372,347			-			-			63,271,408			54,812,872
Demand deposits		7,907,647			6,679,898			6,716,836			5,156,894			2,937,874			2,721,819			361,107			1,048,074			-			-			16,250,499			10,849,027
Savings deposits		-			-			3,508,265			3,079,732			-			-			-			-			-			-			3,508,265			3,079,732
Interbank deposits		12,871,885			2,214			167,716			86,007			936,607			1,667,839			779,557			-			-			-			9,022,676			1,139,679
Time deposits		17,504,086			34,862,304			15,431,110			9,277,478			2,010,201			1,680,360			3,825,714			1,324,273			-			-			34,489,968			39,744,434
Deposits received under securities repurchase agreements		13,164,317			8,414,344			414,112			189,657			-			-			3,730,410			1,676,686			-			-			12,411,251			9,206,434
Funds from acceptance and issuance of securities		4,818,423			6,812,903			2,118,348			1,227,095			3,993,093			3,017,885			2,683,632			2,950,553			-			-			13,585,496			14,004,426
Borrowings		18,573,524			14,270,037			2,129,221			1,631,000			1,597			574,433			6,018			53,227			-			31,691			20,710,360			16,529,753
Derivative financial instruments		2,366,444			2,368,038			293,228			308,231			660,145			846,187			715,338			831,821			-			-			3,423,230			3,698,694
Foreign exchange portfolio		32,016,427			32,777,979			420,750			479,163			3,667,559			2,409,869			487,556			675,542			-			-			36,007,023			35,027,835
Other liabilities		14,736,854			6,425,303			2,293,056			1,810,323			574,993			468,990			1,961,936			332,463			196,228			112,092			19,570,136			8,827,365
Deferred income		60,886			49,936			5,780			10,371			19,773			23,809			-			132			1,224			2,045			87,663			86,294
Minority interest in subsidiaries		-			-			9,327			45,333			67			63			798,296			728,949			3			4			798,607			729,209
Stockholders’ equity
Capital and reserves		8,487,285			10,858,053			4,106,341			2,787,718			1,628,543			1,499,562			1,952,279			7,078,513			2,141,852			2,064,990			18,253,492			24,195,475
Net income for the period		1,142,194			1,421,075			371,544			261,341			(197,874	)		(85,171	)		(8,480	)		23,917			(217,067	)		(148,031	)		1,088,349			1,491,106
Total		133,649,972			124,942,084			37,985,634			26,350,343			16,232,578			14,825,645			17,293,363			16,724,150			2,122,240			2,062,791			189,207,015			168,609,463
Statement of Income
Income from financial operations		2,667,124			1,656,803			1,909,121			1,183,958			205,313			203,177			299,210			229,588			9,326			21,216			4,913,384			3,196,069
Expenses of financial operations		(1,289,733	)		(391,303	)		(751,087	)		(429,806	)		(111,748	)		(80,477	)		(205,841	)		(153,172	)		(225	)		(2,627	)		(2,192,351	)		(970,138	)
Result of loan losses		(156,230	)		164,185			(135,009	)		(109,544	)		2,546			2,717			-			-			(65	)		(2,879	)		(288,758	)		56,224
Gross income from financial operations		1,221,161			1,429,685			1,023,025			644,608			96,111			125,417			93,369			76,416			9,036			15,710			2,432,275			2,282,155
Other operating revenues (expenses)		(78,764	)		(1,023	)		(538,257	)		(355,175	)		(126,565	)		(173,746	)		(101,849	)		(51,170	)		(58,579	)		(145,256	)		(895,055	)		(705,641	)
Operating income		1,142,397			1,428,662			484,768			289,433			(30,454	)		(48,329	)		(8,480	)		25,246			(49,543	)		(129,546	)		1,537,220			1,576,514
Non-operating income		(48	)		(7,499	)		1,898			39,252			(148,502	)		3,432			-			239			(153,023	)		1,128			(300,576	)		35,420
Income before taxes on income and profit sharing		1,142,349			1,421,163			486,666			328,685			(178,956	)		(44,897	)		(8,480	)		25,485			(202,566	)		(128,418	)		1,236,644			1,611,934
Income tax		(155	)		(88	)		(114,559	)		(59,430	)		(15,826	)		(36,845	)		-			-			(14,501	)		(19,615	)		(145,040	)		(115,806	)
Statutory participation in income		-			-			(135	)		-			(3,095	)		(3,429	)		-			(1,568	)		-			-			(3,230	)		(4,997	)
Minority interest in subsidiaries		-			-			(428	)		(7,914	)		3			-			-			-			-			2			(25	)		(25	)
Net income (loss)		1,142,194			1,421,075			371,544			261,341			(197,874	)		(85,171	)		(8,480	)		23,917			(217,067	)		(148,031	)		1,088,349			1,491,106

(1)	Itaú Unibanco S.A. - Grand Cayman, New York and Tokyo, ITAÚ UNIBANCO HOLDING S.A. - Grand Cayman Branch, Banco Itaú-BBA S.A. - Nassau Banch, only 9/30/2011, Banco Itaú BBA S.A Sucursal Uruguai, Unibanco Grand Cayman Branch and Itaú Unibanco S.A. - Nassau 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, Itaú Sociedad de Bolsa S.A., 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, Itaú Chile Compañia de Seguros de Vida S.A., ACO Ltda., Banco Itaú Uruguay S.A., OCA Casa Financiera S.A., OCA S.A., Unión Capital AFAP S.A., Banco Itau Paraguay, Tarjetas Unisoluciones S. A. de Capital Variable y Proserv - Promociones Y Servicios S.A. de C. V ., MCC Asesorias LImitada (50%), MCC Securites INC. (50%) and Itaú BBA SAS; only at 9/30/2012, Itaú BBA Colômbia and MCC Corredora de Bolsa (50,0489%).

(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., Itaú Europa Securities Inc., Federal Director International Services, S.A., Bay State Corporation Limited and Banco Itau Suisse S.A; only at 09/30/2011, Itaú Madeira Investimentos SGPS Ltda., Kennedy Director International Services S.A., Cape Ann Corporation Limited., BIE Directors Ltd and BIE Nominees Lda; only at 9/30/2012, Itaú BBA International Limited.

(4)	Itau Bank Ltd., ITB Holding Ltd., Jasper International Investiment LLC, Unibanco Cayman Bank Ltd., Itaú Bank & Trust Cayman Ltd., Uni-Investments Inter. Corp., Unipart Partic. Internac. Ltd., Rosefield Finance Ltd. (50%) and UBT Finance S.A.; only at 9/30/2011, Unibanco Securities Inc. and Itau USA Asset Management.

(5)	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, Unipart B2B Investments, S.L., Itau BBA UK Securities Limited, Itaú Japan Asset Management Ltd. and Itaú (Beijing) Investment Consultancy Limited, Itaú UK Asset Management LImited; only at 09/30/2012: Itaú Asia Asset Management Limited and Itaú USA Asset Management.

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

4.95

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 ITAÚ UNIBANCO HOLDING’s income, capital and liquidity.

Risk management is considered by ITAÚ UNIBANCO HOLDING an essential tool for optimizing the use of resources and selecting the best business opportunities, in order to maximize shareholder value.

At ITAÚ UNIBANCO HOLDING, Risk Management is the process in which:

The existing and potential risks in ITAÚ UNIBANCO HOLDING's operations are identified and measured;

Norms, procedures and methodologies for risk management and control consistent with the Board of Directors’ guidelines and ITAÚ UNIBANCO HOLDING’s strategies are approved;

The ITAÚ UNIBANCO HOLDING’s risk portfolio is managed considering the best risk-return ratio;

Risk management processes are spread throughout the whole institution, aligned with the guidelines of the Board of Directors and Executives that, through Committees of the Board of Directors and Senior Commissions, define the global objectives that are measured as goals and limits to the risk management units. Control units, in turn, support the ITAÚ UNIBANCO HOLDING’s management by monitoring and analyzing risk.

ITAÚ UNIBANCO HOLDING’s risk management organizational structure is compliant with the regulations in Brazil and abroad and in line with market best practices. The Market, Credit, Liquidity, Operational and Underwriting risks control is performed in a centralized way by an independent unit, aiming at assuring that the ITAÚ UNIBANCO HOLDING’s risks are being managed in accordance with established policies, norms and procedures. The purpose of centralizing control is to provide the Executives and the Board of Directors with an overview of ITAÚ UNIBANCO HOLDING’s risk exposure, so as to optimize and speed up corporate decision-making.

ITAÚ UNIBANCO HOLDING manages proprietary IT systems to fully meet the applicable rules on capital reserve, pursuant to determinations and models issued by the Central Bank (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.

In compliance with Resolution No. 3,988 of June 30, 2011 of the National Monetary Council (CMN), ITAÚ UNIBANCO HOLDING’s capital management structure is been adapted and implemented. In January 2012 the Board of Directors has approved the appointment of an officer in charge and establishment of the structure, applicable to ITAÚ UNIBANCO HOLDING. In June 2012, the institutional norm has also been approved by the Board of Directors, and processes, procedures and systems required for the effective implementation of the capital management structure have been established.

Further information on risk management can be found on the 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 variations in the market values of positions held by a financial institution, including the risks of transactions subject to the variations in foreign exchange and interest rates, and equities and commodity prices.

The process for managing market risks of ITAÚ UNIBANCO HOLDING occurs within the governance and hierarchy of committees and limits approved specifically for this purpose, and that covers from the monitoring of aggregate indicators of risk to granular limits, assuring effectiveness and coverage of control. These limits are dimensioned considering the projected results of the balance sheet, the level of equity and the profile of risk of each legal entity, which are defined in terms of risk measures used by management. Limits are monitored daily and excesses are reported and discussed in the corresponding committees.

The structure of limits and alerts follows the guidelines of the Board of Directors and is designed and approved by the Superior Risk Committee (CSRisc), after discussions and deliberations by the Superior Institutional Treasury Committee (CSTI) about metrics and market risk limits. The review of this structure is performed at least annually.

4.96

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 management is the process through which the institution plans, monitors and controls the risks of variations in financial instruments market values, aiming at optimizing the risk-return ratio, by using an appropriate structure of Adequate 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 corporate guidelines the ITAÚ UNIBANCO HOLDING’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) (as amended), being a set of principles that drive the ITAÚ UNIBANCO HOLDING strategy towards control and management of market risk of all business units and legal entities of the ITAÚ UNIBANCO HOLDING.

The document that details the guidelines set out by by the corporate guidelines 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 the business ones, and is responsible for carrying out daily measurement, assessment, analysis and report activities to the areas and people in charge, pursuant to governance establishedand monitoring the actions required to adjust the position and/or risk level. For this purpose, the ITAÚ UNIBANCO HOLDING relies on a structured communication and information process, aiming at providing feedback for the follow-up of the superior committees and compliance with the regulatory bodies in Brazil and abroad.

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

Value at Risk (VaR): statistical measure that estimates the expected maximum potential economic loss under normal market conditions, considering a certain time horizon and confidence level;

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

Stop Loss: effective losses added to the maximum potential loss in bullish and bearish scenarios;

Earnings at Risk (EaR): Measure that quantifies the P&L impact of a given portfolio, considering regular market conditions, time horizon related to the longest transaction in the banking portfolio and a predetermined confidence interval.

In addition to the aforementioned risk measures, sensitivity and loss control measures are also analyzed. They comprise:

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

Sensitivity (DV1- Delta Variation): impact on the market value of cash flows, when submitted to an one annual basis point increase in the current interest rates. Applied to risk factors;

Sensitivity to Several Risk Factors (Greeks): partial derivatives of an option portfolio in relation to the prices of underlying assets, implied volatilities, interest rates and time;

Stop Loss: maximum loss that a certain portfolio classified in the trading portfolio is authorized to reach.

The consolidated ITAÚ UNIBANCO HOLDING S.A., maintaining its conservative management and portfolio diversification, continued with its policy of operating within low limits in relation to its capital.

In September 2012, Itaú Unibanco recorded a Total Global VaR of R$ 218 million (R$ 402 million in June/2012).

4.97

II – Credit Risk

Credit risk is the possibility of incurring losses in connection with: (i) the breach by the borrower or counterparty of the respective agreed-upon financial obligations, (ii) the devaluation of loan agreement due to downgrading of the borrower’s risk rating, (iii) the reduction in gains or compensation, (iv) the advantages given upon renegotiation and (v) the 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 institutional norm 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 websitewww.itau-unibanco.com.br/ri, in the section Corporate Governance, Rules and Policies, Public Access Report – Credit Risk.

The objective of ITAÚ UNIBANCO HOLDING’s credit risk management aims at creating value to stockholders, through the analysis of the risk-adjusted return, focusing on maintaining the quality of credit portfolio in levels adequate to each market segment in which it operates.

ITAÚ UNIBANCO HOLDING establishes its credit policy based on internal factors, such as the client rating criteria and portfolio development analysis, the registered default levels, the incurred return rates, 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, and consumption increase/decrease. ITAÚ UNIBANCO HOLDING’s centralized process for making decisions and establishing a credit policy guarantees the synchrony of credit actions and optimization of business opportunities.

To protect the institution against losses arising from loan operations, ITAÚ UNIBANCO HOLDING 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 and the volume of the regulatory provision is determined.

ITAÚ UNIBANCO HOLDING 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 of internal processes, personnel and systems, or external events. It includes the legal risk, associated with the inadequacy or deficiency in agreements signed by the institution, as well as sanctions for failing to meet legal provisions and compensation for damages to third parties arising from activities performed by ITAÚ UNIBANCO HOLDING.

The purposes of operational risk management is to identify, evaluate, measure and respond to the ITAÚ UNIBANCO HOLDING’s operational risks and monitor them for the purpose of maintaining losses and risks within the limits established by ITAÚ UNIBANCO HODLING and to ensure adherence to the internal guidelines and current regulation. The managers of the business and support areas use corporate methodologies that are built and made available by the operational risk and internal control areas to support the management process.

The operational risk control is the process of measurement, monitoring and reporting of the organization’s risk aimed at ensuring that ITAÚ UNIBANCO HODLING’s risk profile is within the limits established by Senior Management and that Senior Management is informed of the main risks of the institution in a timely manner. This control is carried out by the operational risk and internal control areas, which, in turn, use control methodologies and risk information generated by the business areas. Within the governance of the operational risk management process, there are specific operational risk and control forums conducted by the control areas where the consolidated reports on risk monitoring, controls, action plans and operational losses are presented to the business areas executives.

4.98

The set of principles, governance, roles and responsibilities, methodologies and procedures that support the operational risk management process applied to products, services, activities, processes and systems is described and published in an operational risk management institutional norm. A summarized version of such policy is available on the website www.itau-unibanco.com.br/ri in the section Corporate Governance, Rules and Policies, Public Access Report – Operational Risk.

On April 30, 2008, BACEN published Circular No. 3.383 and Circular Letters Nos. 3,315 and No. 3,316, which establish the criteria for calculation of PRE related to the operational risk (POPR), addressed by Resolution No. 3,490. Therefore, since July 1, 2008, ITAÚ UNIBANCO HOLDING has allocated capital to Operational Risk using the Alternative Standardized Approach.

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 ITAÚ UNIBANCO HOLDNIG’s payment capacity, taking into consideration the different currencies and payment terms and their rights and obligations.

Management of liquidity risk seeks to guarantee liquidity sufficient to support possible outflows in market stress situations, as well as the compatibility between funding, and terms and liquidity of assets.

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

Additionally, ITAÚ UNIBANCO HOLDNIG 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. Liquidity management policies and associated limits are established based on prospective scenarios that are regularly reviewed and on top management definitions.

V - Underwriting Risk

Underwriting risk is the possibility of incurring losses arising from insurance, pension plan and capitalization operations that are contrary to the organization’s expectations and that are directly or indirectly associated with the technical and actuarial bases used to calculate premiums, contributions and technical reserves.

The insurance risk management process is supported by roles and responsibilities determined by the business and risk control areas so as to reinforce the separation of the management and control activities and, therefore, ensure the independence between the areas. Additionally, there is a governance process that ensures an independent validation of the products and negotiations in question, ensuring compliance with the many internal and regulatory demands.

In accordance with the Resolution No. 228 of December 6, 2010 of National Council of Private Insurance (CNSP), ITAÚ UNIBANCO HOLDING establishes limits for borderline risks between underwriting and credit. Itaú Unibanco defines the credit risk quality of reinsurance companies and the concentration limits in accordance with CNSP Resolution No. 168, of December 17th, 2007, following the same credit governance of Itaú Unibanco.

4.99

NOTE 22 – ADDITIONAL INFORMATION

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

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

	09/30/2012			09/30/2011
Permanent foreign investments		19,341,841			25,686,581
Net amount of other assets and liabilities indexed to foreign currency, including derivatives		(31,369,739	)		(45,630,403	)
Net foreign exchange position		(12,027,898	)		(19,943,822	)

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.

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
		09/30/2012	09/30/2011		09/30/2012	09/30/2011		09/30/2012	09/30/2011
Investment funds		352,208,281	299,943,197		352,208,281	299,943,197		3,448	3,146
Fixed income		327,469,868	272,337,080		327,469,868	272,337,080		2,775	2,278
Shares		24,738,413	27,606,117		24,738,413	27,606,117		673	868
Managed portfolios		200,530,402	154,154,281		80,082,220	90,867,869		15,583	15,235
Customers		100,017,400	92,862,662		79,672,242	79,309,333		15,512	15,166
Itaú Group		100,513,002	61,291,619		409,978	11,558,536		71	69
TOTAL		552,738,683	454,097,478		432,290,501	390,811,066		19,031	18,381

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

Funds of consortia

	09/30/2012		09/30/2011
Monthly estimate of installments receivable from participants		86,203		68,664
Group liabilities by installments		6,410,714		5,384,859
Participants – assets to be delivered		5,949,944		5,061,196
Funds available for participants		554,504		424,627
(In units)
Number of managed groups		806		720
Number of current participants		264,503		195,043
Number of assets to be delivered to participants		153,320		118,696

4.100

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.

During the period from January 1 to September 30, 2012 the consolidated companies made no donations (R$ 280 at September 30, 2011) and the Foundation’s social net assets totaled R$ 3,005,736 (R$ 2,914,369 at September 30, 2011). The income arising from its investments will be used to achieve the Foundation’s social purposes.

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$ 47,400 (R$ 43,000 from January 1 to September 30, 2011).

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.

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, 2012, the consolidated companies made donations to Clube “A” in the amount of R$ 800.

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.

Exclusions of nonrecurring effects net of tax effects – Holding and Holding Consolidated

	01/01 to 09/30/2012			01/01 to 09/30/2011
Program for Settlement or Installment Payment of Federal - Law No. 11,941/09 (Notes 12b and 14)		-			508,993
Provision for contingencies – economic plans (Note 12)		(133,385	)		(230,435	)
Market value based on the share price – BPI (Note 15a II)		(305,447	)		(233,295	)
Total		(438,832	)		45,263

4.101

Reclassifications for comparison purposes – The Company carried out reclassifications in the balances of September 30, 2011, for financial statements comparison purposes, in view of the regrouping of the following headings: In the Balance Sheet, the reclassification related to Investment Funds from Minority Interest in Subsidiaries to Other Liabilities – Sundry. In Statement of Income, the reclassification of Provision for Tax and Social Security from Other Operating Expenses to Other Operating Revenues and the reclassification from Minority Interest in Subsidiaries to Expenses of Financial Operations.

	Prior disclosure			Reclassification/ deconsolidation			Adjusted balances
CURRENT AND LONG-TERM LIABILITIES		765,922,344			462,718			766,385,062
OTHER LIABILITIES		160,836,498			462,718			161,299,216
Sundry		19,872,533			462,718			20,335,251
MINORITY INTEREST IN SUBSIDIARIES		2,004,192			(462,718	)		1,541,474
TOTAL LIABILITIES		836,994,304			-			836,994,304
EXPENSES OF FINANCIAL OPERATIONS		(40,658,540	)		(37,716	)		(40,696,256	)
Money market		(35,165,276	)		(37,716	)		(35,202,992	)
INCOME FROM FINANCIAL OPERATIONS BEFORE LOAN LOSSES		34,495,253			(37,716	)		34,457,537
GROSS INCOME FROM FINANCIAL OPERATIONS		23,951,122			(37,716	)		23,913,406
OTHER OPERATING REVENUES (EXPENSES)		(11,041,987	)		244			(11,041,743	)
Despesas de Pessoal		(10,048,610	)		244			(10,048,366	)
Outras Receitas Operacionais		303,769			(231	)		303,538
Outras Despesas Operacionais		(3,844,468	)		231			(3,844,237	)
OPERATING INCOME		12,909,135			(37,472	)		12,871,663
RESULTADO NÃO OPERACIONAL		189,378			(244	)		189,134
INCOME BEFORE TAXES ON INCOME AND PROFIT SHARING		13,098,513			(37,716	)		13,060,797
IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL		(1,416,624	)		-			(1,416,624	)
Devidos sobre Operações do Período		(5,383,745	)		149,368			(5,234,377	)
Referentes a Diferenças Temporárias		3,967,121			(149,368	)		3,817,753
MINORITY INTEREST IN SUBSIDIARIES		(578,652	)		37,716			(540,936	)
NET INCOME		10,939,881			-			10,939,881

Agreements for offset and settlement of liabilities in the scope of the National Financial System – Offset agreements were entered into in the scope of derivative contracts, as well as agreements for offset and settlement of receivables and payables pursuant to CMN Resolution No. 3.263, of February 24, 2005, which purpose is to enable the offset of credits and debits maintained with the same counterparty, and in which the maturity dates of receivables and payables can be advanced to the date an event of default by one of the parties occurs or in case of the bankruptcy of the debtor

Subsequents Events

Redecard

In October 2012, ITAÚ UNIBANCO HOLDING purchased, through its subsidiary Banestado Participações, Administração e Serviços Ltda., 23,987,343 common shares of Redecard for the amount offered in the OPA of September 24, 2012, of R$ 35.00 plus SELIC variation for the period, thus increasing its participation from 94.4% to 98.0%. ITAÚ UNIBANCO HOLDING expects to complete the purchase of the remaining minority interest by the end of 2012.

On October 18, 2012, the Securities and Exchange Commission (CVM) cancelled Redecard’s register as a publicly-held company.

Serasa

We inform the sale to Experian of our total interest in Serasa S.A. Experian shall pay R$ 1.7 billion to Itaú Unibanco, in cash, for 601,403 SERASA’s shares, representing 16.14% of the company's capital. The result before taxes for the bank, arising from this sale, is estimated at R$ 1.5 billion in the fourth quarter of 2012.

5.1

Report on review of interim financial statements

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") stand alone, which comprise the balance sheet as at September 30, 2012 and the related statements of income, changes in stockholders equity's 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, 2012 and 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 consolidated 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 stand alone interim financial statements

Based on our review, nothing has come to our attention that causes us to believe that the stand alone interim financial statements referred to above do not present fairly, in all material respects, the financial position of Itaú Unibanco Holding S.A. as at September 30, 2012, and the financial performance and cash flows, for the nine-month period then ended, 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 referred to in the first paragraph do not presented fairly, in all material respects, the financial position of Itaú Unibanco Holding S.A. as at September 30, 2012, and the financial performance and cash flows, for the nine-month period then ended, in accordance with accounting practices adopted in Brazil, applicable to institutions authorized to operate by the Brazilian Central Bank (BACEN).

5.2

Other matters

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 its subsidiaries for the nine-month period ended September 30, 2012, 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 22, 2012

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

Paulo Sergio Miron

Contador CRC 1SP173647/O-5

7.1

ITAÚ UNIBANCO HOLDING S.A.

CNPJ. 60.872.504/0001-23

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 2012, 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 (SP), October 22, 2012.

IRAN SIQUEIRA LIMA

President

ALBERTO SOZIN FURUGUEM

Member

LUIZ ALBERTO DE CASTRO FALLEIROS

Member