Banco Itau Holding Financeira S.A.
A Publicly Listed Company CNPJ. 60.872.504/0001-23
Announcement to the Market
Cooperation Agreement
Banco Itau Holding Financeira S.A. and Banco BMG S.A.
1. Banco Itau Holding Financeira S.A. (ITAU) and Banco BMG S.A. (BMG) have
signed today a mutual cooperation agreement, with the objective of
optimizing the synergies existing between the two institutions and
increasing their focus on the retail credit sector. The agreement is for 3
years, renewable.
2. BMG, a traditional financial institution based in Minas Gerais, specializes
in credit facilities reimbursable through payroll deductions, with
particular expertise in the fields of government employees, private sector
employees and pensioners or their survivors receiving benefits from the
Brazil's Social Security Institute - INSS.
BMG has branches in the main state capitals of the country and acts through
banking correspondents offering over 15 thousand points of sale to its
target market.
3. The agreement stipulates:
a) the establishment of a line starting from R$ 1.5 billion for the
acquisition of credits originated by BMG, beginning with R$ 500 million
and following at a pace of at least R$ 100 million monthly, aiming to
increase its credit portfolio;
b) that BMG, through its sales network, may distribute financial products
and services as well as insurance and pension fund products developed
by ITAU, under the BMG name, such as:
o insurance,
o capitalization,
o private pension funds,
o credit cards (open network).
4. The agreement offers BMG:
o a potential increase in the sale of other financial products and
services to its customers, principally through its correspondent
network;
o the ability to continue to focus on the segment of credit facilities
reimbursable through payroll deductions.
5. The agreement offers ITAU:
o growth in its personal loan portfolio, especially as regards its sales
channel for its consumer credit products (Financeira Taii); and
o the possibility of offering innovative final products and services to
BMG's customers.
6. The agreement reaffirms ITAU's strategy of sustainable growth in its credit
book, especially as regards personal loans, as well as aggregates expertise
to markets where it sees new opportunities.
7. For BMG the Agreement means greater customer loyalty at the sales point and
new opportunities for generating additional revenues.
Sao Paulo, December 8 2004.
BANCO ITAU HOLDING FINANCEIRA S.A. BANCO BMG S.A.
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Investor Relations Director Chief Executive Officer
