ANNUAL REPORT 2010

Management
Discussion and Analysis
Summary of Consolidated
Balance Sheet
Year end
(In thousands of Bs and millions of US$
except percentages)
Total Assets
Investment Portfolio
Loan Portfolio, Net
Deposits
Shareholders’ Equity
Trust Fund Assets
Assets by Currency
Bs. 79,383 million
(US$ 18,507 million)
Year 2010
Bolivars 58%
US Dollar 42%
Balance Sheet
A summary balance sheet for 2010 is shown
below and the main variations by comparison with 2009 are commented on:
The audited financial statements and their notes can be found in the inside back cover of this Report.
The accounting standards used are summarized at the end of this chapter.
Total Assets
Total assets were Bs 79,383 million (US$ 18,507 million) 1 , representing 49.6% annual growth.
This variation includes: a) 18.9% growth of the domestic operation, b) 4.2% growth of the
overseas operation in dollar terms, and c) 26.5% increase (Bs 14,073 million) due to currency
translation effects.
The total consolidated assets of Mercantil Banco Universal, including overseas agencies, grew
Bs 9,306 million (24.9%) from Bs 37,333 million (US$ 17,408 million) 1 at December 31, 2009 to
Bs 46,639 million (US$ 10,873 million) 1 at year end. At December 31, 2010 Mercantil Banco
Universal ranks fourth in the Venezuelan financial system in terms of total assets with 11.4%
of the market. The leading institution has a 13.2% market share while the four largest banks
in the country account for 49.5%.
The Mercantil Commercebank Florida Bancorp subsidiary (Mercantil Commercebank, N.A.’s
holding company) had US$ 6,433 million1 (Bs 27,593 million) in total assets which represents
US$ 485 million growth (8.2% in dollar terms and 116.3% in terms of bolivars for the purpose
of consolidation) compared to US$ 5,948 million1 (Bs 12,756 million) in December 2009.
At December 31, 2010 Mercantil Seguros’ assets accounts totaled Bs 3,350 million (US$ 781
million) 1 , Bs 1,166 million (53,3%) more than the Bs 2,184 million (US$ 1,019 million) 1 registered
in December 2009. Swiss subsidiary Mercantil Bank (Schweiz) A.G. had US$ 334 million1 (Bs 1,431 million) in assets at December 31, 2010, US$ 3 million (1.0%) more than the US$ 330
million1 (Bs 708 million) registered in December 2009.
35
2010
US$ (1)
18,507
5,034
10,008
14,540
1,985
2,247
2010
bolivars
79,382,962
21,591,730
42,928,106
62,366,913
8,513,300
9,638,196
2009
bolivars
53,074,810
14,044,092
27,137,723
42,847,704
4,879,810
9,699,922
Mercantil Servicios Financieros
2008
bolivars
46,829,877
14,571,656
22,219,115
36,211,367
4,089,040
8,605,247
2010 Vs. 2009
Increase/
(Decrease)
bolivars %
26,308,152
7,547,638
15,790,383
19,519,209
3,633,490
(61,726)
49.6
53.7
58.2
45.6
74.5
(0.6)
2010 Vs. 2008
Increase/
(Decrease)
bolivars %
32,553,085
7,020,074
20,708,991
26,155,546
4,424,260
1,032,949
1 Dollar figures in US$ are given for reference purposes only; the balance sheet is converted at the exchange rate at the end of the period (Bs 4.2893/US$1 versus Bs 2.1446/US$1 at December 31, 2009). Exchange
control has been in place in Venezuela since February 2003.
69.5
48.2
93.2
72.2
108.2
12.0