ANNUAL REPORT 2010

Mercantil Banco Universal, Consolidated
Year Ended
(In thousands of Bs and millons of US$)
Total Assets
Investments in Securities
Loan Portfolio, Net
Deposits
Equity
Net Earnings for the Year
Historic figures presented in accordance with the National Securities Superintendency.
(1) Dollar figures are given for reference purposes only; the balance sheet is converted at the exchange rate at the end of the period (Bs 4.2893/US$) and
the income statement at the average exchange rate for the period (Bs 3.5827/US$). Exchange control has been in place in Venezuela since February 2003.
76
2010
US$ (1)
10,788
1,717
6,226
9,391
1,069
380
Mercantil Commercebank Florida BanCorp
At December 31, 2010 Mercantil Commercebank Florida Bancorp registered US$ 6,487 million
in total assets, a year-on-year increase of 8.1%. The investment portfolio totaled US$ 2,306
million, similar to the figure at the close of December 2009. This is made up of instruments
issued by the U.S. government or U.S. government-backed agencies, securities issued by the
private sector and securities issued by the Venezuelan government, which account for 88.4%,
10.8% and 0.8%, respectively. Net loans registered 13.8% year-on-year growth to US$ 3,697
million. Total deposits at December 31, 2010 were US$ 4,715 million, representing 7.2% growth
over the same period.
The net results of Mercantil Commercebank Florida BanCorp improved significantly compared
to 2009; the net negative result fell from US$ 31 to US$ 4 million in 2010. The net result of its
main subsidiary Mercantil Commercebank, N.A. was US$ 1 million in 2010, compared to a net
negative result of US$ 25.7 million in 2009. This improvement is mainly due to a US$ 59 million
(45.0%), reduction in loan provisions compared to US$ 132 million in 2009. Nonperforming
loans were down US$ 100 million (22.8%) in 2010. The past due loans ratio improved from 12.7%
at the end of 2009 to 8.3% at the end of 2010, despite a reduction in the value of collateral on
a segment of the loan portfolio which exceeded management’s estimates. Net interest income
was down by US$ 16.7 million due to low interest rates and a US$ 14 million increase in tax
expenditure.
Mercantil Commercebank, N.A.’s main capital adequacy indicators are an equity/assets ratio
of 9.3% and an equity/risk-weighted assets ratio of 18.1% in line with the standards of the Office
of Comptroller of the Currency (OCC). This is more than double the regulatory equity required
for a bank to be considered well-capitalized.
Annual Report 2010
2010
bolivars
46,270,966
7,363,976
26,703,385
40,279,612
4,583,203
1,360,622
2009
bolivars
36,609,791
5,956,675
20,287,426
32,013,443
3,299,517
722,035
2008
bolivars
30,181,479
6,220,556
15,338,403
24,804,865
2,708,877
820,956