Untitled - Banco Mercantil

Statutory Auditors’ Report
To the
Shareholders of
Mercantil, C.A. Banco Universal
Dear Shareholders,
Caracas, February 25, 2008
In our capacity as Statutory Auditors of this Company, and in conformity with the provisions of Articles
287 and 311 of the Commercial Code, we are pleased to inform you that we have examined the
consolidated balance sheet of Mercantil, C.A. Banco Universal and its subsidiaries (formerly Banco
Mercantil (Banco Universal) as of December 31, 2007 and the related consolidated income statements
and statement of shareholders’ equity and cash flows for the period then ended. The preparation of
these financial statements and their notes is Management’s responsibility. Our responsibility is to
express an opinion on these financial statements based on our audits.
Our examination was conducted in accordance with generally accepted auditing standards and
therefore included selective tests of the accounting records and other audit procedures we deemed
necessary in the circumstances. We have also taken into account the Report of external auditors
Espiñeira, Sheldon y Asociados for the same period, which should be treated as an integral part of this
report, with whose content we agree, and which we attach hereto.
Based on our analysis, we take the liberty of pointing out that the Bank maintains adequate controls
over its loan and investment portfolios which are subject to ongoing analysis and monitoring so that
the appropriate provisions can be created. The Bank likewise maintains the provisions prescribed in its
Bylaws and declares and pays the dividends to which it is obligated under its Bylaws and the Law.
Furthermore, the Bank’s internal accounting controls and policies justify our view that there is no
current or potential risk of conditions that are likely to weaken its financial position.
In our opinion, the aforementioned consolidated financial statements present fairly the financial
position of Mercantil, C.A. Banco Universal and its subsidiaries at December 31, 2007 and the results
of their operations and cash flows for the period then ended, in conformity with the standards of the
Superintendency of Banks and Other Financial Institutions which are compulsory for the national
financial system. The Bank presents as supplemental information, financial statements prepared in
accordance with the generally accepted accounting standards of the Federation of Venezuelan Public
Accounting Associations.
Yours sincerely,
Eduardo Elvira Francisco Torres Pantin
Statutory Auditor Statutory Auditor
Encl. Report of Espiñeira, Sheldon y Asociados.
M e r c a n t i l B a n c o U n i v e r s a l
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