Untitled - Banco Mercantil
Untitled - Banco Mercantil
Untitled - Banco Mercantil
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For 2007, credit risk exposures by country account for 97.79% of the portfolio in Venezuela and<br />
the rest in other countries, without any significant variation over the previous year.<br />
The risk exposure by type of client increased in the Personal and Other companies segment. In<br />
the first case the share increased 7.7%, from 10.6% in 2006 to 18.3% in 2007, mainly due to<br />
consumer credit products (credit cards for vehicle purchase). The share of Other Companies<br />
(small and mid-size companies) increased 3.1%, from 17.2% in 2006 to 20.3% in 2007.<br />
It is important to point out that the rise in consumer credits was adjusted to the methodologies<br />
implemented during the previous year, allowing the credit card and vehicle loan portfolios to<br />
grow in accordance with the risk-adjusted profitability levels for this type of product.<br />
By contrast with the above, the share of the Government and Corporate segments declined. The<br />
Venezuelan Government’s share was 8.0%, 4.6% less compared to 12.6% in 2006, and the<br />
Corporate segment was down 4.2% to 12.1% versus 15.0% in 2006 due to less demand for credit.<br />
The BCV poses the highest exposure in the portfolio in accordance with the institution’s strategy<br />
to maintain adequate levels of liquidity and it covers the availabilities held in this institution,<br />
including the legal reserve.<br />
The participation of the rest of the clients in the overall portfolio did not vary significantly.<br />
The distribution of <strong>Mercantil</strong> <strong>Banco</strong> Universal’s loan portfolio by clients’ Economic Activity is<br />
shown below:<br />
Distribution of the consolidated <strong>Mercantil</strong> Loan Portfolio by Economic Activity<br />
ELECTRICITY, GAS AND WATER<br />
MINING EXPLOITATION AND HYDROCARBONS<br />
TRANSPORTATION, WAREHOUSING, TELECOMMUNICATIONS<br />
SOCIAL AND PERSONAL COMMUNITY SERVICES<br />
NON SPECIFIED ACTIVITIES<br />
MANUFACTURING INDUSTRIES<br />
CONSTRUCTION<br />
AGRICULTURE, FISHING AND FORESTRY<br />
TRADE, RESTAURANTS AND HOTELS<br />
FINANCIAL INSTITUTIONS AND INSURANCE<br />
0.05%<br />
0.78%<br />
0.83%<br />
1.53%<br />
3.22%<br />
10.13%<br />
11.36%<br />
14.92%<br />
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%<br />
25.25%<br />
31.94%<br />
M e r c a n t i l B a n c o U n i v e r s a l<br />
57
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