GOLDSCHMIDT, Gertrud (GEGO) Sin título • 1968 • Ink on paper • 38 x 33 cm
* All figures stated in US$ are converted at the official exchange rate of Bs. 2,144.60 per US$ 1. Caracas, March 3, 2008 Dear Shareholders: We are pleased to submit the consolidated results and principal activities of <strong>Mercantil</strong>, C.A. <strong>Banco</strong> Universal for the second semester of 2007 and also for the whole year. The financial statements of <strong>Mercantil</strong>, C.A. <strong>Banco</strong> Universal included in this report consolidate the activities of its subsidiaries, including its branch and agency abroad. They were prepared in accordance with the standards of the Superintendency of Banks and Other Financial Institutions and have been examined by the Bank’s external auditors, Espiñeira, Sheldon y Asociados, whose separate report can be found in the inside back cover of this report. They are also included as supplemental information, in keeping with the accounting standards generally accepted in Venezuela. Financial Results Board of Directors Report <strong>Mercantil</strong>, C.A. <strong>Banco</strong> Universal reported net income of Bs. 534,952 million (US$ 249.44 million*) in 2007, of which Bs. 224,067 million correspond to the first semester and Bs. 310,885 million to the second. Total assets increased 35.3% in 2007, from Bs. 16,997,775 million (US$ 7,926 million) in December 2006 to Bs. 22,997,523 million (US$ 10,723 million) and equity was up 37.7% from Bs. 1,518,642 million (US$ 708 million) to Bs. 2,091,272 million (US$ 975 million) during the same period. (US$ 2,360 million). The loan portfolio grew 44.4% to Bs. 12,432,519 million (US$ 5,797 million), compared with Bs. 8,609,434 million (US$ 4,015 million) at the close of 2006. Loan portfolio quality remains satisfactory. For the Venezuelan operation the ratio of past-due and non-performing loans to gross loans is 0.5%, compared to 1.2% for the Venezuelan financial system as a whole. The consolidated coverage rate was 389.2% compared with 366% at the end of 2006. The equity/risk-weighted assets ratio was 14.0%, and the equity/total assets ratio 9.6% (minimum regulatory requirements 12% and 8% respectively). M e r c a n t i l B a n c o U n i v e r s a l 7
- Page 3 and 4: Banco Universal CONTENTS Financial
- Page 5 and 6: Earnings Consolidated (In millons,
- Page 7: Notice of Ordinary General Sharehol
- Page 11 and 12: To assert the value of the Mercanti
- Page 13 and 14: The Capital and Financial account d
- Page 15 and 16: Fondonorma approved the ISO 90001:2
- Page 17 and 18: Working Environment For the third y
- Page 19 and 20: Statutory Auditors’ Report To the
- Page 21 and 22: Financial Statements (Pursuant to t
- Page 23 and 24: GOLDSCHMIDT, Gertrud (GEGO) Esfera
- Page 25 and 26: Economic Climate Summary of Economi
- Page 27 and 28: Management Discussion and Analysis
- Page 29 and 30: Gross Loan Classified by Status (In
- Page 31 and 32: Other Income, net Other Income, net
- Page 33 and 34: GOLDSCHMIDT, Gertrud (GEGO) Chorro
- Page 35 and 36: Loan Portfolio Management Report by
- Page 37 and 38: The volume of foreign exchange auth
- Page 39 and 40: Corporate and Invesment Banking Loa
- Page 41 and 42: Corporate Finance and Capital Marke
- Page 43 and 44: Excess over reserve requirement + C
- Page 45 and 46: Service Quality and Operating Effic
- Page 47 and 48: Operational excellence in the Merca
- Page 49 and 50: Considerable headway has been achie
- Page 51 and 52: GOLDSCHMIDT, Gertrud (GEGO) Sin tí
- Page 53 and 54: Human Resources Human Resources con
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- Page 57 and 58: Risk Management Good risk managemen
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For 2007, credit risk exposures by
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Market Risk Market risk appears in
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Loss-risk distribution by category
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Mercantil Banco Universal National
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Mercantil’s Social Contributions
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Quality of Life and Environment Don
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Prevention and Control of Money Lau
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Corporate Governance Mercantil Banc
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Board of Directors Compensation Com
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Internal Auditor In accordance with
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Awards and Acknowledgements M e r c
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Jonathan Coles Assistant Professor
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Federico Vollmer Acedo Vice Preside
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Agency and Branch CORAL GABLES AGEN
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GEGO Hamburg, 1912 - Caracas, 1994