MBU Informe Anual 2009 Ingles24may10:maquetaci..n 1

* Dollar figures are given for reference purposes only and are
converted at the exchange rate of Bs. 2.1446/1US$. Exchange control
has been in place in Venezuela since February 2003.
Board of Directors’
Report
Caracas, February 25, 2010
Dear Shareholders,
We are pleased to submit for your consideration Mercantil Banco Universal’s consolidated
results and main activities for the second half of 2009 and also for the whole year.
The financial statements of Mercantil, C.A., Banco Universal included in this report
consolidate the activities of its branch and agency abroad and its subsidiaries. They were
prepared in accordance with the standards of the Superintendency of Banks and Other
Financial Institutions. They have been examined by the Company’s external auditors Espiñeira,
Sheldon y Asociados, whose report is attached hereto. The financial statements are also
included as supplemental information in accordance with the accounting standards generally
accepted in Venezuela.
Financial Results
Mercantil C.A. Banco Universal reported net income of Bs 722 million (US$ 337 million*), of
which Bs 333 million correspond to the first half of the year and Bs 389 million to the second.
This is 12.0% less than the Bs 821 million posted in 2008, largely explained by the impact of
lending rates on net interest income, considering the compulsory loan portfolio quotas whose
rates are also subject to regulatory maximums.
Assets at year end registered 21.3% growth to Bs 36,610 million (US$ 17,071 million*), compared
with Bs 30,181 million (US$ 14,073 million*) at December 31, 2008, while Shareholders’ Equity
increased 21.8% from Bs 2,709 (US$ 1,263 million*) to Bs 3,300 million (US$ 1,539 million*)
over the same period. Government deposits increased Bs 7,209 million (US$ 3,361 million*),
a year-on-year increase of 29.1%.
The equity/risk-weighted assets ratio was 17.0%, and the solvency ratio, which is the ratio of
equity/assets minus public debt securities, was 10.2% (regulatory minimums 12% and 8%
respectively).
The efficiency ratio, which is measured by calculating operating expenses as a percentage of
average assets, was 5.0%, compared to 5.5% in 2008; while the efficiency ratio, measured by
calculating operating expenses as a percentage of total income was 51.5%, compared to 49.7%
in 2008.
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Mercantil Banco Universal