Annualreport

AnnualReport 

2011

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Mercantil Servicios Financieros 

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AnnualReport 

2 0 1 1 

CONTENTS 

Mercantil’s Stock Performance 4 

Financial Highligths 5 

Board of Directors and Administration 6 

Notice of Ordinary General Shareholders’ Meeting 7 

Board of Directors’ Report 9 

Statutory Auditors’ Report 21 

Financial Statements 23 

Economic Climate 29 

Strategic Positioning 33 

Management Discussion and Analisys 35 

Business Management Report 49 

Quality of Service and Operating Efficiency 65 

Human Resources 69 

Risk Management 71 

Performance of Subsidiaries 79 

Credit Ratings 87 

Prevention and Control of Money Laudering 

and Terrorist Financing (ML/TF) 89 

Internal Auditing 91 

Social Commitment 95 

Corporate Governance 99 

Report of the Board of Directors on 

Compliance with Corporate Governance 107 

Awards and Acknowledgements 108 

Management 111 

Subsidiaries and 

Corporate Contacs 119

Fernando Irazábal 

Untitled, 1959 

Mixed media on paper 

52.1 x 62.8 cm

Mercantil is Venezuela’s in equity leading financial services provider with an equity base of 

Bs 10,977 million (US$ 2,560 million). It operates in 10 countries in the Americas, Europe and 

Asia. Its shares are listed on the Caracas Stock Exchange (MVZ.A and MVZ.B) and are traded 

in the over-the-counter market (OTC) in the United States of America through a Level 1 ADR 

program (MSFZY and MSFJY). 

The mission of Mercantil Servicios Financieros is "to fulfill the needs of the individuals and 

communities where Mercantil has presence by providing excellent financial products and services 

in various market segments, enhancing shareholder’s value by efficiently using our available resources." 

Mercantil Banco Universal, founded 86 years ago (1925), is Mercantil’s main subsidiary in 

Venezuela. At December 31, 2011, it has a national network of 271 branches; one agency in 

Coral Gables, Florida, USA; a branch in Curaçao and representative offices in Bogota, Lima, 

Mexico City, Sao Paulo and New York; Mercantil Commercebank, N.A. in the USA has 15 

offices in Florida, a branch in New York, and one in Houston; Mercantil Bank (Schweiz) AG in 

Switzerland; Mercantil Bank Curaçao N.V. in Curaçao, Mercantil Bank (Panama) in Panama; 

Mercantil Bank and Trust, Limited (Cayman) in the Cayman Islands; and in Venezuela, 

Mercantil Merinvest, C.A.; and Mercantil Seguros with 33 offices serving the public, and 

Mercantil Inversiones y Valores, a holding for other minority investments. 

Since its foundation, Mercantil has played an active role in the development of the different 

markets where it operates by financing trade, agriculture and industry. It consistently 

demonstrates its social commitment by helping different sectors of the community in 

Venezuela through Fundación Mercantil; and in South Florida, USA, through its subsidiary 

Mercantil Commercebank, N.A. 

3 Mercantil Servicios Financieros

Earnings per share (1) 

"Caracas Stock Exchange: MVZ A & MVZ B 

Level 1 ADR: MSFZY y MSFJY" 

Year Ended 

Closing Price 

Class A share 

Class B share 

Market price/ Earnings per share (1) 

Class A share 

Class B share 

Book value per share (2) 

Market price / book value (2) 

Class A share 

Class B share 

Number of outstanding shares 

Class A share 

Class B share 

Daily Average Traded Volume (Shares) 

Class A share 

Class B share 

Paid Dividends 

In stock (new shares for each share held) 

In cash (Bs per share) 

Cash dividends for the year / Market price (%) 

Class A share 

Class B share 

Mercantil’s 

Stock Performance 

4 Annual Report 2011 

2011 

US$ (3) 

5.80 

8.88 

8.91 

25.02 

0,70 

2011 

bolivars 

24.89 

38.10 

38.20 

1.5 

1.5 

107.38 

0.4 

0.4 

59,405,780 

42,818,328 

9,544 

4,319 

- 

3.00 

7.9 

7.9 

2010 

bolivars 

21.82 

29.50 

29.50 

Market Quote for Mercantil Class A and B Shares 

vs. Caracas Stock Exchange (CSE) Index 

1.4 

1.4 

83.17 

0.4 

0.4 

59,496,176 

42,860,312 

9,159 

5,899 

- 

1.50 

5.1 

5.1 

2009 

bolivars 

7.95 

18.50 

18.50 

2.3 

2.3 

47.50 

0.4 

0.4 

59,733,553 

42,992,256 

26,289 

32,049 

- 

1.36 

7.4 

7.4 

2008 

bolivars 

9.53 

17.53 

17.53 

1.8 

1.8 

39.56 

0.4 

0.4 

60,092,098 

43,275,460 

(1) Calculated based on weighted average shares issued minus repurchased shares adjusted by stock dividends. 

(2) Calculated based on outstanding shares issued minus repurchased shares adjusted by stock dividends. 

(3) Dollar figures are given as reference only and are converted at the controlled exchange rate at the end of the period (Bs 4.2893/US$ 1), except for earnings per share which are converted at the average 

exchange rate (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

(1) No significant stock exchange activities at this time. 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Dec. 99 

Jun. 00 

Dec. 00 

Jun. 01 

Dec. 01 

Jun. 02 

(1) 

Dec. 02 

Jun. 03 

Dec. 03 

Jun. 04 

Dec. 04 

Jun. 05 

Dec. 05 

Jun. 06 

Dec. 06 

Jun. 07 

Dec. 07 

Jun. 08 

Dec. 08 

Jun. 09 

Dec. 09 

Jun. 10 

Dec. 10 

Jun. 11 

Dec. 11 

16,095 

6,476 

- 

1.02 

5.8 

5.8 

Price MVZ/A 

Adjusted CSEI 

Price MVZ/B 

2007 

bolivars 

7.96 

31.00 

33.00 

3.9 

4.1 

32.77 

0.9 

1.0 

60,335,793 

43,645,654 

43,299 

6,792 

2 for each 5 

0.78 

2.5 

2.4

Financial Highligths 

Earnings Consolidated 

(In thousands of Bs and millons of US$, except percentages and Other Indicators) 

Year Ended 

Balance Sheet (1) 

Total Assets 

Loan Portfolio (Net) 

Deposits 

Shareholders’ Equity 

Income Statement (2) 

Net Interest Income 

Commissions and Other Income 

Operating Expenses 

Net Income 

Profitability Indicators (%) 

Net Interest Income / Average Financial Assets (NIM) 

Commissions and Other Income / Total Income 

Net Earnings for the Year / Average Equity (ROE) 

Net Earnings for the Year / Average Assets (ROA) 

Capital Adequacy Indicators (%) 

Equity / Risk-Weighted Assets (regulatory minimum 8%) (3) 

Equity / Risk-Weighted Assets (BIS) (4) 

Equity / Assets 

Loan Portfolio Quality Indicators (%) 

Past-Due and Non-Performing Loans / Gross Loan Portfolio 

Allowances for Loan Losses / Past-Due + Non-Performing Loans 

Allowances for Loan Losses / Gross Loan Portfolio 

Efficiency Indicators (%) 

Operating Expenses / Average Total Assets 

Operating Expenses / Total Income 

Liquidity Indicators (%) 

Cash and Due from Banks / Deposits 

Cash and Due from Banks and Investment Portfolio / Deposits 

Other Indicators (%) 

Gross Loans / Deposits 

Financial Assets / Total Assets 

Financial Assets / Deposits 

Number of Employees 

Employees in Venezuela 

Employees Abroad 

Banking Distribution Network 

Branches in Venezuela (5) 

Branches Abroad 

Representative Offices 

Automatic Teller Machines (ATM) 

Point of Sale Terminals (POS) (6) 

2011 

US$ (1) 

23,943 

14,075 

19,078 

2,560 

1,067 

643 

1,268 

576 

5 Mercantil Servicios Financieros 

2011 

bolivars 

102,696,327 

60,371,801 

81,834,145 

10,977,160 

4,581,383 

2,762,903 

5,440,219 

2,472,168 

7.8% 

38.1% 

26.7% 

2.8% 

18.7% 

18.7% 

10.7% 

1.7% 

199.6% 

3.4% 

5.3% 

50.6% 

16.7% 

47.3% 

76.4% 

84.2% 

105.7% 

8,533 

848 

304 

24 

5 

1,334 

42,720 

2010 

bolivars 

79,382,962 

42,928,106 

62,366,913 

8,513,300 

2,810,196 

3,229,233 

3,950,853 

2,176,313 

7.1% 

49.2% 

31.8% 

3.2% 

20.4% 

20.4% 

10.7% 

2.9% 

110.8% 

3.2% 

5.2% 

46.7% 

19.0% 

53.6% 

71.1% 

81.5% 

103.7% 

8,206 

828 

306 

22 

6 

1,344 

40,427 

2009 

bolivars 

53,074,810 

27,137,723 

42,847,704 

4,879,810 

2,019,894 

1,380,584 

2,833,762 

795,692 

7.3% 

37.8% 

17.8% 

1.6% 

18.3% 

18.3% 

9.2% 

3.3% 

96.5% 

3.2% 

5.4% 

58.4% 

22.1% 

54.9% 

65.4% 

78.1% 

96.7% 

8,961 

872 

329 

21 

6 

1,379 

41,027 

2008 

bolivars 

46,829,877 

22,219,115 

36,211,367 

4,089,040 

2,202,576 

1,211,818 

2,545,578 

958,987 

7.9% 

35.7% 

24.9% 

2.2% 

18.5% 

18.5% 

8.7% 

2.5% 

110.6% 

2.7% 

5.6% 

57.7% 

21.4% 

61.6% 

63.1% 

79.4% 

102.6% 

(1) Figures in US$ converted at the exchange rate at the close of December 31, 2011: Bs 4.2893/US$ 1 (controlled). 

(2) Figures in US$ converted at the average exchange rate for the period: Bs 4.2893/US$ 1. 

(3) In accordance with the standards of the National Securities Superintendency (SNV - for its abbreviation in spanish). 

(4) Calculated using Consolidated Financial Statements adjusted for inflation up to 1999, in accordance with International Accounting Standard Nº 29 (IAS-29) and following the standards of the Basel 

Committee on Banking Supervision of the Bank for International Settlements. 

(5) Excludes internal branch for employees. 

(6) Physical Points of Sale (POS). 

9,215 

965 

356 

20 

6 

1,435 

37,655 

2007 

bolivars 

39,049,552 

19,338,492 

31,287,613 

3,407,614 

1,786,025 

1,021,098 

2,019,535 

783,333 

6.5% 

38.5% 

27.4% 

2.2% 

16.7% 

16.7% 

8.7% 

0.6% 

285.7% 

1.8% 

5.4% 

61.3% 

19.6% 

56.3% 

62.9% 

79.5% 

99.2% 

9,114 

1,018 

351 

20 

6 

1,436 

32,278

Principal Directors 

Alternate Directors 

Note: The Audit, Compesation and Risk Committees were created 

pursuant to provision in the By-laws and in accordance 

with a resolution by the Board of directors. These commitees 

are made up of independent Directors and are attended by the 

President and the Executive President (ex-officio). 

Board of Directors 

Secretary 

Alternate 

Secretary 

Principal 

Statutory Auditor 

Alternate 

Statutory Auditor 

Legal 

Counsel 

Alternate 

Legal Counsel 

Gustavo Vollmer A. 

President 

Alejandro González Sosa 

Executive President 

Gustavo A. Marturet M. 3 

Gustavo J. Vollmer H. 2 

Alfredo Travieso P. 2 

Luis A. Romero M. 1 

Víctor J. Sierra A. 2 

Jonathan Coles W. 1 

Roberto Vainrub A. 3 

Miguel A. Capriles L. 3 

Luis A. Sanabria U. 2 

Oscar A. Machado K. 2 

Eduardo Mier y Terán 1 

Luis Esteban Palacios W. 2 

Gustavo Galdo C. 3 

Germán Sánchez Myles 2 

Luis A. Marturet M. 2 

Carlos Hellmund B. 1 

Gustavo Machado C. 1 

Francisco Monaldi M. 3 

Federico Vollmer A. 3 

Claudio Dolman C. 2 

Carlos Zuloaga T. 3 

Nerio Rosales R. 

Armando Leirós R. 

Miguel A. Capriles C. 1 

Luis Pedro España N. 1 

Alberto Sosa S. 1 

Alexandra Mendoza Valdés 1 

David Brillembourg C. 3 

Guillermo Ponce Trujillo 

Rafael Stern S. 

Francisco De León 

Manuel Martínez Abreu 

Humberto Chirico 

Gladis Gudiño 

Luis Alberto Fernandes 

Paolo Rigio C. 

1 Member of the Audit Committee 

2 Member of the Compensation Committee 

3 Member of the Risk Committee 


Administration 

Gustavo Vollmer A. * 

President 

Alejandro González Sosa * 


Nerio Rosales Rengifo * 

Global Commercial and Personal Banking Manager 

Philip Henríquez S. * 

Global Corporate and Invesment Banking Manager 

Rosa M. de Costantino * 

Global Manager Private Banking 

and Wealth Management 

Alfonso Figueredo D. * 

Global Chief Financial Officer 

Millar Wilson * 

Global international Operations Manager 

Fernando Figueredo M. * 

Global Chief Risk Officer 

Armando Leirós R. * 

Global Operations and Technology Manager 

Luis Alberto Fernandes * 

Global Chief Legal Counsel 

Alberto Benshimol M. * 

Insurance and New Financial Businesses Manager 

Luis Calvo Blesa * 

Global Human Resources 

and Corporate Communications Manager 


Board of Directors Secretary 

Rafael Stern S. 

Alternate Secretary 

Toribio Cabeza León 

Global Audit Manager 

Anahy Espiga 

Global Strategic Planning Manager 

Luis M. Urosa Z.** 

Corporate Compliance 

Maigualida Pereira C. 

Compliance Officer - Prevention of Money Laundering 

and Terrorist Financing 

* Member of the Executive Committee 

** The function focuses on Mercantil Banco 

Universal and Mercantil Merinvest

Notice of Ordinary General 

Shareholders’ meeting 

MERCANTIL SERVICIOS FINANCIEROS, C.A. 

Autorized Capital Bs 306,836,406.00 

Suscribed and Paid-in Capital Bs 153,418,203.00 

Caracas - Venezuela 

Notice of an Ordinary General Shareholders’ Meeting by agreement of the Board of Directors to be held at the Company’s head office, 

Avenida Andrés Bello N° 1, Edificio Mercantil on March 23, 2012 at 4:00 p.m. with the following agenda: 

1. Review the Report submitted by the Board of Directors and the Company’s Audited Financial Statements at December 31, 2011, subject to 

consideration of the Statutory Auditors’ Report. 

2. Present the Board of Directors Report on the Level of Compliance with the Principles of Corporate Governance contained in Resolution 

N° 19-1-2005 of the National Securities Superintendency (SNV) dated February 2, 2005. 

3. Appoint the Board Members and their Alternates in keeping with the Company Bylaws and establish the fees of all the members of the 

Board of Directors. 

4. Appoint the Statutory Auditors and their Alternates and establish their fees. 

5. Consider the “Proposal for the Twenty-fifth Phase of the Company’s Stock Repurchase Program presented by the Board of Directors of 

Mercantil Servicios Financieros, C.A. to the Ordinary General Shareholders’ Meeting, for consideration on March 23, 2012.” 

6. Consider the “Proposal to declare the dividends of Mercantil Servicios Financieros, C.A. for 2012, presented by the Board of Directors to 

the Ordinary General Shareholders’ Meeting for consideration on March 23, 2012.” 

N.B. The shareholders are hereby informed that: 1) The Balance Sheet, Income Statement, Statement of Shareholders’ Equity and Statement 

of Cash Flow for the period ended December 31, 2011, duly examined by the external auditors Espiñeira, Sheldon y Asociados; the 

Statutory Auditors’ Report and the Board of Directors’ Report; 2) The Report presented by the Board of Directors on the Level of 

Compliance with the Principles of Corporate Governance; and 3) The Proposal for the Twenty-fifth Phase of the Company’s Stock 

Repurchase Program submitted by the Board of Directors of Mercantil Servicios Financieros, C.A. for consideration by the General 

Shareholders’ Meeting on March 23, 2012, will be available for review 15 days in advance of the Meeting, at the office of the Secretary 

of the Board of Directors of the Company, Avenida Andrés Bello N° 1, Edificio Mercantil, piso 35, Caracas. The Proposal to declare 

Mercantil Servicios Financieros, C.A.'s dividends for 2012, submitted by the Board of Directors to the Ordinary General Shareholders’ 

Meeting for consideration on March 23, 2012, is available for review at the Company Secretary’s Office, Avenida Andrés Bello N° 1, 

Edificio Mercantil, piso 35, Caracas. In keeping with the provisions of the Company Bylaws, the Shareholders are hereby informed that 

ownership of each group of Common Class A shares representing at least twenty per cent (20%) of the capital subscribed by those 

shares affords the right to nominate and appoint one Director and the corresponding Alternates. 

Caracas, February 16, 2012 

On behalf of Mercantil Servicios Financieros, C.A. 


Secretary of the Board of Directors 


Humberto Jaimes Sánchez 

Personaje mural, 1958 

Oil on cardboard 

45 x 32.5 cm

* Dollar figures are given for reference only. The balance sheet 

is converted at the exchange rate at the end of the period 

(Bs 4.2893/US$ 1) and the income statement at the average 

exchange rate for the period (Bs 4.2893/US$ 1). Exchange 

control has been in place in Venezuela since February 2003. 

Board of 

Directors’ Report 

Caracas, February 16, 2012 

Dear Shareholders, 

We are pleased to submit Mercantil Servicios Financieros’ consolidated results and main 

activities for the second half of 2011 as well as for the whole year. 

The Financial Statements of Mercantil Servicios Financieros included in this report consolidate 

the activities of its subsidiaries and were prepared in accordance with the standards of the 

National Securities Superintendency. They are also presented in inflation-adjusted values as 

supplemental information. They have been examined by the Company’s external auditors 

Espiñeira, Sheldon y Asociados, whose report is attached hereto. 

Financial Results 

Mercantil reported Bs 2,472 million (US$ 576 million*) in net income, of which Bs 790 million 

corresponds to the first half of the year and Bs 1,682 million to the second. The main 

contributors to these profits were Mercantil C.A., Banco Universal with Bs 1,804 million; 

Mercantil Seguros, C.A. with Bs 476 million; Mercantil Commercebank Florida Bancorp with 

Bs 85 million; Mercantil Merinvest, C.A. with Bs 12 million; and Mercantil itself plus other 

subsidiaries with Bs 95 million. 

Mercantil Commercebank N.A. registered US$ 11.2 million in semi-annual earnings and US$ 16.2 

million in annual earnings, after loan portfolio provisions of US$ 21.9 million for the second of 

the half year and US$ 49.8 million for the year, in keeping with Mercantil's policies on the 

matter, to guarantee adequate reserves. This result is reflected in that of its shareholder 

Mercantil Florida Bancorp as indicated above and reflects a sustained improvement in the 

Bank's performance. Mercantil Commercebank, N.A. is positioned as one of Florida’s five 

largest banks. 

It should be noted that in accordance with the provisions regulating banking activity, the 

Mercantil Banco Universal subsidiary has made various contributions to government agencies 

totaling Bs 1,062 million and accounting for 25.5 % of the Bank's expenses. These, combined 

with Corporate Income Tax, amount to Bs 1,201 million and represent 28.8 % of its expenses 

in that area. 


Mercantil Servicios Financieros’ Total Assets grew 29.4 % to Bs. 102,696 million (US$ 23,943 

million*) compared to December 2010 and Shareholders’ Equity increased 28.9 % to Bs 10,977 

million (US$ 2,560 million*) over the same period. 

The net loan portfolio grew 40.6 % to Bs 60,372 million (US$ 14,075 million*) compared with 

Bs 42,928 million at the close of 2010. Loan portfolio quality remained at adequate levels. 

The ratio of past-due and nonperforming loans to gross loans was 1.7 %, considering the 

overall loan portfolio of Mercantil Servicios Financieros, which consolidates the portfolios of 

Mercantil, C.A., Banco Universal, Mercantil Commercebank Florida Bancorp, Mercantil Bank 

(Schweiz) AG, Mercantil Bank (Curaçao) N.V. and Mercantil Bank (Panama), S.A. This ratio 

was 2.9 % at the close of 2010. The ratio of Allowances for Loan Losses over Past Due and 

Non-performing Loans was 199.6%, compared with 110.8% at the close of 2010. 

The efficiency ratio measured by calculating operating expenses as a percentage of average 

assets, was 5.3 %, compared to 5.2 % in 2010; while the efficiency ratio, measured by 

calculating operating expenses as a percentage of total net income was 50.6 %, compared to 

46.7 % in 2010. 

The Equity/Risk-Weighted Assets ratio was 18.7% (regulatory minimum 8%). This ratio was 

20.4 % in 2010. It is determined according to the guidelines of the National Securities 

Superintendency (SNV - for its abbreviation in Spanish) which are based on the standards of 

the Basel Committee on Banking Supervision of the Bank for International Settlements. 

Net income per share in 2011 was Bs 24.89 (US$ 5.80*). This was 14.1 % higher than the Bs 21.82 

obtained in 2010. 

As decided by Mercantil Servicios Financieros' Ordinary General Shareholder's Meeting held 

on March 31, 2011, during the second half of the year the second portion of the ordinary cash 

dividend of Bs 32,727,256.64 (Bs 0.32 per share) was paid. This amount, in addition to the 

amounts paid out in the first half of the year which corresponded to the first portion of the 

ordinary cash dividend totaling Bs 32,736,197.44 (Bs 0.32 per share) and to the extraordinary 

cash dividend of Bs 241,508,969.24 (Bs 2.36 per share), totaled Bs 306,972,423.32; this 

represents a 100% increase compared with the dividend for 2010. 

Mercantil has no outstanding commercial paper or unsecured bonds at the close of 2011. To 

date the National Superintendency of Securities (SUNAVAL) has authorized the 2010-I Bearer 

Commercial Paper program for Bs 200 million and the 2010-I Unsecured Bearer Bond 

program for Bs 90 million. 

10 Annual Report 2011

The Stock Repurchase Program initiated in May 2000 is currently in its Twenty-fourth Phase 

and was approved at the September 23, 2011 Shareholders’ Meeting. Between July 1 and 

December 31, 2011 a total of 56,397 shares constituting treasury stock were acquired through 

the Program, of which 44,255 are common Class A shares and 12,142 common Class B shares. 

At its August 25, 2011 meeting, the Board of Directors, as authorized by the General 

Shareholders' Meeting which approved the execution of the Stock Repurchase Program and 

pursuant to the provisions of the Securities Market Law, agreed to redeem 658,438 shares of 

which 397,187 are Common Class A shares and 261,251 are Common Class B shares, thereby 

reducing the capital stock by Bs 987,657, this reduction was verified on December 29, 2011, at 

the end of the term established in Article 222 of the Code of Commerce. 

Credit Ratings 

Fitch Ratings, in its annual review conducted in February 2012, ratified the A1 national risk 

rating for commercial paper issues and the A2 rating for unsecured bonds, the highest a debt 

instrument in Venezuela can obtain. It also ratified Mercantil Servicios Financieros' long-term 

national rating at AA(ven) and its short-term rating at F-1+(ven). 

Fitch’s most recent (February 2012) long-term national rating for Mercantil, C.A., Banco 

Universal was AA+(ven) and its short-term rating F-1+(ven); its international ratings were B+ 

long term and B short term, with a b+ Feasibility rating. These are the best ratings obtained 

by a private financial institution in Venezuela. The international ratings are largely subject to 

Venezuela’s country risk. 

The international ratings for Mercantil Commercebank Florida Bancorp and Mercantil 

Commercebank N.A. remain at BB for the long term and B for the short term for both 

institutions. These ratings continue to be affected by the weak economic environment in the 

USA, particularly in the state of Florida. However, they reflect financial flexibility as regards 

the institution's ability to meet its commitments. Fitch Ratings highlights “Mercantil 

Commercebank N.A.'s sound liquidity profile, its adequate capitalization ratios and its 

management capacity." 


Economic Climate 

Global 

The performance of the global economy in 2011 was largely conditioned by the European 

periphery's sovereign debt crisis which slowed the eurozone's growth and made asset markets 

extremely volatile. Lower bank credit for families and financial uncertainty have weakened 

spending, even in sounder eurozone economies like Germany. At year end unemployment 

reached 10.3%, with 634,000 jobs lost in the last half of the year. By contrast, the US economy 

registered nearly 2% GDP growth, and unemployment was 8.5% as of December (9.4% the 

year before). The emerging economies have maintained satisfactory economic growth rates, 

although both China and Brazil, the two most important emerging economies, grew but at a 

somewhat slower pace. 

United States 

The positive rate of private consumer spending in the United States improved the Conference 

Board Consumer Confidence Index which registered its highest monthly increase in the last 

15 years (from 40.9 to 56.0 points). Retail sales registered 5.6% year-on-year growth in 

November and the job market accumulated 12 months of net employment earnings and nearly 

2.5 million jobs were recovered in the space of 21 months, although there is still a long way to 

go to recover the 8.7 million jobs lost during the crisis. Real estate market imbalances are 

being corrected, albeit slowly, as sales of used and new homes continue to rise, thereby halting 

the deterioration of the value of one of the most important assets of U.S households, while 

boosting construction and hence jobs and the ensuing demand for basic inputs. 

Latin America 

The region's total GDP grew 4.3% in 2011 (5.9% in 2010) and per capita GDP climbed 3.2% 

(4.8% in 2010). The unemployment rate fell to 6.8% (7.3% in 2010) and real remunerations 

increased in the majority of these countries. Positive performance in real terms continued to 

be based on exports, a high level of international liquidity that triggered led to more than 

US$ 40,000 million in funds being transferred, and the highly significant internal dynamism 

of earnings, spending and credit. Despite weaker exports (down 7% compared to 11.3 % growth 

of imports), a global balance of payments surplus of US$ 104,132 million was achieved, 22% 

more than in 2010. 


Inflation closed at 6.9% (6.5% in 2010), triggered by higher international prices of energy and 

food. 

Fiscal results improved in response to sound domestic growth, making it possible to raise 

fiscal revenue by 0.4% of GDP which, with spending similar to 2010, resulted in a surplus of 

0.3% of GDP (-0.3% in 2010). 

Venezuela 

The Venezuelan economy grew 4% in 2011 (-1.5% in 2010), with non-oil activity (4.3%) proving 

more dynamic than oil activity (0.6%), supported by the high level of external earnings and 

the countercyclical effort of the fiscal policy. Unemployment closed at 6.5%, similar to 2010. 

A total of 104,288 new jobs were created, 49% in the public sector which already accounts 

for almost 20% of total employment. 

Domestic aggregate demand grew 6.6% (-0.5% in 2010), due both to higher public spending 

(6% in 2011 vs 2% in 2010) and private spending (3.7% vs -1.9% in 2010). Investment only 

recovered by 1% (-6.3% in 2010). Imports rose 13.4% (-2.9% in 2010) and exports 5.9% (-12.9% 

in 2010). 

Inflation rose slightly, from 27.2% in 2010 to 27.6% due to the effect of the higher official 

exchange rate, expansion of domestic aggregate demand, higher international food prices 

and restrictions in domestic supply. 

The price of oil averaged US$ 100.7/bbl (US$ 71.6/bbl in 2010) and oil exports closed at 

US$ 89,391 million. With imports at US$ 45,615 million, the balance of trade surplus reached 

US$ 48,281 million, below the sum of the deficits of the balance of income, services and current 

transfers (-US$ 16,283 million) and of the capital and financial account (-US$ 32,566 million), 

plus errors and omissions (-US$ 2,924 million). The balance of payments closed with a deficit 

of US$ 3,988 million (-US$ 8,060 million in 2010) and US$ 28,899 million (8 months of imports) 

in International Reserves held by the Venezuelan Central Bank (BCV). 

The fiscal policy rebounded after a contraction in 2009-2010, with spending rising a nominal 

53%, and 19% in real terms (-8.4% in 2010). This made a significant contribution of 50% to the 

growth of money supply (19% in 2010), an expansion above the inflation observed of 16.3% 

(-6.5% in 2010). Monetary policy grew slightly, bringing the stock of securities issued by the 

BCV down to Bs 9,859 million, 12% lower than in 2010. 

Lending rates were 17.5% (18.2% in 2010) and savings and term deposit rates 12.5% and 14.5% 

respectively, with little variation compared to 2010. The real lending rate averaged -8.7 % in 

2011 (-6.6 % in 2010) and -11% in the case of the real deposit rate (-9.4% in 2010). 


Products and Services 

During 2011, the Mercantil Banco subsidiary continued to offer products and services to fit 

the needs of its clients. There were 3,840,000 clients at the close of the second half of the year 

and 200,000 of these were new additions in 2011. 

The strategy to include the unbanked sector of the population continued. The Mercantil Aliado 

network exceeded 270 established alliances made up of Correspondent Desks and 

Correspondent Trading Points, located within the vicinity of low-income communities in 

Anzoátegui, Cojedes, Carabobo, Falcón, Yaracuy, Mérida, Nueva Esparta, Bolívar and Monagas 

states. Operations and sales of products designed for this segment continued to increase, 

thereby confirming the commitment to serve all segments of the population. 

Mercantil Banco is reaffirmed as the pioneering bank in the financial system to implement 

chip technology as a security mechanism in its debit and credit cards, ATMs and points of 

sale. During 2011 the Bank concluded the process of incorporating secure chip technology 

into more than 2.7 million debit cards and 1.2 million credit cards, as well as 1,300 ATMs and 

51,200 points of sale nationwide. The adoption of this technology led to a significant reduction 

in the rate of fraud due to cloning. 

The strategy to encourage the use of Mercantil Credit Cards was maintained and the product 

cross-selling initiative continued. 

As of September 2011, the Custody and Mercantil Securities Account options are available on 

line in the Securities section. The Custody option allows clients to display the securities held 

in custody through the Custody Management service with Mercantil Banco (positions and 

transactions) and the Mercantil Securities Account option gives them access to the different 

formulas for carrying out operations with securities through the Mercantil Securities Account: 

Auctions and Secondary Market. 

In November the Bank, setting the pace for mobility, and on its way to becoming the leader 

in the field of mobile banking platforms in Venezuela, launched its Mercantil Móvil application 

for tablets with Android operating systems and for BlackBerry and Android smartphones, 

through which access is provided to a subset of Mercantil Personal Online Banking operations 

and also to Mercantil Banco value-added public information, such as addresses of offices, 

trading desks, allies and Mercantil ATMs, campaign of the month, bank charges and 

commissions, demos and tutorials. 

Also in December the Password Management option was rolled out through Mercantil Call 

Center's Automated System enabling clients to obtain information and/or create or change 

their ATM and telephone banking passwords and unlock their Llave Mercantil Inteligente 

(smart banking cards) quickly and securely without having to go into a branch. 


Mercantil Personal and Commercial Online Banking continued to become consolidated as 

customers’ preferred method. At December 2011 online banking accounted for more than 53% 

of clients' transactions. At the close of the second half of the year the Bank averaged more 

than 906,496 active personal customers and more than 79,586 active commercial clients per 

month, which together carried out more than 260 million semi-annual transactions. 

The maintenance and renewal audit of Mercantil Banco’s ISO 9001:2008 certifications, 

undertaken by FONDONORMA, the Venezuelan Standardization and Quality Certification 

Institute, was highly satisfactory, concluding with zero non-conformities. The certifications of 

the Home Delivery of Checkbooks, Credit Cards and Préstame were renewed and maintenance 

carried out on the following lines of service: Mercantil Call Center (CAM), ATM Network, 

Corporate Client Securities, Employee Benefit Trust Funds, Mercantil On-line, and Teller 

Services at regional head offices and A category offices. 

The Mercantil Seguros subsidiary developed a business strategy designed to decentralize 

operations, make regional offices more autonomous, and expand the physical infrastructure 

of the office network, in order to increase the market share of branches. New branches were 

opened in San Fernando de Apure and San Carlos and the Western Venezuela Regional Office 

in Maracaibo was fully refurbished. 

Products were adjusted to guarantee positive technical results and compliance with the goals 

in terms of earned premiums. The technical notes on the products included in the adjustment 

plan were completed and sent to the Superintendency of Insurance Activity. 

Improvements to the services provided to clients and suppliers for payment of indemnities 

include implementation of the emergency self-management model for private hospitals, 

automatic booking of appointments for automobile services and shorter Mercantil 

Automotive Service attention times. Operations also began at a new mobile service unit in the 

La Trinidad district of Caracas. 

Private Banking and Wealth Management deals with the Private Banking segments and the 

Trust Fund, Mutual Fund and Securities Market businesses in Venezuela, the USA and 

Switzerland. In 2011, Private Banking and Wealth Management focused on improving its 

products and incorporating technological innovations so clients continue to have secure and 

easy access to Wealth Management products. 

The Private Banking segments furthered their commitment towards high net worth 

customers, offering them access to multiple markets and attractive products in order to take 

optimum advantage of the opportunities available in each location and give them a variety of 

investment options. 


In the area of business, during 2011, the Securities Market Unit in Venezuela was 

characterized by the consolidation of the Mercantil Securities Account as the point of 

access to government debt securities through Mercantil, C.A., Banco Universal, with 106% 

affiliation growth during the period. Currently the Mercantil Securities Account serves 

more than 107,460 clients, facilitating their ability to participate in the primary and 

secondary market, and carry out operations through the system of securities transactions 

in foreign currency established by the Venezuelan Central Bank. 

Brokerage and Advisory services in the United States are offered through Mercantil 

Commercebank Investment Services, Inc. (MCIS) a subsidiary of Mercantil Commercebank 

N.A. At the close of 2011, Mercantil Commercebank Investment Services, Inc. (MCIS) 

increased the volume of client assets by 11% and its income from services by 30%. Among 

the achievements during the period was the launch of the Dynamic Portfolio as one of the 

investment advisory services. 

In Venezuela, investment and third-party portfolio management services are conducted 

through Mercantil Servicios de Inversión, after attaining 16.6% portfolio management growth 

during the second half of 2011 and a 25% increase during the year. The Mercantil Sociedad 

Administradora de Entidades de Inversión Colectiva subsidiary, which is responsible for 

management of the Mercantil Fixed Income Portfolio, Fondo Mutual de Inversión de Capital 

Abierto, C.A., remained the industry leader during 2011. 

At the close of 2011, the Mercantil Fixed Income Investment Portfolio attained Bs 748 million 

in equity and a total of 150,584 clients, reflecting 45% asset growth and a 0.1% reduction in 

the customer base. Plan Crecer Mercantil, which is based on the planned acquisition of 

Investment Units registered 18% asset growth and 3.33% increase in the number of clients 

during the second half of the year, reaching 33% total equity growth and a 0.8% reduction 

in the number of clients during the year. 

Trust funds are available to clients in Venezuela through Mercantil C.A., Banco Universal, and 

in the United States through Mercantil Commercebank Trust Company, N.A., a fiduciary bank 

which is regulated and supervised by the Office of the Comptroller of the Currency (OCC). 

During the second half of 2011, Fideicomiso de Mercantil C.A., Banco Universal registered 

8.84% asset growth to Bs 9,365 million. At the close of the year assets had risen 11.2% and 

income from commissions 3.2% compared to 2010. Mercantil Commercebank Trust Company, 

N.A. at the close of December 2011, registered a 1% reduction in consolidated assets under 

management and a 5% increase in its customer base compared to 2010. 

The Mercantil Commercebank subsidiary opened a new office in the Aventura district of 

Miami opposite the Aventura mall. All services are available at the new office, including 

safe deposit boxes, ATMs and a night deposit safe for commercial clients. 


It also launched the Gold and Platinum Credit Cards with variable interest rates for 

international clients, with emergency services anywhere, at any time and in any language, 

the ability to report card loss or theft, emergency replacement and emergency cash advance, 

and information on for locating ATMs. 

Mercantil Commercebank also implemented an automated debit card activation service for 

clients in the USA, accessible through the Call Center to simplify the process. 

Prevention and Control of Money Laundering 

Terrorist Financing 

Prevention and control of money laundering and terrorist financing is a priority for Mercantil 

and part of our organizational culture. The Company has maintained the internal control and 

monitoring standards necessary to ensure early detection of operations that might involve 

these cases in each of the activities of its subsidiaries, and stepped up staff training in this area. 

To ensure compliance with anti-money laundering legislation, Mercantil has a “comprehensive 

Money Laundering and Terrorist Financing Prevention and Control System” in Venezuela and 

at overseas subsidiaries, in addition to Operational and Follow-Up plans, and Monitoring and 

Oversight plans. The Company's “Know your Customer” policy is the main guideline in this 

area. 

Corporate Social Responsibility 

Right from the outset Mercantil has fostered, promoted and supported social development 

programs. One of its corporate values is “to be an integral institution and an important factor 

in the development of the communities and places in which it is involved.” 

The social investment of Mercantil Servicios Financieros in 2011, carried out both through 

Fundación Mercantil, and its subsidiaries, totaled Bs 11.2 million, and addressed directly at 

programs and projects conducted by various social development organizations. 

Mercantil earmarked 52% of the contributions in this area for educational institutions and 

48% for social development, healthcare, religious and cultural institutions. 

Throughout 2011 in Venezuela, Mercantil continued to support Basic Education through the 

"Give your School a Helping Hand” program which has been going strong for 28 years. Through 

a joint effort with the Foundation for Educational Buildings (FEDE - for its abbreviation in 

Spanish), under the Ministry of Education, and with the Fe y Alegria institution, it has helped 

schools in Anzoátegui, Barinas, Delta Amacuro, Monagas and Zulia states. 


Significant contributions were also made to the programs and projects of educational, 

healthcare and social development institutions such as Universidad Católica Andrés Bello, 

Universidad Simón Bolívar, Universidad de Carabobo, Universidad Metropolitana and 

Universidad Central de Venezuela; Sociedad Anticancerosa de Venezuela, Hospital 

Ortopédico Infantil, Hospital de Niños J.M. de los Ríos; Hospital de Especialidades Pediátricas 

del Zulia, the Venezuelan Red Cross, United Nations Children's Development Fund (UNICEF), 

Fundación Nacional El Niño Simón, Centro al Servicio de la Acción Popular (CESAP); 

Asociación Civil Red de Casas Don Bosco, Asociación Civil Huellas and Fundación Camerata 

de Caracas. 

In the United States, as part of the Bank's social commitment, support was also given to a 

series of programs being implemented by various educational and social development 

organizations in South Florida such as the American Anti-Cancer Society, FIU College of 

Business, Fundación Manos del Sur, Our Lady of the Lakes and Marian Center School and 

Service, as well as the Juilliard School in New York and the Museum of Fine Arts in Houston. 

A number of institutions that directly promote the social development of low-income 

communities also received support under the Community Reinvestment Act (CRA) program. 

Acknowledgements 

In its December issue The Banker magazine awarded the Mercantil Banco subsidiary its prize 

for Best Bank in Venezuela in 2011. 

Development and Working Environment 

Once again the prestigious Great Place to Work® Institute which is recognized in more than 

28 countries and three continents, and has experience in the analysis of human resourcesrelated 

topics, was commissioned to assess the working environment and human resources 

management practices among the staff of all Mercantil's subsidiaries in Venezuela and abroad. 

Each year the Institute issues a list of the 10 best companies to work for in each of the 

countries in which it is involved. The results of this work are awaited. 


Special mention should be made of Mercantil’s effort to design and implement ongoing 

training and development programs to allow all the staff to improve their professional level 

and keep their knowledge up to date. 

Relations between bank officials and employees have continued to evolve within the 

traditional spirit of harmony and cooperation and the Board of Directors wishes to 

acknowledge their efficiency and dedication. 

Pursuant to a Resolution passed by the National Securities Commission (CNV), the contents 

of form CNV-FG-010 shows remunerations paid to Company Directors and Executives during 

the second semester amounting to Bs 4,643,212.10. 

During 2011, a number of Alternate Directors attended Board meetings, either standing in for 

Directors in their absence, or as invitees. On the occasion of the President’s and the Executive 

President’s temporary absences, some of the Executive President’s functions were delegated 

to members of the Executive Committee. 

Yours sincerely, 



Gustavo Vollmer Herrera 

Gustavo A. Marturet 

Alfredo Travieso P. 

Luis A. Romero M. 

Jonathan Coles W. 

Víctor J. Sierra A. 

Roberto Vainrub A. 

Miguel Ángel Capriles López 


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Financial Statements 

(In accordance with the standars of the National Securities Superintendency) 

Income Statement 

Unconsolidated 

(in thousands of Bs) 

Year Ended 

Income 

Financial Income 

Equity Investments in Subsidiaries 

Total Income 

Expenses 

Operating 

Financial 

Total Expenses 

Net Income 



Balance Sheet 

Unconsolidated 

(in thousands of Bs) 

Year Ended 

Assets 

Cash and Due from Banks 

Investment Portfolio 

Other Assets 

Total Assets 

Liabilities and Shareholders’ Equity 

Unsecured Bonds and Commercial Papers 

Other Liabilities 

Total Liabilities 


Total Liabilities and Shareholder’s Equity 

2011 

bolivars 

26,638 

2,509,518 

2,536,156 

(54,733) 

(9,255) 

(63,988) 

2,472,168 

Alfonso Figueredo Davis 


2010 

bolivars 

8,848 

2,326,939 

2,335,787 

(115,699) 

(43,775) 

(159,474) 

2,176,313 


2009 

bolivars 

4,018 

967,357 

971,375 

(132,360) 

(43,323) 

(175,683) 

795,692 

Isabel Pérez Sanchis 

Corporate Comptroller 

2011 

bolivars 

65,298 

11,113,256 

(23,280) 

11,155,274 

0 

178,114 

178,114 

10,977,160 

11,155,274 

2010 

bolivars 

56,577 

8,877,607 

(21,678) 

8,912,506 

80,000 

319,206 

399,206 

8,513,300 

8,912,506 


President 

2009 

bolivars 

7,682 

5,229,544 

36,751 

5,273,977 

326,009 

68,158 

394,167 

4,879,810 

5,273,977

Consolidated Balance Sheet 

(In thousands of Bs and millions of US$) 

Year Ended 

Assets 



Central Bank of Venezuela 

Venezuelan Banks and other Financial Institutions 

Foreing Banks and Other Financial Institutions 

Pending Cash Items 

(Allowance for Cash and Due from banks) 

Invesments Portfolio 

Invesments in Trading Securities 

Invesments in Securities Available-for-Sale 

Invesments in Securities Held-to-Maturity 

Share Trading Portfolio 

Invesments in Time Deposits and Placements 

Restricted Investments and Repos 

Financial Direct Assets 

Loan Portfolio 

Current 

Restructured 

Past-Due 

In Litigation 

(Allowance for losses on Loan Portfolio) 

Interest and Commissions Receivable 

Long-Term Investments 

Assets Available for Sale 

Property and Equipment 

Other Assets 

Total Assets 

2011 

US$ (1) 

277 

2,470 

7 

234 

190 

- 

3,178 

68 

4,245 

671 

3 

559 

301 

5,847 


- 

14,182 

140 

134 

113 

14,569 

(494) 

14,075 

148 

45 

17 

162 

471 

23,943 

2011 

bolivars 

1,186,110 

10,594,642 

28,920 

1,004,425 

816,733 

- 

13,630,830 

291,129 

18,210,469 

2,878,553 

13,735 

2,397,303 

1,292,033 

25,083,222 

- 

60,829,744 

599,175 

574,655 

486,320 

62,489,894 

(2,118,093) 

60,371,801 

633,289 

195,376 

73,812 

695,397 

2,012,600 

102,696,327 

2010 

bolivars 

1,050,803 

9,043,256 

5,073 

1,213,412 

512,402 

- 

11,824,946 

232,550 

17,087,370 

623,040 

15,831 

1,941,999 

1,690,940 

21,591,730 

- 

42,384,693 

683,007 

1,011,526 

282,840 

44,362,066 

(1,433,960) 

42,928,106 

482,918 

188,824 

94,879 

689,246 

1,582,313 

79,382,962 

2009 

bolivars 

801,598 

7,673,511 

36,820 

557,517 

410,612 

- 

9,480,058 

71,772 

10,136,710 

456,373 

19,971 

2,029,133 

1,330,133 

14,044,092 

293,880 

27,017,149 

87,870 

854,373 

71,056 

28,030,448 

(892,725) 

27,137,723 

301,846 

153,336 

51,453 

490,039 

1,122,383 

53,074,810 

2008 

bolivars 

692,405 

6,112,488 

31,819 

559,096 

343,301 

(8) 

7,739,101 

56,581 

5,587,336 

641,453 

45,088 

8,113,010 

128,188 

14,571,656 

312,012 

22,229,944 

49,413 

541,868 

24,219 

22,845,444 

(626,329) 

22,219,115 

322,388 

92,556 

25,243 

514,814 

1,032,992 

46,829,877 

2007 

bolivars 

422,006 

5,213,551 

4,238 

110,590 

378,624 

(315) 

6,128,694 

260,393 

5,910,348 

1,096,678 

33,520 

3,995,194 

176,074 

11,472,207 

324,579 

19,545,543 

24,644 

116,978 

7,779 

19,694,944 

(356,452) 

19,338,492 

245,939 

57,318 

22,462 

426,255 

1,033,606 

39,049,552 

(1) Dollar figures are given for reference purposes only and are converted at the exchange rate at the end of the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 








President

Consolidated Balance Sheet 


Year Ended 

Liabilities and Shareholders’ Equity 

Liabilities 

Deposits 

Non-Interest Bearing Checking Accounts 

Interest Bearing Cheking Accounts 

Saving Deposits 

Time Deposits 

Debt Authorized by the 

National Securities Commission 

Publicly Offered 

Debt Securities 

Financial Liabilities 

Obligations with Banks and Savings and Loan Institutions 

In Venezuela up to one year 

In Venezuela for more than one year 

Abroad up to one year 

Abroad for more than one year 

Financial liabilities indexed to Securities 

Liabilities Under Repurchase Agreements 

Other Liabilities up to one year 

Other Liabilities for more than one year 

Interest and Commissions Payable 

Other Liabilities 

Subordinated Debt 

Total Liabilities 

Minority Interest in Consolidated Subsidiaries 

Shareholders’ 

Paid-Up Capital 

Maintenance of Paid-In Capital 

Premium for Issuing Stock 

Capital Reserves 

Adjustment for Conversion of Net Assets 

by Subsidiaries Abroad 

Retained Earnings 

Shares Repurchased and Held by Subsidiaries 

Repurchased shares restricted 

for employees´ stock option plan 

Unrealized Gain from Adjustment at 

Market Value of Investments 

Total Shareholders’ Equity 

Total Liabilities and Shareholders’ Equity 

(1) Dollar figures are given for reference purposes only and are converted at the exchange rate at the end of the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 





2011 

US$ (1) 

5,315 

5,820 

6,391 

1,552 

19,078 


- 

- 

15 

- 

300 

187 

- 

187 

7 

- 

697 

6 

1,490 

111 

21,381 

1 

36 

45 

48 

39 

360 

1,897 

(1) 

(11) 

147 

2,560 

23,943 

2011 

bolivars 

22,797,171 

24,965,178 

27,414,478 

6,657,318 

81,834,145 

- 

- 

65,193 

- 

1,286,790 

803,171 

- 

802,099 

31,042 

2,111 

2,990,406 

25,256 

6,385,717 

478,591 

91,714,115 

5,052 

153,418 

191,709 

203,546 

166,715 

1,545,840 

8,137,241 

(3,514) 

(48,403) 

630,608 

10,977,160 

102,696,327 

2010 

bolivars 

16,222,179 

19,929,002 

20,004,694 

6,211,038 

62,366,913 

67,043 

67,043 

252,874 

140,000 

548,552 

1,296,441 

- 

866,439 

27,201 

2,120 

3,133,627 

29,475 

4,789,814 

478,591 

70,865,463 

4,199 

154,406 

191,709 

203,536 

166,715 

1,550,096 

5,922,273 

(16,182) 

(41,569) 

382,316 

8,513,300 

79,382,962 



2009 

bolivars 

10,398,275 

12,232,187 

13,902,051 

6,315,191 

42,847,704 

312,394 

312,394 

120,319 

- 

456 

432,673 

364,146 

722,730 

22,999 

2,137 

1,665,460 

27,138 

3,094,804 

244,656 

48,192,156 

2,844 

155,976 

191,709 

203,894 

166,715 

280,144 

3,922,188 

(29,319) 

(37,820) 

26,323 

4,879,810 

53,074,810 

2008 

bolivars 

7,789,967 

9,642,957 

11,427,879 

7,350,564 

36,211,367 

173,922 

173,922 

112,502 

- 

2,649 

325,443 

1,870,860 

776,345 

61,256 

2,904 

3,151,959 

37,751 

2,918,561 

244,656 

42,738,216 

2,621 

155,976 

191,709 

201,279 

166,715 

279,497 

3,273,354 

(16,515) 

(32,472) 

(130,503) 

4,089,040 

46,829,877 


President 

2007 

bolivars 

6,644,492 

8,188,269 

8,777,472 

7,677,380 

31,287,613 

356,144 

356,144 

161,279 

72,000 

64,597 

80,081 

588,320 

681,983 

115,049 

3,488 

1,766,797 

47,771 

1,936,796 

244,656 

35,639,777 

2,161 

156,479 

191,709 

201,668 

166,715 

273,672 

2,447,230 

(12,900) 

(29,127) 

12,168 

3,407,614 

39,049,552

Consolidated Income Statement 

(In thousand of Bs and millons of US$) 

Year Ended 

Interest Income 

Income from Cash and Due from Banks 

Income from Investment Portfolio 

Income from Loan Portfolio 

Income from Financial Assets 

Total Interest Income 

Interest Expenses 

Interest on Demand and Savings Deposits 

Interest on Time Deposits 

Interest on Securities issued by the institution 

Interest on Financial Liabilities 

Total Interest Expenses 


Provision for Losses on Loan Portfolio 

Expense for Devaluation of Investments in 

Available-for-Sale Securities 

Net Financial Margin 


Trust Fund Operations 

Foreing Currency Transactions 

Commissions on Customer account Transactions 

Commissions on Letters of Credit and Guarantees Granted 

Equity in Long-Term Investment 

Exchange Gains 

Income on Sale of Investments Securities 

Other income 

Total Commissions and Other Income 

Insurance Premiums. Net of Claims 

Premiums 

Claims 

Total Insurance Premiums. Net of Claims 

Operating Income 


Salaries and Employee Benefits 

Depreciation, Property and Equipment Expenses, 

Amortization of Intangibles and Other 

Fees Paid to Regulatory Agencies 

Other Operating Expenses 

Total Operating Expenses 

Net before Income taxes, Extraordinary items 

and Minority Interest 

Taxes 

Current 

Deferred 

Total Taxes 

Minority Interest 

Net Income for the Year 

(1) Dollar figures are given for reference purposes only and are converted at the average exchange rate of Bs 4.2893 / US$ 1. Exchange control has been in place in Venezuela since February 2003. 



2011 

US$ (1) 

2 

356 

1,496 

- 

1,854 

(468) 

(26) 

(1) 

(29) 

(524) 

1,330 

(262) 

(1) 

1,067 

14 

2 

90 

6 

19 

14 

132 

368 

643 

1,012 

(837) 

176 

1,886 

(512) 

(124) 

(181) 

(452) 

(1,268) 



618 

(53) 

11 

(42) 

577 

(1) 

576 


2011 

bolivars 

9,376 

1,528,008 

6,416,560 

- 

7,953,944 

(2,006,768) 

(109,739) 

(6,029) 

(122,434) 

(2,244,970) 

5,708,974 

(1,124,522) 

(3,069) 

4,581,383 

58,090 

9,990 

384,411 

24,607 

82,229 

59,608 

565,416 

1,578,552 

2,762,903 

4,341,714 

(3,587,810) 

753,904 

8,098,190 

(2,197,438) 

(529,595) 

(775,498) 

(1,937,688) 

(5,440,219) 

2,657,971 

(229,353) 

46,533 

(182,820) 

2,475,151 

(2,983) 

2,472,168 

2010 

bolivars 

6,495 

1,025,296 

4,544,692 

1,849 

5,578,332 

(1,527,917) 

(111,867) 

(29,790) 

(135,410) 

(1,804,984) 

3,773,348 

(963,152) 

- 

2,810,196 

56,267 

(7,612) 

272,035 

22,265 

60,372 

1,063,278 

572,446 

1,190,182 

3,229,233 

3,284,696 

(2,863,982) 

420,714 

6,460,143 

(1,707,492) 

(453,031) 

(486,579) 

(1,303,751) 

(3,950,853) 

2,509,290 

(275,100) 

(56,676) 

(331,776) 

2,177,514 

(1,201) 

2,176,313 



2009 

bolivars 

11,179 

1,099,090 

3,488,723 

42,019 

4,641,011 

(1,305,262) 

(226,191) 

(124,809) 

(170,204) 

(1,826,466) 

2,814,545 

(759,658) 

(34,993) 

2,019,894 

48,265 

2,106 

230,693 

19,138 

64,774 

2,350 

198,947 

814,311 

1,380,584 

2,278,612 

(1,952,257) 

326,355 

3,726,833 

(1,370,994) 

(357,952) 

(192,011) 

(912,805) 

(2,833,762) 

893,071 

(96,890) 

- 

(96,890) 

796,181 

(489) 

795,692 

2008 

bolivars 

33,787 

957,586 

3,450,762 

31,951 

4,474,086 

(1,059,657) 

(428,639) 

(153,584) 

(156,442) 

(1,798,322) 

2,675,764 

(473,188) 

- 

2,202,576 

42,673 

3,067 

183,740 

31,113 

66,478 

(8,890) 

258,919 

634,718 

1,211,818 

1,666,930 

(1,391,018) 

275,912 

3,690,306 

(1,155,761) 

(293,118) 

(144,533) 

(952,166) 

(2,545,578) 

1,144,728 

(192,181) 

7,068 

(185,113) 

959,615 

(628) 

958,987 


President 

2007 

bolivars 

11,525 

796,618 

2,218,304 

29,838 

3,056,285 

(532,103) 

(392,150) 

(88,407) 

(130,703) 

(1,143,363) 

1,912,922 

(126,897) 

- 

1,786,025 

40,682 

3,765 

181,808 

32,576 

41,333 

(1,537) 

184,632 

537,839 

1,021,098 

1,061,618 

(885,954) 

175,664 

2,982,787 

(904,364) 

(225,053) 

(113,320) 

(776,798) 

(2,019,535) 

963,252 

(188,552) 

9,183 

(179,369) 

783,883 

(550) 

783,333


Bestia 10, around 1960 

Cardboard and putty on wood 

120 x 149 cm

Economic Climate 

Global 

During 2011, much of the global economy's 

performance was conditioned by the European periphery's sovereign debt crisis which has 

dragged the eurozone towards slower growth and, in general, more volatile asset markets, 

and given investors negative expectations. The tougher attitude towards granting loans to 

families, along with financial uncertainty, have slowed down the dynamic pace of consumer 

spending and affected the real performance of most of those economies, including the ones 

like the German economy whose behavior is sounder. Unemployment in the eurozone in 

October reached 10.3% and in net terms 634,000 jobs were lost in the last six months. By 

contrast, and although this may bear no relation to the crisis, the US economy's GDP grew 

around 2% in 2011, while the jobless rate fell, closing at 85 % in December (versus 9.4% a year 

earlier). On the other hand, a vigorous and growing web of trade relations within the emerging 

economies has meant that, in that space, economic growth during 2011 has remained 

satisfactory. However, it is important to point out that China and Brazil, the two major 

emerging economies in Asia and Latin America respectively, both registered somewhat slower 

growth rates. In particular, the Brazilian economy's interannual growth was 2.2 % in the third 

quarter, the worst registered since the start of the recovery towards the end of 2009. 

United States 

The main outcome of the positive rate of private spending in the United States is a substantial 

improvement of consumers' expectations. In November the Conference Board Consumer 

Confidence Index registered its highest monthly increase in the last 145 years (from 40.9 to 

56.0 points). One indication that consumer spending is recovering is that retail sales are doing 

well, having risen 5.6% in interannual terms in November. In the job market (to December) 

twelve successive months of net employment earnings were accumulated and almost 2.5 

million jobs recovered over a 21-month period. Nevertheless, there is still a long way to go to 

recover the 8.7 million jobs lost during the crisis. The deep imbalances observed in the US 

real estate market have gradually, but very slowly, been corrected. As of November sales of 

used and new homes continued to rise (4% and 1.6% month over month), gaining some 

momentum in the last part of the year. However, a context of high inventories still prevails, 

hampering the stabilization of real estate prices and hence the ability to curb on the one hand 

the deterioration in the value of one of the fundamental assets in the equity of US households, 

and on the other, the ability to give the industry a new kickstart by generating jobs and the 

demand for basic inputs that this would involve. 


Latin America 

During 2011 the region stayed on track in terms of the previous year's growth after a 2% 

decline in 2009. Total GDP per capita expanded 4.3% (5.9% in 2010) and 3.2% (4.8% in 2010). 

Unemployment fell to 6.8% (7.3% in 2010) and real remunerations continued to rise in the 

majority of these countries. Good real performance was due to stronger regional exports, 

above all in the first half of the year; the high level of international liquidity which fostered a 

net transfer of funds in excess of US$ 40,000 million; and the very significant internal 

dynamism of earnings, spending and credit. The gradually weakening of external demand 

meant that exports only grew 7%, although net exporters of commodities (Venezuela, 

Ecuador, Chile) registered more vigorous growth compared with 11.3% growth of imports, 

fostered by a moderate appreciation of the exchange rate and dynamic consumer spending. 

Nonetheless, the region's external position continued to improve, closing with a global 

balance of payments deficit of US$ 104,132 million, 22% higher than in 2010. 

Inflation picked up again, though only slightly, registering 6.9% (6.5% in 2010), once again 

spurred on by higher international food and energy prices. 

Fiscal results improved in response to sound domestic growth which led to an increase in 

revenue amounting to 0.4% of GDP, similar to 2010, which along with similar spending to 

2010, resulted in a surplus of 0.3% of GDP (-0.3% in 2010). 

An more uncertain international scenario than in 2012, due to the lower rate of growth 

expected and the turbulence associated with the sovereign debt crisis in the eurozone, call for 

a downward adjustment of the region's economic expansion, even though a new spate of 

recession is unlikely. 

Venezuela 

The Venezuelan economy grew 4 % in 2011 (-1.5% in 2010) supported by the high level of 

external earnings and the countercyclical effort of the fiscal policy. Activity in the non-oil 

sector was more dynamic than in the oil sector (4.3% versus 0.6 %). The areas in the oil sector 

where growth was most significant were financial institutions and insurance (11.2%), 

Communications (7.6%), and Trade (6.6%). By contrast, the rest of the economy, comprising 

mainly agricultural activities, shrank 1.8%. 

As economic growth picked up, unemployment fell from 8.9% to 8.3% (averaged over the first 

three quarters) and 290,000 new jobs were created, 41% of them in the public sector, bringing 

their share of total employment to 19.7%. 

Nominal remunerations as of the third quarter rose 37.2%, far exceeding inflation, with 

variations of 58.6% and 28.2% in the public and private sector respectively. 

Domestic aggregate demand rose 6.6% (-0.5% in 2010), its most dynamic component in public 

spending (6% in 2011 vs. 2% in 2010), although private spending managed to recover by 3.7% 

(-1.9 % in 2010), while fixed gross capital formation expanded 1% (-6.3% in 2010). The external 

components of aggregate supply and demand also rose significantly. Imports rose 13.4% (-2.9% 

in 2010) and exports 5.9% (-12.9% in 2010). 


Inflation underwent a slight upturn, from 27.2% in 2010 to 27.6% this year as a result of the 

increase in the official exchange rate and domestic aggregate demand, the rise in international 

food prices, and the restrictions on domestic supply, particularly of foodstuffs, given the 

weakness observed in agricultural activities. 

The price of the Venezuelan oil basket rose 41%, closing at US$ 100.7/bbl, from an average of 

US$ 71.6/bbl in 2010, so just the slightest variation in domestic oil production pushed the 

value of oil exports more than US$ 27 billion higher than in 2010, to US$ 89,391 million. Imports 

of goods and services totaled US$ 45,615 million (US$ 7,002 million more than in 2010). The 

trade balance surplus was US$ 48,281 million, almost twice the US$ 27,132 registered in 2010. 

Despite those highly positive net exports, the deficits of the Balance of Income, Services and 

Current Transfers (-US$ 16,283 million) and of the Capital and Financial Account (-US$ 32,566 

million), plus Errors and Omissions (-US$ 2,924 million), led to a global Balance of Payments 

deficit of US$ 3,988 million (-US$ 8,060 million in 2010). International reserves held by the 

Central Bank closed at US$ 29,899 billion, equivalent to 8 months of imports. 

Fiscal policy took a u-turn after a contractionary period from 2009-2010. In 2011 the trend 

reversed when the nominal expansion of spending reached 53% and the variation, after taking 

inflation into account, led to a 19% real expansion of primary spending (-8.4% in 2010). 

Money supply grew 50% (19% in 2010), which in real terms, given the inflation observed 

during the period, meant that real payment systems expanded 16.3% (-65% in 2010), 

interrupting a cycle of demonetization that had began in 2007. Basically the origin of this 

result was the significant amount of money of fiscal origin injected and the huge secondary 

expansion of money stemming from the recovery of credit activity . 

The monetary policy had a slightly net expansive effect on liquidity, in the order of Bs 3,102 

million (contrasting with the net contractionary effect of OMOs 

that amounted to Bs 1,120 million in 2010), leaving the inventory 

Summary of Economic Performance 2010 2011 

of securities issued by the BCV at Bs 9,859 million, 12% below 

Percentage variation of Gross 

the level at the close of 2010, equivalent to 2.2% of M2. 

Domestic Product % 

Total 

Oil Sector 

-1.5 

0.1 

4.0 

0.6 

The active interest rates of commercial and full-service banks 

averaged 17.5% in 2011, leading to a new fall for the third year 

Non Oil Sector -1.6 4.3 running, compared to 18.2% in 2010. Meanwhile, deposit, 

Exchange Rate. Bs./US$ 

measured through savings and term instruments averaged 

End of Period 

Average 

2.60 - 4.30 

2.60 - 4.30 

4.30 

4.30 

12.6% and 14.5%, without any significant variation compared to 

the credits for those deposits during 2010. Real interest rates 

Exchange Rate Variation % 

turned negative again, for the tenth year in the case of lending 

End of Period 

Average 

Inflation (National) % 

Cumulative Variation 

68.4 

68.4 

27.2 

18.8 

18.8 

27.6 

rates and for the six year running in the case of deposit rates. 

The real lending rate averaged -8.7% in 2011 (-6.6 % in 2010) and 

-11% in the case of the real deposit rate (-9.4% in 2010). 

Annualized Variation 24.0 23.3 

Interest Rate - End of Period 

Average Lending Rates (6 main Banks) 17.9 15.4 

90 day Time Deposits (6 main Banks) 15.0 14.5 

Source: Central Bank of Venezuela (BCV) and in-house calculations. 


Francisco Hung 

Materias flotantes, 1964 

Oil on canvas 

95.7 x 145 cm

Mission 

To fulfill the needs of individuals and 

communities where Mercantil has 

presence, by providing excellent financial 

products and services in various market 

segments, enhancing shareholder’s 

value by efficiently using our available 

resources. 

Vision 

To be the independent financial 

institution of reference in the areas of 

banking, asset management and 

insurance, in the markets where we serve. 

Strategic 

Positioning 

Mercantil bases its strategic guidelines on its 

corporate mission, long-term strategic vision and its principles and values. 

Principles and Values 

• To be the best financial services provider measured by the degree to which customers’ needs and 

expectations are met, through products and services considered by them as the best in the market. 

• To be the financial institution of reference in terms of excellent service quality. 

• To be recognized for having sound and proven ethical principles. 

• To be an integral institution and an important factor in the development of the community and 

places in which it is involved. 

• To have the best and most capable group of human resources. 

• To exercise optimum risk management and assets and liabilities management. 

• To maintain a constant focused approach to the operating efficiency of the organization as a 

whole, using technology to support the overall exercise of its management. 

• To be a modern and innovative institution capable of anticipating the requirements of its 

customers and the organization’s response. 

• To be an institution with a broad shareholder base, governed by the best principles of openness, 

transparency and access to information that our shareholders and the securities market expect. 

Mercantil's global business strategy is based on the development of client value proposals that 

are differentiated by client segment, to satisfy all their banking, insurance and wealth 

management needs. 

So, in 2011, Mercantil continued to further its initiative to understand and interact more with 

its clients in the different segments in order to improve its product offering and mix to satisfy 

their financial needs. In the area of banking products, Mercantil is continuously striving to 

increase financing for the production sectors of the economy. 

Likewise, Mercantil continues to execute the plan to grow the Mercantil Aliado network, 

focusing on the Majorities segment to promote the development of low-income communities 

and include new clients in the banking system. 

Mercantil continues to enhance the processes and quality of products and services to meet 

the financial needs of clients in the different segments, following the risk parameters 

established. It is also continuing to expand the offer of electronic and self-service products in 

line with its effort to improve quality of service for its clients through the different channels. 

In our international network we are constantly strengthening our activity in the United States, 

Latin America and Asia through an approach based on differentiated client value to meet clients’ 

financial needs. Hence we have continued with our growth and diversification strategy to boost 

domestic activity in the United States and Panama. We have also reinforced our activity in 

Switzerland as a key factor in developing the Private Banking and Wealth Management business. 


In the insurance business in Venezuela, Mercantil has maintained its effort to improve the 

quality of the services offered to clients and intermediaries, through initiatives for distributing 

products, optimizing customer service and making information readily available, particularly 

through the self-management facilities in the virtual channels . New offices have been opened 

in the provinces, in line with Mercantil Seguros' plan to expand and improve its facilities. 

All of this has been undertaken in strict compliance with the regulations applicable in the 

countries where we operate, with strong capitalization and according to the principles of 

transparency and sound management which are key to Mercantil’s strategic positioning, the 

nature of the institution, and its day-to-day activity. 


Management 

Discussion and Analysis 

Summary of Consolidated 

Balance Sheet 

Year Ended 

(In thousands of Bs and millons of US$ 

except percentages) 

Total Assets 


Loan Portfolio, Net 

Deposits 


Trust Fund Assets 

Total Assets by Currency 

Bs 102,696 million 

(US$ 23,943 million) 1 

Year 2011 

Balance Sheet 

A summary balance sheet for 2011 is shown 

below and the main variations by comparison with 2010 are commented on: 

2011 

US$ (1) 

23,943 

5,847 

14,075 

19,078 

2,560 

2,617 

The audited financial statements and their notes can be found in the inside back cover of this 

Report. The main accounting standards used are summarized at the end of this chapter. 

Total Assets 

2011 

bolivars 

102,696,327 

25,083,222 

60,371,801 

81,834,145 

10,977,160 

11,224,623 

2011 2010 2009 

Bolivars 67.4% 58.2% 71.2% 

US Dollars 32.6% 41.8% 28.8% 

2010 

bolivars 

79,382,962 

21,591,730 

42,928,106 

62,366,913 

8,513,300 

9,638,196 

Total assets were Bs 102,696 million (US$ 23,943 million) 1 , reflecting 29.4% annual growth 

mainly in its loan portfolio which rise 40.6%. The variations for this item, seen individually by 

subsidiary, are as follows: 

• At December 31, 2011, the total consolidated assets of Mercantil Banco Universal including 

overseas agencies, grew Bs 20,886 million (44.8%) to Bs 67,525 million (US 15,743 million) 1 

compared to Bs 46,639 million (US$ 10,873 million) 1 as of December 2010. 


2009 

bolivars 

53,074,810 

14,044,092 

27,137,723 

42,847,704 

4,879,810 

9,699,922 

2011 Vs. 2010 

Increase/ 

(Decrease) 

bolivars % 

�� 29.4 

�� 

�� 

�� 

�� 

�� 

16.2 

40.6 

31.2 

28.9 

16.5 

2011 Vs. 2009 

Increase/ 

(Decrease) 

bolivars % 

49,621,517 

11,039,130 

33,234,078 

38,986,441 

6,097,350 

1,524,701 

(1) Dollar figures are given for reference purposes only; balance sheet figures are converted at the exchange rate at the end of the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since 

February 2003. 

93.5 

78.6 

122.5 

91.0 

125.0 

15.7

Investments Portfolio 

by Issuer 


(US$ 5,847 million) 1 

Year 2011 

• At the close of 2011 Mercantil Commercebank Florida Bancorp registered US$ 6,604 

million1 (Bs 28,327 million) in total assets, representing US$ 171 million ( 2.7%) growth 

compared to US$ 6,433 million1 (Bs 27,593 million) as of December 2010. 

• Mercantil Seguros, registered Bs 4,791 million (US$ 1,117 million) 1 in total assets at December 

31, 2011 which was Bs 1,441 million (43.0%) more than the Bs. 3,350 million (US$ 781 million) 1 

registered as of December 2010. 


At the close of 2011, investments totaled Bs 25,083 million (US$ 5,847 million) 1 , which represents 

Bs 3,491 million (16.2 %) growth over the Bs 21,592 (US$ 5,034 million) 1 recorded at the close of 

December 2010. 

The variations for this item, taken separately by subsidiary, are as follows: 

• Mercantil Banco Universal at December 31,2011 registered Bs 11,199 million (US$ 2,611 million) 1 

in total investments, 41.9% up on the Bs 7,890 million (US$ 1,839 million) 1 achieved the 

previous year. 

• Mercantil Commercebank Florida Bancorp at December 31, 2011 reached US$ 2,151 million 1 

(Bs 9,226 million) in total investments, 6.9% less than the US$ 2,310 million1 (Bs 9,908 million) 

registered at the close of the previous year. 

• Mercantil Seguros at December 31, 2011, registered Bs 3,280 million (US$ 765 million) 1 in total 

investments, 36.8% up on the Bs 2,399 million (US$ 559 million) 1 achieved the previous year. 

2011 2010 2009 

Venezuelan Central Bank 12.2% 14.1% 21.8% 

Venezuelan State and Government Entities 

Governnment and 

43.4% 28.6% 29.3% 

US Government-sponsored Bodies 36.4% 45.1% 39.6% 

Others 8.0% 12.2% 9.3% 

Total investments in securities issued or guaranteed by the Venezuelan nation (excluding the 

BCV) represent 0.8 times Mercantil’s equity and 8.4% of its assets. (0.7 and 7.3% at December 

2010 respectively). At Mercantil Banco Universal, these securities represent 0.8 times the 

equity and 7.9% of the assets (0.7 and 7.9 % in December respectively). Mercantil holds 1.9% of 

the public debt securities issued by the Venezuelan goverment, according to information 

obtained from the Ministry of Economics and Finance at December 31, 2011 in terms of the 

debt in bolivars and dollars. 

(1) Dollar figures are given for reference purposes only and are converted at the closing exchange rate of Bs 4.2893/US$ 1. Exchange control has been in place in Venezuela since February 2003. 


Investments by maturity and yield at December 31, 2011 are broken down as follows: 

Years 

Bs. Less than 1 

From 1 to 5 

Over 5 

US$ Less than 1 

From 1 to 5 

Over 5 

Investments at the close of 4Q 2011, by company, issuer and currency, are made up as follows: 

Bolivars 

Mercantil Banco Universal 

Mercantil Seguros and Others 

Total Bs 

US$ Dollar s 


Mercantil Commercebank 

Florida BanCorp 

Mercantil Seguros and Others 

Total US$ 

Breakdown % 

Trading 

Bs. 2 

225 

25 

41 

291 

Venezuelan 

Central 

Bank 

3,050 

3,050 

- 

12.2% 


Investments by Maturity and Yield 

(Stated in millions of Bs, except percentages) 

Available 

for Sale 

Bs. 2 

1,789 

4,534 

1,203 

288 

1,403 

8,993 

18,210 

% 4 

11.2% 

13.6% 

15.4% 

4.9% 

6.9% 

5.1% 

Held to 

Maturity Shares 

Bs. 3 

1,316 

1,250 

82 

211 

20 

2,879 

% 4 

3.8% 

3.2% 

2.4% 

3.5% 

7.5% 

Bs. 2 

13 

1 

14 

Time Deposits 

and Placements 

Bs. 2 

2,089 5 

286 

22 

2,397 

% 

5.4% 

0.9% 

0.8% 

Trust Funds and 

Restricted 

Investments 

Bs. 2 

1,229 6 

20 

8 

35 

1,292 

% 4 

6.0% 

1.9% 

2.2% 

4.8% 

TOTAL 

5,017 

5,850 

2,466 

901 

1,647 

9,112 

25,083 

1 Dollar figures are given for reference purposes only; balance sheet figures are converted at the exchange rate at the end of the period 

(Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

2 Market value 

3 Amortized cost. 

4 Yield based on the amortized cost at the end of the period. This is obtained by dividing the income from securities (including amortization 

of premiums or discounts) by the amortized cost or market value. 

5 Bs 1,827 million correspond to Central Bank loans maturing at 30 days. 

6 Correspond to Central Bank repos with maturities of less than 30 days. 

Breakdown of Investments by Issuer and Currency at December 31, 2011 

(In millions of Bolivars and US$, except percentages) 

U.S. 

Government 

- 

30 

1,247 

75 

1,352 

23.1% 

U.S. 

Agencies 

- 

37 

705 

35 

777 

13.3% 

Int’l 

Private 

36 

36 

24 

172 

188 

384 

6.7% 

Venezuelan 

Government 

7.419 

2.579 

9,998 2 

39 

33 

134 

206 

43.4% 

Venezuelan 

Private 

12 

326 

338 

1.3% 

Totals 

Bs 

10,481 

2,941 

13,422 

Totals 

US$ 1 

130 

2.157 

432 

2,719 

100.0% 

1 Dollar figures are given for reference purposes only; balance sheet figures are converted at the exchange rate at the end of the period 

(Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

2 Bs 940 million include foreign exchange indexation clauses.

Loan Portfolio by 

Business Segment 


(US$ 14,075 million) 1 

Year 2011 


At the close of 2011, net loans reached Bs 60,372 million (US$ 14,075 million) 1 which represents 

an increase of Bs 17,444 million (40.6%) over the Bs 42,928 (US$ 10,008 million) 1 recorded at the 

end of December 2010. 

The variations for this item, taken separately by subsidiary, are as follows: 

• Mercantil Banco Universal, at December 31, 2011 registered Bs 41,975 million (US$ 9,786 

million) 1 in total loans, representing an increase of 57.2% compared to Bs 26,703 million 

(US$ 6,226 million) 1 as of the close of December 2010. 

• Mercantil Commercebank Florida Bancorp’s, loan portfolio at the end of 2011 was US$ 4,110 

million1 (Bs 17,629 million), US$ 409 million1 , an 11.0% year-on-year increase from US$ 3,702 

million1 (Bs 15,879 million). This portfolio is mainly composed of commercial loans, services 

and mortgages for home purchase and construction. 

The ratio of Past-due and Nonperforming Loans to Gross Loans was 1.7 % (2.9% at December 

2010). The ratio by subsidiary is as follows: 

• Mercantil Banco Universal 0.7 % compared with 1.4 % for the Venezuelan financial system. 

• Mercantil Commercebank 4.2%, an improvement on the 6.5 % registered at the close of 

December 2010 (5.8% non accrual loans vs. 8.3% at December 31, 2010). 

At December 31, 2011, 98.3 % of Mercantil’s loan portfolio is outstanding. 

2011 2010 2009 

Large Corporations 26% 28% 22% 

Small and Medium Enterprises 47% 46% 46% 

Individuals 27% 26% 32% 

(1) Dollar figures are given for reference only; the balance sheet is converted at the exchange rate at the end of the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 



Classified by Status 

Year Ended 

(In thousands of Bs except percentages) 

Current 

Restructured 

Past Due 

In Litigation 

Total Gross Loans 

2011 

bolivars 

60,829,744 

599,175 

574,655 

486,320 

62,489,894 

Sector 

Agriculture 

Mortgage 

Microcredits 

Tourism 

Manufactured 

goods 

Percentages 

of Compliance 

1 Includes Bs 425 million in Agricultural Bonds issued by the Venezuelan goverment in accordance with the compulsory agricultural portfolio 

and Bs 928 million in special mortgage securities issued by National Housing and Habitat Bank (BANAVIH for its abbreviation in spanish, 

Banco Nacional de Vivienda y Hábitat) in accordance with the regulations on mortgage portfolio compliance. 

% 

97.3 

1.0 

0.9 

0.8 

100.0 


Compulsory Loan Portfolio for Mercantil Banco Universal 

by economic sector and interest rates 

Calculated on the average gross loan portfolio at 

December 31, 2010 and December 31, 2009. 

Monthly Compliance. Maximum per client: 5% of 

the current portfolio. A minimum number of new 

clients is required (individuals). Must be distributed 

quarterly into priory and non-priority items. 

Priority items must not account for less than 70% 

of the total and medium and long-term credits for 

not less than 10% of the total. 

Calculated on the gross loan portfolio at December 

31, 2010, made up as follows: 4.0% long-term and 

8.0% short-term loans. Annual Compliance. 

3% calculated on the gross loan portfolio at June 30, 

2011. Monthly Compliance 

Calculated on the average gross loan portfolio at 

December 31, 2010 and December 31, 2009. 

Compliance must be achieved by December 31, 

2011 at the latest (1.5% semi-annually). 

Calculated on the gross loan portfolio at December 

31 2009. Monthly Compliance: As of December 31, 

2009 it is not possible to reduce the participation 

which cannot be lower than 10%. 

2010 

bolivars 

42,384,693 

683,007 

1,011,526 

282,840 

44,362,066 

% 

95.6 

1.5 

2.3 

0.6 

100.0 

2009 

bolivars 

27,017,149 

87,870 

854,373 

71,056 

28,030,448 

% 

reached 

28.0 % 1 

15.4 % 1 

3.7 % 

3.3 % 

21.6 % 

Dec-11 

% 

96.4 

0.3 

3.0 

0.3 

100.0 

% 

required 

24.0 % 

12.0 % 

3.0 % 

3.0 % 

11.0 % 

Interest rates applicable 

December 2011 

Set weekly by the Venezuelan Central 

Bank. As of December 31, 2011 it is 13%. 

Set semi-annually by the Ministry of 

Housing and Habitat. The "social interest 

rate" is currently set according to the 

family income of the borrowers and 

ranges from 1.40% to 11.42% 

Within minimum and maximum rates set 

by the Venezuelan Central Bank. As of 

December 31, 2010 the maximum rate 

applicable is 24%. 

Each month the Venezuelan Central Bank 

sets a preferential rate for the sector. At 

December 31, 2011 it is 12%; in some cases 

it can be reduced to 9% subject to the 

provisions of the Tourism Sector Credit 

Act. 

Set at 19% by the Venezuelan Central 

Bank.

Deposits by 

Business Segment 


(US$ 19,078 million) 1 

Year 2011 

Deposits 

At the end of 2011 deposits totaled Bs 81,834 million (US$ 19,078 million) 1 , which represents a 

31.2% increase compared with Bs 62,367 million (US$ 14,540 million) 1 as of December 2011. 

The variations for this item, seen individually by subsidiary, are as follows: 

• Mercantil Banco Universal, at December 31, reached Bs 58,469 million (US$ 13,631 million) 1 

in total deposits including overseas agencies, Bs 19,086 million (48.5%) up on the Bs 39,383 

million (US$ 9,182 million) 1 registered at the close of December 2010. 

• Mercantil Commercebank N.A., at December 31, 2011 registered US$ 5,202 million 1 

(Bs 22,313 million) in deposits, US$ 87 million1 (1.7%) up on the US$ 5,116 million1 (Bs 21,944 

million) reached at December 2010. 

2011 2010 2009 

Large Corporations 19% 20% 25% 

Small and Medium Enterprises 25% 23% 22% 

Individuals 56% 57% 53% 


At December 31, 2011, shareholder's equity was Bs 10,977 million (US$ 2,560 million) 1 which 

represents an increase of 28.9% compared to Bs 8,513 million (US$ 1,985 million) 1 at December 

2010. This variation mainly includes Bs 2,472 million in net income for the year, Bs 248 million 

more as a result of adjusting available-for-sale investments to their market value, and a Bs 241 

million reduction for dividend provisions. 

Equity Ratios 

Mercantil’s Equity/Assets ratio at December 31, 2011 is 10.7% and its Equity/Risk-Weighted Assets 

ratio 18.7%, based on the standards of the National Securities Superintendency (Superintendencia 

Nacional de Valores, SNV), (10.7% and 20.4% at December 31, 2010). 

• At December 31, 2011, Mercantil Banco Universal’s Equity/Assets ratio is 10.1% 2 and its 

Equity/Risk-Weighted Assets ratio 16.0% (11.2% and 17.6% at December 31, 2010) in keeping 

with the standards of the Superintendency of Banking Sector Institutions. The equity/riskweighted 

assets ratio, calculated in accordance with the standards of the Basel Committee on 

Banking Supervision of the Bank for International Settlements reached 14.9% (17.3% at 

December 31, 2010). 

• Mercantil Commercebank, N.A., based on the standards of the US Office of the Comptroller 

of the Currency (OCC), the equity/assets ratio is 9.3% at December 31, 2011 and the equity/riskbased 

assets ratio 17.2%, (9.3% and 18.1% at December 31, 2010 respectively). 

The equity ratios of Mercantil and its subsidiaries exceed the regulatory minimums. 

(1) Dollar figures in US$ 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$ 1) and the income statement at the average exchange rate 

for the period (Bs 4.2893/US$ 1 versus Bs 3.5827/US$ 1 at December 31, 2010). Exchange control has been in place in Venezuela since February 2003. 

(2) Obtained by dividing Equity by Total Assets less Investments in Public Debt Securities. 


Financial Margin 

Year Ended 

(In thousands of Bs and millons of US$, 


Interest Income 

Interest Expense 


Provision for losses on loan Portfolio 

Expenses for Devaluation of 

Available-for-Sale Securities 


Income Evolution 

Million Bolivars 

6.000 

5.000 

4.000 

3.000 

2.000 

1.000 

7.9% 

2008 

7.3% 

7.1% 

Income Statements 

The main variations between the figures for December 31, 2011 and December 31, 2010 are 

summarized below: 

2011 

US$ (1) 

1,854 

(524) 

1,330 

(262) 

(1) 

1,067 

2011 

bolivars 

7,953,944 

(2,244,970) 

5,708,974 

(1,124,522) 

(3,069) 

4,581,383 


5,578,332 

(1,804,984) 

3,773,348 

(963,152) 

Net Interest Income in 2011 was Bs 5,709 million (US$ 1,330 million) 1 , 51.3% more than the 

Bs 3,773 million (US$ 1,053 million) 1 registered in 2010, mainly due to the rise in the financial 

intermediation ratio from 71.1% at the close of December 2010 to 76.4% at December 31, 

2011 and a larger volume of financial assets and liabilities. 

• Mercantil Banco Universal Net Interest Income was Bs 4,677 million (US$ 1,090 million) 1 , 

53.6% more than the Bs 3,046 million (US$ 850 million) 1 registered in 2010, mainly due to the 

increase in the financial intermediation index from 69.2% at the close of December 2010 to 

73.5% at December 31, 2011 and the higher volume of financial assets and liabilities. 

• Mercantil Commercebank, N.A. reached US$ 151 million1 (Bs 648 million), 5.3% higher than 

the interest income of US 143 million1 (Bs 512 million) in 2010 . The Bank continues to hold a 

significant portion of its assets, US$ 2,318 million (more than 35%) in short-term investments 

and securities issued by the US government or US government-sponsored bodies. This high 

level of liquidity has continued to give the Bank plenty of flexibility to increase its credit 

operations. 

The net interest income/average financial assets ratio in 2011 was 7.8 % compared to 7.1% in 2010. 

7.8% 

2,676 2,815 3,773 5,709 

2009 2010 2011 

10.0% 

9.0% 

8.0% 

7.0% 

6.0% 

5.0% 

4.0% 

3.0% 

2.0% 

1.0% 

0.0% 


2010 

bolivars 

- 

2,810,196 

2009 

bolivars 

4,641,011 

(1,826,466) 

2,814,545 

(759,658) 

(34,993) 

2,019,894 

2011 Vs. 2010 

Increase/ 

(Decrease) 

bolivars % 

2,375,612 

439,986 

1,935,626 

161,370 

3,069 

1,771,187 


Net Interest Income / Average Financial Assets 

42.6 

24.4 

51.3 

16.8 

100 

63.0 

2011 Vs. 2009 

Increase/ 

(Decrease) 

bolivars % 

3,312,933 

418,504 

2,894,429 

364,864 

(31,924) 

2,561,489 

(1) Dollar figures are given for reference only; the income statement is converted at the average exchange rate for the period (Bs 4.2893/US$ 1 versus Bs 3.5827/US$ 1 at December 31, 2010). Exchange control has been 

in place in Venezuela since February 2003. 

71.4 

22.9 

102.8 

48.0 

(91.2) 

126.8

Loan Portfolio Evolution 


65,000 

60,000 

55,000 

50,000 

45,000 

40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 

2.7% 

2.5% 

3.3% 

3.2% 

3.2% 

2.9% 

2008 2009 2010 2011 

3.4% 

1.7% 


Past due and non-performing loans 

Past due and non-performing loans / Gross Loan Portfolio 

Loan Portfolio Provision / Gross Loan Portfolio 

Loan Portfolio Provision 

During 2011 Bs 1,125 million (US$ 262 million) 1 in expenses were recorded. This brings the 

accumulated provision to Bs 2,118 million (US$ 494 million) 1 at December 31, 2011 and represents 

3.4% of gross loans (3.2% at December 31, 2010) and 199.6% coverage of the past-due and 

nonperforming loans portfolio (110.8% at December 31, 2010). Write-offs for the year were Bs 246 

million in Venezuela and US$ 52 million abroad. 

• Mercantil Banco Universal subsidiary recorded Bs 900 million (US$ 210 million) 1 in loan loss 

provisions during the year (Bs 684 million in 2010), due to loan portfolio growth; these are 

intended to increase the allowances for the commercial, agricultural and construction sectors. 

At December 31, 2011 the portfolio provision covers 615.6% of past-due and nonperforming 

loans (489.0% at December 31, 2010). 

• Mercantil Commercebank, N.A. subsidiary registered US$ 50 million1 (Bs 214 million) in Loan 

Portfolio Provisions, US$ 23 million (31.5 %) less than in 2010, mainly for credits related to the 

commercial sector and mortgages for construction and house purchase. At December 31, 2011 

the portfolio provision covers 38.4 % of past-due and nonperforming loans (24.2 % at 

December 31, 2010). 

4.5% 

4.0% 

3.5% 

3.0% 

2.5% 

2.0% 

1.5% 

1.0% 

0.5% 

0.0% 

(1) Dollar figures are given for reference only; the income statement is converted at the average exchange rate for the period (Bs 4.2893/US$ 1 versus Bs 3.5827/US$ 1 at December 31, 2010). Exchange control 

has been in place in Venezuela since February 2003. 


Commissions, Other Income and 

Insurance Premiums 

Year Ended 

(In thousands of Bs and millions of US$, 




Insurance Premiums, Net of Claims 

Operating Income 

Distribution of Total Income 


(US$ 2,151 million) 1 

Year 2011 

Commissions, Other Income and Insurance Premiums, Net of Claims 

2011 

US$ (1) 

1,067 

643 

176 

1,886 

2011 

bolivars 

4,581,383 

2,762,903 

753,904 

8,098,190 

2,810,196 

3,229,233 

Commissions and Other Income in 2011 totaled Bs 2,763 million which was Bs 466 million 

(14.4%) less than the Bs 3,229 million recorded in 2010. This reduction is mainly due to: 

• Bs 1,003 million (94.4%) reduction due to exchange difference after the Central Bank adjusted 

the exchange rate used to value assets and liabilities in foreign currency from Bs 2.1446/US$ 

to Bs 4.2893/US$ in 2010. 

• Bs 537 million (24.8%) growth of earnings from the financing of insurance policies, 

commissions on credit and debit cards, and other commissions on operations with clients. 

Insurance premiums net of commissions, reinsurance and claims totaled Bs 754 million (US$ 176 

million) 1 in 2011, reflecting a 79.2 % increase compared with Bs 421 million (US$ 117 million) 1 in 

2010. Net earned premiums in 2011 totaled Bs 5,234 million ($ 1,220 million) 1 which represents 

a year-on-year increase of Bs 1,221 million, or 30.4%. This growth was mainly in the automobile 

business (37.2%). Mercantil Seguros is the country’s second largest insurance company in terms 

of net earned premiums and its market share at December 31, 2011 is 11.4%. Claims totaled 

Bs 3,588 million (US$ 837 million) 1 , reflecting a year-on-year increase of Bs 724 million (25.3%). 

Growth was principally in the automobile and health businesses. The claims ratio in respect to 

earned premiums improved from 61.0% in 2010 to 58.8% in 2011. 

(1) Dollar figures are given for reference only; the income statement is converted at the average exchange rate for the period (Bs 4.2893/US$ 1 versus Bs 3.5827/US$ 1 at December 31, 2010). Exchange control 

has been in place in Venezuela since February 2003. 


2010 

bolivars 

420,714 

6,460,143 

2009 

bolivars 

2,019,894 

1,380,584 

326,355 

3,726,833 

2011 Vs. 2010 

Increase/ 

(Decrease) 

bolivars % 

1,771,187 

(466,330) 

333,190 

1,638,047 

2011 2010 2009 

Financial Margin 62% 51% 62% 

Commissions and Insurance Premiums, Net 22% 18% 22% 

Earnings on sale of Investments in Securities 6% 8% 4% 

Foreign Exchange Gains and Other Income 10% 23% 12% 

63.0 

(14.4) 

79.2 

25.4 

2011 Vs. 2009 

Increase/ 

(Decrease) 

bolivars % 

2,561,489 

1,382,319 

427,549 

4,371,357 

126.8 

100.1 

131.0 

117.3


Net Income 

Year Ended 

(In thousands of Bs and millions of US$, 


Earnings from Financial Operation 


Personal Expenses 

Taxes (Current and Deferred) 

Minority Interest 

Net Income for the Year 


Operating and personnel expenses rose 37.7% (Bs 1,489 million) year on year due mainly to: 

• Bs 490 million increase in personnel expenses, 28.7% compared to 2010, due to the 

application of wage increase policies. For Mercantil Banco Universal, assets per employee 

rose from Bs 7.0 million in 2010 to Bs 9.7 million in 2011. At Mercantil Seguros, net earned 

premiums per employee increased from Bs 0.9 million in 2010 to Bs 1.1 million in 2011. For the 

overseas business this indicator went from US$ 8.6 million in 2010 to US$ 8.9 million in 2011. 

• Bs 288 million (59.4%) increase in expenses for contributions to regulatory agencies. 

• Bs 634 million (48.6%) increase in expenses for commissions for the use of the point-of-sale and 

ATM network, municipal taxes, contributions, transfers and communications, among others. 

• Bs 77 million (16.9%) rise in depreciation of property and equipment expenses, amortization of 

intangibles and others. 

The efficiency ratio measured by calculating Operating Expenses as a percentage of Average 

Assets was 5.3% in December 2011, versus 5.2 % in December 2010; the ratio of Operating 

Expenses to Total Revenue was 50.6 % in December 2011 (46.7% in December 2010). Personnel 

and Operating Expenses are affected by inflation in Venezuela, which averaged 27.6 % over the 

last 12 months, and by the effect of devaluation on which affected expenses in Venezuela and 

the conversion of the expenses of the overseas subsidiaries. 

2011 

US$ (1) 

1,886 

(756) 

(512) 

(42) 

(1) 

576 


2011 

bolivars 

8,098,190 

(3,242,781) 

(2,197,438) 

(182,820) 

(2,983) 

2,472,168 

2010 

bolivars 

6,460,143 

(2,243,361) 

(1,707,492) 

(331,776) 

(1,201) 

2,176,313 

2009 

bolivars 

3,726,833 

(1,462,768) 

(1,370,994) 

(96,890) 

(489) 

795,692 

2011 Vs. 2010 

Increase/ 

(Decrease) 

bolivars % 

1,638,047 

999,420 

489,946 

(148,956) 

1,782 

295,855 

25.4 

44.6 

28.7 

(44.9) 

148.4 

13.6 

2011 Vs. 2009 

Increase/ 

(Decrease) 

bolivars % 

4,371,357 

1,780,013 

826,444 

85,930 

2,494 

1,676,476 

(1) Dollar figures are given for reference only; the income statement is converted at the average exchange rate for the period (Bs 4.2893/US$ 1 versus Bs 3.5827/US$ 1 at December 31, 2010). Exchange control has 

been in place in Venezuela since February 2003. 

117.3 

121.7 

60.3 

88.7 

510.0 

210.7

Taxes and Contributions 

For the year ended December 31, 2011 Mercantil and its subsidiaries reported significant 

expenses for various types of taxes and contributions. 

Domestic transactions included: Bs 164 million in estimated corporate income tax payable, 

which includes accounting entries for adjusting Bs 49 million in deferred corporate income 

tax; Bs 204 million in valued added tax; Bs 223 million in municipal taxes; Bs 624 million in 

contributions to FOGADE, the Deposit Guarantee Fund ; Bs 58 million in contributions to the 

Superintendency of Banking Sector Institutions and Bs 60 million in contributions to the 

Superintendency of Insurance Activity and Bs 48 million in contributions to SAFONACC (for 

its abbrevation in spanish), the National Community Council Fund. 

Overseas transactions included Bs 19 million in expenses for corporate income tax payable, 

Bs 2 million in taxes on deferred income, Bs 9 million in municipal taxes and other 

contributions and Bs 33 million in contributions to regulatory agencies. 

Mercantil Servicios Financieros and its subsidiaries also complied with other compulsory 

contributions provided for in the pertinent legislation. 


Summary of the Accounting Principles 

used to prepare the Financial Statements 

National Securities Superintendency (SNV) 

Mercantil’s financial statements are presented based on SNV 

accounting standards. A summary of some of the main accounting 

principles applied is given below: 


Investments in Trading Securities- Unrealized gains or losses 

resulting from differences in fair value due to market 

fluctuations are included in the results for the period. 

Investments in Securities Available for Sale – Recorded at their 

fair market value. Unrealized gains or losses resulting from 

differences in fair value and exchange rate fluctuations are 

included in shareholders’ equity. Investments in Securities Held 

to Maturity– Recorded at their acquisition cost, adjusted for 

amortization of premiums or discounts. For all portfolio 

investments, permanent losses in fair market value are 

recorded in the results for the period in which they occur. 

Permanent investments are stock ownership between 20% and 

50% Those greater than 50% are recorded as equity 

participation and are consolidated, except when control is 

likely to be temporary. 


Loans are classified as overdue 30 days after their maturity. 

Allowances for losses on loan portfolio are determined through 

a collectibility assessment that quantifies the amount to be set 

aside for each loan. These assessments take into account such 

aspects as economic conditions, credit risk by customer, credit 

history and the collateral received. When evaluating loans for 

small amounts of the same nature, these are grouped together 

to determine provisions. 

Recognition of income and expenditure 

Income, costs and expenses are recorded as they are earned or 

incurred. Interest earned on loan portfolios is recorded as 

income when collected. Fluctuations in the market value of 

derivatives are recognized in income in the period in which 

they occur. Insurance premiums are recorded as income when 

earned. 

Consolidation 

The consolidated financial statements include the accounts of 

Mercantil and its more than 50%-owned subsidiaries and other 

institutions in which Mercantil has a controlling interest. 


Inflation Adjustment 

According to SNV standards, Mercantil’s financial statements, 

as of December 31, 1999 must be presented in historic figures. 

Since then Mercantil has ceased to adjust for inflation in its 

primary financial statements. As a result, fixed and other 

assets are shown at their inflation-adjusted value up to 

December 31, 1999. The market value determined by 

independent assessments is greater than the inflation cost 

adjusted for inflation indicated above. New additions are 

being recorded at their acquisition value. 

Accounting differences between SNV and of SUDEBAN 

standards and US GAAP 

The main accounting differences for the reconciliation of 

items under SNV and SUDEBAN for Mercantil Servicios 

Financieros are: 

• Amortization of premiums or discounts of securities carried 

out on a straight-line basis under SUDEBAN standards, 

applying the Constant Amortization Rate under SNV 

standards. 

• Under SNV standards, the effects of exchange fluctuations 

are included in the results for the period, with the exception 

of exchange fluctuations from available-for-sale investments 

and the stock trading portfolio which are included in 

shareholders' equity. Under SUDEBAN standards, all 

fluctuations are recorded in the results, with the exception of 

exchange fluctuations from the stock trading portfolio and 

the fluctuations which, as provided by the SUDEBAN 

exception, must subsequently be included in income when 

authorized by SUDEBAN. 

The main accounting differences between the SNV standards 

indicated above and USGAAP standards for Mercantil Servicios 

Financieros are: 

• Deferred Income Tax: US GAAP allows deferred tax to be 

recognized for the total amount of loan portfolio loss 

allowances, while SNV standards only allow recognition of 

allowances for loans classified as high risk and unrecoverable. 

Provision for assets received in lieu of payment: SNV standards 

stipulate a 100% allowance for real property received in lieu of 

payment after one year from the date of incorporation; under 

US GAAP no amortization deadlines are established.


Pintura N� 5, 1964 

Oil, acrylic, and plaster on canvas 

145 x 228 cm 



Exterior 1, 1963 

Oil on canvas 

110 x 89.7 cm

Business Management Report 

Commercial and Personal Banking 

Deposits 

Year 2011 

Individuals 69% 

Companies 31% 


Loans 

Year 2011 

Individuals 36% 

Companies 64% 

Banking 


The priority of Mercantil Servicios 

Financieros, through Commercial and Personal Banking was to improve internal processes 

and products to satisfy the financing needs of different participants in society more 

efficiently, and to continue to enhance quality of service both in the international market, 

emphasizing Mercantil Commercebank's presence in the United States, and also in the 

Venezuelan market with Mercantil, C.A. Banco Universal through the High Net Worth and 

Mass Market segments of Personal Banking and the Middle Market and SME segments of 

Commercial Banking. 

At the close of 2011 Commercial and Personal Banking represents 80% of the total deposits 

of Mercantil Servicios Financieros with a year-end total of Bs 63,407 million (US$ 14,780 

million), where Mercantil Commercebank's contribution was Bs 18,285 million (US$ 4,262 

million) and in Venezuela it was Bs 45,122 million US$ 10,518 million), making it the area with 

the highest volume of deposits in Mercantil Servicios Financieros. The bank's deposits are 

made up as follows: Personal Banking 69% and Commercial Banking 31%, which together 

accounted for 32% growth compared to 2010. 

In 2011 the bank furthered its objective to maintain the efficient utilization of its financial 

resources, obtaining an intermediation margin of 70% at the close of December 2011, five 

points higher than in 2010. This was the result of the segments' efforts to place commercial 

loans, improving loan portfolio performance 43% to Bs 44,256 million. 

Mercantil Personal Online Banking in Venezuela was the most consolidated channel in terms 

of client preference having attained the largest volume of transactions accounting for more 

than 59% in December 2011, while in the United States Mercantil Commercebank registered 

an increase of more than 8% in registrations with International Personal Online Banking. At 

the close of the year, Mercantil Banco Universal averaged more than 882,489 active personal 

customers and more than 60,000 active commercial clients per month which together carried 

out more than 480 million transactions during the year. 


Personal Banking 

Deposits 

Year 2011 

Mercantil Banco Universal 67% 

Mercantil Commercebank 33% 

Personal Banking 

Loans 

Year 2011 



Personal Banking in the United States has 17 banking centers, 15 in South Florida, one in New 

York City and one in the center of Houston. This banking segment in Venezuela has a customer 

base of over 3.6 billion clients served through 271 offices, by 122 sales executives for the High 

Net Worth segment, 867 Sales and Service representatives for the Mass Market segment, and 

the Mercantil's Ally network for the Majorities segment exceeded 270 alliances made up of 

Correspondent Desks and Trading Points where Mercantil's clients are offered a range of 

financial products and services. 

Personal Banking deposits at Mercantil Servicios Financieros totaled Bs 43,697 million (US$ 10,186 

million) which accounts for 69% of the deposits of Commercial and Personal Banking. 

Mercantil Commercebank contributed Bs 14,527 million (US$ 3,386 million) to this amount, a 

year-on-year increase of 3%. Deposits in Venezuela totaled Bs 29,172 million (US$ 6,800 

million), up 49.3% compared to 2010, with 54% accounted for by the High Net Worth segment 

and 46% by the Mass Market segment, and in particular by savings which registered 49.5% 

growth at the close of 2011. 

Mercantil Servicios Financieros' loan portfolio grew 45% or Bs 16,713 million (US$ 3,896 

million), and Personal Banking in the United States increased 3%., thanks in particular to the 

launch of various advertising campaigns addressed at small businesses, offering them 

financing solutions to grow and expand their businesses. In Venezuela this segment's loan 

portfolio was Bs 15,574 million, up 50.5 % compared to 2011, with 62% accounted for by the 

High Net Worth segment and 38% by the Mass Market segment. This performance in 

Venezuela was driven by the 24-month financing program which strengthened the strategy 

to create alliances with client communities. The Credit Card product with its parallel lines 

accounted for a significant proportion of loan portfolio growth. 

This drive to grow the Credit Card product in Venezuela was based on strategies designed to 

foster loyalty and customers' preference for the product. Four promotions consisting of raffles 

for trips and vehicles were launched and announced through the mass media and direct 

media. Thanks to these and other initiatives designed to support the sale of credit cards, 

20.1% participation was achieved, compared to 17.5% at the close of 2010. 

During 2011 in Venezuela, implementation of the strategy to include the unbanked sector of 

the population continued. The Mercantil Aliado network exceeded 270 alliances made up of 

Correspondent Desks and Trading Points, located in low-income communities in Anzoátegui, 

Cojedes, Carabobo, Falcón, Yaracuy, Mérida, Nueva Esparta, Bolívar and Monagas states. Sales 

of products designed for the segment totaled 23,000 Cash Cards and more than 9,500 

Credisan Cards, reaffirming the commitment to include all segments of the population. 


Commercial Banking 

Deposits 

Year 2011 



Commercial Banking 

Loans 

Year 2011 



The Bank’s micro-enterprise activity which functions within the Majorities Segment, continued 

to serve banked and unbanked entrepreneurs (individuals and companies), consolidating the 

relationship by following the development of the business undertaken in the communities. At 

the close of 2011, the degree of compliance achieved for microcredits was 3.7%, versus the 3% 

required, with a portfolio that reached Bs 1,235.3 million. 

Commercial Banking at Mercantil Servicios Financieros closed 2011 with Bs 27,543 million 

(US$ 6,420 million) reflecting 41% growth with 22% accounted for by the United States and 

78% by Venezuela. This segment at Mercantil Commercebank successfully enhanced the credit 

approval process which makes it possible to safeguard asset quality and increased 

competitiveness. The Commercial Real Estate unit was also successful in reducing high-risk 

rated loans. Loan programs for small business were implemented in order to maintain operations 

and expand or make major purchases. 

This banking segment in Venezuela increased its portfolio by 63.6% at the end of 2011. The SME 

segment registered significant growth of 76% and the Middle Market segment 24%, consistent 

with the strategy to achieve higher growth in the small and medium enterprise segment, based 

largely on the program for financing working capital under competitive conditions. This made 

it possible to strengthen leadership in the Financial System, based on strong loan portfolio 

growth and the significant contribution towards compliance with the compulsory loan portfolio. 

Deposits in Mercantil Servicios Financieros by Companies produced 37% growth by Bs 19,710 

million (US$ 4,594 million) at year end. This banking segment in Venezuela experienced 50.8% 

growth compared to 2010, mainly due to the increase in Sight Deposits. At the close of 2011, the 

SME segment contributed to this growth with 83% of the deposit portfolio, while the Middle 

Market accounts for 17%. The Business Banking segment in the USA implemented deposit 

solutions for commercial clients, such as cash management to facilitate the secure processing 

of banking transactions by companies, and thus satisfy clients' needs in that market. 

Commercial Banking in the Venezuelan market closed 2011 with more than 145,000 clients; 

13,464 are affiliated to the Pronto Crédito Empresarial products, 12% are Middle Market clients 

and 88% SME clients. These, along with Corporate Credit Cards used to make small purchases 

and pay company expenses, enable their needs both in terms of working capital and 

investment to be met. 


At the close of 2011, Commercial Banking in Venezuela has more than 67,000 companies 

affiliated to Mercantil Commercial Online Banking. Along with this effort, the derivation 

strategy managed to reduce the number of transactions carried out by the SME and Middle 

Market segments at banking centers by more than 220,000. The companies in those segments 

have carried out more than 4.3 billion transactions to pay services, domestic taxes and 

suppliers through Mercantil Online Companies and to make transfers between accounts. This 

represents more than 74 % of the volume of transactions through this channel compared to 

December 2010. 

Through Commercial Banking, Mercantil continued to support efforts by Venezuelan 

companies to strengthen their competitiveness and at year end 50% of the program agreed to 

between Mercantil and Conindustria (the Venezuelan Confederation of Industries) in the 

amount of Bs 1 million to cover between 100 and 120 additional companies during the period 

2010-2013, had been disbursed. This program, in force since 2003, has managed to foster the 

participation of 287 companies up to 2011 with a contribution in excess of Bs 1 million . 

Continuing with its strategy to foster self-management and the use of electronic channels for 

transactions, it set up Self-Service Areas in three of its offices: Principal, El Rosal and Tolón. In 

this area clients can use specialized equipment to deposit cash and checks, and traditional 

ATMs for withdrawals, transfers, queries and other operations, and the Mercantil Direct Line 

to talk to the Mercantil Call Center (CAM). 


Global Corporate and Investment 

Banking / Loan Portfolio 

Year 2011 

Corporate/Oil and Gas 71% 

Financial Institutions 29% 

Global Corporate and Investment Banking 

During 2011 Global Corporate and Investment Banking focused its strategy on the continuous 

improvement of quality of service for its clients around the world through the Corporate, Oil and 

Gas, and Financial Institutions segments at Mercantil Banco, Mercantil Commercebank and 

Mercantil’s other units. 

To maximize the organizational changes made, these have been complemented with actions 

aimed at improving client management, account plans and performance management, 

standardized everywhere. 

Both in Venezuela and the United States and in the different countries where Mercantil operates, 

Global Corporate and Investment Banking’s investments contributed to the closing balance for 

2011. Investments totaled Bs 15,488 million (US$ 3,602 million). In terms of total deposits, 

Corporate and Investment Banking culminated the year with a total of Bs 16,777 million (US$ 

3,902 million). 

At the close of 2011, Global Corporate and Investment Banking’s maintained commercial relations 

with more than 1,178 economic groups at Mercantil Banco Universal and over 439 economic 

groups in the United States and Latin America served by Mercantil Commercebank, N.A. 

In 2011 the implementation of the segmented value proposal aimed at Corporate and Investment 

Banking’s clients continued its course, with product areas being strengthened to cover emerging 

needs through the Corporate Products, Corporate Finance and Capital Market units. 

Global Corporate and Investment 

Banking / Deposits (including investments 

sold under repurchased agreement) 

Year 2011 

Corporate/Oil and Gas 89% 

Financial Institutions 8% 

Public Sector 3% 


Corporate Banking 

During 2011, the total deposits of Mercantil’s corporate clients in the different parts of the world 

where Corporate and Investment Banking provide their services, grew 46% to Bs 13,678 million 

(US$ 3,181 million) at year end. Due to the growing money supply in Venezuela, 98% of total 

deposits corresponded to Corporate Venezuela, which handled this situation through a strategy, 

coordinated with the Institution's Treasury, to ensure profitability for our clients. 

Corporate and Investment Banking’s loan portfolio in 2011 increased 61% (exchange rate impact) 

compared to 2010, closing the year at Bs 9,327 million (US$ 2,169 million). This growth was in 

keeping with the risk policies established by institution, given the existing market conditions, 

especially in the United States and Latin America at the end of 2011. 

Oil and Gas 

The oil sector’s loan portfolio totaled Bs 1,662 million (US$ 386 million) at the close of 2010, which 

reflects 28% year-on-year growth. This growth was heavily impacted by growth in Venezuela 

which was 74% (to Bs 903 million / US$ 210 million) given that there was a reversal in the market 

conditions in Venezuela, increasing client activity and restructuring in line with the new risk 

situation of the sector's new operations. 

The sector’s deposits in Mercantil amounted to Bs 1,126 million (US$ 262 million), which 

represents a 17% year-on-year reduction in US$. The sector’s deposits in Venezuela grew 43% to 

Bs 671 million (US$ 156 million) at the close of 2011. 

Financial Institutions and Institutional Relations 

Within the global financial environment, the Financial Institutions and International Relations 

segment Unit handled relations with correspondents in keeping with the risk parameters of 

Mercantil Servicios Financieros. In Venezuela the Unit maintained better volumes of assets and 

liabilities of Bs 79 million and Bs 1,309 million respectively, emphasizing cross-selling of products 

and services to insurance companies, banks and diplomatic organizations. 

There was increased activity in the Latin American region focused on strategically maintaining 

our level of investment, always in line with the risk perception of these markets. This effort led 

to the closure of US$ 1,028 million in loans, which represents a 4% year-on-year reduction, while 

maintaining an impeccable loan portfolio ratio. 


The Unit managed to maintain important credit facilities in the case of Mercantil Services 

Financieros’ legal vehicles around the world and was able to continue to meet all its clients’ 

requirements with respect to trade finance operations. 

The International Relations Unit also held various talks, seminars and conference for 

Mercantil’s customers and officers to help pinpoint opportunities and threats for their 

business and activities. 

Institutional Banking 

The Institutional Banking Sector Unit focused its efforts during 2011 on optimizing the public 

sector’s client portfolio. This led to a reorganization and the subsequent incorporation of new 

clients in the portfolio traditionally handled by this unit. 

During 2011 emphasis was placed on automating the processes of State companies and 

institutions which resulted in a preference for electronic channels and benefitted the parties by 

reducing the operating risks associated with the volumes handled and substantially lowering the 

transaction costs associated with these clients, all of which increased profitability per client. 

At the close of 2011, deposits by the Institutional Banking segment in Mercantil Banco Universal 

were Bs 627 million, made up of 1.1% of the Institution's total deposits. In addition, the 

government deposits market accounts for a 0.7% of the Venezuelan financial system. 

That level of penetration means that Mercantil Banco Universal now serves more than 140 

different kinds of government and state institutions, including PDVSA, with a wide range of 

products such as: payroll services and payments to suppliers; domestic tax collection; investment 

trust funds, managed funds and pension funds. 

Corporate Finance and Capital Market 

Through the Mercantil Merinvest subsidiary, Mercantil’s Corporate Finance and Capital Market 

sector remained active in the area of fixed-income investments in the primary market where 

volumes were lower during 2011. 

Mercantil Servicios Financieros continued to receive support for the restructuring of its issues of 

unit and long-term fixed income securities. The Institution’s requirements for financial advice, 

particularly management of the Share Repurchase Program were also met. 


Corporate Products 

The Deposit Products Unit continued with its strategy to divert transactions towards 

electronic channels with the sale of specialized products, increasing cross-selling to 2.95 

deposit products per corporate client. During the year work the Unit furthered the process 

of affiliating clients to the Security Circle to minimize the risk of fraud with checks. It also 

reformed the Corporate Deposit service following implementation of the new check clearing 

process through images and elimination of the Financial Route. 

During 2011 Mercantil remained the benchmark institution among Venezuela's private banks 

in the area of trade finance with accumulated transactions in the order of US$ 3.5 billion in 

imports and imports. Once again we handled more foreign exchange operations through 

CADIVI than any other operator in Venezuela, in terms of volume and total amount (US$ 4.9 

billion): at the close of the year the bank's participation was 20.3% and it had a two percentage 

point advantage over our closest competitor. 

The Corporate Products Unit continued to implement the Institution's strategy to participate 

in and sponsor companies in the segment, providing support to essential areas in order to 

strengthen corporate responsibility. The 2011 edition of the Ideas Competition was held, 

emphasizing Mercantil’s commitment to the country’s entrepreneurial culture, coordinating 

its organization and development through this Unit. 


Excess Liquidity and Interbank Market 


65,000 

60,000 

55,000 

50,000 

45,000 

40,000 

35,000 

30,000 

25,000 

20,000 

15,000 

Finance 

Mercantil’s Treasury strategies focused fundamentally on money supply management, 

considering current risks in the money market and in the domestic and international 

investment market. In view of the expansionary policy of the Venezuelan Central Bank as the 

monetary authority, and the regulatory climate in Venezuela, the surpluses liquidity balances 

in the domestic financial system increased compared to 2010, while interest rates remained 

stable within the controls established. 

The surplus reserve ratio plus BCV open market operations in the domestic financial system 

were Bs 56.3 billion, representing 47% year-on-year growth. 

Jan-10 

Feb-10 

Mar-10 

Apr-10 

May-10 

Jun-10 

Jul-10 

Aug-10 

Sep-10 

Oct-10 

Nov-10 

Dec-10 

Jan-11 

Feb-11 

Mar-11 

Apr-11 

May-11 

Jun-11 

Jul-11 

Aug-11 

Sep-11 

Oct-11 

Nov-11 

Dec-11 

Excess on Reserve Requirements 

Interbank rate 

MBU’s market share of excess on Reserve Requirements 


23% 

20% 

18% 

15% 

13% 

10% 

8% 

5% 

3% 

0% 

Rate and market Share

In the Venezuelan money market, the Mercantil Banco Universal subsidiary maintained its 

active participation through interbank operations and absorption instruments offered by the 

Venezuelan Central Bank. 

In the overnight market trading fell 42% compared to 2010, averaging Bs 564 million 

compared to Bs 1,352 million in 2010. The overnight market in the second half of the year does 

not exceed average annual levels of 0.27%. 

In 2011, the government's strategy focused on investing significant amounts of domestic and 

foreign public debt, raising the level of indebtedness to finance spending and generate 

additional income for the Treasury. At the end of January, the Ministry of Economics and 

Finance resumed public auctions of 91-day Treasury Bills which yielded an average of 9.7% 

per annum. Auctions of Bs 68.6 billion worth of government bonds, which included Variable 

Rate Bonds (Vebonos 2016 and 2017) and Fixed Rate Bonds (TIF 2015), were held and Bs 43.3 

billion (42%) actually awarded. 

Several issues of dollar-denominated debt payable in bolivars were issued. In February 

Petróleos de Venezuela, S.A (PDVSA) issued Amortizable Bonds maturing in 2022, for US$ 3 

billion with an annual coupon of 12.75% payable semi-annually. With regard to the Sovereign 

Debt, the International Amortizable Sovereign Bond maturing in August 2031 was issued in 

the amount of US$ 4.2 billion with a coupon of 11.95 % payable semi-annually. In October the 

International Sovereign Bond maturing in 2026 was issued in the amount of US$ 3 billion with 

a coupon of 11.75 % payable semi-annually. Mercantil Banco Universal participated actively 

as an intermediary for its clients in each of these auctions. Likewise Mercantil Banco Universal 

participated as a buyer in two special issues: in July BANDES dematerialization participation 

certificates (Certificados de Participación Desmaterializados - CPD) were issued in the amount 

of Bs 8.9 billion at a fixed annual interest rate of 3.75% payable semi-annually. Then in 

November BANAVIH special mortgage securities maturing in 2021 were placed in the amount 

of Bs 6 billion at a variable annual interest rate of 2% payable semi-annually. 


Federal Reserve Interest Rates and US Treasury Bonds 

4.5 % 

4.0 % 

3.5 % 

3.0 % 

2.5 % 

2.0 % 

1.5 % 

1.0 % 

0.5 % 

0.0 % 

Jan-10 

Feb-10 

Treasury 2 years* 

Treasury 10 years* 

Fed Funds** 

Mar-10 

Apr-10 

May-10 

Jun-10 

Jul-10 

Aug-10 

Sep-10 

Globally, 2011 was a year of constant challenges for foreign markets. The Dow Jones index 

appreciated 5.53%, the value of European markets continued to slide and US Treasury Rates 

kept falling as the markets took refuge in the face of European financial instability. The FED 

maintained its overnight rate unchanged at 0.25% and purchased long-term instruments in 

order to keep mortgage rates at a level capable of incentivating and reactivating the real 

estate market. According to recent announcements, 0.25 can be maintained until the end of 

2014 to guarantee a continuous economic recovery. 

During 2011 the United States lost its AAA credit rating by Standard & Poor’s. Despite the 

drop in rating, the US market saw how the 10-year treasury rate fell below 2% for the first 

time in history. Further, the inter-bank credit risk, reflected in the LIBOR rates, started to rise 

and the TED Spread culminated the year at 57 basis points compared to 19 basis points at the 

start of 2011. 

European sovereign bond yields increased in almost every country. Some exceptions, as in 

the case of Germany and Switzerland, became refuges and maintained their triple-A rating. 

Almost all the ratings of the countries in the European Union went down and they have had 

to take severe austerity measures to solve the budgetary deficits accumulated for years. 

Despite the turbulent financial market, a lot of US corporations took record earnings in 2011 

and many of them were able to refinance existing debt at historically low rates; in other cases 

the low levels activated acquisitions. 

Oct-10 

Nov-10 

Dec-10 

*Treasury 2 years and 10 years: US Treasury bonds, 2 and 10 years maturity 

**Fed Funds: Federal Reserve interest rates 

The TED spread is the difference between the three month Treasury Bill interest rate and the three-moth LIBOR interest rate. It measures the 

degree of riskness of the bank lending market. 

Jan-11 

Feb-11 

Mar-11 

Apr-11 

May-11 

Jun-11 

Jul-11 


Aug-11 

Sep-11 

Oct-11 

Nov-11 

Dec-11

Portfolio of Investments Available for Sale and Held to Maturity 

Mercantil Commercebank, N.A. 

Thousand of US$ 

1,400,00 

1,200,00 

1,000,00 

800,00 

600,00 

400,00 

200,00 

0 

US Agendes 

Guaranteed 

Government 

Sponsored 

Enterprises 

Short Term 

Investments 

With respect to the US real estate market, rates for 30-year residential financing fell to 4%, 

bringing with it the reactivation of sales in different parts of the United States and contributed 

to the gradual fall in inventories of existing homes. 

In the face of this global outlook, the US Treasury was responsible for handling liquidity and 

interest rate risk for Mercantil Commercebank and all MSF subsidiaries abroad. During 2011, 

the US Treasury furthered its strategy to diversify assets; certain floating mortgage 

instrument positions were replaced by fixed rate and corporate bonds. The corporate bond 

purchasing process was undertaken through a program that incorporates guidelines for 

different payment capacity indicators. All the instruments belong to the investment grade 

credit sector. 

The majority of the portfolio instruments are guaranteed by the US government as shown 

below: 

Other 

Investments 

In relation to liquidity, the US Treasury continued to optimize the management of inter-bank 

deposits, reflected in the Federal Reserve account, culminating 2011 with US$ 169 million for 

Mercantil Commercebank. Liquidity ratios remained strong at 29% compared to available 

securities and clients' interbank deposits. Good investment portfolio management produced 

US$ 10.5 million in annual earnings. 

The sensitivity to rising interest rates led to an increase in net interest income for Mercantil 

Commercebank; the total duration of assets remained within a two-year gap; and the 

Economic Value of Equity (EVE) was US$ 705 million at year end. All risk measurements were 

within the parameters and limits approved by the Assets-Liability Committee. 

In 2011, Mercantil Commercebank's Finance Committee continued and intensified its balance 

sheet composition reporting and margin transaction analyses carried out by the different 

business units. This process has facilitated the timely revision of the net interest margins 

generated in each of the asset and liability operations, as well as compliance with the 

minimum profitability targets established by senior management. 


Private 

Mortgages 

December 2010 

December 2011 

Average 2011

Insurance 

Mercantil Seguros is a subsidiary of Mercantil Servicios Financieros in Venezuela. Premium 

collection in 2011 registered 30.4% year-on-year growth, closing at December 31 with Bs 5,234.4 

million in total earned premiums representing 11.3% of the market. These figures position 

Mercantil Seguros second in the insurance market. The leading company has 13.8% of the 

market. 

The year ended December 31, 2011 reflects Bs 4,814 million in assets and Bs 1,469 million in 

liabilities and its solvency and non-committed equity requirement meets the regulations in 

force. 

The Board of Directors declared Bs 195 million in cash dividends for 2011 which it paid in 

January. 

Earnings at year end totaled Bs 461.2 million, representing 13.6% year-on-year growth as a 

result of technical and financial transactions. Figures for the year show a significant increase 

in items corresponding to expenses for parafiscal contributions as a result of new regulations 

affecting the insurance sector and business activity in general. At year end technical reserves 

totaled Bs 2,570 million, and investments representing technical reserves totaled Bs 3,587 

million. 

The figures presented show the total amount of statutory and voluntary reserves, including 

outstanding claims reserves. The liquidity ratio is in line with the extent of the commitments 

with insured, insurance advisors, providers and reinsurers. 

In 2011 the distribution of the premium portfolio in the different business lines closed at 50% 

for the automobile business, 42% for health insurance and 8% for property/casualty. 

During this period the Mercantil Seguros subsidiary developed a business strategy focusing on 

the decentralization of operations, making regional offices more autonomous and expanding 

the physical infrastructure of the office network, in order to increase the branches' market 

share. New branches were opened in San Fernando de Apure and San Carlos and the Western 

Venezuela Regional Office in Maracaibo was fully refurbished. 

Products were adjusted to guarantee positive technical results and compliance with the goals 

in terms of earned premiums. The migration of the bancassurance portfolio culminated 

successfully in conformity with the new Insurance Activity Law. The technical notes on the 

products included in the adjustment plan were also completed and sent to the 

Superintendency of Insurance Activity. 

Improvements to the services provided to clients and suppliers for payment of indemnities 

include implementation of the emergency self-management model for private hospitals, 

automatic booking of appointments for automobile services and shorter Mercantil Automotive 

Service attention times. Operations also began at a new mobile service unit in the La Trinidad 

district of Caracas. 

Facilities were incorporated into virtual channels at the service of customers, insurance 

advisers, providers and employees. The invoice-digitalization process was initiated to facilitate 

the payment of suppliers and implement an automated collection system. 


Private Banking 

and Wealth Management 

In 2011, Private Banking and Wealth Management focused on improving its products and 

incorporating technological innovations in order to continue to give clients secure and easy 

access to Wealth Management products with the backing of Mercantil's sound platform and strict 

adherence to regulations. 

Through this effort, electronic banking functionalities were incorporated and the processes 

enhanced, all of which enabled a differentiated value proposal to be delivered. 

Private Banking and Wealth Management is made up of the Private Banking segments and the 

Trust Fund, Mutual Fund and Securities Market businesses in: Venezuela, the United States and 

Switzerland, offering clients a broad spectrum of options to meet their financial needs. 

In 2011, the Private Banking segments in each region continued to serve its clients, providing 

expertise and a strategic vision capable of identifying and taking full advantage of the 

opportunities available to meet customers' needs. 

In the area of business, during 2011, the Securities Market Unit in Venezuela was characterized 

by the consolidation of the Mercantil Securities Account as the point of access to government 

debt securities through Mercantil, C.A., Banco Universal, with 106% growth of affiliations over 

the period. Since its creation in 2010, the Mercantil Securities Account has served more than 

107,460 clients, helping them participate in the primary and secondary market, and carry out 

operations through the foreign currency securities trading systems established by the Venezuelan 

Central Bank. The innovations incorporated in 2011 include, in particular, placement of orders 

with SITME through Mercantil Commercial Online Banking, which has facilitated the process for 

our corporate clients.. 

Brokerage and Advisory services in the United States are offered through Mercantil 

Commercebank Investment Services, Inc. (MCIS), a subsidiary of Mercantil Commercebank, N.A. 

MCIS clients can buy, sell and hold in custody, securities and investment products in multiple 

markets and currencies. 

In 2011, MCIS increased the volume of client assets by 11% and its income from services by 30%. 

In Venezuela, Mercantil Servicios de Inversión offers the portfolio management service to third 

parties. This grew 25% during 2011. The Mercantil subsidiary Sociedad Administradora de 

Entidades de Inversión Colectiva, responsible for managing the mutual fund Portafolio Mercantil 

de Inversión de Capital Abierto, C.A. maintained its position as industry leader during the year 

and increased its equity by 45%. The Plan Crecer Mercantil product registered 33% growth at year 

end. The clients of both products now have a electronic transaction notification service. 


The trust fund is available to clients in Venezuela through Mercantil Banco Universal, and in 

the United States through Mercantil Commercebank Trust Company, N.A., (MCTC), a fiduciary 

bank regulated and supervised by the Office of the Comptroller of the Currency (OCC). At 

year end , Fideicomiso de Mercantil Banco Universal registered 11.2% asset growth and an 

increase in earnings from commissions of 3.2% compared to 2010. Its achievements include 

simplification of the technological platforms which resulted in a better quality of services and 

faster response times. The effort was well worthwhile, as can be seen from the result of the 

survey conducted by Consultores 21, in which the Bank ranked extremely well in most of the 

attributes evaluated. One of the innovations was the introduction of sms notifications which 

are sent to customers' cell phones. 

In the United States, MCTC offers trust services designed to safeguard its clients' equity through 

efficient structures and customized equity management solutions. MCTC has a range of possible 

solutions in many countries and a multilingual staff. 

As a result of the redimensioning process implemented in the last quarter of 2010, at year end 

MCTC registered a 1% reduction in consolidated assets under management and a 5% increase in 

its customer base compared to 2010. 


José Ramón Sánchez 

Las tres alegres comadres, 1984 

Acrylic, cardboard and textile on paper 

99.8 x 150 cm

Quality of Service and 

Operating Efficiency 

The distribution channels of Mercantil 

Servicios Financieros through its subsidiaries Mercantil Banco and Mercantil Commercebank at 

year end 2011 are made up of 288 banking centers, 1,324 ATMs, 125 Call Center operators, 523 IVR 

ports, 52,544 points of sale that include physical, merchant and e-commerce points of sale; in 

addition to Personal and Commercial Online Banking services. There are also 177 customer service 

banking points for the majorities segment, through 60 Correspondent Desks and 177 

Correspondent Trading Points. 

Major Projects in the field of operational 

efficiency and enhanced quality at 


In 2011, Mercantil continued with the process to incorporate chip technology into its debit and 

credit cards, ATMs and points of sale. At the close of 2011, more than 2,698,092 debit cards with 

chip technology had been delivered to clients. In this regard over 93% of the transactions in 

2011 were carried out securely at ATMs and 95% at points of sale. In the case of credit cards, a 

total of 1,238,870 with chip technology were issued, and at year end around 72% of them had 

been distributed to clients. 

With regard to Personal Online Banking, in 2011 new functionalities were introduced to enable 

clients to open second deposit accounts at Mercantil Banco (checking account and Maxima 

account), and authorized online transfer amounts to third parties at Mercantil and other banks 

were increased to twice the former limit . Additionally, the amount that Mercantil clients can pay 

into their credit cards was increased to the limit of the outstanding balance. 

Online banking security was reinforced though the control of concurrent sessions by different 

users and the time of the last connection was included on the start page. 

Commercial Online Banking offers a new service that allows corporate clients to place orders 

to purchase foreign exchange with SITME, and it also made enhancements to facilitate the use 

of user profile management functionalities. 


In 2011, options or service functionalities were implemented in the Mercantil Call Center's (CAM) 

Automated Telephone Banking (IVR) system to create a temporary secret password that is 

subsequently changed at an ATM, in the event of a client losing it or if it is blocked as a result 

of repeatedly unsuccessful attempts at an ATM. This allows users to manage their own 

passwords without having to go into a branch. It is also possible to put a stop on a credit card 

in the event of theft or loss, to confirm checks drawn on corporate accounts without a corporate 

password, and to obtain information about the available balance on Diners cards. 

The most important projects undertaken at our Mercantil Commercebank subsidiary in 2011 

include improvement of unsecured commercial loan processes, thereby reducing the time it 

takes to process them by 53.28%. 

Improvements were also made to the processes for opening international commercial accounts 

through the automation of functionalities for processing them through the OMP application. 

In addition restoration of the New York branch was completed; it is one of the city's landmark 

buildings. The branch was equipped with a contingency center to guarantee operations in the 

event of a breakdown in activities at other offices in the United States. Hence a data storage 

centre was implemented to back up the bank's information in case of a natural disaster and so 

be able to guarantee operational continuity. 


Gerd Leufert 

Monocromo blanco, 1961 

Oil on wood 

80 x 60 cm 


Alberto Brandt 

Untitled, around 1955 


51.2 x 40.2 cm

Human Resources 

The strategic focus of the human resources 

related activities of Mercantil Servicios Financieros and its subsidiaries was aimed mainly at 

maintaining the company's Organizational Climate, promoting training and the individual 

development of all the employees, complying with the legal and contractual obligations and 

improving efficiency indicators. 

Measurement of the organizational climate during the year was carried out with the support of 

the Great Place to Work Institute. A record 85% of employees, compared to recent years, took 

part in the survey. The results of the survey revealed that 87% of the people at Mercantil consider 

the company and its subsidiaries in Venezuela and abroad to be a great place to work. The survey 

highlighted the following areas as the company's strongest points: the honesty and ethics of its 

leaders, and the pride its workers take in the company and in their work. 

As of December 31, 2011, Mercantil Servicios Financieros and its subsidiaries employ 9,381 people 

(up from 9,034 at the close of 2010). Most of the new members of staff were employed in the 

office network of the Mercantil Banco Universal subsidiary with a view to achieving even better 

levels of customer service. Ninety-one percent of Mercantil's employees work in Venezuela and 

9% abroad, most of them at Mercantil Commercebank in the United States. 

Mercantil's training programs reached a consolidated level in excess of 55,000 participations 

(34,000 in 2010) by workers from the different categories of its training programs, with 

particular emphasis on customer service, technical training, technology and compliance. More 

than 10,000 workers took part in different training events organized during the year. 

Worthy of mention during the year were the results of the Employee Engagement program 

carried out with the Mercantil Commercebank subsidiary on career development and 

identification of workers' competencies. Also through the "We are Mercantil" (Somos Mercantil) 

portal, the Mercantil Banco Universal and Mercantil Seguros subsidiaries implemented the new 

facility that allows any employee to apply for job vacancies in different units of the organization; 

this fosters and promotes the acknowledgment of talent and internal professional training. 

Distance learning activities and processes continued to be strengthened, thereby increasing 

widespread worker training and participation . 

To strengthen the quality of life of employees and their families, different Institutional Seminars 

were organized in the area of preventive health, through sports and recreational activities. 

Lastly, during 2011, the unions of Mercantil Banco Universal and Mercantil Seguros have 

implemented their process to renew their authorities with a view to negotiating the Collective 

Bargaining Agreements planned for the second half of 2012. 


Harry Abend 

Relieve, 1964 

Bronze 1/3 

62,5 x 146 x 25 cm

Risk Management 

Good risk management is key to Mercantil’s 

competitive strategy and its ability to generate value. In 2011, anticipating the impact of the 

crisis in global markets, Mercantil’s Risk Management Unit took various steps to mitigate its 

effect on its subsidiaries' different portfolios. 

In 2011 Mercantil intensified its effort to strengthen the group’s risk culture throughout the 

organization, aligning its action and behavior to the strategic objectives set by consolidating 

its corporate values, clearly understanding risk, training staff, and developing advanced 

internal models and tools, process automation and IT implementation. 


Credit Risk 

Breakdown of Credit Risk by Country and Type of Customer 

30 % 

25 % 

20 % 

15 % 

10 % 

5 % 

0 % 

Other 

Companies 

Venezuela 

USA 

Other Countries 

Governments 

Individuals 

Venezuelan 

Central Bank (BCV) 

Credit risk management is conceived globally at Mercantil and its function responds to the 

common principles and organizational criteria of its different subsidiaries. A series of credit 

policies, procedures and management tools is available to develop good global risk 

management; these are constantly evolving to guarantee a better and more sophisticated 

process. 

Credit risk management at Mercantil was instrumental in keeping loan portfolio growth to an 

acceptable level of risk in 2011. The institution’s credit risk exposure was Bs 74.9 billion, a 

year-on-year increase of 35.2% from Bs 55.4 billion. 

The greatest year-on-year variation was the increase in Venezuela's risk in relative terms, 

compared to other countries. This varied by 7 percentage points (from 65% to 72.4%), mainly 

due to credit portfolio growth. 

Mercantil Servicios Financieros’ global presence is concentrated in Venezuela where 71.7% of 

its credit risk exposure is, followed by the USA with 20.2%, and other countries with 8.1%. 

The following graph shows in detail how total credit risk exposure is distributed (which 

includes direct, contingent and issuer risk) by country and type of client, and shows the 

breakdown of credit risk and other risks as of December 2011. 

Large 

Corporations 

Financial 

Institutions 


US Government 

Sponsored Agencies 

Other Assets 

Real Estate 

Loans

Distribution of Mercantil’s loan portfolio by economic activity 

Activity 

ELECTRICITY, GAS AND WATER 

MININ EXPLOTATION 

AND HIDROCARBUROS 

TRANSPORTATION, WAREHOUSING 

AND TELECOMUNICATIONS 

SOCIAL AND PERSONAL 

COMMUNITY SERVICES 

NO SPECIFIED ACTIVITIES 

CONSTRUCTION 

MANUFACTURING INDUSTRIES 

AGRICULTURE, HUNTING, 

FISHING AND FORESTRY 

FINANCIAL INSTITUTIONS 

AND INSURANCE 

TRADE, 

RESTAURANTS AND HOTELES 

0.37% 

1.09% 

2.72% 

The distribution of Mercantil’s loan portfolio by clients’ economic activity is shown below: 

5.82% 

6.24% 

11.69% 

0% 5% 10% 15% 20% 25% 

13.90% 

16.10% 

17.90% 

An analysis of Mercantil’s loan portfolio by economic activity shows that 83.8% of the loan 

portfolio is distributed as follows: Wholesale and retail trade, Restaurants and Hotels, 24.2%; 

Financial Establishments, Insurance Companies and Others, 17.9%; Agriculture, Hunting, 

Forestry and Fishing, 16.1%; Manufacturing Industry, 13.9%; and Construction, 11.7%. 

At the close of 2011, the 20 largest debtors represent 3% the total loan portfolio. 


24.17%

Market Risk 

A financial institution is subject to market risk when the market's conditions deteriorate and 

affect the liquidity and value of the financial instruments in its investment portfolios or 

contingent positions, resulting in a loss for the institution. There are two basic types of market 

risk: Price Risk and Liquidity Risk. 

Each market factor and its effect on the organization’s risk profile is measured daily. To accomplish 

this, Mercantil has a technological infrastructure and early warning systems Mercantil’s. Treasury 

employs this technology to monitor and track market risk. It then produces a series of reports for 

its risk-taking units and the corresponding management levels. 

Mercantil analyses use different methodologies for measuring market risk: Value at Risk (VaR), 

Financial Margin Sensitivity due to interest rate changes (Repricing Gap, Risk Gains), Liquidity 

Gap and a series of other effective risk management measures and ratios. 

To complement the VaR, simulations are run, adding stress situations based on historic extreme 

market conditions, to estimate the Treasury unit potential loss if market conditions deteriorate. 

Market Risk in 

Trading Activities in 2011 

Mercantil’s trading activities were carried out in the Venezuelan fixed-income securities market 

denominated in bolivars and in fixed-income securities in emerging markets, the latter made up 

of Venezuelan government debt securities. 

Trading in the bolivar-denominated fixed-income securities market 

During 2011 the program of government debt issues denominated in bolivars and foreign currency 

in the primary market was maintained at Bs 81.9 billion (Bs 24.5 billion, and Bs 57.4 billion in 

government bonds at a fixed or variable coupon rate, depending on Treasury Bill yield). Bs 11.3 

billion of this amount corresponded to a special offering by public sector banks. The effective 

average yield of these securities was 17.4% in 2011 was , compared to 15.4% in 2010 . After 

deducting the sum of the securities maturing in 2011 (Bs 29 billion), the net increase in 

indebtedness was Bs 52.9 million. The secondary market in national currency was limited by the 

volume of operations observed in the primary market. The annual average risk of those securities, 

measured through volatility, as an annual average went from 1.15% in 2010 to 0.58% in 2011. 

Greater price stability responds to the increase in the amount of debt in local currency sold at 

auction and the growth of money supply (50% more than at the close of 2010). 


Global trading activity on the bolivar-denominated fixed-income securities market maintained 

an average VaR of Bs 272,400 (maximum Bs 1,146.8 million and minimum Bs 92,000) versus 

an average VaR of Bs 124,800 in 2009 (maximum Bs 254,900 and minimum Bs 44,300). 

Trading in fixed-income securities in 

emerging markets 

As far as the sovereign debt in foreign currency is concerned, Venezuela issued US$ 7.2 billion 

in government bonds maturing in 2026 and 2031, while PDVSA issued US$ 3 billion in bonds 

maturing in 2022, in addition to US$ 1,783 billion in bonds maturing in 2013 and US$ 2,394 

billion maturing in 2021, with special conditions of sale. 

During 2011, the price of Venezuelan crude was volatile, similar to 2010 (3.17% versus 3.42% 

in 2010), averaging US$ 100.77/bbl and reached a historic high of US$ 111.24/bbl as of 

December. Even though prices remained higher than in 2010, their behavior was stable, but 

these higher prices also influenced the yields of Venezuelan sovereign bonds, and were lower 

than in 2010, averaging around 100 basis points all along the yield curve. The bonds on the 

short part of the curve closed at an average of 10.91%, while those on the long part closed at 

13.50% (14.60% in 2010). The country's credit risk rating remained Stable, according to risk 

rating agency Moody’s. Standard & Poor’s adjusted its rating from BB- to B+ in August 2011. 

Average VaR for this activity was US$ 1,068,800 in 2011 (maximum US$ 7,235,900, minimum 

US$ 275,900), versus US$ 1,033,900 in 2010, with a maximum of US$ 9,077,800 and a minimum 

of US$ 2,500. This average increase can largely be explained by the auctions of US$ 10.2 billion 

worth of bonds in Venezuela as mentioned above. 

Market Risk in 

Positioning Activities in 2011 

The average VaR of Mercantil’s positioning activities (with 98% confidence) in aggregate terms. 

for the consolidated investment portfolio classified as available for sale was Bs 93,765,000 

(US$ 21.8 million), equivalent to US$ 21.8 million, versus Bs 79,453,000, equivalent to US$ 18.5 

million, in 2010. The reason for the increase in average VaR is that the VaR of fixed income 

positions in bolivars increased as a result of Venezuelan public debt issues in local currency. In 

2011 VaR accounted for 0.6% of the total position in securities maintained on the balance sheet 

as available for sale, while this ratio reached 0.8% in 2010. 


Price Risk Positions of 

Interest Rate Mismatch 

The price risk involved in the mismatches between interest rates is caused by the assets and 

liabilities duration gap. When adverse changes occur in the interest rate market, this gap can 

impact the institution’s financial margin. To manage this risk, Mercantil quantifies the assets 

and liabilities duration gap to reflect the sensitivity of the financial margin to changes in 

interest rates over a 12 month period (in the Venezuelan market 100, 200, 300, 500 and 1000 

basis points are used; while in the US market it is calculated using 100 and 200 basis points), 

and then it measures and compares them against the interest rate limits designed. The 

sensitivity of the financial margin to changes in interest rates caused by their historic 

volatility, the economic value of the capital and an analysis of the duration are also quantified. 

Liquidity Risk 

For Mercantil Servicios Financieros and its subsidiaries, managing and measuring liquidity 

risk is considered a priority within the organization's global risk and business management. 

Mercantil’s Treasury is responsible for liquidity risk, which follows the liquidity policy 

parameters for organizations outlined by the Board of Directors, through the Board of 

Directors Risk Committee, the Global Risk Committee and the Assets and Liabilities 

Committee. The organization’s global liquidity risk environment is monitored periodically 

and is the outcome of the liquidity management process exercised by the Treasury unit in 

each of the financial vehicles in which it participates. 

The Assets and Liabilities Committee meets monthly and must make decisions on the liquidity 

and structure of the financial balance sheet by presenting the evolution and trends of the 

main factors that affect liquidity, measured by a series of tools and reports for optimizing the 

management of assets and liabilities (analysis of liquid assets, short, medium and long-term 

liquidity gap, liquidity indicators; balance sheet structure (evolution of balance sheet items), 

among others. 


Operational Risk 

Mercantil sees operational risk management as fundamental to attaining its objectives, in 

view of today's complex economic environment and dynamic financial activity. The following 

processes were optimized in 2011: identification, evaluation, control, mitigation and reporting 

of operational risks. This was undertaken within the framework of the regulations of the 

regulatory entities and the recommendations taken from best practices. 

Operational risk management follows the comprehensive approach that characterizes it, 

always aiming to combine qualitative and quantitative aspects obtained from preventive risk 

analysis, and timely attention to them through the establishment of corrective actions to 

mitigate any weaknesses detected. 

During 2011 operational risks in the Organization's critical processes were detected and 

assessed, and the information necessary for decision-making was provided, with emphasis 

on the need to follow up action plans for major risk events to minimize their occurrence. 

The comparative study of the behavior of operational risk events over time is a daily 

management tasks required. Using information gathered on events around the world, risks are 

quantified and scenarios analysed to help calculate economic capital, set objectives, and 

control expected losses. 

To help mitigate the Organization's exposure to high-impact risks, the Insurance Policy 

Program was updated. Additionally, the plans for handling different scenarios under the 

Business Continuity Program were updated, technological tests were coordinated, and 

contingency analyses for critical channels and services were undertaken. 

Employees' sensitivity to operational risk is fundamental for ensuring successful risk 

prevention and mitigation. In view of this the Organization continued to strengthen its 

operational risk culture and foster employee commitment in this field at all levels of the 

financial group. 


Maruja Rolando 


Oil on papier-mâché 

47 x 41 cm

Performance of Subsidiaries 

Equity 

Main Activity 

Main Subsidiaries 

(In thousand of Bs.) (1) 

Total Assets 

Investment 


Deposits 

Net Income 

for the Year 

(In millions of US$.) (2) 

Total Assets 

Investment 


Deposits 

Net Income 

for the Year 

Mercantil, C.A. 

Banco Universal 

Bs. 6,373,165 

US$ (2) 1.486 

Venezuelan 

Universal 

Bank 

67,024,211 

11,034,557 

41,974,923 

58,234,600 

1,804,228 

15,626 

2,572 

9,786 

13,577 

421 

Mercantil’s global business includes the Company’s operations in Venezuela and abroad. Its 

management results are presented in the Consolidated Financial Statements Review chapter. 

A summary of Mercantil’s operations carried out through each subsidiary at December 31, 

2011, and prepared in accordance with the accounting standards of the National Securities Superintendency 

(SNV) is presented below. 

Mercantil Servicios Financieros (1) 

(In thousands of Bs. and millions of US$ (2) ) 

as of December 31, 2011 

Shareholders’ Equity Bs. 10,977,160 

Shareholders’ Equity US$. (2) 2,560 

Mercantil 

Commercebank 

Florida BanCorp 

Bs. 2,436,114 

US$ (2) 562 

Commercial Bank, 

Brokerage and 

Trust 

Services 

in the USA 

Mercantil 

Commercebank 

N.A. 

Mercantil 

Commercebank 

Investment 

Services (MCIS) 

Mercantil 

Commercebank 

Trust Company 

(MCTC) 

28,309,765 

9,253,011 

17,630,573 

21,767,729 

85,188 

6,600 

2,157 

4,110 

5,075 

20 

Holding 

Mercantil 

International 

Bs. 724,618 

US$ (2) 169 

International 

Bank 

Mercantil Bank 

(Schweiz), AG. 

(Suiza) 


and Trust Limited 

(Cayman) 

(Islas Caimán) 


Curaçao NV 


(Panamá) S.A. 

2,416,145 

1,373,431 

766,305 

1,831,816 

139,297 


Mercantil 

Seguros, C.A. 

Bs. 1,350,012 

US$ (2) 315 

Insurance in 

Venezuela 

Mercantil 

Merinvest, C.A. 

Bs. 94,431 

US$ (2) 22 

Investment 

Banking Mutual, 

Funds, Trading & 

Brokegare in 

Venezuela 

Mercantil Merinvest 

Casa de Bolsa, C.A. 

Mercantil 

Servicios de 

Inversión, C.A. 

Mercantil 

Sociedad 

Administradora 

de Entidades 

de Inversión 

Colectiva, C.A. 

Other Non 

Financial 

Bussinesses 

Number of Employees 

6,975 

758 

80 

1,516 

34 

18 

9,381 

(1) In accordance with the standards of the National Securities Superintendency. Figures net of elimination resulting from the consolidation process. 

(2) Dollar figures are given for reference only; the balance sheet is converted at the exchange rate at the end of the period (Bs 4.2893/US$ 1 and the income statement at the average exchange rate for the 

period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

563 

320 

179 

427 

32 

4,549,549 

3,200,686 

0 

0 

475,667 

1,061 

746 

0 

0 

111 

81,407 

42,012 

0 

0 

11,743 

19 

10 

0 

0 

3 

Others 

Bs. 28,178 

US$ (2) 7 

315,250 

179,525 

0 

0 

(43,955) 

73 

42 

0 

0 

(10) 

Total 

102,696,327 

25,083,222 

60,371,801 

81,834,145 

2,472,168 

23,943 

5,847 

14,075 

19,078 

576

(1) Dollar figures are given for reference only; the balance sheet is 

converted at the exchange rate at the end of the period Bs 4.2893/US$ 1. 

Exchange control has been in place in Venezuela since February 2003. 

Comments and a summary of the financial statements of Mercantil’s main subsidiaries are 

presented below, based on the accounting standards applicable to each of them, which explains 

why they differ from the consolidated information presented according to the accounting 

standards of the National Securities Superintendency. Mercantil C.A., Banco Universal is 

presented, in accordance with the standards of the Superintendency of Banking Sector 

Institutions; Mercantil Commercebank Florida Bancorp, in accordance with US GAAP; Mercantil 

Seguros, C.A., in accordance with the Superintendency of Insurance Activity, and Mercantil 

Merinvest, C.A., in accordance with the standards of the National Securities Superintendency. 


Mercantil Banco Universal's total assets grew Bs 21,080 million (45.6%) year on year. In 2011 

net loans increased Bs 15,272 million (57.2%) and total deposits increased Bs 19,279 million 

(47.9%) compared to 2010. Loan portfolio quality remained at favorable levels with a ratio of 

past-due and nonperforming loans to gross loans of 0.7% compared with 1.4% of the 

Venezuelan financial system as a whole. The loan portfolio provision covers 615.6% of Past-due 

and Nonperforming Loans (489.1% at December 31, 2010). 

At December 31, 2011 the Mercantil Banco Universal subsidiary ranks fourth in the Venezuelan 

financial system in terms of Total Assets with an 11.4% market share. The leading institution 

has a 15.0% share and Venezuela’s four main banks account for 52.0% of the country’s financial 

system. It also ranks second in terms of agricultural loans, mortgages, loans to the 

manufacturing and tourism sectors, and microcredits, with market shares of 13.2%, 13.8%, 

16.2%, 16.2% and 12.3% respectively. Mercantil Banco Universal is Venezuela's leading bank in 

terms of gross loans and savings deposits with market shares of 15.9% and 20.7% respectively. 

At December 31, 2011 Investments in Securities totaled Bs 11,076 million (US$ 2,582 million) 1 , 

which represents Bs 3,712 million (50.4%) year-on-year growth. As of December 31, 2011, total 

investments in securities are made up as follows: securities issued or guaranteed by the 

Venezuelan government, 68.4%; Certificates of Deposit issued by the Venezuelan Central 

Bank with maturity less than 30 days, 27.5 %; securities issued by the US government and US 

government-backed agencies, 2.6%; and securities issued by the Venezuelan and international 

private sector 1.5%, among others. 

Shareholders' equity grew Bs 1,545 million (33.7%) year on year, reaching Bs 6,128 million at the 

close of 2011. This increase is composed mainly of Bs 2,143 million in accumulated net annual 

income; a Bs 341 million increase in exchange earnings/reserves in accordance with the 

standards of the Superintendency of Banking Sector Institutions due to the change in the 

controlled exchange rate set by the Venezuelan Central Bank for the valuation of Títulos de 

Interés de Capital Cubierto (TICC) bonds, from Bs 2.5935/US$ 1 to Bs 4.2893/US$ 1; a Bs 39 

million increase as a result of recording available-for-sale investments at their market value; 

a reduction of Bs 499 million for cash dividends paid out; and a Bs 513 million decline as a 

result of posting exchange earnings previously recorded in equity pursuant to the instructions 

of the Superintendency of Banking Sector Institutions. 


Mercantil Banco Universal, Consolidated 

Year Ended 


Total Assets 

Investments in Securities 


Deposits 

Equity 

Net Earnings for the Year 

2011 

US$ (1) 

15,702 

2,582 

9,786 

13,885 

1,429 

500 

2011 

bolivars 

67,351,251 

11,075,704 

41,974,923 

59,558,134 

6,127,715 

2,142,731 

Historic figures presented in accordance with the National Securities Superintendency. 

(1) Dollar figures are given for reference only; the balance sheet is converted at the exchange rate at the end of the period Bs 4.2893/US$ 1 and the 

income statement at the average exchange rate for the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

Evolution of Net Interest Income 


6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

11.7% 

5.5% 

10.2% 10.2% 

5.0% 

2008 2009 2010 2011 

(2) Obtained from dividing shareholders equity minus goodwill’s amortizations by total assets minus Public Debt Securities. 

4.8% 

46,270,966 

7,363,976 

26,703,385 

40,279,612 

4,583,203 

1,360,622 

The equity/assets ratio as of December 31, 2011 is 10.1% 2 (minimum requirement 8%) and the 

equity/risk-weighted assets ratio, according to the standards of the Superintendency of 

Banking Sector Institutions is 16.0% (minimum requirement 12%). 

Net income in 2011 was Bs 2,143 million in 2011, reflecting a year-on-year increase of Bs 782 

million (57.5%), mainly due to Bs 1,724 million growth of net interest income following the 

increase in the rate of financial intermediation (net loans to deposits), from 69.2% to 73.5%; 

Bs 237 million increase in earnings from commission on credit and debit cards, net increases 

in commissions on the use of POS and ATMs; Bs 96 million in earnings from the sale of 

investments in securities; Bs 228 million in expenses for loan portfolio provision; Bs 316 million 

in personnel expense; Bs 237 million in contributions to regulatory agencies; Bs 285 million in 

expenses for realizable assets; provision for other assets and operating expenses; and Bs 187 

million in expenses for outsourcing of securities transportation, expenses for maintenance 

and repairs, taxes and contributions, etc. 

10.9% 

2,239 2,474 3,157 4,881 

4.4% 

12.0% 

11.0% 

10.0% 

9.0% 

8.0% 

7.0% 

6.0% 

5.0% 

4.0% 

3.0% 


2010 

bolivars 

2009 

bolivars 

36,609,791 

5,956,675 

20,287,426 

32,013,443 

3,299,517 

722,035 

Net Interest Margin 

Operating Expenses / Average Total Assets 

Net Interest Income

Mercantil Commercebank Florida BanCorp 

Consolidated 

Year Ended 


Total Assets 



Deposits 

Equity 


Mercantil Commercebank Florida BanCorp 

At December 31, 2011 Mercantil Commercebank Florida Bancorp registered US$ 6,644 million 

in total assets, a year-on-year increase of 2.4%. The investment portfolio totaled US$ 2,142 

million, similar to the figure at the close of December 2010. At December 2011, this portfolio 

is made up of instruments issued by the US government or US government-backed agencies, 

securities issued by the private sector and securities issued by the Venezuelan government, 

which account for 91.1%, 7.4% and 1.5% respectively. Net loans registered 11.0% year-on-year 

growth to US$ 4,105 million at the close of 2010. Total deposits at December 31, 2010 were 

US$ 4,909 million, representing 4.1% year-on-year growth over the same period. 

At December 31, 2011 the Bank’s equity totaled US$ 601 million, reflecting a year-on-year 

increase of US$ 19 million (3.2%), mainly due to US$ 11 million in quarterly income and a US$ 6 

million increase from adjusting available-for-sale investments to their fair market value. 

2011 

US$ (1) 

6,644 

2,142 

4,105 

4,909 

601 

11 

Mercantil Commercebank Florida Bancorp's net earnings improved significantly compared to 

2010, rising from a negative result of US$ 4 million in 2010 to US$ 11 million in 2011. The net 

earnings of its main subsidiary Mercantil Commercebank, N.A. increased US$ 15 million from 

US$ 1 million in 2010 to US$ 16 million in 2011. This improvement is mainly due to a US$ 8 million 

(5.6%) increase in net interest income, expenses for loan portfolio provisions which declined 

US$ 23 million (31.5%) from US$ 73 million in 2010. There was also a US$ 9 million year-on-year 

increase in tax expenditure. The ratio of Past-due and Nonperforming Loans to Total Loans 

improved from 8.3% at the end of 2010 to 5.8% at the close of 2011. 

The main capital adequacy indicators for Mercantil Commercebank N.A. are in Equity/Assets 

ratio of 9.3% and an Equity/Risk-Weighted Assets ratio of 17.2%, in line with the standards of 

the Office of Comptroller of the Currency (OCC). These indicators exceed the requirement for 

a bank to be considered well-capitalized. 


2011 

bolivars 

28,499,014 

9,188,697 

17,606,508 

21,057,053 

2,577,187 

48,696 

2010 

bolivars 

27,823,102 

9,891,688 

15,859,665 

20,224,723 

2,496,934 

(13,521) 

2009 

bolivars 

12,868,132 

4,990,797 

6,965,365 

9,435,191 

1,201,270 

(66,249) 

Figures according to the accounting principles generally accepted in the United States (USGAAP). 

1 Dollar figures are given for reference only; the balance sheet is converted at the exchange rate at the end of the period Bs 4.2893/US$ 1 and the income statement at 

the average exchange rate for the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

Assets Quality Ratios 

20.0% 

18.0% 

16.0% 

14.0% 

12.0% 

10.0% 

8.0% 

6.0% 

4.0% 

2008 2009 2010 2011 

90.0% 

84.0% 

78.0% 

72.0% 

66.0% 

60.0% 

54.0% 

48.0% 

42.0% 

36.0% 

30.0% 

Non Accrual 

Total Class Loans / Gross Loans 

Total Class Loans + Oreo / Tier 1 + Allowance 

for loan losses

Evolution of Net Collected 

Premiums and Thechnical Result 

50% 

45% 

40% 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

29.9% 

2,030 

56 

2008 

37.6% 

2,802 

Mercantil Seguros, C.A. 

Year Ended 


86 

4,013 

25.6% 

125 

Premiums Received Net 

Technical Result / Total Income 

Technical Result 

Total Assets 


Equity 


Net Premiums 

5,234 

48.9% 

332 

2009 2010 2011 

Mercantil Seguros 

In 2011, premium income registered 30.4% year-on-year growth to Bs 5,234 million, reflecting an 

outstanding sales effort. At December 31, 2011, Mercantil Seguros was the country’s second 

insurance company in terms of net earned premiums, with 11.4% of the insurance market. 

Total assets at December 31, 2011 were Bs 4,814 million, 37.3% more than at December 31, 2010. 

Shareholders’ equity registered 31.7% year-on-year growth to Bs 1,469 million, which means that 

the Company's solvency margin complies with the regulations in force. 

The figures presented include all the mandatory and voluntary reserves required to guarantee the 

Company’s operations, including outstanding claims reserves and end-of-period payments. 

Guarantees and reserves total Bs 2,711 million (39.3% up on the previous year). 

At year end the Company’s investment portfolio totals Bs 4,137 million, 36.8% more than at 

December 31, 2010. Total investments representing technical reserves were Bs 3,582 million, 

30.7% higher than at December 31, 2010, with sufficient liquidity levels being maintained to 

diligently meet commitments with insured, insurance advisers and reinsurers. 

Net earned premiums for individual business lines grew 39.3%, from Bs 1,961 million in 2010 to 

Bs 2,733 million at December 31, 2011, represented mainly by the health and automobile 

businesses. 

Net earned premiums for Collective Business Lines grew 24.3% from Bs 1,690 million in 2010 to 

Bs 2,101 million at December 31, 2011. This segment accounts for a significant proportion of the 

company's portfolio, with a 40.1% share. 

The technical result at December 31, 2011 registered a 166.0% year-on-year increase, closing 

at Bs 332 million, with a combined operating ratio of 92.4%. Net earnings in 2011 total Bs 461 

million, 13.8% more than in 2010, 65.3% before exchange earnings. 

2011 

US$ (1) 

1,122 

965 

342 

108 

1,220 

2011 

bolivars 

4,813,614 

4,140,224 

1,468,783 

461,181 

5,234,394 

3,506,609 

3,025,074 

1,114,939 

405,941 

4,012,857 


2010 

bolivars 

2009 

bolivars 

2,263,742 

1,925,918 

690,547 

200,664 

2,801,933 

Historic figures presented in accordance with the standars of the Superintendency of Insurance Activity. 

(1) Dollar figures are given for reference only; the balance sheet is converted at the exchange rate at the end of the period Bs 4.2893/US$ 1 and the income statement at the average 

exchange rate for the period (Bs 4.2893/US$ 1). Exchange control has been in place in Venezuela since February 2003. 

(2) Technical result = Earned Premiums Received - Claims Incurred - Commissions - Administrative expenses 

(3) Combined Operating Ratio (COR) = Claims + Commissions + Administrative expenses / Premiums

Other subsidiaries of Mercantil Servicios Financieros 

The subsidiaries of Mercantil Servicios Financieros include a security brokerage company, a 

mutual fund and investment portfolio management company, other overseas banks, and other 

non-financial subsidiaries in Venezuela, as listed below: 

• Mercantil Merinvest, C.A. attained Bs 113 in total consolidated assets at December 31, 2011, 

down 12.3% compared to 2010. This variation is reflected in the investments in securities that 

declined Bs 32 million compared to 2010, as a result of the redimensioning of the company 

given the initial regulatory restrictions that have limited these companies' operations. 

Earnings in 2011 totaled Bs 12 million, down 72.4% from Bs 43 million in 2010, and 47,0% less 

without taking into account exchange earnings. 

• Mercantil Bank (Schweiz) AG, which includes its subsidiary Mercantil Bank and Trust Limited 

(Cayman), recorded US$ 331 million in total assets at December 2011 similar to the figure at 

the close of December 2010. Net earnings reached US$ 0.9 million, US$ 2 million down from 

US$ 2.9 million at December 31, 2010. 

• Mercantil Bank (Panama) S.A., a subsidiary of Mercantil Bank Curaçao N.V., registered US$ 201 

million in total assets at December 31, 2011, 55.3% more than at the close of December 2010. 

Net loans totaled US$ 116 million, reflecting US$ 62 million (115.9%) growth compared with 

US$ 54 million the previous year. Deposits totaled US$ 123 million, 36.1% more than the US$ 90 

million registered at the close of December 2010. Net earnings totaled US$ 31.2 million in 

2011, similar to the level obtained in 2010. 

• Mercantil Inversiones y Valores incorporates Mercantil Servicios Financieros' non-financial 

companies. At December 31, 2011, its consolidated assets and equity totaled Bs 43 million and 

Bs 40 million respectively. 




Paint and oil on paper 

72 x 101 cm 



Stage of believe, 1969 

Oil and mixed media on canvas 

69 x 55 cm

Credit Ratings 

Mercantil Servicios Financieros Fitch Ratings Clave 

National Ratings 

Long Term AA (Ven) - 

Short Term F1+ (Ven) - 

Unsecured Bonds (Long Term) A1 A1 

Commercial Papers (Short Term) A2 A2 

Mercantil Banco Universal Fitch Ratings 

National Ratings 

Long Term AA+ (Ven) 

Short Term F1+ (Ven) 

International Ratings 

Long Term (Foreign currency) B+ 

Short Term (Foreign currency) B 

Long Term (Local currency) B+ 

Short Term (Local currency) B 

Viability b+ (1) 

Mercantil Commercebank Florida BanCorp y 

Mercantil Commercebank N.A. Fitch Ratings 

International Ratings 

Long Term (Deposits) 

(only Mercantil Commercebank N.A.) BB+ 

Long Term BB 

Short Term B 

Viability bb (1) 


Each year risk rating agency Fitch Ratings 

carries out credit ratings on Mercantil Servicios Financieros (Mercantil) its outstanding debt 

issues and its subsidiaries, Mercantil Banco Universal C.A., Mercantil Commercebank Florida 

Bancorp and Mercantil Commercebank, N.A. subsidiaries. Clave, Sociedad Calificadora de Riesgo 

also assigns a risk rating to Mercantil’s Unsecured Bonds and Commercial Paper. 

The following table indicates the current credit ratings of Mercantil and its subsidiaries in the 

different countries where it operates. 

Mercantil’s ratings reflect satisfactory financial indicators. Mercantil is among the best rated 

Venezuelan issuers. According to Fitch Ratings’ scale Mercantil reflects “Very High Credit Quality” 

and “a very low expectation of credit risk and a strong capacity for timely payment of financial 

commitments”. The ratings given for Mercantil’s issues of Commercial Paper and Unsecured 

Bonds are the highest obtainable by a debt instrument in Venezuela. 

The national risk ratings for Mercantil Banco Universal are sustained by its franchise, stable 

deposit base, adequate performance and risk management culture, and are the best ratings for 

any private financial institution in Venezuela. The international ratings are largely dependent on 

the country risk for Venezuela. 

The ratings of Mercantil Commercebank Florida BanCorp and Mercantil Commercebank, N.A. 

continue to be affected by the weak economic situation in the United States, particularly in the 

state of Florida. However they reflect financial flexibility as regards the timely payment of its 

obligations. Fitch Ratings highlights “the bank's sound liquidity profile, its adequate capitalization 

ratios and management capacity." 


(1) In January 2012, Fitch withdrew the Individual Ratings of all the financial institutions 

and replaced them with the viability Rating. The b+ feasibility rating given to Mercantil 

Banco Universal replaces the D Individual Rating. In the case of Mercantil 

Commercebank, the bb Feasibility Rating replaces the C/D Individual Rating.

Prevention and Control of 

Money Laudering and 

Terrorist Financing (ML/TF) 

Mario Abreu 

Vitral, 1959 

Oil on canvas 

130.5 x 97.5 cm 

The mission of Mercantil’s Prevention and 

Control of Money Laundering (AML) and Terrorist Financing (TF) Unit is to promote at all levels 

of the Organization, as part of its good corporate governance, a culture of compliance with the 

AML/TF regulations of the National Securities Superintendency (Resolution 110) and the Law 

Against Organized Crime in Venezuela and the different countries where it is operates. This 

involves supporting the Organization through a systematic, professional approach in order to 

detect, follow up and manage reputational risk due to ML/TF by providing data, analyses and 

recommendations to guarantee its adherence to the regulations and best international practices 

on the matter. These include the recommendations of the Financial Action Task Force (GAFI), 

the Caribbean Financial Action Task Force (GAFIC), the Wolfsberg Principles and the Customer 

Due Diligence for Banks document of the Basel Committee on Banking Supervision of the Bank 

for International Settlements. 


The control and oversight mechanisms in place, especially at Mercantil’s subsidiaries Mercantil 

Banco Universal, Mercantil Seguros, Mercantil Merinvest, Mercantil Sociedad Administradora 

de Entidades de Inversión Colectiva, Mercantil Bank Curaçao, Mercantil Bank (Panama), 

Mercantil Bank (Schweiz) AG and Mercantil Commercebank are adequate for the timely 

detection of operations which - due to the nature of their activities - are presumed to involve 

ML/TF, and for reporting such operations to the appropriate authorities. 

The “Know your Customer” policy is crucial to the timely detection of operations presumed to 

involve ML/TF. Anti-money laundering and combating the financing of terrorism (AML/TF) 

compliance processes are regularly reviewed by the supervisory authorities of the different 

jurisdictions in which Mercantil Servicios Financieros operates, as well as by the External and 

Internal Auditors. 

Pursuant to the provisions of current legislation the Institution has a “Comprehensive AML/TF 

System” comprised by an AML/TF Compliance Officer, a multidisciplinary committee, an AML/TF 

Unit and Compliance staff responsible for areas susceptible to ML/TF risks. There are also 

Operational, Follow-up, Evaluation and Control Plans, a Code of Ethics, a Manual of AML/TF Risk 

Management Policies and Procedures, and Training Programs. 

Its action during the year focused mainly on strengthening coverage and minimizing ML/TF risks 

by approving and setting policies, updating the Manual of AML/TF Risk Management Policies 

and Procedures, appointing compliance staff in areas susceptible to risk, implementing new 

AML/TF administrative and operating policies, training staff with special emphasis on the people 

for managing processes that are highly sensitive to risk, and the acquisition of state-of-the-art 

technology. All of this has provided the Institution with an efficient and effective structure and 

highly professional risk management process, within a climate of ongoing improvements. 

Mercantil Servicios Financieros developed an extensive program of training courses and 

workshops in which 8,067 employees participated. 

Mercantil Servicios Financieros liaises constantly with the regulatory bodies wherever it is 

present and with which it maintains fluid and effective communications. 


Evaluation 

Special 

PCLC/FT - AML/TF 

Quality 

General and Follow-up 

* Following the General Audits, separate reports on AML/TF were 

issued to 272 of MBU's offices. 

Internal Auditing 

Mercantil Servicios Financieros’ Internal 

Audit Unit works independently through a systematic approach to assess and improve the 

efficacy of risk management and internal control processes and corporate governance. It also 

contributes to the success of the Strategic Plan and is clearly user-orientated, with a staff of 

multidisciplinary specialized professionals who are well versed in the areas they cover. They 

act independently and objectively, adhering to the Principles, Standards and Attributes 

governing their activity. 

MSF’s Internal Audit Unit follows the International Professional Practices Framework (IPPF) 

applicable to internal auditors and established by the Institute of Internal Auditors (IIA). Its 

work involves developing assurance activities such as evaluations and recommendations on 

improvements to the corporate governance process, risk management and control to ensure 

compliance with the objectives related to the promotion of Mercantil’s ethics and values; 

ensuring effective management and reponsability for the Institution’s performance; 

supporting Mercantil’s Mission and Vision, and strengthening communication at the different 

levels to enhance the efficiency of its processes. 

The nature and scope of the work carried out by MSF's Internal Auditing Unit was aimed at 

Operating Efficacy and Efficiency, Information System Reliability and Quality generated by 

these systems, Protection of Assets and Compliance with Policies, Controls, Laws, Regulations 

and Requirements by Corporate Mandate. The Audit Units annual planning therefore includes 

various kinds of revisions: general, special, follow-up, ML/TF risk management and quality 

management. The use of self-assessment in Units and Processes has also been strengthened 

as this activity is considered a best practice for identifying risk gaps. The Internal Audit Unit 

constantly measures, analyses and monitors a series of performance indicators to ascertain 

execution of the internal control of the different processes. 

Structurally speaking, the Internal Audit Unit reports directly to the Board of Directors of 

MSF and is made up of units at: Mercantil Banco Universal, Mercantil Seguros and Mercantil 

Commercebank, that develop their review programs separately with the following results: 

100% 

80% 

60% 

40% 

20% 

0% 

530 

328* 

140 


70 61 9 670 

64 

32 

19 

16 

19 

27 

4 

2 

10 

44 

31 

27 

MERCANTIL 

MERCANTIL 

MERCANTIL OTHER BANKS AND 

MERCANTIL 

BANCO 

COMMERCEBANK 

SEGUROS OTHER SUBSIDIARIES SERVICIOS 

FINANCIEROS 

4 

5 

428 

140

During 2011, MSF’s Internal Audit Unit conducted 670 audits that helped strengthen internal 

controls in Mercantil’s different units, affording priority to processes with the highest risk 

impact. It also followed up the corrective actions implemented by Management; supported 

the external auditors in checking the figures of the Financial Statements items; supported 

MBU's Management with regard to the requirements of the regulatory bodies, assessed 

ML/TF Risk Management, and ascertained compliance and adequacy by the Units with the 

processes that received ISO 9001:2008 certification through Fondonorma. 


Oscar Pellegrino 

Untitled (Cáliz), undated 

Vinyl-acrylic paint and mixed media on canvas 

160 x 120 x 2 cm


Mercantil’s Social Contributions 

Year 2011 

Education 52 % 

Social Welfare 22 % 

Culture 6 % 

Health 12 % 

Religious Institutions 8 % 

Carlos Sosa 

338340, 1988 

Social Commitment 

Asphalt and oxides on canvas 

180 x 135 cm 

Since Mercantil was founded 86 years ago, it 

has fostered, promoted and supported social development programs. One of its corporate 

values is “to be an integral institution and an important factor in the development of the 

communities and places in which it is involved.” 

The social investment of Mercantil Servicios Financieros in 2011, carried out both through 

Fundación Mercantil, and its subsidiaries, totaled Bs 11.2 million, and was aimed directly at 

programs and projects conducted by various social development organizations. 

Mercantil earmarked 52% of the contributions in this area for educational institutions and 

48% for social development, healthcare, religious and cultural institutions. 

Education 

In 2011, Mercantil's pursued its support for primary education through its "Give your School 

a Helping Hand" program which has been going strong for 28 years. This directly benefited 

the quality of school life of over one million members of Venezuela's education community 

comprising pupils, teachers and the community at large. In conjunction with the Foundation 

for Educational Buildings (FEDE - for its abbreviation in Spanish) under the Ministry of 

Education, and with the Fe y Alegria institution, it has helped schools in Anzoátegui, Barinas, 

Delta Amacuro, Monagas and Zulia states. 

Mercantil supports various programs and projects addressed at the academic and professional 

development of students at Universidad Católica Andrés Bello, Simón Bolívar, Carabobo, 

Metropolitana, Central de Venezuela and the Institute of Advanced Studies in Administration 

(IESA), and others. 

Support was given for the seventh year running to the university competition that promotes 

socially responsible leaders and is held in conjunction with the Social Alliance between 

VenAmCham and Rotary Club de Venezuela. Accentuating its support for education, 

donations were made to Superatec, the scholarship program for low-income students for the 

San Judas Tadeo school in La Pastora and the Foundation for Educational Development 

(FUEDUCA). 


Social Development and Healthcare Programs 

Mercantil continues to back projects and initiatives by organizations that work directly with 

children, youths and senior citizens in need. 

The main beneficiary institutions include: the United Nations Children's Development Fund 

(UNICEF) in Venezuela; Comedores Madre Teresa de Calcuta (COMATEC); Alianza para una 

Venezuela sin Drogas; Fundación Nacional El Niño Simón (under the Ministry of Education); 

Asociación Un Techo para mi País; Federación de Instituciones Privadas de Atención al Niño, al 

Joven y a la Familia (FIPAN); Fundana; Fundación Venezolana Pro-Cura de la Parálisis; Asociación 

Provida; Sovenia; Asociación Civil Recreare; Asociación Mensajera Misionera Ciudad del Niño; 

Asociación Civil Buena Voluntad; Centro al Servicio de la Acción Popular (CESAP); Asociación Civil 

Red de Casas Don Bosco; Asociación Civil por la Caracas Posible; Fondo Municipal de Protección del 

Niño y del Adolescente del Municipio Chacao. 

Mercantil commitment to health is reflected in donations to the health sectors that provide 

comprehensive preventive and hospital healthcare for children, young people and adults in 

need. These include: Fundación Amigos del Niño con Cáncer; Fundación Cardioamigos; Hospital 

Ortopédico Infantil; Hospital J.M. de los Ríos, adscrito al Ministerio del Poder Popular para la Salud; 

Stop Vih/Sida; Fundación Drogas Antineoplásicas (BADAN); Acción Solidaria; Hospital de 

Especialidades Pediátricas del Zulia; Fundapediatría; Cruz Roja Venezolana; Sociedad Anticancerosa 

de Venezuela; AC Centro Médico Docente La Trinidad. 

Culture, Quality of Life and Environment 

During 2011, culture continues to be a value for Mercantil, through support for institutions that 

promote national artistic talent in the field of music, literature and fine arts. Contributions were 

made in particular to Fundación Camerata de Caracas, Museo de Arte Moderno del Zulia (Maczul), 

adscrito a la Universidad del Zulia, Pro música de Cámara, Museo de Arte Colonial; Fundación 

Francisco Herrera Luque; Fundación José Antonio y Carmen Calcaño y Fundación Festival Caribe 

whose work, together with Coral Mercantil, Mercantil's choir, has been outstanding. 

During 2011 Mercantil promoted the initiatives of a number of conservation organizations. These 

include: Fundación Tierra Viva, Sociedad Conservacionista Audubon and Sociedad de Ciencias 

Naturales La Salle. 

During the year it also continued to support culture through Espacio Mercantil, dedicated to the 

promotion of culture and the dissemination of plastic art in Venezuela. 

Support for the Social Work of Religious Institutions 

Mercantil's Social Commitment also included contributions to social work undertaken by religious 

institutions, as well as promotion programs and programs to promote and strengthen the 

religious vocation. Prime examples are the pastoral programs for families; strengthening of the 

Mercantil-Caritas Solidarity Fund for families who are homeless because of natural disasters; in 

addition to contributions to the country’s Archdioceses and Dioceses, the John Paul II 

Ecclesiastical Education, and the Friends of the Seminary Foundation. 


Donation program "Un aporte por Venezuela" 

A new phase of the donation program Un Aporte por Venezuela commenced in 2011. Through 

this program Mercantil makes its Internet platform available to social institutions so that 

clients can obtain information about its work and also be able to make donations by electronic 

fund transfer. The following organizations were included in this initiative: Museo de Arte 

Colonial del Zulia, Museo Amigos del Arte Colonial, Universidad Metropolitana, Superatec AC, 

Fundación Venezolana Contra la Parálisis Infantil, Alianza para un Venezuela sin Drogas, 

Asociación Venezolana de Servicios de Salud de Orientación Cristiana (AVESSOC). 

Voluntary Work by Mercantil Employees 

Special mention should also be made of the voluntary participation of Mercantil’s staff during 

2011 in various educational, social development and cultural activities promoted by community 

institutions. For the second year running 500 volunteers from Mercantil contributed to the 

reforestation of the woods where the Simon Bolivar University (USB) sits in Caracas, by planting 

a thousand trees. The employees also demonstrated their support for the families of children 

with cancer, by collaborating with the basic basket campaign Campaña Cesta Básica for the shelter 

Albergue Mi Casita of Fundación Amigos del Niño con Cáncer and with the social work of the 

canteens Comedores Madre Teresa de Calcuta (Comatec), delivering toys for children in the 

impoverished sectors of Petare, Carapita, La Vega, 23 de Enero, among others. This activity has 

been carried out for the past five years. 

In the United States the social commitment extends to support for a series of programs 

undertaken in South Florida by various educational and social development organizations, such 

as: American Anti-Cancer Society, FIU College of Business, Fundación Manos del Sur, Our Lady 

of the Lakes y Marian Center School and Service, as well as at the Juilliard School in New York and 

the Museum of Fine Arts in Houston. A number of institutions, such as ACCION USA, Project 

HOPE and Barry University which promote the social development of low-income communities, 

received support under the Community Reinvestment Act (CRA) program. 


Elsa Gramcko 

R-32, 1960 

Acrylic, gouache and sand on canvas 

84 x 110 cm

Corporate Governance 

Mercantil Servicios Financieros is registered 

in Venezuela and its shares are listed on the Caracas Stock Exchange. It also has a program of 

Level 1 ADRs which are traded over the counter in the USA. Mercantil’s Corporate Governance 

structure is based on its Bylaws, the Capital Markets Law, the Code of Commerce and the 

Resolutions issued by the National Securities Superintendency, SNV (formerly the National 

Securities Commission, CNV) on the subject. 

Ever since Mercantil was incorporated, its Administrators have maintained a close relationship 

with their shareholders, customers, creditors and employees, marked by the highest 

professional and ethical principles, with a view to guaranteeing transparent, efficient and 

proper management. The Corporate Governance structure has been designed to facilitate 

the supervision and work of the Board of Directors and Management to safeguard the 

interests of shareholders, customers, creditors and staff alike. 

In the area of Corporate Governance, Mercantil has not restricted its activities to the 

legislation in force. To remain at the forefront in this field, the Board of Directors and 

Management of Mercantil study the latest trends in this area so that the Company’s Corporate 

Governance structure can be adapted to current best practices. 

The function of the Compliance Unit created in 2009 is to detect anomalies and manage risk 

due to failure to comply with regulations, and apply policies, methodologies and procedures 

that strengthen the business model and eliminate or reduce exposure to associated risk. This 

initiative is quite innovative in Venezuela’s financial environment. 

Progress in executing this unit’s Strategic Agenda went according to plan in 2011. It focused 

on the Mercantil Banco Universal subsidiary, even though due to the prevailing circumstances, 

follow-up tasks related to the securities market have begun. 

It should be noted that Mercantil Commercebank, N.A. subsidiary has had a Compliance Unit 

for many years now. 


Another very significant aspect of corporate governance is the dividend policy which gives 

shareholders greater assurance that dividend will be declared and paid. In relation to the 

amendment of the Securities Market Law on this matter, the Board asked the September 23, 

2011 Shareholder's Meeting to consider including in the amendments to several articles, an 

amendment to an article in the Company Bylaws regarding the distribution of dividends to 

bring its provisions in line with those of the amended law. This proposal was approved by the 

Shareholders' Meeting. In line with this policy, all proposals to declare dividends must be made 

in accordance with the Law and the Bylaws on the matter, heeding the rules on compliance 

with the regulatory equity ratios applicable, and the Company’s investment and development 

plans. A Board of Directors meeting is normally held each February. It reviews the dividend 

proposal that will be submitted for consideration by the first General Shareholders’ Meeting 

held in the first quarter of the year, and once approved by the Board, a press release is 

published. Notwithstanding, the Board of Directors may at any time consider any dividend 

proposal it deems to be in order. In 2011 an ordinary cash dividend was declared and paid in two 

portions and an extraordinary cash dividend was paid in a single portion. 

All Mercantil’s activities are carried out according to the strictest ethical and professional 

principles. Both Mercantil and its subsidiaries have a Code of Ethics which encompasses a 

series of ethical principles and values that guide the Company in its decision making and its 

activities. This Code covers fundamental duties such as probity, loyalty, efficiency, co-fraternity, 

honesty, sincerity, dignity and law abidance. 

It also establishes standards aimed at regulating treatment in the event of conflicts of interest 

and complements the provisions of the Bylaws in this area. These Bylaws stipulate how such 

situations should be handled and ban Board Members from taking part in discussions on any 

matters in which they, or their partners in civil or mercantile companies have a personal 

interest, requiring that directors remain outside the meeting room until a final decision is 

reached. 

Mercantil’s governance structure is comprised by the Shareholders’ Meeting, followed by the 

Board of Directors, with its Audit, Risk and Compensation Committees, the Executive 

Committee, the President and Executive President, the Internal Auditor and the Compliance 

Officer. 



The Board of Directors must act efficiently and in the interests of its shareholders, creditors, 

clients, employees and the community at large. The Board has responsibility for defining 

corporate strategies, determining business policies and establishing and controlling the strategic 

direction of the institution. It also supervises the management of the organization’s different 

business and support areas. It evaluates results by comparing them against previously approved 

plans and strategies, performance in previous years and the general banking environment. 

In line with best corporate governance practices, the majority of the Directors on the Board of 

Directors of Mercantil Servicios Financieros are independent of Management. The presence of 

directors who are independent of Management is further proof of Mercantil’s commitment to 

international management standards and in line with best corporate government practices. 

The Directors are highly qualified and well-versed in business and finance, thereby ensuring 

optimum performance of their functions. The Board of Directors is made up of 10 directors and 

20 alternate directors. The Board appoints the President and Executive President from its 

members and these appointments may be held by the same person. The Board meets once a 

month and whenever else the President deems necessary. 

To ensure better transparency and control over management procedures, right from the outset 

Mercantil’s Bylaws provided for the creation of a Compensation Committee and an Audit 

Committee. The creation of these Committees was provided for in the Bylaws of its main 

subsidiary, Banco Mercantil in 1981. An Ordinary Shareholders’ Meeting held in March 2006 

approved a proposal submitted by the Board of Directors to amend a provision in them giving 

legal status to the Risk Committee, which had already been created by the Board meeting at is 

meeting on May 31, 2001. It is important to point out that these Committees are comprised 

mainly of Directors who are independent from the bank’s Management. 

Consistent with the Company’s tradition of adhering to best corporate governance practices, 

the Audit Committee is subject to Bylaws governing its functions. This document describes the 

Committee’s purpose, functions and responsibilities, and the requirement that members conduct 

an annual assessment of their compliance therewith. It also affirms the obligation that the 

majority of its members must be independent from the bank’s administration, adding that at 

least one of them must have considerable accountancy or financial management experience. 


Board of Directors’ Compensation Committee 

Members 

Gustavo Gustavo J. Vollmer H. 

(Coordinator) 

Alfredo Travieso P. 

Víctor Sierra A. 

Luis Esteban Palacios W. 

Luis Alfredo Sanabria U. 

Claudio Dolman C. 

Oscar Machado K. 

Germán Sánchez Myles 

Luis A. Marturet M. 

Gustavo Vollmer Acedo (Ex oficio) 

Alejandro González Sosa (Ex oficio) 

Board of Directors’ Audit Committee 

Members 

LuiLuis A. Romero M. 

(Coordinator) 


Eduardo Mier y Terán 

Gustavo Machado Capriles 

Alberto Sosa S. 

Luis Pedro España W. 

Alexandra Mendoza de Martínez 

Carlos Hellmund Blohm 

Miguel Angel Capriles Capriles 



Board of Directors’ Risk Committee 

Members: 

Gustavo A. Marturet 

(Coordinator) 


Miguel Ángel Capriles L. 

Gustavo Galdo C. 

Francisco Monaldi M. 

Federico Vollmer A. 

Carlos Zuloaga T. 

David Brillembourg C. 



This Committee is responsible for setting the organization’s pay and benefits policy, approving the remuneration of the 

President and senior management and informing the Board of Directors accordingly. In 2011 the Compensation 

Committee met seven times. The main topics reviewed were: the semi-annual results of Mercantil and its subsidiaries 

in Venezuela and abroad; short and long-term management incentive programs of Mercantil and its subsidiaries in 

Venezuela and abroad; taxability of payments to staff for services rendered; considerations on per diems of board 

members of Mercantil Servicios Financieros and its subsidiaries in Venezuela and abroad; analysis of staff movement 

during the year; considerations on special financing programs for staff, and establishment of conditions thereof; 

consideration of consultancy fees on legal, fiscal and migratory issues; establishment of annual wage policy for Mercantil 

and its subsidiaries in Venezuela and abroad, analysis of the impact and scope of labor laws and resolutions; brief review 

of reports to be submitted to the National Securities Superintendency for consideration; situation of Mercantil's 

Complementary Pension Scheme (Plan Complementario de Pensiones de Jubilación Mercantil) actuarial results and 

adjustment of minimum pension under the Scheme; health insurance policy financing program; aid plan for employees 

who lost their homes in natural disasters; considerations on the "Know your Employee" policy; preliminary results of the 

survey on employee financing plans; results of the organizational climate survey; 

The Committee has responsibility for reviewing and discussing accounting and management policies, opinions and 

reports of the organization’s internal and external auditors, establishing Reserves, reviewing the Financial Statements 

and their Notes, and formulating recommendations on matters incumbent upon it to the Board. It also approves the 

engagement and remuneration of the external auditors. In 2011 the Audit Committee met seven times. The main topics 

reviewed were: Consideration of the financial statements of Mercantil and its subsidiaries; considerations of the portfolio 

provisions and other reserves of Mercantil and its subsidiaries; opinions of the external auditors on these and the notes 

thereto; revision of internal audit activities of the different subsidiaries of Mercantil and activities related to the 

prevention of money laundering and terrorist financing; consideration and approval of the fees of the external auditors; 

consideration of internal control aspects observed by the external auditors; actuarial assumptions on the Retirement 

Plan; review of issues related to plans to prepare financial statements according to IFRS. 

Approves Mercantil’s risk profile, policies and limits. It also optimizes the use of capital to support the approved risk 

profile. In 2011 the Risk Committee met seven times. The main topics reviewed were: consideration of loan portfolio 

provisions; consideration and setting of cross-border risk limits; consideration, adjustments and measures related to 

the credit risk policy, review of limits for individual borrowers and economic groups; status and management report on 

operational risk and market risk; follow up of the limits established for Venezuela; consideration of reports on the results 

of revisions of loan portfolios of subsidiaries in Venezuela and abroad; establishment of market risk limits for different 

subsidiaries; valuation of investment portfolio; policy on related parties; investment portfolio stress test; validation of 

methodologies for setting cross-border risk limits and for the valuation of banks and financial institutions. 


Executive Committe 

Mercantil has an Executive Committee composed of a President and Executive President plus 

ten senior managers from the organization’s Business and Support areas, which guarantees the 

timely implementation of Mercantil’s decisions and strategies. 

This Committee meets once a week and holds extraordinary meetings as required. It is 

responsible for evaluating options and formulating recommendations on policy matters, 

objectives, strategies and organization and submitting them to the Board of Directors for 

consideration, as well as assisting and guiding Management in its efforts to implement the 

policies adopted. It is also responsible for evaluating the outcome of their implementation. 

Chairman of the Board of Directors 

The Chairman of the Board of Directors is the President of the Company and is responsible for 

steering its activities and business, chairing Shareholders' meetings, Board meetings, meetings 

of the Executive Committee, and providing these with assistance and guidance on setting the 

policies, goals and strategies to be followed and on important decisions in accordance with the 

executive powers granted. He, or she, is also responsible for exercising the functions assigned by 

the Board of Directors and representing the Company before political and administrative 

authorities and other public and private entities. 

The President stands in for the Executive President during temporary absences, exercising the 

same powers and attributions. 

The Audit Unit and the Secretary, which report directly to the Board of Directors, report to the 

Chairman of the Board on administrative matters. The Corporate Compliance Unit reports 

directly to the President. 


The Executive President is responsible for the executive management and coordination of the 

company; submitting to the consideration of the President, the Board of Directors and the 

Executive Committee any major policies, objectives, strategies and decisions and reporting to 

them periodically on the company’s financial condition and results of operations. Other 

responsibilities include designing, establishing and developing the Company’s organizational 

structure and appointing and removing general managers, consultants and advisers as necessary. 

The Executive President stands in for the President during temporary absences, exercising the 

same powers and attributions. 

The following Global Business and Support Units report to the Executive President: Commercial 

and Personal Banking, Corporate and Investment Banking, Private Banking and Wealth 

Management, Finance, Insurance and New Business, International Operations, Operations and 

Technology, Global Risk Management, Legal Affairs, Strategic Planning, and Human Resources 

and Corporate Communications. The Executive President is also responsible for the executive 

coordination of all Mercantil’s subsidiaries. 


Internal Audit Manager 

In accordance with the regulations applicable to Mercantil and its subsidiaries, Mercantil has an 

Internal Audit Manager who works in conjunction with the Audit Committee when the overall 

operations of Mercantil and its subsidiaries are audited. 

The Internal Audit Manager heads Mercantil’s Global Internal Audit Unit, which designs 

Mercantil’s internal audit plan in conjunction with the Audit Committee. This plan is executed 

throughout the year. The results of the internal audits are reviewed and discussed periodically by 

the Audit Committee and the Board of Directors so that any corrective action may be taken. 

Compliance Officer - Prevention of Money Laundering 

and Terrorist Financing 

In accordance with regulations on the matter, Mercantil has a Compliance Officer on the 

Prevention of Money Laundering and Terrorist Financing who is responsible for designing the 

Annual Operating Plan on the Prevention and Control of Money Laundering and Terrorist 

Financing, coordinating and supervising training activities and training Mercantil staff on 

prevention and control of money laundering and terrorist financing, and maintaining institutional 

relations with the regulatory bodies on the matter. The Compliance Officer also advises the Audit 

Committee and the Board of Directors on compliance with their anti-money laundering and antiterrorist 

financing obligations under current legislation. 

Disclosure of Information 

Mercantil prepares and publishes the company’s financial statements on a semi-annual basis in 

compliance with the standards of the regulatory bodies. The company also prepares a quarterly 

report containing detailed information and accurate economic and financial data, as well as other 

relevant data for the market, which is disclosed to the general public, the National Securities 

Superintendency and the Caracas Stock Exchange through nationwide distribution methods, and 

by e-mail to analysts and participants in the local and international markets. Information is 

distributed periodically to the Securities and Exchange Commission in accordance with its 

obligation to maintain Mercantil’s Level 1 ADR program in the United States of America. Financial 

information on the company is also available on the website of the Mercantil Banco subsidiary 

at www.bancomercantil.com. Thus Mercantil fulfills the regulations on immediate dissemination 

of any information that may materially affect the price of its shares. 

Last but not least, Mercantil has an Investor Relations Unit, whose functions include the timely 

disclosure of information to investors by different means, including events and presentations. 


Teresa Casanova 

Intromisión retrospectiva, 1962 

Oil and acrylic on canvas 

91 x 147 cm

Ángel Hurtado 

Noche transfigurada. 

Homenaje a Schömberg, 1963 

Oil and epoxy on canvas 

190 x 140 cm

Report of the Board of Directors of Mercantil Servicios Financieros 

on Compliance with the Corporate Governance Principles 

adopted by the National Securities Commission (CNV) 

which has been replaced by the 

National Securities Superintendency (SNV). 

Pursuant to Resolution N° 19-1-2005 of the 

Superintendency dated February 2, 2005, published in Official Gazette of the Bolivarian Republic 

of Venezuela N° 38,129 of February 17, 2005, the Board of Directors of Mercantil Servicios 

Financieros submits to the Ordinary General Shareholders’ Meeting this report on the degree of 

compliance with the Principles of Corporate Governance referred to in the Resolution. 

Independent Members of the Board of Directors 

At its meeting on February 16, 2012 the Board of Directors examined the independence of each 

director and determined that, according to the criteria on the independence of Directors 

contained in the above-mentioned resolution, at least one fifth of the members of the Board of 

Mercantil Servicios Financieros are independent directors. Thus Mercantil Servicios Financieros 

complies with the provisions set forth in the Resolution issued by the Superintendency on the 

Principles of Corporate Governance whereby at least one fifth of the Board of Directors must be 

comprised by independent directors. 

In order to meet the level of transparency and disclosure required on this matter, the report 

distributed to the shareholders contains a brief resume on each Director. 

Audit Committee 

All the members who vote on the Audit Committee of Mercantil Servicios Financieros are 

independent directors, according to the criteria on the independence of directors contained in 

said Resolution. Gustavo J. Vollmer Acedo and Alejandro González Sosa, in their capacity as 

President and Executive President of the Company respectively, assist this Committee as ex 

officio members. The Audit Committee has and exercises responsibilities in matters regarding the 

Principles of Corporate Governance. The Committee also deals with other matters. The chapter 

of the report that refers to Corporate Governance states the matters dealt with by this 

Committee in 2011. A resume of each member is included in this report. 

It can therefore be affirmed that Mercantil Servicios Financieros fulfills all the Corporate 

Governance Principles contained in that Resolution. 


Awards and Acknowledgements 

The work of Mercantil Servicios Financieros 

and its subsidiaries was recognized by the media at home and abroad and also by numerous 

public and private institutions. 


• In April, Forbes magazine ranked Mercantil Servicios Financieros among the top 2000 

countries in the world in terms of size and importance in the financial area. This ranking 

evaluates the companies' sales, benefits, assets and market value. In 2011 Mercantil 

Servicios Financieros ranked at number 1,426 on the list. 

• In a survey conducted in July 2010, The Banker magazine rated Mercantil Servicios 

Financieros as the first Venezuelan institution in its ranking of the Top 1000 World Banks. 

Compared to 2010, it climbed 41 rungs to number 250 in worldwide terms. 

• In October the Venezuelan American Chamber of Industry and Commerce (VenAmCham) 

presented its list of the Top 100 Companies, ranking Mercantil Servicios Financieros third 

on the list and number one in the financial sector. The country's most successful companies, 

whether their capital was national or foreign, were included on the list. 


• In March The Great Place to Work Institute of Venezuela rated Mercantil Banco and 

Mercantil Seguros among the 15 Best Companies to work for in Venezuela in its sixth survey. 

At number 13, it stands out as the only financial institution to obtain this recognition for the 

sixth year running. 

• In May, according to the Alexa ranking which evaluates the number of website hits 

worldwide, Mercantil Banco Universal's is sixteenth in the ranking of Venezuela's websites 

and top in the ranking of the Venezuelan financial sector. 

• In June, Global Finance magazine distinguished Mercantil Banco Universal with its prize for 

“Best Trade Finance Provider in Venezuela”. It also ranked 192nd on the list of the 200 largest 

banks in emerging markets. 

• In October, the maintenance and renewal audit of Mercantil Banco Universal's ISO 

9001:2008 certifications by Fondonorma, concluded with zero non-conformities. The 

certification agency's audit team ascertained that nine ISO 9001:2008 certified lines of 

service comply with the standard's requisites. The maintenance audit was carried out on five 

lines: Mercantil Call Center customer service, Cashier desks, ATM network, Corporate client 

securities and Social benefit trust fund, and renewal audits on 4 lines: Mercantil Online, 

Credit cards, Home delivery of checkbooks and Préstame instant loans. 


• In December The Banker magazine acknowledged Mercantil Banco Universal with its Bank 

of the Year Award 2011 for Venezuela based on the evaluation of its principal management 

indicators compared to its performance in 2010. The Banker highlighted Mercantil Banco 

Universal's positive performance amid a dynamic economic climate, a noteworthy 

achievement which shows that the results reflect prudent and sound management, in 

particular as regards the Bank's asset and equity growth. 

Mercantil Seguros 

• In March The Great Place to Work Institute of Venezuela rated Mercantil Banco and 

Mercantil Seguros among the 15 Best Companies to work for in Venezuela in its sixth survey. 

This is the fourth time the company has obtained this distinction and, at number 12, it is the 

only one in the insurance business. 

Mercantil Commercebank 

• In November, Mercantil Commercebank was recognized as the “Loans Growth Leader by 

Dollars” having come top in at June 30, 2011, in terms of loan and other portfolios in the 

ranking of all the banks in South Florida, with net year-on-year growth of US$ 246 million . 

Most of this growth was due to commercial loans. 



Fantasía, undated 

Oil on printed plastic 

35x 43 cm


Directors 


President 

Degree in Economics, Duke University; Postgraduate in Economic 

Development, Cambridge University, UK; PED in Business Administration, 

IMEDE, Switzerland. Chairman of the Boards of Mercantil Servicios 

Financieros and Mercantil, C.A. Banco Universal; Director of Mercantil 

Commercebank Holding Corporation and Mercantil Commercebank, N.A.; 

President of Fundación Mercantil. Former chairman and current member of 

the Board of Directors of the Institute of Advanced Studies in Administration 

(IESA) Member of the Development Council of Universidad Católica Andrés 

Bello. Member of Young Presidents' Organization (YPO). Former international 

president, Young Presidents’ Organization (YPO). Member of the Group of 

Fifty (G50) and founding president of Alianza para una Venezuela sin Drogas. 



Degree in Chemical Engineering, Universidad Metropolitana. MBA, Babson 

College, Massachusetts, USA. Thirty years of service at the Institution. Member 

of the Executive Committee of Mercantil Servicios Financieros, C.A., Mercantil 

C.A. Banco Universal, Mercantil Commercebank Holding Corporation, 

Mercantil Commercebank Florida BanCorp and Mercantil Commercebank, N.A. 

Director of the Board of Directors of Mercantil C.A. Banco Universal, Mercantil 

Commercebank Holding Corporation, Mercantil Commercebank Florida 

BanCorp, Mercantil Merinvest, C.A., Fundación Mercantil, and VenAmCham. 

Chairman of the Board of Todo1 Services, Inc. and the Supervisory Board of 

Mercantil Bank (Curaçao) N.V. and Mercantil Bank (Panama), S.A. Was Executive 

President of Mercantil C.A., Banco Universal, President of Interbank C.A., Banco 

Universal, Mercantil Merinvest, C.A. and Mercantil Merinvest, Casa de Bolsa, 

C.A. and Director of the National Banking Council (CBN), the Venezuelan 

Banking Association, the Venezuelan-Swiss Chamber of Commerce and 

Industry, the National Council for Investment Promotion (CONAPRI), 

Educrédito, A.C., Mercantil Seguros, C.A., Mercantil Merinvest, C.A. and 

Mercantil Merinvest, Casa de Bolsa, C.A. 

Gustavo A. Marturet Machado 

Member of the Board of Directors 

of Mercantil Servicios Financieros 

Management 

Degree in Civil Engineering, Universidad Central de Venezuela (1962). Member 

of the Boards of Mercantil Servicios Financieros and Mercantil Banco 

Universal, where he was President until March 31, 2011. Chairman of the Boards 

of Mercantil Commercebank Florida BanCorp and Mercantil Commercebank 

N.A. Vice president of the Venezuelan-American Chamber of Commerce and 

Industry (VenAmCham). Member of the Chairman’s Advisory Council of the 

Council of the Americas. President of the John Paul II Foundation for 

Ecclesiastical Education (FESE). 

Formerly Executive President of Mercantil Servicios Financieros and Mercantil 

Banco Universal; President of Fundación Mercantil and member of the Boards 

of Mercantil Merinvest, Mercantil Seguros and Mercantil Bank (Schweiz) AG. 

For more than 33 years was part of Mercantil's senior management team. 

President of the Venezuelan Banking Association (ABV); National Banking 

Council (CBN); Venezuelan-American Business Council (CEVEU) and Colombo- 

Venezuelan Chamber of Economic Integration (CAVECOL). Former Member 

of the Institute of International Finance (IIF) and the Advisory Council of the 

Venezuelan Central Bank, Member of the Board of Directors of the Andean 

Development Corporation (CAF) and Board Member of various associations 

linked to the financial and production sectors. 


Gustavo J. Vollmer H. 



Degree in Civil Engineering, Cornell University (USA); Doctorate, Universidad 

Central de Venezuela. Former Director of the Boards of Mercantil Servicios 

Financieros and Alternate Director of Mercantil Banco Universal. Former 

member of the Boards of Directors of S.C. Johnson & Son de Venezuela, C.A., 

IBM de Venezuela and IBM World Trade, Americas Far East. Former Chairman 

of the Board of Directors of Banco Mercantil, C.A. (Banco Universal) and 

Consorcio Inversionista Mercantil Cima C.A. and President and/or Director of 

a number of Venezuelan sugar, metalworking, cement, finance, construction 

and alcoholic beverage companies, and of several international corporations. 

Former President and Director of several business organizations and 

organizations and foundations in Venezuela and abroad. 

Alfredo Travieso Passios 



Graduate and postgraduate degrees in law, Universidad Católica Andrés Bello; 

postgraduate degree, University of Michigan, USA. Senior partner of Tinoco, 

Travieso, Planchart & Núñez, Attorneys at Law, President of Grupo Emboca, C.A., 

Member of the Boards of Directors of Mercantil Servicios Financieros and 

Mercantil Banco Universal, Mercantil Commercebank Holding Corp, Ars 

Publicidad C.A., C. Hellmund & Cía., Desarrollos Judibana, C.A., Centro 

Empresarial de Conciliación y Arbitraje (CEDCA); Fundación Colegio Santiago 

de León de Caracas; member of the Bar Association of the Federal District of 

Caracas, member of IMPREABOGADO (attorneys' social welfare institute); 

President of the Venezuelan Association of Financial Law; member of the 

Venezuelan Association of Tax Law, International Bar Association, International 

Academy of Estate & Trust Law, American College of Trust and Estate Counsel, 

and the International Fiscal Association (IFA). 

Luis A. Romero M. 



Graduate of Universidad Metropolitana; MBA, Babson College, PMD and CEP 

from Harvard University, USA. Member of the Boards of Directors of Mercantil 

Servicios Financieros C.A., Mercantil Banco Universal, Mercantil 

Commercebank Holding Corporation, Mercantil Commercebank Florida 

Bancorp and Mercantil Commercebank, N.A; Member of the Venezuelan- 

American Business Council (CEVEU). Director of Sociedad de Amigos del Árbol 

“Sadarbol”. Director of International Briquettes Holding (IBH), Director of 

Caurimare, S.A. and Desarrollos e Inversiones, S.A. Former Corporate Director 

of Strategic Planning, Siderúrgica Venezolana, SIVENSA, S.A.

Víctor J. Sierra A. 



Degree in Law, Universidad Central de Venezuela. Currently Director of Valores 

y Desarrollos VADESA, S.A., Vice President of Inversiones Capriles and 

Member of the Boards of Mercantil Servicios Financieros and Mercantil Banco 

Universal. Formerly Legal Counsel, Legal Representative and President of 

Cadena de Publicaciones Capriles and the Capriles group of companies; 

Director of Valinvenca, Inversiones Finalven, Sociedad Financiera Finalven, 

Servicios Finalven, Banco República, Inversiones Diversas, C.A. (INVERDICA), 

C.A. La Electricidad de Caracas and C.A. Venezolana de Guías (CAVEGUIAS). 




Graduate of Yale University, USA.; MBA, Institute of Advanced Studies in 

Administration (IESA). Member of the Boards of Mercantil Servicios Financieros 

and Mercantil Seguros. Director of Mercantil Commercebank, N.A. and 

Mercantil Commercebank Holding Corp. Former President of IESA; General 

Manager, Executive President and Chairman of the Board of Directors of 

Mavesa, S.A.; Minister of Agriculture; Director of the Venezuelan Central Bank; 

President of IESA. Has lectured extensively at national and international 

institutions. Publications: “Reforming Agriculture”, in Lessons of the Venezuelan 

Experience, Woodrow Wilson International Center for Scholars and Johns 

Hopkins University (1995). “Inequality - Reducing Growth in Agriculture: A 

Market-Friendly Policy Agenda”, in Beyond Tradeoffs, Market Reform and 

Equitable Growth in Latin America, Inter-American Development Bank (IDB) 

and the Brookings Institution (1998). J. Coles and C. Machado, “Trayectoria de 

las políticas agrícolas venezolanas: “Aprendizajes y exigencias para el futuro,” 

in Agronegocios en Venezuela. Ediciones IESA (2002). 




PhD in Engineering (UCAB-1999 Summa Cum Laude), Master’s Degree (Stanford 

University-1981), Industrial Engineer (UCAB-1978). Professor at IESA since 1977. 

Founder of IESA’s Center for Entrepreneurship and its first coordinator. Former 

Vice President and Alternate President of IESA, member of the Board of IESA 

and the IESA Foundation. Full tenured professor Faculty of Engineering, 

Universidad Católica Andres Bello (1982-2003) - Gold Medal, UCAB. Began his 

managerial career in the Marketing Department of Procter & Gamble. Former 

partner and Executive Vice President of the Venezuelan industrial group Frigilux. 

Was Director of Savings and Loan Association Prosperar, E.A.P. (1998-2002) and 

Tucarro.com (2003-2008). Executive Director of Actibienes and financial group 

Holding Activalores. Member of the Boards of Directors of Mercantil Servicios 

Financieros, Mercantil Banco Universal and Mercantil Commercebank Holding 

Corp. Adviser to the Board of Directors of Farmatodo C.A. Has published 

numerous books and articles, and participated in national and international 

congresses. Director of Educrédito, member of the advisory committee of 

Conciencia Activa. Former president of the National Association of 

Manufacturers of Refrigeration Equipment, director of CAFADAE and member of 

the Conciliation and Arbitration committee of the Venezuelan Jewish community 

“Union Israelita” in Caracas. 

Miguel A. Capriles L. 



Degree in Administrative Sciences, Universidad Metropolitana. President of 

Cadena Capriles, Director of the Boards of Mercantil Servicios Financieros. 

Director of Mercantil Commercebank Holding Corp.; Director of H. L. Boulton, 

S.A.; Member of the Board of the Institute of Advanced Studies in 

Administration (IESA); Former Director of C.A. La Electricidad de Caracas and 

former Chairman of the Board of Cerámicas Carabobo, C. A. 


Alternate Directors 

Luis A. Sanabria U. 



Law degree, Universidad Católica Andrés Bello (1958); studied at Georgetown 

University, Washington. Currently Director of Inversiones AEFEVE, C.A., C.A. 

Ron Santa Teresa, Constructora Alvo. Director of Mercantil Seguros and 

Alternate Director of Mercantil Servicios Financieros. 

Oscar A. Machado K. 



Industrial Engineer, Universidad Católica Andrés Bello, 1974. First Vice 

President of the Venezuelan Confederation of Industry (Conindustria) and the 

Board of Directors of IESA. Member of the Boards of Directors of Instituto 

Venezolano de Siderurgia (IVES), Aeropuerto Caracas, S.A. and Venezuela 

Competitiva. Alternate board member Mercantil Servicios Financieros. 

Member of the Executive Committee of Instituto Latinoamericano del Fierro 

y el Acero (ILAFA). Secretary of the Executive Committee of the Venezuelan- 

American Chamber of Commerce and Industry (VenAmCham) and Adviser to 

Asociación Venezolana de Ejecutivos (AVE). Former President of Instituto 

Latinoamericano del Fierro y el Acero (ILAFA), Instituto Venezolano de 

Siderurgia (IVES), Asociación Venezolana de Ejecutivos (AVE) and Venezuela 

Competitiva. 

Eduardo A. Mier y Terán 



Was among the first group of civil engineering graduates of Universidad 

Católica Andrés Bello, MSc from Stanford University. Currently Chairman of 

the Board of Caurimare S.A. and Desarrollos Inversiones S.A. Director of 

Moore de Venezuela, S.A., H.L. Boulton & Co. ,S.A. and Fundación John Boulton. 

Director of Mercantil, C.A. Banco Universal and Alternate Director of Mercantil 

Servicios Financieros, C.A. Was General Manager of Inversiones Tacoa, C.A. 

and President of Educrédito. 

Luis Esteban Palacios W. 



PhD in Law, Universidad Central de Venezuela and postgraduate degree, New 

York University, MCJ. 1958. Founding partner of Palacios, Ortega y Asociados; 

Director of Fundación Scout; Alternate Director of Mercantil Servicios 

Financieros; Mercantil Seguros, C.A.; Vice President of the Venezuelan 

Arbitration Committee. Adviser on corporate law, banking law and capital 

markets. Has participated in numerous financing transactions through banking 

syndicates and project financing. Former member of the Foreign Investment 

Advisory Council of the Superintendency of Foreign Investments (SIEX); 

Director of Cantv, Secretary of the Board of Directors of the Bar Association of 

the Federal District of Caracas and President of Montepío de Abogados de 

Venezuela. Was Professor of Labor Law at Universidad Central de Venezuela 

and assistant to the President of the Venezuelan Central Bank.

Gustavo Galdo C. 



Degree in Civil Engineering from Universidad Católica Andrés Bello (UCAB), 

MSc Civil Engineering Management, MSc Industrial Engineering Economic 

Systems Planning and Honorary Alumnus of the Department of Management 

Science and Engineering, Stanford University, USA. Director of Fe y Alegría, 

Alternate Member of the Boards of Mercantil Servicios Financieros and 

Mercantil Banco Universal. His public sector appointments from 1983 to 1985 

were as General Sectoral Director of Public Finance with the Ministry of 

Finance, Director of Banco Industrial de Venezuela, and Member of the 

Advisory Committee on Negotiation of the External Public Debt . His private 

sector appointments from 1987 to 1998 were as President of Inversiones 

Finalven, S.A., Sociedad Financiera Finalven, S.A., and Sociedad Financiera 

Valinvenca, S.A. 

Germán E. Sánchez Myles 



Degree in Dentistry from Universidad Central de Venezuela with 

specializations in Buccal Surgery, Cosmetic Dentistry, Prostheses and 

Management. Formerly Assistant in the Surgical Area of the Puerto Ayacucho 

Central Hospital and of the Eudoro González Hospital. Director of the 

Restorative Dental Center 1997-2002. Currently Director General of Grupo 

COR Dental and Director of Inversiones Arisan C.A. Alternate Director of the 

Board of Mercantil Servicios Financieros. 

Luis A. Marturet M. 



Degree in Computer Engineering, Universidad Simón Bolívar, with a 

postgraduate in business management from the same university. Intensified 

his management skills at Wharton, the University of Pennsylvania’s Business 

School and through various advanced technology programs. Developed and 

managed the Information Technology Planning area of C.A. La Electricidad de 

Caracas. Member of the Board of Directors of C.A. Ed. Marturet & Co. Scrs., 

and Alternate Director of Mercantil Servicios Financieros and Mercantil Banco 

Universal. Director of an international mailbox, shipping and messaging 

franchise and currently developing new business in the field of production of 

audiovisual content for the media and entertainment industries and storage of 

structured information in digital format. 

Carlos Hellmund B. 



Degree in Industrial Engineering, Northeastern University, USA, with a 

Master’s in Business Administration and Management (MS / EMBA) from the 

London Business School. OPM Program, Harvard Business School, Boston, 

USA. Executive President Empresas Casa Hellmund. Executive Director, QHA 

International Inc. (Panama) Executive Director, TIS Ventures LLC. (USA). 

Director of Mercantil Servicios Financieros S.A. and Mercantil Seguros C.A. 

Member of the Advisory Committee “Un techo para mi País” (A roof for my 

country) - www.untecho.org. Director of Suramericana de Empaques C.A 

(SURENCA). Member of the Young President's Organization (YPO). Member 

of the Ashoka Support Network. Member of CEVEU. Director of Venezuelan- 

Japanese Chamber of Commerce (CAVEJA). Former Director of the Caracas 

Chamber of Commerce and Services. 


Gustavo Machado Capriles 



Degree in Economics, Universidad Central de Venezuela. Specialized studies 

in Journalism and Media Management, Universidad de Navarra, Pamplona, 

Spain. Specialization courses in International Banking at Manufacturers 

Hanover Trust in New York. Alternate Director of the Boards of Mercantil 

Servicios Financieros and Mercantil Banco Universal. 

Francisco J. Monaldi M. 



Degree in Economics, Universidad Católica Andrés Bello, with a Master’s in 

Economics, Yale University and a PhD in Political Economy, Stanford University, 

USA. Director of the International Center for Energy and Environmental 

Studies of the Institute of Advanced Studies in Administration (IESA). Degree 

in Economics, Universidad Católica Andrés Bello. From 2008 to 2009 was a 

Visiting Professor at Stanford University and a National Fellow at the Hoover 

Institution. Has been a consultant to public and private institutions, such as: 

the World Bank, the Inter-American Development Bank, the Andean 

Development Corporation (CAF) and Cambridge Energy Research Associates 

(CERA). Director of Siderúrgica Venezolana, S.A. (Sivensa), Inversiones Tacoa, 

C.A. and Alternate Director of the Boards of Mercantil Servicios Financieros 

and Mercantil Seguros. 

Federico Vollmer Acedo 



BSc in Agribusiness, Middle Tennessee State University, USA; Master’s degree 

in Agricultural Economics (MPS Agriculture), Cornell University, USA. 

President of Asesoría Agriplus, C. A., Director of Empresas PMC, Member of 

the Executive Committee and Board of Directors of Inversiones AEFEVE, 

President of Venazúcar, Director of Inversiones Porcinas, S.A., and Director of 

Cavidea. Alternate Director of the Board of Directors of Mercantil Servicios 

Financieros and Director of the Board of Directors of Mercantil Seguros, 

Claudio Dolman C. 



Degree in Industrial Engineering, Universidad Católica Andrés Bello. Currently 

President and Director of ActiBienes. Director of Holding Activalores. Director 

and Vice President of Rattan Group. Alternate Director of the Boards of 

Directors of Mercantil Servicios Financieros and Mercantil Banco Universal. 

President and Director of Promotora Itaca 2000, C.A. Was Director of Seguros 

PanAmerican. Director of Corimon and General Manager of Grupo Osiris. 

Carlos Zuloaga Travieso 



Degree in law, Universidad Católica Andrés Bello and master’s degree in 

Commercial Law, American University, Washington, D.C. Formerly foreign 

associate for the Department of Foreign Investment of Holland & Knight LLP 

in Miami, USA. Partner of law firm Tinoco, Travieso, Planchart & Núñez, Alternate 

Director of the Boards of Mercantil Servicios Financieros and Mercantil 

Banco Universal, Janus Capital Inc. and former Director of Transportes 

Marítimos del Caribe (Crowley Group) and Corporación Digitel C.A. Member 

of the International Bar Association (IBA) and the American Bar Association 

(ABA).

Nerio Rosales Rengifo 



Degree in Economics, Universidad Católica Andrés Bello. Executive President 

of Mercantil Banco Universal, Global Manager Commercial and Personal 

Banking, member of the Executive Committees of Mercantil Banco Universal 

and Mercantil Servicios Financieros. Director of Mercantil Banco Universal 

Director of Mercantil Commercebank Holding Corporation Director of 

Mercantil Bank (Curaçao) N.V. and Mercantil Bank (Panama), S.A. Alternate 

Director of Mercantil Servicios Financieros. 




Degree in Economics, Universidad Católica Andrés Bello. Has been with 

Mercantil for over 30 years. Currently Global Operations and Technology 

Manager, Member of the Executive Committees of Mercantil Servicios 

Financieros and Mercantil Banco Universal, Director of Todo1 Services, Director 

of Mercantil Commercebank, N.A. and Alternate Director of Mercantil 

Servicios Financieros. Has held various positions at Mercantil Servicios 

Financieros, in particular as Manager of Corporate Banking, Manager of 

Corporate and Institutional Banking, Executive President of Arrendadora 

Mercantil, C.A. and Banco de Inversión Mercantil, C.A., Director of Fondo 

Mercantil and Banco Hipotecario Mercantil. 

Miguel Ángel Capriles Capriles 



Degree in Administrative Sciences, Universidad Metropolitana, option 

Management (1988) and option Banking and Finance (1991). Director of Mantex, 

S.A. Alternate Director of the Board of Mercantil Servicios Financieros. Former 

Finance Manager , Inversiones Capriles, C.A.; Director of C.A. La Electricidad de 

Caracas and President of Distribuidora Samtronic de Venezuela, C.A. 

Luis Pedro España Navarro 



Degree in Sociology, Universidad Católica Andrés Bello (UCAB); Master’s in 

Political Science, Universidad Simón Bolívar (USB). Currently Director of the 

Economic and Social Research Institute of UCAB Alternate Director of the 

Board of Mercantil Servicios Financieros. Member of the Advisory Council of 

the newspaper El Mundo Economía y Negocios published by Cadena Capriles. 

Former banking, insurance and marketing adviser to low-income sectors for 

Arthur D. Little and Cantv, and Adviser on Social Programs for institutions such 

as the United Nations Development Programme (UNDP); World Bank-Ministry 

of the Family; UNICEF-Fundación del Niño; governments of Germany and the 

Netherlands, and national and regional public institutions. Has coordinated 

various publications, including: Un acuerdo para alcanzar el desarrollo, UCAB, 

USB, UCV; IESA (2006) and Detrás de la Pobreza. Diez Años Después (2009). 


Alberto José Sosa Schlageter 



B.A. in International Business, Ohio Wesleyan University and MBA in 

International Management, University of Denver, Colorado. Executive 

President of Corporación Digitel, C.A. Currently President of the Executive 

Committee of Corimon, Alternate Director of the Board of Mercantil Servicios 

Financieros. Former President of Seguros La Seguridad and President of 

Cerámica Carabobo, S.A.C.A. Currently member of the Boards of Directors of: 

C.A. Central Azucarero Portuguesa, Produvisa, S.A., and Fundación Venezuela 

Sin Limites. Was a member of the Caracas Chamber of Commerce, Caracas 

Stock Exchange, Consejo Nacional de Seguros (National Council of Insurance), 

Inversora Seguridad, Invercapital, Bancaracas Consorcio Inversionista. 

Alexandra Mendoza Valdés 



B.A. in Business Administration, mention Management, Universidad 

Metropolitana. Currently Director of Valores Químicos (Valquímica), C.A.. Was 

Marketing Manager of Isotonic Beverages Marketing at Pepsi-Cola de Venezuela; 

Marketing Manager, Helados Efe, and Marketing Manager, Procter & Gamble 

Latin America. Alternate Director of the Boards of Mercantil Servicios 

Financieros and Mercantil Banco Universal. 

David Brillembourg C. 



Degree in Management, Babson College, Massachusetts. President and 

Executive Director of Brilla Group. Was founder and President of CycleLogic, 

Inc. and Emida Technologies Inc. Currently Alternate Director of the Boards of 

Mercantil Servicios Financieros and Mercantil Seguros. Was also a Director of 

Fundación SaludArte, member of the Advisory Committee of Babson College; 

and member of the Board of Fundación “Runway to Green.”

Executive Committee 


President 

See CV under Management (Board of Directors section) 




Nerio Rosales Rengifo 

Global Manager Commercial and Personal Banking 


Philip R. Henríquez S. 

Manager of Global Corporate and Investment Banking 

Degree in Economics, Universidad Católica Andrés Bello (1986) with an MBA 

from Columbia University, New York (1991). Since 2004 has been a member of 

the Executive Committee of Mercantil Servicios Financieros, Mercantil Banco 

Universal (Venezuela) and Mercantil Commercebank (USA) and Executive 

President of Mercantil Merinvest C.A. President of Citibank, N.A. and Citigroup 

Country Officer in Venezuela (2000-2004). Executive Vice president of Banca 

Mayorista Global; member of the Board of Directors of Banco Venezuela- 

Grupo Santander and President of Valores Santander Casa de Bolsa 

(1997-2000). He joined the Citibank, N.A.,Venezuela, in 1991, working in the 

Treasury and Derivatives area; in 1993 was appointed Country Treasurer and 

Vice President. His career began at Banco Exterior in 1986 where he had with 

managerial responsibility in the area of Corporate Banking. Member of the 

Board of Directors of the National Council for Investment Promotion 

(CONAPRI). Former member of the Boards of VenAmCham (2001-2004), 

Venezuelan National Banking Council (2001-2004), Caracas Stock Exchange 

(1998-2000), Venezuelan Institute of Financial Executives (IVEF) (2001-2007), 

Venezuelan Association of Executives , AVE (1997-2011), National Gallery of 

Art (2001-2003) and Venezuelan Anti-Diabetes Foundation (2000-2008). 

Rosa M. de Costantino 

Manager of Private Banking and Asset Management 

Degree in Economics, Universidad Central de Venezuela. Has been with the 

Institution for 32 years where she has held several positions in the Finance and 

Personal Banking areas. Manager of Private Banking and Wealth Management 

and Member of the Executive Committees of Mercantil Banco Universal, 

Mercantil Commercebank Holding Corporation and Mercantil Servicios 

Financieros. Member of the Board of Directors of Mercantil Commercebank Trust 

Company, and director and member of the Executive Committee of Mercantil 

Commercebank Investment Services with a Broker-Dealer license in the USA. 

Director of Mercantil Bank (Curaçao) N.V., Mercantil Bank (Panama), S.A. and 

Mercantil Bank (Schweiz) AG. 


Global Finance Manager 

Certified Public Accountant with a master’s degree in Business Administration, 

Universidad Católica Andrés Bello. Twenty-three years of service with Mercantil 

Banco Universal. Global Chief Risk Officer of Mercantil Servicios Financieros and 

Mercantil Banco Universal. Member of the Executive Committees of Mercantil 

Servicios Financieros, Mercantil Banco Universal and Mercantil Commercebank. 

Member of the Boards of several subsidiaries and former chairman of the 

Comptrollers Committee of the Venezuelan Banking Association (ABV). Worked 

for Espiñeira, Sheldon y Asociados (PriceWaterhouseCoopers) for 7 years. 


Millar Wilson 

Global International Operations Manager 

Degree in Business Management, Bradford University, UK (1973). Has worked for 

Mercantil for 34 years and is currently Executive President of Mercantil 

Commercebank and Mercantil Commercebank Florida Bancorp. He has also held 

the position of Country Manager of Mercantil in the USA and Global International 

Operations Manager. Chairman of the Boards of Mercantil Commercebank 

Investment Services, Mercantil Commercebank Trust Company and Mercantil 

Bank & Trust (Cayman). Executive President of Mercantil Bank (Curaçao) and 

Mercantil Bank (Panama). Member of the Executive Committees of Mercantil 

Servicios Financieros, Mercantil Servicios Financieros and Mercantil Banco 

Universal. Harvard Business School Management Development Program 

graduate (1992). Member of the Board of Directors of Enterprise Florida, Inc. 

Former Chairman of the Board of the American Red Cross Greater Miami and 

The Keys (2001-2002) and Director and Treasurer of the Miami-Dade College 

Foundation (1999-2004). 

Fernando Figueredo M. 

Global Chief Risk Officer 

Degree in Law, Universidad Católica Andrés Bello; MBA, Columbia University, 

New York, with a dual specialization in Finance and Marketing. Member of the 

Executive Committees of Mercantil Servicios Financieros, Mercantil Banco 

Universal and Mercantil Commercebank. Formerly Credit and Operational Risk 

Manager of Corporate and Investment Banking at Mercantil Servicios 

Financieros. Prior to joining Mercantil, was Head of Financial Institutions at 

Citibank N.A., Venezuela, where he was responsible for the transactional clients 

segment and corporate client services. Formerly a manager in the Oil and Gas 

sector of Banco Venezuela and in the Corporate Finance area of Santander 

Investment. 


Global Operations and Technology Manager 


Luis Alberto Fernandes 

Global Chief Legal Counsel 

Degree in Law, Universidad Católica Andrés Bello, Master of Laws in Corporate 

and Mercantile Law, University of London. Currently Global Chief Legal Counsel 

of Mercantil Servicios Financieros and Mercantil Banco Universal. Formerly Legal 

Manager for Financial and Corporate Affairs of Mercantil. Member of the 

Advisory Board of Mercantil Bank (Curaçao) N.V. Former Director of Mercantil 

Seguros, Mercantil Merinvest Casa de Bolsa and Mercantil Bank (Panama), S.A. 

Before joining Mercantil held various positions at the Venezuelan Central Bank, 

including General Counsel, Alternate Legal Counsel for Financial Affairs and Legal 

Adviser on Monetary and Financial Affairs. Former Adviser to the Financial 

Emergency Board. Was Professor of Banking Law and National and International 

Regulation of Financial Services, Financial Contracts and Oversight of Financial 

Services at postgraduate level at Universidad Católica Andrés Bello and 

Universidad Central de Venezuela.. Participated as negotiator and adviser for 

Venezuela on financial services within the framework of the World Trade 

Organization and the Andean Community of Nations. Participant and speaker at 

national and international seminars and events. Studies in arbitration and 

negotiation.

Alberto Benshimol M. 

Manager of Insurance and New Financial Business 

Degree in Civil Engineering, Universidad Católica Andrés Bello; MSc, University 

of Illinois. Graduate of the Stanford Executive Program, Stanford University. Has 

been with the institution for 19 years. Manager of Insurance and New Financial 

Business, Mercantil Servicios Financieros, C.A.; Member of the Executive 

Committee of Mercantil Servicios Financieros, C.A., and President of Mercantil 

Seguros, C.A. Director of Cestaticket Services C.A. and Servicio Pan 

Americano de Protección C.A., Director of Cámara Aseguradora de Venezuela 

and President of the Insurance Committee of VenAmCham. Firner Geberak 

Nabager if Inversiones Polar, C.A. and Director of various industrial and financial 

companies. 

Luis Calvo Blesa 

Global Human Resources 

and Corporate Communications Manager 

Degree in Media Studies, Universidad Católica Andrés Bello. Has been with 

Mercantil for 32 years. Currently Global Manager of Human Resources and 

Corporate Communications of Mercantil Banco Universal and Mercantil Servicios 

Financieros; General Manager and member of the Board of Directors of 

Fundación Mercantil, and General Manager of Fundación BMA. Member of the 

Executive Committee of Mercantil Servicios Financieros. Member of the Social 

Alliance Committee of VenAmCham, of the Board of Directors of Dividendo 

Voluntario para la Comunidad and the Consultative Committee of Universidad 

Monteávila. Former Chairman of the Venezuelan Banking Association’s Human 

Resources Committee and Member of the Latin American Human Resources 

Development Committee of the Latin American Banking Federation (FELABAN). 


Une forme speciale d’ hipocrisie “La Pudeur”, 1968 



180 x 130 cm

Carlos Contramaestre 


Ink on Paper 

55 x 48.4 cm

MERCANTIL, C.A. BANCO UNIVERSAL 

Avenida Andrés Bello, N° 1 Edificio Mercantil 

Caracas 1050, Venezuela 

Phone: (58-212) 503.1111 

Telex 27002/27003 BMERVC 

P.O. Box 789, Caracas 1010-A. Venezuela. 

mercan24@bancomercantil.com 

www.bancomercantil.com 

Centro de Atención Mercantil (CAM): 

Phone: 0-500-600 2424/ 0-500-503 2424 

(58-212) 600.2424 -(58-212) 503 2424 


CORAL GABLES Agency 

220 Alhambra Circle, Coral Gables, 

Fl. 33134, U.S.A. 

Phone: (1-305) 460.8500 

Fax: (1-305) 460.8595 

Telex: 681278 BMER UW 

asala@mercantilcb.com 


CURAÇAO BRANCH 

Abraham Mendez Chumaceiro Boulevar 1 

Willemstad, Curaçao. Netherlands Antilles 

Phone: (5999) 461.8241 / 1706 

Fax: (5999) 461.1974 

fgirigori@bancomercantilcu.com 

MERCANTIL COMMERCEBANK N.A. 

220 Alhambra Circle, Coral Gables, 

Fl. 33134, U.S.A. 

Phone: (1-305) 460.4000 

Fax: (1-305) 629.1400 

www.mercantilcb.com 

MERCANTIL COMMERCEBANK TRUST COMPANY, N.A. 

220 Alhambra Circle, 11th floor, 

Coral Gables, 

Fl. 33134, U.S.A. 

Phone: (1-305) 441.5555 

Fax: (1-305) 441.5560 

www.mercantilctc.com 

MERCANTIL COMMERCEBANK 

INVESTMENT SERVICES, Inc. 

220 Alhambra Circle, Penthouse, Coral Gables, 

Fl. 33134, U.S.A. 

Phone: (1-305) 460.8599 

Fax: (1-305) 460.8598 

www. mercantilcis.com 

MERCANTIL BANK (SCHWEIZ) AG 

Talacker 42 

P.O. Box 9758, CH-8036 Zurich, 

Switzerland 

Phone: (41) - 433 444 555 master 

Telefax: (41) - 433 444 550 

www.mercantilsuiza.com 

MERCANTIL MERINVEST, C.A. 

Avenida Andrés Bello, N° 1 

Edificio Mercantil, piso 24 


Phone: (58-212) 503.2700 

Fax: (58-212) 503.2757 

Subsidiaries 

MERCANTIL SEGUROS, C.A. 

Av. Libertador con calle Isaías 

“Látigo” Chávez, 

Edificio Mercantil Seguros, Chacao. 


Phone: (58-212) 276.2000 

Fax: (58-212) 276.2001 

www.segurosmercantil.com 

MERCANTIL INVERSIONES Y VALORES 

Avenida Andrés Bello N° 1, 

Edificio Mercantil, piso 20 


Phone: (58-212) 503.3361 / 3644 / 1353 

Fax: (58-212) 503.7086 

csuarez@bancomercantil.com 

MERCANTIL BANK (PANAMA) 

Torre de las Américas, Planta Baja 

Local Nº 8-A. Punta Pacífica 

P.O. Box 0819-05811. Panamá, 

República de Panamá 

Phone: (507) 282 7000 

Fax: (507) 282 7040 

contactenos_mbp@mercantilbankpanama.com 

MERCANTIL BANK & TRUST, LIMITED 

Harbour Place, 4th floor 

103 South Church Street 

P.O. Box 1034 Grand Cayman, 

KY1-1102 Cayman Islands 

Phone: (1-345) 949-8455 

Fax: (1- 345)949-8499 

MERCANTIL BANK CURAÇAO N.V. 

Abraham Mendez Chumaceiro Boulevar 1 

Willemstad, Curaçao. 

Netherlands Antilles 

Phone: (5999) 461.1566 / 1669 

Fax: (5999) 461.1974 

fgirigori@bancomercantilcu.com 


Representative Offices 

BOGOTÁ 

Av. 82, Nº 12-18, Piso 8, Ofc. 805 

Edificio Interbolsa. La Cabrera Bogotá, 

D.C., Colombia 

Phone: (57-1) 635.0035 

Fax: (57-1) 623.7701 

jrequena2@mercantilcb.com 

LIMA 

Av. Canaval y Moreyra Nº 452, Piso 15 

San Isidro, Lima 27, Perú 

Phone: (511) 442 5100 

Fax: (511) 442 5100 Anexo 237 

rafael.alcazar@rebaza-alcazar.com 

MÉXICO 

Eugenio Sue N° 58, Colonia Polanco 

Chapultepec, Delegación Miguel Hidalgo 

C.P. 11560, México, D.F. 

Phone: (52-55) 5282.2300 

Fax: (52-55) 5280.9418 

mercvenmex@prodigy.net.mx 


SAO PAULO 

Av. Paulista, N° 1842, 3° andar, CJ. 37 

Edf. Cetenco Plaza, 

Torre Norte-Cep 01310-200 

Sao Paulo, SP, Brasil 

Phone: (55-11) 3285.4647 - 3284.0206 

Fax: (55-11) 3289-5854 

mercansp@uol.com.br 

NEW YORK 

11 East 51st. Street, New York NY, 

10022-5903, U.S.A. 

Phone: (1-212) 891.7479 

Fax: (1-212) 891.7419 

ljordan@bancomercantilny.com 

Corporate Contacts 

MERCANTIL SERVICIOS FINANCIEROS 

Avenida Andrés Bello, N° 1 

Edificio Mercantil, Caracas 1050, Venezuela 

Phone: (58-212) 503.1111 

Telex 27002/27003 BMERVC 

P.O. Box 789, Caracas 1010-A 

Venezuela 

Mercan24@bancomercantil.com 

presidencia@bancomercantil.com 

www.bancomercantil.com 

Centro de Atención Mercantil (CAM): 

Phone: 0-500-600 2424/ 0-500-503 2424 

(58-212) 600.2424 -(58-212) 503 2424 

INVESTOR RELATIONS 

Caracas 

Av. Andrés Bello, N° 1, Edificio Mercantil 

Piso 25, Caracas 1050, Venezuela 


Phone: (58-212) 503.1335 

Fax: (58-212) 503.1075 

inversionista@bancomercantil.com 

New York 

11 East 51 st. Street, New York NY, 

10022-5903, U.S.A. 

Phone: (1-212) 891.7405 

Fax (1-212) 891.7419 

CORPORATE COMMUNICATIONS 

Av. Andrés Bello, N° 1, Edificio Mercantil 

Piso 14, Caracas 1050, Venezuela 


Phone (58-212) 503.1670 

mcomunicacionesc@bancomercantil.com

Luisa Richter 

Composición, 1958 

Pigments and fine sand on canvas 

159 x 95 cm

I n f o r m a l i s m i n 

V e n e z u e l a 

Mercantil Collection 

Informalism emerged in Venezuela in 1960 with two important exhibitions. The first, Espacios 

vivientes (Living spaces), took place in Maracaibo; and the second, Salón experimental (Experimental 

exhibition), was a selection of works from Espacios vivientes which traveled to the Mendoza Gallery 

in Caracas. 

These exhibitions produced an immense wealth of creative expression like never before in the 

Venezuelan fine arts scene, fostering artistic methods that subsequently transformed into the precepts 

of avant-garde. Its gestural, expressive, lyric nature and richness of media crossed the lines of traditional 

artistic styles to become a true rebellion; a rite of passage as a process, instrument, object, 

and meaning for many of the visual arts that now fill the spaces in our museums and galleries. 

Recognizing the importance of Informalism to the history of Venezuelan art, the Mercantil Collection 

presents a selection of works that showcase the diversity and richness of this movement and also 

includes more contemporary artists who reinforced the impact this progressive art movement had 

on subsequent generations. This group of pieces from the Mercantil Collection brings us closer to 

the essence of Informalism, not only from its aesthetic parameters, but also from the ideological and 

emotional dimensions, which remind us that Informalism remains influential in the art world today. 


Alberto Brandt (Caracas, 1924 -1970) 

As a self-taught painter, Brandt was a pioneer of Informalism and the 

abstract art movement in Venezuela. Educated in the United States 

and Europe, he participated in national intellectual movements such 

as Sardio and El Techo de la Ballena (The Roof of the Whale). Brandt 

was also a member of avant-garde groups in Europe. In 1958, he received 

an honorable mention at the V Art Exhibition D’Empaire and 

earned the second place award the following year. In 1960, Brandt 

participated in the Experimental Exhibition at the Mendoza Gallery, 

which brought together an important group of Venezuelan painters 

in the Informalism movement. In 1962, he received the Federico 

Brandt Award at the XXII Official Art Exhibition. 

Alejandro Otero (Bolívar, 1921 - Caracas, 1990) 

Otero studied at the Caracas Academy of Fine Arts from 1939 to 1945. 

He garnered attention for disrupting the traditional parameters of 

Venezuelan art with his series Las Cafeteras (Coffee Pots) in 1946. In 

1955, he produced the Coloritmos series, followed by assemblages and 

collages in 1961, Papeles coloreados (Colored papers) in 1965, and 

finally, his Esculturas cívicas (Oudoor sculptures) in 1967. In 1950, Otero 

was a founding member of the group Los Disidentes, a movement that 

introduced abstract art to the Venezuelan art scene. He received the 

National Award in Painting in 1958, and an honorable mention at the 

V Biennial of São Paulo in 1959, among other accolades. Otero participated 

in several national and international exhibitions, including 

the art integration project of the Caracas University Campus in 1952. 

In 1985, the Caracas Museum of Contemporary Art organized the 

largest retrospective collection of his works, and La Rinconada Art 

Museum adopted the name Alejandro Otero Visual Arts Museum in 

his honor in 1990. 

Ángel Hurtado (Lara, 1927) 

Hurtado studied at the Caracas Academy of Fine Arts and formed 

part of the Taller Libre de Arte (Free Arts Workshop). In 1949, he received 

the Student Award at the X Official Art Exhibition. The following 

year, he won the Second Place Award at the VIII Arturo 

Michelena Exhibition. He became a Professor of Painting, Drawing 

and Photography at the Cristóbal Rojas Academy and a Professor of 

Cinematographic Journalism at the Central University of Venezuela. 

He also directed the Cinematography Department for Venezuela’s 

National Television Station. In 1964, he won the Judges’ Special 

Award at the XXV Biennial of Venice for his film about José María 

Cruxent (1963) and received the Golden Eagle Award for his documentaries 

on Jesús Soto and José Antonio Velázquez in 1973. 

122 Informe Anual 2011 

Ángel Luque (España, 1927) 

A self-taught painter and engraver, Luque lived in Venezuela from 

1955 to 1967. In 1960, he joined the Venezuelan Informalism movement, 

participating in the Espacios vivientes (Living spaces) exhibition 

at the Maracaibo City Hall and the Experimental Exhibition at the 

Mendoza Gallery in Caracas. He was a member of the group of artists 

El Techo de la Ballena (The Roof of the Whale) from 1961 to 1964. 

Luque received many awards throughout his career, such as the 

Puebla de Bolivar Award at the XXII Official Art Exhibition in 1961; the 

National Award in Drawing and Engraving at the XXII Official Art 

Exhibition in 1962; the Office of Cultural Affairs Award at the Fourth 

National Expo of Drawing and Engraving of the School of Architecture 

and Urban Planning at the Central University of Venezuela; and 

an honorable mention at the XXIV Official Art Exhibition in 1963. 

Antonio Lazo (Caracas, 1943) 

Lazo studied at the Cristóbal Rojas Academy. He created illustrations 

for publications such as El Farol from 1970 to 1972, the Literary Insert of 

the newspaper El Nacional and the weekly Tribuna Popular from 1979 to 

1986. His academic career began in 1972 until 1986 at the Pedagogical 

Institute of Caracas in the areas of experimental visual arts and color 

and, subsequently, in drawing and painting. Lazo received many awards, 

including the Fundarte Award at the II Biennial of Drawing at La Rinconada 

Museum of Art Award in 1986; the CONAC Award at the National 

Visual Arts Exhibition, Museum of Fine Arts in 1988; the Award in the 

Young Artist Category from the International Art Critics Association, 

Venezuelan Chapter, in 1989; and the Pedro Ángel González Visual Arts 

District Award in 1999. 

Carlos Contramaestre (Mérida, 1933 - Caracas, 1996) 

Contramaestre, a painter, writer, and doctor, was a founding member 

of several groups that reinvigorated the Venezuelan art scene during 

the sixties: Taller Libre de Arte (Free Arts Workshop, Mérida, 1952); Sardio 

(1956); El Techo de la Ballena (The Roof of the Whale, 1961); and 40 

Grados a la Sombra (40 Degrees to Shade, Maracaibo, 1964). He created 

Musaval in 1976 and was a cultural attaché for the Venezuelan Embassy 

in Madrid from 1985 to 1991. Informalism is prevalent in his piece created 

in Jajó (State of Mérida), Homenaje a la necrofilia (Homage to 

Necrophilia), which he showed in his first solo exhibition at The Roof of 

the Whale Gallery in 1962. This same year, he received an award at the 

Fourth National Expo of Drawing and Engraving organized by the School 

of Architecture and Urban Planning, Central University of Venezuela.

Carlos Sosa (Caracas, 1950) 

Sosa is a designer, illustrator and painter who masters contemporary 

techniques such as artistic installations. In 1967, he attended the Neumann 

Institute of Design under the tutelage of artists such as Gego, 

Manuel Espinoza, Luisa Richter, Alirio Palacios, Luisa Palacios, and 

Edgar Sánchez. The following year, Sosa participated for the first time 

in a collective exhibition, Logo 68 at the Cultural Center of Caracas. 

He created the design workshops Papoa Cuerits and Síntesis. In 1972, 

he founded the Integrated Design Center Workshop. In 1975, he was a 

Professor at the Neumann Institute of Design and as a Creative Director 

for the magazine, Resumen. Since 1980, he has spent his time between 

New York, Caracas, Barcelona (Spain), and Argentina. 

Elsa Gramcko (Puerto Cabello, 1925 - Caracas, 1994) 

Gramcko, a painter with a primarily self-taught background, attended 

open courses at the School of Liberal Arts at the Central University of 

Venezuela and audited classes taught by artist Alejandro Otero. 

Encouraged by Otero, she participated in national and international 

expos and exhibitions. Gramcko represented Venezuela at the International 

Fair in Brussels in 1958, the V Biennial of São Paulo, and the 

IX Festival of Cartagena in 1959. She received the John Boulton Award 

at the XXV Official Art Exhibition in 1964, the Second Place Award of 

the Exhibition D’Empaire in 1965, and the Armando Reverón Award 

at the XXVI Official Art Exhibition the same year. In 1968, she received 

the National Award in Sculpture at the XXIX Official Art Exhibition 

of Venezuela. 

Fernando Irazábal (Anzoátegui, 1936) 

A painter, sculptor, photographer, and graphic designer, Irazábal 

studied at the Cristobal Rojas Academy and also studied architecture 

at the Central University of Venezuela which he abandoned in 1956 to 

paint full-time. As a member of El Techo de la Ballena (The Roof of the 

Whale) from 1961 to 1964, he was one of the group’s most active 

proponents of Informalism and one of the movement’s greatest 

advocates in Venezuela. His work has been recognized with the 

Maria Eugenia Curiel Award at the XXIV Official Art Exhibition in 

1963 and with the Andrés Pérez Mujica Award at the XXII Arturo 

Michelena Exhibition in 1964. 

Francisco Hung (China, 1937 - Maracaibo, 2001) 

Hung arrived in Venezuela in 1950 and began his studies at the Julio 

Arraga Visual Arts Academy of Maracaibo in 1956. He continued his 

studies at the Academy of Fine Arts for Higher Studies in Paris and 

returned to Venezuela in 1963 to settle permanently in Maracaibo. 

Hung participated in the formation of 40 Grados a la Sombra (40 

Degrees to Shade) and maintained an active and successful participation 

in art exhibitions. In 1964, he received three of the highest honors 

from the Young Artists Exhibition organized by the Museum of Fine 


Arts and the Isai Leirne Acquisition Award for foreign artists at the 

Biennial of São Paulo. In 1965, Hung received the National Award in 

Painting at the XXVI Official Art Exhibition for his work “Floating matter.” 

Gabriel Morera (Madrid, 1933) 

Painter, sculptor, photographer, and ceramic artist, Morera took open 

drawing and painting courses at the Fine Arts Circle in Madrid. In 1960, 

he participated in the Informalism exhibitions Espacios vivientes (Living 

spaces) at the Maracaibo City Hall and the Experimental Exhibition at 

the Mendoza Gallery in Caracas. That same year, Morera showed his exhibition 

Cabezas filosóficas (Philosophical heads) at the Arne Juel Gallery 

in Copenhagen. The following year, he joined the avant-garde group El 

Techo de la Ballena (The Roof of the Whale). In 1968, Morera received the 

Armando Reverón Award at the XXIX Official Art Exhibition; the First 

Place Award and the Arterama Award at the Latin American Painting 

Competition (the “Codex Award”) in Buenos Aires. 

Gerd Leufert (Germany, 1914 - Caracas, 1998) 

Designer, painter, illustrator, and photographer, Leufert studied Art 

and Design in Germany and the United Sates, settling in Venezuela 

in 1951. In conjunction with his artistic career focused on abstract 

art, he successfully promoted Graphic Design as an established category 

among the visual arts in the country. During this time, he also 

organized several solo exhibitions. In 1964, he actively worked on 

the formation of the Neumann Institute of Design, where he was a 

professor until 1967. He was a founding member of the Associated 

Graphic Artists Workshop in 1979 and also worked with the Cobalto 

Workshop. He has received several awards, including the National 

Award in Visual Arts in 1990. 

Harry Abend (Poland, 1937) 

Abend is an architect graduated from the Central University of 

Venezuela. In the late 1960s, as a result of his work as a sculptor, he 

also dedicated his time to creating jewelry designs. Abend received 

the prestigious National Award in Sculpture in 1963. He has created 

a series of reliefs based on modular elements integrated into architectural 

designs, such as the sculptural work on the altar, roof and 

cupola of the Israeli Union Synagogue in Caracas in 1969. Other 

examples of Abend’s work in Caracas include the design and execution 

of the sculptural work on the roof and walls of the Community 

Hall in Parque Central in 1974 and the Door and Perimeter Gate of the 

Mercantil Headquarters Building in 2005.

Humberto Jaimes Sánchez (San Cristóbal, 1930 - Caracas, 2003) 

Jaimes began his art studies at the Caracas Academy of Fine Arts in 

1947. His studies were interrupted in 1950 when he was expelled 

along with a group of artists who protested against the institution’s 

administration and teaching methods. This group also included Omar 

Carreño, Jacobo Borges, Alirio Rodríguez, Víctor Valera, Angel Hurtado, 

José Antonio Dávila, Genaro Moreno, and Daniel Rincón, among 

others. That same year, these artists inaugurated a small showing of 

their works at the Cultural Center of Caracas and presented their position 

with regard to the Academy in the exhibition’s catalog. In 1960, 

Jaimes participated in the exhibition Espacios vivientes (Living spaces) 

at the Maracaibo City Hall, which brought together a group of Informalism 

artists for the first time. Subsequently, the Experimental 

Exhibition at the Mendoza Gallery in Caracas created a more unified, 

cohesive group of artists showcasing the Informalism movement. He 

received the National Award in Painting in 1962 and was the recipient 

of several other national recognitions between 1960 and 1966. 

Jorge Pizzani (Portuguesa, 1949) 

Illustrator, painter and graphic designer, Pizzani studied graphic design 

at the Neumann Institute of Design. He studied under the artists 

Gego, Manuel Espinoza and Abilio Padrón. Between 1973 and 1975, he 

was a member of the group of designers Quadrum, that also included 

Leonor Arráiz, Orlando Aponte and Manuel Espinoza, and he taught 

several classes in drawing at the Pedagogical Institute of Caracas. In 

1973, Pizzani showed his first solo exhibition of drawings at the 

Neumann Institute of Design. That same year, he participated in two 

collective exhibitions in Caracas shown at the Viva México Gallery 

and the Mendoza Gallery. His accolades include a mention for Best 

Poster at the First Annual Poster Exposition in 1979 and the Acquisition 

Award at the National Young Artists Exhibition organized by the 

Caracas Museum of Contemporary Art in 1981. 

José María Cruxent (Spain, 1911 - Coro, 2005) 

Painter, researcher, professor, archeologist, and author of several 

articles, books and essays about archeology and other topics, Cruxent 

was one of the most renowned exponents of Venezuelan Informalism 

in the sixties. He arrived in Venezuela in 1939, but his career in the 

arts began in 1960 when he was included as part of the Espacios 

vivientes (Living spaces) exhibition at the Maracaibo City Hall. This 

exhibition gathered a group of gestural and informalist painters that, 

in the same year, were asked to participate in the Experimental Exhibition 

of the Mendoza Gallery in Caracas. In 1961, he joined El Techo 

de la Ballena (The Roof of the Whale), a group that organized informal 

art exhibitions. 

124 Informe Anual 2011 

José Ramón Sánchez (Maracaibo, 1938) 

Sánchez studied at the Julio Arraga Academy of Visual Arts in Maracaibo 

(1956-1959) and at the Cristóbal Rojas Academy in Caracas 

(1959-1960). He received the Young Painters Award in 1960, then 

moved to Paris and studied at the Academy of Fine Arts for Higher 

Studies (1961-1965) where he was also a member of the surrealist 

group until 1971. After returning to Venezuela, Sanchez was a professor 

at the Neptalí Rincón Visual Arts Academy in Maracaibo. In 1974, he 

directed the Children’s Art Workshop of the Employee Association 

of the University of Zulia (1976-1979) and was a founding member 

of the Telémaco Workshop in Maracaibo. In the early eighties, he 

participated in several collective exhibitions in the United States. 

Juan Calzadilla (Guárico, 1930) 

Illustrator, art critic and poet, Calzadilla started his literary studies 

at the Pedagogical National Institute and later studied philosophy at 

the Central University of Venezuela. He had to interrupt his studies 

due to the closing of higher education institutes during the Marcos 

Pérez Jiménez dictatorship. Calzadilla started writing for a newspaper 

in Maracaibo and writing articles about the visual arts in Caracas. He 

participated in collective exhibitions with the pseudonym Esteban 

Muro. He served as director for the Visual magazine published by the 

Museum of Fine Arts from 1960 to 1962. He was also a founding member 

of the revisionist group El Techo de la Ballena (The Roof of the 

Whale). In 1968, he went to Maracaibo and studied at the graphic 

design workshop of Francisco Bellorín. In the late 1970s, he moved to 

Mérida where he taught contemporary art history classes at the 

University of the Andes. In 1996, he received the National Award in 

Visual Arts. He currently lives in Caracas. 

Luisa Richter (Germany, 1928) 

From 1946 to 1955, Richter studied at the März Academy and at the 

Independent Art School in Stuttgart, Germany. She also took classes 

under Willi Baumeister, one of the driving forces behind abstract art in 

Europe, at the National Academy of Visual Arts. In 1959, Richter moved 

to Venezuela and presented her first solo exhibit at the Museum of 

Fine Arts in Caracas. She also participated in the exhibition Espacios 

vivientes (Living spaces) at the Maracaibo City Hall and in the Experimental 

Exhibition at the Mendoza Gallery in Caracas. Richter was 

awarded, among other honors, the José Loreto Arismendi Award at 

the XX Official Art Exhibition in 1959; the National Award for Drawing 

and Engraving at the XXVIII Official Art Exhibition in 1967; and the 

National Award in Visual Arts and Education, Caracas, in 1982.

Manuel Mérida (Carabobo, 1939) 

Painter, illustrator and set designer, Mérida studied painting and 

sculpture at the Arturo Michelena Art Studio in Valencia. In 1959, he 

taught drawing at the Arturo Michelena Art Studio and the following 

year he moved to Caracas, where he worked on set designs for television. 

In 1977, he was named director of the set design department 

of Radio Caracas Television. In 1983, Mérida retired and moved to 

Paris. In his work as a painter, he has experimented with the principles 

of Informalism, assemblage and kinetic art. His work has been 

recognized several times at the Arturo Michelena Exhibition and on 

different occasions at the Annual Official Art Exhibition in Venezuela. 

Manuel Quintana Castillo (Miranda, 1928) 

Painter Quintana Castillo graduated from the Caracas Academy of Fine 

Arts in 1949. In 1955, he won the Henrique Otero Vizcarrondo Award at 

the XVI Official Art Exhibition. He taught at several institutions in the 

country from 1958 until 1974. In 1960, he participated in the Espacios 

vivientes (“Living Spaces” exhibition at the Maracaibo City Hall. Quintana 

Castillo also became renowned for his art reviews and for his affiliation 

with the avant-garde groups Sardio, The Roof of the Whale and 

Golden Lion. He won the National Award for Visual Arts in 1973 and the 

Arturo Michelena Award in 1978. In 1996, he received the Armando 

Reverón Award given by the Venezuelan Association of Visual Artists 

and was also honored at the IV Latin American Art Fair. 

Mario Abreu (Aragua, 1919 - Caracas, 1993) 

Abreu studied at the Caracas Academy of Fine Arts. In 1948, he participated 

in the creation of the Taller Libre de Arte (Free Arts Workshop). In 

1951, he presented his first solo exhibit at the Museum of Fine Arts. A 

few years later, Abreu joined the group of artists who represented 

Venezuela at the Third International Biennale of São Paulo. After living 

in Paris for 10 years, Abreu returned to Caracas in 1962 and represented 

Venezuela, along with other artists, at the XXXI Biennial of Venice. He 

received the National Award for Visual Arts in 1976. He was selected to 

participate in the “Contemporary Venezuelan Art”, Pavilion of the Arts, 

at the International Fair in Sevilla in 1992. Three months after his death, 

the Museum of Art in Maracay adopted the name Mario Abreu Museum 

of Contemporary Art. 

Maruja Rolando (Anzoátegui, 1923 - London, 1970) 

Rolando started her artistic studies in the United States attending 

classes in painting at the Museum of Fine Arts in Boston. From 1950 to 

1951, she took classes at the Art Students League of New York. After returning 

to Caracas, she took painting classes under the direction of Armando 

Lira at the Academy of Fine Arts. In 1961, she was invited to be 

a part of the group of artists who represented Venezuela at the Biennial 

of São Paulo. In 1967, Rolando opened her own engraving workshop after 

working at the Elisa Elvira Zuloaga workshop. In 1969, she worked with 

Luisa Palacios on large-scale engraving projects. She has received many 

accolades, including an award for her works shown at the Official Art Exhibitions 

in 1962 and 1968. 


Oscar Pellegrino (Caracas, 1947 - 1991) 

Pellegrino studied in the workshop of painter Pedro Centeno Vallenilla 

in 1962. In 1965, he attended the School of Architecture and Urban 

Planning at the Central University of Venezuela and participated in 

the Annual Painting Exhibition for architecture students organized 

by the College. In 1967, he showed his first solo exhibit at the Teaching 

Institute of Caracas. During the closing of the Central University of 

Venezuela in 1969, he moved to Florence, Italy and traveled to many 

European cities. Pellegrino earned his architecture degree in 1972 

and returned to painting in 1974, participating in the collective exhibitions 

II Centro Plaza Exhibition in Caracas and 8 pintores de oriente 

(Eight eastern painters) at the Cultural Centre of Barcelona, located 

in the State of Anzoátegui. In 1977, Pellegrino participated in the V 

National Young Artists Exhibition in Caracas, where he won the 

Acquisition Award from the judges. In 1988, he received the International 

Association of Art Critics Award, Venezuela Chapter, for the 

category of young artist. 

Oswaldo Vigas (Carabobo, 1926) 

Nationally and internationally-recognized painter, Vigas’ work is 

known for summarizing modern avant-garde trends, such as cubism 

and expressionism, with allegories to Venezuelan primitive art. He 

was a member of the Taller Libre de Arte (Free Arts Workshop) in 

1949. In 1952, he worked at the lithograph workshop of Marcel 

Jaudon, located in the Academy of Fine Arts for Higher Studies in 

Paris and took art history courses at the Sorbonne. Vigas was part of 

the integration art project of the University Campus of Caracas, promoted 

by Carlos Raul Villanueva in 1953. He has been recognized with 

many awards, such as the National Award for Visual Arts in 1952, the 

Arturo Michelena Award in 1952 and 1964, and a Top Mention at the 

First Latin American Art Biennale in Colombia in 1973. He was also 

honored at the VII Latin American Art Fair in 1999.) 

Teresa Casanova (Caracas, 1932) 

Painter, sculptor, engraver, ceramic artist, and graphic designer, 

Casanova studied at the University of Buenos Aires, School of Philosophy 

and Literature, in Argentina. In 1951, she moved to Italy, 

where she studied to be an art critic at the University of Rome and 

participated in the painting and drawing workshop of Jorge Piqueras. 

In 1953, Casanova moved to Bogota, Colombia and attended the 

Armando Villegas workshop. Three years later, she returned to 

Venezuela and experimented with engraving at the Elisa Elvira 

Zuloaga workshop and took painting courses at the Cristóbal Rojas 

Academy. From 1954 to 1968, she studied at the Neumann Institute of 

Design and was a professor from 1974 to 1980. Casanova has been 

recognized with several awards, including the Federico Brandt Award 

at the XXIX Official Art Exhibition in 1968.

Gabriel Morera 

Untitled (Cabezas Series), 1961 

Mixed media on canvas 

35.2 x 24.2 x 1.5 cm


Untitled, around 1955 


51.2x40.2 cm 

Fantasía, undated 

Oil on printed plastic 

35x43 cm 

Alejandro Otero 

La bisagra roja, 1961 

Painted iron on wood 

31.3x23.5x7 cm 

Este fin de semana, 1965 

Colored newsprint on Masonite 

51x43.5 cm 

Ce Cinq Mars 1825, 1961 

Glued paper on wood 

64x36.2x3.3 cm 

Materia azul con tornillo, 1961 

Tempera on wood 

30x30 cm 

Ángel Hurtado 

Noche transfigurada. Homenaje 

a Schömberg, 1963 

Oil and epoxy on canvas 

190x140 cm 

Ángel Luque 


Ink on cardboard 

57x56.2 cm 

Antonio Lazo 

Río Negro Guaviare, 1993 

Charcoal, chalk and acrylic on canvas 

207x250 cm 

Carlos Contramaestre 


Ink on paper 

55x48.4 cm 

Carlos Sosa 

338340, 1988 

Asphalt and oxides on canvas 

180x135 cm 

Agenda Series (Polytic), 1989 

Resins and acrylic on canvas 

141x70.6 cm each one 

Elsa Gramcko 

R-32, 1960 

Acrylic, gouache and sand on canvas 

84x110 cm 

Horno Solar, 1967 

Mixed media on wood, 

engranaje y lámpara, 1967 

60.1x65.7x11.7 cm 


Bestia 10, around 1960 

Cardboard and putty on wood 

120x149 cm 


Paint and oil on paper 

72x101 cm 


Mixed media on paper 

52.1x62.8 cm 



Materias flotantes, 1964 

Oil on canvas 

95.7x145 cm 

Pintura Nº 5, 1964 

Oil, acrylic, and plaster on canvas 

145x228 cm 


Tempera on cardboard 

69.8x400 cm 

Gabriel Morera 

Untitled (Cabezas Series), 1961 

Mixed media on canvas 

35.2x24.2x1.5 cm 

Gerd Leufert 

Monocromo blanco, 1961 

Oil on wood 

80x60 cm 

Harry Abend 

Relieve, 1964 

Bronze (1/3) 

62.5x146x25 cm 


Exterior 1, 1963 

Oil on canvas 

110x89.7 cm 

Personaje mural, 1958 


45x32.5 cm 

Stage of believe, 1969 


69x55 cm

Jorge Pizzani 

De Goya (Action GAN Series), 2005 

Acrylic on canvas 

170x136 cm 

El mundo lo dice antes, 1972 

Ink on paper 

50x70 cm 


Le pliegé de l' araynée, 1971 

Oil and textile on canvas 

99x100 cm 

Une forme speciale d' hipocrisie 

"La Pudeur", 1968 


180x130 cm 

José Ramón Sánchez 

Las tres alegres comadres, 1984 

Acrylic, cardboard and textile on paper 

99.8x150 cm 

Juan Calzadilla 

Crónica de Caracas con cráneos 

de la Digepol, 1965 

Ink on paper 

26.4x17.7 cm 

Figuras en un espacio suspendido, 1987 

Acrylic and ink on cardboard 

35x50 cm 

General Production: Corporate Communications Management 

Artwork Photography: Mercantil Collection / Walter Otto 

Graphic Design: Arte Impreso H.M., C.A. 

Printing: La Galera de Artes Gráficas, C.A. 

Caracas, Venezuela, March 2012. 

Luisa Richter 

Composición, 1958 

Pigments and fine sand on canvas 

159x95 cm 

Manuel Mérida 



42.5x55 cm 

Manuel Quintana Castillo 

Untitled, undated 


46x38.5x2 cm 

Mario Abreu 

Vitral, 1959 

Oil on Canvas 

130.5x97.5 cm 

Maruja Rolando 


Oil on papier-mâché 

47x41 cm 

Oscar Pellegrino 

Untitled (Cáliz), undated 

Vinyl-acrylic paint and mixed media 

on canvas 

160x120x2 cm 

Seminario, 1988 

Vinyl-acrylic paint, plaster and cement 

on wood 

120x365x2 cm 

Oswaldo Vigas 

Origen, 1967 

Oil on canvas 

163x130 cm 

Teresa Casanova 

Intromisión retrospectiva, 1962 

Oil and acrylic on canvas 

91x147 cm

Avenida Andrés Bello Nº 1, Edificio Mercantil 

Caracas 1050, Venezuela. Phone: (58-212) 503.1111

Annualreport

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