Annualreport

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