Annualreport

Financial Margin
Year Ended
(In thousands of Bs and millons of US$,
except percentages)
Interest Income
Interest Expense
Net Interest Income
Provision for losses on loan Portfolio
Expenses for Devaluation of
Available-for-Sale Securities
Net Financial Margin
Income Evolution
Million Bolivars
6.000
5.000
4.000
3.000
2.000
1.000
7.9%
2008
7.3%
7.1%
Income Statements
The main variations between the figures for December 31, 2011 and December 31, 2010 are
summarized below:
2011
US$ (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
Net Interest Income
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%
41 Mercantil Servicios Financieros
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
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