Annualreport

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Operating Expenses Net Income Year Ended (In thousands of Bs and millions of US$, except percentages) Earnings from Financial Operation Operating Expenses Personal Expenses Taxes (Current and Deferred) Minority Interest Net Income for the Year Operating Expenses Operating and personnel expenses rose 37.7% (Bs 1,489 million) year on year due mainly to: • Bs 490 million increase in personnel expenses, 28.7% compared to 2010, due to the application of wage increase policies. For Mercantil Banco Universal, assets per employee rose from Bs 7.0 million in 2010 to Bs 9.7 million in 2011. At Mercantil Seguros, net earned premiums per employee increased from Bs 0.9 million in 2010 to Bs 1.1 million in 2011. For the overseas business this indicator went from US$ 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 44 Annual Report 2011 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. 45 Mercantil Servicios Financieros
Page 1 and 2: AnnualReport 2011
Page 3 and 4: AnnualReport 2 0 1 1 CONTENTS Merca
Page 5 and 6: Mercantil is Venezuela’s in equit
Page 7 and 8: Financial Highligths Earnings Conso
Page 9 and 10: Notice of Ordinary General Sharehol
Page 11 and 12: * Dollar figures are given for refe
Page 13 and 14: The Stock Repurchase Program initia
Page 15 and 16: Inflation closed at 6.9% (6.5% in 2
Page 17 and 18: Mercantil Personal and Commercial O
Page 19 and 20: It also launched the Gold and Plati
Page 21 and 22: Special mention should be made of M
Page 23 and 24: Statutory Auditors’ Report ��
Page 25 and 26: Financial Statements (In accordance
Page 27 and 28: Consolidated Balance Sheet (In thou
Page 30 and 31: Fernando Irazábal Bestia 10, aroun
Page 32 and 33: Latin America During 2011 the regio
Page 34 and 35: Francisco Hung Materias flotantes,
Page 36 and 37: In the insurance business in Venezu
Page 38 and 39: Investments Portfolio by Issuer Bs
Page 40 and 41: Loan Portfolio by Business Segment
Page 42 and 43: Deposits by Business Segment Bs 81,
Page 44 and 45: Loan Portfolio Evolution Million Bo
Page 48 and 49: Summary of the Accounting Principle
Page 50 and 51: Humberto Jaimes Sánchez Exterior 1
Page 52 and 53: Personal Banking Deposits Year 2011
Page 54 and 55: At the close of 2011, Commercial Ba
Page 56 and 57: Corporate Banking During 2011, the
Page 58 and 59: Corporate Products The Deposit Prod
Page 60 and 61: In the Venezuelan money market, the
Page 62 and 63: Portfolio of Investments Available
Page 64 and 65: Private Banking and Wealth Manageme
Page 66 and 67: José Ramón Sánchez Las tres aleg
Page 68 and 69: In 2011, options or service functio
Page 70 and 71: Alberto Brandt Untitled, around 195
Page 72 and 73: Harry Abend Relieve, 1964 Bronze 1/
Page 74 and 75: Credit Risk Breakdown of Credit Ris
Page 76 and 77: Market Risk A financial institution
Page 78 and 79: Price Risk Positions of Interest Ra
Page 80 and 81: Maruja Rolando Untitled, 1960 Oil o
Page 82 and 83: (1) Dollar figures are given for re
Page 84 and 85: Mercantil Commercebank Florida BanC
Page 86 and 87: Other subsidiaries of Mercantil Ser
Page 88 and 89: Humberto Jaimes Sánchez Stage of b
Page 91 and 92: Prevention and Control of Money Lau
Page 93 and 94: Evaluation Special PCLC/FT - AML/TF
Page 96 and 97:
94 Annual Report 2011
Page 98 and 99:
Social Development and Healthcare P
Page 100 and 101:
Elsa Gramcko R-32, 1960 Acrylic, go
Page 102 and 103:
Another very significant aspect of
Page 104 and 105:
Board of Directors’ Compensation
Page 106 and 107:
Internal Audit Manager In accordanc
Page 108 and 109:
Ángel Hurtado Noche transfigurada.
Page 110 and 111:
Awards and Acknowledgements The wor
Page 112 and 113:
Alberto Brandt Fantasía, undated O
Page 114 and 115:
Víctor J. Sierra A. Member of the
Page 116 and 117:
Nerio Rosales Rengifo Member of the
Page 118:
Alberto Benshimol M. Manager of Ins
Page 121 and 122:
MERCANTIL, C.A. BANCO UNIVERSAL Ave
Page 123 and 124:
I n f o r m a l i s m i n V e n e z
Page 125 and 126:
Carlos Sosa (Caracas, 1950) Sosa is
Page 127 and 128:
Manuel Mérida (Carabobo, 1939) Pai
Page 129 and 130:
Alberto Brandt Untitled, around 195
Page 131:
Avenida Andrés Bello Nº 1, Edific
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Annualreport

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