Mercantil Servicios Financieros CSE: MVZ.A / MVZ.B OTC: MSFZY / MSFJY. June 2010 Results

Transcription

1 Mercantil Servicios Financieros CSE: MVZ.A / MVZ.B OTC: MSFZY / MSFJY June 2010 Results

2 Agenda Mercantil Servicios Financieros Corporate Strategy June 2010 Results Cumulative Annual Growth Mercantil s Stock Recent Performance Positioning, Ratings and Awards Performance of Subsidiaries Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Mercantil Seguros Mercantil Merinvest Holding Mercantil Internacional Asset Management

3 Mercantil Servicios Financieros Mercantil Servicios Financieros ( Mercantil ) is Venezuela s leading financial services provider with US$ 16,990 million in assets. It also operates in 10 countries in the Americas, Europe and Asia. Mercantil is focused in the banking, insurance and wealth management businesses. Within its main markets, Venezuela and the United States (primarily in Florida), MERCANTIL holds important positions through its various subsidiaries: Mercantil C.A. Banco Universal, in Venezuela; Mercantil Commercebank, N.A. a commercial Bank in Florida, U.S.A.; Mercantil Bank (Schweiz) AG. in Zurich, Switzerland; Mercantil Seguros and Mercantil Merinvest (investment banking) in Venezuela. 3

4 Mercantil s Executive Summary Leading financial institution in Venezuela Benefits from a well-diversified client base Important international presence (mainly Venezuela, U.S.A. and Switzerland) to fulfill the financial needs of its customer base Achieved steady growth with excellent performance despite the changing economic conditions in Venezuela Focuses its efforts on increasing its operating efficiency, keeping adequate risk management standards and maintaining an efficient assets and liabilities management 4

5 Mercantil is the leading financial institution in Venezuela Full range of financial services Long-lasting performance in the Venezuelan market (since 1925) Among leaders in Loan Portfolio Leader in Mutual Funds Third largest insurance company in Venezuela Pioneer and leader in electronic services and trust funds Client base of approximately 3.7 million Strong franchise Experienced management team 5

6 Mercantil Global Management Organization Executive Committee (average tenure 20 years) Board of Directors Secretary of the Board of Directors Guillermo Ponce Compliance Manager */ Luis Urosa President Gustavo Marturet Global Audit Manager Toribio Cabeza Board Directors Committees Executive President Alejandro González Global Chief Legal Counsel Luis A. Fernandes Global Strategic Planning Manager Anahy Espiga Executive President of Mercantil Banco Universal Executive President of Mercantil Commercebank Executive President of Mercantil Merinvest Executive President of Mercantil Seguros Global Business and Personal Banking Manager Nerio Rosales Global Corp. and Investment Banking Manager Philip Henríquez Global Private Banking and Wealth Management Manager Rosa de Costantino Global International Operations Manager Millar Wilson Global Chief Financial Officer Alfonso Figueredo Global Operations and Technology Manager Armando Leirós Human Resources and Comm. Luis Calvo Global Chief Risk Officer Fernando Figueredo Insurance and Financial Business Manager Alberto Benshimol As of July 1, 2010 * This functions focuses on Mercantil Banco Universal y Mercantil Merinvest 6

7 Mercantil s Corporate Chart 99,93% 100% 100% 100% 100% Mercantil Banco Universal Universal Bank in Venezuela (1925) 289 branches 1,357 ATM s 40,785 P.O.S. Mercantil s Ally with more than 110 service points 1 agency in Miami 1 branch in Curacao Representative Offices in: - Sao Paulo - Bogotá - Lima - México - New York As of June 30, 2010 Mercantil Commercebank Florida Bancorp Mercantil Commercebank N.A. (1987) U.S. Bank 15 Branches in Fl. 1 branch in NY 1 branch in Houston 1 LPO in Weston 25 ATM s Mercantil Commercebank Investment Services (2002) U.S. Broker-Dealer Mercantil Commercebank Trust Company (2004) U.S. Trust Services Banking Holding Mercantil Internacional Mercantil Bank (Schweiz) (1988) Mercantil Bank & Trust Ltd. (Cayman Islands) (1986) Mercantil Bank (Curacao) (1975) Mercantil Bank (Panama) (1977) General License (Dec 2007) Mercantil Trade Asia Ltd. (Hong Kong) (2008) Insurance Employees: 8,422 in Venezuela and 815 abroad Mercantil Seguros Insurance in Venezuela (1974) - 33 branches Wealth Management Mercantil Merinvest Mercantil Merinvest (1989) Investment Banking, Brokerage & Trading in Venezuela Mercantil Servicios de Inversión (2002) Assets under Management in Venezuela Mercantil Sociedad Administradora de Entidades de Inversión Colectiva (1995) Mutual Funds in Venezuela 7

8 Mercantil s Summary - IIQ 2010 Net Income Earnings per Share ROE* Bs. 952 Million (594.9% IIQ09) US$ 331 Million (418.1% IIQ09) Bs (599.5% IIQ09) US$ 3.31 (417.2% IIQ09) 65.5% in IIQ10 (12.8% in IIQ09) ROA* 6.4% in IIQ10 (1.1% in IIQ09) Total Assets: Bs. 72,877 Million (+50.2% Jun. 09) = US$ 16,990 Million Shareholders Equity: Bs. 7,532 Million (+69.9% Jun. 09) = US$ 1,755 Million Past due and Non-performing Loans / Gross Loans: 4.3% (3.3% in IIQ09) Operating Expenses / Average Total Assets: 5.6% (5.5% in IIQ09) Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February (*) Annualized 8

9 Contribution of Mercantil s Subsidiaries (Bs.) In million Bs. Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Holding Mercantil Internacional Mercantil Seguros Mercantil Merinvest Other Mercantil Servicios Financieros Total Assets 40,054 27,342 2,309 2, ,877 % Assets 55% 38% 3% 4% 0% 0% 100% Loans (Net) 21,279 15, ,177 Investments 6,872 10,051 1,710 1, ,779 Deposits 34,318 20,423 2,040 56,781 Shareholders' Equity 4,298 2, ,532 (1) Net Income (accum) 1, ,341 Assets under Management 10,242 4,495 1, ,395 Employees 6, , ,237 Figures according to the standards of the Venezuelan Securities and Exchange Commission. (1) According to USGAAP, Mercantil Commercebank NA Net income for the semester is Bs. 10,1, mainly due to allowance for loan losses. The difference between each institution s financial statements and the figures in the contribution of subsidiaries chart above is due to accounting conciliations between its own regulator. As of June 30,

10 Contribution of Mercantil s Subsidiaries (US$) In million US$ Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Holding Mercantil Internacional Mercantil Seguros Mercantil Merinvest Other Mercantil Servicios Financieros Total Assets 9,338 6, ,990 % Assets 55% 38% 3% 4% 0% 0% 100% Loans (Net) 4,962 3, ,668 Investments 1,603 2, ,845 Deposits 8,001 4, ,238 Shareholders' Equity 1, ,755 (1) Net Income (accum) Assets under Management 2,388 1, ,055 Employees 6, , ,237 Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February (1) According to USGAAP, Mercantil Commercebank NA Net income for the semester, is US$ 3,5 mainly due to allowance for loan losses. The difference between each institution s financial statements and the figures in the contribution of subsidiaries chart above is due to accounting conciliations between its own regulator. As of June 30,

11 Mercantil s Subsidiaries Contribution by Business Segment Total Assets + Managed Assets Total Income (1) (1) Banking (77%) Wealth Management (19%) Insurance (3%) Others (1%) Banking (86%) Insurance (13%) Wealth Management (1%) Total Bs. 90,272 Million US$ 21,046 Million Total Bs. 2,208 Million US$ 768 Million Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February (1) Net Interest Income + Other Operating Income, Net. As of June 30,

12 Mercantil s Assets by Currency 44% 56% Dollars Bolivars Total Bs. 72,877 Million US$ 16,990 Million Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

13 Mercantil s Assets Distribution Total Assets in Venezuela Loan Portfolio (50%) Venezuelan Gov. (10%) Venez. Central Bank (7%) Private (2%) Cash & Equivalent (13%) Other Assets (5%) Current Accnt. BCV (13%) Investments (19%) 1% 37% 4% 54% 4% Total Assets Bs. 72,877 Million US$ 16,990 Million Total Assets in U.S.A. Mercantil Banco Universal -USA Branches Mercantil Commercebank Florida Bancorp (USA) Other Companies (Venezuela) Mercantil Banco Universal - Venezuela Other Countries Loan Portfolio (56%) U.S. Government (24%) U.S.Agencies (10%) Private (3%) Venezuelan Gov. (1%) Other Assets (6%) Investments (38%) Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

14 Mercantil s Financial Assets 36% of Financial Assets correspond to the Investment Portfolio and 64% to Gross Loans. 91.4% of Mercantil s Loan Portfolio is classified as normal risk. Investment Portfolio Venez. Government (24.6%) US Government (34.9%) 36% Venez. Central Bank (14.7%) US Agencies (14.8%) Total Bs. 20,779 Million US$ 4,845 Million International Priv. Sector (9.4%) Venez. Private Sector (1.6%) 64% Gross Loan Portfolio by Economic Activity Total Bs. 38,362 Million US$ 8,944 Million Commercial (34.3%) Construction (7.8%) Agricultural (9.2%) Resid. Mortgage (6.8%) Industrial (6.9%) Credit Cards (9.7%) Trade (10.6%) Other (6.3%) Car loans (3.1%) Services (5.4%) Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

15 Mercantil s Distribution of Loans and Deposits by Client Segment Distribution of Net Loans (Million Bs.) 37,177 11,295 17% 45% 38% 29.0% 14,572 23% 42% 35% 32.7% 19,338 25% 42% 33% 14.9% 22,219 32% 42% 27% 22.1% 27,138 32% 46% 22% Jun-10 19,480 47% 32% 21% 29.6% Distribution of Deposits (Million Bs.) 25,247 51% 24% 25% ,288 48% 24% 28% ,211 52% 23% 25% 18.3% 42,848 53% 22% 25% 37.0% 32.5% 26% 46% 28% 56,781 56% 23% 21% Jun-10 Individuals SME s Large Corporations 15

16 Mercantil s Distribution of Deposits by Account Type Time Non Interest Bearing Deposits Demand Deposits 13% 24% Savings Deposits 30% Interest Bearing Demand Deposits 33% Total Bs. 56,781 Million US$ 13,238 Million Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

17 Mercantil s Composition of Total Income Financial Margin Exchange Gains and Losses Other Income Commissions and Insurance Premiums, Net Gain (Loss) in Securities Trading Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

18 Mercantil s Asset Quality 5% 5% Past due and Non-performing Loans/ Gross Loan Portfolio 632.8% Allowances for losses on Loan Portfolio/ Past due and Non-performing Loans 4.3% 680% 4% 4% 3.3% 480% 3% 3% 264.3% 285.7% 2.5% 280% 2% 2% 1% 1% 0.3% 0.7% 0.6% 110.6% 96.5% 71.6% 80% 0% IIQ % 18

19 Operating Efficiency Mercantil Banco Universal Volume of Transactions (Monthly Avg. in Thousand) Internet IVR Operator Mercantil Commercebank N.A. Volume of Transactions (Monthly Avg. in Thousand) POS ATM s Branches 19

20 Mercantil s Summary of Consolidated Balance Sheet and Income Statement 06/30/09 12/31/09 06/30/10 06/30/10 (%)Change in Bs. (%)Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs. Jun-10 Dec-09 vs. Jun-10 Total Assets 48,514 53,075 72,877 16, % 37.3% Loan Portfolio (net) 22,109 27,138 37,177 8, % 37.0% Investments in Securities 15,465 14,044 20,779 4, % 48.0% Deposits 38,483 42,848 56,781 13, % 32.5% Shareholders Equity 4,432 4,880 7,532 1, % 54.3% Net Income (accum) , % 68.5% Consolidated Balance Sheet according to the standards of the Venezuelan Securities and Exchange Commission (1 Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

21 Mercantil s Financial Ratios Balance Structure Jun Jun-10 Financial Assets/Total Assets 77.9% 78.1% 78.9% Loans/Deposits 59.4% 65.4% 67.6% Profitability Net Income/Average Equity (ROE) 14.2% 17.8% 46.2% Net Income/Average Total Assets (ROA) 1.3% 1.6% 4.5% N.I.M. 7.3% 7.3% 7.4% Efficiency Operating Expenses/Average Total Assets 5.3% 5.4% 5.3% Operating Expenses/Total Revenues 61.9% 58.4% 44.0% Capital Equity/Risk Weighted Assets (Required 8%) 19.3% 18.3% 21.0% Equity/Total Assets 9.1% 9.2% 10.3% Figures according to the standards of the Venezuelan Securities and Exchange Commission 21

22 Mercantil s Evolution of Financial Ratios ROE (%) ROA (%) NIM (%) Commissions and Other Income/Total Income (%) Figures are based on Consolidated Financial Statements, according to the standards of the Venezuelan Securities and Exchange Commission (1) Earnings during 2005 include extraordinary gains from the sale of investments in Bancolombia 22

23 Mercantil s Evolution of Financial Ratios Equity/Risk-Weighted Assets(%) Total Assets & Loans (net) (Million Bs.) 72,877 Mín. 8% 24,275 31,717 14,580 11,295 39,050 19,338 46,830 22,219 53,075 27,138 37, Jun-10 Assets Loans (net) Operating Expenses/Average Assets (%) Operating Expenses/Total Income (%) 5.7% 5.8% 2.6% 2.7% 5.4% 5.6% 5.4% 5.3% 2.8% 2.7% 2.8% 2.7% 55.4% 64.2% 61.3% 57.7% 58.4% 44.0% 3.1% 3.1% 2.6% 2.9% 2.6% 2.6% (1) IH IH2010 Figures according to the standards of the Venezuelan Securities and Exchange Commission (1) Includes Bs. 50 million from the new Mercantil Employee savings scheme 23

24 Mercantil s Cumulative Annual Growth (Bs.) Total Assets (Million Bs.) Total Deposits (Million Bs.) CAGR 27.7 % CAGR 26.8 % Net Loan Portfolio (Million Bs.) Net Income (Million Bs.) CAGR 30.3 % CAGR 18.0 % * * Net earnings from the sale of Bancolombia s Stockholding Figures according to the standards of the Venezuelan Securities and Exchange Commission. Acquisitions in 2000 and 2001 were a key factor in Mercantil s steady growth, achieving a leading position in Venezuela Expansion in subsidiaries abroad contributed significantly to Asset growth Efforts in reducing operating expenses and contribution from position in foreign currency have contributed to results 24

25 Mercantil s Cumulative Annual Growth (US$) Total Assets (Million US$) Total Deposits (Million US$) CAGR 9.4 % CAGR 8.7 % Net Loan Portfolio (Million US$) CAGR 11.7 % Net Income (Million US$) CAGR 15.4 % * Net earnings from the sale of Bancolombia s Stockholding Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December

26 Agenda Mercantil Servicios Financieros Corporate Strategy June 2010 Results Cumulative Annual Growth Mercantil s Stock Recent Performance Positioning, Ratings and Awards Performance of Subsidiaries Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Mercantil Seguros Mercantil Merinvest Holding Mercantil Internacional Asset Management

27 Mercantil s Stock Price As of June 30, /3/2005 3/8/2005 5/11/2005 7/14/2005 9/16/ /21/2005 1/24/2006 3/29/2006 6/1/2006 8/4/ /9/ /12/2006 2/14/2007 4/19/2007 6/22/2007 8/27/ /30/2007 1/2/2008 3/6/2008 5/9/2008 7/14/2008 9/16/ /19/2008 1/22/2009 3/27/2009 6/1/2009 8/4/ /7/ /10/2009 2/18/2010 5/4/2010 Price -(Bs.) Price MVZ A Price MVZ B CS E Index (Adjusted)

28 Mercantil s Stock performance since incorporation 4,800 4,500 4,200 3,900 3,600 3,300 3,000 2,700 2,400 2,100 1,800 1,500 1, (1) Daily Exchange Rates 4,800 4,500 4,200 3,900 3,600 3,300 3,000 2,700 2,400 2,100 1,800 1,500 1, /08/97 17/11/97 23/02/98 01/06/98 07/09/98 14/12/98 22/03/99 28/06/99 04/10/99 10/01/00 17/04/00 24/07/00 30/10/00 05/02/01 14/05/01 20/08/01 26/11/01 04/03/02 10/06/02 16/09/02 23/12/02 31/03/03 07/07/03 13/10/03 19/01/04 26/04/04 02/08/04 08/11/04 14/02/05 23/05/05 29/08/05 05/12/05 13/03/06 19/06/06 25/09/06 01/01/07 09/04/07 16/07/07 22/10/07 28/01/08 05/05/08 11/08/08 17/11/08 23/02/09 01/06/09 07/09/09 14/12/09 05/04/10 Million Bs. Million US$ Bs. 3,006 Million (US$ 699 Million) as of Jun. 30, 2010 Market Cap in Bs. Market Cap in US$(1)

29 Agenda Mercantil Servicios Financieros Corporate Strategy June 2010 Results Cumulative Annual Growth Mercantil s Stock Recent Performance Positioning, Ratings and Awards Performance of Subsidiaries Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Mercantil Seguros Mercantil Merinvest Holding Mercantil Internacional Asset Management

30 Mercantil s Positioning Ranking Market Share Volume (Million Bs.) Volume (Million US$) Vzla Mercantil Banco: Gross Loans % 22,052 5,141 Mercantil Banco: Total Deposits (1)(2) % 33,244 7,750 Mercantil Banco: Total Dep. + Inv. sold under Rep Agrmt % 33,602 7,834 Mercantil Banco: Deposits (Excluding Government) % 32,130 7,491 Mercantil Banco: Assets+ Inv. Sold under Rep Agrmt % 40,465 9,434 Mercantil Banco: Assets (2) % 40,107 9,350 Mercantil Banco: Assets Under Management % 10,242 2,388 Mercantil Merinvest: Mutual Funds % Mercantil Seguros: Net Premiums (3) % 1, U.S.A. Mercantil Commercebank: Deposits (4) 18/ % 8,166 3,808 Mercantil Banco Universal: Based on non consolidated financial statements, following Superintendency of Banks standards. (1) Includes: savings, time and demand deposits + securities issued by the Institution + Restricted Deposits + Other Liabilities with Financial Institutions in Venezuela up to and exceeding one year. (2) Does not include investments sold under repurchase agreement Mercantil Seguros: (3) Figures according to Venezuelan Insurance Superintendency standards Mercantil Commercebank N.A.: (4) Figures based on US GAAP, following FDIC as of 06/30/2008. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

31 Mercantil s Ratings Mercantil Servicios Financieros Fitch Ratings Clave National Ratings Long-term AA(Ven) - Short-term F1+(Ven) - Rating for Unsecured Bonds (Long-term in local currency) A2 A2 Rating for Commercial Paper (Short-term in local currency) A1 A1 Mercantil Banco Universal Fitch Ratings Moody's National Ratings Long-term AA+(Ven) - Short-term F1+(Ven) - International Ratings Long-term (Foreign Currency) B+ B3 Short-term (Foreign Currency) B - Long-term (Local Currency) B+ B1 Short-term (Local Currency) B - Individual D E+ Mercantil Commercebank Florida Bancorp and Mercantil Commercebank N.A. Fitch Ratings International Ratings Long-term Deposit (Mercantil Commercebank N.A. only) BB+ Long-term BB Short-term B Individual C/D Mercantil Servicios Financieros ranks among the top Venezuelan issuers Mercantil Banco Universal ranks on the top among Venezuelan private banks in terms of Venezuelan National Ratings Mercantil Banco Universal has the highest international rating for banks in Venezuela As of June 30,

32 Mercantil s Awards In a study 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. Mercantil Banco ranked number 290 in the survey and is the tenth leading financial services companies in Latin America. In April 2010 Mercantil Servicios Financieros (MERCANTIL) was selected among the top 2000 leading companies in the world by the prestigious Forbes Magazine. MERCANTIL came in at number 1,297 being the only Venezuelan institution from the financial sector moving forward 36 positions since For the second year running Mercantil Commercebank received in April 2010 the Top 100 Minority Business Award awarded by the Greater Miami Chamber of Commerce (GMCC). This year the bank was recognized in the Community Involvement category. In 2009 the Bank received the prize in the Employee Initiative category. According to the fifth survey conducted by the Great Place to Work Institute Venezuela in April 2010, Mercantil Banco and Mercantil Seguros ranked among the 15 Best Companies to Work for in Venezuela. Mercantil Banco is the only financial institution to receive this recognition for the fifth year running and comes tenth in the ranking. Mercantil Seguros achieved this distinction for the third time and is the only one in the insurance sector, ranking ninth. All Logos are registered trademarks 32

33 Agenda Mercantil Servicios Financieros Corporate Strategy June 2010 Results Cumulative Annual Growth Mercantil s Stock Recent Performance Positioning, Ratings and Awards Performance of Subsidiaries Mercantil Banco Universal Mercantil Commercebank Florida Bancorp Mercantil Seguros Mercantil Merinvest Holding Mercantil Internacional Asset Management

34 Mercantil Banco Universal

35 Mercantil Banco Universal Summary of Consolidated Balance Sheet and Income Statement 6/30/09 12/31/09 6/30/10 6/30/10 (%)Change in Bs. (%)Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs. Jun-10 Dec-09 vs. Jun-10 Total Assets (2) 33,705 37,322 40,590 9, % 8.8% Loan Portfolio (net) 15,582 20,287 21,279 4, % 4.9% Investments in Securities (2) 8,581 6,669 6,882 1, % 3.2% Deposits (2) 29,258 32,725 35,138 8, % 7.4% Shareholders Equity 2,882 3,300 4, % 28.0% Net Income (accum) % -38.8% Según Normas de la Superintendencia de Bancos (1) Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February (2) Includes investments sold under repurchase agreements 35

36 Mercantil Banco Universal Financial Ratios Jun Jun-10 Balance Structure Financial Assets/Total Assets 72.1% 73.1% 70.8% Loans/Deposits 57.1% 65.6% 63.8% Profitability Net Income/Average Equity (ROE) 23.9% 25.2% 23.5% Net Income/Average Total Assets(ROA) 2.1% 2.2% 2.3% N.I.M. 10.7% 10.0% 10.4% Efficiency 0.0% Operating Expenses/Average Assets 5.3% 4.9% 4.9% Operating Expenses/Total Revenues 51.2% 51.1% 47.3% Capital Equity/Total Assets (Current reg. Min. 8 %. 10% up to Dec. 2005) (1,2) 8.8% 10.2% 11.8% Equity/Total Risk Based Assets (12%) (1,2) 15.3% 17.0% 17.1% Consolidated Balance Sheet according to the standards of the Superintendency of Banks. (1) Minimum capital ratios according to Superintendency of Banks. The equity over total risk based assets index do not include investments sold under repurchase agreement (2) As of 2006, Venezuelan Government Bonds are reduced from Assets when calculating the Equity/Assets ratio. 36

37 Mercantil Banco Universal Cumulative Annual Growth (Bs.) Total Assets (Million Bs.)(1) Total Deposits (Million Bs.)(1) CAGR 27.0 % CAGR 27.0 % Loan Portfolio (Net) (Million Bs.) Net Income (Million Bs.) CAGR 29.0 % 471 CAGR 11.3 % IS2010 Note: Earnings during 2005 include extraordinary gains from the sale of investments in Bancolombia Figures according to the standards of the Superintendency of Banks. (1) Includes investments sold under repurchase agreement 37

38 Mercantil Banco Universal Cumulative Annual Growth (US$) Total Assets (Million US$)(1) Total Deposits (Million US$)(1) CAGR 8.9 % 5,583 7,805 CAGR 8.9 % 10,008 12,146 15,259 8,192-11,2% Jun-10 Loan Portfolio (Net) (Million US$) Net Income (Million US$) 3,153 4,014 CAGR 10.6 % 5,797 7,152 9,460 4,961-13,3% CAGR 10.8 % Jun IS2010 Note: Earnings during 2005 include extraordinary gains from the sale of investments in Bancolombia Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December (1) Includes investments sold under repurchase agreement 38

39 Mercantil Banco Universal and Peer Group Total Deposits Total Deposits + Inv. sold under repurchase agreement Deposits (Exc. Govmt) Gross Loans Assets Assets + Inv. sold under rep. Agreement Mercantil Banco Universal 12.5% 12.6% 15.0% 13.4% 11.1% 11.2% Provincial (BBVA) 10.4% 10.3% 11.0% 12.4% 11.6% 11.5% Venezuela (BSCH) 13.8% 13.7% 12.9% 11.2% 12.6% 12.5% Banesco 12.0% 11.9% 13.3% 15.4% 11.8% 11.8% Sub-Total 48.7% 48.5% 52.2% 52.4% 47.1% 47.0% Total Fin. System Bs. Million 265, , , , , ,977 Total Fin. System US$ Million 61,783 62,187 49,955 38,226 83,986 84,391 Based on Non Consolidated figures according to the standards of the Superintendency of Banks. As of June 30,

40 Mercantil Commercebank N.A.

41 Mercantil Commercebank N.A. Summary of Consolidated Balance Sheet and Income Statement 6/30/09 12/31/09 6/30/10 (%)Change in US$ (%)Change in US$ (Million US$) (Million US$) (Million US$) Jun-09 vs. Jun-10 Dec-09 vs. Jun-10 Total Assets 5,611 5,991 6,435 15% 7% Loan Portfolio (net) 3,020 3,248 3,623 20% 12% Investments in Securities 2,230 2,327 2,340 5% 1% Deposits 4,316 4,652 4,806 11% 3% Shareholders Equity % 2% Net Income (accum) % 114% Consolidated Financial Statement, based on US GAAP 41

42 Mercantil Commercebank N.A. Financial Ratios Jun Jun-10 Balance Structure Financial Assets/Total Assets 94.8% 95.8% 95.5% Loans/Deposits 72.0% 71.5% 76.7% Profitability Net Income/Average Equity (ROE) -4.9% -4.3% 0.8% Net Income /Average Total Assets (ROA) 0.5% -0.4% 0.1% Efficiency Operating Expenses/Average Assets 2.4% 2.2% 2.2% Operating Expenses/Total Revenues 69.3% 69.8% 78.5% Capital Mercantil Commercebank Florida Bancorp Equity "Tier 1"/ Assets (Well Capitalized 5%) (1) 10.2% 10.4% 10.3% Total Equity/Risk Based Assets (Well Capitalized 10%) (2) 20.2% 22.6% 19.4% Mercantil Commercebank NA Equity "Tier 1"/Assets (Well Capitalized 5%) 9.9% 10.1% 10.1% Total Equity/Risk Based Assets (Well Capitalized 10%) 19.6% 22.1% 19.0% According to US GAAP (1) Tier 1 Equity includes Trust Preferred Securities which are considered as Equity under US regulations (2) Total Equity includes both the outstanding Trust Preferred Securities not considered as Tier 1 Capital, plus the percentage of Trust Preferred Securities which are considered as Capital under US regulations 42

43 Mercantil Commercebank N.A. Cumulative Annual Growth (US$) Total Assets (Million US$) Deposits (Million US$) 4,111 4,899 CAGR 10.5 % 5,459 6,024 5,991 6, % 3,124 CAGR 10.0 % 3,505 3,981 4,361 4,652 4, % Jun Jun-10 Loan Portfolio (Net) (Million US$) Net Income (Million US$) 1,974 2,574 CAGR 14.4 % 2,999 3,035 3,248 3,623 11,5% (25.7) Jun IH2010 According to US GAAP 43

44 Mercantil Commercebank N.A. and Peer Group Mercantil Commercebank NA Local Peer Group (Average) (1) National Peer Group (Average) (1) ROA 0.1% -0.7% 0.4% ROE 0.8% -3.7% 3.7% Non-accrual loans / Total Loans 10.1% 8.8% 3.5% Net Int. Margin / Average Earning Assets 2.3% 2.7% 3.5% Eficiency Ratio 78.5% 85.1% 61.3% (1) Commercial Banks in the U.S. with assets over $ 3,000 million Source: UBPR Federal Deposit Insurance Corporation - FDIC As of June 30,

45 Mercantil Seguros

46 Mercantil Seguros Summary of Consolidated Financial Statements 06/30/09 12/31/09 06/30/10 06/30/10 (%)Change in Bs. (%)Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs.jun-10 Dec-09 vs.jun-10 Total Assets 1,957 2,263 2, % 28.1% Equity % 20.8% Net Income (accum) % 0.0% Net Premiums (accum) 1,271 2,802 1, % -37.5% 2009 IH2010 IH2010 Combined Ratios 96.3% 94.7% 97.9% Incurred Claims / Earned Premiums 65.9% 63.0% 68.0% Commissions and Adq. Expenses / Earned Premiums 17.5% 17.7% 17.4% Administrative Expenses / Earned Premiums 12.9% 14.0% 12.5% Consolidated Balance Sheet according to the standards of the Venezuelan Superintendency for Insurance. (1) Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

47 Mercantil Seguros Summary of Consolidated Income Statement 30/06/09 31/12/09 06/30/10 06/30/10 (%)Change in Bs. (%)Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs. Jun-09 Dec-09 vs. Jun-10 Earned Premiums 1,024 2,304 1, % -35.2% Paid Claims 645 1,518 1, % -33.1% Paid Commissions % -35.6% Operating Expenses % -37.0% Technical Income % -63.5% Investment Income % -41.3% Net Income (accum) % 0.0% Net Premiums (accum) 1,271 2,802 1, % -37.5% Consolidated Balance Sheet according to the standards of the Venezuelan Superintendency for Insurance. (1) Dollar figures are given for reference. Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

48 Mercantil Seguros Cumulative Annual Growth (Bs.) Total Assets (Million Bs.) Net Premiums (Million Bs.) CAGR 44.4 % CAGR 43.0 % Net Income (Million Bs.) CAGR 40.2 % Figures according to the standards of the Venezuelan Superintendency for Insurance. 48

49 Mercantil Seguros Cumulative Annual Growth (US$) Total Assets (Million US$) Net Premiums (Million US$) CAGR 23.8 % , ,9% CAGR 42.4 % , Jun IH2010 Net Income (Million US$) CAGR 39.3 % IH2010 Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December

50 Mercantil Seguros and Peer Group Venezuelan Insurance Market Net Premiums Company / Insurance Group Net Premiums (Million US$) (1) Net Premiums (Million Bs.) Market Share Caracas de Liberty Mutual C.A.,Seguros 739 2, % Mercantil C.A., Seguros 608 1, % Mapfre La Seguridad, C.A. de Seguros 512 1, % Horizonte, C.A. Seguros 414 1, % Constitución C.A. Seguros % Sub-Total first 5 2,584 7, % Other 2,901 8, % Total (50 Companies) 5,485 15, % Figures, according to the standards of the Venezuelan Superintendency for Insurance. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

51 Mercantil Merinvest

52 Mercantil Merinvest Summary of Consolidated Balance Sheet and Income Statement 06/30/09 12/31/09 06/30/10 06/30/10 (%)Change in Bs. (%)Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs. Jun-10 Dec-09 vs. Jun-10 Total Assets % -3.7% Investments in Securities % 35.4% Shareholders Equity % -9.2% Net Income (accum) % -26.5% Consolidated Balance Sheet according to the standards of the Venezuelan Securities and Exchange Commission. (1) Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

53 Mercantil Merinvest Cumulative Annual Growth (Bs.) 48 Total Assets (Million Bs.) 159 CAGR 24.6% ,7% Jun Investments in Securities (Million Bs.) CAGR 16.7 % Jun % Shareholders Equity (Million Bs.) Net Income (Million Bs.) CAGR 18.1% % 21 CAGR 23.6 % Jun IH2010 Note: There were no exchange gains during 2006 compared to prior years, however during 2006 there were extraordinary expenses from the new Mercantil Employee savings scheme Figures according to the standards of the Venezuelan Securities and Exchange Commission. 53

54 Mercantil Merinvest Cumulative Annual Growth (US$) Total Assets (Million US$) Investments in Securities (Million US$) CAGR 7.1 % ,9% Jun-10 CAGR -1.1 % ,0% Jun-10 Shareholders Equity (Million US$) Net Income (Million US$) CAGR 0.9 % % 11 6 CAGR 20.2 % Jun IH2010 Note: There were no exchange gains during 2006 compared to prior years, however during 2006 there were extraordinary expenses from the new Mercantil Employee savings scheme Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December

55 Holding Mercantil Internacional

56 Holding Mercantil Internacional Summary of Consolidated Balance Sheet and Income Statement 06/30/09 12/31/09 06/30/10 06/30/10 % Change in Bs. % Change in Bs. (Million Bs.) (Million Bs.) (Million Bs.) (Million US$) (1) Jun-09 vs. Jun-10 Dec-09 vs. Jun-10 Total Assets 1,080 1,091 2, % 134% Loan Portfolio (net) % 183% Investments in Securities , % 112% Deposits , % 145% Shareholders Equity % 73% Net Income (Year) % -100% Consolidated Balance Sheet according to the standards of the Venezuelan Securities and Exchange Commission. (1) Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February

57 Holding Mercantil Internacional Cumulative Annual Growth (Bs.) Total Assets (Million Bs.) CAGR 28.7% Investments in Securities (Million Bs.) CAGR 36.1% Net Loan Portfolio (Million Bs.) CAGR 2.0% Net Income (Million Bs.) CAGR 12.5% IH2010 Figures according to the standards of the Venezuelan Securities and Exchange Commission. 57

58 Holding Mercantil Internacional Cumulative Annual Growth (US$) Total Assets (Million US$) Investments in Securities (Million US$) CAGR 10.4% CAGR 16.7% Loan Portfolio (Net) (Million US$) Net Income (Million US$) CAGR -12.5% CAGR 12.0% Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December

59 Asset Management

60 Mercantil s Asset Management Asset Management (Million Bs.) Asset Management (Million US$) 3,305 4,491 4,846 5,433 6,113 4, Jun-10 Figures according to the standards of the Venezuelan Securities and Exchange Commission. Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 2010 the foreign exchange rate is Bs /1US$ vs. Bs /1US$ as of December

61 Mercantil s Asset Management Total: Bs. 17,395 Million (US$ 4,055 Million) Brokerage (25.0%) Mercantil Commercebank Invest. Serv. USA (16.2%) Mercantil Bank (Schweiz) AG Switzerland (6.0%) Managed (4.5%) Mercantil Commercebank Invest. Serv. - USA (3.4%) Mercantil Bank (Schweiz) AG Switzerland (1.1%) Mercantil Merinvest Vzla (2.8%) Mutual Funds (2.4%) Mercantil Merinvest Vzla (2.4%) Trust (68.1%) Mercantil Banco Universal Vzla (58.9%) Mercantil Commercebank Trust USA (6.2%) Mercantil Bank (Schweiz) AG Switzerland (2.9% ) Mercantil Seguros Vzla (0.1%) Dollar figures are given for reference. Balance Sheet figures are converted at the period-end controlled exchange rate of Bs /1US$ and Results at the average exchange rate of Bs /1US$. There is an Exchange control in place in Venezuela since February As of June 30,

62 Mercantil Servicios Financieros CSE: MVZ.A / MVZ.B OTC: MSFZY / MSFJY June 2010 Results