banco universal mercantil - mercantil servicios financieros · mercantil banco universal, founded...
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ANNUAL REPORT 2015Mercantil Banco Universal a subsidiary of Mercantil Servicios Financieros
CONTENTS
Presentation 3
Financial Highligths 4
Board of Directors and Administration 5
Notice of Ordinary General Shareholder’s Meeting 6
Board of Directors’ Report 7
Financial Statements consolidated with Overseas Subsidiaries 22
Statutory Auditors’ Report 23
Financial Statements 24
Strategic Positioning 27
Management Discussion and Analysis 29
Corporate Governance 37
Awards and Acknowledgments 42
International OfficesCorporate Contacts 43
Banco Universal
ANNUAL REPORT 2015
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2 ANNUAL REPORT 2015
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Mercantil Banco Universal, founded in 1925,
with 90 years of financial activity, is one of Venezuela's leading institutions in the financial
system with Bs 37,339 million in equity.
It is the main subsidiary of Mercantil Servicios Financieros in Venezuela and the country’s
foremost and most comprehensive financial services provider with presence in 9 countries
in the Americas and Europe. Mercantil Banco Universal offers its customer base a wide range
of quality financial products and services in different market segments, thereby reaffirming
its mission to “fulfill the needs of our customers by providing excellent financial products and
services, attain the aspirations of our employees, support the development of the
communities where Mercantil has presence and add value for our shareholders through a
long term outlook”.
At December 31, 2015, Mercantil Banco Universal ranks as the leading bank in the private
financial system in terms of loans to the manufacturing sector, with market shares of 21 %.
It is also the first bank in Venezuela in terms of savings deposits with 22 % of the domestic
market.
Mercantil Banco Universal’s products are offered mainly in Venezuela, through a nationwide
network of channels which at December 31, 2015 consisted of 264 branches, 1,132 ATMs of
which 171 are multifunctional, and 63,408 points of sales, made up of physical, merchant and
e-commerce points of sale, in addition to round-the clock access to telephone and online
banking.
At the close of the year the Mercantil Aliado network serves the banking needs of the masses
through 181 correspondent service desks and trading points in communities across the length
and breadth of Venezuela.
To complement these services and assist its customers overseas, Mercantil Banco Universal
has one agency in the United States (Coral Gables, Florida), a branch in Curaçao, and five
representative offices located in Bogota, Lima, Mexico City, Sao Paulo and New York.
Since its inception, Mercantil Banco Universal has played an active role in the development
of the different markets where it operates by financing trade, agriculture and industry.
Throughout Fundación Mercantil, the Bank affirms its social commitment towards the country
by playing an important role in the ongoing development of different sectors of the
community.
Banco Universal
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4 ANNUAL REPORT 2015
Financial Highlights
Balance SheetTotal AssetsLoan Portfolio (Net)DepositsShareholders’ Equity
Income StatementNet Interest IncomeMargin of Financial IntermediationPersonal and Operating ExpensesIncome Before Income TaxNet Income
Profitability Indicators (%)Net Interest Income / Average Financial Assets (NIM)Other Operating Income / Total IncomeNet Income / Average Equity (ROE)Net Income / Average Assets (ROA)
Capital Adequacy Indicators (%)Equity / Risk-Weighted Assets (regulatory minimum 12 %) (1)
Leverage Indicators (%)Equity / Assets (regulatory minimum 9 %) (1)
Loan Portfolio Quality Indicators (%)Past-Due and Non-Performing Loans / Gross Loan PortfolioAllowances for Loan Losses / Past-Due + Non-Performing LoansAllowances for Loan Losses / Gross Loan Portfolio
Efficiency Indicators (%)Operating Expenses / Average Total AssetsOperating Expenses / Total Income
Liquidity Indicators (%)Cash and Due from Banks / DepositsCash and Due from Banks and Investment Portfolio / Deposits
Other Indicators (%)Total Loan Portfolio / DepositsFinancial Assets / Total AssetsFinancial Assets / Deposits
Number of EmployeesEmployees in VenezuelaEmployees Abroad
Banking Distribution NetworkBranches in Venezuela (2)
Automatic Teller Machines (ATM)Point of Sale Terminals (POS) (3)
Mercantil Aliado NetworkCorrespondent Service DesksCorrespondent Trading Points
Market Share (%) (4)Loan PortfolioDeposits + Other demand liabilities
Consolidated Earnings((In thousands of Bs, except percentages and Other Indicators)
Year Ended
December 31
2015bolivars
December 31
2014bolivars
December 31
2013bolivars
December 31
2012bolivars
December 31
2011bolivars
(1) In accordance with the standards of the Superintendency of Banking Sector Institutions (SUDEBAN - for its abbreviation in Spanish)(2) Excludes internal branch for employees at Edificio Mercantil (Caracas)(3) Physical Points of Sale (POS)(4) Over Venezuela Operation
551,055,436 307,411,936 497,091,668 37,339,030
39,528,323 42,266,404 22,039,775 18,542,205 12,161,578
13.217.042.03.1
12.7
10.0
0.21,466.9
3.1
4.136.2
31.044.9
63.870.077.6
7,221 8
264 1,303 53,022
109 72
12.5 11.7
287,892,974 162,619,332 258,083,275 24,255,805
19,133,827 20,692,510 10,549,964 9,431,474 9,430,660
10.919.950.14.0
16.5
9.7
0.31,352.9
3.5
3.332.2
29.046.3
65.373.882.4
7,247 9
264 1,350
50,902
125 122
14.1 11.7
183,030,629 89,809,279 162,756,924 16,557,049
11,645,946 13,641,790 6,660,194 6,529,414 6,525,812
10.826.252.94.5
19.0
10.9
0.4914.53.9
3.531.8
27.455.1
57.475.484.8
7,275 10
265 1,408 53,387
128 188
14.0 12.1
104,514,153 57,755,945 92,499,400 9,233,354
7,352,170 8,777,427 4,507,740 3,853,463 3,395,032
11.124.646.44.0
17.7
9.8
0.6611.53.9
4.135.8
29.148.4
65.074.283.9
7,195 10
268 1,367 48,671
106 186
14.6 11.5
67,351,251 41,974,923 59,558,134 6,127,715
4,881,317 5,918,691 3,179,210 2,389,662 2,142,731
10.929.642.73.8
16.0
10.1
0.7615.64.1
4.436.0
21.740.3
73.581.091.6
6,965 10
271 1,309 42,719
60 117
15.9 11.9
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Board of Directors
Gustavo Vollmer A.Chairman
Nelson Pinto A.Executive President
Luis A. Marturet M.1
Alfredo Travieso P. 1 / 2
Eduardo Mier y Terán 1 /3
Víctor J. Sierra A. 2
Roberto Vainrub A. 1 / 3
Alejandro González Sosa 3
Gustavo Marturet Medina 2
Rafael Sánchez B. 3
Gustavo Galdo C. 3
René Brillembourg C. 1
Claudio Dolman C. 2
Miguel Angel Capriles C. 1
Guillermo Ponce Trujillo
Rafael Stern S.
Francisco De LeónManuel Martínez Abreu
Umberto ChiricoGladis Gudiño
Luis Alberto Fernandes
Paolo Rigio C.
(1) Member of the Audit Committe(2) Member of the Compensation Committe(3) Member of the Risk Committe
AdministraciónGustavo Vollmer A. *Chairman
Nelson Pinto A. *Executive President
Alfonso Figueredo D. *Executive Vice President of Operations and Administration
Fernando Figueredo M. *Executive Vice President of Business
Luis Calvo Blesa *Human Resources and Corporate Communications Manager
Luis Alberto Fernandes * Chief Legal Counsel
Vincenza Garofalo S. *Chief Risk Officer
Rodolfo Gasparri G. *Operations and Technology Manager
Carlos Montoliú M. *Corporate Banking Manager
Jorge Pereira *Personal Banking Manager
Isabel Pérez S. *Chief Financial Officer
Carlos Tejada G. *Commercial Banking Manager
Guillermo Ponce TrujilloBoard of Directors Secretary
Rafael Stern S.Board of Directors Alternate Secretary
José Felipe Bello C. Audit Manager
Anahy EspigaCorporate Strategic Planning Manager
Luis M. Urosa Z.Corporate Compliance Manager
Juan Livinalli M.Compliance Officer - Prevention ofMoney Laundering and Terrorist Financing (**)
(*) Member of the Committe Executive(**) Since January 1st, 2016 this position will be
occupied by Mr. José Bastidas Rosales
Principal Directors
Alternate Directors
Secretary
Alternate Secretary
Statutory Auditors
Alternate Statutory Auditor
Legal Counsel
Alternate Legal Counsel
Note: The Audit, Compesation and Risk Committees werecreated pursuant to provision in the By-laws and in accordancewith a resolution by the Board of directors. These commiteesare made up of independent Directors and are attended by theChairman and the CEO (ex-officio).
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6 ANNUAL REPORT 2015
Notice of OrdinaryGeneral Shareholders’ Meeting
The Board of Directors hereby convenes an Ordinary General Shareholders’ Meeting to be held at the Auditorium’s Edificio Mercantil,
located at Avenida Andrés Bello N° 1, San Bernardino, Caracas, on March 18, 2016 at 8:00 in the morning, in order to:
1. Consider the report presented by the Board of Directors and the Company’s Audited Financial Statements as of December 31,
2015, in light of the Statutory Auditors’ Report.
2. To appoint the Principal Members and their Alternates to the Board of Directors as established in the Bylaws and to set the
remuneration of all the members of said Board.
N.B. The shareholders are hereby informed that: a) the Board of Directors Report, the Statutory Auditors Report, the Financial
Statements audited by “Espiñeira, Pacheco y Asociados” y b) the “Letter to Management and/or Memorandum of Internal Control”,
will be available for review twenty-five days prior to the Shareholders’ 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. In accordance with the company bylaws,
the Shareholders are hereby informed that each group of Common Class "A" shares that represents at least twenty per cent
(20 %) of the subscribed capital of said shares, has the right to propose and designate one Principal Director and its Alternate as
it may correspond.
Caracas, February 18, 2016
On behalf of Mercantil, C.A., Banco Universal
Guillermo Ponce Trujillo
Secretary of the Board of Directors
MERCANTIL, C.A., BANCO UNIVERSAL Subscribed and Paid-In Capital Bs 268,060,233Caracas - Venezuela
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Caracas, February 18, 2016
Dear Shareholders:
We are pleased to submit the consolidated results and main activities of Mercantil, C.A. Banco
Universal for the second half of 2015 as well as for the whole year.
This report has been made in compliance with Article 20 of Resolution 063. 11 of the
Superintendency of Banking Sector Institutions (Sudeban), dated February 18, 2011, setting
forth the “Standards establishing the Guidelines and Requisites to be submitted by the
Meetings of Shareholders of Banking Institutions, Currency Exchanges, and Border Exchange
Operators”.
Financial and Economic Situation
The Bank’s 2015 financial statements included in this Report, which consolidate the activities
of its branch and agency abroad and its subsidiaries, were prepared in accordance with the
standards of the Superintendency of Banking Sector Institutions (SUDEBAN –
Superintendencia de Instituciones del Sector Bancario); the Board considers that they
reasonably present all the significant aspects of the financial situation of the Bank and its
subsidiaries, the income from its operations and the statements of changes in equity and cash
flows. The financial statements have been examined by the Bank’s external auditors Espiñeira,
Pacheco y Asociados, whose report is attached hereto, with the conclusion that the
statements are reasonable.
In 2015, the Bank posted Bs 12,162 million in net annual income, Bs 5,982 million corresponding
to the first half of 2015 and Bs 6,180 million to the second. The sustained improvement in
financial margin is shown in the results, which compare favorably with the Bs 9,431 million of
2014.
Of note is the amount of the various compulsory contributions to several official agencies,
which total Bs 7,630 million, Bs 3,270 million of which correspond to the first half of 2015 and
Bs 4,360 million to the second, representing 21.1 % of the Bank’s expenses which, together
with Bs 6,933 million of Income Tax (Bs 2,440 in the first half 2015 and Bs 4,493 in the second),
total Bs 14,563 million, equivalent to 40.3 % of such expenditures.
Total assets reached Bs 551,055 million, 91.4 % over the Bs 287,893 million of December 2014,
and 44 % up from Bs 382,779 million in June 2015. Shareholders’ equity totaled Bs 37,339
million, up 53.9 % from Bs 24,256 million in December 2014, and 32.5 % over the Bs 28,176
million of June 2015.
Board of Directors’ Report
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Total deposits at the close of the year were Bs 497,092 million, 92.6 % more than the Bs 258,083
million of December 2014 and 45 % more than the Bs 342,902 million of June 2015.
Another important point was the acquisition, at the request of the executive branch of the
Venezuelan government, of securities known as Valores Bolivarianos para la Vivienda
(Bolivarian Housing Securities) for Bs 15,162 million and of Certificates of Participation for
Bs 7,329 million. Together with Agriculture Bonds and other Shares acquired at the request
of the National Executive, these purchases totaled Bs 47,243 million on December 31, 2015,
representing 68.2 % of the Bank’s total investment. By December 31, 2014, those investments
had totaled Bs 26,167 million, representing 58.8 % of the Bank’s total investments.
Cash dividends for Bs 2,010,451,747.50 were paid in 2015, at the rate of Bs 7.50 per share.
In its latest annual evaluation of December 2015, Fitch Ratings ratified Mercantil Banco’s long-
term national ratings of “F1+(ven)” and “AA-(ven)” for the long term, the best national
qualifications for a private financial institution in Venezuela.
It also ratified the “CCC” long-term, “C” short-term and “ccc” viability international
qualifications of the Bank, which are largely dependent on the country risk.
Statement of Credit Risk Reports
The credit risk reports on the proportionality of guarantees on the loan and contingent
portfolios indicate that 66 % of them are backed by some type of collateral (the inclusion of
liens on vehicle titles would bring this percentage to 68.8 %).
More than 98 % of loans to the SME and Middle Market segments are guaranteed by some
type of collateral, while 83 % of loans to the Affluent segment are covered. Some type of
collateral also exists for 52 % of loans of the Corporate segment, in view of the size and level
of solvency of those companies.
The revision of credit risks leads to the conclusion that the proportionality of guarantees
received on the loan and contingent portfolios are both adequate and sufficient, within the
guidelines established in the Bank’s credit risk policies.
The guarantees also coincide with the maturities of the loans.
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Approval of Asset and Liability Operations
With the new Decree with Rank, Value and Force of Law of Institutions in the Banking Sector,
published in Official Gazette Nº 6,154 Extraordinary of November 19, 2014, the approval of
individual loan operations was limited to those exceeding 5 % of its equity. Therefore, during
2H2015, the Board of Directors considered, approved and/or ratified loan requests from its
clients that exceeded 5 % of equity, including economic groups and individual borrowers, this
time comprising 6 clients, for a total of Bs 8,035 million, representing 2.5 % of the gross loan
portfolio on December 31, 2015.
The current regulation excluded the requirement of approving liabilities.
Comparative Financial Statemens for the last two semesters, andDistribution of Earnings
Included as an integral part of this report are the comparative financial statements of the
Bank for the last two semesters, reflecting the distribution of profits and the changes or
variations in its financial position.
Loan Portfolio – Participation in the Country’s Productive Sectors
through the Percentage of the Loan Portfolio
At the close of 2015, the Bank’s gross loan portfolio increased by 88.4 % in comparison with
the close of 2014, and 43 % up from the balance on June 30, 2015, to reach Bs 317,323 million.
The ratio of past-due and non-performing loans over the gross portfolio remained at 0.2 %,
with 0.3 % being the ratio for the Venezuelan financial system. The coverage ratio of loan loss
provisions over past-due and non-performing loans stayed at a high 1,466.9 %, having
fluctuated to 1,569.3 % in June 2015 from a 1,352.7 % in December 2014.
Loan portfolio growth was mainly due to commercial, credit card and agricultural loans, with
117.4 %, 84.8 % and 77.4 % increases, respectively, in comparison with the balances at the close
of December 2014.
This solid gross loan portfolio increase maintains the Bank at the third position in the financial
system in this segment, with a 12.5 % market share. In the private banking sector, the Bank
occupies the second position at 18.3 % market share.
The gross loan portfolio comprises mainly a 40.6 % of commercial loans (initially to finance
working capital), 16.4 % for credit card products, and 15.4 % in agriculture loans.
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Loans to productive sectors in Venezuela on December 31, 2015 are broken down as follows:
By law, banks are required to allocate a proportion of the loan portfolio to the microfinance,
tourism, agriculture, manufacturing and mortgage sectors. Loans to these sectors are
approximately 30.1 % of the Bank’s gross loan portfolio on December 31, 2015, registering
Bs 34,625 million year-on-year increase (57.3 %).
On December 31, 2015, the Bank exceeded the required compulsory loan portfolio
measurements, calculated on the portfolio balances at the dates established according to the
standards, except for the mortgage sector, due to restrictions that will be explained later.
Compliance by sector is summarized in the following Table:
The microenterprise sector continued to consolidate its various portfolio sub-segments,
reaching a 57.54 % increase in comparison with June 2015 and a 109 % increase in comparison
with the previous year closing. At the close of 2015, compliance was 4.9 %, exceeding the
regulatory 3 %, which translates into Bs 10,858 million with an excedent of Bs 4,199 million
over the regulatory requirements.
Agriculture, fishery and forestryMining and petroleumManufacturing industryElectricity, gas and waterConstructionWholesale and retail, restaurants and hotelsTransportation, storage and communicationsFinancial establishments Insurance, real estate and business servicesCommunity, social and personal servicesOther activitiesTOTAL PORTFOLIO
ACTIVITY 48,963 1,525 19,206 311 12,797 112,795 3,062 86,241 11,657 20,766 317,323
In Millions of Bolivars 15.4
0.5 6.1 0.1 4.0
35.5
1.0
27.2
3.7 6.5 100
Percentage (%)
MicroenterpriseTourismAgricultureManufacturingMortgage
SECTOR
3 4.25 25 10 20
Required (%)
4.9 5.5 * 38.4 ** 11.4 17.1 ***
Achieved (%)
* Includes Bs 207 million Class "B" shares of Sociedad de Garantías Recíprocas para la Pequeña y Mediana Empresa del Sector Turismo, S.A.,in accordance with the regulations on compliance with the compulsory tourism loan portfolio.
** Includes Bs 1,257 million in Agricultural Bonds issued by government entities, in accordance with the regulations on compliance withthe compulsory agricultural portfolio.
*** Includes Bs 20,114 million in Bolivarian Mortgage Securities, in accordance with the regulations on compliance with the compulsorymortgage portfolio of 2015, Bs 4,952 will be pay out in 2016.
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The tourism portfolio increased by 90.7 % in comparison with December 2014, and 49.1 % in
comparison with June 2015. The portfolio is broken down as follows: 89.5 % hotels; 9.0 %
tourism transport; 0.8 % gastronomic installations and services; 0.2 % theme parks, and 0.4 %
travel and tourism agencies. Percentage of compliance was 5.5 %, over the regulatory 4.25 %.
By December 2015, this portfolio placed the Bank second in rank in the private financial
system, and third at the national level.
The agricultural loan requirement established 25 % as minimum percentage of the loan
portfolio to be complied with at the close of 2015, the Bank reaching 37.5 % not including
investments in Agriculture Bonds reflecting a year-on-year growth of 77.4 %. Together with
investment of Bs 1,257 million in agriculture bonds following requirements from the National
Executive, this percentage increases to 38.4 %. Some additional considerations for measuring
this portfolio have already been established, with several modifications over time, but the Bank
has fulfilled and complied with all the minimum and maximum distriutions, as follows: finance
of strategic items (required 75 % / achieved 89.5 %); non-strategic items (maximum 5 % / achieved
0.6 %); agro-industrial investments (maximum 15 % / achieved 9.6 %); business and trade
(maximum 5 % / achieved 0.4 %); proportion of medium and long-Term portfolio (minimum
20 % / achieved 42.4 %). 452 new borrowers were attended vs. a required of 276.
The manufacturing portfolio totaled Bs 19,206 million, representing 11.4 % of the total loan
portfolio vs. a required 10 %, also complying with the corresponding sub-segments as follows:
strategic sectors (required 60 % / achieved 80.4 %); SME, joint ventures, community and State
enterprises (required 40 % / achieved 47.4 %). These results place the Bank at the fourth
position with a 9.7 % market share of the total financial system, and first among private banks
with a 21 % market share, for an 8.8 % year-on-year growth.
The Bank managed to cover 17.14 % of the required 20 % of the compulsory mortgage portfolio
in 2015. To be noted is that, during 2015, demand for short-term loans for construction of main
homes as authorized by the Ministry of Habitat and Housing, which affected the percentage
of compliance for this sub-segment of the construction sector. However, in January 2016, the
Simón Bolívar Reconstruction Fund, Ltd., issued an extraordinary series of Bolivarian Housing
Securities to be acquired by Banks in order to cover the required minimum for this sub-
segment; the Bank subscribed Bs 4,952 million, to be paid in three equal portions in the first
three months of 2016.
In 2015, the Bank also acquired the total regulation Bolivarian Housing Securities, which
translated into a complete fulfillment of the compulsory portion of this sub-segment.
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12 ANNUAL REPORT 2015
On the other hand, the low demand of loans for housing projects has also brought unfavorable
consequences in the fulfillment of the required loan percentage for the acquisition of main
homes, given that, with less projects being built, the inventory of new housing available for
acquisition declines which, together with the significant inflation increase of prices since
2014, and particularly during 2015, has even more negatively affected acquisition loans, in
spite of offering the maximum amount of loans according to purchasers’ income: the
significant increase of housing prices means that the loan amount may only cover a small
percentage of the price of housing. However, the Bank achieved 4.84 % of the required 7.6 %
of regulation for this segment.
Scarcity of materials and inflation of prices continued to deteriorate the segment of loans for
improvements, additions and self-construction of housing, resulting in a decline in demand
for this type of loans, in spite of which the Bank reached 0.3 % compliance vs. the required
0.4 %.
Report on Complaints and their Solutions
On a monthly average, 113.9 million transactions were carried out through the Bank’s different
channels. Monthly average complaints, on the other hand, were 8,994 cases (0.007 % of total
transactions), 98 % of which were financial and 0.4 % corresponded to complaints filed by
customers with SUDEBAN. Average monthly volume of complaints in 2015 was 7 % less (704
cases) in comparison with 2014. Non-financial claims, and particularly those related with
credit cards delivered to customers, declined by 69 % in comparison with 2014.
62 % of total monthly processed complaints were declared as having merit, with resolution
times of complaints submitted by clients regarding debit and credit cards and deposit
accounts declining by 1 day in comparison with the previous year, to 4 days on average.
Regarding fraud prevention in the form known as “El Cambiazo” (The Switch), consisting in a
deceitful substitution of debit and credit cards to customers when making ATM transactions
or in the point-of-sale network, the number of claims during the second half of 2015 did not
increase in comparison with the first, mainly due to the implementation of additional
prevention measures in the alert monitoring areas, such as preventive SMS messages being
sent to customers under certain parameters, providing customers the opportunity to reject
unrecognized consumptions before they take effect. On the other hand, the information
initiative has continued through Mercantil Online, with positive results reported.
The “Monitoring Plus” tool added new modules and apps to follow transactions in the network
of offices and implemented new alerts for debit cards and deposit accounts.
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Also, regarding fraud through forging checks being presented to the electronic clearing house,
a series of security mechanisms were set in place to increase safety of transactions, thereby
significantly reducing fraud levels, which exposed Bs 95 million in fraudulent checks. One of
the most important tools was the review of cashier checks, to prevent cashing of duplicate
checks.
The Customer and User Ombudsman handled 4,167 cases during the second half 2015, for
Bs 72,164,529.65, 314 cases being declared with merit at a total of Bs 7,282,154.34 and 3,853
cases being dismissed for Bs 64,882,375.52, 45 of which, for Bs 2,138,716.27 were recognized
as without merit by customers themselves.
The Bank keeps detailed records of all complaints and claims, as well as of their processing
and resolution.
Distribution of Electronic Channels and Banking Centers
At the close of the second half 2015, the Bank had 265 branch offices, 1,132 ATMs, 181 active
customer service points operating through correspondent trading desks and trading points
of Mercantil Aliado, 171 multi-function facilities installed in 38 “Vía Rápida Mercantil” self-
service areas, and 63,408 point-of-sale stations, including exclusive point-of-sale for the TAE
Electronic Meal Voucher of Accor Services in 41,431 establishments. The point-of-sale network
service is provided to customers through the Inversiones Platco, C.A. affiliate.
Capital Adequacy Ratio Position
The equity to risk weighted asset ratio was 12.7 % vs. a regulatory minimum of 12 %.
Report of the External Auditors
As stated above, the financial statements for 2015, included in this Report, have been
examined by the institution’s external auditors, “Espiñeira, Pacheco y Asociados”, who found
them reasonable and whose report is attached hereto.
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14 ANNUAL REPORT 2015
Liquidity, Solvency, Efficiency and Profitability Indicators
The liquidity ratio, calculated as the proportion of total cash and due from banks divided by
total deposits was 31 %; calculated by dividin total cash and due from banks plus investments
by total deposits was 44.9 %; these ratios were 29 % and 46.3 %, respectively, in December
2014, and 29.8 % and 45.6 %, respectively, in June 2015. The Capital Adequacy Ratio, resulting
from dividing equity by total assets minus investments held in government securities was
10.0 %, with the regulatory minimum at 9 %. The consolidated efficiency ratio calculated by
dividing operating expenses by average assets was 4.1 %, 3.3 % in 2014 and 3.7 % in the first
half 2015; at the same time, the efficiency ratio, calculated by dividing operating expenses
by total net income was 36.2 % for 2015, 32.2 % in 2014 and 32.7 % in the first half 2015. The
ROE indicator was 42.0 %, 50.1 % in 2014 and 46.2 % in the first half 2015; and the ROA
indicator was 2.9 %, 4 % in December 2015 and 3.6 % in June 2015.
Internal Audit Report including Audit Report on Compliance with ML/FT Standards
The internal auditor issued its 2015 report, with his opinion on the result of his examination,
which the Board took into consideration for its work in that area.
The work of the Audit unit indicates that the reviews carried out of Bank units and processes
indicates careful attention to risks, adequate corporate governance and opportune
supervision, with strategic objectives being based on their operation, according to the policies
and guidelines of the Bank, as well as giving due attention to recommendations and
instructions from SUDEBAN.
Particular mention should be made of the verification of compliance of Resolution 119-10 of
SUDEBAN, regarding Regulations on the Administration and Control of Risks related to
Money Laundering and Terrorism Financing. Of note are the revisions of 225 of the total 265
offices, the central processes and technologic tools, which resulted in an Excellent average
rating, at 1.21 points, an improvement on 2014’s 1.26 points, also rated Excellent. Based on
this work, plans and programs designed and implemented to prevent and detect transactions
that might be presumed or related to Money Laundering and/or Financing of Terrorism are
working correctly.
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15
SUDEBAN Communications regarding Provisions, Observations,
Recommendations or Initiatives on the Bank’s Operation
During the second half 2015, the Bank continued to implement all necessary actions to bring
its activities in line with dispositions and timelines established in regulations issued during
that period. The Board of Directors is responsible for examining those provisions and resolving
matters related thereto. A set of Decrees with Value, Rank and Force of Law were issued by
the National Executive at the end of December 2015, with particular note being taken, due to
their repercussions on banking activity, of the Decrees on Income Tax, Large Financial
Transactions Tax, Foreign Exchange Regime and Related Crimes, Law of the Central Bank of
Venezuela, Financial Administration of the Public Sector, National Tax and Customs
Administration Service (SENIAT – Servicio Nacional Integrado de Administración Aduanera y
Tributaria), and Labor Immobility.
Similarly, during the second half 2015, SUDEBAN issued a series of regulations, among which
are: the adequate Global Administration of Bank Liquidiry Risks; the AT37 “Electronic
Transfers” Technical Specifications Manual; the suspension of products or services,
agreements or contracts with legal persons or personal brands, which allows cash withdrawals
using debit or credit cards, with the exception of ATMs and non-banking correspondents; the
Regulations on the Risk characteristics and classification of the Microfinance System and of
SME; the regulatory exception granted to private banks regarding the exclusion from total
assets of 100 % of the monthly balance at the “BCV Minimum Reserves Account” from the
Banks Accounting Manual; the notification to SUDEBAN of deficiencies, incidents or events
causing interruptions of customer services; the delay in fulfillment of auditing guidelines, as
well as of regulations for preparing and presenting reports according to the Regulations on
Functions and Responsibilities of External Auditors; the ratification of fulfillment of Banking
Security Regulations, and the Regulations for the Protection of Users of Financial Services.
Other official agencies issued regulations affecting the financial sector, such as: the
accounting adjustment of Contributors carrying out Banking, Financing, Insurance and
Reinsurance Activities being excluded from the Inflation Adjustment System; the information
requirement on Securities Positions kept outside the Venezuelan Central Bank (BCV – Banco
Central de Venezuela); the establishment of the Minimum Required Percentage of Compliance
of the Manufacturing Loan Portfolio; the obligation of verifying customer solvencies if they
are beneficiaties of the National Housing and Habitat System in order to declare the release
of mortgage, and the procedure for granting extensions, terms and payment fractioning to
fulfill the contributions established in the Decree of Organic Law of Science, Technology and
Innovation.
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16 ANNUAL REPORT 2015
Through its internal control system, the Bank constantly monitors these provisions to ensure
compliance and to safeguard its reputation for operating with integrity and professionalism.
The Corporate Compliance business unit reports directly to the Chairman of the Board, and
helps the Business and Support units to identify standards related to their own particular
activities.
In the second half of 2015, the Bank received visits from SUDEBAN to inspect the Quality of
Banking and Trust Services provided at branches and Customer Service Points and those
carried out to verify the observation of administration and fiscal regulation of risks associated
with Money Laundering and Terrorism Financing activities, regarding the application of the
“Know Your Customer” policy. The Bank’s Board of Directors is responsible, according to
Paragraph 5 of Article 30 and Article 32 of the Decree with Rank, Value and Force of Law of
Institutions of the Banking Sector, for examining the contents and resolving on compliance
of reports and communications from SUDEBAN regarding these inspections.
Other agencies of the Public Administration also visited the Bank for inspections in their
areas of jurisdiction, among which are the National Electric Corporation (Corpoelec -
Corporación Eléctrica Nacional), the National Housing and Habitat Bank (Banavih - Banco
Nacional de Vivienda y Hábitat) and the National Health and Labor Security and Prevention
Institute (INSAPSEL – Instituto de Prevención, Salud y Seguridad Laborales).
Retirements and Appointments
Mr. Nerio Rosales R. retired from the Bank on September 30, 2015, following a fruitful 38-
years long career, culminating as Executive Director of Venezuelan Business, responsible for
banking activities in Venezuela. The performance of Mr. Rosales was marked by his dedication,
ability and commitment, providing significant contributions to the development and
positioning of the Bank, also showing constant care for Mercantil’s people, which resulted in
the continuining policy of initiatives for their development and wellbeing. The Board of
Directors wishes him every success in the new stage and for his personal and family wellbeing.
On November 30, 2015, Mr. Philip Henríquez S. also left the Bank following eleven years of
service, as Corporate Banking Manager. Mr. Henriquez showed professionalism and excellent
knowledge of his area within financial activities. The Board expresses its thanks for his
contributions to the Bank and hopes for success and personal and family happiness.
During the second half of the year, Ms. Vincenza Garofalo, Ms. Isabel Pérez S., Mr. Jorge
Pereira D., and Mr. Carlos Montoliú M. were appointed as Managers for Integral Risk, Finances,
Personal Banking and Corporate Banking, respectively. All of them are officials with a solid
preparation and years of service with the Bank, who have shown their competence and
commitment to the principles and values of the “Mercantil Culture”. They were also
incorporated as members of the Executive Committee
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17
Organizational Structure Adjustments
In order to make the organization structure of the Bank more effective and operative, the
decision was made to begin a first-level structure adjustment, according to best market
practices, with the creation of two Executive Vice Presidents, as follows:
a) Mr. Fernando Figueredo M. will head the Executive Vice President of Business, having
under him the Corporate Banking Manager, Commercial Banking Manager and
Personal Banking Manager, headed by Mr. Carlos Montoliú M., Mr. Carlos Tejada G.
and Mr. Jorge Pereira D., respectively.
b) Mr. Alfonso Figueredo D. will head the Executive Vice President of Operations and
Administration, having under him the Finance Manager, Operations and Technology
Manager, Human Resources and Corporate Communications Manager and Chief Legal
Counsel, headed by Ms. Isabel Pérez S., Mr. Rodolfo Gasparri G., Mr. Luis Calvo B. and
Mr. Luis A. Fernandes, respectively.
Both Executive Vice Presidents report directly to the Chairman of the Board.
Products and Services
During 2015, the Bank continued to offer products and services to suit their needs to over
4,789,000 customers, 172,000 more than in 2014.
The Credit Cards product has a Bs 52,231 million portfolio, and Bs 19,234 million in parallel
credit lines, which brings the Bank to the third position in the financial system, with a 16.7 %
participation, resulting from its marketing activities and the updating of credit limits to foster
customer loyalty and preference. With cross-product initiatives, more than 162,000 customers
fulfilling the established evaluation and risk parameters received their first or second credit
card, a Bs 6,696 million exposure during the year, to activate over 71,000 cards for those
customers, with an exposure of Bs 3,854 million and generating a Bs 2,135 million portfolio.
The New Professional Credit Cards strategy activated 1,903 new cards issued to university
students.
The consolidation process of the Majorities Banking segment continued to expand the
bankarization and support of communities through the Mercantil Aliado Network, operating
in 14 states and in the Capital District, and offering the Cash Card and Loan Card for
Microenterprises. At the close of December 2015, 52 % more Cash Cards have been issued, to
a total of over 265,000 Cash Cards. The Microenterprises Loan portfolio totaled Bs 10,858
million, corresponding to 14,705 active customers, for a year-on-year growth of 109 %.
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18 ANNUAL REPORT 2015
At the close of 2015, more than 7.4 million transactions had been processed using the Vía
Rápida Mercantil (Mercantil Fast-Track) self-service areas, a 52.3 % derivation of total
transactions in offices with the multifunction facilities.
Mercantil Online continued to gain support in the customers’ preference, with over 1,360,000
active users in Mercantil Personal Online Banking and over 85,000 active users in Mercantil
Business Online Banking; both Online services processed over 740 million transactions in
2015, 57 % of total transactions through all channels.
The distribution of transactions by channels is as follows:
During 2015, Mercantil Personal Online Banking incorporated the functions of digital
consultating and downloading of Cash Card account statements, and of requesting bank
references for the Special Foreign Currency Account.
Mercantil Business Online Banking incorporated changes in order to improve customers’
satisfaction. The new design is more practical and simple, with the access menu facilitating a
more comfortable and user-friendly navigation, at the same time making transactions as
secure as always.
The Corporate segment launched the new app Mercantil Corporate Mobile, especially
developed for the convenience of our legal clients. The main added value and differentiating
characteristic of the app is that customers may apply for “Pronto Crédito Empresarial”
(Corporate Fast Loans) to obtain funds in a secure and prompt way, using a mobile device
(smartphones or tablets). The Bank thus becomes the first bank to grant loans to customers
using a mobile app. Since the inception of the app on November 1st, through the close of
December 2015, 4,750 devices have been registered for 3,375 groups affiliated to Mercantil
Corporate Online Banking using Mercantil Corporate Mobile for over 148,000 transactions,
133,000 of which were consultations of bank statements and 15,000 were financial
transactions.
At the close of 2015, @MercantilBanco, the official Twitter account of the Bank, had over
222,000 followers. The account’s aim is providing information and orientation on services,
products and various other activities of the institution. With more than 33,400 requests
attended in three years, the Klout influence indicator ranks it as the second account in the
Venezuelan financial sector.
Mercantil Business and PersonalOnline BankingPOSATMs NetworkMercantil MóvilBranchesCall Center
CHANNELS
740 238 134 116 51 17
TRANSACTIONS(in millions of Bolivars )
57 18 10 9 4 1
PARTICIPATION(%)
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 18
19
Awards and Recognitions
The Bank earned the “2015 Bank of the Year” in Venezuela, from the renowned financial
magazine The Banker. According to the magazine, this recognition was awarded following an
analysis of the Bank’s results, which show a solid financial profitability, a sustained growth of
deposits, an adequate diversification of clients and mainly, the constant innovations in order
to provide the best customer service, whitin an adequate risk management policy.
It also received Visa’s 2014 Service Quality Performance Award in the Chargeback Efficiency
category, in recognition of the above average performance in data security policies and
regulations, as well as for the continued improvement in quality service of the Bank as credit
card issuer and operator.
The AméricaEconomía magazine ranked the Bank as Nº 169 among 250 Latin American banks.
The ranking includes state banks, and classifies banks by size of assets at the close of June
2015.
These recognitions are in addition to those cited in the 2015 Semi-Annual Report, as “2015
Best Provider of Foreign Trade in Venezuela” from the Global Finance magazine, and “2015
Best Venezuelan Bank” from EuroMoney.
Prevention and Control of
Money Laundering and Terrorism Financing
Prevention of money laundering and control of terrorism financing remains a priority for the
Bank. Therefore, the Program to Prevent Money Laundering and Terrorism Financing remains
in place at all levels, with internal control and supervision mechanisms, reinforcing the “Know
Your Customer” policy, as the best and most effective means of preventing money laundering
and corruptions in general, with special staff training programs.
In order to comply with money laundering regulations, the Bank has in place a well-structured
“Comprehensive System of Risk Administration for the Prevention of Money Laundering and
the Control of Terrorism Financing”, as well as Operational and Follow-Up Plans, and
Monitoring and Oversight Procedures.
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20 ANNUAL REPORT 2015
Social Commitment
The Bank’s social investment in 2015, carried out both directly and through Fundación
Mercantil, which it sponsors, totaled Bs 91.3 million, addressed mainly at educational programs
and projects of social development undertaken by well-known social development and
educational organizations in Venezuela.
The Bank dedicated 61 % of its contributions to elementary and higher education institutions,
especially for entrepreneurship and infrastructure maintenance programs of schools, and
scholarships providing young people with the opportunity to go forward in their high school,
college and university studies; the remaining 39 % went to Social Development Organizations
fostering community health prevention programs, children and teenagers care programs and
institutions disseminating arts and culture.
Of note is the consolidation of the Alliance between Fundación Mercantil and the Asociación
Fe y Alegría, with new lines of action added to the physical infrastructure rehabilitation and
maintenance programs, in order to promote entrepreneurship, inclusion and leadership
amongst young people. Similar actions are also promoted which support both
professionalization of teachers and the promotion of nutritional and environmental education
activities. All these activities are carried out jointly with several organizations: Movimiento
Huellas (Footsteps Movement), Asociación Venezolana de Servicios de Salud de Orientación
Cristiana (AVESSOC - Venezuelan Health Services Christian Association), Sociedad de Ciencias
Naturales La Salle (La Salle Natural Sciences Society) and Centro Médico Docente La Trinidad
(La Trinidad Medical Teaching Center). During the period, 12 schools were attended
throughout the nation, to the benefit of more than 6,000 students.
Also of note are the contributions and support of programs and initiatives of various educational
institutions, such as Universities Católica Andrés Bello, Zulia, Simón Bolívar, Central of
Venezuela, and Carabobo, Sociedad de Ciencias Naturales La Salle, Fundación Ideas, UNICEF,
Alianza Social VenAmCham (Venezuelan-American Chamber of Commerce and Industry Social
Alliance), Un Techo para mi País Venezuela (A Roof for my Country Venezuela), Dividendo
Voluntario para la Comunidad (Voluntary Dividend for the Community), Museo de Arte
Contemporáneo del Zulia, and Sociedad Anticancerosa de Venezuela.
The Bank continued to strengthen the Online Donation Program “Un Aporte por Venezuela”
(A Contribution for Venezuela), as well as the culture support program carried out through
exhibitions in the Espacio Mercantil, for the promotion of national art historiography. Art
exhibitions took place during the year in Caracas, Valencia and Maracaibo. Special mention
should be made of the record production of Coral Mercantil’s Antología y Trovadores de lo
Cotidiano (Anthology of Everyday Minstrels), which compiled the history of over 35 years of
choral singing.
It is also important to mention the growing participation of Mercantil’s Volunteers and their
families in various nationwide activities and programs within the framework of the 90th
anniversary of Mercantil, in support of Fe y Alegría, Sociedad Anticancerosa de Venezuela,
Hospital Ortopédico Infantil, the Simón Bolívar University, Fundación Techo Venezuela, and the
Comedores Madre Teresa de Calcuta (Comatec) (Mother Theresa of Calcutta Soup Kitchens).
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21
Development and Working Environment
Compensation policies continue to be applied for the benefit and support of workers to
preserve and improve their economic conditions. These policies have brought the Bank to a
leading position in the financial sector; various measures were developed during the year,
such as salary increases and increases in the monthly Food Program payments, a special bonus
for the year and the creation of the Financing of Educational Expenses of Workers’ Children
Program.
These policies go hand-in-hand with the development of permanent retention, education and
training of staff, to improve the professional preparation of personnel and to maintain a
continuous process of knowledge updating. These activities are supplemented with other
activities to promote friendliness areas for the recreation of workers and their families
throughout the country.
The Bank and Mercantil Bank’s Unions affiliated to the National Workers Federation reached
an agreement regarding benefits to be included in the new collective labor agreements for
the 2016-2018 period. At present, the Bank and workers are waiting for the formal procedures
with the Labor Inspectors and with the Ministry of Work and Social Security. This new
Collective Labor Agreement will benefit over 6,000 workers, and its provisions are the result
of the care of the company for the wellbeing of its employees and for the friendly interactions
and the traditional cooperation with labor union representatives.
Relationships with officers and employees have remained harmonious as always, and the
Board of Directors wishes to acknowledge the efficiency and dedication to their job.
During the second half of the year, a number of Alternate Directors attended Board meetings,
either standing in for Principal Directors in their absence, or as invited. On the occasion of
the Chairman’s and the Executive President’s temporary absences, some of their functions
were delegated to members of the Executive Committee.
Yours, sincerely,
Gustavo Vollmer A.
Nelson Pinto A.
Alfredo Travieso P.
Luis A. Marturet
Eduardo Mier y Terán
Víctor Sierra A.
Roberto Vainrub A.
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22 ANNUAL REPORT 2015
Financial Statements Consolidated with Foreign Subsidiaries (*)
(In accordance with the Superintendency of Banking Sector Institutions -SUDEBAN)
Consolidated Balance Sheet(In Bs)
AssetsCash and Due from BanksInvestments in SecuritiesLoan PortfolioInterest and Commissions ReceivableInvestments in Subsidiaries, Affiliates and BranchesAssets Available for SaleProperty and EquipmentOther Assets TOTAL ASSETS
LiabilitiesDepositsDeposits and Liabilities with BANAVIHOther BorrowingsOther Liabilities from Financial IntermediationInterest and Commissions PayableAccruals and Other Liabilities TOTAL LIABILITIES
Shareholders’ EquityTOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
Interest IncomeInterest Expense
Net Interest IncomeIncome from Financial Assets RecoveredExpenses from Uncollectibles and Devaluation of Financial Assets
Net Interest MarginOther Operating IncomeOther Operating Expenses
Financial Intermediation MarginOperating Expenses
Cross Operating MarginIncome from realizable goodsMiscellaneous Operating IncomeExpenses from realizable goodsMiscellaneous operating expenses
Net Operating MarginExtraordinary IncomeExtraordinary Expenses
Gross Income before TaxIncome TaxNET INCOME
Application of Net IncomeRetained EarningsLOSEP Fund
December 31
2015154,144,272,77569,247,832,747307,411,935,3883,989,981,7601,393,205,898
597,4652,968,662,50911,946,459,365
551,102,947,907
497,141,012,6171,311,628
69,842,2754,136,512
104,786,59816,442,827,650
513,763,917,280
37,339,030,627551,102,947,907
33,843,858,13910,216,509,28023,627,348,859
319,159,8963,215,967,477
20,730,541,2787,564,554,8453,174,357,899
25,120,738,22413,776,506,182
11,344,232,042226,147,985157,435,753
89,3581,204,458,872
10,523,267,5500
61,699,18310,461,568,3674,282,216,0456,179,352,322
6,179,352,322106,288,011
Consolidated Statement of Income(In Bs) PERIOD ENDED
(*) Comparative Financial Statements for the last two quarters and Appropriation of Net Income, pursuant to Article 20[D] of the Standards establishing the Guidelines and Requisites to be submitted by theMeetings of Shareholders of Banking Institutions, Currency Exchanges, and Border Exchange Operators.
December 31
2015
June 30
2015102,229,478,38053,950,518,855
214,848,790,6702,617,470,693295,315,621
211,1981,841,155,7987,057,923,956
382,840,865,171
342,964,955,2331,597,112
75,509,6831,589,64687,608,456
11,533,593,213
354,664,853,343
28,176,011,828382,840,865,171
22,294,100,8336,409,052,20815,885,048,625
199,684,5731,620,241,133
14,464,492,0654,652,421,0371,975,095,08017,141,818,0228,259,081,453
8,882,736,5696,798,018
121,918,905171,483
877,368,4498,133,913,560
053,276,793
8,080,636,7672,098,410,721
5,982,226,046
5,982,226,04682,155,499
June 30
2015
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 22
23
Statutory Auditors’ Report
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24 ANNUAL REPORT 2015
Financial Statements(In accordance with the standars of the
Superintendency of Banking Sectors Institutions)
Balance Sheet(in Bolivars)
Assets
Cash and Due from banksCashCentral Bank of VenezuelaVenezuelan Banks and other Financial InstitutionsForeign Banks and other Financial InstitutionsHead Office and BranchesPending Cash Items(Allowance for Cash and Due from banks)
Investments SecuritiesCentral Bank of Venezuela and OvernightInvestments in Trading SecuritiesInvestments in Securities Available for SaleInvestments in Securities held-to-maturityRestricted InvestmentsInvestments in Other Securities(Allowance for Investments Securities)
Loan PortfolioCurrentRescheduledPast DueIn Litigation(Allowance for Losses on Loan Portfolio)
Interest and Commissions ReceivableInterest Receivable on cash and Due froms BanksInterest Receivable on Investments SecuritiesInterest Receivable on Loan PortfolioCommissions ReceivableInterest Receivable on Other Accounts Receivable(Allowance for Interest Receivable on Loan Portfolio and Other)
Investments in Subsidiaries, Affiliates and BranchesInvesments in Subsidiaries and AffiliatesInvesments in Branches(Allowance for Invesments in Subsidiaries, Affiliates and Branches)
Assets Available for SaleProperty and EquipmentOther Assets
Total Assets
Contingent Debtor AccountsAssets Received in TrustSpecial Trust ServicesDebtor Accounts from Other Special Trust Services(Régimen Prestacional de Vivienda y Hábitat)Other Debtor Accounts (Housing Mutual Fund)Other Debtor Memorandum AccountsOther Debtor Control Accounts
154,090,193,1068,491,607,452
137,641,396,706339,950
452,759,3020
7,504,089,6960
68,516,515,2752,100,000,000
018,232,290,34012,291,413,348638,833,820
35,253,977,7670
307,376,724,101316,134,656,025
510,652,762627,456,72650,639,821
(9,946,681,233)
3,978,434,3810
1,000,991,1592,894,520,370121,604,244
2,529(38,683,921)
2,184,000,6451,393,223,020790,794,747
(17,122)
597,4652,968,662,50911,946,380,009
551,061,507,491
2,573,471,84528,110,445,227
7,706,986
00
759,231,146,9177,704,280
For Operationsin Venezuela
December 31
2015154,144,272,7758,491,607,452
137,641,396,706339,950
506,838,9710
7,504,089,6960
69,247,832,7472,100,000,000
018,943,344,37812,291,413,348659,097,254
35,253,977,7670
307,411,935,388316,170,494,485
510,652,762627,456,72650,639,821
(9,947,308,406)
3,989,981,760374
1,012,443,5412,894,614,993121,604,244
2,529(38,683,921)
1,393,205,8981,393,223,020
0(17,122)
597,4652,968,662,50911,946,459,365
551,102,947,907
2,573,471,84528,110,445,227
7,706,986
00
759,338,795,2647,704,280
Consolidated with Overseas branches
December 31
2015102,193,137,6124,592,870,59786,758,923,792
289,950549,417,697
010,291,635,576
0
53,270,759,4174,209,961,000
017,201,808,1675,451,063,485192,884,728
26,215,042,0370
214,795,577,704220,973,202,145
524,492,697456,117,863
18,863(7,158,253,864)
2,608,958,0900
606,078,8241,951,764,72479,950,473
755(28,836,686)
1,055,619,146295,332,743760,303,525
(17,122)
211,1981,841,155,7987,057,251,882
382,822,670,847
2,538,913,26623,481,792,771
8,265,539
00
575,495,436,4339,038,856
For Operationsin Venezuela
June 30
2015102,229,478,3804,592,870,59786,758,923,792
289,950585,758,465
010,291,635,576
0
53,950,518,8554,209,961,000
017,864,603,7365,451,063,485209,848,597
26,215,042,0370
214,848,790,670221,027,362,925524,492,697456,117,863
18,863(7,159,201,678)
2,617,470,693304
614,466,0531,951,889,79479,950,473
755(28,836,686)
295,315,621295,332,743
0(17,122)
211,1981,841,155,7987,057,923,956
382,840,865,171
2,538,913,26623,481,792,771
8,265,539
00
575,585,673,5339,038,856
Consolidated with Overseas branches
June 30
2015
Nelson Pinto A.Executive President
Alfonso Figueredo DavisExecutive Vice President
of Operations and Administration
Juan C. Cortés T.Corporate Comptroller
Gustavo Vollmer A.Chairman
Isabel Pérez SanchisChief Financial Officer
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 24
25
Financial Statements(In accordance with the standars of the
Superintendency of Banking Sectors Institutions)
Balance Sheet(in Bolivars)
Liabilities
Total DepositsDemand Deposits
Non-Interest Bearing Cheking AccountsInterest Bearing Cheking AccountsChecking accounts in accordance with Exchange Agreement Nº 20Demand deposits and certificates
Other Demand DepositsObligations for Money Desk OperationsSaving DepositsTime DepositsSecurities Issued by the BankRestricted Customer DepositsRigths and participation investment securitiesObligations to Central Bank of VenezuelaDeposits and Liabilities with BANAVIHBorrowingsBorrowings from Venezuelan Financial Institutions, Up to 1 YearBorrowings from Venezuelan Financial Institutions, More Than 1 YearBorrowings from Overseas Financial Institutions, Up to 1 YearBorrowings from Overseas Financial Institutions, More Than 1 YearOther Borrowings, Up to 1 YearOther Borrowings, More Than 1 YearOther Liabilities for Financial IntermediationInterest and Commissions PayablerExpenses Payable on Customer DepositsExpenses Payable on Obligations to the BCVExpenses Payable on Deposits and Liabilities with BANAVIHExpenses Payable for Other Financing ObtainedExpenses Payable for Other BorrowingsExpenses Payable for Other ObligationsExpenses Payable for Subordinated Debt
Other LiabilitiesSubordinated DebtObligations Convertible to Capital
Total Liabilities
Shareholders’ Equity
Nominal Capital Stock par valueConvertible BondsPaid-in SurplusCapital ReservesEquity Adjustments Retained EarningsUnrealized Gain on Investments Available for Sale
Total Shareholders’ Equity
Total Liabilies and Shareholders’ Equity
497,125,908,649349,466,099,460181,419,795,859126,057,606,370
66,362,32941,922,334,9024,213,611,038
0142,543,472,184
529,389,7320
373,336,23500
1,311,62844,705,47543,800,051
0905,424
000
4,136,512104,738,426104,738,426
000000
16,441,676,17400
513,722,476,864
268,060,2330
2,890,220,542281,463,245(1,425,900)
33,017,542,783
883,169,724
37,339,030,627
551,061,507,491
For Operationsin Venezuela
December 31
2015
497,141,012,617349,469,735,940181,423,432,339126,057,606,370
66,362,32941,922,334,9024,215,561,594
0142,548,765,626
530,236,4110
376,713,04600
1,311,62869,842,27543,800,051
026,042,224
000
4,136,512104,786,598104,742,958
00
43,640000
16,442,827,65000
513,763,917,280
268,060,2330
2,890,220,542281,463,245(1,425,900)
33,017,542,783
883,169,724
37,339,030,627
551,102,947,907
Consolidated with Overseas branches
December 31
2015
342,947,563,699242,389,184,457118,265,226,29189,883,431,25168,624,184
34,171,902,7314,879,512,518
094,871,043,259
555,181,5210
252,641,94400
1,597,11275,509,68374,823,876
0685,807
000
1,589,64687,601,21687,601,190
0026000
11,532,797,66300
354,646,659,019
268,060,2330
35,833280,122,943(1,083,142)
26,839,530,762
789,345,199
28,176,011,828
382,822,670,847
For Operationsin Venezuela
June 30
2015
342,964,955,233242,394,104,587118,270,146,42189,883,431,25168,624,184
34,171,902,7314,881,728,543
094,876,588,325556,027,425
0256,506,353
00
1,597,11275,509,68374,823,876
0685,807
000
1,589,64687,608,45687,608,430
0026000
11,533,593,21300
354,664,853,343
268,060,2330
35,833280,122,943(1,083,142)
26,839,530,762
789,345,199
28,176,011,828
382,840,865,171
Consolidated with Overseas branches
June 30
2015
Nelson Pinto A.Executive President
Alfonso Figueredo DavisExecutive Vice President
of Operations and Administration
Juan C. Cortés T.Corporate Comptroller
Gustavo Vollmer A.Chairman
Isabel Pérez SanchisChief Financial Officer
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 25
26 ANNUAL REPORT 2015
Financial StatementsIncome Statement(in Bolivars)
Interest IncomeIncome From Cash and Due From BanksIncome From Investment SecuritiesIncome From Loan PortfolioIncome From Other Account ReceivableIncome From Investment in Subsidiaries, Affiliates, and BranchesIncome From Head Office and BranchesOther Interest IncomeInterest ExpensesExpenses From Customer DepositsExpenses From Obligations to Central Bank of VenezuelaExpenses From Deposits and Liabilities with BANAVIHExpenses From Other BorrowingsExpenses From Other Liabilities From Financial IntermediationExpenses From Subordinated DebtExpenses From Other ObligationsExpenses From Head Office and BranchesOther Interest ExpensesNet Interest ExpensesIncome From Financial Assets RecoveredExpenses From Uncollectible and Devaluation of Financial AssetsProvision for Loan Portfolio and Other Accounts Receivable, LossesProvision for Cash and Due from BanksNet Financial MarginOther Operating IncomeOther Operating ExpensesFinancial Intermediation MarginPersonnel and Operating ExpensesSalaries and Employee BenefictsOperating ExpensesFees Paid to The Deposit Guaranted and Banking Protection Fund (Fogade)Fees paid to The Superintendency of Banks and Other Financial InstitutionGross Operating MarginIncome From Realizable GoodsIncome From Special ProgramsMiscellaneous Operating IncomeExpenses From Realizably GoodsExpenses From Depreciation, Amortization, and Devaluation of Miscellaneous GoodsMiscellaneous Operating ExpensesNet Operating MarginExtraordinary IncomeExtraordinary ExpensesGross Income Before TaxIncome TaxesNet Income
Application of Net IncomeLegal Reserve Profit SharingBoard of DirectorsOfficers and Employees
Other Capital Reserves Retained EarningsLOSEP Fund
33,802,709,553288,544
2,253,841,54531,501,706,612
22,621,53400
24,251,31810,216,457,43410,128,120,949
000
87,326,715000
1,009,77023,586,252,119293,787,3793,215,967,4773,215,967,477
020,664,072,0217,569,751,2493,118,142,64325,115,680,62713,773,012,0383,979,326,2207,069,588,3242,456,177,679267,919,815
11,342,668,589226,147,985
0157,435,753
89,3580
1,203,649,86910,522,513,100
061,699,183
10,460,813,9174,281,461,5956,179,352,322
00000
6,179,352,322106,288,011
For Operationsin Venezuela
December 31
201533,843,858,139
290,7952,293,970,83731,502,723,655
22,621,53400
24,251,31810,216,509,28010,128,129,155
00
43,64087,326,715
000
1,009,77023,627,348,859319,159,8963,215,967,4773,215,967,477
020,730,541,2787,564,554,8453,174,357,899
25,120,738,22413,776,506,1823,979,326,2207,073,082,4682,456,177,679267,919,815
11,344,232,042226,147,985
0157,435,753
89,3580
1,204,458,87210,523,267,550
061,699,183
10,461,568,3674,282,216,0456,179,352,322
00000
6,179,352,322106,288,011
Consolidated with Overseas branches
December 31
201522,252,234,090
307,4261,805,731,893
20,368,611,80320,230,406
00
57,352,5626,408,939,5716,354,679,149
00
887,97849,007,952
000
4,364,49215,843,294,519199,622,1671,620,241,1331,620,241,133
014,422,675,5534,685,983,5221,972,632,07217,136,027,0038,254,762,6813,205,080,6662,969,817,5771,875,357,707204,506,7318,881,264,322
6,798,0180
121,917,805171,483
0876,414,2438,133,394,419
053,276,793
8,080,117,6262,097,891,5805,982,226,046
00000
5,982,226,04682,155,499
For Operationsin Venezuela
June 30
201522,294,100,833
310,0181,846,398,22220,369,809,625
20,230,40600
57,352,5626,409,052,2086,354,688,010
00
991,75449,007,952
000
4,364,49215,885,048,625199,684,5731,620,241,1331,620,241,133
014,464,492,0654,652,421,0371,975,095,08017,141,818,0228,259,081,4533,205,080,6662,974,136,3491,875,357,707204,506,7318,882,736,569
6,798,0180
121,918,905171,483
0877,368,4498,133,913,560
053,276,793
8,080,636,7672,098,410,7215,982,226,046
00000
5,982,226,04682,155,499
Consolidated with Overseas branches
June 30
2015
(In accordance with the standars of the Superintendency of Banking Sectors Institutions)
Year ended
Nelson Pinto A.Executive President
Alfonso Figueredo DavisExecutive Vice President
of Operations and Administration
Juan C. Cortés T.Corporate Comptroller
Gustavo Vollmer A.Chairman
Isabel Pérez SanchisChief Financial Officer
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 26
27
Strategic Positioning
Our CultureSoundness: “Strength and Soundness above all else”.
Long-term thinking and vision: “The strategy is based on a long-term outlook, with tactical
decisions and permanently striving to achieve the desired results”.
Respect and Care for Employees: “The well-being, motivation, recognition and individual
development of our employees are permanent goals for the organization”.
Mercantil brand is the focal point: “The brand image is the organization. The public presence
is of the organization as a whole and not of its individual members. The corporate profile is
guided by the strategy”.
Compliance: “Strict and timely adherence to all applicable laws, regulations, rules and
policies”.
Ethical Behavior: “Zero tolerance for unethical behavior and transparency in all
communications and information”.
Multinational: “We are an international organization with Venezuelan roots”.
Resilience: “We continuously adapt to changing environments and circumstances with dignity
and integrity”.
Good citizenship: “Our behavior reflects the solidarity and commitment to the community”.
Corporate Governance: “Respect for the organization’s corporate governance structure”.
Our Commitment• To be the best financial services provider as 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 a leading and innovative institution that anticipates the needs of the customers and
competitors actions.
• To be recognized for its quality and excellence.
• To have the best and most capable human resources that are committed to working as a
team.
• To maintain a prudent risk management combined with an excellent asset and liability
management.
• To maintain a continuous focus on increasing operational efficiency across the organization,
leveraging on technology as a competitive advantage.
During 2015, Mercantil conducted a series of meetings with employees, within the process
of communication of its strategic positioning, in order to promote and reinforce the elements
of Mercantil Culture and Commitment, which mark the performance of the corporation in
the development and implementation of its activities and business ways.
Mission
To fulfill the needs of our customers by
providing excellent financial products and
services, attain the aspirations of our
employees, support the development of
the communities where Mercantil has
presence and add value for our
shareholders through a long term
outlook.
Vision
To be a financial services organization
of reference* in the area of banking, in
the markets we serve.
(*) Reference: to be recognized and respectedfor our strength, ethical behavior, dynamism,innovation, quality of service and for being thebest place to work.
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 27
28 ANNUAL REPORT 2015
Mercantil continues to focus on the development of comprehensive and differentiated value
proposals for each customers segment.
Efforts continue to increase financing productive sectors and the SME segments with
financing programs for working capital in competitive conditions, in line with the risk
parameters established throughout the institution. For individual customers, the growth of
the credit card product was based on marketing activities to promote customer loyalty and
preference, and on updating the credit limits of clients fulfilling the evaluation and risk
parameters. Comprehensive products and services to fit the needs of customers, as well as
the expansion of electronic products and channels and of self-service areas continued to
represent the effort to improve customer quality service, with the support of installed Self-
Service Halls and the increase of functions of Mercantil Mobile, which have been reflected in
the increasing number of transactions using those two channels. The Majorities segment,
with the support of the Mercantil Aliado network, continued to promote the development of
low-income communities and the bankarization of new clients.
Emphasis remains on improving efficiency through the ongoing improvement of processes
and of products and services quality.
All of this has been carried out in strict compliance with the regulations applicable in the
countries where we operate, with strong adherence to the transparency and solid
performance elements, key of Mercantil’s strategic positioning, and characteristic of the
corporation and of its daily activities.
.
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 28
29
Balance SheetA summarized Balance Sheet at December
31, 2015, 2014 and 2013 is presented below and the main variations when comparing December
2015 with December 2014 are commented on.
The Audited Financial Statements and their notes, which include the summary of the
accounting standards used, are included in this report.
Total Assets
On December 31, 2015, Mercantil Banco Universal’s total consolidated assets were Bs 551,055
million, representing Bs 263,162 million increase (91.4 %), and Bs 368,025 million (201.1 %)
increase in comparison with December 2014 and 2013, respectively. The loan portfolio
remained the main component of total assets at 55.8 %; the investment portfolio contributed
12.6 %, and cash and due from banks at the end of the semester accounted for 28.0 %.
Mercantil Banco Universal ranks third in the Venezuelan private financial system on
December 31, 2015 in terms of total assets, with 11.5 % of the market. The largest market share
held by an institution in the Venezuelan financial system is 18.9 %, with the country’s four
largest banks accounting for 58.8 % of the market.
Management Discussionand Analysis
Summary of the ConsolidatedBalance SheetYear ended(n thousands of Bs and millons of US$ except percentages)
Total Assets
Cash and Due from Banks
Investment Portfolio
Loan Portfolio (net)
Deposits
Shareholders’ Equity
551,055,436
154,144,732
69,286,892
307,411,936
497,091,668
37,339,030
2015bolivars
287,892,974
74,866,697
44,523,248
162,619,332
258,083,275
24,255,805
2014bolivars
183,030,629
44,543,920
45,067,501
89,809,279
162,756,924
16,557,049
2013bolivars
263,162,462
79,278,035
24,763,644
144,792,604
239,008,393
13,083,225
91.4
105.9
55.6
89.0
92.6
53.9
201.1
246.1
53.7
242.3
205.4
125.5
Dec. 2015 vs. Dec. 2014Increase /
( Decrease)
bolivars %
Dec. 2015 vs. Dec. 2013Increase /
( Decrease)
bolivars %
368,024,807
109,600,812
24,219,391
217,602,657
334,334,744
20,781,981
December 31 December 31 December 31
Historic figures presented in accordance with the standars of the Superintendency of Banking Sector Institutions.
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 29
30 ANNUAL REPORT 2015
Cash and Due from Banks
On December 31, 2015, cash and due from banks totaled Bs 154,145 million, reflecting Bs 79,278
million (105.9 %) and Bs 109,601 million (246.1 %) more than in December 2014 and 2013,
respectively, mainly due to the increase in the balances in the BCV, driven by total deposit
growth. The liquidity ration, calculated by dividing total cash and due from banks by total
deposits was 31.0 %, and the ratio from dividing total cash and due from banks plus
investment by total deposits was 44.9 %, both ratios standing at 29.0 % and 46.3 %,
respectively in December 2014.
Investments in securities totaled Bs 69,287 million on December 31, 2015, Bs 24,764 million
(55.6 %) and Bs 24,219 million (53.7 %) more than in December 2014 and December 2013,
respectively. At the same time, on December 31, 2015, total investments in securities are
structured as follows: 96.0 % in securities issued or guaranteed by the Venezuelan state and
government agencies; 3.0 % in certificates of deposits issued by the BCV, maturing in less than
30 days; 1.0 % in Venezuelan and international private sector securities, among others.
DPN Bonds, issued by the Venezuelan state, account for 0.4 times the Bank’s equity and 3.8 %
of its assets.
In line with regulations from the National Executive, by December 31, 2015 the Bank had
purchased Mortgage Securities, Certificates of Participation, Agriculture Bonds and Stocks, for
Bs 47,243 million, representing 68.2 % of the investment portfolio and 1.3 times its equity
(Bs 26,167 million, representing 58.8 % of the investment portfolio and 1.1 times its equity on
December 31, 2014).
Investment Portfolio
Investments in Securitiesby IssuerYear ended(In thousands of Bs except percentages)
Venezuelan Central Bank (BCV)
Venezuelan State and Government Entities
U.S. Government and U.S. Government-backed Agencies
Others
Total Investments
2,100,000
66,502,105
25,689
659,097
69,286,892
2015bolivars
1,188,775
42,987,197
102,892
244,384
44,523,248
2014bolivars
9,753,685
35,037,610
143,634
132,572
45,067,501
2013bolivars
911,225
23,514,908
(77,203)
414,713
24,763,644
76.7
54.7
(75.0)
169.7
55.6
(78.5)
89.8
(82.1)
397.2
53.7
Dec. 2015 vs. Dec. 2014Increase /
( Decrease)
bolivars %
Dec. 2015 vs. Dec. 2013Increase /
( Decrease)
bolivars %
(7,653,685)
31,464,495
(117,944)
526,525
24,219,391
December 31 December 31 December 31
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 30
31
Loan Portfolio
Net loans totaled Bs 307,412 million on December 31, 2015, up Bs 144,793 million (89.0 %) and
Bs 217,603 million (242.3 %) in comparison with December 2014 and 2013, respectively. At the
close of December 2015, Mercantil Banco Universal is the leading bank in Venezuela’s private
financial system in terms of loans for the manufacturing sector, with a 21.0 % market share.
It ranks second in terms of loans for the tourism, agriculture and mortgage sectors, and in
total loan portfolio, with market shares of 19.4 %. 24.3 %, 16.0 % and 18.2 %., respectively.
Loan portfolio quality remains at very satisfactory levels with a ratio of past-due and non-
performing loans to gross loans of 0.2 %, compared to 0.3 % of the Venezuelan financial
system as a whole.
99.6 % of Mercantil Banco’s loan portfolio is outstanding on December 31, 2015. The allowance
for losses on loan portfolio covers 1,466.9 % of past-due and non-performing loans (1,352.9 %
and 914.5 % on December 31 of 2014 and 2013, respectively).
030,00060,00090,000
120,000150,000180,000210,000240,000270,000300,000330,000360,000
Dec. 2013
47 %15 %38 %
Dec. 2014
47 %
13 %
40 %
Dec. 2015
47 %
13 %
40 %
Individuals
Large Corporations
Small and Medium Enterprises (SMEs)
Loan PortfolioBy Business Segment
2014bolivars
2013bolivars
Gross Loans Classifiedby StatusYear ended(In thousands of Bs except percentages)
CurrentReestructuredPast DueIn Litigation
Total
316,170,494510,653627,45750,640
317,359,244
2015bolivars % % %
167,580,574500,986435,910
56
168,517,526
2014bolivars
92,479,759545,128389,5965,180
93,419,663
2013bolivars
99.00.60.40.0
100.0
99.40.30.30.0
100.0
99.60.20.20.0
100.0
Loan Portfolio Quality (1)
Year ended
Past Due + Non-Performing Loans /Gross Loans (%)
Allowance for Loan Losses /Past Due + Non-Performing Loans (%)
0.3
922.2
System
Average
0.2
1,466.9
2015bolivars
0.3
1,352.7
0.4
913.7
(1) Calculated on operations in Venezuela
December 31 December 31 December 31
December 31 December 31 December 31
Millions of b
olivars
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 31
32 ANNUAL REPORT 2015
Universal banks in Venezuela must earmark a minimum nominal percentage of 62.3 % for
loans to the agricultural, microenterprise, mortgage, tourism and manufacturing sectors by
December 31, 2015. Mercantil Banco Universal’s level of compliance is as follows:
Total Deposits
On December 31, 2015, total deposits were Bs 497,092 million, reflecting increases of Bs 239,008
million (92.6 %) and Bs 334,334 million (205.4 %) in comparison with December of 2014 and
2013, respectively.
Demand deposits were the main components of total deposits, reaching Bs 349,420 million,
100.0 % up from the previous year, and representing 70.3 % of total deposits. Savings deposits
rose Bs 64,429 million (82.5 %) and Bs 7 million (1.4 %), respectively, in the same period.
At year’s end, the Bank was the leading institution in the Venezuelan financial system with
22.0 % of market share in savings deposits, and ranked second in terms of total deposits
including demand liabilities, with 11.7 % of the market.
a) In May and June 2012, FONDEN issued bearer bonds, not convertible into shares, for the financing and strengthening of the Great Venezuela Agriculture Mision of the Ezequiel Zamora Fund. In April 2009,the National Executive approved the issue of Public Debt Bonds (DPN Bonds – Bonos de la Deuda Pública Nacional) to finance the 2009-2010 Comprehensive Agricultural Development Plan; these issues maybe included in the compulsory agriculture loan portfolio up to a maximum of 30 % of the total agriculture portfolio, as approved by the Ministry of Agriculture and Lands, in July 2012; the amount of theagriculture loan portfolio with the addition of these investments totals Bs 50,220 million on December 31, 2015. By that date, the Bank had directed 89.5 % to strategic items, 0.6 % to non-strategic items, and10.0 % to agroindustrial investments and trade. At the same time, on December 31, 2015 there are outstanding loans at mid- and long-terms representing 42.4 % of the total agriculture loan portfolio.
b) On December 31, 2015, the Bank has Bs 33,242 million invested in Bolivarian Housing Securities, issued by FONDEN, to finance the Great Venezuela Housing Mission, Bs 15,162 million of which can be accountedin the 2015 mortgage portfolio. In January 2016, the Fund published the Private Issue of Boliviarian Housing Securities 2015-II, assigning Bs 4,952 million to the Bank to fulfill the required construction segmentof loans on December 31, 2015, which brings the 14.6 % compliance at that date to a maximum of 17.1 %.
c) On December 31, 2015 the Bank has covered the minimum required percentage of the loan portfolio for tourism (including SOGATUR shares for Bs 207 million), for a total tourism portofolio of Bs 7,187 million.d) In June 2013, the Ministry for Industries and the Finance Ministry listed the activities subject of loans by the manufacturing portfolio of universal banks, which should concentrate 60 % of total resources instrategic sectors for development, with a minimum 40 % to finance SME, joint ventures, community and state enterprises.
At December 31, 2015
Activity
Balance(In Thousandsof Bolivars)
Achieved%
Required%
MaximumAnnual InterestRates %
Agriculture (a)
Microenterprise
Mortgage (b)
Tourism (c)
Manufacturing (d)
48,962,441
10,857,879
9,366,727
6,979,686
19,206,396
95,373,129
13
24
Between4.66 y 10.66
7.73 ó 10.73
16.20 ó 18
Calculation basis
Average gross loans at December 31, 2014 and 2013
Gross loans at June 30, 2015.
Gross loans at December 31, 2014.
Average gross loans at December 31, 2014 y 2013
Gross loans at December 31, 2014
38.4
4.9
17.1
5.5
11.4
77.4
25.0
3.0
20.0
4.3
10.0
62.3
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
Dec. 2013 Dec. 2014
26 %29 %
45 %
27 %
29 %
44 %
Dec. 2015
29 %
24 %
47 %
Individuals
Large Corporation
Small and Medium Enterprises (SMEs)
Deposits by Business Segment
Millions of b
olivars
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 32
33
(1) Obtained by dividing equity by total assets minus investments in securities issued or guaranteed by the Venezuelan government andpublic entities.
Shareholders’ Equity
Shareholders’ Equity was Bs 37,339 million on December 31, 2015, reflecting increases of Bs 13,083
million (53.9 %) and Bs 20,782 million (125.5 %) compared with December 2014 and 2013,
respectively. The year-on-year increase includes mainly Bs 12,162 million in accumulated net
income, a Bs 2,890 million increase in uncapitalized equity adjustments, a decline of Bs 2,010
million corresponding to cash dividends paid, and Bs 42 million increase from adjusting
investments available for sale to their market value.
The equity over assets ratio of Mercantil Banco Universal on December 31, 2015 was 10.0 %1
(minimum requirement 9 %), and the equity over risk-weighted assets ratio is 12.7 %
(minimum required 12 %) according to the standards of SUDEBAN (9.7 % and 16.5 % on
December 31, 2014 and 10.9 % and 19.0 % on December 31, 2015, respectively).
Income Statement
Net IncomeYear ended(In thousands of Bs except percentages)
Interest Income
Income Expense
Net Interest Income
Income from Financial Assets Recovered
Provision for Loan Portfolio Losses and other Accounts Receivable Losses
Net Financial Margin
Other Income, net
Operating Expenses
Taxes
Net Income for the year
56,151,013
16,622,690
39,528,323
518,845
4,836,208
35,210,960
5,371,020
22,039,775
6,380,627
12,161,578
2015bolivars
28,191,405
9,057,578
19,133,827
297,461
2,796,003
16,635,285
3,346,152
10,549,964
814
9,430,660
2014bolivars
16,676,251
5,030,305
11,645,946
187,102
1,704,815
10,128,233
3,061,375
6,660,194
3,602
6,525,812
2013bolivars
27,959,608
7,565,112
20,394,496
221,384
2,040,205
18,575,675
2,024,868
11,489,811
6,379,813
2,730,918
99.2
83.5
106.6
74.4
73.0
111.7
60.5
108.9
783,760.8
29.0
236.7
230.5
239.4
177.3
183.7
247.7
75.4
230.9
177.020.5
86.4
Dec. 2015 Vs. Dec. 2014Increase /
( Decrease)
bolivars %
Dec. 2015 Vs. Dec. 2013Increase /
( Decrease)
bolivars %
39,474,762
11,592,385
27,882,377
331,743
3,131,393
25,082,727
2,309,645
15,379,581
6,377,025
5,635,766
December 31 December 31 December 31
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34 ANNUAL REPORT 2015
Net Interest Income
In 2015, net interest income was Bs 39,528 million, representing increase of Bs 20,394 million
(106.6 %) and Bs 27,882 million (239.4 %) compared to the margins for the years ended
December 31, 2014 and and 2013, respectively. The increase, compared to December 31, 2014,
is mainly due to a higher volume of financial assets and liabilities. The Bank’s net interest
income over average financial assets ratio on December 31, 2014 was 13.2 % compared to the
previous year ratio of 10.9 %. Interest income totaled Bs 56,151 million registering a 99.2 %
compared to the year ending December 31, 2014. Financial expenses were Bs 16,623 million,
83.5 % up from the same period of the previous year.
The financial intermediation index (loan portfolio over deposits) was 63.8 % on December 31,
2015 (65.3 % and 57.4 % on December 31 of 2014 and 2013, respectively).
Loan Portfolio Provision
During 2015, loan portfolio losses were Bs 4,836 million, representing an increase of Bs 2,040
million (73 %) and of Bs 3,131 million (183.7 %) compared to the years ending December 31 of 2014
and 2013, respectively. The accumulated provision reached Bs 9,947 million on December 31, 2015,
covering 1,466.9 % of past-due and non-performing loans.
11,646 19,134 39,528
10.8 % 10.9 %
13.2 %
0.0 %
3.0 %
6.0 %
9.0 %
12.0 %
15.0 %
05,00010,00015,00020,00025,00030,00035,00040,00045,000
2013 2014 2015
3.5 % 3.3 %
4.1 %
Evolution of Net Interest Income
Operating Expenses/Total Average Assets
Net Interest Income
Net Interest Income/Average Financial Assets
Millions of b
olivars
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 34
35
Other Income, net
Other Income, net, in 2015 reached Bs 5,371 million, representing increases of Bs 2,025 million
(60.5 %) and Bs 2,310 million (75.4 %) compared to the years ending December 31, 2014 and
2013, respectively. The year-on-year increase is mainly due to:
• Bs 2,914 million (88,2 %) increase from commissions on credit and debit cards, net of expenses
for commissions for using the point-of-sale and ATM networks, due to the larger volume of
operations during the year.
• Bs 64 million (41.5 %) growth of income from commissions on trust funds.
• Bs 46 million (6.8 %) decline in earnings from the sale of investments in securities issued by
the Venezuelan state. This activity was worth Bs 721 million in net earnings in 2015.
• Bs 1,048 million (145.3 %) rise in expenses for assets available for sale, and provision for assets
and operating expenses, among others.
Operating Expenses
Operating and Personnel expenses in 2015 totaled Bs 22,040 million, representing increases
of Bs 11,490 million (108.9 %) and Bs 15,380 million (230.9 %) compared to the years ending
December 31 of 2014 and 2013, respectivel. The year-on-year increase is mainly due to:
• Bs 3,058 million (74.1 %) rise in personnel expenses. This increase in expenses is due to the
application of compensation and benefits according to market. Assets per employee grew
from Bs 39.7 million in 2014 to Bs 76.2 million in 2015.
• Bs 1,944 million (68.0 %) rise in expenses for contributions to regulatory agencies.
• Bs 6,488 million (182.1%) increase in general and administrative expenses. This rise is mainly
due to Bs 1,387 million (155.7%) in expenses for outsource services, such as securities
transportation, surveillance and others; Bs 3,269 million (267.2%) in expenses for depreciation
of property and equipment, amortization of intangibles, and others; Bs 585 million (106.5%) in
taxes and contributions; and Bs 1,247 million (138.7%) in general administrative expenses.
In 2015, the efficiency ratio measured by calculating operating expenses as a percentage of
average assets was 4.1 % compared to 3.3 % of 2014, while the efficiency ratio, measured as
operating expenses as a percentage of total income was 36.2 %, vs. 32.2 % in 2014. The number
of employees has remained stable for the last three years. Personnel and administrative
expenses are affected by the high levels of inflation in the country, which was 180.9 % in 2015.
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36 ANNUAL REPORT 2015
Taxes and Contributions
For the year ending December 31, 2015, Mercantil Banco Universal and its subsidiaries
reported a significant volume of expenses for various types of taxes and contributions.
Operations in Venezuela generated: Bs 424 million in VAT, Bs 1,131 million in Municipal Taxes;
Bs 4,332 for contributions to the Fund for Social Protection of Banking Deposits (FOGADE –
Fondo de Protección Social de los Depósitos Bancarios); Bs 472 million for contributions to
SUDEBAN, and Bs 700 million for contributions to the National Community Council Fund.
Mercantil Banco, C.A. and its subsidiaries also complied with other contributions according
to applicable legislation.
Total contributions to the various official entities totaled Bs 7,630 million, representing 21.1 %
of the Bank’s expenses (Bs 4,318 million and 30.4 % on December 31, 2014, respectively).
Income Tax increased Bs 6,380 million, mainly due to the exclusion of financial activities from
the system of adjustment for inflation, as a result of regulation amendments in Venezuela.
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37
Corporate Governance
Mercantil Banco Universal was incorporated as a bank in Venezuela in 1925. Its main shareholder
is Mercantil Servicios Financieros whose shares are listed on the Caracas Stock Exchange and
also are traded over-the-counter market in the United States through a Level 1 ADR program.
The Bank’s Corporate Governance structure is based on the company bylaws, the Law on Banking
Sector Institutions, the Code of Commerce and the standards issued by the Superintendency of
Banking Sector Institutions (Sudeban). The Board of Directors and the Bank's management keep
up with the changing regulations through analysis and study of this area so the Corporation is
able to adapt its Corporate Governance structure to current best practices in order to guarantee
its appropriate transparency and efficiency, based on the highest professional and ethical
principles that characterize its permanent and close relationship with its shareholders, customers,
creditors and employees.
Since 2009, the innovative initiative of the creation and development of the unit in charge of
Compliance was undertaken, which is responsible for independently detecting and managing
the risk of compliance with regulatory obligations through adequate policies, methodologies
and procedures, to strengthen the business model, eliminating or reducing exposure to
associated risks.
As planned, during 2014, implementation of this unit’s Strategic Agenda progressed with the
development of the phases planned for this period.
All the Bank’s activities are undertaken according to the “Mercantil Culture”, which encompasses
a series of values and principles marking the performance of Mercantil’s activities. One of its
cornerstones is its Ethical Behavior, expressed as “Zero tolerance of unethical actions,
transparency in communications and informations”. Part of the implementation of this principle
is the current Code of Ethics, which includes a set of principles and ethical values that guide
decision-making and the development of the Bank’s activities. This Code includes our
fundamental duties such as probity, loyalty, efficiency, fellowship (or co-fraternity), honesty,
sincerity, dignity and law abiding. It also establishes standards to regulate the management of
any conflicts of interest that might arise, complementing the provisions of the Bank’s bylaws in
the area. The bylaws stipulate how such situations should be handled, and ban Board Members
from taking part in discussion on any matters in which they, or their partners in civil or mercantile
companies may have a personal interest. Directors are required to remain outside the meeting
room until a final decision is made.
The Bank’s governance structure is composed of the Shareholders’ Meeting, followed by the
Board of Directors, with its Audit, Risk and Compensation Committees, the Executive Committee,
the Chairman and the Executive President, the Internal Auditor and the Compliance Officer.
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38 ANNUAL REPORT 2015
Board of Directors
It is essential for the Board of Directors to be efficient so that it can act in the interests of the
company, which are ultimately those of the community at large and its shareholders, creditors,
client and employees in particular. 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 also evaluates results by comparing them against previously
approved plans and strategies, performance in previous years, and the performance of the
banking system in general.
The majority of the Directors on the Board are independent from the Administration, in
keeping with best corporate governance practices. This further demonstrates the Bank’s
commitment to comply with international management standards. The Directors are highly
qualified and well-versed in business and finance, ensuring optimum performance of their
functions.
The Board of Directors is made up of seven directors and their corresponding alternates. The
Board appoints the Chairman and Executive President, who must be Directors, from among
its members, and these positions may be held by the same person. The Board meets once a
month and whenever else its Chairman deems necessary.
To ensure better transparency and control over management procedures, the company bylaws
have provided, since 1981, the creation of the Compensation and Audit Committees whose
functions are governed thereby. At an Ordinary Shareholders’ Meeting held in January 2006,
the shareholders approved a proposal submitted by the Board of Directors to amend the
company bylaws giving the Risk Committee legal status, which had already been agreed by
the Board at its May 31, 2001 meeting. These Committees are comprised mainly of Directors
who are independent from the Administration.
Additionally, in accordance with its traditional interest in adhering to best corporate
governance practices, the Audit Committee approved the bylaws governing its performance.
This document details the purpose of the Committee, as well as its functions and its
responsibilities. There members should undertake an annual compliance evaluation with them
It also states that its members must be independent from Management, adding that at least
of them must have considerable accountancy or financial management experience.
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The Committee has responsibility for reviewing and discussing accounting and management policies, theopinions and reports of the Bank’s internal and external auditors, establishing reserves, reviewing theFinancial Statements and their Notes and formulating recommendations on matters incumbent upon itto the Board. It also approves the engagement and remuneration of the external auditors. In 2015 theAudit Committee met seven times. The main topics reviewed were: Consideration of the Bank's financialstatements, opinions of the external auditors on the financial statements and their corresponding notes;observations by the external auditors on internal control; analysis and establishment of loan portfolioprovisions and other provisions and allowances; contributions payable to the Deposit Guarantee Fund andBanking Protection Fund (FOGADE), Sudeban and the Community Councils; report on internal auditingactivities; report on antimoney laundering and terrorism financing activities; report on external auditingactivities planned for 2016; tax related considerations; evaluation of the Bank’s position in foreign currencyand the investment portfolio; financial statements under VEN-NIF standards; proposal on fees of externalauditors in 2016; additional fees of external auditors in 2015.
The Risk Committee approves the Bank’s risk profile, policies and limits. It optimizes the use of capital tosupport the approved risk profile. In 2015, the Risk Committee met 12 times, to deal with the following maintopics: Results of reviews of loan portfolios of the following units and customer segments: Agriculture,Construction, Multinational Corporate, Large Corporations, Long-Term Mortgages, Credit Cards; review ofthe 2015 plan; adjustments on general provisions contained in the Policy Manuals for Loan Risk, OperationalRisk, and those of the General Risk Management Unit; reports of Market Risk, Loan Risk, Operational Riskand Reputation Risk; budget for treasury unit activities and Market Risk limits; proposals on provisions;considerations on liquidity; opinions on the loan portfolio and issues of public debt; adjustment and follow-up of sovereign risk limits for Venezuela; adjustment and compliance with the Cross Border Risk limits;follow-up on the “Stress Test” of the investment portfolio; summarizing trading activities; considerations onthe proportionality of collateral received for the loan and contingent portfolios: review of limits for IndividualBorrowers and Economic Groups; Loan and Capital Commitment Committee, Board of Directors;methodology of Risk Adjusted Return on Capital for the investment portfolio; considerations on theVenezuelan and PDVSA’s sovereign debt risk; appointment of members for the Integral Risk Committee,Committee on Loan and Capital Commitments, Loan Committees; validation of methodologies used tocalculate LDG and EAD; Credit Card Portfolio Score model; review of Backtesting-Kupiec and Christoffersentests; methodologies to estimate profitability curves and liquidity targets.
This Committee is responsible for setting the Bank’s policy on pay and benefits, approving theremuneration of the Chairman and senior management, and reporting on it to the Board of Directors. In2015, the Compensation Committee met seven times, with the following topics as main points: Half-yearResults of the Bank; short-term management incentive programs; consideration of perdiems of Boardmembers; analysis of staff movement during the year; establishment of annual wages policy; results ofsurvey on organizational climate; consideration of compensations payable for Senior Management andthe Executive Committee; performance assessment schemes (strategic and financial goals); confirmationof the Bank’s policy on 2016 retention of Income Tax (ISLR – Impuesto Sobre la Renta); consideration ofactuarial assumptions for calculating retroactive social benefits and retirement pensions; considerationson the structure of variable compensation payments; considerations on key personal protection measures;special compensation actions to benefit personnel in general; results of negotiations on the New 2016-2018 Collective Labor Agreement.
Board of Directors Audit Committee
Board of Directors Risk Committee
Board of Directors Compensation Committee
The Committee is made up as follows:
Eduardo Mier y Terán
( Coordinator)
Roberto Vainrub
Alfredo Travieso P.
Luis A. Marturet M.
Miguel Ángel Capriles Capriles
René Brillembourg Capriles
Gustavo Vollmer A. (Ex officio)
Nelson Pinto A. (Ex officio)
The Committee is made up as follows:Gustavo Galdo C.
( Coordinator)
Roberto Vainrub
Eduardo Mier y Teran
Alejandro González S.
Rafael Sánchez B.
Gustavo Vollmer A. (Ex officio)
Nelson Pinto A. (Ex officio)
The Committee is made up as follows:Alfredo Travieso P.
( Coordinator)
Víctor Sierra
Claudio Dolman
Gustavo Marturet Medina
Gustavo Vollmer A. (Ex officio)
Nelson Pinto A. (Ex officio)
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40 ANNUAL REPORT 2015
The bank has an Executive Committee with a Chairman and an Executive President plus ten
senior managers from the organization’s Business and Support areas, which guarantees the
timely implementation of the Bank’s decisions and strategies. The committee meets weekly
and holds extraordinary meetings as required. It is responsible for evaluating options and
making recommendations on policy, objectives, strategies and organization and submitting
to the Board of Directors for consideration, as well as guiding management in its effort 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 is the President of the Bank. Along with the Executive President
and the other Board members he is responsible for conducting the Bank's activities and
business and has general executive powers. He also chairs the Meetings of Shareholders, the
Board of Directors and the Executive Committee, providing guidance and advice on policies,
objectives, strategies to be followed and major decisions; as well as supervising and ensuring
that the decisions and policies of the Board of Directors and the Executive Committee are
carefully executed. Additionally, he is responsible for exercising the functions assigned to
him by the Board of Directors and for representing the Bank before political and
administrative authorities and other public and private entities.
The Chairman stands in for the Executive President during temporary his absences, exercising
the same powers and attributions.
At the end of 2015, in order to make the Bank’s organizational structure more efficient and
operational, a series of structure adjustments to its first level structure were implemented,
according to market best practices, with the creation of two Executive Vice Presidents as
follows: the Executive Business Vice President, with supervision over Corporate, Enterprises
and Personal Banking, and the Executive Operations and Administration Vice President, with
supervision over the Finances, Operations and Technology, Human Resources and Corporate
Communications, and Legal Matters and Legal Consultancy.
Both Executive Vice Presidents report diretly to the Chairman.
The Secretariat and the Audit business units which report directly to the Board of Directors,
come under the Chairman where administrative matters are concerned. The Corporate
Compliance business unit reports directly to the Chairman.
Executive PresidentThe Executive President is responsible for the executive management and coordination of
the Bank and for submitting policies, objectives, strategies and major decisions to the
consideration of the Chairman, the Board of Directors and the Executive Committee and
informing them of the financial situation of the Bank and the results of its operations.
Executive CommitteeThe Committee is made
up as follows:Gustavo Vollmer A. - Chairman
Nelson Pinto A. – Executive President
Alfonso Figueredo D.
Fernando Figueredo M.
Luis Calvo Blesa
Luis Alberto Fernandes
Vicenza Garofalo
Rodolfo J. Gasparri
Carlos Montoliú
Jorge Pereira
Isabel Pérez S.
Carlos Tejada G.
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41
He is responsible for executing or delegating the execution of the decisions adopted by the
Board of Directors and the Executive Committee, and for designing, establishing and
developing the Bank's organizational structure, appointing general managers, consultants
and advisers to office and, if necessary, removing them from office. He represents the Bank
before political and administrative authorities and government entities, bodies corporate or
individuals.
The Executive President stands in for the Chairman during his temporary absences, exercising
the same powers and attributions.
Internal Audit ManagerIn accordance with the regulations in force, the Bank has an Internal Audit Manager who,
together with the Audit Committee, is responsible for reviewing the Bank's performance.
The Internal Audit Manager leads the Internal Audit business unit, which works with the Audit
Committee to design Mercantil’s internal audit plan. 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 for the Prevention of MoneyLaundering and Terrorism FinancingIn accordance with the regulations on the matter, the Bank has a Compliance Officer in charge
of Prevention of Money Laundering and Terrorism Financing who chairs the Committee on
the Prevention and Control of Money Laundering and Terrorism Financing and is responsible
for designing the AML/FT Annual Operating Plan, coordinating and supervising the
Committee of the AML/FT unit, coordinating staff training activities, on matters related to
prevention and control of money laundering and terrorism financing, and maintaining
institutional relations with the regulatory agencies on this matter. The Compliance Officer
also advises the Audit Committee and Board of Directors on compliance with their anti-money
laundering and antiterrorism financing obligations under the legislation in force.
Disclosure of InformationThe Bank prepares and publishes its financial statements monthly as of the end of the
preceding month, in compliance with the standards of the regulatory bodies. On the occasion
of Shareholders’ Meetings, the Bank also makes available to shareholders a detailed report
of its activities, and the semi-annual and annual financial statements for the immediately
preceding periods; this information is prepared in accordance with Sudeban and disclosed to
the general public and the Superintendency of Banking Sector Institutions. The Bank’s
financial information is also available on its website: www.bancomercantil.com.
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42 ANNUAL REPORT 2015
Awards and Acknowledgments
In 2015, Mercantil Banco Universal received various acknowledgments by prestigious
publications and institutions.
• In January, The Global Finance magazine has chosen Mercantil Banco Universal as the
“Venezuela's Best Trade Finance Provider in 2015” for the tenth consecutive year. The
Global Finance selection process took into consideration the volume of transactions,
geographical coverage, customer services, price competitiveness, development of new
businesses and technological innovations.
• In March, Mercantil Banco Universal was awarded, globally, in the group of best employers
according to studies conducted by the international consulting firm Aon Hewitt, taking
into account rates of engagement, brand strength, leadership and performance. This
recognition is based on the results obtained in the study of organizational climate and
engagement survey for the year 2014 in which 6,000 employees of the organization
participated (84 %).
• In May, Mercantil Banco Universal was awarded as a Visa 2014 Service Quality
Performance Award Winner in the Chargeback Effectiveness category. Mercantil Banco
was recognized by its above-average compliance of policies and data security standards,
as well as for the continuing improvement in quality services as issuer and operator of
credit cards.
• In July, the renowned financial publication Euromoney recognized Mercantil Banco
Universal as the “Best Bank in Venezuela” in 2015. Mercantil Banco granted with this
distinction after an analysis of its results, showing a strong loan portfolio and high level
of performance regarding assets and equity, within an adequate risk management policy.
• In Septiembre, Fondonorma, the Venezuelan Standardization and Quality Certification
Institute, concluded the annual follow-up audit with zero nonconformities for the ISO
9001:2008 nine certified lines.
• In December, The Banker financial magazine granted Mercantil Banco Universal the “2015
Bank of the Year” award for Venezuela. The institution gained the award after an analysis
of its results indicated solid financial profitability, sustained growth of deposits, an
adequate diversification of clients and constant innovation in order to satisfy clients within
an appropriate risk-management policy.
• In December, Mercantil Banco ranked 169 among the 250 Latin American Banks of the
AméricaEconomía magazine, the 4th Venezuelan bank on the list. The ranking includes
state-owned banks and is prepared according to assets size by the close of June 2015.
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43
Representative Offices
BOGOTA
Av. 82, Nº 12-18, 8th floor, Ofc. 805Edificio Torre Andina.La Cabrera Bogota, ColombiaPhone: (57-1) 635 0035Fax: (57-1) 623 [email protected]
LIMAAv. Canaval y Moreyra No 452, 9th floorEdificio Banco de ComercioSan Isidro, Lima 27, PeruPhone: (511) 442 5100Fax. (511) 442 5100 Ext. [email protected]
MEXICO
Eugenio Sue N° 58,Colonia Polanco Chapultepec,Delegación Miguel HidalgoC.P.11560, Mexico, D.F.Phone: (52-55) 5282 2300/1224Fax: (52-55) 5280 [email protected]
NEW YORK11 East 51st. Street New York NY,10022-5903, U.S.A.Phone: (1-212) 891 7479Fax: (1-212) 891 [email protected]
SAO PAULOAv. Paulista, N° 1842, 3° andar, CJ. 37 Edf. Cetenco Plaza, Torre Norte-Cep 01310-200Sao Paulo, SP, BrazilPhone: (55-11) 3285.4647 - 3284.0206Fax: (55-11) [email protected]
International Offices
Agency and Branch
UNITED STATESCORAL GABLES AGENCY220 Alhambra Circle, Coral Gables,Fl. 33134, U.S.A.Phone: (1-305) 460.8500Fax: (1-305) 460.8595Telex: 681278 BMER [email protected]
CURAÇAO
CURAÇAO BRANCHMercantil Bank (Curaçao) N.V.Abraham Mendez Chumaceiro Boulevar 1 Willemstad, CuracaoPhone: (5999) 432 5000Fax: (5999) 461 1974 / 432 [email protected]
International Offices and Corporate Contacts
Corporate Contacts
MERCANTIL, C.A. BANCO UNIVERSALAvenida Avenida Andrés Bello, N° 1, EdificioMercantilCaracas 1050, VenezuelaPhone: (58-212) 503.1111Telex 27002/27003 BMERVC P.O. Box 789, Caracas 1010-A [email protected] www.mercantilbanco.comTwitter: @MercantilBancoCall Center (CAM): Phone: 0-500-600 2424/ 0-500-503 2424 (58-212) 600.2424-(58-212) 503 2424
CORPORATE COMMUNICATIONSAv. Andrés Bello, N° 1, Edificio Mercantil 14th Floor, Caracas 1050, Venezuela Apartado Postal 789, Caracas 1010-APhone: (58-212) 503.1670 [email protected]
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 43
44 ANNUAL REPORT 2015
General Production: Corporate Communications Management Graphic Design: Arte Impreso H.M., C.A.Caracas, Venezuela, February 2016.
MBU Annual Report 2015 at 29Jun2016b.qxp_Maquetación 1 29/6/16 5:38 p.m. Page 44
Avenida Andrés Bello Nº 1 Edificio MercantilCaracas 1050, Venezuela. Phone: (58-212) 503.1111
www.mercantilbanco.com