It has maintained excellent profitability levels in 2005, with a RoE of 42.5%. Extraordinary gains were obtained last year from the sale of an investment in a Colombian financial institution and this had a major impact on results.
Banco Mercantil continues to implement strict controls on costs. The efficiency ratio was 71%, compared with 73% in the previous year. From an organisational point of view, significant changes have been made to implement a global scope among the various business segments and support areas, as well as to carry out stronger and better integrated risk management function.
In 2005, a global private banking and asset management unit was created. This is responsible for functions related to investment services and trusts, as well as private banking in Venezuela and abroad.
“This award emphasises our aim, which is to be recognised as the institution of reference in the markets that we serve, as measured by third parties,” says CEO Gustavo Marturet.
“Our 2005 results reflect our growth efficiency, the implementation of a global scope in our business segments, the sale of non-strategic investments and our commitment to excellence. We will continue to enhance our vision by using the opportunities that a favourable economic environment allows, as well as continue providing for under-served sectors, investing to maintain quality service and reinforcing our business strategy.”
