Financial-Economical Results
Income accounts
Highlights in income from financial services were Loans and Leasing revenues of R$ 1.3 billion (8.5% down on 2009).
Financial Expenses amounted to R$ 868.1 million and accounted for 61.3% of the Financial Income, against 46.9% in the same period in 2009.
Allowances for loan losses in the amount of R$ 266.7 million were down from R$ 318.6 million in the same period of 2009.
Gross Income from Financial Intermediation stood at R$ 547.1 million, against R$ 726.6 million for the same period in 2009.
Revenue from services rose to R$ 114.9 million, against R$ 117.6 million in 2009.
Personnel expenses were R$ 347.3 million against R$ 257.9 million in 2009, mainly due to contingency reserves against labour-court claims being calculated using an improved methodology (R$ 67.0 million additional provisions).
Administrative Expenses totaled R$ 403.2 million against R$ 391.5 in 2009 and various items of this line item showed decreases. However, the total was primarily impacted by data processing and advertising and publicity expenses.
Operating Income was R$ 226.1 million, reflecting a loss of R$ 88.4 million in 2009.
Net Income, Dividends and Shareholders’ Equity
Mercantil do Brasil recorded Net Income of R$ 135.2 million in the year, corresponding to R$ 3.81955 per share, equivalent to an annual return of 22.2% in 2010 on average shareholder equity of R$ 609.6 million.
Dividends were declared to the shareholders in the form of interest on equity for the amount of R$ 12.0 million, for the second half of 2010, corresponding to a value net of income tax of R$ 10.2 million, reflecting R$ 0.2820 per Common Share and R$ 0.3102 per Preferred Share, also net of income tax. Interest on own capital in the year was declared at R$ 43.3 million, corresponding to R$ 36.8 million net of income tax.
Shareholders’ Equity totalled an amount of R$ 673.2 million (Managed – R$ 716.3 million), averaging as much as 23.3%, reflecting equity value of R$ 19.02 per share.
Reference Shareholders’ Equity of R$ 1.0 billion includes the Consolidated Shareholders’ Equity from financial companies of Mercantil do Brasil Group and the Subordinated Debt up to the amount of R$ 330.8 million, pursuant to CMN Resolution No. 3,444/2007.
