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Venezuela's second largest private bank, Mercantil Banco Universal, reported net profits of 472mn bolívares (US$110mn under the official exchange rate) in 2Q11, up 76% year-on-year, mainly due to higher interest revenues.
Net income grew 54% compared to the first quarter of the year. On the semi-annual basis, Mercantil reported profits of 778mn bolívares in 1H11, or US$181mn under the official exchange rate, up from 442mn bolívares in 1H10.
Deposits continued to rise sharply, as consumers found few other uses for their savings under Venezuela's restrictive investment regime.
By the end of June, Mercantil held 47.4bn bolívares of deposits, up from 34.8bn bolívares at the same time last year, with the bank maintaining its market leadership in the segment.
Mercantil's loan portfolio expanded to 31.6bn bolívares at the end of 1H11 from 21.3bn bolívares at end-1H10.
The ratio of loans to deposits reached 66.8% at the end of June 2011, 5.6 basis points higher than end-June 2010.