Venezuela's Mercantil Servicios Profit Rises on Higher Lending

By Peter Wilson

Caracas, May 5 (<a href=quote.bloomberg.com>Bloomberg) -- Mercantil Servicios Financieros CA, holding company for Venezuela's largest bank, said first-quarter profit soared 53 percent as it boosted lending.

Net income rose to 51.8 billion bolivars ($32 million), or 131 bolivars a share, from 33.7 billion bolivars, or 92 bolivars, for the same period a year earlier, the company said in a release.

Mercantil said its loan portfolio expanded 60 percent to 4.09 trillion bolivars from 2.56 trillion bolivars in March 2002. Provisions for loan losses more than doubled to 48.7 billion bolivars from 19.6 billion bolivars.

The company bought back 8.4 percent of its stock as of March 31 as part of a share repurchase program, Mercantil Servicios said in a statement.

Mercantil Servicios includes Banco Mercantil, an insurance company and brokerage. Last Updated: May 5, 2003 09:05 EDT