Operational Performance
Consolidated Economic and Financial Performance
MB financial statements appropriate capital structure in line with our strategy and marketing objectives.
Our results show that MB obtained advances in terms of quality and growth in 2010, in particular total loans and deposits, total assets and stockholder equity.
Assets and Liabilities
Total Assets, Lending Operations and Funding
MB's consolidated total assets amounted to R$ 9.5 billion, showing 20.5% growth in the last 12 months. Current assets amounted to R$ 6.3 billion and were 34.8% higher than short-term liabilities.
Interbank and ASSETS Investments in securities totalled R$ 3.1 billion and growth of 6.3% presented in relation to December 2009, and are equal to 32.4% of total assets.
“Long-term assets” includes bonds classified in the category "held to maturity securities" in the amount of R$ 3.4 million, which, in accordance with Central Bank Circular No. 3,068/2001, the Bank has the intention and financial capacity to hold until maturity.
Lending totalled R$ 5.3 billion, reflecting a 25.5% increase in the last 12 month period and a 55.7% share of total assets.
Loans classified in the low-risk range from "AA" to "C" accounted for 93.0% of the total loan portfolio, up from 89.5% the previous year, reflecting a jump in quality compared to December 2009.
Allowance for loan losses was 3.7% against 7.0% in December 2009.
Funding
The main funding initiatives in domestic and foreign markets totalled R$ 7.9 billion, which was 21.4% higher than 2009's R$ 6.5 billion, including both domestic and foreign borrowing.
A breakdown of these funds shows R$ 4.9 billion in term deposits; R$ 941.1 million in money-market funding and R$ 509.9 million from demand deposits. Additionally, R$ 920.0 million were raised from foreign funding and loans.
Time deposits grew 33.7% in the last 12 months.
The total funds derived from abroad, i.e., R$ 631.8 million are recorded in Subordinate Debt, in other words, the status of the capital for the purposes of capitalization levels in compliance with CMN No. 3,444/2007.
