Shareholder Value Creation of Banks in Spain: 1991-2007

Abstract:     
We compute the Shareholder Value Creation of Santander, BBVA, Popular and Bankinter between 1991 and 2007. The shareholder value creation during this period was: Santander 22.5 billion euros; BBVA 18.7; Popular 11.1 and Bankinter 4.0.

The average shareholder return was: Santander 18.0%; BBVA 18.3%; Popular 17.0% and Bankinter 17.4%, all higher than the return of the IBEX 35 (15.1%). However, the weighted shareholder return (taking into consideration the number of shares outstanding at different dates) was quite different: Santander 13.4%; BBVA 14.9%; Popular 18.9% and Bankinter 18.9%.

Note: Downloadable document is in Spanish.

Keywords: Value creation, shareholder value creation, Santander, BBVA, Popular, Bankinter, weighted shareholder return

JEL Classifications: G12, G31, M21

Working Paper Series