Creation of Value for the Shareholders of the Bank Santander 1991-2006

Abstract

We compute the Shareholder Value Creation of Banco Santander (SAN). The market cap of BS increased between December 1991 and December 2005 in 85.7 billion euros. The shareholder value creation during this period was 20.7 billion euros. The average shareholder return of BS in this 15-year period was 18.7%, higher than that of the IBEX 35 (15.4%). Average inflation was 3.3%. We also compare the shareholder return with that of other banks. In December 2006 BS was the biggest company in the IBEX 35 and the 4th biggest of the EuroStoxx 50.

Keywords: Santander, IBEX, EuroStoxx, shareholder value creation

JEL Classification: G12, G31, M21