The participation of banking and financial sector institutions in the stock market hits a record low
BME Report on the share ownership structure in Spain
- Non-resident investors and Spanish households remain the main owners of Spanish listed shares
- Growth in the participation of non-financial firms to 19%
- The weight of Public Administrations reach a record high for the last 18 years due to the IPO of AENA
At end-2015 the participation of Spanish banks and savings banks in Spanish listed shares was a quarter of what it was in 1992, the first in the historical series produced by the Research Department of BME. Today’s percentage of 3.6% is 12 points lower than in the previous year and 5.8% lower than that for 2007, when the international financial crisis began. This trend is the result of the deep corporate structural changes experienced by the Spanish economy over the last 25 years and the impact of the latest bouts of crises, according to the Report produced by BME on the structure of share ownership published today.
In 2015 the participation of financial banking institutions fell 0.7% from the previous year, as a result of the declining prices of some listed companies and the continuation of the trend of net divestiture followed by these institutions to strengthen their liquidity and bank capital due to the crisis.
If the participation of banks and saving banks is added to that of Collective Investment Institutions, insurance companies and other financial institutions, their overall participation in the Spanish stock market is 11.5% and represents a record low in the historical series of the study, very far from the 23.1% they recorded in 1997.
The participation of non-resident investors in the stock market at the end of 2015 was 42.3% of the market value, the second highest level in the history of this study and 5.5 points above the 2007 data, the start of the crisis. Foreign investors remain the main owners of listed Spanish shares and their participation is above the European Union average.
Nearly a quarter (24.4%) of the ownership of the shares of listed companies was in the hands of Spanish families at the end of 2015, according to the updated annual report prepared by BME on this matter. This is down 1.8% from the previous year, but 4.3% higher than at the onset of the crisis, in 2007.
The largest increase in share ownership in 2015 corresponds to non-financial institutions, which now become the owners of 18.9% of the value of listed companies in the Spanish stock market, 1.8% more than in 2014, which breaks the trend of 4 consecutive years of declines that began in 2010. This group remains the third most relevant share owner of the Spanish stock market.
The position of Public Administrations (through various state agencies or sub-agencies) as owner of shares listed on the Spanish stock market increased by one percentage point in 2015 to 2.9%, the highest percentage in the last 18 years due the IPO and partial privatisation of airport operator AENA, which took place in the first quarter of last year.
After this transaction the participation of Public Administrations in the company stood at 51%, and its value at the end of 2015 exceeded 8 billion euros. This has led the portfolio of state-owned companies listed on the Spanish stock market to rise more than 60% to close to €19.5 billion
The complete report (in Spanish only) is available through this link:
